|
Post by sd51555 on Mar 14, 2019 15:27:46 GMT -6
|
|
|
Post by Tooln on Mar 14, 2019 16:47:14 GMT -6
I have NEVER carried a balance on any of my cards.
|
|
|
Post by Reagan on Mar 14, 2019 17:18:35 GMT -6
I have always paid my card off each month too. I would never purposely try to pay 5 or 10% or more for something. So why would I ever want to carry a balance.
|
|
|
Post by biglakebass on Mar 14, 2019 17:20:30 GMT -6
Zero balance EVER carried month to month. EVER. We have auto pay everything going to the card. Getting the points. Pay it off every month.
|
|
|
Post by badbrad on Mar 14, 2019 17:25:50 GMT -6
I'll be perfectly honest. My wife was one of those people you speak of. Way too much credit card debt and mismanagement of money. First thing I did is pay off her (our?) credit cards and said no way are we paying that. I've never had a balance either. She makes great money but its not how much you make but how much you spend and how you manage your money. People do suck at money these days. Luckily she said you take care of all the money cause you are good at it.
|
|
|
Post by Freeborn on Mar 14, 2019 17:41:50 GMT -6
Unless you can obtain a risk free rate of return in the market greater than your cost of capital you should pay off your debt. There is no risk in paying off your debt and you get the return equal to the cost of capital. Pay off your debt and it won't be long and you will be taking the interest you were paying in debt payments and adding it to the principal your now investing in the market. In the long run you will be ahead.
|
|
|
Post by Bwoods11 on Mar 14, 2019 17:58:05 GMT -6
There’s good debts and bad debts, my only real debt is my farms—good tax write off and the income makes most of the payment.
|
|
|
Post by MoBuckChaser on Mar 14, 2019 18:26:49 GMT -6
I have been so called land poor forever. When you buy land and pay for it, the cash is tied up, and you earn no rate of return unless it has rent value, or it goes up in value over time, or hopefully both. I have been very fortunate to have every chunk of land I have owned to make me way more money than the markets could I think. Land has been very very good to me. Also, I charge about $2500 on my CC per month, mostly fuel and a few parts once in a while. Always gets paid off. But I think the average joe has thousands on them monthly with huge interest attached. Best to nip that in the ass before it gets out of control. I like Daves way of paying off your debt. I don't like how he says to use only his financial advisors to invest. Scam city with high fees. But most people have no Idea what a No Load, front load or back load is or a maintenance fee is, let alone what is low or high fee's for a certain mutual fund sector.
|
|
|
Post by Reagan on Mar 14, 2019 19:08:06 GMT -6
Seems to be a theme here. So what makes Dave stupid? Your link doesn’t seem to work for me.
|
|
|
Post by Reagan on Mar 14, 2019 19:09:12 GMT -6
I'll be perfectly honest. My wife was one of those people you speak of. Way too much credit card debt and mismanagement of money. First thing I did is pay off her (our?) credit cards and said no way are we paying that. I've never had a balance either. She makes great money but its not how much you make but how much you spend and how you manage your money. People do suck at money these days. Luckily she said you take care of all the money cause you are good at it. So she says you should be in charge. Did you cut up her credit cards? If not, what keeps here from running up more debt?
|
|
|
Post by MoBuckChaser on Mar 14, 2019 19:16:27 GMT -6
I'll be perfectly honest. My wife was one of those people you speak of. Way too much credit card debt and mismanagement of money. First thing I did is pay off her (our?) credit cards and said no way are we paying that. I've never had a balance either. She makes great money but its not how much you make but how much you spend and how you manage your money. People do suck at money these days. Luckily she said you take care of all the money cause you are good at it. So she says you should be in charge. Did you cut up her credit cards? If not, what keeps here from running up more debt?Nothing......
My buddy the deputy who is now divorced, was way in debt on CC's student loans and some other shit. The gal he started going out with is from a farm, is now a RN and she is tight with money. In 6 years she got him all caught up and they had everything paid off. Then he got another credit card that she found out about. Led to a big blowup, he found another chick and moved out. Tough to changes those habits.
|
|
|
Post by gsquared23 on Mar 14, 2019 20:14:30 GMT -6
To argue civilly, Dave Ramsey is not a stupid asshole, in my opinion. What he preaches IS very, very simple, but that’s the beauty of it. Most people are really, REALLY bad with money, financially incompetent, irresponsible, and other adjectives. And most people are pretty dumb, and need a meat and potatoes plan to follow. Where he is 100% correct and what the financial turds can’t seem to grasp is that managing money is 80% behavior. Control the bad habits by creating good ones, and you have a good chance at being wealthy.
His plan is a good foundation for people that are uneducated about money: live on less than you make, save money, you likely can’t really afford something if you can barely make the monthly payment. You can be as fiscally sophisticated as you want and make a ton of money, but if you spend it all, you will never be wealthy. EVERYONE can agree to that.
I think his business plan is a lot more sophisticated than his financial system, but again, he has served a lot of people, and has become VERY VERY wealthy doing it, so you really cannot argue with his success.
Regarding credit cards, I agree 100% with his opinion. I too would pay off the balance every single month and scoffed and anyone that would keep a balance. Then I used the “free” rewards points and get “free” gift cards. But what he constantly cites are the research papers that you spend a lot more when you use plastic. So that 1% that I got back ended up being -20% because I would pick up extra crap I didn’t intend to buy, because “oh well, I’m getting cash back anyway”. Look yourself in the mirror and ask if you really never get suckered into this pitfall, and if you say you don’t, you’re full of manure. If you’re otherwise good with money, it will not break you, but you’ll fooling yourself if you think you’ll come out ahead against a multiBILLION dollar industry. So I cut mine up; personal decision, but I spend less without it. I saved up straight cash to buy $200+ of welded wire and stakes for my tree planting. That transaction hurt, it was painful, but I went in with the money in my pocket, and I was much less tempted to pick up anything else I wasn’t in there to buy that day (still bought 70 cents worth of tomato seeds though).
I see his point on mortgages not being great, but he is also not totally against them as you’re building equity in a (hopefully) appreciating asset, so if the interest and mortgage length aren’t bad, he’s not completely opposed.
As far as his investment advice, again, it’s certainly not the most sophisticated, but his core recommendation is the most important and impossible to argue with: you won’t have anything else you save and invest. It matters less exactly how you invest, it matters that you save consistently, which most people do not do as they live paycheck to paycheck.
So in summary, is his plan a bit stupid and too simple for some? Sure. Can he be a haughty asshole? You bet. Bet I’d argue for the above reasons that he’s not a stupid asshole.
|
|
|
Post by sd51555 on Mar 14, 2019 21:38:06 GMT -6
Seems to be a theme here. So what makes Dave stupid? Your link doesn’t seem to work for me. Did the link not work for anybody? It was eerily quiet today, both at work and on the forum. I thought I'd throw a lightning rod thread out there to see if you guys were still around. To be honest, Dave is no bigger asshole than anyone else shilling books and systems that address this or that. I can get over him calling me an asshole every day on his show. For those that were able to open the link, did you catch that this was a big re-opening of the great life insurance debate of 2017? I had a guy named Mud River Jim move into my office recently, and he's built a business out of this system. We've been talking a lot about it in our free time. He almost fell over dead when he found out I was an "Own your debt" guy. The big idea is, life will hand you debt. If you've never needed it, you're the extreme exception, and you've likely may have held way too much cash or held savings in way-too-risky of a place to fund medium term things like cars, braces, roofs, appliances, college, etc. This concept makes you your own banker and eliminates: credit scores late payment fees application and maintenance fees refinancing costs paying someone else interest property liens IRS rules dictating when you can use your capital income taxes bank risk And it allows you to earn dividends and interest on your debt while you're using the your capital to fund something. Any other place, it's zero-sum, and all those issues come back. I've rotated through mine Dave is a nice enough guy, but he gets Jerry Springer emotional when this topic comes up and he represents it 100% wrong. Maybe it's because he doesn't have any "endorsed local providers" that sell this system.
|
|
|
Post by Foggy on Mar 14, 2019 22:02:07 GMT -6
Seems to be a theme here. So what makes Dave stupid? Your link doesn’t seem to work for me. Did the link not work for anybody? It was eerily quiet today, both at work and on the forum. I thought I'd throw a lightning rod thread out there to see if you guys were still around. To be honest, Dave is no bigger asshole than anyone else shilling books and systems that address this or that. I can get over him calling me an asshole every day on his show. For those that were able to open the link, did you catch that this was a big re-opening of the great life insurance debate of 2017? I had a guy named Mud River Jim move into my office recently, and he's built a business out of this system. We've been talking a lot about it in our free time. He almost fell over dead when he found out I was an "Own your debt" guy. The big idea is, life will hand you debt. If you've never needed it, you're the extreme exception, and you've likely may have held way too much cash or held savings in way-too-risky of a place to fund medium term things like cars, braces, roofs, appliances, college, etc. This concept makes you your own banker and eliminates: credit scores late payment fees application and maintenance fees refinancing costs paying someone else interest property liens IRS rules dictating when you can use your capital income taxes bank risk And it allows you to earn dividends and interest on your debt while you're using the your capital to fund something. Any other place, it's zero-sum, and all those issues come back. I've rotated through mine Dave is a nice enough guy, but he gets Jerry Springer emotional when this topic comes up and he represents it 100% wrong. Maybe it's because he doesn't have any "endorsed local providers" that sell this system. For every guy you can show me that can "own your own debt"......I can show you 20 that believe in using OPM. (Other Peoples Money) to grow their wealth. Fankly.....I am an "own your own debt" kinda guy these days.....and I have been since about 1990 or so when I started my biz. Since then.....I pretty much financed everything I did with my own resources. When I ran my biz.....the bank offered me a big credit line.....but I did not need it....as my margins allowed me to finance my own growth faster than I could handle it. That is odd for a biz....but that WAS my biz plan....and it worked for me. Today....I pay cash for anything I buy or do. I tell 'em I am too old to borrow money.....but in reality I dont want to or need to borrow for what I want. Still....I needed to borrow some money in the early years to get a roof over our heads....like anyone else. But in those times we were living in an inflationary economy.....and that is not so much these days.
|
|
|
Post by sd51555 on Mar 14, 2019 22:07:39 GMT -6
I've dipped into this system myself 3 different times to finance my life's work. It helped me buy both of my properties, and cabin. Like a line of credit, dip into it, pay it back. Rinse and repeat. Each time I do it, the size of the bank gets bigger and bigger. I still have a farm credit loan on my land, but I hope to be rid of that in a few more years. I greatly prefer taking money out of my left pocket and putting it into my right pocket, instead of taking it out of my left and giving it to someone else. Here's an example of the math.
|
|