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What baby step are you up to?

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3 to 6 months of expenses in savings
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Pay off home early (prepay mortgage)
Build wealth and give!

Author Topic: Dave Ramsey Plan  (Read 106149 times)

Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #460 on: November 15, 2020, 08:24:03 PM »
Lately I have been having guilt about using credit cards, especially Amex, at local stores. Like why should they pay for my couple of rewards points? Is there any known cure for this condition?

Yes. Ask them for a cash discount (check with you LOR regarding any possible Ribbis issues).
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline good sam

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Re: Dave Ramsey Plan
« Reply #461 on: November 15, 2020, 08:26:12 PM »
Yes. Ask them for a cash discount (check with you LOR regarding any possible Ribbis issues).
But that's my point, why would I be entitled to a refund?
If you don't care why would you comment?
HT: DMYD

Online avromie7

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Re: Dave Ramsey Plan
« Reply #462 on: November 15, 2020, 08:27:30 PM »
Lately I have been having guilt about using credit cards, especially Amex, at local stores. Like why should they pay for my couple of rewards points? Is there any known cure for this condition?
The store gains that the cashiers can't steal if you pay by CC.
I wonder what people who type "u" instead of "you" do with all their free time.

Offline Lurker

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Re: Dave Ramsey Plan
« Reply #463 on: November 15, 2020, 08:27:57 PM »
But that's my point, why would I be entitled to a refund?

Because CC processing fees are baked into the retail price, along with other overhead expenses.
Failing at maintaining Lurker status.

Online AsherO

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Re: Dave Ramsey Plan
« Reply #464 on: November 15, 2020, 08:32:59 PM »
Lately I have been having guilt about using credit cards, especially Amex, at local stores. Like why should they pay for my couple of rewards points? Is there any known cure for this condition?

Cost of doing business, don’t feel guilty if they’re a business with reasonable margins (not that you’d necessarily know, but if you’re paying full retail then they likely are making a decent profit margin).
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Online AsherO

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Re: Dave Ramsey Plan
« Reply #465 on: November 15, 2020, 08:36:21 PM »
The store gains that the cashiers can't steal if you pay by CC.

If the theft risk is higher than the 2-3% total cost of CC processing then they likely have other, more serious, operational issues.
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Offline yesitsme

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Re: Dave Ramsey Plan
« Reply #466 on: November 15, 2020, 09:12:04 PM »
Cost of doing business, don’t feel guilty if they’re a business with reasonable margins (not that you’d necessarily know, but if you’re paying full retail then they likely are making a decent profit margin).
Correct unless you're shopping in rousners where they don't charge you for the convenience of using a cc, cash snap, only

Online Yehuda57

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Re: Dave Ramsey Plan
« Reply #467 on: November 15, 2020, 09:15:26 PM »
..

Of course you are correct. Warren Buffet uses leverage, and DR doesn't discourage mortgages, although he does say it's best to pay cash and never advises longer and less than 15 years and 20% down.

The key, again, is attitude. Plenty of people, and I'm sure you know a bunch, are leveraged up the wazoo. They think they're real estate moguls, but it's a matter of time until it comes crashing down. Those are the ones who need to be smashed over the head and only buy using cash. Someone like CV, who clearly knows how to leverage successfully, need not concern himself with DR's extremism.

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #468 on: November 15, 2020, 09:39:12 PM »
When I first started posting in the this thread I trashed DR and his plan. After hearing from members how it helped them my thoughts about some portions of his plan have evolved. If they helped you were others failed then stick with his plan.
My opinion of him has not changed.  :)
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Offline shmaya

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Re: Dave Ramsey Plan
« Reply #469 on: November 16, 2020, 02:36:26 AM »
Lately I have been having guilt about using credit cards, especially Amex, at local stores. Like why should they pay for my couple of rewards points? Is there any known cure for this condition?


The owner wants you to use a credit card.

Amongst other reasons, the probability of you spending more in the store by not using cash is very high.

Online Mordyk

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Re: Dave Ramsey Plan
« Reply #470 on: November 16, 2020, 08:18:55 AM »
When I first started posting in the this thread I trashed DR and his plan. After hearing from members how it helped them my thoughts about some portions of his plan have evolved. If they helped you were others failed then stick with his plan.
My opinion of him has not changed.  :)
I would have liked your comment if you had not added that last line. Your afraid to give a whole acknowledgement :P
#TYH

Offline CountValentine

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Re: Dave Ramsey Plan
« Reply #471 on: November 16, 2020, 08:52:26 AM »
I would have liked your comment if you had not added that last line. Your afraid to give a whole acknowledgement :P
Fair and balanced.  :)
Only on DDF does 24/6 mean 24/5/half/half

Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #472 on: November 16, 2020, 09:10:52 AM »
I would have liked your comment if you had not added that last line. Your afraid to give a whole acknowledgement :P

At least @CountValentine is honest (intellectually and otherwise so) to acknowledge places where he has seen a different point of view and (in this case) the value of DR in some cases. Have you ever seen the same level of honesty from DR? Would DR (or did he) ever acknowledge that in certain situations (לשיטתו) a 30 year mortgage makes more sense? Or that an well funded Whole Life makes sense?
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline Kobe Bryant

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Re: Dave Ramsey Plan
« Reply #473 on: November 16, 2020, 10:05:19 AM »
When I first started posting on this thread, I trashed DR and his plan. After hearing from members how it helped them, my thoughts about some portions of his plan have evolved. If they helped you where others failed then stick with his plan.
My opinion of him has not changed.  :)
FTFY

Offline CountValentine

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Only on DDF does 24/6 mean 24/5/half/half

Offline Kobe Bryant

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Online Mordyk

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Re: Dave Ramsey Plan
« Reply #476 on: November 16, 2020, 11:56:36 AM »
At least @CountValentine is honest (intellectually and otherwise so) to acknowledge places where he has seen a different point of view and (in this case) the value of DR in some cases. Have you ever seen the same level of honesty from DR? Would DR (or did he) ever acknowledge that in certain situations (לשיטתו) a 30 year mortgage makes more sense? Or that an well funded Whole Life makes sense?
I have seen sometimes that he has to tread carefully when answering these type of questions because people will take it as a statement instead of an answer to a specific scenario.

and I like to discuss overall rules and details to his method. If you want to breakdown a specific situation we can have an open discussion here.

In regard to whole life I have yet to find why a good funded one makes sense. but I'm here and ready to listen if you can share specific numbers to prove how it makes sense.
#TYH

Offline ExGingi

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Re: Dave Ramsey Plan
« Reply #477 on: November 16, 2020, 03:06:53 PM »
I have seen sometimes that he has to tread carefully when answering these type of questions because people will take it as a statement instead of an answer to a specific scenario.

and I like to discuss overall rules and details to his method. If you want to breakdown a specific situation we can have an open discussion here.

In regard to whole life I have yet to find why a good funded one makes sense. but I'm here and ready to listen if you can share specific numbers to prove how it makes sense.

I honestly haven't studied his rules, am just responding to what gets reported here.

Since you responded to my post of the 15 vs 30 year mortgage, I will respond to that one. While there is a slight interest rate difference between a 15yr and a 30yr mortgage, the biggest difference is in the required cash flow. A 15 year mortgage will require a person to convert more cash into equity in their home. While a 30 year mortgage will have a smaller required payment. If a person were to take a 30 year mortgage, they could usually still make the same payments that a 15 year mortgage would require, and pay off the mortgage early (though it would take a little longer than 15 years due to the slightly higher interest rate), but they would have the flexibility to fall back onto a lower payment if their cash flow falls short, or if they had an opportunity to put that cash to better use than earning the equivalent of the interest rate on their mortgage.

I don't think this is the appropriate place for me to show you specifics of what a well funded Whole Life can do for you (or for others), I would gladly take that conversation privately.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Online avromie7

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Re: Dave Ramsey Plan
« Reply #478 on: November 16, 2020, 03:21:51 PM »
I honestly haven't studied his rules, am just responding to what gets reported here.

Since you responded to my post of the 15 vs 30 year mortgage, I will respond to that one. While there is a slight interest rate difference between a 15yr and a 30yr mortgage, the biggest difference is in the required cash flow. A 15 year mortgage will require a person to convert more cash into equity in their home. While a 30 year mortgage will have a smaller required payment. If a person were to take a 30 year mortgage, they could usually still make the same payments that a 15 year mortgage would require, and pay off the mortgage early (though it would take a little longer than 15 years due to the slightly higher interest rate), but they would have the flexibility to fall back onto a lower payment if their cash flow falls short, or if they had an opportunity to put that cash to better use than earning the equivalent of the interest rate on their mortgage.

I don't think this is the appropriate place for me to show you specifics of what a well funded Whole Life can do for you (or for others), I would gladly take that conversation privately.
The idea behind the 15 year mortgage is to buy a house that you can afford with a 15 year mortgage.
I wonder what people who type "u" instead of "you" do with all their free time.

Online Mordyk

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Re: Dave Ramsey Plan
« Reply #479 on: November 16, 2020, 03:38:44 PM »
I honestly haven't studied his rules, am just responding to what gets reported here.

Since you responded to my post of the 15 vs 30 year mortgage, I will respond to that one. While there is a slight interest rate difference between a 15yr and a 30yr mortgage, the biggest difference is in the required cash flow. A 15 year mortgage will require a person to convert more cash into equity in their home. While a 30 year mortgage will have a smaller required payment. If a person were to take a 30 year mortgage, they could usually still make the same payments that a 15 year mortgage would require, and pay off the mortgage early (though it would take a little longer than 15 years due to the slightly higher interest rate), but they would have the flexibility to fall back onto a lower payment if their cash flow falls short, or if they had an opportunity to put that cash to better use than earning the equivalent of the interest rate on their mortgage.

I don't think this is the appropriate place for me to show you specifics of what a well funded Whole Life can do for you (or for others), I would gladly take that conversation privately.
I dont think most people finish a 30 year mortgage in 15 years. besides if they are obligated to. Between lower mortgage interest rate usually, and a bit larger principal payment the monthly payment is not such a huge difference compared to the interest savings.
#TYH