Total Money Makeover

[DMRick]

I misunderstood..I thought you started this thread to tell people about living a debt free life, and to encourage reading a book. Didn't realize from the title or your first post, that it was only about using cash only to pay for everything. Perhaps you might think about changing the title to "for people who want to pay for everything with cash only". You are wrong to assume, that because I showed another way to make cash work for them (by putting it aside each month and get rewards with cc..then using the cash to pay them off) I showed no encouragement to people to be debt free.
I'm a staunch supporter of making money work for me (and others), not for credit cards per se....I certainly don't think people should have cc debt. Making money to help build a debtfree life, could be done in many ways, but cc vs cash is one way. Until a moderator tells me this is just your thread, and I can't continue to "encourage" people to be debt free, and make their money work for them at the same time, I'll continue to post, rather than start a different thread.

I have no idea what the "slammer" thing means. I certainly never said you would be arrested for your views or that you committed a crime. However, your way also is not always the only way...just as mine is not.

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If you choose to take it as a "dig", there's nothing I can say that will change your mind.. I stated my reasons for starting and continuing this thread - to encourage people who are leaning towards a different financial mind set than yours - that of using cash as opposed to cc's.. If somewhere among these many threads you encouraged people to do the same, I totally missed it..

You are obviously a staunch supporter of credit cards and do seem to have quite a bit of knowledge in how to make credit cards work for those who choose to use them, so why not start a thread of just that nature - "How To Make Your Credit Cards Work For You"? It would be of great service to those who share your views and I'll even promise not to post on it!

Meanwhile, the earth isn't going to come to a screeching halt if people choose cash over credit cards and a little encouragement will go a long way in helping them to reach their goals.. If my biggest crime in life is encouraging people who have made a very doable and workable choice in terms of how they handle their money, then I'd say I don't have to worry about spending time in the slammer for it any time soon..

 

[kidshop]

. Having a car payment is not neccesarily a bad thing.
I have no problem with people having savings, being careful..I do have a problem with someone acting like a cc is a sinful thing to have, and trying to convince everyone there is no reason to use a cc. It's not a bad thing. It's a different choice than you have. It's entirely up to how people use it. There is nothing at all wrong with using it to pay every bill you have, take full advantage of the points, the extended warranty's the protection, etc. If you feel you can't have one, because you would not put aside the money to pay it off monthly, then don't..but there is nothing wrong with reponsible use of a cc card. ......I like the "free" money. And what I spend on my card, is sitting in the checking account waiting to pay it off. Can't do that? Then perhaps a cc and all the benefits isn't for you. Want the protection and benefits a card gives you? Then don't be scared of using a credit card.

I should probably read the rest of the thread, but we charge everything on credit cards....and pay it off each month. If I couldn't afford to pay the bill a the end of the month, I wouldn't buy it in the first place. I love the 'free money' float of 25 days! All of our large purchases the last 3 years or so, have been 0% financing for 12 months. A year of free use of furniture and appliances yipeee! Of course, it goes without saying that the bills are paid in full before the 0% rate goes away. I can't imagine living any other way. It seems once you can get ahead, you can stay ahead. There is good debt and bad debt, and credit cards *can* be a great tool if you have knowledge and discipline.

 

[dmensing]

C.Ann & DMRick:

I read the boards daily but don't post too often. I just wanted to chime in to say thanks to both of you for sharing your information and perspective. Both of you make valid points and offer valuable information to help all of us manage our hard earned money better.

I am similar to DMRick, where I use credit cards whenever I can and pay it off everyone month. I am glad, though, that C.Ann shared her enthusiasm for Dave's book since I wasn't familiar with it and she brought it to my attention. I just finished reading it, and although I don't agree with everything, I think I can improve my current methods of money management by using some of his tips. I am always looking for opportunities to learn and this thread gave me that opportunity.

On a side note, I also wanted to thank you both for your input on the E-bay thread that got me started on E-bay last year!

Thanks,
Dan.

 

[C.Ann]

Until a moderator tells me this is just your thread, and I can't continue to "encourage" people to be debt free, and make their money work for them at the same time, I'll continue to post, rather than start a different thread..

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Boy - you and I certainly seem to have a communication problem here.. I made the suggestion of starting a new thread because I thought you were sincere in wanting to share your credit card knowledge with people who choose to use them.. Why would we need a moderator for that? You obviously have knowledge and personal experience in that area, just as I have knowledge and personal experience in living my life on a cash basis.. Why wouldn't you want to share that knowledge in an arena where people are specifically looking for that information? Isn't the object of the Budget Board to help people in the specific areas in which they are looking for help?

I suppose the title of this thread "could" be changed, but the book advocates the use of cash, not credit - so anyone who has read or heard about this book would know that.. People are interested in hearing how it works - and who it has worked for.. If they were looking for info on how to make their credit cards work for them, then that's the type of thread they would be looking for, don't you think?

 

[C.Ann]

On a side note, I also wanted to thank you both for your input on the E-bay thread that got me started on E-bay last year!

Thanks,
Dan.

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Is eBay still around? I haven't even looked at it in months.. LOL.. Awhile back I tried to research something I have on hand here and it was impossible to find with the way they have switched all the categories around..

Hope you're doing well with it.. With summer winding down I'm sure that buyers will be spending a lot more time sitting in front of their computers..

 

[Kay7979]

This is a very interesting thread. I believe, like the OP, that credit cards are much misused, and that most people should avoid them as much as possible and pay cash for what they want, because they don't have the willpower to pay off their cards at the end of each month, and credit cards make it too easy to spend money that might not otherwise be spent. Even people with good intentions sometimes fall prey to carrying a balance and paying interest. BUT, I agree with the concept that as consumers understand the use and misuse of credit, and become more sophisticated in this area, it is not necessary to live on a "cash only" basis. Many financial experts teach the concept of making OTHER people's money work for you, and using credit wisely to actually get ahead. This may seem like a dangerous concept to some who are working on controling their spending, and their money management skills, but once families have mastered this, they should not have a phobia about credit. Credit is like fire in that it can be extremely destructive, but it can be equally beneficial when used for legitimate purposes.

 

[DMRick]

Apparently on a budget board, they are looking for all sorts of ways to save and spend money, and many will use some of this book, some of another. Just because people have an interest in seeing how it worked for others, doesn't have ot mean, they can only go by what is in that book, to make the ideas in it work. Just looking at those posting, makes me think not everyone posting here thinks there is just one way to do it, but still have interest in the book and how different methods have worked for others. Obviously it's not a closed thread..and people have been interested in several ways to go about budgeting and paying down debt, including, this book. This is a bulletin board, and threads often cover more than one idea.

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I suppose the title of this thread "could" be changed, but the book advocates the use of cash, not credit - so anyone who has read or heard about this book would know that.. People are interested in hearing how it works - and who it has worked for.. If they were looking for info on how to make their credit cards work for them, then that's the type of thread they would be looking for, don't you think?QUOTE]

 

[C.Ann]

, it is not necessary to live on a "cash only" basis.

they should not have a phobia about credit. QUOTE]
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I agree 100%.. It's not "necessary" - for some people it is a "want".. Phobia has nothing to do with it - or at least not in my case.. I have watched two generations (and in some cases, three) of my family members acquire numerous homes, vehicles, travel trailers, boats,take early retirements and still maintain a large stockpile of wealth that will last long after they are gone - and it was done 100% with cash.. People learn what they live and that's how we were raised..

Could they have acquired more - if they had chosen a different financial mind set? Possibly - but why would they need to? They acquired everything in life that they need and want, so what would be the point?

 

[C.Ann]

Apparently on a budget board, they are looking for all sorts of ways to save and spend money, and many will use some of this book, some of another. Just because people have an interest in seeing how it worked for others, doesn't have ot mean, they can only go by what is in that book, to make the ideas in it work.

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Hmmm... I suppose.. However, if I were looking for specific information on how to make credit cards work for me, I wouldn't be looking on a thread about a book that encourages just the opposite..

 

[TNKBELL]

Thank you to everyone posting on this thread it's good to hear more than one viewpoint. I wish I could be as disciplined as DMRICK, I can only hope to aspire to that someday!! For me and my horrible lack of willpower, It's important for me to change my life by starting with a cash only basis until I conquer my self-control. I think DMRICK made some great insite to where we can go after we have taken back control of our finances. Of course everyone has different situations and I think that Dave's book addresses many people in my generation that have spending problems and it is a wake up call that we need to make some serious changes for our sake, our children and our country. C.Ann and DMRICK you both have made great points and I thank you for that!

 

[dtauer]

I really enjoyed this thread until a couple of pages ago. I fully understand how someone may be able to use credit cards to an advantage, however the discussion really was primarily centered on the principles of the book.

I'm not a moderator, and everyone has the right to post what they want, but it would be nice to concentrate again on how the book has helped people and what they agree and disagree with, rather than cover the same topic over and over.

To me it's almost like going to one of the threads such as the Wilderness Lodge thread, and have someone posting over and over about how much better the Grand Floridian is. Some people feel the Grand Floridian is better, however the main point of the thread is still to discuss the Wilderness Lodge.

Hoping we can have some more good Total Money Makeover discussion.

 

[DMRick]

I have read the book. That is exactly what I was doing..saying what I disagreed with. I agree cash is good..I just use my cash in a different way as do some people.
I don't see how the way I use a cc is being different from what the book advocates. I pay my way as I go (but I get rewards). I just don't do it on the exact same day.

but it would be nice to concentrate again on how the book has helped people and what they agree and disagree with, rather than cover the same topic over and over.

 

[DMRick]

Sigh. My posts are not about how to make a credit card work for me..they are about being debt free, by keeping the credit cards paid off, just as if you are using cash. And get benefits at the same time. You get to follow the book, and get a benefit. For those who can do it..not for those who can't. It goes along with a debt free life. You have commented you have never used a cc. This is for those who have and want to continue.

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Hmmm... I suppose.. However, if I were looking for specific information on how to make credit cards work for me, I wouldn't be looking on a thread about a book that encourages just the opposite..

 

[RichNKatHolly]

Maybe this was discussed already, but I did enjoy reading the personal stories in the book. However, a little bit more on HOW they managed to pay off $120,000 in debt and fund a $30,000 account would have been helpful. It seems that many people outlined in the book had siginificant incomes.

Still, great motivation. I'm ready to go. One problem, even without debt, my family mostly just has enough for rent, food, etc. Sometimes it seems we are right down to the penny (or short a penny or two). I'm hoping to make it work by starting out with the $10 a week. I will DEFINATELY be keeping this book right on the kitchen counter for motivation!

Time to get working on that emergency fund!!!

 

[dtauer]

Maybe this was discussed already, but I did enjoy reading the personal stories in the book. However, a little bit more on HOW they managed to pay off $120,000 in debt and fund a $30,000 account would have been helpful. It seems that many people outlined in the book had siginificant incomes.

I agree, it was a little light on how it was accomplished, just the end result. The basic way each of them accomplished it was the same step by step process, just not a lot of details.

I was really expecting more specifics such as you need to change your DSL to dialup, do you really need HBO, stuff like that. After thinking about it more, maybe he intentially left out those details as most of us know where we can cut. If he would have given specific things he felt each family could live without, he may come across as too "preachy", even though that's truly his style.

I just started Financial Peace and I also got The Millionaire Next Door. From the library of course.

 

[RichNKatHolly]

I agree, it was a little light on how it was accomplished, just the end result. The basic way each of them accomplished it was the same step by step process, just not a lot of details.

I was really expecting more specifics such as you need to change your DSL to dialup, do you really need HBO, stuff like that. After thinking about it more, maybe he intentially left out those details as most of us know where we can cut. If he would have given specific things he felt each family could live without, he may come across as too "preachy", even though that's truly his style.

I just started Financial Peace and I also got The Millionaire Next Door. From the library of course.

That's true. But it just seems to good to be true that some of these families paid off so much debt and accumulated so much cash in a short time. I'm assuming many have decent incomes.

Anyway, I'm happy to say we just cut $45 from the cable bill. We will do without the Sopranos and whatever else for now. Haven't ordered or eaten out either. I am getting a little tired of cooking though, so for the next few days it may just be sandwiches.

I will hopefully finish the book tomorrow. I find it interesting but mostly motivational. We will start on the emergency fund and then go right to step 3 as there are no ccs or debt here, but I won't be cancelling our 401K contributions to do so. That's our only fixed savings and I'd hate to let it go.

Good luck all!!

 

[peacefulgirl]

About how people got out of debt details ...

Dave's plan is really for people who are sick of being in debt. It is not for the weak, he is straight out STOP WHINING AND GROW UP. How people became debt free is by going with out "stuff" and eating beans & rice, rice & beans. They have lived on next to nothing while paying debt. He tells it like it is, we are spoiled and think we deserve stuff becuz we work hard or are breathing air. We do not deserve anything we can't pay cash for. These people work extra jobs and are intense about paying off debt.

If you want to meet real live people that are doing it or are debt free, go to his website and sign up for a trail membership to the forum and talk to the peole there. You will learn HOW they do it.

If a person does the plan, it will work, but how intense you live it will determine the time it will take to get out of debt.

I am making progress myself, and listening to his show gives me the kick in the &** I need!!

 

[peacefulgirl]

That's true. But it just seems to good to be true that some of these families paid off so much debt and accumulated so much cash in a short time. I'm assuming many have decent incomes.

Its not too good to be true, it is painful to get there believe me! Some people make very little, some make more, but their debt is equal for the income in either case.

I sooo want to be weird !!!!! Normal is broke!

 

[RichNKatHolly]

Its not too good to be true, it is painful to get there believe me! Some people make very little, some make more, but their debt is equal for the income in either case.

I sooo want to be weird !!!!! Normal is broke!

WOW, you're quite a follower huh?

Thanks for the info about his site. I will check it out.

 

[TNKBELL]

You Rock Peaceful Girl!!! I agree!!