Dave Ramsey

[gillije]

DAVE RAMSEY IS THE MAN!!! Even thou I still use credit cards. I use the CC for the rewards/sky miles, but I pay it in full every month. Trying to earn enough sky miles for a trip to Europe.

[muadib]

I am a huge Dave Ramsey fan. Using his principals i got my finical life in order.

[67alecto]

Debit cards have purchase protection, too.

Great example of the potential problems when using debit cards vs credit cards since the debit card hits your bank account.

http://consumerist.com/2012/08/southwest-ticket-debacle-illustrates-problems-with-using-debit-cards-for-purchases.html

[Porkins77]

I consider Dave my financial guru. I was just working on my debt snowball spreadsheet earlier today (uber-nerdy). My wife and I are on track to pay of our house 20 years early. Not bad for common sense solutions.

[Hammlin]

I was cursing and thanking him while filling my envelopes today

[Kyla]

I need to get back on track with the envelopes. That was working super well, it's just a hassle.

Also need to have another financial summit with my dad (my accountability partner). The first one took, like...6 hours.

I took FPU at church a few months ago. At times it got preachy, but never so much that I felt awkward recommending it to my pagan friend and her husband. I just said, "obviously you're not going to be donating to a church, but you can give to the other charities I know you already like."

I had baby step 1 finished right away, since I had enough savings built up to do it. Managed to pay off a couple credit cards and start hitting the balance of some furniture I bought last year. It was one of those 4-year no-interest deals, and my dad and I were still smart enough to do the math and figure out what I could afford to pay and have it done in 4 years...then I got a different job with more money and I'm using my snowball to pay it off in half the time.

I also have some student loans, but they were under $10k and by the time my grace period ends next month I'll have already paid off $1150 to keep my minimum payment down and never have to deal with a lot of interest. (I just wish I'd figured out how to make payments during the grace period earlier...)

And I tell you what, Ramsey's not lying when he says that having an emergency fund suddenly makes emergencies...not happen. One of my cats got very sick, but having $1600 in an emergency fund let me focus on getting him better and not having to worry about having to put him down so I could afford my mortgage payment.

I'm also liking the feeling of being able to travel debt-free. If I want to go somewhere, I save up for it. It doesn't allow me to be quite as spontaneous as I used to be, but on the other hand...I'm going to Disney World in 2 weeks and I'm going to be able to enjoy myself knowing I already paid the bill and won't have to worry about the credit card statement when I get home.

So yeah, after taking FPU, I've paid off close to $1000 in debt, dealt with an emergency without blinking, paid for a $2000 vacation by writing a check, and saved myself $700 in interest payments on my student loans.

[Hammlin]

And I tell you what, Ramsey's not lying when he says that having an emergency fund suddenly makes emergencies...not happen. One of my cats got very sick, but having $1600 in an emergency fund let me focus on getting him better and not having to worry about having to put him down so I could afford my mortgage payment.

Same here. My garage door fell and I just fixed it. No worries. Love it.

[Briguy]

I went to a FPU course with my parents and sister last year. My dad hasn't been working since last fall due a head injury at work and has been getting workman's comp, so no where near what he used to make, and my mom hasn't been able to work since since before her heart surgery 2005. My sister adopted 3 kids and bought a house. So it was very good for all of them. I on the other hand said I would do it, and then got distracted with money in my pocket.hav

Since actually starting it again a few months ago I have paid off $1500 in debt, kept myself from getting sued by a collections company again and with a payment arrangement set up for some school loans will have paid over $8000 off on stuff by next fall. The biggest one is set up for just under $500 a month for 11 more months and was originally over $11000.

So I am definitely a fan a fan of Dave Ramsey. And by next year I should be able to actually manage it by myself and not wonder where the $200 I took out of the bank went.

[drayz]

I am just starting baby step #1 myself. Any advice going into to this?

[Kirkor]

#1 be patient, #2 keep focused on the big picture and remember why you're doing this

[Elastigirl]

#1 be patient, #2 keep focused on the big picture and remember why you're doing this

I like to listen to his show on podcast. Then when I'm feeling whiny I hear how other people did it and it motivates me.

[Kyla]

Be patient. Look around for things you really don't need. (I sold a bunch of college textbooks!) Accept that it probably isn't going to happen in a few days or even a few weeks.

Me, I've been cursing Dave under my breath for a few weeks for making life less fun - apparently, we don't get a Christmas bonus here, but more of a "you did your job well, here's what you earned above your salary." I already know that it's not going to be extra spending money...it's going to pay off a bill I've got.

My income tax return doesn't get to go into my travel fund. It goes to pay off the rest of that furniture and probably a chunk of student loan, too.

I just have to remind myself...by paying off those bills and paying down those debts, I get to start putting extra money in the travel fund *sooner.* I haven't sat down and done the actual math, but common sense tells me that if I'm not paying $100 per month to my college anymore, I'm not paying $40 per month for the table and chairs anymore, and I pay my smallest student loan down to almost nothing and get my payment reduced by $20/$30....well, that's a whole bunch of extra money going into the travel fund every month instead of all at once.

[Kristen]

An anecdote for debit card haters: I've had fraud issues once with a debit and once with a credit card. They were handled the same way--a suspicious charge is made, the bank freezes the account and calls to verify that it was actually you. You say no, it wasn't, and they send you a new card and the fraud transaction is declined. In the case of the debit card, a few small charges cleared and then a big one raised the flag. I signed paperwork and got all my money back the same day, totaled something like $20. The point is that either way, you can't use your card for a couple days. As long as you run it as a credit card (don't use PIN) the security and benefits are the same. In some cases I do use a PIN, especially when it's a trusted local business--it costs them less money to process PIN transactions than credit.

[drayz]

i have been checking out his podcast and tracking my spending this month. January is when I start with my envelopes and BS 1. I am looking at things to trim this month. I did make a decision to keep my crossfit membership. The benefits I get from that are community, physical fitness, and mental wellness but the rest of my creature comforts are up for elimination. i bought crayons and envelopes today. I plan on making the sweetest envelopes ever. any idea where i can get star wars stickers?

[67alecto]

In the case of the debit card, a few small charges cleared and then a big one raised the flag. I signed paperwork and got all my money back the same day, totaled something like $20. The point is that either way, you can't use your card for a couple days. As long as you run it as a credit card (don't use PIN) the security and benefits are the same.

The reason I like credit cards over debit besides the rewards is that if this fraud occurs I could end up bouncing checks that were outstanding in the couple of days (best case scenario) that it takes for them to sort it out.

Using a debit card got me out of debt when I was younger, and now credit cards get me a ridiculous amount of rewards.

[Elastigirl]

i have been checking out his podcast and tracking my spending this month. January is when I start with my envelopes and BS 1. I am looking at things to trim this month. I did make a decision to keep my crossfit membership. The benefits I get from that are community, physical fitness, and mental wellness but the rest of my creature comforts are up for elimination. i bought crayons and envelopes today. I plan on making the sweetest envelopes ever. any idea where i can get star wars stickers?

This is why I love this site! Why have I nevr thought of decorating my envelopes with star wars stickers. Or maybe I'll do the Hobbit stickers, since that just came out they should be easy to find.

[Hrothgar]

We've been using his system for some time now, have paid off credit cards and car loans, and continued to pay debt when income was unpredictable. Only keep 1 credit card for emergencies, and our vacation last summer was paid off at the time--we didn't have to keep paying for it months afterward.

 

The principles in the system don't really allow for wiggle room simply for the people who can't cheat a little without cheating a lot, which is all of us in some area. Plus, that kind of focus really drives you to get things done so you can enjoy a debt-free life as soon as possible.

[Ba'sini'on]

My friend would listen to his radio show all the time, now I'm hooked!

 

Now if only I could get my parents to listen to it to

[Vicarious]

Yes!  I was a member of their forums until a few months ago.  I'm not religious either but his program is awesome and it works.  Currently I'm debt free and saving up to hopefully start college this fall (waitlisted for my program).

[direrael]

Just picked up the TMM book, and I really like it so far. Even though I'm still on step #1, I'm excited to get started on the debt worksheet.

 

And I can completely understand his views on credit cards, but I still keep one around for the airline mile churning, and pay it off every month,

[smurray]

Just picked up the TMM book, and I really like it so far. Even though I'm still on step #1, I'm excited to get started on the debt worksheet.

 

And I can completely understand his views on credit cards, but I still keep one around for the airline mile churning, and pay it off every month,

Great to hear.  I have been listening to Dave for almost the whole time he has been on the air.  I was living near Nashville when he started the show.  He built and lost his fortune during the 80's when your status was determined by how many credit cards you could have.  It was truly a time of excess.  I have a little debt left to pay off and should just bite the bullet and get it done. Besides that, the emergency fund and not carrying a credit card balance has really helped us out.

[Nivek]

Dave needs a bump on these forums.  To summarize:

 

*Create a budget that spends less each month than you make (I know, shocking, right!). Whiny person: "I don't make enough money at my job to pay for my food, and apartment and clothes for the kids, and my cell phone, and commemorative QVC Patrick Swayze plate collection.  I need credit cards to pay for the things that I ne-ne-ne-neeeeeeeeeeeeeeeeeeeeed."

 

Ultron-Dave smashes QVC Patrick Swayze plate collection:  "Now you won't have to buy the rest of those. I just saved you $20 a month. Now let's talk about getting a second job.  I hear Wal-Mart is always hiring."

 

*Don't use credit cards (http://helpwithbills.org/?p=1628) pretty simple, people spend more when using credit cards.  Spend more equals have less money.

 

*Pay off smallest debt first (reaching a goal gives an endorphin boost making subsequent goal achievement more likely)  Sounds a lot like Nerd Fitness.

 

*Don't be lazy.  Keep track of how much you spend with gazelle-like intensity.  Because the world is a lion that wants to eat your finances. Go! Go! Go! Go! Go!  RUUUUUUUUNNNNNNN!   Get after it.

[hufflepug]

Ooh I haven't noticed this forum till now, very excited to read up on other people's budget and debt ideas!

I'm not really a fan of Dave Ramsey (I haven't watched/read any of his stuff) but I am a fan of his snowball method. I was able to pay off about 5 of my credit cards that way. I still have a long way to go (my debt was around $25k, now it's around $15k) and I'm switching over to the avalanche method for now, since I have no particularly low balances, and one card is killing me on interest, so I'm concentrating on that one.

[PNH]

I know zero about Dave Ramsey, but not using credit cards at all is a terrible idea.

 

- Debit cards and cash offer zero kickbacks at the vast majority of money spending opportunities

- Building good credit makes life much easier in the future. Want to buy a house? Good luck getting a loan from a bank if you have been super diligent and spent years budgeting and have no been using credit cards. It won't be easy.

- Credit cards lead to temptation? There is a whole portion of these forums, and countless other places both on the internet and in real life dedicated to helping work on financial goals. Be honest with yourself, be honest with your fellow contributors and take some personal responsibility about spending like many of you did with your health. 

- Misinformation is hurting you. I.E. Oogiem from the first page, and several years ago, "Be careful with that, any security breach can wipe out your account and they are not protected like credit cards are. If a charge is made on a debit card you cannot claim it as fraud." Fraud is fraud and no bank in the US is going to ever steal your money. They make plenty of money overcharging you for everything under the sun, not refunding a 20 or 200 or $2,000 fraud charge is millions in bad press.

 

Credit card companies are there as a convenience and credit building platform. They will certainly crush you the more irresponsible you are, but if you are good at maintaining a budget and spending responsibly, you are actually hurting yourself by not using a credit card and then paying it off in full monthly.

[TiberiusNightrise]

I just finished reading Dave Ramsey's Financial Peace Revisited, which my parents had given me for Christmas 1 or 2 years ago and I just had never finished. Not sure how/if it's different from TMM, but I think it presents the same principles in a slightly different way. It was a great read, though.

 

One of my goals for the current challenge is to become debt-free. And it's going to happen. This month! I'm so excited! Just one more (really large) payment on my last school loan and then I am done! So stoked!

 

After that, it'll be combo finishing my emergency fund/saving for a newused car.