What Has Gotten You Where You Are

[disneysteve]

Just my 0.02 cents.

I happen to think your opinion is worth more than 2 hundreths of a cent. Don't sell yourself short.

As for Dave Ramsey, I agree that his advice and his system works for a lot of people who are in serious financial trouble. As I've said in other threads, though, I have yet to find a personal finance "guru" who I agree with 100% of the time. If we followed all of DR's advice, our personal financial situation wouldn't be nearly as good as it actually is. His advice/system works for certain types of people in certain situations. My wife and I are not in those situations and never have been, so some of his advice really doesn't make sense for us and would actually make our situation worse.

For example, I think credit cards are a very valuable financial tool that can save you hundreds or thousands of dollars each year when used properly and responsibly. DR says, and I quote, "Responsible use of a credit card does not exist. There is NO positive side to credit card use." When someone makes such a firm blanket statement that is blatantly wrong, I think they lose some credibility. That doesn't mean other parts of his advice aren't valuable. It just means that this isn't someone who I personally would turn to for financial advice because he and I are just not on the same page.

[kork13]

First and foremost, I learned about good finances by watching my parents. I think the only financial advice I've ever been straight-up TOLD by my parents is "Never carry a balance on your credit cards. Pay it off in full EVERY month. If you know you can't do that, don't use a credit card to buy it." I purchase everything on credit cards (even if it's just $1 or $2), because I know I can pay it at the end of the month, and then I get the benefits of the credit card rewards.

Otherwise, my father is very frugal (borderline cheapwad), so I learned how to make careful money decisions from him, but then my mom taught me how to "value-shop", to get what you want, just know that what you're getting is the best value/quality/etc. for what you're paying.

Last, a friend of mine here at college taught me about investing and retirement, and since then I've made sure to start a retirement account (Roth maxed for '06-'08 so far), and also have a few other investments, just to get a feel for how it works.

Nothing too extravagant, but I've learned most of what I know/do from watching others, and learning what has gone well/poorly for them. I'm in college right now, and alot of my friends have enormous CC debt, and I only wonder HOW...

[LivingAlmostLarge]

100% agree about Steve saying that DR loses credibility about credit cards. But I think he sells investing for retirement short as well. 25% into 4 "growth" mutual funds? It's one size fits all and what if you are in your 40s and 50s? Still going to be in 100% mutual funds? And expecting 12% return on investment? I think his anti-debt stance is necessary for people who follow it however.

But what helped us get into decent, not good, but decent financial shape?

1. Parents - taught us about credit cards and debt. They weren't super frugal and neither are we. But they taught us to live within your means, save, and what are credit cards, how they should be used, and what it means to borrow.

2. Marrying someone with same values, not just financially but other areas as well. It's made our lives a little less stressful.

3. Choosing to delay kids. Not 100% certain about this decision, but I think it's going to be right because we needed to grow up more emotionally first. Our finances falling more into place is a bonus, but really I think that growing up emotionally will make it less likely we'll divorce and more capable of handling having children.

[sweeps]

Who decides whether someone is an expert, when it comes to personal finance?

Ramsey proudly states it on his own web site:

About Dave Ramsey
Dave Ramsey is a personal money management expert and best-selling author of The Total Money Makeover, Financial Peace and More Than Enough. Ramsey knows first-hand what financial peace means in his own life – living a true rags-to-riches-to-rags-to-riches story. By age twenty-six he had established a four-million-dollar real estate portfolio, only to lose it by age thirty. He has since rebuilt his financial life and now devotes himself full-time to helping ordinary people understand the forces behind their financial distress and how to set things right – financially, emotionally, and spiritually.

[Snave]

[QUOTE=maat55;159308]I have accually three defining moments. First was seeing my father indebted with credit cards by an exwife, which gave me a fear of credit cards at an early age.

When I satrted reading this line, I wasn't sure if the ending was going to say fear of credit cards OR fear of a wife!

[disneysteve]

When I satrted reading this line, I wasn't sure if the ending was going to say fear of credit cards OR fear of a wife!

Actually, fear of a wife wouldn't be so bad. Several of us have mentioned having a spouse who shares our views on money. So many couple get into trouble because a spender marries a saver hoping that the other will change and things will somehow work out and it just doesn't happen.

[jc3900]

Well, I havn't really leapt off the diving board yet as I am 17 but one thing that has had a major psychological impact on me so far is my mom and dad. My parents are in their 50's and havn't really saved anything for retirement. The only thing that is going to keep them floating is a LARGE inheritance thanks to my grandpa. I don't think they have ever had a budget their entire lives. My mom is the spender of the family and will do absolute rediculous things with money just to put a show on for others. My dad, who I am slightly ashamed of, lost his job about 10 years ago and never got a respectable job even though he carries a university of chicago mba. Basically he turned into mr. mom while getting paid handsomly working for my grandpa. I still remember being a kid and having my mom scream and yell at my dad that our family, which has 8 kids, for not having money. So all of that has made me really determined to go to school, get a good job, save, invest, give, and never have to yell with a spouse about money problems. Basically I want to be an excellent provider for whoever I marry and be an extremely good steward of my money so as to never have to even have money as a major point of conflict.

[pearlieq]

Actually, fear of a wife wouldn't be so bad. Several of us have mentioned having a spouse who shares our views on money. So many couple get into trouble because a spender marries a saver hoping that the other will change and things will somehow work out and it just doesn't happen.

That's a really big factor. One of the conculsions drawn by the researchers for The Millionaire Next Door was that choosing a spouse with responsible money habits was an integral part of anyone's financial success.

You can't keep the sheep in the barn if your spouse leaves the back door open.

[Ima saver]

I frew up very poor because my father died when I was young and he was the only bread winner!
Therefore, I started to work early and learned that I must save at least 10% of all I made, no matter how little it was.
I bought my first home at age 21 and paid it off at age 32. I learned how to invest in mutual funds by reading magazines. (We had no books on investing in our tiny library)
I think paying myself first has worked out great and I am debt free and could live many years on my savings. (Those that know me on here, know why I do have a car payment!

[feh]

My wife and I are in very good (some may say excellent) financial shape. The two reasons are:

1) I make a good salary (quite a bit more than the average American)
2) we've always lived well within our means and have saved the surplus since our mid-twenties

[JBinKC]

I am going to say if I had a spouse I would not be in the position where I am today.

I never made a good salary from my various jobs and most of my wealth was obtained from being super cheap and being able to spot a bargain and have the conviction of taking that "risk" with my savings.

[Ima saver]

Well my dh has a spouse. I know he has to work very hard for his money, so i am determined not to waste any of his money!! He credits me with our having so much in savings! He makes it, I save it!!

[Snave]

I am going to say if I had a spouse I would not be in the position where I am today.

I never made a good salary from my various jobs and most of my wealth was obtained from being super cheap and being able to spot a bargain and have the conviction of taking that "risk" with my savings.

I hear a lot of people throw the book the Millionaire Next Door around, so I will do a little of that. In the second book, The Millionaire Mind, it states that 92% of the millionaires they interviewed were married and 8 out of 10 said their spouse was important to extremely important in the reason they are where they are today.

[disneysteve]

I hear a lot of people throw the book the Millionaire Next Door around, so I will do a little of that. In the second book, The Millionaire Mind, it states that 92% of the millionaires they interviewed were married and 8 out of 10 said their spouse was important to extremely important in the reason they are where they are today.

I've been happily married for nearly 16 years and have a wonderful daughter, but from a strictly financial standpoing, I'd be far better off if I had stayed single. It is much more expensive to support a family than to support a single person. There's just no way around that.

If single, I could have a smaller home, one car, lower insurance costs, lower utilities, lower medical expenses, lower vacation costs, lower food costs lower entertainment costs, lower everything because I'd only be paying for one person instead of paying for 2 or 3. Getting married and having a family is not a frugal thing to do.

[JBinKC]

My top earning year from a job excluding capital gains has been 38K yet I have retired in 2006 at age 44 (and I am not on disability). I don't think I would have accomplished that feat with a nonworking spouse and children.