Comments on: Thoughts on Dave Ramsey http://www.moneyloveandchange.com/thoughts-on-dave-ramsey A Journey to Financial Independence and Finding Meaning in Life Fri, 15 Oct 2010 03:11:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Joel http://www.moneyloveandchange.com/thoughts-on-dave-ramsey/comment-page-1#comment-197 Joel Thu, 12 Jun 2008 17:51:25 +0000 http://www.moneyloveandchange.com/thoughts-on-dave-ramsey#comment-197 Yes, they've already been consolidated. I think it makes more sense to pay off the debt than invest in the Roth, although I understand the urge since time is your greatest ally (and enemy!) thanks to compound interest. Our TMMO is really going well, I just wish it could go faster! But then again, I think the time and effort invested is ultimately a large part of the overall process. Best of luck! Yes, they’ve already been consolidated. I think it makes more sense to pay off the debt than invest in the Roth, although I understand the urge since time is your greatest ally (and enemy!) thanks to compound interest.

Our TMMO is really going well, I just wish it could go faster! But then again, I think the time and effort invested is ultimately a large part of the overall process.

Best of luck!

]]> By: moneyloveandchange http://www.moneyloveandchange.com/thoughts-on-dave-ramsey/comment-page-1#comment-196 moneyloveandchange Thu, 12 Jun 2008 17:01:03 +0000 http://www.moneyloveandchange.com/thoughts-on-dave-ramsey#comment-196 Joel, Thanks so much for responding! Just to update, we're back up to $5000 in savings. Now we're deciding between Roth IRA payments vs. the student loan. The mortgage thing is kind of taking the back burner for now. Have you looked into consolidating your wife's student loans to lock in the interest rate? We do have other student loans, but this $3500 is a private loan, and we couldn't consolidate it. Just an idea. Best of luck with your money makeover! Joel,

Thanks so much for responding! Just to update, we’re back up to $5000 in savings. Now we’re deciding between Roth IRA payments vs. the student loan.

The mortgage thing is kind of taking the back burner for now.

Have you looked into consolidating your wife’s student loans to lock in the interest rate? We do have other student loans, but this $3500 is a private loan, and we couldn’t consolidate it. Just an idea.

Best of luck with your money makeover!

]]> By: Joel http://www.moneyloveandchange.com/thoughts-on-dave-ramsey/comment-page-1#comment-191 Joel Wed, 11 Jun 2008 14:13:23 +0000 http://www.moneyloveandchange.com/thoughts-on-dave-ramsey#comment-191 I'm a total Ramsey addict and my wife and I are following his plan to the Tee. But that does not mean that other approaches can't work. I think there are definite benefits and specific reasons why his plan is laid out like it is, but overall I think actually HAVING A PLAN is by and far the most important lesson. You are in total control of your finances and you have a well reasoned plan of attack. I think if you stick to it, you will probably win. I would question the real benefit of the mortgage payoff. Yes, you can keep the money in savings, and earn 3%, which is probably only going to be a couple of hundred dollars a year. For that money, you get the hassle of paying your own taxes and insurance. Additionally, you open yourself up to the temptation of using that money in case of emergency or (even worse) temptation. Like when the truck dies. Just stuff to consider. As for the student loan: I hate my wife's as well, but at $40,000 I have little sympathy for $3,500! :-) And if 7.5% is your HIGHEST, then I think you are doing well. Go ahead and pay it off: it will make you feel good and certainly won't hurt you financially. Peace, Joel I’m a total Ramsey addict and my wife and I are following his plan to the Tee. But that does not mean that other approaches can’t work. I think there are definite benefits and specific reasons why his plan is laid out like it is, but overall I think actually HAVING A PLAN is by and far the most important lesson.

You are in total control of your finances and you have a well reasoned plan of attack. I think if you stick to it, you will probably win.

I would question the real benefit of the mortgage payoff. Yes, you can keep the money in savings, and earn 3%, which is probably only going to be a couple of hundred dollars a year. For that money, you get the hassle of paying your own taxes and insurance. Additionally, you open yourself up to the temptation of using that money in case of emergency or (even worse) temptation. Like when the truck dies. Just stuff to consider.

As for the student loan: I hate my wife’s as well, but at $40,000 I have little sympathy for $3,500! :-) And if 7.5% is your HIGHEST, then I think you are doing well. Go ahead and pay it off: it will make you feel good and certainly won’t hurt you financially.

Peace,
Joel

]]> By: moneyloveandchange http://www.moneyloveandchange.com/thoughts-on-dave-ramsey/comment-page-1#comment-148 moneyloveandchange Tue, 29 Apr 2008 05:53:27 +0000 http://www.moneyloveandchange.com/thoughts-on-dave-ramsey#comment-148 Wits: Thanks for responding! I should have made it more clear that we plan on tackling #1, and then #2. After that, we are unsure whether to proceed with #3 next, or #4. We will do them in some sequential order, however, and not all at once. We are also placing a higher priority on making retirement contributions vs. eliminating low-interest (0-4%) debt. This may change as I look into work-at-home job options. Tim: I always love getting something! We have an ING account, but will look into other alternatives once we can get rid of that escrow account. We have an IGo savings account, but it was a pain to manage online (it just wasn't intuitive when attached to two checking accounts), so we're going to close it. Paypal is a good option as well - we've used that in the past, and will definitely consider it when the time comes. Wits: Thanks for responding! I should have made it more clear that we plan on tackling #1, and then #2. After that, we are unsure whether to proceed with #3 next, or #4. We will do them in some sequential order, however, and not all at once. We are also placing a higher priority on making retirement contributions vs. eliminating low-interest (0-4%) debt. This may change as I look into work-at-home job options.

Tim: I always love getting something! We have an ING account, but will look into other alternatives once we can get rid of that escrow account. We have an IGo savings account, but it was a pain to manage online (it just wasn’t intuitive when attached to two checking accounts), so we’re going to close it.

Paypal is a good option as well – we’ve used that in the past, and will definitely consider it when the time comes.

]]> By: Tim http://www.moneyloveandchange.com/thoughts-on-dave-ramsey/comment-page-1#comment-147 Tim Sun, 27 Apr 2008 21:59:20 +0000 http://www.moneyloveandchange.com/thoughts-on-dave-ramsey#comment-147 You said: "Although interest rates in savings accounts isn’t so great right now, the lower mortgage payment would be a nice psychological boost. " Even though the rates are not great, getting something is better than nothing. You can open an account with hsbcdirect.com and get 3.05% instead of the bank holding your money for free. It also looks like paypal is giving a decent amount on their money market account too. <em>Tim's last blog post..You Want A Hot Tub On The Cheap?</em> You said:
“Although interest rates in savings accounts isn’t so great right now, the lower mortgage payment would be a nice psychological boost. ”

Even though the rates are not great, getting something is better than nothing. You can open an account with hsbcdirect.com and get 3.05% instead of the bank holding your money for free.

It also looks like paypal is giving a decent amount on their money market account too.

Tim’s last blog post..You Want A Hot Tub On The Cheap?

]]> By: wits3nd http://www.moneyloveandchange.com/thoughts-on-dave-ramsey/comment-page-1#comment-146 wits3nd Sun, 27 Apr 2008 14:24:32 +0000 http://www.moneyloveandchange.com/thoughts-on-dave-ramsey#comment-146 You may run the risk of taking on too many tasks at once. Get you starter emercency fund in place and then focus on eliminating your debt except for your house. As I understand the Ramsey plan, the idea is to only spend 18-24 months in debt elimination. If it takes longer than that you may have too many car loans or too big a mortgage to get any traction. Having an intense focus on killing your debt is why it makes sense to temporarily suspend retirement contributions. Once your debt is gone, you'll have more than enough resources to catch up. Trying to pay down your student loan (instead of your smallest debt first) and also bringing down your mortgage could splinter your focus. Good luck with whichever plan you choose. If you find yourself bogging down, try eliminating your smallest debt first. You may run the risk of taking on too many tasks at once. Get you starter emercency fund in place and then focus on eliminating your debt except for your house. As I understand the Ramsey plan, the idea is to only spend 18-24 months in debt elimination. If it takes longer than that you may have too many car loans or too big a mortgage to get any traction.

Having an intense focus on killing your debt is why it makes sense to temporarily suspend retirement contributions. Once your debt is gone, you’ll have more than enough resources to catch up.

Trying to pay down your student loan (instead of your smallest debt first) and also bringing down your mortgage could splinter your focus.

Good luck with whichever plan you choose. If you find yourself bogging down, try eliminating your smallest debt first.

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