Dave Ramsey, debt, credit cards, retirement, etc

[High Speed Industries]

I got a new job towards the end of last year. The company I work for is awesome. They offer many benefits and what not. One of the free programs they offered was the smart dollar program by Dave Ramsey. The program sounded somewhat interesting so I checked it out. It opened my eyes to what you can do to save money.

I didn't go all out like the program said but I did create a budget which was a massive help. I'm hoping that catching on to his program at a young age really helps me. I'm currently saving up for a house and I have a 401k going too. I wouldn't have done either without taking the program.

I know many people are stubborn and don't look at these programs. That's how I was at first. I'm very glad that I took the course. It has made life less stressful and easier.

 

[OCD Solutions]

This man can teach us all something!

 

[Quinc]

This man can teach us all something!

View attachment 316166

China eastern airlines might be different, but most places only credit you back the ticket costs.

 

[SuperJETT]

Step 5 - cash flowing it for our oldest currently.

The mortgage is a 15 year at 3% with only 7 years left so most of it is principal at this point already.

We're basically self-insured at this point with equity in the house and retirement money.

/back into the dark corners of the site

 

[Quinc]

CA keeps trying to raise our property taxes as well. Also sure we will be getting some kind of climate/fire tax sooner then later as well..

 

[SteveC]

Beware of Property Taxes.

This. You don't "own" property, you are merely the current "occupant". And those that despise private property ownership (clearly a sizable enough group to actually get communists into significant government roles) will simply continue increasing the discrimination that is value-based property tax.

 

[waxhead]

I have the house i live and 4 other rental properties. Im the man in the middle, if you put the taxes up i just move the rent to cover it, simples. It only hurts the Karens who are so busy crying poor but have a pack a day habit

 

[kevbo]

Texas is a great place to be in your peak earning years. It has become tougher for retirees with so many moving in and running up the price of property. Current and future generations will have to learn to be frugal and save like they did 100 years ago. Labors share of capitol has been in decline for the past 40 years with no bottom in sight. Most of the productivity gains have been captured at the top and have not "trickled" down like they told us it would..

 

[Quinc]

I have the house i live and 4 other rental properties. Im the man in the middle, if you put the taxes up i just move the rent to cover it, simples. It only hurts the Karens who are so busy crying poor but have a pack a day habit

That is when the gov passes rent control like they did here in CA..

 

[waxhead]

That is when the gov passes rent control like they did here in CA..

Aussie is not run by the democrats so its not going to happen here. But if it’s no good being a landlord I will sell the properties and then the government can house the people instead.

 

[Quinc]

Texas is a great place to be in your peak earning years. It has become tougher for retirees with so many moving in and running up the price of property.

Just hope that the idiot Californians moving to texas dont forget why they moved there and vote accordingly.

 

[Quinc]

Aussie is not run by the democrats.

So when you getting your guns back?!

 

[waxhead]

So when you getting your guns back?!

Ha ha, good call

 

[SuperJETT]

Beware of Property Taxes. The Liberals have tried twice this year (Chinese Virus and Hurricane Lora pretexts to declare Disaster Area and thus no-vote Tax Raise) to raise the Harris County (Houston) Property Taxes to 8%!

My humble average Houston home is artificially appraised at $200K by the County, and the House is paid off, but I'm still stuck with a confiscatory Property Tax.

A $16K Annual Property Tax will break me, no matter what Dave says...the Matrix wins.

I'm bugging out to Thailand where I can live well for only $300 a month. That's my Retirement Plan.

Thanks for the thread derail I guess?

 

[Big Kahuna]

How did Obamacare pull money out of your savings?

 

[SteveC]

Obamacare required you to have medical insurance relative to your income. Just happens I was unemployed the year I was forced to purchase it. The penalty was more than the $12K insurance cost. Not to mention the huge co-payments...

This, exactly.

It's 100% wealth redistribution (aka theft)! Property tax is a very similar beast. All Dave R. can do is guide you through the game that's at hand and help you to avoid bad choices within that game and its rules. He cannot, however, change the game or the rules. As such, the comment above is spot on that it's not a thread hijack, really. Once you have done all the steps financially, you're pretty much done with Dave's financial advice (though you'd be wise to also consider his spiritual advice), but you're still stuck in the game. "The matrix" is a perfect analogy: we're all just little revenue generators locked up in a giant simulation designed to keep us content while imprisoned. Many people are aware of it, but unlike the Matrix, there's no way to get out of the game entirely... at best you skirt around it or try to do good enough that you don't mind being stuck in the game. Without a severe reboot that returns our government to the minimal responsibility it SHOULD have, we're going to stay stuck, and bring children right into that same situation, and repeat ad infinitum.

 

[Big Kahuna]

Obamacare required you to have medical insurance relative to your income. Just happens I was unemployed the year I was forced to purchase it. The penalty was more than the $12K insurance cost. Not to mention the huge co-payments...

But if you were unemployed then shouldn't you have received "the insurance for all" for free??????????

 

[ride4life]

The new normal is say "f it and be broke" you'll get everything for free once your broke and you sit and watch tv all day.
The more kids you have the more free money you get, don't worry they will all get their free crome book too so they won't bother you.

 

[Storbeck]

Dave ramsey's advice is kind of ironic. It's good advice for people who are bad with money/discipline but often bad advice for people who are good with money/discipline.

For example the debt snowball. The reality is based on the math you are best off paying the highest interest debt first, not the smallest. A person who is disciplined and good with money would do that. But... Most people who are way in debt don't have a math problem, they have a discipline problem, and for them seeing the progress of actually paying something off keeps them motivated and on track, so paying off the small debts first makes sense.

Same thing with credit cards. If you pay it off it is not a bad thing, has many benefits. If you carry a balance it's evil.

And your mortgage. Mortgage rates are almost always lower than long term returns in the stock market, so by the numbers you're better off NOT paying your mortgage off early (as long as you have a good mortgage interest rate)

His investment advice similar story. Historically low expense ratio index funds are nearly impossible to beat long term, but they require discipline to stay in during down markets (or buy more), Dave pushes activity managed funds.

 

[SXIPro]

I was pleasantly surprised to see my old 401K that I haven't looked at in ages is up 32.74% this year. But, yeah, Obamacare F'd me by about $8K a year right out of my pocket, since I am 'healthy' physically and fiscally.