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 Replies: 16 / Views: 2,440 |
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Pillar of the Community
 United States
931 Posts |
I naturally agree with him on debt. I haven't had a loan in years because to me debt is a leash. But as far as PM's go he's a wacko.
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Valued Member
United States
52 Posts |
I'm not overly familiar with his take on PM's, but I can tell you as far as his common sense money management schemes, they work. I've had numerous financially retarded friends turn themselves around with it.
I just wish it would have worked for me. Filing 13 later this year. I made the mistake of bailing a family member out of a sticky situation with my good credit rating, because I couldn't stand to see his kids suffer. Then promissed payments became late, then ceased altogether. I was bitter for a long time, but have gotten over it. Now my opinion is that my nieces can always sleep on my bed and I'll take the couch, but my brother in law can live in a tent in the back yard.
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Pillar of the Community
United States
1150 Posts |
Ramsey is a millionaire because of his own hard work and ingenuity. A lot of people have ideas that some think are crazy...'cause you can't please everyone.
However, he must be doing something right. ;)
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Pillar of the Community
United States
931 Posts |
snowman- Sorry to hear about your predicament. At least you know that you have a solidly good heart. I'm lucky in that I have very frugal siblings. Our Dad was a depression kid. Their house even burned down in 1935. Somehow they made it through but he really instilled good financial practices in all of his kids. It was hard as a kid to understand why I couldn't have that toy that I wanted but couldn't have. The toys that I did get were really appreciated and I still have most of them in the box. It's funny, but toys from back then were actually a pretty good investment if you took care of them. Anyway, I wish you well in straightening out your credit and especially since it isn't your fault.
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Pillar of the Community
United States
3670 Posts |
Tough break snowman70, but you did the right thing as good chance all of us will be called on to help out a less productive family member before it is all over....
It is hard to knock anyone who goes from Bankruptcy to riches, but his view on G & S is very delusional. Hard to believe someone with the hindsight to make the right moves to turn things around, could be so blind to what is right in the center of the coffee table....
Just goes to shows there are literally millions of ways to get rich, if one picks an sticks to the set plan so to speak perhaps, G & S or not. But hard to believe someone would not find it profitable to put it in their portfolio these days. But, the old saying goes about opinions we have all heard to often an we will say it is like a fingerprint;-), as everyone has a unique one....
Junior you crack me up, when you start ripping these guys. I could see you watching them on TV, tempted to toss your shoe at the tube, or some choice four letter words as they spill their dribble, lol....
Edited by Silverhawk74
08/27/2011 2:12 pm
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Pillar of the Community
United States
931 Posts |
You're right Hawk. My TV is about 20 years old because my shoe throwing requires thick glass so that my anxiety doesn't pre-empt Tosh.O or Curb Your Enthusiasm. Many people tell me that I should just take a pill, but they don't make any strong enough for my condition. I'm as big an idiot as any of my targets, but I just can't keep my frustration bottled up.
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Pillar of the Community
United States
3670 Posts |
Two fine examples of nuts from different generations. I like Tosh.O sarcasm which is obviously the base for his show, and the idiot example videos he brings in....
And Larry David, he just reminds me of Rodney Dangerfield on his show, zero respect, lol. And he seems to bring it on himself, but I have always thought Seinfeld was his best work. I do say to myself, seems like something stupid I would do in ref to Curb, lol....
Edited by Silverhawk74
08/27/2011 3:09 pm
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Pillar of the Community
United States
4008 Posts |
Quote:
Many people tell me that I should just take a pill, but they don't make any strong enough for my condition. Maybe not... but Jack Daniels does!  As to Dave Ramsey... I've listened to his show a few times and find that much of his advice is good common sense financial and living advice. He does go a bit over-board on debt, though; hysterical might be an appropriate term. Quite a few people are not galactically stupid where debt is concerned. We use debt like we do fire... which is to say sparingly, carefully, and appropriately. There is no one size fits all in life. If I can borrow a dollar and create $3-4 or more from that borrowing, what's not to like about debt? Borrowing to fund consumption is pretty dumb in most cases but borrowing to fund productivity is not. Having some debt in retirement is also not the end of life as we know it. Retirement finance is ALL about cash flow. If you have some debt but also have the reliable cash flow to service that debt, then no problem. |
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Valued Member
United States
302 Posts |
In my book, there are only two reasons for debt.
1) If you can MULTIPLY the money without risk (i.e. produce more money), then debt is OK PROVIDED you repay the debt from the proceeds when the proceeds are realized. If there is any risk involved, then using OPM is not a prudent way to use debt.
2) Emergency situations, and then only if there IS NO OTHER WAY TO FUND THE EMERGENCY. Taking vacations paid with debt does NOT qualify as an emergency.
Even though it is common to fund housing with debt and it is nigh unto impossible to buy private housing without going into debt, I am adverse to using debt to buy a house. The biggest problem with housing is that people overbuy. If one does buy a house with debt, it is my opinion that one should only buy a house that is affordable EVEN IF THERE IS A LOSS OF EMPLOYMENT. If everyone bought that way, there would be no housing bubbles.
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Pillar of the Community
United States
4008 Posts |
Quote:
If you can MULTIPLY the money without risk In general I agree with your comments but must say that there is ALWAYS risk associated with investing. Risk occurs in MANY forms and people who are familiar with a few of them assume that what they are doing is "risk free" if it does not involve familiar kinds of risk. It is often the unfamiliar kinds of risk that get us into trouble. Freedom from risk doesn't really exist, IMO, but successful management of risk is not only possible it is necessary if one is to be prosperous. |
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Valued Member
United States
302 Posts |
Freedom from risk does not exist. That is true. But most people do not factor in a large enough cushion to compensate for risk.
I borrow money frequently, BUT ONLY IF I BELIEVE I CAN DOUBLE IT THE SAME DAY, or at most within a week. Typically, I triple the money I borrow within a week. Is there risk? Yes. But I have a large enough cushion that regardless of what happens I can always repay the loan within days and still have money and items left over for me. In the decades I have been doing this, I have never failed to walk away with more money than I borrowed and never failed to repay the loan.
If I have any inkling that there might be excess risk, I don't borrow any money. I either pass on the deal or I use my own savings.
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Pillar of the Community
Australia
7096 Posts |
The only way to keep out of debt and still speculate is to only spend what you can afford to loose.
You only loose if you sell below you purchase price, you may have to hang onto your purchase for a few years to make a profit out of it.
On borrowed money this could be a very expensive exercise
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Pillar of the Community
United States
1064 Posts |
You guys certainly have your lives together! Now, I feel bad that I'm retired and have a CAR LOAN, aka debt - and I'm guessing, when I sell it, I will not double my money!  |
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Pillar of the Community
United States
667 Posts |
"1) If you can MULTIPLY the money without risk (i.e. produce more money), then debt is OK PROVIDED you repay the debt from the proceeds when the proceeds are realized. If there is any risk involved, then using OPM is not a prudent way to use debt."
Wow I don't know how to even think about this one. That thinking goes back to the 1920's when people explained getting rich borrowing money to buy stocks.
More power to you but I can't think of a more risky way to make a dollar thinking no risk. Would not a cushion be a major lost if you had to use some of it?
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Pillar of the Community
United States
1228 Posts |
I know a guy that got a low variable rate loan to lower his monthly payments and restablish his bad credit but when he went to refi that loan do to the rate/payments going up there was less value in the home than before to be able to refi so he taped into his assets checking/savings accounts stocks bonds retirement funds etc for home improvements to get the homes value back up so he wouldnt have to come in with closing costs that he didnt have at the time for the new refi but before he started the home improvements pool,deck new roof and an addition etc he took the current balance and divided it by the present conservative value and he said as long as it wasnt over 85% then he would qualify for the new refi and it worked he was verry happy about the decision that he had made .
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Replies: 16 / Views: 2,440 |
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Posted 08/27/2011 08:59 am
