Anybody doing Dave Ramsey? Thoughts? Opinions? Experiences?

[dvcgirl]

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

I know what you are saying with respect to your comments on DR, but most people don't analyze APR and keep their CC just for "reward miles". Most of the people who call his show are living above their means, some way above their means. He's correct that for most people, this is a psychological problem more than a financial one. And I like how he shakes people and gives them the wake-up call that they need....that most of the country needs.

I have no debt and all and am not religious, but I still find him entertaining. I don't agree with a lot of what he says, but I do like his no-nonsense approach in helping people to get "gazelle intense" and pay off their debt.

I don't agree that people should completely stop saving for retirement if they have an employer match on their 401K. I don't believe that if you have complete control of your finances that CCs are evil. We use AMEX for nearly every purchase and get enough miles to fly to Europe every other year. And I really don't believe at all in his investing advice. I always tell people to listen to him up to the point that you get out of debt, and then look elsewhere for investing advice.

That is an interesting buy you got from Wyndham on the timeshare. The Timeshare industry is in complete free fall. Mr. Timeshare, David Siegel, owner of Westgate Resorts is scrambling for his financial life right now. I lived in Orlando and actually worked in the neighborhood where he was building the largest house in America. It was 88,000 square feet....the first time I drove past it I thought "why are they constructing an office building in this neighborhood". Well, he never finished it, and just put it on the market for 75 million dollars, 100 million if the buyer actually wanted it completed to the original specs.

People are giving away timeshare interests like you bought simply to get out of paying the yearly maintenance fees. That shows you just how insane things got in our world.

 

[TnTWalter]

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?

If you consider it an investment it is a bad one. If you consider it prepaid vacation, it's ok. Just don't fool yourself into thinking it's more than it is, cause it's not.

If you don't like DR, don't continue to read these threads. You've said your peace, move on.

I just don't get why it upsets you so...

 

[crisi]

I'm not the biggest Dave Ramsey fan as a person (self promoting rings true), and some things I disagree with (12% stock market return - Warren Buffet doesn't think you'll see that in the next decade consistantly). But there is no arguing that for people who buy in, it works. His folksy no-nonsense talk is rather blunt.

I don't think it does much if your issues aren't normal. I just finished his book because my brother in law is having some issues and wanted to see if it would help. Its not at all useful for us (we have no debt, not even a mortgage - and a better investment plan, IMHO, than what Dave recommends). And it isn't a good book for my brother in law either - as he will NOT give up going to grad school (and the debt that entails) right now.

At least Total Money Makeover is not a budget book - its a motivational screed that lays out a basic plan. But it doesn't say things like "spend $x on groceries and $y on rent." Instead what it says is get intense and cut out everything you don't need until you don't have debt and have your emergency fund. That may be too much for some people, but for those committed to the idea, there is no arguing that it works.

 

[TnTWalter]

I'm not the biggest Dave Ramsey fan as a person (self promoting rings true), and some things I disagree with (12% stock market return - Warren Buffet doesn't think you'll see that in the next decade consistantly).

Its not at all useful for us (we have no debt, not even a mortgage - and a better investment plan, IMHO, than what Dave recommends). And it isn't a good book for my brother in law either - as he will NOT give up going to grad school (and the debt that entails) right now.

.

I've been trying to figure out some investment planning here. I've read John Bogle's book. He's obviously into Index Funds. Any books or information that you recommend?

Also debt free. We still use a budget. Make every dollar work. I think that's a key plan in any financial plan, BUDGET.

 

[HHSTigerFan]

I know what you are saying with respect to your comments on DR, but most people don't analyze APR and keep their CC just for "reward miles". Most of the people who call his show are living above their means, some way above their means. He's correct that for most people, this is a psychological problem more than a financial one. And I like how he shakes people and gives them the wake-up call that they need....that most of the country needs.

I have no debt and all and am not religious, but I still find him entertaining. I don't agree with a lot of what he says, but I do like his no-nonsense approach in helping people to get "gazelle intense" and pay off their debt.

I don't agree that people should completely stop saving for retirement if they have an employer match on their 401K. I don't believe that if you have complete control of your finances that CCs are evil. We use AMEX for nearly every purchase and get enough miles to fly to Europe every other year. And I really don't believe at all in his investing advice. I always tell people to listen to him up to the point that you get out of debt, and then look elsewhere for investing advice.

That is an interesting buy you got from Wyndham on the timeshare. The Timeshare industry is in complete free fall. Mr. Timeshare, David Siegel, owner of Westgate Resorts is scrambling for his financial life right now. I lived in Orlando and actually worked in the neighborhood where he was building the largest house in America. It was 88,000 square feet....the first time I drove past it I thought "why are they constructing an office building in this neighborhood". Well, he never finished it, and just put it on the market for 75 million dollars, 100 million if the buyer actually wanted it completed to the original specs.

People are giving away timeshare interests like you bought simply to get out of paying the yearly maintenance fees. That shows you just how insane things got in our world.

I really don't think I could have passed it up, the fees per point are very low and the kicker was that we just went to Glacier Canyon in the Dells for 2 nights and it cost us over $800 for the same room type we can now get 14 nights for $1500.. we listened to their sales pitch, laughed at their price and went home and bought resale..

 

[crisi]

I've been trying to figure out some investment planning here. I've read John Bogle's book. He's obviously into Index Funds. Any books or information that you recommend?

Also debt free. We still use a budget. Make every dollar work. I think that's a key plan in any financial plan, BUDGET.

I like index funds and I also do some individual stocks for dividend payers - I keep cash on hand and when consistent dividend payers are selling low, I buy. I'm earning something like 8% in dividends on Merck because I bought when the market was low. I keep a bunch in an institutional bond fund as well - I've had the same one 15 years and its paid pretty well (Harbor Bond - the instituional fund). I cobbled my investment strategy together from college finance courses, so no help on the books. I don't plan on 12% though. I plan on 8% OVER MY LIFETIME - with the dividends and bonds letting me get gains when the stock market is down. If I get 12% - WONDERFUL.

 

[MEM]

I actually like Dave and think there is no one better to motivate those in serious debt to dig themselves out of the hole they created. However, I also think he should stick to debt counseling and not give investment advice. My DH cringes when he hears Dave give that kind of advice.

And regarding Dave's quoting the Bible and such - his faith is part of who he is and his approach is not likely to ever change. I find it refreshing, actually.

 

[disneymagicgirl]

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.

This is the problem at our house. DH says he goes to work and makes money, if he wants to golf every week then he will.
So, I just do everything I can to cut cost (incl turning off lights behind him, up the thermostat when he isn't home, cut coupons, etc) b/c I only work 1 day a week as a RN. At least that is some cost cutting in the home.
The good thing though, is we don't have debt except our mortgage and my van (which we bought used and put down 50% and pay an extra $100 every month), so at least he is good about not spending $$ that isn't there.

 

[HHSTigerFan]

And regarding Dave's quoting the Bible and such - his faith is part of who he is and his approach is not likely to ever change. I find it refreshing, actually.

Then he needs to stop calling people names such as idiots, scum bags and other such names..

 

[mrsklamc]

I've only heard him use such terms in reference to the debt collection industry, and I know of no religion that would prohibit such terms if they are believed to be true.

OP, the fact is, whether he's perfect or not, whether the plan is perfect or not, it works, for a lot of people. I've never heard anyone say, "You know, I worked my tail off at that Dave Ramsey stuff and it just doesn't work.

As for what Dave can do for you if you have an emergency fund and are debt free, there are lots of other topics that are covered, you just hear the most about eliminating debt because it takes the longest, so that's what people talk about. In comparison, getting a will or making sure you have proper insurance coverage, doesn't take long.

 

[disneymagicgirl]

Then he needs to stop calling people names such as idiots, scum bags and other such names..

u must work for a predatory lender or u wouldn't take it personally...

 

[crisi]

I've only heard him use such terms in reference to the debt collection industry, and I know of no religion that would prohibit such terms if they are believed to be true.

OP, the fact is, whether he's perfect or not, whether the plan is perfect or not, it works, for a lot of people. I've never heard anyone say, "You know, I worked my tail off at that Dave Ramsey stuff and it just doesn't work.

As for what Dave can do for you if you have an emergency fund and are debt free, there are lots of other topics that are covered, you just hear the most about eliminating debt because it takes the longest, so that's what people talk about. In comparison, getting a will or making sure you have proper insurance coverage, doesn't take long.

His book is actually pretty full of calling people names, calling people stupid for what they do. Some people may have an issue with name calling - particularly from someone who feels the need to proclaim his religion.

I have the opposite problem with the religion in Dave Ramsey's teachings. Money works the same way if you are Christian or atheist or Buddhist or Muslim or Jewish or Wiccan. The bible verses and "God says" don't add a lot of value, and turn some people off. I almost wish he'd do two editions, one where he takes out the Bible stuff (and chooses a few less "God's Help" stories) and one where he cranks up the Bible stuff (and the "God's Help" stories) and tones down the nastiness.

 

[mrsklamc]

Some people may have an issue with name calling - particularly from someone who feels the need to proclaim his religion.

People can have that issue all they want. I was saying that I know of no religion that teaches that it's not ok to say someone is being stupid when they are.

He does not agree with you that money works the same whether you have a religion or whether you are atheist, so it would be dishonest for him to teach that.

 

[crisi]

People can have that issue all they want. I was saying that I know of no religion that teaches that it's not ok to say someone is being stupid when they are.

He does not agree with you that money works the same whether you have a religion or whether you are atheist, so it would be dishonest for him to teach that.

(psst....I'm on your side).....

 

[bored]

His book is actually pretty full of calling people names, calling people stupid for what they do. Some people may have an issue with name calling - particularly from someone who feels the need to proclaim his religion.

I have the opposite problem with the religion in Dave Ramsey's teachings. Money works the same way if you are Christian or atheist or Buddhist or Muslim or Jewish or Wiccan. The bible verses and "God says" don't add a lot of value, and turn some people off. I almost wish he'd do two editions, one where he takes out the Bible stuff (and chooses a few less "God's Help" stories) and one where he cranks up the Bible stuff (and the "God's Help" stories) and tones down the nastiness.

The Bible stuff is part of why he does what he does. It would be ridiculous to take it out.

 

[HHSTigerFan]

u must work for a predatory lender or u wouldn't take it personally...

Actually, I am all for the murder and rape of people that work for these predatory lenders that you speak of, they should all be free game in todays society.. Right?????

And what the heck does "predatory lender" mean??? Just its a catch phrase in todays society where nobody is help accountable for their actions???

 

[HHSTigerFan]

The Bible stuff is part of why he does what he does. It would be ridiculous to take it out.

Most things he does are ridiculous, but I guess that sells and companies like Churchill Mortgage will spend big money to get their name mentioned over and over..

 

[3girlsfun]

We tried it, we failed. Sort of.....

We wanted to try the program, but, when we started the program we were already so burnt out from not have any money from job loss and maternity leaves. However, we did learn something from the book, to do a budget, and to always pay our bills before we spend any sort of money. Which we do. I would always put off paying a bill, so, all my bills were always about a month late. No more!

We are planning on starting back Hard core on Dave's plan September or October. (Except for the money we are spending on our trip to WDW.)

We are going to start snowballing our accounts, but, we will at the same time be saving for a vacation, and saving money. I know he wouldn't agree with that! We will never be as gazelle as some people.

 

[bored]

Most things he does are ridiculous, but I guess that sells and companies like Churchill Mortgage will spend big money to get their name mentioned over and over..

blah, blah don't you have something else that helps people out to complain about?

 

[HHSTigerFan]

Someone asked for opinions on him, sorry, don't think listening to someone that steers people to take financial advice from people that he has a financial interest in is always the best thing to do..