My parents brought me up on Dave Ramsey's stuff. I think for the average person working a steady job for someone else his strategy is a good plan that offers a more stress free and wise path in life.

For a business owner or someone who wants to build more wealth I think Dave's strategy has its limits.

I personally do not follow Dave's methods. I've borrowed heavily to get my education and start my business. If I worked a $50k a year job, lived lean, and then saved to pay cash for my education and business, it would take me 50 years just to be able to get the doors of my business open. By borrowing money for capital and goods I am able to produce more services (and make more money) now and reap the rewards over my lifetime.

In all investment there is risk. You have to have a solid business plan and know your market whatever your business is.

There's a big difference between consumer debt and business debt. When you are taking on debt to invest in appreciating, cash flowing assets, that's when wealth can really start to grow. Debt can allow you to leverage your existing wealth in order to grow it. You should be looking at fixed loans over a set amount of time. Like a 10 year business loan with a fixed interest rate. Similar to a 30 year fixed home loan. You can get paid several different ways through business loans: 1) cash flow brought in by the business, 2) tax benefits, depending on circumstances you can often write off business expenses and even interest from the loan, 3) inflation hedging - by borrowing a fixed amount you allow inflation to erode that debt. Say you borrowed $10k for a welding set up. In 10 years $10k won't buy the same amount of equipment because of inflation. However, you have locked in your price with a fixed interest rate.

Borrowing money does require a firm plan and introduces risks. My life isn't as simple or stress free as it used to be. I am making a play to introduce wealth into my family though and live with a greater degree of abundance rather than scarcity. Time will tell if that was wise or not but like you, most of the well to do people I know have taken on some debt to achieve greater things.

None of the wealthiest people I know have ever had a car payment. And none of these people started out wealthy.
One of the worst things you can do financially is to borrow money to buy something that starts to lose value the second after you buy it.

If you're an entrepreneur, why did you need to spend lots of money on education? Honest question. I know people that just jumped into their business with no expensive college and did great.

Not what I'm talking about though.

.....I'm coming the the conclusion though.....is that really the best thing though ? Again the more I look at wealthly people like legit wealthy people debt is a tool for them

.....I'm coming the the conclusion though.....is that really the best thing though ? Again the more I look at wealthly people like legit wealthy people debt is a tool for them

Look up some of Robert Kiyosaki's videos and it will give you another perspective to debt.

Wolfdog- you really should take some time and read what people have posted for you. Read the posts 3 or 4 times and then get back with us what you think about what was posted. Several people here have invested time and effort to help you with good advice. My post may have been a little harder to understand but it said the same as some others but in a different way.

WannaBe.....I wonder what your definition of 'rich and successful' people is?