Dave Ramsey vent - Page 4

[Delicateflower]

I can tolerate his theories in regard to getting out of debt. Paying off lower interest rates first, saving $1000 cash even if you have a 25% $1000 debt, all of that is psychology. Even paying off your mortgage can be a reasonable emotional and psychological issue rather than a financial one (because if you can earn 6% investing the extra money you should do that).

But when he branches out and applies the bible as an investment advisor, that's just crazy! And he doesn't come out and say that is his reasoning, either.

Originally Posted by AllieFaye

Bolding mine. I disagree with the notion that all businesses use credit. There are companies, large and small, that manage to operate in a cash-flow or self-funding position.

I don't trust him as a source. The way it was explained in my business management class made it very clear that to grow a business and maintain cash flow credit is a very useful tool. If you can make more money from it than it costs you, you'd be unwise not to use it. After all, waiting for an invoice to pay a contractor or supplier is credit. It might only be 30 days worth, but you can have taken delivery, sold, banked and earned two weeks interest on the money before you need to write a check for the supplier.

[lolar2]

He doesn't use the Bible as an investment advisor, he uses it as an anti-debt advisor. And yes, he does come out and say that-- at least he used to, back when I had time to listen to the radio in 2007! And I'm 99% sure that he also refers to the Bible in his anti-debt reasoning in his books.

And he is very much aware of leverage as applied to a business context. He just is against it for philosophical reasons. He writes about his arguments against leverage in one of his books but I don't remember which one.

That's not to say I agree with everything he says, much less that it should apply to everyone on earth. But he knows what he is saying and he isn't being ignorant. He knows what all the other financial advisors, such as Suze Orman, say and he has his own reasons for disagreeing; it isn't that he hasn't heard of their suggestions before.

Personally I like them both! For different situations and different reasons.

[mtm]

I think read a bunch of different advisors including DR and Suze Orman, David Bach etc and hopefully one will inspire you. I really like DRs babysteps but was not a big fan of DRs writing style and have not seen/heard his show. In the end it really comes down to you need the knowledge to control your own money.

[annethcz]

Originally Posted by flowers

One option for the 22 year old (b/c it can be a slippery slope) is to have the parents open one in her name but be responsible for it. Let her make a purchase on it (like plane tickets) and then give that parents to make monthly payments.

This thread is cracking me up. I'm pretty tight with my family, I get money advice (and monetary gifts) from my parents. But the notion of whether or not parents would ALLOW a 22 year old to get a credit card is so funny. She's an adult. Surely I'm not the only poster who was married with kids by the age of 22. I had a bank account at 16, credit card account at 18, and a mortgage at the age of 21.

I find the DR thread here to be helpful, but I'll be honest that the man drives me batty. I disagree with him on a great many things, including the notion that credit is inherently evil.

[flowers]

Originally Posted by annethcz

This thread is cracking me up. I'm pretty tight with my family, I get money advice (and monetary gifts) from my parents. But the notion of whether or not parents would ALLOW a 22 year old to get a credit card is so funny. She's an adult. Surely I'm not the only poster who was married with kids by the age of 22. I had a bank account at 16, credit card account at 18, and a mortgage at the age of 21.

I find the DR thread here to be helpful, but I'll be honest that the man drives me batty. I disagree with him on a great many things, including the notion that credit is inherently evil.

That's not what I meant, but I can appreciate your sentiment.

We have a friend whose father bought a house for her at age 21, by co-signing and putting it in her name. He stayed with her every step of the way so she couldn't mess up, she gained a ton of credit and is in really great financial state right now at age 30. Dh and I always thought it was a really great situation and wish we had someone guiding us like that.

That was the situation I was modeling my comment after.