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You are here: Home / US / Money / Financial Peace University Review: FPU Unbiased Review

Financial Peace University Review: FPU Unbiased Review

by Nollywood 38 Comments

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Lots of time, a lot of Americans ask questions like:

  • Is financial peace university worth it?
  • Is financial peace university religious?
  • Or some others just search online for financial peace university review or financial peace university negative reviews by Dave.

Are you looking for an honest FPU Review? Read on…

Well, I might not have the answer to all of your questions but I can tell you this; Dave Ramsey’s Financial Peace University motivates millions to get out of debt, but his program is not perfect.

People who live in America are almost completely buried in debt. According to the Federal Reserve, the average American household has over $31,000 in student loan debt as well as over $15,000 in credit card debt, as of September 2013.

If by chance, you so happen to belong to the class of Americans looking to pay off debt and gain financial freedom you may have heard no doubt of the viral reviews about Dave Ramsey’s Peace University. Let us take an unbiased look of Ramsey’s Financial Peace University review/the FPU program.

You might choose to do online vs. classes in the FPU program. Either way, you might discover that the program isn’t right for you, or you may be ready to find the classes in your local today. On the other hand, if you like the program, you’ll gain deeper understanding of the basics of the program, its backgrounds and its outcomes.

So let’s begin with a big question….

Who is Dave Ramsey?

Dave Ramsey is a popular financial speaker and author. He has a well-known syndicated radio program and has been featured on TV shows due to his expertise in the world of finance. Dave created a financial program which he named “Financial Peace University” (FPU). FPU is an integrative program which involves a book, video teaching, live classes and small group discussions.

If you buy into the idea of what Ramsey has to offer but aren’t ready to pay fees for taking his class, his book The Total Money Makeover teaches a solid beginners’ introduction to the concept he teaches.

He uses biblical influences but financial peace university is no way religious or made for just Christians.

Dave Ramsey happens to be a Christian and his book, Financial Peace University happens to have biblical base to its teachings. Plus, there are certain pages in the materials used to teach the program are quoted.

However, it’ contents are presented in a very non-offensive kind of way that anyone from whatever religion can relate to, so you don’t have to be a Christian or Jew to benefit from the program. A co-worker in my workplace is a Buddhist and he still relates to the contents of the book very well. In Fact, he recommends the book even to his Muslim colleagues.

Financial Peace University Review: Is Financial Peace University Worth It?

Financial Peace University Review FPU Unbiased Review

Dave Ramsey’s “Seven Steps”

The program is centered on seven steps. Dave Ramsey calls it “the 7 aby Steps”. The baby steps are as follows:

  1. Save $1,000 to start up your emergency fund as soon as possible.

To completely save your first $1,000, you have to scale the temptation of spending cash on anything you do not need. If it makes it faster to raise, you can choose to do a garage sale, or anything (legal of course) to get that first $1,000 stashed away.

Completing this first step requires commitment, discipline and patience. Now let’s follow the rest of the steps.

  1. Pay off all of your debt using the Debt Snowball method.

The Debt Snowball method is the simplest method to get rid of your debt. The way it works is, you pay off the debt with the lowest amount first. Once that is cleared, apply what you would have continued to pay monthly to the next debt and so forth. Doing that creates a snowball effect and your debt becomes cleared off before you can even say DOMINOES!

  1. Save 3-6 months’ worth of expenses to further complete your emergency fund.

According to Dave Ramsey, a real emergency fund should have about 3-6 months’ worth of expenses. Once you set up an emergency fund you will discover that credit cards are no longer needed to be used for those “late time emergencies”.

  1. Invest 15 percent of your household income into a retirement account.

Investing 15% of your entire income enables you to eliminate all the money you owe except for your home mortgage. Ramsey advice readers to invest 15% of their entire income into a Roth IRA.

  1. If you have children, start saving for their college education now.

Begin saving for your children’s college with 529 plans and Education Savings Accounts (ESA’s). DO NOT USE pre-paid college tuition, insurance, zero-coupon bonds or savings bonds.

  1. Pay off your home.

Start aiming the all that extra cash into paying off your mortgage. Following his tips, this is the last debt you will ever have to pay.

  1. Build wealth and give!

Ensure to donate money on a regular basis and bless others with your successes.

 

Criticism of the debt snowball

Financial Peace University Review FPU Unbiased Review

Although it is very obvious that following the seven step taught in Financial Peace University can help you pay off your current debt and grow your savings from ZERO to SOMETHING, it’s also easier said than done. Contrary to what some people might make you believe, the Financial Peace University is not a “get rich quick scheme”; it’s more like laying brick upon brick till you get that desired house structure(slow, painful and steady).

A good number of financial advisors criticize the debt snowball method because it isn’t necessarily the quickest method to reduce debt.

According to Math’s, paying off your debt with the highest interest is actually a better idea when compared to clearing debts with the lowest interest. But, Dave claims that the debt snowball method is really effective because it is more of emotional accomplishment when individuals see their credit cards being completely paid off and therefore there is an increased chance they’d stick to the program.

 

Criticism of FPU and real estate

The cool idea of putting extra cash down each month to pay down your mortgage as fast as possible (once you’ve succeeded in paying off leftover debt) is super solid because it eventually gets you out of every debt trap.

However, a lot of participants in Dave Ramsey’s program have a hard time following his recommendation of only buying real estate with cash or- if completely necessary- with a 15-year fixed rate mortgage. For some, this is highly possible but for others, the idea is completely impossible for families even if they save for many years. The area you live in too plays a role in how much you can invest per month or per year.

It gets interesting:

Do you know that many Americans successfully carry mortgages at low interest while investing funds and earning bigger return on investments (ROI) and other just take on more mortgages to buy investment properties, which Dave would never recommend.

Personally, I don’t believe either approach is wrong or right. In fact, it depends on your risk tolerance and financial priorities. Are you willing to shoulder a couple of debt(and some risk) for the chance to gather wealth more faster or do you want to be debt-free at all costs?

 

Most of FPU is reasonable for many

Financial Peace University Review FPU Unbiased Review

If like other American citizen, you have debt to pay off, the first steps of FPU are good ones. The gap between paying the smallest debts first(as opposed to those with the highest interest rates) might suck a few hundred dollars in lost interest, but both plans should and will 100% work if you stick to them diligently.

I recommend you start a personal program for your family based on the seven baby steps principles, but tailor it to meet your current needs. Only you and you alone know and understand what will work for you 100% of the time.

If you really want to buy a home but can’t pay all the money, start saving as much cash as you possibly can. Put as much money down as you can and ensure that your monthly payments are comfortable even if you encounter unforeseen live changes.

Did you enjoy our Financial Peace University review? Have you given Financial Peace University a shot? How has that worked well for you? Share your experience and awesome tips for getting out of debt today!

Filed Under: Money, US

Comments

  1. Adaezeboltbethel says

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    This was indeed an unbiased review, very informative. Thanks for sharing.

    Reply
    • Martins says

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      Pleasure is mine, Ada.

      Reply
  2. Juli says

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    This is interesting seeing that I do need to start saving as well.

    Reply
    • Martins says

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      Yes, it truely is Juli. Saving is part of the seven principles and is very important to financial success.

      Reply
  3. Harish says

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    Thanks for your unbiased review on FPU. It really helps.🙂

    Reply
    • Martins says

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      Hello HARISH. Happy to help out; do come again. Thanks

      Reply
  4. Indu says

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    Never heard about FPU so this has been insightful read for me. You have projected balanced review.

    Reply
    • Martins says

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      Thanks Indu!

      Reply
  5. Evelyn Hernandez says

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    Thanks for your honest review!

    Reply
    • Martins says

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      Hey Eve. Pleasure is mine

      Reply
  6. Navneet says

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    Hey that’s quite an informative article, I never knew about FPU but thanks for enlightening!

    Reply
    • Martins says

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      Awesome! Would you be trying it soon, Nav?

      Reply
  7. Backpacking Series says

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    The figures of debt in US are quite a revelation! Glad that someone is helping people to learn, reflect and inspiring to act too. Debt Snowball method makes sense.

    Reply
    • Martins says

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      I was shocked as well and I don’t think it will reduce unless people start being mindful of how they make, save and spend cash. I ove the debt snowball method- It has always worked for me and totally makes sense.

      Reply
  8. aisasami says

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    Dave Ramsey was very popular and well praised when I was in college. I didn’t really explore what he talked about or went to his sessions. He was well-liked by lots but I really didn’t take interest in him.

    Reply
    • Martins says

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      How about now, do you feel any diffrent? If your anser is still no, you are missing out. You should try it nonetheless- It still works!

      Reply
  9. Mitali Deshmukh says

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    I did not know much of it. but you have given a good insight

    Reply
    • Martins says

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      I am happy you now know about it. You should def try it

      Reply
  10. Madison Scholl says

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    This is a very comprehensive look at pros and cons. It’s the type of review that makes me feel comfortable considering a product rather than pressured to buy something that might not be the best.

    Reply
    • Martins says

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      Haha, I know that feeling. Expect more reviews from us, Madison.

      Reply
  11. Tracy @ Cleland Clan says

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    The steps seem simple, but are difficult for many people. And, a single hospital visit can easily wipe out your emergency fund at any time.

    Reply
    • Martins says

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      That is true Tracy but it always helps to always save more in case of unexpected things. This is part of what Dave Ramsey teaches.

      Reply
  12. Maysz says

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    I don’t have an idea about the FPU Unbiased Review but thanks this post so now I know what is FPU Unbiased Review all about!

    Reply
    • Martins says

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      Hello May,

      The FPU is very intriguing and even better if you want to attain financial freedom before 30!

      Reply
  13. my wee thoughts says

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    This is so helpful. Before I buy a book, I made sure that I checked its reviews online first. Great!

    Reply
    • Martins says

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      That’s cool! I also do the same. Glad to see we have something in common.

      Reply
  14. Neil Alvin Nicerio says

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    Well, saving is good but investing is better. Don’t just settle on savings as inflation would usually just eat up your money.

    Reply
    • Martins says

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      You are right. I believe the two should complement one another.

      Reply
  15. ann says

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    Wow!.. what a bunch of wisdom here. I agree on having emergency funds and paying debts this way. I think I should buy this book. Thanks for the idea.

    Reply
    • Martins says

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      Hey Ann. You should buy it, you will love it!- so worth it.

      Reply
  16. Everything on a plate says

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    This is very well written… Definitely an eye opener for us

    Reply
    • Martins says

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      Happy it did that for you.

      Reply
  17. MELISSA says

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    saving is key to life, You can have the money in the world but if you don’t have money saved that you can’t fall back on your screwed.

    Reply
    • Martins says

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      I agree mel but it is better to invest the saved money into an investment.

      Reply
  18. Vaishali says

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    A very informative and unbiased review.

    Reply
    • Martins says

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      True that!

      Reply
  19. Nempal Nager says

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    Keep up the good work bro. I love this review!

    Reply
    • Martins says

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      I know you do. Visit us again

      Reply

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