I also haven’t read the book, but I’ve seen some of his speaking. He tends to make a lot of incredibly oversimplified observations about basic debt instruments, and then acts as if they’re utterly profound insights. If an interviewer ever pushes him a little, he seems to just get defensive and kinda looks as though he doesn’t really know what he’s talking about. He’s certainly given me the impression that he’s just a conman that doesn’t have any more than a one-inch-deep understanding of any of the topics he loves to yap about.
But he is right about Dave Ramsey. Ramsey has a completely irrational perspective on debt, and often gives some very stupid advice on topics relating to it.
To be clear, I think both of them are frauds (though one a lot more than the other).
If you’re being crushed by debt, following Ramsey’s (frankly commonsense) advice would probably be beneficial. If you have any other situation, his advice is going to be harmful to you. Especially compared to the advice you would receive from a real financial advisor, which Ramsey isn’t (though I’m sure a lot of his followers would be surprised to learn that).
I think Ramsey takes it too far, but then I think about his audience. I can gamble and drink alcohol without getting addicted. But for people who are addicted they usually need to completely stop. I see the same thing with those who are not able to manage their spending or debt. They need shock and extreme measures to get back to a good spot.
He's an entertainer with a decently large following. There are worse things he could be telling people to do other than save money and get out of debt.
His entertainment is providing financial advice, which (while I'm sure he follows all the applicable laws) he's not qualified or licensed to provide. He's not necessarily a scammer, and I'm sure his advice is helpful for a lot of people, but he gives everybody the same advice, and for a lot of people it's very bad advice.
Genuinely curious what part you think is 'very bad'? Maybe it's not all optimal, but very bad doesn't seem like what he's pushing. Admittedly it's been a long time since I've listened to him, but I have a couple friends who followed his methods and are in much better financial shape now.
He’s incredibly averse the debt, which is just his ideological stance, and this leads him to provide very bad advice. You’re not that likely to go bankrupt following his advice (it’s not impossible, I’ve seen him advise some very questionable house sales), but you’re much more likely to turn 65 and realise you can’t afford to retire following his advice, than you are following advice from an actually qualified adviser. If you had some extra disposable income today, and some low fixed rate debt, Ramsey would advise you to pay it down, even though almost any other investment would be an obviously better choice.
Providing people financial advice is regulated for a reason. The advice needs to be tailored to the person and their own circumstances. Ramsey never does this, he only has one script. If you happen to be a person who’s going to benefit from his approach (which I’m sure there’s a lot of people who would), then that’s good for you, but whether his advice is good or bad for any particular person is just up to chance.
This is very irresponsible, a very morally dubious way for somebody to make their money, and leads to him providing plenty of just objectively bad advice.
Dave Ramsey's advice is sub-optimal, but he's aimed at people who can't handle money, and is telling them to focus on crushing their debt.
It's not an optimal strategy for people who can handle the abstraction of interest rates, inflation, etc., but if his followers could handle those concepts, and had the impulse control to back it up, they wouldn't be heavily in debt to begin with.
It's reasonable advice for the demographic that needs it, and in that sense it's fine.
The HN tech bro crowd, who knows enough, and has enough cash, to run Christmas Tree option calls, has no business following Ramsey's advice.
But he is right about Dave Ramsey. Ramsey has a completely irrational perspective on debt, and often gives some very stupid advice on topics relating to it.