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We busted our tails paying our house off early. Took us 11 years, but got it done. The last two years before that, my loving bride was extremely burned out on her 29 year teaching career, so I told her to take retirement - we'd make do. 3 years ago, I was in a corporate sales meeting, listening to a egotistical CEO berating us - and she made the mistake of saying "Anybody that doesn't like it can leave". I got up and walked out - with no regrets. If we hadn't had the mortgage paid off, I'd have had to sit in the meeting and continue to listen to her... Two years later, I went on to SS, and frankly, we're having a ball.
That's the message Dave has that gets lost so often by those trying to show they're "smarter" than he is - it's a philosophy more than anything else. The man IS right - and for the vast majority of folks who simply lack the willpower to do it for themselves, his program can be a Godsend. My oldest son and his wife are on track to have their home paid off in two more years - he'll be 43. They're a single-earner household, and he and his wife have often foregone things for that lifestyle, but it's fun to watch them as they see the light at the end of the tunnel.
well lots of people are financially a lot smarter than his sub optimal advice.
his advice is very good for people who are terrible with money which unfortunately is a lot of people in the US. That doesn't make it above reproach.
well lots of people are financially a lot smarter than his sub optimal advice.
his advice is very good for people who are terrible with money which unfortunately is a lot of people in the US. That doesn't make it above reproach.
And congrats on walking out of that meeting!
Yes, I agree with you. The problem comes in is that the most incompetent people are often the ones who think they are smarter than they really are. Dave's advice is for the 70% of Americans who are broke or going further in debt, and more than a few of them think they are smarter than they really are.
There's nothing that beats the feeling of being debt-free.
Sure, being debt free and eventually having financial independence would be great. But the thing is, getting to that point is harder by being scared of of debt. Intelligently using leverage will make you far wealthier than not borrowing money.
Dave’s advice is terrible for people who actually understand money and discipline. Sure, he could be helpful for people making 40k who max out credit cards and have a $400 lease payment.
Last edited by Thatsright19; 02-24-2018 at 08:29 PM..
Yes, I agree with you. The problem comes in is that the most incompetent people are often the ones who think they are smarter than they really are. Dave's advice is for the 70% of Americans who are broke or going further in debt, and more than a few of them think they are smarter than they really are.
like suzi orman's band of financial misfits she caters to . her advice will not help you grow wealth . it is more to fix a broken situation or keep you from hurting yourself more even if she fibs a lot to make you do it .
like suzi orman's band of financial misfits she caters to . her advice will not help you grow wealth . it is more to fix a broken situation or keep you from hurting yourself more even if she fibs a lot to make you do it .
Yeah, true. Although I will say I think Dave's message is more coherent and consistent than Orman's.
Sure, being debt free and eventually having financial independence would be great. But the thing is, getting to that point is harder by being scared of of debt. Intelligently using leverage will make you far wealthier than not borrowing money.
Dave’s advice is terrible for people who actually understand money and discipline. Sure, he could be helpful for people making 40k who max out credit cards and have a $400 lease payment.
There are many people who will tell you they “intelligently†use debt as leverage, when in fact, many more get in trouble from debt instead of building their net worth.
we have the same issue with credit cards but i can tell you i looooove the perks from ours and never paid a penny in interest ever . coming up on 2k in perks since october on our chase saphire preferred .
My overall compensation is more than 10x larger in the first decade of my career than it was in/before college. Ramsey thinks you should avoid student loans. In his world, I would pay for school as I went. School would have taken longer, I would be cutting down on years working at my career wage, and I would have been struggling to pay exploding college costs at 8 an hour instead of 30...40+. Avoiding leverage would have made me far worse off.
He then thinks you should have no debt (including student loans), 3 to 6 months of emergency fund, and 20 percent down to own a home. I bought a house not meeting any of those parameters, made thousands....traded up to another house and made tens of thousands in equity. Avoiding leverage would have made me far worse off.
He thinks revolving credit is the devil. I’ve made thousands upon thousands in opening rewards and cash back programs. Not only does that make me money to fund an emergency fund, but it’s granted me years of zero percent interest loans. I’ve never paid balance transfers by staggering the no interest expirations (pay down one card while increasing the balance on the next). This has freed up cash flow to invest (fund large 401k matches), buy in bulk, and avoid all other interest and penalty. It allows me to earn interest on my money as well. In other words, it frees up cash flow to focus the most important expenditure currently. Avoiding leverage would have made me worse off.
All the while, that is strengthening my credit, allowing me to pay for old expenditures from a year or more later with inflated dollars and my increased paycheck as I skyrocketed in my career.
Had I followed his advice, it’s nearly guaranteed I would be worse off. Yes, I understand there was/is risk, but being overly conservative will lock in far worse outcomes. Debt is not to be avoided. Debt is fine as long as you’re using it to come out ahead. Look at any major Fortune 500 company. They use leverage to make more. It’s awful to sit in a little bubble and be in fear of debt.
Last edited by Thatsright19; 02-25-2018 at 04:14 PM..
Status symbols? Who brags about paying off mortgage. If you go to a holiday party, hey guys, I just paid off my mortgage.. Do you know how stupid that sounds? Who the hell cares.
Now if you drive in with a Ferrari, without opening a word, you will have 10 people come up to you, and want to be your friend, now that's status symbol.
How much is your Ferrari depreciating ? My paid off house? It's not.
The nice thing is if you can afford that car you are not worried about depreciation .
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Two years later, I went on to SS, and frankly, we're having a ball. 
