anyone use the Dave Ramsey method??

[minnie1928]

How do you know (as a newcomer to DR) which program to follow?? I checked out his site, but it's a lil' overwhelming!! I would like to learn more - but not sure where to start. I don't want to shell out crazy money for a course - i would rather start with a book or online info..

If you get Total Money Makeover from the library, it will tell you everything you need to know. Much of Dave's information is repeating the same thing, so you only need to pick one source and then you'll get the hang of it.

 

[Caitsmama]

If you get Total Money Makeover from the library, it will tell you everything you need to know. Much of Dave's information is repeating the same thing, so you only need to pick one source and then you'll get the hang of it.

Thanks Kelly! I will check that out then!

 

[HHSTigerFan]

And perhaps some need to think a little before hitting the "reply" button so fast.
It's great that you saw YOUR debt that way, but others like to see that they are taking care of one at a time, it's a personal conquorer thing for some (me included)..
So, if i follow his advice, and pay my lowest debt first, am i an idiot???

Again, maybe think before you reply with remarks like that.

Not an idiot, but I do think you are making a mistake, and its certainly not sound financial management..

 

[HHSTigerFan]

very true...

It amazes people the people that swear by this guy, when all he tells you is common sense.

I guess my wife and I were blessed with plenty of that, but telling you to budget and not spend more money then you have is something my 10 year old knows.

This is what drives me nuts about his advice...

Using my current situation, if I called in and said we had $27K in credit card debt plus our $102K mortgage he would call us stupid, regardless of our income...

But if I called in and said we had no credit card debt and a $129K mortgage with our income of around $100K, he would say we are doing awesome..

Our entire cc debt is with one card, right now the APR is 8% and we could easily move it to a HELOC anytime we want or need to (which would also make us doing well according to Dave)...

But then later on he preaches that moving debt from one credit card to another isn't solving the problem, just changing who a person owes...

I guess I am a big picture fan, before I accuse a person of being stupid, I want to look at the big picture... big picture, we are doing ok, not great, but ok and slowly paying that CC debt down in case the APR gets jacked..

 

[garydeb]

Caitsmama,

The best thing that we did was read Total money makeover and read some of the other budget website. We used different parts from each to make our own plan. We first saved our $2K. We then paid the largest and highest interest rates first to the smallest. We both know how much money we have budgeted for all expenses. We put everything on the CC card and pay it off every month. We use the reward points toward our vacations. You have to come up with a plan that works for you so that you can stick with it. If the plan is too difficult most people will only use it for two months. We were debt free until we purchased our new house. We have budgeted to have it paid off in 10years instead of 15years.

Good LUCK!!!!
Debbie

 

[Carmell226]

I actually just went to his website and learned as much as I could there. I am not going to pay for the FPU or anything like that. We are going to follow a modified version. I think that the cash system is a good idea for us, because we rely to heavily on our debit card and that can get you in trouble. I will be paying off my higher interest rate debt first and I will not be following his advise as far as investing is concerned.
I think alot of people swear by Dave Ramsey because his program motivated them and helped them to get out of debt, I don't see what is so wrong with that! Just because you don't agree with his methods doesn't mean they haven't helped alot of people and if anything trying to get out of debt makes them smart, not idiots!

 

[Leshaface]

What are these envelopes that some of you posters are speaking of?

 

[ICF]

So, what some need to understand is that there are other reasons for some who have cc debt, other than just being wasteful, and racking up huge bills... most of us have it b/c of other circumstances. The cc's did not spend the money, we did. So, we really can't blame the plastic.

I fully appreciate that some people might have ran into financial problems due to 'emergencies' of some type.

However, if a 1 time medical or other crisis came around that shouldnt cause you to have to become a follow of Ramsey and his type. If it were TRULY a 1 time issue, then you would have had good money managment before this issue and should at somepoint into the future hopefully be able to overcome that issue without cutting up your CC's and sticking money in envelopes.

It's people who say that he turned their lives around and such that are leading others to believe that their issues were more of a personal choice rather then a crisis situtation which led them to needing someone to tell them that it really is a bad idea to spend more than you make in a given week/month.

 

[donalduck]

O YES it's me again. I am not wrong your wrong. Why is it that you say that I am wrong when you could be wrong. Have you ever thought about that?

You again?!?! You're like a bad penny.

We've done this game before, and you're just as wrong now as you were a month or two ago when we played this game so I dont really want to waste much time on you.

However, just to remind you...

People being irresponsible and stupid due to not knowing how to use a CC, doesn’t make them evil.

 

[donalduck]

Oh, geesh...do we have to have this conversation AGAIN!

How about if we simply agree to disagree on this topic?

I can agree with that. But you need to talk some sense into ICF.

 

[TheRatPack]

Just listen to him on the radio or at daveramsey.com you can listen to the day before for free without buying anything. He is also on the Fox business channel everynight at 8
I have never bought his book or took his class. I just followed what he talks about. I am debt free after 30K in credit cards. CASH IS KING. AND YES ICF CREDIT CARDS ARE EVIL.

Can I ask you how long it took you to get rid of 30K in credit card debt...and how much you put toward them every month?

 

[abmitch01]

I got the Total book from the library just to see what everyone is raving about. Some of it doesn't work for me- I definitely spend more when I have cash. Like I carried very little cash in Disney to reduce impulse purchases. I knew if I bought us sodas on credittoo many times, I'd see it on Mint and regret it later. Once the cash is gone, I don't get that same feedback, it's easier to just blow it, kwim?I have had credit cards for 22 yrs and never have I not paid in full each month. I put everything I can on one card and track it and use Mint so I know exactly where every penny goes. I use the rewards from Discover to buy landsend overstock or their sale clothes for my family and myself and shop through Discover.com to get extra rewards. So to me, the benefits outweigh the "evilness" of it. I keep some reserve cash in savings in case the snake someday bites, as one poster mentions. But even if it bit, the reserve would cover more than one month's bills and I'd be able to use what I contributed to my Roth with no penalty to cover longer periods of difficulty. I've had downturns, like a divorce, but was still able to keep my head above water, luckily.

I agree that his advice could be lifesaving for those who need to hear it, though. Whatever it takes to change your mindset as long as it isn't some crazy get rich scheme. And the basic stuff is what I try to teach my kids now.

One part I don't get, is the paying off the house before saving for college. I worry about then not qualifying for financial aid. And I haven't quite maxed out my 401k and Roth contributions. I believe in maxing out those contributions before saving for college or paying off the mortgage. It sure is tempting, though to aim for that goal!

does anyone else not keep a budget per se, but monitor spending on sites like Mint instead? it works for me to just keep an eye on where I stand each month than to put it all in a spreadsheet.

 

[donalduck]

Can I ask you how long it took you to get rid of 30K in credit card debt...and how much you put toward them every month?

It took a few years. It was worth it though. It really depends on how much you make. The amount that I put on the creditcards was any money that I had left over at the end of the month after paying all of my normal bills. That is the debt snowball that dave talks about. Say you have 10 creditcards you pay the min payment on all of them execpt for the creditcard that has the lowest balance on it. Then all of the money you have left over after you pay all of your bills you put on that lowest balance. Good luck. You can do it. Let me know if you have any other questions.

 

[donalduck]

I got the Total book from the library just to see what everyone is raving about. Some of it doesn't work for me- I definitely spend more when I have cash. Like I carried very little cash in Disney to reduce impulse purchases. I knew if I bought us sodas on credittoo many times, I'd see it on Mint and regret it later. Once the cash is gone, I don't get that same feedback, it's easier to just blow it, kwim?I have had credit cards for 22 yrs and never have I not paid in full each month. I put everything I can on one card and track it and use Mint so I know exactly where every penny goes. I use the rewards from Discover to buy landsend overstock or their sale clothes for my family and myself and shop through Discover.com to get extra rewards. So to me, the benefits outweigh the "evilness" of it. I keep some reserve cash in savings in case the snake someday bites, as one poster mentions. But even if it bit, the reserve would cover more than one month's bills and I'd be able to use what I contributed to my Roth with no penalty to cover longer periods of difficulty. I've had downturns, like a divorce, but was still able to keep my head above water, luckily.

I agree that his advice could be lifesaving for those who need to hear it, though. Whatever it takes to change your mindset as long as it isn't some crazy get rich scheme. And the basic stuff is what I try to teach my kids now.

One part I don't get, is the paying off the house before saving for college. I worry about then not qualifying for financial aid. And I haven't quite maxed out my 401k and Roth contributions. I believe in maxing out those contributions before saving for college or paying off the mortgage. It sure is tempting, though to aim for that goal!

does anyone else not keep a budget per se, but monitor spending on sites like Mint instead? it works for me to just keep an eye on where I stand each month than to put it all in a spreadsheet.

Once you pay off the house then you take all of the money that you where paying on your house and then start saving for your kids college and pay CASH FOR IT. That way you don't have to take a LOAN from the goverment and make them rich. Why in the world would you want to pay 10 yrs of interest on a college loan?

 

[ICF]

I have had credit cards for 22 yrs and never have I not paid in full each month. I put everything I can on one card and track it and use Mint so I know exactly where every penny goes. I use the rewards from Discover to buy landsend overstock or their sale clothes for my family and myself and shop through Discover.com to get extra rewards. So to me, the benefits outweigh the "evilness" of it.

shhhh....dont let Donald Duck hear you....

They're EVIL cant you see it?!?!?! Pay no attention to the interest free loan and rewards you get every month....THEY'RE EVIL and one day will cause your downfall.

 

[abmitch01]

But can you realistically max out your retirement savings every yr and pay off your mortgage at the same time? I'd feel like I was flying without a net if I backed off on retirement savings, kwim?

not sure on how much loan taking for college would be reasonable. was hoping to use the Roth contributions (not earnings) and then a combo of aid, grants, scholarships, loans for me and the kids.

 

[donalduck]

shhhh....dont let Donald Duck hear you....

They're EVIL cant you see it?!?!?! Pay no attention to the interest free loan and rewards you get every month....THEY'RE EVIL and one day will cause your downfall.

Your right ICF they will cause your downfall. I am glad your listening to me for once.
If credit cards aren't EVIL then why can't they set up there tables on collage campus anymore? If credit cards aren't EVIL why did the GOVERMENT have to step in and put regulations on what they can and can't charge for. You need to wake up.

 

[HHSTigerFan]

Your right ICF they will cause your downfall. I am glad your listening to me for once.
If credit cards aren't EVIL then why can't they set up there tables on collage campus anymore? If credit cards aren't EVIL why did the GOVERMENT have to step in and put regulations on what they can and can't charge for. You need to wake up.

So the airlines are also evil?? Automotive industry? tourism industry? doctors are evil? They MUST, considering Big Brother regulates them as well...

The need for regulation says more about the citizens of this country than it does about a few banks..

 

[donalduck]

So the airlines are also evil?? Automotive industry? tourism industry? doctors are evil? They MUST, considering Big Brother regulates them as well...

The need for regulation says more about the citizens of this country than it does about a few banks..

Yep they are all EVIL. Speaking about this country where are we headed for?

 

[ICF]

Your right ICF they will cause your downfall. I am glad your listening to me for once.
If credit cards aren't EVIL then why can't they set up there tables on collage campus anymore? If credit cards aren't EVIL why did the GOVERMENT have to step in and put regulations on what they can and can't charge for. You need to wake up.

If listening = mocking then yes I am......