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

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

  1. OXMYX

    OXMYX

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    He's built an organization not unlike Scientology with a religious back story.

    He preys on folks that are broke and deep in debt with nowhere to go. And he actually says not to pay off some of the debt. Ignore it, it will go away.

    A house loan is now under 3% which is basically the rate of inflation so every year of the loan is free money. Think of it as a dollar today is worth 5 dollars in thirty years.

    Instead of paying off a loan put the money in a Vanguard account and get +10% average.
     
  2. jmohme

    jmohme

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    We were selling some property and a potential buyer was driving us nuts.
    At one point, his realtor told us that he was following the advice of Dave Ramsey.
    My wife told the realtor to relay to his customer that maybe he should buy a house from Ramsey!
     
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  3. Pennsyltucky

    Pennsyltucky

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    I have no harsh opinions regarding the man, but I don't think he's some kind of revolutionary or guru.

    He's just taking solid financial principles and wrapping them up into a neat little package.
     
  4. Haldor

    Haldor Formerly retired EE.

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    I have no debt and as a result when I want something I just buy it.
     
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  5. HollowHead

    HollowHead Firm member

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    When he starts in with the, "you can't have financial peace without the prince of peace" BS, it waivers from validity. HH
     
  6. collim1

    collim1

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    I follow the Dave Ramsey to a point. I have a small mortgage that I am
    Working on paying off as quickly as possible.

    But I have no credit card debt, vehicle loans etc......

    My wife and I worked hard years ago to pay off both of our cars and establish retirement investments.

    I like the freedom of not having debt.

    I am retiring at age 48 and it should be a very comfortable retirement. Well worth the years of driving an older car and not taking extravagant vacations.
     
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  7. SleeperSS

    SleeperSS

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    A good portion of what he promotes is free. We didn't pay for any materials, except the book, which we could have checked out at the library
     
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  8. syntaxerrorsix

    syntaxerrorsix Anti-Federalist CLM

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    A 20 year old car for many people is not a reliable vehicle. There's a large portion of the population that travel for work. For example, a 20 year old car for me would have roughly 800K on the odometer.
     
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  9. fg17

    fg17

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    This... My 7 year old car bought new has 140k on it
     
  10. Sprinkler Fitter

    Sprinkler Fitter

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    So how can you buy anything then, you have to give money to someone?
     
  11. ray9898

    ray9898

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    I have always taken pride in being fiscally responsible. I manage our money and always carefully balance what we can afford with what we need. Sometimes that means buying with cash, sometimes a combination with a loan. I don't need some hard line plan to keep me on track, it is called self-control.
     
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  12. JMS

    JMS 02

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    If someone is in debt, finding their happiness in the next purchase they will wake up one day and realize that they are miserable. Happiness can’t be bought no matter how much advertising tells you otherwise.
     
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  13. JMS

    JMS 02

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    There’s no requirement for how one has to live. I make 6 figures and do my grocery shopping at Aldis, my truck is 12 years old and well maintained, my only debt is my house and I’m considering paying it off this year or next. My ex makes 6 figures, she goes shopping at Whole Foods and in less than a year has accumulated $40k in debt with nothing to show for it on top of her mortgage, car lease payment, etc.

    My goal is to meet someone that also makes 6 figures but with the same mentality, “suffer” by living off one income and putting the rest away into retirement, college savings for the kids, travel, etc.

    I have no desire to impress anyone nor do I want to associate with people that care where you live or what you drive, while they themselves are living in crushing debt. “You” all can keep on the hamster wheel of consumption looking for your “happiness” that is always one purchase away. It’s not there, that’s the secret.
     
  14. PEC-Memphis

    PEC-Memphis Scottish Member

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    Doh ?
    Then the average working person should not buy a 20 year old car from you, they should buy one from someone like me.

    Most folks that travel extensively over the road for work have a vehicle provided by their employer - where it is somewhat of a “perk” for personal use; or get a mileage allowance.
     
  15. syntaxerrorsix

    syntaxerrorsix Anti-Federalist CLM

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    I wouldn't buy a 20 year old car from anyone. I'm not into restoration.
     
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  16. Haldor

    Haldor Formerly retired EE.

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    I haven't paid $0.01 in financing on a car in over 20 years. I buy low mileage, older vehicles in good condition at auction and pay cash for them. Last two vehicles I bought: A 2012 F150 with 45K miles that I bought 4 years ago for $10.5K and a 2007 E350 van with 48K miles that I bought this February for $7.5K. The E350 has a diesel engine in it. Both vehicles were in immaculate condition with full service records (both were owned by the county).

    My daughter totaled the F150 last year and the insurance payout after my deductible was $11.5K. If I had been financing I would not have been able to buy either of those vehicles at those prices. The F150 would have been > $15K at a dealer. I know because I shopped for several months before the auction to see what they sold for. The bidders I was competing with were both used car dealers. Cash talks.
     
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  17. Haldor

    Haldor Formerly retired EE.

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    To continue. I put close to $5000 into the E350 as soon as I bought it. The 6.0L Power Stroke diesel engine has some known problems so I had my mechanic "Bullet Proof" it. While he was in there, I also had him replace all the fluids, belts, hoses, batteries, water pump and shocks. Despite its low miles it is still a 13 year old van and being stranded in the desert is not something I want to experience. That engine in its current condition is worth what I paid for the van, not that I have any intention of selling it.
     
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  18. PEC-Memphis

    PEC-Memphis Scottish Member

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    Doh ?
    I didn’t say you should. The claim was that an average working person can’t pay cash for a reliable vehicle until late in life. They can if they save A little each month then buy an inexpensive car - bottom of the line new/newer, or a mechanically reliable older car; these cars are available in the market - people pay cash for them all of the time.

    Save $140 a month for 36 months and buy a $5k car. $5k will buy a mechanically solid vehicle. Now an average younger working person may not want to save $140 a month because they would rather spend it on entertainment with their friends, but it can be done, it takes discipline.

    I was 28 when I paid cash for my first new car, I wouldn’t consider that late in the game. I drove a crappy car from college until that point.

    I should not have gone into the loan discussion, cash was the point of your post I responded to.

    Sure, the average working 20 year old person is not going to be able to pay cash for a new Silverado.
     
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  19. PEC-Memphis

    PEC-Memphis Scottish Member

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    Doh ?
    So? my 20 year old has 215k on it.

    What is your 7 year old car worth? It might be a good used car some younger average working person could pay cash for.
     
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  20. fg17

    fg17

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    Point being some people don't drive as much so they don't need to spend a lot on vehicles. 215k is only 10,750 per year. My commute was 20k a year, sometimes more, over a period of 25 years.

    I get about 180-200k out of my cars. But they are not as reliable as when they were new. I don't consider an older high mileage car reliable transportation for a long distance commute.
     
    Last edited: Aug 7, 2020
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