The idea sounds almost ridiculous. Borrow $1 billion at 0% interest, park it in safe investments, and walk away with millions in profit. For most investors, that’s a no-brainer.
But not for personal finance expert Dave Ramsey.
When asked, “If you could borrow $1 billion, 0% interest for 10 years,” on “The Iced Coffee Hour” podcast in 2023, Ramsey didn’t hesitate. “No,” he said. Not maybe. Not it depends. Just no.
Why? Because for Ramsey, debt isn’t just a financial tool, it’s something he avoids at all costs.
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Ramsey’s stance comes from experience. Early in his career, he built wealth using leverage, only to lose everything. That failure shaped his entire philosophy.
“I don’t borrow money,” he said on the podcast.
“The borrower is slave to the lender,” Ramsey explained two months later on the “Millionaires in Cars Getting Coffee” podcast with his protégé, George Kamel. “I’m not going to be locked in to where someone else is calling the shots in our life ever again.”
To him, leverage isn’t clever, but dangerous. He calls it a “two-edged sword” that can create temporary success but eventually backfires.
That mindset shows up everywhere in how he operates. Ramsey runs his business entirely in cash, avoids credit cards, and pays for buildings outright. It slows growth, but it also reduces risk.
“We pay cash for everything,” Kamel said on the podcast. “We do things at the speed of cash.”
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Ramsey’s broader philosophy is built on simple, repeatable actions.
Stay out of debt. Live below your income. Invest consistently. Be patient.
He believes wealth doesn’t come from being a genius investor, but from behavior. “The wealth simply comes from putting money in [mutual funds] and leaving it alone,” he said.
That’s why he doesn’t spend much time trying to optimize returns. Instead, he focuses on consistency and discipline.
He doesn’t believe outside factors are the main reason people stay broke. Even though challenges exist, he says your own choices matter more.
“If you want corn, no exceptions, you have to plant corn,” he said on “The Iced Coffee Hour” podcast. “If you want something to come into your life, you have to cause that.”