dave ramsey Archives — Beating Broke

The 11 Most Controversial Personal Finance Gurus: Are They Frauds or Geniuses?

February 22, 2024 By Catherine Reed Leave a Comment

In the realm of personal finance, certain experts stand out not just for their groundbreaking advice but also for the debates they ignite. These financial influencers have garnered substantial followings with their bold strategies and polarizing opinions, often walking the fine line between genius and controversy. From advocating for extreme frugality to promoting high-risk investment strategies, their unconventional approaches have both inspired success stories and drawn criticism. Here, we explore 11 of the most talked-about personal finance gurus, delving into the controversies that surround them and the philosophies they champion.

1. Dave Ramsey: The Anti-Debt Crusader

In the world of personal finance gurus, few names are as well-known as Dave Ramsey. Dave Ramsey’s staunch anti-debt stance and “baby steps” to financial freedom have made him a household name. Advocating for aggressively paying off debt and building wealth through savings and investments, Ramsey’s methods have been life-changing for many. However, critics argue that his aversion to credit and strict budgeting guidelines may not be suitable for everyone, particularly in an economy that often necessitates credit usage.

2. Suze Orman: The Financial Straight-Talker

Suze Orman’s no-nonsense approach to personal finance, emphasizing emergency savings, smart investing, and cautious spending, has earned her a vast audience. Yet, her sometimes conservative investment advice and cautionary stance on debt have faced scrutiny, especially from younger generations seeking more aggressive growth strategies.

3. Robert Kiyosaki: The Real Estate and Business Mogul

Best known for “Rich Dad Poor Dad,” Robert Kiyosaki’s advocacy for financial education, real estate investment, and entrepreneurship challenges traditional paths to financial success. While many praise his insights into wealth-building, others question the feasibility of his methods and his emphasis on leveraging debt.

4. Tim Ferriss: The Lifestyle Design Architect

Tim Ferriss, author of “The 4-Hour Workweek,” champions the concept of lifestyle design and passive income streams as a path to financial independence. His unconventional work philosophies and income automation strategies have inspired many but have also been critiqued for their applicability to the general population.

5. Grant Cardone: The 10X Rule Innovator

Grant Cardone’s “10X Rule” encourages massive action to achieve financial success, particularly through sales effectiveness and real estate investments. While his high-energy approach and success stories are compelling, some critics question the sustainability and risk level of his strategies.

6. Ramit Sethi: The Wealth Psychology Expert

Ramit Sethi’s “I Will Teach You to Be Rich” combines personal finance advice with a focus on behavioral change and psychological approaches to spending and saving. While praised for his practical strategies, Sethi’s sometimes unconventional advice on spending big on what you love while cutting mercilessly on what you don’t have sparked debate.

7. Tony Robbins: The Financial Motivator

Tony Robbins, while primarily known for his motivational speaking, has also entered the financial advice arena with books like “MONEY Master the Game.” His approach to financial freedom through self-empowerment and investment has been inspirational for many, though some financial experts question the depth and originality of his advice in the complex realm of personal finance.

8. Jim Cramer: The Stock Market Enthusiast

Jim Cramer’s energetic and entertaining take on stock market investments on “Mad Money” has made investing more accessible to the general public. However, his critics often point out the inherent risks in his often speculative and short-term investment picks.

9. Gail Vaz-Oxlade: The No-Gimmick Money Maven

Gail Vaz-Oxlade’s straightforward and practical advice on budgeting and debt management, as seen in “Til Debt Do Us Part,” offers a no-gimmicks approach to personal finance. While her methods are praised for their accessibility and effectiveness, some argue that her advice can be overly simplistic for more complex financial situations.

10. Peter Schiff: The Economic Doomsayer

Peter Schiff’s bearish outlook on the U.S. economy and his advocacy for investing in gold and international markets position him as a contrarian in the personal finance space. His predictions of economic downturns and skepticism towards mainstream investment wisdom attract both followers and detractors for their perceived fear-mongering.

11. Barbara Corcoran: The Entrepreneurial Spirit Guide

Barbara Corcoran’s rise from a diner waitress to a real estate mogul and “Shark Tank” investor embodies the entrepreneurial dream. Her advice often focuses on the grit and determination needed to succeed in business and real estate, though some caution against the inherent risks in entrepreneurial ventures.

The World of Personal Finance Gurus

These personal finance experts have undeniably shaped the conversation around wealth and financial management, each bringing their unique perspective to the table. While their advice may not resonate with everyone, the diversity of their strategies underscores the multifaceted nature of personal finance. Whether viewed as innovators or opportunists, their influence on their followers’ financial decisions is undeniable, highlighting the importance of critical thinking and personalized strategies in personal finance.

Catherine Reed

Catherine is a tech-savvy writer who has focused on the personal finance space for more than eight years. She has a Bachelor’s in Information Technology and enjoys showcasing how tech can simplify everyday personal finance tasks like budgeting, spending tracking, and planning for the future. Additionally, she’s explored the ins and outs of the world of side hustles and loves to share what she’s learned along the way. When she’s not working, you can find her relaxing at home in the Pacific Northwest with her two cats or enjoying a cup of coffee at her neighborhood cafe.

Dave Says: It’s a Credit Card Addiction

December 15, 2023 By Dave Ramsey Leave a Comment

Dear Dave,

I think my mother-in-law has a serious credit card problem. She can’t afford stuff, but she shops anyway, chalks up more and more debt, acquires more credit cards, and thinks she’ll pay for it all later somehow. Her ex-husband has bailed her out a few times, but he’s unwilling to help anymore. My wife and I, and my wife’s sister, want to address this issue, but we’re all worried about her reaction, and we don’t know where to start. Do you have any advice?

Randall

Dear Randall,

First, everyone involved should understand they’re likely to receive an angry response from this lady if she’s confronted over her actions. Sometimes people get ticked off when they hear the truth, especially when it’s connected to their own misbehavior. It may even be a good idea for your wife and her sister to get some advice from a family counselor beforehand. Really, what we’re talking about here is an intervention.

Also, you need to stay out of the discussion. This is something for her daughters to handle. Support your wife and her sister through it all, but if you’re in there asking questions and probing around, you’re liable to come off as the evil son-in-law. And you folks don’t need to add any more problems to the mix.

They need to sit down with her in a quiet setting, one where there are no interruptions, no television and no one else. Start with the fact that they love her and care about her deeply. That’s very important in a situation like this. But they also have to walk through what’s really going on, and let her know they’re tired of watching her destroy herself, and her finances, with her irresponsible behavior.

If she had a drinking problem, you’d want to try to make her see how alcohol was hurting her and the relationships she has with her family. In this case, she basically has a credit card addiction. And it’s wreaking havoc on her financial well-being and people who care about her.

So, show as much love and understanding as possible. But someone needs to say something soon.

— Dave

* Dave Ramsey is an eight-time national bestselling author, personal finance expert and host of The Ramsey Show. He has appeared on Good Morning America, CBS This Morning, Today, Fox News, CNN, Fox Business and many more. Since 1992, Dave has helped people take control of their money, build wealth and enhance their lives. He also serves as CEO for Ramsey Solutions.

Dave Ramsey

Dave Ramsey is an eight-time national bestselling author, personal finance expert, and host of “The Ramsey Show.” He has appeared on “Good Morning America,” “CBS This Morning,” “Today,” Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth, and enhance their lives. He also serves as CEO of Ramsey Solutions and is the author of numerous books including Baby Steps Millionaires: How Ordinary People Built Extraordinary Wealth–and How You Can Too.

www.ramseysolutions.com/

How to Combat Frugal Fatigue when Being Gazelle Intense

October 26, 2020 By MelissaB 11 Comments

My husband and I recently added up our student loan and credit card debt. Imagine our shock when we discovered we have $58,000 in debt! What was this debt comprised of? It is made up of nearly $38,000 in student loans, $6,500 on a business credit card for a business that failed and $13,500 of personal credit card debt spread over two cards (the smallest balance at $1,000). The latter debt is largely due to our current low income and some not so wise purchases. We’ve recently become gazelle intense. However, we’re being careful to combat frugal fatigue since we know we’ll need to live this lifestyle for quite some time.

What a Gazelle Intense Day Looks Like for Us

At the urging of everyone around us, we began to follow Dave Ramsey. Because we do not yet own a house but would like to in the next three to five years, we decided to become gazelle intense, as Dave Ramsey says.

What does gazelle intense look like for us? My husband works away from the house for 10 hours a day. After spending an hour with the kids when he comes home, he works on his dissertation and articles for publication for a few hours a night.

I stay home with the kids all day and blog, do virtual assistant work and freelance writing when the kids are napping and after they go to bed. On the weekend, I typically leave the house for about four hours on both Saturday and Sunday to get more freelance work done. I estimate that I am working 25 hours a week from home. My husband is putting in another 20 hours a week at home doing work that will further his career and hopefully lead to a high paying, tenure track job in a few years.

Being Gazelle Intense Works!

Our hard work is paying off. In just two weeks, we “found” an additional $701 to apply to our debt beyond our regular debt repayment schedule. We found this money several ways. First, we returned a few items we bought but hadn’t used before becoming gazelle intense. Then, we also got an unexpected check that we put toward the debt. We just paid off our first credit card with the lowest balance. Next on our plan is to pay off the credit card with $6,500 within the next four weeks.

Getting Used to a New Lifestyle Takes Time

As anyone who has become gazelle intense knows, there is a period of adjustment when you have to get used to the austere lifestyle that is required. Let’s be honest—most people who have credit card debt have at least some of it because of a lack of impulse control and planning.

Was all of our credit card debt due to that? No, we had a very low income for awhile when my husband’s graduate student teaching stipend was our only income, and we relied on credit to make ends meet. However, we also ate out more than we needed to. (Do you ever need to eat out?) Our debt likely would be lower if we practiced more self-control with ourselves and our finances. Since we weren’t stringent with ourselves then, we’re having to be now.

How to Maintain Gazelle Intensity for Months (and Years)

Gazelle intensity works with no break if you have a relatively short amount of time you must be laser focused. If you can get your debt paid off in 12 to 18 months, you shouldn’t need a break. However, if you’re looking at several years to pay down your debt, you will likely need to give yourself an occassional break to avoid frugal fatigue.

Take a Break After Each Debt

Because there is such an adjustment, to maintain your gazelle intensity and avoid frugal fatigue, consider rewarding yourself for each debt that you pay off or at a milestone you set. If you have one large debt to pay off, maybe you will reward yourself for every $5,000 you pay off.

For us, since we love to eat out and now no longer eat out at all, we have decided that we will have one meal out every time we pay off a debt. To maintain your drive, pick one thing you used to enjoy spending money on in your old, less frugal lifestyle, and commit to enjoying that activity once when you achieve your assigned goal in your debt snowball. Keep it reasonable, less than $50, so you don’t derail your snowball, but give yourself that leeway to maintain your intensity.

Gazelle Intensity Interval Training

Another option is to do gazelle intensity interval training. If you have a lot to pay off like we do, you may need a different strategy to keep up your motivation. For instance, maybe you can commit to three months of intensely working and paying down your debt. Then, you will take a break for one month. Or, maybe you decide on an amount that you’ll pay down, and then you’ll take a break. Maybe you decide to pay down $15,000 and then slow down in intensity for a bit. As you become invigorated again, set another goal that you’ll pay down before you rest.

Final Thoughts

Being gazelle intense definitely has rewards. You put yourself in a painful place for an intense while until the debt is paid off. Then, you begin to reap the rewards of all your hard work. You can live like no one else, as Dave Ramsey says.

Yet, be careful not to become so strict with yourself that you give in to frugal fatigue and derail your debt snowball. A small, planned out treat is often all it takes to keep you motivated and ultimately debt free. If you’re confronting a large amount of debt, consider instead to be gazelle intense for a few months and then take a break.

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MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.