Any Dave Ramsey fans here?

andymc29

I listen to Dave Ramsey show podcasts daily. I never listened to him when I was trying to get out of debt, it's a recent discovery.

He's a very hard hitting debt councillor on the radio who doesn't take excuses off people. And is great to listen to.

Basically he has these babysteps to getting debt free and wealthy:
1.Build up a $1000 emergency fund
2. Get all debts up to date on payments
3. Pay off your debts smallest to largest in that order
4. Save up 3-6 months of living expenses
5. Invest 15% of your income into a retirement fund and sort out kids university funds.
6. Pay off your mortgage as quick as you can.

It's all straight forward plain talking advise, and very inspirational when you hear the people phoning in to scream that they're debt free.

tiff

Yes! You forgot to mention he is American so some of the stuff he preaches doesnt necessarily translate. IE giving I think 10% of your income to the church etc. But the rest of it is spot on and how we are trying to live our lives. He also advocates paying cash for everything, including a car and this has made a massive difference to the way we think. We have a 12 year old car, no loan as we paid cash and only had one bill apart from usual maintenance so cheap motoring for 2 years so far.

I love listening to the podcasts for motivation, even if they are a bit long with adverts.

RAS

Also paying off you smallest debt first does not make sense, check the snowball on www.whatsthecost.com

andymc29

I listen to the podcasts that have no adverts at all.
Try this link in your podcast program:
http://www.daveramsey.com/media/audio/podcast/podcast.xml

eyeopener2

Dave Ramsey has some great ideas and really rams it home that it is your responsibility to get out of the hole you have dug.

RAS, he does advocate paying off the smallest debt first but he says that is to give you the impetus to attack the larger debts. Paying off a small debt gives you one little victory rather than slogging against the biggies and, seemingly, not getting anywhere fast.

A lot of it is very American and some doesn't tranlsate directly (a lot does though, especially what to do post debt about having savings, retirement funds and investments) and maybe we could all learn something from giving 10% to charity?

E2

tiff

We do actually already give to charity out of my husbands wages and I volunteer for a charity so we do enough, I dont think it should be "compulsory" that everyone gives and not 10% either.

If anyone is interested in what we're talking about you can find Dave Ramsey here

Here is where you can listen to podcasts of his radio show https://www.mytotalmoneymakeover.com/?event=displaypodcastfeaturetab&ictid=radioplayer

jojo1964

andymc29 wrote: »

I listen to Dave Ramsey show podcasts daily. I never listened to him when I was trying to get out of debt, it's a recent discovery.

He's a very hard hitting debt councillor on the radio who doesn't take excuses off people. And is great to listen to.

Basically he has these babysteps to getting debt free and wealthy:
1.Build up a $1000 emergency fund
2. Get all debts up to date on payments
3. Pay off your debts smallest to largest in that order
4. Save up 3-6 months of living expenses
5. Invest 15% of your income into a retirement fund and sort out kids university funds.
6. Pay off your mortgage as quick as you can.

It's all straight forward plain talking advise, and very inspirational when you hear the people phoning in to scream that they're debt free.

If most people were in the position to do the above, its unlikely they would have been in debt in the first place.

rictus123

Well its upto us to get into the position to be able to do so. Onwards and upwards.

eyeopener2

I think your misunderstanding the process JoJo. This could take years to achieve, and does, but it's all done in that order and it seems to work.

seriousDFW

The order these should be done will vary from person to person. For example, having lots of debt but saving £1000 emergency fund doesn't make sense if you have £1000 of available credit on credit cards - it's better to start paying off the debt and reducing interest, as per Martin's advice.

Some people will find tackling smaller debts better as psychologically can lead to them feeling more successful and therefore spending less. Others take a more clinical approach and take a positive feeling knowing they are paying off debts at the highest interest, even if they're larger than smaller debts.

eyeopener2

When you read the reasons for the $1000 mergency fund, not £, he does make sense. It is all about training yourself for the future when you are debt free. The cards are gone, you have no available credit therefore when it rains, and it will, you do not need (or indeed have) the credit card. Your brakes need doing, £200, and that emergency fund is there for you. And we know how easy it is to use the CC just once, pay it back next month, but you never do.