005 | Why Everyone Needs Dave Ramsey and Why You Should Ignore Him

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Choose FI has partnered with CardRatings for our coverage of credit card products. Choose FI and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. Disclosures.

We discuss where ChooseFI and Dave Ramsey agree and disagree.


  • Dave Ramsey and Jonathan’s history following him
  • Dave’s unyielding stance on debt: don’t do it
  • Review and evaluate Dave’s teaching philosophies
  • Baby Step 1: Get an emergency fund of $1,000
  • Baby Step 2: Pay off all your debt except for your mortgage
  • Explanation of the Debt Snowball
  • Our hybrid approach to the Debt Snowball vs. Debt Avalanche
  • Advice isn’t “one size fits all.”  You need to figure out what works for you!
  • The 4% rule explained and the impact on financial independence
  • Dave Ramsey says to not take advantage of 401k match if you’re paying off debt
  • The math of personal finance vs. the psychology of personal finance
  • Baby Step 3: Get 3-6 months of expenses in savings
  • Our personal emergency fund strategies
  • Baby Step 4: Invest 15% of household income into Roth IRAs and pre-tax retirement funds
  • Baby Step 5: College funding for children
  • Baby Step 6: Pay off your home mortgage early
  • Baby Step 7: Build wealth and give
  • Please leave us a written review on Itunes to help the podcast grow

Corrections from the show

Roth's do not require any seasoning period. You can withdraw your initial contributions tax free at any time for any reason. It does not have to season for five years. Practically this makes the Roth even more powerful as a possible savings vehicle during your teens and college years when your tax rate is very low

Links from the show:

Books Mentioned in the Show:

Why Everyone Needs Dave Ramsey and Why You Should Ignore Him

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Choose FI has partnered with CardRatings for our coverage of credit card products. Choose FI and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. Disclosures.
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