Total Money Makeover

[Lisa loves Pooh]

Trust me when I tell you that it would be an awful idea for anyone here to give people advice as to whether they should buy things or not...lol! Within this thread I can pick out about 10 things that I've read that make me think..."well, they shouldn't be buying that, or taking that vacation or have that car." But, then you get angry responses that you're a know it all, or how dare you to judge me. And really all that you're doing is giving advice to a person who asked for it. When people post things like..."Should I take this vacation?" and then go on about low finances the only answer that they're looking for is.....*yes!!*

You must be having fun with siggy's

My marathon trip is virtually free.

I am going to live now, so I can live like noone else later so that future trips will not be a problem We have actually never indebted ourselves for the luxury of a trip---however, it's all the other crap that got us into "trouble". Like some we are not in trouble now as we have ways out of a bad problem.

However--it has taken me a few years to get over keeping up with the joneses...and this book was just the final wake up call to realize--that keeping up really isn't that important. I never really tried to keep up--but have felt jealous of others for years.....and finally that jealousy has all melted away .

DR talks about sacrificing now so you won't have to sacrifice later and eat Alpo--which sadly will happen to a lot of people.


Never judge a person's financial state by what their siggy says.

 

[Spoisal]

---------------------------

There was an article in the newspaper just the other day.. A debit card with the Visa logo on it now affords exactly the same protection.. Debit cards are becoming very popular as people begin to shy away from credit card debt..

hey - that is really great news because I love using my debit card...the money comes right out of my checking account - immediately. What does DR say about this in TMM? anything?

 

[Lisa loves Pooh]

That is true, but if you are the victim of fraud - your credit card will protect you, where your debit card will not. I have been the victim of fraud & my credit card handled everything, it was effortless. If you pay with a debit card, you don't get the same amount of protection. I use a debit card around town (probably shouldn't), but I only use a credit card on vacation or on line. Just be careful!

I didn't think so--but VISA does as spoken about in his book (complete with the regulation blip from VISA that affirms this).

I'd have to check with MC.

 

[RichNKatHolly]

Being "forced" into not having credit cards was like an awakening for me. We were using the credit cards like a supplemental income. It's bad when you think of your credit card and money and not a loan (a very high interest loan). I really didn't think we could live without them, but here we are. Paycheck to paycheck, but at least we are no longer running up the CC.

About the debit card and safety, I did have a problem with my DC twice, and both times it was taken care of just like a credit card. All I had to do was file a form. One was a charge for $55 that showed up from a store I hadn't been to in months, and another was a duplicate charge from TJMaxx (see, I'm getting better, going to TJMaxx for my designer fix) .

I can understand why some people cannot have a CC even though there are perks to paying them off every month. It can be very tempting and very hard for the financially un-savvy to comprehend and control. If I had one, all it would take was one bad day and it would be maxed! Actually, we have one that we use for the car rentals and stuff, but is STAYS HOME until we need it.

 

[Lisa loves Pooh]

hey - that is really great news because I love using my debit card...the money comes right out of my checking account - immediately. What does DR say about this in TMM? anything?

Just posted this above.

 

[my3kids]

hey - that is really great news because I love using my debit card...the money comes right out of my checking account - immediately. What does DR say about this in TMM? anything?

DR, on his show, always says a VISA check card affords just the same protections as a credit card, although the credit issuers try to tell otherwise. The VISA check card has always offered the protections of the VISA credit card, although most were skeptical when it is all their available money at risk!! Can you imagine the nighmare of finding your checking account empty??? Holy Smokes! Anyway, yesr DR advocates debit cards and says they are 100% as safe as credit cards in terms of fraud protection and safety.

 

[DMRick]

Bad day--it was a snark...I'm sorry!

It is important to note that it is possible to live without credit cards. A debit card can be used in the place of a cc in most cases.

Accepted..thanks.

Do debit cards give you the extended warrenty that cc give? Just curious. We just this week got my grands computer fixed (almost $200), have had a monitor replace for free, and got a new, free laptop to replace a broken one, courtesy of my credit cards extended warrenty. Also, I love the car rental insurance..much savings over paying straight out for rental car insurance. How do they work with stop payments? I think I pretty much use my cc as a debit card, except I get all the benefits.
It's all about if you can control your spending, and pay it off every month, don't you think?

 

[dvcgirl]

You must be having fun with siggy's

My marathon trip is virtually free.

I am going to live now, so I can live like noone else later so that future trips will not be a problem We have actually never indebted ourselves for the luxury of a trip---however, it's all the other crap that got us into "trouble". Like some we are not in trouble now as we have ways out of a bad problem.

However--it has taken me a few years to get over keeping up with the joneses...and this book was just the final wake up call to realize--that keeping up really isn't that important. I never really tried to keep up--but have felt jealous of others for years.....and finally that jealousy has all melted away .

DR talks about sacrificing now so you won't have to sacrifice later and eat Alpo--which sadly will happen to a lot of people.


Never judge a person's financial state by what their siggy says.

I'm not judging you. Really, it's none of my business what people do with their money. I read the budget board because there are usually some good saving tips/codes and I find the overall topic of investing interesting. Everyone has to live their own lives. And as I've said in earlier posts, we've been very fortunate, I wouldn't call it "lucky" because our education and hard work put us in the the right place at the right times. Living beneath our means is a big part of our success.

But yes, I am a human being and so I often wonder how people come on these boards and ask complete strangers if they should go on this trip or that trip....when they probably already know that they shouldn't be going.

And so I think it's a good thing that some of us talk about how we live, and how we save, so that others can see that they really do need to be thinking ahead and not just living in the moment. Does this mean that people should never go on vacation? Of course not. I'm not saying that. But personally, I know that we could never take vacations when we haven't meant our personal savings goals. And we meet those goals easily. Remember, we have no kids and no debt, so it's not hard for us at this point. I understand that it's much more difficult with kids and I commend anyone who stays home with their kids.

But I do think that there's been a huge change in the spending habits of our nation over the past 25 years. It's easy for everyone to think..."hey if *they* can go to WDW, we sure can...we make more than they do..." it's just the way things are now.

It sounds like you are well on your way to enjoying financial freedom....and I wish you all the best.

 

[Muushka]

Any Clark Howard fans out there? Doesn't he hate debit/fake credit cards?
I believe they do not offer the same protection as a credit card. Like ordering furniture with a credit card and then have problems with the furniture (delivered wrong/inferior furniture). With a credit card they just stop payment, with a debit card you are not offered that protection.
Or I may be all wet...... carry on.......

 

[C.Ann]

Accepted..thanks.

Do debit cards give you the extended warrenty that cc give? Just curious. We just this week got my grands computer fixed (almost $200), have had a monitor replace for free, and got a new, free laptop to replace a broken one, courtesy of my credit cards extended warrenty.

--------------------

You have the worst luck when you purchase big items, don't you? Was that the computer you bought just last Christmas? Tell me what brand it is - so I never buy one.. LOL

Can't answer your question about extended warranties because knock on wood, I've never purchased a large item that konked out in a short time.. I did buy a monitor for $29.00 once that konked out in a year, but by that time I figured I had pretty much gotten my money's worth..

 

[luckofthedraw]

I've been meaning to read this thread for a few days, and have just now gotten a chance to get through the entire thing. Having heard Dave on the radio a few times, I never dreamed he had such a following.

Dave Ramsey's website is somewhat of a disappointment to me, as it is almost exclusively affiliate links and a sales pitch for his higher-end services. How about some meat and bones in there somewhere? Guess I'll have to get his books from the library.

But here's my background and take on his ideas. First off, I've gotten a fine hard-knocks education, but now the debt I currently have is our mortgage, which I am working diligently to get paid off ASAP.

I am a SAHM who makes a living helping people who are in a serious financial crisis. If you are losing your home to foreclosure, I am the person you call to help you save it. I work with mortgage company's to find a solution, if one is possible. So I hear a lot of bad-luck stories every day. Most of the people could have done this themselves if 1) they had done something sooner, and 2) they had some sort of cushion or 3) they had seriously pared back expenses when the crisis occured. Most people are hoping and praying that something or someone will save them, when in fact, all of the power resides within themselves.

One of the first things I do, in order to help save a family's home is to set up a cash flow statement, showing positive or negative cash flow. If it is negative, we discuss ways to make the cash flow positive. I am always amazed at the things people will NOT cut out of their spending in order to save their house. Yes, some of it is hard, but really, does a person about to lose their home need $129's worth of cable per month?? I'll probably get flamed here, but do you REALLY need a huge vacation every year?

There are an amazing number of ways you can cut the fat out of most budgets. You just have to be determined to do it. If you are not ready to hear the message, it will fall on deaf ears. And I see that happening on some of these posts.

But, I digress....

I'm not sure if Dave mentions this or not, but you HAVE to know your financial number. If you do not know how much you need to live an enjoyable and comfortable life, you are walking around completely in the dark. And most people here seem to have no clue.

Does Dave have an automated program that automatically calculates, optimizes, and pays your debts? That's an important step. Put it on auto-pilot just like your retirement plans. Then you won't be tempted to cut corners this month or the next.

And about debt, I heard a statement from a financial mentor that has really stuck in my head: "When debt becomes an investment, wealth is created". Guess what that means? Your HOME is not an investment. It is a debt/liability until you resell it because it does not create cash flow to you.

Just some random thoughts to ponder. Try not to flame the new girl.

 

[Lisa loves Pooh]

Accepted..thanks.

Do debit cards give you the extended warrenty that cc give? Just curious. We just this week got my grands computer fixed (almost $200), have had a monitor replace for free, and got a new, free laptop to replace a broken one, courtesy of my credit cards extended warrenty. Also, I love the car rental insurance..much savings over paying straight out for rental car insurance. How do they work with stop payments? I think I pretty much use my cc as a debit card, except I get all the benefits.
It's all about if you can control your spending, and pay it off every month, don't you think?

I can't control my spending--rendering it impossible to pay it of monthly.

As far as the extended warranties--it is a paid service, it is not free with any of our credit cards.

I'm not sure what you mean about stop payments.

 

[Muushka]

LuckoftheDraw; No flames from me. You speak my lingo!

I am always amazed at people I know who complain that they cannot afford to buy a house (around here it is not that bad). Yet they have 3 or 4 cell phone bills a month, 2 car payments, cable, DSL, home phone...I have to stop, I'm getting sick....

 

[RichNKatHolly]

Wow, I cannot believe that people will not curb back their cable to save their house!! Unreal!

Thanks for all the great info. I don't think any of it is falling on deaf ears. Most of the people on this thread are either already financially stable or are ready to do what it takes to get there. It's a long road and some of you are far ahead of others. I may think the fact that I don't have debt but no savings puts me in the middle of the road, but others may not agree. Others may say, don't go to Disney (or anywhere for that matter) and get further up the road to financial freedom. Mind you, we do not go every year (only twice this year because the first one was gifted).

It is a great service you provide, and I'm sure in this day and age you are VERY busy!!! Sounds like great work for a SAHM. Were you an accountant before staying home? I've seen some threads about work for SAHMs. I too am a SAHM but also work when DH is home.

I've been meaning to read this thread for a few days, and have just now gotten a chance to get through the entire thing. Having heard Dave on the radio a few times, I never dreamed he had such a following.

Dave Ramsey's website is somewhat of a disappointment to me, as it is almost exclusively affiliate links and a sales pitch for his higher-end services. How about some meat and bones in there somewhere? Guess I'll have to get his books from the library.

But here's my background and take on his ideas. First off, I've gotten a fine hard-knocks education, but now the debt I currently have is our mortgage, which I am working diligently to get paid off ASAP.

I am a SAHM who makes a living helping people who are in a serious financial crisis. If you are losing your home to foreclosure, I am the person you call to help you save it. I work with mortgage company's to find a solution, if one is possible. So I hear a lot of bad-luck stories every day. Most of the people could have done this themselves if 1) they had done something sooner, and 2) they had some sort of cushion or 3) they had seriously pared back expenses when the crisis occured. Most people are hoping and praying that something or someone will save them, when in fact, all of the power resides within themselves.

One of the first things I do, in order to help save a family's home is to set up a cash flow statement, showing positive or negative cash flow. If it is negative, we discuss ways to make the cash flow positive. I am always amazed at the things people will NOT cut out of their spending in order to save their house. Yes, some of it is hard, but really, does a person about to lose their home need $129's worth of cable per month?? I'll probably get flamed here, but do you REALLY need a huge vacation every year?

There are an amazing number of ways you can cut the fat out of most budgets. You just have to be determined to do it. If you are not ready to hear the message, it will fall on deaf ears. And I see that happening on some of these posts.

But, I digress....

I'm not sure if Dave mentions this or not, but you HAVE to know your financial number. If you do not know how much you need to live an enjoyable and comfortable life, you are walking around completely in the dark. And most people here seem to have no clue.

Does Dave have an automated program that automatically calculates, optimizes, and pays your debts? That's an important step. Put it on auto-pilot just like your retirement plans. Then you won't be tempted to cut corners this month or the next.

And about debt, I heard a statement from a financial mentor that has really stuck in my head: "When debt becomes an investment, wealth is created". Guess what that means? Your HOME is not an investment. It is a debt/liability until you resell it because it does not create cash flow to you.

Just some random thoughts to ponder. Try not to flame the new girl.

 

[RichNKatHolly]

I can't control my spending--rendering it impossible to pay it of monthly.

As far as the extended warranties--it is a paid service, it is not free with any of our credit cards.

I'm not sure what you mean about stop payments.

I can do stop payments with my debit. It works like with any other credit card. The bank fights whatever battle it is you have for free. Sometimes you get the disputed amount back into your account immediately and sometimes you wait until the dispute is settled.

I hope this is what you meant.

 

[Lisa loves Pooh]

I can do stop payments with my debit. It works like with any other credit card. The bank fights whatever battle it is you have for free. Sometimes you get the disputed amount back into your account immediately and sometimes you wait until the dispute is settled.

I hope this is what you meant.

I don't know--someone mentioned they could do it with a cc and not a debit.

So what you say--means that debit is getting more and more like a cc everyday.

I know I get rebates when I use mine as well.

 

[C.Ann]

I am a SAHM who makes a living helping people who are in a serious financial crisis. If you are losing your home to foreclosure, I am the person you call to help you save it. I work with mortgage company's to find a solution, if one is possible. So I hear a lot of bad-luck stories every day. Most of the people could have done this themselves if 1) they had done something sooner, and 2) they had some sort of cushion or 3) they had seriously pared back expenses when the crisis occured. Most people are hoping and praying that something or someone will save them, when in fact, all of the power resides within themselves.

One of the first things I do, in order to help save a family's home is to set up a cash flow statement, showing positive or negative cash flow. If it is negative, we discuss ways to make the cash flow positive. I am always amazed at the things people will NOT cut out of their spending in order to save their house. Yes, some of it is hard, but really, does a person about to lose their home need $129's worth of cable per month?? I'll probably get flamed here, but do you REALLY need a huge vacation every year?

There are an amazing number of ways you can cut the fat out of most budgets. You just have to be determined to do it. If you are not ready to hear the message, it will fall on deaf ears. And I see that happening on some of these posts.

But, I digress....

I'm not sure if Dave mentions this or not, but you HAVE to know your financial number. If you do not know how much you need to live an enjoyable and comfortable life, you are walking around completely in the dark. And most people here seem to have no clue.

Does Dave have an automated program that automatically calculates, optimizes, and pays your debts? That's an important step. Put it on auto-pilot just like your retirement plans. Then you won't be tempted to cut corners this month or the next.

And about debt, I heard a statement from a financial mentor that has really stuck in my head: "When debt becomes an investment, wealth is created". Guess what that means? Your HOME is not an investment. It is a debt/liability until you resell it because it does not create cash flow to you.

Just some random thoughts to ponder. Try not to flame the new girl.

----------------------------------

Some very valid points - however, some people (like the couple I purchased the book for) need more of an "in-your-face" reality check to get them jump-started.. Others may need the feeling of "being part of a group of others who are doing the same.." Some just honestly don't know what they're doing wrong.. Some really want to succeed and will.. Others don't - and will fail.. Every person has their own individual style - their own "bottom line" - their own assessment of what can and will work for them.. But in order to do anything at all - to even "think" about doing anything - there has to be a "starting" point.. It can be a book - a newspaper article - a tv show - a radio talk show - advice from a parent or a friend - and on and on.. If reading this book (or any other one, for that matter) "sparks" something in them, that's great - if not, no one has ever LOST knowledge simply by reading a book.. There's a whole world of knowledge out there, but often times people are in such a desperate state of mind they simply don't know where to look.. And - as has been demonstrated on this thread - knowledge breeds knowledge - so why not share?

Take what works for you and throw the rest out - but for heavens sake, do SOMETHING..

 

[luckofthedraw]

Were you an accountant before staying home?

LOL, no I've never been an accountant. In fact I hated accounting in school. Might explain learning via the school of hard knocks.

No, I have a mentor who used to be an accountant. He's been well-blessed using some of these exact theories, and even though I am still taking baby steps, I am getting there.

 

[dvcgirl]

I've been meaning to read this thread for a few days, and have just now gotten a chance to get through the entire thing. Having heard Dave on the radio a few times, I never dreamed he had such a following.

Dave Ramsey's website is somewhat of a disappointment to me, as it is almost exclusively affiliate links and a sales pitch for his higher-end services. How about some meat and bones in there somewhere? Guess I'll have to get his books from the library.

But here's my background and take on his ideas. First off, I've gotten a fine hard-knocks education, but now the debt I currently have is our mortgage, which I am working diligently to get paid off ASAP.

I am a SAHM who makes a living helping people who are in a serious financial crisis. If you are losing your home to foreclosure, I am the person you call to help you save it. I work with mortgage company's to find a solution, if one is possible. So I hear a lot of bad-luck stories every day. Most of the people could have done this themselves if 1) they had done something sooner, and 2) they had some sort of cushion or 3) they had seriously pared back expenses when the crisis occured. Most people are hoping and praying that something or someone will save them, when in fact, all of the power resides within themselves.

One of the first things I do, in order to help save a family's home is to set up a cash flow statement, showing positive or negative cash flow. If it is negative, we discuss ways to make the cash flow positive. I am always amazed at the things people will NOT cut out of their spending in order to save their house. Yes, some of it is hard, but really, does a person about to lose their home need $129's worth of cable per month?? I'll probably get flamed here, but do you REALLY need a huge vacation every year?

There are an amazing number of ways you can cut the fat out of most budgets. You just have to be determined to do it. If you are not ready to hear the message, it will fall on deaf ears. And I see that happening on some of these posts.

But, I digress....

I'm not sure if Dave mentions this or not, but you HAVE to know your financial number. If you do not know how much you need to live an enjoyable and comfortable life, you are walking around completely in the dark. And most people here seem to have no clue.

Does Dave have an automated program that automatically calculates, optimizes, and pays your debts? That's an important step. Put it on auto-pilot just like your retirement plans. Then you won't be tempted to cut corners this month or the next.

And about debt, I heard a statement from a financial mentor that has really stuck in my head: "When debt becomes an investment, wealth is created". Guess what that means? Your HOME is not an investment. It is a debt/liability until you resell it because it does not create cash flow to you.

Just some random thoughts to ponder. Try not to flame the new girl.

Well, I agree with everything you say. And you're right about the home being a liability. We own our home outright, no mortgage at all, and yet I have property taxes and utility bills and maintenance fees....so it sure costs me to live here. But there are lots of people in our country right now who are feeling quite wealthy because their home is worth oh so much money. It means very little.

People do not want to part with the yearly vacations and the leased cars and emeril-like kitchens. Because...*everyone* else has them...so why shouldn't they.

 

[ziggystardust]

Wow, I go out to dinner and this thread jumped 3 pages. I guess a lot of us are in the same boat.

I really want to get this book now. Like C.Ann said, even if it doesn't work for me, I'm no worse off b/c I read a book.