Dave Ramsey-Financial Peace University

[ISUCHIEF]

I just don’t get the hate for DR. His system would help 90% of Americans who have absolutely no clue how to handle money. Yes he screwed up when he was young (who hasn’t), but has been consistent ever since. I wish more people would give him a shot.

For those that dislike DR, why don’t you give Mr. Money Mustache or the Minimalists a try (and bogleheads as mentioned before)? They offer a different perspective of close to the same message... live intentionally within your means. Use what works for you. The world would be a better place.

 

[Clonehomer]

Ramsey is great for people who are financially illiterate. He is an idiot for anyone who has any clue how to handle their finances. His anti debt stance is just one of multiple idiotic ideas he has. Don’t use debt a ton but it can be useful. Credit cards are great if you can control yourself. I pay for pretty much everything on my credit card. I have paid $0 to use them and have gotten a ton of rewards.

Ramsey's no debt philosophy also doesn't really take into account stages in life. These days, you're either lucky to have well off parents or are going to take on debt to go to college. But in the long run, that's the wise thing to do financially.

Also, having kids isn't a wise financial decision on paper either. Many people take on debt to do that. The key is to stay within a limit that you can pay that back relatively quickly.

 

[NorthCyd]

Ramsey is good in the same way AA is good for alcoholics. If you aren't financially responsible enough to handle a line of credit, and a lot of people aren't, then you should listen to him.

 

[NorthCyd]

I just don’t get the hate for DR. His system would help 90% of Americans who have absolutely no clue how to handle money. Yes he screwed up when he was young (who hasn’t), but has been consistent ever since. I wish more people would give him a shot.

For those that dislike DR, why don’t you give Mr. Money Mustache or the Minimalists a try (and bogleheads as mentioned before)? They offer a different perspective of close to the same message... live intentionally within your means. Use what works for you. The world would be a better place.

I don’t like him because he thinks his way is the only way, and so do his zealots. I've gotten lectured by several financially illiterate people who thought they would try to save me with the truth that is Ramsey. I think it's great for people who can't handle money, but don't lecture others who can handle their finances just fine.

 

[Gunnerclone]

Just pulled 40k from my 401k to dump in to mostly Apple stock. Thanks Coronavirus! Suck it Ramsey!

 

[ISUCHIEF]

I don’t like him because he thinks his way is the only way, and so do his zealots. I've gotten lectured by several financially illiterate people who thought they would try to save me with the truth that is Ramsey. I think it's great for people who can't handle money, but don't lecture others who can handle their finances just fine.

I understand that feeling from other scenarios I’ve been in but would put that more on your acquaintances than DR. You are not his target audience if you are already in control. His tone on the radio/books has to be the way it is otherwise it would never resonate with the people who need the help. They would latch on to all of the “outs” instead of the message to get them on the right path.

 

[NorthCyd]

I understand that feeling from other scenarios I’ve been in but would put that more on your acquaintances than DR. You are not his target audience if you are already in control. His tone on the radio/books has to be the way it is otherwise it would never resonate with the people who need the help. They would latch on to all of the “outs” instead of the message to get them on the right path.

I understand. My ex father inlaw had something like $50,000 in CC debt, and he went full Ramsey and they pulled themselves out of it. It was amazing really. But when he lectured me that I was on the path to financial ruin for taking out a 15k loan to buy a vehicle I about lost it.

 

[ClonesFTW]

He is correct that you can use manual underwriting. The problem is that many banks don't want to mess with them or the banker doesn't know how to do them. I'm also not sure many banks have that option right now, especially with the interest rates.

Oh consumers certainly can get a mortgage with 0 credit reporting... What he conveniently leaves out is that the documentation required will be 5x the amount in comparison to someone with a score reporting and the interest rate will be worse (which defeats the purpose to begin with).

 

[dmclone]

I'm far from knowing all the answers, each year I learn new things, and my situation is constantly changing and most likely different than 99% of other people. I've never taken a Dave Ramsey course but I've looked through his steps and have listened to him on the radio. I think most people could do a lot better financially by following his advice. It at least creates a starting point.

I find that when I take workshops I don't always get the answers I want but it gives me enough info to do more research. As an example, my employer is always offering free lunch time sessions where you can talk to professionals. Sometimes these professionals are offering a product, other times they are just sharing knowledge. A couple of weeks ago they offered an hour long course on long term care. I learned a few new things but I actually had more questions going out then when I went in. I then sat down for a few hours and searched Bogleheads and found an alternative that this advisor didn't even mention.

 

[Cyclone06]

I do not personally practice all of what Dave Ramsey preaches, but I absolutely appreciate his stances. I cringe when I hear people say "good debt." I do use a credit card and mortgage, and will take a car loan soon to get a new kid hauler, but I tell you what, in 5-10 years when there is zero debt save for a cc that is paid off every month, I will feel free. And along with that freedom, I will have... money (knocks on wood).

 

[Urbandale2013]

I do not personally practice all of what Dave Ramsey preaches, but I absolutely appreciate his stances. I cringe when I hear people say "good debt." I do use a credit card and mortgage, and will take a car loan soon to get a new kid hauler, but I tell you what, in 5-10 years when there is zero debt save for a cc that is paid off every month, I will feel free. And along with that freedom, I will have... money (knocks on wood).

I’m debt adverse too but that isn’t really what Ramsey is. Ramsey is deathly allergic to debt. I’m on pace to get both my car and student loans paid off in 2 years from now. I can’t wait for that point. Then I will take that money and combine it into a new car payment for the next 5 years or so and buy in cash or close next time. Then assuming I stick with a similar car I’d have way more saved up by the time I buy after that allowing me to splurge some or repurpose the savings. There are plenty of cases of good debt. Most of them are when you are young but it is still good debt.

If you were talking about borrowing and investing the difference I don’t like that but it is theoretically sound stuff. The problem generally comes with failing to properly execute it.

 

[4theCYcle]

Ramsey is great for people who are financially illiterate. He is an idiot for anyone who has any clue how to handle their finances. His anti debt stance is just one of multiple idiotic ideas he has. Don’t use debt a ton but it can be useful. Credit cards are great if you can control yourself. I pay for pretty much everything on my credit card. I have paid $0 to use them and have gotten a ton of rewards.

Bingo. His poor take/rhetoric on CC's fails to acknowledge there are highly beneficial and practical outcomes if one has self-accountable attitude to keep up on payments. I know s**t happens and people fall behind, but we use it as a simple accounting system, builds points, and for the credit score. We've gone on 2 international trips in the last 4 years where the flights were paid for. We've only had to pay interest on it a couple times - 1 after our wedding/honeymoon and 1 other time. Otherwise, we've been free and clear. We aren't in a lot of debt because of our working attitudes on initially paying off student loans and driving vehicles for a long time.

 

[cyfan92]

Bingo. His poor take/rhetoric on CC's fails to acknowledge there are highly beneficial and practical outcomes if one has self-accountable attitude to keep up on payments. I know s**t happens and people fall behind, but we use it as a simple accounting system, builds points, and for the credit score. We've gone on 2 international trips in the last 4 years where the flights were paid for. We've only had to pay interest on it a couple times - 1 after our wedding/honeymoon and 1 other time. Otherwise, we've been free and clear. We aren't in a lot of debt because of our working attitudes on initially paying off student loans and driving vehicles for a long time.

I agree and use a CC as well. However, humans spend more money when using plastic than they would when they use cash. Because the physical handing over of cash causes negative emotions in our brain. That's why he hates CC's

 

[Cybyassociation]

I think Dave Ramsey has some sound financial advice. I don't agree with some of his methods or philosophies, but he knows what he's talking about.

 

[kirk89gt]

The value I get from listening to Dave is to "identify the ditches". I figure if I can't relate to the problems that people are sharing on a radio show, I must be doing something right. Over time, I have picked up some good nuggets from Dave and his financial advice is definitely "old school" and definitely has some biblical roots, but I also can appreciate "simple works".

Where I would find value, would be in the arena of........"Ok, so I did all of this, now what?" or give me a "Total Money Checkup". Estimates are exactly that and they look favorable, but the nervous nelly in me wants to make sure there is enough gas left to "finish the race". Anyone have any suggestions / resources?

 

[iowa_wildcat]

Dave Ramsey can pound sand. I put everything I purchase on my credit card. That card returns 2% of what I spend back to me. I pay the total balance monthly and never pay any interest.

 

[Tre4ISU]

I think Dave Ramsey has some sound financial advice. I don't agree with some of his methods or philosophies, but he knows what he's talking about.

This is where I am. His advice will always work. Always. Does everyone need to do it to ensure financial success? Absolutely not. I know a few people who have had their lives, marriages, etc changed for the better by the guy.

Personally, I hate debt but right now, it's really hard for me to argue against even a car loan because the interest rate is so low that a person should be able to make more than they are spending on interest through even a conservative investment. I mean ****, people refinancing houses for well under 3% and I've heard of auto loans in the mid 3s or lower. It's ridiculous.

 

[Tre4ISU]

Dave Ramsey can pound sand. I put everything I purchase on my credit card. That card returns 2% of what I spend back to me. I pay the total balance monthly and never pay any interest.

I don't think Ramsey would disagree with that activity though. That's what I do.

 

[JP4CY]

Dave Ramsey can pound sand. I put everything I purchase on my credit card. That card returns 2% of what I spend back to me. I pay the total balance monthly and never pay any interest.

I get 5% at fuel pumps up to $6k a year. Wife and I both get close to that number annually. It's $300 bucks back.

 

[JimDogRock]

I don't think Ramsey would disagree with that activity though. That's what I do.

He does disagree. He's a proponent of not using credit cards or any plastic card.
The argument is that people spend more than they would if they were paying with cash.

And he also condemns rewards points for credit cards. If people make extra purchases they would not normally make but justify the spending by telling themselves "It's okay, I'm getting points back" it's not going to take too many of those extra card swipes to completely wipe out any bonus points you get.

Are his recommendations very blanketed and simple? You bet.
Has he helped a lot of people? Seems like it.

I'm not a follower or practitioner of his, but I've read and listened to some of his stuff. I'm no credit card points hacker or anything, but I have a few cards with various levels of rewards on different categories. So I spend a little bit of energy to get the few extra bucks here and there but make no conscious effort to max out any points.