Dave Ramsey's Financial Peace | Page 2 | TigerDroppings.com

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tigeraddict
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re: Dave Ramsey's Financial Peace


quote:

Anyone done it? I'm thinking of starting it soon. Opinions? Did it help you?



Wife and I took it right after getting married. He has some good points, but the class is geared for those who think doing a remodel on the house means taking out a few lowes and home depot credit cards. (was a couple in the class that did just that)

But i liked the class and believe it was beneficial as a whole.







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Powerman
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re: Dave Ramsey's Financial Peace


quote:



Care to expound?

Sure

One thing where a lot of financial gurus, even on this board really get it wrong is that they scoff at people who have "large" reserves of liquid cash "not working for them"

I've seen people talking about money in amounts as small as 5K and people on here saying "that's a lot of money to not do anything with"

I disagree. I don't think there is anything wrong at all with having 10K in liquid checking or savings "doing nothing"






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tigeraddict
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Baton Rouge
Member since Mar 2007
4839 posts

re: Dave Ramsey's Financial Peace


quote:

I disagree. I don't think there is anything wrong at all with having 10K in liquid checking or savings "doing nothing"



Thats one of the things Dave talks about in his class. Having the class handy make it easy for access in the event of an emergency need, but the side effect is it brings a since of peace to the marriage in that you have the safety net, so it's one less thing to worry about. And the biggest martial issue for couples is money...






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Powerman
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re: Dave Ramsey's Financial Peace


Right. And as it turns out, divorce can be financially undesirable.

I think people tend to act less rationally when money is tight also.

You're more likely to make sound financial decisions once you're on solid footing IMO. Finances are psychological to an extent.






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Powerman
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re: Dave Ramsey's Financial Peace


quote:

Well that's a little ridiculous. You should absolutely be contributing up to any employer match in a 401k.


If you have high interest debt you're probably better off paying that off instead of contributing to a 401K

With a lot of employers you don't get the match until you reach a certain duration of time anyway.

My previous employer required 5 years with the company to be fully vested. I got laid off after 4.5 years. The "free money" didn't work out so well for me as it turns out.

Also you have to consider that a lot of the people that call into his show are in a pretty dire financial situation. This issue of not contributing to the 401K makes a lot of sense when you're looking at people with 20K of high interest credit card debt. If they got in that much debt WITHOUT contributing to the 401K there is no way that they could ever improve their financial situation by withholding 15% of their gross income. It just isn't mathematically feasible.

These people need to get their debt wiped out before they even think about retirement. Some people have 20% interest on these cards. It is very obvious that removal of debt is mathematically more sound than getting "free money" from a stupid 401K.



This post was edited on 2/11 at 8:32 am


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ItNeverRains
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Franklin, TN
Member since Oct 2007
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re: Dave Ramsey's Financial Peace


quote:

I disagree. I don't think there is anything wrong at all with having 10K in liquid checking or savings "doing nothing"


I would say 50k. With that said in my high yield I'm getting almost 2%. I simply do not understand how people cannot get at least some return on liquidity. It's lazy IMO

I agree with Ramsey for his callers, those people are absolutely broken financially. If you relate to anyone who calls in that show, follow his advice word for word.






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Powerman
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re: Dave Ramsey's Financial Peace


quote:



I would say 50k. With that said in my high yield I'm getting almost 2%. I simply do not understand how people cannot get at least some return on liquidity. It's lazy IMO


Not to mention it's a guaranteed return with 0 transaction costs

50K might be more liquid than I would have but I can't fault anyone that does






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Vols&Shaft83
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Member since Dec 2012
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re: Dave Ramsey's Financial Peace


Would definitely recommend it for a young couple, if nothing else, it will help you communicate better about finances.





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bpfergu
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Member since Jun 2011
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re: Dave Ramsey's Financial Peace


quote:

Don't use a credit card, ever.


Well that's just dumb.






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Ace Midnight
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re: Dave Ramsey's Financial Peace


quote:

If you are in the financial industry you will find a lot of what he says painfully simplistic and way too conservative.

That being said, he is good at creating a simple financial plan that will put anyone on solid ground. It is a great starting point for anyone looking to take better control of their personal finances IMO.

Is it the most aggressive approach? Hell no

Is it helpful to 95% of Americans? Probably


I find nothing with which to find fault in this very concise, fair estimate by jso0003.






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Tigerpaw123
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Louisiana
Member since Mar 2007
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re: Dave Ramsey's Financial Peace


Someone on here a few years back nailed it, they said it is like the weight watchers of financial planning. If you need it, it is a great place to start to get you out of the hole, in a simple easy to understand plan, once you get there then you may want to switch to a different plan to reach your ultimate goals, just as you would use weight watchers to get to where you are suppose to be, then work on counting amino acids etc





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Chris Farley
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Member since Sep 2009
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re: Dave Ramsey's Financial Peace


quote:

One thing where a lot of financial gurus, even on this board really get it wrong is that they scoff at people who have "large" reserves of liquid cash "not working for them"


I've never seen anyone here or someone considered a "guru" recommend not having some cash stored up. Most people recommend having at least 6 months of living expenses saved up for emergencies. If you are married with kids it is probably reckless not to do this. Personally, I don't mind taking the risk of not having much in cash savings but that is only because I am young and have no one depending on me.






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cbtullis
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Baton Rouge
Member since Apr 2004
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re: Dave Ramsey's Financial Peace


You should have a minimum of 3 months reserved cash before doing anything else. 6 months preferably.
You should also own disability insurance, whether its through your company or owning individually.
I can not believe how many people don't hve disability insurance. People protect their cars, homes, lives, electronics and appliances. But don't protect their income.






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Chris Farley
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re: Dave Ramsey's Financial Peace


I get disability coverage through work. My company also matches 40% of my 401k contributions all the way up to the max, so hitting that is my # 1 priority no matter what, then Roth, then cash savings/taxable accounts. Bonuses and my tax refund this year will go toward some form of cash emergency fund. I know that I did things a little out of order, but it's worked for me and I'm comfortable with the risk of not having much cash. I know it will pay off in the future when I have a fat stack of cheddar in my 401k by the time I am married/have kids.





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matthew25
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Member since Jun 2012
3574 posts

re: Dave Ramsey's Financial Peace


Ihave never figured out the 4 specific Mutual Funds he holds.





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foshizzle
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Washington DC metro
Member since Mar 2008
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re: Dave Ramsey's Financial Peace


quote:

I've never seen anyone here or someone considered a "guru" recommend not having some cash stored up.


Here's one right here then.

You should have the ability to raise that much cash very quickly at little cost, yes. That doesn't mean you have to have the cash squirreled away somewhere.

For example, if you have a home equity line and need to quickly raise 5k, just write yourself a check and pay it back over the next several months. For amounts that size this should not be a big deal and no you aren't "risking your house". If you can't pay back a 5k loan to yourself at 4% interest on a schedule you set then your problem isn't the loan.






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I Love Bama
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Alabama
Member since Nov 2007
33341 posts

re: Dave Ramsey's Financial Peace


quote:

foshizzle




Tell that to Joe blow who lives payechek to paycheck on 40k a year with a family. Some people don't get 10k a month paychecks to lean on for emergencies.

I understand what you're saying but it isn't reality for most people. They need money in an emergency fund.






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Fat Bastard
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Paradise
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16857 posts

re: Dave Ramsey's Financial Peace


quote:

They need money in an emergency fund.



agreed.

as i stated in the car payoff thread roths and HELOCS are a great back-up plan IF YOU HAVE IT and it is available to you. some may not own a home or a roth. but i would personally have 6 months emergency money at a MINIMUM.






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foshizzle
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Washington DC metro
Member since Mar 2008
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re: Dave Ramsey's Financial Peace


quote:

Tell that to Joe blow who lives payechek to paycheck on 40k a year with a family. Some people don't get 10k a month paychecks to lean on for emergencies.

I understand what you're saying but it isn't reality for most people. They need money in an emergency fund.


No. They need a second job. Seriously. The biggest problem for people in that situation is lack of income, not lack of savings. It is very hard to save if you don't have enough income to start with.






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Ace Midnight
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re: Dave Ramsey's Financial Peace


quote:

No. They need a second job. Seriously. The biggest problem for people in that situation is lack of income, not lack of savings. It is very hard to save if you don't have enough income to start with.


I respect you man, but what you're saying simply isn't true - just like the federal government, most people have a spending problem. They don't budget, they don't plan for emergencies, they don't save and they spend money prior to ever making it. Some compound this by spending money, prior to ever making AND incurring finance charges on that previously spent money, making it impossible to ever dig out of the hole.

An individual, working 40 hours per week, at $8.50 per hour, will gross right at $1500 per month - at that point, if he's single, he better be living with roommates (or mom/dad). If he's running a deficit every month, he's got a spending problem. Your solution "get a second job", is viable, as that will take out the number of hours he has available to spend money, plus close the gap. However, that doesn't mean he didn't have a spending problem to begin with.

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).




This post was edited on 2/13 at 12:27 pm


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