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

  1. I listen to dave ramsey on youtube quite a bit. I pretty much go by his way of thinking before he became so popular. He is very extreme, borrow nothing. He will allow borrowing for a home under strict parameters. I hear some really debt horror stories with all the call ins and I agree with his methods to get out of the mess.

    I don't believe in debt and trying to buy happiness. But....Life is short and it it's something you really want and can afford it, not put a hard ship on your family, go for it....What is your line of thinking?
     
  2. *****
    If you really want something,and can afford to buy/do it, without a burden on your finances...do it...YOLO
     
  3. The average working individual cannot afford to buy reliable vehicles or a home for cash until late into the game.

    Not all debt is bad. Using someone else's money can have advantages as well.
     
  4. Firstly I follow [His] plan...Dave Ramsey helps me do that...it is not rocket science; spending less than you make is a concept most of our ancestors
    practiced...the issue in our modern society seems to be: I see, I want, I buy. Dave's program reveals to such folks how they can cut costs, repay debt and become more financially independent...but the whole program is founded on a desire to have a goal and a plan to improve your financial situation...sadly, many don't care to improve...
     
  5. My wife watches him and I personally think he is full of it. You have to strike a balance in life with everything. Try to be to extreme in either way just leads to misery.
     
  6. I don’t look at it like all or nothing, there are helpful tips one can incorporate into their lives. I’ve listened to him and others over the years, Clark Howard, Bob Brinker & whoever.

    We all have a different mental makeup, various comfort levels. All work & no play makes Jack a dull boy, so they say.
     
  7. So.... how many of you guys could live for 6 months with zero income and not add additional debt? This is a very useful option to have in your back pocket when things get weird...
     
  8. Saving and investing, rather than borrowing and spending. Simple concept I wish it were universally taught.
    Investing $250 a week in an index account you would be a millionaire in 20 years.
    Had you invested $20k on AMD 5 years ago, you'd be a millionaire today.
    Teach your children, a little sacrifice now will net you a life of ease before they're 40 years old.

    Sent from my SM-G960U using Tapatalk
     
  9. Don’t you know everyone on here does. Everyone on here also changes their own oil and has paid their house off AGES ago!
     
  10. I was deep in debt for years. It was hard, but I paid all of it off. I'm now debt free, with the exception of my house that is halfway paid off. Once I got out of that debt it was like a whole new world opened up for me.
    People, if you are in debt please consider trying this instead of crapping on it.
     
  11. And...

    All males here are over 6 ft. tall, incredibly confident, and speak in a loud, resonate tone that scares women in the office!
     
  12. Kind of like the 12 steps of AA. His advice is a guide to follow, as best you can. Reality may get in the way. Dave isn't going to bail you out when **** gets out of hand.
     
  13. I think his concepts are generally good. It takes a lot of discipline to keep yourself out of trouble.

    I find it somewhat ironic though that he's become wealthy and living comfortably by charging people $100s of dollars of a slick packaged program that is pretty much common sense. I'm curious too if he's gone back and paid off the money he owed when he declared bankruptcy....?

    IV
     
  14. Debt: giving your money to others
    Debt Free: keeping your money for yourself
    Which would you rather do?
     
  15. You say that like it’s some unobtainable unicorn. Ours was paid off after 8 years. Once I understood how amortization works and how it’s basically legalized vig in the banks’ favor, that was it. It was a lean 8 years of pumping just about every available dollar towards the principle and not buying frivolous stuff, but it was worth it.

    Although I do admit that slithering under the cars on a concrete floor is getting a bit wearying. :sigh:

    Dave Ramsey is basic money good sense, and I think it’s almost criminal that it isn’t taught in the schools. Ditch the “quadratic equation” and Algebra II, which 98% of people will never use after high school, and teach the kids how mortgage amortization, extra principle payments and credit-card interest works.
     
  16. LOL that's always the opinion I end coming to when pondering DR, which is not very often.
     
  17. Okay, couple of thoughts on the house thing ....

    Paid my house off in 2001, when many here were still in grade school.

    That's allowed the invested monies to grow steadily over time, ... thus being money that's made me mo' money. :thumbsup:

    Not to mention, given the current low-interest lending environment, it's a hot seller's market in this area right now for homes, especially those in the value-range of my home, and that'll continue through year's end.

    So when my fully-paid-for house hits the market next month, it will sell for significantly more than what I paid for it back in 1991. Which means -------> still mo' money.

    While homes traditionally are not seen as good investments by investor-types, there are exceptions to every rule, and the exception here is that the extended availability of low-interest loans to first-time home buyers is fueling a boom of sales for homes in certain price-niches.

    And the home-buying competition in certain price ranges is quite hot, with bidding wars occurring as prospective buyers attempt to out-bid others for the same home, sorta like what you see rich guys do at the high-end car auctions.

    In other words, timing is everything. :whistling:
     
  18. "spending less than you make is a concept most of our ancestors
    practiced"

    That's what my grandparents taught my parents and that's what they taught me years before Dave Ramsey was born in 1960. We didn't have much, but they made it work.

    Of course, it was easier to stay out of trouble because Diner's Club didn't introduce the first universal credit card until '50 and then American Express came along to compete in '58. And neither one would issue a card to just anybody. Prior to that the only cards were issued by gas companies and such so you could buy their product.
     
  19. There is always going to be something you want. Buying on credit increases the cost of everything you buy so in the long run you you will have less stuff due to the cost of paying interest.

    The big problem with YOLO is stuff happens. And when it does all those "I can afford it, it won't be a hardship" decisions come back to haunt you. If us guys buy as many expensive vehicles, guns, vacations, or in the case of women furniture, home remodeling projects and clothes as you can afford with monthly payments having to replace the heat/AC on your house goes from aggravating expense to "how am I going to pay for this" disaster. And about every 20 years you have to do that, it shouldn't be a surprise. But the YOLO crowd acts like those sort of things are as likely as getting hit with a bolt of lightning. I got laid off last year and was out of work for about 4 months. That happens a lot too these days. I was very glad not to have any debt hanging over me when it did.

    I have listened to Ramsey on YouTube and consider his philosophy common sense but don't agree with everything he says. I see no advantage in using a debit card over a real credit card that is paid off every month. His investment advice is overly aggressive. And driving an unreliable POS $1000 car instead of financing the least expensive reliable vehicle you can find is not what I would advise. But buying that $40,000 SUV with a 7 year loan is a bad idea.

    Its your money. If you don't mind living on the edge borrow as much as you want. I know some people that seem very happy living that way despite the drama it can create. Its also not a binary choice between having to take out payday loans when the water heater goes out (About every 10 years for those of you new to owning a house) and living of Ramen noodles, driving a 1999 Dodge Dart while having a 7 figure 401k. Find what works best for you.
     
  20. I agree with others who feel you need balance in all things.

    Never buy a new car? If my wife or I wanted a new car we would buy it. We always bought within our means. Every house was less expensive than we could “afford” so that we had disposable income for vacations etc.

    We saved far more later in life than earlier. I wish we had saved more but we have enough to use a little every month for our projected lifetime.

    If people want to follow the Dave Ramsey method they’ll probably end up with more than me, but we’re doing just fine and had some nice things and some great times, so we’ve done OK without “Dave”.
     
  21. 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.
     
  22. 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
     
  23. All good points. Well said.
     
  24. 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.
     
  25. 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 .
     
  26. ditto.
     
  27. 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.
     
  28. 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 .
     
  29. YOU HAVE TO MARRY UGLY TO HAVE ONE OF THOSE. IF YOU MARRY PRETTY THEY VERY LIKELY BE HIGH MAINTENANCE .
     
  30. 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.
     
  31. 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.
     
  32. 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
     
  33. He actually did. The banks were quite surprised too.
     
  34. 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.
     
  35. This
     
  36. 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.
     
  37. 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.
     
  38. 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.
     
  39. 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...
     
  40. 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
     
  41. Much of it is good advice. It's much easier when you have a government job with great benefits and never have major health issues.

    For the last few years my attitude has been to evaluate something in terms of it helping me to make money. I have a few skills that have helped me keep my head above water and provides me income when I need it.

    Edit:

    Before Dave Ramsey there was Charles Givens. Remember the book 'Wealth Without Risk'? Besides the normal pay off your credit cards he espoused having a tax strategy by having some type of side business. That strategy has helped me to no end.
     
  42. I do.

    No car loans. No credit card debt. House was paid off quickly because we bought a house below our budget.

    I also build my own cars so I don't have to buy them.

    That house that was paid for, I did that when I was 10 years old.

    I started a lemonade stand when I was 11 and made my first million within six months. I had every other lemonade stand in the state out of business within a year. I had more hustle than those punks. I picked my own damn lemons instead of paying someone else to do it. I juiced faster and sold harder than all those losers.

    I don't just change my own oil, I make my own oil filters, pump my oil out of the ground, and then refine it into oil and gas in my garage.

    I buy the cheapest two-ply toilet paper I can find and then separate it into two separate sheets.

    I don't buy groceries, I grow everything I eat, even the wheat to make my own bread.

    I hunt for meat and only eat what I kill. I never buy meat in the store. My neighbor has cows so every once in a while I steal one of his, kill it, and then process it in my garage.

    I raise chickens so I have fresh eggs.

    I make my own rubber for my shoe soles and car tires.

    After our last kid was born my wife never stopped pumping her breast milk so we have a steady supply of milk that we don't have to pay for.

    We used old clothes to make window coverings so we didn't have to buy drapes.

    I use the bones from the animals I kill to make tools instead of paying for overpriced stuff from China. I've made a table saw, router, jigsaw, and bandsaw all out of cow, deer and elk bones. I even made the motors, blades, and wires and cord out of bones and the hides.

    I used those same tools to build my rental houses, which are paid for and generate me about a million dollars a year in passive income.

    I paid for all of our vacations with recycled aluminum beer cans that I steal out of FullClip's back yard. So far we've traveled to every continent and we take a Hawaiian vacation every month, all from the proceeds from his beer cans.

    It's hard work, but it makes me better than everyone else.
     
  43. I'm not huge fan of debt, but if you make decent money (or better) and manage it responsibly, it seems to me that following Dave Ramsey's extreme approach means you're going to spend your life working your butt off so that somebody else can enjoy your money after you drop dead.

    My wife and I took a more balanced approach. we haven't carried a credit card balance in over 30 years, underbought our homes and vehicles (and paid them off ahead of schedule), and saved for retirement.

    Now that we're retired with pensions and sizeable IRAs, we're in a very good place, and we didn't live like hermits to get there.
     
  44. D
    Does it matter?
     
  45. Obviously you can afford what you did through out your life ,,, most people live beyond their means. I have a friend he wanted a Ferrari he went out and wrote the check,, he could afford the toy and the money to his wealth was chump change.
     

  46. Well, everyone except that Grabass dude ...

    [​IMG]
     
  47. Is Dave Ramsey the "abundant living" guy who has the radio show where he talks about the bad advice most financial planners give? That guy annoys me because he talks for hours and hours about how much better his investments are but he doesn't take ten minutes to explain how he's avoiding the taxes that other people have to pay.
     
  48. Listen to his show you are regurgitating what you heard.
     
  49. We've listened to him for years. We were drowning in debt..all our fault, no one to blame but our selves. That was ten years ago. We're now debt free including the house....we don't owe money to anyone except the recurring monthly household type bills. when the wife retires in 55 days, we're going to buy her a Traverse or Blazer....in cash. Probably one year old so that someone else can take the hit. We saw him in person...he make no excuses for his programs, and freely admits it's nothing new. He just packages it in a way that makes it easy to understand.

    Seems like people always have to tear people down that don't think like them, or make excuses why it won't work. Maybe they're just afraid to admit they don't know everything....or afraid to fail.
     
  50. I took his course like 20 yrs ago. Excellent. I use his way of thinking *mostly. And im virtually debt free. I'm modest on car loans.