Your opinion on a Dave Ramsey email I got

[IMDATDUDE]

Debt is one of the worst things you can have in America. It makes people a slave. I payed off 40k worth of debt in last 2 years. I drive a 10 year old Rav 4. The only debt I have is my home. I hate to say it but this Cracka makes good sense.

Heard about this guy and was sent a 5 min clip schooling me on how to go about getting a car which he says can result in you not having to do payment plan for the rest of your life.

http://www.daveramsey.com/etc/lms/drive_free/player.cfm


**I was told by a guy on here that this was a good concept but his numbers are off, but they seem good to me. I would like to hear more opinions on Ramsey's idea.

 

[wutamess]

Ugh... Where do I start?

First! FORGET THE NUMBERS. This is a common sense approach to growing wealthy. Most people are too busy finding ways to debunk his logic instead of actually paying attention to the content.

From my personal experience, I've always been a saver. Since 2001 I've always had a forecasting budget spreadsheet. Since creating that spreadsheet, I know where every penny is going before I touch it. It helps me to manage myself like a corporation. I know approximately how much I'll have in savings by year end. At the end of every year I distribute the budget to whomever requests it. I just became a member here over a couple of months ago so you can bet I'll be pimping the budget program on here at the end of the year when I have to update my spreadsheet.

Having said that. Despite me always possessing a "thrifty" mentality, I've always thought there was something more to it or something I should be doing with my money. It all made sense when I listened to Total Money Makeover which was referred to me by the most unlikeliest of people, "MY FINANCIALLY IRRESPONSIBLE SISTER".

You can debate whether his logic is on point or not but I do know that we've eliminated tons of debt (little over $25K) in just the 2 years I've been following him. He's inspired me so much that he's what my blog is catered towards. Here's my introductory post on my blog explaining my situation in detail.

Like me, I highly encourage you to change your family's legacy. Start by copping the Total Money Makeover and then get Financial Peace University. I got FPU on bittorrent and I'm sure it's still out there.

Reverse the trend & welcome to the club.

 

[IMDATDUDE]

Good drop wutamess. I think I will follow this guy more. I am in a good situation I feel. I finished college for free, single, no kids, and landed a 35k job for right now in Oklahoma(cost of living is low). I have no debt, I just got my first credit cards about 9 months ago and I only use them when I know I can pay them right off.

I realize I need to make smart decision from here on out with my money, but I will admit I have that MC Hammer mentality when it comes to helping out friends and family, I can get better at that though.

 

[wutamess]

Good drop wutamess. I think I will follow this guy more. I am in a good situation I feel. I finished college for free, single, no kids, and landed a 35k job for right now in Oklahoma(cost of living is low). I have no debt, I just got my first credit cards about 9 months ago and I only use them when I know I can pay them right off.

I realize I need to make smart decision from here on out with my money, but I will admit I have that MC Hammer mentality when it comes to helping out friends and family, I can get better at that though.

That's funny you say that. I was just thinking about me being MC Hammer's broke ass myself the other day. But that's a good thing, Dave's idea for you to get rich is so that you can give it away and help others. It's a win-win.

Funny how that works.
~ FWIW: Drop the credit card.

 

[BigATLslim]

This guy is the real deal. His credit score is 0. Claims he hasn't borrowed money in over 20 years, pays for everything in cash and tells you "to live like never before so you can LIVE like never before." He is here in the "A" and has a great following in the area. People call into his show with AMAZING stories of eliminating debt and living like true G's because they buckled all the way down for a year on beans, rice and station wagon to come out eating filet mignon in the S500...seriously. Consumer debt is that real debt killer.

 

[Negmarron]

That's funny you say that. I was just thinking about me being MC Hammer's broke ass myself the other day. But that's a good thing, Dave's idea for you to get rich is so that you can give it away and help others. It's a win-win.

Funny how that works.
~ FWIW: Drop the credit card.

Clark Howard has a great policy on the MC Hammer mentality. Family members get ONE financial bailout. After that, they're on their own.

 

[wutamess]

Clark Howard has a great policy on the MC Hammer mentality. Family members get ONE financial bailout. After that, they're on their own.

It's not bailout so-to speak it's just helping those that are helping themselves when I can. Not just throwing money at irresponsible people because that's being a crutch.

http://www.rapiddebtloss.com/blog/2008/05/28/debunked-part-ii-my-kids-wouldnt-appreciate-it/
Long but that's where I'm at with giving to the responsible.

 

[Tuco]

I got on to Dave Ramsey a couple months ago...bought da book and listened to FPU. He really makes a lot of sense.....I liked his approach to things better than the other books I've read. I've since started his budget envelope system which helps a lot, and I'm almost done with my debt snowball. he's da truth...i recommend him to anyone looking to improve their financial situation. im tryin to buy a place in the next year or so; and seeing where i was financially a year ago i could see the light at the end of the tunnel. the hardest thing about it all is patience. if only i was smarter with my money years ago.....

 

[new 2 this]

Heard about this guy and was sent a 5 min clip schooling me on how to go about getting a car which he says can result in you not having to do payment plan for the rest of your life.

http://www.daveramsey.com/etc/lms/drive_free/player.cfm


**I was told by a guy on here that this was a good concept but his numbers are off, but they seem good to me. I would like to hear more opinions on Ramsey's idea.

I remember this car subject from another thread. I agree in concept, but his numbers are exaggerated to prove his point. His example has you trading in your cars with no depreciation. He also has you buying used cars at $12k in 6 years and $14-18K every 5 years after that. Unfortunatly, the cost of cars will go up every year, including used cars. He's banking on an average return of 12% from a mutual fund. I love the concept of regularly paying yourself and investing it. I agree with the message that he delivered. I just want you to understand that his gains are slightly inflated. Also, keep in mind that you won't be buying new cars (not a problem for me).

On another note, keep in mind that having credit cards is not always a bad thing. If you go debt free and stop using credit cards, believe it or not, your credit will take a dip. Just keep in mind that things like auto insurance and employment are starting to use credit reports/(maybe scores) as factors.

 

[IMDATDUDE]

Thanks New to This. Yea I have no problem getting used cars. I'm not the average guy when it comes to cars, I'm just not that into them like other guys are. My dream car would be a 2007 dodge charger I get clown for that a lot by my friends. I could get one but I'm riding this cutlass out till the wheels fall off.

 

[new 2 this]

Thanks New to This. Yea I have no problem getting used cars. I'm not the average guy when it comes to cars, I'm just not that into them like other guys are. My dream car would be a 2007 dodge charger I get clown for that a lot by my friends. I could get one but I'm riding this cutlass out till the wheels fall off.

This is an opportunity to use his plan somewhat. Act like you are getting the dodge charger now and start making car payments to yourself. If you can't put away the entire payment, make partial payments. Whenever you get stressed or feel tired of making the payments, google that charger on the internet for motivation. Before you know it, you will have $$ sitting in a nice mutual fund. I'm not even saying that you have to buy one. Just use it for mental motivation.

 

[new 2 this]

I have decided to put a modified car plan into action. Since I already have expenses and car payments, I will not be doing the large payment he suggested. I will be paying myself $200/month as a simulated car payment. I have opened a sharebuilder account and setup the automatic investment on the 1st Tuesday of every month. I will set this month to take out next Tuesday, since I already missed today's deadline. I have selected the Vanguard Total Stock market ETF (VTI).

 

[wutamess]

I have decided to put a modified car plan into action. Since I already have expenses and car payments, I will not be doing the large payment he suggested. I will be paying myself $200/month as a simulated car payment. I have opened a sharebuilder account and setup the automatic investment on the 1st Tuesday of every month. I will set this month to take out next Tuesday, since I already missed today's deadline. I have selected the Vanguard Total Stock market ETF (VTI).

If that's the case... maybe you should open up an IRA and invest the max into it (if you can afford it) $333/month.

It's tax free when you withdraw it after a certain age and you can ALWAYS withdraw your contribution amount without penalty making it like an savings account.

Check these out...
http://www.rapiddebtloss.com/blog/2008/08/17/different-investment-options/
http://www.rapiddebtloss.com/blog/2008/08/11/beginning-investor/

 

[wutamess]

I have decided to put a modified car plan into action. Since I already have expenses and car payments, I will not be doing the large payment he suggested. I will be paying myself $200/month as a simulated car payment. I have opened a sharebuilder account and setup the automatic investment on the 1st Tuesday of every month. I will set this month to take out next Tuesday, since I already missed today's deadline. I have selected the Vanguard Total Stock market ETF (VTI).

If that's the case... maybe you should open up an IRA and invest the max into it (if you can afford it) $333/month.

It's tax free when you withdraw it after a certain age and you can ALWAYS withdraw your contribution amount without penalty making it like an savings account.

Check these out...
http://www.rapiddebtloss.com/blog/2008/08/17/different-investment-options/
http://www.rapiddebtloss.com/blog/2008/08/11/beginning-investor/

 

[new 2 this]

Just a little update on how the plan is working for me. I started putting away $200/month to simulate a car payment for my future M or AMG. The $200 plus my current car payment represents my suggested new car note. I left the money going to the VTI ETF, and I am down approximately 11%. This is still money that I would have probably spent on bullshit, so I am happy that it is slowly accumulating. I will continue with this course of action. Peace Fam.

 

[new 2 this]

Just a little update on how the plan is working for me. I started putting away $200/month to simulate a car payment for my future M or AMG. The $200 plus my current car payment represents my suggested new car note. I left the money going to the VTI ETF, and I am down approximately 11%. This is still money that I would have probably spent on bullshit, so I am happy that it is slowly accumulating. I will continue with this course of action. Peace Fam.

Blast from the past. It is now October 09, and I am in my 13th month. That would put my cost at $2600. My ballance is currently at $3320 for a difference of $720 (+27%). Sharebuilder actually lists it at 16.99% due to a portion of it being the dividend reinvestment adding up. VTI pays dividend every quarter. At this point, dollar cost averaging appears to be working in my favor.