This blog contains some simple tips and advice from two regular guys. We're not accountants, financial advisors, or brokers, so follow, ignore, or discuss our ideas as you see fit.

Monday, February 16, 2009

Dave Ramsey

Hi Everyone,

I had some people mention Dave Ramsey to me, so I finally got around to going to his webpage:


and checking it out.

One of my favorite features was "The Stupid Tax" which is a feature on the page where you can write in and share your stories of impulsive or just plain stupid money choices. One of my favorites was about being offered 3 months free of a magazine in the checkout line at the store. This has happened to me and I never knew what "the catch" was. I assumed that they gave me the three months free and then if I didn't specifically cancel then I would automatically enroll for another year. This person share's a story where it is even worse. For them the fine print says that you are subscribing for a year and getting the first three months free, so an annual subscription fee actually gets charged to you. You can read the story here:

A Magazine Subscription I Didn't Want

I also liked his 7 Baby Steps though I'm not sure I'd agree with all of his specific decisions. He seemed to feel that you should ONLY have a 15 year fixed mortgage. I think going for a 15 year fixed is a great goal, but I also don't think it's bad to have a 30 year.

Generally I liked his view of debt=bad, certainly worse mantras to have when it comes to money.


Moneymonk said...

For as his baby steps, I think you should always invest in your retirement. back when they were pension individuals was forced into saving a percentage of their income, good they did and they retired well, The reason why most retire under average because they do not consistly invest.

One may have massive debt that takes 4-5 years to pay off. I will not advise they stop contributing to there retirement

just my 2 cents

Dan said...

His big thing is that personal finance is 90% behavior and 10% math. By focusing all of your attention on one item at a time, you can get many more atta boys dividing and conquering.

Also, if you do the math, missing out on retirement in order to focus on debt really doesn't cost all that much. The change in lifestyle cannot be understated.