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Thread: Total Money Makeover by Dave Ramsey

  1. #21
    Senior Member iris lilies's Avatar
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    Over on the Mr.Money Mustache boards the debate rages about paying off a mortgage. I am not even sure there is debate allowed anymore since it has been decreed that paying off a low interest mortgage, when you can invest that money for higher returns, is for chumps.

    Me, I always considered a mortgage to be my master, so I didnt want one. Dont care how much being mortgage free costs me. It is an emotional decision abput freedom.

    In 30 years of marriage we have not paid a dime in interest, it is cash for everything.

  2. #22
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    Here is a link to where Dave talks about the kind of student loan forgiveness program that UL is on and what he would recommend to him:

    https://www.daveramsey.com/askdave/c...bt-forgiveness

    Also this one, that does not presuppose an inheritance, as first link does:

    https://www.daveramsey.com/askdave/c...he-forgiveness

    So my guess is Dave would say either get a better paying job and get out of student loan debt faster or save the money to pay off the debt earlier.

  3. #23
    Senior Member catherine's Avatar
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    Quote Originally Posted by iris lilies View Post
    Over on the Mr.Money Mustache boards the debate rages about paying off a mortgage. I am not even sure there is debate allowed anymore since it has been decreed that paying off a low interest mortgage, when you can invest that money for higher returns, is for chumps.

    Me, I always considered a mortgage to be my master, so I didnt want one. Dont care how much being mortgage free costs me. It is an emotional decision abput freedom.
    Yup, that's the idea.

    In 30 years of marriage we have not paid a dime in interest, it is cash for everything.
    You are my hero, IL! I sure wish I could say the same.
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  4. #24
    Senior Member iris lilies's Avatar
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    Quote Originally Posted by catherine View Post
    Yup, that's the idea.



    You are my hero, IL! I sure wish I could say the same.
    It is a broadly true statement, but there are caveats that I should disclose.I DID have a mortgage when I was single, before getting married. We sold that house a few months after getting married so technically, in our marriage, I paid about 6 months on the mortgage I took out in my own name.

    Secondly, we borrowed about $10,000 from my parents at no interest early in our marriage to buy the house we are in now, as a bridge loan while DH’s investments reorganized and we could get at his cash. So yeah, having family money st no interest is a big advantage and allows me to make this statement of never being a slave to interest.

    Keep in mind we are also in the Midwest where real estate is cheap, and cash buys are not all that unusual.

    But generally it is true, we buy all houses and cars with cash, as well as everything else.

  5. #25
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    UL, keep us up to date on the $1.76 a day for groceries..........and the woman who likes your dog..........spending too much money on food for my low carb diet here...........

  6. #26
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    I think DR is strong on debt management, but weak on investment advice. He often seems to feud with his critics in that area.

  7. #27
    Senior Member SteveinMN's Avatar
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    Quote Originally Posted by iris lilies View Post
    Over on the Mr.Money Mustache boards the debate rages about paying off a mortgage. I am not even sure there is debate allowed anymore since it has been decreed that paying off a low interest mortgage, when you can invest that money for higher returns, is for chumps.
    We were paying ahead on our mortgage (based on DW's notion that she didn't want a mortgage in retirement) but there was no way we could pay off the mortgage by then without putting $3-4000/month toward it. Just didn't make sense for us. The "Save $xx,xxx in Interest on your mortgage" (by prepaying) is a draw, but if you're making $xx,xxx+y investing, who cares if there's a monthly payment? I'd rather take the $$ and pay off higher-interest bills (like my rental property).

    There is the emotional component of being mortgage-free, certainly; not underestimating that. But, for us, reverting back to the actual mortgage payment made more sense. I can deal with credit payments I know I can make if the interest rate is not usurious and it's a matter of flexibility/cash flow to not pay off the lower-cost ones. I guess I'm not in Ramsey's target demographic.

    Quote Originally Posted by Tenngal
    UL, keep us up to date on the $1.76 a day for groceries
    I'm interested in this, too, not so much from the perspective of doing it myself but from seeing how UL can manage given his need for an anti-inflammatory diet and his food preferences. (Somewhat) secretly I wonder if it will fuel the junk-food binging. There's no way on Earth I can make a double cheeseburger or a peperoni pizza for less money than McDonald's or a national pizza chain charges. Not debating the quality of the food (add air-quotes as you will) or the effect of such a diet on one's health; also not saying that eating out always is cheaper than eating in. But fast food companies are battling for consumer dollars and they make a tempting case: in, out, part with a few bucks, full belly; done. There are many more moving parts to cooking at home.
    Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome. - Booker T. Washington

  8. #28
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    So my guess is Dave would say either get a better paying job and get out of student loan debt faster or save the money to pay off the debt earlier.
    ok he doesn't actually advise this he just says to save money, not to get a different job. That's good because getting a new job just in chase of pay would be pretty risky advice, there are a few good reasons to seek a new job but unless one was vastly underpaid that's not one. And as if everyone can get a better paying job, and if a lower paying job weren't more than worth it if it had more job security (like working for the government usually does ... like UL)

    I'm interested in this, too, not so much from the perspective of doing it myself but from seeing how UL can manage given his need for an anti-inflammatory diet and his food preferences. (Somewhat) secretly I wonder if it will fuel the junk-food binging.
    true that, I mean how blah is the food your going to eat on under $2 a day and if you are inclined to junk food anyway ... it's going to be way more tempting than how boring you have to make your diet to stick to that budget. But if it's only a week, I guess near anything is doable for a week, but that does not make it sustainable.
    Trees don't grow on money

  9. #29
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    Quote Originally Posted by Tybee View Post
    Here is a link to where Dave talks about the kind of student loan forgiveness program that UL is on and what he would recommend to him:

    https://www.daveramsey.com/askdave/c...bt-forgiveness

    Also this one, that does not presuppose an inheritance, as first link does:

    https://www.daveramsey.com/askdave/c...he-forgiveness

    So my guess is Dave would say either get a better paying job and get out of student loan debt faster or save the money to pay off the debt earlier.

    I am at work on my personal laptop, after rebuilding a piece of equipment (no time to visit the links). Based on my knowledge of him, he would recommend getting an income increase (second job/better paying job, etc), and/or saving up the money to pay off the student debt, so if something happens (plan for a rainy day, it is going to rain), one could write the check and be done with it. Planning for student loan forgiveness is not a plan, nor is taking out more debt for more classes.

  10. #30
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    Anyone use Dave's envelope method?
    I've done envelopes yes. It's not that I don't use credit cards but for online things, and I don't do most of my shopping online.
    Trees don't grow on money

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