Shows how out of touch I am with some aspects of the culture. Here I was thinking this Ramsey guy had something to do with cooking. Not that I ever saw that cooking guy either.
Oh well.
First off I want to say I really enjoy listening to Dave Ramsey on occasion. He sure seems to have helped a lot of people which is good.
That said, I agree with you--Ramsey's advice never made sense to me so I never followed it. Perhaps it helps some people who are just trying to get out of a debt disaster. Like you say, anything will work (at first) if you'll just quit spending money like an idiot.
Shows how out of touch I am with some aspects of the culture. Here I was thinking this Ramsey guy had something to do with cooking. Not that I ever saw that cooking guy either.
Oh well.
I think he would argue that having a credit card is not inconsistent with being financially responsible if you pay off your debt every month. I presume his objection to them is that they make impulse buying much easier and promote choices that people might regret later.
More than simply being debt free, Ramsay is in favor of accumulating capital: for charity, helping others, buying homes, taking care of your family, starting businesses, or to retire comfortably. To the extent that credit cards make spending easier, it probably reduces capital acquisition for most people. Of course for the economy as a whole, making spending easier is a feature not a bug.
That said, I, like most everyone on this forum, have credit cards....so I can buy that ivory backscratcher I suddenly need so badly.
I don't know what the hell you guys are talking about.
Ramsey's approach is a general approach for people just like Nick explained.
Save your money, be frugal, pay off your home, buying expensive cars and watches won't make you happy, etc.
Pretty simple advice that works for anyone that already doesn't live this way.
Similar to the Financial Samurai blog.
BTW - Rip is more of the Warren Buffet/Jack Bogle of this shit.
Agreed. Ramsey helps people dig themselves out of a hole. He does this by understanding psychology. Some of the stuff he says is unwise, but possibly helpful (like paying off the smallest debts first, rather than the debts with the highest interest rates). Some things he says are flat out wrong (like saying that people should buy "Growth Stock Mutual Funds" and that they will return 12%/year).
Rip does not have psychology as his aim. He tells you what to do and how to do it. He doesn't say - if it feels better to skips squats, then you should because you are still doing something.
I actually think x-fit is closer to ramsey....or orange theory or zumba. these are all better than nothing, but NOT the most effective.
I have always thought of Rip and DR as one in the same. Tried and tested methods that have worked over many of years and produced great outcomes, if done the way it's outlined. I follow both and have questioned Rip and Dave many times, but 9/10 times their advice sticks and is a close to the right answer as needed without to much extra (nuance). Both have stood the test of time too, they both answer questions and dedicate a large amount of their time helping others.
Rip, Dave doesn't like credit cards because studies have shown people will buy more stuff with a credit card, than with cash or even a debit card. Dave says it a psychological thing,if we just say to ourselves "ill just pay it off later," we buy more. Credit card points are designed for you to spend more money on the card so you get more points. Spending money that could be saved, just to get points, is not something he recommends. I think Dave looks at credit cards like you look at the trap bar.