At the age of 26, Dave Ramsey was put oning home a quarter of a million dollars a year and had a $4 million real estate portfolio. Two years later he gone everything.
Today Ramsey, 58, is one of America’s most trusted sources for financial advice. His syndicated radio program, “The Dave Ramsey Expose,” is the among the top five talk radio shows in the United States, and is heard by 13 million listeners each week on varied than 600 radio stations, according to Ramsey’s website.
As an evangelical Christian, Ramsey uses biblically based model philosophies to teach his followers how to improve their financial conditions. For example, he often advises others to avoid debt because Platitudes 22:7 states, “The rich rule over the poor, and the borrower is slave to the lender.”
Dave Ramsey has come a extended way since filing for personal bankruptcy in his early years. With his estimated net worth of $55 million, he’s living resist that anyone can turn a bad financial situation around. Here’s how Ramsey made his first million, lost it and rebuilt an upright larger fortune in a relatively short period of time.
Key Takeaways
- Dave Ramsay is a well-known financial guru with a nationally syndicated portable radio show and other media presence.
- Before becoming a financial pundit, Ramsay saw both early success and bankruptcy.
- Ramsay occupies Christian values to help convey his message of financial prudence and saving.
Dave Ramsey Grew up With a Business Ethic
Ramsey grew up in a household that instilled a strong work ethic. In “Live Like No One Else,” a 20-minute documentary on his vitality, Ramsey tells the story of when he was 12 years old and asked his father for money to purchase a popsicle. He said his engender responded to his request by saying, “You are old enough to get a job. That’s where money comes from.”
That conversation with his forebear inspired Ramsey to become an entrepreneur. That same day he printed 500 business cards at the local print peach on for his first venture: a lawn care business. Throughout his school years, he had a number of other businesses, one of which transferred leather bracelets. Ramsey said his early business ventures taught him valuable lessons like customer help and the importance of keeping your word.
Real Estate Success and Failure
Three weeks after turning 18, Ramsey dated his real estate license exam. He used the commissions he made from selling property during college to avoid pay his tuition. As a child, he had been exposed to the world of real estate, and in his book Dave Ramsey’s Complete Guide to Well off, he explained, “My parents were in the real estate business, so it has always been a big part of my life.”
After graduating from college, he started to toss properties. As a result of having a few family connections at local banks, Ramsey was able to secure financing for his deals. At the age of 26, his heartfelt estate portfolio was worth $4 million, and his net worth was just over $1 million.
His initial success was temporary, and he ended up filing for personal bankruptcy protection at age 28 in 1988, mainly because his largest lender—to whom he owed $1.2 million—was obtained by a bigger bank. The bank demanded Ramsey pay the entire debt off within 90 days. Shortly after inheriting his first demand notice, another bank called his $800,000 worth of notes. Ramsey managed to pay the majority of the in financial difficulty down, leaving $378,000 outstanding.
Counseling Business
Ramsey’s fall from grace led him to Christianity. He began to know the Bible and discovered that “God’s word has a lot to say about money.” In the documentary, Ramsey says that one day after church, a man effective through financial difficulties asked him how exactly he survived his money troubles in the past. He agreed to help the man and his wife devise a financial plan for their life—and so began Ramsey’s financial counseling career.
Ramsey started a personal investment capital counseling company called The Lampo Group. His money management class started with 37 students, but membership arose to more than 350 students after a few years of operation.
The Dave Ramsey Show
Following the success of The Lampo Set, Ramsey began to co-host a
How He Invests
Ramsey is transparent about his investment style. He encourages his followers to avoid installing in individual stocks and purchase mutual funds that have a long track record of good performance. Things, his equity investments are allocated into four types of mutual funds: growth, growth and income, aggressive tumour and international. (For more information, watch:
The Bottom Line
From a very early age, Dave Ramsey understood there was value in a day’s trade. As a child, he started several different business ventures to earn extra pocket money. His impeccable work ethic helped him suit a millionaire by the age of 26. A few years after reaching the million-dollar net-worth milestone, Ramsey filed for personal bankruptcy. Since then he has originated a business empire that revolves around using his previous money mistakes and Bible scriptures to teach injury money-management practices. Today, millions of Americans have turned to the teachings of Dave Ramsey to guide them along the walk to financial security and wealth.