A fair number of financial related posts on this site will come from the advice given by these two financial giants. Both of them have nationally syndicated radio programs. Both of them have downloadable podcasts. And, both of them have a metric f-ton of listeners tuning in every day to hear their advice. Unfortunately, both of them have quite different philosophies and advice. So which of them is better or worse, and why? I will review the pros and cons of both in this breakdown.
PHILOSOPHICAL DIFFERENCES
Dave Ramsey touts his financial system as a “Bible-based” system and as such he believes the Biblical model is to owe no man anything (despite the fact that the Bible has lots of rules on lending and borrowing). In other words, Dave Ramsey preaches that you should ALWAYS pay for things in cash and if you don’t have the cash, you can’t afford it, PERIOD! In general I find this a very sound principal and for that I still like listening to Dave’s show.
Because Dave does not believe in debt, you would never ask Dave for advice on how to raise your credit score (because a credit score is only good for borrowing money) or how to consolodate debt into a lower interest rate loan or get a lower interest rate on your car or home loan. Dave is 100% about becoming debt free and I will admit, that would be an amazing feeling, so again, Dave’s show appeals to me.
Unfortunately, Dave’s advice for almost all difficult financial situations is “get a second job.” If you already have two jobs his advice is similar, “get a third job.” Oh, and also you should eat only two things until you are out of debt, “Rice and beans and beans and rice.”.
Another annoying trait is that Dave views most Americans as lazy and a bunch of whiners (he says it all the time). Dave’s advice is tough love advice, “Get another job, eat beans and rice, and quit you whining until you get out of debt and can afford fun things again.”
On the opposite side of the coin, Clark Howard believes in the credit score and tells you how to improve it so you qualify for better rates and better deals. In some cases Clark even ENCOURAGES the use of credit cards (but in a fiscally responsible manner). Clark has a serious problem with debit cards however, which he calls “piece of trash, fake Visa and fake Mastercards” which he says does not offer the same protection and benefits of real credit cards.
Dave Ramsey’s focus is on getting you OUT of debt and his mantra is that “the paid-off home mortgage has replaced the BMW as the status symbol of choice.” Clark Howard’s focus is on using credit wisely and helping you “save more, spend less, and avoid getting ripped off.” While Dave would ask that you have ZERO debt (with the possible exception of your mortgage), Clark would recommend that you have no more than 25% of your credit limit used at all times to maximize your credit score.
On a typical Dave show you will hear how to make and stick to a budget and what to do with large windfalls (i.e. Do you pay off your house or invest in your kids college fund?). Callers mostly call in to brag about becoming debt free using Dave’s techniques or to ask why his system isnt working for them (which the answer usually is that they haven’t gotten a second or third job yet or started eating rice and beans). On a typical Clark show you will hear how big banks and cell phone companies are ripping off Americans for billions of their hard earned cash and what you can do to avoid playing into their traps. You will also hear safe ways to invest your money and pay for our children’s education.
DEMEANOR AND DELIVERY
As different as their philosophies are, so are their demeanors.
Dave is a southern gentleman with a deep southern drawl and a steady, deliberate cadence. Every woman he adresses as “darlin’ ” and with men he just gets down to “brass tacks.” Dave sounds gentle (when he’s not telling you to stop you whining) and when he insults you he does it with a chuckle so you feel like he is just giving you friendly advice (being tough, but not too tough). Personally, I find his tone extremely condescending and he comes off entirely arrogant. If you dont get that impression from him then you will get a lot more out of his program.
Dave’s target audience is church folk and you can tell he makes big money selling his program (which he calls Financial Peace University) to local churches that either buy his video series or hire him for live events. You can tell Dave is a salesman and he uses his radio show to sell you more of his products and enroll you in his many courses to teach you how to handle your money. When he gives away one of his books, it’s because the book is a vehicle for promoting how you really should sign up for his classes. Even his marital advice for new couples is to sign up together for his financial courses. Everything with Dave is about buying his programs, books, seminars, courses, etc.
Perhaps the most annoying thing about Dave is his consistantly unchanging (and phoney sounding) response to “how are you doing?” Dave ALWAYS responds with, “Man, I’m better than I deserve.” After hearing that a few hundred times it loses some of the cuteness – trust me! What’s worse is his callers who feel compelled to respond with the same exact phrase when he asks them. I almost can’t listen any more due to this one issue alone.
Clark on the other hand sounds a little like he’s been sucking helium for a while. He is almost “cute and cuddly” in his demeanor and sounds like he wants to be everyone’s best friend. While Clark does have books and gives speeches for money, Clark rarely “advertises” himself and when he does, you can feel that he is genuinely uncomfortable doing it. Clark’s annoying tag line to callers is “how can I be of service to you today?” and while it is said far too often, it still doesn’t grate on my nerves yet like “Man, I’m better than I deserve.” Clark seems to genuinely view his show as a service (not as a promotional vehicle) and for that it makes listening to his show more enjoyable.
THE BEST CHOICE
The best choice for you might depend on your financial situation and focus.
If you are deep in debt and stressed out about all the bill collectors calling you, Dave’s show is probably right for you. Dave reminds you daily of how good it will feel to finally be debt free and never have those annoying calls ever again. It can be truly inspiring. Listening to testimonials of others who have climbed out of debt and experienced the joy of being debt free can also be very inspiring.
If you are doing “ok” financially but would like to save more and find ways to make your dollar go even further, than Clark is probably right for you. He is more entertaining to listen to and has way less of an ego.
Personally, I listen to both of them. I download Clark Howard’s radio show and listen to it on the way to work and sometimes at work on my iphone. Dave I listen to on the way home because he is on live during my evening commute. I have learned things from BOTH of them and while I prefer Clark, they both have things to offer. This blog will feature some of my favorite tips I pick up from listening to both of their shows.
Household Manager 
July 10, 2015 at 5:32 pm |
Nice summary from some years ago; this post is just as relevant now as when you wrote it. Totally agree with you about the focus of each, and it’s an interesting comparison.
It was actually humorous to find your mention of certain grating aspects about each show. Thought I was the only one! Why can’t Dave sometimes say, “I’m doing well, thank you,” ON OCCASION at least. Or why doesn’t Clark say, “How may I help you?” SOMETIMES, right?
FWIW, on balance, personally I like them equally well.
July 11, 2015 at 2:36 pm |
Jamal, thanks for taking the time to leave a comment! I used to enjoy listening to those shows a lot but after you listen to it enough the repetitive stuff gets you. Again, thanks for commenting!