Financial Peace University

Discussion in 'Homesteading Questions' started by Kirk, Jan 21, 2004.

  1. Kirk

    Kirk Well-Known Member

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    Just wondering if anyone else on here has gone through Dave Ramsey's Financial Peace University? The wife and I are just starting and would love to hear your success or failure stories as motivation for us.
    It seems like a simple straight forward get rich slow plan which will benifit us immensly if we can stick to it.
    His website (which I'm not affiliated with) is www.daveramsey.com
    Kirk
     
  2. clovis

    clovis Well-Known Member

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    Heven't been to FPU, but would love to go. I love Dave Ramsey's show. Am out of debt now because of his advice, wife and I are in great financial shape because we followed his steps.
    Can you tell us a little more about FPU? Where are you taking the course?
    BTW, you can't get Dave on the air in central Indiana, unless you can get an AM station out of Louisville, which has alot of static.
     

  3. Kirk

    Kirk Well-Known Member

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    Clovis,
    Congrats on being debt free!!!!!!
    I am taking the class at our church. the cost is $85 dollars for one person or a couple. Thirteen weeks long about 2 hours per week most of it is watching the video and then Q&A with group leader. Some homework, This week is a basic zero based budget for next month. The money gets you the course book, an envelope system, 8 cassette tapes (which are the audio tracks from the videos), Dave Ramseys book "Financial Peace Revisited" and a cd-rom with a finacial calculator and printable budget forms. You also can use the course book to attend the class anywhere it is given if you need a refresher.
    We dont get his radio show here either but I believe it is available on the web. I have listened to his show several times while traveling and really enjoy it.
    The financial peace university program is very much what he espouses on his radio show. A simple methodical plan to have an emergency fund, get out of debt and build wealth.
    Last night using the financial calculator and looking at the debt snowball we figured that without paying anything more than we are paying right now we can have everything but the mortage paid in 19 months ( yes we're in debt up to our eyeballs) and the mortgage finished in about 8 years. For some reason this sounds more appealing than never paying off our debts and paying 29 more years on the mortgage.
    Kirk
     
  4. mongohardbottle

    mongohardbottle Member

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    I have been lisitening to him for about two months. I think his ideas are great. I am in southern indiana and I get him on 1250 am at 2:00. I do not yet have his books but I plan to get them and start. I have heard enough about his baby steps that I think I could do it with out the mooks but I still want them

    We are in good shape right now no debt but the house but we have no reserve funds, savings, or life insurance, which I doubt if I can get because of medical problems...

    In two words...DAVE'S GREAT
     
  5. leland

    leland Member

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    Congrats to everyone who is trying to better manage finances! I wish everyone great success. I am interested as well in these materials based on your praises.
    One question however, we are in sales, thus our "income" is unknown from month to month. Would this program and/or worksheets be a benefit to us?
    Thanks,
    Lee
     
  6. blhmabbott

    blhmabbott We're gettin' there!

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    My wife and I are planning to take this course at our church. I know a few people who have taken this course and are now almost debt free and loving it!
    So my DW and I agreed that if we ever want to be able to enjoy our children and eventual grandchildren we need to get off this living on credit lifestyle that we Americans are so accustomed to. Iam anxious to get started with it!
    Glad to here that others feel the same way as we do.... but I am not sure that it is a get rich scheme just learning to manage your finances better and plan ahead.
    I do know that if you give God his 10% first He will bless you and take care of all your needs. This comes from experienceing His bleesings after tithing regularly.
    And I feel that this is the first true step to financial peace the rest is proper money manangment.
    But this is just my 2 cents worth.
    And don't take my word on this read your bible.....refer to Malachi chapter3 verses 8-10
    God said to test Him on this and we did and have recieved many blessings because of this.
    Brett
     
  7. clovis

    clovis Well-Known Member

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    Leland,
    I too am in sales and own a small business. I know what it means to make a bundle this week and nothing for the next two weeks.
    I haven't taken the course, but have used Dave Ramsey's advice every step of the way. His information is especially important to folks like us.
    I never really had a budget until I listened to his advice. I knew what the monthly needs were, and paid them as they came in. The budget helps tremendously, because I know where I stand all of the time.
    Dave also advises on an emergency fund, which has helped cash flow the business and the sales that I am in. The emergency fund has been a tremendous asset in emergencies, cash flow,etc. It has saved us alot of grief and agony, and has been a great asset to work with. Having this extra cash has allowed us to purchase things on sale at opportune times, saving us extra money. It has helped understand where we stand financially at every moment of the month.
    Please believe me that Dave Ramsey's programs work!!!!!
    I am debt free. My wife is nearly debt free (auto loan that is nearly paid off).
    Both of us had been plagued with debt, and let me tell you, we sleep better and live better without debt.
    We just introduced Dave's Total Money Make Over CD set to a family member who has a mountain of debt. They have $100,000 in debt that they have incurred and make $55,000 a year. They are less than 2 years from retirement age. A scarey situation, but Dave's plan will work in three years, if they try.
     
  8. Kirk

    Kirk Well-Known Member

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    Leland,
    The course offers budgets for those on commision type incomes also. In my opinion have control of your money is even more important if you dont when its coming or how much it will be.
    Mongohardbottle,
    I agree you could probably do this without the books his ideas are simple its more about disciple than it is about numbers. If you like his talk show you will probably like his writing style also.

    The Financial Peace University also offers one of the easiest to understand guarantees I have ever seen. It is "Our Guarantee to you: If you do it, it works! If you don't do it, it won't work! If you will work the program, you won't want your money back. If you don't work the program, you don't get your money back."
    Kirk
     
  9. How awesome to see more Dave folks out there! :)

    If you can make it to FPU, I'd say definitely go. Everyone I know who has says it's the best money they ever spent, especially if one partner wasn't quite on the wagon yet.

    There is a yahoo group that works on Dave principles that is helpful too--

    http://groups.yahoo.com/group/FinancialBootCamp/

    Tracy
     
  10. SueD

    SueD Well-Known Member

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    Thanks for all the input and info, guys - I'm always looking at new and interesting info on these topics. And congratulations & prayers to those working so hard to reduce debt and live well at the same time!!!

    Something you might want to consider looking at (no - I don't work for, sell for or in any way affiliate with them!!!) is the Budget Stretcher site...
    They have hundreds of articles, links and such, free printable budgets, links to others, and I know somewhere on there is a 'snowballing caluculator' form. I've used it.... You fill it out yourself, but it works. If we can stick to the budget, we will be out of debt at the latest by December 1!!! (Too embarrassed to tell how much, though, lol!)

    There are zillions of places to get this info free - but you don't get materials to take home, or the one-on-one... I would LOVE to take the course....

    Here's the link for the site - hope it posts as one (completely computer inept)

    Butget Stretcher


    SueD
     
  11. Don't put too much faith in someone that has filled bankrupsy (2) times.
    Check it out if you don't believe it!
     
  12. Kirk

    Kirk Well-Known Member

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    Dave is very up front about his bankrupcies. I guess I shouldnt take skiing lessons from someone who has fallen down while skiing based on that philosophy.
    Kirk
     
  13. I am also in S Indiana and I get his show on 97 am at 2:00 and then on 94.7 FM at 4:00

    You can get Financial Peace book at library along with several more of his. I am working his plan and it is wonderful! Good luck, you can do it!
    Betty
     
  14. RAC

    RAC Guest

    "So my DW and I agreed that if we ever want to be able to enjoy our children and eventual grandchildren we need to get off this living on credit lifestyle that we Americans are so accustomed to."

    There is good credit and bad credit. Many do not know how to use credit wisely.

    A loan to buy property, or capital equipment for business, both of which can make you money, is an example of good credit. Loans for personal cars (that you cannot write off as a business deduction) that lose value the minute you drive them off the lot, or for the "stuff" that many people fill their lives with is bad.

    Using a credit card that you pay off every month to buy groceries that you buy anyway because you hate dragging a checkbook around is good, you can get all sorts of rewards, and, let's face it, most places do NOT give cash discounts anymore--you pay the same price regardless. Where you get in trouble is when you don't pay it off every month.

    I checked out the Ramsey website, and was wondering what the special attraction is. I notice several of you mentioning that you take the classes at your churches--is that the important thing, that it is religion-based in some way? I didn't notice anything that he says that was significantly different from what many other financial advice types say, so that's why I ask.

    The bankruptcies mentioned are interesting. One, maybe, I can see. Two, no. The analogy to falling down while learning to ski is not quite accurate. Bankruptcy is more akin to crashing into a tree. ;-)

    I like the Robert Kiyosaki (Rich Dad, Poor Dad) books. They are very quick reads, and many of them are probably at your local library (ignore some of the mean things he says about his real (poor) Dad). I think one of the biggest eye-openers is how he describes even a paid-off house as always being a liability, because you are forever paying taxes (and maintaining it, etc.) along with utilities, and so forth. In other words, while it does have some benefits, it is still a big chunk of money sitting around doing nothing, until you sell the house that has hopefully (though not always) appreciated in value. In Clovis' thread about re-financing the car loan, a good point was made about using a home equity loan since the rates are very good right now, and the loan now becomes deductible, when it wasn't before.

    Just something to think about.
     
  15. pcwerk

    pcwerk Well-Known Member Supporter

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    Hi all,
    I recommend the book, "Your Money or Your Life" by Joe Dominguez
    and Vicki Robin. It is sound advice, but takes some effort to work
    through. I am going to reread it soon, since staying debt free is
    always a constant effort. Of course, I am saving for a homestead!
    Stuck in Houston,
    James
     
  16. clovis

    clovis Well-Known Member

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    RAC,
    Dave's program really is good. It might not be for everyone, but for the most part, I would say that his programs apply to about 80% of the population.
    Might consider tuning in on the radio or internet broadcast sometime to hear what he has to say.
    The basis of Dave's philosophy is that credit is bad, especially credit card debt. He offers a step by step, easy as pie formula for paying off credit card debt. There is no rocket science involved, no smoke and mirrors scheme.
    I too had credit card debt. I knew it was bad, but didn't know how to get it paid off. Dave's plan, which he gives for free, says to pay the smallest balance first, get it paid off, then attack the next smallest balance.
    It is basically just common sense advice, but is very helpful to someone to doesn't know where to turn or where to begin their debt reduction.
    He also offers advice about budgeting,saving and retirement saving.
    BTW, I think that Dave's two bankruptcies give him credibility. My admitting these two blunders, he says in effect, "I was a fool with money at one time".
    The fact that Dave is a Christian is a bonus for me, but his sage advice would be great even if he wasn't.
    Tune in sometime. I think he will change your mind about money and debt.
     
  17. RAC

    RAC Guest

    Thanks, Clovis. I hadn't seen anything on his site that wasn't in say, The Tightwad Gazette, or The Dollar Stretcher, so that's why I was wondering.

    Just as saving can build wealth, the proper kind of debt can build wealth also. What about buying a house that you and you family live in, but that also has a separate MIL suite, or you have a spare bedroom/bath that you could rent out? Depending upon how good a deal/interest rate you got on the property in the first place, and how much you could rent the bedroom/suite for, your renter could be making your entire payment (or a good portion of it) for you. So this particular debt could be a good thing.

    Debt in and of itself is not bad or good--school bonds and such are long-term debts, even good old US Savings Bonds are debt obligations. The government securities that Your Money or Your Life talks about are debts, you're just at the collecting end. It is all in how you manage debt. Some people are risk-averse, and for good reason. If you (in general, referring to anyone) don't know what you're doing, stay debt-free. But I kind of cringe when I see people referring to something like debt as "evil", per se, because debt is neutral at best.
     
  18. Amy Jo

    Amy Jo Well-Known Member

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    What i like about Dave Ramsey is the simplicity of the advice given... the step by step system to get out from under the thumb of your debt and provide for your family in an emergency. I also like that just from listening to his show my daughter (age 20) is teaching my new son in law how to get what they want without paying interest on it. Mr. Ramsey has renewed the value of "saving" in a society of instant gratification addicts.

    Plus... I can get his advice for free every day on the radio without buying a thing. And for MOST people... debt hasn't done them any good... just made everything they purchased more expensive and everyone has been trapped by the payments usually after the item purchased was long gone.

    Of course, house debt is usually a necessary pain in the butt... but paying it off over 30 years is ridiculous, when you realize you paid for that house 3 times over. When you realize the average household is paying huge interest on balances in excess of $6000 and many in the 10's of thousands on credit card debt... well, it doesn't hurt them at all to be VERY wary of debt and their spending habits.
     
  19. Jane in southwest WI

    Jane in southwest WI Well-Known Member

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    There is a reason, and of course this is just my opinon, why using credit is bad now. Many people believe that this country is economic peril because of the huge budget deficit, corporate debt, consumer debt, the falling dollar, etc.

    If there were to be an economic crisis, I would want to have my home paid for, have no other debt, and not have all my money tied up in IRAs, 401Ks, bonds, or even dollars for that matter. Sorry, I just don't have blind faith in either the financial system or in our government.
     
  20. june02bug

    june02bug Well-Known Member

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    We have used a similar type plan of attack on our debt but I started with the highest interest rate and went down. We now have less than half to go after about 2 years. The other key is once you pay off one apply that payment to the next until they are all gone.