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That ain't no schit!

My parents were divorced. Neither taught me much about finance. Grandpa was very well off, never really taught me much as far as finance.

Took me a while but I started to see why grandad and one set of parents did very well and the other just seemed to scrape by at times.

I scraped for a few years until I quit trying to keep up with the Jones'.

Also started saving $$ for something I wanted but once I got to saving I realized I didn't want/need whatever it was I started saving for. Did pick that up from grandpa when I was actually listening to what he said.

I have some friends who always have 2 newer vehicles, newer boat, SxS and anything else they wake up and think they need. Been bankrupt 2x and never change their lifestyles while always worrying about money.

I have no use for someone who won’t educate themselves, as the information is easily available to those who want it. Ramsey is smart in that he has learned to pander to those uneducated people who can’t seem to learn how to not overspend. Paying off a house, especially when interest rates have been low for so many years? Absolutely stupid. I’m at 2.9% and the market has averaged 8% historically. If I paid it off that would be a loss of 5% per year plus the tax deduction on the interest……No credit cards? Available credit and oldest credit lines all affect your credit score. You know what high credit scores lead to? Lower interest rates on loans. Not to mention most cards now days pay 4% on gas purchases and or food purchases, so your giving up those savings by not using a credit card, though you should never carry a balance. Buying used cars? Only if you know exactly what the history is on them. You’re better off buying a new Toyota with a low interest rate and driving it for 250-300k miles…. 8% withdrawal rate on 401k’s? Most financial planners and professionals will suggest a 4% withdrawal rate, because 8% counts on historic averages, and totally ignores that averages are just that, averages. You don’t want to be forced to withdraw money when the market tanks. Ramsey completely ignores that. I could keep going and going, but Ramsey panders to the clueless, so for that, he is smart. But if you want to build wealth, his methods are about as stupid as you can get.

Haha, Shyte, it was given to me by a customer, after helping them out !!!

To "toys" !!!

Got lots, but .............................................

All old & paid for in cash !!

3 boats;

Mid 80's 12 ft Naden, 2 x working 9.9hp outboards & a trailer - Paid $1600
90's 14 ft Lund deep & wide, 1998 25hp Suzuki & trailer - Paid $2600
Late 90's 17 ft Lund Pike & 50 hp Merc & trailer - Paid $3200

Quads;

1991 Honda fourtrax 350 - Paid $1600
1988 Honda fourtrax 350 - Paid $1000

Sleds;

1994 skidoo MXZ 470 - Paid $1600
2009 skidoo Tundra 550 fan - Paid $3200
When I bought this, I gave away my 1994 skidoo 503R to an employees kid.

Camper trailer;

2007 Trail lite hybrid - Paid $3800
8 x 12 ft Ice Shack - Paid $1500

Debt;

4 years into a very manageable mortgage on our new place.
No business debt, other than monthly payables & Deb's 2021 Subaru is leased through the business.

Doug asked me many years ago, why I had all old shyte, not new like everyone else.
Told him 2 reasons: First, because I can work on & fix the old stuff - 2nd & most important - You only buy toys you can afford to pay cash for !

Having some sort of financial class in high-school would help some kids I think.

That and a good guidance counselor.[/quote]

Don't sell yourself short Jim - It comes from HOME / PARENTING / COMMUNICATION.

From what I've seen, you'll not have problems with the Kiddos !

The absolute FIRST way to build "wealth" is to learn how be debt free. Dave teaches that better than most. While you are right about some things, you are missing a huge point about "educating themselves". When some folks have not gotten off a six block area their ENTIRE life it's hard for them to educate themselves on the finer things in Paris, France. (not to be confused with Paris, Texas)

Try not to paint with such a wide brush.

I used to do exactly that, but I've spent the last 6 years or so being "educated" on how people stay in generational poverty. Once you sit down and literally share a meal or two with folks you start to understand. Some we have pulled through, some we never will. Some actually like being willfully ignorant. Knowing would make them to be responsible.

Nice 99's

Son and I discussed our finances a couple of years back.

When I told him what his mother and I make[salary]
he said "no way, you couldn't have bought this property making that"
I asked him "have you ever seen us pull a sticker off of anything with wheels on it or buy a 'new' boat like so many of your friends families?"

Like Roy Rogers, and Popeye the sailorman, I yam what I yam

We live in a house I built in the late seventies. Working in the wood industry, lumber and plywood, came at substantial discounts. It's a moderate four bed, two bath. Haven't had a house payment since 1988. One garage and one shop built as dollars would allow.
When I was still working as the (boss) , I drove my pickups an average of 17 years. Guys that worked for me, one in particular, had five new pickups, while I drove the same one year after year. When I hired a new employee, and they showed up with a new truck in a month or so, I knew that they were committed to four or five years at work.
We aren't rich, our children make their own way. Successfully I will proudly add. During my last ten years of work, I made sure that new toys were purchased and paid for. Boat, camp trailer, four wheelers and such. I always figured what ever class people put themselves in, was what they desired or settled for. I will say I'm still buying ammo, primers when available, and lots of fishing gear. Low class not aspiring for anything else at this age, just enjoying life!

Total BS! If you want to make serious money, you have to borrow or get investors. Paying off a 2.9% interest rate on a house when the market averages 8% is not a way to build wealth. It’s financial suicide. I have a saying. “You can make a LOT of money off OPM!!” The real-estate market is a perfect example. I’ve carried some serious debt over the years while OPM paid my mortgages, and I built wealth. I’m noticing where the real-estate market is heading, and I’m about to take some large debts to diversify my portfolio. Debts that will pay off in spades.

JJ's going to own us all one day!

Book it!!!

I agree that a consumer math course should be a mandatory requirement of high school kids, as many of them, probably a majority of them, have no clue about how to manage money, credit, and debt.

Debit is, for some people, an addiction and like drug addiction, credit/debt addiction can be easy to start and difficult to stop once you start down that path. Just as drugs make the user feel good, rewarding yourself with new stuff bought on credit feels good too.

Nope. But I do understand Ramsey is a snake oil salesman. I bought my first house for $189k in 2002 during the liar loan days. I was 25 and making about $30k a year and there was no way I could afford it. BUT, I had two college roommates looking for a place to live so I rented out two rooms to them for slightly under market value. They got cheap rooms and I had 90% of my mortgage paid for. 6 years later I took out a HELOC against the house to buy another house after I got married. I rented my original house out to a needy single mom who paid cash, and I was positive cash low on the house. That loan gave me the 20% I didn’t have in cash for the down payment to purchase another house that I lived into when I got married. Fast forward to 2015 and we were looking for a lot to build our dream house. This time, I had the cash for the 20% down, but the market was doing great and interest rates were dirt cheap. I took another HELOC out to purchase a lot (I had paid off the first by that time) and took on more debt yet. We purchased the lot at about 3-4% on the HELOC, while the home prices and lot values were going up a hell of a lot faster than 3-4%. When it came time to build my house, I sold both homes (one on each coast), threw the money into the market, and took out a dirt cheap loan to build the house. I did all that going into debt, while using OPM to build my wealth. All that on an original investment of about $20k. That $20k investment is now worth close to $2 million, in just 22 years.

once again I UNDERSTAND, but likely 35% of those plagued with generational poverty cannot spell portfolio. I have two properties now at 2.65. Your point is understood to those that have been given the knowledge to understand.

If I ask a bum living under a bridge to give me a thousand bucks, it's a high probability he can't.....................unless I give him a thousand bucks first.
People cannot give something they have never been given.

And we should stop asking them for something they don't have until they have it.

Simplepeddler what WE fail to grasp is that people like JJ don't care one iota that some may have never been given advice to help navigate life.[those to the left only 'claim' to be kinder & gentler]

Luckily [for me],
it was explained in a crude way early on:
"do you want to be a slave to interest, or have interest be a slave to you"

Nobody ever force fed me this stuff. I learned it myself. It’s not hard, and anyone can do it.

I paid off my mortgage three years ago. Strictly speaking you are right, but my industry is so fluid I wanted the financial security that comes with no debt. That way I was free of the fear of foreclosure as a result of a layoff.




P

Education level?
Parents education level?

It's not only buying a new boat or car that "kids" need to be taught to wait for.

I've always cracked up, in a sad sort of way, to see some 18-20 year old with a schiedtbox Hyundai or Kia and $4000 worth of wheels and tires on it. Likely financed.

They need to be taught to go to the goodwill store and get a used sofa, a used coffee table, and if need be get a hand me down TV from someone when they get their first apartment or house. Not only be taught to do that, but be taught it's OK to do that.

Then again, that might be...........................................BOOMERTHINK?

Mom had a high school degree, dad dropped out in 9th grade. I couldn’t afford a regular college for 4 years so I did 2 years at a CC with a sport scholarship before transferring to the cheapest state school there was. First one, and still the only one in my direct family with a bachelors degree. Econ was my minor, but due to stupid mistakes, was actually only 3 courses short to double major. I figure once I had my main degree, double majoring would only lead to more drinking and chasing tail, and my chances of double majoring would be greatly dimished. 🤣. Plus, I was ready to go to work and make money.