Should you take advice from Dave Ramsey? This is Noelle Randall, real estate millionaire,
entrepreneur, mentor, speaker, author, mom of 5 and so much more and in today's episode I am going
to just talk with you straight and tell you some of the advice that I have gotten from Dave Ramsey,
which advice I think is great as a millionaire and advice that I'm going to tell you is absolute
trash. We're gonna get into it. The good, the bad and the ugly of advice from Dave Ramsey. Let's go.
So, let's get to it. First and foremost, Dave Ramsey is a well-known podcaster
television personality and he is considered an expert in the area of personal finance.
We have seen many books, articles and lots of things where Dave Ramsey is giving advice
on finances and some of it is great advice but most of it, I just do not agree with. I'm gonna
share with you the top 10 things that Dave Ramsey has shared, pieces of advice that he gives all the
time from his books, his podcast, his radio show. I am going to break down all of Dave Ramsey's advice.
The best advice he has given, the worst advice he has given and everything in between with my
real opinions on what you should do. Let's get into it. Number one, stop buying new cars. This
is a rule that Dave Ramsey and Susie Orman say all the time. They're constantly telling people
not to buy new cars. The reason why they tell you not to buy cars is because cars are depreciating
assets and for many people, they pay too much per month for their car and it eats up too much of
their monthly income. Now if we are talking about a normal person and living a very average life, this
is great advice. If you want to live an average life and be a mediocre person then sure. Never buy
a new car but I seriously doubt that the rich and the successful people in the world don't drive in
new cars. I just don't feel that is what they're worried about so let's take this from two points.
If you are someone that is getting started in your life, you're in a very bad financial situation
and someone tells you you need to change your economics, you need to change your personal
finances, they're going to give you advice like save more money and one of the things to save more
money would be to stop buying new cars. You could definitely buy a used car for a lot cheaper. You
also can get a used car for about the same as a new car with the same features because like I said,
cars are depreciating assets. Meaning they go down in value over time. So, this is some Dave Ramsey
advice that's not terrible. It's not. If you are an average person or if you're a person building
to your success status, then you probably should stop buying new cars. It's something that wealthy
and successful people do because quite frankly, they write their cars off in their business.
Now let me give you Noelle's advice on buying new cars because it's a lot more interested than
what Dave Ramsey and Susie Orman are telling you. Envision yourself in your new car. Yeah, I
know. I'm telling you to stop buying cars but more importantly I'm telling you to start envisioning
yourself in your new car. When I decided that I wanted to be a millionaire, I was broke. I was
bankrupt, I had bad credit, I had no money, that's when I made the decision to become a millionaire
and one of the decisions that you will make as you change your life is how you see yourself,
what you do, what you look like, what your life looks like and if you always see yourself
driving a raggedy car or driving a used car then guess what? That's what you're gonna get. This is
not great advice. I mean it's not terrible advice. I don't think it's the worst advice that Dave Ramsey
and Susie Ormon gives but it's definitely not the advice that you would give to someone that you
expect to be a millionaire or a billionaire, which is who you are, the person that I'm talking to.
My audience is not the audience that is looking to save money. My audience is looking to make more
money, to create more income for themselves and live the life that they deserve, that's the message
that I have and what we share in common. Shrinking your life down, not going to Starbucks, not buying
a new car ,living in a meager house and living a meager life is only going to allow you to manifest
more of those things. So if you want to drive a new car, you should start envisioning yourself in a new
car. You should go to the dealership and see the car that you want and you should start focusing on
making more money. So many times Dave Ramsey, Susie Orman and so many of these other gurus on finances
constantly tell you to live a small life. They're constantly telling you to shrink down your life so
that you can save money. Meanwhile these are rich people, very wealthy people living in mansions
and having multiple cars. You think Dave Ramsey drives around in an old beat up car? I assure you
he does not. In fact most of his cars are in his corporation. I've actually looked this up and he
has lots of cars that take him to and from and he even has a private plane. So the fact that they're
telling you to live these small lives, just doesn't fit. It's fine if that's what you're trying to do
to get some money saved up so that you can live your bigger life but should this be a goal of
yours to not buy a new car? Absolutely not. In fact I'm about to buy me a Rolls Royce Cullinan and I'm
gonna share that with you guys as soon as I get it. Number two, buy a modest house that you can afford.
Dave Ramsey loves to tell people to buy an inexpensive house. Don't buy the most house
that you can buy. He often says that you should buy an affordable home so that your home is not
taking up most of your income. Now of course on the surface this makes sense. You don't want to
have a house payment that is too expensive for you because that's going to create stress on your life,
that's one way to think of it or you can buy the biggest, nicest house that you can afford and then
make more money, that's always what I suggest. So, buying a modest house is a great way to
save money in the short term and to live in a modest house, I guess. I don't know, I've been
taught by my coaches and mentors not to live in a modest house, not to aspire to live in a modest
house, not to aspire to be a mediocre or an average person. And so my recommendation to you is that you
not be average. I suggest to you that you be great. Great rich people do not live in a modest, meager
house that they can afford. Yes, they can afford that house but is it a modest house, is it what
they see themselves in because for me that's not the goal. Your goal should not be to live a modest
meager life. Your goal should be to live the best life that you want, whatever that means for you.
There are plenty of us that do not want to live in a mansion you know it's a lot to
maintain, trust me. I live in an 8 bedroom home and and there's lots of people there always
doing things but would I like to live in a tiny little shack with all of my kids and my husband
and my nannies? Probably not. We're probably going to want to live in a nice, spacious home
that fits us all very comfortably. Now again it's about what you want. This is not a judgment
about where people live because I used to live in my parents basement but just imagine, just imagine
for one second if I stayed in that mindset, would I be here talking to you? Would you even be listening
to me? If I lived in a modest house and I thought really small and I didn't have millions of dollars
or a successful business, would you be listening to me? Should you be listening to me? No. Why would you?
You already know how to create those things on your own. So if you're listening to someone that
is successful which is what I did this is not like you're a crazy person. You're listening to someone
that's successful in something that you want to be successful in. It's what I did and if I'm listening
to the successful person, I want to emulate the things that they have and the things that they do.
Ii do not live in a modest home that I can afford. I live in a home that I can afford but it is far
from modest, that's the key. Live in the home that you think that you deserve and make that your goal,
not to live in a modest house, that's not your goal. You probably already live in a modest house
that you can afford. Number three, pay off your credit card debt in full every single month.
This is a grand piece of advice from Dave Ramsey. He thinks that you should pay off all of your
credit card bill every single month and you should never charge more than you could pay
in a month. This is actually good advice. When it comes to personal credit, you do kind of have to
follow this mission because otherwise you're not going to have a good credit score which is why I
actually teach you to get business credit and to get a business so that you can have funds in your
business's name and not rely on your personal credit. When you rely on personal credit the way
that Dave Ramsey teaches you, then yes. You are going to have to get to the point where you are
paying your credit cards off every single month so that you don't pay any interest and so that
your credit card stays high. If you do not pay your credit card off each month and you run a balance
with your personal credit, you will be paying a lot in interest and you will be lowering your credit
score or you won't have a great credit score. In order to have a great credit score, paying off
your credit cards every single month is best. Now let me tell you what Noelle really thinks because
on the business credit side which is what I'm always teaching you, none of that matters. Do you
think that amazon or Walmart's pays every single one of their debts in full every single month? You
think they don't carry debt over and actually it's a benefit on the tax system that we have
to do things like that. So without me getting into this long rambly geek thing about why you don't
need to do that when it comes to having a business, just know that you want to be a business. Playing
around in the personal credit space world is going to allow you to have to pay off your credit cards
every single month like Dave Ramsey is saying and live the life like Dave Ramsey is telling you.
But if you listen to Noelle Randall and you become an entrepreneur and start a business even if
it's a small business, you will get away from all of those ideas and onto bigger ideas.
Business is business and businesses and banks treat businesses like businesses.
They do. They want to fund businesses, they want to grow businesses and they want to invest
in businesses way more than they want to invest in individual people. So again this is okay advice
from Dave Ramsey but it's better advice to not even worry about personal credit and to have a
business and business credit. Whoa, you see I am on a road. Dave Ramsey really gets me heated up.
Please comment below and tell me some of the worst advice or best advice that you have heard from him.
Again, I am all positive. I do not want to trash anybody so if he says some great things, please
type them below, let's have a conversation about it. If he said some awful things, type that below and
let's talk about it. I want to hear your real opinions, let's do it. Comment below. Get to it.
Number four, avoid brand names. This is a great piece of advice from Dave Ramsey that I think is
absolute crap. I don't like this piece of advice at all and I don't know what it has to do with
earning more money or becoming rich. Avoiding brand names like Nike, Adidas or Kellogg's cereal
and buying off-brand things will definitely save you money. You definitely can buy your clothes from
Walmart and buy your food from grocery stores with no names on them where they don't give you a
bag or a shopping cart. You're definitely welcome to do all of these things however, however this
is not the behavior that is going to lead to you becoming a millionaire. Millionaire is a mindset,
rich is a mindset and before you actually ever manifest the money in your bank account, you need
to manifest it in your mind and for some of us, that does require us looking good because when
you look good, you feel good. Now do I suggest that you buy Gucci and Fendi and all these name brands
to impress people? Please don't. It impresses no one, that's absolutely not what I'm saying however if
you can afford those things and you like wearing nice clothes, it really does not matter. This is of
no indication whatsoever of your wealth. I have seen rich people wear Burberry and Fendi and I
have seen rich people that would only buy clothes from the thrift store. What you wear has very
little to do with what's in your bank account. Okay so Dave Ramsey telling us to not buy name brands
is a decent piece of advice because it's getting you into the mindset that name brands don't matter
and it's true, they do not. However it teaches you absolutely nothing on the mindset of becoming a
millionaire the true behaviors that will require you to be a millionaire and that is living the
life that you deserve and wearing and doing the things that you want to do. Buying clothes that
you may not be able to afford in the beginning. Oh, absolutely. You please believe that you you're
not going to be able to go to a meeting with these great people and have one old raggedy clothes. Now
do they need to be name brand or Gucci? Absolutely not however you do need to invest in yourself.
And so this is more about investing in yourself and trying to save money in order to become rich
is not going to work. So should you avoid name brands? Like I said, it's a nothing piece of
advice. Avoiding name brands is not gonna make you rich so. Number five, keep your current cell phone.
This is a great piece of advice that again really doesn't mean much from our old guy Dave Ramsey.
One of the points that he always makes with keeping your current cell phone is that we don't
need every new technology that comes out. Again Dave Ramsey is from the school of thought that you
should cut back and save in order to have money for retirement and things like that. You should
really cut back and that's just not the philosophy that I live in. I had a millionaire mentor, she was
making two million dollars at the time and what she taught me was make more money instead of me
going to lunch break and eating my food out of a Tupperware and skipping Starbucks each morning,
she told me why don't you make more money and eat at all the restaurants you want and all the drink
all the Starbucks coffee that you want. Instead of living a small life, why don't you think bigger
and this is the same thing. Constantly I feel like Dave Ramsey is teaching us to live a small life,
to shrink ourselves and that is the way to get to financial success, that's simply not true. Rich
people earn a lot of money, that's why they're rich. This is about earning money instead of looking
about trying to save your thirty thousand dollar a year salary, you need to increase your salary
to three hundred thousand dollars per year and it's possible, trust me I've done it. I literally
used to make 30 grand a year then it was a year I made $300,000 a year, now I make that in a month, a
bad month. So, you can grow your income and that's the focus of all of this. Instead of listening to
Dave Ramsey and taking his advice on closing down your life and shutting down your life so that you
can live this meager life so one day you could retire when you're real old, yeah, no or you could
make money right now, change your life, go from broke to millionaire. What people are doing every
single day just by changing their mindset and what they do, they are becoming millionaires and
that is the advice that I have for you. Keep your cell phone, get a new one, I don't care either way.
Number six pay cash whenever available. Dave Ramsey loves to teach us to pay cash whenever available
and that is the worst piece of advice I've ever heard in my life. Paying cash means that you have
to have the money for everything that you buy and I get it. Again, Dave Ramsey is teaching people how
to be very average in America. He wants to take people that are maybe living really, really low
and get them to living a little bit better, that's definitely not my goal. My goal is to
take anyone at any stage in their life and tell them and teach them that they can be a millionaire.
Being a millionaire, you will not pay everything in cash, I don't. I don't have any interest in doing
that. I literally have millions of dollars in cash and millions of dollars in credit cards. Why would
I use all of my cash when I could use that cash to invest, that's what I use my cash for. I invest
my cash. I invest my cash in real estate, I invest my cash in businesses, I invest them in cars,
I invest my cash into things that will make money. This is what you should be doing, you should not be
spending your cash on everyday things and things like that you could use a credit card for that and
then pay the credit card off if that's your choice but if you are actually trying to grow your income,
you should be using your cash to invest in your business. You should be using it on marketing,
you should be using your ads, you should be using so people know where you are, making videos putting
your content out there. You should be using your money to get a return on your investment whether
you're investing someone else's business or whether you invest in yourself which is what
I suggest. I suggest you invest in yourself and you invest in your business, that's what you should do
with your cash. Any cash that you have, you keep it focused on yourself. Do not buy everything in cash.
I'm not sure where again as someone with an MBA from Baylor which is me graduated top 10%
of my class, I had never even heard this piece of advice. Even regular basic people that are not rich
do not say that you should buy everything in cash. I'm really not sure where he got this idea from. I
think that maybe it's from someone that's not good with credit but again, you can learn to be
good at credit and and not just avoid it. I think that's probably the worst thing that people do you
know someone's not good at credit, they don't pay their bills on time so they wow, I'm not going to
touch that. I'm not going to use credit, I'll just pay- No, get good at it. You can learn anything and
you are smart enough to learn how to pay your bills on time. This is not rocket science. Okay
so you can learn to do this. Do not listen- this is the worst piece of advice I've ever heard from
Dave Ramsey. Please do not try to buy everything in cash especially things that will make you money
like real estate and cars. I have created an entire training just for you and I'm giving it away to
you absolutely free. Go to noellesfreetraining.com, that's Noelle, n-o-e-l-l-e with an
s. noellesfreetraining.com. Learn my formula for investing in real estate with no money, bad credit,
you know the same way that I did and how I made millions. I'm teaching it all to you absolutely
free. noellesfreetraining.com. I just want to make sure that you have all of the resources, all of the
tools and all of the knowledge that you need to be successful. This is Noelle, to your success.