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Message
re: Dave Ramsey
Posted on 3/19/15 at 2:13 pm to Croacka
Posted on 3/19/15 at 2:13 pm to Croacka
Yea, I got a problem with taking money out of a mutual fund making 10% interest to pay off a loan with 5% interest.
Maybe I'm not seeing it right, I know the Idea is to be debt free, but that seems like giving away money.
Another one is, I have say $25,000 cash on hand in the bank, Now he says I should draw that down to $1000 and use the rest to pay off any debt, then start to built it back up? That's my emergency fund. I'm screwed if I lose my job or blow a car up after doing that. IDK it scares me not have that safety net.
Maybe I'm not seeing it right, I know the Idea is to be debt free, but that seems like giving away money.
Another one is, I have say $25,000 cash on hand in the bank, Now he says I should draw that down to $1000 and use the rest to pay off any debt, then start to built it back up? That's my emergency fund. I'm screwed if I lose my job or blow a car up after doing that. IDK it scares me not have that safety net.
2
Posted on 3/19/15 at 2:17 pm to craig8sm
quote:
Another one is, I have say $25,000 cash on hand in the bank, Now he says I should draw that down to $1000 and use the rest to pay off any debt, then start to built it back up?
Yes. And it will shock you at how quickly that happens.
When would you pay down debt? If you had $50k? What if something happens? $100K? What if something happens?
I think the system is old enough now, inflation and whatnot, but I say to the youngsters, "If $1000 doesn't make you comfortable, then do $2000 - then attack that snowball."
Consumer debt is wage/debt slavery - period - I was knee deep in it for over 20 years - paycheck-to-paycheck. I'm free of it and good riddance. I'm off that treadmill - 7 years until student loans and mortgage are gone (unless I get a HUGE promotion - :knockwood: - in which case I'll be debt free in 5 years, except for a mortgage on a new house).
This post was edited on 3/19/15 at 2:18 pm
Posted on 3/19/15 at 2:21 pm to craig8sm
quote:
Another one is, I have say $25,000 cash on hand in the bank, Now he says I should draw that down to $1000 and use the rest to pay off any debt, then start to built it back up? That's my emergency fund. I'm screwed if I lose my job or blow a car up after doing that. IDK it scares me not have that safety net.
I feel the exact same way
1000 for emergencies isn't much even though he thinks you can build it back up quickly once all your debt is gone
I don't have any extremely bad debt so I'll just keep paying it down normally and try not to add any unnecessary major purchases
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