Dave Ramsey Overspent at Disney

[Bob NC]

Anytime you turn money into an abstract it becomes easier to spend. And weave gotten so good at money being an abstract. We don't see our pay checks any longer. It's direct deposit. Do no need to go to the bank, we use plastic for everything, not carrying cash, and its hard to track your balance in your head.

Also, if we all got paid in cash on Friday and right outside the company gate was an IRS man demanding we hand him 35 or 40% of it, this nation would see an uprising like you couldn't imagine.

 

[leebee]

Also our society has changed. We've are now a society that feels we NEED all this stuff to be happy.

Take a look at the dis forum. How many post over the year do you read that go like this. "Please help me force some one to go to disney because XYZ is only little for a short time, or I really want to go or fill in the blank".

Some how on these boards if one does not go to disney life as we know it would end.

I think it's the same message every day with every thing. I just got an invitation last week to some thing called a "5th grade achievement party" the 5th grader wanted cash so they can rent a limosene to take them to school on the last day. Every aspect of our lives have been "ramped" up. I won't even go into what happen when I was young and in the 5th grade. You got bubuska and went on to 6th grade.


A young couple now is not going to want a 1100 square foot home because now, the normal home for a starter home is 2200 square feet and has a gourmet kitchen.

We've become prosperous and just like we aren't going back to typewriters and landlines we are not going back to the days of the 60's

Even the concept of a starter home falls into the "want bigger and better" category. Do you really think couples in the 1960s thought of this major investment, costing multiple times their annual salary, to be the place to start? Most people bought the house they intended to live in for the rest of their lives, at least all the people I knew. Many families stayed in the same home until they retired, and often their kids are the ones who bought the house from them. NOW we have to have 2000 square feet, gourmet kitchens, master suites, etc., in a house before many would consider buying a home!

I don't have an issue with credit, and I think it's sad to see using credit cards demonized, because there are some things that, depending on your income, you'll never be able to afford (like a home, or a college education).Of course, we use credit responsibly. We charge EVERYTHING we possibly can to earn points (either Disney VISa or Southwest Rapid Rewards) and pay it off every single month. I know our responsibilities, bills, and how much we can afford to charge. That's it. That's the secret to using credit cards: Don't purchase more than you can pay for!!!

 

[DisneyQueen1320]

Not everybody buying a bigger house is spending their last dollar. As my kids grow we like space. I don't think living in the 60s with a smaller house is that great. Our family likes space, once again it's a personal decision.

Of course the world won't end if a child doesn't go to Disney. I didn't go as a kid, and I was fine. It's fun going now and that's it.

As far as people using the government for help, please banks got a nice bailout.

I'm glad there are so many perfect people out there that never needed government assistance because they saved every dollar.

I think we need more compassion for people.

I'm telling you the 40s, 50s, and 60s wasn't that great. There was a lot of intolerance back then, but I guess it's okay since they all lived in a smaller house.

 

[ArielSparrow]

OMG!! ICF, you hit the nail on the head. I've always thought it was me because I read one of his books and the first thing I thought was "I just paid 29.99 to be told the same exact stuff my grandmama use to say for free".

LOL

That's because too many people don't listen to their grandparents or don't have them. I've met more people that need his/your grandma's advice than not. It's really sad. I like him and enjoy hosting his classes because I see real change in people. They can't change their upbringing or their past, but they can change their future and what they teach their kids and grandkids.

Plastic doesn't make all of us spend more. When I have cash it's easier to spend.
However I do write everything down. I hate to carry around cash.

I'm this way too, since I account for it when I withdraw the cash but there have been studies that show that not only do the majority of people spend more when they can't see it, but the pain sensors in their brains are actually triggered when they spend cash.

And it's not a should. Dave said you are allowed to have fun. Too many people just don't realize what they are spending. Go to Disney and spend hundred on treats. Just don't be surprised when you get your credit card bill. And please don't go into debt, that just makes it harder to go back next year

It's not a matter of people lacking "common sense", it is a matter of people lacking "self control". I don't care how easy it is to spend, you still need to mentally keep track of what you are spending and know what you can afford.

If it were that "common" people wouldn't be in debt, but they are.

Dave Ramsey has a place and a purpose, although my husband and I followed a different plan (Crown Financial). It is similar but better for us.

Our society makes it far too easy to not save and to spend what you don't have, we have gotten so far from the days of buying a small 1700 sq. ft. home with 3 bedrooms and 1 to 2 bathrooms to raise 3 kids!

If there is someone helping those folks, more power to him.

^^^ THESE. Yes, exactly.

A young couple now is not going to want a 1100 square foot home because now, the normal home for a starter home is 2200 square feet and has a gourmet kitchen.

Dave says that we started out wanting what it took our parents their whole adulthood to obtain. A twenty year old looks at a fifty year old and wants their life (in a sense), as if that fifty year old didn't work hard for thirty years to get there. We definitely live in a society of high standards, instant gratification, and entitlement.

I don't have an issue with credit, and I think it's sad to see using credit cards demonized, because there are some things that, depending on your income, you'll never be able to afford (like a home, or a college education).Of course, we use credit responsibly. We charge EVERYTHING we possibly can to earn points (either Disney VISa or Southwest Rapid Rewards) and pay it off every single month. I know our responsibilities, bills, and how much we can afford to charge. That's it. That's the secret to using credit cards: Don't purchase more than you can pay for!!!

I'm a huge Ramsey fan and use credit cards. I do the same thing. DH and I agreed that if we EVER incurred a finance charge, we'd stop using credit right away. No point in paying someone for the right to use my money. I just used points to book my rental car and plan to cash the rest in as it gets closer to our trip (wanted to use it for airfare but it kept giving me errors and i didn't want to lose the deal i found). I think Dave would be proud we could go on this vacation and not go into debt and still put money towards our down payment savings every month (I want a small home, DH wants big, but at least we still have a long way to go until we have to decide).

 

[irishsharon]

Not everybody buying a bigger house is spending their last dollar. As my kids grow we like space. I don't think living in the 60s with a smaller house is that great. Our family likes space, once again it's a personal decision.

Of course the world won't end if a child doesn't go to Disney. I didn't go as a kid, and I was fine. It's fun going now and that's it.

As far as people using the government for help, please banks got a nice bailout.

I'm glad there are so many perfect people out there that never needed government assistance because they saved every dollar.

I think we need more compassion for people.

I'm telling you the 40s, 50s, and 60s wasn't that great. There was a lot of intolerance back then, but I guess it's okay since they all lived in a smaller house.

100%

 

[plummer925]

If it were that "common" people wouldn't be in debt, but they are.

Dave Ramsey has a place and a purpose, although my husband and I followed a different plan (Crown Financial). It is similar but better for us.

Our society makes it far too easy to not save and to spend what you don't have, we have gotten so far from the days of buying a small 1700 sq. ft. home with 3 bedrooms and 1 to 2 bathrooms to raise 3 kids!

If there is someone helping those folks, more power to him.

A 1700 sf home is SMALL!? I have a 1200 sf home (2 bedroom, 1 bath, 2 stories) and it's PLENTY big enough to raise 3 kids! Sure, they'd have to share a bedroom, but it's a large room!! Wow. I couldn't imagine calling my house small, let alone one that would have equivalent to almost another story...

(Please know - I'm not trying to be rude at ALL and I humbly apologize if it came out that way. But to me a small house is under 800 sf)

 

[ArielSparrow]

A 1700 sf home is SMALL!? I have a 1200 sf home (2 bedroom, 1 bath, 2 stories) and it's PLENTY big enough to raise 3 kids! Sure, they'd have to share a bedroom, but it's a large room!! Wow. I couldn't imagine calling my house small, let alone one that would have equivalent to almost another story...

(Please know - I'm not trying to be rude at ALL and I humbly apologize if it came out that way. But to me a small house is under 800 sf)

It depends on a lot. I just moved from a 2br apt (don't know sq ft) to a 1br 682sqft apt and it feels tiny! We got rid of half our stuff and living room and master are the same size on paper but the layout is not optimal. To each their own. If someone wants a big house and can afford it, go for it. The problem back in the early 2000's is the rates were low and people were getting qualified for houses way bigger and nicer than they could afford. Plus they were getting ARM's and such, so as soon as the economy tanked, people could make payments anymore. It wasn't the government's fault. The homeowners bit off more than they could chew.

Anyway, I'll never understand the need for a living room that doesn't get sat in or a dining room AND a kitchen nook, but if people want that and a large bedroom for each child (while you're young it really is beneficial to share a room though), they should do so without guilt IF they can afford it. If they can only scrape by and make payments when the economy is up, and don't put any money aside for emergencies, retirement, or are in debt, I'd say sacrifice and make due with something smaller.

Now, for those who like to accuse people of telling others what to do, I'm not. I'm just stating my opinion. It makes sense to me, but it's a free country. Me nor Dave is trying to boss people around.

 

[manning]

One thing you can say about bigger houses....bigger real estate taxes.

Buying the house is the down payment...the taxes keep going on and on.

There was a time here when people sold their house because they could not afford the taxes anymore.

 

[ArielSparrow]

One thing you can say about bigger houses....bigger real estate taxes.

Buying the house is the down payment...the taxes keep going on and on.

There was a time here when people sold their house because they could not afford the taxes anymore.

That's a good point that many people often forget, especially when buying houses from parents or auctions.

 

[DisneyQueen1320]

I'm sorry but the rates wasn't that low in the 2000s. Part of the problem was the government. It was the banks and government. Banks put people in adjustable mortgages, the mortage went up and they couldn't afford it. A lot of banks put people in those mortgages and didn't explain the terms correctly. It's sad because people qualified for a traditional mortage. Many people lost their house no matter what size.

I agree with taxes, but it doesn't always mean a bigger house equals more taxes. We moved outside our county for lower taxes, so in our case we got a bigger house with lower taxes.

 

[chimilady]

I'm sorry but the rates wasn't that low in the 2000s. Part of the problem was the government. It was the banks and government. Banks put people in adjustable mortgages, the mortage went up and they couldn't afford it. A lot of banks put people in those mortgages and didn't explain the terms correctly. It's sad because people qualified for a traditional mortage. Many people lost their house no matter what size.

That was me. I applied for a 30 year fixed with a 5.25% interest rate. When I got to closing, I had a 5% 30 year ARM. I decided not to postpone closing and just go with it. Thankfully I didn't max out what they said I could afford, so I was able to refi with a fixed rate. But yes, there was a lot of sleaze going on back then with lenders. Oh, and had it not been for MSN Money, I would have never known what anything was. My parents saved up and bought the home with cash, so they never had a mortgage. I was single when I bought my house and learning as I went.

 

[pryncess527]

I'm sorry but the rates wasn't that low in the 2000s. Part of the problem was the government. It was the banks and government. Banks put people in adjustable mortgages, the mortage went up and they couldn't afford it. A lot of banks put people in those mortgages and didn't explain the terms correctly. It's sad because people qualified for a traditional mortage. Many people lost their house no matter what size.

I agree with taxes, but it doesn't always mean a bigger house equals more taxes. We moved outside our county for lower taxes, so in our case we got a bigger house with lower taxes.

Very true. They have been a number of legal settlements which make it clear that the banks were absolutely breaking laws in their efforts to sell loans -- and why wouldn't they when they carry no risk for the loan since they could bundle them and sell the bad batch to someone else without disclosing details? Capitalism only works when there are financial repercussions for bad decisions and due to favoritism and bailouts the financial instructions that caused the mess have faced virtually no repercussions.

 

[ruadisneyfan2]

If it were that "common" people wouldn't be in debt, but they are.

Dave Ramsey has a place and a purpose, although my husband and I followed a different plan (Crown Financial). It is similar but better for us.

Our society makes it far too easy to not save and to spend what you don't have, we have gotten so far from the days of buying a small 1700 sq. ft. home with 3 bedrooms and 1 to 2 bathrooms to raise 3 kids!

If there is someone helping those folks, more power to him.

We haven't! Our house is a 1600sf rancher. (3BR/2BA, 2car garage but no basement.)
We have 2 kids & every month I have Purple Heart or equivalent pick up stuff to donate or we'd be up to our necks in clutter.
Any time we'd consider a larger home, we also realized it means higher taxes (already at almost $9k/yr), higher heating/AC bills, higher maintenance costs, etc.
No thanks; we have enough.

 

[OrangeCountyCommuter]

I couldn't find a link to a quote or anything, but on the radio Dave Ramsey was saying how the rfid card made it so easy to splurge without even noticing. Dave always talks about the power of cash and using a credit or even debit card is not as painful as purchasing something with physical cash. Yet they even tricked him into thinking spending money is fun. It's so easy to buy ice cream here, churro there. Then he was surprised when his bill came at the end of the trip.

Nothing against Disney or treats. Just make sure that YOU know what YOU want to spend on YOUR vacation. Have fun but make sure to give yourself breathing room so you don't regret your fun. Make sure that Mickey ice cream doesn't affect your dinner at home.

I can't wait until this rfid thing is fully rolled out for all guests though. I'll just have to try extra hard to remember that this "magic" is actually a bank transfer.

This makes no sense.

If Dave only uses cash how did this occur? Could he by LYING!

If you put "cash" on the account then Disney won't let you spend more money then you put on the account.

And his "advice" is "Dave Ramsey got paid" LOL! I had a friend who worked for him. He would sell his grandmother for $10!

 

[ArielSparrow]

This makes no sense.

If Dave only uses cash how did this occur? Could he by LYING!

If you put "cash" on the account then Disney won't let you spend more money then you put on the account.

And his "advice" is "Dave Ramsey got paid" LOL! I had a friend who worked for him. He would sell his grandmother for $10!

He never said he only uses cash. He just doesn't use credit. I would need to see proof that Disney doesn't accept debit to believe he's lying.

Say what you will but what he teaches works for me and so many other families. As PP's have said, he teaches what two generations ago was accepted as the standard but has disappeared from common knowledge. It's not common sense like something you are born with. Many of us were raised to buy something if we want it, and to charge it if we can't afford it. Those of you who were raised knowing everything Dave teaches, then you aren't superior, just lucky/blessed.

There are two classes of Dave-haters I see. Those who are snobby because they already know all that stuff. And those who are too afraid of getting on a budget and having to say no to yourself sometimes. Anyone else loves him or is indifferent.

 

[ArielSparrow]

I'm sorry but the rates wasn't that low in the 2000s. Part of the problem was the government. It was the banks and government. Banks put people in adjustable mortgages, the mortage went up and they couldn't afford it. A lot of banks put people in those mortgages and didn't explain the terms correctly. It's sad because people qualified for a traditional mortage. Many people lost their house no matter what size.

I agree with taxes, but it doesn't always mean a bigger house equals more taxes. We moved outside our county for lower taxes, so in our case we got a bigger house with lower taxes.

Okay yeah, it was the bank's and the government's faults as well. Not to the exclusion of the people buying the houses. Yes, there was sleeze but sometimes people should stop and think if the deal seems to good to be true. Or if it makes sense they are buying a house with three living rooms and 5 bedrooms for their family of five on their current salary. It's that lack of "common sense" and trying to keep up with the Joneses that assisted in the crash. We can't just point to the government and banks because they are big and easy to point to and assume innocence for ourselves, as if those buying the homes were helpless victims. They walked into that financing office on their own.

You have to compare apples with apples. Bigger=more taxes in each of those counties. Riverside, east of Disneyland, grew because houses were much cheaper than in OC and LA. The houses there are generally bigger. They are also at least an hour away from everything. You can't compare that to the houses closer to the beach, Disneyland, or LAX.

 

[eliza61]

One thing you can say about bigger houses....bigger real estate taxes.

Buying the house is the down payment...the taxes keep going on and on.

There was a time here when people sold their house because they could not afford the taxes anymore.

LOL. you know what got me Manning, the first month I got my utilities bill.
Sweet lord above. my dh and I thought we were sooo smart when we brought our 2nd house. we calculate property taxes, insurance, mortgage etc etc but some how we never figured out that our utilities would also go up.

LOL, I ran around the house after that first electric bill turning off lights, chasing my kids any time they turned on the tv for longer than 2 minutes.

I don't think I'm a dave hater, l've only read one of his books and like I said every thing I had read seem pretty routine so I haven't followed him. I'm at a point in my life (mid 50's close to retirement) where I'm looking more into investment and retirement advice so I do have issue with him, blithely giving out bad investment advice especially since he knows that is not his strong suit.

Now I also don't follow him because I've never had a burning desire to pay my mortgage off early. We had a mortgage that was well within our budget and allowed us to continue living in the way we wanted so I really so no need for me to give up a vacation or even change my daily life to pay off my mortgage.

 

[ArielSparrow]

I don't expect everyone to love Dave. I just wanted to share this because I thought it was funny, and to make people aware of how easier, even fun, it will be to spend money as this gets rolled out to everyone. I doubt he went over his budget, but was caught off guard. He may be wealthier than a lot of people on here, but there are no doubt plenty of DISsers that can set large souvenir and treat budgets for themselves. If we are on this thread, we more likely are not wealthy, though, and have to try hard to make sure we stay within budget.

I want everyone to have fun and eat ice cream at WDW, but I'm just saying be careful and please don't go into debt or miss bills or cut into your savings for this (unless it's your Disney savings!) Spend money on purpose and only go as crazy as your at-home pre-trip self allows you to.

I forgot that there are so many people out there that don't like Dave and didn't mean to start anything here.

 

[usnuzuloose]

Me and my DH followed his plan and are no longer in debt. We keep one credit card for an emergency. I have been to WDW one time. I can't afford to go. I am content right where I am. I don't need much in my life that is material. I am grateful for the things I have that are needed.

I would tell people not to go into debt for anything, not even a vacation. It simply is not worth it. I would rather save for a nice vacation even if it took a few years to save for it.

 

[DawnM]

That is how I used to think when we lived in Los Angeles. Once we moved to a LCOL area I saw that people just didn't want the smaller houses.

Our house we sold in LA was 1500 sq. ft.

However, a 1500 sq. ft. house in LA is roughly the cost of a 4,000 sq. ft. house here, so, well, there ya have it.


Dawn

A 1700 sf home is SMALL!? I have a 1200 sf home (2 bedroom, 1 bath, 2 stories) and it's PLENTY big enough to raise 3 kids! Sure, they'd have to share a bedroom, but it's a large room!! Wow. I couldn't imagine calling my house small, let alone one that would have equivalent to almost another story...

(Please know - I'm not trying to be rude at ALL and I humbly apologize if it came out that way. But to me a small house is under 800 sf)