Dave Ramsey is not a moron; his central message of eliminating debt is not intended for those interested in rising to B-H investment strategies. Ramsey’s focus is helping the low and middles class Americans who are caught up in personal debt from the abuse of credit card, high interest mortgages, and car loans.
yes, and once you've lsot 30 pounds becasue you haven't eaten any good food in years, and haven't enjoyed yourself socially or taken any trips of done anythign that costs money and would make you happy, you get out of debt but he keeps you stuck in the middle class and never teaches anyone how to get rich while he's getting rich off giving bad advice. his man advice is to not have debt which is stupid, debt is good, it runs the world. every single major company lives with debt. i've got 3 mortgages all under 3.5%, started higher and refied to get lower when time was right, and that i' ve used that money to make other investments while ramsey says pay that off and eat red beans and rice. his mentaility is sacrifice your life now in hopes you live long enough to enjoy it later.
he tells you to sacrifice your daily happiness, eat nothing, and pay off debt when borrowing money leads to more wealth. he tells you to pay off that 4% loan, even if at 8%, on your house whereas if you kept the money and put it into s&p fund you'd net 5-15% profit. but ramsey says pay of the debt. absolutely stupid. if at 15-20% maybe, but you were a moron for taking that debt and if you don't realize that your high interest credit card is causing you problems then dave ramsey is not the solution, therapy is. if you can't understand that paying off a 4% credit card is not smarter than paying off your 20% credit card, then dave ramsey is not your solution. and anythign he talks about should have been covered in basic high school class. HE doesn't teach you how to invest adn make money, he teaches you how to sacrifice. plus he's a holier than thought religious conservative nut who think his dovotion equates to wealth. no, you fooling people into staying put keep you wealthy. he's a charlatan who skews data to make his points.
but paying off rates that are lower than what you can earn in the market is dumb. i've never had a full time job, always worked part time, never made even close to $1-00k combined w/my wife, and now worth about $2MM and three rental properties that will basically cover all our basic monthly bills and in retirement will provide enough to live for the rest of our lives stress free. what would you rather have, a paid off mortgage or multiple houses and multiple mortgages returning anywhere from 50%-125% ROI monthly? i pay $800/mo on one house and rent for $1900, all because i'm in debt.
all acquired due to borrowing. currently i have about 8 credit cards where i took cash advances at a 3% fee but i get 0% for 21 months. (go to Nerdwallet and compare cards). if i get $10k, i paid $300 fee but i get that $10k for 21 months which actually means i get at 1.71% APR.
i take that $10K and put into 5.35% CD ladder and over 21 months i'll earn about $900 in interest meaning i earn about $600 in free money. dave ramsey would never tell you to take in credit card debt. i'm holding about $60k in debt right now, all under 2%, some at 0% and no fee, and i've got $30k of that in CD's earning free money. and the rest funds my business to buy inventory which i sell before i even pay for it. dave ramsey doesn't show you how to do that.
or how if you have a credit card that earns 5-6% at supermarkets then you can use to buy gift cards to get extra savings whereever you shop. or if you shop at lowes or home depot to search for coupons online first. or if kroger is near, to buy the gift cards when there is 4x gas points so if oyu guy $250 worth fo gift cards, you earn $1 off you next fill up of 35 gallons. so you bring extra 5 gallon containers and make out the 35 gallons. so if did a home projext and bought $250 lowes, you get 5% back from credt card so $12.50, then $35 on gas, then you get 25% off coupon online and for the $250, you only spent $202.50 and you save up to 20% with coupons so cost you about $150 for $250 worth of goods. is he teaching that? nope. jsut sacrifice. again,. dave ramsey has steered way too many people in the wrong direction. common sense is better than dave ramsey.
and i can give you much better advice, simply, take your net taxable income for the year, divide by hours you worked and that's how much your hourly time is worth.
and everything you buy, soda, meal, clothes, car, trips etc, calculate how many hours it took you to work to buy that. and that's the value of your money. never buy a new car. eat out once a week and spoil yourself but make your meals the rest of the time. don't buy sodas or coffee. pay off highest interest debts first. maximize your employers matching contributions. put as much into your pre-tax IRA as possible to reduce yor taxes. Makes more than Roth over time. Buy a house whenever possible and worry about rates later as you can refinance. Overpay your mortage if possible with the sole purpose of gaining equity so you can apply for Home Equity Line fo Credit which is much lower rate than credit cards and can be use din emergencies or to make big purchases. I buy used cars using HELOC than go back to the bank to refi at lower rate and pay that off but you can shop for best used car rates after you buy.
so ignore dave ramsey and make yourself money by being in debt. stop your spending and start your investing.
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