Dave Ramsey Slams Young Adults: 'You're Broke Because You're Stupid!'

Dave Ramsey has fielded many calls on his show. Some of the callers share how they applied Ramsey's strategies to reach their financial goals, while others comment on their financial shortcomings.

However, Ramsey recently had a heartbreaking call and shared what young people can learn from it. He talked about it in a recent episode. Ramsey brings up a 73-year-old guy who is working but doesn't have a dime in his name. He is tired but doesn't have a single dollar outside of the $3,700 he and his wife get monthly from Social Security.

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Ramsey said these types of calls are sad, and this 73-year-old isn't the only one who has called into the show with a situation like this. The financial guru then proceeded to explain that young people should take this as a wake-up call and didn't mince words when explaining why young, broke adults are broke.

Say No Now So You Can Say Yes Later

Ramsey encourages young adults to avoid consuming things that they do not need. He then explains that you have to say no to certain things now so you can say yes to other things later.

For instance, Ramsey is critical of people who put themselves into a situation where they have high monthly car payments. You don't need the newest or the most luxurious model. Ramsey is a fan of buying an old, durable, and effective vehicle. 

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It's easier to find those types of vehicles in the used car market. Almost 70% of all vehicles on the road today are six years or older. Furthermore, the average age of a U.S. vehicle is 12.6 years. Saying no to new cars and luxury vehicles makes it easier to say yes to an early retirement if necessary.

A Foolish Man Devours All That He Has

Ramsey says that there are many young adults who make a lot of money and are smart in that area. However, he also mentions that some of these same people are dumb because they spend everything. He also said that a foolish man devours all that he has.

"You're broke because you're stupid," Ramsey said when referencing people who are in their 20s and 30s. However, there are ways to get back on track.

Setting aside a portion of every paycheck toward investments and an emergency fund will put you in a better position by the time you retire. This type of financial discipline can also minimize your discretionary spending and keep you out of debt.

Ramsey encourages listeners to learn from the show instead of only being entertained by it. He doesn't want to hear a caller say that they have enjoyed the show for 20 years but did nothing to improve their finances. Instead, Ramsey enjoys hearing stories about how people implemented what they learned from the show and the books to get out of debt and achieve financial independence.

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• Don't Rely on the Government

Some people think that Social Security will provide them with enough money to cover their living expenses. However, Ramsey believes that people should not rely on the government to save them. 

He believes that young adults should build up their finances now so they aren't in the same situation as the 73-year-old caller. Although the caller is receiving Social Security, it's not enough to cover living expenses.

You have to get in the driver's seat of your finances. Some people embrace this role early in their lives, while others may need a wake-up call that Ramsey's show can provide.

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