A bill collector from American Express once asked Dave Ramsey’s wife, ‘Why would you stay with a man who won’t pay his bills?’ And it made the money guru mad. Here’s what he did

A rocky period filled with debt

Ramsey wasn't always the millionaire he is today. In fact, he once said, "When we first got married, we were so broke it was unbelievable."

In his 20s, things started looking up for Ramsey. He started buying and selling real estate and at 26 years old, he had a great income. He bought a fancy car and had a baby. But then things started falling apart.

Once the banks he had borrowed from started calling about his loans, Ramsey had 90 days to repay millions of dollars in debt.

"I couldn't control the outside variables… I remember being so scared," he said. Ramsey had no choice but to file for bankruptcy, but that ignited a spark in him to get on a better financial path.

Ramsey started following a budget and made other positive changes, like building savings. And following that jarring phone call, he pledged to use his financial knowledge and faith to start building his empire.

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Helping others become debt-free

In 1992, Ramsey started a radio show that took callers' money questions. Within two years, it became the top-rated show in Nashville and eventually became nationally syndicated.

Ramsey’s thought process was simple: "I'll teach this financial stuff I've learned the hard way."

Ramsey has also authored books on financial freedom and started his company, Ramsey Solutions, to help consumers become debt-free. According to his website, he's helped people pay off more than $1 billion in debt and “change their lives for good.”

“The thing that changed my life was the nobility of my future,” Ramsey once shared on his show. “I looked out there in the future and I said, you know what, this is it. Never again will we borrow money. Never again is American Express going to call my house and ask my wife why she would stay with a man that won't pay his bills.”

To this day, Ramsey works to share his financial philosophy so that other people don't fall into the same trap he did. And that philosophy is rooted in a few core elements.

Ramsey's financial philosophy

First, Ramsey hates debt and thinks it should be avoided at all costs. Other than a mortgage, he thinks no debt is worth carrying. As his website says, "As long as your money is tied up in monthly debt payments, you can’t build wealth. That’s like trying to run a marathon with your legs tied together."

Ramsey also believes in the importance of having a fully-loaded emergency fund — one with enough money to cover three to six months of expenses. Once people get to that point, they should invest 15% of their income toward retirement. And Ramsey is a fan of investing in growth stock mutual funds in particular.

Ramsey also thinks it's important to invest consistently and think long-term. That means buying quality stocks and assets and holding them for many years so their value appreciates.

Finally, Ramsey is a fan of working with a financial advisor. "Look for a pro who takes time to answer your questions and gives you all the information you need to make good investing choices," his website says.

Had Ramsey had his own financial advisor back in the day, he perhaps would've avoided some of the financial heartache his family experienced. But it clearly motivated him and made him stronger, and that's perhaps the most important lesson to take away.