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 50882 times)

Online Lou Bob

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Re: Dave Ramsey Plan
« Reply #200 on: July 26, 2020, 07:53:41 AM »
My example was motivation. One that gets you quicker to your goal.
you should write a book and host a radio show.
Always use an Amex, you'll thank me one day.

Online zh cohen

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Re: Dave Ramsey Plan
« Reply #201 on: July 26, 2020, 07:55:55 AM »
My example was motivation. One that gets you quicker to your goal.

Do you have research/data to back up that statement?

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #202 on: July 26, 2020, 08:01:26 AM »
Do you have research/data to back up that statement?
I have simple math. Look if you feel going from 20k in debt to 19k in debt isn't motivation nothing I can say will change that.
Lets me ask you this. All your CC debt is on one CC and it is 20k. As that debt decreases isn't that motivation that what you are doing is working?
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #203 on: July 26, 2020, 08:10:50 AM »
I have simple math. Look if you feel going from 20k in debt to 19k in debt isn't motivation nothing I can say will change that.
Lets me ask you this. All your CC debt is on one CC and it is 20k. As that debt decreases isn't that motivation that what you are doing is working?

Finance ≠ Math
I've been waiting over 5 years with bated breath for someone to say that!
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Online moko

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Re: Dave Ramsey Plan
« Reply #204 on: July 26, 2020, 08:12:12 AM »
This thread is begging to be moved to JS

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #205 on: July 26, 2020, 08:16:19 AM »
This thread is begging to be moved to JS
Just because there are opposing views does not mean it gets moved to JS.
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline yitzgar

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Re: Dave Ramsey Plan
« Reply #206 on: July 26, 2020, 08:19:29 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.
Whichever route you take, if you are in debt, it won't be pretty or comfortable to get there. (He is very clear that this is true as far as his own program)

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #207 on: July 26, 2020, 08:22:04 AM »
Does part of his plan still say that debt is bad and you should not have any CC's?
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Online moko

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Re: Dave Ramsey Plan
« Reply #208 on: July 26, 2020, 08:42:43 AM »
Just because there are opposing views does not mean it gets moved to JS.
nothing to do with opposing views...
More to do with the hamster wheel.
After you've gone several rounds with the exact same arguments dressed with different wording, it's time to go.

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #209 on: July 26, 2020, 08:48:40 AM »
nothing to do with opposing views...
More to do with the hamster wheel.
After you've gone several rounds with the exact same arguments dressed with different wording, it's time to go.
Lets go to baby step number one. He wants you to put 1k in an emergency fund while you are still in debt.
Many emergencies will be over 1k, then what? You might not ever run into an emergency and the money is just sitting there instead of lowering your debt.
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Online moko

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Re: Dave Ramsey Plan
« Reply #210 on: July 26, 2020, 09:17:51 AM »
Lets go to baby step number one. He wants you to put 1k in an emergency fund while you are still in debt.
Many emergencies will be over 1k, then what? You might not ever run into an emergency and the money is just sitting there instead of lowering your debt.
NIME.
Regardless, that's not what I've seen in most of this thread.
How long did it take me to get an inkling of an answer to my somewhat unrelated WL question (which, btw, the ore I read of the provided info, actually convinced of the opposite)?
Every so often someone begins an debate if some substance but most of the time (at least it seems to me) it's mostly cyclical arguments, round n round.
My actual position on DR, I like a lot of what he , not everything, I'll take what I can use and ignore the rest regardless if he believes that it's all or nothing.
As for my general outlook on debates and arguments, I don't have to be right as long as I get what I want.
If i don't think I'll get what I want I try not to bother (despite being tempted to argue)

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #211 on: July 26, 2020, 09:38:38 AM »
NIME.
Regardless, that's not what I've seen in most of this thread.
How long did it take me to get an inkling of an answer to my somewhat unrelated WL question (which, btw, the ore I read of the provided info, actually convinced of the opposite)?
Every so often someone begins an debate if some substance but most of the time (at least it seems to me) it's mostly cyclical arguments, round n round.
My actual position on DR, I like a lot of what he , not everything, I'll take what I can use and ignore the rest regardless if he believes that it's all or nothing.
As for my general outlook on debates and arguments, I don't have to be right as long as I get what I want.
If i don't think I'll get what I want I try not to bother (despite being tempted to argue)
When you get two strong willed people go against each other of course you are going to go round n round. The default on DDF is when I am one of those is to blame me. That is fine as I am used to it by now.

If you don't want to discuss his baby steps one by one that is fine with me. Maybe others will defend them.
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline Mordyk

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Re: Dave Ramsey Plan
« Reply #212 on: July 26, 2020, 09:41:52 AM »
Lets go to baby step number one. He wants you to put 1k in an emergency fund while you are still in debt.
Many emergencies will be over 1k, then what? You might not ever run into an emergency and the money is just sitting there instead of lowering your debt.
Read his book, fully understand his method and then come back.  Very hard to argue with you.

The $1k emergency fund is for basics. He gives an example if your car breaks down and u need a few hundred bucks to fix it so you can get to work and make more money. If you don't have the $1000 emergency it will drag you down even more. 

Obviously you need a larger emergency fund. That's why he has baby step 3. But for starters at least have something for the small stuff in life that might turn into bigger issues.


Again please read it and learn his method before arguing against it
 
#TYH

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #213 on: July 26, 2020, 09:50:09 AM »
Read his book, fully understand his method and then come back.  Very hard to argue with you.

The $1k emergency fund is for basics. He gives an example if your car breaks down and u need a few hundred bucks to fix it so you can get to work and make more money. If you don't have the $1000 emergency it will drag you down even more. 

Obviously you need a larger emergency fund. That's why he has baby step 3. But for starters at least have something for the small stuff in life that might turn into bigger issues.


Again please read it and learn his method before arguing against it
I am not going to waste my money. I have seen his method many times.

My point is your car example can easily be over 1k and then you will have to borrow. Most Americans live pay check to pay check.
Even if you agree with step #1 it should be moved to at least #3.
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline YoelFried

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Re: Dave Ramsey Plan
« Reply #214 on: July 26, 2020, 09:55:33 AM »
The conversation for the last couple of days are catch 22.

My take = the status quo is just the opposite of save ramsey, we live In a world where if you borrow more you make more. (Lets not discuss this one now). The people that follow dave ramsey have a really Pleasant life without worrying what the next day will bring because it based on you need to have a long term plan.

Offline Mordyk

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Re: Dave Ramsey Plan
« Reply #215 on: July 26, 2020, 09:57:17 AM »
I am not going to waste my money. I have seen his method many times.

My point is your car example can easily be over 1k and then you will have to borrow. Most Americans live pay check to pay check.
Even if you agree with step #1 it should be moved to at least #3.
I will stop arguing with you here.  I see that you will argue every point I make.  A fair argument is when both have the same knowledge yet different point of views.  I think in this case you don't really want to understand what he is saying because it takes away from the thrill of just saying "he is wrong because i decided so"

I will answer one last time. Pay check to paycheck means you dont have a dollar for any small issues that can be bigger issues.  You need to pay a dentist, car repair, etc.  This gives you a little more needed flexibility.   Does it cover everything? No. But will it help many situations? Yes.  Therefore its the start.  And when all debt is paid off you focus on full emergency fund.

Offline Mordyk

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Re: Dave Ramsey Plan
« Reply #216 on: July 26, 2020, 09:58:39 AM »
The conversation for the last couple of days are catch 22.

My take = the status quo is just the opposite of save ramsey, we live In a world where if you borrow more you make more. (Lets not discuss this one now). The people that follow dave ramsey have a really Pleasant life without worrying what the next day will bring because it based on you need to have a long term plan.
Exactly.  His method should give "financial freedom"    doesn't mean that you can't become richer asap by taking loans.  But for example now with covid, anyone that stuck to his method should have been ok to weather 6 months...
#TYH

Offline avromie7

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Re: Dave Ramsey Plan
« Reply #217 on: July 26, 2020, 10:00:21 AM »
I am not going to waste my money. I have seen his method many times.

My point is your car example can easily be over 1k and then you will have to borrow. Most Americans live pay check to pay check.
Even if you agree with step #1 it should be moved to at least #3.
The reason it's at #1 is to be able to separate old debt from current expenses, if every time something comes up you need to put it back on the CC you're continuing the cycle. As with everything in life nothing is foolproof, but the $1k covers most surprises.

Another big part of his method is the budgeting which includes putting money away every month for anticipated expenses like car or home repairs, so even if something big breaks there should be money in the car expense fund to cover at least part of it with the $1k filling in.
I wonder what people who type "u" instead of "you" do with all their free time.

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #218 on: July 26, 2020, 10:05:18 AM »
I will stop arguing with you here.  I see that you will argue every point I make.  A fair argument is when both have the same knowledge yet different point of views.  I think in this case you don't really want to understand what he is saying because it takes away from the thrill of just saying "he is wrong because i decided so"

I will answer one last time. Pay check to paycheck means you dont have a dollar for any small issues that can be bigger issues.  You need to pay a dentist, car repair, etc.  This gives you a little more needed flexibility.   Does it cover everything? No. But will it help many situations? Yes.  Therefore its the start.  And when all debt is paid off you focus on full emergency fund.
I have a different position than what DR teaches. So if you believe DR then of course we will see it differently.

I will try to explain one more time. You can use that 1k to pay off debt and save money. If an emergency arrives you can borrow against that debt to pay the emergency. Once you are out of debt you can work on your emergency fund. That is why I said it should not be #1. You are financial better off this way.

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 #219 on: July 26, 2020, 10:08:45 AM »
The reason it's at #1 is to be able to separate old debt from current expenses, if every time something comes up you need to put it back on the CC you're continuing the cycle. As with everything in life nothing is foolproof, but the $1k covers most surprises.

Another big part of his method is the budgeting which includes putting money away every month for anticipated expenses like car or home repairs, so even if something big breaks there should be money in the car expense fund to cover at least part of it with the $1k filling in.
I understand what he is saying and disagree.
From a financial stand point it is wrong.
We can run the numbers if you want.  :)

Lets move on. Does he use a 12% return for investments?
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch