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re: Dave Ramsey Facebook Tip Of the Day
Posted on 10/23/22 at 9:56 pm to Tigerfan56
Posted on 10/23/22 at 9:56 pm to Tigerfan56
quote:
So if he recognizes the value of investing over time, why would he also suggest to always pay in cash? If you can get a very low or 0% interest rate (may not be attainable right now), then you would be better off financing over the long term based on the logic of his own post
I’m not a fan or a detractor, but his philosophy is basically anti debt, even at zero percent interest. On one of his shows he was asked if he would accept a million dollar loan at zero percent. He said no. In his view, debt is debt, no matter the interest rate.
P.S. Would I take that loan? Yes. Even if I just bought T-notes, that would be an easy and quick YES!
Posted on 10/24/22 at 8:31 am to Jag_Warrior
And for a large portion of this country he is perfect. I mean look at the student loan fiasco. I am guessing if you post on eh Money Talk then you most likely wouldn't be a good target for him. But, I am telling y'all most of the country shouldn't take on debt even at 0% interest. It is sad.
Posted on 10/24/22 at 9:06 am to jcaz
Nothing wrong with buying a new car if it's what you want. The issue is when people don't keep whatever they buy for a long time. I bought my truck new in 2014 still have it and zero plans of trading it in. It was exactly what I wanted. Paid the bare minimum payments on it for five years because they gave me 1% loan.
Posted on 10/24/22 at 9:07 am to Jag_Warrior
Ramsey is the equivalent of a nutrionist who tells people not to drink sodas or eat fast food. Basic shite but unfortunately our country is so dumb the advice would benefit 70% of the population.
Posted on 10/24/22 at 9:36 am to seawolf06
quote:
Who the hell pays $600/month for 30 years for a car?!
It's the assumption that you will always have a car payment. Not a single car for 30 years.
Posted on 10/24/22 at 9:51 am to deltaland
quote:
The kicker to this statement though is 600 a month invested well. Invested where? High risk high reward stocks? Mutual funds? What? How does this average Joe, if he decides to follow this advice go about investing that 600 a month “well” to ensure these results?
You jump on Ramseysolutions.com and click on financial advisor ELP. You interview 2 or 3 in your area and pick the one that has the heart of a teacher and invest with them. Might want to click on Zander Insurance while you're on there and make sure you're getting the best rate for your auto and homeowner's insurance.
Am I doing it right?
Posted on 10/24/22 at 10:22 am to pioneerbasketball
His numbers are right but people gotta be disciplined and actually invest rather than spend that money
Posted on 10/24/22 at 1:41 pm to 21JumpStreet
quote:
Never buy a new car period makes sense. Beaters make the most financial sense.
I bought a new car in 2018 and its value is currently higher than what I paid for it in 2018
Posted on 10/24/22 at 8:39 pm to pioneerbasketball
So does he want people to save their car note every month and invest than how can people pay cash for a car?
Posted on 10/25/22 at 8:37 am to MsState of mind
No. Have a separate fund. I believe the term is a "sinking fund." Set aside money monthly in a non-retirement fund for purchases that you know will need to be made in the future.
Posted on 10/25/22 at 9:45 am to seawolf06
quote:
Who the hell pays $600/month for 30 years for a car?!
My dad went my entire life with always have a note. He would keep something for a few years and then trade it in on a new one. Don't think he ever bought tires.
Posted on 10/25/22 at 9:51 am to pioneerbasketball
I bought a new truck in 1998, and a new car in 2008. I still have both of them, so for me, buying new is just fine. We did buy another new car a few years ago for long trips. When I retire, I may drive my old beaters, and rent a car for road trips.
Posted on 10/25/22 at 10:55 am to pioneerbasketball
I've run the math all different ways and up until covid, it was best to buy a used car, one year old, with 10-15k miles. Keep it about 3 years and then sell at 75k miles. It still has decent value to apply to the next car at that point.
The kicker though is rarely will that car have had any maintenance issues at all.
Follow Dave's advice and you are still going to pay a decent amount to get a car that is 6-8 years old, with high miles and the maintenance bills will start adding up. Follow that up with it being worth basically nothing when you get ready to get rid of it.
Just have some discipline and don't go buying high end cars and you will be just fine.
The kicker though is rarely will that car have had any maintenance issues at all.
Follow Dave's advice and you are still going to pay a decent amount to get a car that is 6-8 years old, with high miles and the maintenance bills will start adding up. Follow that up with it being worth basically nothing when you get ready to get rid of it.
Just have some discipline and don't go buying high end cars and you will be just fine.
Posted on 10/25/22 at 11:10 am to deathvalleytiger10
I think the key is also go long enough not having a car payment and you mentally never want another one.
Posted on 10/25/22 at 11:10 am to deathvalleytiger10
quote:
I've run the math all different ways and up until covid, it was best to buy a used car, one year old, with 10-15k miles. Keep it about 3 years and then sell at 75k miles. It still has decent value to apply to the next car at that point.
Have you run buying new, no/low interest (albeit these days may now be behind us), and keeping it for 12-13 years, with 5 years payoff loan and 7-8 years investing the monthly note at 4-6% return?
Enjoy new vehicle
Use low cost financing
7-8 years note invested + return > original value of vehicle, and uses time value $ towards next vehicle
Curious how that math compares to your math
Of course, sacrifice is driving 10-12 year old vehicle to enable increasing $ yield to next vehicle.
Posted on 10/25/22 at 11:31 am to Billy Blanks
quote:
I think the key is also go long enough not having a car payment and you mentally never want another one.
That is me.
We try to pay cash for our vehicles.
It doesn't always happen. But we don't pay minimums on the loans, either.
I paid $13,000 for my vehicle 12 years ago. I get more excited about driving this thing for almost 200,000 miles than I ever would pulling off a lot in a brand new vehicle.
Every one has things that make them happy. Being cheap is one of those for me (food tastes better when it is a good deal or discounted).
Posted on 10/25/22 at 11:33 am to Turf Taint
quote:
Have you run buying new, no/low interest (albeit these days may now be behind us), and keeping it for 12-13 years, with 5 years payoff loan and 7-8 years investing the monthly note at 4-6% return?
The past 10 months is going to screw with most "return" models.
I'm not knocking the method. Just pointing out the numbers when calculated at all time highs or 3 year lows make generalizations about "return" just that. Very loose generalizations.
Posted on 10/25/22 at 6:48 pm to pioneerbasketball
quote:
After 30 years, it would turn into over 1.5 million!
Yeah start enjoying life when you are 65!
Time >>> money
Posted on 10/25/22 at 7:53 pm to weagle99
Slightly turning this another direction but what becomes of the car market when the auto makers have to turn out all of these vehicles sitting on huge storage lots waiting for chips, etc? I keep seeing these lots pop up everywhere. Eventually these vehicles have to be turned out, and compete with the new vehicles being made.
Posted on 10/25/22 at 8:00 pm to KCkid
Since we’re now entering what would normally be a new model year for most makes, that’s an excellent question. But I do not know the correct answer.
And since leaving that industry in my rear view mirror, I no longer have reliable contacts to ask. But yeah, seems like there’s going to be a LOT of MY22 vehicles getting released in 2023.
And since leaving that industry in my rear view mirror, I no longer have reliable contacts to ask. But yeah, seems like there’s going to be a LOT of MY22 vehicles getting released in 2023.
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