‘Dumb! Really dumb!’ Dave Ramsey calls out the 3 most common ‘illogical’ financial mistakes his callers make. Avoid these money pitfalls now

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 31.5% of home purchases involved co-buyers (2).

But 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 monthly 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.

For those seeking predictable, reliable growth, a platform like CD Valet can help you find higher-yield options that work for you, whether you’re saving for something soon or building a cushion for the long haul.

CD Valet tracks over 40,000 verified rates from FDIC-insured banks and NCUA-insured credit unions nationwide. Unlike other websites, they show every publicly available rate, ensuring you have a comprehensive view of the market.

Plus, their CD rates are updated continuously, so you can shop, compare and open CDs with ease.

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.

Consolidating all your debts into a personal loan through Credible is an effective way to get rid of your debt faster. Instead of juggling multiple monthly payments, you’ll have one predictable payment to manage each month.

Through Credible's online marketplace, finding the right loan becomes much simpler. Credible lets you comparison-shop for the lowest interest rates with just a few clicks.

In less than three minutes, you’ll see all the lenders willing to help pay off your credit cards or other debts with a single personal loan.

If you owe a substantial amount, you may also want to see if you qualify for a debt relief program to help clear a significant portion of your debt.

With Freedom Debt Relief, you can speak with a certified debt relief consultant for free, who can show you how much you can save by partnering with them.

If you’re eligible, they can negotiate settlements with your creditors until all of your enrolled debt is resolved.

3. Upgrading cars

Ramsey says that not even a totaled car is good enough reason to upgrade. One of his long standing pieces of advice is to buy used if possible.

“You were driving a $6,000 car,” he said, referring to a caller’s situation. “Your car gets totaled, you get a check for $6,000 and, suddenly, $6,000 cars aren’t good enough for you. That’s dumb!”