Any Dave Ramsey fans here?

I wish that I'd have come across Dave's books many years ago. When it comes to economics, I tell my children and grandchildren that there's only two names you need to know: Thomas Sowell and Dave Ramsey. Dr. Sowell describes the big picture best, and Dave prescribes the best individual picture.

 

I know Dave, love his show. Not because of Dave but I am debt free and it is a good feeling.

 

AMEN

 

Nope, never heard of him. Is he a media "star" that relies on gullible types to be celebrated?

 

I've heard enough of his show to get his personal finance philosophy, which I generally agree with in theory. Practice is a lot more difficult however.

 

As Yogi said, "In theory, practice is no different than theory; but in practice, it is."

 

"Without theory your mind melt lies somewhere between data mining and the guffing spurious" Boo-Boo

 

What he says is common sense, but I don't like him, he's a little too abrasive. Just something about his attitude.
He also has done a fair amount to point out the student loan stupidity that has been very financially damaging to people's lives, a pretty big issue most others in the media have been ignoring.

 

His theory of paying cash for everything is great....... if you are rich.

 

If you cannot pay cash for for things you are purchasing, you probably should not be purchasing it. Carrying credit card debt is an extremely irresponsible way of managing money. Buckle down, stop paying for luxuries that you do not need then when debt free and a reasonable amount money in the bank you can start spending money on nonessential things.

 

A tad more difficult if you're on a zero hours contract such that income streams are all over the place.

 

If that is your situation you have been saving money so that you would have cash in lean times. Or get a job with a steady stream of income. Using credit cards not nonessential spending is extremely irresponsible if you can not pay it off in your first billing cycle.

 

Zero hour contracts go hand in hand with low wages. To suggest that it shows intertemporal naivety really doesn't cut the mustard.

Of course this often goes beyond credit cards. It is also exploited by pay loan companies. Rent seeking and capitalism always goes hand in hand when there are extreme inequalities.

 

If you are a low wage earner, what are you doing with a credit card, and what idiot would loan you money? Imo most low wage earners are low wage earners because of irresponsible behavior and choices.

 

Often it isn't about choice. A pay loan deal is needed to pay the bills or feed the kids. Your idea that it reflects irresponsible behaviour is cretinous. Why, for example, is it economies with greater labour market flexibility that have higher working poverty? Its because the likes of the UK and US have a form of rentier capitalism that allows inefficient profiteering from exploiting low wage labour.

 

INEQUALITY OF INCOME

The "practice" in this case (of the US) starts with Income Disparity, and how we correct it. That part is damn-easy.

We raise upper-income taxation to levels that really&truly bite into undeserved Net Income After Taxes of the Ultra-Rich. And in case you don't know why that is key to Taxation Fairness, then have a look here: OECD INEQUALITY OF INCOME CHART.

Note this from the chart:
*The US has the highest level of Income Inequality/Unfairness of any comparably developed nation. The only other comparable selection would be the European Union.
*The members of the European Union (run by the principles of Social Democracy) is far more "fair" in its distribution of income - principally due to much-higher upper-income taxation.
*That redistribution of income (ie. "taxation") pays for such Key Pluses as National Health Care and Post-secondary Education, both of which are central elements of any existence on earth.
*Whyzzat? Because without a National Healthcare Service (NHS) the length of lifespan is serious diminished. From here:

*And ditto, post-secondary education is a key component of this new Information Age into which all nations have now entered.

*"Inequality" is not the best word for the chart. "Equality" in statistical determinations exist nowhere. What is listed are "comparable values" that determine/show dramatic differences in the country assessments.

 

Dave WAS great... Now just another edge Rush Limbaugh propping up the regime and banksters... Many situations he offers the same ole angle. Saving in a bank "rainy day fund" is NOW a worthless prop. soon to be a losing one.
Banks will gladly moving your savings rate to negative, but not your mortgage rate.
Once they change LIBOR in a year all bets are off and they will double or triple home rates, and lower savings rates to -2%

 

I used to listen to Dave Ramsey, many years ago. But I do not think his show is free anymore, is it? (Please correct me if I am mistaken.)

I follow almost all of his teachings--not because he is my mentor, but simply because I think very much like he does.

The one difference: I use my credit card almost every day--usually for mundane things, such as gasoline, groceries, and dining (including--but not limited to--fast food).

I do, however, have it set up for automatic debit of the full amount each month, as I do not care to pay any interest. And I also do not wish to try to live beyond my means. (That may seem like a good thing for a little while; but there will come a day of reckoning--and it will not be good...)

Of course, there is another reason that Mr. Ramsey eschews the usage of credit cards: He believes that people tend to purchase less when they have to dole out the green stuff, instead of simply using the plastic. And this may be generally true. But I am not sure that it is true for me, as I know that I will have to pay for the item soon, when the bill comes due.

And I do like the 5 percent cash back that the card gives (plus a bonus 10 percent of that--or 5.5 percent total). (Note: The 5 percent applies only to gasoline, groceries, and dining--it is, I believe, just 1 percent for everything else--but I mostly use my card for these items.)

No doubt, the issuer of the card--it is my bank--believes that it will more than recapture the 5.5 percent in interest. But it will receive no interest from me. Not even a penny. (It can, of course, get its 2 percent or so off the merchant's end of the transaction--whatever it has negotiated for.)

 

My "Rainy Day Fund" (a.k.a. Emergency Fund) is now over $137,000--and growing every month. (I have my Social Security check direct deposited into it; and, most months, take another $1,000 or so out of checking, and transfer it to savings.)

And I certainly do not consider having a Rainy Day Fund to be a "worthless" proposition.

 

Sounds awfully Keynesian in money tone...

 

Then your experience is limited or very selective.

IQ level generslly4 determines success. In the past labor was worth living wages . A service sector economy is a non living wage situation

But the higher IQ people can prosper

Dave's solution to insufficint income is to get a living wage job! Lol

In a service sector 1099 gig and part time job economic model

 

Ramsey could give young people an education they really need.

 

I'm the same as you when it comes to a credit card. I use their money for thirty days.

 

Ramsey has turned into another Republican Talking Head. He has told people NOT TO sell into this debacle. That is just wrong! He is a backdoor supporter of the overly corrupt FED, Banking System taking down our country one year at a time.
401Ks in 1980s when 40% of the people still were in UNIONS and received GREAT pay and Benefits supplied you with a PENSION. The Corporate money was shared with all. Today all that is GONE, stripped away and given to the elite business owners. The Greed has taken over way too much.
Back to Dave, he uses the old addage STAY in the MARKET and you will do well by retirement. This too is no longer true. They love to tell you this during the good times, when the market is up.
If you had gotten into an avg. value fund with 1M in 2005 today you would be lucky to have 600K
The fees keep going up, they manipulate the sale prices, the stocks moving in and out, and stretch every law. If there is a regulation that HELPS the people, they have the regulation changed. It is all very very very Corrupt !

 

Its weird that, despite how obviously corrupt the system is, 'fake libertarians' typically (not always mind you ) just celebrate it. Its as if corruption really isn't that much of a bother to them...