Dave Ramsey - Any Thoughts?

[Ima saver]

Re: Dave Ramsey - Any Thoughts?

I really like Mary Hunt at Debt proof living and not much is said about her. But that said, she does not have much investing advice.

[Writer@Large]

Re: Dave Ramsey - Any Thoughts?

You got it right. If we had kept our debt to income ratios as low as Dave suggests, we would have never been able to purchase our home and we would be have missed out on the benefits of home ownership

Well, that's why you don't follow Ramsey (or anyone) religiously. My mortgage is currently about 38% of my monthly income, but the TMM still works .

--W@L

[Ima saver]

Re: Dave Ramsey - Any Thoughts?

You have to do what is right for you and thank goodness, you do learn from your mistakes.

Re: Dave Ramsey - Any Thoughts?

Maybe it's best if we see all of Dave's (and any other gurus) advice as guidelines so that we maintain an open mind to other opportunities, good advice, sound principles from other sources.

~~~~~~~~~~~~
That is the best advice!
There is no one size fits all for everyones situation.

[wwjdmsl]

Re: Dave Ramsey - Any Thoughts?

You have to do what is right for you and thank goodness, you do learn from your mistakes.

Man...you got that right....learning from them and ensuring what we learn keeps us from making similar mistakes is key !

[simpleselu]

Re: Dave Ramsey - Any Thoughts?

I am a DR fan. I just graduated in June (MSW) and I have 73K in SL debt + 1K in CC debt. I am slowly paying it off using the baby steps. I have my baby ER fund and I am now doing a written budget with DH.

I don't love or agree with everything DR says (for one I'm a lapsed Catholic with radical left leanings, lol) but the program is pretty solid and until I am more financially saavy, I think it's the best way to go for DH and me.

[Broken Arrow]

Re: Dave Ramsey - Any Thoughts?

I don't agree with everything DR says either, but I do find it quite amusing that I still ended up doing pretty much what he has suggested. To be exact, I did what I felt was best, but it just happens to mirror closely to what some guy name Dave Ramsey had been evangelizing all along.

The only glaring exception is the use of credit cards.

[Diolla]

Re: Dave Ramsey - Any Thoughts?

Okay, I waded through all these posts and didn't see it so I will add it, the CORE of Ramsey's approach is not getting debt free it is budgeting. Controlling your money. I do not follow his program to a tee (although I coordinated an FPU Class) but I do follow his budgeting advice. I have always had a budget with a planned and spent column. Problem is the spent was usually bigger than the planned. Tracking where my money went didn't help me gain control of it. Planning ahead and (for a long while) using the envelope system helped me conquer the overspending habit. Now I have amounts available to spend/save and when I am out of money I quit spending and except for a real emergency my savings stay saved.

Do a zero-based budget and plan ahead, instead of looking behind, has been the key for me.

[MarianneJ]

Re: Dave Ramsey - Any Thoughts?

I really like Mary Hunt at Debt proof living and not much is said about her. But that said, she does not have much investing advice.

Ima, I'm a huge fan of Mary Hunt also. I've been a member of her site for over 4 years - joined right after I first read her "Debt-Proof Living" book and never turned back. I think her plan is a little more stable than Dave's in that she recommends a much bigger emergency fund before putting extra toward debt - it keeps you away from using the CCs that generally get people in trouble in the first place. That said she and Dave's philosophies/plans seem very similar.

The truth is, I read anything I can get my hands on pertaining to personal finance (David Bach, Mary, Dave, Suze Orman, etc) and take whatever I can use and leave the rest (although sometimes I go back and put some of the stuff I didn't think I needed to work after the fact). Mary's was the first book that had a concrete plan to follow (pretty simple which was a big perk) that made perfect sense to me so I feel loyal to her.

Also, it is not just a "get out of debt" plan. Hers is a solid financial plan for anyone, at any stage of life, which I like very much.

[greedy4chips]

Re: Dave Ramsey - Any Thoughts?

Dave Ramsey's course should be taught in every high school in the country! I am not a religious person and I still appreciate the way he brings in religion to back his method and reasoning. It is just common sense and not really a religious concept anyhow.

I love how no matter what income the callers have they all cannot control their spending. Money doesn't make you smart or mean you know how to handle it better. All it offers you is the choice between the BMW and the Pinto, the end result is the same, you are upside down and cannot afford it.

Dave's snowball approach is simple, any success is a positive! Remember his callers are like alcoholics who have hit rock bottom and to turn their life around they must take 1 hour, 1 day, and 1 week at a time...babysteps!

Your focus is to change the habits that created the debt and your responsibility to pay them off. We don't get a free pass for our mistakes and you certainly cannot learn by taking the easy way out.

I don't care if you use credit cards or the envelope system if you cannot control your spending you will be in debt. Yes the envelope system teaches you to set aside your budgeted amount before you can spend it elsewhere, but the undisciplined spender will borrow from Peter to pay Paul and eventually the merry-go-round stops or you fall off!

I tell everyone I know to listen for 3 hrs a day for 5 days and if he doesn't get you hooked and change your spending habits then no one will.

[Broken Arrow]

Re: Dave Ramsey - Any Thoughts?

Dave Ramsey is a rather touchy subject here. Not because we have anything against Dave Ramsey. At least I don't. But rather... not everyone's methods are always the best for every situation.

I think I'm going to just leave it at that, because... I don't feel like getting involved right now.

[pearlieq]

Re: Dave Ramsey - Any Thoughts?

The truth is, I read anything I can get my hands on pertaining to personal finance (David Bach, Mary, Dave, Suze Orman, etc) and take whatever I can use and leave the rest (although sometimes I go back and put some of the stuff I didn't think I needed to work after the fact).

I think this is the healthiest and most productive approach.

To be honest, I've never really drunk the DR Kool-aid. I'm willing to concede he has some decent ideas, some I've even incorporated into my life, but in general his methods and philosophies really don't appeal to me.

But if it works for someone else, more power to them! The only thing that concerns me is how devoted some people become. Sometimes I think people close themselves off from other sound financial device because they believe DR is the be all and end all of financial thought.

Also, I do take exception to the cost of the books, workbooks, etc. A quick check of his website shows a cost of $289 of an at home FPU kit, $50 for a "starter kit", and my personal favorite, $19.95 for the Deluxe Envelope System Budgeting Tool (NEW Designer Envelope Systems!). I realize the man needs to make a living, but I think we've turned a corner somewhere!

[Ima saver]

Re: Dave Ramsey - Any Thoughts?

Yes, I agree with maryann's approach. I read them all and take advice from most!

[greedy4chips]

Re: Dave Ramsey - Any Thoughts?

Also, I do take exception to the cost of the books, workbooks, etc. A quick check of his website shows a cost of $289 of an at home FPU kit, $50 for a "starter kit", and my personal favorite, $19.95 for the Deluxe Envelope System Budgeting Tool (NEW Designer Envelope Systems!). I realize the man needs to make a living, but I think we've turned a corner somewhere!

I also believe he has crossed the line of his costs for materials. I can't fault him for making money from advertisements on his radio show and websites, but if you just listen to his show for a week or two you should be able to devise your own plan based on his ideas.

Radio is free and so are forums like this. Ask for help and you will get tons of opinions. Find the one that suits your needs and comfort levels and put your plan into action.

He walks you through his 10 steps to financial freedom at least once per day at least.

I see nothing of value to purchase from him.

[naturalwoman]

Re: Dave Ramsey - Any Thoughts?

you are right. you can learn a lot just listening to him. i however did purchase 2books, 1 cd and 3 dvd for 49$ from his website...i wanted to read the books and i wanted the software. however, when i was done with them, i put them on ebay. got 78$ for all items. go me. go me.