re: Dave Ramsey Facebook Tip Of the Day

And for a large portion of this country he is perfect. I mean look at the student loan fiasco. I am guessing if you post on eh Money Talk then you most likely wouldn't be a good target for him. But, I am telling y'all most of the country shouldn't take on debt even at 0% interest. It is sad.

Ramsey is the equivalent of a nutrionist who tells people not to drink sodas or eat fast food. Basic shite but unfortunately our country is so dumb the advice would benefit 70% of the population.

quote:

---

The kicker to this statement though is 600 a month invested well. Invested where? High risk high reward stocks? Mutual funds? What? How does this average Joe, if he decides to follow this advice go about investing that 600 a month “well” to ensure these results?

---

You jump on Ramseysolutions.com and click on financial advisor ELP. You interview 2 or 3 in your area and pick the one that has the heart of a teacher and invest with them. Might want to click on Zander Insurance while you're on there and make sure you're getting the best rate for your auto and homeowner's insurance.

Am I doing it right?

quote:

---

Never buy a new car period makes sense. Beaters make the most financial sense.

---

I bought a new car in 2018 and its value is currently higher than what I paid for it in 2018

No. Have a separate fund. I believe the term is a "sinking fund." Set aside money monthly in a non-retirement fund for purchases that you know will need to be made in the future.

quote:

---

Who the hell pays $600/month for 30 years for a car?!

---

My dad went my entire life with always have a note. He would keep something for a few years and then trade it in on a new one. Don't think he ever bought tires.

I've run the math all different ways and up until covid, it was best to buy a used car, one year old, with 10-15k miles. Keep it about 3 years and then sell at 75k miles. It still has decent value to apply to the next car at that point.

The kicker though is rarely will that car have had any maintenance issues at all.

Follow Dave's advice and you are still going to pay a decent amount to get a car that is 6-8 years old, with high miles and the maintenance bills will start adding up. Follow that up with it being worth basically nothing when you get ready to get rid of it.

Just have some discipline and don't go buying high end cars and you will be just fine.

quote:

---

I've run the math all different ways and up until covid, it was best to buy a used car, one year old, with 10-15k miles. Keep it about 3 years and then sell at 75k miles. It still has decent value to apply to the next car at that point.

---

Have you run buying new, no/low interest (albeit these days may now be behind us), and keeping it for 12-13 years, with 5 years payoff loan and 7-8 years investing the monthly note at 4-6% return?

Enjoy new vehicle
Use low cost financing
7-8 years note invested + return > original value of vehicle, and uses time value $ towards next vehicle

Curious how that math compares to your math

Of course, sacrifice is driving 10-12 year old vehicle to enable increasing $ yield to next vehicle.

quote:

---

Have you run buying new, no/low interest (albeit these days may now be behind us), and keeping it for 12-13 years, with 5 years payoff loan and 7-8 years investing the monthly note at 4-6% return?

---

The past 10 months is going to screw with most "return" models.

I'm not knocking the method. Just pointing out the numbers when calculated at all time highs or 3 year lows make generalizations about "return" just that. Very loose generalizations.

Slightly turning this another direction but what becomes of the car market when the auto makers have to turn out all of these vehicles sitting on huge storage lots waiting for chips, etc? I keep seeing these lots pop up everywhere. Eventually these vehicles have to be turned out, and compete with the new vehicles being made.