Dave Ramsey is an out of touch asshole though.
I have never owned a car that did not already belong to 2 family members prior. Surprisingly, I have yet to be kicked down the social ladder and sweep dung for a living.
Also, used cars are like 3000€ here. I have no idea of used cars, but at some point having them be serviced every year should be cheaper than monthly payments, right?
The hell are these people driving? I pay $240/mo for a goddamn Lexus.
Could also be their shit credit rating playing into that.
Dave Ramsey hasn’t tried to buy a reliable used car in the last decade, at least. You aren’t going to find anything under about $10k that’s actually reliable where I am. A mid-90s Toyota with 300,000 miles maybe, but not anything under 150,000.
With the $554 average new car payment in the original post, you can afford that $10k new-to-you used car outright in cash every 18 months.
I was looking for a new car a few years ago, but i didn’t have to rush, i didn’t have a car for almost two years and just used my work car if i really needed one. Then covid hit and i was still sometimes browsing cars. People were selling the cars they no longer can afford and i was fucking shocked to see people selling cars saying that the monthly pay off is like 1200 or shit like that. Who would think that is a good idea? If you can afford it there is no reason to pay it off, and if you can’t, it’s too expensive. That is just the car payment, no insurance or road fees or anything.
$1200 is ridiculous. That’s how much my mortgage is.
If you pay 500$ a month for 30 years at 5% interest compounded monthly you would contribute $180k and would have $416,129 so not really a million. You would need a little less than 9.5% interest to get a million. 2% interest is only getting you $246k which when you take into account inflation 2-3% normal average minus 5% one of the higher realistic interests that is what you are actually making .
I paid $830/month for a moderately priced car at only 2.9% for a few years. 1/3 my current yearly salary in full. It wasn’t smart, but I beat inflation at that rate. That car let me and my wife travel so much in our early marriage and it was so worth it. The car is more expensive now then when I bought it.
I love that car and it brought me joy. It’s paid off now.
Tomorrow is not promised. Save for the future but don’t neglect being happy today. Go live a little.
I’ve never understood buying a car on credit. My car’s 17 years old now. Bought it when it was 8 years old. Insurance is €390/yr.
Liquidity. Buying a car on credit is mostly stupid, but there are cases when it makes some sense. My last car loan was 3.54%. My combined accounts were earning ~8%. Paying cash in that case would be throwing away money. Well, throwing away money on top of wasting it on a car.
It drives me crazy when i get spam that says they can save me money on my car insurance
O rly? How you gonna beat $0?
In Denmark it is required by law that you have a bare-minimum insurance (to cover if you damage someone or something else). Is this not required in your country?
The point is probably that they don’t have a car to begin with
Don’t be too hard on them, in Europe we get very little spam calls. Most people even answer unknown callers.
I fail to see how this is relevant to my comment :D
I told one of these spam callers that my license has been legally revoked. It has been almost 15 years since I last got one of those calls. They used to be something that happened, at least, a few times per day.
Memes circulating with this dude right now, even if positioning him as a chud, are a way to launder this dude as just a legit money guy. Sure, he has some basic, broad financial advice you can consider if you can see through all the Jesus and have no other options, but more than anything else, he’s a vile human being.
Eat religious shit dave ramsey.
I had no idea my insurance is so much. But it is a lot. If I think about it I’ll get angry.
You can take defensive driving courses to lower it though.
sure, maybe. but FUCK Dave Ramsey.
I’m out of the loop. What’d they do?
He plays a daddy capitalist on teevee while being total boomer.
Also his debt pay off advice is bad financial advice. “Snow ball” method 🤡
Entire grift is dunking on peasants and blame their personal failings for systemic issues.
Snow ball method’s great when you’re really up shit’s creek and aren’t going to be done paying everything off anytime soon anyway.
By paying off the smaller loans first, your total minimum monthly payment is reduced quicker, leaving you better off psychologically because you finally have money to spend on food, but also you can then use the extra money every month to pay off the debts with worse interest rates.
Personally I wouldn’t fully adhere his snowball method OR the optimal “high interest first” strategy. I’d first identify the low hanging fruit and then look at the rest as a tradeoff between “how quickly could I pay this off” vs “how much would not having this payment anymore improve my life” vs “how much is this going to fuck me in the ass with interest if I don’t pay it off ahead of schedule”.
Some of his advice (mainly the first “baby steps” of paying off debts and getting some money saved) is reasonable enough. Snowball method of paying off debt may not be the most mathematically advantageous, but it does give psychological quick wins to those who may need it most. Paying off high-interest loans first doesn’t mean much if you get frustrated and give up. Setting a budget is also important.
Once you get past that his advice is pretty awful though. Yes, I use credit cards but I pay it off. Yes, I have a car loan but its interest rate is so low I pay a rounding error’s worth of interest through the life of the loan. No, I’m not paying my mortgage off on a 15-year schedule because its interest rate is plenty low as well and I’ve got better things to do with my paycheck.
That’s really exorbitant insurance. I don’t know where he lives or what is situation is but $350 a month is insane.
You can buy a very nice e-bike every year with that money.
I was unemployed for most of last year and let my insurance lapse. I’d be lucky if anyone would insure me for $350/month.
I’d put money on a pretty messy driving history for the insurance to be that much.
Two cars (~$50k each), two adult drivers, one accident in the last 7 years, no tickets = $453/mo. Fuck California and the weak cunt Newsom that can’t get these greedy fuckers under control.
Spoken like someone who’s long since stopped worrying about having to commute without mass transit available.
If mass transit is available and reasonable then yeah, go off. But otherwise please stop blaming the victims of Capitalism.
Move somewhere you have mass transit wtf
Sure, I’ll sell my nice house in the countryside and use the money to buy something not even half the size in an urban centre so I can have the privilege of being able to use a bus. No thanks.
Dave Ramsey is a hack.
broken clock tho
Time is continuous, not discrete
Well most clocks are not continuous though.
Yeah but what if the clock is broken so it’s like 15 minutes off all the time? Then it’s never right. The right twice a day is just big idiom propaganda
Damn, that’s a critical error. Good catch.
That’s…the point of the saying.
Is he the idiot who demands you only pay for things in cash and store it in labeled envelopes?
Doesn’t that 1950s(?idk) advice kinda work for some people?
“Demands” though that’s odd
He’s right for most people first beginning to improve their financial health. He has probably gotten more people out of debt than any other ‘guru’. If that’s a hack, so be it, it works.
He once fired a pregnant employee because she wasn’t married and therefore must have had premarital sex. They’ve fired 9 people for pre marital sex. Wacky
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All you need to know about Dave Ramsey: i worked on his Jaguar XK.
Is that a particularly expensive jaguar? When I was car shopping I saw some jags for 20k or less so owning a Jag means absolutely nothing when it comes to wealth.
The trick is that it costs an absolute fortune to maintain them, that’s why they’re cheap used. I believe there Is a saying that goes something like “the only car more expensive than a luxury car is a used luxury car”
Nah he’s alright. There is no nuance in his advice but for the majority of his listeners that’s probably a good thing.
Yeah he has some shit personally takes and I hate the way he runs his company. He does give pretty decent financial advice though
I can give better advice in a similarly easy to consume manner, applicable to most.
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Invest in a low cost target date fund. Look at Vanguard target date funds for examples and pick a year close to your expected retirement date.
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Pay your highest interest debt before lower.
Both of these pieces of advice make you more money than doing what Ramsay says and are equally easy to understand.
Yes, but do people do it? No.
Do people actually do what Ramsey suggests, even if it isn’t mathematically perfect? Yes.
You’re under estimating the human factor.
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Dave Ramsey has excellent financial advice for a certain type of person. I bet 90% of people reading this need Dave Ramsey style advice.
