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

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

  1. grumpy1

    grumpy1

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    I don't follow him but he does seem to give some good advice. I don't agree with all debt as long as you can manage it and have discipline. With today's low interest rates debt can make sense in some situations. When we bought our last new Honda Accord we were going to pay cash but I financed because I got a loan for .9 percent and at the time my funds for the car where in a short term bond fund averaging about 4.5 percent a year. We paid off our 15 year mortgage early and at that time the interest rate was 5.25 percent. Other people we know kept refinancing and taking money out and now they are near retirement age with a huge mortgage and little savings. I hear the Truth About Money by Ric Edelman is a pretty good read. One that influenced me years back was The Millionaire Next Door about how to get rich slowly.

    I started investing at 16 as my first job offered my a 401K with matching fund for a part time job and I put 6 percent of my gross pay into it. I ended up working for the company for 23 years and was in management when I left. Most people don't have any financial plan and fly by the seat of their pants and pretty much spend everything they make and don't have an emergency fund. They figure "I can start saving later" but the truth is people who start an investment plan at an early age have a huge advantage because of how money grows when invested over time. Everyone should learn in school or somewhere about how money with compound investing grows over time. I was totally astonished when I found out.

    IMO the other big thing is to control impulse spending. Ask your self how will my life change if I get this expensive toy and how will it change if I do not? Get at minimum a basic financial plan with a budgeting guidine that can be a simple spreadsheet and live well within your means and quit worrying about keeping up with the Joneses
     
    Last edited: Aug 6, 2020
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  2. PEC-Memphis

    PEC-Memphis Scottish Member

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    One of the greatest truths in life, particularly if you think like Redrick.

    I know someone who has been married and divorced three (3) times, "financial thinking" (or lack thereof) broke up each marriage. He married the same woman each time, he was financially responsible, she was financially reckless. After the third divorce, each maintains their own household (so no perception of common law marriage, even though Tennessee is not a common law state), but they still have a relationship; he still loves her, he just can't live with, and be married to, her.
     
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  3. Ragin Cajun

    Ragin Cajun

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    We essentially have been doing that method since the late '60's. IT WORKS!!!!
    That's how we were able to assume a loan on our first, and only, house!!! Had to produce cash for the equity.
     
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  4. BSA70

    BSA70

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    Another man coming in and enjoying your hard work is a reality most do not want to think about it. I've seen several times in my life, a guy drops dead, wife remarries some dude that has never really worked and he enjoys his new life.
     
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  5. Lazy R

    Lazy R

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    Many people have no dissaprin. Ramsey helps to get some of them straightened out, at least into a better condition financially.

    Paid off credit cards in the early 1990's and since then have paid them off every month. If I can't pay it off that month, I don't buy it. Paid off my house 6 years ago and that is a very free feeling.

    Against the DR method, when I buy a car, I buy new. But I pay them off fast and keep them forever. Just last year sold my 2003 Chevy pickup and got a new F150. It'll last me until I am about done driving.

    Living frugal doesn't mean you can't have any fun. I know guys who make very good money up in 6 figures and are always close to financial catastrophe. Doesn't make sense but I just do what I do.

    I love motorcycles and bought a used Suzuki DR650 for cheap in 2007. Still riding it, have put 30,000 miles on it. New KTMs are cool but really expensive. My ol's Suzy just keeps going and does all I need. Ya I squeak when I walk sometimes.
     
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  6. IndyGunFreak

    IndyGunFreak

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    That's kind of sad, but you're right.. no matter how you think.. make sure you both think the same way... When I was a kid, I heard my parents fight about money a LOT, and it was just something as I got older, I wanted to make sure never happened in my life. I found out about Ramsey almost right out of HS and have followed his plan pretty much my entire adult life. When I was considering proposing to her at 24, she knew I was a little "weird" with money. I talked her into going through Financial Peace with me. We went through it, discussed it a little. Then just out of the blue about a month later, she called me and asked how she should allocate her part time job income to her student loan debt (which would end up about 60k). It may sound weird to some, but for me, that conversation we had that night sealed the deal. We've fought about many things over 14yrs... but never one time has money been one of them.
     
  7. Dave Lively

    Dave Lively

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    In one of the videos I saw he was recommending someone a few years away from retirement invest 100% in mutual funds with a average return rate of 8%. I would call that approach very aggressive. I am in my early 60s and would like to hear how the people saying Ramsey is conservative would describe the 60/40 mix of equities/bonds I have.
     
  8. TNRonin

    TNRonin Happy g21/g19 /g43 owner! Millennium Member

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    People can poo poo on DR but he uses some common sense things and says things YOU don't want to hear. I'm like everyone else, I don't like to here the truth. They dress it up by mocking him etc. DR sometimes lacks tact, that has driven me to quit listening to him. I didn't stop using his principles tho.

    Once I got the wife on board we paid every thing off except the house. She can take her trips debt free and heck i can even send her mom with her! I was on track to pay it off until the dang stroke. We have a decent emergency fund in place thanks to him. Poo poo on him all you want, but he saved our marriage and future. For that I'm thankful.

    And he's a gun guy.

    Sent from my SM-T860 using Tapatalk
     
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  9. IndyGunFreak

    IndyGunFreak

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    I'm sure his advice changes a bit if you're 5yrs from retirement w/ little to no savings, vs 30, 35yrs. Again, if you listen to his show, he's said many times he suggests a "crock pot" approach to investing.
     
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  10. Dave Lively

    Dave Lively

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    Disagreements about money killed my marriage. There were other issues but that was the only one we couldn't work out or live with.

    One divorce was enough in my case. We once talked about getting back together but I realized nothing had changed so we would end up in the same bad place we were at when we got divorced. At least it happened early enough in my life I had a chance to rebuild both personally and financially. I really feel for people that get divorced late in life.
     
  11. PEC-Memphis

    PEC-Memphis Scottish Member

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    Doh ?
    I've purchased two (2) new cars. A 1986 Accord and a 2000 Acura, at the time the new ones were actually cheaper than the one (1) year old used ones. Supply and demand, you had to wait several weeks for a new one. I kept the Accord for sixteen (16) years and 250k miles - and drove it like it was stolen. I still have the Acura at twenty (20) years old, and ~220k miles. I have a hankering for a "new to me" car, but just can't seem to find the "right" car.

    All of the other vehicles I have bought used.
     
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  12. PEC-Memphis

    PEC-Memphis Scottish Member

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    My wife and I both have a good bit of Scottish blood in us, she prefers saying we are "thrifty" over "cheap".
     
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  13. Dave Lively

    Dave Lively

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    I have only seen a few of his videos so that is probably true. In the one I saw I don't remember how much the caller had saved up, he might have started investing too late and been trying to make up for lost time. In my case I have enough saved and am more concerned with protecting it from inflation and market volatility than trying to grow it.
     
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  14. Dave Lively

    Dave Lively

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    I prefer "financially responsible". It conveys a sense of moral superiority that annoys those that feel superior because they are "not cheap". A little turnaround seems fair.

    My ex-wife used to call me cheap and I usually replied with a big thank you. When my son was young I would ask him "What's the daddy bird say?" and he would reply "CHEEP, CHEEP, CHEEP!!!". We both thought it was great fun but my ex did not see the humor.
     
  15. John_AZ

    John_AZ

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    I was raised poor and started working young. I was always frugal with my money because after 14, I had to buy any school clothes that weren’t second hand. So I saved up my money from working to buy nicer clothes.

    After joining the military I was sent to not very nice areas, where there wasn’t a lot to spend money on. So I saved up a good savings. But got into some dumb car decisions when I got back to the states. Got married and wife brought in some credit card debt.

    Started listening to Dave Ramsey working graveyards on the radio. Same stuff that was drilled into me as a kid except we didn’t know anything about investing. Got everything paid off except the mortgage. Haven’t had a payment besides the house since February 2014. But decent used cars, save up some extra cash on the side, and when I’m ready have good value in the used car and extra cash to upgrade. My truck is a beater, but my wife and daughter ride in a good car.

    I have no stress about overtime at work. Some of the guys need certain number of hours of OT to just “make the payments” glad I’m not like that. But I don’t care how anyone else runs their money cause I’m not paying their bills
     
  16. oldmick

    oldmick

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    If you're referring to "people" as in "me", I'm not tearing him down. He's successful and his plan works, everyone "puffs" a little, salesmen more than most.

    You apparently learned a lot from him. Congratulations! We figured it out for ourselves and also have had some nice things, bought nicer cars, had nice vacations and a reasonable retirement savings account. Using his plan you may end up with more money than me. If so, God bless you.

    But please, do you really believe the story about the bank? It's clearly puffery in its finest form. Doesn't make him bad, in fact he's very successful.
     
  17. IndyGunFreak

    IndyGunFreak

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    That's part of the problem. To many people come in threads ab out his program and act like they know what DR teaches, then when you get into the weeds of their comment, "Well, I've only listened to him a couple of times". There is never going to be a situation that doesn't call for a plan to be deviated from. He also rarely suggests cashing in the equity of a home to pay off debt. Why, because to many people haven't changed their behavior that got them into debt in the first place, and they just end up back in a bunch of credit card debt and it was all a waste.. However, I've heard him talking to certain callers who he is convinced are finished with debt, and after telling him they are never getting another car note, credit card, etc.. he tells them he would cash in their equity and kill the debt.
     
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  18. Dave Lively

    Dave Lively

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    Fair enough. But I did hear him recommend someone a few years away from retirement put everything in some pretty aggressive mutual funds. Not the same as a trip to Vegas but not what I would recommend.

    There is not a single person I agree with 100% of the time and if there was they would be a pretty boring companion. From what I heard in the few episodes I listened to it sounds like I agree with him in principal but not on all the details.
     
  19. Jon_R

    Jon_R

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    I follow it in general.

    Some finer details I will adjust to what I want. I know he is dead set against a 401K loan but I did one for some house improvements when I saw the pandemic crash coming. It was only 3% of my balance but I wanted to do some home projects and didn't have the cash on hand. I also use the crap out of credit cards but just pay them off on my phone every couple of days. I use the travel points for my wife to come with me on work trips. The annual fees on them (amex) are acceptable to me for the benefits and points I get. When I got divorced and went on the program to follow it exactly I would have ended my 401k contributions and I was not willing to do that while I paid off some debt (student loans, a couple cars, etc.). I got it all done in a time that was acceptable to me.
     
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  20. BradD

    BradD

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    We have mostly followed his principles for the last 20 years. I can state without reservation that everything we've done that lines up with him has gone well. When we've gone the other way, more often than not, it hasn't gone well.

    I have his business book, Entreleadership. Of all his books, it is my favorite, and people don't talk about it much.
     
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