Home Forums Hunting & Shooting Hunter's Campfire Dave Ramsey's First Baby Step - Save up $1000 Emergency Fund

overreaching at times.

overreacting..............hardly.

Geno

Yeah, scrimp and save every penny so you can leave it for someone else. Me, I'm going to enjoy the ride.

Keep an eye out for other life changing links like: "

"How to Wash Your Hands"

"Chewing Gum Whilst Walking"

and

"Shoelaces, They're Not Just for Grownups Any More!"

Imagine that... a guy selling something to people who cant afford anything... and he’s getting stupid uber rich doing it.. and the masses praise him as if he was sent here from the heavens.

Depreciation is real.

There is no such thing as zero per cent financing. There is interest built in to the price or there's a hook somewhere in the bait.

The mind boggling thing to me are the people leasing cars.

For a very small subset of people it makes sense (low mileage drivers who enjoy news cars such they would buy/sell every couple years anyway).

I would think that a whole lot of people look at their available credit as an emergency fund. How many people have a credit card “just for emergencies”.

Ain’t saying it makes financial sense.

I’ve long since moved on. I listened to him in 1998, 1999-2001. Went to a show of his around 2001, drank the kool aid...etc etc. We paid the house off , never financed another car,

Nothing earth shattering about what he says, but when you hear it and realize you’re a slave to all this crap, it wakes a person up.

Have to be living in a cave and dragging your knuckles if you haven’t heard of the dude.

Jim, you can't buy any more guns that way.

That's funny. I like Dave, but I think there might be a Jew in the woodpile, because Dave does like to make a Shekel or two. Yes he has a book he will sell you. And a set of cassettes. And he is doing a seminar soon, coming soon to a town near you! Give your Shekels to Dave!!!

Yes I like to listen to Dave. His two main points to build wealth are:

1. Don't get buried in student loan debt. I remember a guy called, he was 26 years old and had $43K in student loan debt. He was working at Burger King and had a 4 year degree in Anthropology. He said he was on the Dean's list.
And Dave said, "So you had a 4.0 average. You are a bright boy, huh? Well then, why, when you were a high school senior, didn't you do a little research, and find out that you can't get a job with a 4 year degree in Anthropology?"

2. Don't buy a new car and don't finance a car. Dave says, you cannot afford a new car unless you have $1 million in assets.
Dave has the statistics, the average payment for a new car is $508, and the average length of loan is 78 months. Six and a half years.
What a fortune a person is paying in interest during that time, and every year, the car drops $3 K in value.

Dave's advice is just common sense to most of us, but, there are a lot of stupid people out there who really need Dave's advice. He is doing the world a favor.

You're right. I tried to find who did say that but couldn't. Ramsey said to not have a car payment at all. Drive a beater for a while and save what you'd be paying for car payments until you have enough to pay cash for the car you want.

If you look at Ramsey's history he screwed up financially about as bad as humanly possible at one point. Most of his advice is geared toward helping people not fall into the same mistakes he made. As a rule his advice is good, but more conservative than most financial experts would recommend. Probably good advice for someone has already screwed up to get back out of debt. Probably not the best advice for people who have not screwed up and are looking to actually make money.

Dave likes to cite examples of how you can throw away money buying a new car. You have a 30 year old couple, they each buy a new car every 3 years. I have known couples who do that, not rich people, a paramedic and his wife an xray tech.
Driving the car off the lot, costs $3 grand in immediate depreciation, because now it is a used car. Increased insurance cost, increased tax tag and title, and annual depreciation. A loss on each car of about $6 grand a year.
$12 grand combined, lost each year.

Whereas, do like I did last year, I am a good Dave Ramsey boy, I bought a 9 year old Nissan Frontier, always garaged looks like new, paid $16K cash for it.
Virtually no depreciation, maybe $500 a year.

So the couple is losing, let's call it $10K a year more than the Dave Ramsey guy. Take this couple to age 60, they have lost $300K over the course of their lives, for the privledge of having the new car smell.
But that's not all. Dave loves the stock market, these indexed stocks. Average annual return is 12 percent.
If this couple had put the $10 grand each year into the stock market, in 30 years it would have turned into around $1 million.

So there you go, follow Dave Ramsey and you are a millionaire upon retirement, but, buy new cars all the time, you will be broke, and on Social Security when you retire.

We bought a Toyota Highlander last summer. We found a dealer demo with 7k miles, priced $7k below new price. 7k miles is nothing, hardly broken in. The car is immaculate and has most of the warranty left.

I don’t agree. Yes, in a sense, Ramsey’s advice on managing your household is conservative by today’s cultural standard: don’t buy it if don’t have the cash to pay for it, and don’t buy a house unless the payment is comparatively small. Invest rather heavily in retirement and pay off your house quickly. We don’t do that in this society much anymore. You could call that conservative, but I’d rather call it prudent.

On the other hand, Ramsey’s advise on investing is much more aggressive than the investment community “consensus”. Keeping a couple in their late fifties invested in the market is enough to give fiduciaries (and annuity salesmen) the heebie-jeebies.

As far as applying to ranching, you could do it, but it would bean awfully small ranch for a long time....... then again, nobody would ranch today if financial returns were a significant consideration.

I laughed my ass off, one called in years ago, paid $3000 for a monkey.

Used to do a Pets and Money hour.

brokedicks blowing $5k on a parrot, salt water fish tanks

Advice on cars and houses is one thing, but if he tells me that I have to switch from Doritos to the store brand, I'm out.

The greasy Save a Lot generic chips are for the welfare Mamas.

I didn't know people had to be told to save money