Financial Peace

[rockdog]

It can be done with out making 55k.

Oh, I know it can. We only owe on our house. ($40,000) everything else is paid for. I am in no way trying to say this thread is bs. I have never seen or heard Dave. But I bet I have done a lot of what he suggests. I was just stating something I figured out a few years ago. People around me make a lot more than I do. ($37,000 a year)
I also realized watching shows like Suzie Orman, that they are gearing their advice on way bigger incomes than mine.

 

[skippy]

one thing I realized is if I make twice as much as you, I probably have twice the mortgage and so on so it applies across the board just scale it down to what you can do and run with it.

 

[rockdog]

one thing I realized is if I make twice as much as you, I probably have twice the mortgage and so on so it applies across the board just scale it down to what you can do and run with it.

I totally agree with you! You spend what you make. Funny as hell, because I've had several of the neighbor guys in my garage looking at the crawlers as I've built them. More than one has said, well you obviously have more disposable income than I do. They live in half million dollar houses ! Mine isn't even close to that.

 

[Unimog]

If you make twice as much, you probably also have 3-4 times the taxes. One thing my wife and I learned early in our marriage is that budgeting is the same whether you make 10k or 100k. Granted, it is easier to meet needs with the higher wage, but the problem for most folks is separating wants from needs, not actually meeting their needs. It is also easier to get into big financial trouble the more you make.

Nothing has contributed more to the happiness of our marriage than learning to 1) live within our income, whatever it is, 2) Always save something, and 3) getting out of debt. I do have a modest mortgage that I'm not in a race to payoff, but those car and credit card payments can kill you.

 

[Herzog]

I just paid attention to my economics class in college. Radio is for music.

So, you paid for somebody to tell you how to manage money and these guys did it by listening to the radio... for free. Not sure who the sucker is.

 

[MattL]

So, you paid for somebody to tell you how to manage money and these guys did it by listening to the radio... for free. Not sure who the sucker is.

Love it.. ha ha

 

[Stephen]

So, you paid for somebody to tell you how to manage money and these guys did it by listening to the radio... for free. Not sure who the sucker is.

Well, technically you paid to have someone teach me about economics.

 

[Herzog]

Well, technically you paid to have someone teach me about economics.

Damnit.

 

[MattL]

Well, technically you paid to have someone teach me about economics.

Wouldnt it be a "we" ?

 

[Tacoma]

Well, technically you paid to have someone teach me about economics.

Not paying your loans back?

 

[JL Rockies]

I should add that 2009 wasn't a total loss, I became friends with Kurt and that was a big spike but that also came with Sami and Stephen so it ended up as a wash.


Kooler than Mudd.

 

[sixstringsteve]

When I became friends with Kurt, my savings plan started going out the window.

 

[jentzschman]

My wife and I went through Financial Peace about 2007 and it saved our marriage, literally. His way of budgeting (and his segment about the nerd and the free spirit) ended all arguments we use to have. Spending every dollar on paper on purpose really is like getting a raise.

Sent from my HTC One using Tapatalk

Spending my money on paper, aka a budget, is one of my weaknesses I am really trying to work on. I do ok with building my emergency fund, but just can't discipline myself enough to stick with the budget.

 

[sixstringsteve]

that's what Dave Ramsay helps with. Although I might be a bad influence on your spending money...

 

[Caleb]

We also used the envelope system and paid cash for everything except for the gas fill ups.

We still to this day pay cash for EVERYTHING (including gas)! We've been debt free, besides our house, for quite a while now. Few more years and our house will be paid as well. We could have had the house paid as well, but we also set aside a ton in savings and investments. Just yesterday we went and bought my wife a new Lexus, in cash (well, it was a check that came from our savings but we aren't making a payment on it ). At one point we had over $40k in cc and other unsecured loans and another ~$500k in secured loans. We pulled up the boot straps and went to work. Like I said, debt free (minus the house) now and living how we want to live with zero stress about money. We used the snowball method and paid cash for everything. We don't even use our debit card unless there is an unexpected expense and it's more than the cash we have on us. Anyone that thinks it can't be done is only fooling themselves. DR's advice is sound, but it's more common sense than anything.

 

[SAMI]

I should add that 2009 wasn't a total loss, I became friends with Kurt and that was a big spike but that also came with Sami and Stephen so it ended up as a wash.


Kooler than Mudd.

You suck

 

[jeep-N-montero]

I grew up having parents who only paid cash for things and just had a mortgage for recurring debt, they have a small house on 9 acres back in Maine that has been paid off almost 15 years and are in a good position to retire next year. So I guess a lot of that has stuck with me over the years and other than our mortgage we have very little debt, all 5 cars are paid for and I pay extra toward principle every month on the mortgage payment. We have done very well as far as our home equity is concerned and will use that to pay cash for our lot in Morgan when we sell our current home next year. I mostly use my credit card for food and gas, and although AFCU keeps offering to increase my credit limit I keep it at $2k knowing I can pay it off anytime with a simple account transfer.

I have never understood how people can sacrifice time with their family in order to make more money only to end up with even more debt, my parents probably never made more than $50-60k in a year combined but we still had fun family trips and my dad was always taking us on fun fishing weekends to explore new places.