Dave Ramsey: don't buy new car without $1 million net worth (Massachusetts, BMW)
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Location: Formerly NYC by week; ATL by weekend...now Rio bi annually and ATL bi annually
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Quote:
Originally Posted by Hal Roach
GM used SUV are garbage. A farmer friend used to buy a new one every two years as his farm car...they all had major stuff wrong at trade in time. His farm is worth much more than 8 figures, so he can afford it and knew the dealer, but he would never have owned one out of warranty. Try living in 120 degree heat sometime, and see how well your used Michigan piece of scrap does in the heat, if it will even start. Same for those Impalas..had one at work....probably depreciated half in two years....terrible design, terrible electronics.
People drive those cars and put over a quarter million miles on them. Then they hold a decent resale value. I have had those, Range Rovers, Land Rover Disco's, etc. The Range was more of a headache at 110,000 miles with all the maintenance kept up than my Cadillac Escalade with 185,000. Both bought new. Aand the Cadillac resale value was higher than the Range. The Range is super tempermental and the heads are made of plastic.....
Dave Ramseys only real problem in my opinion is that he has one way, his way, and any divergence from that is very wrong in his opinion.
That goes back to his audience. Most of the 70% of Americans who are living payday to payday (or worse) need a rigid program to keep them on the right path.
That goes back to his audience. Most of the 70% of Americans who are living payday to payday (or worse) need a rigid program to keep them on the right path.
True. His way is rigid but it will probably work for the bulk of people who are upside down with debt. He could give more general advice but I bet most financially illiterate people benefit more from something that just states “do this”. Of course once you’re sorta in line with his methods you can modify some of the details and probably be fine. From what I gather, he’s all about no debt, suffering a little and paying off your mortage...that can certainly work for most people. Being debt free is a powerful position to be in.
True. His way is rigid but it will probably work for the bulk of people who are upside down with debt. He could give more general advice but I bet most financially illiterate people benefit more from something that just states “do this”. Of course once you’re sorta in line with his methods you can modify some of the details and probably be fine. From what I gather, he’s all about no debt, suffering a little and paying off your mortgage...that can certainly work for most people. Being debt free is a powerful position to be in.
Yes, that's all correct.
He's also all about getting 15 year mortgages instead of 30 year, and borrowing less than the bank will qualify you for.
He also says you need to save 15% for retirement.
His Baby Steps put things in "one at a time" order as people tend to lose focus.
My biggest issue with him is his referring people to mutual funds that have a sales charge and also in assuming that 12% returns are realistic over the long run. I think he also said in one of his books that you can take 8% out of your portfolio once you retire, which is way too much.
People drive those cars and put over a quarter million miles on them. Then they hold a decent resale value. I have had those, Range Rovers, Land Rover Disco's, etc. The Range was more of a headache at 110,000 miles with all the maintenance kept up than my Cadillac Escalade with 185,000. Both bought new. Aand the Cadillac resale value was higher than the Range. The Range is super tempermental and the heads are made of plastic.....
In 2003 I was at a Customs' auction. A 1980 Seville, with no body damage sold for 35 Dollars. A 1986 Toyota pickup with 4x4, and 250k on the odometer went for 2,650.
Dave Ramsey's advice is pretty simplistic and sprinkled with Jesusy nonsense. But generally speaking it's not *bad* advice. It's a far better approach to personal finance than most Americans take.
I used to listen to his show back when I was young, dumb, and broke. Twenty years later I'm not exactly rolling in cash... but I am doing better then I ever imagined I would. And I owe nothing to anybody except for the mortgage which will be paid off in 8 years. My finances aren't prefect, but they're better than anybody I can name at my income level.
Dave Ramsey played a real part in that. Early on at least
Quote:
Originally Posted by mysticaltyger
Yes, that's all correct.
He's also all about getting 15 year mortgages instead of 30 year, and borrowing less than the bank will qualify you for.
He also says you need to save 15% for retirement.
His Baby Steps put things in "one at a time" order as people tend to lose focus.
My biggest issue with him is his referring people to mutual funds that have a sales charge and also in assuming that 12% returns are realistic over the long run. I think he also said in one of his books that you can take 8% out of your portfolio once you retire, which is way too much.
Like any info-tainment, there's plenty you can nitpick about Dave Ramsey. I agree with your criticisms here.
But the first three points are pretty well the core of his financial advice. And the unwashed masses of America (the vast majority of them) would do well to heed that advice. It definitely helped me out when I was young and financially illiterate... and gave me a starting point to start doing my own research.
Last edited by turkey-head; 11-23-2018 at 05:59 PM..
Ramsey's advice is sound, like my Father's pretty much and he died a multi millionnaire even though the most he ever made at his job was $36K/yr. It's strong medicine for many of today's young folk to swallow though.
Literally every dealership car lot in America has certified pre-owned used cars
And there’s this nice thing called a “warranty” or “extended warranty.” It works wonders.
I’ve had both new and used and I will never go back to new again, ever.
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