Personal finance personality Dave Ramsey delivered a fiery speech, targeting what he described as pervasive "lies and bad advice" in financial discussions. He argued this misinformation fosters a sense of helplessness among people regarding the current economy.
"The lies and the bad advice are everywhere out there," Ramsey stated. "You’re death scrolling into oblivion and it’s just not true."
He specifically addressed claims about historically severe inflation and mortgage rates. Ramsey presented figures, noting inflation in 2024 was 3.4%, compared to 6.2% in 2022, 7.4% in 1982, and 12.4% in 1980. On mortgages, he said interest rates in 1982 reached 17.66%, whereas current rates are near 5%.
Ramsey also contested the notion that average Americans cannot manage their finances. He cited a median household income of $83,000 against average household expenses of $78,000. "The math says otherwise," he remarked.
Regarding car purchases, he pushed back against the idea that buying without a loan is impossible, citing data showing an average new car cost of $42,000 with average monthly payments of $748. "We have an affordability crisis on our housing because we have a car payment in the driveway," Ramsey said. "And you got screwed by Citibank and Ford Motor Company."
He challenged the belief that budgeting is only for those with limited means. A survey by Ramsey Solutions of over 10,000 millionaires found 93% maintained a monthly budget. "So there’s your little statistical analysis. Cause and effect. Correlation. Causation," he added.
Ramsey criticized trendy financial tactics, such as using an LLC to write off personal expenses. "No, you can’t. That’s straight-up illegal," he stated. "Your house electricity is not a business expense. Ever heard of an audit? They’ll come take your stuff from you."
He highlighted a contradiction in fearing a 5% mortgage while carrying credit card debt with a 22.8% interest rate. "It’s a bit illogical, people," he noted.
On retirement, Ramsey said investing $70 monthly from age 22 to 67 could yield a million dollars at prevailing market rates. He dismissed the idea of easy, passive income from starting a business. "Easy and passive? Bull crap," he said. "Only on TikTok."
Ramsey shared his personal experience of losing a $4 million portfolio due to excessive debt. "I had built a house of cards and I shouldn’t be shocked that it fell," he recalled. "I gave them access to my life and let them screw me."
His recovery, he said, came from applying simple principles: "Live on less than you make. Get out of debt. Have a plan. Be generous. Grandma’s common sense."
In closing, Ramsey told the audience they have significant opportunity. "You have so stinking much freedom if you’ll turn off the stupid talking heads and the white noise and go be somebody," he said. "It’s unbelievable what you can do."
He urged people to ignore misleading sources. "Stop listening to the Hope Steelers," Ramsey said. "They’re wrong. The data says they’re wrong."