Dave Ramsey "Nailed it!"

[C3C7NIC]

3-6 months of emergency funds.

I stopped following Dave Ramsey once I had the hang of his basically simple approach to money management as a 20 something year old single parent. I have always lived FAR below my means, something I think most Americans have a hellova hard time doing.

Far to many people live pay check to pay check, and no I am not referring to new college grads or those in poverty. I am talking about those with 2 brand new luxury cars, a house they can barely afford the mortgage on, all 4 members of the family have the latest $1100 cell phone etc.

Then when the SHTF, they are devastated they cannot maintain their lifestyle.

[MadInNc]

Originally Posted by C3C7NIC

3-6 months of emergency funds.

I stopped following Dave Ramsey once I had the hang of his basically simple approach to money management as a 20 something year old single parent. I have always lived FAR below my means, something I think most Americans have a hellova hard time doing.

Far to many people live pay check to pay check, and no I am not referring to new college grads or those in poverty. I am talking about those with 2 brand new luxury cars, a house they can barely afford the mortgage on, all 4 members of the family have the latest $1100 cell phone etc.

Then when the SHTF, they are devastated they cannot maintain their lifestyle.

Obviously short term memory.... do they remember 2008? I do

[dvarapala]

I never followed Dave Ramsey; living below your means and saving for a rainy day is just common sense.

[DAB]

a long, long time ago, a few years into my first job, working for a large Engineering firm, there were somewhat regular layoffs, as contracts got done and staffing was no longer needed. so rumors would circulate, and water cooler discussions would ensue. "did you hear about coming layoffs?" "i hope i don't get laid off" and similar.

so one day, i'm part of a discussion on this, and someone asks me

"hey Brinkman, what will you do if you get laid off?"

"find another job somewhere."

"but what will you do for money?"

"eh, i have some saved aside."

"like, how much?"

"enough to cover my living expenses for about 6 years."

"oh"

[Dan Dlabay]

As a kid my dad made me save half of the money I made from my paper route. He also said do not depend on the government or social security. Build your own nest egg. Took his advice and I have been saving part of my paycheck ever since. Now that I am retired I have my nest egg. I miss my dad.

[snide]

The wealthiest camel has the biggest hump.

[DAB]

Originally Posted by Dan Dlabay

As a kid my dad made me save half of the money I made from my paper route. He also said do not depend on the government or social security. Build your own nest egg. Took his advice and I have been saving part of my paycheck ever since. Now that I am retired I have my nest egg. I miss my dad.

i know how much the .gov says i'll get from social security when i can take it in 5 years. i also know that if i get zero, i'll still be able to pay all my bills. so I treat that future money promise as "beer, bait, and ammo" money. and since i don't drink beer, nor fish, it becomes "ammo" money.

[C3C7NIC]

Originally Posted by dvarapala

I never followed Dave Ramsey; living below your means and saving for a rainy day is just common sense.

Here's the problem sunshine, common sense is getting harder and harder to come by.

WHY?


Because those without it are procreating faster than those with it, so it's getting bred OUT of the gene pool.


God help us.

[C3C7NIC]

Originally Posted by DAB

i know how much the .gov says i'll get from social security when i can take it in 5 years. i also know that if i get zero, i'll still be able to pay all my bills. so I treat that future money promise as "beer, bait, and ammo" money. and since i don't drink beer, nor fish, it becomes "ammo" money.

I will say, some of our close friends know where we are financially and often mock us for our frugality. They also make fun of us for knowing how to garden and live a more self sustaining life style and not keeping large % of our $$ in the stock market.


Who is laughing now biotches.

[markids77]

I wonder why corporations are not encouraged to do exactly this... the Airlines specifically have been raking in record profits for several years now, where's their rainy day cushion? First thing in this they want 50 billion. I say **** them, they should save just like the rest of us have to.

[Mick]

Originally Posted by C3C7NIC

I will say, some of our close friends know where we are financially and often mock us for our frugality. They also make fun of us for knowing how to garden and live a more self sustaining life style and not keeping large % of our $$ in the stock market.


Who is laughing now biotches.

If you have been investing properly, there is no reason to panic, or even be the slightest bit upset about what is happening in the stock market. I had been saying for months that I couldn't find a single stock that I liked the valuation, and that I thought the entire market was overbought. Then, it dropped 35%. Wow, knock me over with a bulldozer.

[Aerovette]

When I was broke, I had no concept of savings because everything was a "need".

Once I started having a bit more, I understood the importance of savings. Unfortunately it came way too late in life for me to relax. I'll work until I die because I'll have to.

You can't jump into the Indianapolis 500 on the last lap and hope to win no matter how fast your car is.

[VatorMan]

People with guns and ammo trump people with cash. When you get to a point that goods are worth more than any cash, guess what ? People with guns go shopping.

[C3C7NIC]

Originally Posted by VatorMan

People with guns and ammo trump people with cash. When you get to a point that goods are worth more than any cash, guess what ? People with guns go shopping.

I vote for both!


Winning.

[dvarapala]

Originally Posted by C3C7NIC

Here's the problem sunshine, common sense is getting harder and harder to come by.

WHY?


Because those without it are procreating faster than those with it, so it's getting bred OUT of the gene pool.


God help us.

You've just nicely summarized the plot of Idiocracy. If you haven't yet seen this movie, snuggle up with the hubs and a bottle of wine and peep it this weekend.

[Bill]

Originally Posted by DAB

i know how much the .gov says i'll get from social security when i can take it in 5 years. i also know that if i get zero, i'll still be able to pay all my bills. so I treat that future money promise as "beer, bait, and ammo" money. and since i don't drink beer, nor fish, it becomes "ammo" money.

You should start!