Dave Ramsey Plan

[Dan]

Look at Dansdeals - we get lots of points, and as I'm a very small player, I can't even imagine how much money/value for experience people here have gotten from points. And I'm certain some of the members here are millionaires (though it's unlikely they became that way from their own credit card points).

Honestly, this is Dave's dumbest line and he keeps repeating it. Horrendous litmus test and nothing else in life has such a test.

https://www.dansdeals.com/credit-cards/ink-card-faqs-everything-need-know-getting-excellent-odds-racking-points-awesome-chase-ink-credit-cards/#A_word_of_warning

[CountValentine]

You don't have to agree with everything he says, but most of what he says is very solid.

And if everyone followed his advice, the vast majority of the population would be better off.

If everyone followed his advice the economy would come to a screeching halt.
He takes "simple math" as he calls it and turns it on its head.
His plan helps some people. Unfortunately, this help is not financial. 

[yitzgar]

If everyone followed his advice the economy would come to a screeching halt.
He takes "simple math" as he calls it and turns it on its head.
His plan helps some people. Unfortunately, this help is not financial. 

His advice isn't meant for everyone. It's meant for people that don't have proper discipline when it comes to spending and debt. Does the way he market his advice bother you as though this is the only way to go? I would guess that most people that listen to his advice are those who fall into the above category and have fallen deep into debt, or know they are the type that could/will.

[CountValentine]

Honestly, this is Dave's dumbest line and he keeps repeating it. Horrendous litmus test and nothing else in life has such a test.

https://www.dansdeals.com/credit-cards/ink-card-faqs-everything-need-know-getting-excellent-odds-racking-points-awesome-chase-ink-credit-cards/#A_word_of_warning

"While Dave Ramsey may be correct that people don’t become millionaires off airline miles..."
He talks not just about airlines miles but all points including cashback. I can state with 100% certainty that he is wrong.

[CountValentine]

His advice isn't meant for everyone. It's meant for people that don't have proper discipline when it comes to spending and debt. Does the way he market his advice bother you as though this is the only way to go? I would guess that most people that listen to his advice are those who fall into the above category and have fallen deep into debt, or know they are the type that could/will.

His advice is meant for those in trouble that will shell out $$$$ for his programs.

If he wants to truly help them then also teach them how to use debit responsibly. Don't treat them like addicts.

It is sad to see many defend some of his crap. This is the danger that needs to be called out. 

[Dan]

His advice is meant for those in trouble that will shell out $$$$ for his programs.

If he wants to truly help them then also teach them how to use debit responsibly. Don't treat them like addicts.

It is sad to see many defend some of his crap. This is the danger that needs to be called out. 

People have Gell-mann amnesia effect from his timeshare exit business scandal, which he never apologized for.

[CountValentine]

...Gell-mann amnesia effect...

So others don't have to Google it. 
Michael Crichton coined the term Gell-Mann Amnesia effect to describe forgetting how unreliable a source is in one area when you trust it in another area.

[Yehuda57]

https://www.instagram.com/reel/CxV11xqgyBx/

[Kobe Bryant]

https://www.businessinsider.com/personal-finance/mint-shutting-down-alternative-budgeting-apps-2023-11

[niebloomj]

Not sure the best place to post this but I wrote an article comparing Ramsey's approach to the Financial Independence community's. https://frum.finance/finance/fi-vs-fire-vs-ramsey/

[MiInvstr]

Not sure the best place to post this but I wrote an article comparing Ramsey's approach to the Financial Independence community's. https://frum.finance/finance/fi-vs-fire-vs-ramsey/

On the topic of credit cards, are you aware how much more people spend when using credit card vs. using cash? On average it’s way more than the 2-3 percent you’ll be getting with the cash back. So I disagree with your argument against DR on that one.

[db23]

there is a gemach out there that helps people with debt consolidation. the attorney i spoke with said its scary out there of how many people need help right now. when you look at the interest rate of close to 30% right now and people have that spread out over multiple cc the numbers are staggering! i dont think people who pay there min balance on a monthly basis even realize how much money they really owe with factored in interest and how long itll actually take to pay everything off. they cant help a lot of people bec they charge up front fee and if you are maxed out on your credit limits then sadly they cant help. its very scary and sad!

saying all that if you are disciplined and have your finance in order then the credit/points game is awesome and i dont really see a reason not to play and take full advantage !!!

[db23]

not sure the exact question but DR just was asked if he was offered a billion dollar loan at 0% interest over 5 years if hell accept it - he said NO he doesnt want to take on any debt.

[niebloomj]

On the topic of credit cards, are you aware how much more people spend when using credit card vs. using cash? On average it’s way more than the 2-3 percent you’ll be getting with the cash back. So I disagree with your argument against DR on that one.

That would only be for people who spend more using credit cards... Look how the study was conducted. I think you are misappropriating the word average here to imply that those 2-3% increase is equally spread out amongst the population, while what is more likely is that its a mix of 0% and 10% people, those 10% people being the people that don't have a healthy relationship with credit cards in the first place. Maybe I pay my credit card bill daily so it feals like a debit card? I think using that stat to derive a conclusion for all people is a bit silly.

[niebloomj]

there is a gemach out there that helps people with debt consolidation. the attorney i spoke with said its scary out there of how many people need help right now. when you look at the interest rate of close to 30% right now and people have that spread out over multiple cc the numbers are staggering! i dont think people who pay there min balance on a monthly basis even realize how much money they really owe with factored in interest and how long itll actually take to pay everything off. they cant help a lot of people bec they charge up front fee and if you are maxed out on your credit limits then sadly they cant help. its very scary and sad!

saying all that if you are disciplined and have your finance in order then the credit/points game is awesome and i dont really see a reason not to play and take full advantage !!!

The "gemachs" I know that do this charge a monthly fee, not an upfront fee, so I guess that's better? Idk. I am still confused why its called a gemach given the profit / profit margins for the service, but that can be another thread.

[MiInvstr]

That would only be for people who spend more using credit cards... Look how the study was conducted. I think you are misappropriating the word average here to imply that those 2-3% increase is equally spread out amongst the population, while what is more likely is that its a mix of 0% and 10% people, those 10% people being the people that don't have a healthy relationship with credit cards in the first place. Maybe I pay my credit card bill daily so it feals like a debit card? I think using that stat to derive a conclusion for all people is a bit silly.

Well obviously no one is using the stat for every person and lots and lots of people will gain off the credit card rewards probably. But if you’re stating that for anyone and everyone that the rewards gained is better than Ramseys svara then I have to argue. Because for most people it will be detrimental to them to use a credit card over cash even after calculating the rewards.

Unless you’re saying that the people spending more are spending so much more so it’s skewing the study so dramatically. Maybe but I wouldn’t assume so unless you have something backing it. As one can see by themselves how easily people swipe for things right and left these days.

[aygart]

Maybe I pay my credit card bill daily so it feals like a debit card?

Sure recipe to get shut down

[moko]

On the topic of credit cards, are you aware how much more people spend when using credit card vs. using cash? On average it’s way more than the 2-3 percent you’ll be getting with the cash back. So I disagree with your argument against DR on that one.

pretty much the same for debit cards for those that don't have cc debt.
If you set auto pay full balance , it's no different than a debit card.

[MiInvstr]

pretty much the same for debit cards for those that don't have cc debt.
If you set auto pay full balance , it's no different than a debit card.

A. I believe debit cards are not as good as cash according to all the studies.
B. Are you sure it’s the same even when it’s autopay? It’s not only about going into debt, it’s about spending more even when not going into debt.

[chbochur]

No question using a credit card even if paying at the end of the month on time (or even every day) you end up spending more.
Debit card my guess is people spend more (not as much as credit cards). But nothing beats cash, You run out of cash there's nothing to talk about until you go to the bank or replace it.