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-   -   Any Dave Ramsey Fans Here?? (http://forum.e46fanatics.com/showthread.php?t=736710)

BimmerFerret 01-26-2010 02:57 PM

Any Dave Ramsey Fans Here??
 
Just curious, I started reading his website, listening to his show, then I got the book, and shortly thereafter I sold my car (Solstice GXP for about $16,750) and plan to pay my Sky off. I was fortunate enough to have enough cash to buy my BMW so that is paid for.

So I have about $15k of debt left to go, and I re-fi'ed my house to a 4.5% 15-year fixed rate. I have paid off more principal in two months of having the house on a 15-year mortgage than almost a year with a 30-year! It just feels awesome seeing big chunks of the balance drop on every statement :) Currently I am working two jobs and so is my fiance, so that way we can do things and pay down on debt faster.

Anyways, if you are a fan, post up, I'd like to read your story. :thumbsup: Even if you aren't doing it the exact way he describes (we aren't, but we are in the same mindset of never borrowing cash again!!), it may give someone motivation...

ejheverest 02-06-2010 10:23 AM

Seems like your doing well so far, I take Dave Ramsey's style, Automatic Millionaire, and my own plan for budgeting/investing and paying off mortages early.
Currently, refi'd 5% on my condo(using as a rental property since 06')
Zero car debt/payments, 6 months left on girlfriends car
Emergency fund- six months worth, girlfriend has the same
18% in my 401k, 12% girlfriend does
20% for my own trading account, savings for large purchases>1000.00
atleast one extra mortgage payment/year on my condo, her house we are planning for a 6-7 yr mortgage payoff(30 yr fixed original loan)
We still take vacations, and go out to eat but, if we don't have extra money that month, then don't do it. Don't like the feeling of having debt, including car debt.

SLVR JDM 02-08-2010 03:45 PM

I've been meaning to pick up his Total Money Makeover. My sister and future brother in law have done one of his courses and are trying to stick to that plan. I've had a lot of conversations about it with them and I am very interested, but I can tell that I'll probably take the basics of Ramsey's approach and change it slightly if needed.

So far
-30yr mortgage is 5.3%
-12k car loan left, trying to pay extra on that
-10% to my 401k w/6% matching by my employer
-10% contribution to employee stock purchase which gives us a 15% discount off market price - I basically use this as a savings account, but I need to diversify instead of leaving it all in those shares
-Lots of student debt, but all less than 3%
-6 month emergency fund if needed

The biggest thing for me is getting my wife on board with living well beneath our means. We do a decent job so far, but I know we can do a lot better. She calls Dave Ramsey a "life ruiner" haha....just means she can't buy everything she wants :rofl:

BimmerFerret 02-08-2010 03:54 PM

Quote:

Originally Posted by ejheverest (Post 11285106)
Seems like your doing well so far, I take Dave Ramsey's style, Automatic Millionaire, and my own plan for budgeting/investing and paying off mortages early.
Currently, refi'd 5% on my condo(using as a rental property since 06')
Zero car debt/payments, 6 months left on girlfriends car
Emergency fund- six months worth, girlfriend has the same
18% in my 401k, 12% girlfriend does
20% for my own trading account, savings for large purchases>1000.00
atleast one extra mortgage payment/year on my condo, her house we are planning for a 6-7 yr mortgage payoff(30 yr fixed original loan)
We still take vacations, and go out to eat but, if we don't have extra money that month, then don't do it. Don't like the feeling of having debt, including car debt.

That sounds like a good plan, and it sounds like you are doing really well. Hopefully we can get to where you are at soon! We are going to hold off on retirement until we got an emergency fund and we have all the debt paid off, but then it is 15% from each of us.

I don't go 100% word-for-word by Dave's plan, because we aren't in as dire of a situation as a lot of his listeners.

JDM, I'd definitely get the book from your relatives and start with that. Personally, I think that Financial Peace is for those who have NEVER seen a budget or are very limited with financial knowledge. You can get used kits off Ebay for pretty cheap if you are in that group and need some detailed help. If you check out DaveRamsey.com you can get about 85% of the info from his book. Also, be sure to check the debt myths section of his site. VERY insightful.

What kills me is I try to talk to my Mom and step-Dad about it and Mom refuses to listen. I try explaining to her how much extra $$ we have on hand now and she doesn't think his plan is legit and will work. Oh well...

ejheverest 02-10-2010 07:49 PM

I've found that trying to talk to family members about financial decisions and budgets don't work, they don't listen. I'm still in my late 20's and wish I had started saving more when I got my first job at 14.(if I had started an IRA at 14 I wouldn't need to save anything right now at 27)

BimmerFerret 02-12-2010 11:02 AM

Quote:

Originally Posted by ejheverest (Post 11306644)
I've found that trying to talk to family members about financial decisions and budgets don't work, they don't listen. I'm still in my late 20's and wish I had started saving more when I got my first job at 14.(if I had started an IRA at 14 I wouldn't need to save anything right now at 27)

Yeah it is VERY frustrating... I told my Mom I want a credit score of zero and you should have seen the look on her face, it was like I just got done putting kittens in a wood chipper.

Wraisil 02-16-2010 02:25 PM

I've seen a couple of his shows etc but never really read up on his "system." That said I think my style is fairly similar to what he advocates for.

My original retirement plan consisted of doing 20 years (or more) in the Navy then working a well paying job for 20-23 years after that. Between retirement pay from the Navy, the income from the follow on job etc I didn't anticipate a large need to save money. So I spent my money, almost all of it. When I got a medical discharge with no retirement pay though the plan needed a real quick revamp.

Currently my car and motorcycle are paid for and my monthly bills + living expenses amount to under 2k. I put 7% (+4.5% company matching) into my 401(k), another 8% goes into my brokerage account that I actively manage while 7% goes into savings. Of the remainder of my income about 1/2 gets spent and the other 1/2 accumulates in my checking account. I maintain between $1500 and $3000 in there and when the $3000 is reached I transfer $1500 to alternately my brokerage account or savings. The savings I maintain 3-6 months take home pay in and transfer 3 months worth to the brokerage account when it reaches 6 months pay.

This allows me to maintain cash on hand for purchases, quick access to emergency savings if needed while maximizing growth of my long term savings (brokerage account). My current plan is to continue with minimal expenses and only make major purchases (cars/home etc) when I have the money to do so without a loan.

I bought my house 4.5 years before getting out of the navy and having to move to get a new job. When I sold it I realized renting would have cost me $17,000 less for that time period and at closing I had to write a check to sell the house (small check but it hurt psychologically).

The only home purchase I can be sure I won't move out of before I make money on it would be my retirement home and I don't really care for yard work/home maintenance so I'm saving for my dream retirement home. If at some point in the future I end up married with kids I'm sure my plans will change some but if it's more than 3 or 4 years from now I'm guessing I'll be able to pay for most of the home's value and only need to borrow a small amount.

SLVR JDM 02-28-2010 09:46 PM

Just got through "The Total Money Makeover." I've started on my first goal of paying off the car by year end. After that, it is on to the student loans, then only my mortgage will remain!

Great book and it gets you motivated to get rid of unnecessary debt that you are otherwise too lazy to pay off. Even in my situation where I have no credit card debt, I know I will pay things off way ahead of schedule as a result of the philosophy he taught.

rares 02-28-2010 09:55 PM

love ramsey...i am almost out of debt... it takes discipline and a whole lot of sacrifice.. but it is worth it....

BimmerFerret 03-19-2010 11:01 AM

:bump:

Glad to hear it is working out for you guys... Seems some of you all really have a strong handle on things.

Since I started this thread my fiance got laid off (she was an accountant), but with her determination and skills I told her she should do something she likes to do somewhat in the meantime while she waits for the accounting job she wants to pop up. She now waits tables at a restaurant and actually makes close to what she made in accounting!!!!

My car balance is about $10.7k for the Saturn, so if I, or her, get laid off, we can do a fire sale of the car and not be upside down! That alone is a nice relief. We are holding off on retirement investing until it is paid for. I've decided that I want to do something I love to do, so I'm working on buying materials bit-by-bit to start a small business. I've bought everything using cash, so hopefully by this summer I can start marketing my services to customers and get started.

BimmerFerret 05-12-2010 08:55 AM

:bump: again.

Just put down another $3,000 on the Saturn and another monthly payment is coming up. We will probably owe $7,200 on the car by the time the dust settles this month. I'll tell you, the insurance on these cars is a PITA (I'll be married in August so that should drop it quite a bit). I got tempted by an awesome deal on a locally sold E46 M3 convertible...but I stood my ground (phew).

It kind of sucks writing such huge checks (or in my case, ACH'ing the money), but reaching the end of the tunnel will be worth it.

15-year mortgage is also paying off in huge dividends. We've already paid down enough principal in base payments to make the re-fi worth it. :)

SLVR JDM 05-12-2010 09:28 AM

^Nice job! Keep up the good work and stay the course! I'm down to owing 9k on my car and would like to pay it off a bit more quickly, but we just had a baby so that is eating up a fair amount of cash that was previously used for extra car payments.

BimmerFerret 05-12-2010 09:30 AM

Thanks man :)

Wraisil 05-12-2010 09:33 AM

Nice going so far, keep it up! I know all about temptation and cars, been constantly convincing myself to not pick up a second car with a loan and keep saving for it instead. I just keep telling myself that money in hand is better than debt, especially if something happens and I have to look for a new job. A sporty 2 door is in my future, but I'll wait until I can afford it :)

BimmerFerret 05-12-2010 09:43 AM

I know how you feel, it sucks so bad! I want an E46 M so badly so I can taste it. I only have about $9,800-$9,900 of debt left before I'm debt free but the house. So hopefully not that much more longer!!!

ejheverest 05-24-2010 01:43 AM

girlfriend's car is paid off, I'm currently saving for an E46 330zhp, M3, E90 330xi or a swapped E30. It'll be a while but, there is a bunch of cars available for the 6-20k range so it won't take too long.

DylloS 05-25-2010 02:47 PM

Quote:

Originally Posted by 330CiJohn (Post 11314375)
Yeah it is VERY frustrating... I told my Mom I want a credit score of zero and you should have seen the look on her face, it was like I just got done putting kittens in a wood chipper.

I don't understand this.

SLVR JDM 05-25-2010 03:21 PM

Quote:

Originally Posted by DylloS (Post 11790606)
I don't understand this.

I've never understood that mentality. As much as you can save and be debt free, I'd still never want a credit score of zero. If my whole world falls apart and I need to borrow some money, I sure as heck want that option.

BimmerFerret 05-25-2010 03:36 PM

Quote:

Originally Posted by DylloS (Post 11790606)
I don't understand this.

Because I'll have $$. And IF I had to borrow (super extreme medical problems) money to pay bills it is better to have either:

1.) Zero credit score
2.) High credit score

Also, if I can prove I make money with a decent salary, this shouldn't be an issue. It just depends on who you go to. Go to BOA, Chase, PNC, etc. a machine will do most of the decision making, but a local bank will have a human underwriter who can understand the situation better.

DylloS 05-25-2010 03:50 PM

Quote:

Originally Posted by 330CiJohn (Post 11790834)
Because I'll have $$. And IF I had to borrow (super extreme medical problems) money to pay bills it is better to have either:

1.) Zero credit score
2.) High credit score

Also, if I can prove I make money with a decent salary, this shouldn't be an issue. It just depends on who you go to. Go to BOA, Chase, PNC, etc. a machine will do most of the decision making, but a local bank will have a human underwriter who can understand the situation better.

No offense but do you have experience in lending? I do, and I can tell you if sh1t hits the fan and you need to borrow and have a score of zero you're in trouble. Having a score of 700+ is not a bad thing in any way. It sounds like you were just getting excited and saying "I'll never need credit again". If you're doing what you're doing you already have a pretty good score so the choice really isn't up to you.


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