I have an MBA in Finance as well. And you, as I do, should realize Ramsey is not selling a “financial” solution to people’s personal financial problems.
It’s all behavior based. And yea, he IS a great example. He went bust selling real estate, changed his ways and got out of debt, and never went back again. He did that. Exactly that.
That’s what he’s selling, a way out of debt. It’s not a get rich scheme. At least not at its core.
And it’s nothing new, nothing revolutionary. It’s basic common sense for the most part.
I cringe when I hear him talk about expected rates of return and asset diversification. But he’s not selling securities, and doesn’t pretend to be.
So yes, mathematically his order of operations is not optimized. It’s not supposed to be.
His system is about people getting control of their paychecks, generating momentum, and changing behaviors.
And it works. It’s worked for millions.