Dave Ramsey hates Mavericks

[Dbarr]

I am 66 year old and wished Dave Ramsey was around when I was 18. He has sound advice. I would be a wealthy man if I had not spent every penny I earned and was steadily in debt. I'd rather pay cash than pay a CC or pay off a loan. Later in life I was able to follow his advice, pay off my dept and pay cash for my pontoon boat to my cars. Just my opinion.

64 here… I was “self unemployed“ from age 25. At 27, had to take out a loan to pay my taxes, so I Learned to live on 50 cents/$… At 40, assets exceeded liabilities, at 55 wrote a check for my forever house plus bumper to bumper renovations… Instant gratification is the enemy to future wealth

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[fourwheelsandadream]

I retired early, have plenty of $ to invest and don’t owe anybody anything.
Debt freedom is awesome

Debt freedom is awesome. But so is one’s ability to leverage debt. Personal finance is exactly what it says. Personal. Some people aren’t comfortable with carrying debt. Some people don’t fear debt and are able to leverage it easily especially with how interest rates are in our current climate

 

[dababaman]

I paid off my student loan and the feeling was amazing. next is the home. I listen to Ramsey sometimes . He is always against buying a new car because of depreciation. And on top of that if you finance it, you lose alot. Now if you keep the car for 20 years that's a different thing.

if you are borrowing money to invest with a solid business plan then great. buying a 60k car on a 7 year loan when your making less then 100k a year is probably not as great.

But I love the idea of not having a monthly payment. I can work at a much less stressful job for less money and be comfortable.

 

[Dbarr]

Debt freedom is awesome. But so is one’s ability to leverage debt. Personal finance is exactly what it says. Personal. Some people aren’t comfortable with carrying debt. Some people don’t fear debt and are able to leverage it easily especially with how interest rates are in our current climate

I do not disagree with your point of view

 

[stoptothink]

He is always against buying a new car because of depreciation. And on top of that if you finance it, you lose alot.

Huh? You often get a better deal on the total price nowadays by taking manufacturer's financing. With my last two vehicle purchases I walked in with a check , expecting to just pay in cash, but then saved 5-figures on the OTD price by taking the financing (which I paid off before the end of the month).

I am HUGELY debt averse. I worked full-time completely through 11yrs of university education so I'd never have to take out a loan, I paid off my home in 3.5yrs and I haven't had a penny of debt since, but you can't math if you don't take financing right now. Highest inflation in half a century and I-bonds paying 7.12%, why wouldn't you take a 0% loan?

 

[emptyschmitz]

Anyone thinking this is an exaggeration? Nope! That guy will never recommend anyone buy a new vehicle. I am jealous though that he can get rich repeating the same thing over and over.

Don't buy a depreciating asset with debt is actually solid reasoning. And his "snowball" approach towards getting rid of debt helped me a ton. I didn't follow his plan to the letter, I had my toys along the way and didn't eat rice and beans and it took me longer, but I got debt free and then bought a house and am paying that mortgage aggressively. I agree with budgeting and having a solid savings, but I wont be tithing.

Debt is a tool but it is so often mis-used to exploit those who don't know. Its easy for us to go "well they should have known better" but Dave is doing what he can to change that, even if we don't agree with all of his approaches. I respect that.

 

[Red Ryder]

Amazing this thread has so many pages.

Dave Ramsey once had a local radio show and did local events around here before he hit it big.
I gained a lot of responsibility and discipline when I was young, partly due to listening to his programs. I'm not adverse to debt, but I've managed to put myself in a better position due that financial discipline. And yes, it is good to not pay interest on a car loan if possible.

 

[Down]

Debt freedom is awesome. But so is one’s ability to leverage debt. Personal finance is exactly what it says. Personal. Some people aren’t comfortable with carrying debt. Some people don’t fear debt and are able to leverage it easily especially with how interest rates are in our current climate

Exactly.
Debt is like booze. For those of us that can use it responsibly, it’s awesome.
For those incapable of using it like an adult? That’s where the Dave Ramsey’s and Alcoholics Anonymous’ of the world come in to play.
Coincidentally, people recovering from bad debt decisions and alcohol problems have another thing in common: they can be unbearable to be around after they’ve “cleaned up”.

 

[Garbone]

Ol' Dave gives good advice that a lot of folks would never hear otherwise. Listened to him for a bit and it did change my perspective for the better. That said, ya , don't listen anymore.

 

[Ronaldo]

Ford should make a Dave Ramsey edition Maverick DR As follows.
XL Hybrid with not a single option Except a built in safe because you have to use cash for everything no credit cards. $21,880

* save money on gas, I will be saving at least $350 a month.
* save money on repairs average $150 a month.
* save money on hybrid maintenance $50 a month
total $550.00
Buy outright 0 percent for three years. $547.00

** Its basically a wash and after three years you own your Maverick DR to drive for the next 7 plus years for free And you will be well on your way to becoming a Ramsey Millionaire.

 

[StuUSA]

Ol' Dave gives good advice that a lot of folks would never hear otherwise. Listened to him for a bit and it did change my perspective for the better. That said, ya , don't listen anymore.

I've never taken out a loan for the purchase of any vehicle. Always paid cash. If I couldn't afford the vehicle I wanted, I bought something more affordable. With cash. No interest expense. Guess what? Because of this conservative financial approach, I'm also able to pay cash for my new Maverick.

 

[stoptothink]

I've never taken out a loan for the purchase of any vehicle. Always paid cash. If I couldn't afford the vehicle I wanted, I bought something more affordable. With cash. No interest expense. Guess what? Because of this conservative financial approach, I'm also able to pay cash for my new Maverick.

I've never purchased a vehicle that I couldn't pay for in cash, but that doesn't mean I did - 3 of my 5 vehicle purchases were financed because it literally saved me money on the OTD price. Today I could buy many dozen Mavericks in cash, but we'll be financing ours and making >$1k in interest in the first 6 months by throwing the cash we had set aside in a bond fund with a guaranteed return. I'm debt averse, not mathematically challenged.

 

[Garbone]

I've never purchased a vehicle that I couldn't pay for in cash, but that doesn't mean I did - 3 of my 5 vehicle purchases were financed because it literally saved me money on the OTD price. Today I could buy many dozen Mavericks in cash, but we'll be financing ours and making >$1k in interest in the first 6 months by throwing the cash we had set aside in a bond fund with a guaranteed return. I'm debt averse, not mathematically challenged.

Heh,. I bought our Mustang from out of state and had it delivered. I tried to get the dealer to just run the car on my debit card and they refused. They made me use Ford Motor Credit or said they would wait for a check from my credit union. Paid the loan the first day I could (kept calling Ford Motor Credit )and a month later Ford sent me a $100 check for overpayment. I still do not understand but it ended saving me $100 in the end.

 

[stoptothink]

Heh,. I bought our Mustang from out of state and had it delivered. I tried to get the dealer to just run the car on my debit card and they refused. They made me use Ford Motor Credit or said they would wait for a check from my credit union. Paid the loan the first day I could (kept calling Ford Motor Credit )and a month later Ford sent me a $100 check for overpayment. I still do not understand but it ended saving me $100 in the end.

Due to manufacturer incentives, financing our jetta in '16 saved us $1500 on the OTD price, over 10% of the total cost (thanks Dieselgate). Manufacturer's incentivize financing for the exact same reason banks offer cash back and rewards for using credit cards and Dave Ramsey is popular: the large majority of people are financial illiterate...it's great for those of us who aren't.

 

[Chris_G]

I've never taken out a loan for the purchase of any vehicle. Always paid cash. If I couldn't afford the vehicle I wanted, I bought something more affordable. With cash. No interest expense. Guess what? Because of this conservative financial approach, I'm also able to pay cash for my new Maverick.

What is this "CASH" that you speak of?

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