Let's say I can write a $20k check for a car or I can take a loan. For simple math let's just say the monthly payment is $500.

 

If I understand DR's argument he would say write the $20k check. You were going to be "investing" or "spending" $500 so take that and invest it monthly.

 

I want to buy $20k worth of Apple. It would take me 3+ years to buy that much stock if I did the DR method. I would miss out on some great returns. I haven't checked lately but recently my gain on Apple was very high ie 30%+.

 

So my $20k that I used for investment into Apple vs a car seems to have paid off even when I take into account the cost of the loan.

 

Yes, there is risk in that strategy but it's a risk I am willing to take. My guess is that people who are using his methods to get out of their debt problems are probably not investing in the stock market.

 

As RM pointed out he has value for certain people in certain situations even if you quibble with the theory.

 

I just don't buy into the blanket statements that one should never have a car loan.

 

I understand your point and don't disagree. I think his stance is that risk isn't worth taking. The down side far out weighs the up side. What if it were 1998 and you invested that money in Eron?

 

I think it all boils down to he preaches the safest possible way to earn wealth. It may not be the quickest or the best for everyone but it works. His end goal is to at some point in your life be able to live comfortably on what you have saved. I think we can all agree that social security isn't a good plan for you to bank on to retire. For the majority of Americans Dave's plan will get them to the point they won't have to rely on SS.

But it certainly would not hurt anyone to tune in to his show from time to time. Show me someone who has never made a mistake with their their finances---and has never paid "Stupid Tax." I want to shake that person's hand!

You do not have to be an out of control spender, or careless with cash person, to get something out of his show. For those of you that are so far above Dave Ramsey, with not a blemish at all in your financial history, try listening in once in awhile to the stories of how the "stupid and irresponsible morons" found a way to grab on to their bootstraps and work their way out of a bad place in their lives. It just might be uplifting and put a smile on your face. It is real people, real stories, real America, maybe even your neighbor or your aunt or a dear friend. Maybe even a fellow BGPer!

 

I certainly wasn't disagreeing with you.

Let's say I can write a $20k check for a car or I can take a loan. For simple math let's just say the monthly payment is $500.

 

If I understand DR's argument he would say write the $20k check. You were going to be "investing" or "spending" $500 so take that and invest it monthly.

 

I want to buy $20k worth of Apple. It would take me 3+ years to buy that much stock if I did the DR method. I would miss out on some great returns. I haven't checked lately but recently my gain on Apple was very high ie 30%+.

 

So my $20k that I used for investment into Apple vs a car seems to have paid off even when I take into account the cost of the loan.

 

Yes, there is risk in that strategy but it's a risk I am willing to take. My guess is that people who are using his methods to get out of their debt problems are probably not investing in the stock market.

 

As RM pointed out he has value for certain people in certain situations even if you quibble with the theory.

 

I just don't buy into the blanket statements that one should never have a car loan.

 

And therein lies the difference in mindset and approach on this issue.

Why such bitterness?

 

No bitterness here. Amusement yes, bitterness certainly not. In fact, I have great respect for his charisma.

I understand your point and don't disagree. I think his stance is that risk isn't worth taking. The down side far out weighs the up side. What if it were 1998 and you invested that money in Eron?

 

I think it all boils down to he preaches the safest possible way to earn wealth. It may not be the quickest or the best for everyone but it works. His end goal is to at some point in your life be able to live comfortably on what you have saved. I think we can all agree that social security isn't a good plan for you to bank on to retire. For the majority of Americans Dave's plan will get them to the point they won't have to rely on SS.

 

You certainly have to be smart about your stock picks. Mine have been pretty good.

Let's say I can write a $20k check for a car or I can take a loan. For simple math let's just say the monthly payment is $500.

 

If I understand DR's argument he would say write the $20k check. You were going to be "investing" or "spending" $500 so take that and invest it monthly.

 

I want to buy $20k worth of Apple. It would take me 3+ years to buy that much stock if I did the DR method. I would miss out on some great returns. I haven't checked lately but recently my gain on Apple was very high ie 30%+.

 

So my $20k that I used for investment into Apple vs a car seems to have paid off even when I take into account the cost of the loan.

 

Yes, there is risk in that strategy but it's a risk I am willing to take. My guess is that people who are using his methods to get out of their debt problems are probably not investing in the stock market.

 

As RM pointed out he has value for certain people in certain situations even if you quibble with the theory.

 

I just don't buy into the blanket statements that one should never have a car loan.

 

The premise is to eliminate debt, then build the wealth with all of the money you had tied up in debt. The car scenario is a tough one, I agree. The flip side of the investment scenario does hinge on making money in the market. A couple of years ago that would have been a bad example. A very small minority made money in that market. I think Ramsey would tell you to pay cash for the car, and then save/invest the 500 a month if you had no other outstanding debt.

What I'm amused by in this thread is the overall tone that everyone here is financially sound, and are not the target of Ramseys audience. Unless the members on this board are not a true slice of America as it really is, I would state that the majority have credit card debt, car loans, student loans mortgages, and other debt that is on the ledger. Ramseys plan is a guide to get out from under all of that, or not to fall into that trap. Maybe one of our financial guru's can enlighten us to what the debt status is for the average American, and how much interest is being paid annually?