Dave Reads Seething Pit of Class Resentment
Here is a link to the article Dave read on Monday January 16th (at the bottom half of the 2nd hour). Here is a quote from Dave’s segment that may get some people riled up, and reading one sentence in a blogpost may cause you to take it out of context, but it’s a pretty potent statement:
“Envy is a sin, and the politics of envy being pushed by both parties right now and by the news media relentlessly are teaching you to be envious are spreading sin.”
Click on the picture to read “It’s Official: Wealth Gap Has Turned America Into A Seething Class Of Resentment“
Dave Disputes Debt Management Psychology Hurts Consumers
An article written by Cynthia Cryder, an assistant professor in my hometown of St. Louis, stated that it is undisputed that the best way to tackle debt is to pay down the loan or credit card with the highest interest rate first.
Dave disagreed
On 1/10/12 (half way through the 1st hour) Dave verbally disputes this claim so it isn’t undisputed. But you didn’t need a post from me to tell you that.
I have to disagree with Dave (What!?)
The study is correct and a majority of the statements made in the article are also correct. It can be proven mathematically that paying off a higher-interest balance loan will pay down a balance faster than tackling a low-interest rate account. Example: If you have a $1,000 credit card at 3%, a $4,000 student loan at 4%, and a $15,000 car loan at 10% then paying down the car would reduce the debt faster than making only minimum payments in order to tackle the credit card first.
But this isn’t about math
The problem with this article, and what the statements made by the researchers imply, is that paying down debt has little to do with interest rate. A dozen accounts with a 0% interest rate is still debt. The problem with debt reduction plans that tell you to pay off the higher interest rate first is that you don’t get the instant gratification that you got when you put the debt on the stupid credit card in the first place. Without the “quick win” you lose motivation and quit. Then you still have the debt and a hopeless attitude.
The way humans pay off debt
Math doesn’t pay off debt, humans do. The way to pay OFF debt is to get mad, work extra, spend less, and send everything you can to debt reduction. Reduce it so much that it goes away fast! Experiencing the results of paying off a debt quickly will keep you energized and psyched to keep going, regardless of interest rate!
Make all your accounts 0%
“I wish I had 0% interest rates” you say? You can. Pay off all your debts, smallest balance to largest for the quick wins and you won’t be paying interest. Put money into savings and investments that earn you interest instead!
Those who understand (compound) interest are destined to collect it. Those who don’t are doomed to pay it.
Dumbest Thing Financed
On Monday January 9th (1st segment of the 2nd hour) Elizabeth wrote Dave about her day at the gym.
“I was at the gym today and overheard 2 women talking about Christmas. One woman
proudly told her friend that she bought her daughter a cat for Christmas. The best part was when she said “I put it on a payment plan, it’s only $19.95 a month.”
This prompted Dave to ask listeners to jump in with the “Dumbest thing you ever
financed.” Instantly, Twitter followers sent in their responses.
Some of the best responses (including one I submitted)
Cigarettes. I used to buy them on a credit card- A tax bill
- RCI timeshare
- Lotto tickets
- A waterbed mattress in 1987
- I got a loan to finance my stock market trading idea
- Bar tabs. Still paying them years later
- My lasik eye surgery. I kept wondering how they would repo them if I didn’t pay
- A 1984 Macintosh computer with all the extras. Over $3,000
- A cash advance to a Nigeria Prince who really needed my help
- We financed a fitness machine in January 2003. It was a great clothes hanger
- My ex-wife and I once financed $1,000 worth of Mary Kay cosmetics for the garage
- I used a student loan to buy a new hunting rifle. Is there something wrong with that?
What was the dumbest thing you ever financed?
We’ve all done stupid things with money. It’s hard to spend every penny just right, but making a bad financial decision it isn’t the end of your chances for a taking vacations or saving for retirement. However, continuing to make poor financial decisions will.
Want to do better with your money? This blog brought to you by Steve Stewart, the only Dave Ramsey Trained Coach and Certified FPU Trainer who has been featured in a segment on the Dave Ramsey Show. Let me help you be the person you need to be: A strong provider for your family and a wise spender with the ability to give like no one else.
Dave Reads: Americans bought more cars and trucks last year
Dave read an article on 1/5/12 (right off the bat in the first segment of the 1st hour, he must have been charged up by it). The topic: Americans bought more cars and trucks last year. The article, released by the Associated Press, can be found in a number of places including Bloomberg Businessweek.
Dave’s thoughts on buying cars
- Don’t buy a brand new car unless you can pay cash for it (no loans, no leases)
- You have a net worth of more than $1,000,000
- The total value of your cars is no more than half your annual income
Name your Hooptie
He asked listeners who bought hoopties to email or Tweet the nicknames they gave their cars. Here is a list of a couple:
- The “and am” because it was missing the “Gr” in the front
- “Betsy”, a 92 Honda Accord the listener’s wife called “The Other Woman”
- The “Silver Streak”, a primer-gray Volvo
- “Doris the Taurus”
- “The Gold Goober”
- “The Flying Blue Monkey”
- “Patches”
- “The Sweater”, a little MR2 for a driver who was 6’2″
- Dave’s daughter Denise’s car’s name? “Waldo” because she would constantly forget where she parked it and say “Where’s Waldo”
What happened next
What happened in the next segment was awesome. A couple who makes more than $300,000 a year, $500,000 in the banks, and two cars (one with a car payment) wanted Dave’s opinion on buying a new $160,000 Lamborghini. What do you think Dave’s answer was considering they have the money and a great income?
Fiscally Responsible Birthday Fun
Birthday wishes
Today is my birthday. I continue to get birthday wishes from friends on Facebook along with notes like “have a happy, productive and profitable year!” (thanks Michael TechTalk Kastler) or “Eat lots of cake” (thanks Tim Spinnin’ Schoomer).
Among the well-wishers was a note from an old friend I used to work with. What did he suggest I do on my birthday? “Have a fiscally responsible birthday today. And some fun.”
Can you be fiscally responsible AND have fun
Can you do both? Can you really have fun AND be fiscally responsible? You know my answer – NO PROBLEM! It’s all in the MoneyPlan. There are actually three birthdays in our household this month, which is really tough after Christmas. But these aren’t surprises: Christmas comes every December (around the 25th I think) and our birthdays are always ushered in after the unused campaign goes stale from New Year’s Eve. It’s predictable, just like your money!
What I bought myself for my birthday
So today I’m going to do something fiscally responsible AND fun for myself. It isn’t a smart money-move and will only cause me to spend more time on my “hobby”. And I can do so without feeling like I’m spending money we don’t have or are wasting money because the money I am spending was already in the budget.
Today I own the domain “DaveRamseyFan.com”. It used to be a free site hosted by WordPress (DaveRamseyFan.wordpress.com) but today it is mine!
What this means for me and you
Most of my time has been spent posting blogs updates and podcasts at MoneyPlanSOS.com, but I will have to start posting more info, events, and Dave Ramsey rants to make this selfish, extravagant purchase worthwhile.
I hope you like it and will be looking forward to hearing your comments. God bless you all!
Dave Reads: Rich People Are Unfeeling Robots
On January 2, 2012 (in the 1st hour)
Dave read an article from Consumerist.com, an online magazine website, with the title “Study: Rick People Are Unfeeling Robots Devoid Of Compassion” (aired in the 1st hour on 1/2/12). The study was conducted on 300 college students from various income levels by psychologist Jennifer Stellar.
Dave was, shall we say, less forgiving to the survey methodology behind the study. Let us mimic the article by making a couple of assumptions about the 300 subjects used in this study:
What college students know about being rich
I am making the assumption that they do know something about being rich considering they have access to food, shelter, and clean water that is far more superior than a majority of the world’s population.
What college students know about Unfeeling Robots
Again, I am making the assumption that they know something about this variable since quite a few of them talk to Siri, the intelligent software assistant that comes pre-installed on the new iPhone, and are attending a University.
What the study proved
This study of College students who are relatively rich and know something about unfeeling robots that were asked questions about empathy proved this to me: You have to look at everything you read or watch with a critical eye. This study was not presented with an objective eye, it was targeted to get you to read it. There was no mention of robots or androids or even cyborgs in the original article that was released on Time.com, so this was a headline designed to get our eyeballs.
The motivation for printing this article was to get clicks and grow readership. Dave reading this on-air just gave them a boost in web-traffic, so Consumerism.com got what they wanted: our eyeballs.
Give Crazy to put a well in Ghana
Give Crazy
Dave Ramsey featured Pastor Dave, a pastor at Third Day Christian Fellowship Church in St. Joseph, MO during one of the famous “Giving” theme hours featured every Christmas season on the Dave Ramsey Show.
In the 2nd hour, Pastor Dave told his story of volunteering in Valley Community Center Food Kitchen and taking donations along with donations collected from his 100 member church. They raised over $10,000 that Sunday and were able to put two water wells in Ghana with the money.
His son built a website called “GiveCrazy.com” where people can find more information (and donate online via PayPal too!)
Do you have too much debt to be able to give?
This message was brought to you by Steve Stewart, a self-proclaimed Personal Finance Architect helping everyday Americans design a house of financial freedom. Steve is a Certified Financial Peace Workplace Trainer and has completed Dave Ramsey’s Counselor Training.
To learn more about how you can be a giver, even while in debt, go to MoneyPlanSOS.com. If you would like one-on-one coaching then contact him at 636-373-4818. Free 45-minute consultations are available now!
Nolan’s Sweet Heat Jalapeno Jelly
Giving Story featured on the Dave Ramsey Show 12/16/11
This young man has started a small business selling home-mad Jalapeno Jelly. One of the aspects of any small business is contributing to the local community, and that is one aspect Nolan is doing with excellence.Christine’s son has Down Syndrome, and he’s a giver!
After a friend developed breast cancer he decided to donate $1 from each jar of Nolan’s Sweet Heat to cancer research. The challenge to the community resulted in over 800 orders!
You can check out his Facebook page or go directly to his website, Nolan’s Sweet Heat.com
Dave Reads – What The Great Depression Did
Dave read an article from the Motley Fool
…called “What the Great Depression did that this Recession won’t” during the 2nd hour on December 14, 2011. The main message: Unlike the Great Depression, not much has changed. For more, go to http://www.fool.com/investing/general/2011/12/13/what-the-great-depression-did-that-this-recession.aspx
Dave expanded on the topic by talking about how he can hardly get out of his building’s parking lot because the traffic around the mall across the street is so congested. He also reminded us that bankruptcy and divorce in the 60′s was something most people would be ashamed to be a part of. Things are more disposable these days and there has been a shift in the way people look at obligations.
Do you want to improve your economy?
This message was brought to you by Steve Stewart, a self-proclaimed Personal Finance Architect helping everyday Americans design a house of financial freedom. Steve is a Certified Financial Peace Workplace Trainer and has completed Dave Ramsey’s Counselor Training.
To learn more about how you can improve your own economy and other great resources go to MoneyPlanSOS.com or contact him at 636-373-4818. Free 45-minute consultations are available now!
Dave Reads – Biting The Hand That Feeds You
On September 13, 2011 (3rd hour) Dave read a post by David H. King, President and CEO of Alexander-Haas. The article, posted on the Giving Institute’s blog, talked about how much the richest in America give and how politicians and non-profits keep asking them to give their “Fair Share”.
It is a quick read, check it out for yourself. Good stuff:
http://givinginstitute.wordpress.com/2011/08/17/biting-the-hand-that-feeds-us/
Dave and SOS
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- It is Godly to have some money
