Les Jones

Economics > Dave Ramsey

I finally took the plunge and sat down to read a book by personal financial adviser Dave Ramsey. I have a couple of friends who follow Ramsey's advice, I had read his Web site, and without reading his books Melissa and I borrowed his envelope system for our grocery and dining budgets. His profile in the New York Times today finally pushed me over the edge. Like me, he's a native Maryvillian and a UT alum. I had to read him. I browsed three Ramsey books at the store, and came home with one.

Ramsey emphasizes the basics. His clients and listeners are often in debt over their heads. He cautions people not to confuse a platinum credit card with financial success.

Ramsey is a rarity in that he emphasizes character and values over absolute economic success. He argues (correctly, I think) that financial success and values can and should go hand in hand. It's difficult to have success without integrity, and pointless, too. Among those values is peace of mind: if you value stuff over financial security, you'll pursue baubles over healthy finances and ultimately wind up with neither. The Millionaire Next Door spends an entire book making essentially the same point, though wth better research into the habits of high net worth individuals.

Ramsey's books aren't without fault. Some of the facts are unsourced and the vignettes a bit thin. His latest, The Total Money Makeover is a bit better in that regard. It intersperes its advice with accounts of readers, listeners, and clients who followed his advice and reformed their finances.

I've read a number of personal finance and investment books over the years. Even of the worst of them had a few bits of good advice, and some were strong in particular areas, but I always wanted a good general book that I could give to someone who needed financial help. Financial Peace, Revisited is that book. Andrew Tobias's The Only Investment Guide You'll Ever Need is perfect for someone who has money to invest, but for someone who needs a financial life preserver or a crash course in money Ramsey's book is the best I've seen. I read about half of it in the store, and bought it to read the other half and then pass it on to someone who needs it more than I do.