February 20, 201115 yr I listen to him to him when I can.. I really enjoy his show but I don't always agree with him, But I've learned a lot. Anyone else listen to him?
February 20, 201115 yr On occasion. I agree with his basic financial philosophy of eliminating all debt. The one thing I have heard him say that I didn't agree with was telling someone at the end of their mortgage to go ahead and pay it off. Once you get into the last part of your mortgage, that money is very cheap because you pay the interest up front. You could even put your money in a CD and come out ahead once you get to the last 1/4 or so of your mortgage. Another thing I am big on is 15 year mortgages. If there is any way you can swing a 15 year mortgage instead of a 30 year, do it. Huge interest savings.
February 20, 201115 yr I drive a lot so I am always scanning the dial and often listen to him. I think there are people who need his methodology even though mathematically it doens't always make sense. Where his methodology works is in the psychological end of it. He certainly can help people who have accumulated lots of debt.
February 20, 201115 yr Kinda the same as you all, I agree with some of his basic concepts, but not always the execution. I do not listen to his show or read his books, but do have some friends who swear by him.
February 20, 201115 yr We got rid of all credit cards due to his advice, he comes to Louisville sometimes its hard to get a seat. But we also found out sometimes you need a card. Pay off your small debt as fast as you can working you up to the next smaller one.
February 20, 201115 yr We got rid of all credit cards due to his advice, he comes to Louisville sometimes its hard to get a seat. But we also found out sometimes you need a card. Pay off your small debt as fast as you can working you up to the next smaller one. That would be an example of an area where I disagree with him. You can have a card as long as you are disciplined to pay the entire thing off each month. Not one single solitary time in the 7 or so years I've had a card have I failed to pay off the balance. I have a card that gives 1% cash back. Sure, a pittance in the greater scheme of things, but cash back on things I was going to buy anyway just makes sense. At a bare minimum I would have a credit card that gives cash back and no annual fee and pay any utilities on it. You have to pay utilities, so any cash back is free money.
February 20, 201115 yr Dragon, makes sense, try and rent a car with out a card. We used ours for vacations, and it wasn't bad, but I couldn't find a good card and interest. I wouldn't mind having one. Our debt ratio is really good, just our house and some medical stuff, car is worth $14K and we owe about $4K, but being retired has really hurt income.
February 20, 201115 yr Yep, like it or not you have to have a credit card. Pay it off monthly and it should be no problem. Don't buy new cars. Don't take out a loan to buy a car. Cars are a financial drain. Pay yourself first. Save your money and buy what you can pay cash for. Always have an emergency fund of cash - preferrably six months of living expenses worth. That way a short term crisis will not sabotage long term financial goals.
February 20, 201115 yr Yep, like it or not you have to have a credit card. Pay it off monthly and it should be no problem. Don't buy new cars. Don't take out a loan to buy a car. Impractical.
February 21, 201115 yr On occasion. I agree with his basic financial philosophy of eliminating all debt. The one thing I have heard him say that I didn't agree with was telling someone at the end of their mortgage to go ahead and pay it off. Once you get into the last part of your mortgage, that money is very cheap because you pay the interest up front. You could even put your money in a CD and come out ahead once you get to the last 1/4 or so of your mortgage. Another thing I am big on is 15 year mortgages. If there is any way you can swing a 15 year mortgage instead of a 30 year, do it. Huge interest savings. I'm not a big fan of his, but have to say that what is bolded is not accurate. The interest you pay is calculated on the mortgage balance. Interest rates on CD's are not even close to mortgage rates. If your mortgage has a rate of 5%, show me a CD paying that rate. Most CD rates I see are 1.5% or less.
February 21, 201115 yr I know this is going to offend some, sorry................... Dave Ramsey is to the field of financial management what the Bay City Rollers are to rock n roll. As a CPA, I find him to be more of an entertainer who is incredibly charismatic. He offers up financial advice that rivals that of an Econ 101 student.
February 21, 201115 yr Impractical. Impractical to buy new car without a loan or any car without a loan?
February 21, 201115 yr I know this is going to offend some, sorry................... Dave Ramsey is to the field of financial management what the Bay City Rollers are to rock n roll. As a CPA, I find him to be more of an entertainer who is incredibly charismatic. He offers up financial advice that rivals that of an Econ 101 student. Tell that to the hundreds---(maybe thousands) of people who have followed his plan and paid of hundreds of thousands of debt--and now get to enjoy each day being debt free? He is indeed a "charismatic entertainer" who has provided hope and motivation to so many. "ECON 101" is exactly what the "average Joe" needs to get control of their money, pay off their debt, and start building wealth.
February 21, 201115 yr He offers up financial advice that rivals that of an Econ 101 student. That's the point of his program & I believe he'd be the first to tell you that (hence the "KISS" section in his books--Keep It Simple Stupid). He acknowledges not being a "sophisticated" financial advisor (or whatever title one would give someone like him). He is adamant that personal finance has more to do w/ behavior than it does knowledge. Say what you want about him, but we've followed his plan vigorously for about 5 years now. Have no debt but the mortgage & if the Lord wills, that will be gone in 3 years & 8 months. Purchased last two vehicles for cash, one at $10k & the other at $6500. Have retirement in place that is doing really well--mostly Roth IRA & some 403b. Have a healthy college fund in place for the kid. Have $11k set back in a money-market account w/ check-writing privileges for emergencies. Giving over 10% back to church & other charitable causes. All of it done without the precious credit card that so many say is a life necessity. And again, if the Lord wills, we'll "change the family tree" as it relates to finances. There are a couple of minor things I don't agree w/ him on, but his plan has been proven tried & true by tens of thousands of people.
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