‘I’d Rather Drink Caffeine Than Get Depressed on $6’: Young Americans Reject Dave Ramsey’s Financial Advice – Here’s Why They Say They’re ‘Not Willing to Do Anything to Get Out of Debt’

Dave Ramsey has fervently preached financial advice to Americans for decades, but younger generations are now criticizing the white-bearded radio host for offering advice that doesn’t take into account the current cost of living crisis.

A sparkling example is Ramsey’s loud renunciation of the daily cup of coffee. In a 2021 blog post, he claims his coffee habit could cost him $766 a year and suggests people should put those funds toward paying off their student debt, investments, or even a plane ticket.

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But young Americans argue that they would rather maintain their mental well-being and hold on to the small luxuries that bring them joy rather than save a little extra money.

“Self-care is extremely important and if that means buying a $6 coffee every day, do it,” Jarrod Benson, a 32-year-old comedian from Orlando, Florida, told Business Insider.

“I’d rather drink caffeine than get depressed over $6.”

Social Media Users Disdain Ramsey’s Advice

The hashtag #daveramseywouldntapprove has around 67 million views on TikTok, and dozens of users are posting videos criticizing the financial personality for being out of touch with reality and shaming her financial habits.

Benson, for example, didn’t hesitate to jump on the bandwagon with his own content, showing himself drinking a cold beer with pumpkin cream or receiving a $4 Crumbl cookie before cutting to his Ramsey impersonation staring menacingly from a distance.

It’s clear that Ramsey’s advice, which often includes living frugally or working more to increase your income, doesn’t entirely resonate with younger listeners.

In a recent TikTok, Kate Hindman, a 31-year-old administrative assistant from Pasadena, California, emphasizes that her mental health and quality of life are much more important to her.

“I am not willing to do anything to get out of debt,” he says. “I’m not willing to eat rice and beans every day, I’m not willing to work three jobs and not spend time with my children. “I’m not willing to give up my favorite salad on a Friday.”

Hindman explains that his bills are so large that a little extra money saved here and there doesn’t make a major dent in his debt.

“The cost of living and low wages are to blame for most Americans’ financial problems,” he says. “To be told that we can make these big differences gradually by simply giving up our quality of life for five or 10 years is absurd.”

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Ramsey’s financial advice is not always correct

Hindman decided to convert $30,000 in credit card debt into a debt consolidation loan with an 8% interest rate, a tactic that Ramsey despises and claims doesn’t really work.

Of course, like any debt resolution trick, it depends. It can be more difficult to keep track of multiple credit cards at once than it is to pay one bill each month. Plus, if you get a lower interest rate on your loan than you were facing on your credit cards, this can be a great opportunity to save hundreds or thousands of dollars on your debt load in the long run.

On the other hand, your new loan could involve additional costs, such as prepayment penalties or late payment fees.

But Ramsey’s own recommendation, the snowball method, in which people pay off their smallest debt (or the account with the lowest balance) first and make only minimum payments on all other outstanding debts, might not work either. be the right solution.

While this method might offer some behavioral incentives to continue, it may also end up costing you more interest and taking longer to pay off your debt, compared to cracking down on higher-interest debts first.

“What Dave Ramsey would say is, ‘I don’t care if paying off the highest-interest debt first is cheaper, because if you give up halfway, it’s more expensive,'” said James Choi, a finance professor at the Yale School. of Management, he told The Wall Street Journal. “I think the jury is out on that.”

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

By Sam