Comments on: Dave Ramsey Falters in a Crummy Economy

By: Going Into Debt to Have Kids - SavingAdvice.com Blog

Going Into Debt to Have Kids - SavingAdvice.com Blog — Tue, 20 Oct 2009 07:02:58 +0000

[...] imagine my surprise the other day when, while listening to Dave Ramsey’s program, I heard him tell a caller that it would be okay to go into debt in order to have kids. The caller [...]

By: Emilie

Emilie — Sat, 10 Oct 2009 01:01:46 +0000

I have always approched dept repaiment aggressively withought savings and obviously it as backfired in my face when we started our family. But now I started saving for everyting I buy and also putting money in my saving account every month. I don’t even have a month expense saved but I make it work somehow. I do have a goal to save up 3 months expense in the next 2 years. Thanks for the article.

By: Jeff

Jeff — Mon, 17 Aug 2009 22:55:01 +0000

Oh, and an earlier coment was absolutely correct: Dave has way too much faith in a 12% return on investment with only little risk. This is unrealistically optimistic.

By: Jeff

Jeff — Mon, 17 Aug 2009 22:44:56 +0000

Ramsey is on our local radio station. 90% of his financial advice is just common sense. But when someone calls in who has financial problems because of illness or death in the family, or because of the loss of a middle class job, he is pretty clueless and not really helpful. I would say that I live what he preaches for the most part.I just don’t understand why people pay him good money to learn that acting responsibly is good. He is a great marketer. He ties Chrisitanity into his message, and from what I can tell is heavily marketed among church groups. Well, good for him, I guess, but there is no need to pay someone to have them tell you that you should live within your means.

By: IndianaTeacher

IndianaTeacher — Sun, 16 Aug 2009 05:37:43 +0000

I have watched Ramsey’s show for a while and came to these conclusions:
1. People with a little sophistication and self-discipline don’t get into massive debt; and even if they do, they can figure out how to pay it off most efficiently without help from Dave Ramsey or anyone else.
2. Steps 1-3 show are very logical; but then, there is really only one one to pay off debt: by PAYING IT OFF. However, that requires the kind of self-discipline that many people just don’t have, or don’t think they have. Ramsey provides the kind of enthusiastic cheer leading and support that many people need if they are hopelessly mired in debt. He acknowledges their struggle, gives them a “community,” and even provides a celebration if they succeed (debt-free scream). That is Dave Ramsey’s real strength. His compassion with people (to whom he often gives his books for free) is quite apparent, and I believe he does change lives and inspires people. I was once inspired by the book “Your Money or Your Life” (by Robin and Dominguez), but I have never seen a champion of debt-free living like Dave Ramsey. In that respect he’s my kindred spirit, and I am thrilled that he is making this concept cool.
3. Steps 4-6 make sense as well, but the order is not that important. I, for ex., paid off my mortgage before really turbocharging my retirement savings (while my friends lost their money in tech stocks). I also think that saving 15% is not enough.
4. Step 7 (’get wealthy and give”) is more an afterthought than any real “step,” and Ramsey’s investment advice is generic (”a good growth-stock mutual fund”) and flawed. Assuming the stock market returns 12% on average, he repeatedly tells people to take out 8% of their retirement funds annually. That is TWICE as much as anyone else recommends. Anyone following that “advice,” especially in this market, would definitely outlive his money. People seeking investment advice should read Money Magazine or Kiplinger.
5. Ramsey’s take on credit cards is illogical. Calling everyone who’s using a credit card “stupid,” is stupid. Sure, people with $30k cc debt need to cut up their cards, but people who pay off the balance every month can obviously handle them. I understand that it is possible to get by without credit and a credit history, but why make life more difficult than it has to be?!

In conclusion, Dave Ramsey is a really decent guy who is helping many people who otherwise would not find their way out of the mess they’re in. For those of us already debt-free, he provides a great service to the indebted masses or perhaps just good entertainment. In any case, he helps changing the attitude toward debt in this country, and that is definitely worth something!

By: lori

lori — Sun, 19 Jul 2009 20:51:19 +0000

After listening to the “Dave Ramsey Show” I can’t believe that there are a mass of people that are financially disable. Using Jesus to sell book? WOW, that is not good.

By: D fine

D fine — Fri, 19 Jun 2009 05:26:56 +0000

The 1,000 is for for small emergencies. Besides, 1,000 is far better than the zero you have now. You will never get a $15-20k fund with the debt. If you keep investing and paying debt you will never gain anything. The interest on those cars and credit cards is costing more than you investments and those credit cards will be there for 40 years. Bad economy? Well if you were out of debt you would not notice. So therefore it is more important to be debt free. You won’t have extra money with debt, Get rid of it, then invest and have money for fun as well.
DR uaed debt to make millions. He learned debt is stupid. He went broke. The he did his system, he is now a Muilti Millionaire again with no debt and lots of property and cash. So the question is…You have debt,,,,Hows your quest to become millionaire going using your method?

I have used your idea’s, it does not work. It should, except there is a flaw in your thinking and mine at the time.

Focus! Your method has no focus, it is looking at investing, pay debt but not getting rid of it, no real emergency funs etc….your doomed.

Focus on the problem to your investments…that is the debt. Focus on getting rid of the debt then focus on investments and life.

By: A Life Without Debt: You Can Be Debt Free and Still Use Credit Cards - SavingAdvice.com Blog

Tue, 02 Jun 2009 07:02:14 +0000

[...] financial experts (most notably Dave Ramsey) preach that, if you want to become and remain debt free, you must not use credit cards. Ever. [...]

By: Tabitha

Tabitha — Sat, 24 Jan 2009 16:41:53 +0000

Hey, DR didn’t know that this would happen, so it’s not really fair to go trashing his work. And I don’t understand why you think repaying debts wouldn’t be the best thing to do in this economy. I’ve taken an economics class in college, and that’s how we got into this mess in the first place:people not paying their debt or only paying the minimum. If everyone paid off their debt, then more money would be freed up to invest in the economy, therefore the economy would begin looking up.
Seriously, do your research before you give “advice”.

By: wealthguy

wealthguy — Fri, 16 Jan 2009 19:19:24 +0000

Interesting how many people defend DR as if he is some guru. For the record DR’s plan is just fine for those looking to get out of debt. But it isn’t a plan to build wealth. I know he suggests investing in real estate, but he also thinks one should do it with no debt.

Here is a fact: real wealth can’t be created without risk.

In my professional life I have seen literally thousands of peoples’ financials. And you learn something from all data. Yes, you are better off not spending more than you bring in the door (duh), but amount of debt has nothing to do with net worth. Some of the most indebted people I know, have the largest net worth.

So, if risk scares you, listen to DR and you will be better off. But don’t confuse building wealth with debt reduction.

Wonder what all those folks who thought investing in mutual funds was not risky and a way to a comfortable retirement think now?

Peace out,