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 10194 times)

Offline zh cohen

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Re: Dave Ramsey Plan
« Reply #90 on: July 23, 2020, 11:42:12 PM »
AFAIK they don't talk about him anymore since their point of him being a conman is well known.
I searched and didn't find anything to indicate why they believe he is a conman other than that accepting CC issue.

One thing I remember is saying pay off your lowest CC balance first no matter the interest rate charged on your cards. Is that correct?
Indeed. This fits into my point that his advice has to be taking as part of the big picture of his program. If your goal is to get rid of all debt, then the psychological benefits of the debt snowball are worth more than the saving that you'd get from paying the highest interest debts first.

There have been studies done that show this method to be more effective (in getting rid of debt).
« Last Edit: July 23, 2020, 11:47:41 PM by zh cohen »

Offline Mordyk

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Re: Dave Ramsey Plan
« Reply #91 on: July 23, 2020, 11:50:13 PM »
Whole life insurance? Not a chance!
Yes i heard the podcast.  His wife wants a lump sum payout when he dies. And he said he did it as a gift. But he still argues with her about it.  He said it as a disclaimer.

You can go ahead and called it BS, but he had no reason to mention it.
« Last Edit: July 24, 2020, 12:00:14 AM by Mordyk »

Offline thaber

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Re: Dave Ramsey Plan
« Reply #92 on: July 24, 2020, 03:37:11 AM »
This is silly. OP was just saying that people should live within their means and he gives a good framework for that.
For the more sophisticated people, you can ignore the mortgage advice.
For those confident they'll never carry a balance they can ignore the credit card advice. (one of the most responsible people I know had one bad month that ended up being a 60k credit card debt).
For those who sell insurance, they can tell everyone to ignore the life insurance advice.
For those who think he's a conman, don't have a beer with him.
But the hashkafa and attitude toward money in general is very sound, and the mehalech helps a lot of people to can't get themselves out of debt.

Offline 12HRS

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Re: Dave Ramsey Plan
« Reply #93 on: July 24, 2020, 03:40:21 AM »
I assume you do realize that a 40 year period that ended 3/9/2009 is very different than a 40 year period that ended 1/9/2020

Are you also ignoring the psychology of a serious drawdown a year or two prior to retirement?

what percent of families in our circles go into retirement with a mortgage still over their head?

Online avromie7

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Re: Dave Ramsey Plan
« Reply #94 on: July 24, 2020, 09:31:10 AM »
what percent of families in our circles go into retirement with a mortgage still over their head?
I don't want to be making weddings while still paying a mortgage too.
I wonder what people who type "u" instead of "you" do with all their free time.

Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #95 on: July 24, 2020, 09:53:02 AM »
I don't want to be making weddings while still paying a mortgage too.

Do you realize that for many people the Taxes and Insurance portion of their mortgage payment is a very significant part that never goes away?
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline aygart

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Re: Dave Ramsey Plan
« Reply #96 on: July 24, 2020, 09:53:52 AM »
what percent of families in our circles go into retirement with a mortgage still over their head?
I don't want to be making weddings while still paying a mortgage too.
What percent take a cash out refi to pay for the wedding that their wife thinks is within their means?
The thing with the hamster is that running on the wheel is actually what it is trying to do.

Offline aygart

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Re: Dave Ramsey Plan
« Reply #97 on: July 24, 2020, 09:55:44 AM »
I don't want to be making weddings while still paying a mortgage too.
why not? For anyone who buys a house with a 6year old daughter that can be very difficult.
The thing with the hamster is that running on the wheel is actually what it is trying to do.

Online CountValentine

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Re: Dave Ramsey Plan
« Reply #98 on: July 24, 2020, 09:57:55 AM »
Indeed. This fits into my point that his advice has to be taking as part of the big picture of his program. If your goal is to get rid of all debt, then the psychological benefits of the debt snowball are worth more than the saving that you'd get from paying the highest interest debts first.

There have been studies done that show this method to be more effective (in getting rid of debt).
Then the person needs a psychologist not a fake financial advisor.
Do you pay off your small balance first before your high interest balances?
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Online CountValentine

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Re: Dave Ramsey Plan
« Reply #99 on: July 24, 2020, 09:59:55 AM »
For those who think he's a conman, don't have a beer with him.
I would love to have a beer with him.  :)
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 #100 on: July 24, 2020, 10:08:56 AM »
Then the person needs a psychologist not a fake financial advisor.
Do you pay off your small balance first before your high interest balances?
Why psychologist?  The brain has a way of working. Same way when you start a business and its making a little money and you get encouraged that its growing.  This gives strength to continue.   When paying debt if you see debts going away it also gives courage to continue further.  Obviously from a $ standpoint the higher interests should get paid first.  But its not worth if you do it for a short while and get discouraged

Online CountValentine

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Re: Dave Ramsey Plan
« Reply #101 on: July 24, 2020, 10:20:10 AM »
Why psychologist?  The brain has a way of working. Same way when you start a business and its making a little money and you get encouraged that its growing.  This gives strength to continue.   When paying debt if you see debts going away it also gives courage to continue further.  Obviously from a $ standpoint the higher interests should get paid first.  But its not worth if you do it for a short while and get discouraged
Look we can go back and forth all day. Most successful people will tell you it is their failures that made them stronger.
You teach people the right way. The reason he is so successful is he preys on an individuals weakness.

So let me ask the question. For all those that paid money for his course do you pay your smaller balances first instead of your high interest balances first? It is a straight forward simple question.
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline 12HRS

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Re: Dave Ramsey Plan
« Reply #102 on: July 24, 2020, 10:27:49 AM »
Look we can go back and forth all day. Most successful people will tell you it is their failures that made them stronger.
You teach people the right way. The reason he is so successful is he preys on an individuals weakness.

He did a scientific study recently of 10000 millionaires in the country, you can find the data on this but the majority of millionaires in the country pay off their home in 10.2(iirc) years. It may be a weakness to need to see results to motivate you to keep you going but its also pretty normal.

So let me ask the question. For all those that paid money for his course do you pay your smaller balances first instead of your high interest balances first? It is a straight forward simple question.

If you are in debt and following his plan the answer is yes.

Online CountValentine

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Re: Dave Ramsey Plan
« Reply #103 on: July 24, 2020, 10:38:55 AM »
He did a scientific study recently of 10000 millionaires in the country, you can find the data on this but the majority of millionaires in the country pay off their home in 10.2(iirc) years. It may be a weakness to need to see results to motivate you to keep you going but its also pretty normal.
I paid off my home several times and is currently paid off. Might borrow against it again. It has nothing to do with motivation but sound finacial planning.
If you are in debt and following his plan the answer is yes.
That was not the question. Some here have bought his plan. I am asking them what they do.
You're so far up Trump's a** you can see Giuliani's feet.  HT Baruch

Offline aygart

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Re: Dave Ramsey Plan
« Reply #104 on: July 24, 2020, 10:46:56 AM »
Look we can go back and forth all day. Most successful people will tell you it is their failures that made them stronger.
You teach people the right way. The reason he is so successful is he preys on an individuals weakness.

So let me ask the question. For all those that paid money for his course do you pay your smaller balances first instead of your high interest balances first? It is a straight forward simple question.

If his charisma or the psychology behind his plan or something else is succesful in getting people out of bad debt then why would that be anything but a good thing?
The thing with the hamster is that running on the wheel is actually what it is trying to do.