Who lives by the "Dave Ramsey" way of living?

Discussion in 'The Okie Corral' started by BSA70, Aug 6, 2020.

  1. IAhunter

    IAhunter Venor ergo sum

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    I’ve listened to Dave previously and used some of his concepts. I won’t “buy in” the whole way though, ya gotta live. I’m retired with a good pension and a 401K. Kid’s Undergrad paid for and they are on their own. House nearly paid off and no other debts. I use a credit card, but it gets paid off every month. I will probably buy and finance a new truck once the house is paid off in two years.
     
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  2. mfm9

    mfm9 What?

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    Yes, he did. He had filed Chapter 11, and was trying to work out his debts (mostly loans he'd taken out to buy real estate), until one of his banks got some new management that called all his loans due. That forced him to file Chapter 7.

    The whole point of Chapter 7 is that they take whatever they can, and put it towards what you owe. What doesn't get paid is wiped clean, and the lender is stuck with it.

    Once Dave Ramsey got back on his feet, he started repaying everyone he had owed money to. The banks didn't want his money, though, because they had already written off what he owed as bad debt on their taxes. Getting paid back in full would be an accounting headache for them.

    But, Dave now had friends in the banks' management. He managed to convince them to take his money.

    So, the answer is "yes", Dave did pay back every penny from his Chapter 7 BK.

    -Mike
     
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  3. agtman

    agtman 10mm Philosopher

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    All good points. Well said.
     
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  4. oldmick

    oldmick

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    Sorry, that’s a little hard to believe. I would like to, but I can’t think with the scream of the pegged BS meter. :)

    Dave Ramsey is first and foremost a great salesman. With sales comes “fluff”. Begging the bank to take your money? And later having a friend in banking who took it after the debt was legally discharged?

    Sorry, ain’t buying it.
     
    Last edited: Aug 6, 2020
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  5. illrooster132

    illrooster132

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    I like to live backwards . first I build a good credit after I've done that get as many credit cards as possible. rank up all the cards pay a little on the cards after a year or so, go bankruptcy. keep the cash saved with you, not in a bank. fly under radar for some time by living low profile . after a couple of years you can go back to your normal living and enjoy life. that has taken me some good 30 years to accomplish. I started with nothing living at a trailer park. now I have mostly all of that. except the trailer park. I now have 1985 corolla paid off and with a/c .
     
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  6. illrooster132

    illrooster132

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    ditto.
     
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  7. PEC-Memphis

    PEC-Memphis Scottish Member

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    Doh ?
    Well, I know I did and do. Paid my 1st house off in 7 years on a 15 year loan. But the interest rate was very high then. At a low rate I probably would not have.

    I never borrowed money (more than 3-4 months) to buy anything else since. Including homes or vehicles. And I change my own oil in them (vehicles). Most things I do myself if I can do it, roofing is an exception.
     
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  8. redrick

    redrick

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    I never lived on a credit card . If you cannot pay it off at the end of the month put it away until you can . Don’t buy a house that it takes overtime money to make the payment . Marry someone that thinks like you in finances . That is the hard one there and I haven’t found that one yet .
     
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  9. illrooster132

    illrooster132

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    YOU HAVE TO MARRY UGLY TO HAVE ONE OF THOSE. IF YOU MARRY PRETTY THEY VERY LIKELY BE HIGH MAINTENANCE .
     
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  10. Dave514

    Dave514

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    I think it's a good program for people who overspend in the same way that AA is a good program for those who overdrink. I don't overspend or overdrink so I don't follow either plan.
     
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  11. Flying-Dutchman

    Flying-Dutchman

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    I never really had a budget and concentrated on making money rather than scrimping. That said I learned early how hard it is to amass capital so I rarely spent it on items that depreciate.

    Not too long ago I binge watched some Ramsey shows on YouTube and I can see why he is successful. His advice is common sense yet some higher earners like doctors need some financial common sense (some of his callers are humble brags though).

    Ramsey is a YouTuber before YouTube. In other words he makes his living in show biz.

    Just like some YouTubers show you how they make money and what they do for a living yet YouTube is their largest and primary source of income.
     
  12. InValhalla

    InValhalla

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    If he's actually done this... good on him. That would say a lot about his personal character.

    If not, may sound harsh, but I would consider him just another carpet bagger.

    IV
     
  13. Westexas

    Westexas

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    He actually did. The banks were quite surprised too.
     
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  14. e150gt

    e150gt

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    Back when I was about 24 i hit a point where I was tired of borrowing money from my bank at high interest to cover until payday. I had just come back from Vegas with zero dollars in the bank. I listened to Dave and followed his advice to the T. It helped me a lot. Now over 10 years later I will still listen to him occasionally on the radio and like a lot of what he says but I'm not all about him and I'm don't agree with everything he says. But he helped lay a foundation for me and I'm glad. A lot of people are so bad with money they need to follow his program.
     
  15. rock_castle

    rock_castle Right is right and Left is wrong.

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    This
     
  16. e150gt

    e150gt

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    I also think a lot of people got caught off guard with this covid thing and a little money in the bank goes a long way over having payments eat up your whole paycheck and then all of a sudden you don't have a job.
     
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  17. Westexas

    Westexas

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    I was following his plan before I ever even heard of him. Took out one loan in 1978 for a motorcycle. Hated being in debt so much that I paid it off in less than a year. Never took out another loan.

    Paid cash for my house and retired almost 2 years ago.
     
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  18. uhlawpup

    uhlawpup l'Italia s'è desta

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    Dave Ramsey is not my messiah, but I learned the hard way.
    First wife ran me deep in debt and then left. Took second wife and me a decade to pay all that off, but then life got in the way. Two consolidation loans later, we were on an even keel.

    One of the best pieces of advice I got was from my banker when we were making the second loan. I said I was going to tear up the credit cards, and she told me not to do it. She said that if we were ever in trouble and needed a loan, she needed current credit to grant one at good rates. She said use one card, pay it off every month, and our credit would be stellar.

    She was right. We each have a cash back card that we use for everything, including insurance, utilities, groceries, etc. and pay it off every month. Our credit ratings are in the mid 800’s and we get hundreds of dollars each year in cash back, which we apply to the account. If there is an emergency, like the $19,000 re-piping we had to do to our natural gas supply, we just lay the plastic on them, get significant cash back, and then pay it off out of our emergency savings, which we finally have.

    Your mileage may vary, but debt - long-term debt - is the great inhibitor. Pay off your high interest debts first, then the rest, and then start building a little nest egg. It worked for us.
     
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  19. Critch

    Critch

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    I've followed a lot of what he talks about for a long time, but I didn't learn it from him..although I started listening to him and reading a few of his books a while back...years in fact. Most of what he talks about just makes sense. As with any philosophy, it is impossible to follow it completely for everyone, we all have different lives.

    We did get out of debt using his ideas, again, not that we necessarily got them from him..we picked off the smallest debts first, then doubled down on the next smallest...watched what we spent, used a budget etc...
     
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  20. PeterG

    PeterG

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    We did the financial peace series in 05, cut up the cards paid off all debt except house and vehicle.

    Still living it to an extent except for a gas card and a Home Depot card for emergency home repairs.


    Sent from my iPhone using Tapatalk
     
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