The Dave Ramsey Plan

[Jet Black]

I had to put tires on my truck the other day. that was $800. if I only had a $1000 emergency fund, there goes my fund save for $200

Yup, and that might have made you question whether your really needed to spend $800 on tires.

[Ballcoach10]

only if you get a weekly paycheck or salary. That $15-$30k sitting there sure feels good, even if you have a truck payment or auto loan....even more so if your self employed and there are no guarantees when your next check will come or if it does how much it is.

I had to put tires on my truck the other day. that was $800. if I only had a $1000 emergency fund, there goes my fund save for $200

This. I saved about 3 grand for my emergency fund. Just didn't think 1 was sufficient

[txtrophy85]

Yup, and that might have made you question whether your really needed to spend $800 on tires.

If you can find 33" tires cheaper I'd like to hear about it.

My job requires these tires, so that's what they cost

[txtrophy85]

If there are no guarantees when your next paycheck is coming in than why would you want to hang onto a truck payment?

because you don't know when your next check is going to be deposited.

if you pay cash for a truck, then spend all your money except for the paltry $1000 in savings....what are you going to live on?

[Jet Black]

If you can find 33" tires cheaper I'd like to hear about it.

My job requires these tires, so that's what they cost

Actually Dave would say that it's not like the tires wore out in a day. You would know well in advance that you were going to need to replace them and that you should have been saving up in advance. Replacing worn out tires wouldn't fit into the emergency category. Same as Christmas.

Also, just curious, what job requires 33" tires?

[txtrophy85]

Actually Dave would say that it's not like the tires wore out in a day. You would know well in advance that you were going to need to replace them and that you should have been saving up in advance. Replacing worn out tires wouldn't fit into the emergency category. Same as Christmas.

Also, just curious, what job requires 33" tires?

ranch real estate broker. those are the smallest tires that fit on my truck.

and no, the tires didn't wear out in a day. but they do wear out. and when they do and become unsafe, you have to go buy some more.

[TxTechBowhunter]

because you don't know when your next check is going to be deposited.

if you pay cash for a truck, then spend all your money except for the paltry $1000 in savings....what are you going to live on?

How many emergencies do you have come up that cost more than a $1000?

Keep in mind the point of this thread is the Dave Ramsey plan and the teachings he recommends. Those teachings may no work for everybody but they have proved successful for millions of his listeners.

[skyhawk]

only if you get a weekly paycheck or salary. That $15-$30k sitting there sure feels good, even if you have a truck payment or auto loan....even more so if your self employed and there are no guarantees when your next check will come or if it does how much it is.

I had to put tires on my truck the other day. that was $800. if I only had a $1000 emergency fund, there goes my fund save for $200

If you pay off your debts, and change your behaviors, you can easily get $15-30K back in the bank, then you would have that with no debt. Wouldn't that be a more secure situation than what you have now? And the budget helps with being able to save up for things you KNOW you are going to need down the road like new tires, and eventually a vehicle.

The borrower is slave to the lender, and I don't like being in bondage, so I choose not to be.

[txtrophy85]

If you pay off your debts, and change your behaviors, you can easily get $15-30K back in the bank, then you would have that with no debt. Wouldn't that be a more secure situation than what you have now? And the budget helps with being able to save up for things you KNOW you are going to need down the road like new tires, and eventually a vehicle.

The borrower is slave to the lender, and I don't like being in bondage, so I choose not to be.

I understand. but if a person is making $45k a year, its gonna be hard to pay off a house, car, pay for living expenses, etc. If a person has no bills, then yes, a person making a average income can put $30k in the bank pretty quickly.

I agree that things like credit card debt is bad. but a mortgage on a house and a vehicle payment, as long as its reasonable, Isn't neccesarrily a bad thing. I come from a school of thought to keep your liquid cash to make investments to make you money

[mjhaverkamp]

I understand. but if a person is making $45k a year, its gonna be hard to pay off a house, car, pay for living expenses, etc. If a person has no bills, then yes, a person making a average income can put $30k in the bank pretty quickly.

I agree that things like credit card debt is bad. but a mortgage on a house and a vehicle payment, as long as its reasonable, Isn't neccesarrily a bad thing. I come from a school of thought to keep your liquid cash to make investments to make you money

In other words, keep your powder dry.

[BULL21]

I understand. but if a person is making $45k a year, its gonna be hard to pay off a house, car, pay for living expenses, etc. If a person has no bills, then yes, a person making a average income can put $30k in the bank pretty quickly.

I agree that things like credit card debt is bad. but a mortgage on a house and a vehicle payment, as long as its reasonable, Isn't neccesarrily a bad thing. I come from a school of thought to keep your liquid cash to make investments to make you money

Your losing money every month making payments. Buy a cheap car with cash. It may not be what you want, but it gets you from point A to point B. In your example of the person with a 45k salary how much liquidity do they really have to make investments with house, car, bills, kids, etc. In many cases, we as a society don't know how to say NO. We don't like to do without.

[huntnfishtex]

I understand. but if a person is making $45k a year, its gonna be hard to pay off a house, car, pay for living expenses, etc. If a person has no bills, then yes, a person making a average income can put $30k in the bank pretty quickly.

I agree that things like credit card debt is bad. but a mortgage on a house and a vehicle payment, as long as its reasonable, Isn't neccesarrily a bad thing. I come from a school of thought to keep your liquid cash to make investments to make you money

Don't event try man! If its not the Ramsey way its wrong. And then if you do the same thing just without ol davey telling you to your a 1% er and why arent you sharing your common sense with everyone else like Davey The thing is that its your money and do whatever you want with it. Ramsey gives some great advice and has obviously helped a lot of people. ..for a fee. And good for him and all he has helped get out of debt. when all it really comes down to is common sense and don't spend more than you can afford.

[Mike D]

I understand. but if a person is making $45k a year, its gonna be hard to pay off a house, car, pay for living expenses, etc. If a person has no bills, then yes, a person making a average income can put $30k in the bank pretty quickly.

I agree that things like credit card debt is bad. but a mortgage on a house and a vehicle payment, as long as its reasonable, Isn't neccesarrily a bad thing. I come from a school of thought to keep your liquid cash to make investments to make you money

A car is not an asset period. It loses value from day one. If you start out early in life there is no reason you cant pay cash for everything, put plenty of money back for layer and retire early. I wish I had started doing what I'm doing now 20 years ago.I would be retiring in 10 years.

And if leveraged wrong, even a house can lose you money.

[Ballcoach10]

So would Dave tell me that I should rent the whole time I pay off my student loans and getting a mortgage is bad?

[Mike D]

So would Dave tell me that I should rent the whole time I pay off my student loans and getting a mortgage is bad?

He would tell you that if you can't put a minimum 20% down and pay it off in 15 years, then yes continue to rent.

A house is not always a blessing if not bought smart.