Dave Ramsey Total Money Makeover

[Gunslinger]

Just wondering if anyone has read this guys book or caught him on his radio show.  

If not for those of you like me that have debt problems I HIGHLY recomend this book for you.  Basically throughout the book he tells you that America has been brainwashed into thinking debt is a tool that you can use to create wealth.  He also talks about a VERY GOOD plan to become completly debt free through hard work and determination and stay that way.  I love this quote "the barrower is servant to the lender"

or: (i'm paraphrasing)

"most people pay on average $398 a month for a car.  Once that car is paid off they more than likely trade it in for a new car and again make payments on it.  If you invested $378 per month from age 25 to 65, a normal working lifetime, in the average mutual fund averaging 12% (the 70 year stock market average), you would have $4,447,084.01 at age 65.  I hope you like the new car!"

I havnt heard his radio show but his book is really good and highly recomended.

[FUNKED1]

And if you die at age 64 you get jack ****.  I hope you like the nice numbers on your bank statements.  

[maslo]

well funked its way better to leave big money to your children that leave them big depts

isnt it ?

[Swager]

12%!!!!  Id love to see a mutual holding at 12% for 40 years!

Calculate more like 5-7%.  

Is the cost of living taken into account for this %?

I invest alot and if I break $750,000, I'll be lucky!

[Gunslinger]

Originally posted by Swager
12%!!!!  Id love to see a mutual holding at 12% for 40 years!

Calculate more like 5-7%.  

Is the cost of living taken into account for this %?

I invest alot and if I break $750,000, I'll be lucky!

Even at 7% your looking at $1,146,544.55

Your still missing the point.  Maybe this perspective is better

Would you consitantly take out a 60 month loan at 6% to buy a stock at 25 only to sell it at 12 at the end of the loan.  Isnt that comparable to buying a new car?  

Point being that New Cars are a BAD investment!  But this is just one example in the book.  

And funked I'd rather leave my children wealth verses debt any day

[RedDg]

Originally posted by Gunslinger
love this quote "the barrower is servant to the lender"

By the way, this quote is also found in the Bible.  Just another piece of wisdom in the Bible that's as true today as it was then.

[maslo]

in whitch chapter of Bible can i find it ?

[RedDg]

Proverbs 22:7: "The rich rule over the poor and the borrower is servant to the lender."

[Gunslinger]

Yea he quotes the bible alot in his book, but not from a faith standpoint but from a wisdom/teachings standpoint.  In other words he's not pushing religion down your throat just qouting some of the bibles good teachings.

"A good man leaves an inheritance to his children's children" Prov. 13:22 NKJV

I'm still curious if anyone has heard this guy on the air?

[Dingbat]

Since my wife is about to get her orders, we are in the process of selling the house which clears our truck and car payments.  I don't have any other debt than that.  I already have a job lined up as soon as we get to AZ.  So I guess I'll be sitting pretty soon

What's the title of the book?

[FUNKED1]

I don't have children, don't plan on it any time soon.  I doubt I'll see 60.  I'll save some money but not much.

[Gunslinger]

Originally posted by Dingbat
Since my wife is about to get her orders, we are in the process of selling the house which clears our truck and car payments.  I don't have any other debt than that.  I already have a job lined up as soon as we get to AZ.  So I guess I'll be sitting pretty soon

What's the title of the book?

Sounds like u are doing well then.  Is your wife in the service?  If so what base ya'll going to?  The title of the book is listed in the post but I guess your just being smart ***

[Cougar68]

My apologies for dredging up a two week old post.  I just finished reading the first couple chapters of Ramsey's latest book and figured I would search the BBS' and see what other people were saying about it.  

Dave's radio show is based out of Nashville, where I am, so I definitely get the opportunity to listen to his shows.  They play them on the radio and also have a live TV feed on one of the digital cable networks.  In the show he basically gives the same info that he gave in his books (he has a few others out as well that are great reads) but you get a chance to hear how his advice gets put to use.  Hearing the real life situations of the callers and seeing how the strategies apply has been helpful for me in applying it to my own situation.   If he's not on in your area you can listen from his website at http://www.daveramsey.com

Some of his stuff is pretty radical and has to be taken with a grain of salt.  But the foundation for his advice is rock solid.  It's mostly common sense stuff, but a very unique approach to it.  My wife and I have been trying hard to get through our debt using his approach and it's been great.  It's a good feeling to have the weight of debt lifted off your shoulders and being able to pay cash for anything you buy.  

Cougar  <------will never see another credit card/car payment for the rest of my life  

[Dingbat]

Originally posted by Gunslinger
Sounds like u are doing well then.  Is your wife in the service?  If so what base ya'll going to?  The title of the book is listed in the post but I guess your just being smart ***

Doh! I should have guessed that was the title  I work 13 hour shifts on the weekend, I was probably a little fuzzy in my first reply...

Yep my wife is an E4 in the US Army pending citizenship.  Once that's taken care of she'll be off to OCS.

We should be heading to Ft. Huachuca in Arizona sometime mid to late april.

[Curval]

Originally posted by Gunslinger
Basically throughout the book he tells you that America has been brainwashed into thinking debt is a tool that you can use to create wealth.

I have a couple of friends who feel the same way.  Recently they had a decision to make...sell a piece of property and use the money to finnish a 2 apt unit they own, or borrow the money needed, finnish the property and therefore retain their asset.

They decided to sell, because they hated the idea of paying (compounded) interest on a loan and they didn't want the debt.  They also decided to do the work themselves to save cash.

The thing is...they only needed $50,000...they got $300,000 for the land.

Now...they sold their asset, the work is still not complete, and they are earning virtually nothing on the excess cash they are holding.

Under my plan they would have hired a crew, had the place finnished and rented and they would be almost 2 years into a five year loan that is paying for itself (interest and principle).  Three years later they would have paid off the loan, enjoyed the use of the bank's money at a very low rate of interest, begun to bank the rental income and they would STILL HAVE the land they have now sold.

Debt "is" a tool to create wealth...you just need to be smart about it.