If I followed Dave's advice I would be broke now
I noticed that over the years Dave Ramsey has changed some of his positions. Before if someone had two debts, one for $6000 at 30% interest and another debt of $3000 at 4%, he would tell them to pay off the $3000 smallest to largest while the higher interest loan grows. I understand that point but lately he has changed his position for the better on that. I even hear him sometimes tell people to take out a lower interest loan to pay off a higher interest which is good. Before he would say that you cannot borrow your way out of debt.
The two craziest thing he has ever said in the past but no longer does unless someone is totally out of options, is when someone could make $100k but have a $20k car loan and he would tell them no debt of any kind, sell the car, buy a piece of crap, then get a loan for the difference. Now he tells them to pay the car off quicker.
The main reason for my topic is that I worked in a very tough industry for eight years as an employee and followed the Dave plan to a point as far as lowering your personal expenses which I totally agree with. With sacrifice and working seven days a week I paid off my house and I never had any credit card debt so I was totally debt free for years. Though I realized its not a big deal since I am not a big spender so I didn't even notice a change in having an extra $900 a month in savings from a mortgage.
While I was being totally beat down by my job I spent years trying to find another company to work for but they all follow the same script where if one company offers something they do the same. If one company lowers their pay then they do so the same. I loved my job but wanted to do things more efficiently and without the drama. I did something that Dave would have never approved of, I took the plunge and got a $200,000 business loan, put $50k down to start my own company.
I can hear Dave now saying how its just a huge risk and once I borrow money my life will be ruined and have problems every day. Here is the thing, I grew up poor and lived lower middle class my entire life. I made $80k as an employee, and I expected to make around the same after business expenses except I would have more freedom. To my SHOCK I was bringing in $35,000 per month I had no idea there was so much money to be made. I already paid off the $200k business loan and living like a king. I can fly first class to anywhere I want around the world no problem.
This is not the end of the story, the odd thing is without warning the company I worked for eight years shut down the department I was in and everyone I used to work with got laid off. So right now I would have been looking for a new job making the same pay while saving up $200k for years instead of making $400k. Dave is keeping everyone middle class until they retire 50 years later with a million dollars in a retirement account. This is what the government and corporations want they do not want you to be rich they want you to rely on them. I have people contacting me all the time asking for a job making 70% less than I make as an employee for the same amount of work it is amazing.