Dave Ramsey and Vacation

[goinback]

I am reading Dave Ramsey's "Total Money Makeover". I don't see anything so far about his opinion on vacationing if you have not paid off all of your debt. For those of you who are doing the makeover, have you ever read or heard him address this issue?

 

[princessofcandles]

I am sorry to say that he says until all the debt snowball is complete (EVERYTHING except the house) you are on "rice and beans ... beans and rice". That means no going out to eat, no movies, no shopping, no trips. Then once you have only morgage (or rent/utilities if not a home owner) you HAVE to have a budget that outlines how every penny you bring in is spent before you bring it in. This is an extended budget with the envelope system. Well then you can make an envelope marked "Disney". Absolutely no borrowing or credit card use to pay for trip. It has to be paid in full with cash. And the money spent during vacation must be paid with cash. "Cash" being allocated money saved. No credit cards or loans.

Don't shoot.... I'm just answering .... not judging.

 

[ICF]

Do what you want and think you can afford based upon your financial situation....

Why live your life a certain way just because of what somebody wrote in a book???

 

[tink2dw]

I'd say it depends on what your debt is. And if you have any available cash flow, that will not add to your the weight of your debt.

I don't have a lot of debt, no credit cards or loans, but I don't have anything over the monthly rent and utilities either. So in my case I would say wait and try to save up to pay cash.

 

[TnTWalter]

CLEARLY ASKED ABOUT THOSE ON THE PLAN....if you disagree, just ignore the post. Duh! Why does every post become a debate? Ugh....where's the fish slapping smiley??

If you want to debate Dave Ramsey, start your own darn thread! Geez!

That said.....
We CELEBRATED FINALLY BEING DEBT FREE by going to WDW for the FIRST TIME...it was also our first official family vacation [besides camping and lil weekend trips] since having kids.....

IT WAS FANTASTIC!!!

It's amazing once you don't have all those payments how much and how fast you can SAVE for vacation.

It stinks while you're there BUT the REWARD is FAR GREATER.

Do what you want but I would definitely at least NOT ADD new debt with a vacation; at least save up for the vacation and do it economically and finish the snowball upon return.

But it would make a great INCENTIVE to becoming debt free....it might motivate you to get out of debt FASTER....if you know you can go to Disney as soon as you're debt free.

FYI we didn't do the big EF until AFTER Disney. We just kept the small EF; celebrated with Disney then came home and built the EF up!

And look, we're going again less than 2 years later!!! to the POLY baby!! Debt Free with our big EF! Woo Hoo....

Trish

 

[DawnM]

Here is what we did, FWIW:

We have committed to NO expensive vacation until all major debt is paid.

So......we paid off all CC, adoption, and Student Loans before any vacation, but still had a car loan only left.

And even then, we went on a an $800 vacation vs. a Disney or more expensive vacation.

We will do expensive only after all debt is paid AND we have CASH to go.

So, yes, Dave says NO VACATION, but I did need to make it work for us or I would have gone insane.

Dawn

 

[goinback]

Thanks everyone. I certainly do not wish to open up a debate! It was an innocent question posed to those doing the plan. I will say that Our upcoming vacation is cash paid, but I struggle with the guilt of knowing that could go towards the "snowball". We are certainly current on everything. Just not debt free. I will also say that we own a business that is pretty high-stress( as most businesses are.) I feel like we really need time away from it. It is a hard choice, not everything is black and white all the time. I can't forsee the future, if we would need that vacation cash down the road, but I sure do not want to walk through life without a break! *sigh* It is never easy is it?

 

[Toby'sFriend]

It is a hard choice, not everything is black and white all the time. I can't forsee the future, if we would need that vacation cash down the road, but I sure do not want to walk through life without a break! *sigh* It is never easy is it?

I've heard him address it on the show a couple of times.

#1. His main point is that you have to pay cash for everything and he will say over and over that HE doesn't dictate your budget for you. YOU or YOU AND YOUR SPOUSE need to sit down together and agree on a budget. If you agree to have a vacation envelope, then have a vacation envelope. Just do it with a plan and make sure your bills are paid and you never incur more debt.

#2. I think alot of people on the DIS only see the world in terms of

no vacation vs $4500 Disney Vacation

I guarantee there are several 4 or 5 day trips near your home that can be fun, relaxing, a break, time spent with and will cost a fraction of Disney - like well under $1000. I think Dave would recommend that if you really "need" a vacation and are still shoveling out from under thousands of dollars in debt, it would be better to concentrate on these.

 

[jwann]

OP, I think Dave Ramsey would say that personal finance is first and foremost personal. A cash-paid vacation that allows some family-closeness time might be just enough to fire you up to get back on the debt snowball. Some people need only a couple years to get out of debt and others need 10+ years. My husband and I would be totally depressed (and probably divorced) if we didn't take a vacation in 10 years! While we were becoming debt free, we went on vacation on the "extra" monies we worked to get -- like selling things on ebay, yard sales, an extra job, etc. I think it is important that suspending the debt snowball to go on a vacation must be a mutual decision on you and your husband's part. It would not be a "vacation" if you were feeling guilty the whole time. So, if we were y'all, we would find a vacation that we BOTH agreed on as well as a spending limit. Having said that, perhaps you should consider a Disney Cruise. Here's why -- in order to get your BEST price you need to book WAY ahead (like 18 months or more) and you need a minimal down payment. Then you have several months to save up. Also, spending on the cruise is pretty controlled. No food or entertainment expences. Childcare is free and there can be some quality family AND couple-time. We have used the DCL reward a couple of time and highly recommend it. (p.s. IMHO don't be tempted to take another cruise line - you'll be disappointed)

 

[goinback]

I kinda feel like this is not an over the top vacation. We are staying at POP for three days, not going to the parks. We are doing Kennedy Space Center one day(already paid for the tickets) We are then heading for Vero Beach for 4 days.(got 20% discount in value season, thanks to a coupon from a generous DISer!) Our airfare was ticketless travel funds with Southwest from a previously canceled full-out Disney vacation. I got POP for $59 a night. So, not counting the airfare, we are doing this vacation for $1200. This does not include food, but we will only spend our normal grocery budget because at Vero we will have a kitchen. Ok, I am done justifying !

 

[Disney Mommy 3]

Don't feel like you have to justify!! It's for your FAMILY!! We too have our own business and the stress level is definitely higher than for most people. We have been going once a year for a while now. It is a big thing we need at this point in our life-RELAXATION. I admit some Disney days are not all relaxed, but we are not making corporate decisions

We are also getting debt free-our home we just moved out of is still on the market & after that we will be pretty much home free. Am I gonna hold off on our Jan trip to see if it sells? No way. The decision to be debt free is not to make you feel guilty about spending time with your family. The Dave Ramsey way is just that, a way-you are not bound to him with your decisions. He is offering help to people who seriously need guidelines and boundaries in finance. I think it's great! If you have the ball rolling, take a trip and don't feel guilty-have a blast.

 

[goinback]

Don't feel like you have to justify!! It's for your FAMILY!! We too have our own business and the stress level is definitely higher than for most people. We have been going once a year for a while now. It is a big thing we need at this point in our life-RELAXATION. I admit some Disney days are not all relaxed, but we are not making corporate decisions

We are also getting debt free-our home we just moved out of is still on the market & after that we will be pretty much home free. Am I gonna hold off on our Jan trip to see if it sells? No way. The decision to be debt free is not to make you feel guilty about spending time with your family. The Dave Ramsey way is just that, a way-you are not bound to him with your decisions. He is offering help to people who seriously need guidelines and boundaries in finance. I think it's great! If you have the ball rolling, take a trip and don't feel guilty-have a blast.

Thanks It is nice to know someone understands what it is like to live in the "own your business "world!

 

[OnourwaytoWDW]

Do what you want and think you can afford based upon your financial situation....

Why live your life a certain way just because of what somebody wrote in a book???

I'm just going to assume that you don't know about the Ramsey thing since. But I could be wrong.
It has nothing to live your life on what he wrote. It's about making peace with your life and stop paying debt and becoming debt free. How to handle creditors and making your life more managable and leaving something behind for your family other than debt.
I personally, am trying to get credit card debt free and paying for my vacation in cash for next Oct 2008. This book as opened my eyes and has helped tons!

 

[OnourwaytoWDW]

Thanks It is nice to know someone understands what it is like to live in the "own your business "world!

Count me in! Own a party store for 3 years. Good days and bad days.
UGH!

 

[crisi]

OP, I think Dave Ramsey would say that personal finance is first and foremost personal.

Except that isn't what Ramsey says. Ramsey's program is that you limit yourself to needs - real needs (food and shelter) until your debt is paid. There is no recharging yourself by spending money.

I'm no Ramsey fan, but his is a method of absolute diet until you reach your goal weight. There are no "Saturday cheats" In his mind, and he is right about this, any money you spend - ANY MONEY even the money going to buy the rice and beans - is money that isn't being used to pay down your debt. So limit those expenses to the absolute minimum. That means if you want a vacation - you borrow a friends cabin or go to grandma's house (and even that is going to have gas expenses).

If you personal finance is first and foremost personal - don't bother to get outside advice at all - and certainly don't pay for advice you aren't going to follow anyway.

Part of the goal behind Ramsey is to learn to recharge and enjoy life without spending money. Anyone who needs to spend a lot of money to "recharge" is only going to be back where they started.

 

[C.Ann]

Glad to see you are climbing out of debt and joining the "pay-as-you-go" group.. If your small vacation is being paid for in cash - by extra money you have earned specifically for that - and you are still maintaining your debt pay-off, I think it's awesome that you're going to be able to make this trip!

Have a great time!

 

[grumpy28]

I have never read anything by Dave R before. How does he compare to Suze Orman?

 

[mickeyfan2]

But this will be your second WDW vacation in 8 months (January and September 2007). That is certainly not needed to recharge.

 

[ICF]

I'm just going to assume that you don't know about the Ramsey thing since. But I could be wrong.
It has nothing to live your life on what he wrote. It's about making peace with your life and stop paying debt and becoming debt free. How to handle creditors and making your life more managable and leaving something behind for your family other than debt.
I personally, am trying to get credit card debt free and paying for my vacation in cash for next Oct 2008. This book as opened my eyes and has helped tons!

I know a few things about him from reading here and on a couple of occasions catching his radio show while traveling, although it's been a few years since I've heard him since I don't think he's carried locally.

The OP's question was interested in Ramsey's opinions on it....to me, she not some guy that wrote a book / does a radio show should know her financial situation the best....regardless of what he says to do. If you think you need the trip, take it...even if it is a quick weekend away somewhere. Not all trips have to be $5K disney vacations by any means.

Most of what he says involves common sense. I guess it works for some people and that's great for them, but cutting up the CC and saying how bad they are is just funny (at least to me). People should always do their best to live within their means and not have to be told that by someone else not to spend money you don't have.

I've not paid a cent in CC interest, but have dozens of CC's. I've earned Disney $$s, free hotel stays, gift cards, extra savings at Penney's / Kohls and so on. Paying cash for all of those things would have cost me thousands of $$s. CC's aren't bad....buying things you can't afford to pay for when the bill comes due is.

 

[goinback]

But this will be your second WDW vacation in 8 months (January and September 2007). That is certainly not needed to recharge.

The vacation in Jan was only with one of our three kids. In the 8 months since, We have dealt with a cancer scare with our son ,my father having quadruple bypass surgery, my mother becoming a paraplegic, my husbands father in the hospital with an intestinal disorder, and the death of 5 beloved pets. Not to mention, having to hire all new employees twice, and having employees steal money from us. I DO feel the need to recharge, I want to run away, if only for a week, with my precious little family, and enjoy them away from the strains of business, employees, ailing parents, house repairs , school, etc. This has been the hardest year of my life to date. I certainly am not looking for sympathy from you all, life has its bumps and storms, and I am in the middle of some of them, but I also am not looking for judgement, just wanted a simple answer on what DR had to say on a subject. I guess you all did not need to know all those details but, I guess it is a natural instinct to defend yourself when you feel someone is wrong about you.