‘Dave, This is Kinda Stupid’: Grant Cardone Says Dave Ramsey's 3-Month Emergency Fund is ‘The Greatest Scam Ever Created’

Caleb Naysmith

Fri, Jun 27, 2025, 11:11 AM 3 min read

Grant Cardone, known for his bold financial strategies and outspoken personality, has again stirred debate with his critique of traditional emergency savings. In a recent interview, Cardone questioned the widely recommended practice of setting aside several months’ worth of living expenses in a dedicated emergency fund, a strategy championed by financial experts like Dave Ramsey.

Cardone’s argument is rooted in his broader financial philosophy, which emphasizes aggressive investment and income generation over conservative saving. “Let’s say if your cost of living was three grand a month, Dave Ramsey would be like ‘you need $9,000.’ I’m like, ‘Dave, this is kind of stupid brother.’ You’re just going back and forth. You’re a yo-yo. You’re literally funding an emergency. You’re manifesting an emergency with your money. You earn nothing on it, and then you’re pulling the emergency in,” Cardone explained, highlighting what he sees as the inefficiency of letting cash sit idle in low-yield accounts.

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This perspective is consistent with Cardone’s history and approach to wealth building. Having built a $4.7 billion portfolio through real estate and business ventures, Cardone has long advocated for putting money to work rather than letting it stagnate. He encourages individuals to “take your emergency account, keep it at zero all the time. Take that emergency money and make sure you’re investing it in something where you know you can’t lose, and when the emergency comes, do not fund it out of the thing you invested in. Fund it with people, go hustle other people. ‘David, I need nine grand for my emergency. Can you help me?’”

Cardone’s stance is not without controversy. Many traditional financial advisors argue that emergency funds provide a crucial safety net during unforeseen events like job loss or medical emergencies. Dave Ramsey, for instance, maintains that having three to six months’ worth of expenses set aside can turn a crisis into a mere inconvenience, reducing stress and providing security. Cardone, however, contends that such funds are “one of the greatest scams that banks have ever created,” suggesting that they benefit financial institutions more than individuals.

Cardone’s approach is emblematic of his larger ethos: prioritizing investment, seeking multiple income streams, and leveraging resources for growth. He believes that relying on personal hustle and social networks in times of crisis is more effective than maintaining a passive cash reserve. This philosophy has resonated with many aspiring entrepreneurs, though it remains at odds with the more conservative strategies advocated by mainstream financial planners.