Dave Ramsey tells people to eliminate all debt. Suze Orman believes the 4% retirement rule is “very dangerous.” Robert Kiyosaki promotes using debt to buy real estate and pay less taxes. These financial giants point to different paths toward wealth, making you question which method really works.
Their bestselling books tell different stories—Ramsey’s “The Total Money Makeover” ($26.99), Orman’s “The Nine Steps to Financial Freedom” ($16.99), and Kiyosaki’s “Rich Dad, Poor Dad” ($8.99). Ramsey pushes readers to “relentlessly eliminate every last shred of debt.” Kiyosaki takes the opposite stance, saying wealthy people have learned how to “have money work for them”. Orman takes a different approach and tells people to trust their gut.
Picking the right financial philosophy matters more than you might think. Ramsey believes retirees can get up to 12% annual returns from mutual funds. Yet economists typically back the 30-year-old 4% withdrawal rule – the same one Orman calls dangerous. Kiyosaki prefers different investments like gold, which jumped to over $2,600 per ounce in 2024 (a 28% increase), and Bitcoin – he owns 76 of them.
The big question remains – which money expert should you trust? A closer look at their views on debt, investing strategies, and financial tools might help you pick an approach that matches your financial goals.
Philosophy on Debt and Spending
“The enemy of ‘the best’ is not ‘the worst.’ The enemy of ‘the best’ is ‘just fine.'” — Dave Ramsey, Personal finance expert, radio host, and author of ‘The Total Money Makeover’
Financial experts have very different ideas about managing debt. Their methods of handling spending and saving show how they think about money management. Let’s get into these different points of view.
Dave Ramsey: Zero-debt lifestyle and emergency fund focus
Dave Ramsey supports a life completely free of debt as the key to financial freedom. He believes all debt hurts your finances and you should get rid of it quickly. The dave ramsey baby steps give you a clear path to financial independence that focuses on eliminating debt.
His plan starts with saving $1,000 for a starter emergency fund. This small original safety net protects you when life throws surprises your way—like a broken window or flat tire. It stops you from taking on more debt when small emergencies pop up.
After you build this fund, Ramsey tells you to tackle all non-mortgage debt with his “debt snowball” method. This approach is different from targeting high-interest debt first. The debt snowball method builds momentum through small wins:
- List all debts from smallest to largest balance
- Make minimum payments on everything except the smallest debt
- Attack the smallest debt with every extra dollar until it’s paid off
- Roll that payment into the next smallest debt, creating a “snowball” effect
This method creates quick wins that keep you motivated. As Ramsey puts it, “When the smallest debt is paid in full, you roll the minimum payment you were making on that debt into the payment for the next-smallest debt”. People who follow this plan with dedication usually clear all consumer debt in 18-24 months.
The next step is building a full emergency fund that covers 3-6 months of expenses. This bigger safety net helps you handle major money problems like losing your job or big medical bills without needing credit.
Ramsey’s method changes your entire relationship with money. His followers learn to “walk right past the shoe section (with the big sale) or the flat-screen TV aisle without making an impulse purchase”. This represents a fundamental change from buying on impulse to managing money with purpose.
The dave ramsey budget teaches you to live on less than you make to build wealth over time. This works especially well for people stuck in debt cycles or those who struggle with impulse buying.
Suze Orman: Strategic debt use and frugality
Suze Orman sees debt differently than Ramsey. She makes a difference between “good debt” and “bad debt” based on whether it helps build wealth or drains your resources.
Good debt might include mortgages or car loans—especially if you need the car to work. Bad debt usually means high-interest credit card balances used for things you don’t need. This lets you use certain types of debt wisely while getting rid of harmful debt.
Orman has a clear plan for eliminating credit card debt. Start by organizing cards by interest rate from highest to lowest. Pay the minimum on all cards, but add 20% to the total and put that extra money toward the highest-interest card first. Once that’s paid off, put the entire payment toward the next highest card until all debt is gone.
She advises keeping credit card accounts open after paying them off. Closing them can hurt your FICO score. This shows her practical approach that balances debt elimination with maintaining good credit.
Orman focuses heavily on managing cash flow. She suggests a simple way to check your finances: divide last year’s spending by 12 to find your monthly average, then compare it to what you make after taxes and retirement contributions. If expenses match or exceed income, Orman is direct: “You either have to earn more, or you have to spend less. Or you can do both”.
Despite her wealth, Orman lives quite frugally. She rarely eats out and says, “I really do not like to spend money to go out to eat. I don’t like it, I don’t like it. I don’t like it. It’s so much money”. She keeps her car for 12 years or more. Her accessories stay the same for decades—she’s worn the same necklace since 1994 and used the same purse since 1993.
She gives practical advice to people struggling with credit card debt. Call your credit card companies to ask for lower interest rates, since the average interest rate on credit cards is currently 22%. She also suggests looking into balance transfers that offer 12-18 months without interest to help pay down debt faster.
Orman connects money habits with self-worth. She believes that “your relationship with money isn’t just about reaching a specific dollar amount. It’s about how you value money—and by extension, yourself”.
Robert Kiyosaki: Utilize debt to build wealth
Robert Kiyosaki thinks about debt in a completely different way than Ramsey and Orman. He sees debt as a powerful tool to create wealth when used correctly.
Like Orman, Kiyosaki distinguishes between “good debt” and “bad debt,” but with a focus on business. Good debt helps you buy assets that make money, like real estate, profitable businesses, or other investments. Bad debt pays for things that don’t generate income.
Kiyosaki believes strategic borrowing amplifies your ability to build wealth. He uses real estate to show this: $100,000 cash buying one rental property might generate $800 monthly cash flow (about 9% yearly return). But using that same $100,000 as five separate $20,000 down payments on five properties, borrowing the rest from banks, could double the return to 18%.
He challenges common beliefs, saying that “the poor and middle class try to get out of debt. The rich try to create more debt in the form of leverage”. He practiced this himself by refinancing $300 million in loans from 5% down to 2.5% in 2015, which improved his cash flow while keeping valuable assets.
Kiyosaki sees debt as “financial rocket fuel” that gives you investing power. Using Other People’s Money (OPM) lets you control more valuable assets and earn more than you could with just your savings.
He knows there are risks involved. “Borrowing isn’t the secret, creating cash flow is”. Without proper knowledge, especially in real estate, borrowing can cause financial problems.
Kiyosaki tackles the common excuse, “I can’t invest because I don’t have any money.” He calls this a “poor and middle-class mindset,” noting that he doesn’t need his own money—banks will fund sound investments.
His approach changes how you see debt. Instead of rushing to pay off loans, Kiyosaki suggests wealthy people “want to pay back low interest loans as slowly as possible”. This lets them use that money to buy more income-producing assets.
The dave ramsey investment calculator and budget approach show the opposite of Kiyosaki’s borrowing-focused method, highlighting how different these financial philosophies are.
Investment Strategies and Risk Tolerance
Investment strategies look very different among financial experts. Dave Ramsey, Suze Orman, and Robert Kiyosaki each take their own path to building wealth. Their unique approaches show how they view risk, timing, and what creates real financial security.
Ramsey: Mutual funds and long-term growth
Dave Ramsey supports a simple investment approach that centers on mutual funds. You should pay off all debt first (except your house) and build a solid emergency fund. Then put 15% of your gross income into retirement accounts. Someone earning $65,000 a year should put away about $800 each month.
Mutual funds are Ramsey’s favorite choice because they spread risk instantly. A typical growth stock mutual fund owns pieces of dozens or even hundreds of companies at once. This helps protect your money better than investing in single stocks.
His strategy splits investments equally across four types of mutual funds:
- Growth and income (large-cap) funds: Provide stability through established American companies
- Growth (mid-cap) funds: Focus on growing U.S. companies with moderate risk
- Aggressive growth (small-cap) funds: Target smaller companies with high growth potential
- International funds: Include large non-U.S. companies for global diversification
This balanced approach gives you exposure to companies of different sizes, industries, and locations. Ramsey suggests picking funds that have beaten the S&P 500 for at least 10 years.
Ramsey’s investment strategy sticks to buying and holding. The stock market works like a roller coaster—it goes up and down, but only people who jump off mid-ride get hurt. The stock market’s average yearly return sits between 10–12% historically. Ramsey thinks mutual funds can earn up to 12% yearly, though many experts see this as too optimistic.
Orman: Conservative investing with CDs and bonds
Suze Orman takes a much safer route to investing. She likes certificates of deposit (CDs) and bonds because they’re stable and guarantee returns. This careful strategy shows her focus on protecting money, especially for people near or in retirement.
CDs work as savings accounts that lock in interest rates for specific periods. You lend money to a bank or credit union for a set time. The interest rate stays the same throughout, which many investors love. CDs usually pay more than regular savings accounts because you can’t touch your money right away.
Orman really likes U.S. Treasury bonds. She calls them “the safest of all bonds because they are backed by the full faith and credit of the United States government”. She put almost 80% of her own money in 3-to-6-month Treasury bills in early 2023. This shows how much she believes in playing it safe.
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Role of Advisors and Financial Tools
Image Source: American Century Investments
“Know what you own, and know why you own it.” — Peter Lynch, Legendary mutual fund manager, former manager of the Magellan Fund at Fidelity Investments
Financial success requires more than just knowledge—you need to put strategies into action. Top financial experts have different points of view about working with advisors versus going solo.
Kiyosaki: Build a team of experts (CPA, attorney, advisor)
Robert Kiyosaki strongly promotes building a financial team as the foundation of wealth creation. “If people want to become sophisticated investors and more, they must invest as a team,” his rich dad would say. His philosophy stands apart from both Ramsey and Orman’s approaches.
Kiyosaki’s team has:
- Accountants who optimize tax strategies
- Attorneys who provide legal protection
- Brokers who help identify investment opportunities
- Financial advisors who offer strategic guidance
- Insurance agents who manage risk
- Bankers who provide capital
Kiyosaki’s approach stands out because he insists on multiple advisors in each category. Wealthy investors never rely on just one advisor’s point of view. He explains, “When he made a decision, it was with his team’s input. Today, I do the same”.
The team-based approach gives Kiyosaki both advice and ongoing education. “Working with my team is the best education I could possibly have,” he notes, adding that he’s “learned more than I ever could have on my own”. This shows his belief that practical application through continuous learning leads to financial success.
A strong network takes time to build. Finance expert Garrett Gunderson shares, “It took me a little over a decade to assemble my team because I didn’t just want a financial planner. I wanted people who were wealthy and spent all their time around other wealthy people”.
Kiyosaki stresses picking team members who truly support your goals. He chooses to work with “people I truly enjoy being around, and who are truly for me”. This lines up values and objectives among team members naturally.
Ramsey: DIY approach with tools like the Dave Ramsey budget and retirement calculator
Dave Ramsey takes a different path from Kiyosaki’s team approach. He believes in self-directed financial management backed by straightforward tools. His philosophy centers on personal accountability and direct control of your money.
The dave ramsey budget and dave ramsey retirement calculator show this DIY approach in action. These free online tools help you create spending plans and see retirement savings projections without professional help. The retirement calculator shows how consistent investing grows over time, supporting Ramsey’s belief that investment success comes from consistency rather than expert timing or selection.
Clear visuals in Ramsey’s retirement calculator make financial planning available to beginners. It shows how regular contributions grow over decades, backing his message that “the top indicator of investment success is your savings rate”.
While Ramsey pushes for self-direction, he sees value in some professional guidance. His SmartVestor Pro program connects people with investment advisors who “will walk you through what you need to know to make the best choices for your investing goals”. Still, he wants these professionals to “guide you with the heart of a teacher”, showing his focus on financial education.
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The dave ramsey approach warns against relying too much on financial advisors. His tools make financial concepts simpler and enable direct action. “Investing and retirement terminology can be, well, confusing,” his website acknowledges. “And since we like to say, ‘Never invest in something you don’t understand,’ here are some common terms and what they mean”.
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Comparison Table
| Aspect | Dave Ramsey | Suze Orman | Robert Kiyosaki |
|---|---|---|---|
| Book Price | $26.99 | $16.99 | $8.99 |
| Debt Philosophy | Eliminate all debt completely | Distinguishes between “good” and “bad” debt; strategic debt use | Utilizes debt to build wealth |
| Investment Focus | Mutual funds (25% each in growth, growth & income, aggressive growth, international) | Conservative: CDs and Treasury bonds | Real estate, gold, cryptocurrency |
| Return Expectations | Claims up to 12% annual returns from mutual funds | Warns against 4% retirement rule as “dangerous” | Focuses on cash flow generation |
| Emergency Fund | $1,000 starter, then 3-6 months expenses | Not specifically mentioned | Not emphasized |
| Advisor Approach | DIY with simple tools and calculators; SmartVestor Pro program | Mix of professional advice and personal intuition | Build team of experts (CPA, attorney, advisors) |
| Risk Tolerance | Moderate – focuses on diversified mutual funds | Conservative – emphasizes capital preservation | Aggressive – utilizes alternative assets |
| Signature Strategy | Debt snowball method | High-interest debt first, maintain credit score | Utilize OPM (Other People’s Money) |
| Current Asset Focus | Traditional mutual funds | 80% in 3-6 month Treasury bills (as of 2023) | Gold ($2,600/oz) and Bitcoin (owns 76) |
Conclusion
Money management isn’t one-size-fits-all – that’s crystal clear after exploring these three financial philosophies. Your goals, risk tolerance, and personal values should determine the right approach.
Dave Ramsey’s straightforward path focuses on debt elimination and consistent investing. His methods are perfect if you’re struggling with debt or want simple, steady strategies. Many people find the debt snowball motivating because it creates psychological wins. His investment approach needs minimal expertise.
Suze Orman combines practical advice with emotional wisdom. She takes a nuanced view of debt and acknowledges that some loans can serve strategic purposes. Her conservative investment approach might suit you better if protecting your capital matters more than chasing maximum returns.
Robert Kiyosaki’s aggressive strategy sees debt as a tool rather than a burden. His philosophy resonates with people who want to create wealth through alternative assets and can handle higher risk. He knows financial success needs specialized expertise, which is why he advocates a team-based approach.
The most successful people pick and choose elements from different philosophies. You could follow Ramsey’s debt elimination strategy while adopting Kiyosaki’s focus on cash-flowing assets. Or maybe combine Orman’s emergency fund guidance with more growth-oriented investments.
The best financial philosophy matches your personality and circumstances. Think about what helps you sleep at night. Would you rather be debt-free or use investments? Do you prefer managing everything yourself or building a team? Are you comfortable with steady, predictable growth or chasing higher returns with more volatility?
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Key Takeaways
These three financial philosophies offer dramatically different paths to wealth, each with distinct advantages depending on your personal situation and risk tolerance.
• Debt strategies vary dramatically: Ramsey eliminates all debt, Orman uses strategic debt, while Kiyosaki leverages debt to buy income-producing assets.
• Investment approaches reflect risk tolerance: Ramsey favors mutual funds for 10-12% returns, Orman prefers conservative CDs/bonds, Kiyosaki focuses on real estate and alternative assets.
• Advisory philosophies differ significantly: Kiyosaki builds expert teams, Ramsey promotes DIY tools, while Orman balances professional advice with personal intuition.
• Success comes from matching philosophy to personality: Choose debt-free security (Ramsey), balanced caution (Orman), or aggressive wealth-building (Kiyosaki) based on your comfort level.
• Cherry-picking strategies often works best: Most successful people combine elements from different approaches rather than following one guru’s complete system.
The most effective financial strategy isn’t about finding the “right” guru—it’s about understanding your personal relationship with money and selecting approaches that align with your goals, risk tolerance, and sleep-at-night factor.
FAQs
Q1. What are the key differences between Dave Ramsey’s and Robert Kiyosaki’s financial philosophies?
Dave Ramsey advocates for a debt-free lifestyle and conservative investing, while Robert Kiyosaki promotes using strategic debt to acquire income-generating assets. Ramsey focuses on budgeting and mutual funds, whereas Kiyosaki emphasizes real estate and entrepreneurship.
Q2. How does Suze Orman’s approach differ from Ramsey and Kiyosaki?
Suze Orman takes a middle ground approach. She distinguishes between “good” and “bad” debt, recommends a mix of conservative investments like CDs and bonds, and emphasizes the importance of emotional intelligence in financial decision-making.
Q3. Which financial philosophy is best for beginners?
The best approach depends on your personal financial situation and goals. Ramsey’s method is often recommended for those struggling with debt, while Kiyosaki’s strategies may appeal to aspiring entrepreneurs. It’s beneficial to understand various perspectives and adapt principles that align with your circumstances.
Q4. How do these experts view the role of financial advisors?
Kiyosaki advocates building a team of financial experts, Ramsey promotes a more DIY approach with basic tools and calculators, and Orman suggests a balance between professional advice and personal intuition.
Q5. What investment strategies do these financial gurus recommend?
Dave Ramsey recommends a mix of growth-oriented mutual funds. Suze Orman favors more conservative investments like CDs and bonds. Robert Kiyosaki focuses on cash-flowing assets such as real estate, as well as alternative investments like gold and cryptocurrency.
