re: It costs a lot of money to live

quote:

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That assumption of 12 percent a year return in the stock market is a BIG assumption.

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People get stuck on that point, and I don't repeat it because of the controversey. Ramsay is not wrong when he says 12% (although lately, he says 10 to 12 percent, interestingly), because that is a good average - the problem is - if you start on a -2% year, you spend a good while trying to catch up. All of his principles are fundamentally sound, though, even if the 12% is optimistic.

Which is better? Paying 2.9% to 8% (or more), APR, for 60 months, or making 7% on your $425 per month?