November 30, 200718 yr Author CSHS, I have his book and will happily lend it to you. It will answer your "questions" far more accurately and with greater explanation that any of us could do in a post in this thread. I've never listened to his show but did read the book and do like the basics of his (admittedly common sense) program. The debt snowball method worked very well for the wife and I a few years back (and cshs, I know what you're thinking...don't type it). Like many others have said, the only debt I have is our house (houses, technically, but one has rent to cover the mortgage / expenses) and my car. We actually use our credit card very often, to pick up Capital One Go Miles, but it gets paid off every month. Count me in as a Dave Ramsey fan. However, to CSHS' points, I think Dave is the best solution when you are debt-heavy -- not when you get into the wealth building portion of your life. I can agree with this. Right now, with the student loans and all, I need to get some of these debts taken off the ledger.:thumb:
November 30, 200718 yr -- not when you get into the wealth building portion of your life. It would be nice to be in that portion of my life.:thumb:
November 30, 200718 yr CSHS, I have his book and will happily lend it to you. It will answer your "questions" far more accurately and with greater explanation that any of us could do in a post in this thread. I've never listened to his show but did read the book and do like the basics of his (admittedly common sense) program. The debt snowball method worked very well for the wife and I a few years back (and cshs, I know what you're thinking...don't type it). Like many others have said, the only debt I have is our house (houses, technically, but one has rent to cover the mortgage / expenses) and my car. We actually use our credit card very often, to pick up Capital One Go Miles, but it gets paid off every month. Count me in as a Dave Ramsey fan. However, to CSHS' points, I think Dave is the best solution when you are debt-heavy -- not when you get into the wealth building portion of your life. Good summary. However, there is no way possible the math works in all situations. As I posted recently, I think the true value is the fact that it develops a road to recovery even if someone points out that its not always the best path mathematically to take. Bad habits being corrected has a better mathematical result than continuing those bad habits. I'll still stand 100% behind the point that the "pay cash for your car 100% of the time" argument is great in theory but not at all practical.
November 30, 200718 yr Good summary. However, there is no way possible the math works in all situations. As I posted recently, I think the true value is the fact that it develops a road to recovery even if someone points out that its not always the best path mathematically to take. Bad habits being corrected has a better mathematical result than continuing those bad habits. I'll still stand 100% behind the point that the "pay cash for your car 100% of the time" argument is great in theory but not at all practical. For some it is. If you take his plan to the fullest it is very possible. My wife and I will pay cash for our next car. That is 3 years away and barring nothing big gets in the way we will have it to spend. It will not be brand new but close.
November 30, 200718 yr For some it is. If you take his plan to the fullest it is very possible. My wife and I will pay cash for our next car. That is 3 years away and barring nothing big gets in the way we will have it to spend. It will not be brand new but close. Don't know your life situation, but anyone with a house and a bunch of kids can usually count on something big getting in the way.
November 30, 200718 yr Funny thing is, if this really worked and everyone did it, the country would be in economic ruin. I don't think so. There was a time not too long ago when credit cards weren't that prevalent. Besides, if you buy goods without credit and have more money to buy or invest instead of paying off interest, it would probably not be a bad thing for the economy...
November 30, 200718 yr CSHS, some of the most entertaining chapters of the book touch on topics like "never loan money to a friend / family". His point, and I agree, is if you have it and they need it give it to them -- don't expect it back. It is that last portion that ruins the relationship. It really is a good read, agree with him on all points or not.
November 30, 200718 yr It would be nice to be in that portion of my life.:thumb: I like being in that portion and having no debt and building wealth, but the thread about Vegas is part of the reason I can't build. I have this thing about saving money for when I'm in my 60's and 70s when I'm only 28.
November 30, 200718 yr I don't think so. There was a time not too long ago when credit cards weren't that prevalent. Besides, if you buy goods without credit and have more money to buy or invest instead of paying off interest, it would probably not be a bad thing for the economy... Credit per say has been around for a long time. And yes if you took every person in the US and they started buying things only they could afford, there would be an economic crash. Can't believe anyone else would think anything else.
December 1, 200718 yr I have lastened to Dave for years. When I was younger, my wife and I got into some huge debt, mostly credit cards due to very poor judgement and lack of foresight. Thanks to adhereing to his advice, we have straightened ourselves out and by the time I was 30 years old, we had our house paid off, she is able to be a stay-at-home mom, and we will be able to put our kids thru school w/o too much difficulty. Doing it Dave's way is not easy, but it is well worth it. "Live like no one else will today so you can live like no one else can tommorrow!"
December 1, 200718 yr For some it is. If you take his plan to the fullest it is very possible. My wife and I will pay cash for our next car. That is 3 years away and barring nothing big gets in the way we will have it to spend. It will not be brand new but close. Why will you pay cash? If I'm following you correctly, you've already eliminated most of your debt if not all of it. So, explain why you would spend , say, $15k for a late-model used car and fork over $15k in cash. You mentioned that your credit is going to be strong which means you'll be an A tier buyer ie very good rate. Why tie up your cash?
December 1, 200718 yr CSHS, some of the most entertaining chapters of the book touch on topics like "never loan money to a friend / family". His point, and I agree, is if you have it and they need it give it to them -- don't expect it back. . As you very well know, I don't expect to see it again.
December 1, 200718 yr Author Why will you pay cash? If I'm following you correctly, you've already eliminated most of your debt if not all of it. So, explain why you would spend , say, $15k for a late-model used car and fork over $15k in cash. You mentioned that your credit is going to be strong which means you'll be an A tier buyer ie very good rate. Why tie up your cash? Why in the world would you take a car payment and donate your hard-earned cash to interest? If you have the cash why not just buy the car and not have any payments? You're reaching.
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