Dave Ramsey ranted about 3 'illogical' money mistakes Americans make that 'baffle' him — here's how you can avoid these common financial errors

However, some argue that economic and social trends may have made some of these mistakes unavoidable. Here’s a closer look at three of Ramsey’s top “dumb” money mistakes and why they’re so common.

1. Co-buying property

Ramsey despises the prospect of buying property with anyone besides a spouse. He advises against this even in long-term relationships.

This advice is rooted in the fact that separating assets between an unmarried couple can be complicated. They do not always share the same property rights as married couples.

However, the housing crisis has pushed more people to consider co-ownership of property. A report by Co-Buy, a platform that helps multiple buyers share a property, says 26.7% of home purchases in 2023 were co-purchases, while 30% of those co-purchases were completed by unmarried couples.

If you’re not in a position to purchase a home — whether on your own or with a spouse — you can still take advantage of real estate’s income-generating potential.

You can tap into this market by investing in shares of vacation homes or rental properties through Arrived.

Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.

To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.

2. Wasteful spending on education

Investing in your education, Ramsey believes, should yield higher earnings. Otherwise it’s a wasted pursuit.

"Don't spend $250,000 getting a master's degree in sociology so you can be a caseworker for the state making $38,000," he said.

He believes students should realistically consider their career prospects and future earnings before going into debt for college.

You can also minimize the impact of paying for education by saving up for it ahead of time — whether for yourself or for your children — by using a high interest savings vehicle such as a certificate of deposit or other high-yield savings account.

A certificate of deposit (CD) pays a fixed interest rate on money held for a set period of time. CD rates are usually higher than other savings accounts, but if you withdraw your CD funds early, you'll be charged a penalty fee.

But since this is a long-term savings play for your or your kid’s education, they are a strong option you’ll be less tempted to dip into.

If you’re looking for safe, high-return options, certificates of deposit (CDs) are a great choice, and SavingsAccounts.com makes finding the best ones easy. Their comparison platform provides real-time data on CD rates and terms from various banks, offering tailored recommendations to maximize returns.

Ideal for conservative savers and long-term planners, this tool simplifies the decision-making process, helping you grow low-risk, high-return investments without the stress.

One thing to note about CDs: If you withdraw the money before the end of the term, you’re likely to face penalty fees.

For those who already have student debt, it can be a daunting task to tackle it. Americans are collectively sitting on $1.6 trillion in student loan debt.