What's your financial story?

[Turbo6]

There is nothing wrong with credit cards.......It's the user who needs self discipline to not over spend and make sure you do not let the interest stack up.

I never heard of Dave Ramsey but just looked up his plan and it's pretty basic. The only part I do not believe in is paying your home off early. With Money being so cheap to borrow on housing (2%-4%) you are much better off taking any excess income any investing it in something that makes 7%-10% return on investment (401k, rental houses, stocks, etc)

It amazes me when people are trying to pay off tax deductible asset to save 4% annualized versus making 8% in something else..........It's like losing 4% on your money.

[Tony Pic]

There is nothing wrong with credit cards.......It's the user who needs self discipline to not over spend and make sure you do not let the interest stack up.

I never heard of Dave Ramsey but just looked up his plan and it's pretty basic. The only part I do not believe in is paying your home off early. With Money being so cheap to borrow on housing (2%-4%) you are much better off taking any excess income any investing it in something that makes 7%-10% return on investment (401k, rental houses, stocks, etc)

It amazes me when people are trying to pay off tax deductible asset to save 4% annualized versus making 8% in something else..........It's like losing 4% on your money.

That basically is true. Unless you have plans for that paid off mortgage to use the equity and borrow to buy something else to write off even bigger

[BitBackShot]

There is nothing wrong with credit cards.......It's the user who needs self discipline to not over spend and make sure you do not let the interest stack up.

I never heard of Dave Ramsey but just looked up his plan and it's pretty basic. The only part I do not believe in is paying your home off early. With Money being so cheap to borrow on housing (2%-4%) you are much better off taking any excess income any investing it in something that makes 7%-10% return on investment (401k, rental houses, stocks, etc)

It amazes me when people are trying to pay off tax deductible asset to save 4% annualized versus making 8% in something else..........It's like losing 4% on your money.

There is bankruptcy protection in paying it off. Your primary homestead survives creditor claims (except mortgages) if you ever go bust. There's definitely something to knowing that you'll have that no matter what.

[AgTag23]

Owned credit cards my whole adult life. Established credit early on. Worked 35 years in heavy electrical construction, put 10% each week of those 35 years into my 401K( taking a beating lately). Have one annuity I set up and a Roth IRA. Waiting until May to put my retirement papers in, which will bring more income in the form of a pension. Never let the credit cards get out of hand. Almost always paid them off when statement came. Bought a home I could afford on a 35 hour work week. Wife had a minor job for pocket money and keep busy. Her income never mattered to household. Own 2 Properties outright in two states, and the third. I have 100k left on mortgage. Raised 3 boys, one through college and grad school. All productive members of society, adults now. All over 23. The wife and I are in good shape for retirement.
Now only if that 401K will get the heck back up where it was from a few weeks ago

Well very done sir! Great financial success story right here.

On the 401 comment, I think everyone feels your pain. I am hopeful the market will pick back up come Q1

[hooligan]

My wife is all about Dave Ramsey and it’s been good for us. Our finances were never bad but it’s been really nice that when curveballs have come we have been in a good place. I think we’re on step 5 or 6? I don’t know what they are she just gets all excited about having a “fully funded emergency fund” and that we’ll be putting 20% down on our next house to avoid pmi

[Jon B]

I grew up poor. Real poor. Government assistance and Dad seldom kept a job. I graduated High School and got a decent paying job. Wife and I got married at 19 and bought our first home 4 months later. I worked for 8 years before going back to school. Got another decent paying job. After a year or two I had some cash in the bank and wanted to invest it. I decided to pay off my pick up truck. Figured I would piggy back the old truck payment on wife's car to pay it off quicker. Did this and continued. About the time we paid off the car I read the total money make over. I realized I was basically following the plan but I was concentrating on high interest first versus smallest balance. We started to attack every balance and managed to pay our house off (double wide) 9 years early. We were debt free for several months and then a job change cause us to need another car. So we bought one. Payed $1000 payments until it was ours. Saved 25k and we're able to pay cash for our land and then build our dream home. I bought another car a few years later and quickly paid it off. We now have three cars that are free and clear. We only owe 134k on our home. And refinanced the 30 year into a 15 year note. We are 1.5 years into that. We were just blessed to become parents and have some cash in the bank. I am pretty comfortable. I will say the Dave Ramsey plan works. We were never in terrible shape. But that made our freedom easier and quicker to obtain. I think that it has to be a mindset change. It was to us. It is possible and it works.

[SwampBuck]

It's good to hear people actually want to be debt free, I've been around people all my life that just seem to think that being swamped with debt is just the way things are.

I just cant be happy with that.

[trophy8]

We owe on the house and 2 vehicles. I’m only 29. 6 figures in 401k. Plenty in the bank. I just bought the second vehicle. Plan to pay off within a couple years. I’m fairly comfortable where we sit. 6-8 months worth of living money with no income in the bank at least. Lots of toys and bullion to move if I needed to. All debt isn’t bad debt. And I don’t work hard to live in a junky house and drive junky vehicles. I don’t agree with Dave Ramsey. Live like you won’t see tomorrow but save enough for lots of tomorrows is my outlook. Spend wisely but enjoy life.

I paid cash for my last truck. But then financed 10k at 1.65%. If you can’t make more interest than that on 10k you’re doing something wrong. There’s good a bad debt. We got a credit card a year ago. No balance. I’ve run a lot through it. Got lots of rewards. That’s the only reason we did it.

[TreyRo]

We have debt but nothing high interest and all attached to something that can be liquidated if the need arose. Multiple college funds for the kids and a decent rainy day savings, marginal 401k contributions.

We spent quite a this year so this coming year is going to be more focused on savings and long term.

[Throwin Darts]

I got a decent job out of college and read a book called Automatic Millionaire soon after and put that into practice. It's all about making your savings automatic through savings withdrawls that you set up to occur in my case on the 1st and the 15th of each month. It takes the human emotion out of the savings game and it puts you in a "pay yourself first" position vs. the typical "I'll save if there's any left over after bills".

I started maxing out my 401k each year right at the beginning of my career. That turned out to be one of the best decisions I ever made. I just went on one day and put the percentage to max it out and went full on with it with no looking back.

Then I got into the real estate game. My strategy was very anti Dave Ramsey and I borrowed as much as I could get my hands on. I built and sold 9 houses and got out while the getting was good.

At 35 I rolled my real estate gains into some hunting land and bought 640 acres which I've enjoyed the heck out of.

I don't carry credit card balances but every dollar I spend goes on a credit card that is paid off in full every paycheck, not when the statement comes. I don't mess with car loans. I'll only put debt on an appreciating asset. And the last debt I'll ever pay off early is a tax deductible home mortgage. It works for me but may not for all.

I've been blessed a ton and am thankful. There were some big risks but some big rewards followed.

[AntlerCollector]

All of y'all who haven't had credit cards in many years, and pay cash for vehicles, how do you keep a good credit rating? What credit history would you have?


I live debt free. My only monthly expenses are my truck, vehicle, and home insurance. Other than that I have utility bills, and property taxes. Home is paid for.

I keep a Cabelas credit card, and use it for most purchases. I pay it in full every month, and enjoy the perks from it.

[Turbo6]

We owe on the house and 2 vehicles. I’m only 29. 6 figures in 401k. Plenty in the bank. I just bought the second vehicle. Plan to pay off within a couple years. I’m fairly comfortable where we sit. 6-8 months worth of living money with no income in the bank at least. Lots of toys and bullion to move if I needed to. All debt isn’t bad debt. And I don’t work hard to live in a junky house and drive junky vehicles. I don’t agree with Dave Ramsey. Live like you won’t see tomorrow but save enough for lots of tomorrows is my outlook. Spend wisely but enjoy life.

I paid cash for my last truck. But then financed 10k at 1.65%. If you can’t make more interest than that on 10k you’re doing something wrong. There’s good a bad debt. We got a credit card a year ago. No balance. I’ve run a lot through it. Got lots of rewards. That’s the only reason we did it.

This guy gets it

[texan4ut]

I only have a house payment, and utilities now. Made my last truck payment 12/8/18. CC can be your friend if used properly. I basically use their money 30 days free then pay the full amount back that way you pay no interest. By doing this you will build good credit. If you don't pay back the full balance then you you can get in trouble.

[PondPopper]

Credit cards are not the problem. Its the lack of financial discipline that is the problem. We use credit cards (no fee and ones that earn dividends) for virtually everything, and just as we clip coupons and take advantage of senior discounts where available, we utilize the credit cards for their dividend earnings. However, we always pay them off each month and have the discipline not to spend what we are not prepared to pay off. So, just as firearms are tools, credit cards are tools also that can be either used responsibly or abused in the wrong hands.

A very, very small percentage of people that use credit cards actually have the money to pay them off at the end of the month.. Yes they are a huge problem because they are to easy for anyone to get..
1 trillion in debt should be proof enough...

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=2ahUKEwieouKrzLHfAhUjyoMKHb4WAXMQFjABegQIBRAF&url=https%3A%2F%2Fwww.cnbc.com%2F2018%2F01%2F23%2Fcredit-card-debt-hits-record-high.html&usg=AOvVaw38bLZCucsjglJJaawStLaF

[PondPopper]

I grew up poor. Real poor. Government assistance and Dad seldom kept a job. I graduated High School and got a decent paying job. Wife and I got married at 19 and bought our first home 4 months later. I worked for 8 years before going back to school. Got another decent paying job. After a year or two I had some cash in the bank and wanted to invest it. I decided to pay off my pick up truck. Figured I would piggy back the old truck payment on wife's car to pay it off quicker. Did this and continued. About the time we paid off the car I read the total money make over. I realized I was basically following the plan but I was concentrating on high interest first versus smallest balance. We started to attack every balance and managed to pay our house off (double wide) 9 years early. We were debt free for several months and then a job change cause us to need another car. So we bought one. Payed $1000 payments until it was ours. Saved 25k and we're able to pay cash for our land and then build our dream home. I bought another car a few years later and quickly paid it off. We now have three cars that are free and clear. We only owe 134k on our home. And refinanced the 30 year into a 15 year note. We are 1.5 years into that. We were just blessed to become parents and have some cash in the bank. I am pretty comfortable. I will say the Dave Ramsey plan works. We were never in terrible shape. But that made our freedom easier and quicker to obtain. I think that it has to be a mindset change. It was to us. It is possible and it works.

Good job!!!!