anyone use the Dave Ramsey method??

[belle41379]

We LOVE Dave!! Even teach the classes now. Can't say enough about him.

 

[Mary•Poppins]

We were following Dave's plan before we ever read about him ... however, after reading him, we have been REALLY focused. The only debt we have is our mortgage and a HEL (which we used to build a vacation home). We are doing the reverse of his stragegy here by paying off our mortgage ... 55 months to go Then we start attacking the HEL loan. If we plan all correctly, we will be totally debt free in about 7 years! I wish we would have heard about him sooner.

Our only question about his plan is his take on investments. Be careful. He touts an average of 12% returns on your money ... not realistic in my mind. But ... sound advice on making sure 15% of your take home pay goes to retirement.

Good luck with whatever you decide.

 

[Disney845]

We got on the plan at the beginning of this year and it has already paid off exponentially for us.

We do a modified version including a slightly higher amount in BS1, we do not use envelopes, and we incorporate the YNAB idea of using last month's income to pay next month's bills (so technically it is a modified zero based budget).

We have not taken the classes, nor did I read the books. I got all of the information I needed online. I also like to watch Dave on Fox Biz. I take from his approach only that which specifically applies to finances (i.e. the "religion" surrounding him was one of my biggest turn offs to begin with, but I eventually realized that while I do not agree with everything about him, that his financial ideas are sound).

Not only has this helped our current finances, but it has really improved our communication with each other and I would say has strengthened our relationship to be working toward this joint goal of our future.

 

[bumbershoot]

Jennifer823, whatsthecost.com is back!

 

[house_of_princesses]

My fiance and I just finished a 13 week DR study offered through our church. Provides practical advice to be modified as each family deems necessary. Great motivation to get the debt paid. Loved the lesson on learning how important it is to communicate about finances and work together on providing financial peace to your family.

 

[Jennifer823]

Jennifer823, whatsthecost.com is back!

Yay! Good news

 

[HHSTigerFan]

that his financial ideas are sound).

Telling people to pay off lower interest rate cards first is NOT sound advice.

 

[bumbershoot]

Telling people to pay off lower interest rate cards is NOT sound advice.

Again, if it is the way to get people to actually PAY THINGS OFF, if it's the psychological trick to get the lower bills paid and put that money towards the other things, then it IS sound advice. If the alternative is continuing to mire yourself in debt, to pay the minimums because you can't see your way out, it's good advice.

DR doesn't work well for people who already have a clue! My brother and sis in law have been doing this stuff since they were in college...my brother helped his then girlfriend get herself out of CC debt while he was still a student. They are brilliant with money (and do very well for themselves), they paid for each of them to get Masters degrees (just for the heck of it, so they had them), then paid for sis in law to go through Duke Law with absolutely no grants, scholarships (well, it's possible she had those, but they never mention it), or loans. I told them how well we were doing since last year, and he was happy for me, but has absolutely no idea who any financial "guru" types are. They don't need them.

If you don't need them, if you have the mental and emotional ability to take a high interest, higher amount, loan/debt, and pay it down until it is gone...you hardly need him. Others don't have that natural ability, they get caught up in the total, and that's the person that this stuff helps.

Again, we were "lucky" because our lower total debt was also our higher interest debt, so I haven't had to deal with this, but it was DR that finally gave us a big huge clue on better ways to conduct ourselves financially. And that's a very good thing. He's helped others, who have had to deal with the issue that the bill they should pay first has lower interest than others, and that's a good thing.

 

[mistysue]

I pretty much did his method without ever knowing it was somebody't method. The only glitch in it for me- I actually spend more if I'm using cash than a credit card. I know this is unusual, but time after time I've found that if I carry cash I just spend more money on things. Plus I get rewards for using my cards when I do. I'm better off getting $1 in bonus money than spending more and always feeling like I need more money.

 

[HHSTigerFan]

Again, if it is the way to get people to actually PAY THINGS OFF, if it's the psychological trick to get the lower bills paid and put that money towards the other things, then it IS sound advice. If the alternative is continuing to mire yourself in debt, to pay the minimums because you can't see your way out, it's good advice.

DR doesn't work well for people who already have a clue! My brother and sis in law have been doing this stuff since they were in college...my brother helped his then girlfriend get herself out of CC debt while he was still a student. They are brilliant with money (and do very well for themselves), they paid for each of them to get Masters degrees (just for the heck of it, so they had them), then paid for sis in law to go through Duke Law with absolutely no grants, scholarships (well, it's possible she had those, but they never mention it), or loans. I told them how well we were doing since last year, and he was happy for me, but has absolutely no idea who any financial "guru" types are. They don't need them.

If you don't need them, if you have the mental and emotional ability to take a high interest, higher amount, loan/debt, and pay it down until it is gone...you hardly need him. Others don't have that natural ability, they get caught up in the total, and that's the person that this stuff helps.

Again, we were "lucky" because our lower total debt was also our higher interest debt, so I haven't had to deal with this, but it was DR that finally gave us a big huge clue on better ways to conduct ourselves financially. And that's a very good thing. He's helped others, who have had to deal with the issue that the bill they should pay first has lower interest than others, and that's a good thing.

Then perhaps you should have said "he offers sound financial advice for idiots"...

When we were deep in CC debt, I simply thought of it as one debt, not 9, in my mind I never owed Chase $1500, Discover $4500 etc.... I just owed $27K in credit card debt, paid minimums on all cards but one and paid as much as possible on the one currently charging the highest APR..

 

[Caitsmama]

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..

 

[bas71873]

I pretty much did his method without ever knowing it was somebody't method. The only glitch in it for me- I actually spend more if I'm using cash than a credit card. I know this is unusual, but time after time I've found that if I carry cash I just spend more money on things. Plus I get rewards for using my cards when I do. I'm better off getting $1 in bonus money than spending more and always feeling like I need more money.

ME TOO! I'm glad I'm not alone. I use my Discover card for everything and pay it off each month

 

[Caitsmama]

Then perhaps you should have said "he offers sound financial advice for idiots"...

When we were deep in CC debt, I simply thought of it as one debt, not 9, in my mind I never owed Chase $1500, Discover $4500 etc.... I just owed $27K in credit card debt, paid minimums on all cards but one and paid as much as possible on the one currently charging the highest APR..

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.

 

[donalduck]

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..

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.

 

[donalduck]

ME TOO! I'm glad I'm not alone. I use my Discover card for everything and pay it off each month

If you play with snakes they will bite you.

 

[ICF]

Then perhaps you should have said "he offers sound financial advice for idiots"...

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.

 

[donalduck]

yep i'd agree with that.

He's also wrong on credit cards being evil......

credit cards are evil

 

[ICF]

CASH IS KING. AND YES ICF CREDIT CARDS ARE EVIL.

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.

 

[minnie1928]

credit cards are evil

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

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

 

[Caitsmama]

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.

Then congrats to all of you - including your ten year old.. but, talk to us when your 10 year old turns 16... see if he/she is still so money smart.

I guess from seeing the replies on this thread lately , of those who have so much self proclaimed "common sense" - makes me glad to have more respect for others rather than so much "common sense".


I don't believe CC's are evil, i for one use my debit for everything - b/c i earn cash back. YEs, it's not a cc, but i know i could do the same for a cc, i just choose not to.
My debt is due to my former business closing, and me trying to hold together my family...... so although, i am blessed that my debt is not high, it's still debt, and i want to have the motivation that i need to take care of it - my goal is to be debt free in 2.5 years or sooner, except house.
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.