Dave Ramsey

[dawgball]

Anyone listen to him on the radio? I went to one of his live events yesterday with my wife.

Anyone ever gone through the Total Money Makeover?

Any opinions? I've heard him on the radio for years, but I will hold my opinion for a bit.

 

[ageecee]

I listend to him one time on the radio and i know he has a website but dont know the url.


How was the live event? Im anxious to know what hes all about and the Total Money Makeover.

 

[SixFive]

I know all about it, and it works. I did it on my own after I read [/U]Financial Peace. I don't agree with everything he says, but I think he is 90% right on track. I've lived debt free now since 1998. We do a modified envelope system. I'm sure it will be a little more of a challenge for you, though, since you are a small business guy.

I used to listen to him quite a bit on the radio, but after a few years, you pretty much know what he's going to say to the callers, and it gets redundant. He's entertaining, and personally, he's a nice guy. I heard him preach once at a local church.

Any specific questions? Shoot! I think you'll benefit from the program.

 

[ageecee]

6-5


What does the program call for? How does it work? etc, etc

 

[ageecee]

Can you get the book"Financial Peace" at a local bookstore?

 

[SixFive]

You can get the book anywhere. You can probably find a used copy on Amazon.com pretty cheaply as it's been out almost 10 years.

The main ideal of Dave Ramsey is living debt free. No credit cards for anything. No loans other than a 1st mortgage on your dwelling.

He has a plan for people to follow to get out of debt called the debt snowball.

Those are the basics, but there's a lot more as well. He also gives a lot of investing advice for those who are debt free.

 

[ageecee]

So does he want you to have a car loan?

 

[SixFive]

So does he want you to have a car loan?

oh, heavens no! No personal loans, no cc debt, no second mortgages, no home equity loans, and most of all, no car loans. You have to save up your money to buy your car with cash, and don't ever buy a new car, always used.

 

[dawgball]

So does he want you to have a car loan?

To follow up on what 6-5 said, he mentioned in his seminar that he could rename his radio show to the "You have to sell your car show" because that is the first step in over 90% of his calls.

Also, his radio show gets redundant after a few weeks/months of listening to it like Clint said.

For the record, I would think over 75% of people will immediately dismiss his ideas when they first hear them because they don't think it is possible. we are so caught up in living an overextended life that most people can't fathom paying cash for EVERYTHING except your house (and Dave swears you can do that, too, if you really want to).

My wife and I are debating on selling our home and starting over completely, but we have not made any final decisiions at this point.

The better book to read first may be Total Money Makeover , but you can find a good used deal fo Financial Peace or Financial Peace revisited

BTW, Clint, that is AWESOME to be living debt free like that. My wife and I really want to get there soon.

 

[ageecee]

what about a car loan with 0% interest? Wifey bought an Expedition last year 0% interest. My truck is paid for so we only have one car note.

 

[SixFive]

what about a car loan with 0% interest? Wifey bought an Expedition last year 0% interest. My truck is paid for so we only have one car note.

per his philosophy, no, because it's still bad debt.

 

[ageecee]

what else does he want u to pay for cash?

 

[Blazer]

My buddy does all of his A/V at the events. His plan is simple: Pay off all debt and pay cash. Throw away credit cards and do not finance anything.

Good Ideas, good lessons, hard to do.

 

[SixFive]

what else does he want u to pay for cash?

:thinking: Say it again??

What's up, Jamie? You done with school yet?

 

[dawgball]

what about a car loan with 0% interest?

Buying a brand new car in any fashion is against his philosophy because cars lose 40% of their value in their first two years. So your 0% interest is still costing your money 20% per year (roughly).

what else does he want u to pay for cash?

Everything but your primary residence. And even that if you have that much cash.

Cash or debit cards is all you should use under his philosophy. As Blazer said, it is extremely tough to do. but I think the biggest difficulty is changing our mindset to buy absolutely nothing that we can't pay cash for.

How to buy a car Dave Ramsey style:
1. Pay cash for a $1,000
2. Save the $378 (average car payment in US) montly payment for 1 year
3. Sell your $1,000 car (probably still worth about the same because it already lost most of its value before you bought it) and couple it with the $4,500 in savings and buy a $5,500 car
4. Repeat above steps until you have the car you desire

This may not be completely accurate, but this is the Cliff Notes version.

 

[Blazer]

Clint,

Hello I hope you are well. Yes, I am finished with my degree and now I am gainfully employed. I'd rather not post where, but in downtown Nashville.

Thanks for the shout.

Hey Dawgball, good to see you still here as well.

 

[worm44]

Agree with very little of his "formulas" only because most people do not have the will power to save like he expects BUT-I do believe buying new cars for the most part is ridiculous-also everyone knows that credit cards and new car loans are the biggest drain on you finances-I had a financial expert talk to my salesman and tell them that under his formula that if you want a $35,000 car you should be making $175,000 a year to justify that expenditure........I totaly agree-I had him speak to my salesman because I saw guys working for me in their 20's and thirtys with families making a $100,000 a year and spending like they made 250k---in the long run I knew it would effect MY business......

 

[SixFive]

Agree with very little of his "formulas" only because most people do not have the will power to save like he expects ....

you have to want it to be successful, that's for sure. I think you'll agree that most people expect to have a car loan and debt in general. It's the American way, I'm sad to say. I think his best service is helping people think out of the box when it comes to debt/finances. I don't agree with all of his methods, but I do with the great majority. It's a relief having no debt. Feels good.

 

[worm44]

Totally agree-I pay cash for my cars--and as of last year my home is paid off-(and i am still in my 30's)-The feeling of having no major debt is nice......I believe however the real skill is not in telling people how to avoid debt and the problems it brings-but telling people a way to become wealthy-and not wealth for when you are 70 years old-wealth now......I actually do not believe that it is that hard to become fanancially well-off--there is a basice formula I believe...anyway......

 

[SixFive]

I actually do not believe that it is that hard to become fanancially well-off--there is a basice formula I believe...anyway......

Let's hear it, brudda!