Post by phunluvin82 on Jan 10, 2013 10:47:16 GMT -5
I don't hate DR. I just think his brand of financial advice is for a specific niche...and MM is generally not that niche.
I agree with the PP that said it is for "the alcoholics of the financial world." I think his plan is intended for people who need a very clear cut, specific, step-by-step plan that is in black and white. He does not leave much grey area. Some people do not do well with grey area.
I understand and agree with the criticisms of his plan, but for certain types of people, following his plan presents a huge improvement over what they were doing, even with its downsides.
I think that DR is great for someone who doesn't know much about debt and finances and needs a place to start. But I think he advocates some ridiculous and impractical solutions (e.g., have a garage sale and sell everything you own!!! If you have a car payment, sell the car and buy a clunker!!!!) that don't work for everyone. Plus, I think sometimes you need to live a little within reason and his approach is too restrictive. Also, the tithing. Don't get me started...
And, to add on to what some others have said, his devotees are probably more annoying than he is.
I think that his way of breaking down things and making it seem like you can get control of your debt and finances is one of his best attributes. Most people that are very far into debt and do not have a budget did not get there by know lots about money. I think he is a great stepping stone to get people started on the right path and then most people, once they start getting ahead, automatically start branching out from his teachings.
I agree. His core plan doesn't work for us (we've been always good with money, no debt, sensible with credit, etc.) but I like his philosophies of living within your means.
1) I don't think that $1k in savings is enough for people who have maxed out their credit and don't have any more wiggle room if something bad were to happen.
2) I don't think his grocery budget recommendations are realistic. A while back I read that he recommended a $25/wk grocery budget. I spend more than that on in-season produce every week alone, and in-season is supposed to be cheaper.
3) I don't agree with his complete avoidance of credit. I like to charge all expenses and pay the balance in full every month to accumulate rewards, however, I realize a lot of people don't have the discipline to do so. Ditto sarajoy's points on low-interest debt and credit score.
Agree with this. I have read TMM and it's great for people who really need a jolt and a template laid out for them to get out of debt. I wouldn't be able to sleep at night with only $1k in my savings account. We got close to that when DH was unemployed last year, and I could not handle it. And I can't feed my children crap in the name of sticking to a ridiculously small grocery budget. And whether Dave Ramsey likes it or not, you have to have a credit history. My brother could not rent an apartment when he got out of college because he had no credit history whatsoever. He had to buy a mattress on credit just to build up enough to be approved for a lease. It's great in theory to pay cash for everything and not "need" credit history, but it's impractical in the real world.