Don’t take financial advice from broke people

One of my favorite Dave Ramsey sayings is “Don’t take financial advice from broke people.” I think this is great, because if your goal is to not be broke, why would you do anything that a broke person tells you to do? Unless they are warning you not to do what they did to become broke, be wary of where you get financial advice, and always do your own research.

Look, there are a lot of financial blogs these days. And pretty much anyone can write a book and publish it, purporting to be an expert on just about any topic they choose. Dave Ramsey used to be broke, but managed to do what he does best–give folksy, easy-to-understand financial advice to the average person–and amass a fortune doing it. He’s great at telling people that bankruptcy is worth avoiding–because he and his wife Sharon lived through it.

I am pretty wary of most articles, blogs, and books on personal finance, because the type of advice they typically offer doesn’t fit with what I already know about money and investing or simply doesn’t go far enough for my taste. My latest favorite is Mr. Money Mustache, because I have no quibble with how he managed to save over 50% of his income for 7 years and retire at age 30. Also, he has laid out all of the numbers for anyone to see how they did it. He’s also shared their annual spending, which is actually pretty boring, and I hope to do similar posts in the coming months. We don’t have a huge stash at this point, but we’re definitely at a point where we easily save more per month than we spend. I hope to do a post on how we do that sometime soon. Stay tuned!