re: How many of you follow Dave Ramsey's advice for everything?

People posting on a money talk message board in the middle of the day on a weekday will inherently be better with than money/finances than 95% of the rest of America so of course DR’s advice will be elementary. It’s the other 95% that don’t know what an interest rate is or what a balloon loan is that need the advice.

Dave’s advice is absolutely a good baseline starting point for everyone. The more risk you want to take (from having knowledge about finances), the further away from it you can go.

Dave is speaking to average debt consumers, and he offers them sage advice. If one cannot handle low interest debt (or debt in general), Dave is their guy.

However, if, for example, your 30-year mortgage is 2.8% and let's say you have the equivalent cash invested, with expected earning 7+%, over mortgage-equivalent period, Dave is not your guy...in my opinion.

(risk / return rears itself again in these pesky financial decisions)

For some, "peace of mind" of being debt free outweighs the alternative thousands/millions of dollars to use other people's money to make money.

It is personal. But, Dave is not for everyone, especially those who use other people's money to make money.

Most people would say that haivng 7% rate on a depreciating asset is not a good thing.

I have no issue with Dave's ideas regarding not running credit card debt and paying interest. If you pay it off each month, I don't understand the issue with credit cards.

As far as cars... the reality is that unless you are in college, a $1000 beater car just isn't realistic anymore. A 48 month loan on a reliable car makes a lot of sense for a lot of people. But instaed... they get a 84 month loan on a car that is way more expensive than they need.

There's no gray area with DR, but life is spent mostly in the gray area.

quote:

---

j1897 is a moron. Ignore everything he says.

---

Says the latent GME pump and dump troll. You hyping pulsechain as well?

I would pay that down ASAP. You're failing to account for risk. You are too heavily weighted in your employer's stock. You are dependent on them for income and investment growth. Unless you are very certain that company is the best place for your $ it is best to invest elsewhere.

You will likely pay capital gains eventually so might as well bite the bullet. We're only talking $18k ($24k - $6k down payment). Besides, you only pay capital gains tax on the gains not basis. If the entire contribution was held over 1 year and tripled in value you'd only pay $900 taxes (15% of $6k basis.) In reality some shares have probably grown little or none. You may want to avoid selling shares you've held less than a year though if they've had much growth.

Moving forward, consider selling after the 1 year mark so you only pay lower long term capital gains rate on minimal growth. Then reinvest in something else (like an index ETF) to reduce your concentration in employer stock.

quote:

---

We're a debt driven economy, no idea why someone would brag about that. He's not different than Dan Lok or Grant Cardone.

---

Im not bragging im saying i listened to Dave and got out of debt. I think he helps alot of people. You say hes a moron i say hes not.

I was really bad with finances with I was younger and got myself into a LOT of debt. I started listening to Dave and watching Suze Orman, buckled down and did a hybrid approach between the 2 of them. I wasn't 100% all in, rice-and-beans, as Dave suggests, but I certainly got very focused on my financing, my debt and getting myself out of it. It took several years, but I got it done. I now live 100% debt free other than my mortgage, which I am actively working on having paid off in the next 6-7 years. After years of drowning in debt, there is definitely a freedom and liberation that comes from being debt free. Perhaps paying down debt (especially low interest debt) vs. investing is not always the best decision on paper, but the peace of mind that comes from being debt free is worth it to me.

quote:

---

If you pay it off each month, I don't understand the issue with credit cards.

---

His philosophy is that his debit card works just like your credit card. And there’s some kind of study that 60% or so of people tend to spend more of “someone else’s money” than their own, and their good intentions of paying it off the following month disappear because they ended up spending too much. It’s all about discipline I guess.

quote:

---

0.9% on my last vehicle purchase than the 6% I’m hearing about recently

---

I got 4.45% on Friday for a used truck. I'll pay it off if inflation slows, but I'll take it for now.

He claims he did. I’ve heard him say that he bought a bunch in the crash of 2008 that now have appreciated considerably.