News & Trending Money News

What Financial Advisors Really Think About Dave Ramsey’s Top Money Advice

Experts weigh in on the strengths and limits of Ramsey's money tips.

By Summer Nevins

Edited by Sara Albertelli

Updated Jan. 9, 2026

Dave Ramsey's money rules have helped millions get ahead financially and break bad financial habits, especially around debt and spending. But while his advice is easy to follow, many financial advisors say it isn't one-size-fits-all, and in some cases, it may be too strict for today's financial landscape.

Below, we explore what financial advisors really think about Dave Ramsey's top money advice, including where it helps most and where experts say flexibility matters.

Get instant access to hundreds of discounts

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks like discounts on travel, dining, and even prescriptions.

Get 25% off membership — just $15 for your first year with auto-renewal — and a free gift if you join today.

Become an AARP member now

The debt snowball method

This method is a strategy where you list your debts from smallest to largest and focus on paying off the smallest debt first while making minimum payments on the others. Many advisors see value in the debt snowball, with some caveats.

"If you can realistically pay off your debt on your own, the snowball can be very effective," says consumer finance and debt expert Austin Kilgore, with the Achieve Center for Consumer Insights.

He notes that quick wins from paying off small balances could boost motivation, though borrowers focused on minimizing interest may prefer the alternative avalanche method (paying higher interest balances first) or need alternative solutions if repayment isn't feasible.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Claiming Social Security at 62

Dave Ramsey generally advises claiming Social Security at 62 to start receiving benefits as early as possible, prioritizing immediate income over maximizing long-term payouts.

Many financial advisors push back on Ramsey's stance on claiming Social Security at 62. "The life expectancy he cites is at birth, not at age 62," says Harold Zazula, CFP, noting that Social Security estimates longevity at 83.7 once someone reaches 62. Zazula also points to survivor benefits, regret risk for long-lived retirees, and flawed comparisons between guaranteed benefits and market returns.

Building a starter emergency fund of $1,000

In Ramsey's popular "Baby Steps" program, the first step is to build a starter emergency fund of $1,000 and then tackle high-interest debt before saving any more. Some experts argue that a $1,000 starter emergency fund falls short.

Ashley Morgan, a debt and bankruptcy attorney and owner of Ashley F. Morgan Law PC, says that amount may not even cover a basic surprise expense, like a dental bill. While $1,000 could work for those close to becoming debt-free, she says people facing a longer payoff timeline should aim to save enough to cover a major insurance deductible or at least one month of expenses to avoid taking on new debt.

Resolve $10,000 or more of your debt

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.¹ <p>Clients who complete the program and settle all debts typically save around 45% before fees or 20% including fees over 24–48 months, based on enrolled debts. “Debt-free” applies only to enrolled credit cards, personal loans, and medical bills. Not mortgages, car loans, or other debts. Average program completion time is 24–48 months; not all debts are eligible, and results vary as not all clients complete the program due to factors like insufficient savings. We do not guarantee specific debt reductions or timelines, nor do we assume debt, make payments to creditors, or offer legal, tax, bankruptcy, or credit repair services. Consult a tax professional or attorney as needed. Services are not available in all states. Participation may adversely affect your credit rating or score. Nonpayment of debt may result in increased finance and other charges, collection efforts, or litigation. Read all program materials before enrolling. National Debt Relief’s fees are based on a percentage of enrolled debt. All communications may be recorded or monitored for quality assurance. In certain states, additional disclosures and licensing apply. ©️ 2009–2025 National Debt Relief LLC. National Debt Relief (NMLS #1250950, CA CFL Lic. No. 60DBO-70443) is located at 180 Maiden Lane, 28th Floor, New York, NY 10038. All rights reserved. <b><a href="https://www.nationaldebtrelief.com/licenses/">Click here</a></b> for additional state-specific disclosures and licensing information.</p>

Living on a written budget

Many advisors agree that budgeting is one of Ramsey's strongest lessons. "Living on a real budget should be the foundation of financial literacy," says David Wiedmeyer, CFP and owner of KLD Wealth Management, noting that many people mistake tracking spending for actually planning it.

He adds that patience, paired with a clear budget, helps people avoid comparison-driven spending, get-rich-quick schemes, and reliance on credit to keep up appearances.

Not using credit cards

Some advisors disagree with Ramsey's blanket ban on credit cards. "Used thoughtfully, a credit card can be a financial tool, not a spending license," says Kilgore. He notes that paying balances in full could provide fraud protection, safer online and travel purchases, and help build a strong credit profile that affects loans, housing, insurance, and even employment.

Never carry consumer debt

Many experts agree with Ramsey on avoiding consumer debt. "Across our global data, recurring consumer debt consistently erodes household financial health," says Srbuhi Avetisyan, an analyst at Owner.One.

She emphasizes that the damage isn't about poor discipline, but the compounding effect of high interest. Eliminating consumer debt, she notes, could quickly restore financial resilience and reduce long-term instability.

Make Money: 8 things to do if you're barely scraping by financially

Staying focused on long-term investments

Dave Ramsey advocates for disciplined, long-term investing in traditional assets like stocks and retirement accounts, emphasizing consistency over speculation. Some experts say Ramsey's long-term investing message overlooks inflation protection.

"I agree with Dave Ramsey on discipline and long-term focus, but he completely misses the need to hedge against inflation," says Joshua D. Glawson, Content Manager at Money Metals Exchange. Glawson argues that modest allocations to precious metals like gold and silver could diversify portfolios and help preserve purchasing power in ways cash and traditional assets may not.

Pausing retirement savings to pay off debt

Dave Ramsey recommends pausing retirement contributions while aggressively paying down debt, arguing that eliminating debt first creates a stronger financial foundation.

However, Morgan cautions against this approach: "Delaying retirement savings is not recommended. Compound growth and employer matching are critical tools for building long-term wealth. If paying off debt will take years, skipping retirement contributions could cost you significantly in the future."

Avoiding get-rich-quick schemes

Dave Ramsey strongly advises steering clear of get-rich-quick schemes, emphasizing that sustainable wealth comes from disciplined saving, debt repayment, and long-term investing.

"Across 18 countries, we consistently see families lose significant capital not from markets, but from mis-evaluating risk under emotional pressure," says Avetisyan. Morgan adds, "While they can occasionally work, the risk of losing any investment in these schemes is too great for most people."

Wiedmeyer emphasizes the role of patience: "When you compound impatience with the lack of a budget, get-rich schemes become increasingly appealing, driving a doom spiral of unaffordability."

Earn $200 cash rewards bonus with this incredible card

The Wells Fargo Active Cash^® Card (Rates and fees) has no annual fee and you can earn $200 cash rewards bonus after spending $500 in purchases in the first 3 months.

Cardholders can also earn unlimited 2% cash rewards on purchases.

The best part? There's no annual fee.

Click here to apply now.

Bottom line

Dave Ramsey's financial advice offers clear, actionable steps for managing debt, budgeting, and investing, making it especially helpful for those seeking structure, discipline, and ways to build wealth. However, experts caution that some guidance, like claiming Social Security early, pausing retirement contributions, avoiding all credit cards, or ignoring inflation hedges, may not suit everyone's long-term financial goals.

A practical takeaway: consider combining Ramsey's principles with personalized strategies. Using credit cards responsibly, planning for inflation, and building an emergency fund that covers three to six months of living expenses could strengthen financial resilience while still benefiting from his foundational advice.

More from FinanceBuzz:

Benefits

Card Details

$0 annual fee
Intro APR on purchases and balance transfers
Apply Now

INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
Redeem cash back for any amount. No annual fee.
Get a 0% intro APR for 15 months on purchases. Then 17.49% to 26.49% Standard Variable Purchase APR applies, based on credit worthiness.
Terms and conditions apply.

Discover <span class='whitespace-nowrap'>it<sup>®</sup></span> Cash Back

4.7

Apply Now

on Discover’s secure website

Read Card Review

Intro Offer

Discover will match all the cash back you’ve earned at the end of your first year.

Annual Fee

Why we like it