Dave Ramsey’s Electric Bill

Dave Ramsey's Electric Bill

About three weeks ago, we took a closer look at Dave Ramsey’s new mansion just south of Nashville. In case you missed it, his home spans more than 13k square feet (including a nearly 1500 sq ft garage!) and it has a total assessed value of just shy of $5M.

A common theme in the comments on that post was “Wow, I wonder how much it costs to maintain a place like that!” Well, I’m pleased to say that I can now provide a bit of insight into that question…

The good folks who published the original account have done a bit of digging*, and have learned that Dave’s electric bill has averaged $1285/month over the past year. Wow. Nearly $1300 on electricity alone. Then again, on a 13k sq ft house, maybe that’s a bargain?

What do you think? Surprised by how much it costs to power a home of this magnitude? Or did you think it would cost more?

Note: I was surprised to learn that this information is freely available. They simply called the local electrical utility and asked.

21 Responses to “Dave Ramsey’s Electric Bill”

  1. Anonymous

    His plan is excellent in comparison to no plan at all. It is designed to appeal to the masses, but is not personalized for individual circumstances.

  2. Anonymous

    My husband and I have been very careful with our electricity usage to keep costs down. However, we were so good that we have been penalized for it. It turns out, the contracts for most of the electricity providers around here require that users use a minimum amount or else they pay a penalty.

  3. Anonymous

    I bought a house built in 1975. It is 1,200 sq-ft with a non-heated/cooled 2 car gar.

    I added 1-foot of blown insulation to the attic. All new windows to the max rating of energy star.

    A new a/c and heat system. The house is a slab with brick.

    I keep the thermostat at 71 F all summer in NW Arkansas and my biggest bill was $116, but we had record heat for the month.

    The rule is if you are at 7-cents per sq-ft or less, then you are doing a great job. 7-10-cents you need some work. above 10 cents per sq-ft you need major work.

    Use you biggest electric bill in the summer.

    116/1200=9.6 cents per sq-ft.

    Also include you gas bill if you heat water- only include the part of the gas bill for actual energy charges, not the meter monthly charge.

    If your water is heated by electric- then you don’t have to add anything.

    The extra insulation in the attic made the biggest change of all.

  4. Anonymous

    Yes, he makes a lot of money, and yes he’s probably earned it.
    Does he really need a house that big? Does one family need to WASTE that much electricity?
    It seems he is quick to have others live on rice and beans while he dines on steak. (Animal Farm?)

    Think of all the good he could do with that wasted money, and still live in a very nice home.

    One reason I don’t listen to the guy – he lives in a totally different world than he preaches about.

    No, the money he gets isn’t from god – it’s printed by man, and you pay for it through advertising costs.

    I wish this article was on how frugal he was, like using solar power, or using his property to help others. This is not a frugal story by any means.

  5. Anonymous

    Why don’t we talk about how generous of a guy Dave is? I’ve heard he and his wife support many worthwhile causes and organizations with the money that’s been entrusted to them by God. MANY, many people I know regard him as the most generous person they’ve ever met.

    In addition, I have a friend that works for him that told me he bought EVERY member of his team an iPad for Christmas (in addition to a small heap of cash and gift cards for each person). His instructions for the cash: Find people to bless with it. This hardly sounds like a man who keeps it all to himself.

    Don’t judge. Just live peacefully, and find ways of blessing others … regardless of how much money you make.

  6. Anonymous

    Why the obsession with the rich and famous? This is a website dedicated to frugality and simple living. I’m tired of watching people live with extreme excess, then gain noteriety for it. Too many people emulate this crap when they can barely manage a checkbook, let alone deal with large recurring expenses. Move on, please!

  7. Anonymous

    Well, it’s good that Dave is enjoying his success, however…I would recommend that he take some of his fantastic wealth and invest in solar panels for that mansion and maybe geothermal for heating and cooling — not to mention his office and HQ building. I would do it if I could afford it and if my current HOA would allow it. Why not be even more environmentally responsible since you can afford it. It would eventually pay for itself — especially at that average monthly cost. Just my 2 cents.

  8. Anonymous

    I like Dave and subscribe to most of what he says. He says that one needs to be a good steward of his money and suggests that it doesn’t belong to us but to God (and we are merely stewards of it). I will not deny one to enjoy the fruits of his success, but it seems that the size of his home and what it consumes is excessive. How much is enough? It seems ostentatious to live in such a grandiose manner when there are people who are homeless and hungry. If it is God’s money, what would he have you do with it? Buy more cars and a bigger house and more toys ? I wonder.

  9. Anonymous

    I just calculated that his per square foot rate is less that ours by 10%. We are empty nesters and both work with no one in the house most of the time. (1,500 sq ft BTW) We also keep the thermo at 65 deg during winter. Maybe we should move from Pennsylvania to Nashville.

  10. Anonymous

    Our local electric company disclosed that Bill Cosby is the largest residential user of electricity in Western MA. I thought it was pretty lame that this is not private and protected information.

    It does get expensive when you have hot tubs and heated pools and stuff.

    The bill doesn’t seem that out of whack though. His house is an order of magnitude larger than mine and so is his bill.

  11. Anonymous

    I don’t really see why this is much of our concern. If Dave Ramsey can afford to have this house after becoming such a success, then why not? I’m sure they keep it within their budget, and I doubt that Dave is going to let his electric bill force him back into bankruptcy.

  12. Wojo: Yeah, seems weird, but… I seem to recall being able to get average usage numbers when we were shopping for a home, so maybe utilities do routinely divulge this sort of thing – at least in terms of annual averages.

  13. Anonymous

    I used to pay almost $200/month for a 600-sf condo in Florida, but the A/C use was crazy. So I dunno–it sounds about right. Most houses in my area are 1,500-2,000 sf and pay about $300 a month from what I can tell.

    I’m also very surprised that this is “supposedly” public information (that, or someone at the power company made a boo-boo).

  14. Anonymous

    Seems high to me…I live in a hotter place, with some of the highest electricity rates in the country. My 6k sq ft home’s electricity bills average $250/month. Just my 2 cents.

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