OT? debt, overspending, Dave Ramsey

it isn't off topic to me, I overspend like I over eat - for all kinds of reasons, every one of them unhealthy.

so this weekend I was reading Dave Ramsey's Total Money Makeover while I was shopping online.

although I agree with a lot of what he says, I put off getting the book from the library until after a road trip where I knew I'd be using my credit cards because he is against them, cut them UP and use a debit card instead and I am so not willing to.

shoot, I don't have to go that far I was thinking. I'll just use them and pay them off every month. uh huh. then I tried to use my debit card for stuff I was buying online  and it really made a difference.

knowing that money would come right out of my checking account I didn't want to do it. hey that's my money, someone in my head was saying. like a credit card bill isn't, somehow.

so when Dave says you spend more using plastic - turns out he's right.

darn!

I read the book too. I was doing great following his program until I went to Kansas City to go shopping! Now I'm working on building my $1,000 cash reserve back up. He makes a lot of good points in the book.

BTW, where are you in NE?

Jen

Jen, you are right he makes some good points & I think having emergency money so you aren't forced to use plastic for your car breaking down, etc, is especially good.

I sent you a PM and that is one really cute dog in your avie.
hugs

Jackie

I haven't read that book, but have read similar. Two problems for me- one, my debit card doesn't illicit the right response for me (only cash does) and since I can overspend because my account is tied into our credit card I do not think about it right.. and two, we literally couldn't go two months without credit cards. We would flat out run out of money. Boo to not making enough!

one problem with Dave's book is he starts with the assumption that you have a full time job with benefits and you earn, say, $40,000.  not me, that's for sure!

Thing is, though, you can't outearn bad money management skills.  I see people in my job every day who earn six figures and still say they "have to" use credit cards because they don't earn enough.

I paid off a gigantic debt about 8 years ago using the system in Mary Hunt's book and website "Debt Proof Living."  I do use my credit cards for the rewards points but don't charge anything unless the money to pay for it is in the checking account at the moment the purchase is made.  And then I go right home and transfer the money to the credit card online.

I know that the more money you make, the higher your standard of living tends to get so you aren't getting anywhere.  at this point, I would know better, however!

my problem is no health insurance. I can usually earn enough to get by but one big old medical bill and I'm toast.

at least I look good!

I enjoy listening to Dave Ramsey.  We are debt free except for our mortgage and car payment.  He would not agree with us having a car payment.  We COULD have paid cash for it, but got zero percent interest.  So why pay cash for it, when we can make a monthly payment and keep our cash in CDs drawing interest (even though interest rates suck). 

I charge things on my credit card every month, but pay it in full when I get the bill.  We are trying to earn travel points to take a cruise or go to Hawaii in a year or so.  So I pay as much with my credit card as possible, but always pay it in full.  There have been months that I've paid ove $3,000.  I never carry a balance.  I don't like to pay interest! 

My DH will begin receiving SS next month, so we are going to take 1/2 of it and make an extra house payment every month.  We want that mortgage paid down ASAP so that when I retire, we WILL be completely debt free.  That's our plan anyway.  Holding our breath that nothing drastic happens that would wipe out our savings/investments. 

Dave gives good advise.  Some things sound pretty hard to follow, but I'm sure he knows what he's talking about. 

I love Dave Ramsey. I used to live in Nashville and a local TV channel would broadcast while he was doing his radio show. I was in grad school at the time though and had no income.

Last fall and winter, my boyfriend and I went through his Financial Peace University. Since I started his class, I've paid off more than $12,000 in debt. I still have a long way to go (thank you private education...ugh), but I am making some progress at least.

Anyway, cash definitely hurts more than plastic!

Lindsey