Personal finance expert Dave Ramsey didn't hold back in a social media post, calling out Americans for mismanaging their income and staying trapped in a cycle of debt.
What Happened: This week, Ramsey shared a video on X, while blasting the mindset that blames low income for financial hardship. Instead, he pointed the finger at debt-fueled lifestyles.
"You're not broke because you don't make enough," Ramsey wrote. "You're broke because you give your income to everyone else."
In the video, he criticized the use of credit cards, car loans, and student debt. "Credit cards stupid. Student loans stupid. Car payments stupid on steroids," he said. "Borrowing money on your house to put granite countertops in? Somebody ought to smack you."
"Think, think, think, seriously," he said, urging people to pause and reexamine their financial decisions. "We're fat and we're broke because we have no ability to do critical thought."
He urged viewers to take control by making a zero-based budget, paying cash for purchases, and using the debt snowball method to eliminate what they owe.
"Your income is your #1 wealth-building tool," he said on X, “If you keep it, budget it, and invest it, you can break the paycheck-to-paycheck cycle and finally get ahead. No more excuses.”
Why It Matters: Ramsey has been a vocal critic of debt and financial struggles in the U.S. In a previous interview, he highlighted the detrimental impact of debt on financial potential and proposed a step-by-step plan to achieve financial peace.
In April, A 49-year-old caller told Ramsey he still owed $20,000 in student loans after 19 years of payments. Ramsey advised him to skip forgiveness programs and pay it off in one year by drastically cutting expenses.
Earlier this month, a 24-year-old remodeling business owner admitted to Ramsey that he's $260,000 in debt after misusing client deposits to cover payroll and past losses. With unpaid vendors looming and angry clients inevitable. Ramsey urged him to focus on fast-paying, small projects to dig out of the financial mess.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: T. Schneider / Shutterstock.com
