Dave Ramsey worth it?

[boettj]

Currently, I am working through a massive debt load. My DW and I have been working on it. I've written several posts about hard decisions along with some success. Seems like a ton of people recommend Dave Ramsey. We do not need to create any new debt. If it's worth it, then I don't mind spending money. Also, there seems to be a ton of different options. Which would I be looking at?


Please let me know what you think of his



Thank you

 

[Where'sPiglet?]

I would start by reading the book Total Money Makeover. You may be able borrow it for free from your library. If not, you can likely find a used copy or get it when it goes on sale for $10 from his site (which seems to be fairly often).

If the book itself is not enough motivation and you need more support, that's when I would look into the more expensive programs he offers from his site/on location at churches across the country.

 

[edandcolleen1995]

There are quite a few Dave Ramsey posts on this board. Perhaps read up on those (some are 4 or 5 pages long) would be helpful for you...


No offense, but the question has been asked a bunch of times, people have taken time to answer. Just a little search will give you what you need.

 

[minnie1928]

The beauty of DR is that it doesn't have to cost anything. You can go to the library, get Total Money Makeover to read and simply follow the book. Or, if you and your wife are the kind of people that would benefit from a more interactive experience, then I would recommend taking the class. I think the classes usually run somewhere around $100 and I think it's worth the money if you and your wife will stick with it. DR is not a magic cure all that will instantly make your problems disappear. It's gonna be tough and sometimes it will really stink, but if you stick with it...you won't regret it.

We've been doing it for almost 5 years (didn't take the class, largely followed the books) and it was honestly one of the best decisions we've EVER made. Our money philosophy has completely changed and we have a realistic plan for our finances.

 

[Kellydelly]

There are quite a few Dave Ramsey posts on this board. Perhaps read up on those (some are 4 or 5 pages long) would be helpful for you...


No offense, but the question has been asked a bunch of times, people have taken time to answer. Just a little search will give you what you need.

When I have a question I don't look at the archives to see who else has asked it before me, I just ask it! People can take the time to give input or not. There are plenty of people who like to give their advice and don't worry about having given already to someone else .

 

[dawson5]

you can also stream his radio program from his site and one of the Fox cable stations (not the regular news station) runs his show at 8pm weeknights and there are a few times on the weekends but I'm not sure of what time those are. The books are great but most of it is common sense, we all just need a push in the right direction or some motivation. I think that is what appeals the most to me is that he gets excited about saving money and getting out of debt. It comes across in his books but better when you listen to him. Like one of the pp's mentioned, it doesn't have to cost you money, the stream is free and borrowing his books from the library is also. You can also get the books on tape from the library which I love to do.

 

[Kika]

I like Dave Ramsey and his radio show, but I've never spent any money to get his advice. You don't have to spend anything. I echo the other recommendations to get his book, The Total Money Makeover, from the library and then just listening to his radio show online (just google Dave Ramsey, and you'll find it) or watch his TV show if you have the Fox Financial News channel. His radio show is also on some AM stations throughout the country, so sometimes I catch him when I am in my car driving.

Best of luck!

 

[sylvenmaid]

I love him but I agree check out his book or borrow it. I got my copy for free from a friend. She just gave it to me so it's like new. He has 7 baby steps that he says you have to follow in order.

1. Save up $1,000 as fast as you can. Sell stuff, slash expenses, and don't eat out or go on vacation. Once you have it saved up then move on.

2. Pay off all your debt (except your house) from smallest balance to largest. The interest rate doesn't matter. Once you pay off the first then take that payment and apply it to the next bill. You keep doing that until they are all paid off. This can take a few months to years depending on how dedicated you are to getting rid of the debt. Some people work extra jobs, sell cars and drive beaters, and lots of stuff to get out of debt. When I was in CC debt, I sold on ebay, slashed our expenses to the bone, and many other things to get out of debt. I haven't had a CC since which was over 8 years ago.

3. Once you are out of debt (except for the house) then save 3-6 months of living expenses.

4. Start saving 15% of your income for retirement in 401K and Roth IRA's.

5. Save for kid's college fund.

6. Pay off your mortgage early.

7. Build wealth and give.

 

[Disneyliscious]

Why is Dave Ramsey debt free? Because people buy his program.

He is a very smart man, but you can get the jist of his info simply by listening to him on the radio.....for free.

 

[hanutedmansionmomma]

I agree w/ other posters, read the book!

Write down your debt in order from smallest balance owed to largest and start paying off. Writing everything down worked for me! Make a spreadsheet and see where your $ is going.

I didn't save $10K first (his recommendation), I have about $5K. So far so good, I couldn't wait to start paying things down.

I got on DR website and found a local financial guy that subscribes to his ideas. He talked to me on the phone and basically said if I have debt, I don't need a financial planner - nothing to plan with! Kind of a *duh* moment...

He was cool to not say he'd meet with me and take my money to tell me that, I think. I wouldn't throw any more money anywhere if you have debt. IMHO.

 

[Where'sPiglet?]

I didn't save $10K first (his recommendation), I have about $5K. So far so good, I couldn't wait to start paying things down.

I thought it was $1K emergency fund to begin with.

The book was written before the current financial problems and the stricter credit card policies. I think the idea behind only $1K is that if you have credit card debt, you are losing way more money than you are gaining each month in interest, and if you have an emergency, most are under $1K and/or can be financed (or put back on credit cards :cringe.

Suze Orman recommends something like 8-12 months of emergency fund before you start paying off debt. You run into the same issue though - losing more in interest rates than you gain. She does have a point; you may not HAVE credit available to you in an emergency, but you would have cash from savings.

 

[englishteacha]

We did the Dave Ramsey class and learned a lot. We were just 23 and needed to figure out how to manage money as a married couple. We used to listen to him on the radio but he's not broadcasting here anymore. You can download podcasts, too.

 

[mrsklamc]

Why is Dave Ramsey debt free? Because people buy his program.

Or, if you believe what he says, because knows the fear of not knowing how you're going to keep the lights on and is never going to be there again.

If he hadn't lived it, I don't believe he would be as effective as he is at selling the program.

I agree, the info is out there for free. HIS answer would be, the class is $100, (depending on where you take it) and the average family pays off 8k in debt during the 13 week class.

 

[boettj]

There are quite a few Dave Ramsey posts on this board. Perhaps read up on those (some are 4 or 5 pages long) would be helpful for you...


No offense, but the question has been asked a bunch of times, people have taken time to answer. Just a little search will give you what you need.

Yes, I did do a search, and it gave me a ton of hits. After going through a ton of the links (Which only mention to get the book), I decided it would be easier to ask the question.


Thank you

 

[boettj]

I love him but I agree check out his book or borrow it. I got my copy for free from a friend. She just gave it to me so it's like new. He has 7 baby steps that he says you have to follow in order.

1. Save up $1,000 as fast as you can. Sell stuff, slash expenses, and don't eat out or go on vacation. Once you have it saved up then move on.

2. Pay off all your debt (except your house) from smallest balance to largest. The interest rate doesn't matter. Once you pay off the first then take that payment and apply it to the next bill. You keep doing that until they are all paid off. This can take a few months to years depending on how dedicated you are to getting rid of the debt. Some people work extra jobs, sell cars and drive beaters, and lots of stuff to get out of debt. When I was in CC debt, I sold on ebay, slashed our expenses to the bone, and many other things to get out of debt. I haven't had a CC since which was over 8 years ago.

3. Once you are out of debt (except for the house) then save 3-6 months of living expenses.

4. Start saving 15% of your income for retirement in 401K and Roth IRA's.

5. Save for kid's college fund.

6. Pay off your mortgage early.

7. Build wealth and give.

1. We don't have a 1000 set aside, but I see how it would help.
2. I learned about the power-pay method in the Navy. It's what we have been doing for a while now.
3. Debt free is going to be a while. I can see the value of having 3-6 months set aside for an emergency. Such as losing ones job.
4. We currently put 6% away to my companies 401k plan. This was to get the match. Which went away this past may. No more match from my company.
5. This is one of the things that scares me.
6. Yes... would love to.
7. Show me the light...

Thanks everyone for sharing your thoughts on the book. Our local library does not have it listed on the website. It's available in one of the other libraries. Going to request that it's sent to my library.

 

[hanutedmansionmomma]

I thought it was $1K emergency fund to begin with.

The book was written before the current financial problems and the stricter credit card policies. I think the idea behind only $1K is that if you have credit card debt, you are losing way more money than you are gaining each month in interest, and if you have an emergency, most are under $1K and/or can be financed (or put back on credit cards :cringe.

Suze Orman recommends something like 8-12 months of emergency fund before you start paying off debt. You run into the same issue though - losing more in interest rates than you gain. She does have a point; you may not HAVE credit available to you in an emergency, but you would have cash from savings.

ack! you're right, it's $1000!!

 

[manning]

Why is Dave Ramsey debt free? Because people buy his program.

He is a very smart man, but you can get the jist of his info simply by listening to him on the radio.....for free.

And he pays cash for everything. He admits he went bankrupt years ago by using credit.

 

[manning]

If your company is not matching then quit putting money into that and switch the 6% to a ROTH IRA. You pay the income taxes upfront but all future earnings are tax free. That will be a big help, especially if the predicted future inflation comes to pass. Somewhere down the line it looks like taxes will rise.

 

[bumbershoot]

boettj, the steps are things you do in order.

And actually the first thing is to get current on any bills that you're behind on. Then save up the 1K, then list your debts in order of lowest to highest, and start killing them off. Etc.

I got the book from the library, but before that I'd gone to livinglikenooneelse dot com and gotten involved there. Most excellent, and free.

Oh, and you can read quite a bit of the daveramsey.com site for free, and can read his forums (the public parts of them) without registering or paying as well. TONS of info just on his site, for no money.

 

[manning]

If you have more than one credit card. Pay the minimum on all except the one you are paying off. When that one is paid off go on the next one to be paid off. Some make the mistake of not paying anything on the ones you are not trying to pay off. You don't want to do that. You want to keep everything current. When you go to the next card pay the minimum plus the amount you were paying on the paid off card. And so on until all are paid off.