Dave Ramsey’s Advice Won’t Work With Millennials | Personal Finance & Lifestyle | Yakezie Forums

Just finished writing a little article about why I think Dave Ramsey's cash only advice won't matter, work, or exist by the time Millennials are in their worst spending troubles.

Would love your feedback: Why Dave Ramsey’s Advice Won’t Work With Millennials

Ya, Ramsey is getting outdated. But he's rich and getting old, and his advice doesn't adapt with time. 

http://www.becomingyourownbank.com

Post edited 8:11 am – August 29, 2013 by brian_debtdiscipline

I think Dave's general concepts still hold up. Budget, live within your means, use cash, etc How do these not work for Millennials?

Edward Antrobus said:

brian_debtdiscipline said:

I think Dave's general concepts still hold up. Budget, live within your means, use cash, etc How do these not work for Millennials?

The cash part. While I am fairly disciplined with my debit card, cash just burns a hole in my pocket. I only use it if somebody has paid me with it. Otherwise, my money is all electronic. A lot of millennials feel the same way.

When I say cash I also mean debit card, as long as you have it in the bank.

I'm not sure. I don't like some of Ramsey's info (I particularly agree about his overly traditional views of women staying home as a given) but my husband and I are definitely millennials and we were disciplined enough to use the cash envelope system for a while when we wanted to get used to how our budget 'felt' that first year.

We don't swear by it or still use it but it was helpful and a good visual in a card-centered world. I used to think cash would be too easy to spend because it doesn't show up on my mint account but there is something to be said for the lesson you learn when you have an empty envelope half way through the month when you're still needing another week's worth of groceries. 

I think Save Ramsey's advice will work for most of his audience. He does recommend cash-only, rather than credit cards, but he does not rule out debit cards.

His investment advice is terrible, however. He tells people to contact someone in his network of investment advisers. He also says that 12% annual return is realistic to expect with long term growth mutual funds. The few times that he has recommended specific funds, they have proven to have loads and/or very high expenses. There is no way people will get anywhere near 12% return following his advice.

His advice will help people who are in debt that have not figured out how to spend less than they earn. Just do not listen to his investing advice.

WomanWithAPlan said:

Just added a comment to your post.  Dave is the reason why I'm on this forum today (read why here).  

I still listen to his show, but I do notice where what he says just doesn't resonate with me (constantly promoting for moms to stay home at the expense of longer-term goals… never hear him say the same to dads).

I'm actually interested in his new Legacy class, but haven't had time to investigate it further to see if it would add value to my current set of knowledge.

Dave is pretty much a credit card absolutist – cut ‘em up and get rid of ‘em.