What are your thoughts on Dave Ramsey’s money philosophy? I think it makes sense but some things such as credit cards are too extreme. It seems like he doesn’t believe in “good debt”. Thoughts? TC: 130k YOE: <1
Dave Ramsey is great for people in serious financial duress, once you get out of debt and have a decent TC it's better to move on from some of his ideas (like only purchasing cars in cash).
Why would you finance a depreciating asset? Like do you finance boats, cookware, blenders or lettuce? Financing deprecating assets is the best way to stay poor regardless of your salary.
Granted one new car isn't bad, but I've seen a guy fiance a bunch of cars (himself, wife, kids), a bike, boat, RV and some other toys. Guy makes 300k and is broke af.
His right till u pay off ur credit card. Helpful for 90% of americans
His advice is at least 30 years out of date and full of Boomer superstitions.
I followed him for a while. He does not understand West Coast especially Silicon Valley lifestyle.
Which is what? Lots of drinks, overpriced appetizers 😝
Avocado toast?
I like Ramit Sethi's views on finance better. Highly recommend his book "I'll teach you to be rich"
He caters to people who are very risk averse and want to build wealth slowly but surely. Investing in mutual funds, paying off your debts and living a simple life all are fantastic and will never fail you.
He is good. Just that he talks mostly about save dont overspend and finally give before you die. His show mostly idiots calling to get scolding for what should be apparent. He still favors blue collar jobs and business as way to make money. Its not really very useful for tech crowd who make pretty well even at IBM. But he definitely gives good advice to people who call him. It's just that it's not relevant for majority of people on blind
Not using credit cards leaves money on the table. I pay mine completely off at the end of the month, using debit instead would be bonkers. Also, when paying off loans if you're mildly intelligent you can come up with a better scheme than his suggestion. Guess the point is, I'm definitely not his target audience. Maybe his advice is good for someone else.
He's helpful for people who can't control their spending habits, hence the advice to put cash in different envelopes every month for food and clothes and whatnot. Once you earn way more than you spend, you can afford to overspend a bit to save time and focus on investment or Leetcode to increase TC.
He doesn’t think stonks only go up…