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Thoughts on this Dave Ramsey stuff?

Discussion in 'RD's Lounge' started by wash11, Jan 16, 2020.

  1. wash11

    wash11 Well-Known Member

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    I've been on the road quite a bit lately and podcasts are my go to entertainment. I started listening to Dave Ramsey and like the message. We've followed his debt free principals without knowing it, the investing- not so much. Had I followed this stuff in my 20's i'd be competing with One-A-Day on daily posts of the cool shit i'd be buying weekly.
    My oldest kid and her husband make ridiculous money and are getting ready to start ol' Daves journey, which is cool to see as a dad.
    Anyone else use his methods to make forward momentum?
     
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  2. McKay

    McKay Well-Known Member

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    Yes, been listening to him for almost 17 years starting when i was about 23. Got out of debt including mortgage by about 28ish if I remember right. No going back for me. I don't have some of the really cool shit that other buddies have with debt, but what I do have I own it all outright.
     
  3. Mandelon

    Mandelon Coffee makes me poop.

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    As with anything, lots of good ideas and some wacky ones. You can find his podcasts on I-Heart Radio and listen with no commercials.

    Living within one's means is really a basic idea, but not everyone gets it. Setting up future cash flows is really the key to financial freedom. Rental property income is a simple way that most everyone can grasp and achieve.
     
  4. Bigbore500r

    Bigbore500r Well-Known Member

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    I used to listen to him in the car sometimes. The "debt free" idea is obviously sound and a best practice for anyone. I don't agree with some of his logic regarding vehicles. Makes no sense to keep an old car that is "owned" that is a maintenance time bomb, VS a cheap new car where the payment is less than the gas savings. Things like that.

    He also does not focus on anything but the numbers. He has zero feel for life. Example - your kids are only 8 years old ONCE in your life, maybe you shouldn't put off that epic powell family trip. The debt VS life experience / timelyness of your life experiences is a tough balance.
     
  5. c_land

    c_land Well-Known Member

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    I read the book and use it as a guiding principle following the steps, but applying without the crazy discipline. I don't have debt other than the mortgage, save the 15% towards retirement, make a monthly budget etc. I use the budgeting and it really makes you think before throwing down the cash for something you didn't budget for.

    I think his ideas are generally good, but his rigid approach to everything with minimal flexibility isn't always as practical as he makes it out to be in his radio show.
     
  6. wash11

    wash11 Well-Known Member

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    This is where I fall. Amy and I have really lived. The travel, the friends, the parties, the kids growing up in Glamis...……. On the Ramsey program I suppose these are ok in moderation when you can truly afford them. I still can't say that I would give up all our crazy stories and experiences for a pocket full of cash.
     
  7. brgrcru

    brgrcru Well-Known Member

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    If I followed his program , 100% . I would be wealthy and unhappy .
    Rather be happy Enjoy life a little and not have to much debt.
     
  8. Bigbore500r

    Bigbore500r Well-Known Member

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    Same here. My "debt free" periods get derailed by vacations and stuff from time to time. I make responsible financial choices, try to roll as debt-free as I can. I do have a mortgage, but try not to carry credit card or "toy loan" debt for too long. I'll borrow 20k for a used motorhome and pay it off quick, things like that. I don't finance 150k rigs for 20 years. I don't buy 60k trucks. I do what I can with what I have, plus just a "hair" more...cause I don't want my family to miss out on the prime years doing what we want. I usually structure my purchase in a manner that im never "upside down" and i would be cash positive should I need to sell at any point. If the numbers dont make sense I don't buy it
     
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  9. McKay

    McKay Well-Known Member

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    The wife and I waited to do the kid thing till i was 29 and she was 35. So that helped out a lot to get well established first.
     
  10. Looking Glass

    Looking Glass Well-Known Member

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    I have listened to him on andoff for years and I do have one issue with him and others who believe it is your OBLIGATION to "TIP". Damn that pisses me off so much. First I do not know where this deal began,but I was raised that if you were given exceptional service by a pleasant server and everything was a wonderful experience that a Tip was in order. Dave and society believes that these Poor servers work hard long hours,carry heavy trays,attempting to pay bills etc. Dave,come out here in the real world,you have no clue how many people work hard,shitty hours,shitty conditions,drive long distances and Do Not get a Tip. I have been in bars where sitting at the bar if you do not tip annd well every round you become invisible. Then there is the adding on a tip of 20-30% for a group over 10 or whatever? I promise you do not tack on a huge tip to my bill before I have even been seated is Not going to happen with me. The fact he goes on and on about this and then the Kicker says if you do not tip and tip very well STAY HOME. Dave I have a TIP for you= F.O!!
     
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  11. petie6464

    petie6464 Well-Known Member

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    Dave Ramseys financial teachings are biblical lessons on finance, they work. Besides helping you to keep out of debt it allows you to be generous.

    The joy of being able to help others because you are not tied down in endless debt is really the reward of these principles.
     
  12. Bigbore500r

    Bigbore500r Well-Known Member

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    Tip is really TIP, and stands for - To Insure Promptness. You tip for good service, and the promise of receiving an "expected" tip should motivate the server to perform well, as their function is to serve you! I am all for tipping well, but it is based on service received. I don't feel obligated to tip well as a general condition. If i get bad service, you get a few bucks as a formality and i'm on my way. If you do well, i tip well.
     
  13. Done-it-again

    Done-it-again Well-Known Member

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    If you lesson to him and follow it to a T. You will have a boring life while working, then when you retire you'll be to old to enjoy the money you saved.

    If you are a person who cant spend within your means then listen, if you save a little and have a rainy day fund then keep doing what your doing.
     
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  14. DWC

    DWC Well-Known Member

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    Spot on BB. Bought an RV, lost my ass. Sold our Nautique and lost my ass. Lost a little on the Magic due to timing and not wanting to own 2 boats. Guessing i won’t make money on the deck boat :). I’ve spent more money than i thought possible on a “turn key” place in the last week. Wouldn’t change a thing. The memories are priceless. In the end it’ll just be less for the kids to fight over when i kick it. Their best chance is me going down in a work related plane crash and doubling up on insurance. :eek:
     
  15. riverroyal

    riverroyal Well-Known Member

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    What is this ‘debt free’ thing you speak of?
     
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  16. RiverDave

    RiverDave In it to win it

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    Stacy and I are going to start doing it at some point.. we listened to some of those call in shows and the people are saying they make 45k a year there cars are paid off etc.. owe a little on the house and the guy is saying “well that’s a good start”

    I couldn’t even imagine the conversation that would be had if I called in. He’d call me a f’n idiot. Lol
     
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  17. 5150

    5150 Well-Known Member

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    I'm a fan. Dave's advice is pretty much tailored to those that are already in financial trouble. I think the debt snowball/baby step plan is solid for those looking to gain ground. I like the fact that he doesn't support bankruptcy, he never recommends it as a way out. One by-product of being debt free and paying as you go is that no credit score is worse than a bad credit score. A friend learned this recently while trying to purchase a home. He contacted Dave's Endorsed Local Providers (ELP) for real estate and Churchill Mortgage for financing. He had the keys to the new house, start to finish in 6 weeks. Those ELP's don't mess around.

    Why do callers always ask him "How are you"? LOL His answer applies to most of us......
     
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  18. RCDave

    RCDave Well-Known Member

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    I believe the foundations of his strategy are very very sound. Live within one's means, be extremely cautious taking on college debts, finance primary residences with significant down payment and shorter amortization, and minimal leverage strategy. DON'T be a slave to the lender or an employer.

    All are the basis of wealth accumulation and minimize risks related to employment and down economic cycles.
     
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  19. 5150

    5150 Well-Known Member

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    He's pretty brutal with some of the callers!
     
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  20. dribble

    dribble Well-Known Member

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    When I had no money, I used debt as leverage. Generally his advice is sound but Not everyone fits into the same box. I got my first loan from Wells Fargo (behind the gas station where I worked) when I was 19. I went directly to the manager. He gave me an unsecured loan of $500.00 to buy a motorcycle. Since that time (45 years ago) I have never had a 30 day late payment and always get the best rates. My credit score has been over 800 since they started using FICO. I had a 2.75% 30 year mortgage on my house near Folsom Lake while my money was conservatively invested, making 4-8 percent. I could have paid off the house but it didn't make sense to do so. Of course the divorce set me way back but I was in a position to keep my boat, motorcycles, tools etc.
     
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  21. Flatsix66

    Flatsix66 Well-Known Member

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    I like his tagline:
    "Where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW (or DCB, RZR or ???) as the status symbol of choice."
     
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  22. Flatsix66

    Flatsix66 Well-Known Member

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    On the other hand, if a waiter has five customers, 4 tip well and 1 doesn't guess who gets the long pour or fast service or doesn't? Oh, keep tipping bad and your food may get special toppings:)
     
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  23. jet496

    jet496 Well-Known Member

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    Well, over the decades I've spent half my money on booze, women and toys, the rest I just squandered. :)
     
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  24. Bigbore500r

    Bigbore500r Well-Known Member

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    I don't skip the tip, but I dont tip WELL if they do a bad job. And thats after the meal :D

    If they keep screwing with me, ill give 'em just the tip.....
     
  25. bldrinker

    bldrinker Well-Known Member

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    I try to take his program into consideration. But if I followed it I would not have a life.

    it’s all about balance, enjoy life but plan for the future as well
     
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  26. DILLIGAF

    DILLIGAF Well-Known Member

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    Lol. Holy shit

    I can relate
     
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  27. rmarion

    rmarion Well-Known Member

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    I'm a believer....

    it WORKS!!

    My son paid off his wife's 170k student loan in 7 years making 100k.
    He'll retire at 50.

    Ramsey disciples did not lose every at the last CRASH!!!
    Why, cause they live within their means..
     
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  28. Dennis-19

    Dennis-19 Well-Known Member

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    I subscribed to the Rasmey mentality and it's been nothing but a blessing.

    The Richest Man in Babylon by George Clason is good read for anyone looking to change their spending/saving habits.
     
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  29. Mcob25rg

    Mcob25rg Well-Known Member

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    I figured some would know who he was, and others would call him the devil after they found out. Moderation, combined with common sense is what he really preaches. Some of this is health related. Life in general is stressful, and debt makes it MUCH WORSE, so living within your means generally means living longer, but possibly without the experiences - we each have to do it our own way - this will be a bigger issue as we age.
     
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  30. jetur3

    jetur3 Well-Known Member

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    Dave Ramsey is great. He has good tool's to put your life on track.
     
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  31. Waffles

    Waffles Well-Known Member

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    Ive caught myself replying with "Better than i deserve" more often than not after i started following him lol
     
  32. StevieHops

    StevieHops Well-Known Member

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    My wife and I have been on his plan pretty strictly for the last 3 years. The only debt we have is our mortgage. To the people saying there is no fun on Dave's plan that is true only till you hit baby step 4. Once you are in Baby step 4 (paid off all debt except the mortgage) you can really let off the gas. You can still have all of your fun trips as long as you budget for it. You can still have all the fun toys as long as you pay cash. We found making the budget and sticking to it really gave us more freedom in our spending a hell of a lot less stress and fighting. His every dollar budget helps a ton too. If you get his app I recommend spending the $99 to have it upload all of your bank transactions so you can allocate your income and spending.
     
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  33. Bigbore500r

    Bigbore500r Well-Known Member

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    I track our household budget and bills / income with a sweet excel spreadsheet. Everyone i know fucks with me "you gonna buy that Jerry, or you need to run it thru your spreadsheet first?". I have no problem telling them "hell yea im gonna throw that in the spreadsheet!". Impulsive spending is the devil
     
  34. 78Southwind

    78Southwind Well-Known Member

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    He's a kook. Though I don't agree with everything, I think Dave is good especially in a world that doesn't teach you how to create wealth or be a good steward of wealth. My belief is that this should be taught early in life. I have always said that most should at least take a community college class on Financial Planning and if interested in Business take a Small Business class.
     
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  35. blue wonder

    blue wonder Well-Known Member

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    Just a question for the “know it alls” or “know betters”...do any of you have a net worth of $55million dollars????....I didn’t think so, funny how people say gotta live while you can, just a wild guess on my part but if I had a net worth of $55 million dollars I think I could live pretty damn comfortably and have the best toys available, paid for and wouldn’t give a damn if they broke....what’s that my $300k DCB blew a motor and a drive, oh fuck I don’t have the money to fix it, what am I gonna do with this big ass payment on a boat that doesn’t run...oh wait that wouldn’t be the case if I had $55 million dollar net worth would it...but I guess other people know better than someone worth that kind of money, guess he’s pretty stupid and doesn’t know shit to have gotten that far in life
     
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  36. Waffles

    Waffles Well-Known Member

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    You gotta chill out Mr. Ramsey. No one is questioning your methods or if they work.....
     
  37. bowtiejunkie

    bowtiejunkie Well-Known Member

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    My reply would be along those of BigBore’s above.

    I think if you put 20% of your income into saving for retirement/investing, only carry a mortgage, and have the bases covered in regards to emergency fund, life insurance, etc, you can go have fun with the remaining monthly income.

    I can’t seem to shake the mortgage. Outside the mortgage, I’ve somehow far exceeded my retirement financial goals to this point living on one income and raising a family. But, failing on saving for kid’s college and any real emergency fund (it is in form of individual stocks instead of liquid cash). Being the resident handyman, auto repair tech, auto detailer, part-time landscaper, and wife being the house cleaner and landscaper, has saved countless thousands of dollars. I’ve used Excel budget spreadsheets, and Quicken, but neither achieved what I was looking for. I now just run a simple Excel spreadsheet that doubles as a checkbook balancer and expense forecaster (with a chart to show ending checking balances over time).
     
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  38. Cole Trickle

    Cole Trickle Member

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    Dave Ramsey never broke down on rice road when it was 115 degrees out in an old piece of shit Ford Econoline Van before cell phones when he was a 14 y/o kid.

    That 10 hour stay on the side of the road melting was burned into my memory and because of that I will never own an older used "road/Travel" vehicle with over 100K miles on it.....lol

    I agree with alot of his principals but some of them flat won't work in Socal or for people that want to enjoy life :D
     
  39. 78Southwind

    78Southwind Well-Known Member

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    That's some funny stuff right there and hits hard with me since at age sixteen I was broken down right there with four of my friends in my 1970 Bug. Thank God for pay phones at Desert Center, another friends family about an hour behind us that stopped and picked up my friends. And of course my Dad with a tow bar picking me up four hours later. lol
     
  40. Cole Trickle

    Cole Trickle Member

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    I was with my asshole ex step dad/brothers and we were a long way from a pay phone...lol

    I learned to hate him and Dave Ramsey that day....But if I'm being honest I would have rather had Dave Ramsey as my step dad even though he isn't fun...haha
     
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  41. Shrub Lurker

    Shrub Lurker Well-Known Member

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    He was supposed to come to Fresno for a live event. That’s what we paid for.
    What we got was his millennial daughter.
    Wonderful she can follow in daddy’s footsteps. BUT I PAID TO SEE HIM NOT A FUCKING COVER BAND!
     
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  42. rmarion

    rmarion Well-Known Member

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    btw, Dave Ramsey is a boater and Barefoots on Mastercrafts
     
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  43. LazyLavey

    LazyLavey Well-Known Member

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    And boatless!
     
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  44. zhandfull

    zhandfull Well-Known Member

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    Thar is some funny shit! I wouldn't pay to see him though Lol...
     
  45. scottchbrite

    scottchbrite Well-Known Member

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    My brother in law works for Ramsey Solutions. He actually works side by side with Dave’s son. They (sis and bro in law) don’t fully grasp the life part of finances, IMO. They miss out on a lot of life being overly frugal. My sister was involved in a car accident not long ago and her POS Hyundai was totaled. I think she got in the neighborhood of 9k for it. My bro in law went and bought a Used Kia for her that was less than 9k. Btw- they have no house payment either. They literally don’t have anything of value other than their house. I think it’s partly a cult :D Atleast I know they won’t be asking me for money one day!
     
  46. cofooter

    cofooter Well-Known Member

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    What he is teaching is fundamental, but he's got a cult like following of people that subscribe to his program. Hes a marketing genius in selling a simple concept to the masses. Most people with any common sense can figure it out themselves. I do enjoy his shows as he provides some good info/perspective sometimes.
     
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  47. Shrub Lurker

    Shrub Lurker Well-Known Member

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    Well I paid to see his ass and didn’t !
     
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  48. Flatsix66

    Flatsix66 Well-Known Member

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    Yeah, he seems to be of the belief that once you reach a point where you are out of debt, house paid, all goals met and ahead of plans for retirement savings (25x income saved) that you should start to enjoy spending and giving some portion of your money to the needy/church. He says he likes cars (Jaguars) and boats.

    As far as cult like, well the whole program seems very religion based and often taught in church congregations.

    Like everyone else has said, that all sounds great but I wouldn't trade the good times we have have had and couldn't really afford to be further ahead. The real solution is just make more money and don't raise your lifestyle, or stay DINKs.
     
  49. 5150

    5150 Well-Known Member

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    Same! Catches a lot of folks off guard.
     
  50. DILLIGAF

    DILLIGAF Well-Known Member

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    I have listened a lot to him as I drive many miles. I do a lot of what he teaches but am an outsider looking in if you will.

    Not into the religious aspect of it all.

    If you are smart in life you pick up things along the way and apply them to your life. This is just another tool in the box.

    Debt free has always been appealing to me. It does allow you to feel less pressure and more freedom in life.

    The hamster wheel many are on is a killer of lives.
     
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