What do you think of Dave Ramsey's financial advice?

[Megalith]

He says to only have $1,000 saved up until you pay off all your debt. That seems crazy. $1,000 is not enough to cover anything.

[bladefd]

I don't agree. You are right $1000 covers nothing.

First of all, you should focus on paying off required bills like water, electricity, etc. Try to pay off credit card in full each month or your interest will keep piling up. Some months you can pay the minimum, but try your hardest possible to pay it off every month. Buy fewer clothes, eat out less, shop less, get cheaper cellphone-line, use public transportation if you must to keep your creditcard bills down. Get a different creditcard with more cashback & apply all cashback to your creditcard. Don't let the interest run up.

Whatever you have left, put into an emergency fund in a savings account. You want to build about 3-6 months worth of emergency funds if you can afford to. Your emergency fund is your lifeline, and only touch it if desperate. Also, put a certain percentage of your income each month aside (whatever you can afford - say $100-$150 each month and invest it into a roth IRA or something). If you already have a 401k from work (hopefully your contributions match your employer's) then put all extra money towards building your emergency fund.

Once your 3-6 months worth of emergency fund is built up and your monthly bills are paid, then focus your extra money on your debts. I would say split your extra money between your debts and roth ira (maximum is 6k annually) in diversified etfs like VTI/VT. That way not only are you focusing some on your debts but also building up your investments slowly. Just my opinion. Some people say to focus everything extra on your debts after emergency fund, but I don't agree.

[nightlight]

I don't agree. You are right $1000 covers nothing.

First of all, you should focus on paying off required bills like water, electricity, etc. Try to pay off credit card in full each month or your interest will keep piling up. Some months you can pay the minimum, but try your hardest possible to pay it off every month. Buy fewer clothes, eat out less, shop less, get cheaper cellphone-line, use public transportation if you must to keep your creditcard bills down. Get a different creditcard with more cashback & apply all cashback to your creditcard. Don't let the interest run up.

Whatever you have left, put into an emergency fund in a savings account. You want to build about 3-6 months worth of emergency funds if you can afford to. Your emergency fund is your lifeline, and only touch it if desperate. Also, put a certain percentage of your income each month aside (whatever you can afford - say $100-$150 each month and invest it into a roth IRA or something). If you already have a 401k from work (hopefully your contributions match your employer's) then put all extra money towards building your emergency fund.

Once your 3-6 months worth of emergency fund is built up and your monthly bills are paid, then focus your extra money on your debts. I would say split your extra money between your debts and roth ira (maximum is 6k annually) in diversified etfs like VTI/VT. That way not only are you focusing some on your debts but also building up your investments slowly. Just my opinion. Some people say to focus everything extra on your debts after emergency fund, but I don't agree.

Your assets amount to a few penny stocks and one share of Apple.

[Gohan]

I much prefer 21 savage’s financial advice. It taught me alot

[coin24]

Your assets amount to a few penny stocks and one share of Apple.

:lol:lol

Imagine taking financial advice from the most gullible retard on here:oldlol:

[rawimpact]

:lol:lol

Imagine taking financial advice from the most gullible retard on here:oldlol:


Blade thinks he knows everything when in reality he's one of the bigger losers here. Getting financial advice from someone who lives with his parents is a joke.

Dude should stick to the other forum where all the ISH pedophiles went

[sixerfan82]

It's decent advice and is a basic blueprint for getting out of the debt that most Americans find themselves in. Try not to spend money on things that you don't need and pay off your recurring bills ASAP. Once you have no CC debt nor student loans, you will notice a sizable chunk of money back in your pocket every month which you can use to invest in stocks or elsewhere AFTER you've saved up 6mos worth of bills(roughly 12-15k for most people)

[rawimpact]

It's decent advice and is a basic blueprint for getting out of the debt that most Americans find themselves in. Try not to spend money on things that you don't need and pay off your recurring bills ASAP. Once you have no CC debt nor student loans, you will notice a sizable chunk of money back in your pocket every month which you can use to invest in stocks or elsewhere AFTER you've saved up 6mos worth of bills(roughly 12-15k for most people)


Or if you're smart enough, convince an employer to pay your student loans for you. This would be tax free and up to 5K annually.... There are ways to shift numbers around too depending on how flexible an employer is. If you own your own business it's even easier... so many loopholes (section 127 program). A nonprofit is even better... but i'm not giving into that here.

[bladefd]

Blade thinks he knows everything when in reality he's one of the bigger losers here. Getting financial advice from someone who lives with his parents is a joke.

Dude should stick to the other forum where all the ISH pedophiles went

Another guy who is absolutely obsessed with me. Damn, I have so many houses to live in rent-free! All these people thinking about me around the clock and following me around in every thread!

[sixerfan82]

Or if you're smart enough, convince an employer to pay your student loans for you. This would be tax free and up to 5K annually.... There are ways to shift numbers around too depending on how flexible an employer is. If you own your own business it's even easier... so many loopholes (section 127 program). A nonprofit is even better... but i'm not giving into that here.

I'm lucky that I paid off my loans already, however, I'm always trying to actively learn and expand my financial education.