If you dislike Dave Ramsey's approach

[1pageatatime]

Why? Is there another approach to get out of debt and manage finances you prefer?

 

TIA!

[speedmom4]

I am a Dave Ramsey fan but others who don't like his approach have used You Need a Budget (YNAB).

 

HTH,

Elise in NC

[1pageatatime]

Thanks, I'll take a look at that!:grouphug:

[frugalmama]

I like the Dave Ramsey concept, but I disagree with his order of the baby steps especially for very low income households.

[Hypatia.]

I like the Dave Ramsey concept though, for us, paying off the smallest debt first wasn't the right way to go. We do use YNAB to keep our budget under control and that has made a huge difference.

[tex-mex]

He comes across as a know-it-all compared to Larry Burkett who was kind. I prefer the old Crown Ministries Mr. Burkett founded.

[1pageatatime]

Okay, thanks, I will look into that! :grouphug:

 

We have no credit cards, but have loads of medical debt, with debt collectors breathing down our necks.

[Crimson Wife]

I think he is totally unrealistic in recommending spending no more than 1.5x salary for housing these days. Yeah, I'd kind of prefer living in a neighborhood where I don't have to worry about getting accidentally hit in a drive-by shooting :glare:

[joannqn]

I think he is totally unrealistic in recommending spending no more than 1.5x salary for housing these days. Yeah, I'd kind of prefer living in a neighborhood where I don't have to worry about getting accidentally hit in a drive-by shooting :glare:

 

:iagree: There's no such housing where we live. Average home price in our city is $100,000 more than 1.5x our salary.

 

I was put off by the "gazelle intensity" and the impression that we would have to give up parenting our kids because we each held 3 full time jobs to follow his ideas.

[LBS]

Darn it, wrote a long reply and my internet connection blinked.

 

Eric Tyson wrote one book I loved "Let's Get Real About Money" and several ".......for Dummies" books. Personal Finance, Investing and Mutual Funds are all good. I bought the one for seniors and for people in their 20s. I love that he respects that we have relationships, that we can't keep a budget or goal, just because we make it, and the senior and 20s books talk about lots of real life situations.

 

I can't remember why I didn't like Dave Ramsey.

[frugalmama]

Okay, thanks, I will look into that! :grouphug:

 

We have no credit cards, but have loads of medical debt, with debt collectors breathing down our necks.

 

How old is the medical debt? If its getting anywhere near the statute of limitations on debts in your state, I'd ignore it unless you have the funds to pay it off. If you have the funds I'd try to work out some type of deal like .25 on the dollar.

[CheerioKid]

I agree with him for the most part, and we have loosely followed his debt snowball. We are down to one unsecured loan with about $1000 left on it and one car payment we financed for 12 months (a newly acquired 2004 model van...our old one was the same model, only completely shredded and should have fallen apart completely long before we traded it.) We have no credit cards, period, and haven't had any for several years. We hope to be out of debt completely by March (bonus/tax time). I have said that for several years now though, and something ALWAYS happens. Dh lost his job one year, then got a lower paying job, then lost that job 2 years later and worked minimum wage for another year and a half. We are praying that this is the year we are able to do it for real. Then we start orthodontics...yay...

[Liz CA]

Ramsey can come across as a bit "overzealous", however, the principles he espouses seem sound to me. Establish a savings account so failing appliances and sudden car repairs don't derail you, spend less than you make. Someone mentioned Larry Burkett - I read his books long before there was a Ramsey. He always recommended that housing not exceed 30% of your income, meaning your monthly rent or mortgage should not be more than a third of your monthly income.

Take the things that work for you and think about other methods for those suggestions that seem over the top for you.

Some of Ramsey's topics seem very basic but he deals with people that are deep in debt and have no clue how to turn around.

Edited September 29, 2012 by Liz CA

[Jpoy85]

I just dont understand how normal people make any of it work. I mean who has those perfect circumstances to start an emergency fund without the car breaking or an unexpected medical bill? I understand not living beyond your means and paying off old debts with the snowball but its the rest of it that doesnt make sense to me.

[Lily_Grace]

I just dont understand how normal people make any of it work. I mean who has those perfect circumstances to start an emergency fund without the car breaking or an unexpected medical bill? I understand not living beyond your means and paying off old debts with the snowball but its the rest of it that doesnt make sense to me.

 

That's the thing, though. You have something come up and the even few dollars you have in the emergency fund go to cover it first before turning to a credit card until you can build up that wee fund.

 

Dh and I did the Dave Ramsey plan but we had circumstances that made it easy. We moved to an island and had to give up dh's truck. It got replaced with a beater until we got out of debt. But just like I don't believe in one-size-fits-all homeschooling or parenting plans, I don't believe any one book should be taken as gospel. We didn't stop contributing to dh's retirement account while we got out of debt. It would only have mattered a few months and about $60 in interest, but would have mattered more in the long run to lose what we were paying in for that time.

 

I like DR, I like Gail Vox-Oxley (Til Debt Do We Part), I like Suze Orman. The one thing I took away from all of them was to pay attention to your money! Let it work for you. Be important enough to be a "bill" in your budget categories and pay yourself. Dh and I both have a tendency to hide our heads in the sand when it gets rough so staying on top of the budget has made the biggest difference in our finances.

[eloquacious]

We like him, But. We listen to get inspired, and are almost paid off on various debts (still working on student loans) but we can't go all crazy like he would have us... Food budgets can't be cut beyond a certain point because of food issues, etc. Technically out trip to Germany right now isn't DR-approved, but our children will likely not have the opportunity to see two sets of great grandparents and other family members in a few years when it would be DR-approved, you know? We have to weigh opportunities against budgets.

[celticmom]

:lurk5:I will definitely look into some of these resources.

[PeacefulChaos]

He comes across as a know-it-all compared to Larry Burkett who was kind. I prefer the old Crown Ministries Mr. Burkett founded.

 

I think he is totally unrealistic in recommending spending no more than 1.5x salary for housing these days. Yeah, I'd kind of prefer living in a neighborhood where I don't have to worry about getting accidentally hit in a drive-by shooting :glare:

 

:iagree: with both of these.

I just don't really care for him personally. I feel like he is selling common sense regarding a lot of his advice.

I know that some do find his stuff useful, though. I'm just not a fan. :)

[Impish]

I like his basic premise.

 

However, being Canadian, there's a lot of the actual details that simply do not work for us.

 

As someone else mentioned, Gail Vaz Oxlade is a financial guru here in Canada, so I find her details more applicable to *my* life.

 

She has a bunch of free resources here.

It includes a budget calculator (she espouses the 'jar' method, as in you put $x amt of cash in different jars once you're done your budget, and the calculator helps both determine your budget *and* how much you'd put in ea jar per wk.)

[Ray]

If you have a commute, then audio books may present an opportunity for self-education.

 

http://www.amazon.com/How-Economy-Grows-And-Crashes/dp/B0049MEXPS/ref=tmm_aud_title_0?ie=UTF8&qid=1348929525&sr=8-1

 

http://www.amazon.com/The-Richest-Man-in-Babylon/dp/B0036ZK39E/ref=tmm_aud_title_0?ie=UTF8&qid=1348929726&sr=1-1

Edited September 29, 2012 by Ray
Fixed a link

[Kalmia]

I know I always post this, but it helped us through very lean times. She takes the opposite approach of most budgeting books. She doesn't make a budget at all. The focus is on creating the excess money you need (to pay your debts) by saving money through smart shopping, doing things yourself, eliminating waste and reusing as much as possible, and distinguishing between needs and wants. It was written in the 1990s, so the numbers are outdated, but the strategies are timeless. Plus it is funny.

 

The Complete Tightwad Gazette

http://www.amazon.com/Complete-Tightwad-Gazette-Amy-Dacyczyn/dp/0375752250/ref=sr_1_1?s=books&ie=UTF8&qid=1348930495&sr=1-1&keywords=the+complete+tightwad+gazette

[staceyobu]

I like the Dave Ramsey concept, but I disagree with his order of the baby steps especially for very low income households.

 

Would you mind sharing which aspects?

 

:iagree: There's no such housing where we live. Average home price in our city is $100,000 more than 1.5x our salary.

 

I was put off by the "gazelle intensity" and the impression that we would have to give up parenting our kids because we each held 3 full time jobs to follow his ideas.

 

I really promise that I am not the hugest Ramsey fan and we've never completely followed his methods... To his credit, I've never heard him tell a SAHM to get back to work to pay off debt.

[Happy]

:iagree: There's no such housing where we live. Average home price in our city is $100,000 more than 1.5x our salary.

 

I was put off by the "gazelle intensity" and the impression that we would have to give up parenting our kids because we each held 3 full time jobs to follow his ideas.

 

He really doesn't say *both* of your should have 3 jobs. He is pretty solid that the husband should bust his tushy to work extra to support the family. To be 'gazelle intense' should only last a few months--a year at most, so parenting wouldn't take a big hit. If mom gets an extra job, yay! As far as I know, Dave is practically the only financial dude that admires stay at home moms.

 

**Any** method that WORKS and you'll stick with is a good one!

[FairProspects]

To be 'gazelle intense' should only last a few months--a year at most, so parenting wouldn't take a big hit. If mom gets an extra job, yay! As far as I know, Dave is practically the only financial dude that admires stay at home moms.

 

**Any** method that WORKS and you'll stick with is a good one!

 

This is where I think he is unrealistic though. We were "gazelle intense" for 3 yrs, with dh working 2 full-time jobs for two of those years (and massive amounts of overtime during the other yr) and it didn't come close to wiping out our student loans. We did pay off a significant amount of credit card debt and start a business, but there is just no way in some parts of the country that gazelle intense is only going to take a year, even with multiple jobs. The costs of housing and education are just too high. There is only so long you can maintain that intensity before something has to give, and for us, it was the decision to just pay off our student loans more slowly before dh had a heart attack or health problems from the stress.

Edited September 29, 2012 by FairProspects

[Joyofsixreboot]

We make Ramsey look like a wild spender so we've not used his plan. I do watch "Til Debt Do Us Part" and she seems to give good advice.

[Unicorn.]

:iagree: There's no such housing where we live. Average home price in our city is $100,000 more than 1.5x our salary.

 

I was put off by the "gazelle intensity" and the impression that we would have to give up parenting our kids because we each held 3 full time jobs to follow his ideas.

 

I was thinking the same thing. I can't for the life of me figure out where one could get a house for that cheap here.

[Mom-ninja.]

I like Suze Orman.

 

 

I do not like Orman.

 

To his credit, I've never heard him tell a SAHM to get back to work to pay off debt.

 

:iagree: I have heard Orman say this. She doesn't seem to deem SAHMs much. I read in one of her books that the worst thing to do is to voice negativity about having to go work instead of doing something with the kids. Because you will teach kids that work is not a high priority and kids will think that they should come before work and financial obligations. That was the gist of it and it ticked me off. I sincerely hope my dc feel that they are more important to me than a job and making money. :glare:

 

In the Q &A section of her book and I remember one of her answers being something like the mom should stop staying at home and get a job in order to send kids to private school so they can have a better education if the public schools are not good. It just rubbed me the wrong way. She puts financial security above parenting. I agree that both are important, but I place a higher priority on my relationship with my dc.

[frugalmama]

Would you mind sharing which aspects?

 

 

 

I really promise that I am not the hugest Ramsey fan and we've never completely followed his methods... To his credit, I've never heard him tell a SAHM to get back to work to pay off debt.

 

This may be a bit fuzzy as I'm sick

 

Well, first off he is not a fan of public assistance, which is crucial for the extreme low income to get back onto their feet. The #1 baby step in my plan after doing a budget is to see what assistance you're eligible for and thus STRETCH your budget. The system is there to help but you have to make it work for YOU.

 

The #2 baby step in my plan is to get a paid for house by whatever means possible UNLESS you are living in Section 8 or getting your rent paid via Section 8. The largest chunk of low-income budgets goes toward housing - so getting into something paid for frees up a lot of funds. It might be a used mobile home, or maybe buy a cheap foreclosure, etc. Live in an RV on someone else's property, be a house parent, live-in security, etc.

 

He also never really mentions the statute of limitations on debts, and that often if it is a large debt {normally medical or CC} and close to the statute of limitations it's better to IGNORE it. If you begin making payments after 6.5 years, and the statute of limitations is 7 years, you have just restarted the 7 year period over again.

 

I also don't recommend his investing step - if you are very low income and receiving assistance, investing is often an immediate disqualification for assistance. If you really want to invest, do so in a method NOT in a bank - i.e. buy coins, start a business and keep the investments in the business name, etc.

 

That's all I can think of right now...I'll probably flesh this out more when I'm not so sick.

[Wheres Toto]

Technically out trip to Germany right now isn't DR-approved, but our children will likely not have the opportunity to see two sets of great grandparents and other family members in a few years when it would be DR-approved, you know? We have to weigh opportunities against budgets.

 

There is only so long you can maintain that intensity before something has to give, and for us, it was the decision to just pay off our student loans more slowly before dh had a heart attack or health problems from the stress.

 

These are the two main problems I had with DR. I want us to be able to do things together as a family. We don't take big vacations, we usually just go camping together but I want us to have that time. The kids will get big too fast and dh is 56 years old. I want to have that time together while we can. My kids are very close to Dh (he's actually there favorite ;)) and I don't want him to spend all his energy working multiple jobs.

 

Of course, the option to work 2 or 3 jobs depends on there actually being 2 or 3 jobs available withe schedules that allow working them all and still having time to sleep occasionally. With the job market being what it is, there's no guarantee that you could find extra jobs even if you truly want them.

[Joanne]

I like his program for getting out of debt in terms of the snowball. It doesn't bother me in the least that he is making a lot of money packaging a not-new idea.

 

I don't necessarily agree with him about car debt or student loans - *especially* for low income families.

 

I'm another poster who feels he misses the mark when it comes to the challenges of low income.

 

I also don't think that his "no credit score" and "manual underwriting" ideas are all that supportable or convenient or appropriate for USA culture in 2012. Maybe they *should* be, but they aren't.

[Liz CA]

There is only so long you can maintain that intensity before something has to give, and for us, it was the decision to just pay off our student loans more slowly before dh had a heart attack or health problems from the stress.

 

I think this is perfectly fine. And you wiped out CC debt which is way worse than student loans. Sounds like the whole concept did work for you even though you are not completely debt free yet. Every step in the right direction is good!

[BakersDozen]

These are the two main problems I had with DR. I want us to be able to do things together as a family. We don't take big vacations, we usually just go camping together but I want us to have that time. The kids will get big too fast and dh is 56 years old. I want to have that time together while we can. My kids are very close to Dh (he's actually there favorite ;)) and I don't want him to spend all his energy working multiple jobs.

 

There is a book called A Life Well Spent by...hmmm...Crosson, maybe? Anyway, I love it! For me it is the most well-balanced view of managing/making/spending money as it does take into account things such as family experiences.

[Tohru]

I just have to pipe in that I am so relived that I am not the only one that isn't too fond of Dave Ramsey or his teachings! I generally get blasted if I say anything against his ways.

[Carrie12345]

Best thing about DR, imo, is how he's convinced me to make my kids financially literate to avoid my mistakes! (Which I'm still fixing on a DR-light plan, lol.)

[1pageatatime]

Thanks for enlightening me!:grouphug:

I'm afraid if we don't get things waaay under control ASAP, dh will have a heart attack. :crying:

 

First thing first is to open the mail.:blushing:

 

Checking to see what our library has & downloading freebies.:tongue_smilie:

[mommaduck]

I dislike it due to the fact that it is geared towards those that are middle class or above. It does absolutely NOTHING for those that are low income, scraping by the skin of their teeth, and no one to fall onto for help.

 

We had one pastor sit down with us years ago and pulled out the worksheet where you were supposed to divide things up by percentages. Our percentages were entirely different. Many of the "necessary" things we didn't have and did without (there was no savings, no insurances other than vehicle, no clothing allowance as we bought only when and as needed for as cheaply as possible, no emergency vehicle maintenance fund, etc). He was amazed at how we were managing to meet our few bills. We knew how to stretch a dollar. We truly did not waste.

[QueenCat]

Technically out trip to Germany right now isn't DR-approved, but our children will likely not have the opportunity to see two sets of great grandparents and other family members in a few years when it would be DR-approved, you know? We have to weigh opportunities against budgets.

 

:iagree:Not everything can be about the future. Sometimes the now is just as, if not more, important. Balance :001_smile:.

[1pageatatime]

I just read through this thread.

 

Fairly certain DR's plan isn't for us atm......

 

Ahhhh...........

[PeacefulChaos]

The other posters reminded me that I also find his stuff not particularly helpful for low income folks. :)

There is a general assumption amongst some I know Irl that all problems can and will be fixed if you follow DR's plan - and that just isn't the case.

I think that what we do IS something similar, but investing, for example, is not on my radar. I also don't think that it's likely that people will be able to live with no debt whatsoever - though no cc debt is definitely possible. I would love to think that we could get by without a car loan, but that just isn't the reality for us. Same with a home loan.

I haven't ever read any of his stuff, only looked at it online, so I'm not sure what his stance is on a lot of things, but when I see people following his methods hard core, they are often doing it with a different mindset than what I ascribe to. And that is totally fine - to each their own. And, having not read his stuff, I don't know if is mindset is one that he has or just that of the people I know - so I can't say that really has anything to do with him. :)

[Lovedtodeath]

:iagree: There's no such housing where we live. Average home price in our city is $100,000 more than 1.5x our salary.

 

I was put off by the "gazelle intensity" and the impression that we would have to give up parenting our kids because we each held 3 full time jobs to follow his ideas.

:iagree:

[Lovedtodeath]

The other posters reminded me that I also find his stuff not particularly helpful for low income folks. :)

:iagree:

[*Michelle*]

I'm a big fan of his in that he changes the way people perceive debt. A lot of people (myself included) grew up with the mindset of "I can afford this because I can afford the payments." Finding and listening to Dave Ramsey pretty early in my marriage saved my husband and me from some big missteps.

 

Almost a decade away from where we were, I can see some things about his plan that no longer make sense for us. We've kicked the debt addiction, certainly. There are a few things that we're doing now that are anathema to Mr. Ramsey, though.

 

For one, we have a note on one of our vehicles. Now, we didn't really intend for that to happen. We'd saved up and bought one vehicle cash and our other was paid off. We hadn't started saving for a replacement fund yet when my husband was in an accident and the car was totaled. Thankfully, it was paid off and the insurance check could go straight toward a new car. However, it wasn't enough to get the equivalent of the car that was totaled (if that makes sense). We reluctantly decided to take a small loan, get a better car, and work on paying it off quickly. We should have it finished off in a few months and I can say now that I'm glad we did what we did.

 

We're going to need to replace our other vehicle in a year or two. We'll probably do the same thing. Save up some cash, trade in the existing one, and get a small loan to cover any difference. It makes more sense to us at this point to take the loan and have the vehicle sooner than to keep pushing our current one and reduce the trade-in value further. I disagree with Ramsey's poo-poohing the idea of "you'll always have a car payment." Well, in reality, you'll either have a car payment or you'll be putting aside the equivalent of a car payment in order to pay cash for your replacement car. It's a wash, to me.

 

I'm not sure what he's advising as far as investments go right now, but we're absolutely done with the stock market unless it receives a major regulations overhaul. If I wanted to give my money away, I'd go to a casino and at least get some free drinks for my trouble. Unless and until the exchanges get away from HFT algorithms, they won't see another dime from us. Another side of that problem is the current ZIRP fiasco that is completely undermining the ability of all Americans to gain any interest via a normal savings account. At this point, it's risk losing your shorts in the market or watch your savings get eaten away due to inflation. I don't know what the answer is, but pouring money into "good, growth-stock mutual funds" isn't advice that I'd accept at this point.

 

The financial landscape is very complex right now. Again, I think he's great for changing people's perspective on debt, but you get to a point when your life doesn't fit any cookie-cutter plan.

[regentrude]

I disagree with Ramsey's poo-poohing the idea of "you'll always have a car payment." Well, in reality, you'll either have a car payment or you'll be putting aside the equivalent of a car payment in order to pay cash for your replacement car. It's a wash, to me.

 

It is not exactly the same. First, a car loan requires you to pay interest, while a car replacement savings fund produces interest. Second, in case of an accident, you still owe the balance. Third, in case of emergencies, such as job loss, you still have to pay the rates for the car, but you can defer saving for the replacement- basically, having a loan costs you flexibility to respond to changing situations.

[Pawz4me]

I've only listened to Mr. Ramsey on the radio, and I find his advice to be overwhelmingly simplistic. And it drives me crazy until I remind myself that the people who follow him probably really need simplistic advice.

 

The one thing he routinely says that drives me batty is the standard pat advice to sell any car for which you have a payment and buy a beater. Sorry, but that simply isn't sound advice for every single situation. If you live two miles from your work and don't have any physical issues that would preclude walking, then yes, probably okay advice. But if you have a job that requires a long commute (and public transportation isn't an option), trading in a reliable vehicle for a beater may very well be a terrible move. Saving a car payment doesn't do you a lot of good if it ends up costing you a job! In short, a lot of Mr. Ramsey's advice seems very one-dimensional to me, when in reality many financial decisions are much more complex.

[Crimson Wife]

For one, we have a note on one of our vehicles. Now, we didn't really intend for that to happen. We'd saved up and bought one vehicle cash and our other was paid off. We hadn't started saving for a replacement fund yet when my husband was in an accident and the car was totaled. Thankfully, it was paid off and the insurance check could go straight toward a new car. However, it wasn't enough to get the equivalent of the car that was totaled (if that makes sense). We reluctantly decided to take a small loan, get a better car, and work on paying it off quickly. We should have it finished off in a few months and I can say now that I'm glad we did what we did.

 

We had to get a small loan to buy our current vehicle because the previous one failed the smog test and would've required a hugely expensive repair to get it to pass. It didn't make financial sense to put that much money into a car that was so old and with so many miles on it. So we had to push up our timetable for purchasing a new car by a year. We got a 2 year loan (the shortest term we could find) and paid it off early. Our next vehicle should be paid for with cash, barring some major emergency.

[*Michelle*]

It is not exactly the same. First, a car loan requires you to pay interest, while a car replacement savings fund produces interest. Second, in case of an accident, you still owe the balance. Third, in case of emergencies, such as job loss, you still have to pay the rates for the car, but you can defer saving for the replacement- basically, having a loan costs you flexibility to respond to changing situations.

 

On the first point, I would agree if the interest rates offered for savings accounts were anywhere close to what they were when I started listening to Dave Ramsey. Back then, it made sense to build that fund in an ING account that was offering 5%. Now, with an average return of 0.25%, it's not as strong of an argument.

 

To your second point, if your loan is for less than the value of the car and you are in an accident, it's pretty much a wash. You get enough to pay off your loan have some left over for a down payment on another car. Your situation is pretty much unchanged. If you get a loan for the full value of a new car, that's a different situation. Your loan-to-value ratio is ridiculous the moment you drive it off the lot and you're up the creek if you get an accident and don't have gap insurance.

 

On the third, well, I guess it depends on your emergency fund. If you've got three to six months of expenses, including that small car payment, put away, you're not really in a worse situation. Keep in mind, I'm not talking about having a $400 or $500 car payment. I'm referring to a small loan with a small payment.

 

When you're coming from a debt mindset, I think you have to be really strict and you have to follow the rules exactly in order to change your habits. Down the road... I think you can handle some flexibility based on your personal situation.

[TechWife]

I prefer the old Crown Ministries Mr. Burkett founded.

 

This is what we have done since the beginning of our marriage 19 years ago.

 

Additionally, Clark Howard has a great website and I always learn a lot from his radio show when I have an opportunity to listen to it.

 

I have found the main difference between Crown Ministries and Dave Ramsey to be that Crown emphasizes stewardship while Ramsey emphasizes accumulating wealth. They are different philosophies, although some of the financial methods involved are similar.

[Joanne]

I'm a big fan of his in that he changes the way people perceive debt. A lot of people (myself included) grew up with the mindset of "I can afford this because I can afford the payments." Finding and listening to Dave Ramsey pretty early in my marriage saved my husband and me from some big missteps.

 

Almost a decade away from where we were, I can see some things about his plan that no longer make sense for us. We've kicked the debt addiction, certainly. There are a few things that we're doing now that are anathema to Mr. Ramsey, though.

 

For one, we have a note on one of our vehicles. .

 

 

 

 

 

I've only listened to Mr. Ramsey on the radio, and I find his advice to be overwhelmingly simplistic. And it drives me crazy until I remind myself that the people who follow him probably really need simplistic advice.

 

The one thing he routinely says that drives me batty is the standard pat advice to sell any car for which you have a payment and buy a beater. Sorry, but that simply isn't sound advice for every single situation. If you live two miles from your work and don't have any physical issues that would preclude walking, then yes, probably okay advice. But if you have a job that requires a long commute (and public transportation isn't an option), trading in a reliable vehicle for a beater may very well be a terrible move. Saving a car payment doesn't do you a lot of good if it ends up costing you a job! In short, a lot of Mr. Ramsey's advice seems very one-dimensional to me, when in reality many financial decisions are much more complex.

 

:iagree: I live in the metro Houston area. I have had between 2-4 jobs at the same time (trying to pay bills and a debt snowball ;)). DH, when he was well(er) took care of the kids and their travels. We actually purchased a beater for $1700 and ended up puting more than double that amount into it. It was a nightmare.

 

The option of a modest car payment for a used vehicle is a viable option for low income persons.

[Jpoy85]

I agree about being low income. Thats what i meant when i said about my post with the emergency fund, etc. Its hard to start anything when the money truly isnt there to begin with.

 

Now if you are going to Starbucks every morning and you claim you cant get enough for an emergency fund, then yes theres an issue.

[Scarlett]

I dislike it due to the fact that it is geared towards those that are middle class or above. It does absolutely NOTHING for those that are low income, scraping by the skin of their teeth, and no one to fall onto for help.

 

We had one pastor sit down with us years ago and pulled out the worksheet where you were supposed to divide things up by percentages. Our percentages were entirely different. Many of the "necessary" things we didn't have and did without (there was no savings, no insurances other than vehicle, no clothing allowance as we bought only when and as needed for as cheaply as possible, no emergency vehicle maintenance fund, etc). He was amazed at how we were managing to meet our few bills. We knew how to stretch a dollar. We truly did not waste.

 

Well, it sounds like you don't need any money management help. :confused:

 

However, there are low income people who DO need the help of how to stretch that dollar.

 

Even low income people, who haven't had a good plan, can do better WITH a plan. Not sayig DR is the be all end all....but he has sound ideas.