- 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
Dave Ramsey Facebook Tip Of the Day
Posted on 10/20/22 at 4:25 pm
Posted on 10/20/22 at 4:25 pm
I somewhat agree to a certain point but never buying a new car til you have $1 million net worth. 
quote:
The average new car payment is OVER $600 PER MONTH. Invested well, that payment over the course of
20 years would grow to about half a million dollars. After 30 years, it would turn into over 1.5 million! That
new car payment is weighing people down and it’s NOT worth it. When buying a car, always pay with CASH. Until you’ve built up a net worth of at least a million dollars, only buy used cars. This strategy helps to prevent too much of your net worth being tied up in
assets that are going down in value. Remember, no one ares what kind of car you drive, except for YOU. Put your long-term goals first, not the short-lived thrill of impressing people you don’t even know for 10 seconds at a stoplight.
20
Posted on 10/20/22 at 4:35 pm to pioneerbasketball
Never buy a new car period makes sense. Beaters make the most financial sense.
Posted on 10/20/22 at 5:10 pm to pioneerbasketball
quote:
Invested well, that payment over the course of
20 years would grow to about half a million dollars.
Under democratic rule?
Posted on 10/20/22 at 6:04 pm to pioneerbasketball
You can't make every decision in life based on what makes the most financial sense, You would live a miserable life. If a new car is what gets you going, get a new car. If its a hobby, enjoy your hobby. Being happy is worth more than money.
My biggest issue with Dave Ramsey is he assumes everyone can't handle using credit responsibly. Just because he couldn't handle credit doesn't mean other people can't handle it. I put EVERYTHING on a CC and still manage to have more money than I started with at the end of the month and I pay everything in full every month. I know the CC points aren't much but I got around $800 last year that I wouldn't have had if I paid cash and I didn't pay a dime in interest.
My biggest issue with Dave Ramsey is he assumes everyone can't handle using credit responsibly. Just because he couldn't handle credit doesn't mean other people can't handle it. I put EVERYTHING on a CC and still manage to have more money than I started with at the end of the month and I pay everything in full every month. I know the CC points aren't much but I got around $800 last year that I wouldn't have had if I paid cash and I didn't pay a dime in interest.
Posted on 10/20/22 at 6:33 pm to pioneerbasketball
Driving a 7-yo and 12-yo car now. Purchase nice, new vehicles. Finance at 0-1.9%. After paid off, we invest the note until we replace the car (~7-9 years later).
The thinking...discipline...if can afford the note when it is owed, can also afford to invest it.
Have done this many times over, and this has turned out well for us.
Not in complete agreement with Dave's philosophy on debt (if disciplined, debt is your friend!). However, in this case, I get close to agreeing with Dave. We still use low interest financing to purchase cars and yield a lot of $ from this cycle.
...while enjoying nice vehicles.
We are ok with not having a new vehicle every 3-5 years.
The thinking...discipline...if can afford the note when it is owed, can also afford to invest it.
Have done this many times over, and this has turned out well for us.
Not in complete agreement with Dave's philosophy on debt (if disciplined, debt is your friend!). However, in this case, I get close to agreeing with Dave. We still use low interest financing to purchase cars and yield a lot of $ from this cycle.
...while enjoying nice vehicles.
We are ok with not having a new vehicle every 3-5 years.
Posted on 10/20/22 at 6:42 pm to armsdealer
quote:
Being happy is worth more than money
Agree with this!
Some of that happiness requires money.
Most of it really does not (for us).
Never understood putting money at the center of life. On the other hand, hard to imagine achieving happiness without it.
Cars are it for us. Experiences are and where we tend to spend ours...
Posted on 10/20/22 at 6:56 pm to 21JumpStreet
quote:
Never buy a new car period makes sense. Beaters make the most financial sense.
BS!
Posted on 10/20/22 at 7:08 pm to pioneerbasketball
quote:
I somewhat agree to a certain point
Same here...
The point not made is if you're buying a NEW car, you probably need a car.
So 100% great idea to not buy a NEW car for $600+ a month, buy you gotta buy something... and you're gonna give up money SOMEWHERE to buy that car...
Used with a note
Save for awhile, pay cash, no note.
Either way you're laying out, let's say, $350 a month.
So $600 - $350 = $250 you could invest... STILL a great financial decision, but not quite what is advertised.
Posted on 10/20/22 at 8:16 pm to Meauxjeaux
Who the frick has a million cash or "net worth" to go pay cash for a new vehicle.
Like others have said, $600 is way too much for a car note.
Used cars aren't much better.
I'd love to have a nice vehicle, but I can't afford it.
LOL
Like others have said, $600 is way too much for a car note.
Used cars aren't much better.
I'd love to have a nice vehicle, but I can't afford it.
LOL
This post was edited on 10/20/22 at 8:18 pm
Posted on 10/20/22 at 8:35 pm to Turf Taint
quote:
The thinking...discipline...if can afford the note when it is owed, can also afford to invest it.
Going to try this
Interest rate so low you never buy one cash?
Posted on 10/21/22 at 7:35 am to pioneerbasketball
Where does this magician, this seer, obtain his knowledge and numerology that assists his followers to make monetary policy decisions in their lives?
And, I was informed by his greatness that one should never purchase a new car ever?
Wha happened?
And, I was informed by his greatness that one should never purchase a new car ever?
Wha happened?
Posted on 10/21/22 at 7:44 am to pioneerbasketball
Buying a new vehicle only makes sense if you are using for a business and have a good accountant, to depreciate the purchase.
Personal cars are a dead asset, since they do not throw off earnings.
Personal cars are a dead asset, since they do not throw off earnings.
This post was edited on 10/21/22 at 7:45 am
Posted on 10/21/22 at 8:07 am to pioneerbasketball
I used to listen to DR regularly - not for the advice - but because he's such a kunt to people, and it's actually pretty funny.
Anyway, his mistake is assuming that most people will take that $600 "savings" and invest it at all. Plus, used cars are an enormous rip off right now; you may as well go ahead and spend the extra $2k and get a new one. Sometimes, used ones are more expensive than new ones. Which makes me wonder - is this tip from three years ago? Or has he accumulated so much money he hasn't kept up with the things that plague us normies?
Anyway, his mistake is assuming that most people will take that $600 "savings" and invest it at all. Plus, used cars are an enormous rip off right now; you may as well go ahead and spend the extra $2k and get a new one. Sometimes, used ones are more expensive than new ones. Which makes me wonder - is this tip from three years ago? Or has he accumulated so much money he hasn't kept up with the things that plague us normies?
Posted on 10/21/22 at 8:12 am to 21JumpStreet
My Corolla I bought slightly used was one of the best decisions I ever made.
Cheap on gas
Cheap payments
Great amount of equity once it was paid off, even during loan period
Never once had major mechanical issues
Cheap on gas
Cheap payments
Great amount of equity once it was paid off, even during loan period
Never once had major mechanical issues
Posted on 10/21/22 at 8:33 am to pioneerbasketball
Dave gives good advice to people who are poor, terrible with money, or both. His advice can, and should, be ignored by anyone who doesn't fall into either category.
Posted on 10/21/22 at 9:02 am to pioneerbasketball
Does $600 a month invested really work out to $500k in 20 years or $1.5M in 30 years? Anyone else check that math?
Posted on 10/21/22 at 9:02 am to pioneerbasketball
quote:
After 30 years, it would turn into over 1.5 million!
Who the hell pays $600/month for 30 years for a car?!
Posted on 10/21/22 at 9:08 am to lsu13lsu
quote:
Does $600 a month invested really work out to $500k in 20 years or $1.5M in 30 years? Anyone else check that math?
You would need to average 10% return over that entire time period.
Looking at the S&P 500 for the years 1992 to 2021, the average stock market return for the last 30 years is 9.89% (7.31% when adjusted for inflation).
Posted on 10/21/22 at 9:46 am to seawolf06
quote:
You would need to average 10% return over that entire time period.
Looking at the S&P 500 for the years 1992 to 2021, the average stock market return for the last 30 years is 9.89% (7.31% when adjusted for inflation).
That's another thing I hated when I would listen to DR. He would use 10% in his calculating people's retirement projections. That's pretty damn aggressive for a guy who is insanely conservative about saving.
He also tells you which funds you should put your money in for retirement then also says you need a fiduciary. Why do I need a FA if you're telling me exactly where to put my money? It makes no sense. He's got to be getting kickbacks in some way for those advisors that he recommends.
Posted on 10/21/22 at 10:04 am to pioneerbasketball
He’s not completely wrong but even used cars are ridiculously overpriced right now. People can’t just walk everywhere. They need to have a car.
Page 1 of 4
Popular
Back to top
Follow TigerDroppings for LSU Football News