The Voice of Personal Wealth...

[Big Daddy]

Actually I get it very well. Yes hovel is a little too much. For people that are in credit card hell he does advocate selling everything except the absolute necessities. If you are in a house that is outside standard debt to income ratios he advocates selling said house. If you have cars that you are upside down he advocates getting rid of said cars. Not a real possibility for most people that are upside down. He does advocate saving a small amount for emergencies then a sum equal to 6 months salary after you have your bills paid off. By the time all this is accomplished you do indeed have personal security. In my case it would be time to start drawing SS.

I have started the debt snowball on my credit cards. I don't have anything else I can do that is part of his plan though.I should have my CC's paid off in five years. Fortunately I have a company car so I don't have that very expensive wild card out there. My house is within the debt to income ratio but it is still killing me. Sorry I'm not going to eat beans and rice all the time.

 

[ohiofarmgirl]

...In addition to that what kind of lifestyle are you talking about. There is more to life than just having money in the bank. Some things are more fun to experience at age 30 than at age 70. I guess if I was a vampire it wouldn't matter.
Lifestyle? One you've paid for. I live in a house and drive decent cars and do all the things I wish. I want for nothing and have no debts, aside from a small mortgage. Having done much in my time on earth, I can tell you there are few things you can do at 30 that are worth being debt-backside broke over.

yep one you've paid for. it helps if you STOP watching tv and being a senseless victim of marketing.... there are a lot of things you dont need. at all. and yes its hard to convince folks (like my cruise ship family) that they dont need a house stuffed full of stuff.

i spent a lot of time making a lot of money and it didnt necessarily do me any good. is money the answer to most of live's problems (Eccl)? yep - but that doesnt mean it makes you happy. i figured out that i was working a lot to earn a lot of money so i could spend it to help me feel better about working so much. one day i decided it was stupid and stopped.

i now own everything i have - and it doenst own me. i dont owe anyone money. i dont live in a hovel. and while i dont have cattle i do have a couple of goats so i think i'm on the right track.

i think the hardest thing is to want what you have - and make that work for you. i read a book about retirement that put forth the idea that you dont need as much money as 'they' say you do - and the most satisfied retired people are active, are learning new things, and have close friendships and families....all things you cant put a price tag on.

you can dig yourself out of debt but it requires a fundamental shift in how you think and what you spend. yes sell that car, have a garage sale for all that crap, pack your lunch, head down work hard, dont buy into the 'buy now' economy - and even if you're not spending as much as the next guy, your income appropriate spending will help the economy. buy locally and help your community if thats important to you. but dont buy into the hype that there is no end in sight or it cant be done.

as for beans and rice - with a little salsa they are pretty good.... throw in some chips and you have a party

 

[me&thegals]

Or make some wonderful hot pepper-garlic jelly to dump over the top I believe that Big Daddy has an awesome garden and so gets to eat well AND cheaply, right BD?

Sounds like this guy makes a lot of sense. I'm assuming he has a plan for all those things that come up in life that you can't really plan for, like job loss, disabilities and illness.

Other than that, I have gotten tremendous joy and satisfaction in living incredibly well on relatively little money. I don't know if I am just a serious cheapskate or if I've just found the true pleasures of life--but I would rather go pick blackberries in the woods, go fishing and forage for mushrooms to come up with an incredible supper than go out to eat and pay $25 for that same meal. Can't tell you how many times we moan and groan in satisfaction over supper and say, "You know how much you would pay for this in a restaurant?"

I digress. Yes, I have watched this inability to deny one's desires for things in my much younger brother. Was it different parenting or a new generation? My brother closest in age, however, has always been frugal. Now that their business is hit hard by this recession, he is still doing okay because of his savings.

Same as my parents, only their savings is their 401K, so I worry for their long-term future. Does Mr. Ramsey have anything to say about 401Ks that are plundered by companies or destroyed by recessions just when a person needs them most?

 

[ohiofarmgirl]

Other than that, I have gotten tremendous joy and satisfaction in living incredibly well on relatively little money

i loved that you said this... a lot of my old pals cant believe that i dont travel anymore or drop $300 on one dinner (for two) anymore. i just tell them that everyday is a vacation for me - and our farm has the best food in 100 miles or more. i dont even want to go anywhere anymore but out to the garden and to the chase the chickens


dont know his position about the 401K's. but i was kind of wondering whats going to happen to all the just-about-retired folks and if this will usher in a new age of living with extended families?? for instance the grandparents moving in with their kids and 'earning their keep' by taking care of the grandkids??? i dont know but maybe it wouldnt be such a bad thing if this country got back to being about families again. just a thought.

hot pepper-garlic jelly!? ! wowza.. not thats a thought....

 

[me&thegals]

ohiofarmgirl--I thought my dad was the only person to say "wowza!"

Sometimes people can do all the right things and still have life stick it to them. My mom and dad busted their tails all my young years building up their business. They have a tremendously good construction business and reputation. They have a beautiful home, 40 acres and a 401K now after years of no vacations, used junky cars, small home, lots of making ends meet.

In order to keep as many of their guys employed as possible until the economy turns around, my brother has cut his wages in half and my parents no longer take a paycheck at all. They are living off their 401K. While I admire their dedication to their guys, I worry about their long-term future.

I'm sure they're hoping if they just hang in there they will see good times again. After all, they've weathered at least 1 other recession. But, it's hard to see how a person can do all the right things and still get hurt in the end. Yes, I guess that's life.

And, any and all of our family have been told they can get anything from us they need (they are all in businesses threatened or hurt in this economy), but what they really want is the lives they have built for themselves, where they are, in their own homes.

 

[Wifezilla]

I'm assuming he has a plan for all those things that come up in life that you can't really plan for, like job loss, disabilities and illness.

Of course....and most of his plan on this is being prepared for life's little twists ahead of time

This is never fool proof, but if you have your emergency fund and 6 months salary stashed away, you don't have stupid car payments and lots of credit card bills, this will get you through MOST things.

In my case, I did NOT have the emergency fund and the salary reserve and had to deal with job loss, illness, etc... so I had gone the bankruptcy route. Had I known about Dave Ramsey BEFORE those things happened, I may have been able to avoid it.

If you do end up having to file bankruptcy, he has excellent advice about how to deal with collection agencies, what chapter to file when, and, most importantly, how not to get in that position again in the future.

 

[me&thegals]

My husband and I don't make much, but we probably fit into middle class. What ARE the $ brackets for that, anyway? Still, with our land and farm resources, we are able to live leanly and well. We have savings, emergency funds and only a home mortage.

As always, I worry about folks who don't have our benefits. Those who don't have land for animals, foraging, much gardening. Those who make minimum wage and barely can afford to pay the rent and bills, much less put away $ for emergencies. What advice does he give for people in this situation?

 

[davaroo]

Although, I would expect an "exciting transition period" for the economy if people were no longer spending like drunken sailors.

Which (i.e. the fact that it would be bad for businesses, at least in the short and mid-term) is probably why you will never find it forcefully espoused by the government

Pat

No one in the Ramsey Camp suggests that you shouldn't spend money. FAR from it, in fact.
What they advocate is you do not spend money you DO NOT have.

Let me first make very clear that I totally AGREE with that approach.

That said, though, a cynic might wish to point out that the current state of the economy in the western world is based on people spending lots of money they *don't* have, and thus, to revert to only spending what's actually in the bank, and not necessarily all of it, would definitely cause an (as they say) "adjustment".

I'm all in favor of it, mind you; I'm just sayin'.

Pat

No one said it's easy. After all if it was, everybody'd be doin' it.
But if we can create universal health care, then we can hold out for this, eh?

 

[davaroo]

Some of you may know Ive been reading the "Foxfire" series of books, lately. One thing that continually leaps from the pages is how every one of the old timer's interviewed remember how much better life was. They had nothing, by our standards - no money, little worldly wealth, and only each other. Yet they remembered the life they led fondly.

Perhaps its not what you have, but how you view the life you're livin'?

 

[Wifezilla]

As always, I worry about folks who don't have our benefits. Those who don't have land for animals, foraging, much gardening. Those who make minimum wage and barely can afford to pay the rent and bills, much less put away $ for emergencies. What advice does he give for people in this situation?

Well, that is pretty much the situation I was in for MANY MANY years.

My advice if you are in that situation is...

1. Don't have a bunch of kids..wait until you are in a better position to start your family.

2. Don't get anything requiring "easy monthly payments".

3. Learn to cook from scratch. This will save you a lot of money.

4. Go back to school. A Pell grant will cover your costs at a community college. A 2 year degree is a great way to work your way out of the minimum wage trap.

5. Learn to shop thrift stores and garage sales.

6. Housing is going to be your biggest expense. Roommates can either help or make your situation worse. Never sign a long term lease that says if your co-renter flakes out, you are responsible for the entire bill.