There is a lot of discussion in the real estate investing world about the teachings of Dave Ramsey and Robert Kiyosaki– and who is correct in achieving financial freedom.
Research is one of the first things you do when you start your journey to financial freedom. Google, youtube, pick up some books and start reading, podcasts, etc. There is a wide variety of education; there is no limit to what you can learn and how you learn it. Another way is finding gurus/mentors, such as Dave Ramsey, who know everything about what you’re trying to do. Dave Ramsey is considered a financial guru. According to Ramsey Solutions, he is a financial expert, best-selling author, and host of the Dave Ramsey show. He specializes in helping people take control of their finances and, by doing that, getting rid of all debt.
Dave Ramsey or Robert Kiyosaki?
Now I was like most people who came across Dave Ramsey, and I was also looking to get better with my finances and get rid of debt. My wife and I were listening to his podcast and found what he was saying enlightening about getting rid of our debt. My wife and I would listen to Dave Ramsey and people that would call him for advice and listen to the advice he would give them. There would always be questions such as “I want to buy a house; how do I save for the down payment,” “I am in thousands of dollars in debt; how can I get out of it,” etc. I thought to myself, this is what the average Joe and Jane think about every day: getting a house or becoming debt-free. This was around the time I first started educating myself about real estate. I thought getting rid of my debt was the way to go, and in some cases, I still do–but that was before I continued to educate myself even more. In my journey to educate myself, I found a book called Rich Dad, Poor Dad by Robert Kiyosaki. Rich Dad, Poor Dad has been considered the number one finance book for over 20 years. This book alone began many people’s journey to financial freedom–especially those who sought to become real estate investors like myself. I read Rich Dad, Poor Dad, and it was enlightening. This book taught me about assets, liabilities, and the difference between good and bad debt. I had no idea what was considered an asset or a liability, and I realized I had a lot of liabilities, and I didn’t even know it. Unlike Dave Ramsey, Robert Kiyosaki is all about debt, going into debt, and using other people’s money to make money which is considered good debt.
Good debt is using a credit card that rewards you, forming an LLC, getting a business loan for a down payment on investment property, etc. Bad debt does the complete opposite, but it depends on how you are using it. Since discovering Dave and Robert, I have found myself comparing the two to everyone else in the investing world. I hear a lot about how wrong Dave is and how right Robert is, but I noticed a lot of investors were originally on Team Dave.
Who is better: Dave Ramsey or Robert Kiyosaki? It Depends!
So why the switch from Dave to Robert? It’s the situation– most real estate investors will be team Robert because you need debt to find that wealth, in most cases, genuine estate. That being said, you also have some cases where you need to be debt free or get rid of some debt. So it depends on what you are trying to accomplish. It’ll depend on the situation, but I believe both Dave and Robert are right regarding financial readiness and freedom.
