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re: Mississippi State to Require Personal Finance/Dave Ramsey of all athletes
Posted on 6/10/15 at 11:06 am to Lonnie Utah
Posted on 6/10/15 at 11:06 am to Lonnie Utah
quote:
I always thought that many's peoples objections to Dave's philosophies were that they faith based.
I did for a while as well. The getting out of debt and budgeting stuff - that should be common sense. It is strange to me that he sells it en masse - but that's a testament on the general public, not him.
My only beef with him is that he completely disregards that if one is disciplined, that they can make debt a slave instead of a master. You can get a 2% or less loan on a car at virtually any credit union - and invest the money and make 8-12%, compounded on a $20,000 car vs. paying cash, you are paying $1,033 in interest vs. making $9,300 by investing the $20k with even an 8% return.
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Posted on 6/10/15 at 12:27 pm to anc
quote:
My only beef with him is that he completely disregards that if one is disciplined, that they can make debt a slave instead of a master. You can get a 2% or less loan on a car at virtually any credit union - and invest the money and make 8-12%, compounded on a $20,000 car vs. paying cash, you are paying $1,033 in interest vs. making $9,300 by investing the $20k with even an 8% return.
This is what I meant in my post on the first page - its not meant for financial gurus or experts or those with a lot of financial discpline
For 95% of the country, they don't have the discpline to pull off the example you gave, and so its best for them to simply avoid debt altogether.
Posted on 6/10/15 at 12:45 pm to anc
quote:
that they can make debt a slave instead of a master. You can get a 2% or less loan on a car at virtually any credit union - and invest the money and make 8-12%, compounded on a $20,000 car vs. paying cash, you are paying $1,033 in interest vs. making $9,300 by investing the $20k with even an 8% return
Very few individuals can currently earn that rate of return. Banks pay zero on savings, etc.
What investments are making that return?
Income is taxed, but car interest is not deductible. So you would not net that much.
For most people debt is bad, especially credit card debt with high interest rates.
This post was edited on 6/10/15 at 12:46 pm
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