What are your thoughts on Networth maxxing? srs

[MetroBrah]

Me and a bud were talking about this the other day. How Dave Ramsey doesn't even buy investment properties unless he can buy them 100% cash. Now this kind seems absurd when you think about it, but his argument was that taking out a mortgage would be a ding to his networth and therefore, not be worth it, I suppose plus any risk taking on that debt would incur. And of course he is 100% against car notes.

This got me thinking, this anti debt at all costs philosophy is mostly just based on balance sheet networth, which in my mind doesn't really matter that much, maybe outside of your credit-worthiness and personal risk tolerance? Maybe I'm wrong.

Cliffs

- Dave Ramsey method focuses on eliminating all debt and having a greater networth

- Robert Kiyosaki method doesn't seem to care about networth, especially in the short term and focuses purely on income.

[wave_length]

Me and a bud were talking about this the other day. How Dave Ramsey doesn't even buy investment properties unless he can buy them 100% cash. Now this kind seems absurd when you think about it, but his argument was that taking out a mortgage would be a ding to his networth and therefore, not be worth it, I suppose plus any risk taking on that debt would incur. And of course he is 100% against car notes.

This got me thinking, this anti debt at all costs philosophy is mostly just based on balance sheet networth, which in my mind doesn't really matter that much, maybe outside of your credit-worthiness and personal risk tolerance? Maybe I'm wrong.

Cliffs

- Dave Ramsey method focuses on eliminating all debt and having a greater networth

- Robert Kiyosaki method doesn't seem to care about networth, especially in the short term and focuses purely on income.

Networth doesn't go down when going into debt for an asset that's worth the money.

[hoganrulz]

Cash is king baby fuk debt

[OliverHeldens]

Dave Ramsey has a good mentality for people who are clueless about money, but he's not very sophisticated.

Cash-on-Cash is one of the most important metrics for evaluating an investment property. Sure it might make sense to buy a property cash and take debt later, but why have 100% equity in one house when you can have 25% equity in 4 houses(and capture appreciation and rent increases on 4 houses simultaneously rather than 1)?

[wave_length]

Dave Ramsey has a good mentality for people who are clueless about money, but he's not very sophisticated.

Cash-on-Cash is one of the most important metrics for evaluating an investment property. Sure it might make sense to buy a property cash and take debt later, but why have 100% equity in one house when you can have 25% equity in 4 houses(and capture appreciation and rent increases on 4 houses simultaneously rather than 1)?

He has good advice how to get and stay out of debt, if that's what you want. His advice on investing is nonsense though.

[Beararms]

I'm sure everyone that wants a house has the cash or makes enough money to buy it in 2-3 years tops... Yea I'm not listening to him when it comes to anything outside of debt.

This is where credit is king. While you are taking 10 years saving up money for a house because Dave Ramsey told you, most smart people would've leveraged their credit to get it and make bank off the equity.

[Omnivium]

I think home loans can be really useful, especially at these low rates. His advice is mostly targeted toward people who are bad with money and can't be trusted with any type of debt. I would disregard if you're good with money

[six2mogger]

i actually got this account on lease. will become green when i pay it all off.

[5x10]

Dave Ramsey has a good mentality for people who are clueless about money, but he's not very sophisticated.

Cash-on-Cash is one of the most important metrics for evaluating an investment property. Sure it might make sense to buy a property cash and take debt later, but why have 100% equity in one house when you can have 25% equity in 4 houses(and capture appreciation and rent increases on 4 houses simultaneously rather than 1)?

its called risk

[MyBaddBrah]

His strategy is ignoring long term net worth at the expense of short term (meaningless) net worth. He speaks to people who have only completed 7th-8th grade level math, which is like 90% of people.

[anonymous]

Dave Scattino owned Ramsey outdoor but the store was in his wife’s name.

[headturner1]

Dave Scattino owned Ramsey outdoor but the store was in his wife’s name.

Motherfuker also slept in a tent in the store to pretend like he was camping lol!

[SoutheastBeast1]

I personally keep all of my money under my mattress.

[HYDRAE]

but who was opportunity cost?

[samsbolton]

His strategy is ignoring long term net worth at the expense of short term (meaningless) net worth. He speaks to people who have only completed 7th-8th grade level math, which is like 90% of people.

Can’t believe im wasting my 10,000 th post on this, but that isn’t his strategy at all. Jesus.

[MatthewChav]

Can’t believe im wasting my 10,000 th post on this, but that isn’t his strategy at all. Jesus.

Shows ur a troll then, don't it!!

[soaponarope1]

Probably shouldn't base 'networth maxxing' on a guy who clearly doesn't know how net worth is calculated.

[IlChosenOne]

Networth doesn't go down when going into debt for an asset that's worth the money.

Much less one that increases in value
Bought a house last year, on a mortgage
It has increased at least $15,000 in value since then
Guess what op?
That $15,000 gets added to my networth

Yeah, according to Dave’s system I should not have bought my house and kept living in my tiny, chitty apartment for $600/month
But I refinanced my mortgage this month and now will be paying $850/month for a 3 bed 2 bath house
And now I’m considering getting roommates and renting out the extra bedrooms for $350-$400 each so I can have passive income while I try to launch my porn career
That is true networth-maxxxing

[Coltylou]

Networth doesn't go down when going into debt for an asset that's worth the money.

Thread over