Is anyone here doing the Dave Ramsey thing - Total Money Make-over, Financial Peace,

[Deanna in TN]

My husband and I have been watching the Dave Ramsey show on the Fox Business channel and we have been fascinated. We have a hard time believing some of the financial messes people get themselves into, but we really enjoy listening to the people call in with their stories about how they have paid off enormous amounts of debt. It is very inspiring. My husband and I don't have any debt, but we aren't good at saving either. Watching the show has inspired us to be more deliberate with our money. We are going to start a budget, although it seems a bit overwhelming. We want to start saving to pay cash for all future purchases and vacations.

 

Is anyone here following the principles in the Total Money Makeover or Financial Peace University? I would love to hear your stories.

[Quiver0f10]

We are new to following his plan and have just started paying off our debt. I know there are others here who have used it sucessfully. There is an online support community you can visit too http://www.livinglikenooneelse.com/forum/index.php

[Deanna in TN]

Thanks for sharing the link. That is great that you have started to work on the debt. Has it been really difficult or not too bad?

[Quiver0f10]

It hasn't been bad except with the rising cost of gas and food it's making it harder to pay the basics. I can't wait to be debt free!

[newsong]

We are just finishing up FPU and it has been wonderfully motivating. We'd read the books in years past but I think now we really are fired up to get on top of our finances. We've always lived frugally but couldn't manage to save or ever get to the point of having something to invest.

 

Now we have completed Baby Step 1 and are working on Baby Step 2. Comparatively, we don't have a lot of debt but we have a teacher's salary, a fixer-upper house, a large family and a special needs child for whom we pay therapy/meds costs. Any debt is a weekly drain on our budget. We have paid off our credit card debt and are working on paying down a loan that is now just under $6,000. Then we'll turn our attention toward bolstering the emergency fund to 3-6 months salary.

 

Going through FPU has given us the focus, the "gazelle intensity" we didn't have before. It has also underscored for us the necessity of ingraining these principals in our children while they are young.

 

I think the age factor has been the hardest gulp to swallow as we've gone through the classes. If you are in your teens, 20s, 30s and even early 40s you have time to make changes which will make huge differences in your financial future. My dh is 51 and I am 45. We still have time to make changes that are most definitely needed but we will not have the number of years to put into it that the younger crowd will, so our yield will be much lower. I've actually thought Dave should put something together to specifically encourage the older crowd who are getting a late start. We are excited for the young couples in our FPU class who are making drastic changes and already seeing fruit but it is a reminder to us of what we wish someone had shared with us when we were younger.

 

Of course the flip side of this is God's provision. There have been many times when the only thing we could do was to look to the Lord to meet our needs -- and He always has! Sometimes the needs have been small but necessary and other times far beyond anything we could hope to do, like an unexpected $20,000 medical bill that shouldn't have been ours to pay but ended up in our lap anyway. In all of these situations we did what we could do and had to rely on and trust in God to take care of the rest. Our faith has been so increased to see Him work it out each time. Our dc have also been able to witness God's up-against-the-wall care for us in a way they may not have if we had the means ready at hand in each scenario we've found ourselves in. We have always been committed tithers, even in the toughest of times, and have given to the needs of others whenever we've been able. I believe God has honored that as well.

 

If you have the opportunity to go through FPU I would strongly encourage it. The information is well presented and understandable. Dave is very motivating; he manages to be very funny and yet very direct about what needs to be done. You come away with the notion that this is going to be hard but it can be done!

 

Blessings,

Sandy

[Deanna in TN]

Thanks for sharing Sandy, especially about the faithfulness and provision of God.

 

After listening to Dave, we have given a lot of thought to teaching our son about money. My parents were not deliberate in teaching my brother and me financial principles. I guess they never really thought about it.

[MomOfOneFunOne]

Well, I'll give a different pov. I won't say that his ideas are bad but I can't stand the presentation.

 

My husband and I live pretty comfortably but a while back I had somehow come to the conclusion that I wanted to work less while continuing to live as if I were still working a couple of days per week (I'm a sign language interpreter and can decide if and when I work). My husband had asked repeatedly for me to get my spending in line with our finances. I have a real problem with this . . . really. I mean, if you need something, how do you just not go buy it. No flames, please! Anyway, I could see that my spending wasn't right but I was really having a hard time reigning it in. We still needed school supplies, we still needed field trips, we still needed . . .

 

So, it came to getting it in line or going back to work. In trying to teach myself some self control I looked into Dave Ramsey/FPU. *I had never heard of Dave Ramsey nor had I ever heard him speak.* I just went by what other ppl had said. I signed up for a class near me and my husband and I went.

 

I HATED IT!

 

He spends an hour or so SCREAMING, belittling, and being sarcastic and sometimes crude and then tosses the name of Our Lord in there for good mix. One of his common favorites is to list one of his concepts, explain it (in the method mentioned above) and then present arguments against it. No, reasonable minds could not disagree! When he presents the "other argument" it's in the voice and aspect of a perfect imbecile.

 

Oh, it looks as if I'm saying he would blaspheme or use Our Lord's name in vain. Not per se: he screams his vitriol and then attaches a scriptural reference. I personally found it abhorrent.

 

Neither did my husband like it but he found the concepts themselves sound. I couldn't take it and stopped going after a few weeks. My husband would go, come home to discuss it with me, and we implemented his ideas.

 

I go on and off the wagon from time to time but it does help me to stay on track better.

 

It seems that there must be some good advice out there that comes in a better package. I haven't look for it, though, so I don't know.

 

Oh, one more thing: I think the key is to do it. It doesn't matter *what* you do as long as you do it. What Dave Ramsey offers is one way to do what you should be doing. Maybe someone else offers that, too.

 

Good luck in your decision!

[Nestof3]

We are, but quite honestly, we are tweaking it a bit.

 

Unexpected medical bills and high taxes took us off guard this year. We still owe 3 years on the house, and we have a new van payment. We have a credit card balance which will be paid off in May.

 

So, we will finish paying off the credit card, then snowball the van, then snowball the house.

 

We had already been paying extra on the house which got us ahead by about a year. This year, though, we are only paying the regular payment.

 

We have chosen not to give up the new van. We drove our other one until it was leaking oil, transmission fluid and radiator fluid! We drove it until I got tired of filling it up with water every time I went somewhere. We looked for a used, reliable van, but the decent ones were still so expensive (they don't depreciate like other vehicles). We learned our lesson on buying off-brand minivans. We can probably keep this one for 20 years.

 

Once this year is over, we will create an emergency fund.

 

So, we did a little tweaking, but we have already paid off a bunch this year.

 

The only thing I don't like about reading his book is that he himself filed bankruptcy. I would have so much more respect for him if he actually had to pay off his own debt and then wrote a book. I know he's helped a lot of people, but part of me thinks while I'm reading, "Yeah if it's such a great thing and it's so easy, why did you take the easy way out?"

 

My Dad filed bankruptcy, and to this day he lives higher on the hog than we do. He could have paid off his debt very slowly, and I'm sure his creditors would have preferred to get a little something over the long haul than to get nothing. And, now he's back to affording whatever he wants, though he pays for it right away. That just doesn't sit well with me.

[Deanna in TN]

Thanks ladies for sharing the good and the not so good.

 

Listening to him, I know that he thinks bankruptcy is a last resort. I have heard him tell several people that they shouldn't do it, because they owe the money. Also, there are several debts that are not forgiven in a bankruptcy. I didn't know that. I haven't heard his whole story so I don't know much about the failure he had.

 

I also agree that he is harsh at times, and his language isn't the best either. I have thought many times about Scripture that he doesn't follow in his words and attitudes. It would be better if he had more of a Larry Burkett demeanor. However, I appreciate the principles he teaches.

[nutmeg]

I read Your Total Money Makeover in early 2005. That was enough to set dh and I down the DR path; but we've never done FPU, and don't have cable to watch him. When we started, we only had one debt (car), but DR's baby steps gave us a plan and helped us get our finances in order.

 

I'm a fan, but not a fanatic. I still keep the one credit card. ;)

[jail warden]

The only thing I don't like about reading his book is that he himself filed bankruptcy. I would have so much more respect for him if he actually had to pay off his own debt and then wrote a book. I know he's helped a lot of people, but part of me thinks while I'm reading, "Yeah if it's such a great thing and it's so easy, why did you take the easy way out?"

 

I do know that he did go back and pay for what he filed bankruptcy on. I think though that the fact he went through a rough time helps people relate to him better. That situation is how he finally learned these principle's, only after he crashed.

 

It would be better if he had more of a Larry Burkett demeanor. .

 

I agree at times he can be a bit rude on his show, however, I don't agree that he should be more like Larry Burkett. It's because of his motivating style that he gets people on board. I read through a Larry Burtkett book when we were first married and it worked great for me, but it's for math minded people and it doesn't work as well for the free-spirits that Ramsey talks about! I know because Ramsey is what finally got my dh on board.

 

We do his plan and I find him incredibly motivating to listen to. It's tough for us because my dh's job does not pay that well, so we don't have much money besides necessities to pay on our HEL(our only debt besides our 1st). However, God has been so faithful and has helped us pay off more than seems possible with our income and He's made so that we have had what we needed. We have had numerous problems with our van, but God has provided with overtime at just the right time.

 

I have noticed that most debt-free callers make around 80,000+. There are a few that makes less, but not very many. That can get discouraging when you know you make no where near that much and have a ways to go.

 

BTW I have read both books and we went through FPU, that's what finally got my dh on board. Before I would make out a budget and he would mostly stick to it, but there were things he refused to give up and it would make it really tough for me. Now he rarely blows the budget and will give things up too.

[Deanna in TN]

Thanks for sharing, Lori. I am really glad to know that he went back and paid off his debts.

[jail warden]

I forgot to mention that although paying off the debt takes quite a while, the most wonderful thing is that I set our large expenses in a total different account and it's nice to know that our absolute must-have needs are taken care of because of the budget. My dh took a paycut 3 years ago to move into the field he loves and I got a paycut 2 years ago and while it's been tough, it would have been nearly impossible without Dave Ramsey.

[Wendi]

We went through Financial Peace University at our church last summer. As of next month, we'll have paid off both our cars, so we'll be debt-free but the house. We've actually "cheated" a bit by saving while paying off the debt; dh has been through several lay-offs, etc., in the last five years, so we didn't want to wait to have some emergency cash. We're also piling up some cash so we can adopt.

 

I listen to Dave every day while I'm working at my part-time job (taking care of rabbits at a shelter). My ds went to FPU with us, and he loves listening to Dave, too. He has the FPU Jr. kit.

 

Wendi

[Wendi]

Dave has said on his show that he felt the Lord wanted him to pay back the debts after the bankruptcy. So he did pay back what he had owed. I don't know when this happened.

 

Wendi

[profmom]

We're doing it! If all goes as planned, we hope to have our 3-6 month emergency fund finished in December & be able to bump retirement savings up in January -- maybe up to 15% (as he recommends) or maybe just somewhere in the lower double digits at that point.

 

We have always been careful with our spending, especially larger purchases, and have always had high credit ratings, but we weren't using a budget. It's amazing the difference the budget has made! Our cash account balances are much higher than before, and it's comforting to know that we have money set aside for different categories of expenses (including those that aren't monthly). Instead of looking at our cash balance before making a purchase, we look at the envelope/category balances, so we spend less in some categories, which in turn allows us to spend more in other categories.

 

We use Mvelopes for our budgeting (switching from over 15 years of Quicken), but we were already used to using the computer for our finances. (So, it fits us, but I'm not sure that Mvelopes is the best solution for everyone.) Another computerized option is setting up an Excel spreadsheet.

 

Dave Ramsey's cash envelope system would work well for those who don't want to bother with keeping any records -- you still have to make a plan at the beginning of the month, but once the cash in an envelope is gone, it's gone. Who cares specifically where each dollar went?

 

This looks like a good manual system -- a modified check register with a budget focus.

 

Obviously, I feel the key is using a budget. Dave Ramsey's "baby steps" provide a great plan. You need both the budget and the logical plan. The benefits are well worth the effort of getting everything set up and going! (The first budget is difficult to set up and then it could take about 3 months to get it tweaked just right. At that point, you will love the freedom and benefits your budget provides. Ok, stopping now... you'll love it! :D )

[Sunny]

If you don't have any debt, you would be fine to simply read his book TMM. We watch him on Fox news too, when we remember :). If you can listen/watch him there, you wouldn't have too much trouble watching him on Financial peace seminar. He reminds me of Dr. Laura. He has been referred to as the Dr. Laura of the financial realm. So true. He gets in their faces and tells people what they need to do, whether or not they like it, it is usually very sound advice.

 

We were much in the same place as you. We didn't have alot of debt, we just didn't save anything either. After reading TMM, we got a plan, and had a goal. It gave us the next step. Because my Dh was raised with the principle that you don't borrow to buy stuff, we only had a mortgage.

Now, with the plan well in place, we have moved and are now mortgage free, emergency fund in place, and wealth being built. Dave Rocks! We went onair and announced when we were DEBT FREE even from a mortgage. It was great.

[Deanna in TN]

Profmom, thanks so much for the encouragement and ideas about budgeting. We have been keeping track of what we spend the last 2 months so we can have a better idea of how to budget. Even the record keeping has been helpful, so that I ask myself, "Do I really need that?" knowing that I am going to be writing it down.

 

Sunny, congratulations on being completely debt free. What are your goals now regarding money?

[Carol in Cal.]

 

 

He spends an hour or so SCREAMING, belittling, and being sarcastic and sometimes crude and then tosses the name of Our Lord in there for good mix. One of his common favorites is to list one of his concepts, explain it (in the method mentioned above) and then present arguments against it. No, reasonable minds could not disagree! When he presents the "other argument" it's in the voice and aspect of a perfect imbecile.

 

Oh, it looks as if I'm saying he would blaspheme or use Our Lord's name in vain. Not per se: he screams his vitriol and then attaches a scriptural reference. I personally found it abhorrent.

 

Neither did my husband like it but he found the concepts themselves sound. I couldn't take it and stopped going after a few weeks. My husband would go, come home to discuss it with me, and we implemented his ideas.

QUOTE]

 

If you want a calm, rational version of very similar advice, try Larry Burkett's books. Larry is analytical and respectful and clear in his style. I have tremendous respect for him and for his approach to personal finance, business finance, career choices, and faith through adversity. I have never seen his integrity questioned, and his show avoided the conflicts of interest that have haunted some other ones. He is dead now, but his information is still applicable.

 

As a Christian business person, I go through his book "Business By The Book" every year, just for a tune up, even though I already know his material quite well.

[Nestof3]

I do know that he did go back and pay for what he filed bankruptcy on. I think though that the fact he went through a rough time helps people relate to him better. That situation is how he finally learned these principle's, only after he crashed.

 

 

Oh, I didn't know this. I hate to sound harsh, but the "been there done that" speaks volumes to me.

 

We know people who are now self-employed, but made their millions with the stock market. He now acts so shocked that all self-employed people don't have 3,000 sq ft houses, cannot fly out of the country whenever they want to. It's like he lives in la-la land or something. He speaks against the stock market, but he sure is reaping the benefits of it!

[profmom]

Profmom, thanks so much for the encouragement and ideas about budgeting. We have been keeping track of what we spend the last 2 months so we can have a better idea of how to budget. Even the record keeping has been helpful, so that I ask myself, "Do I really need that?" knowing that I am going to be writing it down.

 

You're welcome! Keeping track of your expenses the way you have is going to be very, very helpful when you prepare your budget!! You might also find this budget calculator helpful as you create a workable plan for your family.

[jmgconner]

Dave Ramsey and FPU is changing our lives. We started following Dave's steps in October, started FPU in January (just about finished), and we're going to go see Dave live in KC next weekend. Personally, I love Dave's in-your-face style of speaking. I appreciate the straight-forward approach.

 

In addition to the no debt mantra, I've appreciated his attention to other finacials aspects like wills, power of attorneys (for medical situations), and college savings.

[*anj*]

I'm with Jeanne.

The Dave Ramsey Thing (TDRT :tongue_smilie:) has changed our lives in ways that you wouldn't believe.

In the past 10 months we have paid off quite a large debt and begun to save money. We are on a budget and pay all out of hand expenses with cash (obviously that doesn't include things like mortgage, electricity, phone, etc.) We are working our plan by going through Dave's Baby Steps. I don't want to get into too much more because this is a public forum. But I'll tell you that his plan can really work if you want it to. We never attended any classes, but dh has read all of Dave's books. He actually started out with Dave and has now read financial planning books written by quite a few people, just to learn what others are teaching.

 

His style isn't all that gentle, but we are okay with that. He does not hold back at all. Sometimes people call him to "get permission" to do a certain thing with their money. He speaks bluntly to them. The other day a man called in and said that he had his wife had a lot of debt and they were trying to pay it off, but now she'd found this perfect pair of sunglasses for $150 and was making him feel guilty because she wanted them so. The guy asked DR what he thought. Well, basically DR told the guy that his wife is acting like a little princess, and he has to tell her "no." He said that when he and his wife were working down their debt she'd never have tried that because she was committed to getting their financial house in order.

 

The guy didn't like it so much, but it was true.

There are lots of stories like that. Honestly, I think that maybe DR gets a little sick of listening to people whine.

[Deanna in TN]

Jeanne and anj thanks for sharing. It is very motivating to hear other peoples' stories.

[Joanne]

Living a Dave Ramsey inspired, debt free life indicates a very fiscally and morally responsible approach to life. I admire that, respect that and think it's a terrific choice.

 

I do not see him as having the only path to financial peace, the "only" way with specifics or even the best way. I do not think he can or should be for all people.

 

I do not necessarily wholeheartedly believe in everything he offers as gospel (and I use that word quite deliberately). That does not mean I think the opposite should be cultivated; I just don't believe it because Dave says it.

 

 

The other day a man called in and said that he had his wife had a lot of debt and they were trying to pay it off, but now she'd found this perfect pair of sunglasses for $150 and was making him feel guilty because she wanted them so. The guy asked DR what he thought. Well, basically DR told the guy that his wife is acting like a little princess, and he has to tell her "no." He said that when he and his wife were working down their debt she'd never have tried that because she was committed to getting their financial house in order.

 

$150 sunglasses = luxury expense is a no brainer. :confused:

 

What I *don't* like about Dave is the abrasiveness, the condescension and the lack of empathy. When he's been a single mom of 3 kids, driving a 13 year old van with broken air conditioning in Houston (and driving 50+ miles a day as part of work but not a commute), is uninsured for health insurance and stuck with $20K in cc debt due to a divorce decree, I'd like to hear his "no bankruptcy" passion.

 

I've also learned some realities for some types of spenders that are counter to Dave's advice. Not counter for everyone, but counter for some. Following Dave's advice to the letter would have spiritually and emotionally killed me.

 

I'm glad he's inspired others to positive financial change and responsibility. I'm glad there are equally as good options for those of us for whom Dave Ramsey is not a match.

[KIN]

He has changed our lives! Dh and I love his style. :) We need the in your face instruction. We had a small student loan, small amount of a car loan, the house loan, we were saving a bit for retirement (but nothing else!) when we read his first book several years ago. Now we have our 3 months savings, no debt except the house and are putting back the 15% for retirement he recommends. We just went on vacation with cash, came back and our dd ended up in the hospital. In the past that would have caused us some difficulty with cash flow, but not this time! We have our emergency fund so that we can pay our deductible and have a plan in place to replace the money as well.

 

No, Dave Ramsey isn't God, by any means. For us, however, he provided the right advice at the right time and our lives (and children's lives) are changed.