Dave Ramsey or Robert Kiyosaki?

Question

Hey I just wanted to know and get advice on the Subject. I follow Dave Ramsey and Also Robert Kiyosaki. Both have great points. But there reviews are totally different. Question: which method would be best to follow when it comes to Investing? Any success stories on following Dave Ramsey path?

Ben Leybovich · Answer

It's not one or the other - it's both. Your job is to figure out how to synthesize both boints of view :)

Anthony Gayden · Answer

Why does it have to be one or the other? I like them both. I used Ramsey's plan to get completely debt free.

I followed Kiyosaki's advice and got into real estate. I did break Ramsey's rule about using all cash, but aside from the mortgages on my properties, I have no other debt. I have no credit cards, I have no car payment, I paid off my student loan, I save and invest 40%+ of my income, far higher than Ramsey suggests. I have an emergency fund large enough to pay all my bills including my two mortgages for 6 months.

The reason I decided to not follow the Ramsey plan was because I kept doing the math and no matter what, you won't be able to make as much money or become as wealthy if you use cash if you buy right and have good cash flow. Also the time you spend saving is just too long unless you have a huge income.

If I had waited until I saved enough cash to buy my properties, it would be another 10+ years of living like a hermit to get that amount. All the while I lose out on appreciation, mortgage pay down by my renters, and the added monthly income. It seemed like a no brainer to me. Let my tenants buy the property for me, and pay me to do it.

Kyle D. · Answer

I enjoy listening to both these guys. I like the idea of trying to pay down the mortgage early. Pay a little extra every month if you can. You'll be glad you did.

Justice Cannie · Answer

I'm not a fan of Dave, I fell he's all about being debt free. I would lean more toward Robert.

Mike Oconnell · Answer

Both are great to listen to and learn from. You have to decide which system, or combination of systems is right for you. It's certainly hard to argue the safety of investing debt free, but a small amount of "good debt" in order to boost profit is also hard to argue with.

Richard C. · Answer

Which provides the deepest, most fully-formed examination of philosophy, "Everything I Needed to Know I Learned in Kindergarten" or "Chicken Soup for the -whatever- Soul"?

A pox on Ramsay and Kiyosaki both.  Read a real book.

Corby Goade · Answer

Dave is great for personal finance, being debt free personally will give you a great leg up when starting your business. And of course owning a property free and clear is the best way to go, but not many people and do that, and leverage really is the name of the game. Dave is always preaching about how great real estate is, but he says you should save and buy it free and clear. In my area, a basic 3/2 SFR would cost me almost four year's salary at my day job. It's just not realistic for me. Leverage and let other people pay your mortgage.

Jonathan Plant · Answer

Like Kelly said, Dave Ramsey is there to help people get on the right track.  You have to start with your own finances first before you attempt to deal with business finances.

If you have ever fully researched mutual fund companies, they keep their overhead costs low (consumer expenses) but they leverage (borrow $) and put it with your money to invest.  This leverages your returns as an investor.  Same with real estate.

Just ensure your numbers are correct before diving in...

Happy hunting:)

Jay Hinrichs · Answer

debt in the wrong hands is dangerous.. never can argue with owning properties free and clear.

Kelly N. · Answer

Dave is about getting out of Bad Debt, Robert is about creating wealth.  Both are great strategies but for different steps in the game.  Do you have debt aside from your house?  Car?  If you do, I would pay those off first (except the house) and then use leverage to buy real estate.

This topic has been discussed quite a bit, you could find previous threads by doing a search.

Dave Ramsey or Robert Kiyosaki?

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