re: It costs a lot of money to live

quote:

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When your mid 20's and still influenced by others, especially in your religious sect, is the problem I have. I guess it's magnified since I live 10 minutes from Dave Ramsey's Financial Peace Plaza.

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Okay, in order the Baby Steps are:

1. $1000 emergency fund

2. Pay off ALL debt, except the mortgage on the primary home.

3. 3 to 6 months expenses

4. 15% household income into retirement

5. College funding for children

6. Pay off mortgage early

7. Build wealth/give

Regardless of how sophisticated you are, or where your priorities are, these sequential steps - whetehr you're hearing them at church, on the radio or see them posted on your fridge - there's NOTHING wrong with the steps, nothing at all. There's nothing wrong in avoiding consumer debt. Yes, there are a bunch of guys who should consult with tax advisors about the specifics of Step 4, 5 and 6, to see which tool is correct.

Ramsey likes mutual funds and suggests that 12% is a sustainable APR over the long haul - maybe it is and maybe it isn't, but "Mutual Fund" investing isn't part of the Baby Steps.

I think he comes across as smug and self-righteous at times, but when pressed, he really gives the advice he believes is the right choice for the person to whom he's speaking - what else do you want?

I know, for a fact, that 90% of Americans (or more), would be far better served by following the baby steps than almost any other financial decision they can make, aside from furthering their eduction to get the next higher tier job.

You guys attacking the messenger, the "12%" thing and/or mutual funds are missing the forest for the trees.