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!"

 

Congratulations. That's nice.

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.

 

Reaching? Wow.

 

 

Lets assume 98 and his bride have strong credit (thanks to D.R.). He can buy that nice 2006 (fill in the blank) for $15k. He can finance it at 8%. He could also take that $15k and invest it. Lets assume an 11% return (approximately the average rate of return in the market). If he plans on owning it for 5 years and he finances it for 4 years, just from a cost vs return and taking taxes into account, its approximately a break even.

 

Why then would you tie up $15k of your funds to simply break even? You take the chance that an emergency comes up and now your cash is tied up in your ride. I don't see the logic in that and I don't see why you would take the chance UNLESS your rainy day fund is nice and bountiful. By reading the posts on here, most of these funds are not yet bountiful. Why then take that chance?

Reaching? Wow.

 

 

Lets assume 98 and his bride have strong credit (thanks to D.R.). He can buy that nice 2006 (fill in the blank) for $15k. He can finance it at 8%. He could also take that $15k and invest it. Lets assume an 11% return (approximately the average rate of return in the market). If he plans on owning it for 5 years and he finances it for 4 years, just from a cost vs return and taking taxes into account, its approximately a break even.

 

Why then would you tie up $15k of your funds to simply break even? You take the chance that an emergency comes up and now your cash is tied up in your ride. I don't see the logic in that and I don't see why you would take the chance UNLESS your rainy day fund is nice and bountiful. By reading the posts on here, most of these funds are not yet bountiful. Why then take that chance?

 

You don't have to worry about emergencies because you would have already put $10,000 in your bank to cover emergencies. I'm sorry but it makes no sense whatsoever to go in debt if you have enough cash to buy something. The only logical answer is to buy the car with cash and then invest anything else you have. The stock market offers a 12% return (not 11%) on average for the past 50 years. There is no UNLESS because you don't save and buy anything until your emergency fund is complete.

You don't have to worry about emergencies because you would have already put $10,000 in your bank to cover emergencies. I'm sorry but it makes no sense whatsoever to go in debt if you have enough cash to buy something. The only logical answer is to buy the car with cash and then invest anything else you have. The stock market offers a 12% return (not 11%) on average for the past 50 years. There is no UNLESS because you don't save and buy anything until your emergency fund is complete.

 

 

So, you've got a chance to increase your wages substantially by taking a sales position that you know you can be successful at because of your qualifications. The job requires you to drive daily from account to account. You have the car you've been driving since your college days and its on its last leg. You need a very dependable car for this great opportunity. You have $1,000 in your account.

 

What do you and Dave suggest?

So, you've got a chance to increase your wages substantially by taking a sales position that you know you can be successful at because of your qualifications. The job requires you to drive daily from account to account. You have the car you've been driving since your college days and its on its last leg. You need a very dependable car for this great opportunity. You have $1,000 in your account.

 

What do you and Dave suggest?

 

You buy a car that costs $1,000.

You buy a car that costs $1,000.

 

Thank you for proving my point.

 

Why don't you just tell me to wear my gym shorts and old Chuck Taylors since I won't have to buy a suit and put it on my credit card. I'm sure my customers will think that's acceptable.

 

Its not realistic in all situations and you just proved it.

Thank you for proving my point.

 

Why don't you just tell me to wear my gym shorts and old Chuck Taylors since I won't have to buy a suit and put it on my credit card. I'm sure my customers will think that's acceptable.

 

Its not realistic in all situations and you just proved it.

 

I just proved that I'm going to get out of debt and live a happy life. I will also donate as much money as I can possibly donate to charities and needy families. You just proved that your specialty is trying to come up with non-realistic, hypothetical numbers to do everything you can to prove someone wrong. If you are debt free, you don't have to put anything your credit card, because you won't need a credit card. Go ahead and spend another 20 minutes coming up with a hypothetical bunch of crap so that we can continue the argument.:sleep:

I just proved that I'm going to get out of debt and live a happy life. I will also donate as much money as I can possibly donate to charities and needy families. You just proved that your specialty is trying to come up with non-realistic, hypothetical numbers to do everything you can to prove someone wrong. If you are debt free, you don't have to put anything your credit card, because you won't need a credit card. Go ahead and spend another 20 minutes coming up with a hypothetical bunch of crap so that we can continue the argument.:sleep:

 

So a college kid with a new job selling enterprise software with the chance to make $50k, $100k, $150k should pass on the job because Dave Ramsey tells him to only pay cash for his car? How is that unrealistic and hypothetical? It happens all the time.

 

This kid isn't "in debt" yet. He simply has no funds. He's got the chance to land a great job that will require a nice dependable car and a few suits. He should pass? That's your advice?

 

Would you and Dave have told Amazon.com to not continue to take on debt to make investments in the company? Its the same thing.

So a college kid with a new job selling enterprise software with the chance to make $50k, $100k, $150k should pass on the job because Dave Ramsey tells him to only pay cash for his car? How is that unrealistic and hypothetical? It happens all the time.

 

This kid isn't "in debt" yet. He simply has no funds. He's got the chance to land a great job that will require a nice dependable car and a few suits. He should pass? That's your advice?

 

Would you and Dave have told Amazon.com to not continue to take on debt to make investments in the company? Its the same thing.

 

:sleep::sleep::sleep::sleep::sleep:

I had this book a long time ago. We have a house payment, one car payment and are finishing paying off A BIG T.V. I went out and got. That one was becasue my wife gets everything and I don't ask for much. She gave me the green light and I did it up right:) Overall though we have really pulled ourselves out of college credit card debts, I've paid off all my Master's classes that I finished up etc. I put 15% of my pre taxed check back in a 401K and my company matches 6%. I was reading through this thread and it made me think maybe I need to not put so much back in the 401K but instead put some of that in an IRA of some other sort.

I had this book a long time ago. We have a house payment, one car payment and are finishing paying off A BIG T.V. I went out and got. That one was becasue my wife gets everything and I don't ask for much. She gave me the green light and I did it up right:) Overall though we have really pulled ourselves out of college credit card debts, I've paid off all my Master's classes that I finished up etc. I put 15% of my pre taxed check back in a 401K and my company matches 6%. I was reading through this thread and it made me think maybe I need to not put so much back in the 401K but instead put some of that in an IRA of some other sort.

 

:thumb:

I mow theguru's lawn to get my free membership for a year. :lol:

 

Have you seen that lawn???:scared:

You buy a car that costs $1,000.

 

Sorry, but have been burnt on the used car thing. If the person that had the car before you did not keep up with maintaining it, it can be bad news.

You buy a car that costs $1,000.

 

Thats funny:laugh:

Dave's advice; "buy my book, so I can get out of debt.":cool: