Dave Ramsey

[TheStreetCeo]

I just read the Total Money Makeover. As he stated, the info isn't new, just packaged better. I agree, he did a fine job explaining the ins and outs of budgeting in terms people can understand. Does anyone who has experience with his plan have any thoughts on it? Does anyone follow someone else and think Ramsey has it all wrong?

[wincrasher]

Dave has some good advice in there for the majority of people.

The only thing I disagree with him is his total aversion to debt and risk. In his mind, you'd never start a business unless you had 100% of the money upfront to do it and without debt.

To get ahead in this life, you have to figure out how to balance risk with reward, because without risk, there is no reward. Dave didn't get his fortune by socking money away in CD's.

[Broken Arrow]

If you are neck deep in debt, and you've just started out in your financial recovery, his advice is simple and high ly effective.

However, once you've gotten yourself out of serious debt, and as you grow in experience and confidence, his over-simplicity becomes more of a hindrance than help.

Bottom line, Dave Ramsey is basic reading for people who are trying to get out of debt. After that, I would move on to a different author.

[jpg7n16]

Originally Posted by Broken Arrow

If you are neck deep in debt, and you've just started out in your financial recovery, his advice is simple and high ly effective.

However, once you've gotten yourself out of serious debt, and as you grow in experience and confidence, his over-simplicity becomes more of a hindrance than help.

Bottom line, Dave Ramsey is basic reading for people who are trying to get out of debt. After that, I would move on to a different author.

Agreed completely. Except I just change one thing.

Bottom line, Dave Ramsey is essential reading for people who are trying to get out of debt.

[ActYourWage]

Dave Ramsey's advice is spot on. I know a lot of people are turned off by his Christian references, but that is what I like about his show.

[TreadingWater]

I disagree with the notion of all debt being bad debt and simply cutting up all your credit cards. Other than that, I think he makes some very good points.

[jefffou]

Originally Posted by Broken Arrow

If you are neck deep in debt, and you've just started out in your financial recovery, his advice is simple and high ly effective.

However, once you've gotten yourself out of serious debt, and as you grow in experience and confidence, his over-simplicity becomes more of a hindrance than help.

Bottom line, Dave Ramsey is basic reading for people who are trying to get out of debt. After that, I would move on to a different author.

Well said.

[elessar78]

Originally Posted by TreadingWater

I disagree with the notion of all debt being bad debt and simply cutting up all your credit cards. Other than that, I think he makes some very good points.

One really has to consider DR's audience, as previously mentioned, it's people in debt—particularly lots of debt. I think sometimes the process of getting heavily in debt is thinking that you are making a GOOD financial decision going into debt for something. He's trying to change behavior radically, and to do that something must be demonized. Debt is the enemy. Maybe to him, debt is the devil.

I think his advice is sound; Zero debt, emergency fund, fund retirement over college, make your money grow, give it away.

Gotta cut through the packaging to get through to what really matters. Once you have his system or your own, then his advice seems rather basic. But again, it's what his audience needs—it's what most people need. I think a lot of people get through a good portion of life without a lesson in personal finance and TMMO is a great primer.

[maat55]

His advice is excellent for the vast majority of americans. I listened to him for years on the radio and it changed my financial future.

I like many, use a credit card for rewards while paying in full, but I have considered dropping it in protest of the banks.

I also think that his advice is sound for the economy. It would eliminate most bankruptcies, transfer of wealth from poor to rich and enable a more stable economy.

[Angio333]

Originally Posted by ActYourWage

Dave Ramsey's advice is spot on. I know a lot of people are turned off by his Christian references, but that is what I like about his show.

I love Dave Ramsey and his method. FPU should be in all of our high schools.

I also love his Christian references. I would love to see him slip in the Gospel every now and then.

[Debt Vigilante]

Like most everyone else has said, as well as the observation you made from the book, his plan is common sense. Problem is, the majority of people in our country don't seem to have common sense. The plan is book solid and will work fast if followed strictly, but principles in his book are not new.

He seems to have a more non-sense down to earth approach that can relate to people. Seems to have his heart in the right place and knows how to make a buck at the same time.

[EconoMutt]

I think he has good general advice.

I'm in disagreement with his priority to pay down debt.

I think in this economy, you are better off having a 6 month
emergency fund in place before paying down your credit cards.

I do agree that paying down the cards should be a priority after that.

[TheStreetCeo]

Originally Posted by Debt Vigilante

He seems to have a more non-sense down to earth approach that can relate to people. Seems to have his heart in the right place and knows how to make a buck at the same time.

I couldn't agree more. He has mastered the ability to make a buck AND help people at the same time.

[Debt Vigilante]

Originally Posted by TheStreetCeo

I couldn't agree more. He has mastered the ability to make a buck AND help people at the same time.

IMO that is true success. Making money is great, but life is all about helping people. If you can do both, you have a blessed life.

[Snodog]

Some of Ramsey's advice is excellent and some is bad.

Overall though I think he helps more people than he hurts so he's a net postive.

I think of him more as a motivational guy than a fincancial expert.

[wincrasher]

Another thing to think about.

People like to flock to gurus. Generally they tell you what you already know. But somehow, when it comes from one of these so called experts, people will listen.

Funny too, most of these folks have basically destroyed their financial lives several times, been thru bankruptcies or whatever, and came back - generally made fortunes being gurus!

[Debt Vigilante]

Originally Posted by wincrasher

Another thing to think about.

People like to flock to gurus. Generally they tell you what you already know. But somehow, when it comes from one of these so called experts, people will listen.

Funny too, most of these folks have basically destroyed their financial lives several times, been thru bankruptcies or whatever, and came back - generally made fortunes being gurus!

Ha... So true.

There is nothing that sets people like Dave Ramsey and Suze Orman apart from MANY other people out there. Most of what they say is common sense that most people with a somewhat grasp on finances already practice.

When you break it down, the gospel they all preach is spend less than you earn. Well no crap! The only thing that makes them different is that they write books that publishing companies think are worth publishing.

[ActYourWage]

Originally Posted by wincrasher

Another thing to think about.

People like to flock to gurus. Generally they tell you what you already know. But somehow, when it comes from one of these so called experts, people will listen.

Funny too, most of these folks have basically destroyed their financial lives several times, been thru bankruptcies or whatever, and came back - generally made fortunes being gurus!

That is true. However, when they say it, they seem to have more credibility. It is kind of like seeking advice to get fit and taking advice from an overweight person. Not to say the over weight person is not correct in their advice, but someone that was once overweight and now fit, people tend to listen to them more because they have "been there done that".

[G-Force]

Dave also advocates having 100% stock portfolios, which is a very bad idea IMO.

[bjl584]

I have read his books and find his advise to be generally good. It's a good place to start at least. He keeps it basic which is good for people just starting out, but as stated earlier, if you are looking for more advanced financial knowledge, look for a different author.