Dave ramsey math has to be the most ridiculous math of all time

[CosmicGate0289]

he routinely talks to people with like 200K on debt earning 150k a year and tells them to throw 80k a year at it


...150k a year is 110 after taxes. How does someone live on 30K in 2024? rent alone is 30k a year. Also i Love how he doesn't figure interest into the equation. 200k at 7% is 14k a year interest alone

[CosmicGate0289]

bump

[Paul Kreul]

bump

Is your name Peter?

[TheScapeGOAT]

Beans and rice

[Dave22reborn]

Explain why I should feel bad for someone who's 200k in debt?

[blueberryboy]

Then stop listening to him then

It's literally these people's only option to get out debt.

[CosmicGate0289]

Then stop listening to him then

It's literally these people's only option to get out debt.

I don't disagree with his logic or overall advice


I think his numbers and calculations are ****ing ridiculous. Nobody is throwing 70k a year at debt unless they're making 200+. It's so hard to even live on 50 nowadays unless you got a real cheap mortgage and 200k after tax is only like 130

[johnnydeep1]

He tells people what they already know. Pay off debt, invest what you can and live below your means.

[blueberryboy]

I don't disagree with his logic or overall advice


I think his numbers and calculations are ****ing ridiculous. Nobody is throwing 70k a year at debt unless they're making 200+. It's so hard to even live on 50 nowadays unless you got a real cheap mortgage and 200k after tax is only like 130

It's hard but you gotta take a deep look at your monthly budget and find out where you're throwing cash out the window

[CosmicGate0289]

He tells people what they already know. Pay off debt, invest what you can and live below your means.

I understand that but his calculations are atrocious


the fact that he doesn't take taxes into account (and when he does, it's way too low. People making 150k are taxed at nearly 35%) and interest into account is insane. He also has no idea how expensive avg person lifestyle is when you gotta pay for rent, daycare, etc... He tells people routinely to live on 30 or 40k a year and rent and utilities alone is often that much

[ltsOgre]

Rent is super cheap now since it has dropped from pandemic highs. Bankruptcy is the better option usually but paying off debt is not hard in this economy.

[CosmicGate0289]

It's hard but you gotta take a deep look at your monthly budget and find out where you're throwing cash out the window

the avg middle class family in america is not vacationing in barbados or driving very fancy cars dude


it's not a question of crazy spending. Everything now is very expensive compared to median incomes. An avg family renting an avg place, getting food, normal utilities - you're probably looking at 5K a month then you gotta add health insurance and other stuff

[CosmicGate0289]

Rent is super cheap now since it has dropped from pandemic highs. Bankruptcy is the better option usually but paying off debt is not hard in this economy.

median rent in america is 2100 dollars


median household income is 80K. after taxes that's like 60K. Median rent is 30% of net income. How is that cheap? that's a **** ton


rent should be 15-20% of incomes

[davik]

i thiunk he advocates people to work more so that how

[xTEXASPRIDEx]

median rent in america is 2100 dollars


median household income is 80K. after taxes that's like 60K. Median rent is 30% of net income. How is that cheap? that's a **** ton


rent should be 15-20% of incomes

this.

here in Texas everyone is driving an 80k truck. makes you wonder how much debt people are in.

[Archangel_Lost]

1. beans and rice
2. second job delivering pizza
3. ??????
4. debt free

[propreffered7]

He tells people what they already know. Pay off debt, invest what you can and live below your means.

idk if that's always sound.. i mean.. it may work.. sometimes

but sometimes its smarter to leverage debt

i get the sentiment if the lesson is told to someone who seems to be unable to control debt

but still

saying something like someone HAS to buy a 2k dollar car because thats all they can afford in cash vs. taking out a loan for a 10k dollar car

when a 10k dollar car can last much longer.. whereas possibly you may pay 2k for a piece of junk that either a) doesn't work at all affecting your ability for income or b) paying for more repairs or c) paying for more cars

i just don't think its right to assume that that 2k dollars was better spent AND covered all opportunity costs

[Bluestar92]

How do people even get into that much debt? Its gotta be car loans. I make 2x my states median salary and asked for a credit increase from 5K to 10K on my main CC and was denied. I've got a 770 credit score and have had that CC 12 years and paid the balance off in full every month since I got it. I couldn't get into debt if I tried.

[BigTimeOperator]

I used to listen to him years ago, and half the people that would call in were pretty much aready Bankrupt, they just needed to realize that and declare BK.

For the working class, in order to budget yourself, rent or mortgage is one weeks take home pay and a vehicle payment is 10% of take home. That way you still have a way to invest 25% of take home and have money left over for bills and groceries and a savings account.

Too many people pay 40% to 70% for rent and one weeks take home pay for a vehicle payment, then end up putting gas and groceries and clothes an d stuff on credit cards, then wonder why the vicious cycle is happening to them.

One problem is obvious that rent and vehicle and insurance costs are way too high, but they get approved for loans and rent anyway. Eventually people are going to quit playing a game that is rigged against them and just quit working and try for diability and food stamps and live in a van.

[usersignup2]

I don't disagree with his logic or overall advice

then stop being a fukcin whiner

[TryingMen]

Gotta keep them poor so they keep coming back paying him money for the answer nawmsayin

[eddiehaskell]

a person should easily be able to live on $30k if all their bills plus extra paid and the principal is covered by the $80k.

[CosmicGate0289]

I used to listen to him years ago, and half the people that would call in were pretty much aready Bankrupt, they just needed to realize that and declare BK.

For the working class, in order to budget yourself, rent or mortgage is one weeks take home pay and a vehicle payment is 10% of take home. That way you still have a way to invest 25% of take home and have money left over for bills and groceries and a savings account.

Too many people pay 40% to 70% for rent and one weeks take home pay for a vehicle payment, then end up putting gas and groceries and clothes an d stuff on credit cards, then wonder why the vicious cycle is happening to them.

One problem is obvious that rent and vehicle and insurance costs are way too high, but they get approved for loans and rent anyway. Eventually people are going to quit playing a game that is rigged against them and just quit working and try for diability and food stamps and live in a van.

I think honestly even one week take home pay for rent is too much. If you make 6k a month, you're talking 1500 rent. Even that's too much. it's hard to save money doing that

[BigTimeOperator]

If you can find a place less that 1500 then more power to you.

[eddiehaskell]

If you can find a place less that 1500 then more power to you.

i have some clean/safe neighborhood homes for rent in the charlotte area for under $1500/month

[BigTimeOperator]

If you can get out from under a car payemnt, that would be pretty sweet. I pay $1225 for a 1BR with a garage in Rural TX right now.

[blueberryboy]

I think honestly even one week take home pay for rent is too much. If you make 6k a month, you're talking 1500 rent. Even that's too much. it's hard to save money doing that

Lol if only. I dont rent but I imagine most Americans are putting down 1/3 atleast of their income on rent

Regardless of this whole rent vs buy concept on here...what i noticed is it's rare to have someone well off renting...vast majority of them own. People rent out of necessity

[Maestro]

I'll go as far as saying, his advice was good....15 years ago. The problem is, he's still trying to give that same advice in 2024. He seems to be unaware that we're in a completly different economy from when he started his show.

[nutsy54]

median rent in america is 2100 dollars

Which literally means half the places cost less... Yet you claimed $2,500/month rent in the OP. The point is to live bare-bones for a short period. Work extra for a short period to increase income. Stop buying Wants and focus solely on Needs.

[nutsy54]

Gotta keep them poor so they keep coming back paying him money for the answer nawmsayin

Except Dave's advice is the quickest way OUT of being poor... And it can be successfully following without paying him anything.