That Time Dave Ramsey Sat on the Floor and Wept . . . and Unlocked the Solution

Nothing like a good come-from-behind victory to start off the new year.

By the time he was 26 years old, Dave thought he had it all figured out. He had a $4 million real estate portfolio, a beautiful family, and the kind of swagger that only comes when you think you have outsmarted the market.

But little did he know that he was building on sand.

Uh Oh!

In 1988, the banks consolidated. A new lender took over and they didn't like his debt-to-equity ratio.

So they called his notes.

They wanted $1,200,000 in 90 days.

And no, Dave certainly didn't have it. As a result, he spent three years in what he calls “a death spiral” that ended with him signing bankruptcy papers while his toddler played nearby.

Rock Bottom

Dave was now a disgraced former millionaire, and yes, he literally sat on his kitchen floor and wept.

But that rock bottom, that”splat” as he called it, became his foundation.

He realized that the math didn't matter if his behavior didn't change. And so he set about learning how to change his behavior, how to grow without debt.

Dave started teaching a small class in a church basement. No, he didn't have a big brand yet, he barely had any students. But he had a message that resonated: A story about a guy who touched the stove and got burned. And the lessons he learned about debt, and how they should learn them too.

The Comeback Kid

That class became a local radio show. And that local show then a national radio show. And that national show became a bestselling book. And that book became an empire.

That man?

Yep, it’s Dave Ramsey.

Today, Dave’s empire is worth hundreds of millions. But Dave Ramsey didn't win because he was a genius; he won because he survived the "splat" and used that experience to help others avoid the same trap.

P.S. I’m opening up two spots this week to work with me 1-on-1.

If you’re tired of sounding like everyone else, or if your marketing is hitting a "splat" of its own, I can help. I’ll ghostwrite your next campaign or social posts, or we can spend an hour tearing your current strategy apart and figuring out together what actually works.

I don't do "consulting." I do results.

Shoot me an email at [email protected] with the word GROWTH, and let’s chat!

The Takeaway

The lesson is that your “reset” can be your magic moment that uses your unique strength. Julia Child was a failure until she was 50. Dave Ramsey was a failure at 30. For an entrepreneur like you, in the trenches, maybe the struggle isn't the obstacle, just maybe it is the foundation.

You got this!

Steal This Strategy

📖 Book — The Total Money Makeover by Dave Ramsey The recovery blueprint born out of the ashes of a $4 million bankruptcy. It is the definitive guide on changing behavior to fix the math.

🎙️ Podcast — The Phoenix Moment: Dave Ramsey’s Story Listen to the raw account of the day he hit the bottom and how he started the church basement class that became an empire.

🎥 Read — The Small Business Bible by Steven Strauss My bestselling book for building a business that can thrive in the current market.

About Steve

Steve Strauss is the best-selling author of The Small Business Bible (and 17 other books), Inc.’s small business columnist, a lawyer (non-practicing), and an entrepreneur. He sold his last venture, TheSelfEmployed.com to Mark Cuban & Zen Business. Need a ghostwriter or a newsletter for your business? Contact Steve!