Dave ramsey

[innergel]

What book do any of you recommend getting?

The Total Money Makeover by Dave Ramsey

[12thman]

I am pumped to see this thread here! Dave Ramsey has it down to a science. No one should be in debt except for catastrophic circumstances if you follow the steps. And life is a whole lot easier when you are not in debt. I encourage everyone to check out his website and his radio show. It will really help your finances and other areas of life as well since finances issues are one of the leading struggles in marriage. check it out!

[Lip]

I'm a DR fan. Daughter was getting on board and have been working to get the wife on board since July. Ike proved $1K wasn't enough and it challenged our daughter's commitment but we got through it without adding any more debt.

Wife, daughter, and I are going to see Dave Live this Saturday. I talked wife, daughter, and daughter's fiance (my baby's getting married) into starting FPU this coming Sunday. There's a church in Atascocita that's starting a class so we went a couple weeks ago, introduced ourselves, and signed up.

We have less than $100K in debt including the house but this year will be a challenge to make much progress while paying cash for a wedding. Man those things get expensive quick.

[JeffJ]

Serious Question:

What does Dave say about paying off mortgage early vs 401k?IRA contributions?

I had someone tell me recently Dave said no 401k until mortgage is paid off...

[SPUD]

Serious Question:

What does Dave say about paying off mortgage early vs 401k?IRA contributions?

I had someone tell me recently Dave said no 401k until mortgage is paid off...

I think no 401k would be a DUMB idea. I get FREE money from my employer just by having the 401k.

he might say only put in what they will match.

[bobo]

Dave wouldn't tell you not to support a 401K. It's free money.

[scotth89]

He says to put your money in a roth ira if your employer does not match any of your contributions.

[BrandonA]

He says to put your money in a roth ira if your employer does not match any of your contributions.

Most employers are beginning to offer a Roth 401K as well. You are able to contibute larger amounts.

[CletusBodeen]

Only debt that we have is the new house and truck. We have 1 joint cc that never gets used. We pay cash for eveything else. Since we are saving money for an adoption I have cut my extra spending out as she has too.

[JeffJ]

I think no 401k would be a DUMB idea. I get FREE money from my employer just by having the 401k.

he might say only put in what they will match.

I dont understand the math though. Wouldnt it make more sense to max out a 401k for thirty years than pay extra mortgage?

Say I locked in at 5% on my mortgage. The 30 year number on the S&P is 11.75% per year...more than twice the 5% mortgage.

Why pay extra every month to rid myself of 5% debt when I could invest it and over the long haul average 11.75%

[wildaggie]

Step 1: $1000 emergency fund
Step 2: Debt snowball, from smallest to largest debt
Step 3: Real emergency fund of 3-6 month's expenses
Step 4: 15% of salary into retirement. 401K/Roth IRA combination, starting with 401K up to what employer matches, then maxing out Roth IRA, and finishing out in 401K
Step 5: College fund for kids
Step 6: Pay off the mortgage
Step 7: Wealth-building and enjoying financial freedom

[Lip]

From what I've seen on his website, his philosophy is if step 2 is going to take less than 2 years to complete, it's ok to stop 401K contributions. Otherwise, keep contributing to the level of your company's match.

[Michael]

There's a church in Atascocita that's starting a class so we went a couple weeks ago, introduced ourselves, and signed up.

Is that at ACC (Atascocita Community Church)? If so, that's the church we attended before we left.

Michael

[Snakelover]

I had someone tell me recently Dave said no 401k until mortgage is paid off...

No way he said that.

[JeffJ]

No way he said that.

I was sure hoping he wouldnt. Never followed him but have looked into his ideas. I agree with about 85% of it.