Beaver
Member
Are there any Dave Ramsey fans out there? My wife and I are doing the steps, ouch. It sure cuts into the Smith budget, but in the long run it will be the best money I never spent. Comments/Testimonials/Insults.
Dave Ramsey
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parallel
Member
I was already well on my way to being debt free when I first heard Dave on the radio during a business trip to Houston in the summer of 2001. However, I did learn a few things and he did help to keep me motivated (I discovered that I could stream his program on the internet). Dave's approach of including human nature into his advise is one of the reasons that his program works. As I'm sure you have discovered... one can't do Dave's program half way... it will only make things worse. However, if you do it right, it works like a charm.
I do find myself wondering what you mean about the money spent. I never spent a dime on Dave's program (even got the book from a friend who didn't really want to be debt free).
I do find myself wondering what you mean about the money spent. I never spent a dime on Dave's program (even got the book from a friend who didn't really want to be debt free).
tyusclan
Member
I don't always agree with his investment advice, but if you follow his steps he'll get you out of debt.
Ramsey teaches stuff your parents should have taught. What kind of doofus uses a credit card to finance everyday expenses? Do they have no concept of interest charges?
And as far as being out of debt, that's not necessarily good advice in these inflationary time. A smart guy would sign up for all the real estate he could get on credit as long as he pays firesale prices for the property. Low down payment and use other peoples money. Inflation will push the rent up and you'll pay back the loan with cheap dollars.
And as far as being out of debt, that's not necessarily good advice in these inflationary time. A smart guy would sign up for all the real estate he could get on credit as long as he pays firesale prices for the property. Low down payment and use other peoples money. Inflation will push the rent up and you'll pay back the loan with cheap dollars.
gregintenn
Member
"I'm better than I deserve!"
HOUSTON RICK
Member
My wife has followed a number of financial messiahs and used each one to justify a higher stand of living and right to buy more crap, I see the Ramsey book covers and TV programs, but unless his messages is never wear the same dress twice it won't sink in. Good thing that I saved and invested when I was single!
Jerry in SC
Member
I have no debt and intend to remain debt free. Sure makes life simpler. Inflation is running at less than one half of one percent.
tyusclan
Member
But then what happens when the real estate is suddenly going down? That's exactly why we had the bank bailouts. The house flippers got caught with their pants down.
I'd like to see you actually doing this. Real estate is approaching "equilibrium" and will continue to drop in value. The principle you espouse became obsolete shortly after it was introduced (back in the 90s).
If you were to be able to fund a real estate purchase with little money down (not possible in today's banking climate), and if the "value" continued to decline (in economics this is known as "equilibrium"), your only alternative would be to walk away from the loan. Not many states allow you to do this. And in no circumstance can you do so without destroying your credit.
feralmerril
Absent Comrade
The old rules have changed! People did get rich for a few decades flipping houses that way. (not me). Since things tanked nothing seems to make much sense. I was lucky selling my house in california 4 years ago after retireing here to utah. I see now that I would be lucky to sell it for half! On the other hand we bought two here and rent one out. However, they have also dropped too, but not as much as in california.
I was in debt all my working life. (House and or vehicles, never C Cards) When I retired I took a chunk of 401K, paid off and sold out and rebought. It is a good feeling! We live okay, but with retirements spend every dime of income but I am not saveing a dime of it either! We are happy to just zero out and stay away from whats left of the IRAs. In this big bust we lost close to 40% of retirement saveings, so I have backed off my other old life as a gambler.
If I was starting out young again I would live in a abanded car before going in debt. My folks and most other old aunts, uncles etc, claim they never bought anything on credit or even had a credit cards. Most of them didnt make or spend much, but all seemed to live well.
I was in debt all my working life. (House and or vehicles, never C Cards) When I retired I took a chunk of 401K, paid off and sold out and rebought. It is a good feeling! We live okay, but with retirements spend every dime of income but I am not saveing a dime of it either! We are happy to just zero out and stay away from whats left of the IRAs. In this big bust we lost close to 40% of retirement saveings, so I have backed off my other old life as a gambler.
If I was starting out young again I would live in a abanded car before going in debt. My folks and most other old aunts, uncles etc, claim they never bought anything on credit or even had a credit cards. Most of them didnt make or spend much, but all seemed to live well.
Do not know what a "Doofus" is. That being said, I charge EVERYTHING to AMEX and PAY it off once a month. Another form of OPM (Other peoples money), have found that if you charge about the 22nd of each month and it does not show up until the month after. So you have about 40 days of FREE credit. NO, I do not pay interest, do not pay credit charges, have execllent credit, etc. Just my way of using OPM.
As to real estate, say the crash coming, got out in Sept of '04, about 6 to 8 months before thecrash really got underway. People said we were crazy to give up a building throwing off a high six figure income...BUT...alas...who was right and who was not?
Now invest only in tax liens and tax certificates, make a comfortable 15 to 18 percent on my $$$ each year. N0 bad checks, no stopped up toilets, no dead beat tenants, not drop in value, no maintenance, no upkeep, just a good governement check each month. Been at it for about 15 years.
And; NO it is not like the late night guru's say. It can be very costly if you do not know what you are doing.
Keep your powder dry. You may need it SOON!
feralmerril
Absent Comrade
Gee, Bill H, do you want to be my money manager? I sure could have used you!
esterroid
Member
Airpark,
Good credit card advice. Any Alaskan worth his salt has an Alaskan Airlines card. I run everything I can through the card. Try to have things hit right after the statement closes so I get 40 days use of OPM.
Not only do you get what amounts to an interest free loan, but the airline miles are quite valuable, especially for last minute travel.
The trick is, and it's a tough one, the balance has to be paid off every month no matter how painful.
Frankly, I use the card as a checking account, one with much convenience and many benefits.
Not for everyone, however
Good credit card advice. Any Alaskan worth his salt has an Alaskan Airlines card. I run everything I can through the card. Try to have things hit right after the statement closes so I get 40 days use of OPM.
Not only do you get what amounts to an interest free loan, but the airline miles are quite valuable, especially for last minute travel.
The trick is, and it's a tough one, the balance has to be paid off every month no matter how painful.
Frankly, I use the card as a checking account, one with much convenience and many benefits.
Not for everyone, however
No, Feralmeril, but if I can help you I will be glad to do so. I am now 77 and a cancer survivor and every day that I spend is a D@mn GOOD ONE!
Send me a PM and I will respond with some info on taxliens if that is of interest to you.
Good Luck,
parallel
Member
I think that the name of Dave Ramsey's financial advise is lost on many. It is called "Financial PEACE" not Financial GAMBLING. Some don't mind and indeed like the roller coaster of high returns and then the inevitable high losses and the stress that that entails. I, and millions of other people, prefer to live our lives secure in the knowledge that when recessions come we can simply go on living as we always have becuase we have been living well within our means all along.
Using other peoples money is fine, so long as one has the discipline to stay on budget while doing so. It is far too easy to spend more than you would otherwise by paying with a credit card versus taking that cash out of your wallet. I'm sure that there are people who can buy only what they have budgeted to buy even while using a credit card... but I have yet to meet them. So, even if one pays the balance of the credit card bill before finance charges are applied... did you really save anything if you bought things that weren't in the budget?
Using other peoples money is fine, so long as one has the discipline to stay on budget while doing so. It is far too easy to spend more than you would otherwise by paying with a credit card versus taking that cash out of your wallet. I'm sure that there are people who can buy only what they have budgeted to buy even while using a credit card... but I have yet to meet them. So, even if one pays the balance of the credit card bill before finance charges are applied... did you really save anything if you bought things that weren't in the budget?
mtb1bkr
US Veteran
I guess I'm a doofus.
As for Dave Ramsey, I like listening to him when I can. It's not really that I'm using his advice, I just like to hear his responses to folks. He does teach a lot of common sense that folks should have been taught growing up or had the smarts to figure out on their own, like I did.
Bill
parallel
Member
I think that he was referring to those who do that and do not pay off the balances each month... thus the reference to interest charges .Originally posted by mtb1bkr:
I guess I'm a doofus.I've been using my one credit card for nearly 100% of my purchases for over 13 years now, same card same company. I have never paid a nickel in interest or fees and have used the accumulated points to by 1000s of dollars worth of stuff. I even cashed in some points for dollars before to help with a gun purchase. My credit score runs from 750 - 800 and I keep money in the bank for when situations arise. Maybe next time, you should engage your brain before you let your mouth get away from you.
As for Dave Ramsey, I like listening to him when I can. It's not really that I'm using his advice, I just like to hear his responses to folks. He does teach a lot of common sense that folks should have been taught growing up or had the smarts to figure out on their own, like I did.
Bill
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