Any Dave Ramsey fans in here or financial gurus? Need advice..

Bad500Chris

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I agree with what Dave says until it gets towards the end. (IE don't go into unnecessary debt.)
ROTH IRA, don't sell the car, refi out of the PMI and consider a 15 year fixed. You are on the right track, keep doing what you are doing.
 

IronSnake

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Here's the ultimate question, and one I challenge.

Step 1 of a grand in your savings is great, but a grand doesn't pay all of my bills.

I think 3 months worth of your bills is an absolute minimum. Call it a waste, but if you need it, it's good to have. If you have 2-3k in monthly bills, then you'd want 10k. That's money that also enables you to jump on good opportunities (cheap car that's worth more etc).

Anything after that, I'd throw at bills/finances that need to be paid down and/or off.
 

usafimj

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Here's something I came across a couple of years ago on a reddit finance page. Really breaks it down.

CcEVQAV.jpg
 
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Klaus

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Hello all, needing a bit of financial advice. following Ramseys baby steps, I saved an emergency fund of 12 months and payed off all my debt except my home. Owe 179k, worth about 225k according to my realtor friend. Not yet contributing to any IRAs or retirement accounts. Im 34, not married, no kids. Currently giving myself a 700 dollar a week salary, I am an auto technician at a local auto dealer and make flat rate Average about 1200 take home. Putting 500 away as an extra payment towards my principal of the home. My question is should I sell my 03 Cobra that is payed off to pay down my principal lower, or should I keep it and continue doing whay I am doing. Thanks in advanced

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I would sell it and fund your retirement in a roth IRA. You have a lot of wood to chop on that front. Max out your 401k while you are at it. Do not pay off your mortgage principle, this is often a mistake as the interest is tax deductible which in itself is a tremendous asset. Get a fee based financial advisor and meet with him once a year.
 

earico

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I would sell it and fund your retirement in a roth IRA. You have a lot of wood to chop on that front. Max out your 401k while you are at it. Do not pay off your mortgage principle, this is often a mistake as the interest is tax deductible which in itself is a tremendous asset. Get a fee based financial advisor and meet with him once a year.

The mortgage interest deduction isn't going to help him. Combined with his other deductions I bet it's still not enough to get near the latest std deduction of $12k for single filers. Hell it doesn't even help me anymore and I have a decent size note.
 

PhoenixM3

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Hello all, needing a bit of financial advice. following Ramseys baby steps, I saved an emergency fund of 12 months and payed off all my debt except my home. Owe 179k, worth about 225k according to my realtor friend. Not yet contributing to any IRAs or retirement accounts. Im 34, not married, no kids. Currently giving myself a 700 dollar a week salary, I am an auto technician at a local auto dealer and make flat rate Average about 1200 take home. Putting 500 away as an extra payment towards my principal of the home. My question is should I sell my 03 Cobra that is payed off to pay down my principal lower, or should I keep it and continue doing whay I am doing. Thanks in advanced

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Dude,

Keep the car. It sounds like you’re fairly disciplined.
 

jmsa540

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Hello all, needing a bit of financial advice. following Ramseys baby steps, I saved an emergency fund of 12 months and payed off all my debt except my home. Owe 179k, worth about 225k according to my realtor friend. Not yet contributing to any IRAs or retirement accounts. Im 34, not married, no kids. Currently giving myself a 700 dollar a week salary, I am an auto technician at a local auto dealer and make flat rate Average about 1200 take home. Putting 500 away as an extra payment towards my principal of the home. My question is should I sell my 03 Cobra that is payed off to pay down my principal lower, or should I keep it and continue doing whay I am doing. Thanks in advanced

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First...immediately open an ira.

Second, the house is your only debt?

Third, if you sell the cobra what will ulu drive?

You can pm me, i know a lil somethin about finances.

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Corbic

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Can I play?

Left my last company of 13 years. I have a 401k with them that's basically shitty.

Should I be cashing out and putting that in an RIA or rolling over or???
 

ford fanatic

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No offense intended, but you're not following Ramsey's baby steps. If you actually follow them, you'll be further ahead in a shorter amount of time.

Step 1: $1000 emergency fund DONE
Step 2: Debt snowball DONE (since you only owe on your house)
Step 3: Save 3-6 months expenses DONE, with at least 6 months extra
Step 4: Save 15% into a retirement account ***GET STARTED***
Step 5: Save for child's college. ***FUHGEDABOUDIT***
Step 6: Pay off house early

Keep the car, especially if it's your only one. Heck, keep it even if it's a second car. You don't owe a dime on it, and I know it's a blast to drive.

Start putting 15% into retirement immediately. If you don't have anything at work, max out a Roth each year (making up for 2018!) and check around for good mutual funds for the remainder of the 15%. The ones I have through Vanguard have earned over 9% annually for the lives of each.

Take six months of expenses from step 3 and refi your house on a 15-year fixed. That extra money is being wasted sitting in a low interest bearing account. That'll save you the PMI charge, a buttload of interest, and it probably won't affect your monthly payments since you're already putting more towards the principal each month.

By the time you're 55 you'll probably have close to $675,000 in a retirement account, and that was a simple interest calculator, not taking into account pay raises through the years and an increase in $$ to the account each pay period. Add that to the value of your paid-off house, and you'll technically be a millionaire.

Either way, you're killing it. Congrats! Keep the beast!
You beat me to it, been listening to Dave for a while now. We were on steps 4,5 and 6 before we even started following him.
 

Brutal Metal

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My Cobra sits in the garage, my 5.0 the driveway. I've been paying extra principal on my house for many years and I'll own it outright in a year. Never considered selling the Cobra to ease the burden of the house.
I went to the bank today to make a money market deposit and my usual teller says she can bump my interest rate to over 2% if I signed up for a no fee checking account. I already have one with another bank But there's a lot of $$$ in that account so I said "Hell Yeah". A couple years ago it was drawing .05%..
 

mc01svt

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my 2 cents.. take it or leave it

a year of savings in a deposit account is way too much. you are losing $$$ every single month due to inflation, money is supposed to flow, it will literally rot away to nothing sitting in a bank account. Inflation is about 1.9% and typical brick and mortar bank accounts pay like .01%.

PMI for life? That's nonsense, once you get to 80% LTV you should be able to get it removed entirely or just refinance with another lender if they are unwilling to play ball. PMI is money down the drain every month, it protects the lender but does nothing for you.

Also i would not be paying down $500/mo extra towards principal with a sub 4% apr. You would be better off opening a brokerage account and investing so that money so it can work for you overtime and continue compounding. A monkey could literally invest and make more than 4% per year. Heck ford stock is paying like 6% dividends right now.


if the cobra is paid off, id keep it unless you're going to use the funds as capital for investments or a business venture
 

Chosyn1

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love listening to Ramsey..more so the callers that are completely drowning in student loan/CC debt lol
-roth ira immediately
-keep cobra
-enjoy life
 

DaleM

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Wait, Dave is calling me for some advice.

OK Bozos, stop clowning around.
 

CompOrange04GT

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I wish I knew what half the shit in this thread meant..

I own a home and have no idea what PMI and all that shit means. I just know I have a mortgage..

401k.. I have one of those and I just throw in whatever they match.

Well.. I’m obviously doing it wrong lol
 

2000GTSTANG

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I wish I knew what half the shit in this thread meant..

I own a home and have no idea what PMI and all that shit means. I just know I have a mortgage..

401k.. I have one of those and I just throw in whatever they match.

Well.. I’m obviously doing it wrong lol

Probably should contribute more to the 401k unless you're also contributing to a roth IRA.
 

72MachOne99GT

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I wish I knew what half the shit in this thread meant..

I own a home and have no idea what PMI and all that shit means. I just know I have a mortgage..

401k.. I have one of those and I just throw in whatever they match.

Well.. I’m obviously doing it wrong lol

PMI is a fee added to your mortgage payments to “insure” the loan. Supposedly protects the entity that gave out the loan. It’s a crock. Once 20% of your loan is covered, it ought to be removed.

I wish my 401K was matched. Since it isn’t I just put in 5%, but I’m about to sit it and do 3% traditional, and 3% Roth 401k.

Wifes is all matched so she does 8 or 9% up to the max.

I’m just glad I have a pension, because I habe no idea if I’m saving enough.

edit: im no genius, but roth accounts (as far as I know) are post-tax contributions, but are NOT taxed when withdrawn... ideally after they’ve grown substantially throughout your life.
 

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