Well, part of is it $50K from her contributions/match. I'm hoping it will earn more like 15% too, so that will help.
Dave Ramsey, debt, credit cards, retirement, etc
- Thread starter SuperJETT
- Start date
Well, part of is it $50K from her contributions/match. I'm hoping it will earn more like 15% too, so that will help.
Just got our statement for September, and of course, $0.77 finance charge from that little balance and the fact that they apply credits toward the lowest interest rate balance FIRST.
Credit card companies are evil, this just shows their true intent, milking every penny even if it is just pennies.
Credit card companies are evil, this just shows their true intent, milking every penny even if it is just pennies.
interesting thread...
there is such a wide range of financial positions...
i took the live-at-home-challenge for 2 years after college and it sucked, but paid off.
now i'm 25, no payments other than house, and my net worth is about $100k at the moment (liquid savings/investments/equity)
i read up a little on dave ramsey and even went with a worshiper to a seminar and was a little turned off. it was geared farther towards "get out of debt by not doing..." rather than investment advice. "CUT UP YOUR CREDIT CARDS! CARRY CASH! SEE YOUR MONEY GOING OUT AND SPEND LESS!" not to sound arrogant, but i was expecting investment advice and it was more debt advice.
there is nothing inherently wrong with a credit card, dave irritated me with that. i buy what i'm going to buy, and buy only what i can afford. for everything that i do buy, i try to use the credit card whenever i can. i have fixed overhead like gas, utility bills, groceries, etc and there's no reason i shouldn't use a card to get 1-5% off these expenses. i don't mail a single check (saving about $24 a year!) throughout the month. i have a card that gets me cash rewards... so about every 3 months i get a $50 check.
i keep scheming to find a way to pay my mortgage with my CC! lol!
i haven't let the CC company get a PENNY off me yet!
there is such a wide range of financial positions...
i took the live-at-home-challenge for 2 years after college and it sucked, but paid off.
now i'm 25, no payments other than house, and my net worth is about $100k at the moment (liquid savings/investments/equity)
i read up a little on dave ramsey and even went with a worshiper to a seminar and was a little turned off. it was geared farther towards "get out of debt by not doing..." rather than investment advice. "CUT UP YOUR CREDIT CARDS! CARRY CASH! SEE YOUR MONEY GOING OUT AND SPEND LESS!" not to sound arrogant, but i was expecting investment advice and it was more debt advice.
there is nothing inherently wrong with a credit card, dave irritated me with that. i buy what i'm going to buy, and buy only what i can afford. for everything that i do buy, i try to use the credit card whenever i can. i have fixed overhead like gas, utility bills, groceries, etc and there's no reason i shouldn't use a card to get 1-5% off these expenses. i don't mail a single check (saving about $24 a year!) throughout the month. i have a card that gets me cash rewards... so about every 3 months i get a $50 check.
i keep scheming to find a way to pay my mortgage with my CC! lol!
i haven't let the CC company get a PENNY off me yet!
The Penguin
triple secret probation
- Location
- down by the river
cybermob - my mortgage is through Countrywide. They have a Countrywide Visa (or Mastercard, basically the same thing) -
anywho - they give 1% cash back for all purchases on the card, and double that to 2% if you apply it to your mortgage principle.
I currently use AMEX for almost all purchases (for the membership rewards points) and MC when only when a merchant does not take AMEX. I'm considering switching to the CW Visa due to the amount of chrages I make on a monthly basis.
anywho - they give 1% cash back for all purchases on the card, and double that to 2% if you apply it to your mortgage principle.
I currently use AMEX for almost all purchases (for the membership rewards points) and MC when only when a merchant does not take AMEX. I'm considering switching to the CW Visa due to the amount of chrages I make on a monthly basis.
Good for you, but based on the numbers, you are the exception. MOST people mess up with credit cards, and even some people get screwed because the payments get delayed, or incorrectly credited, or you get hurt skiing and end up in the hospital out of town, etc.
A guy called Dave last week and had a 24 months same as cash, had it setup with his bank for online payments to be done in 24 months, but something happened along the way and he didn't pay attention and got slammed with $1200 worth of retroactive interest. He was only $37 off. It happens, all it takes is a small mistake somewhere and it wipes out that 1-5% you are saving. Is 1-5% really worth the time/effort? Not normally.
Also, his investment advice is fairly simple actually, once you get to that point, matching 401k first, then Roth IRA, then non-matching 401k to get up to 15%, and growth type mutual funds with long track records. He doesn't like individual stocks or day-trading at all.
A guy called Dave last week and had a 24 months same as cash, had it setup with his bank for online payments to be done in 24 months, but something happened along the way and he didn't pay attention and got slammed with $1200 worth of retroactive interest. He was only $37 off. It happens, all it takes is a small mistake somewhere and it wipes out that 1-5% you are saving. Is 1-5% really worth the time/effort? Not normally.
Also, his investment advice is fairly simple actually, once you get to that point, matching 401k first, then Roth IRA, then non-matching 401k to get up to 15%, and growth type mutual funds with long track records. He doesn't like individual stocks or day-trading at all.
as far as the credit card goes... that guy sounded like had his head on straight but violated my only rule with the CC... DON'T EVER CARRY A BALANCE! EVER! if you don't pay that sucker off ON TIME EVERY MONTH you are screwed. my credit card automatically pays the statement balance off 5 days before the due date. i still check to make sure.
as far as his investment advice goes... thats pretty much my strategy as well. i worked with my company's financial advisor to setup my investments and right now its a 6% 401k match + 4% unmatched (10% total + matched 6%), another 5% into roth, and what i have leftover direct deposits into my billpay/emergency acct (i carry about 5k in my checking... enough to cover my annual medical deductible + out of pocket max... my car deductable... 2 months housing expenses). when my checking gets full it gets purged into a money market (bling fund), savings account, my day trade account, and mortgage principal.
i also pay 1/4 extra every month on my mortgage. it seems like the right thing to do... basically a 6% guaranteed return (based on mortgage APR).
i've inherited my parents practices too though... in fact they put my sister's entire 4 yr, 16k/yr college tuition on their hotel rewards card and reaped 12 nights each year at the hilton (which they go to EVERY year anyway... a roughly $1500/yr value based on previous years). paid it off with her grandma-funded college each semester.
the problem is credit cards offer too much short-term pain medication. what would normally cause a budget crunch THIS month, causes a SEVERE crunch in a few months. and i would agree... i'm probably not the majority.
as far as his investment advice goes... thats pretty much my strategy as well. i worked with my company's financial advisor to setup my investments and right now its a 6% 401k match + 4% unmatched (10% total + matched 6%), another 5% into roth, and what i have leftover direct deposits into my billpay/emergency acct (i carry about 5k in my checking... enough to cover my annual medical deductible + out of pocket max... my car deductable... 2 months housing expenses). when my checking gets full it gets purged into a money market (bling fund), savings account, my day trade account, and mortgage principal.
i also pay 1/4 extra every month on my mortgage. it seems like the right thing to do... basically a 6% guaranteed return (based on mortgage APR).
i've inherited my parents practices too though... in fact they put my sister's entire 4 yr, 16k/yr college tuition on their hotel rewards card and reaped 12 nights each year at the hilton (which they go to EVERY year anyway... a roughly $1500/yr value based on previous years). paid it off with her grandma-funded college each semester.
the problem is credit cards offer too much short-term pain medication. what would normally cause a budget crunch THIS month, causes a SEVERE crunch in a few months. and i would agree... i'm probably not the majority.
Mile9c1
X-H2O.com
- Location
- Grand Rapids, MI
He does both get out of debt, and investment seminars. Sounds like you needed the other one.
There is something inherently wrong with a credit card, the borrower is slave to the lender.
Gainera2582
Power and Agility
- Location
- Lake Saint Clair, Michigan
Use credit cards for the %'s and rewards. Only charge what you would pay in cash and keep track of what you charge.
For example, you guys that use tons of gas should get a charge card that gives you at least 3% back or more(citi drivers card) and just swipe the card every time you need gas. Just set a budget like anything else and pay it off every month and you will end up saving in the long run.
Credit cards aren't as evil as they make it out to be, it's the people who can't seem to make payments on time because a) they don't have the money or b) they are disorganized .
For example, you guys that use tons of gas should get a charge card that gives you at least 3% back or more(citi drivers card) and just swipe the card every time you need gas. Just set a budget like anything else and pay it off every month and you will end up saving in the long run.
Credit cards aren't as evil as they make it out to be, it's the people who can't seem to make payments on time because a) they don't have the money or b) they are disorganized .
Mike, Darin, all the others, you all are nuts IMO.
Instead of "fighting" the debt, try to use it to your advantage.
A credit card is giving you the cash you don't have at the moment.
I used a credit card to fund my small business until "the competition" killed it (money laundry, if anyone wants details, PM me).
The "evil lender" is willing to pay 90% of your business expenses right now for a small fee payed over the years, you should be grateful.
They give you MONEY that can make A LOT MORE MONEY.
I'll try to make it as simple as it gets: you've saved $40K. The bank gives you another $360K. You buy a $400K Subway franchise that pays the loan and brings you anywhere from $5K to $10K every month after taxes and you DON'T EVEN HAVE TO BE THERE because those things run by themselves.
One of the happiest guys I knew owned a few Dunkin Donuts. He did not remember if he had 4 or 5 of them, he was too busy traveling, taking care of his family, he was in his mid-30s, had a beautiful wife and two kids, drove two Carreras and two Grand Cherokees depending on the day and the road conditions. Just a simple guy who got it right. BTW, he never ate donuts.
Maybe not disorganized... maybe something happened and you've lost your job or got temporarily disabled and don't have that chunk of cash right now. What would you do in case of emergency, knock on your neighbors' (who you don't even know) door asking for cash or use the Visa?
October/November/December, somewhere in there.
Our original goal was by the end of the year, then we though possibly the end of last year, then were hoping by August (last month), and it's coming back around to by the end of the year.
You had to remind me, did not you? LOL
BUT! I am not planning to spend the rest of my life working my ass off writing software, commuting a 100mi every day and getting my brain fried for the paycheck.
romack991
homebrewed
- Location
- Warsaw, IN
just remember you are very fortunite to have people pay a lot of expenses along the way. a lot of people do not have that option.
- Location
- Cleveland Ohio
I got screwed by being laid off for a year of teaching.. :shooter3: Had to use CCs to stay alive. I couldn't even get another job because I was going to Grad School and they were paying for my Masters Degree. I have about 10G's left to kill from that and about 8G's left on my car. It is going down pretty quickly... but I am making sure that I am still living my life. You are only young once (I'm not that young anymore). That, to me is more valuable than money.
However, I see the need for all this stuff. Congratulations Darin. Enjoy your financial freedom... :notworthy:
However, I see the need for all this stuff. Congratulations Darin. Enjoy your financial freedom... :notworthy:
You know, that whole 'you're only young once' thing gets me going...
Some people say they want to die with every bit of debt possible so they know they've lived it up. Over the course of time though, with someone paying interest on loans and someone else paying cash, down the road the person saving up and paying cash will be able to buy MORE toys.
You just gotta start somewhere. I wish I had started 15 years ago...
- Location
- Cleveland Ohio
I am killing my debt rather quickly too.....I wish I would've known in college what I know now. I would be in much better shape. :smokin: I am just trying to find the happy medium.
When your 80, nobody looks back and says "I wish I would've worked more".
When your 80, nobody looks back and says "I wish I would've worked more".
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- Location
- dunedin, florida
debt free is/ was so close... :no: For those that are geting married make sure you are using your head.. think about it and do the right thing. I am not saying do not get married.. just make sure it's the right one..:rant: divorce will finish you ?? I/we own my auto repair shop 10+ yrs.. Only $5,500 left on house morgage, Three retirement programs..doing well... high-life/ health insurance policys. Cars paid off. Kids collage funds were going well. Your life partner should not be overlooked when setting up retirement.. :spank: i'm 38 years old and i'm starting over with half..:spank: i think that is like 18%??? .:spank: yea half .. don't think it's 50%.. :twak:O'yea now i have credit card debt, never had befor. But i like my lawyer so much..:swordfight: O yea like $20,000 just in 2 days of court can't wait... :loser:Invest in stand ups i here they are going to stop making them..:loser: brap..
HAPPIER NOW, HELL YES... JUST BROKE...:kabong:
HAPPIER NOW, HELL YES... JUST BROKE...:kabong:
32vickie
X-
- Location
- Pipersville, PA
I have the better half with me working together she has two CC one Bon Ton and one major.. Just got back a from Florida and Disney with the kids. Spent a week down there at the parks. I have Two CC if all works out I will have them paid off before the end of the year. Paying 500 between the two a month. Emergency fund at 500 and adding 125 per month, just had inspection on the truck and needed tires and other things 600+ for that. Emergency fund came in handy. 600+ in holiday account getting 10 automatic per week plus adding more when needed. 11 months on wife’s suv and all others are paid for . I would like to be CC free by summer of next year and have the suv paid off