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Rachel Richards | Retire Early
@moneyhoneyrachel

109,673 followers

1️⃣ First up, I want to be clear: I’m not here to bash anyone. I think Dave Ramsey’s consumer debt payoff methods are fantastic! I’ve personally helped many clients and people in my life pay off thousands of dollars of credit card debt using his envelope method. He has helped millions of people work their way out of the paycheck-to-paycheck lifestyle. So kudos to him. 👏⁠ ⁠ 2️⃣ Secondly, it’s okay for us finance gurus to disagree on things ❤️. I respect his anti-debt views totally!⁠ ⁠ AND I also respectfully disagree with him. Here’s why.⁠ ⁠ I don’t think debt is dumb. I think consumer debt is an obstacle to becoming wealthy.⁠ ⁠ That I can get on board with. High-interest credit card debt 💳 is the biggest pain. And even though all the other stuff I talk about is sexy and glamorous (passive income, real estate investing), the truth is you gotta get out of credit card debt before you do anything else. The best use of your money is almost always towards the highest interest rate – whether that’s a debt interest rate you’re paying or an investing interest rate you’re earning.⁠ ⁠ 👉Look at it this way: if you’re deciding between paying off a 25% APR credit card or putting your money in the stock market to earn 10%, it mathematically makes more sense to pay down that CC.⁠ ⁠ Or, if you’re deciding between paying down your 5% student loan, or investing in real estate to earn 12%, if mathematically makes more sense to invest in real estate.⁠ ⁠ Of course, that’s a generalization. There’s a whole lot more that goes into debt pay-down strategy.⁠ ⁠ I think most of us can agree that high-interest consumer debt is a problem!⁠ ⁠ To sum it up, here’s how I would correct Dave’s statement:⁠ ⁠ ✨“CONSUMER debt is bad. Cash FLOW is QUEEN.”✨ -Rachel Richards⁠ ⁠ #MicDrop 🎤⁠ ⁠ Thoughts?⁠ ⁠ 🌸If you want a permanent relationship with me, sign up for my newsletter by downloading my FREE passive income starter kit through the link in my bio!🌸⁠ ⁠ #moneyhoneyrachel #daveramsey #totalmoneymakeover #consumerdebt #debtpayoff #debtfree #creditcarddebt #debtfreejourney #snowballmethod #envelopemethod #avalanchemethod #debtstrategy #rachelrichards #financialliteracy #financialfreedom