|September 3, 1960
|Source of Wealth:
|Radio Host, Author, Businessman
|Founding the Dave Ramsey Show
David L. “Dave” Ramsey III is a businessman, financial author, radio host, and motivational speaker. He has written numerous financial books including five New York Times bestsellers.
Ramsey’s syndicated radio program, The Dave Ramsey Show, is heard on more than 500 radio stations throughout North America. In 2015 Ramsey was inducted into the National Radio Hall of Fame.
Ramsey has been married to his wife, Sharon, for over 30 years. They have three children: Denise, Rachel, and Daniel.
Dave Ramsey was born and raised in Antioch, Tennessee. In 1982 he graduated from the College of Business Administration at University of Tennessee, Knoxville with a degree in Finance and Real Estate.
At the age of 26, Ramsey built a rental real estate portfolio worth more than $4 million and brought home a quarter of a million dollars a year. Two years later he was forced to declare bankruptcy as the bank demanded him to pay back the debts. The young Ramsey gained millionaire status and quickly lost everything in his 20’s which taught him a lasting lesson about debt management. To this day, Ramsey runs his business completely debt-free.
Later on, Ramsey would go on to develop personal finance lessons based on his experience to teach people nationwide. In 1992, he started his first financial book, Financial Peace. Ramsey set his mission in life to educate people about personal finance and to give hope to everyone in every walk of life.
Dave Ramsey created the Dave Ramsey Show with a combined listenership of over 12 million weekly. The financial talk show is available on more than 575 radio stations and it’s the third largest talk radio show in the United States. Every year he earns millions of dollar from his lucrative show.
Ramsey is also the creator of Financial Peace University, a biblically based training series for adults that integrates video teaching, class discussions, and small group activities. Some topics covered in the series are cash flow planning, investing, saving, credit, retirement, and giving. The membership and class fees give Dave a very nice income while helping people dealing with financial issues.
Ramsey supports the debt snowball method, where debtors pay off their lowest balance debt first instead of paying off their highest interest rate debt first. A 2016 study by Harvard Business School found people who used the snowball method to pay off their smallest account first paid down more of their debt than those who used other methods. Dave’s method really works. He always preaches: “Debt is dumb. Cash is king!” Today millions of people follow Dave Ramsey’s teaching to guide them along the path to financial peace and security.
Personal Finance Quotes from Dave Ramsey
“The thing I have discovered about working with personal finance is that the good news is that it is not rocket science. Personal finance is about 80 percent behavior. It is only about 20 percent head knowledge.”
“I believe that through knowledge and discipline, financial peace is possible for all of us.”
“Your decisions from today forward will affect not only your life, but your entire legacy.”
“You never cash out a 401(k) or IRA to pay off debt, unless it’s to avoid a foreclosure or bankruptcy.”
“We’ve really got to stop looking to Washington to fix our problems. It obviously doesn’t have the ability to do that. People who are successful are not successful because of the president.”
Dave Ramsey Personal Finance Video
This is a great, quick, overview of what Dave Ramsey’s 7 Baby Steps are all about. Easy info to understand and hard to apply but it works!
The 7 Baby Steps
- Step 1: Save $1,000 to start an emergency fund
- Step 2: Pay off all debt but the house
- Step 3: Build 3 to 6 months of expenses in savings
- Step 4: Invest 15% of household income into retirement
- Step 5: College funding for children
- Step 6: Pay off home early
- Step 7: Build wealth and give
Since filing for personal bankruptcy in his 20’s, Dave Ramsey has come a long way. Ramsey made his first million, lost it and rebuilt an even larger fortune. With a net worth of $55 million, he’s living proof that anyone can turn a bad financial situation around.