Dave Ramesy Timeshare Thread on Budget Board

[shantay1008]

Well, the full argument is something along the lines of invest the upfront DVC buyin and the money you make combined with not paying annual dues will outweigh the "savings" of DVC if you just pay cash for a standard hotel room. Yea, like most people would invest that money...most would have blown it on other vacations/cars/boats/consumer electronics/beer/loose women/loose men/frappe-latte-things/etc. And their opportunity cost analysis never takes into account unquantifiable things like, I don't know, being happy and how that differs from person to person.

Happy, uhm...it's Lent, you're not supposed to be happy.
-Joe

LOL...yes, the deadly combination of loose women/men and frappe-latte-things has led many to financial ruin.

 

[vascubaguy]

One poster had a well-articulated argument against DVC, but he said he could use the money he would have paid in annual fees, etc., to pay for a stay in a moderate every year instead. This doesn't seem like a very good argument to me, because one of the main reasons most of us like DVC is because we like to stay in deluxe hotels, isn't it? So you can't compare moderates to deluxe rooms and say, well, see, the deluxe rooms are costing you a lot more, so you're getting a bad deal. Noooo....you're staying where you want to stay and are willing to pay more for it. My understanding is that with DVC, those of us who want to stay in deluxe rooms look at buying into the vacation club as, not bargain shopping, but as trying to get the most bang for our buck on money we were going to spend anyway over the years.

I haven't read that thread or completely read thru all of this thread yet... I'm not sure how that person plans to get any type of decent vacation staying at a moderate based on the MN fees they pay. I mean, I could probably get 6 nights at a moderate (with AP rate) for what I pay in MN fees... but using those points, I can get almost 19 nights in a studio! I'm not sure how that person justified their argument... I may have to go read a little more this morning.

 

[TnTWalter]

on his show cannot afford them and cannot afford the large maintenance fees. You have to agree that there are many timeshares out there that aren't good deals. He has a limited amount of time to sink basic principles into people's heads so he tends to err on side of 'no'. My generation [30's] and those after mine for sure were raised thinking we were entitled to everything and we didn't, no 'shouldn't' have to wait...thus credit cards are at all time high, car payments forever mentality, 2nd loans, etc. huge debt/equity first loans, etc. His advice is more the advice your grandmother just KNEW. He also recommends The Millionaire Next Door [same basic ideas there, great book], and other books. I checked out his books from the library a few times until it was harder to do and so then I bought one when it was $10. I have not spent another dime but I enjoy his advice and it reinforces my philosophy which is absolutely not the norm [wait until you've earned the money]!

DVC owners are a little more savvy then the average time share person calling his show, but I'd rather him be harsh and let the savvy weed out what they need so that he can help someone who just isn't getting it. For example, I have good friends who just bought a timeshare in Mexico for $15K plus $5K yearly maintenance and they can't even afford plane tickets to go there! And they charged it to a credit card! DUH!
See? ;o)

Trish

 

[shantay1008]

on his show cannot afford them and cannot afford the large maintenance fees. You have to agree that there are many timeshares out there that aren't good deals. He has a limited amount of time to sink basic principles into people's heads so he tends to err on side of 'no'. My generation [30's] and those after mine for sure were raised thinking we were entitled to everything and we didn't, no 'shouldn't' have to wait...thus credit cards are at all time high, car payments forever mentality, 2nd loans, etc. huge debt/equity first loans, etc. His advice is more the advice your grandmother just KNEW. He also recommends The Millionaire Next Door [same basic ideas there, great book], and other books. I checked out his books from the library a few times until it was harder to do and so then I bought one when it was $10. I have not spent another dime but I enjoy his advice and it reinforces my philosophy which is absolutely not the norm [wait until you've earned the money]!

DVC owners are a little more savvy then the average time share person calling his show, but I'd rather him be harsh and let the savvy weed out what they need so that he can help someone who just isn't getting it. For example, I have good friends who just bought a timeshare in Mexico for $15K plus $5K yearly maintenance and they can't even afford plane tickets to go there! And they charged it to a credit card! DUH!
See? ;o)

Trish

Ouch. I hope your friends can work that out. I just read in one of these financial planning books (that I checked out from the library ) that more people are declaring bankruptcy than are graduating from college these days. Can that possibly be true?!

 

[disnutt]

Really, I am debt free because I dont spend more than I earn. My Mom's teachings, right after "brush your teeth after every meal".

Anewman-you're fortunate your mother taught you well. Many people in this country didn't have that good luck. My parents divorced my father never used credit but my mother with whom I lived did. Guess which one I followed early on? I've since learned that Dad did actually know best but I got convinced by reading Financial Peace and listening to Dave Ramsey. Fortunately, my father doesn't rub it in!

For others questioning Dave's sincerity. His information is available free of charge on his radio show and on his websites www.daveramsey.com and/or www.mytotalmoneymakeover.com. Yes, you can choose to attend his live events (tix currently around $29) if you want to for a pep rally sort of experience or join Finacial Peace University which comes with a LIFETIME membership whereby you can attend/reattend as often as you want for around $100-ish. There is also a website membership for some about of money. However, you don't need to buy this stuff and he's not doing the hard sell on any of it.

His advice is really just common sense repackaged. There's nothing wrong with someone making a living off of selling us what we need.

 

[Anewman]

Anewman-you're fortunate your mother taught you well.



His advice is really just common sense repackaged. There's nothing wrong with someone making a living off of selling us what we need.

Thank you for the compliment.

And your last lines were really what I was trying to point out.
Common sense should tell persons they dont need to pay for common sense.

And you dont find it ironic that he tells persons "that is a waste" or "do not throw your money away on that", but never tells them that his advice is just common sense and they should save those $90 towards his book and online community(1 year access)?

 

[kaw1106]

Really, I am debt free because I dont spend more than I earn. My Mom's teachings, right after "brush your teeth after every meal".

So true!!! So true!!! I think I should sell a book and make some money too. Maybe I will call it..."Don't run with scissors, or you might get hurt"

 

[canda]

Did anyone else see the Steve Martin skit on SNL a few weeks ago? It was a guy selling a "how to control debt" type book called Don't Buy Stuff! Selling for about $29.99. It was one page long. "If you have money - buy stuff. If you don't have money, Don't Buy Stuff!" So funny on a number of levels, and so TRUE.

DisFlan

I took a Dave Ramsey siminar, and this SNL skit is exactly what Dave Ramsey is about. He pushes the use of cash. It works. I am almost out of debt. It is about being debt free so you can build wealth.

Dave is right. A timeshare is a bad invesment of wealth earning money. And the response in this post is to call Dave Ramsey an idoit. You do know he would just laugh at that. The money I have spent on DVC, verse what it could earn by 2042 would make you sick to think about it........except, I love Disney, Disney World and DVC. I doubt anyone bought DVC because it is a sound investment, We bought it out of emotion and love for a place. It is not always about wealth building, but enjoyment out of life. Dave Ramsey would be the first to say that. (just don't take out a loan to do so.)

If you knew the freedom that you feel once you are free of debit.

 

[shantay1008]

Really, I am debt free because I dont spend more than I earn. My Mom's teachings, right after "brush your teeth after every meal".

I wish you'd let us know how you did it. I'd love to get rid of this mortgage, and we're going to have to finance a new car in the foreseeable future. Sigh.