Comments on: Dave Ramsey’s 7 Baby Steps http://cashmoneylife.com/dave-ramsey-baby-steps-financial-peace-university/ Money Management, Small Business, Career Wed, 23 May 2012 05:58:22 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: SamsMom http://cashmoneylife.com/dave-ramsey-baby-steps-financial-peace-university/#comment-45984 SamsMom Wed, 18 Apr 2012 13:09:29 +0000 http://cashmoneylife.com/2008/02/25/dave-ramsey-baby-steps-financial-peace-university/#comment-45984 All I can tell you is to do what I did when I was your age and in the same position... additional income. I worked two jobs for 5 years to pay off some stupid credit card debt from college, early pay off on my student loan and put myself in a better position long term. Twenty years ago my only real options for that were retail and babysitting. Don't kid yourself about retail, some of them pay pretty well you just have to figure out where that is. Babysitting kept me in cash. I went from graduating in debt with a low paying job to 15 years later having ZERO debt (including my house and car) maxing out my 401K and being able to help out family members who needed it. I married late and fortunately my husband had no preceeding debt other than a car and his house. I now stay at home with our child, we still have no debt and continue to consistently put away money for retirement, tithe and help out family members on both sides (we paid off his car too, and I'm still driving the same one). It can be done if you are willing to work hard enough. Financial security was the highest priority for me, you have to decide if it's a priority for you. All I can tell you is to do what I did when I was your age and in the same position… additional income. I worked two jobs for 5 years to pay off some stupid credit card debt from college, early pay off on my student loan and put myself in a better position long term. Twenty years ago my only real options for that were retail and babysitting. Don’t kid yourself about retail, some of them pay pretty well you just have to figure out where that is. Babysitting kept me in cash. I went from graduating in debt with a low paying job to 15 years later having ZERO debt (including my house and car) maxing out my 401K and being able to help out family members who needed it. I married late and fortunately my husband had no preceeding debt other than a car and his house. I now stay at home with our child, we still have no debt and continue to consistently put away money for retirement, tithe and help out family members on both sides (we paid off his car too, and I’m still driving the same one). It can be done if you are willing to work hard enough. Financial security was the highest priority for me, you have to decide if it’s a priority for you.

]]> By: jim http://cashmoneylife.com/dave-ramsey-baby-steps-financial-peace-university/#comment-45783 jim Wed, 21 Mar 2012 05:33:20 +0000 http://cashmoneylife.com/2008/02/25/dave-ramsey-baby-steps-financial-peace-university/#comment-45783 Mike, Do NOT take out another loan on your 401! Just don't go there. If you do that again (and I don't think you should have done it even once), you are setting yourself up to do that over and over again. The problem with that is, besides the financial implications, is that you're not in the right mind set. You aren't treating that account as a retirement account. You're treating it as a semi-ER fund. Please don't do that. Mike,
Do NOT take out another loan on your 401! Just don’t go there. If you do that again (and I don’t think you should have done it even once), you are setting yourself up to do that over and over again. The problem with that is, besides the financial implications, is that you’re not in the right mind set. You aren’t treating that account as a retirement account. You’re treating it as a semi-ER fund. Please don’t do that.

]]> By: jim http://cashmoneylife.com/dave-ramsey-baby-steps-financial-peace-university/#comment-45782 jim Wed, 21 Mar 2012 05:21:47 +0000 http://cashmoneylife.com/2008/02/25/dave-ramsey-baby-steps-financial-peace-university/#comment-45782 Martina, My spouse and I are in a similar position. This is what we've decided to do. We owe about $150,000 on our mortgage. We are going to up our payment by at least $1000 in a few months when our son is out of college. We are also going to up our savings - an account set aside ONLY for the mortgage reduction. Once what we owe on our mortgage is down to say $75,000 and our "mortgage only" savings is up to $75,000 we're going to make one large final payment and be done with it. That way, should something come up where we need the cash, we'll have it. But, it will also force us to pay more on the mortgage too. Now it's actually kind of fun because we've turned it into a game. When the mortgage statement comes in the mail, we immediately compare it to what we have in our "mortgage only" savings account and then try to figure out how we can add more to both. You'll think twice about that weekend get away when you realize that what you'll be spending on that could have gone to your mortgage or your "mortgage only" savings account. Seriously - this CAN be fun! Martina,
My spouse and I are in a similar position. This is what we’ve decided to do. We owe about $150,000 on our mortgage. We are going to up our payment by at least $1000 in a few months when our son is out of college. We are also going to up our savings – an account set aside ONLY for the mortgage reduction. Once what we owe on our mortgage is down to say $75,000 and our “mortgage only” savings is up to $75,000 we’re going to make one large final payment and be done with it. That way, should something come up where we need the cash, we’ll have it. But, it will also force us to pay more on the mortgage too. Now it’s actually kind of fun because we’ve turned it into a game. When the mortgage statement comes in the mail, we immediately compare it to what we have in our “mortgage only” savings account and then try to figure out how we can add more to both. You’ll think twice about that weekend get away when you realize that what you’ll be spending on that could have gone to your mortgage or your “mortgage only” savings account. Seriously – this CAN be fun!

]]> By: jim http://cashmoneylife.com/dave-ramsey-baby-steps-financial-peace-university/#comment-45781 jim Wed, 21 Mar 2012 05:12:06 +0000 http://cashmoneylife.com/2008/02/25/dave-ramsey-baby-steps-financial-peace-university/#comment-45781 It's called "Boundaries" and it's excellent! It’s called “Boundaries” and it’s excellent!

]]> By: Mike http://cashmoneylife.com/dave-ramsey-baby-steps-financial-peace-university/#comment-45585 Mike Mon, 20 Feb 2012 20:32:40 +0000 http://cashmoneylife.com/2008/02/25/dave-ramsey-baby-steps-financial-peace-university/#comment-45585 You're taking a 75% loss in the first year to get your savings, assuming you're in the 25% tax bracket. Tell me how you make more money in the long run investing that money when EVERY YEAR you're taking that immediate 75% loss? See the above comment under "Jesse" for math details. This scam of keeping a mortgage and staying in debt for the tax savings needs to be killed, and you should be helping to do so. Part of being an "advisor" is killing myths/scams and telling people the honest truth and teaching them what's a scam and what's smart money. You’re taking a 75% loss in the first year to get your savings, assuming you’re in the 25% tax bracket. Tell me how you make more money in the long run investing that money when EVERY YEAR you’re taking that immediate 75% loss? See the above comment under “Jesse” for math details.

This scam of keeping a mortgage and staying in debt for the tax savings needs to be killed, and you should be helping to do so. Part of being an “advisor” is killing myths/scams and telling people the honest truth and teaching them what’s a scam and what’s smart money.

]]> By: Mike http://cashmoneylife.com/dave-ramsey-baby-steps-financial-peace-university/#comment-45584 Mike Mon, 20 Feb 2012 20:28:29 +0000 http://cashmoneylife.com/2008/02/25/dave-ramsey-baby-steps-financial-peace-university/#comment-45584 The tax savings is huge? How about this, you pay off your house and send me half the interest, and I'll pay however much of the tax saving you were getting. There's pretty much no reason for you to not do this, because you'll be saving on interest paid to the bank and still getting the tax savings. Unless it's over $13,000, you won't have to pay gift tax either. If you're in the 25% tax bracket, you're immediately taking a 75% loss in one year on your money. In numbers, if you pay $4,000 in interest, you get $1,000 in tax savings. How exactly are you going to make gains off of that?! If you invest that $1,000 and get 1% return per month on that (12.68% annual, good luck finding that), it'd take you 140 months to bring your $1,000 tax savings to $4,027.10. So you paid $4,000 in interest 140 months ago (ELEVEN AND TWO-THIRDS YEARS) to make $27.10.... oh yeah, and the $3,027.10 you gained on that $1,000.... all taxable.... This scam that keeping a mortgage for the tax deduction needs to be killed. There's no arguement or debate about it, it's just flat wrong like saying the earth is flat. The tax savings is huge? How about this, you pay off your house and send me half the interest, and I’ll pay however much of the tax saving you were getting. There’s pretty much no reason for you to not do this, because you’ll be saving on interest paid to the bank and still getting the tax savings. Unless it’s over $13,000, you won’t have to pay gift tax either. If you’re in the 25% tax bracket, you’re immediately taking a 75% loss in one year on your money. In numbers, if you pay $4,000 in interest, you get $1,000 in tax savings. How exactly are you going to make gains off of that?! If you invest that $1,000 and get 1% return per month on that (12.68% annual, good luck finding that), it’d take you 140 months to bring your $1,000 tax savings to $4,027.10. So you paid $4,000 in interest 140 months ago (ELEVEN AND TWO-THIRDS YEARS) to make $27.10…. oh yeah, and the $3,027.10 you gained on that $1,000…. all taxable….

This scam that keeping a mortgage for the tax deduction needs to be killed. There’s no arguement or debate about it, it’s just flat wrong like saying the earth is flat.

]]> By: Alex http://cashmoneylife.com/dave-ramsey-baby-steps-financial-peace-university/#comment-28989 Alex Mon, 24 Jan 2011 15:18:19 +0000 http://cashmoneylife.com/2008/02/25/dave-ramsey-baby-steps-financial-peace-university/#comment-28989 Hello Dave, In my particular experience, since I was 18 years old (now I'm 33), accumulated financial reserves while maintaining a simple lifestyle. When I got my first job in 1996, enjoyed the benefit of still living with my parents, and kept almost 90% of my salary into savings, living on just 10%. I did this for 5 years. Then in 2001, got married and bought an apartment building, but that was not delivered until today, but it was a great deal because I got a price below the market average. The property ended up not being delivered, and now - after almost 10 years - won a case in court and will recover almost 300% of the amount initially invested. Another detail is that I used public transportation until I was 30 years old, and only then bought a car - paying in cash. So, I saved on interest. The apartment where I live now was paid in part by fewer parents with bank financing. I managed to settle the debt using some of the money I'd saved, and this debt must be paid in 20 years. In short, today I have a good financial reserve, which allows me to be calm and not depend on an employer, who could dismiss me at any time (and have people calling steady job security). According to my experience, I would give the following advice to young people: - Maintain a simple lifestyle, and save as much as possible without giving up small pleasures. Enjoy the youth with caution; - Do not buy a car if you are not able to afford to be seen. Use public transportation, and meanwhile save money to buy the car in future - Do not enter into financing long (mainly property). If you can, invest in a property under construction, because they are cheaper and much faster value - Do not waste your time watching TV programs or unnecessary spending their time idly. Enjoy all the free time to learn new skills that will bring more money. Hugs Alex Dantas Hello Dave,
In my particular experience, since I was 18 years old (now I’m 33), accumulated financial reserves while maintaining a simple lifestyle. When I got my first job in 1996, enjoyed the benefit of still living with my parents, and kept almost 90% of my salary into savings, living on just 10%. I did this for 5 years. Then in 2001, got married and bought an apartment building, but that was not delivered until today, but it was a great deal because I got a price below the market average.

The property ended up not being delivered, and now – after almost 10 years – won a case in court and will recover almost 300% of the amount initially invested. Another detail is that I used public transportation until I was 30 years old, and only then bought a car – paying in cash. So, I saved on interest. The apartment where I live now was paid in part by fewer parents with bank financing. I managed to settle the debt using some of the money I’d saved, and this debt must be paid in 20 years.

In short, today I have a good financial reserve, which allows me to be calm and not depend on an employer, who could dismiss me at any time (and have people calling steady job security). According to my experience, I would give the following advice to young people:

- Maintain a simple lifestyle, and save as much as possible without giving up small pleasures. Enjoy the youth with caution;
- Do not buy a car if you are not able to afford to be seen. Use public transportation, and meanwhile save money to buy the car in future
- Do not enter into financing long (mainly property). If you can, invest in a property under construction, because they are cheaper and much faster value
- Do not waste your time watching TV programs or unnecessary spending their time idly. Enjoy all the free time to learn new skills that will bring more money.

Hugs
Alex Dantas

]]> By: TheFinanceKid http://cashmoneylife.com/dave-ramsey-baby-steps-financial-peace-university/#comment-28947 TheFinanceKid Sat, 22 Jan 2011 06:42:25 +0000 http://cashmoneylife.com/2008/02/25/dave-ramsey-baby-steps-financial-peace-university/#comment-28947 I have created 1000$ account from start as emergency cash..not only that i have started my trading account from 1000$ as a recent challenge to make this account worth $15000 by the end of this year... hopefully i'll keep my consistency rate. I have created 1000$ account from start as emergency cash..not only that i have started my trading account from 1000$ as a recent challenge to make this account worth $15000 by the end of this year… hopefully i’ll keep my consistency rate.

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