re: Dave Ramsey

quote:

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I don't do everything he says exactly as he says it, but I did pay off our first home in 7 years and now we are sitting pretty because of it.

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I see nothing at all wrong with that. But being an old Econ major, I always think about opportunity cost. What I mean is, if a bank will give me a certain sum of money to buy a house (or really, any needed asset), at an interest rate far below what my expected rate of return would be on a reasonably safe investment, should I pay the house off and return their money, by using my money, or keep their money and fund my investment with my money?

The answer may not be as simple as it seems, as circumstances and comfort level also play into it. There's no "one size fits all" answer, and Dave *may* play into that way of thinking just a little bit. But I'm not broadly criticizing him, because while you may not maximize your investment growth by paying off a mortgage with investable dollars, you're not going to be rolling into bankruptcy court because of it either.

Even though I have no use for Orman's schtick, whether it's Girlfriend or Ramsey or (my preferred choice) Clark Howard, the important thing is that the people who are taking the time to listen to them are probably more likely to get themselves out of financial trouble, or not get into financial trouble in the first place. And in a nation that's been overcome by financial ignorance and is being swallowed by debt (personal and national), I can't criticize any of them too harshly.