Any Dave Ramsey students?

motorheadmike

Geezer
Nov 18, 2009
8,976
27,522
113
Saskatchewan, Truckistan
We have no kids

I remember our DINK days - we had half as much income and the exact same standard of living. Our daycare costs, which allow us to have full and rewarding careers, are astronomical. Theoretically we will have a bunch of money back this Fall when our youngest starts full time school and only needs the before/after school support - but the reality is that money is going to get rolled into more expensive and rewarding activities for the girls (because we are pretty obsessed about their childhood experiences/development). We will have our mortgage paid off in less than 10 years from now (I am 40, Natasha is 34) thanks to accelerated payments (because we want to erase that debt and regain the capital lost to the principle/interest), and we should both expect to have full pensions from the Federal government (unless the Russians take over, Comrade citizen) thanks to the Army/DND, and other than her truck (F that POS thing) we have don't take out loans/make payments on stuff unless it has a 0% interest rate (like appliances)... and we save a tonne thanks to my being handy around the house.

That being said: I am guilty of still shopping for a wide-body Hellcat ($80-88K CDN), and Natasha says I'll have my opportunity after she is promoted this Summer. Life is short and you need fulfilling experiences... and 717hp.
 
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69hurstolds

Geezer
Supporting Member
Jan 2, 2006
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Whatever works best for your situation- do that. One of the things we always splurged on when we were working was the DirecTV programming. Hell, while we were over-flush with cash, let's get it all. Which having all the movie channels was great, but after we retired, we started going out and doing stuff more and watched less TV. So I looked around to see what we weren't using but still paying for, and started cutting the fat out of the budget. Bye bye HBO. Bye Netflix. Bye Felicia. We eat out less too, since we're home more. That's huge on savings. As well as not buying as much gas for the vehicles because no more traveling to work. We used the savings of the cut fat and put it toward the mortgage principal. Talk about slicing off a few months virtually overnight! My original goal of paying off the mortgage was Jan 2020, now it's moved up to this August. And that's just making the minimum regular payment now.

Advice I would give to anyone, even if you don't have a lot to put back and save at the moment...

1) Set up a budget and set up financial goals.
2) Set up a 401k with your company (especially if they match funds) if you haven't already. Put at least the company match amount if they do that. It's FREE money. If you have an option to auto-bump it up a little each year, do that too.
3) Resist impulse buying.
4) Set up any savings/retirement stuff to automatically go out of your check to whatever account before it ends up in your bank account. Less likely to spend what you don't see.
5) As applicable, be honest with your significant other about spending/saving habits for BOTH of you. Decide things about money TOGETHER whenever possible.
6) If you fall off the wagon, don't beat yourself up. It's like kicking any bad habit. Just learn from it and get back on the horse.

It's not money itself that causes strains in a marriage. It's the lack thereof. :)

Best tip my dad ever gave me....(unless there's a time element involved)...when deciding to purchase something big $$, sleep on it at least 2 days before deciding if you really need to do it. Weigh pros and cons. If you still feel it's something you need to do after 2 days of mulling it over, then by all means. But usually the "wants" are stripped of the emotional high after a couple of days of waiting and you can make a better financial decision. He was right.
 
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69hurstolds

Geezer
Supporting Member
Jan 2, 2006
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That being said: I am guilty of still shopping for a wide-body Hellcat ($80-88K CDN), and Natasha says I'll have my opportunity after she is promoted this Summer. Life is short and you need fulfilling experiences... and 717hp.
I wrote a check for almost 80% of the cost of my then-new '13 ZL1 'vert with 580hp. Paid the rest of it off in a bit over 2 years. There's nothing wrong with enjoying the fruits of your labor and splurging if you're fortunate. Not everyone is, and it's not necessarily anyone's fault. My wife says I made up for any kids she would have ever had and convinced her that life turned out just fine without having any. Whatever she meant by that. :unsure:
 
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81cutlass

Comic Book Super Hero
Feb 16, 2009
4,663
13,632
113
Western MN
A lot of what Ramsey says makes sense for someone behind the 8 ball. The people with 50+K in credit card debt, 3 car loans, ect. Some people need a drastic plan so even if they follow 50% of the curriculum they are better off than they were before. They need a slap in the face to get straight.

I did a project in college where we asked people about financial literacy. I forget the numbers but the general sentiment was 75% of people feel like they are optimistic about their financial future but 75% of people felt like their plan wasn't working for them today (not the same people necessarily)

The important part about Ramsey is that he teaches a plan and a method, and most people don't have the self control to control their desires, so they NEED that plan. I compare that internal NEED for a plan to why people decide to live in HOA's, lease cars, pay for travel agents, subscribe to those door delivery meal services, ect. The plan is LAID OUT for them and they only need to sign up for that plan. A lot of people have a hard time making big life choices. Despite them paying extra money to give up their decision making ability (HOA's-what color they can paint their house, lease cars-how many miles they can drive a year, ect) people year after year want to pay for a plan to tell them what to do.

The part where I do disagree in his teachings is that money is meant to buy you experiences and items that are fun. They don't make happiness, but it sure augments it. Saving for retirement is important but if you slave your life away from 22 to 62 and then retire half the stuff that you wan't to spend your money on you can't use because you are old. If buying a boat at 32 to go out with your family on the lake makes you happy, go ahead and do it.

I think one of the big issues is the lack of self reliance in society today. Paying someone to do everything costs A LOT.


And in terms of financial liabilities, cars (cheapish ones I guess) aren't that bad.
I have 5 cars, even if I insured all of them and paid for registration at the same time, it would be less financial burden than a 3 year old pickup loan with full coverage.
 
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CaliWagon83

Royal Smart Person
Nov 12, 2017
1,933
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Orange County, CA
I took the course. Honestly didn't have the discipline to follow it strictly, but the principles are good. Of course, we've lived relatively within our means. I have a couple credit cards, and occasionally have to carry a balance, since I don't have a company-issued CC for booking work travel. Sometimes I have to do it months in advance for big trade shows where availability is tight. If you're having chronic financial troubles and can't seem to get a handle on expenditures, I'd say it's worth it. Even if you're relatively financially stable, it's some good information and principles to follow.
 
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rogue_ryder

Master Mechanic
Oct 27, 2017
267
549
93
Colorado
Never been to a Ramsey Class or a Rich Dad/Poor Dad class either, but I have read the book "The only Invest Guide You'll Ever Need" by Andrew Tobias
https://www.amazon.com/dp/0547447256/?tag=gbody-20
519XiA7pXvL._SX330_BO1,204,203,200_.jpg


It's the compounding interest in your 401K/IRA etc that is where you will generate true wealth and be able to retire. The book teaches practical financial advice; like if you have storage space buy large quantities of stuff you need like Toilet Paper when it is on a huge sale because it is only going to go up in price. Or buy your bride a fake diamond and take the money you'd spend on the diamond and put it in a Roth because $5K invested could turn into 10 or 20x that initial investmet. Problem is most women want diamonds, a current model cycle car (5 years old or less), "updated home" etc. etc. and that's what gets a lot of people deep in debt is because they might be able to afford 1 of those things, but not all.

The part where I do disagree in his teachings is that money is meant to buy you experiences and items that are fun. They don't make happiness, but it sure augments it. Saving for retirement is important but if you slave your life away from 22 to 62 and then retire half the stuff that you wan't to spend your money on you can't use because you are old. If buying a boat at 32 to go out with your family on the lake makes you happy, go ahead and do it.

These intangibles are something that you often can't but a price on. It's not necessarily a $10,000 boat, but the summers of fun with kids/wife/friends on the lake that are lifelong memories that are worth far more than $10K or $199/mo for 5 years. The thing is be smart, don't buy a $50,000 boat you really can't afford when the $10K boat will get the job done and you'll still have as much fun. Nobody ever said "I should've had less fun" on their death bed...
 
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CaliWagon83

Royal Smart Person
Nov 12, 2017
1,933
2,139
113
Orange County, CA
I’m a big fan of dividend reinvestment on stocks and funds. Just keep plowing the money back and and let it ride...(y)

It’s shocking how ignorant some people are about investing and retirement savings. If nothing else, set up recurring auto-purchase on an S&P 500 index fund, and reinvest dividends. Easy-peasy.
 

DRIVEN

Geezer
Apr 25, 2009
8,106
14,641
113
*CENSORED*
I think Ramsey's main point is that if you aren't paying other people to use their money (interest) you have the freedom to invest. That could be income property, investments, or paying cash to further educate/train yourself to increase earning potential.
Plus, there's a lot to be said for having financial independence and knowing that if you get laid off for a few months your car won't get repo'd and you won't get evicted. A little 'ef you' money on the side doesn't suck either.
 

OldsDad

Apprentice
Supporting Member
Mar 16, 2019
72
57
18
Southwest Michigan 49102
I only listen on the radio and enjoy it. I was raised if you didn't have the money you didn't have to buy it. and Cash is KIng. I feel like I am in the minority when I go to pay for some thing and I reach into my front pocket and use cash and everyone else is swiping Plastic.
 
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Injectedcutty

G body LS mafia
Nov 24, 2014
6,057
22,821
113
Louisville, KY
I only listen on the radio and enjoy it. I was raised if you didn't have the money you didn't have to buy it. and Cash is KIng. I feel like I am in the minority when I go to pay for some thing and I reach into my front pocket and use cash and everyone else is swiping Plastic.
I try to pay with cash as much as possible. My dad also had the "if I don't have cash then I'm not buying it" mentality and it rubbed off on me. Obviously I use PayPal and my debit card for online stuff, but pretty much cash for everything else. Also, jackass hackers can't hack my cash when paying like they can a card, so there's that.
 
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