Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

You Can’t Play Dave Ramsey’s Game

14 Apr 2024 · 1 min

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In this monologue, Christian Osgood argues that Dave Ramsey’s personal‑finance advice—centered on avoiding debt and living debt‑free—is unrealistic for most people because Ramsey’s own wealth and income are far beyond the average earner’s reach. Osgood contends that instead of trying to emulate Ramsey’s debt‑free model, ordinary workers should deliberately take on long‑term, fixed‑rate debt to purchase assets that generate more cash each month than the debt service costs. By leveraging such cash‑flow‑positive assets—where monthly income exceeds the monthly payment—individuals can create a perpetual income stream that grows with the debt’s fixed cost, effectively turning a liability into a revenue‑generating asset.

Chapters

Dave Ramsey makes hundreds of millions of dollars. He has nearly a billion-dollar net worth if he hasn't already surpassed that. If you do not have an income like that, you cannot play that game. You cannot work a standard job and be average and make it. So what do we do? We take on debt to buy assets that are larger than the liability that we create. Liabilities lose money, assets gain money. I buy something that costs less monthly than it produces monthly, and we do it on long-term fixed-rate debt so that it continues to do so in perpetuity. I lever up, I buy things, it pays me.