Aye fukk Dave Ramsey

[Originalman]

Thats great advice though. His philosophy on personal finances is right on.

It’s when he ventures in to public policy that he fukks up. $1400 can bring some relief to people and stimulate the economy. The added unemployment benefits and student loan forgiveness achieves the same goals.

But more people should follow his advice on living below your means and not incurring debt.

Yep exactly his concept of managing a budget and not blowing money on dumb shyt. Or getting 100k in loans to get a damn 35k job are some of the best out there.

His concepts of financial responsibility pretty much guarantees you will have money in the bank account. No debt and 6 months to a year of savings. Can't go wromg with that advice no matter who it is.

Where he misses the mark is he isn't gonna show you how to invest or make your money grow most effectively.

But getting out of debt and loans. Yeah dave will teach you that with the quickness.

But IMO getting out if debt is much than learning how to make your money grow.

 

[Goat poster]

He's always been like this, he straight hates poor people. Will never acknowledge how privileged he's been and how many second chances he's been given after his own fukk-ups. I wanted to do a full-post exposal of him sometime cause a lot of the shyt he says is total bullshyt and straight comes from someone who can't imagine actual hardship or lack of opportunity in life.

Could you go into depth a little about his second chances

 

[kevm3]

It was a cold statement by him, but there is some truth to it. What will $600 to $1400 cover? Groceries or one month rent? What happens after that month is up? That's right, the people are in the exact same predicament.

People SHOULD get that money because it's a safety net , but it's a very thin safety net that won't prop up Americans for long. After that month of rent is paid or those groceries procured and the economy is still shut down and this person doesn't have a job, then what will they do?

 

[King Crimson]

So you got nothing to say aside from dikk sucking privileged cacs. Heard you. Be good, my guy.

 

[Originalman]

Couple of things. Dave is a good ole boy, a red neck and a big time conservative. He has always been all these 3 things.

At the same time he is one of the best out there for giving a plan on how to get out of debt or find ways to dig yourself out of debt.

I compare it to how science looked at the nazis. Yeah they were racist, sick perverted murderes who wanted to rule the world. But after WW2 if you needed to learn rockets, aeronautics, medicine or how to develop weaponry there was no one on the planet who knew this shyt like some nazi scientist.

So with dave all his negatives aside. He is no one best out there who can show people drowning in debt how to get out of debt.

The thing is what he talks about is no more different than what folks in 3rd world countries do or southern rural black folks did from the end of slavery all the way to the 1960s and what muslims do as well.

They didn't or rarely paid for shyt on credit outside of a home or maybe car. They worked 2 or 3 or 4 jobs and doubled up payments to pay off a home or car. They sent their kids to colleges they could afford not taking out multiple loans to send their kid to a school that they couldn't afford.

If yall ever on youtube look up this one video of an old black man who was born into slavery. They did an interview with him in the 40s or 50s. They asked him how he was able to able to get him home and car. The elder basically said I saved my money and paid cash for everything, I didn't try to keep up with the jones (buying useless things I couldn't afford), I paid everything cash and never took out a loan.

He felt that taking out loans basically set everyone up to be in a form of economical slavery because they would always owe the bank money. Now realize he came from a time where you couldn't put down 5 to 15 percent on a home (from the 1800s to early 1900s). You had to put down 50% or more to buy a home. Until the government came up with deals with the banks and mortgage companies to put down small amounts like we see now which started in the 40s and 50s.

 

[Originalman]

It was a cold statement by him, but there is some truth to it. What will $600 to $1400 cover? Groceries or one month rent? What happens after that month is up? That's right, the people are in the exact same predicament.

People SHOULD get that money because it's a safety net , but it's a very thin safety net that won't prop up Americans for long. After that month of rent is paid or those groceries procured and the economy is still shut down and this person doesn't have a job, then what will they do?

Yep its a harse statement but thats his MO. I don't know why folks are shocked. This a dude who tells people to pay off credit card debt instead of filing for bankruptcy. His view is if they don't feel the pain they will never get in debt again.

Or if they save the 1k emergency fund themselves instead of someone giving it to them. They will then be more serious cause they did it themselves and it will boost their confidence.

 

[AceMan]

but if the internet is only 5% why would you pay off the car if early if you are able too?


That money could be put in a index fun and get atleast a 7% return each year

He has the most toxic work environment






This is the reason I don't like Dave ramsey.

Last November I owed about $10K on my auto loan and I had $10K laying around.

Dave would have told me to use that $10K to pay off my car and have "financial freedom".

I instead used that to buy 22 shares of TSLA at that time and those 22 shares are $20K now

Again, ramsey never shows people how to grow capital in any way. But he's really good at selling $10k courses to people in financial ruin (mind you that's possibly several semesters at a community college)

Yep exactly his concept of managing a budget and not blowing money on dumb shyt. Or getting 100k in loans to get a damn 35k job are some of the best out there.

His concepts of financial responsibility pretty much guarantees you will have money in the bank account. No debt and 6 months to a year of savings. Can't go wromg with that advice no matter who it is.

Where he misses the mark is he isn't gonna show you how to invest or make your money grow most effectively.

But getting out if debt and loans. Yeah dave will teach you that with the quickness.

This is all correct.

 

[Kyle C. Barker]

His investing advice is buy "good growth" mutual funds which he claims to return 12%.

I've watched several of his videos hoping he would name the funds that he's invested in but he never does. Probably because he knows he's out of his depth there when it comes to doing the due diligence to determine what a good fund is going forward. He probably relies on others to pick for him

Could you go into depth a little about his second chances

I don't know his while history but he's from a well todo family that was involved in real estate (sound familiar? )

At 22 years old he was able to use his families connections to a particular bank to secure $1.2 million dollars in rental properties. Mind you this is decades ago with inflation That's about $10 million in properties today. Some of those loans were even 90 day loans. Said bank got bought out by a bigger bank and with the change in management the new bank was wondering why a 22 year old kid had these loans so they called him out and made him pay up. Long story short that's how he went bankrupt and he uses that story to relate to the people that call into his show, because hey, he was once just like you

After the bankruptcy he formed the lampo(sp?) Group and started using that vehicle to push his financial advice and sell his expensive ass classes on air.

 

[Originalman]

This is all correct.

Yep but I think the key would be to never have a car note and pay cash for your car. That way you could have never had a note. Had a cheap 3k car and maybe been able to throw even more money in an ETF or Tesla stock.

Only using cash IMO is one of the best tools out there. Its a reason muslims don't believe in paying interest on things. Somethings you just usually have to get a loan on such as a home. But we got folks who done ran up credit cards with 20 percent interest. And all they got on there is charges for clothes, bills and materials items.

 

[Professor Emeritus]

Car loans are damn near essential. But I was talking about debt for education and real estate etc. Most people have to take on some form of debt to improve their circumstances.

Back in 2001 I actually took the bus for the first 8 months I was working until I saved 13 grand to buy a car cash. Have never taken out a car loan in my life and neither has my wife. I would recommend that if possible.

But I agree there are people who can't realistically improve their situation without debt. It's how the country is structured. We should seriously address that.

Dave Ramsey wasn't saying a thing when Republicans came thru with that Trump tax cut that added trillions to the national deficit.

This is their playbook.

Money for all their rich friends when they're in power. Clutching their pearls when someone gets $600.

He actually supported those tax cuts. But he talks shyt about helping the poor.

DAVE RAMSAY'S ADVICE CATERS TO MID-UPPER MIDDLE CLASS PEOPLE WHO LIVE ABOVE THEIR MEANS. HE HAS NO GRASP ON THE REALITY OF LIFE FOR PEOPLE ON THE POVERTY LINE.

This is the key. I actually agree with his general philosophy of avoiding debt at all costs. But all his good advice could fit on a two-page pamphlet. When people actually have hardship or lack opportunity in their life he has no real answers. He didn't believe in oppression or systematic racism, he thinks everything is as easy for others as it was for him.

I should also add that he's obsessed with money. He didn't have any concept of work-life balance or pursuing something meaningful, he's always talking about the money alone. I've heard him basically tell people to screw their family life or give up their dreams solely to make more money.

 

[kevm3]

Yep its a harse statement but thats his MO. I don't know why folks are shocked. This a dude who tells people to pay off credit card debt instead of filing for bankruptcy. His view is if they don't feel the pain they will never get in debt again.

Or if they save the 1k emergency fund themselves instead of someone giving it to them. They will then be more serious cause they did it themselves and it will boost their confidence.

Yea I can agree with paying off your debts, because although there are emergency situations, a lot of debt comes out of HABIT. Filing for bankruptcy might discharge the current debt load, but those same habits that got the person in debt in the first place are going to get them into debt again, but the problem is they will be unable to get the loans they need or will be forced to get extremely high interest rates because their credit score is going to be trashed.

Dave's advice is catered to the average American citizen, and I can agree with him that it's better for them to get out of debt first. Why? Cashflow problems and discipline.

Investing in index funds and all of that is great over the long term, but you aren't guaranteed that 10% annual return. You only get a return when you cash out, and that percentage is an average over the long term... so you have to let your money sit and you have to cash out at the right time.

Most people simply do not have the discipline or reserves to just let their money sit in these accounts for decades. What happening more times than not is they might stuff some of their money into that index fund, an unexpected event like the Corona virus happens, somebody loses their job and they need to dip into their savings/investments to keep on paying the bills. Thus, they are stuck with whatever the market is giving them at the current moment, which could very will be them selling at a loss. Also, if you have a high interest loan, like some of these credit cards, you absolutely better pay that off first. If you have a guaranteed 15% to 20% going against you, you are going to forever be in debt if you let that sit around.

I can agree with a more investment heavy approach IF you have low interest loans and you just have huge cash reserves and you can sit tight for a while if you lose your job. Otherwise, people need to focus on paying their stuff off unless they want to get spanked by interest.

In regards to college, it is the correct assumption that it makes ZERO sense taking 100k in debt for a 40k job. I was blessed to have went to community college for my first two years and was able to live at home. People need to stop looking at college as some for sure solution and carefully analyze the reward/risk. If your degree isn't going to aid you in procuring a high income job, then don't waste your time going. All of that nonsense about you go to college to learn how to think is nonsense. You can watch youtube videos and take courses off of udemy and save tens of thousands if you want to do all of that.

 

[Originalman]

Yea I can agree with paying off your debts, because although there are emergency situations, a lot of debt comes out of HABIT. Filing for bankruptcy might discharge the current debt load, but those same habits that got the person in debt in the first place are going to get them into debt again, but the problem is they will be unable to get the loans they need or will be forced to get extremely high interest rates because their credit score is going to be trashed.

Dave's advice is catered to the average American citizen, and I can agree with him that it's better for them to get out of debt first. Why? Cashflow problems and discipline.

Investing in index funds and all of that is great over the long term, but you aren't guaranteed that 10% annual return. You only get a return when you cash out, and that percentage is an average over the long term... so you have to let your money sit and you have to cash out at the right time.

Most people simply do not have the discipline or reserves to just let their money sit in these accounts for decades. What happening more times than not is they might stuff some of their money into that index fund, an unexpected event like the Corona virus happens, somebody loses their job and they need to dip into their savings/investments to keep on paying the bills. Thus, they are stuck with whatever the market is giving them at the current moment, which could very will be them selling at a loss. Also, if you have a high interest loan, like some of these credit cards, you absolutely better pay that off first. If you have a guaranteed 15% to 20% going against you, you are going to forever be in debt if you let that sit around.

I can agree with a more investment heavy approach IF you have low interest loans and you just have huge cash reserves and you can sit tight for a while if you lose your job. Otherwise, people need to focus on paying their stuff off unless they want to get spanked by interest.

In regards to college, it is the correct assumption that it makes ZERO sense taking 100k in debt for a 40k job. I was blessed to have went to community college for my first two years and was able to live at home. People need to stop looking at college as some for sure solution and carefully analyze the reward/risk. If your degree isn't going to aid you in procuring a high income job, then don't waste your time going. All of that nonsense about you go to college to learn how to think is nonsense. You can watch youtube videos and take courses off of udemy and save tens of thousands if you want to do all of that.

Rep + dap breh. You spitting nothing but the real in that post.

I personally know folks who had stocks but no emergency funds cause they put it all in stock. Then when covid hit they lost their jobs and had to sell stocks at a loss to get some cash in their hands.

Yep and them days of going to college just to get any degree (general studies and basket weaving) then coming out and getting a good job are over. So you got folks graduating with 30 and 40 and 50k in loans and can't even get a job cause their degree is worthless in the modern world.

One more thing folks don't realize when they have them loans or credit cards. It ain't the loan thats kills you or the debt...its the interest on the debt that is basically sucking away any potential wealth that you can create. Your debt might be 40 a month but the credit card company charging you 40 plus 30 in interest. Or 40 plus 30 in interest plus 20 cause of late fees or over the limit fees.

Or that student loan is 300 a month plus 8 dollars a day in interest compounded daily. But due to consolidation you are only paying the interest. So your debt never goes down because you never pay into the principle.

 

[Responsible Allen Iverson]

what financial advisor would y'all recommend instead?

Just listen to the "financial experts" in this thread

 

[winb83]

Back in 2001 I actually took the bus for the first 8 months I was working until I saved 13 grand to buy a car cash. Have never taken out a car loan in my life and neither has my wife. I would recommend that if possible.

But I agree there are people who can't realistically improve their situation without debt. It's how the country is structured. We should seriously address that.





He actually supported those tax cuts. But he talks shyt about helping the poor.




This is the key. I actually agree with his general philosophy of avoiding debt at all costs. But all his good advice could fit on a two-page pamphlet. When people actually have hardship or lack opportunity in their life he has no real answers. He didn't believe in oppression or systematic racism, he thinks everything is as easy for others as it was for him.

I should also add that he's obsessed with money. He didn't have any concept of work-life balance or pursuing something meaningful, he's always talking about the money alone. I've heard him basically tell people to screw their family life or give up their dreams solely to make more money.

Took out a $9K car loan over 5 years at almost 3% interest. In Oct 2021 I'll be 2 years into that loan. Don't regret it one bit. Put $10K down on the $17K car. Payment is $162 a month. I pay that payment and pay myself $162 into a high yield checking account that doubles as an emergency fund. This year I took $500 out but I've got about $2500 saved up to possibly pay off that car whenever I want past 2.5 years.

I had to pay $700 to borrow $9000. To Dave Ramsey that's madness. I've made investments in the last 14 days that have more than covered that $700. I've had that car 17 months.

One of my stocks today generated more than that 5 year loan cost me.

 

[Lamar Givens]

Dunno how dude got so far with the simplest financial advice, plus the fact he sprinkles in Christian bs

What Christian bs???