Dave Ramsey-Financial Peace University

[madguy30]

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

I'll have to pay attention to if I feel any negative emotions when I use cash. I suppose it can create anxiety if something comes up.

I find it to be a bit invigorating as it makes me purchase by need and feel good about budgeting.

 

[dmclone]

Probably not the wisest move but I treat my CC more like a checking account. I pay off the balance at the end of every week from my checking account.

 

[Rabbuk]

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.

jesus what are you a long haul trucker.

 

[SCNCY]

Probably not the wisest move but I treat my CC more like a checking account. I pay off the balance at the end of every week from my checking account.

I do the same thing.

 

[Rabbuk]

Probably not the wisest move but I treat my CC more like a checking account. I pay off the balance at the end of every week from my checking account.

this is a completely fine move

 

[benman82]

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?

Assuming you're wanting a checkup on where you're at in terms of retirement savings, this article is the only thing you'll ever need to know. The short of it is to take how much you want to spend in a given year and multiply it by 20-30, and with that amount of money invested (so don't count anything from a house unless you have a plan to make it liquid) you can safely retire. Most "financial experts" base retirement saving needs on your current income, but that'll never be as accurate as looking at what you spend.

The 4% Rule: The Easy Answer to “How Much Do I Need for Retirement?”

In the world of early retirees, we have a concept that goes by names like “The 4% rule”, or “The 4% Safe Withdrawal Rate”, or simply “The SWR.” As with all thing…

www.mrmoneymustache.com

This one is also a solid read.

The Shockingly Simple Math Behind Early Retirement

This is the blog post that shows you how to be wealthy enough to retire in ten years. Here at Mr. Money Mustache, we talk about all sorts of fancy stuff like investment fundamentals, lifestyle chan…

www.mrmoneymustache.com

 

[JP4CY]

jesus what are you a long haul trucker.

I go to quite a few away games and travel for work.

 

[RoseClone]

Everyone pays off their credit cards every month yet in the US alone there is around a trillion dollars of credit card debt. Amazing.

 

[bos]

Probably not the wisest move but I treat my CC more like a checking account. I pay off the balance at the end of every week from my checking account.

this is a rarity unfortunately and that’s what Dave is concerned with. I do what you do as well, but I definitely see Dave’s point on it.

 

[NWICY]

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.

Would you mind sharing what card that is? I travel quite a few miles that could be quite the savings for me.

 

[NWICY]

Everyone pays off their credit cards every month yet in the US alone there is around a trillion dollars of credit card debt. Amazing.

This board has a pretty high rate of college grads and I would think that helps with people being able to manage their finances.

 

[mramseyISU]

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.

FWIW I was just looking the other day at trading in for a lower payment and at my credit union a 60 month new vehicle loan is just a shade under 2.5%.

 

[Cyclone06]

“I got rich from credit card points.” By using cards all we are doing is driving up the cost of things so the card companies can give us “rewards”.

 

[mywayorcyway]

“I got rich from credit card points.” By using cards all we are doing is driving up the cost of things so the card companies can give us “rewards”.

I can choose not to play the game, pay cash, and get zero reward, or I can play the game and get my pittance back.

 

[BCClone]

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

He does. The people who call in and mentions it, he makes serious fun of and insults them.

I have listened to him off and on for many years since he was on. He used to admit to taking out loans for his first book. He quit doing that. His history had changed over time.

BTW, I think he does about 50 radio shows a year. Some I’ve heard 4-5 times already.

 

[BryceC]

“I got rich from credit card points.” By using cards all we are doing is driving up the cost of things so the card companies can give us “rewards”.

If you're smart about it you can get serious rewards. It takes a lot of management but that's easier for me at this point than increasing my income.

I agree with 99% of what Dave preaches. I think he's helped a lot of people. Considering the amount of short term and credit card debt in this country we'd be a lot better off as a society if everybody just adopted his methods. That said, gaming the frequently flyer miles system is kind of a hobby of mine and has allowed me to take a lot of trips with my family that I never would have been able to do, so like everything there are exceptions.

 

[Cybyassociation]

One of the things that makes me uneasy about Ramsey is his tenet about giving, and specifically to churches. Give all you want to your churches, that's not what bothers me, what bothers me is churches are his largest audience/target market. He wants you to give to churches and he wants churches to support his programs? Seems a little fishy.

 

[iowa_wildcat]

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.

By the way, I am very frugal financially. Everything I have is paid for in full. Pulling that credit card out to me is just like pulling out cash. Self discipline is the key to financial health.

 

[JP4CY]

Would you mind sharing what card that is? I travel quite a few miles that could be quite the savings for me.

Synchrony backed Sams Club
5% gas up to 6k
3% dining and travel
1% everywhere else
You get a check once a year. I take it to Sam's and cash it.

 

[BryceC]

One of the things that makes me uneasy about Ramsey is his tenet about giving, and specifically to churches. Give all you want to your churches, that's not what bothers me, what bothers me is churches are his largest audience/target market. He wants you to give to churches and he wants churches to support his programs? Seems a little fishy.

They do seem to be closely tied, my church used to do this stuff too. That said, Dave's philosophy that money is for giving, saving, and fun is sound. He wants you to give somewhere, and on that I agree.