Live Debt Free w/ Dave Ramsey
Every now and then I get on a personal mission to make the world a better place. Over the past few months, I have been listening Dave Ramsey on my iPod. He has a very popular radio show syndicated across radio stations throughout the country. It's not yet in our area (hint, hint) but he has a commercial free podcast available for download on iTunes.So what's so great about this guy?
He swears off debt and suggests you pay cash for everything. Let me say that again, everything. The 100% down plan when you want to buy a house. Credit cards don't exist. If you want a new car, you can buy one once you have saved up for it. Actually, new cars lose 25%+ of their value in the first 3 years so he would never buy a new car, even if they offered 0% financing. To simulate the effect of how much you're losing on a new car, Ramsey suggests you "throw a $100 bill out the window on the way to work every day".
He goes on to illustrate that the average car payment in America is $374 per month. If you were to drive a quality used car (that you paid cash for) from age 25-65 and invested that $374 in a growth stock mutual fund (averaging 12%), you would have over $4 million dollars when you retire. Yes, that's 4 MILLION dollars. Do you really need that new car now or could you sacrifice to build so much wealth that you could give cars away later? It does make you think.
It takes extreme dedication and sacrifice to ignore the "I want it now" mentality that we've been told is normal by banks and credit card companies. They have sold us so long and hard on Home Equity Loans, Debt CONsolidation Loans, car loans, and credit cards that we can't even imagine life without them. Even worse, nearly every student now exits college with a student loan, sometimes for hundreds of thousands of dollars. Is this any way to start your new life, with a heafty loan payment?
Dave Ramsey made me think twice about how I manage my money and I urge you to read his book or listen to his podcast (the iTunes version is commercial free). He will change your life and the way you think about money, I guarantee it. I have purchased several copies of his book specifically for others to read. If you'd like a copy let me know.
Labels: dave ramsey, debt consolidation, home equity loans
posted by Alan De Keyrel @ 9:05 AM
6 comments
6 Comments:
Great Post!!
Great work, keep it up.....
There are many things to be said though. It is very easy to say: "save now" and then "enjoy later". The truth is most people saving now will experience some kind of difficulty before they get to the "enjoy later" and they will use it up. When you don't have your mind searches for everything available and therefore living rich is also important.
There is absolutely nothing wrong with buying a new car, instead of throwing your money away in car repairs.
Jenn,
Debt Consolidation Options
Dear Jenn (Anonymous),
Thanks for the shameless plug to your debt CONsolidation service. I hope our blog readers never use your service.
You should read Dave's book sometime so you understand the cost difference between "throwing your money away in car repairs" and "depreciation". The latter costs you much more.
Thanks for visiting.
Jenn said:
"The truth is most people saving now will experience some kind of difficulty before they get to the "enjoy later" and they will use it up."
So if they run into that same difficulty while financing the car, how do they make the payments???
Jenn said:
"When you don't have your mind searches for everything available and therefore living rich is also important."
Um, what?!?
Jenn said:
"There is absolutely nothing wrong with buying a new car, instead of throwing your money away in car repairs."
So you would rather throw your money away on 60% depreciation(definite), finance charges(definite), and higher insurance rates(definite) than *maybe* have to spend a bit of money on repairs? And the repair cost assumes that either you bought a total POS, or you're really hard on cars anyway. $374 per month in new car payments totals over $4000 in a year. When was the last $4000 repair you had to pay for on your car?
Yes,it the fact that to save money now and later enjoy the pleasure.But save money their needs to be proper planning and strategy.Saving money is not a easy task,their need some limitation to spent the money.These article promotes and encourage to save more money with proper planning.
priyan
Debt Consolidation
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