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Dave Ramsey

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While I'm not one to give advice on financial matters, Dave Ramsey is.  The link is to the web version of his daily radio show.  Jack actually mentioned him in today's podcast.  I've found that Dave has a similair outlook in financial matters, that debt is a cancer, and credit is a curse.  He gives level headed advice with real, practical plans to get out of debt.  I've read one of his books and I've started to pay off my credit card debt using his "debt snowball method."  You all might find his insight helpful.

Debt snowball for the win!  I'm working on mine as we speak.  I'd pay it off faster, but right now silver is just too low not to pass up some of that money on.  I know...debt first, investment later...  However, I don't believe the silver price will stay this low for long.  Worth it IMO to do a little hedging now at a good price.

I've been a huge Dave fan for several years.  I don't agree with him on every issue but the country would be a lot better off if every American took his advise.


My wife and I have been following Dave Ramsey for about 18 months now and have had great success.  He was the first personal finance "guru" that we read who wasn't trying to have you do some crazy financial roundabouts (Suze Orman) or have you scrape and save everything for 20 years so you never have any debt, including a mortgage (Your Money or Your Life).

We did however change the way some of Dave's steps work:

1.  Initial Emergency Fund: as a family with children and a house we found that $1000 wasn't quite enough.  If an unexpected car repair came up and the hot water heater went a month later, we were S.O.L. so raised it to $3000 and found that quite workable.  If something hit we had enough of a cushion to absorb it AND be able to repay it without having to dip into any debt.

2.  We pay off our debts based on which one gives us the largest return to our budget the quickest.  That resulted in us paying off our vehicles as the first priority, which freed up nearly $500/mo. This allowed us to get a larger snowball quicker than paying the minimums on the smallest and slowly working up.

3.  We did do a credit transfer to our Credit Union because the rates made sense. There were no fees or charges for moving everything over and saved us, on average 10% based on our previous rates.

Since doing this we have paid off over $20k in debt, put 12k in cash into the bank, and not touched any kind of credit/loan since.

It took time to get used to but now that we are rolling we do not miss our old lifestyle of spend, beg, and borrow.  We have both seen what kind of damage gross consumerism can do and no longer want to play that game of debt slavery.  Our time, family, and friends are worth more than that. 

Another big fan here, we have been on the program for just over two years and are nearly finished with our debt.  I am sure much more at ease with the current crisis than I would have been with all that debt on our shoulders.

It is never too late to start, check his book out from the library if you haven't read it.  It is an easy read and should take you no longer than a weekend if you have some spare time.  The Total Money Makeover.


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