re: Dave Ramsey Facebook Tip Of the Day

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Does $600 a month invested really work out to $500k in 20 years or $1.5M in 30 years? Anyone else check that math?

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The stock market only goes down


You’d be better off buying 600 bucks worth of bullets every month for when society collapses in the next few years

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Interest rate so low you never buy one cash?

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We invest "the note" in Vanguard index mutual funds (4-7% return 3-5 years avg), factoring in ugly bear market we are currently in, so can be higher. Therefore, prefer to use auto financing's no/low interest money.

However, if auto financing interest rates rise, the positive spread between investment return (4-7%) and rising auto financing interest is eroded and may make paying cash more attractive.

Will be buying new care in next couple of years so will see.

Good luck!

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Buying a new vehicle only makes sense if you are using for a business and have a good accountant, to depreciate the purchase.

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You can depreciate used cars as well. Even bonus depreciation.

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My biggest issue with Dave Ramsey is he assumes everyone can't handle using credit responsibly

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If you can handle credit responsibly, you probably don't need Dave Ramey's advice.

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 because he couldn't handle credit doesn't mean other people can't handle it.

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His target audience is people that can't handle credit, or people that want to get out of that hole forever. I think he's very right on alot of things, but sometimes there are better ways to do it. He'll even say it sometimes. He won't outright say it, but you can read between the lines.

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My biggest issue with Dave Ramsey is he assumes everyone can't handle using credit responsibly.

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That’s his market. Not people that have always been financially responsible for the most part, but problem credit users that can’t control themselves

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Looking at the S&P 500 for the years 1992 to 2021

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Why stop in 2021?

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You can't make every decision in life based on what makes the most financial sense, You would live a miserable life.

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I agree with this a lot and I'm a financial person. RV's, boats, and even kids never make financial sense. But if they make you happy, then enjoy them. Just make an adjustment somewhere else.

PS: I haven't bought a new car in about 20 years.

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If you can get a very low or 0% interest rate

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yourself and another poster have thrown out these insanely low interest rates in this thread, serious question, can anybody actually still get that?

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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.

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This is also true. I’m 31 and if I never went out for drinks, chased women, took vacations, bought a ski boat, fishing boat, etc I’d have hundreds of thousands saved up. But I’d also have lived a boring arse life during the best years of my life and missed out on loads of fun with friends, experiencing different women, seeing and doing things most people don’t get to. Those memories are worth more to me than any dollar amount because you only get one shot at life and I’d rather live it and enjoy it and die with 50k in my bank account than be a multi millionaire alone, bored, and regretting never doing things because I was too worried about making money.