Dave Ramsey

[AikenRooster2112]

Originally Posted by uscjeremynca

No, disagree. Like your point about mortgages. However, if people treated credit cards the same way, then prices wouldn't be higher.

With that said, you won't see a more pissed off person than me when it comes to borrowing and people living beyond their means. I have already ranted in this thread about that with what I said about our politicians who can't control their own personal spending but are expected to control our government spending and then we wonder why we are trillions in debt.

I have little sympathy for people who live beyond their means and buy crap they don't need or can't afford. I could spend pages talking about this. However, you get my point - people living beyond their means has overinflated our economy and caused people to struggle with their finances because they have ability to live within their means.

Now let me make this very clear - I NEVER use a credit card to buy something I can't afford or as a mean of borrowing money.

I pay off my balance every month. I don't pay late charges. I use credit cards to get free stuff and bonuses. I don't carry balances on credit cards.

If you know how to live within your means, you can use a debit or credit card. It doesn't matter because you don't have to pay anything. I have absolutely no clue what the interest rate on my CC is. Why? I never get charged.

Credit cards are not the problem - living beyond your means is. It's fine to use a credit card if you pay it off every month. Spend what you have and don't live beyond your means.

Point taken, but you're a rational, intelligent, human, which is an exception to the norm. Most people, especially the people who need Dave's advice the most, don't have control of their lives, and theyreneither rational or intelligent.

[stiffolcock]

Originally Posted by AikenRooster2112

Point taken, but you're a rational, intelligent, human, which is an exception to the norm. Most people, especially the people who need Dave's advice the most, don't have control of their lives, and theyreneither rational or intelligent.

Lol.....

[upstatescw]

I like Dave Ramsey. Like anyone else, I think his advice is good general advice but depending on the situation and the individual, all of it may not work for everyone. I'm not a big fan of debt, in fact, I hate it. However, I have used it to make me money that i would have never made without it. That is really the only place that I think debt is acceptable (for me atleast) making money. But you still have to be smart with it, even when making money. And even then, there will come a point where I will stop using debt, even to make money.

[LegalCock]

Kinda' late but I came across this blog while looking for something else.

http://badmoneyadvice.com/2009/05/te...got-wrong.html

[nicstockman]

Originally Posted by LegalCock

Kinda' late but I came across this blog while looking for something else.

http://badmoneyadvice.com/2009/05/te...got-wrong.html

Haha. Is this guys serious?

I love the fact that the first paragraph is him basically whining that he hasn't gotten more attention than the thought he should. Then the second paragraph is a backhanded compliment.

[FloydTheBarber]

Originally Posted by nicstockman

Haha. Is this guys serious?

I love the fact that the first paragraph is him basically whining that he hasn't gotten more attention than the thought he should. Then the second paragraph is a backhanded compliment.

but what about the content of his criticisms?

[nicstockman]

Originally Posted by FloydTheBarber

but what about the content of his criticisms?

Honestly, I feel like Dave tries to answer his questions speaking in a more 'general' sense and this guys seems to address more 'specifics'

EXAMPLE: his first point: On Roth vs. Traditional

Dave generally states that a Roth IRA is better in the long run than a Traditional IRA due to the taxes associated with the two (I would agree). This guys says that this concept is not ALWAYS true due to the off-chance that if "the tax rate is higher now than in retirement, a traditional will save more money" - while this may be a true statement, for this particular example (a 30 y/o pulling in $40K) what are the ODDS that the tax rates are going to be lower when this guys retires?

Sure it's possible, but its not likely. If you think you're going to come out ahead with a traditional IRA - go ahead and invest - the point Dave tries to make is to do SOMETHING so that you'll have money when you retire, and he gives advise on what he feels is the best option available.


Another EXAMPLE: his second point: Discussing FICO scores

Doesn't this guy seem to be nit-picking here? Dave tries to convey a concept in that debt is bad and a FICO score is just a means of measuring how well you pay off your debt. Is a score of '0' really that much different than 'no score at all?' If you're at a football game and one of the teams doesn't score at all. The scoreboard will read 0. Same thing.

[AikenRooster2112]

Originally Posted by LegalCock

Kinda' late but I came across this blog while looking for something else.

http://badmoneyadvice.com/2009/05/te...got-wrong.html

Yeah, I've often thought that Dave should defer on the complicated investing questions. I mean, he defers ALL THE TIME on complicated tax questions, often bringing in CPAs to answer the questions on-air. He also does a good job of deflecting and flat out not answering macro-economic questions, especially ones rooting in current politics.

Anyone can pick and choose places to criticize Dave, but for the average person, who is deeply in debt, and probably doesn't understand much of that anyways, his advice is solid.

[LegalCock]

Yeah, seems like he should stick more to the motivational budgeting aspect, but he's no worse than suze orman.

[ShutTheSuccop]

Ramsey seems to cater to those in serious financial trouble...what I like is that he provides a way to get out of debt without necessarily walking away in bankruptcy. I also like that he wants people to be accountable for what they do and not have things they can't afford.

[cockinraleigh]

He gives solid advice on debt management and budgeting to the average Joe. I wouldn't necessarily look to him for investment advice/strategy though.

[FloydTheBarber]

Originally Posted by LegalCock

Yeah, seems like he should stick more to the motivational budgeting aspect, but he's no worse than suze orman.

Suzie Orman is horrible