Financial expert Dave Ramsey delivered a fiery warning to listeners, calling out three common but "illogical" money mistakes that he says are draining bank accounts and wrecking futures.
Ramsey Warns Against Buying Property Before Marriage
On a February 2024 episode of The Ramsey Show, Ramsey recounted recent caller stories to highlight what he considers repeat offenders in bad financial decision-making.
"Never buy something like a house with someone you're not married to," he said, referencing a man whose fiancée ended their engagement but refused to sell their jointly owned home. "It's dumb… you're going to end up in legal and financial trouble."
From Car Upgrades To Costly Passion Degrees, Ramsey Says The Math Ain't Mathin
His second warning targeted drivers who use insurance payouts as an excuse to upgrade their cars. "You were fine driving a $6,000 car until it got totaled, then suddenly it's not good enough? That's dumb," Ramsey said.
"Don't do dumb moves with money. It causes you to be broke and hurt your feelings."
Ramsey's third example involved taking on massive student debt for low-paying "passion" careers. "Passion doesn't cover that… spending $250,000 to make $38,000 is not okay," he said. "It's a Fruity Pebbles meltdown."
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Dave Ramsey Says Broke People Give Bad Money Advice Out of Fear
In a May post on X, personal finance expert Ramsey argued that financially struggling people often hand out unsolicited advice because they fear being left behind. "Broke people care deeply about what you think," he wrote. "They’re afraid that you’re going to outpace them because you’re doing smart things with money."
Ramsey contrasted this with those who have built real wealth, noting that most millionaires don't waste energy trying to look rich. "Most people who aren’t broke don’t give a crap what you think," he said, explaining that their wealth came from living for themselves, not for others' approval.
He added that shedding concern for outside opinions leads to a major shift in spending habits and lifestyle: "You tend to make completely different purchases and live a completely different lifestyle."
Hope, Not Knowledge, Is The Biggest Barrier To Wealth
In 2023, Ramsey said the biggest obstacle to financial success isn't a lack of information, but a lack of belief. Many people skip saving or budgeting because they doubt it will make a difference. "I don't believe if I save money, I can really be a millionaire," Ramsey explained.
He compared it to farming, planting corn takes faith that a harvest will come. Likewise, making financial progress requires trusting that consistent effort will pay off.
Ramsey said reigniting that sense of hope is a core mission of his show, because without it, even the best money advice won't stick.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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