Anyone here do the Dave Ramsey thing?

[lovemachine]

You know, I didn't grow up in a typical baby boomer household either. My folks owned a small dairy farm, they worked like dogs, had very little to show for it, and taught us the value of a dollar. While many families were seeing great financial increase, taking on debt, utilizing credit (and risk)... my childhood home operated like we had just exited the depression. Financial ruin was one bad growing season away. We learned to prepare for hardship, because it wasn't IF, but WHEN it would come. My peers, many of them, grew up in much more affluent homes. Their expectations are different than mine.

Making a payment, doesn't mean that you can afford something. As soon as your income takes a hit, you learn that lesson. You become ill, cannot work? You realize what risk is. People operate today as if nothing bad will happen, or they like to pretend that it won't, otherwise they couldn't justify the new car. This is why I call bull**** when someone claims that a medical bill sent them into a tail spin and they cannot make a mortgage payment, while a $30k financed car sits in the driveway. An emergency fund isn't "nice to have"... it should come before any luxury, because without an emergency fund, EVERYTHING is an emergency.

It is irresponsible for any adult to spend a dime on anything not necessary, unless they have an emergency fund. You want to be a husband, a father? Well, then your families security comes before a new iPhone, car, rifle, handgun etc... big boy pants are made for big boys. No life insurance? Are you kidding me? Do you hate your wife and kids? I mean, do you really? Big boy pants.

I was was stupid for a good many years... I could be a millionaire already if I had taken my own advice when I was 20 years of age. Instead I operated like an idiot until I was 30. I turn 40 in a few weeks, and I have 7 more years before I'm a millionaire. I did it all wrong for a decade, and I still survived, there is always time. But seriously, we are a weak nation. We are spoiled little brats who have been suckered into building bigger buildings for banks. We don't fix things, we replace them. If something isn't broken, we upgrade it. Do we do it with cash, no, we can afford the payment.

There is so much vitriol in this country for the "big banks"... that's funny, really. The reason being, most of those *****ing, pay them interest every month. You don't like big mean banks? Stop funding them. Until then, shut up. I mean, really. Their buildings are bigger, and their furniture nicer than yours, because YOU bought it for them. It's funny. I don't mind big banks, personally.

Anyway, obviously I'm passionate about taking responsibility for where you are financially. Decisions made a decade ago, can and will hurt you in years to come, it is cumulative, you cannot escape it. Every mistake you made financially is compounded, daily... just like interest, or market returns. No one can claim that a bad financial decision isn't affecting them today, because it is, its math. The question is, when are you going to stop making decisions that you will regret a decade from now?

I chose to stop 10 years ago, and I'd never take the new cars I owned in my 20s, over what I have built since. I was stupid.

A few of your words got me. "Making a payment, doesn't mean that you can afford something" and "It is irresponsible for any adult to spend a dime on anything not necessary"

I've been looking at a couple of fairly used trucks for sale. And I could get them for around $200 a month. But I guess that doesn't mean I can AFFORD the truck....

 

[jd4320t]

Do you need a truck enough to have a payment?

Dave would say no to the truck payment. First post says you just started.....

 

[lovemachine]

Do you need a truck enough to have a payment?

Dave would say no to the truck payment. First post says you just started.....

Nah, just found out recently that it can be a little bit of a pain getting a baby seat in and out of my wrangler

 

[Tactically Fat]

Nah, just found out recently that it can be a little bit of a pain getting a baby seat in and out of my wrangler

You need a sensible USED mid-sized sedan. Like a 2-year old Altima with 30k miles for $16k. Sell the Wrangler and pay cash.

 

[jd4320t]

Nah, just found out recently that it can be a little bit of a pain getting a baby seat in and out of my wrangler

I understand.

Have you listened to Dave much? Watch any YouTube videos?

He'd say sell the Wrangler and pay cash for another vehicle.

 

[JettaKnight]

We're talking about wrangler jeans, right? Because as an INGO'er, I recommend you get out of those ASAP.

 

[Fizzerpilot]

Well... Dave never advocates debt, ESPECIALLY on a vehicle. A loan because "it's a pain" to get the baby seat in and out? I drive a $3000 SUV, four doors, hatch, plenty of room. My beloved wife drives a $7000 Odyssey van, which is like the Holy Grail of kid carriers.

There is always a "reason" to acquire debt. Americans can justify almost anything, regardless of how dire their financial state. I work with a good many individuals, who immigrated here from other countries, and that is one thing that they note. They have never seen people so comfortable, enamored, by debt.

I agree, if you sell the Jeep, since it's a pain, use those funds for a more suitable vehicle. I'd agree with the other response, I'd get a sedan, not a truck.

Also, to be clear, I said that it's irresponsible for any adult to spend money on unnecessary things, WITHOUT already having an emergency fund. I have not had an emergency in about 10 years, not because I'm lucky, but because I have an emergency fund. I have hiccups, but don't sweat it. Emergency funds are not "nice to have"... they are as essential as food and shelter. Life insurance (not purchased/provided through your employer) is another must have for a father and husband, if you earn a wage. Again, it's not "nice to have", it's a necessity.

 

[CampingJosh]

We're talking about wrangle jeans, right? Because as an INGO'er, I recommend you get out of those ASAP.

If this is how you normally try to talk people out of their pants, I'm not sure how you have children.

 

[JettaKnight]

If this is how you normally try to talk people out of their pants, I'm not sure how you have children.

Who says I do?

 

[CampingJosh]

Who says I do?

To be fair, as I typed that, I was trying to remember. I went for it anyway.

 

[eldirector]

Who says I do?

.
Normally talk to people, or have children?

Answer may be the same either way.

 

[lovemachine]

We're talking about wrangler jeans, right? Because as an INGO'er, I recommend you get out of those ASAP.

Gotta buy me dinner first.

 

[JettaKnight]

.
Normally talk to people, or have children?

Answer may be the same either way.

 

[87iroc]

Wife and I are doing the Ramsey thing. We just finished Financial Peace University at our church. It was great. I started down this path a year ago and my wife didn't get fully on board until recently(although she stopped accruing credit card debt a year ago thank God). We have lots of speed bumps in the last year with just our 1000 dollar emergency 'starter fund'...but overall, were able to overcome those hurdles with just budget tweaks for the month. We have been able to avoid touching the emergency fund in the last year and its been awesome. The frustration to me is that its hard to move forward when speedbumps come in to the budget so often.

Regardless, I am happy to be finally learning how to manage my income. I was not raised in a household that did anything other than spend as much as they had(I looked up to my dad...he did that. My mom never had any money so she held on to it tightly when she had it...my dad, when he could wrestle money or hide money from mom...spent it as quick as possible).

 

[Fizzerpilot]

Wife and I are doing the Ramsey thing. We just finished Financial Peace University at our church. It was great. I started down this path a year ago and my wife didn't get fully on board until recently(although she stopped accruing credit card debt a year ago thank God). We have lots of speed bumps in the last year with just our 1000 dollar emergency 'starter fund'...but overall, were able to overcome those hurdles with just budget tweaks for the month. We have been able to avoid touching the emergency fund in the last year and its been awesome. The frustration to me is that its hard to move forward when speedbumps come in to the budget so often.

Regardless, I am happy to be finally learning how to manage my income. I was not raised in a household that did anything other than spend as much as they had(I looked up to my dad...he did that. My mom never had any money so she held on to it tightly when she had it...my dad, when he could wrestle money or hide money from mom...spent it as quick as possible).

Good for you! I'm glad you have the ball rolling.

 

[Benp]

There are sound principles that can be followed without doing the whole Dave Ramsey plan, such as buying only when you have the money saved up, buying responsibly, not living beyond your means, and being generous.

 

[Fizzerpilot]

Dave Ramsey doesn't really teach anything magical. It is, as you said, just sound money management. It's hard to lose your home, or car, if you own it. And if you own it, it's also likely that you have money for other things, like emergencies... since you aren't writing checks out if your payroll. You keep what you kill.

 

[BE Mike]

There are sound principles that can be followed without doing the whole Dave Ramsey plan, such as buying only when you have the money saved up, buying responsibly, not living beyond your means, and being generous.

Handling money isn't easy for the younger generations that pretty much got whatever they wanted growing up. IMHO, these are the people who get into the most trouble. They want to live the lifestyle that they had when living at home, right after leaving the nest. They don't know what austerity is. FPU involves "cold water in the face" and sacrifice. Once onboard the reality train, these folks can really benefit.

 

[jd4320t]

Many people just don't know better. Parents are teaching their kids to use credit cards and finance things.

My mom set a very poor example for me and it took me a few years as a young adult to realize it. I'll never use a credit card again. I'll never finance a toy again.

I talk to my daughter all the time about these things. I want her to never have to deal with the tough times.

 

[Dirtebiker]

Good for you I'd. I've pushed my kids since they were in high school. My oldest is just now arranging to do her "debt free scream" live in Ramsey's show in September. She and her husband will have paid off around $135,000 in about four years!