“Your father is a moron” – Dave Ramsey is disgusted by this father’s “slimy” car buying strategy for his teenage daughter
In a video on YouTube titled “Dave Ramsey is losing his mind over this tip on Instagram.” As of September 2022, Dave Ramsey reacts to a clip posted on Instagram featuring a father proudly offering advice.
Rachel Cruz, financial coach and daughter of Dave Ramsey, offers a clip from an Instagram video she’s been sent repeatedly. The video shows a father-daughter duo at a car dealership, where daughter Maddie explains her financial strategy for purchasing her first car.
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In the now-deleted Instagram clip, which played on the Ramsey Show, Maddie says she took out a $15,000 car loan at 3% interest and plans to invest the $7,000 cash she saved in an Airbnb property, expecting a 14% return. Her father asks her to explain the matter to everyone, so she breaks it down, saying, “It cost me three cents to borrow a dollar from the bank and then I go and take that dollar and give it to someone for 14 cents and then 14 cents.” Negative three equals eleven, so keep the difference in the middle.” Her father adds, “Boo! You buy assets that then flow in cash and pay for your stuff…this is called arbitrage.
Dave Ramsey had a strong reaction to the reel, saying: “I mean he’s so sticky. You should take a shower after watching that guy. He’s just dripping in arrogance.” He expressed doubts about the feasibility of Madi’s plan, stressing the impracticality and risks involved. Ramsey points out that Maddie, then 15, was unable to legally qualify for a bank loan, suggesting her father likely co-signed, which may have helped secure a lower interest rate.
Ramsay also wonders about Investing in an Airbnb property, “You can’t buy an Airbnb property for eleven thousand dollars either… and that’s assuming the Airbnb property stays rented and the local city council doesn’t pass an ordinance against Airbnbs. In that case, your little ass will be busted at 15 because your dad idiot.” He mocks his father’s use of the term arbitrage, saying, “It’s called arbitrage, well it’s Greek because I’m stupid.”
Ramsey also criticizes the plan by highlighting that none of the millionaires he studied got rich through these methods: “First, you’ve never met a millionaire and we studied 10,167 of them, and none of them, precisely zero, said ‘I borrowed money. On my car and turned it into a millionaire. There aren’t any real millionaires who do that. zero!”
symbolic He dismisses this strategy as impractical and potentially harmful, especially for a young person like Maddie, who he implies lacks a full understanding of the financial decisions being made. He insisted the 15-year-old had no idea what she was doing and didn’t even know the interest rate. He called her “Parrot”.
Cruise then discusses with Ramsay the appeal of complex financial strategies that promise quick wealth. And remember the perception that to get rich, people think you need to engage in sophisticated methods like arbitrage, which can seem far-fetched and exclusive. Ramsey responds by debunking this idea, stressing that there are no magic secrets or formulas to become rich. It highlights the importance of living within your means, investing consistently and understanding compound interest.
In this father-daughter Instagram clip, the concept of arbitrage is presented in a way that oversimplifies its complexities and risks. Arbitrage generally involves exploiting market inefficiencies to make a profit, but it is not risk-free and does not guarantee profits. Market conditions can vary, and successful arbitrage opportunities may not always exist. This strategy requires a deep understanding of the financial markets and the risks associated with them.
Although the Internet has democratized access to financial information, it is important to be careful about financial advice found online. Consult a professional financial advisor Recommended for anyone looking to leverage their money and generate passive income in a more informed and safe way.
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*This information is not financial advice, and personal guidance from a financial advisor is recommended to make informed decisions.
Jeanine has written about personal finance and investing for the past thirteen years in a variety of publications including Zacks, The Nest, and eHow. It is not a licensed financial advisor and the content contained herein is for information purposes only and does not constitute or intend to constitute investment advice or any investment service. While Janine believes the information contained herein is reliable and derived from reliable sources, no representation, warranty or guarantee, express or implied, is made as to the accuracy or completeness of the information.
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This article “Your dad’s a moron” – Dave Ramsey is disgusted by this dad’s “slimy” car buying strategy for his teenage daughter Originally appeared on Benzinga.com
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