Dave Ramsey, debt, credit cards, retirement, etc

[Mile9c1]

Because he needs 8-10 times his yearly salary?

Last I knew he was single w/o kids, so he doesn't need it (especially with that free 50k policy from work).

 

[Snackem]

Last I knew he was single w/o kids, so he doesn't need it (especially with that free 50k policy from work).

I wouldstill want enough life insurance to cover any outstanding debts and hey if you buy it when you are younger and healthy it's really cheap and you can lock in great rates then.

 

[Mile9c1]

I wouldstill want enough life insurance to cover any outstanding debts.

Why? When you die your debts are forgiven (unless you have money in your estate to pay them off).

 

[Snackem]

Why? When you die your debts are forgiven (unless you have money in your estate to pay them off).

I say that if I borrow the money then I should pay it back. When you die your debts are not forgiven, they are written off. It is just a personal preference thing. I want to honor all my debts.

 

[Mile9c1]

I say that if I borrow the money then I should pay it back. When you die your debts are not forgiven, they are written off. It is just a personal preference thing. I want to honor all my debts.

It wouldn't be you paying off your debts, it'd be the insurance company paying off your debts. So you'd be taking from one company and giving to another... I don't really see that has honorable, but either way, I doubt Romack has more than 50K in debt so his work sponsored insurance would cover his debts for him :biggthumpup:

 

[yamaslut]

Nick, go out on your own then. If you do what I think you do, you could do stuff from across the country all from your house, and ride when you want.

I really want to start a small buisness... I just want it to be simple though... I have been kicking around ideas, but nothing has stuck yet...

 

[Gainera2582]

Since I got a credit card, I make sure to pay it on time regardless of the amount. However, sometimes I have gone over what I wanted to spend, but I cut back on things I do not need to spend my money on(bs items, including the sj).

Stock market, roth ira, and money market are the things i utilize for my personal savings and retirement.

The best thing you can honestly do is budget yourself. Stick to it firmly. Sure, you have to live life to the fullest, but you have to live tomorrow and not just for the moment!!!!!

 

[ski4]

not to sound all doom and gloom, BUT
there is just no possible way for me to save money.
If I was to sit home everyday, not ride, not drink, not go out to eat (maybe once a month) maybe I could save a little, but life is too short to save up for something you don't even know if you will live to see... I had a 401k w/ about 12k (2000) and it was growing good bla bla bla... and was laid off twice from the same company... My line of work has seen a huge decrease in earning potential... I thought I could be making 60-70k by now, cause I was heading that direction in the early 2000's... Since then the earning potential has dropped for all computer related jobs... at least in this area... I make less than half of that now.... pretty pathetic that I was making 20k more a year 5 years ago... I see no jobs for what I do that pay over 15$ per hour... it use to be 20$ per hour minumum...
whatever... life aint fair, then ya die
:Banane01:


I have pretty much accepted that I'm not "that guy" who will ever have money.


ok..... back on topic :headbang:

i know the feeling, same feeling here, the facts are not allthe same for me but week to week and being in debt are something that seems to follow me to the point where that is my life. however in a few yrs student loans will be gone and car payment too. maybe then i will be able to make soem headway????????who knows:dunno:

 

[ski4]

I know many people don't like reading, and I don't either.. but a friend suggested that I read "Rich Dad, Poor Dad" and i must say that is a truly inspirational book. If you read no other book, make it a point to read that one... it'll most likely change your mind on getting into investments (other than stock market, ira, cd's).

i did read that book and it really is good. still to invest i need free cash to do it and first i need to uncover from some debts then follow his advice. very good book though

 

[djkorn1]

Was doing great... was debt free except for student loans...Then I got laid off (cost me a fortune):dunno:, car died (bought a used Honda) and built a jet ski... damn that adds up quick.

I figure it will take me 2 years just to get back to where I was. It would help if I would stop blowing up motors.

 

[jetskiier]

Does anyone own a rental house? I don't own a house, and don't plan on buying one in the near future (rent/hydro is less than 15% of net income), maybe 5-7 years.
I am thinking about buying a student rental near the university I went to. I have been doing some reading/research and it seems like a good time (school is investing $250 million in sporting complex, as well as some major reconstruction), even though the interest rates are rising, and housing prices will likely fall in the (near?) future. I know there are some maintenance issues/headaches, and I live 2hrs away, but nothings easy right? Typical prices range from $250-350k, with incomes of anywhere from $2000-$3500/month. Just wondering if anyone owns a student rental or has any ideas good or bad.

 

[norcal ex]

arnt interest rates falling?

 

[SuperJETT]

Dave Ramsey talks about that quite often, he used to own some, and says it's a bad idea. Lots of repair issues due to students (more so than regular renters), high turnover, etc etc plus being 2 hours away is a bad idea too. You want to be close so you can keep an eye on it.

 

[jetskiier]

SuperJETT - There is a high turnover, but there is no problem finding tennants, I had a hard time finding a house when I was going to school, and in my last year, we had over 20 people looking at our house. As far as the maintenance issues go, I know there will be some, but there would be a damage deposit required, and the student housing standards are not as high as the rest of the rental market. I would start a limited company (I know there is a cost there), and have the company buy the house. I would be happy if I could make 1k/year take home from the house, but the real savings would come from the company, I could write off my personal vehicle and fuel, as well as some personal expenditures.

Norcal ex - Around here (Ontario, Canada), the interest rates have been rising steadily. I think its the same down there, I heard the FED has raised their lending rate for the last meetings?

 

[thrllskr]

Heard Dave Ramsey on XM last night for the first time. Pretty interesting.

My condo is located right on a ski mountain about 1hr from New York City. I plan to live there for about 3 years than rent it out, either as vacation or long-term leases (prefer the latter). Once I pay off some debts, I should be able to buy another place in the area and hold onto that still. But its not in a college town so I don't have to worry about issues with the college kids. But I would still be selective (even though you legally can't) about who I would rent it to. The owners I bought it from rented it out and it was a dump when I bought it. Renters just don't give a damn.

 

[Mile9c1]

But I would still be selective (even though you legally can't) about who I would rent it to.

You can be selective, you just can't discriminate because of race or ethnicity. Actually it would be very dumb to not be selective.

Dave would say no way in hell, unless you were paying cash for it. I think living 2 hours away is a bad idea. Been there... doing that now... not fun.

 

[32vickie]

Lets see. Just under 100K in 401k/ IRA, saving with company contribution 18% of my pay in the 401K my account. Wife has 45K and is putting in 3.5% in 403b, she also has a pension. 11 years left on the mortgage. This would give me two years to put away more money for the kids college. Son will start college two years after the house is paid off. Three vehicles last one paying off the loan 23 payment left. Should have no vehicle payment for at least two years. But I should have more life insurance for the short term, just don’t know what to get. Still paying off student loans 10 payments left.

 

[SuperJETT]

Sounds like you're trying to do everything at once. I bet if you knocked your 401k down to the minimum to get your match, you could knock out the student loan in 2 months and the car in less than a year, then bump it back up and really hammer stuff out.

Lets see. Just under 100K in 401k/ IRA, saving with company contribution 18% of my pay in the 401K my account. Wife has 45K and is putting in 3.5% in 403b, she also has a pension. 11 years left on the mortgage. This would give me two years to put away more money for the kids college. Son will start college two years after the house is paid off. Three vehicles last one paying off the loan 23 payment left. Should have no vehicle payment for at least two years. But I should have more life insurance for the short term, just don’t know what to get. Still paying off student loans 10 payments left.

 

[Snackem]

Just got Dave's book in the mail. The Total Money Makeover. I got it during the huge labor day sale $10 bought 2 copies one for us and one for a friend. I agree with SuperJETT focus on one thing at a time and throw all your muscle at it and you'll be amazed what you can do. The power of focus is incredible and once you get the ball rolling it's like a "debt snowball" it just keeps picking up steam. . .

 

[freestylegeek]

...I agree with SuperJETT focus on one thing at a time and throw all your muscle at it and you'll be amazed what you can do. The power of focus is incredible and once you get the ball rolling it's like a "debt snowball" it just keeps picking up steam. . .

Not to mention the power of tiny little victories.
There is something really inspiring about accomplishing each one of the baby steps.
Also, it's very helpful if you can find a friend who's doing the same thing.

SuperJETT and I started getting out of debt about the same time, and being able to discuss certain situations together has been great!