Financial Help

[hammerdrill376]

With all that is going on with the economy I think we all agree we need all the financial help, wisdom and understanding we can gain so with that I want to recommend a course my wife and I have been taking over the last several weeks.

You may or may not be familiar with an individual by the name of Dave Ramsey. He is a financial expert from Nashville, TN. He has a program at night on the FOX business network. His class, Financial Peace University, is being taught at our church and various churches and businesses throughout the country. His common sense guide to controlling your finances and getting out of debt is something I wish I had learned years ago.

This course is not a "get rich quick" program or one of those type of programs. Believe me it is WORK as alot of the course requires modifying financial behaviors.

So with that I am recommending this program to all my SLY brothers. You can go to his website at www.daveramsey.com for more information. You can also research to see if there are classes in your area as well as live events with Dave. You can also get his books at your local bookstore. I recommend Total Money Makeover and Financial Peace Revisited.

Hammer

[SLYinKC]

My church also teaches this program and have heard great things from people that have gone through it.  As you said. it is common sense approach to finances (i.e. don't spend what you don't have).

[pharmer]

I couldn't agree more.  Whether you are Christian or non-Christian, Dave Ramsey is the best when it comes to teaching financial principles.  He is very intense with his "get out of debt" plans.  I have been following Dave for over ten years.  I also agree that this is not a get rich quick method- it's a life-long commitment to eliminating debt and building wealth over time.  I'm now totally debt free including the house.  Do it!!

[marty22]

I'll add 2 cents here also. Simple. Dont overspend. Yes; you;re entitled to that vacation each year. You must. But dont spend $12k a year on travel and forget to put into your 401k.

[BReady]

I listen to Dave Ramsey a few days a week (when I'm off of work) on the radio.  I haven't used a credit card in a LONG time and I haven't bounced a check in ages.  I'm still in debt up to my eyeballs, but I am trying to take care of it.  The emergency fund keeps getting wiped out by my wife's "emergencies," so I feel like I'm spinning my wheels sometimes.  Some day I'll be rid of all these stupid bills/payments and then I won't have to look for a fancy high paying job... 

...But, they said on the news that the US Post Office is running out of money, so maybe that will be my excuse, "Yeah, Wells Fargo?  Mortgage?  I paid it 2 weeks ago!  I put it in the mail, you should have gotten it already!"  GENIUS!

BReady

[GASlick]

I read his book several months ago.   It's hardcore.

[thebbqguy]

I'll chime in a vote "Yes" for Dave Ramsey. He's also on TV several nights each week.

He speaks from experience.

[Tyler]

I'm a big YES for Dave Ramsey also. 

I started putting his Fox program on in the background while my wife and I were doing chores.  He really spoke to me.  After a couple of weeks my wife started to comment on how we should apply more of his techniques - success!  We just paid off our second car a year early and have no more car payments, our debt is getting paid down faster and faster, and we eventually will be able to start paying the mortgage down.  We're a long ways off, but we now use cash for everything and if we don't have the cash for something, we'll save for it.  You really do start cutting down on the things you don't really need.

We also did things to bring in extra income.  My wife started a business that only takes about 1 day a week and we also rented out a spare room to a student from abroad.  It's has been a cultural experience and provided a valuable source to pay even more debt down. 

[stemikger]

Good Luck Hammerdrill376.  I have know Dave for many years.  I was even a caller on his show and I saw him live when he did the Total Money Makeover in New York City.  He gave me the free tickets when I called him.

The truth of the matter is I am a personal finance junkie.  Some guys tinker with cars, others play golf.  I eat up Personal Finance books as fast as they come out from the publisher.  I have read hundreds on the subject of investing and personal finance.  

Dave Ramsey is no doubt the best out there, but in all honesty I can't agree with his investing advice.  If I were you when it comes to investing read a book called Common Sense on Investing by John C. Bogle.  You can still do Dave's plan, but really consider other investing options.  

That's what I have done.  I am currently two years away from paying off my home (Baby Step 6).  I have no other debt and a fully funded emergency fund.  However, during this process, I only cut back on my 401K but never stopped it.  

I don't make a huge salary and was able to get this far.  If I can do it so can you.  I'm 45 now soon to be 46 and in two years I will know what true freedom is when I burn the mortgage.  

Like you and others said, it is not easy and you will encounter many set backs, but stay the course and always think like the Gazelle running from the lion.  Good Luck Sly Brother.  If you need any advice, feel free to e-mail me and I can give you advice on other books and websites that I frequent.

[Robmeister]

Dave Ramsey advocate here too as far as his system of getting people out of debt.

I will be the voice of dissention on the fact that when it comes to life insurance, he is just WRONG about the one-size-fits-all advice regarding term insurance.  Check out this clip.  Again, he's just WRONG (and a little arrogant and condescending, I might add).  This "Tyler" asked a totally valid question.



Here's a blog where several financial professionals weighed in (including myself).

http://blog.ifawebnews.com/dave-ramsey-says-that-only-term-life-insurance-is-worthwhile-everything-else-is-garbage/

Don't mean to be a stick in the mud.  Ramsey has helped hundreds of thousands with a turn-key system to get out of debt.  He just doesn't know EVERYTHING.

[stemikger]

Posted by Robmeister
Dave Ramsey advocate here too as far as his system of getting people out of debt.

Again, he's just WRONG (and a little arrogant and condescending, I might add). 

He just doesn't know EVERYTHING.

Yes Rob, I have turned several people on to Dave and my sister just dosen't feel he is very nice the way he talks to some people.  I got used to this, but sometimes when it comes to the political side of his views and the religious side, he tends to turn me off too.

There is another financial guru that teaches almost the same plan, but he does it with a much more open-minded way towards the one-size fits all thing.  His name is David Bach and his book the Automatic Millionaire is also an excellent read.  Very simplistic, (Like Daves) but good nonetheless.

I think Dave has to stick to the one-size-fits-all plan becasue a large portion of his audiecne are people who really never thought about money are in big trouble.  It is a tough love approach.

I was a perfect example when I called his show just to hear for myself how I was doing.  He really couldn't tell me anything except good job, but he did give me free tickets to his show in  New York where I live.  Also, in New York City he dosen't play as well as he does in the south.  Dave brought up something to the effect that he knows many people who saved for a house and never took out a mortgage.  In parts of the south where houses are $150,000, that is doable, but this guy in the audience was from Long Island where houses cost $500,000 for a starter home and he laughed and said something from his chair, but either Dave didn't hear him or just choose to ignore it.

[Tyler]

I am with Rob and Stemikger when it comes to Dave's investing and life insurance advice.  I won't get into a full explanation here, but there are strong reasons why someone should take out a whole life policy once they are out of debt or convert their term policy to life.

Though, when it comes to getting out of debt, Dave's advice is solid and is working for us.

[thebbqguy]

I think the key to his advice is to motivate people to take action. But, I don't follow his investing advice either.  (I used to have active Series 7 and Series 63 licenses.)

As they say, if you keep on doing the same things you've always done, don't be surprised if you keep getting the same results.

I don't buy used cars like he preaches either, but I had my F-150 for 13 years. My wife had hers for 11 years.  I do believe in shortening the finance term and making large down payments (if you can't pay cash for the new car).

[pdxtodd]

I listen to Dave on the radio and need to get his books.   I haven't touched a credit card in months and hope to never have to touch one again.   I keep telling myself I need to start doing the baby steps - so time to pick up the books and get my life back in order.    You guys fixed my hair issues -- now its time to fix my financial issues. 

Its interesting to talk to my grandmother.  She never had a mortgage, never took out a loan, never borrowed money.   Its all something that's come into play during our lifetimes.   I wonder if the country would be in the financial mess it is if we just took our grandparents advice and followed in their footsteps.

I'm dumping my $6800/month house as one of the first steps.   I'm tired of being house poor.   I've found nicer houses to rent for $1800/month.   Sure I won't get the tax break but I am also not shelling out $5000 a month more than what I really have to - just to have a roof over my head.

Thanks for the kick in the pants to get the books.

[stemikger]

Posted by Pdxtodd
I'm dumping my $6800/month house as one of the first steps.   I'm tired of being house poor.   I've found nicer houses to rent for $1800/month.   Sure I won't get the tax break but I am also not shelling out $5000 a month more than what I really have to - just to have a roof over my head.

Todd, dump the house and enjoy freedom.  I watched all my friends move into simliarly priced homes and only two of them were able to do it comfortably.  The others just wanted to keep up the Joneses and had to sacrafice a lot to live in that home.  To me it wasn't worth it.  I have a nice Townhome in a working class section of Staten Island.  It's not fancy, but a nice old safe neighborhood.  It's just me my wife, daughter and dog and we are happy that we are not struggling to live there.  Also, in two years I will have the mortgage paid off at 47. 

Also, read what Dave says about mortgage tax deductions.  It is a financial myth that is simply not as great as some think it is.

Finally, I truly believe if this generation lived like our Grandparents, we would definitely not be in the mess we are in today.  I saw this coming several years before it did.  My wife constantly reminds me of that and now thinks I'm some financial genuis.  LOL.  It's just common sense, I saw McMansions being built everywhere I turned and I just knew these people were mortgaaging their lives away. 

Not to be a downer, we all had a huge wake up call and it's time to rebuild.  Good Luck on your journey and I think leaving that big mortgage payment behind will definitely give you a huge headstart.