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I'm an adult in my mid-20s and am just about fully independent and comfortably set in a career. Perfect time to learn about Dave Ramsey's show/podcasts, as I learned about a few months ago. My perspective on personal finance has changed so much, it's great!
Now, I absolutely give zero cares about what I drive, how nice of an apartment I have (or whether I choose to live with my parents as opposed to renting an apartment), vacations or anything like that. I get on Facebook and I laugh at how broke all my friends are. Funny thing is, they don't realize they're broke. I saw a newlywed couple on Facebook today post a status about how thankful they were to God for helping them get approved for a home loan. Yea, that's sure something to brag about -- having to borrow money because you don't have enough of it!
Debt is just a tool like a shovel. Dave Ramsey wasn't capable of responsibly using a shovel and hit himself over the head with it repeatedly. That doesn't mean your married friends buying their house while you live with your parents are or are not capable of responsibly using debt.
I listen to Dave Ramsey a lot, I find his radio show to be inspiring although I paid my house off over 10 years ago and have not had a credit card for almost 20 years.
Most people need a mortgage to buy a house so that is not a big issue, I work for a major retailer that offers a leasing program for big ticket items for our "credit challenged" customers. This program is something I know good and well Dave Ramsey would advise people to avoid so I try to talk them into using our layaway but most broke people believe they need that 60" flat screen TV today, so they put themselves in a position where they will continue to live hand to mouth.
I used to really be a "subscriber" to the DR philosophies, but now I have a credit card. His message still has the very important point that people tend to spend themselves into trouble without realizing it.
That's great you've become interested in personal finance. Not everyone here likes him for various reasons, but I don't think he's a bad source for when you're just starting out and learning the basics.
Debt is just a tool like a shovel. Dave Ramsey wasn't capable of responsibly using a shovel and hit himself over the head with it repeatedly. That doesn't mean your married friends buying their house while you live with your parents are or are not capable of responsibly using debt.
The math doesn't add up on "using" debt to finance one's living. A car is not an investment (unless it's some classic or rare vehicle), so how would it ever make sense to "finance" a car, for example?
That's great you've become interested in personal finance. Not everyone here likes him for various reasons, but I don't think he's a bad source for when you're just starting out and learning the basics.
Amen, DR is a good place to start, basic common sense, & one can expand from there, we all have different start points. His word isn't gospel & hear out other experts too.
The math doesn't add up on "using" debt to finance one's living. A car is not an investment, so how would it ever make sense to "finance" a car, for example?
If you can get 0.9% on the loan and put the money in CD's and money markets earning an average of 1.5% or 2%, you can technically come out ahead.
Also if you have a mortgage at 3.75%, and you get offered car financing at 0.9%, why would you not take it and pay down your mortgage? Seems you're leaving free interest savings on the table.
This assumes of course you would have the same car and the same insurance either way.
I used to be very anti-car-loan too, but I had to admit that sometimes paying cash is less sensible.
What I think is bad, is a car loan to buy a car you couldn't otherwise pay for, unless there is really no other choice even after considering alternatives such as transit and moving near work.
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