Are any of you working a debt free program such as what Dave Ramsey and others promote? Getting debt free for young people with families is extremely hard but well worth any sacrifices you have to make. It truly is amazing how the interest rates on our various loans and credit cards add up. I know just about everybody here will say they pay their credit cards monthly and pay zero interest, however I’m not buying that.
Anybody working a plan? Hows it going? Whats the hardest art for you?
Have zero debt outside of my mortgage that will be paid off before my 45th birthday.
My plan don’t by crap I don’t need.
Pretty easy actually.
Yes we pay off CC transactions every month. No BS here.
I cant listen to that Clown.
and FYI – all debt isn’t bad debt.
I cant listen to that Clown.
and FYI – all debt isn’t bad debt.
He can be hard to listen to. Especially now as he try’s to sell his books & programs. However I think the basic premise of what he teaches is good. I’m guessing your last remark is geared towards if the loan interest rate is lower than your investment return rate it’s good debt. I ain’t going there. 
We did Dave Ramsey about ten years ago. I think it was valuable information for sure. While we didn’t do everything he says to do we picked and choosed things that worked for us. We are both debt free except for our mortgage. At 35 we are pretty happy about that.
Ramsey isn’t for everyone but it’s information people my age and younger weren’t taught in schools and I think it would’ve kept a lot of individuals out of or in less debt.
Should clarify. Not like I have never had debt. I buy new cars boats and other fun toys. I just prefer to keep that debt short term. Shorter than most I am guessing.
Worked a lot through college and paid that off pretty quickly as I jumped into the work world pretty much right away.
Different strokes for different folks.
I agree EPG.
Friends of ours (early/mid 30s with two kids) just paid off their $500k mortgage a couple months ago using the Dave Ramsey program. It was their first house and have only been in it for 5 years. I know it was a tough few years, however now they are debt free and able to do things. I’m 100% jealous of their situation and wish I had taken that approach on my first house 15 years ago.
I have $80K in student loans. I have lots of “hindsight is 20/20” experiences with my education, but it is what it is. Im thankful for being employed in the engineering field. The trades would more make sense looking back, but I also value my time in college as it opened my mind and there was so much opportunities I wouldn’t have had without it. I know many friends that had their parents sign a check for 6 figs after 4 years and that is that.
Many people are in different financial situations and life would suck if I compared myself to them. Like EPG said, not all debt is bad debt. Buy that boat and make your money work for you (invest).
34 and debt free outside of my mortgage. If it’s up to me it will stay that way. I thought it was pretty simple. I worked my butt off in college while working at the school which got me some grants/scholarships that ended up paying the last 1.5 years in full. I worked a second job all through school as well so I could keep my bills paid. I drive a 15 year old truck and a 20 year old boat. They may not be pretty, but they work. It’s all about wants and needs. I did order a new 40HP for the boat this year. so if anyone needs a 2000 25 2-stroke Suzuki tiller that runs like a top I’ll have one available in a few months…
I like Dave Ramsey. I agree his plan is geared towards the less financially literate crowd, but that crowd is a lot bigger than you would think. I don’t follow his plan perfectly, but listening to his stuff motivated me to get after my student loans. Sure I could have invested that money for a higher return than the interest I was paying, but I am glad I made a plan and took care of them first.
I think low interest debt is fine in some circumstances, and yes over the long run you will get a higher return if you invest the money you saved in an index fund. There is still a fair amount of risk involved in that strategy, and the reality is very few people actually invest the full amount. His plan forces you to avoid lifestyle creep: for example getting the brand new boat/truck/atv that you can “afford the payment” on. I have seen plenty of people end up in financial jail taking on too many payments. The last couple years have seen used values of cars/boats/atvs skyrocket, but that wont always be the case, and many will end up underwater on those low interest loans.
I have a hard time paying down a mortgage with a 2.75% rate when I can invest in index funds. If my youngest son (24) continues to listen to me, he should be able to FIRE at 40. My oldest (27) thinks it’s too good to be true and suffers from paralysis by analysis syndrome I believe. I like the Choose FI podcast and recently started listening to the Money Guy show, which I like so far. Dave is great for somebody trying to get out of debt and has no control over their spending, but if you can get control, there are better methods! Another good site for info is: https://www.early-retirement.org/
We have been debt free for at least 25 years, except our house which we had paid, but bought a lake house 4 years ago and paid off 2 years ago. It’s really not hard. Thank you financial advisor!!!!!!
Cars/trucks/boats/toys, buy the first one you can afford in cash, then make payments to yourself until you need or want a different one and pay in cash. Credit cards, use them, pay them off every month, no exceptions!!!!
The biggest thing is simply don’t spend what you don’t have, but many people cannot grasp that concept.
As far as not paying mortgage down so you can invest, just pay it off if you can and continue the same payments to yourself. Would you take out a mortgage strictly for investments?? I would not.
I stopped eating out at work, which was daily. Sometimes twice with breakfast. I’m saving $250-$300 a month. My divorce killed me financially. Add stupid purchases into the mix and it’s nice to finally figure it out. Now just need to catch up.
DT
What exactly is the goal with paying off all debt and making it to “financial freedom”?
Is it to have money to do what you want with? Buy nice things with cash? Buy a bigger house with cash? To save that money after “financial freedom” so you can have a massive nest egg?
10 years without mortgage interest you could probably build $100K in savings. If it takes you 10 years to pay off the debt to start saving, it took you a total of 20 years to build $100K. If you invested the extra monthly money instead of put it into paying off your mortgage, I guarantee you that you’d have far more than $100K saved in 20 years due to your return on investing. Where’s the gain?
Not only that, you can buy money making assets with debt if you lend wisely putting further ahead yet and have less financial liability.
39 years old. Mrs crappie is 34. We will be debt free of everything but the mortgage in 6 years and the house will be paid off in 10. Thats with a nice paid off boat and 2 nice paid off vehicles.
I’ve always been financially conservative. It’s really not all that hard to stay out of financial trouble and still have fun. But sometimes when I talk to others about my strategies they give me that blank look that reminds me this isn’t 2nd nature for everyone.
Goal is to retire by the time I’m 55.
We have had a mortgage at 2.6% and that’s it. We did take out a loan on my wife’s brand new Jeep a couple years ago but paid it down in 11 months. We purchased 40 acres of land recently and paid in cash. We are in our 30s and now building a house on that land with roughly 45% of the house paid down in cash and the rest financed privately over 10 years at 2%.
What we don’t have is a 21’ Ranger (it’s crazy how well a 17’ fiberglass boat handles rough water but nobody will admit it). Our tritoon is 5 years old purchased with cash. I drive a 2013 pickup most days and couldn’t care less about the latest and greatest out there. I don’t see why I won’t drive it another 6-8 years. We don’t eat out 4 nights a week, drink $7 coffees each morning, etc.
My wife and I both have families that have taught us the value of investing and stashing money towards retirement. We max out those contributions. We also aren’t afraid of having debt if it’s towards assets that hold value and are for our entire family. Toys or things we each enjoy more on our own aren’t financed. Our goal is to be debt free at 55 in our forever home, and retired at 60 with 80 acres adjoining the additional family acreage. So far we’re on track and enjoying the ride. It may not be flashy, but it’s working for us.
I’m 29, wife is 31, and this November we will have been on a “modified” Ramsey plan since November of 2019. We definitely don’t stick hard and fast to all of his rules, but follow the foundational concepts and we have paid off a boat load of debt since we started. Even though we both make a pretty good salary, each one of us has a fair number of student loans yet, and with two kids in daycare/preschool we definitely need to be smart with our money. However, we are comfortable (for now) in our small starter home, and when my wife is done with her masters next year she will be getting a pretty solid pay raise. Goal is to have all student loans gone by the time I’m 35, and build a long term home on land soon after.
Debt is an ugly hole to get out of. Been there done that. Divorce hurt but in the end will be the best thing that happened financially. Just saw my credit creep over 800 first time ever. That is my latest success.
39 years old. Mrs crappie is 34. We will be debt free of everything but the mortgage in 6 years and the house will be paid off in 10. Thats with a nice paid off boat and 2 nice paid off vehicles.
I’ve always been financially conservative. It’s really not all that hard to stay out of financial trouble and still have fun. But sometimes when I talk to others about my strategies they give me that blank look that reminds me this isn’t 2nd nature for everyone.
Goal is to retire by the time I’m 55.
That’s solid. Pretty much everything you posted is my life too except my wife is 38 not 34 and I hope to retire by 60. 55 would be pretty ridiculous but I would take it.
I cant listen to that Clown.
Hey…I take resentment is using that term in negative connotation.
<div class=”d4p-bbt-quote-title”>crappie55369 wrote:</div>
39 years old. Mrs crappie is 34. We will be debt free of everything but the mortgage in 6 years and the house will be paid off in 10. Thats with a nice paid off boat and 2 nice paid off vehicles.I’ve always been financially conservative. It’s really not all that hard to stay out of financial trouble and still have fun. But sometimes when I talk to others about my strategies they give me that blank look that reminds me this isn’t 2nd nature for everyone.
Goal is to retire by the time I’m 55.
That’s solid. Pretty much everything you posted is my life too except my wife is 38 not 34 and I hope to retire by 60. 55 would be pretty ridiculous but I would take it.
Yeah we bought 2 new vehicles this year which was very out of character for me and not something I would normally advise. But I plan on keeping both of them for at least 15 years and probably closer to 25 for the truck. One of the vehicles my FIL was nice enough to pay off for us and we pay him a set amount back each month. This way if sh** hits the fan we have more flexibility
Before this the average price of my vehicles was probably around $1000 and I’ve had a lot of them lol.
My youngest is in preschool. Last year of full daycare costs! That’s $1250 a month back in my pocket!
we are comfortable (for now) in our small starter home,
The payoff when you get a place you really like will be awesome. I think a lot of people make the mistake of buying “too much house” too soon. I grew up on about 600 acres of farmland and after getting out of the army lived on about a quarter acre in a small town. I honestly felt pathetic being a rural farm kid living next to so many people. Ended up living there 10 years. For 10 years whenever it came up I’d say “well when the time/money is right we’ll move to the country.” Thought it would happen a lot sooner, but the place we ended up getting is in the middle of nowhere and I love it.
Buying a smaller, “ok” or “starter” home in a small town worked because before too long and getting some work history the mortgage was very manageable, so I’d pay extra and also save like hell for a down payment on a new home. Hopefully you can do the same.
What happened with me is what I consider “leapfrogging” other I know. When we were in our 20’s and in that out of college/military/starting a family phase I bought a house for about $150,000 while some other friends and relatives were buying $250,000 or more homes. I was jealous for awhile because they all had newer, nicer homes in the new development parts of towns they lived in. Well with a lower mortgage I was putting money away and have now leapfrogged them, most of them are still in those homes and I’ve got acreage and trees and no one around, and now they’re the ones envying my situation. I don’t mean to come off as some sort of genius because what happened to me was partially a plan and partially just how things ended up, but I’m glad the way they did.
One thing I hear quite a bit that baffles me is with regards to social security. You can start collecting at age 62 but I hear a lot of people say they’re going to wait until say 65 because they’ll get a extra $300 or so per month. Let’s say for math purposes you could get $20,000 a year starting at 62, that’s sixty grand by the time your 65. That extra 300 a month would take 16.5 years to hit $60,000. Take it while you’re young enough to enjoy it.
Don’t follow what I do
We’re in the process of doubling what debt we have by buying 80 acres…. 
But the toys and vehicles are paid for, so it’s not too horrible, and it’s something I don’t think we’ll ever regret. Positive net worth is more important than just simply being debt free.
The critters cost $3,000 a month alone to maintain, imagine all of the spare coin we’d have laying around if we were sterile
I’d have a brand new 300 Marlin Grady White in a slip and a lot more hair on my head right now lol (but I wouldn’t trade them for the world)
As for credit cards Dutchy, we hardly use them. The only thing we ever put on them is a hotel stay. I know a lot of cards have some decent perks, and some people take advantage of it by putting everything on a card each month, but it’s not something we’ve ever pursued or ever plan to.
<div class=”d4p-bbt-quote-title”>waldo9190 wrote:</div>
we are comfortable (for now) in our small starter home,Buying a smaller, “ok” or “starter” home in a small town worked because before too long and getting some work history the mortgage was very manageable, so I’d pay extra and also save like hell for a down payment on a new home. Hopefully you can do the same.
In a nutshell, this is/has been our plan. Our mortgage and utilities are insanely cheap compared to what we would be paying in our desired next home. A BAD gas bill (heat, hot water, oven) is $80. I really want to be out of town/on land by the time my girls are a few years older and can enjoy it, run around in the woods, etc, so given that they’re so young we have time.
If we are fortunate enough to build our list of “needs” should be pretty easy to fulfill by a contractor….
1) 2+ baths
2) 2+ car garage
3) A damn dishwasher
Im 53. I could retire right now if i want. Except for the health insurance. That is why I will not be retiring until medicare kicks in.
DTW
Late 20s. Wife and I only have debt on our house and a couple almost paid off auto loans. Both raised pretty financially conservative. The biggest thing for us was getting the student loans paid off. That freed us up a lot. Also the whole living within/below your means. I dont think Dave Ramsey is a bad choice for most people my age to listen to. Lots of people I know are way over leveraged.
My wife and I follow the Dave Ramsey plan and have been debt free for ~7 years. We live a minimalistic lifestyle, drive used cars with only liability insurance, and still live in our starter home. Not “Keeping up with the Joneses” is probably the most annoying part. To be honest, I don’t really give a shxt though.
The fun part is when you start seeing results of investing money that would have gone toward your mortgage, a couple car payments, etc. Putting these in an investment calculator usually opens folks eyes.
https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator
<div class=”d4p-bbt-quote-title”>Eelpoutguy wrote:</div>
I cant listen to that Clown.Hey…I take resentment is using that term in negative connotation.
Rorry!
My youngest is in preschool. Last year of full daycare costs! That’s $1250 a month back in my pocket!
Let’s face it. Kids are money pits. Nothing else is even close.
I had an hour long meeting with my financial advisor last April about long term goals and based on 1,000 different outcomes, he gave me a “high probability” of being able to retire by the age of 61. Obviously there are many variables that come into play here, but he specifically said that children are the biggest variable. Currently the only debt I have is my mortgage.
Being married and having 2 incomes is a significant financial advantage. You essentially double your income and cut most of your expenses in half.
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