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Heard Dave Ramsey's daughter speak at a luncheon a few weeks ago
Posted on 4/20/17 at 10:49 am
Posted on 4/20/17 at 10:49 am
She co-wrote a book with her father, Smart Money: Smart Kids in 2014 when she was 26. Obviously she said it was important to be completely debt free, doesn't own a credit card, car loan, mortgage, etc.
“Buying a home is one of the largest purchases you’re ever going to make, so you need to make sure you’re prepared,” says financial expert Rachel Cruze. “Without taking the proper steps, a home can quickly turn from a blessing to a curse.
When it comes to saving for a future home, most people only consider their looming down payment. This is a mistake you don’t want to make. Cruze suggest saving an additional three to six months’ worth of expenses as an emergency fund. “In doing this, you’re building a solid foundation for your finances,” she says.
Good thing she was able to buy a $825,000 house outright at the prime age of 23.
“Buying a home is one of the largest purchases you’re ever going to make, so you need to make sure you’re prepared,” says financial expert Rachel Cruze. “Without taking the proper steps, a home can quickly turn from a blessing to a curse.
When it comes to saving for a future home, most people only consider their looming down payment. This is a mistake you don’t want to make. Cruze suggest saving an additional three to six months’ worth of expenses as an emergency fund. “In doing this, you’re building a solid foundation for your finances,” she says.
Good thing she was able to buy a $825,000 house outright at the prime age of 23.
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Posted on 4/20/17 at 10:59 am to Serraneaux
(no message)
This post was edited on 12/21/21 at 11:03 am
Posted on 4/20/17 at 11:13 am to Serraneaux
quote:
Good thing she was able to buy a $825,000 house outright at the prime age of 23.
exactly! so easy to do. so practical even for a 35 or 45 year old to pay cash for that. much less a 23 year old!
look, being debt free is great but there is nothing wrong with using leverage to your advantage and making smart decisions. something tells me the ramsey audience does not know how to do this and he preaches to the financially ignorant maybe?
Posted on 4/20/17 at 11:14 am to XanderCrews
Yeah I don't get it either. It's practical information that helps thousands of people who were never taught the basics. They got rich off it...so what? This is America.
Posted on 4/20/17 at 11:25 am to bwallcubfan
I don't hate them and they definitely live what they are preaching (For instance Dave sent his kids to UT instate instead of paying out of state to Auburn, Dave has a huge house with no mortgage on it, etc). Dave is great and learned his lessons and has built an empire. The daughter's speech just didn't do it for me knowing that she went into the world with zero student debt and no mortgage. It's easy to do when 2 of your largest expenses you will ever have in your life are paid for.
Posted on 4/20/17 at 11:29 am to Serraneaux
(no message)
This post was edited on 12/21/21 at 11:03 am
Posted on 4/20/17 at 11:32 am to Fat Bastard
(no message)
This post was edited on 12/21/21 at 11:03 am
Posted on 4/20/17 at 11:33 am to XanderCrews
It's not her fault or her family's. It's just that she didn't become "debt" free on her own and it's not as easy as she is portraying it to be. If someone bought me a $825k house at the age of 23 and paid for all of my college, I'd be debt free too.
This post was edited on 4/20/17 at 11:34 am
Posted on 4/20/17 at 11:34 am to Serraneaux
I don't think people hate DR so much as his followers position that their method is the best and only way to become financially wealthy and/or debt free.
His methods are sound, but targeted for the financially ignorant or undisciplined.
His methods are sound, but targeted for the financially ignorant or undisciplined.
Posted on 4/20/17 at 11:35 am to Serraneaux
I get it, but her message is good and helps a lot of people. She could also just be a spoiled rich kid who sits around doing nothing.
Yeah she was super fortunate, but at least she's doing something with it.
Not real sure what you were expecting his daughter to say that would do it for you.
Yeah she was super fortunate, but at least she's doing something with it.
Not real sure what you were expecting his daughter to say that would do it for you.
Posted on 4/20/17 at 11:36 am to XanderCrews
quote:
So is it her fault her family is successful
Not at all, and I don't think people are "hating" anything about their success. I think the issue is, how in the world is this barely 20-somethign year old girl going to lecture people on a fixed income with multiple kids, piling debt, mountains of bills, and a menial job on how to improve their financial situation when she has literally never been in that situation before in her life based on her family's financial standing.
And again, not hating on her. She just doesn't seem like the best person to be advising others on the topic.
Posted on 4/20/17 at 11:37 am to LSUtigerME
quote:
His methods are sound, but targeted for the financially ignorant or undisciplined.
Of course. No one can argue against that.
Posted on 4/20/17 at 11:39 am to Serraneaux
quote:
Good thing she was able to buy a $825,000 house outright at the prime age of 23.
How does this have anything to do with the validity of her advice? I personally make it a rule not to get my financial guidance from people that don't have any money.
Posted on 4/20/17 at 11:42 am to EA6B
OP is just saying it's hard to take financial advice from someone who paid cash for an $800k home at 23. Makes sense
Posted on 4/20/17 at 11:49 am to Serraneaux
quote:
The daughter's speech just didn't do it for me knowing that she went into the world with zero student debt and no mortgage. It's easy to do when 2 of your largest expenses you will ever have in your life are paid for.
Generally speaking Dave provides excellent advice to the financially illiterate, sound advice to those with some knowledge, and poor advice to those with a firm grasp on how debt can be leveraged.
However, a good bit of what he talks about after a family gets out of debt is setting up the children for success (college savings, etc.) so I see no issue in his daughter's lifestyle. It's a living example of what can be achieved through multiple generations of good financial habits.
Posted on 4/20/17 at 11:55 am to Golfer
quote:
However, a good bit of what he talks about after a family gets out of debt is setting up the children for success (college savings, etc.) so I see no issue in his daughter's lifestyle. It's a living example of what can be achieved through multiple generations of good financial habits.
Well said...all in how you look at it.
Posted on 4/20/17 at 12:01 pm to Golfer
quote:
poor advice to those with a firm grasp on how debt can be leveraged.
There's absolutely nothing poor about it. It may not be what some think is the 'best' but it's by no means poor. Furthermore, it's extremely sound advice for anyone that got wealthy from a salary like an executive or doctor. Sure loaning money as a business owner often makes sense, but if you are a surgeon making $500k why would you ever loan money outside of a house purchase? That is as stupid as it may be smart to save a couple small percentage points.
Most people with $10 mil plus actually follow dave's advice very closely. It's those with $1-2 mil trying to get wealthier that find his advice absurd.
I've never heard his daughter come off as anything but genuine. If her dad gave her money and she makes a ton on her speaking circuit which I'm sure she does, why would she buy a $250k house like a normal 23 year old? That's even dumber.
Posted on 4/20/17 at 12:21 pm to baldona
I've never dug in too deep to Dave Ramsey's financial plan, but from what I understand, the 'problem' with it is this:
- no credit cards, cash only
- no credit cards mean no credit (credit score of 0)
- no credit score means no borrowing power
So you're supposed to either:
- have enough saved up to pay cash for a house right out of college
- rent a house until you save up enough cash
- live at home with your parents until you save up enough to pay cash for said house
It's a nice goal, but as many have said, most millennials don't have $150,000 saved up to be able to afford to even buy a starter home without debt/credit. Even if they graduate without any student loan debt, which is pretty rare these days.
- no credit cards, cash only
- no credit cards mean no credit (credit score of 0)
- no credit score means no borrowing power
So you're supposed to either:
- have enough saved up to pay cash for a house right out of college
- rent a house until you save up enough cash
- live at home with your parents until you save up enough to pay cash for said house
It's a nice goal, but as many have said, most millennials don't have $150,000 saved up to be able to afford to even buy a starter home without debt/credit. Even if they graduate without any student loan debt, which is pretty rare these days.
Posted on 4/20/17 at 12:30 pm to LSUGUMBO
That's where Churchill mortgage comes in. I believe they still do manual underwriting for people with no credit.
This post was edited on 4/20/17 at 12:33 pm
Posted on 4/20/17 at 12:38 pm to Serraneaux
The only problem with our economy is government meddling.
I was able to work full time and pay for all my college in 4 years in the 1980's. I graduated college with no debt.
I took out loans for medical school but worked overtime in residency (moonlighting) to pay off med school loans.
I was debt free at 30. With all my degrees. I was only able to do this because college was affordable. Tuition at Auburn was less than $1500 a year and I had a job making over $7.00 an hour.
All the FREE government money has ruined that option for kids these days. The only help you get from the government is destined to hold you down.
I was able to work full time and pay for all my college in 4 years in the 1980's. I graduated college with no debt.
I took out loans for medical school but worked overtime in residency (moonlighting) to pay off med school loans.
I was debt free at 30. With all my degrees. I was only able to do this because college was affordable. Tuition at Auburn was less than $1500 a year and I had a job making over $7.00 an hour.
All the FREE government money has ruined that option for kids these days. The only help you get from the government is destined to hold you down.
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