Anybody doing Dave Ramsey? Thoughts? Opinions? Experiences?

[gatormom2tots]

I have been reading up on this. We are one of those families that looks "good" as Ramsey says but we are starting to struggle with debt. I am a teacher and my DH is an attorney but with student loans in excess of $150,000 and debt brought on when DH was just starting and me being a SAHM, we are not feeling like a family with that much income. WE have 2 car payments, nice furnishings, eat out, etc.

I was just curious to hear what other thought, experience, etc. with this program. It appears we could finish step 2 in about 3 years (pay off all debt including loans, cars, etc) but that just seems a little simplistic.

Any thoughts?

 

[bored]

Dave's info. is pretty simple if you both buy into it. We did it and within one year we we're debt free except for the house. We were able to buy two cars this year with cash because of the program on one income. DW only works 2 days a week. I highly recommend it.

 

[dvcgirl]

I would think "simplistic" is good. Ramsey's plan is simply paying off your debts, smallest to largest using the "snowball method". Pay off the smallest debt, then apply that money and everything else you can scrape up at the next largest debt, and so on.

He's all about cutting lifestyle to the bone, eating "rice and beans" and knocking it out. It's simply living beneath your means. A concept that a lot Americans haven't considered.

I don't think you need a fancy, complicated strategy to pay off your debt. The deeper you cut lifestyle, the faster you're out of debt.

 

[mb_uh]

Very good, we have not done it but I know a lot. After this trip I will get back on the program of saving instead of sending.

 

[momz]

we have taken Dave's advice. we are debt free except for the mortgage. We are working on our 3-6 month savings plan. And soon will be making investments. That is a nice place to be I tell you. But...we know nothing about investing because up to this point, we have been paying the piper....now, to pay ourselves.

We have paid off 17K in credit cards, about 35K in car loans, about 19K in student loans, and now pay cash for everything we buy. All this while tithing too. It's been about 2 1/2 years.

The best thing, for us, is that years ago when we bought our house, we decided to stick with a mortgage that could be managed if just one of us were working. Then, we both worked. So, now, with all other debt paid off, and 2 incomes, we are hoping to own our house in 5 years.

The consequence of these decisions is that we don't "look good" as you say. Our house is average, our cars are older ('01, and '04 models), we don't wear the latest and greatest brand name clothing, etc....So what? I don't care so much about those things. But, on the up side. We will be able to travel, and will have fabulous holidays...soon.

 

[TnTWalter]

I stock up when he has $10 book sales and give out to anyone who seems remotely interested and for gifts. I am so hoping just ONE 20something listens....

So yes. Great advice on getting out of debt. People are mixed on his investment strategies but for the gist of how to live financially free, it's GREAT.

My husband's best friend is dying and I was just booking travel arrangements for hubby to go out and help him take care of things [he has wife and 3 young kids]....I love that we can do that without worrying about the money. I still looked for best deals but knew we could swing it. He's doing what's important and he is able to do it because we have financial PEACE.

 

[indimom]

We didn't discover Ramsey's books until after we had worked our way out of the majority of our debt (we still have a mortgage), but we pretty much followed his snowball plan. It was surprisingly quick and easy, once we were both on board. And now that we've read his books, we are working our way through the next steps. The simplicity of his plan is what I love about it.
We have a fully-funded emergency fund and are working on building it up to an even healthier level. We are saving toward our next auto so we can (hopefully) buy with cash. We are still paying on the mortgage, but overpaying when we can. We are also starting a plan to save for a new roof (15yo now) and new siding (okay shape, I've just always hated it).
By far our weakest position is in investments. We are only 50% there and I don't expect we will make a LOT of headway on this until after our mortgage is PIF, but we are working on it.
Long story short, it is well worth it for the peace of mind. We were able to pay up front for the first stage of DS braces ($2,000); a two-week Disney vacation; and another $1,900 in unexpected medical and auto bills without batting an eye (okay, maybe there was a twitch) because of Dave's plan. We are catching back up from the med and car bill despite a slow summer at my job. And I love the freedom and comfort it gives me. I don't ever want to go back. No house, furniture, car, cellphone or designer bag is worth it.

 

[C_leen]

Hi-

I found this website inspiring. We are a bit more scattershot than the true DR system, but clearly a lot of people need this sort of structure to assess their situation and start setting some financial goals. It is nice to know you aren't alone as you reset your lifestyle.


http://livinglikenooneelse.com/

Best of luck to you.

 

[gatormom2tots]

Thanks for the replies...I am really excited to get started on this and have a plan! The idea of no debt except mortage in 3 years is almost 2 good to be true!

 

[bumbershoot]

Definitely look at the above website (llnoe.com also works to get there...realized that after a month of typing out livinglikenooneelse, LOL).

Ramsey has helped us tremendously! Some people quibble with the exact order of his plan, how exactly he suggests that things be done...but the reality is, we weren't doing ANYTHING before, and it has worked very well for us. I can't argue with it.

 

[jessica52877]

I always wonder because we have no debt (besides house and hacking down on that) and an emergency fund what he can do for me. Any thoughts on the matter? We don't seem to have any extra each month though.

 

[HHSTigerFan]

The good of Dave- Live within your means... duh

The bad of Dave- Pretty much everything else, financially speaking he is clueless and has a person he his is a self promoting idiot..

 

[DawnM]

We did a similar program, called Crown Financial, at our church. DH and I got completely out of debt, including cars and student loans. We now only pay cash for everything, including home improvements.

We will never go back to consumer debt of any kind if we can help it.

It is beyond freeing.

Now, if I could just apply the same principles to my weight loss.

Dawn

 

[prncess674]

DR plan is interesting, but the key is BOTH partners need to be on board. You mention that you are a SAHM and your DH is an attorney. Please make sure your DH is on board and realizes that he will be giving up a great deal of his personal comforts that I am sure he feels entittled to due to his long career journey and long hours. Perhaps you can come up with some sort of hybrid approach. For example, maybe not completely cut the budget, but suggest that you as a SAHM can control and then suggest things further in the process that can whittle away at the debt. Start with the things YOU control :

buy $100s of dollars of kid's clothes at the chi-chi boutique?
commit to clipping coupons and planning menus based on sales
cooking from scratch in order to save convenience food prices
abstain from furniture shopping
abstain from personal impulse shopping (clothes, shoes, etc.)


Keep a log of how you have saved and see if DH notices before asking him to give up certain parts of his life. DR is a bit simplistic but it is easy at the SAHM to say DH, no you can't eat Subway everyday! If you want DH to give up Subway sandwiches then you should be willing to pack him a lunch that makes him feel loved at lunch not that he is being punished as the major bread winner.

 

[gatormom2tots]

DR plan is interesting, but the key is BOTH partners need to be on board. You mention that you are a SAHM and your DH is an attorney. Please make sure your DH is on board and realizes that he will be giving up a great deal of his personal comforts that I am sure he feels entittled to due to his long career journey and long hours. Perhaps you can come up with some sort of hybrid approach. For example, maybe not completely cut the budget, but suggest that you as a SAHM can control and then suggest things further in the process that can whittle away at the debt. Start with the things YOU control :

buy $100s of dollars of kid's clothes at the chi-chi boutique?
commit to clipping coupons and planning menus based on sales
cooking from scratch in order to save convenience food prices
abstain from furniture shopping
abstain from personal impulse shopping (clothes, shoes, etc.)


Keep a log of how you have saved and see if DH notices before asking him to give up certain parts of his life. DR is a bit simplistic but it is easy at the SAHM to say DH, no you can't eat Subway everyday! If you want DH to give up Subway sandwiches then you should be willing to pack him a lunch that makes him feel loved at lunch not that he is being punished as the major bread winner.

Actually I am not a SAHM at this time- I stayed home a couple of years with the kids but am a teacher. He is completely on board- thank goodness!

 

[bumbershoot]

I always wonder because we have no debt (besides house and hacking down on that) and an emergency fund what he can do for me. Any thoughts on the matter? We don't seem to have any extra each month though.

Well, with DR you start by working out a budget, and making sure that every dollar has a set destination. So if you're mystified by not having extra, that could help you find where it's going.

The good of Dave- Live within your means... duh

The bad of Dave- Pretty much everything else, financially speaking he is clueless and has a person he his is a self promoting idiot..

Yeah, and that's why we got the title to our car today. 2 years before our loan was done. Because his stuff is just so awful.

That's 2 years on top of a whole life of not being all that intelligent about money, all CHANGED because of DR.

And of course I've never paid him anything...never joined his website/message board, got his book from the library. So self-promoting or not, he has helped me tremendously and has changed our lives (and our marriage!) in one short year.



What we were doing before was not working. We both know "live inside your means", we just weren't *doing* it. Years and years and years of knowing but not doing...and DR changed it thanks to how he communicates!

 

[HHSTigerFan]

No, you got the title of your car early because of YOU finally making good choices... We have been there and done that, got out of debt sooner than we would have listening to Dave...

Sorry, paying off debt regardless of APR... Idiotic!!

Is not having a 30 year fixed mortgage a good thing when rates are below 5%?

Collecting CC rewards really a bad thing?

His style is brutal, the "my way is the ONLY way" is simply wrong, attaching what he does to religion is wrong, especially when he starts calling people names... the guy is a self promoting hypocrite with bad financial advice.

JMO

 

[HHSTigerFan]

His other one that I just got done laughing at is his anti timeshare mantra regardless of the price paid... I just bought enough Wyndham points for 2 weeks of vacations on Ebay for a total of $197 and now annual fees of $1508/year... Is 14 nights in a 2 bedroom at Bonnett Creek for $112 really a bad investment?

 

[indimom]

No, you got the title of your car early because of YOU finally making good choices... We have been there and done that, got out of debt sooner than we would have listening to Dave...

Sorry, paying off debt regardless of APR... Idiotic!!

Is not having a 30 year fixed mortgage a good thing when rates are below 5%?

Collecting CC rewards really a bad thing?

His style is brutal, the "my way is the ONLY way" is simply wrong, attaching what he does to religion is wrong, especially when he starts calling people names... the guy is a self promoting hypocrite with bad financial advice.

JMO

DR will be the first to admit that "paying off debt regardless of APR" doesn't make Number Sense. BUT, he is trying to get people who are not used to paying down debt and living within their means, motivated. And, one of the best motivators is success. When they see those bills falling away one by one, they feel successful and in control, they keep going.
As far as the credit cards, they are what got MANY of these same people into trouble in the first place. They simply can't control them, so suggesting that this type of person use a credit card to earn rewards is a recipe for disaster. That's like telling an alcoholic they can have one drink a day for their heart health. It's not going to work. How do I know?? I was one of those people. We would have success for a while, then use the card for "just one thing" and before you know it, we had a bill we couldn't pay at the end of the month. It took us a long time to master having a credit card without abusing it.
I wouldn't call him an idiot, there are MANY DR success stories out there.
I understand your logic, but sometimes what works for one person, doesn't work for another. Clearly you didn't need the DR approach because these were not issues for you. But these are the issues for many Americans and his approach addresses the problem and deals with it in a way that helps these types of people find success.

 

[HHSTigerFan]

I wouldn't call him an idiot, there are MANY DR success stories out there.
I understand your logic, but sometimes what works for one person, doesn't work for another. Clearly you didn't need the DR approach because these were not issues for you. But these are the issues for many Americans and his approach addresses the problem and deals with it in a way that helps these types of people find success.

And that is my problem with him, his "one size fits all" method is wrong when it comes to financial advice..