Is the Dave Ramsey Financial Freedom Program worth the money?

[mysticaltyger]

Originally Posted by VikingPrincess007

Its been awhile since I posted this original message but things have gotten better financially. I was left some money via an inheritance (truly someone was praying for me) so I have managed to pay off most of my debt. I still have an old car and a job that I don't like but at least the financial part is a little better and my load is lighter. I think if I wouldn't have inherited the money I would have done bankruptcy because I got to a place where I could not even pay the minimum amount on my credit cards. That led to a lot of stress which led to sickness. Its not worth it and sometimes we all need to do what is best for our own health.

That is great that you caught a break and used the money sensibly.

You just need to continue on that path.

Now that you have at least a little bit of breathing room, I really do think a book like "The Total Money Makeover" would really help you. It's not as hard as you think it is. And maybe you can afford to take a class now if you feel you need group support.

The only thing I'm adamant about with Dave Ramsey is you should NEVER buy a mutual fund that charges a sales load. There's just no good reason for it. You can learn the basics of investing from plenty of other sources besides on of Dave Ramsey's advisors. It's not as difficult or complicated as people think it is.

[ncole1]

Originally Posted by ChristieP

I'm not a fan of his advice to "drive a car you can buy with cash." For most people, reliable transportation is essential to having a good job. If you buy a cheap, old car, the likelihood of it breaking down and leaving you stranded are much higher than if you bought a newer car with a warranty. Also, the unexpected expense of mechanic bills is tough on even the best budget, and fixing your own car is beyond most people's skills.

Overall, his advice is very good, and I know he helps a lot of people get and stay out of debt.

A warranty on a car doesn't mean the car will not break, it only means that the repair bill is on them if it does. Meanwhile, you still didn't get to work on time because the car broke down! If this is your concern, then you need to re-evaluate the emergency alternate transportation options/have a contingency plan. And meanwhile Dave Ramsey advocates having an emergency fund to cover the repair bills, which should be very easily to replenish if you're not writing $350 checks every month to some auto finance company.

Also, if you follow the baby steps, you should be out of non-mortgage debt pretty fast (I think less than 2 years for most of his callers), and then start saving cash. The idea behind his plan is NOT to drive old cars for the rest of your life. It is only to do so temporarily, until you have enough breathing room, and then the car can be upgraded, with cash.

There may be some situations where it is really necessary to have an auto loan, but I am convinced that 90% of the time people "need" it, they are simply making excuses and the real issue is the peer pressure - the fear of losing social status if you are seen driving a $2000 car.