@ghgirll40 wrote:
@Horseshoez wrote:
@EAT_SLEEP_JEEP wrote:
@Horseshoez wrote:
@203bravo wrote:Yep ---- that is Dave Ramsey's advice.
Ugh, Dave Ramsey, the charlatan of credit; yeah, he may get a few things right from time-to-time, but I would strongly advise ignoring everything he says.
Dave's advice is sound for a good portion of those that he reaches. The chronically financial illiterate that have crashed hard. In those cases I feel telling them to avoid credit makes as much since as telling a junky trying to clean up their act to avoid drugs at all costs. Even a little hit isn't advised while detoxing
Having said that, I refuse to use a debit card when I can earn cash back with a credit card and im also in no hurry to pay off my low apr mortgage. Just have to take what works for you from his message and then graduate up to The Money Guy etc.
My issue with DR is he preaches in absolutes; many of which are absolutely detrimental from a financial perspective. That and he has made millions off of folks who are on an unstable financial footing.
He has studied millionaires specifically and from my point of view his advice is definitely not detrimental if you follow all of it and not just pieces of it. It's a do or don't type of situation.
You're missing the point, following all of Dr's advice can definitely be detrimental as it is terribly myopic and often, just plain wrong.
@Horseshoez wrote:
@ghgirll40 wrote:
@Horseshoez wrote:
@EAT_SLEEP_JEEP wrote:
@Horseshoez wrote:
@203bravo wrote:Yep ---- that is Dave Ramsey's advice.
Ugh, Dave Ramsey, the charlatan of credit; yeah, he may get a few things right from time-to-time, but I would strongly advise ignoring everything he says.
Dave's advice is sound for a good portion of those that he reaches. The chronically financial illiterate that have crashed hard. In those cases I feel telling them to avoid credit makes as much since as telling a junky trying to clean up their act to avoid drugs at all costs. Even a little hit isn't advised while detoxing
Having said that, I refuse to use a debit card when I can earn cash back with a credit card and im also in no hurry to pay off my low apr mortgage. Just have to take what works for you from his message and then graduate up to The Money Guy etc.
My issue with DR is he preaches in absolutes; many of which are absolutely detrimental from a financial perspective. That and he has made millions off of folks who are on an unstable financial footing.
He has studied millionaires specifically and from my point of view his advice is definitely not detrimental if you follow all of it and not just pieces of it. It's a do or don't type of situation.
You're missing the point, following all of Dr's advice can definitely be detrimental as it is terribly myopic and often, just plain wrong.
What is myopic and plain wrong about his advice?
@OmarR wrote:What is myopic and plain wrong about his advice?
Cherry picking here; his advice to pay cash for a vehicle is just plain stupid. Taking my most recent purchase as an example, I financed about $38,000 on a new vehicle last October for 48 months at 2.49%. My options were:
- Take $38,000 out of my emergency fund and then stop investing until said fund is replenished to current levels
- Take money out of my investments which typically earn at a rate well above 2.49%
- Borrow the money for 48 months at 2.49%
- Borrow the money for 36 months at 3.49%
- Borrow the money for 60 months at 3.99%
The fact a vehicle is a "depreciating asset" is utterly and completely irrelevant; I was going to spend the money one way or another, but by borrowing the thirty-eight grand, I will have more money at the end of the 48 month period than I would have if I'd opted for either of the first two courses of action above.
@Horseshoez wrote:
@OmarR wrote:What is myopic and plain wrong about his advice?
Cherry picking here; his advice to pay cash for a vehicle is just plain stupid. Taking my most recent purchase as an example, I financed about $38,000 on a new vehicle last October for 48 months at 2.49%. My options were:
- Take $38,000 out of my emergency fund and then stop investing until said fund is replenished to current levels
- Take money out of my investments which typically earn at a rate well above 2.49%
- Borrow the money for 48 months at 2.49%
- Borrow the money for 36 months at 3.49%
- Borrow the money for 60 months at 3.99%
The fact a vehicle is a "depreciating asset" is utterly and completely irrelevant; I was going to spend the money one way or another, but by borrowing the thirty-eight grand, I will have more money at the end of the 48 month period than I would have if I'd opted for either of the first two courses of action above.
I think it depends on the person, or particular profile.
I work with plenty of people that finance cars (and other toys) that are equal to or worth more their annual salary. No investments or anything else on the side earning them anything. That is when "depreciating" becomes relevant.
Yes, they could STILL finance something more reasonable (to me) that is inline with their income versus paying outright cash. And invest the difference. But they won't. And they STILL wouldn't have the cash to pay for that car outright anyways. Hence the extreme "myopic" views that he throws at his target audience.
@privacyadvocate69 wrote:You left out the option of not buying such an expensive vehicle.
Ummm, why would I bother buying something used and abused by someone else just to save a few bucks? To me at least, the vehicle I bought last fall doesn't qualify as even remotely expensive and I plan to keep it for at least a decade, two decades is more likely.
@privacyadvocate69 wrote:I mean...our household income is about $275K. Last vehicle we bought was only $17K and was 4 years old when we bought it.
And that means what? My income is higher and my last car was purchased for only $10,000; that said, over the six years I owned it, the car cost me nearly $15,000 in mandatory and preventive maintenance.
One additional factor you failed to take into account, in 2022 used Toyota Tacoma functionally identical to the one I bought were selling for thousands MORE than what I paid for a brand new vehicle with 4 miles on the clock.
@privacyadvocate69 wrote:It means once can save money by not buying expensive vehicles, and that was not among the options you listed above.
Dude, it isn't for you to tell others what they should and shouldn't buy. I wanted a new vehicle, I could easily have paid cash for it, I didn't; get over your bad self.