Personal finance expert Dave Ramsey says his debt-payoff methods have helped countless people over the years, while many of his critics lack real-world results or social proof to support their theories.
Talking about the role of personal behavior in overcoming financial troubles on “The Ramsey Show,” he said he tries to avoid complex or intellectually flashy topics and instead focuses on repeating what people already know they should be doing.
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Behavior More Important Than Math
Ramsey said his approach of paying off smaller debts first works because early wins show people that getting out of debt is possible. That sense of progress motivates them to work more and make sacrifices.
“We call that the debt snowball because it’s behavior-based not math-based, and by the way it’s more successful than all the other crap that some of you have as a theory,” Ramsey said. “You’re broke, nobody gives a rip what you’ve got to say, you haven’t got any proof.”
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‘Instagram World’
Ramsey said he has “truckloads” of social proof that his personal finance methods work, and his “brand” has become synonymous with getting out of debt. He said personal finance is driven by behavior, but social media makes it harder, with people flaunting wealth and lifestyles they don’t truly have.
“You got to control you and you are a salmon swimming upstream in an Instagram world showing you how pretty and beautiful and smart and wealthy everyone else is,” Ramsey said. “And it’s all fake because no one’s that pretty or smart or beautiful.”
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‘Just Freaking Do It’
Ramsey said people usually know how to fix their money problems, but still believe they are different or special. He said getting out of debt comes down to basics like working more, selling what you don’t need, and spending less.
“I get it, you’re special, but you’re subject to the law of gravity,” Ramsey said. “If you want corn, here’s how you get corn: you dig a hole in the ground and you plant corn. Don’t argue about it, just freaking do it.”
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