Any of you use his baby steps guide? How effecting was it for you? I’m about to take the dive.
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Dave Ramsey
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Take the dive. I've finished all of them and living debt free five years. Budget, mind set and stay committed to it.
When your friends are paying done their 60k trucks, you will be on a elk hunt out west or in Hawaii.
When your friends are paying done their 60k trucks, you will be on a elk hunt out west or in Hawaii.
I say do it with a single of caveat..
1. If you have a 401k or similar that matches, keep contributing to the match. The match is almost always a higher rate of return (like 100%) than the interest on your debt.
1. If you have a 401k or similar that matches, keep contributing to the match. The match is almost always a higher rate of return (like 100%) than the interest on your debt.
Lots of Dave believers on this site. And all of the stories I've read were positive.
Sacrifice while you are young (saving/investing) and you WILL reap the rewards when you are older.
The key is to live below your means so you can save every month.
And Hayata's extra advice is to maintain a positive attitude at work and do your best. Get promotions/change jobs to increase that paycheck so you can live better/attain the goals you want.
Sacrifice while you are young (saving/investing) and you WILL reap the rewards when you are older.
The key is to live below your means so you can save every month.
And Hayata's extra advice is to maintain a positive attitude at work and do your best. Get promotions/change jobs to increase that paycheck so you can live better/attain the goals you want.
It's a good plan PB!
I'm a big fan of his savings and investment strategies. I believe in living debt free too. I am slightly opposed to his staunch anti credit rhetoric though. Realistically you need to have some credit, because let's face it, everything is judged on your credit score now. You can't get a mortgage if you have no credit history. Your insurance premiums are based off not just driving record, but credit score, because poor credit is seen as a risk. Even some jobs will obtain a credit report if you work in banking or finance.
Believe it or not, you can have credit cards and not live in debt. In fact, you can use credit cards to make money for you. Many lucrative rewards cards exist and as long as you pay off your balance every month you won't pay a cent in interest. But you can earn 5-6% cashback on some cards. That's free money if you don't carry a balance. Also, if you have excellent credit you qualify for better interest rates on your mortgage, or even a vehicle. I'm not advocating going $70k in debt for a new car, but if you can qualify for 0% interest financing on a vehicle, why not take the banks money?
Believe it or not, you can have credit cards and not live in debt. In fact, you can use credit cards to make money for you. Many lucrative rewards cards exist and as long as you pay off your balance every month you won't pay a cent in interest. But you can earn 5-6% cashback on some cards. That's free money if you don't carry a balance. Also, if you have excellent credit you qualify for better interest rates on your mortgage, or even a vehicle. I'm not advocating going $70k in debt for a new car, but if you can qualify for 0% interest financing on a vehicle, why not take the banks money?
You can get where you want to be without borrowing money. You can not do it immediately, it takes time and hard work
Listen to the news and you think the only way to buy a car or a house is by borrowing money. WRONG!
Lots of people can and do buy what they need with cash, but that cuts out a lot of payments to the middleman economy.
Listen to the news and you think the only way to buy a car or a house is by borrowing money. WRONG!
Lots of people can and do buy what they need with cash, but that cuts out a lot of payments to the middleman economy.
Davish Respsones:
Mortgage without credit can be achieved through manual underwriting.
No opinion on the insurance premium vs. credit score, I've never heard of such but could see it.
The entire premise of Dave Ramsey is to get a way from payments and pay cash for everything, when you take a loan, whether 0% interest or not, you're still making payments. You would still be buying a depreciating asset, that you're making payments on whether it's interest free or not.
I'm sorry, but that may have worked when our parents and grandparents were young. Back then yes you could literally save and buy a house cash in your 20s or 30s because houses were affordable. People in their 20's now making $30-40k a year aren't buying a house cash. A decent house in a decent neighborhood with decent schools for your kids will run you $120k+ in Macon. Probably north of $150k in the outskirts of Atlanta.
In the time you'd have to take to save up that kind of cash, you'd be blowing your money on rent that you'll never get back. If I am already having to pay $700-800/month rent on a two bedroom apartment, why not turn that rent money in to house payments that you'll actually have equity in?
So are you advocating that people just wait until they're older to buy their first house cash? That would kill the housing market and the economy. I think a house is the first and only major financial purchase you should borrow for. Cars sure I'm all for advocating buying used and paying cash. But not a house. My interested rate on my house I bought 7 years ago is 3.25%. I have 50k in equity in it. You aren't getting that paying rent or living at home with the parents.
I absolutely agree with buying a house vs. renting if you will live there several years to negate closing costs, and hopefully you don't have to sink a bunch of money it.
People in their 20's have MANY options to make more than $30k-$40k per year. Whether it be a 2 or 4 year college degree (you can go to college debt free), or a trade. I have several buddies Mid 20's in trades making $50k-$100k depending on where they are at with their respective program. That includes electricians, mechanics, airline mechanics, welders, etc.
