Dave Ramsey Chat Thread

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Mommyin0406080912's picture
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Dave Ramsey Chat Thread

Lets chat about Dave Ramsey Here!!

Dixiemom1st's picture
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Love Dave Ramsey!! He really helped us get a plan finically and stick too it. We are on baby step 4 & 5. We are building up what we save for retirement but had already started saving for the kids education because of a government child benefit and 20% match. I hope to be completed 5 by the time this LO is born and then continue building 4 as money comes available in our budget.

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I don't use Dave Ramsey but I would love to take a look at it. Is it a free program?

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He has a few great books that completely outline his system. Financial peace and total money make over. He also has a program financial peace university that you have to pay to attend. It is about $100 but you get both books and a few other things, it is a 13 wk course. But you will not find anything there that you can not read in his books. He just gives you a great plan to get out of debt and then save for what is important. I would recommend him to anyone.

Www.daveramsey.com

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"Mommyin04060809" wrote:

I don't use Dave Ramsey but I would love to take a look at it. Is it a free program?

You can buy the books or take the Financial Peace University. I highly recommend the classes over just the books. We have gotten WAY more from the classes than the books.

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You can buy the books or take the Financial Peace University. I highly recommend the classes over just the books. We have gotten WAY more from the classes than the books.

I second this!

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Maybe it helped that we were already on board with his program and had read the books a listened to him. The classes seemed redundant.

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"Dixiemom1st" wrote:

Maybe it helped that we were already on board with his program and had read the books a listened to him. The classes seemed redundant.

Yes the classes seem redundant however we really like the accountability it offers.

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I don't think we have time for classes my husband works fulltime and is in Law School fulltime so that takes away free time and when he does get it, he loves to relax. I found some free worksheets to review and go over. It's something to think about and start with. We do use the envelope system but I don't think it's the same one he uses.

Does anyone else use that system?

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"Breen31806" wrote:

You can buy the books or take the Financial Peace University. I highly recommend the classes over just the books. We have gotten WAY more from the classes than the books.

I totally agree. I read The Total Money Makeover first, and was totally inspired to get going on it all. My husband wasn't too into it at first, but we took the classes, and both of us got so much more out of the classes than the books. It helped to be able to sound off ideas from other people in the class, and it made me feel better to realize we weren't the only ones sick and tired of having more month than money. It really is a great course, and the nice thing is once you've paid for it, you can return to any class you need for free, FOREVER! It's amazing!

We use the envelope system too. It was really hard at first, but as we keep going, we are finding that we have money left in the envelopes at the end of the month. That's always a nice feeling. Our hardest envelope to keep full is the food one. Do you like the envelope system?

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"Holly_Anne618" wrote:

I totally agree. I read The Total Money Makeover first, and was totally inspired to get going on it all. My husband wasn't too into it at first, but we took the classes, and both of us got so much more out of the classes than the books. It helped to be able to sound off ideas from other people in the class, and it made me feel better to realize we weren't the only ones sick and tired of having more month than money. It really is a great course, and the nice thing is once you've paid for it, you can return to any class you need for free, FOREVER! It's amazing!

We use the envelope system too. It was really hard at first, but as we keep going, we are finding that we have money left in the envelopes at the end of the month. That's always a nice feeling. Our hardest envelope to keep full is the food one. Do you like the envelope system?

Hi Holly! So nice to see you here! We use the envelope system sort of. We used it when we first started DRFPU but I stopped working last month to finish my internship and so some things fell below the line. I'm now receiving calls from all the credit card companies. Sad We are actually getting caught up this month with bonus money which I wish wasn't the case but it's been very humbling to only grocery shop for lunch food and then use what we have in the pantry and freezer for breakfast and dinner (thank goodness I coupon). Then I just got a job starting Jan 3rd teaching 5th grade social studies so we'll really get to start using the envelope system etc. We are looking forward to having a huge chunk of our debt paid off by next Christmas. Not all of it but a nice chunk. We still have 3 more weeks of FPU before we "graduate" and we'll have the grasp on our finances by then.

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I don't follow Dave Ramsey's program exactly, but read Financial Peace this past summer. However our only debt is our house, so we started on baby step 3, which we have now completed! We are now on step 4/5/6. I have to get DH to set up the retirement thing. As far as step 5, we are not going to focus on that. Any money the kids get for birthday/Christmas/etc goes into savings accounts for each of them. But with interest rates so low, it will be more beneficial to us to pay off our house, and then focus on step 5 because we hope to pay off our house before the kids need college money, that will then free up that money to help them pay for college.

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"zoe08" wrote:

I don't follow Dave Ramsey's program exactly, but read Financial Peace this past summer. However our only debt is our house, so we started on baby step 3, which we have now completed! We are now on step 4/5/6. I have to get DH to set up the retirement thing. As far as step 5, we are not going to focus on that. Any money the kids get for birthday/Christmas/etc goes into savings accounts for each of them. But with interest rates so low, it will be more beneficial to us to pay off our house, and then focus on step 5 because we hope to pay off our house before the kids need college money, that will then free up that money to help them pay for college.

College funds for kids don't go into a "savings account" We just went through this step in class this week. You want to get an Education Savings Account (ESA) or more typically called "Education IRA"- (taken straight from FPU book) "you may save $2000(after tax) per year, per child, that grows tax FREE! So, if you start when your child is born and save $2,000 a year for 18years, you would only invest a total of $36,000. However, at 12% growth, your child would have $126,000 for college- TAX FREE!"

If you are able to start saving for your child's college now I would do it! Don't wait.

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I honestly haven't done a lot of research for Education Savings accounts. But it depends on whether we would be interested depending on what happens with the money if your child decides not to go to college. I will do some more research for those, I have never heard of any account that gets 12% interest these days. One of the things I didn't like about the Dave Ramsey book was he talked about how much you could save with 10% interest rates, but I don't know anywhere you can get anything close to that rate. We transfered our emergency fund and our regular checking account over to an awards checking program so we get a little over 2% interest on those.

As of right now, we can't afford to put $2,000/year into savings for each of our kids.

On top of their savings accounts, they also get savings bonds from my grandma every birthday and Christmas. I feel that right now with college 15 years away paying off the mortgage which is 6.5% interest currently (hoping to refi) is in our better interest. Money for the kids college isn't being completely neglected, but it isn't our #1 priority at this moment.

We will in no way pressure our kids to go to college, my DH didn't go to college and if any of my kids take after him, they may not have any interest in college either. So I hate to have all of their savings tied up in a college fund that can't be used for anything else or that will have penalties if you do.

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"Breen31806" wrote:

Hi Holly! So nice to see you here! We use the envelope system sort of. We used it when we first started DRFPU but I stopped working last month to finish my internship and so some things fell below the line. I'm now receiving calls from all the credit card companies. Sad We are actually getting caught up this month with bonus money which I wish wasn't the case but it's been very humbling to only grocery shop for lunch food and then use what we have in the pantry and freezer for breakfast and dinner (thank goodness I coupon). Then I just got a job starting Jan 3rd teaching 5th grade social studies so we'll really get to start using the envelope system etc. We are looking forward to having a huge chunk of our debt paid off by next Christmas. Not all of it but a nice chunk. We still have 3 more weeks of FPU before we "graduate" and we'll have the grasp on our finances by then.

So good to see you!! That's great that you'll be starting a new job. I teach 5th grade too, and I handle the Social Studies portion. How funny is that Lol So exciting that you're near the end of FPU too!!

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After reading all of your comments yesterday on D. Ramsey's book, I ordered the Total Money Makeover today on Amazon. Thanks for the suggestion ladies!

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If you have any questions feel free to ask! Also check dave ramseys website and see if there is a class near you. If you have time for a class I strongly reccommend his classes.