Dave Ramsey Baby Steps followers here?

[cantdrv55]

I found Dave Ramsey after I discovered FIRE (financial independence retire early) movement but his Baby Steps program helped me accomplish my goals. I don’t agree with every one of the steps nor do I agree with his opinion about credit but the vast majority of his advice are sound. Common sense for the most part, but you’d be surprised how many people who call into his show are clueless. I’m cheap because as Dave says, “Live like no one else so that later you can live and give like no one else”.

[MBAtarga]

Quite a few years ago the wife and I went through the book/program while members of a church that sponsored the class. We didn't/don't follow him exactly but did learn a few things.

[varmint]

i did the ramen and tuna lifestyle for years before i'd ever heard of dave ramsey.

it's legitimate advice. grim way to live but it works.

[Seahawk]

I like Dave and many other financial advisers...I take a bit from each and see if I can make it work.

I loaded Andrew Tobias' "Managing Your Money" on my first computer in the late 80's.

He, like many others, had a simple, cogent structure for managing money that made complete sense to me. I was already on the path but it helped to get affirmation.

Financial "rules" haven't really changed since the Salt Road.

Doing it, following the cuidance, is the hard part.

[LWJ]

I paid attention to DR years prior. Decided I knew more than he did. Did my own thing. I probably do a bunch that is the same stuff. BUT, I recollect that there were a couple items he recommended that I completely disagree with. Not sure exactly what that is. But, I know that several of his ideas are very counter to mine. (and, my ideas work well for me)

[varmint]

Originally Posted by LWJ

I paid attention to DR years prior. Decided I knew more than he did. Did my own thing. I probably do a bunch that is the same stuff. BUT, I recollect that there were a couple items he recommended that I completely disagree with. Not sure exactly what that is. But, I know that several of his ideas are very counter to mine. (and, my ideas work well for me)

credit card companies are evil. but it's almost impossible to live/travel/function without one. his idea that you can just cut them up and pay cash for everything is unrealistic.

[pwd72s]

Originally Posted by varmint

credit card companies are evil. but it's almost impossible to live/travel/function without one. his idea that you can just cut them up and pay cash for everything is unrealistic.

Yep...but you need to treat them as the cash they are. It really is that simple, interest paid is cash thrown away. If you pay no interest while others pay interest to you, financial happiness.

Never did read any of Dave Ramsey's books...

[bmcuscgr94]

Originally Posted by MBAtarga

Quite a few years ago the wife and I went through the book/program while members of a church that sponsored the class. We didn't/don't follow him exactly but did learn a few things.

We did the same. Have an emergency account, pay down highest interest credit cards first and a few other things

[Seahawk]

Originally Posted by varmint

credit card companies are evil. but it's almost impossible to live/travel/function without one. his idea that you can just cut them up and pay cash for everything is unrealistic.

I get that, but as PWD wrote, paying interest on money for anything other than an extremely large purchase is just financially crazy.

I carry two gas station credit cards, one credit card that I have a $500 limit on, an American Express card I could buy a planet with (and only use for travel on my companies dime) and debit card.

I also carry a thousand dollars in cash in my backpack when I travel.

[Tobra]

Cash is king, still.

Father in law usually has at least a few grand on him. He looks more like a guy driving a 30 year old work truck than a guy with that sort of roll in his pocket. He says, "You never know when you are going to come across great deal."

I like Dave Ramsey. It seems like I am always already doing what he advises though.

[aschen]

His advice is for people already in trouble or whom are financially illiterate/irresponsible

I am debt adverse by nature and agree with him philosophically on many things, but his advice is definately not appropriate for those who want to maximize building of wealth or invest with any sort of sophistication at all.


I bought a utilitarian house with minimal debt, that I subsequently paid off. Dave would be proud of me. However, I would currently be much more wealthy if I would have stretched my budget to a more expensive house since both scenarios would have appreciated by 80% in the last 3 years.

Also dave makes his money selling books, classes, and taking a cut off his expensive financial planner "partners".


These days we have access to much more rich information and I know everyone in this forum is mostly above his lowest common denominator approach. His advice is great if you dont want to be poor but too simple if you want to be wealthy

[KFC911]

LOL .... I can't afford to be wealthy !

I've never read or followed any these gurus, nor the Boglehead stuff, etc. but like most here, I am pretty fiscally conservative with everything that I don't invest in "hookers and blow". I probably follow half of what they say, and do the exact opposite on the other half ... a walking contradiction I am .... but it works for me.

[Crowbob]

I grew up on tuna noodle casserole and potatoe pancakes.

It was the best financial education possible. Mom and pop scraped by on cash only lifestyle. Left us kids with a pretty good chunk of change.

There are two things and only two things one must do to get rich. 1) Earn more 2) Spend less.

That’s it.

[LWJ]

Aschen nailed it. Makes sense. He is poverty avoidance.

My strategy shoots a little higher.

[varmint]

Originally Posted by Seahawk

I get that, but as PWD wrote, paying interest on money for anything other than an extremely large purchase is just financially crazy.

I carry two gas station credit cards, one credit card that I have a $500 limit on, an American Express card I could buy a planet with (and only use for travel on my companies dime) and debit card.

I also carry a thousand dollars in cash in my backpack when I travel.

Thought that all went without saying. I have two cards, one is a low limit sacrificial online thing and the other is for traveling. Both are paid off immediately.
Back in my twenties Amex gave me a card with a 30k limit. I think they were hoping I’d go on a cocaine and whore weekend in Vegas and be their slave for life.

[944 S2]

Big fan. Learned a lot about finance and life advice.

[asphaltgambler]

Originally Posted by varmint

credit card companies are evil. but it's almost impossible to live/travel/function without one. his idea that you can just cut them up and pay cash for everything is unrealistic.

^^^^'zactly..........I don't agree with DR on this and credit scoring W/O obtaining credit and payment history. His theory is a high credit score costs the user @$100k in fees and interest to get to high 700's. Everything in today's world is based to some degree on your credit worthiness. Even employment and trade related licenses.

[KFC911]

I've only checked my credit score once ..... it was 825, and I've done nothing but always pay my bills on time, had a primary mortgage 30 years ago, used a debit card, and had a HELOC for RE investment stuff (since expired) that carried a 0 balance 99% of the time. No other types of debt .... nada.

[CurtEgerer]

His show is great entertainment.

Caller: we've got $50,000 in credit card debt, a $275,000 mortgage on a $200,000 house and $429,000 in student loan debt. What should we do?

Dave: $429,000 in student loan debt? Should I assume you're both employed as brain surgeons?

Caller: I have a Phd in Gender Studies and work as a barista at Starbucks. My husband has a Doctorate in Environmental Justice and is currently delivering for DoorDash.

[David Inc.]

I went to one of those associated classes with my ex-wife way back when I was just starting out. We quickly realized it wasn't for us considering how basic the advice was. He has some good advice on how to recover from falling into debt, but if you're not getting into debt in the first place it's whatever.

What I remember, though, is one of the other couples in our group (both unemployed, $10,000 in credit card debt), saying that they weren't going to make the next session because they were going on vacation.

Like I said, not for us.