Dave Ramsey has blunt advice for Dallas student losing millions

By TheStreet Roundtable

5 days ago

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Jacob is a Dallas-based college student studying marketing who built a fortune worth $1.9 million by the time he was 20. His source of income: marketing for crypto companies.

But recently, he suffered a significant downturn in his net worth due to some "poor decisions" and turned to personal finance guru Dave Ramsey.

"Lifestyle inflation" caused it all, Jacob said.

It was gambling, partying, traveling, drinking, cars, staying in hotels, and a drug addiction. Sometimes, he would spend $100,000 at a club night. Other times, he would gamble $500,000 at one go. Soon enough, he lost 75% of his net worth.

When Ramsey asked him whether he had been to a rehab facility, Jacob said he didn't because he believed he didn't have a drug problem.

Ramsey was quick to intervene, "Oh, no. You have a drug problem. There is no question."

Crypto marketing earnings worth millions lost to gambling

The popular host said the young man had an addiction to both drugs and gambling.

Jacob then admitted to seeing a therapist to deal with his gambling addiction and cutting down his expenses.

The young college student also admitted to not engaging in crypto marketing anymore. Though he was making 5-6 figures every month, it was a side hustle, even though very lucrative, during college, he explained.

Ramsey had a blunt question for the young college student, "You chased the rainbow and it didn't bring you happiness. Is that the moral of the story?"

Jacob didn't disagree.

"It was supposed to be fun but at the end of the day, it just looked like a stupid kid losing all his money and snorting cocaine," Ramsey remarked.
"Yeah, 100%. I don't condone any of the actions," Jacob responded.

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Ramsey told Jacob that he needed a complete reset of what he thinks life is about.

Here is the good part: He got hedonism out of his system early in his life.

The bad part: It cost him millions of dollars.

Ramsey said he would urge Jacob to transform himself from a "Wolf of Wall Street" to a monk.

The best-selling author drew upon his experience of becoming a millionaire in his twenties but losing it all. It was short-term gains, instead of long-term planning, that led him to go bankrupt, but that's how he got the opportunity to start over again, he said.

Jacob said he wholeheartedly agreed with Ramsey's sentiment and admitted to having a depressive episode recently. The approach ahead lay in becoming a more grounded person and abandoning a flashy lifestyle.

Known for his conservative investment philosophy, Ramsey has always been very critical of cryptocurrencies. He has called it a "fad" and compared it to gambling.