DAVE RAMSEY vs ROBERT KIYOSAKI on Debt & Your Investments [EPISODE #78]
The Big Idea
Dave Ramsey says that "Debt is Dumb and Cash is King". Robert Kiyosaki says there's "good debt" and there's "bad debt". Who's right? And is the "right" answer the same for everybody?
Points To Ponder
- Dave Ramsey advocates for no debt at all in his book The Total Money Makeover. Love him or hate him, one thing is sure: Nobody gets in trouble by following his "no debt" philosophy.
- Robert Kiyosaki rose to fame from his book Rich Dad, Poor Dad which advocates investing in cash-flowing investments, even if debt is involved in purchasing those investments.
- It's instructive to look at the men and their businesses: Ramsey's business is very profitable and has no debt. Kiyosaki's business has fallen to bankruptcy.
- However, it's impossible to argue that some people who are very responsible have used debt constructively
- Whatever you do, do it with caution and an eye towards your future
Bryan Ellis is host of Self Directed Investor Talk, America's #1 radio show and podcast for affluent self-directed investors. He's also an expert in self-directed IRA's, solo 401k's and turnkey rental property investing... at least, that's what his wife tells him 🙂 He's a contributor to well-respected publications like TheStreet.com, Entrepreneur and ThinkRealty. Bryan lives in metro Atlanta, Georgia with Carole Ellis - his wife, business partner and best friend - and his 4 children ranging in age from 2 to 19.