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David Lawrence Ramsey III (born September 3, 1960) is an American personal finance advisor, radio show host, author, and businessman.

Ramsey, an evangelical Christian, hosts the nationally syndicated radio program The Dave Ramsey Show, where he advises callers and answers questions regarding personal finances. The Dave Ramsey Show boasts over 13 million listeners weekly and is frequently ranked in the top five most popular nationally syndicated radio talk shows in the United States. In addition to his radio show and Financial Peace University keystone course, Ramsey has written several books, including The New York Times bestseller The Total Money Makeover, and hosted a television show on Fox Business from 2007-2010.

Ramsey's advice is occasionally disputed, and his company has come under fire several times, most notably in December of 2020 during the COVID-19 pandemic when they hosted a large Christmas party devoid of health restrictions recommended during the crisis.

Ramsey lives with his wife, Sharon, in Nashville, Tennessee.

Early life

Ramsey was born in Antioch, Tennessee to real estate developers who taught their children entrepreneurship and self-motivation from an early age. Ramsey attended Antioch High School where he played ice hockey. At age 18, Ramsey took the real estate exam and began selling property, working through college at The University of Tennessee, Knoxville, where he earned a Bachelor of Science degree in Finance and Real Estate.

By 1986, Ramsey had amassed a significant portfolio worth over $4 million. However, when the Competitive Equality Banking Act of 1987 took effect, several banks changed ownership and recalled his $1.2 million in loans and lines of credit. Ramsey was unable to pay and filed for bankruptcy in 1988.

Career

Ramsey experienced several years of financial recovery and began offering financial advice to couples at his local church. In 1988 he founded the Lampo Group, a financial counseling service, and in 1992 he wrote and self-published his first book, Financial Peace, giving away most copies and selling others out of the trunk of his car.

Ramsay began as one of three alternating hosts of The Money Game on radio station WWTN/Nashville in 1992. The show eventually became The Dave Ramsey Show, Ramsey's daily three-hour call-in financial advice talk show. Financial Peace University, Ramsey's nine-lesson, $129.99 video-based personal finance course, debuted in 1994. The Dave Ramsey Show aired on the Fox Business network from 2007-2010.

In 2014, The Lampo Group, Inc. was rebranded as Ramsey Solutions. The company's headquarters are located in Franklin, Tennessee and a new 47-acre campus opened there in 2019.

Ramsey has written five books for adults, three of which were New York Times bestsellers, and six children's books. He was inducted into the National Radio Hall of Fame in 2015.

As of January 2021, Ramsey Solutions consists of a network of six additional personal finance "Ramsey personalities" and their associated publications, shows, podcasts and courses. The company offers a wide range of educational tools, resources, and publications relating to personal finance as well as Ramsey+, a monthly subscription access service. Ramsey and his fellow "personalities" also host live events throughout the United States. Ramsey frequently hosts live events "devoted to personal finance and challenges facing small business."

Teachings

Ramsey advises listeners to first reduce debt using the debt snowball method, where debtors pay off their lowest balances first. His advice largely focuses on repeating and applying his core principles through "baby steps":

1. Save 1,000 for a starter emergency fund
2. Pay off all debt, excluding mortgages, using the snowball method
3. Save 3-6 months of expenses
4. Invest 15% of the household's income in retirement
5. Save for college
6. Pay off the mortgage early
7. Build wealth and give

Ramsey adamantly opposes the use of credit cards. At live shows, he sometimes takes out his wallet to show audiences the "only four pieces of plastic" he carries: A business debit card, a personal debit card, a driver’s license, and a concealed-carry permit. Ramsey encourages the use of cash and advises families to utilize an envelope system, putting a cash allocations for each month's food, entertainment, etc. in separate envelopes and then only spending what is in the envelope.

Ramsey encourages parents to teach children about the value of money as soon as possible and to avoid even student loan debt, a view which has drawn criticism.

The Dave Ramsey Show regularly invites newly debt-free families to share their success through “the debt-free scream.” Joining the show either on the phone or in person, guests describe their process of getting out of debt and then are invited to yell "We're debt-free!" into the phone or studio microphone.

Criticism

Critics of Ramsey's core teachings point out that it is often a "one-size-fits-all" that both disregards income disparities and does not take into account financial emergencies. The debt snowball method is frequently debated and studies have returned results both supporting and opposing its efficacy. Ramsey's investing advice has also drawn criticism over its reliance on stock investment, as opposed to bonds, and its frequent assurance of 12% annual returns on investments.

Controversies

In 2014, The Daily Beast reported that Ramsey had lashed out against former employees he claimed were discussing working conditions at the company on Facebook and Twitter. At company staff meetings, Ramsey allegedly recounted conversations from a private Facebook group of former employees that he had infiltrated, eventually offering cash rewards for the identities of some members who took to anonymous Twitter accounts once they realized Ramsey had joined the private group. The incident prompted increased backlash, a meeting Ramsey set up to confront alleged critics, and the eventual deletion of several of the critical Twitter accounts.

In July of 2020, Caitlin O'Connor, a former Ramsey Solutions employee, filed a federal lawsuit against the company alleging that she was fired for being pregnant and, since she wasn't married to the baby's father, for violating Ramsey Solutions' employee conduct policies.

COVID-19 response

On December 12, 2020, during the tenth month of the COVID-19 pandemic, Ramsey Solutions held its annual Christmas party at company headquarters in Franklin, Tennessee. That same day, a complaint was filed with the Franklin health department alleging that caterers hired for the event were instructed not to wear masks or gloves while serving, which the company later confirmed to the local NBC affiliate. The complaint alleges that 700-900 guests were expected, and a catering worker at the event estimated its number of guests to be over a thousand with "absolutely no distancing being practiced." Ramsey Solutions responded that there was no truth to the complaint.

The company had drawn attention earlier in the pandemic for remaining open after employees tested positive for the virus, for ignoring recommendations to avoid large gatherings, and for hosting a July business conference after the Marriott hotel cancelled citing safety concerns.

On his radio show and in staff meetings, Ramsey railed against face coverings and other COVID-19 precautions, calling them "a sign of fear".

Personal life

Ramsey is an evangelical Christian who describes himself as both fiscally and culturally conservative.

Ramsey married his wife Sharon in 1982, and the Ramseys have three children: Daniel Ramsey, Denise Ramsey Whittemore and Rachel Cruze. Cruze is also a personal finance advisor with Ramsey Solutions, hosts a podcast and video channel, and has written several books on personal finance and wellness.

In 2010, Ramsey received criticism for purchasing a large Nashville-area home. He defended the purchase by explaining that the home was paid for in cash and had been instrumental in raising money for several charitable causes.

Ramsey was estimated to have a net worth of $55 million in 2019.

References

1. Dave Ramsey Show Newstalk 550 KTSA. San Antonio, Texas. 3 Sep. 2012. Radio.
2. ^ Drury, Susan (May 31, 2007). "The Gospel According to Dave". Nashville Scene. Archived from the original on January 5, 2021. Retrieved January 6, 2021.
3. "Check out the latest from Dave Ramsey!". daveramsey.com. Retrieved March 30, 2020.
4. ^ Ramsey, Dave; Sharon Ramsey (2003). Financial Peace Revisited. Harmondsworth, Middlesex, England: Viking Penguin. p. 325. 0-670-03208-5.
5. ^ Ross Jr., Bobby (March 31, 2003). "Christian financial guru crusades against overspending". Google News. Ocala Star-Banner. p. 6C. Archived from the original on January 5, 2021. Retrieved January 5, 2021.
6. ^ "Dave Ramsey". Radio Hall of Fame. Archived from the original on January 5, 2021. Retrieved January 5, 2021.
7. ^ Alberta, Tim. "The Financial Whisperer to Trump's America". Politico. Archived from the original on March 11, 2018. Retrieved January 7, 2021.
8. "Company History". daveramsey.com. Archived from the original on January 5, 2021. Retrieved January 6, 2021.
9. ^ Bahler, Kristen (April 16, 2019). "Broke Millennials Are Flocking to Financial Guru Dave Ramsey. Is His Advice Any Good?". Money.com. Archived from the original on January 5, 2021. Retrieved January 6, 2021.
10. White, Martha (August 16, 2012). "The Verdict Is In: Tackle Smaller Debts First". TIME. Archived from the original on February 4, 2013. Retrieved January 6, 2021.
11. "Dave Ramsey's 7 Baby Steps". daveramsey.com. Archived from the original on January 7, 2021. Retrieved January 7, 2021.
12. Grisby, Lorna (February 17, 1997). "Digging Out of Debt". People Magazine. People.com. Archived from the original on January 16, 2021. Retrieved January 16, 2021.
13. ^ Olen, Helaine (October 28, 2013). "The Prophet". Pacific Standard. Archived from the original on January 16, 2021. Retrieved January 16, 2021.
14. Berger, Rob (July 20, 2017). "Debt Snowball Versus Debt Avalanche: What The Academic Research Shows". Forbes.com. Archived from the original on January 16, 2021. Retrieved January 16, 2021.
15. Carrns, Ann (May 13, 2011). "Dave Ramsey's 12% Solution". The New York Times. Archived from the original on January 4, 2013. Retrieved January 6, 2021.
16. Stoffel, Brian (June 3, 2013). "Dangerous Retirement Planning Advice From Financial Guru Dave Ramsey". The Motley Fool. Archived from the original on January 5, 2021. Retrieved January 6, 2021.
17. Turner, Matthew Paul (May 29, 2014). "Spies, Cash, and Fear: Inside Christian Money Guru Dave Ramsey's Social Media Witch Hunt". The Daily Beast. Archived from the original on September 13, 2020. Retrieved January 7, 2021.
18. West, Emily R. (July 21, 2020). "Lawsuit: Former Ramsey Solutions employee alleges firing over pregnancy". Tennessean. Archived from the original on January 16, 2021. Retrieved January 17, 2021.
19. Finley, Jeremy (December 11, 2020). "Dave Ramsey's company Christmas party subject of non-mask compliance complaint". News 4 Nashville. Archived from the original on January 8, 2021. Retrieved January 9, 2021.
20. Hale, Steven; Jamieson, Dave. "Personal Finance Guru Dave Ramsey Just Threw A Huge Indoor Christmas Party". Huffington Post. Archived from the original on January 8, 2021. Retrieved January 8, 2021.
21. Hale, Steven (July 8, 2020). "Dave Ramsey to Host Business Conference in Franklin as COVID-19 Cases Rise". Nashville Scene. Archived from the original on January 8, 2021. Retrieved January 9, 2021.
22. Ramsey, Dave (November 19, 2020). "This Has Gotten Out of Hand! - Dave Ramsey Rant". The Dave Ramsey Show--YouTube. Archived from the original on January 8, 2021. Retrieved January 9, 2021.
23. Smietana, Bob (December 11, 2020). "Dave Ramsey, Christian personal finance guru, defies COVID-19 to keep staff at desks". Religion News Service. Archived from the original on January 8, 2021. Retrieved January 9, 2021.
24. Klett, Leah Marieann (March 10, 2015). "Dave Ramsey Offers Powerful, Biblically Sound Response to Criticism over His Multi-Million Dollar Home". The Gospel Herald. Archived from the original on March 6, 2016. Retrieved January 6, 2021.

External links

• 2003 profile by This American Life
• "Ask Dave Ramsey" on the Christian Broadcasting Network

• 1960 births
• Living people
• 20th-century American businesspeople
• 20th-century American non-fiction writers
• 21st-century American businesspeople
• 21st-century American non-fiction writers
• American business writers
• American education businesspeople
• American financial commentators
• American finance and investment writers
• American financial literacy activists
• American motivational speakers
• American motivational writers
• American self-help writers
• American talk radio hosts
• People from Antioch, Tennessee
• People from Nashville, Tennessee
• Personal finance education
• Radio personalities from Tennessee
• University of Tennessee alumni
• Writers from Tennessee
• Christians from Tennessee
• American male non-fiction writers
• 20th-century American male writers
• 21st-century American male writers