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Anybody assuming dear old Dave's callers are random callers is probably in for a shock. I'm sure most of it is a scripted show... just like all of the others. It's about getting Dave's message out... not helping callers.
Ramsey show is pre-recorded with 100% prescreened callers. If you call his show you actually get a voicemail for you to leave a message and they will call you back if they have any interest in talking to you.
Yet at the same time, most millionaire and even billionaires started off by BORROWING money to get a business going.
Quote:
Originally Posted by treasurekidd
That's different. Personal finances and business finances need to be kept 100% separate. YOU don't borrow money to get a business of the ground, the business does.
Thats not entirely the correct response because a lot of people successfully borrow to get off the ground. You can borrow to buy a car so you can get to work, borrow to buy a duplex that will bring in some income.
The difference of course is what you intend to do with that debt. If you plan to use debt to grow your income, more than the payments it will cost you, then thats called good debt and advisable. If it will cost you more than you will gain, or not gain you anything, than its bad debt.
This is why Ramsey believes a mortgage should be paid off asap as well, because its an expense, and you are better off paying off your debt, then leaving you with what you would have spent on a mortgage, to invest..
He pretty much repackaged the Crown ministries concept and commercialized it. He found a way to profit from common sense and you have to admire that.
I used to listen to his show on the radio purely for the "human interest" aspect but he lost my interest. He started "mentioning" how well he was doing financially a bit too often and it became tiring for me. Another aspect of the show that turned me off were people that called with "questions" that were so simple you wondered why they needed to even ask.
The "turning point" for me was his denial, early on in this economic recession/depression that we were even HAVING one. For a guy who claims to know a little bit about finance he sure was clueless. When unemployment reached 10% his response was - "90% of the people are still working" which displayed further ignorance of the STRUCTURAL change in our economy. He just doesn't seem to have a depth of knowledge in economics. It is true that 90% of the people are still working but that does not address the types of jobs LOST. In his home state of Tennessee we lost well over 70,000 manufacturing jobs THAT IS A PROBLEM. To pretend a job at Wal-mart is just as good as a job in manufacturing?
The very last time I listened to him was the day the Dow regained the 10,000 mark and he was crowing about the improving economy. That just showed ignorance.He didn't seem to connect the actions of the Federal reserve and its ZIRP (zero interest rate policy) as well as the "Quantitative easing" (AKA increasing the money supply) and the relationship to asset valuation. Dave was crowing about the "market" being up but did not also note the price of everything else was ALSO going up (other than the already overinflated housing market). I haven't listened to his pompous talk since.
Lets not forget his "The stock market historically returns 12%" fallacy. Hows that working out for you Dave? LOL Really- if you listen to this guy for ANYTHING OTHER THAN ENTERTAINMENT you will be disappointed. He can talk but what he says is highly questionable.
Another issue is his pushing real estate. He claims to have expertise in the field and he was pushing buying. Fact; Historically median home values have been 2.5X median household income. In the Nashville Tennessee area the median home value is 165,000 dollars while the median household income is 48,500 dollars. Median home values WILL return to the historical norm which indicates a median home value of 121,250. Home values currently are 26.5% overvalued IN DAVES OWN BACK YARD.
Dave repackages common sense and sells it at a profit. He is in no way an expert on finance and I question his knowledge about the real estate market (I remind you he went broke in the last housing bubble).
The bottom line is that if you "need" Dave Ramsey to help you, bless your heart.....
I have found Clark Howard to be more informative and entertaining. I also used to enjoy listening to Bruce Williams before he retired. Dave Ramsey? Why do I know he has a lake home in southern Tennessee? Why do I know he has a ski boat at the lake? His show is all about selling common sense and a little bragging about his life on the air.
I don't agree with everything that Ramsay preaches. I do believe that debt is an obsession with many in this world we live in today. We also over buy, instead of living on much less than we make. The problem that most people have is that debt has become a way of life... to be expected, a tool to achieve the good life, whether you can afford it or not. A method to keep up with Jones, the Smiths, and the Buffets. Mortgages, car loans, student loans, 401K loans, 90 days same as cash, credit cards, secure loans, unsecure loans, pay day loans, pawn shops on and on and on. The simple fact is that we buy too much crap we don't need. We buy too much house, new car paid off over 72 mo. when a used car would work just fine. The real thing that most people fail to figure in all of these so called financial decisions, is the risk that they are taking. A 150K salary has one thing in common with a 30K salary... Both could be gone tomorrow.
Last edited by debtmonger; 12-18-2011 at 10:14 AM..
Reason: Typo
I have found Clark Howard to be more informative and entertaining. I also used to enjoy listening to Bruce Williams before he retired. Dave Ramsey? Why do I know he has a lake home in southern Tennessee? Why do I know he has a ski boat at the lake? His show is all about selling common sense and a little bragging about his life on the air.
Interesting take...and I agree with you about Clark in the sense that he is a little more down to earth. He goes after a different target and I get more out of listening to his show.
But I still listen to Dave for reasons mentioned elsewhere....and you're right...entertainment.
I bought a $12K dump, paid that off in a couple of years, sold it and bought a $46K home, paid it off in a couple of years, and now I'm into a $132K home (appraised for $250K), and that'll be paid off in a couple of years.
From start to finish, about 10 years total to pay off a $250K home and the best part is, my mortgage payments are 1/4th what they would be if I had just bought the $250K home. In fact the $250K home is actually cheaper than the $46K home was.
That works if the markets where you're living and doing all that buying and selling are moving in your favor.
Personally, I recommend buying (IF you can well afford it) the house you plan to stay in long term, and not 'flipping up.'
For me, the time and effort of investing time, effort and money, in one, two or three houses every two years, just to keep buying up isn't worth it. I'd rather be where I'm going to be, make any changes I want, and then sit tight in the house I already know is big enough for the long haul, in a neighborhood I won't have to move out if if kids come along, etc.
Maybe it's me and I just don't have the personality to go through all that -- like couples who'll buy a house AND KNOW in 2-3 years they plan to move. I think you REALLY have to do ALL the number projections when you do that. And people often forget there are costs associated with moving, prepping a house for sale, commissions, making changes (perhaps) to the new house, etc. as well.
He pretty much repackaged the Crown ministries concept and commercialized it. He found a way to profit from common sense and you have to admire that.
I used to listen to his show on the radio purely for the "human interest" aspect but he lost my interest. He started "mentioning" how well he was doing financially a bit too often and it became tiring for me.
Dave repackages common sense and sells it at a profit. He is in no way an expert on finance and I question his knowledge about the real estate market (I remind you he went broke in the last housing bubble).
His show is all about selling common sense and a little bragging about his life on the air.
I did hear him quite a few times on the radio show boasting about how much money he had. One time he was talking about how he went to the car dealership (I believe Mercedes) and bought a $80k car in cash, because he could. He was very boastful about his high-dollar cash purchase. I think he said something like you need at least $1MIL+ in cash reserves in order to go and buy such a car.
He likes to use himself as the pinnacle of "financial peace". I find it a little too much and self-absorbed. I find it weird that he has hardcore followers who almost revere him. I've heard a few calls that seemed a little over the top for him and his program.
The difference of course is what you intend to do with that debt. If you plan to use debt to grow your income, more than the payments it will cost you, then thats called good debt and advisable. If it will cost you more than you will gain, or not gain you anything, than its bad debt.
This is why Ramsey believes a mortgage should be paid off asap as well, because its an expense, and you are better off paying off your debt, then leaving you with what you would have spent on a mortgage, to invest..
Nobody can guarantee what a business will do. "Good debt" or whatever you call it, can turn out to be bad debt when the business fails.
You have to live somewhere, whether you are renting or owning, you are putting money into that residence. Whether you are paying $1,200 a month on rent or $800 a month on a mortgage payment, you are throwing money at the residence. With a rental the landlord is taking your money, with a home, the bank is taking the money.
At least with a home you have a home that USUALLY will appreciate and carry equity in it. Plus it is a HOME, not an apartment. Having lived in an apartment and a home, I would never want to go back to living in an apartment. I can crank my radio in my home without getting complaints, it is my home, I can paint the walls, design it, and it is my domicile. I have a yard, a garage, and I can throw a party without being crammed into a small apartment space.
Nobody can guarantee what a business will do. "Good debt" or whatever you call it, can turn out to be bad debt when the business fails.
Thats why you incorporate your businesses if you are concerned about the debt.
Quote:
Originally Posted by DellNec
You have to live somewhere, whether you are renting or owning, you are putting money into that residence. Whether you are paying $1,200 a month on rent or $800 a month on a mortgage payment, you are throwing money at the residence. With a rental the landlord is taking your money, with a home, the bank is taking the money.
Which is why I've never paid rent in my entire left. Moved from my parents, right into my own home.
Quote:
Originally Posted by DellNec
At least with a home you have a home that USUALLY will appreciate and carry equity in it. Plus it is a HOME, not an apartment. Having lived in an apartment and a home, I would never want to go back to living in an apartment. I can crank my radio in my home without getting complaints, it is my home, I can paint the walls, design it, and it is my domicile. I have a yard, a garage, and I can throw a party without being crammed into a small apartment space.
But homes are not assets, the equity in that home is. The home itself comes as a liability because of the maintenance costs, mortgage, taxes etc
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