it's the mind set. it's telling myself, i'm gonna change. so basically i go step further than dave ramsey's method.
Get out of debt brehs
- Thread starter newarkhiphop
- Start date
it's the mind set. it's telling myself, i'm gonna change. so basically i go step further than dave ramsey's method.
Dave Ramsey isn't someone who should be taken word for word. He has some good ideas that are useful but at the core of all his ideas is the central theme of an addict. Think of an alcoholic who has to cut alcohol out of their life completely because they can't control themselves. That's Dave Ramsey's attitude towards debt. A much healthier relationship with alcohol is I can drink it but I can put it down whenever I want. Almost everything he says is circular logic that leads back to the same result that' his way is the only way and he's always right.
I mean you're an investor. If you can get a 30 year mortgage that's under 3% and you can make 10% maybe more in the market are you gonna buy a house cash and forgo putting that money to work in the market?
desperate situation calls for desperate measures. i was desperate and something had to change. i had no control over my life.
i'm speaking to those who are not in control. the one that can't sleep at night.
mortgage? that was a least of my worries back then.
for those who are in control and can manage to deal with debts - much kudos to them. just live below means and invest every penny. someday they will go debt free. it's the greatest feeling in the world.
cjt11203
Pro
Yeah going as extreme as he is suggesting just leads to relapsing to bad habits.
Rell Lauren
Banned
With yet another student loan moratorium about to kick in, this is the time to pay it down. I paid off all of my student debt in full by the end of last Summer.
Dave Ramsey doesn't deal with the problem head on. He's more about avoidance. Managing credit isn't that hard. It's as simple as limiting your spending to what you have liquid or what you will have liquid by the time the bill is due. I think it's better to deal with the problem head on than avoid it.
He's definitely a very black and white person but his advice is people who simply don't have control over their credit habits. I think his advice is good for beginners that just need to get their house in order. If and once you get more disciplined with credit then you can cut some of the other things he's saying out.
Americans are saddled with more debt than ever so he has a point in looking to eliminate debt all together.
again it all depends on how deep is the hole breh. and by going extreme it actually changes who you are completely. well at least it changed me. i didn't know who dave ramsey was and i was doing his thing on my own and some.
i had bad habits for 15 years. it led to be on a verge of giving everything up. i understood why people have suicidal thoughts.
now i'm on a 8 years of good habit streak. you can say i'm sober for 8 years.
now my life is completely changed. it's good to see that my assets are in the plus column. i no longer accumulate liabilities. only my asset column grows because my money invested are making money for me.
i made nearly half a mil last year and i didn't work. it's good to see i make money when i sleep.
i don't consider myself rich. not at all. i'll consider myself rich when I 10x from where i'm now.
but i can now understand how rich folks do their thing. i never understood it until now. Rich accumulates assets. Poor accumulates liabilities and spend the rest of their lives trying to pay those liabilities. simple and profound. i would've never understood it if i never took those extreme measures.
Last edited:
What does earning income have to do with debt really? Outside of leverage I mean.
Debt is related to how you manage the income you earn rather than the amount you earn. There's people that earn millions annually and get into crazy debt and there's people that make $32K annually and have no debt.
All in all managing debt is about managing resources. All debt isn't bad and all debt isn't equal. To me being debt free isn't better than having a manageable level of debt and properly controlling your finances.
I'm not a huge fan of car loans but for the interest rates I can get I'd take out another one possibly. It's just that I'm not willing to accept a payment on a car loan that's over 5% of my gross income. In order to keep that low of a payment i have to mostly pay cash.
I use credit cards for everything. Use cash back to reward myself. I try to spend responsibly but I can't lie I buy some toys I don't need. My issue is I'm not frugal I'm just cheap. Being cheap does help me save but it's less efficient than being frugal.
i ain't tryna disagree with you. i was that person who made good enough money but spent twice more. i never had a problem not making money. i had a problem managing debts which quickly got out of hand.
i use credit card too. but like you i make money with my credit card. back then i used credit cards because i thought i had no choice. i maxed out 12 credit cards and i was like 24.
again, my extreme measure doesn't apply to you because you can manage your debts.
as long as a person has a strong emergency funds, a good retirement plan, manageable debts then they are in a good shape.
Software
RIP Future Gohan
Gotta go in with a list bruh lol
I put like $4k in spending on 0% interest cards last year and some of it is coming due on April 12th. I got like 1 check before then. I also have my normal spend on cards and the statements will be due inside that last March check. Forced me to tap reserve money to cover it all cause rent is also off that last check. My COVID money will replenish it.
Software
RIP Future Gohan
Damn you down bad right now. I feel you tho do what you gotta do