Dave Ramsey worth it?

[Anonymous]

Anonymous wrote:DR haters- if you don't suggest his advice... Could you tell me who you do recommend? Any good finance blogs to follow?
Definitely willing to explore different options.

Yes, go to www.bogleheads.org

These are followers of Jack Bogle of Vanguard. His is the best advice and also the least scammy of them all. The bogleheads web site is awesome with good wikis to get started. Then you can post questions, get help, etc. from very successful and knowledgeable people who have gotten out of debt and are making very complicated financial decisions.

People here are right -- Dave Ramsey, Suze Orman, etc., while not bad, are preaching to a very middle of the road financial consumer. It's sort of common denominator advice instead of financial information/decisions tailored to your own circumstances. You can do better.

[Anonymous]

I think Dave Ramsey's advice is good for those starting out. It is a good way to get out of debt. But the PPs are correct who say his approach is very conservative and not necessarily the fastest way to build wealth.

Here are his steps:

1. Baby Emergency Fund ($1000)
- I actually think this is pretty small, and would make it 2 or 3 K)
2. Snowball (paying down debt, in order of smallest to largest)
- You will save more in interest payments if you do this by highest interest rate to lowest, but the smallest to largest debt is to help keep you motivated in the beginning.
- I personally wouldn't lump all debt into this category. I would exclude student loans and possibly car loans, but only if the interest rates are very low, as in less than 3 percent. I would move those to between steps 4 and 5.
3. Fully funded emergency fund (3-6 months expenses)
4. Retirement savings
- Dave recommends investing 15% of household income
5. College savings
6. Pay off home
- I think the wisdom in this step depends upon your age and your interest rate. I am young, and have a very low interest rate. I have no intentions of paying off my mortgage early. If I pay it as scheduled, then it will be paid off right when I am ready to retire, and I would rather be investing my money and building wealth since the rate is so low.
7. Build wealth and give

[Anonymous]

I just find it odd that a lot of you here seem to be savvy about money and dealing with debt. Why then would you pay to attend a class or buy CD/DVDs? Even if it were an investing strategy type of thing it wouldn't be different. Talk to a personal financial adviser who knows you and can speak to your financial situation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:DR haters- if you don't suggest his advice... Could you tell me who you do recommend? Any good finance blogs to follow?
Definitely willing to explore different options.

Yes, go to www.bogleheads.org

These are followers of Jack Bogle of Vanguard. His is the best advice and also the least scammy of them all. The bogleheads web site is awesome with good wikis to get started. Then you can post questions, get help, etc. from very successful and knowledgeable people who have gotten out of debt and are making very complicated financial decisions.

People here are right -- Dave Ramsey, Suze Orman, etc., while not bad, are preaching to a very middle of the road financial consumer. It's sort of common denominator advice instead of financial information/decisions tailored to your own circumstances. You can do better.

I agree that there's no better place for investment advice than Bogleheads, but for getting out of debt Ramsey is more targeted. His advice there is solid and can be motivational.

[Anonymous]

Is the OP is looking for getting out of debt advice not investment advise?

[Anonymous]

I subscribe to the Suze Orman way of thinking on debt. And she says student loans before car because student loans can't be discharged in bankruptcy.

[Anonymous]

Dave Ramsey is good for help getting out of debt and that is what you need now. Once you have paid off or paid down your debt, then sites likes bogleheads are good for advice about investing. However, you are not in a position to invest yet. If it were me, I would start with Dave Ramsey.

[Anonymous]

Anonymous wrote:I subscribe to the Suze Orman way of thinking on debt. And she says student loans before car because student loans can't be discharged in bankruptcy.

This makes sense only if there is a realistic chance of ending up in bankruptcy. OP didn't disclose anything to suggest that bankruptcy is a risk here.

[Anonymous]

I know a few people who did Dave Ramsey's program and rave about how wonderful it was.

[Anonymous]

Suze orman is by far the worst.

[Anonymous]

Some context on orman: http://money.msn.com/saving-money-tips/post.aspx?post=be8ce496-d03d-4ba5-9932-c00f905feffb

[Anonymous]

I agree Dave Ramsey is a great place to start. Very motivating!

As you make progress towards your goals though, you definitely want to branch out.

Bogleheads is good
I also read:
http://www.getrichslowly.org/blog/
http://www.thesimpledollar.com/
http://www.mrmoneymustache.com/

[Anonymous]

Anonymous wrote:Is the OP is looking for getting out of debt advice not investment advise?

Yes, OP is looking to get out of debt.

[Anonymous]

Anonymous wrote:I think Dave Ramsey is fantastic. His book "The Total Money Makeover" is all you need to start and it's not expensive, around $25, I think. Give it a shot. Also, definitely listen to his radio show or his podcasts. There's no substitute for hearing his advice/encouragement and hearing from others who have gotten out of debt to keep you motivated.

Or borrow it from the library, that's what I did

[Anonymous]

Anonymous wrote:No. He is patronizing and not very smart. He is out to make money and doesn't tailor his advice to particular situations. He also gives really bad advice if you want to build real wealth.

His aim is to help people get out of debt -- not wealth creation and management -- there is a difference.
He is usually talking to people who are not tremendously financially sophisticated -- which is often how people get into debt in the first place.