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Message
re: Dave Ramsey's advice is awful
Posted on 1/21/18 at 7:27 pm to 3morereps
Posted on 1/21/18 at 7:27 pm to 3morereps
I will admit that I used to listen to Ramsey pretty regularly. I had some debt with student loans, credit card debt and wife's car. By listening to him, it gave me a baseline to get my finances in order. It may have just been the time in your life when you look at your finances and make changes, but overall I did learn a lot from him.
Now I don't listen to him because I've learned a lot more over the years' on my own and have no debt. I do think there is some cheesiness to his show with the people claiming they have paid off $400k in 47 months, that part i never really got excited about.
I wouldn't say his advice is awful. There are a lot of people that have made their own financial situations better because of him.
Now I don't listen to him because I've learned a lot more over the years' on my own and have no debt. I do think there is some cheesiness to his show with the people claiming they have paid off $400k in 47 months, that part i never really got excited about.
I wouldn't say his advice is awful. There are a lot of people that have made their own financial situations better because of him.
0
Posted on 1/22/18 at 1:54 am to EA6B
quote:
Read Jag_Warrior's post above, there are a lot of people that might be considered financially sound that could dramatically improve their financial position by following Dave's plan as opposed to what they are doing. I also once worked in banking and sat down regularly with people that were "financially sound" only because their income was high enough to absorb the results of having no financial plan.
If your only goal in life is wealth appreciation, perhaps, if you are "financially sound" because of this high income why not enjoy life and not worry about it?
You only get one trip round this block and having a pile of cash left over at the end gets you no bonus points.
Lets just say I have almost zero debt and more than adequate savings along with a very good income, why should I GAF about budget and what i spend my money on?
Posted on 1/22/18 at 12:23 pm to OnTheBrink
I’ve just started listening to him with hopes of really starting to get a hold of my finances. I don’t even really have a budget but I want to start saving and allocating what I can.
Starting from step one, what do you boys advise that goes against what ol Dave has to say?
I’m most interest in something I can start pumping a couple of grand into a year and not touch until retirement.
Starting from step one, what do you boys advise that goes against what ol Dave has to say?
I’m most interest in something I can start pumping a couple of grand into a year and not touch until retirement.
Posted on 1/22/18 at 12:30 pm to Kvothe
quote:
what do you boys advise that goes against what ol Dave has to say
That is literally the point of the thread you just posted in.
Posted on 1/22/18 at 12:42 pm to cave canem
quote:
Lets just say I have almost zero debt and more than adequate savings along with a very good income, why should I GAF about budget and what i spend my money on?
Because even if just a 1000 bucks a month that would normally fall through the cracks with no accountability had been invested at even a moderate return, you could be looking at a extra million bucks or more after 35 years. If you know where your money is going and are fine with that then no problem, but most people have no idea where a lot of their money goes, and are appalled once they start a budget and see what they were throwing away.
This post was edited on 1/22/18 at 1:01 pm
Posted on 1/22/18 at 1:04 pm to ATLdawg25
quote:
That is literally the point of the thread you just posted in.
Hm. I’ll trade you reading comprehension help for financial help.
Posted on 1/22/18 at 1:19 pm to 3morereps
quote:
while im hurdling their arse with 24% in the market.
What goes up, must come down. In all seriousness, you fully fund your retirement before you throw extra money at the mortgage under the baby steps, and he does endorse a equities-heavy investing strategy. Let's not pretend he's telling people to bury money in the ground.
The advice is fine for those with fundamental problems. Those with money problems.
People who are already highly proficient at budgeting, planning, etc., typically don't look for/need the advice, because they don't have the requisite problems to seek that advice.
And, you can't lose money on interest you don't pay on money you don't borrow. That's just a fact. Opportunity costs are just that - if you're adroit enough to use ALL your money, even that for your personal living situation, in a business context, fine - go forth and do great things.
But, don't make fun of/judge folks who are sincerely doing their best. FFS - they're following a plan - that's half the battle.
This post was edited on 1/22/18 at 1:20 pm
Posted on 1/22/18 at 5:41 pm to cave canem
Considering the car collection that Ramsey has, I don't believe that he suggests that people shouldn't enjoy their money. On some issues, he is rather extreme. Agreed. But no, he doesn't say to live on beans and rice and never take a vacation or buy a Jaguar F-Type (if it's WITHIN your means). It's not just about accumulating wealth. For those who have families, it's more about providing an example and a lasting legacy. I don't have kids, but I do understand and agree with that.
And I'll ask this (and understand that I'm not doing it in a smart @$$ way), if you don't do any sort of budget, how would you know that your savings is "adequate", as you say? By what measurement system are you coming to this conclusion?
Anyway, once you sit down with a financial planner as you get closer to retirement, if he's worth his salt, he will discuss your estimated expenses, and the subject of whether or not your estimates are based on past budgets or just pulled out of thin air, will come up.
People who spend based on "I want what I want, and I want it NOW"/immediate gratification often don't find the happy ending that they expect. I know this because I was engaged to a person/princess like this. She was close to a Salma Hayek clone back then, yet I don't miss her one tad bit.
But, we all have to play the game as we see fit.
And I'll ask this (and understand that I'm not doing it in a smart @$$ way), if you don't do any sort of budget, how would you know that your savings is "adequate", as you say? By what measurement system are you coming to this conclusion?
Anyway, once you sit down with a financial planner as you get closer to retirement, if he's worth his salt, he will discuss your estimated expenses, and the subject of whether or not your estimates are based on past budgets or just pulled out of thin air, will come up.
People who spend based on "I want what I want, and I want it NOW"/immediate gratification often don't find the happy ending that they expect. I know this because I was engaged to a person/princess like this. She was close to a Salma Hayek clone back then, yet I don't miss her one tad bit.
But, we all have to play the game as we see fit.
Posted on 1/22/18 at 9:32 pm to EA6B
quote:
Because even if just a 1000 bucks a month that would normally fall through the cracks with no accountability had been invested at even a moderate return, you could be looking at a extra million bucks or more after 35 years. If you know where your money is going and are fine with that then no problem, but most people have no idea where a lot of their money goes, and are appalled once they start a budget and see what they were throwing away.
Nice way to 100% dodge around the point of my post with this.
Posted on 1/22/18 at 9:51 pm to 3morereps
Post Dave Ramsey’s net worth
Then post your be worth and we will decide who’s doing better?
ETA- a quick search says he’s worth 55 M plus.
Then post your be worth and we will decide who’s doing better?
ETA- a quick search says he’s worth 55 M plus.
Posted on 1/22/18 at 10:01 pm to cave canem
quote:
Nice way to 100% dodge around the point of my post with this.
You basically said "live now, enjoy life, you have enough savings, and no debt, DGAF about budgeting, what is the point of dying with a pile of cash."
I said " If you know where your money is going and are fine with that then no problem, but most people have no idea where a lot of their money goes, and are appalled once they start a budget and see what they were throwing away."
That seems 100% applicable to your philosophy of personal finance.
Posted on 1/23/18 at 6:18 am to UnoMe
quote:
ETA- a quick search says he’s worth 55 M plus.
Which proves he is a highly effective snake oil salesman, not that he is a good financial planner.
He may very well be both but the fact is he is a good actor and salesman before anything else, however his cross marketing and sorting out that churches would glom onto anyone who uttered Jesus and paid attention to them are his biggest money makers.
Dave was a self admitted failure before he started selling self help books to church circle groups, not that there is anything wrong with that.
Posted on 1/23/18 at 7:42 am to EA6B
quote:
Read Jag_Warrior's post above, there are a lot of people that might be considered financially sound that could dramatically improve their financial position by following Dave's plan as opposed to what they are doing. I also once worked in banking and sat down regularly with people that were "financially sound" only because their income was high enough to absorb the results of having no financial plan.
I read it. It sounds like Jag is financially sound and has almost a paragraph of things he does, things financially sound people do, that differ from Ramsey’s steadfast advice. Of course a few things will align, because Ramsey’s advice has bits and pieces that fit any good plan, but at the end of the day, leverage from cheap money has made me and many other sound financial individuals far more wealth than anything that was possible using Dave Ramsey’s advice.
As I’ve always said, listen to his show for a week straight. If you can’t relate or understand the awful decision making by one of the sob story callers over a week long period, his advice is probably not suited for you. If you can relate to one or more, follow his advice like gospel, but still your due diligence on his endorses providers. He endorses who pays him the most to do so.
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