*The Dave Ramsey 'Baby Steps' Thread*

[ThereYouSeeHer]

This won't open for me. Anyone else?

Here it is...

'Ramsey Show' Host Asked People At Disney How Much Debt They Have. 'You're Driving Most People's 401(k)'

 

[ruadisneyfan2]

TBH I would struggle with this as well. We have a car loan and mortgage but the interest rates are so low that I don't think about them. (we're not 100% in the Ramsey camp)

It seemed like they were screened instead of random so I wouldn't say "accost"ing them is accurate.

Disney does have rules about commercial filming though so I am a bit surprised the Ramsey org filmed there. There is a gray area regarding what exactly is classified as "commercial" since vloggers and others are tolerated but a company as big as Ramsey Solutions will probably draw a cease & desist from Disney.

Still, this money could be going into savings instead to sent to a bank. You don't have to be overwhelmed with debt to be driven to get rid of it. Just saying..

We took out a car loan for $11k for dh's truck and even that bothered me so much that I paid it off from savings with our first payment. I really can't stand having any debt at this point. It's just so ingrained in me now.

 

[Starport Seven-Five]

Still, this money could be going into savings instead to sent to a bank. You don't have to be overwhelmed with debt to be driven to get rid of it. Just saying..

The car money is already in the bank. We were prepared to pay cash for it.

I don’t want to get too much into our personal strategy in this thread because it is outside of Ramsey's advice. I was just commenting on that to give a perspective that the compartmentalization may not always be negative.

 

[barkley]

Not only that but it assumes they will both live to a very old age. When my mother died, SS literally pulled their direct deposit back on my mother's SS payment for the month. Can you still live on ONE monthly SS payment? There's no guarantee that it will always be 2. We don't get to live forever and one or the other will be first to die.

as well-if one or both spouses is/will be vested in a pension plan research well ahead of time needs to be put into exploring the options available b/c what might look like a great one budget wise when retirement eligibility comes may mean that the surviving spouse receives zero upon the pensioner's death while taking a reduced monthly pension ensures the surviving spouse has the income source continue until their death.

 

[afan]

as well-if one or both spouses is/will be vested in a pension plan research well ahead of time needs to be put into exploring the options available b/c what might look like a great one budget wise when retirement eligibility comes may mean that the surviving spouse receives zero upon the pensioner's death while taking a reduced monthly pension ensures the surviving spouse has the income source continue until their death.

Thankfully that's what my step-dad did because he was gone less than two years from when he retired.

 

[ruadisneyfan2]

as well-if one or both spouses is/will be vested in a pension plan research well ahead of time needs to be put into exploring the options available b/c what might look like a great one budget wise when retirement eligibility comes may mean that the surviving spouse receives zero upon the pensioner's death while taking a reduced monthly pension ensures the surviving spouse has the income source continue until their death.

We looked into this for dh's pension. He hasn't retired yet even though he is past FRA. He's afraid he'll end up sitting around watching too much tv and age much faster.
Anyway, the monthly amount is reduced if he chooses the plan with survivor benefits. He will probably choose it anyway since he's 9 years older than me and I'd have potentially more years without him.
If he can get 25 years in at his job, we both get health insurance for life. That would require him to work until 70. It's a great perk but I told him do it if he wants to but don't feel pressured to. They have taken away so many benefits lately that I don't even trust them to come through with what they told him when he was hired back then.

 

[barkley]

If he can get 25 years in at his job, we both get health insurance for life. That would require him to work until 70. It's a great perk but I told him do it if he wants to but don't feel pressured to. They have taken away so many benefits lately that I don't even trust them to come through with what they told him when he was hired back then.

you are right not to trust on the benefits. i've personally and I've known many others who have retired from employers (civil service in my case) that hired in and worked under what were supposed to be iron clad post retirement benefit guarantees restated year after year for decades in union contracts that have been taken away. sometimes a court battle (in my former employer's case) gets some clawed back but then they can be SO freaking tricky it prevents the retirees from actually benefiting.

one of the most common i've seen in several states is that the employer will only offer ONE plan that covers retirees that live 'out of region' (it can be a small radius region from the employer's location). they don't care what the premium is b/c they more often than not are capped with a dollar amount they contribute or only a percentage for retirees. if they can make it unaffordable/unusable (no preferred providers in many states or at least none that have taken new patients for years) then the retiree opts out and the employer saves money. I was curious to see what my former is charging for 2026 so I just looked (right now is a great time to check up on this stuff for the future b/c open enrollment stuff is online for active employees and retirees on most employer portals)- they still only offer one plan out of region, it's a Medicare supplement (they require you to apply for and take Medicare when you hit the age and are retired)-over $2000 for a couple who are both on Medicare *these are monthly premiums*, but increase that to $5000 if one of the spouse's isn't on Medicare yet and needs traditional insurance. obscene.

 

[ruadisneyfan2]

you are right not to trust on the benefits. i've personally and I've known many others who have retired from employers (civil service in my case) that hired in and worked under what were supposed to be iron clad post retirement benefit guarantees restated year after year for decades in union contracts that have been taken away. sometimes a court battle (in my former employer's case) gets some clawed back but then they can be SO freaking tricky it prevents the retirees from actually benefiting.

one of the most common i've seen in several states is that the employer will only offer ONE plan that covers retirees that live 'out of region' (it can be a small radius region from the employer's location). they don't care what the premium is b/c they more often than not are capped with a dollar amount they contribute or only a percentage for retirees. if they can make it unaffordable/unusable (no preferred providers in many states or at least none that have taken new patients for years) then the retiree opts out and the employer saves money. I was curious to see what my former is charging for 2026 so I just looked (right now is a great time to check up on this stuff for the future b/c open enrollment stuff is online for active employees and retirees on most employer portals)- they still only offer one plan out of region, it's a Medicare supplement (they require you to apply for and take Medicare when you hit the age and are retired)-over $2000 for a couple who are both on Medicare *these are monthly premiums*, but increase that to $5000 if one of the spouse's isn't on Medicare yet and needs traditional insurance. obscene.

His employer is our county. What's more disgusting is that their pay rate is low compared to working out in the "real world" (private contractors) but the trade off was always the awesome benefits package. Well if they're going to take that away too, they need to raise their pay to match what contractors pay. It's pathetic. The only reason he doesn't leave is that he doesn't want to start new somewhere else at 67.

 

[ThereYouSeeHer]

It's that time of year again...net worth calculations! Comparing net worth from one year to the next is a great way to chart ongoing progress.

The Baby Steps goal is to first eliminate all items in the debt column, and then work towards being a Baby Steps millionaire. Other financial programs might have you leverage debt first to grow wealth, but this one is different. We avoid and eliminate being chained to lenders and debt (interest free or not). We make decisions based on the income we have today, not on the debt load we can acquire or maintain in the future.

Here's a link to the Consumer Equity worksheet and other helpful documents...

Useful Forms

 

[MattB2G]

It's that time of year again...net worth calculations! Comparing net worth from one year to the next is a great way to chart ongoing progress.

The Baby Steps goal is to first eliminate all items in the debt column, and then work towards being a Baby Steps millionaire. Other financial programs might have you leverage debt first to grow wealth, but this one is different. We avoid and eliminate being chained to lenders and debt (interest free or not). We make decisions based on the income we have today, not on the debt load we can acquire or maintain in the future.

Here's a link to the Consumer Equity worksheet and other helpful documents...

Useful Forms

Just wondering how you calculate your House's Value? Assessed Tax Value or go with Zillow/Realtor Value?

 

[ThereYouSeeHer]

Just wondering how you calculate your House's Value? Assessed Tax Value or go with Zillow/Realtor Value?

Good question! I like comparing a few real estate websites like Zillow, Realtor, and Redfin. Then, I basically take the lowest estimate and put in a rounded number that's even lower than that.

For cars, I generally use Kelley Blue Book and price it as standard equipment with a lower condition than it's current condition.

I try to underestimate physical assets because the main focus should be on financial assets. However, it's still good practice to have a basic idea of how your house, car, or other items might be appreciating or depreciating from one year to the next.

 

[MattB2G]

Yeah, I'm thinking of starting a Net Worth Spreadsheet that would include just our House Value, Bank Accounts, and Retirement Accounts.

Vehicles can be a tricking thing to value even with all the websites that will do it for you, vehicles can depreciate pretty quickly. Luckily we only have about 4 months left on our Van Payment and it is all ours! Probably put the payment to our girls college fund.

 

[ThereYouSeeHer]

Yeah, I'm thinking of starting a Net Worth Spreadsheet that would include just our House Value, Bank Accounts, and Retirement Accounts.

Vehicles can be a tricking thing to value even with all the websites that will do it for you, vehicles can depreciate pretty quickly. Luckily we only have about 4 months left on our Van Payment and it is all ours! Probably put the payment to our girls college fund.

Yeah, the only reason I include our car is because it will need to be replaced at some point. So, it's helpful to know--if I had to replace it this year, what could I possibly get as a trade-in? That way, we can keep adjusting a car replacement fund upward, as the value goes down from year to year.

Good job on almost being free of the car payments! (...and because we are on the Ramsey thread and I can't help myself, previous debt payments would generally be rolled into any other debts except the house, then it would be rolled into an emergency fund, then it would be rolled into retirement, and then college. But I understand everyone here may not be trying to follow the Baby Steps.)

College is tricky because certain assets are counted against the student for financial aid. One thing I don't see mentioned often is that a paid-off car or primary home is a sheltered asset for FAFSA purposes. In general, paying off any and all debt would be more beneficial than carrying those debts while also saving for college. For example, keeping $20,000 in credit card debt, so that a family can save $20,000 in a college fund kind of defeats the purpose. Personally, it would be better to keep $20,000 of assets off the balance sheet by sinking it into debt obligations or retirement instead of the college fund (which is one reason the Baby Steps are setup in a good order).

 

[barkley]

His employer is our county. What's more disgusting is that their pay rate is low compared to working out in the "real world" (private contractors) but the trade off was always the awesome benefits package. Well if they're going to take that away too, they need to raise their pay to match what contractors pay. It's pathetic. The only reason he doesn't leave is that he doesn't want to start new somewhere else at 67.

I'm retired from a county-i totally get what you are saying. I think all this benefits slashing is short-sighted on their part. we used to get allot of incredible professionals from the private sector hiring on in their early 50's b/c they could vest in the retirement system w/as little as 5 years and secure those retiree health benefits. now any new hires don't get retiree health benefits and the pay is so low as compared to the private sector there's no appeal for either younger or older hires.