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Message
re: Dave Ramsey's Financial Peace
Posted on 2/13/13 at 1:49 pm to Ace Midnight
Posted on 2/13/13 at 1:49 pm to Ace Midnight
I think shiz is saying is its hard to save what you don't first make. I think everyone agrees as a culture we have a spending problem.
I simply do not understand unemployment. I could get a job a day everyday for the next month if I was unemployed.
I simply do not understand unemployment. I could get a job a day everyday for the next month if I was unemployed.
1
Posted on 2/13/13 at 2:12 pm to ItNeverRains
quote:
I think shiz is saying is its hard to save what you don't first make.
Everyone who is working full-time can live within their means and save something. $5, $10, $20 per paycheck, whatever. Most 20somethings spend all they make, plus 10%, in student loans, credit cards, etc.
Ultimately, those bills come due and you're either wrecked, financially, in Chapter 7/13, or whatever dire situation you find yourself.
Just as you can't save what you don't make, you shouldn't spend what you don't make either. Even if a person has an "income" problem, I'll wager bullets to navy beans they have a "spending" problem, and if they fixed that problem, the "income" problem would be much better (if not alleviated). On the other hand, fixing the "income" problem without fixing the "spending" problem will do little (or no) good.
This post was edited on 2/13/13 at 2:13 pm
Posted on 2/13/13 at 3:29 pm to Ace Midnight
quote:
Planning, budgeting, saving are all the very first steps I would suggest to anyone with a money problem. Yes it's possible they have an income problem. Even so, I would wager they have a spending problem and the spending problem is a much bigger factor in 95% of household financial situations (although I could be a little high in light of the recent prolonged unemployment problem).
Have not listened to Ramsy for a few years, but when I did it seemed most of his callers with debt issues had a income that would support the average family with similar living expenses, ss you stated it was lack of planning and budgeting thta created their problems.
Posted on 2/13/13 at 4:51 pm to EA6B
Sometimes you hear people call in with 180K combined take home pay and they're all up to their necks in credit card debt
Yes, some people are just THAT bad with money
Yes, some people are just THAT bad with money
Posted on 2/13/13 at 9:35 pm to Powerman
quote:
Sometimes you hear people call in with 180K combined take home pay and they're all up to their necks in credit card debt Yes, some people are just THAT bad with money
those people blow my mindPosted on 2/14/13 at 7:55 am to Powerman
I have a client who makes roughly 180k a year, absolutely live beyond their means. Were 50k in the hole on their house, got a 250k estate settlement lump sum, sold their house and bought new one (but actually is a better long term investment) but then bought new 50k truck, 35k crossover, and have roughly 70k left less than two years later. Sad
Posted on 2/14/13 at 8:06 am to ItNeverRains
What's the old saying "The more you make, the more you spend"... Every time I get a cost of living increase or raise, I bump my retirement contribution to offset it, therefore making the same amount of money...
I agree with the previous 3 posters, it is very sad to listen to his show and have people call in making 6 figures and have massive amounts of debt...
I agree with the previous 3 posters, it is very sad to listen to his show and have people call in making 6 figures and have massive amounts of debt...
Posted on 2/14/13 at 10:28 am to OnTheBrink
It is even sadder talking to those people in person. There are just some people I have wanted to slap for their dumb decisions.
Posted on 2/14/13 at 10:43 am to GoCrazyAuburn
I know a girl that was a bartender and she got on with BP during the cleanup work
After about a full year of working 70 hours a week she had finally gotten to a stable financial situation
Not 3 months after the BP work dried up she was doing all sorts of stupid shite
She wound up taking out a high interest (~40%) loan from who knows where to finance the remodeling of a bathroom (2500 dollars) of the house where her and her boyfriend lived. i.e. not even her own house
After about a full year of working 70 hours a week she had finally gotten to a stable financial situation
Not 3 months after the BP work dried up she was doing all sorts of stupid shite
She wound up taking out a high interest (~40%) loan from who knows where to finance the remodeling of a bathroom (2500 dollars) of the house where her and her boyfriend lived. i.e. not even her own house
Posted on 2/14/13 at 10:58 am to Powerman
That is unreal.
Posted on 2/14/13 at 12:57 pm to GoCrazyAuburn
Some of those calls are just depressing. On the other hand it makes you realize you aren't that bad off.
We did the Ramsey thing for a few years getting some debt paid off (all but the house). When it got to be time to invest we went the boglehead route. There is so much information online and in forums like this that average people can do well if they would just put a little time in.
We did the Ramsey thing for a few years getting some debt paid off (all but the house). When it got to be time to invest we went the boglehead route. There is so much information online and in forums like this that average people can do well if they would just put a little time in.
Posted on 2/14/13 at 2:11 pm to Venelar
What is the boglehead route? I am not far from going adrift from my conservative budget. I really want to finalize a comfortable retirement investing plan, then start moving the extra earnings into something with a higher rate of return then what I can get at any bank nearby.
I don't want to be very involved either, as it is very hard getting blocks of free time as is for personal study and development.
I don't want to be very involved either, as it is very hard getting blocks of free time as is for personal study and development.
Posted on 2/14/13 at 2:18 pm to Springlake Tiger
quote:
Don't use a credit card, ever.
As long as you pay them off every month, they are great. Wife and I pay for everything possible on credit cards and get anywhere from $800-$1,500 back per year on stuff we would have bought anyway.
Posted on 2/14/13 at 2:30 pm to Springlake Tiger
quote:
Don't use a credit card, ever.
Stupid. You need a strong credit score and having a credit card and paying it on time monthly will help you build it. Not to mention bonus rewards on certain cards, almost like free cash.
quote:
Always contribute to a company matched 401k up to the point at which they match, don't pass up free money.
+1. Been doing this but I saw someone on here say to pay off all your debt before. If the only debt is student loans and a mortgage, you are dumb if you dont contribute to your 401k, especially if they match.
This post was edited on 2/14/13 at 2:43 pm
Posted on 2/14/13 at 2:47 pm to AUtigerNOLA
on the DR plan, he doesnt count mortgage debt as part of the snowball. Retirement contribution is ahead of paying off the house in terms of priority.
I believe he does say to stop retirement contributions in order to pay off all other debt as quickly as possible though. But, I think for most people in need of his plan, they arent doing any retirement planning anyway.
I believe he does say to stop retirement contributions in order to pay off all other debt as quickly as possible though. But, I think for most people in need of his plan, they arent doing any retirement planning anyway.
Posted on 2/14/13 at 2:54 pm to RickAstley
Posted on 2/15/13 at 9:13 am to AUtigerNOLA
quote:
Stupid. You need a strong credit score and having a credit card
Needing a credit score is a common myth that has been perpetuated by credit card companies, banks and others who have a financial stake in making sure that you believe having a good credit score means you’re winning financially.
The truly wealthy (or those that will be wealthy someday) know that their credit scores (and credit bureaus) really don’t matter in the long run.
Posted on 2/15/13 at 4:18 pm to Will Cover
I got a high score by paying my credit card off in full every month and soaking up the rewards from my CC company. I simply treat it as en extension of my checking account. I understand how taking out a loan just to build credit doesn't make sense but I don't see any real downside to most peoples conventional methods. You need a good credit score to buy a house, it's important. If you can't handle the responsibility of a credit card that's on you, not the CC company who "perpetuated this common myth".
Posted on 2/15/13 at 4:48 pm to Chris Farley
quote:
I understand how taking out a loan just to build credit doesn't make sense but I don't see any real downside to most peoples conventional methods".
Most peoples conventional methods don't work.
quote:
U.S. Credit Card Debt Grows, Fewer Americans Make Payments On Time
quote:
The average credit card debt per borrower in the U.S. grew 4.9 percent in the July-to-September period from a year earlier to $4,996, credit reporting agency TransUnion said Monday.
At the same time, the rate of credit card payments at least 90 days overdue hit 0.75 percent, up from 0.71 percent in the third quarter of last year, the firm said.
LINK
As of January 8, 2013:
quote:
U.S. household consumer debt profile:
Average credit card debt: $15,422
American consumers owe:
quote:
$858 billion in credit card debt
LINK
quote:
You need a good credit score to buy a house, it's important
You can get a mortgage without a credit score through a process called manual underwriting. Or another way to show that you are financially responsible to qualify for a mortgage is to use a service called eCredable.
This post was edited on 2/15/13 at 4:49 pm
Posted on 2/15/13 at 5:02 pm to Will Cover
I'm sorry that some people can't handle credit responsibly but that doesn't mean credit cards, or many other forms of debt for that matter, are an evil institution. Some Americans clearly have issues managing money and they have no one to blame but themselves.
This post was edited on 2/15/13 at 5:04 pm
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