Dave Ramsey - Any Thoughts?

[wwjdmsl]

Re: Dave Ramsey - Any Thoughts?

If I had a coach like DR when I was in my early adult years, things would have gone much differenly. I am a Christian so I do appreciate DR's views of managing finances based on Biblical teachings. DR readily states on his program that he is only helping or coaching those of us that have needed it to change the way we "behave" with our finances. As I can see, there are are so many folks here that "get it" and now live a life of responsible financial management that gives their familes peace and security and freedom. You all should be proud of (as Dave says) "Changing your family tree" in this area of finances

[naturalwoman]

Re: Dave Ramsey - Any Thoughts?

read thebook and it's like the bible. full of truth. if you follow it, it will lead you out of debt. once you learn to stop borrowing, you really do free up your money and you're able to say. i guess it's about putting things in the proper order. dave wants you to have your toys, but not before you can afford them. sometimes we think we can afford things because we can make the payments, but this is not true. if you think that way you will always be paying someone else other than yourself. great book, go out and get it. i just loaned mine to a friend who keeps bouncing checks, losing 300-400 in bounced check fees!!

[slimcustomer]

Re: Dave Ramsey - Any Thoughts?

read thebook and it's like the bible. full of truth. if you follow it, it will lead you out of debt.

Please don't compare Dave's book with the bible.

Following Dave's advice may help you get out of debt, but as discussed elsewhere on this thread it also may be hazardous to your wealth.

[naturalwoman]

Re: Dave Ramsey - Any Thoughts?

well it can't be compared to the bible, nothing can...but that's my opinion.

[puck36]

Re: Dave Ramsey - Any Thoughts?

read the book and it's like the bible. full of truth. if you follow it, it will lead you out of debt. once you learn to stop borrowing, you really do free up your money and you're able to say. i guess it's about putting things in the proper order. Dave wants you to have your toys, but not before you can afford them. sometimes we think we can afford things because we can make the payments, but this is not true. if you think that way you will always be paying someone else other than yourself. great book, go out and get it. i just loaned mine to a friend who keeps bouncing checks, losing 300-400 in bounced check fees!!

I would not compare it to "the bible" but I would say its the bible far as personal finance. I read it 2 years ago and now I'm 1 month way from being debt free and I have lost some weight. If you just follow what Dave says anyone can be debt free and while doing some things. During these last 2 years I have saved money for different trips or baseball games. I take a trip out to Deadwood, SD every year and go to Major League Baseball games about 3-6 times a year. So what I'm saying is that anyone that wants to be debt free you can and still do what you want. I know that I could of been out of debt sooner but thats means not doing anything. Believe me i have tried doing nothing for 2 weeks after I got laid off 3 years ago and it drove me crazy.

[terry1156]

Re: Dave Ramsey - Any Thoughts?

My 2 cents - don't restrict yourself to a single guru. Part of personal finance is learning and I've yet to find one person that has all the answers - be willing to read as much as you can and take the best from everyone. In the end you are responsible for your finances.

[debtfreesteve]

Re: Dave Ramsey - Any Thoughts?

Following Dave's advice may help you get out of debt, but as discussed elsewhere on this thread it also may be hazardous to your wealth.

I'm assuming you are talking about the simple advice, beyond his debt portions... Even if I follow just what he proposes, 'we' will become very a wealthy couple...

Before I found his book man, we were living paycheck to paycheck, on an $7,000 per month take home pay (yeah, I know, idiots). Now, beyond mortgage and 'bills', we'll have around $4000 each month, to build wealth, whether it's pay down the house, varied investments (lots of learning to do here), and we can GIVE Like Crazy, oh, and yeah, we can have fun with it (I see a nice big expensive flat screen w/ the new PS3 in my future!)

Before picking up the total money makeover, I had read and watched Suze Orman, listened to Clarrrrk Howwwward, read personal finance for dummies, and at least 5 other books on personal finance, and most of them, managed the debts, or 1 I remember encouraged debt... point is, if you need motivation to clear the debts, Dave's the way to go...

I mean think about it, we read a $19.95 book, listened to a radio show coming home from work each day, and we followed '2' steps thus far, if it's helped changed our world this much thus far, why not check out the rest of the steps? So far so good, right.. I guess we need to keep our options open, however thus far the advice has been golden.

[slimcustomer]

Re: Dave Ramsey - Any Thoughts?

Dave's advice would have left me hundreds of thousands of dollars poorer had I taken it. I never would have been able to afford a home where I live had I taken his advice about mortgages. Since so many people's largest asset is their home, I believe that if people had followed Dave's advice in this area over the last decade, he would have done far more harm than good.

[Writer@Large]

Re: Dave Ramsey - Any Thoughts?

Please don't compare Dave's book with the bible.

I like Ramsey and his "Total Money Makeover." Without him, I would not be making my mortgage payment each month, and would still have nearly $8,000 in credit card debt instead of under $3,000 (and falling!). But I agree--taking a quasi-religious approach to any councelor's advice isn't a good thing. Uncritical acceptance may work in religion, but in life it'll burn you every time.

--W@L

[Writer@Large]

Re: Dave Ramsey - Any Thoughts?

Dave's advice would have left me hundreds of thousands of dollars poorer had I taken it.

So ... what's the story? Come on, man, share!

--W@L

[pkthunder]

Re: Dave Ramsey - Any Thoughts?

3) Every penny you get from them as a cash-back or reward comes out of the pocket of the people un-educated in finance. Joe-Bob Smith gets a credit card at 29% interest and he has a $10,000 balance on it that he never pays off. When you get your $180 cash-back, you just took that $180 from poor souls like Joe-Bob Smith. SOMEONE is paying for that $180...it may not be you, but it's people like Joe-Bob. What's Joe-Bob ever done to you?

Actually, no, every penny of my cash back rewards is like a rebate of the ~3% transaction fees that credit card companies charge vendors for the convenience of accepting credit cards.


So obviously I don't follow Dave Ramsey's teachings to the letter, either. I use credit cards for cash back and pay the balance off every month. We still eat out and we eat chicken or pork with our rice and beans. I also refuse to stop contributing to my 403b because that would be like giving up $240 a month of free money for just $90 more a month in my paycheck. Thank you, but I'll find $90 somewhere else in my budget to pay down debt.

I'm really glad that TMMO was the first "take action" PF book I read ("9 Steps to Financial Freedom" is more feel-good finance than any type of plan) because if I had by chance read "The Automatic Millionaire Homeowner" first than my husband and I would probably be struggling right now with not only our $30k+ debt (car and student loans) but also with a 0-down mortgage and all the other homeownership expenses in what is basically a flat market (Denver). Instead, DR says it very plainly that if you are currently renting, than saving for a downpayment is baby step 3(b). I have resolved to being patient, and even if we have to wait another 7 years, there will still be many many years of homeownership before us.

We've paid off about $4500 in 2 months.

[wwjdmsl]

Re: Dave Ramsey - Any Thoughts?

You are right on, DR is straight, direct and to the point and that's what I need to stay on track so he is definitely preferred over others. As you state, he also understands once we change our behavior about finances that we can do smart improvisation of the "baby steps" Good post pk.and glad you took action on TMMO instead of the others.

[debtfreesteve]

Re: Dave Ramsey - Any Thoughts?

So ... what's the story? Come on, man, share!

--W@L

I think he's saying they are saying they wouldn't have all the home equity that they have now... 25% of the take home pay, would be tough in a lot of areas, however he did mention the other day, that he understood the dynamics of certain areas of the country, and also it just his recommendation as a guideline..

I can see how hard it would be to do all things you want, with a 50% take home pay mortgage...

[slimcustomer]

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, especially the significant bump in equity we've experienced. Even a market decline of 25% would leave us in terrific shape.

[jmjj215]

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.