Who is Dave Ramsey?


At the age of 26, Dave Ramsey brought home a quarter of a million dollars a year and had a real estate portfolio of $ 4 million. Two years later he lost everything.

Today, Ramsey, 60, is one of America’s most trusted sources of financial advice. His syndicated radio show, “The Dave Ramsey Show,” is among the top five radio shows in America and is heard by 13 million listeners each week on more than 600 radio stations, according to the Ramsey website.

Ramsey is transparent about his investment style. He encourages his followers to avoid investing in individual stocks and to buy mutual funds that have a long track record of performing well. Personally, your equity investments are spread across four types of mutual funds: Growth, Growth & Income, Aggressive Growth, and International.

Key takeaways

  • Dave Ramsay is a renowned financial guru and author with a nationally syndicated radio show and presence in other outlets.
  • Before becoming a financial expert, Ramsay saw both early success and bankruptcy.
  • Ramsay uses Christian values ​​to help convey his message of financial prudence and savings.
  • Dave Ramsey is transparent about his investment style and encourages his followers to avoid investing in individual stocks and to buy mutual funds with a long track record of good performance.
  • Ramsay’s net worth is estimated to be around $ 200 million.

In addition to mutual funds, Ramsey owns a portfolio of rental properties. His real estate investment philosophy is based on acquiring properties without the use of debt financing.

Dave Ramsey has come a long way since he filed for personal bankruptcy in his early years. With his estimated net worth of $ 200 million, he is living proof that anyone can reverse a bad financial situation. Ramsey made his first million, lost it, and then rebuilt an even larger fortune in a relatively short period of time.

Early age and education

Ramsey was born on September 3, 1960, and grew up in a home that instilled a strong work ethic. In “Live Like Nobody Else”, a 20 minute film documentary film About his life, Ramsey tells the story of when he was 12 years old and asked his father for money to buy a lollipop. She said her father responded to her request by saying, “You are old enough to get a job. That’s where the money comes from. “

That conversation with his father inspired Ramsey to become an entrepreneur. That same day, he printed 500 business cards at the local print shop for his first company: a lawn care business. Throughout his school years, he ran other businesses, one of which sold leather bracelets. Ramsey said his early business ventures taught him valuable lessons like customer service and the importance of keeping your word.

Three weeks after turning 18, Ramsey passed his real estate licensing exam. He used the commissions he earned from the sale of properties during college to help pay for his tuition. As a child, he had been exposed to the world of real estate, and in his book Dave Ramsey’s Complete Guide to MoneyHe explained, “My parents were in the real estate business, so it’s always been a big part of my life.”

Notable achievements

Real estate success and failure

After graduating from college, he began trading properties. As a result of having some family connections at local banks, Ramsey was able to obtain financing for his deals. At the age of 26, his real estate portfolio was worth $ 4 million and his net worth was just over $ 1 million.

His initial success was short-lived and he ended up filing for personal protection in bankruptcy at age 28 in 1988, primarily because his largest lender, to whom he owed $ 1.2 million, was acquired by a larger bank. The bank required Ramsey to pay off the entire debt within 90 days. Shortly after receiving your first notice of lawsuit, another bank called up your $ 800,000 worth of bills. Ramsey managed to pay off most of the debt, leaving $ 378,000 outstanding.

Business financial advice

Ramsey’s fall from grace led him to Christianity. He began to read the Bible and discovered that “the word of God has a lot to say about money.” In the documentary, Ramsey says that one day after church, a man experiencing financial difficulties asked him exactly how he had survived his financial troubles in the past. He agreed to help the man and his wife create a financial plan for their life, and thus began Ramsey’s career as a financial advisor.

Ramsey founded a personal finance advisory company called The Lampo Group. His money management class started with 37 students, but the membership grew to more than 350 students after a few years of operation.

Author and Dave Ramsey Show

Following the success of The Lampo Group, Ramsey began co-hosting a personal finance-focused radio show called “The Money Game” with his friend, Roy Matlock. Around this time, he also published his first book, “Financial Peace,” and took advantage of his growing radio audience to help sell it.

Later, Ramsey launched a spinoff radio show called “The Dave Ramsey Show.” In each episode, people from across the country call to ask Ramsey a wide range of personal finance questions.

At the age of 26, Dave Ramsey’s real estate portfolio was worth $ 4 million and his net worth was just over $ 1 million. As of 2021, his net worth is around $ 200 million.

As an evangelical Christian, Ramsey uses biblical principles to teach his followers how to improve their financial conditions. For example, he often counsels others to avoid debt because the Proverbs 22: 7 Bible verse says, “The rich rule over the poor, and the borrower is the slave of the moneylender.”

The bottom line

From an early age, Dave Ramsey understood that a day’s work has value. As a child, he started several different business ventures to earn extra pocket money. His impeccable work ethic helped him become a millionaire at the age of 26. A few years after reaching the million dollar net worth milestone, Ramsey filed for personal bankruptcy.

Since then, he has built a business empire that revolves around using his previous monetary mistakes and biblical scriptures to teach smart money management practices. Today, millions of Americans have turned to the teachings of Dave Ramsey to guide them down the path to financial security and wealth.

www.investopedia.com

Share
READ ALSO:  Definition of manipulation
About the author

Mark Holland

Leave a comment: