Poll

What baby step are you up to?

$1,000 Rainy day fund
Pay off all debt using the debt snowball
3 to 6 months of expenses in savings
Invest 15% of household income into Roth IRAs and pre-tax retirement (401k Etc.)
College /Simcha fund for children
Pay off home early (prepay mortgage)
Build wealth and give!

Author Topic: Dave Ramsey Plan  (Read 52744 times)

Offline 12HRS

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Re: Dave Ramsey Plan
« Reply #180 on: July 24, 2020, 04:37:41 PM »
Is this MS plan a side hustle to increase income or away of teaching living within your means and saving?

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Re: Dave Ramsey Plan
« Reply #181 on: July 24, 2020, 05:06:29 PM »
So here's an argument for you. The plan that saves you money is good, as it improved on your previous situation and you were able and motivated to take action on it. The other plan might be much better, but for whatever reason you might find it hard to act on.

All that matters is action (see Richard Russell article I posted above). There can be flaws in the program, it might be presented by a conman, etc. etc. and there might be plenty of theoretically better plans, but it's the plan that gets one to take action towards improving their situation which is what counts.

Good vs better or Good vs bad?
Feelings don't care about your facts

Offline zh cohen

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Re: Dave Ramsey Plan
« Reply #182 on: July 24, 2020, 06:06:45 PM »
For those who are interested in the research regarding the effectiveness of the debt snowball.
https://www.forbes.com/sites/robertberger/2017/07/20/debt-snowball-versus-debt-avalanche-what-the-academic-research-shows/

In the example they gave, you save $233 of interest over 4.5 years by paying based on interest rate

That is without taking into account the psychological benefits of the snowball approach, which
1 - makes it more likely that you'll stick to it.
2 - usually leads to paying more each month and finishing sooner.

Obviously if you don't see being debt free as a positive goal, you won't appreciate those benefits.

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Re: Dave Ramsey Plan
« Reply #183 on: July 24, 2020, 06:14:20 PM »
For those who are interested in the research regarding the effectiveness of the debt snowball.
https://www.forbes.com/sites/robertberger/2017/07/20/debt-snowball-versus-debt-avalanche-what-the-academic-research-shows/

In the example they gave, you save $233 of interest over 4.5 years by paying based on interest rate

That is without taking into account the psychological benefits of the snowball approach, which
1 - makes it more likely that you'll stick to it.
2 - usually leads to paying more each month and finishing sooner.

Obviously if you don't see being debt free as a positive goal, you won't appreciate those benefits.
The plan that is best is the plan that one keeps to
Feelings don't care about your facts

Offline zh cohen

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Re: Dave Ramsey Plan
« Reply #184 on: July 24, 2020, 06:20:38 PM »
The plan that is best is the plan that one keeps to

Even if it's criminal?
/Sarc

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Re: Dave Ramsey Plan
« Reply #185 on: July 24, 2020, 06:53:07 PM »
Now a question for you;
Do you recognize the value of motivation in making it more likely that a person reach their goals?
Yes but don't put much value in it.
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline grodnoking

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Re: Dave Ramsey Plan
« Reply #186 on: July 24, 2020, 07:10:35 PM »
Yes but don't put much value in it.
שלא לשמה בא לשמה
I'm not who you think I am.

Offline zh cohen

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Re: Dave Ramsey Plan
« Reply #187 on: July 25, 2020, 11:16:04 PM »
Yes but don't put much value in it.

Why?

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #188 on: July 25, 2020, 11:29:07 PM »
Why?
The goal is to pay off your debt. Say you owe 20k. Paying off a card with a 1k balance or paying 1k on a card with a 10k balance will leave you with 19k left to pay. That is the motivation that should be taught. Paying a card off with low interest instead of a high interest card is just wrong. It will take you longer to pay off your 20k debt.

At CB their main goal is credit repair. The progress/motivation is your FICO score. Getting inquires to zero can be seen as a victory but meaningless in the big picture.
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

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Re: Dave Ramsey Plan
« Reply #189 on: July 25, 2020, 11:54:14 PM »
The goal is to pay off your debt. Say you owe 20k. Paying off a card with a 1k balance or paying 1k on a card with a 10k balance will leave you with 19k left to pay. That is the motivation that should be taught. Paying a card off with low interest instead of a high interest card is just wrong. It will take you longer to pay off your 20k debt.

At CB their main goal is credit repair. The progress/motivation is your FICO score. Getting inquires to zero can be seen as a victory but meaningless in the big picture.
Keep in mind that Dave Ramsey is advocating to no longer have debt and the FICO score is not a great motivator for someone who will no longer be having ccs. Many of these people will have difficulty keeping out of the cc trap and truly are people who the only way out for them is to not have any ccs at all.
Feelings don't care about your facts

Offline zh cohen

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Re: Dave Ramsey Plan
« Reply #190 on: July 26, 2020, 12:01:34 AM »
Say you owe 20k. Paying off a card with a 1k balance or paying 1k on a card with a 10k balance will leave you with 19k left to pay. That is the motivation that should be taught.

How do you address the research that shows that human psychology doesn't work that way. I'm referring to research regarding all areas in which motivation is needed (such as weight loss etc.), not just paying off debt.

At CB their main goal is credit repair. The progress/motivation is your FICO score.

Dave Ramsey's advice is a terrible way to reach that goal.

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Re: Dave Ramsey Plan
« Reply #191 on: July 26, 2020, 12:05:38 AM »
How do you address the research that shows that human psychology doesn't work that way. I'm referring to research regarding all areas in which motivation is needed (such as weight loss etc.), not just paying off debt.

Dave Ramsey's advice is a terrible way to reach that goal.
The main point is that it is good advice for the right person. If you are not that person then move on, but there are very likely thousands of people who are now debt free who would have been drowning if not for his system. Anyone who can't understand that needs to get out more.
Feelings don't care about your facts

Offline Mordyk

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Re: Dave Ramsey Plan
« Reply #192 on: July 26, 2020, 12:06:49 AM »
The goal is to pay off your debt. Say you owe 20k. Paying off a card with a 1k balance or paying 1k on a card with a 10k balance will leave you with 19k left to pay. That is the motivation that should be taught. Paying a card off with low interest instead of a high interest card is just wrong. It will take you longer to pay off your 20k debt.

At CB their main goal is credit repair. The progress/motivation is your FICO score. Getting inquires to zero can be seen as a victory but meaningless in the big picture.
Last i checked dave ramsey gets paid and gets credit for helping people get out of debt.  All the credit you get is for creating the most political threads on ddf.


So all you logic against his method doesnt make sense when he has studies to back up his claims

Offline 12HRS

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Re: Dave Ramsey Plan
« Reply #193 on: July 26, 2020, 12:15:34 AM »
Is this MS plan a side hustle to increase income or away of teaching living within your means and saving?

 :-X

Offline 12HRS

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Re: Dave Ramsey Plan
« Reply #194 on: July 26, 2020, 01:38:44 AM »



Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #195 on: July 26, 2020, 07:34:54 AM »
Last i checked dave ramsey gets paid and gets credit for helping people get out of debt.  All the credit you get is for creating the most political threads on ddf.


So all you logic against his method doesnt make sense when he has studies to back up his claims
This is why it is hard to have honest discussions on DDF. You have many members that don't have the willpower to separate JS from the rest of the forum.

If you try and open your eyes you will see I helped many DDF members. Oh and by the way all that help was free.  :)
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

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Re: Dave Ramsey Plan
« Reply #196 on: July 26, 2020, 07:41:07 AM »
Ramsey is the Spirit of financial health. It'll get you there, but it wont be pretty or comfortable and it will end up costing you a lot more than you thought. Oh, and pretty much everyone else who has any experience will think you're crazy for using him/them.
Failing at maintaining Lurker status.

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #197 on: July 26, 2020, 07:41:41 AM »
Is this MS plan a side hustle to increase income or away of teaching living within your means and saving?
It seems we are all over the place with his plan. So his plan is to teach you to live with in your means and save?
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

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Re: Dave Ramsey Plan
« Reply #198 on: July 26, 2020, 07:47:10 AM »
Keep in mind that Dave Ramsey is advocating to no longer have debt and the FICO score is not a great motivator for someone who will no longer be having ccs. Many of these people will have difficulty keeping out of the cc trap and truly are people who the only way out for them is to not have any ccs at all.
Like I said before then they need help in other areas and their financial problem is just one of the symptoms.
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #199 on: July 26, 2020, 07:49:38 AM »
How do you address the research that shows that human psychology doesn't work that way. I'm referring to research regarding all areas in which motivation is needed (such as weight loss etc.), not just paying off debt.
My example was motivation. One that gets you quicker to your goal.
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch