Dave Ramsey Dismantles 'Lies And Bad Advice' About Mortgage Rates, Inflation, Car Loans And More. 'That's Straight-Up Illegal'

Dave Ramsey is tired of the financial fearmongering. In a fiery speech, the personal finance personality went after what he calls the nonstop “lies and bad advice” making people feel helpless and broke in today's economy. And he’s not pulling any punches. “The lies and the bad advice are everywhere out there,” Ramsey said. “You’re death scrolling into oblivion and it’s just not true.” Ramsey Says The Numbers Tell A Different Story He addressed claims that inflation and mortgage rates are historically bad, calling it misinformation. “Inflation in 2024 was 3.4%. Inflation in 22 was 6.2%,” he said. “In 1982, it was 7.4%. In 1980, it was 12.4% and had been double digits for almost the previous 10 consecutive years.” On mortgage rates, he added, “Interest rates in 1982 were 17.66% for a house. Today, we're bouncing down there next to the bottom of five. Not hardly 17.” Don't Miss: Fast Company Calls It a ‘Groundbreaking Step for the Creator Economy' — Investors Can Still Get In at $0.85/Share Sam Altman Says AI Will Transform the Economy — This Platform Lets Investors Back Private Tech Early As for the idea that the average American can’t make ends meet anymore? Ramsey wasn't buying it. “Median household income is now $83,000. And the average household expenses are 78,” he said. “The math says otherwise.” He also pushed back on the claim that buying a car without a loan is impossible. Ramsey cited new data showing the average new car costs $42,000, with average monthly payments at $748. “We have an affordability crisis on our housing because we have a car payment in the driveway. And you got screwed by Citibank and Ford Motor Company.” Budgeting Isn’t Just For Broke People “Only poor people do a budget? That’s a lie,” he said. Ramsey Solutions surveyed over 10,000 millionaires and found 93% of them did a monthly budget, according to Ramsey. “So there’s your little statistical analysis. Cause and effect. Correlation. Causation,” he said. Trending: Americans With a Financial Plan Can 4X Their Wealth — Get Your Personalized Plan from a CFP Pro Ramsey also ripped into trendy tax hacks. “Bad advice: set up an LLC and run all of your personal expenses through it. You can write them off,” he said. “No, you can’t. That’s straight-up illegal. Your house electricity is not a business expense. Ever heard of an audit? They’ll come take your stuff from you.” On Credit Cards, Retirement And The Myth Of ‘Passive’ Income He called out the logic of fearing a 5% mortgage while carrying a credit card with a 22.8% interest rate. “It’s a bit illogical, people.” And to those saying retirement is out of reach, Ramsey broke it down. “If you invest from age 22 to age 67, just $70 a month, you’d have a million dollars at prevailing market rates,” he said. He also mocked the idea that starting a business is a quick path to easy money. “Easy and passive? Bull crap,” he said. “Only on TikTok.” See Also: An EA Co-Founder Shapes This VC Backed Marketplace—Now You Can Invest in Gaming's Next Big Platform Before the Raise Ends 1/19 From Losing Millions To Preaching Common Sense Ramsey shared how he once lost everything after building a $4 million portfolio with too much debt. He called his collapse a wake-up call. “I had built a house of cards and I shouldn’t be shocked that it fell,” he said. “I gave them access to my life and let them screw me.” His turnaround came from applying biblical money principles and sticking to simple habits. “Live on less than you make. Get out of debt. Have a plan. Be generous,” he said. “Grandma’s common sense.” Take Control And Block Out The Noise Ramsey closed by telling the audience they have more opportunity today than ever before. “You have so stinking much freedom if you’ll turn off the stupid talking heads and the white noise and go be somebody,” he said. “It’s unbelievable what you can do.” For those looking to stop guessing and start planning, services like Domain Money offer professional guidance from certified financial planners. That extra layer of support could be the difference between staying stuck and finally taking control. “Stop listening to the Hope Steelers,” Ramsey said. “They’re wrong. The data says they’re wrong.” Read Next: Private-Market Real Estate Without the Crowdfunding Risk—Direct Access to Institutional-Grade Deals Managed by a $12B+ Real Estate Firm Image: Shutterstock