Dave Ramsey

Tarheel Baptist

Tarheel Baptist

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I do NOT get his appeal.
I realize that he is hugely successful and popular. I am familiar with his program and principles and have applied some of them in my life. But I don’t understand his popularity at all.

Any fans of his here that can offer insight?
 
Tarheel Baptist said:
I do NOT get his appeal.
I realize that he is hugely successful and popular. I am familiar with his program and principles and have applied some of them in my life. But I don’t understand his popularity at all.

Any fans of his here that can offer insight?
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I think it's his charisma. He speaks authoritatively and cuts to the chase. I find his approach is not unlike that of Judge Judy. Like you, we have applied many of his principles to our finances and the results have been fruitful. The house and all current vehicles are paid off and we have about 4 months of income socked away. Of course, we live within our means.

We had extra savings and decided to get the bathroom redone and insulate the attic earlier this year. No sooner had we done all that, than our water line into the house sprung a leak... a BAD leak. The most cost effective option is moving the meter closer to the house and running new line a much shorter distance. Fortunately, we have a money market account to borrow from which I will pay back. Our financial advisor is helping with that.
 
I used to be "cash only/debit card only."
--When I needed to rent a car, I couldn't.
--I didn't get good rates on insurance due to my "poor credit" status.
--I couldn't get a car loan even with all of the money in my bank account. So, Ipaid cash for my vehicles, upfront.

So, I got a credit card and worked to improve my credit status for a year.

In 2023, I bought a van and was able to finance $14,000 on it because the van was over $60,000.
After that was paid off in a year, my daughter needed a co-signer... I co-signed for her and that vehicle was paid off in a year.

This week, I purchased a F250 Ford Truck. I have EXCELLENT credit, but was required to put $15,000 down because they said my "credit was thin."

If I had not been successful with Bitcoin and XRP, these necessary purchases would have been impossible.

I understand Ramsay's thinking that credit cards destroy people's lives. Not having good credit makes it very difficult or impossible to do certain things.

There needs to be a good balance so that you have excellent credit, low debt, and a good history of payments.
 
FSSL said:
I understand Ramsay's thinking that credit cards destroy people's lives. Not having good credit makes it very difficult or impossible to do certain things.
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The reason credit cards mess people up is because people, especially young people, don't have any discipline when it comes to using them. They make buying on impulse too easy. Also, young people don't think ahead. All they know is, "I can get what I want NOW." If they do think, they assume they are okay making minimum payments when they don't realize that the interest rates are eating them alive.

I experienced what interest rates can do when I began paying off student loans. Here I had a Business degree and I had to learn the hard way what interest rates do and student loan interest rates are a minimum of a third of what standard credit cards are. I got my rear end busy and made paying my loans off. It helped that stocks my mother had bought in my name were being liquidated. $11K out of 16... All loans were paid of within 18 months of graduation. So, I have no pity for people who cry about student loan debt... that's another story...

We hold a Home Depot card which usually comes with a generous grace period before interest kicks in. It's handy if we need to pick up some things for the house on short notice.

We also hold a credit card that earns airline miles. It packs an exorbitant intrest rate on all balances over 30 days. We don't use it unless we're ready to pay it off every month.
 
Another thing I've heard Dave Ramsey say that I absolutely disagree with... He says, (or used to) use cash instead of debit cards because when you use cash, you see the money leaving your pocket and that should keep you from impulse buying. For me, the opposite is true. Especially when I was younger, whenever I had cash, it would burn holes in my pocket. I'd impulse buy all the time. But with ATM cards, I'd first of all, need to find a terminal where I could run my card. And if I was buying something that was under $5, I'd feel silly that I'm paying with a debit card because I couldn't keep a few bucks in my pocket. Much of the time, I'd decline to make an impulse buy if I wasn't carrying cash.
 
We were maxed out on 6 credit card cards it took us three years to pay them off. I have credit card but never use it. I use my debit card for everything. I check my bank account daily. I do need to have cash if we have a hurricane no machines work. I have no debit but my car. I purchased 2023 Mitsubishi Outlander Sport I paid for half and I'm making payments to show my credit history. I will probably rent the rest of my life. I'm debating on ownership vs rent. I love to listen to him but I don't follow everything he says.
 
FSSL said:
I used to be "cash only/debit card only."
--When I needed to rent a car, I couldn't.
--I didn't get good rates on insurance due to my "poor credit" status.
--I couldn't get a car loan even with all of the money in my bank account. So, Ipaid cash for my vehicles, upfront.

So, I got a credit card and worked to improve my credit status for a year.

In 2023, I bought a van and was able to finance $14,000 on it because the van was over $60,000.
After that was paid off in a year, my daughter needed a co-signer... I co-signed for her and that vehicle was paid off in a year.

This week, I purchased a F250 Ford Truck. I have EXCELLENT credit, but was required to put $15,000 down because they said my "credit was thin."

If I had not been successful with Bitcoin and XRP, these necessary purchases would have been impossible.

I understand Ramsay's thinking that credit cards destroy people's lives. Not having good credit makes it very difficult or impossible to do certain things.

There needs to be a good balance so that you have excellent credit, low debt, and a good history of payments.
Click to expand...
I think you are correct. I am not a huge Ramsey follower, but it seems to me that he takes a very simplistic approach -- don't be in debt, pay cash for everything you can, have an emergency fund. That's not radical.

I think where he comes from on credit cards is that for MANY people they are financial heroin. They start spending money, can't stop and then have debt they can't dig out of for years!

But if you use your credit cards with discipline, they can be a huge benefit. I have three cards, with a combined limit of $45,000.00. I owe (combined) $200. My beacon score is 825.
 
Sherryh said:
We were maxed out on 6 credit card cards it took us three years to pay them off. I have credit card but never use it. I use my debit card for everything. I check my bank account daily. I do need to have cash if we have a hurricane no machines work. I have no debit but my car. I purchased 2023 Mitsubishi Outlander Sport I paid for half and I'm making payments to show my credit history. I will probably rent the rest of my life. I'm debating on ownership vs rent. I love to listen to him but I don't follow everything he says.
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Sherry, I believe you are single now, right?

If I were, I just might rent. I have a 3,600 sq foot home, probably worth $700,000. The house is 28 years old and frankly, it's a money pit. If I'm not spending $7,500 a year on maintenance, I'm falling behind. Not all of it was "have to" but I've spent $100,000 upgrading the house in the past four years. At this age, something always needs repair or upgrade. If my wife were to die before me, I really think I will sell, move to the gulf coast and try to get into a high rise. I won't need that much house or the head aches that come with it. At least in renting, your housing costs are capped.
 
Justice1976 said:
Sherry, I believe you are single now, right?

If I were, I just might rent. I have a 3,600 sq foot home, probably worth $700,000. The house is 28 years old and frankly, it's a money pit. If I'm not spending $7,500 a year on maintenance, I'm falling behind. Not all of it was "have to" but I've spent $100,000 upgrading the house in the past four years. At this age, something always needs repair or upgrade. If my wife were to die before me, I really think I will sell, move to the gulf coast and try to get into a high rise. I won't need that much house or the head aches that come with it. At least in renting, your housing costs are capped.
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I totally hear ya. We have a 1400sq ft house on a .6 acre lot. Fully half of the lot is unused but I still maintain it by keeping it mowed.

The place has kept me busy for the past 20+ years with mostly landscaping work but we've done our fair share of expensive stuff...
In 2016 and 17, wiring and plumbing. 2022, $10K into the roof. 2023, aesthetics. This year we remodeled the bathroom to the tune of $7K and insulated the attic for $1K. Upon returning from vacation a couple weeks ago, we found an unusually green patch and an astronomically high water bill. It seems the 50+ year old 300' galvanized line from our meter is toast. It became evident that it would be cheaper and easier to relocate the meter to a new water main that is much closer to the house. Meter relocation and 120 of poly pipe (plus trenching) is going to be another $7K+. Oh and did I mention we need to get our septic system pumped and inspected? Ah... The joys of home ownership. Who need a gym membership with all this maintenance?
 
Thank you for your wise advice its much appreciated. I'll continue to rent and save as much as possible. My lease here is up in March I have a 2/2 townhome I love my area and neighbors. I'm 10 minutes from work. I'm praying I get to renew my lease. I've never been late I'm always early.
 
Sherryh said:
We were maxed out on 6 credit card cards it took us three years to pay them off. I have credit card but never use it. I use my debit card for everything. I check my bank account daily. I do need to have cash if we have a hurricane no machines work. I have no debit but my car. I purchased 2023 Mitsubishi Outlander Sport I paid for half and I'm making payments to show my credit history. I will probably rent the rest of my life. I'm debating on ownership vs rent. I love to listen to him but I don't follow everything he says.
Click to expand...
In this current housing market, I agree with continuing to rent.
Not sure how old you are, but when I retired from the Pastorate we sold our house and decided to rent. At this stage of my life the cash was better, practically speaking, than the equity.
 
If nothing else, he's better than he deserves.
 
Tarheel Baptist said:
In this current housing market, I agree with continuing to rent.
Not sure how old you are, but when I retired from the Pastorate we sold our house and decided to rent. At this stage of my life the cash was better, practically speaking, than the equity.
Click to expand...
In our market it is hard to find an affordable rental. My mortgage is $1650. Nothing even close to that in rental options.
 
One of my first memories in adult Sunday School (as a young and carnal Christian) was our founding pastor using Ramsey's materials to teach on finance. I had never heard of him since I didn't run in Christian circles, but I didn't need the instruction because my father taught me a very simple principle, don't spend more than you have coming in. Credit is a tool just like anything else, it can be abused, or used properly. I currently have about $8,000 to spend on a new GM purchase if I choose because of my GM card credit earnings. I never pay any interest or fees? Because it's paid off every month. Like I said, a tool to be used to my advantage.
 
Tarheel Baptist said:
In this current housing market, I agree with continuing to rent.
Not sure how old you are, but when I retired from the Pastorate we sold our house and decided to rent. At this stage of my life the cash was better, practically speaking, than the equity.
Click to expand...
Tarheel, I'm 69 years old.
 
Thank you for your words of wisdom. I'm looking into always renting. It's working so far. I'm sorry I missed answering your question yes I'm single, widowed. I don't ever see me marrying again just saying
 
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