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Compare Dave Ramsey to LDS Free Course

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Link to Audio⁠

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Dave Ramsey has the most extensive resources that not only help educate you about money but how to overcome the normal mans faulty core beliefs around money. But his course costs money. The Church of Jesus Christ of Latter-Day Saint's offers a free personal finance course you can take with your spouse along with other helpful accountability partners.

This roadmaps is perfect if you are a Christian and or you like a step by step/level up version of the money life roadmap.

Stages Comparison

Stages Comparison

Dave Ramsey Program

Free Faith Based Program

1: Becoming a Wise and Faithful Steward

2: Becoming Unified in Our Approach to Finances

3: Paying Tithes and Offerings Track Spending

4: Creating a Budget Budget meeting 1st of the month

5: Sticking to a Budget Emergency budget meetings

1: $1k Emergency Fund

6: Protecting Your Family from Hardship 1 Month emergency fund Get adequate insurance 72 hour - 1 month food & water storage (not mentioned)

7: Understanding Debt

2: Pay Off Debt - 18-20 months Have 0 sum budget Us the envelope system Monthly & emergency budget meetings Take side jobs or sell or do whatever to pay down debt faster

"8: Getting out of Debt Stop incurring more debt Use a plan to pay down debt (Avalanche or snowball) Take side jobs or sell or do whatever to pay down debt faster

3: 3 to 6 Month Emergency Fund - 6 months 5-25k

9: Managing Financial Crises Self > Family > Church > Community Build a 3 to 6 six-month emergency fund 2-3 month food & water storage (not mentioned)

Buy a home 100% down or 15 year mortgage

10: Investing for the Future (Part 1) Consider home ownership with pay extra monthly or take out a 15 year mortgage (less than 25% of your income for monthly payments, plan to own for at least 5 years) Saving at least 1 percent of the value of your home each year for maintenance Seek higher earning education Everything you buy now is saved up for

4: Investing 15%

11: Investing for the Future (Part 2) Set a retirement goal Research potential retirement accounts Begin saving for retirement as soon as possible 4-12 month food & water storage (not mentioned) Notably no mention of leveraging debt for investing

5: College Funding ____%

Mentions save money for goals

6: Pay Off Home Early 15 year mortgage of 100% down

7: Build Wealth & Give - 7 years to get to this step

12: Continuing to Give and to Bless Others

Irrespective of the steps: Enroll in a financial peace course Get proper insurance Pay tithes and offerings Don’t count on social security Always have a will & legacy drawer

Irrespective of the steps: Enroll in a free church sponsored financial group course

There are no rows in this table

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Compare by Philosophy

This is just a continuation of the last roadmap but arranged by topic. It helped me organize my thoughts around themes and view it from a different angle.

Philosophy Comparison

Philosophy Comparison

Column 1

Dave Ramsey

Free Faith Based

Getting to the point you can think about retirement planning

Have 0 sum budget Monthly & emergency budget meetings $1k emergency fund then pay off debt. Move emergency funds into money market account. Pay off debt using snowball

Have 0 sum budget Monthly & emergency budget meetings 1 Month emergency fund then pay off debt. Pay of debt using Avalanche or rollover AKA snowball

Insurance needed

Mentions Health Term life insurance Renters or Home Car Disability (own-occ & long term anything 5+) Identity theft Long term when care 60+ Vision (not mentioned) Dental (not mentioned)

Think about hardships you could protect yourself from. Health Term life insurance Home Car Disability Renters insurance (not mentioned) Vision (not mentioned) Dental (not mentioned) Identity theft (not mentioned) Long term care when 60+ (not mentioned)

Emergency fund

3-6 months

View of debt

Goal no debt/credit ever except debt for home with conditions Only uses debit cards

Goal no debt ever except debt for modest education,transportation, home

Things that kill your financial situation

Disunity with spouse on how to spend & save You need an accountability partner & meet in groups Cultural beliefs such as leveraging debt

Disunity with spouse on how to spend & save You need an accountability partner & meet in groups

Investments

Investing 15% College Funding ____% Roth IRA 401ks with match - Mutual Funds Then a few other ideas

Set a goal and work towards it

Rent and Mortgage

Rent or mortgage 25-35% of take home Only buy if you have 3-6 months emergency fund and are out of debt 100% down or 15 years then after investments for retirement and college funding pay down quicker Never do a 30 year loan, you will not pay it down faster

Rent or mortgage 0-25% of take home Only buy if you have 3-6 months emergency fund and are out of debt Pushes for lower interest rates and less years like a 15 year mortgage Or pay of a thirty year with extra monthly payments Plan to own for at least 5 years Saving at least 1% of the value of your home each year for maintenance

Were to give

Church than anywhere else

Increasing income

Primarily 2nd job is used for short periods of time to get out of debt. Use education and other tools to gain higher paying employement.

Education is the only tool mentioned to increase income

Taxes

Use tax advantages

Notably missing is

Child care or divorce budgeting

Child care or divorce budgeting When to build up 1 year food and water storage No mention of saving for a mission or college

Unique

Ramsey don’t count on social security Never pre-pay anything (college, funerals mentioned) Discourages debt consolidation

There are no rows in this table

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So how are you doing, probably far off from where you need to be to be in a healthy place with money. But don't worry, you can work towards getting back on the right road an pick up speed.

Based on this roadmap what should be your next step to take for personal finances?

Write your answer here.

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Summary (Made using NotebookLM by Google)

Executive Summary:

This briefing document summarizes a comparison of two personal finance programs: Dave Ramsey's Financial Peace University (FPU) and a free course offered by The Church of Jesus Christ of Latter-day Saints (LDS Church). Based on one individual's experience and interpretation, the two programs teach many of the same core financial principles but differ significantly in the order of steps and some specific recommendations, particularly concerning emergency funds, debt payoff strategies, mortgages, credit cards, and the explicit mention of college funding. The LDS Church program emphasizes stewardship, unity in finances, and tithing early on, while Dave Ramsey's program is noted for its focus on the emotional aspects of money management and generating behavioral change.

Key Themes and Important Ideas:

Similar Principles, Different Order: Both programs teach fundamentally similar principles for financial well-being. However, the sequence in which these principles are introduced and prioritized differs. This is a central point of comparison highlighted by the source.

Emphasis on Foundational Steps: Both programs prioritize establishing a budget and building an emergency fund early in the process.

Debt Reduction as a Core Goal: A significant portion of both programs is dedicated to strategies for paying off debt.

Long-Term Wealth Building: Both programs address investing and building wealth for the future.

Giving and Blessing Others: Both programs include principles related to generosity and helping others.

The Importance of Unity in Finances: The LDS Church program specifically emphasizes the critical nature of being unified with a spouse in financial matters. The source highlights a personal experience where this was "mission critical" during a job loss.

Self-Reliance and Community Support: The LDS Church program outlines a sequence for seeking support during financial crises: self-reliance, family, the church, and the community.

Significant Differences:

Emergency Fund Size and Timing:Dave Ramsey: Recommends a $1,000 initial emergency fund early in the process, emphasizing momentum and creating a buffer. The source quotes Ramsey stating, "it's not about the thousand dollars. It's about getting some momentum, putting something between you and the common issues of your life."

LDS Church: Recommends a one-month emergency fund before focusing on paying down debt beyond minimum payments. The source notes, "It is going to be more of a slog to get to that one month, but that's the recommendation."

Debt Payoff Strategy:Dave Ramsey: Strongly advocates for the snowball method (paying off the smallest debt first for psychological momentum). The source notes Dave's rationale: "said you wouldn't be in this situation if you were best with your emotions and finances. So go ahead and pay it with the snowball instead of the avalanche."

LDS Church: Allows for flexibility, suggesting both the snowball and avalanche methods (paying off the highest interest rate first for mathematical efficiency). The source states, "On the church side, you can use the avalanche or snowball."

Mortgage Recommendations:Dave Ramsey: Strongly recommends a 15-year mortgage, even suggesting a "100% down plan" or a "50 year mortgage" (which is interpreted as buying a much less expensive house) to save significant interest over time. The source emphasizes that this requires having a lot of money or buying a much smaller house.

LDS Church: Is more flexible, suggesting looking at options and potentially using up to a 30-year mortgage, while still acknowledging the benefit of a 15-year term.

Credit Card Stance:Dave Ramsey: Is "pretty harsh about credit cards and say cut them up." He views them as a negative influence for those who struggle with finances, describing it as removing the "choice of drugs. So speak."

LDS Church: The source doesn't explicitly mention the LDS Church's stance on credit cards in comparison, focusing more on the principle of "stop incurring more debt."

Explicit Mention of College Funding:Dave Ramsey: Includes college funding as a specific step in his "baby steps."

LDS Church: Mentions saving for "different goals" but does not specifically mention college funding for children in the excerpt provided. The source notes this as a "big difference."

Emphasis on Behavioral/Emotional Aspects: The source highlights that Dave Ramsey is "way better at teaching you and helping you get through um all of those sticking points, those issues" related to the emotional relationship with money.

Additional Important Facts/Ideas:

Early LDS Church Steps: The LDS Church program begins with steps like "become a wise and faithful steward," "become unified in our approach to finances," and "pay tithes and offerings and track spending" before aligning with some of Dave Ramsey's early steps.

Insurance and Food Storage: The LDS Church program includes recommendations for "adequate insurance" and the source also recommends "emergency food and some sort of water storage" based on other church teachings, though it's not explicitly listed as a step in the provided excerpt of the course outline. This becomes a stronger recommendation at the 3-6 month emergency fund stage.

Managing Financial Crisis (LDS Church): The LDS Church program outlines a specific approach to managing financial crises, starting with self-reliance and then seeking help from family, the church, and the community.

Saving for Home Maintenance (LDS Church): The LDS Church program recommends saving "at least value of your home year yearly for the maintenance."

Investing Recommendations (Dave Ramsey): Dave Ramsey is noted for being specific about investing, recommending a "guideline of 15%" and suggesting using Roth IRA, 401k match, and specific types of index funds or mutual funds.

Paying Off Home Early (Dave Ramsey): Dave Ramsey encourages paying off the home early as a significant step, though the source notes that many people, including himself, may not achieve this intensely for various reasons (like incurring debt for education).

"Build Wealth and Give" (Dave Ramsey): This is presented as a later step in the Dave Ramsey program, estimated to take around seven years for those who are intense about the process.

"Continuing to Give and to Bless Others" (LDS Church): This is the final step mentioned in the provided LDS Church outline.

Dave Ramsey's "Will and Legacy Drawer": A practical recommendation from Dave Ramsey to have a plan for accessing important information in case of death.

The Value of a "Roadmap": The source emphasizes the benefit of having a clear plan or "roadmap" for navigating the financial journey.

General Advice Disclaimer: The source explicitly states that the information provided is "general advice" and not specific investment advice, coaching, or counseling.

Conclusion:

Based on this individual's interpretation, both Dave Ramsey's Financial Peace University and The Church of Jesus Christ of Latter-day Saints' personal finance course offer valuable guidance for achieving financial stability and independence. While they share many common principles like budgeting, debt reduction, and investing, their sequential approaches and some specific recommendations (particularly regarding emergency funds, debt strategies, and mortgages) differ. Dave Ramsey's program is highlighted for its strength in addressing the behavioral and emotional aspects of money, while the LDS Church program incorporates principles of stewardship, unity, and tithing early on and provides a framework for seeking support during crises. The "best" program for an individual may depend on their personal circumstances, financial history, and learning style.

Transcription Enhanced by Grok AI

A Side-by-Side Journey Through Financial Peace University and the LDS Personal Finance Course

Introduction

Hey there, folks! I'm Jason from Money for Average Joe's, and today, we're diving into a comparison of two transformative personal finance programs: Dave Ramsey’s Financial Peace University and the free personal finance course offered by The Church of Jesus Christ of Latter-day Saints (LDS). Having gone through both courses myself, I’m sharing my personal take on their similarities, differences, and unique strengths. This isn’t a definitive guide, but rather my interpretation based on experience. So, grab a coffee, and let’s explore these roadmaps to financial freedom together!

Note: If you’re following along with the free resource available at moneyforaveragejoes.com, make sure to click into the comparison table for a side-by-side view, especially on mobile devices. If you haven’t grabbed the resource yet, it’s free and hosted on coda.io—a dynamic platform similar to an enhanced Google Doc where you can copy the resource, add your own notes, and customize it to fit your journey.

Overview: Shared Principles, Different Paths

Both programs aim to empower you to take control of your finances, but they approach the journey differently. They share core principles—like budgeting, debt elimination, and saving for the future—but the order of steps and a few key philosophies set them apart. Below, I’ve broken down the steps of each program, highlighted their differences, and added some personal insights to make this comparison as relatable and actionable as possible.

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Step-by-Step Comparison

Step 1: Laying the Foundation

LDS Course: The LDS course kicks off with a focus on becoming a wise and faithful steward. This means understanding money as a tool for fulfilling your responsibilities to yourself, your family, and your faith. It emphasizes spiritual and practical alignment in managing finances.

Dave Ramsey: Dave doesn’t explicitly start with stewardship but jumps straight into building momentum with a $1,000 emergency fund (more on that later). His approach is action-oriented, focusing on quick wins to shift your mindset.

Insight: The LDS course’s emphasis on stewardship resonated with me as a call to view money with purpose, while Dave’s approach felt like a sprint to get the ball rolling. Both are motivating in their own way.

Step 2: Unity in Finances

LDS Course: Step two is about becoming unified in your approach to finances with your spouse or partner. This was a game-changer for my wife and me. About three weeks into the 12-week LDS course, I was unexpectedly fired from my job. Having already established a unified budget and financial plan was a lifeline—what I call a “tender mercy” from God. It gave us clarity and confidence during a stressful time.

Dave Ramsey: Dave also stresses the importance of spousal unity, but it’s woven throughout his program rather than a distinct step. He often talks about how financial disagreements can strain relationships, so getting on the same page is critical.

Insight: The LDS course’s explicit focus on unity upfront helped my wife and me align our goals early, which was crucial when life threw us a curveball. Dave’s approach feels more integrated but equally emphasizes teamwork.

Step 3: Tithing and Tracking

LDS Course: Here, the course advises paying tithes and offerings and diligently tracking your spending. This step sets the stage for financial discipline by prioritizing giving and awareness of where your money goes.

Dave Ramsey: Dave doesn’t cover tithing as a specific step but encourages giving generously once you’re financially stable. He also emphasizes tracking spending, often through tools like the zero-sum budget or envelope system, where every dollar is assigned a purpose.

Insight: The LDS course’s focus on tithing first aligned with my values, while Dave’s practical budgeting tools gave me a clear framework to see where my money was actually going. Combining both approaches helped me stay intentional.

Step 4: Budgeting Basics

LDS Course: Step four is about creating a budget and holding a budget meeting at the start of each month. This step builds on tracking to create a proactive plan.

Dave Ramsey: Dave’s budgeting philosophy aligns here, advocating for a zero-sum budget where every dollar has a job. He also encourages regular budget check-ins to stay on track.

Insight: Both programs nail the importance of budgeting, but Dave’s zero-sum approach felt more structured, while the LDS course’s monthly meetings fostered accountability with my spouse.

Step 5: Sticking to the Plan

LDS Course: This step emphasizes sticking to your budget and holding emergency budget meetings when unexpected expenses arise. It’s about building discipline and adaptability.

Dave Ramsey: Dave echoes this, stressing the need to live within your budget and adjust as needed. He’s big on cutting unnecessary expenses to stay focused.

Insight: The LDS course’s emergency meetings were a lifesaver when my job loss disrupted our plans. Dave’s intensity pushed me to trim the fat from our spending, which complemented the LDS approach.

Step 6: Emergency Fund

LDS Course: Now the paths converge. The LDS course recommends building a one-month emergency fund before aggressively tackling debt. This means paying only minimums on debts until you have a full month’s worth of expenses saved, providing a substantial buffer.

Dave Ramsey: Dave’s iconic Baby Step 1 is to save a $1,000 emergency fund as quickly as possible. He’s clear that $1,000 isn’t the ultimate goal—it’s about creating a small cushion to protect you from life’s curveballs and building momentum. Dave argues that a larger fund can wait until after debt is paid off.

Key Difference: The LDS course prioritizes a larger, more secure emergency fund upfront, which takes longer but offers greater stability. Dave opts for speed and psychological wins, acknowledging that $1,000 isn’t ideal but gets you moving.

Insight: Dave’s $1,000 fund was easier to achieve and gave me a quick sense of accomplishment, but the LDS one-month fund felt safer, especially after my job loss. Dave’s focus on emotions—how your relationship with money affects your decisions—really hit home for me, as I’ve struggled with sticking to financial plans in the past.

Step 7: Insurance and Preparedness

LDS Course: At this stage, the LDS course advises getting adequate insurance (health, auto, home, etc.) to protect your financial progress. While not explicitly mentioned, I recommend aligning with other church teachings by starting an emergency food and water storage plan—think a small stockpile for unexpected disruptions.

Dave Ramsey: Dave doesn’t cover insurance as a specific early step but addresses it later, emphasizing the need for proper coverage to avoid financial ruin. Food and water storage aren’t part of his program.

Insight: The LDS course’s focus on insurance and preparedness felt holistic, especially given the church’s emphasis on self-reliance. Adding food storage gave me peace of mind, though it’s not a formal step in either program.

Step 8: Understanding and Tackling Debt

LDS Course: Step seven is about understanding debt—its risks, costs, and how it impacts your future. Step eight then focuses on stopping new debt and using a plan to pay it down. The course allows flexibility, letting you choose between the snowball method (paying off smallest debts first for momentum) or the avalanche method (paying off highest-interest debts first to save money).

Dave Ramsey: Dave’s Baby Step 2 is all about paying off debt with intensity, using the snowball method exclusively. He argues that if you were great with money, you wouldn’t be in debt, so the snowball’s quick wins are better for overcoming emotional and mental blocks. Dave encourages extreme measures—like getting a second job or selling possessions—to clear debt fast, often within 18–20 months for those who go all-in.

Key Difference: Dave’s snowball method prioritizes psychology over math, while the LDS course gives you the option to choose based on your discipline. The avalanche method saves more money in interest but requires sticking to the plan without the quick wins of the snowball.

Insight: Dave’s snowball method worked wonders for my motivation, as paying off smaller debts felt like crossing finish lines. However, I appreciated the LDS course’s flexibility, as the avalanche method makes more financial sense if you can stay disciplined. Ultimately, pick the method you’ll actually stick with.

Step 9: Building a Robust Emergency Fund

LDS Course: Step nine is about managing financial crises by building a 3- to 6-month emergency fund. The course suggests relying on yourself first, then family, the church, and the community (in that order) during tough times. I also recommend ramping up food and water storage to 2–3 months at this stage.

Dave Ramsey: Baby Step 3 is building a 3- to 6-month emergency fund. Dave advises 3 months if you have stable dual incomes, or 6 months if your income is irregular or you’re self-employed. He estimates this fund ranges from $5,000 to $25,000 for most Americans, depending on lifestyle.

Insight: Both programs align here, but the LDS course’s broader focus on self-reliance and community support added depth. Building a 6-month fund felt daunting but necessary, especially as a freelancer with irregular income. The food storage recommendation gave me extra security.

Step 10: Home Ownership

LDS Course: The course encourages saving for a home but is flexible on mortgage terms, allowing up to a 30-year mortgage if needed. It also advises saving at least one year’s worth of home maintenance costs annually to avoid surprises.

Dave Ramsey: Baby Step 4 (sort of—Dave combines home buying with other steps) emphasizes buying a home with a 15-year mortgage or paying 100% cash to avoid excessive interest. This often means buying a smaller home than your realtor might suggest, but it saves money in the long run.

Key Difference: Dave’s 15-year mortgage is stricter, aiming to minimize interest, while the LDS course is more lenient, accommodating different financial situations.

Insight: Dave’s 15-year mortgage plan required serious number-crunching, but it showed me how much I’d save. The LDS course’s flexibility felt more realistic for my budget, especially with other goals like my wife’s education. I recommend running the numbers with a trusted financial advisor to find what works for you.

Step 11: Investing for the Future

LDS Course: Step ten is investing for the future, focusing on setting retirement goals, researching accounts (like IRAs or 401(k)s), and starting to save as soon as possible. It also suggests building 4–12 months of food storage at this stage.

Dave Ramsey: Baby Step 4 is investing 15% of your income into retirement accounts, like Roth IRAs or 401(k)s with good mutual funds. Dave provides specific investment recommendations, emphasizing low-cost index or mutual funds.

Insight: Dave’s 15% guideline was clear and actionable, especially since I’m 38 and playing catch-up on retirement savings. The LDS course’s broader approach encouraged me to think about long-term preparedness, including food storage, which added a unique layer to my planning.

Step 12: Education and Other Goals

LDS Course: The course encourages saving for various goals, including higher education, but doesn’t specifically address college funding for kids.

Dave Ramsey: Baby Step 5 focuses on saving for your kids’ college education using tax-advantaged accounts like 529 plans. Dave stresses avoiding student loans and paying cash for education.

Key Difference: Dave explicitly prioritizes college funding, while the LDS course leaves it as a general goal, giving you flexibility.

Insight: As a parent, Dave’s focus on college savings pushed me to start a 529 plan, but the LDS course’s broader goal-setting helped me balance other priorities, like my wife’s master’s degree in social work.

Step 13: Paying Off the Home

Dave Ramsey: Baby Step 6 is paying off your home early by making extra mortgage payments. Dave notes that many people don’t reach this step, but even small extra payments can shave years off your mortgage. For example, I rounded up my payment by $15–$20, which could cut a year off my mortgage term.

LDS Course: The LDS course doesn’t emphasize paying off the home early but encourages responsible homeownership and maintenance savings.

Insight: Dave’s intensity inspired me to make small extra payments, which gave me a sense of progress. The LDS course’s focus on maintenance savings reminded me to budget for unexpected repairs.

Step 14: Building Wealth and Giving

LDS Course: The final step is continuing to give and bless others, emphasizing generosity and using your financial stability to help others.

Dave Ramsey: Baby Step 7 is building wealth and giving generously. Dave estimates that those who follow his plan intensely can reach this step in about seven years, though it may take longer (13–20 years) for most.

Insight: Both programs end with a call to generosity, which felt like the ultimate reward of financial discipline. Dave’s timeline gave me a tangible goal, while the LDS course’s spiritual focus reminded me why I’m on this journey.

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Key Differences and Takeaways

Emergency Fund Timing: Dave’s $1,000 starter fund is quick and motivating, while the LDS one-month fund is more secure but takes longer.

Debt Payoff Method: Dave insists on the snowball method for psychological wins, while the LDS course offers flexibility with snowball or avalanche.

Home Buying: Dave’s 15-year mortgage is aggressive, while the LDS course allows up to 30 years for flexibility.

College Funding: Dave explicitly prioritizes saving for kids’ college, while the LDS course treats it as a general goal.

Emotional vs. Logical: Dave excels at addressing emotional barriers to financial success, making his program ideal for those who struggle with discipline. The LDS course is more logical and flexible, appealing to those who can stay the course.

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Personal Reflections

Both programs transformed my relationship with money, but they shone in different ways. Dave Ramsey’s intensity and clear steps helped me overcome mental blocks and stick to a plan, especially when paying off smaller debts. The LDS course’s spiritual grounding and flexibility gave me a broader perspective, emphasizing stewardship and preparedness. Combining elements from both—like Dave’s budgeting tools and the LDS focus on tithing and food storage—created a personalized roadmap that worked for my family.

One standout moment was during the LDS course when my job loss tested our financial unity. The skills we’d learned—budgeting, tracking, and emergency planning—kept us afloat. Dave’s program later gave me the push to tackle debt aggressively, which felt empowering.

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Action Steps

Download the Resource: Head to moneyforaveragejoes.com to grab the free comparison table. Copy it to your coda.io account to add notes and track your progress.

Choose Your Path: Pick one program (or blend them) as your guide. Write down one actionable step you can take today—whether it’s starting a $1,000 emergency fund, tracking your spending, or setting a budget meeting with your spouse.

Seek Expert Advice: This is general advice, not tailored to your situation. Consult a financial advisor for personalized guidance.

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What’s Next?

In the next episode of Money for Average Joe’s, we’ll dive into the One-Page Money Plan—a simple, clever tool to outline your financial goals across categories. It’s free, easy to use, and perfect for seeing your high-level financial journey at a glance. Stay tuned!

Disclaimer: This is general advice based on my experience. I’m not a financial advisor, so take this with a grain of salt and consult professionals for specific guidance.

Thanks for joining me on this journey to financial freedom. Here’s to being wise stewards and above-average Joes! See you next time.

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