- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Dave Ramsey
Posted on 3/19/15 at 2:41 pm to LSUAfro
Posted on 3/19/15 at 2:41 pm to LSUAfro
The envelope thing makes me giggle. (Hey, if it works for you, forget about me.) But how do people run businesses, sit on nonprofit or public body oversight boards, raise money for good causes, manage money for others, act as treasurer of a club or organization, or do anything requiring basic money management skills yet think that actual hard cash in an envelope is the way to manage your personal finances?
OK, it might be good advice for people who struggle with abstract thinking, or who have never seen a spreadsheet, or who have zero self control. But for the thoughtful, non-spendthrift person, it's a gross oversimplification of money matters. If you can manage not to overspend out of an envelope, you can manage not to overspend out of a budget category on your monthly spreadsheet. Whether the money is in your hand (envelope) or in the bank is simply a conceptual difference.
But I get that so many Americans struggle mightily with abstract thinking. Depressing, but true. I guess that's why he's so popular. We fail to teach monetary math in the middle grades, we fail to teach consumer math in junior high, and we fail to teach high schoolers about compound interest, the costs of borrowing, and basic investing concepts. Hence the need for Ramsey.
OK, it might be good advice for people who struggle with abstract thinking, or who have never seen a spreadsheet, or who have zero self control. But for the thoughtful, non-spendthrift person, it's a gross oversimplification of money matters. If you can manage not to overspend out of an envelope, you can manage not to overspend out of a budget category on your monthly spreadsheet. Whether the money is in your hand (envelope) or in the bank is simply a conceptual difference.
But I get that so many Americans struggle mightily with abstract thinking. Depressing, but true. I guess that's why he's so popular. We fail to teach monetary math in the middle grades, we fail to teach consumer math in junior high, and we fail to teach high schoolers about compound interest, the costs of borrowing, and basic investing concepts. Hence the need for Ramsey.
4
Posted on 3/19/15 at 2:55 pm to hungryone
quote:
The envelope thing makes me giggle. (Hey, if it works for you, forget about me.) But how do people run businesses, sit on nonprofit or public body oversight boards, raise money for good causes, manage money for others, act as treasurer of a club or organization, or do anything requiring basic money management skills yet think that actual hard cash in an envelope is the way to manage your personal finances?
OK, it might be good advice for people who struggle with abstract thinking, or who have never seen a spreadsheet, or who have zero self control. But for the thoughtful, non-spendthrift person, it's a gross oversimplification of money matters. If you can manage not to overspend out of an envelope, you can manage not to overspend out of a budget category on your monthly spreadsheet. Whether the money is in your hand (envelope) or in the bank is simply a conceptual difference.
But I get that so many Americans struggle mightily with abstract thinking. Depressing, but true. I guess that's why he's so popular. We fail to teach monetary math in the middle grades, we fail to teach consumer math in junior high, and we fail to teach high schoolers about compound interest, the costs of borrowing, and basic investing concepts. Hence the need for Ramsey.
I could be mistaken here, but it seems that your entire post may be just a unabridged version of
I'm smart and you stupid.
Sorry if I misinterpreted anything.
Posted on 3/19/15 at 3:06 pm to hungryone
quote:
(Hey, if it works for you, forget about me.)
Because swiping a debit card and entering a pin number does not cognitively resonate with a dwindling finite resource. Yes, you can consciously think about these things and run the actual balance down on your "smartphone" or whatever you kids use - but you must have some mechanism or your brain doesn't process in real-time that you're spending money you don't have.
You see it - in hindsight - on the bank statement, which is how the envelopes work in the first place. You take it out of the bank and put it in an envelope until it is time to spend - that way you don't spend the same money twice.
quote:
do anything requiring basic money management skills yet think that actual hard cash in an envelope is the way to manage your personal finances?
A. I'm not saying it is the only way, and
B. I'm not saying I don't use OTHER tools, but it is a way to avoid having 20 separate accounts, bookeepers, signatories, auditers, etc., to keep money from bleeding out, misspent, etc.
quote:
But for the thoughtful, non-spendthrift person, it's a gross oversimplification of money matters.
It's a complex world and simplification has a certain beauty to it.
This post was edited on 3/19/15 at 3:07 pm
Posted on 3/20/15 at 12:23 pm to hungryone
quote:
The envelope thing makes me giggle. (Hey, if it works for you, forget about me.) But how do people run businesses, sit on nonprofit or public body oversight boards, raise money for good causes, manage money for others, act as treasurer of a club or organization, or do anything requiring basic money management skills yet think that actual hard cash in an envelope is the way to manage your personal finances?
The advice is not for those people, its for the mouth breathers that cannot live on what they make. This strategy works. This is why he pushes it.
I think Dave Ramsey gives out some really good advice, and some subpar advice. But his system helps people live within their means, so I think its great.
What I really loathe is that christian bullshite he inserts into it. Why? Its not relevant IMHO.
But I have steered my friends to ramsey b.c I believe his system is a great way to getting started for financial health.
Posted on 3/20/15 at 12:54 pm to hungryone
quote:
OK, it might be good advice for people who struggle with abstract thinking, or who have never seen a spreadsheet, or who have zero self control.
You just described 60% plus of America.
I view Dave Ramsey as great for someone just out of high school/college. It is great advice to keep your head above water. Once one is not living pay day to pay day (ie not loaded down with consumer debt) Ramsey's advice becomes less effective.
By less effective I mean while building net worth in mutual funds or paid for real estate will continue to improve someone's net worth, a person misses out on potential homeruns financially speaking.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News