When it comes to money advice, Dave Ramsey is practically a household name.<\/p>\n
His tips are everywhere \u2014 on the radio, in bestselling books, and all over social media. But while his guidance has helped millions get out of debt<\/a>, not everything he says gets a thumbs-up from financial advisors.<\/a><\/p>\n In fact, some of his most popular money<\/a> rules spark a lot of professional side-eye.<\/p>\n GOBankingRates spoke with Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at GrowthLimit<\/a>, about why he doesn\u2019t always vibe with Ramsey\u2019s approach.<\/p>\n \u201cWhile I respect Dave Ramsey\u2019s contribution to improving financial literacy, some of his more rigid rules don\u2019t always hold up in today\u2019s complex economic environment,\u201d he said.<\/p>\n \u201cOne of Dave Ramsey\u2019s most well-known pieces of advice is to always avoid debt, which I don\u2019t entirely endorse,\u201d said Shirshikov.<\/p>\n He explained that Ramsey\u2019s perspective made sense in a time when risk management resources were scarce and credit was less transparent, but in the current financial system, strategic debt is frequently essential to accumulating long-term wealth<\/a>.<\/p>\n When handled properly, Shirshikov noted that taking out a mortgage<\/a> to purchase real estate or other assets that appreciate in value or using low-interest loans to finance a business venture or high-yield education can both be wise financial moves.<\/p>\n \u201cDebt without direction or discipline is the problem, not debt per se. Blanket avoidance frequently keeps people from taking advantage of leverage to generate opportunities that could hasten their financial development,\u201d he said.<\/p>\n Read More: Suze Orman Reveals the No. 1 Bill You Should Pay First Each Month<\/a><\/strong><\/p>\n Find Out: 6 Safe Accounts Proven To Grow Your Money Up To 13x Faster<\/a><\/strong><\/p>\n \u201cI also disagree with his insistence on halting all investments while repaying debt,\u201d said Shirshikov.\u00a0\u201cThis mathematically disregards compounding effects and opportunity cost.\u201d<\/p>\n By age 65, he said, a 30-year-old who stops making contributions to a 401(k)<\/a> for five years in order to concentrate on debt could lose hundreds of thousands of dollars in potential retirement growth.<\/p>\n