Now in the future when I've accumulated more wealth I will have my house insured at ~1.2-1.5x the value (don't forget homeowners insurance isn't just the house itself...the stuff in it should be included as well!), my car insurance policy will be lower but will have probably a million dollar umbrella policy over both the homeowners and car insurance, health insurance will be better quality since there will be kids in the future, etc.
The biggest problem I see when I talk to people is that they don't have a clue about any of this stuff. Or they think life insurance is supposed to be a lottery policy. They don't have a clue what their homeowner's insurance covers. They assume if they get in a car accident their insurance will just take care of everything. That's just not how it works.
This thread is as dumb as me posting in it. I choose to have kids early and suffered financially on a single income **** job pay, MY CHOICE. Stupid is just that, STUPID. You can't fix that, I'm glad finical advisors are there to help people, but Jesus guys, this isn't rocket science its common sense! Ya some people earn there way better, some make more money than others, and some just don't have a clue but man what is up with the Ivory tower attitude in this post. One poster says that they will be paying off 115k in college loans on 3 year, frig I don't earn that much in three years. I'm glad they do don't get me wrong but this the kinda thing in talking about. So when I here about huge fall back funds and multi hundred thousand payoffs, great good for you, but most of us screw up our financial situation and then have to come out the other side, I guess I just didn't realize it was such a huge revelation to have someone else yell you that instead of realizing it yourself. Some just don't earn it but we still try just as hard. So I guess what I'm saying is I just don't understand the worship of this guy when what he says is common say sense. Plus what l other poster said, most of these guys have already been bankrupt once, lots forget to tell you that. I wonder how many realize the same money they give is the same hard earned money these advisors are trying to get the people to save. Just seems dumb to have to sell people there own common sense. I guess he's a genius for thinking of it, and that's why I'm still grinding.
haha, he's pretty riled up at that scenario - but he's so right!
completely agree, and I fall into that category. I'm not sure what level of coverage my husband and I should be at for life/health insurance. We have both through our jobs, but I honestly don't know if they would be sufficient should something catastrophic happen. I feel good about our car/renter's coverage, but we're looking at buying a house next year. Whole lot of questions there. Want kids in the next few years. More questions there. Financial knowledge is just not something most people have a lot of, and I think that's a huge problem.
My main financial goal is for money not to be a stress. I had to buy a new furnace last year and it was so refreshing to not have to "rob Peter to pay Paul" if you will...I wrote a check and moved on.
I recognize I'm blessed to have a good job and so does my wife...but I'm not so far removed from paying for grad school books on a card and when they were paid off, starting over again as a new semester came around.
Money management is simple. Money in needs to exceed money out.
I think people just appreciate his delivery of the common sense knowledge. He tells you that it is common sense. He tells you that he hit bottom and went through bankruptcy and that it was one of the most difficult things he has ever been through at the start of his books.
Fyi, sorry about the terrible grammar, I'm not so hot about catching it while tapping on my phone.
My wife and I were raised in two entirely different situations and theories on money. We are very happy that we went through FPU last fall and are looking forward to being out of debt except for a house by the time we are 30 (could very well have it done by the time we are 27-28 but we will see). Dave does teach great things and sadly they are common sense but if you need common sense taught to you it's a reflection on you not the teacher.
There are some great tools and great lessons involved but imo what it comes down to is having a plan.
But that philosophy is the core. A good plan should tell the money where to go (planning for future expenses known and unknown, short, medium, long term, etc).
I guess what I meant is I've spoke to many folks who have more expense in their life than income. You know, 2 car payments, cell phone plan that is pricey, home/rent costs beyond means, dining out, etc...and the extra they float on a card and make min. payments, etc. that model does not work. People need to identify if they have a spending issue, income issue, or both.
In a budget, a "bill" can be a systematic investment. If you do saving/investing with what is left over, many times you find there is none left over. That's why people who get a raise from $40k to $60k usually are not better of if they had bad habits before, because they find new ways to spend that extra.
Not on a high horse here, just a huge fan on money management.
I took the Dave Ramsey class through my church and don't subscribe to all of his opinions but I think the best advice I got from it was about how much of your total income your mortgage should be, 25% BTW. At the time I was just out of college and had never owned a house before so it would have been pretty easy to make a few mistakes or miscalculations on how much a month a house really costs and get into a mortgage that made saving money difficult.
We'll never be able to afford kids and live the way we lived growing up and it is painful to know that.
If everyone did Dave Ramsey, then the economy would stagnate.