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Thread: Dave Ramsey

  1. #1
    RC Qualifier NICK31's Avatar
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    Dave Ramsey

    Just wanted to share my thoughts and hope others in this hobby can benefit or relate. As this hobby/forum does reach a lot of younger individuals, hopefully this can be beneficial. I wish schools would put higher emphasis on debt/wealth-building... I know I wished I read/knew more about this when I was 16-21.

    Have been listening to Dave Ramsey for a couple years now and he has a great program and advice for those needing that jumpstart to eliminate debt and build wealth. Recently, I've been trying to look into Mr. Money Mustache and similar..

    After getting intentional, my wife and I now have no debt (besides the mortgage) and have shrunk our monthly living expenses down to <$2000/month. Everyone starts somewhere and we all have the capability to live debt free.

    Anyone else benefit from Dave Ramsey or similar?

  2. #2
    RC Turnbuckle Jr. Squeegie's Avatar
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    Out church has put on his Financial Pease University (FPU) seminar twice!
    Creativity is intelligence having fun. -Einstein

  3. #3
    Marshal Double G's Avatar
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    I haven't gone through the program officially but have followed his steps pretty closely and listen to his show occasionally. Saw him speak live one night and he overflowed the auditorium! Also we've lived by the 10/10/80 rule: save 10%, give 10%, live off 80 and it has worked out very well.

    Told my wife when we got married that we would not have credit cards. Still don't. Our wedding was simple and when we landed back at home from our honeymoon we had $0 outstanding debt on it all. Saved up and paid cash for all our remodeling over the years: new roof, deck, patio, driveway, interior doors and trim, paint, two bathrooms, etc. Our family trips were all in cash. Purchased our cars used and both are paid off...though we did take a loan on my wife's 2017 SUV last summer but we put 1/2 down and paid off the rest in less than six months. Only debt we have is mortgage but we are paying ~40% more on it per month.

    It is very nice to be able to say "We can afford that." and not be worried about next month's statement in the mail or if a big expense comes in we have a cushion to pay. We killed off the "keeping with the Jones's" mentality right away.
    The Super Derecho

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    RC Turnbuckle Jr. Greatscott's Avatar
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    We have a number of people where I work that have gone through his course, and it has worked out for them fairly well. My favorite show of his was the one where a mother called up, wondering how she could afford tuition for her son, he was going to go to a prestigous music school to play tuba, at a cost of over $400k.

    Quote Originally Posted by Double G View Post
    It is very nice to be able to say "We can afford that." and not be worried about next month's statement in the mail or if a big expense comes in we have a cushion to pay. We killed off the "keeping with the Jones's" mentality right away.
    Its funny the way things change as you get older. When I was younger, I'd by stuff I really couldn't afford just to prove that I could. Through experience and time I am at the point where its not about what I can afford, but more about what I am willing to spend on it.
    Submarine Qualified, Chief Inducted, Navy Retired

  5. #5
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    We very loosely follow him. We've been in our current house for 16 years and that is our only debt. And in 3 months it will be paid off (before we turn 50!!).
    Then it is time to save for our one and only kiddo to go to college; who still has two years of high school left. Maybe she can start life without any debt.

    We did it by cutting back on stuff we thought we needed but didn't (cable TV and eating out as much) and saving money in places we could (phone plans, choosing better electric rates). It's amazing how planning stuff like this and using the save money to pay off debt adds up. We knocked over $200mo on just cable tv and that includes replacing it with a couple of streaming services.

    Double G is right about keep up with the Jones'. People think they need all this stuff to be happy and better. Forget that, simple life can be just as happy. Not saying we don't have stuff. I've got a 19' travel trailer, a 4x4 trail rig, a motorcycle and both vehicles are less than 7 years old plus we just fully rebuilt a 1985 C10 for my daughter. We just learned how to save and not waste it on cr@p.
    Scott
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  6. #6
    RC Qualifier NICK31's Avatar
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    Quote Originally Posted by Squeegie View Post
    Out church has put on his Financial Pease University (FPU) seminar twice!
    That's so cool! I have a friend who has attended one of those, I haven't, however.

    Quote Originally Posted by Double G View Post
    I haven't gone through the program officially but have followed his steps pretty closely and listen to his show occasionally. Saw him speak live one night and he overflowed the auditorium! Also we've lived by the 10/10/80 rule: save 10%, give 10%, live off 80 and it has worked out very well.

    Told my wife when we got married that we would not have credit cards. Still don't. Our wedding was simple and when we landed back at home from our honeymoon we had $0 outstanding debt on it all. Saved up and paid cash for all our remodeling over the years: new roof, deck, patio, driveway, interior doors and trim, paint, two bathrooms, etc. Our family trips were all in cash. Purchased our cars used and both are paid off...though we did take a loan on my wife's 2017 SUV last summer but we put 1/2 down and paid off the rest in less than six months. Only debt we have is mortgage but we are paying ~40% more on it per month.

    It is very nice to be able to say "We can afford that." and not be worried about next month's statement in the mail or if a big expense comes in we have a cushion to pay. We killed off the "keeping with the Jones's" mentality right away.
    Love it! We've always been Dave-ish in a way and have been money conscious, but never...intentional. It doesn't help that I am a car/motorcycle enthusiast and have trouble holding onto a car for a couple years...

    About 2 years ago, we were sitting with two car loans. My 2016 Focus ST we bought new and her 2019 GMC Terrain that was just newly purchased. We said enough was enough and got serious with our debt. I sold my car and used the equity to get a 2012 Escape which I still drive today. We then tackled her Terrain, paying it off in 12 months. We were finally debt free (besides the house)..

    Didn't take long after that I got the itch again...bought a new motorcycle and then when the 2020 C8 Corvette was officially announced I was disappointed they weren't going to offer it in a manual anymore. It had always been my dream, among many Americans, to own such a car. March 2020 I picked up a 2019 Corvette Stingray Manual 7-speed with 0% interest on a 84-month loan. We took it on a couple road trips (namely to TN/KY and saw the National Corvette Museum!). One year later...and making the payments over the winter I was getting tired of having the debt. Also, the value of the car jumped $7k in a 3 month timeframe. I ended up selling it to a dealership for more than I paid (before TTL) and walked out with some nice equity. The motorcycle was sold right after we purchased the Corvette..

    Looking back, although it was a great car with plenty of power, I got so nervous parking it places and would intentionally not drive it to certain places because of those people who have no respect for other peoples property. It truly was a great car and the last of its kind.





    For anyone getting that itch to "upgrade"...don't do it unless you have the cash to buy it in full. Learn from my mistakes. By all means, even with the car payment/insurance, we were still able to save quite a bit of money per month. But it would just be holding us a couple years back from our real dream/plan; buying some land and building a house. Dave is absolutely right on why debt is so bad and how it takes away your ability to build wealth. I hope going forward, I have the willpower to stay out of debt/loans. It's a great feeling to not owe money to anyone and not have to worry how we'll pay the bills if one of us lost our jobs.


    Quote Originally Posted by Greatscott View Post
    We have a number of people where I work that have gone through his course, and it has worked out for them fairly well. My favorite show of his was the one where a mother called up, wondering how she could afford tuition for her son, he was going to go to a prestigous music school to play tuba, at a cost of over $400k.

    Its funny the way things change as you get older. When I was younger, I'd by stuff I really couldn't afford just to prove that I could. Through experience and time I am at the point where its not about what I can afford, but more about what I am willing to spend on it.
    I think I saw that episode! I fully agree. I try to be as humble and helpful as I can.

    Quote Originally Posted by Scott91370 View Post
    We very loosely follow him. We've been in our current house for 16 years and that is our only debt. And in 3 months it will be paid off (before we turn 50!!).
    Then it is time to save for our one and only kiddo to go to college; who still has two years of high school left. Maybe she can start life without any debt.

    We did it by cutting back on stuff we thought we needed but didn't (cable TV and eating out as much) and saving money in places we could (phone plans, choosing better electric rates). It's amazing how planning stuff like this and using the save money to pay off debt adds up. We knocked over $200mo on just cable tv and that includes replacing it with a couple of streaming services.

    Double G is right about keep up with the Jones'. People think they need all this stuff to be happy and better. Forget that, simple life can be just as happy. Not saying we don't have stuff. I've got a 19' travel trailer, a 4x4 trail rig, a motorcycle and both vehicles are less than 7 years old plus we just fully rebuilt a 1985 C10 for my daughter. We just learned how to save and not waste it on cr@p.
    It's crazy how much people can save when setting up a budget. This stuff needs to be better taught in our school system! Everyone wonders why they are perpetually broke....yet, I need my daily Starbucks, I need an Apple watch, I need to upgrade my phone every year, I'm not cooking at home when I can eat out every night... It's incredible how easy it is to blow $10K in a year! ($27 dollars of misc spending a day...)

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