Dave Ramsey Readers

[Ster]

I am going to post a contrary opinion to everyone else just so you can have other considerations. I believe that Dave Ramsey has a great plan that the far majority of American's need to hear in order to have financial success. However, his steps are necessarily for everyone. Let me tell you a story and see what you think. There is this guy, we will call him Bob. Bob was financially stable with no credit car debts, no car notes, no other debts outside of his 15 year home mortgage. Bob had the notion to take a big risk and start a new company. This guy doesn't have the income to facility self financing the project and has two choices before him. 1) Borrow the money. Create a business plan, present the plan to a bank and request a sizable loan to start the company. or 2) take Dave Ramsey's advice and save up money until the accumulated cash of $750,000 is reached to start the business.

Had Bob followed Dave Ramsey's plan the risk would have never been taken, and a start up company that now generates over millions in production and employees 28 people with well paying jobs and benefits would have never happened.

I think Dave Ramsey has excellent ideas, but isn't always the right answer. Judging from your post, to me you seem like a level headed guy that responsible with your finances. I am sure that you will be fine. What makes Dave Ramsey so good is that his plan addresses the far majority of American's that are not fiscally responsible. I love the recommendation above about reading "The Millionaire Next Door".

The main thing to remember is to have a plan. Know what you are spending money on by having a budget. Realize what are needs and what are wants. Have a longterm plan in place (how much money do you need to retire etc...)

[rjohnson]

I am going to post a contrary opinion to everyone else just so you can have other considerations. I believe that Dave Ramsey has a great plan that the far majority of American's need to hear in order to have financial success. However, his steps are necessarily for everyone. Let me tell you a story and see what you think. There is this guy, we will call him Bob. Bob was financially stable with no credit car debts, no car notes, no other debts outside of his 15 year home mortgage. Bob had the notion to take a big risk and start a new company. This guy doesn't have the income to facility self financing the project and has two choices before him. 1) Borrow the money. Create a business plan, present the plan to a bank and request a sizable loan to start the company. or 2) take Dave Ramsey's advice and save up money until the accumulated cash of $750,000 is reached to start the business.

Had Bob followed Dave Ramsey's plan the risk would have never been taken, and a start up company that now generates over millions in production and employees 28 people with well paying jobs and benefits would have never happened.

I think Dave Ramsey has excellent ideas, but isn't always the right answer. Judging from your post, to me you seem like a level headed guy that responsible with your finances. I am sure that you will be fine. What makes Dave Ramsey so good is that his plan addresses the far majority of American's that are not fiscally responsible. I love the recommendation above about reading "The Millionaire Next Door".

The main thing to remember is to have a plan. Know what you are spending money on by having a budget. Realize what are needs and what are wants. Have a long term plan in place (how much money do you need to retire etc...)

Kind of feel the same way about Dave's plans. Just seems like he is just simply getting people out of debt. Not all debt is bad. For example mortgages on several properties that increase net cash flow are a good thing. Our rental property monthly net gain knocks about 20% off our primary residence mortgage. Trying to get a couple more before the end of the year. Get enough to cover cost of all the mortgages including our primary residence so we are living there for utilities only. Under Dave's ideology that is a terrible idea though.

[simplepeddler]

I agree, Dave is about HELPING people who have been convinced by marketing that they "derserve" everything right now.
OR those like me, that because of divorce and loosing a job, I found myself WAAAY far in debt (96K in credit cards alone).

Dave's class gave me the courage to face down the CC guys, and get my affairs in order.

Did my credit suffer? damn skippy..........did I get lots of ugly letters and calls???

yep........

but ten years later all is good. No bankruptcy and credit score is restored.
I am sure if I met him, his advice on INVESTING is different than his advice on getting out of a hole.

But you can't go wrong paying for cars and things cash other than a house.
Leveraging is something all together different. A person who cannot understand the ramifications of 35% interest and minimum payments on CC is not going to understand leveraging for positive cash flow. Again, too many of us today put the cart before the horse when it comes to money Vs wants

[rjohnson]

I agree, Dave is about HELPING people who have been convinced by marketing that they "derserve" everything right now.
OR those like me, that because of divorce and loosing a job, I found myself WAAAY far in debt (96K in credit cards alone).

Dave's class gave me the courage to face down the CC guys, and get my affairs in order.

Did my credit suffer? damn skippy..........did I get lots of ugly letters and calls???

yep........

but ten years later all is good. No bankruptcy and credit score is restored.
I am sure if I met him, his advice on INVESTING is different than his advice on getting out of a hole.

But you can't go wrong paying for cars and things cash other than a house.
Leveraging is something all together different. A person who cannot understand the ramifications of 35% interest and minimum payments on CC is not going to understand leveraging for positive cash flow. Again, too many of us today put the cart before the horse when it comes to money Vs wants

That's true. Having never read it only gotten info from the followers I'm assuming he "dumbs it down" for a lack of better words so people realize how much money they are throwing away.

$96k in CC debt? Whew, I wouldn't be able to sleep at night. Glad you got that straightened out.

[simplepeddler]

trust me...........I didn't............
I was blessed with another job, that came with a damn big shovel.

[Drake2]

I am going to post a contrary opinion to everyone else just so you can have other considerations. I believe that Dave Ramsey has a great plan that the far majority of American's need to hear in order to have financial success. However, his steps are necessarily for everyone. Let me tell you a story and see what you think. There is this guy, we will call him Bob. Bob was financially stable with no credit car debts, no car notes, no other debts outside of his 15 year home mortgage. Bob had the notion to take a big risk and start a new company. This guy doesn't have the income to facility self financing the project and has two choices before him. 1) Borrow the money. Create a business plan, present the plan to a bank and request a sizable loan to start the company. or 2) take Dave Ramsey's advice and save up money until the accumulated cash of $750,000 is reached to start the business.

Had Bob followed Dave Ramsey's plan the risk would have never been taken, and a start up company that now generates over millions in production and employees 28 people with well paying jobs and benefits would have never happened.

I think Dave Ramsey has excellent ideas, but isn't always the right answer. Judging from your post, to me you seem like a level headed guy that responsible with your finances. I am sure that you will be fine. What makes Dave Ramsey so good is that his plan addresses the far majority of American's that are not fiscally responsible. I love the recommendation above about reading "The Millionaire Next Door".

The main thing to remember is to have a plan. Know what you are spending money on by having a budget. Realize what are needs and what are wants. Have a longterm plan in place (how much money do you need to retire etc...)

Good post. Makes perfect since. Stay away from borrowing money unless like in your case the 'possible' return on the amount borrowed substantially outweighs the risk and interest to be paid on the said borrowed amount. I mainly need to figure a strict amount to save each month so that when my wife needs a new vehicle (hopefully several years from now) and then my children start needing vehicles and then my children's college tuition starts that I can keep from having to borrow. My wife and I have been pretty good at refraining from buying things that we "want" but know we can do without. We do struggle with turning down enjoying ourselves and friends with nice meals at steak houses and other similar restaurants that cut into our budget. I honestly don't want to give that up though as it is one thing we really enjoy doing together.

[riverat]

Dave Ramsey should only be considered by people that have dug a deep hole and have no where to turn but to buckle down and get out of it. Dave Ramsey is the way he is because he spent money like an idiot and he had to make a life change. Responsible hard working people, dont take that the wrong way, that follow him will quickly realize they have financial freedom but he has scared them so bad that they have no freedom. He tries to get people that have never really been in DEBT to be so petrified by it that they quickly find themselves rich but they missed living out what they really wanted in life.

1. Keep at least 3 months worth of living expense in savings, and don't ever touch it until you need to live off it(eat and pay bills)
2. If you're going to borrow money, do it to live, grow revenue, and be happy.. and borrow it against your home.
3. Only use credit cards to get the points
4. Your credit will follow you longer than your reputation, don't ruin it.

My dads saying that I will never forget, "Wealth is not how much money you have... But what you have you wouldn't take money for."

[Faithful Retrievers]

I am going to post a contrary opinion to everyone else just so you can have other considerations. I believe that Dave Ramsey has a great plan that the far majority of American's need to hear in order to have financial success. However, his steps are necessarily for everyone. Let me tell you a story and see what you think. There is this guy, we will call him Bob. Bob was financially stable with no credit car debts, no car notes, no other debts outside of his 15 year home mortgage. Bob had the notion to take a big risk and start a new company. This guy doesn't have the income to facility self financing the project and has two choices before him. 1) Borrow the money. Create a business plan, present the plan to a bank and request a sizable loan to start the company. or 2) take Dave Ramsey's advice and save up money until the accumulated cash of $750,000 is reached to start the business.

Had Bob followed Dave Ramsey's plan the risk would have never been taken, and a start up company that now generates over millions in production and employees 28 people with well paying jobs and benefits would have never happened.

I think Dave Ramsey has excellent ideas, but isn't always the right answer. Judging from your post, to me you seem like a level headed guy that responsible with your finances. I am sure that you will be fine. What makes Dave Ramsey so good is that his plan addresses the far majority of American's that are not fiscally responsible. I love the recommendation above about reading "The Millionaire Next Door".

The main thing to remember is to have a plan. Know what you are spending money on by having a budget. Realize what are needs and what are wants. Have a longterm plan in place (how much money do you need to retire etc...)

I agree. I to follow the principles as most succesful people probably do. The part I don't get is to me it seems he talks like a jerk to people who don't totally agree that all credit is the devil. Myself starting up three companies I couldn't have done it without leveraging some debt. It seems to me he got caught with his pants down and now has a story to tell. I do think its great to follow as far as a person digging out of a hole who can't manage money. I think for people that work for themselves you have to follow a little differnet model, but with probably more discipline. When you have the amount of cash flow a business can bring knowing that you have to reinvest or put back and not run buy what you want at the moment can be tough.

[flyhi2]

Dave could never be a farmer.

[dukluk]

Dave could never be a farmer.

+++10,000....you got that right....I've worked hard at farming, all my life....but, never dug a credit hole big enough that I couldn't climb out of, by just using common sense.

I really don't need a book to tell me that "I can't afford that, right now", or that I need to cut back on expenses, so that I can pay my creditors in a timely manner.

For some reason, Dave hates anyone who drives anything, except a junker-vehicle....I bet ole Dave doesn't drive a junker.

For instance, a farmer, basically, lives in his truck....I have to repair and work on a lot of my old farm equipment, so I'll be damned if I'm gonna try to live in and farm outta a junker-truck that's a piece of sheeit, and needs constant repairs and maintenance.

JMHO.

[SWAG]

Dave has admitted he will not offer advice on family farm calls. Heard it more than once on the radio show.

[stang67]

He tries to get people that have never really been in DEBT to be so petrified by it that they quickly find themselves rich but they missed living out what they really wanted in life.

I liked that.

[Smoke68]

This seems to be the way a lot of these Dave Ramsey threads always turn out. Haters gonna hate.

[simplepeddler]

I don't beleive it's hate.........maybe fear.
It's tough to say "no" when you friends call and want you to go eat a 250$ dollar meal.........

I think Dave is trying to carry on a ministry that he is called to. That of making people debt free. The Bible certainly taks about being debt free. Dave is a strong beleiver. He is convicted to do what he is doing.

It's easy to pick apart what he beleives, but for the larger part of American's its good habits to form.
Just think, that if we can teach the next generation about the evils bad or misuse of debt, we may not have as many on the dole.

light one candle- curse the darkness

[Smoke68]

I don't beleive it's hate.........maybe fear.
It's tough to say "no" when you friends call and want you to go eat a 250$ dollar meal.........

I think Dave is trying to carry on a ministry that he is called to. That of making people debt free. The Bible certainly taks about being debt free. Dave is a strong beleiver. He is convicted to do what he is doing.

It's easy to pick apart what he beleives, but for the larger part of American's its good habits to form.
Just think, that if we can teach the next generation about the evils bad or misuse of debt, we may not have as many on the dole.

light one candle- curse the darkness

Imagine if Dave's no debt line of thinking transcended into government spending? You want healthcare for all? Housing for all? Food for all? Great! Pass a balanced budget and tax enough to pay for it all. Actually have everyone write a check for their taxes every year rather than sneak it out of their check every month then give them a little refund at the end of the year.