Dave Ramsey's ideas - comments? discussion?

[PaKettle]

I was just looking at Ramsey's site. He recommends term life insurance and so I was looking at that through the link he has which leads you to:

http://www.zanderins.com/term/termlife.aspx

According to the insurance calculator at this Ramsey-recommended site, I should have 550,000 of life insurance for just my wife in case of my death, and that will cost me $150-285/month.
Is this prudent spending for someone trying to live debt free?
Wouldn't this money be better put into buying real estate or some other investment?

Also, I clicked another recommended link on his site. He is recommending an energy supplement which is bee pollen. The bee pollen is $99. I think that is a 3 months supply. I couldn't find enough details on it but I am pretty sure I can buy the same bee pollen - similar strength and all - in Chinatown for about $27.

Ya think Dave really cares about the recommendations he's making or does he just care about making a buck for himself?

[FreshLikeADaisy]

Anybody look up Dave Ramsey's bk on PACER yet? Depending on the court, it could be over 10 years old and still show up. I just looked up a friend's bk in Virginia that was filed in 1997.

I don't know anything about him, but the info in his materials should be enough to hint at what year and what part of the country he filed in, if anyone's curious about whether he really put his money where his mouth is.

[FreshLikeADaisy]

According to the insurance calculator at this Ramsey-recommended site, I should have 550,000 of life insurance for just my wife in case of my death, and that will cost me $150-285/month.
Is this prudent spending for someone trying to live debt free?
Wouldn't this money be better put into buying real estate or some other investment?

Pa, I for one can't see buying life insurance that totals more than that persons debts *plus* funeral costs, no matter how young or beloved. You're absolutely right, it doesn't make sense. But if he is providing a link to an insurer, it may very well make sense for HIM that you buy it...

[$$only4ever]

I don't agree with everything that Dave Ramsey says but I strongly agree with 2 points.

1) No one needs credit. Credit should used only for purchasing a automobile or a house. Our parents did not have credit cards and they all survived and they owned vehicles and a house. I will never, never have another credit card again. In some ways being in a Chapter 13 has been positive. I have learned the difference between needing something or wanting something. and if I really want something then I save for it.

2) I do agree with the part about saving money that would cover 3-6 months expenses. However, that goal is harder to obtain especially while I am in a Chapter 13. But now every month, I have a specific amount in my budget that is for savings and so far I have stuck with it.

[PaKettle]

I don't agree with everything that Dave Ramsey says but I strongly agree with 2 points.

1) No one needs credit. Credit should used only for purchasing a automobile or a house. Our parents did not have credit cards and they all survived and they owned vehicles and a house. I will never, never have another credit card again. In some ways being in a Chapter 13 has been positive. I have learned the difference between needing something or wanting something. and if I really want something then I save for it.

2) I do agree with the part about saving money that would cover 3-6 months expenses. However, that goal is harder to obtain especially while I am in a Chapter 13. But now every month, I have a specific amount in my budget that is for savings and so far I have stuck with it.

I agree with you. Especially I agree that having 3-6 months - or more - in an emergency fund is very important, and something I will strive for.

As for credit, I agree that no one NEEDS credit. But no one NEEDS a tv, or an air conditioner, or a microwave, dvd player, cell phone, or many other "new" developments of our society, but most of us have them.

I just think that having A credit card with a thousand or two in credit available is just a common sense emergency back up. You don't have to, and should not use it, you should just have it. It's also good to establish credit if you want to buy a house or land some day.

I know Ramsey disagrees and you might too, but that's okay - to each his own. But I know I will feel more comfortable having a back up credit card for emergencies, even if I also have my 6 months expenses in an emergency fund.

For one thing, I travel a lot, (well, I used to, and hope to again some day when we get solidly back on our feet), and sometimes one's debit card might get lost or stolen or that particular one might not work in a foreign atm . In that case it's good to have a back up (for example if your debit card is Visa, I'd recommend having a MasterCard back up credit card). Of course you could also have a MasterCard back up debit card but then you'd have to open another bank account and put money in that.

Also, if you rent a car in some foreign lands they want like $2000 as a deposit, in case you completely wreck it (yes, even with insurance; I know it's crazy, but...). So having a credit card is good for that. Also, then, if you use the credit card for the rental, and they try to rip you off, you can get the credit card to fight them as you dispute the charge.

So there ARE good reasons to have and use a credit card in my opinion. You (I) just have to make sure you (I) don't allow it to get out of hand. My personal Alarm Mode will be if I have to use it for some emergency and it gets up to $1000; then I'll cut back on anything and everything to get it back to zero in as short a time as possible. I never want to have "lingering debt" again!

p.s. While I'm not sure this is a good reason to use credit cards, really, one other advantage is that with some cards you get double time of the warranty on things. So if you buy, say, a new tv, you can get 2 years warranty instead of the 1 year warranty that comes with it. IF you use the credit card instead of cash, then pay the card immediately with cash, why would this be bad? I suppose some will say it is "risky" in that you might not remember to pay it or just put it off, and then land yourself back in debt. But if you are diligent and disciplined enough to use credit only to buy things then pay them off at the end of the month it not only builds your credit rating but also you can get perks like extra warranties, theft and lemon guarantees, etc.. Again, I'm not necessarily recommending this, but some people do, and I do know some people who are disciplined enough to pay their card off each month. I'm not sure I"m one of them so I'll probably avoid this last idea, of using a credit card for purchases.