[TommyJefferson]

I saw this Dave Ramsey guy on a documentary about credit called "Maxed-out". http://torrentspy.com/torrent/1254575/M ... ViD_ESPiSE

From the looks of his website, he's doing pretty well selling common sense advice.

Here's an interesting video presentation about how to eventually drive nice cars for free...

http://www.daveramsey.com/etc/lms/drive_free/

I know a filipino lady who does this. She gets a new car every six years and hasn't had a car payment in 30 years.

[I_Like_Plants]

Good little film.

If you're nonrich, and can't put all that money away and pay for cars out of the interest, you can also pay for your car by doing a swapmeet a month and if you bring in enough to equate to what the car costs you, that's like a free car too. It's hard to do a swapmeet sale out of a backpack or bike trailer, although it's possible, but with a car it gets easier.

[alpha480v]

I like this guys attitude and demeanor. I might just subscribe to his service.

The pay yourself first idea can be applied to everything, not just a new car.

Pay yourself first out of your paycheck every week and you can see your bank account grow. My wife and I have been doing this for a year now and have doubled our stock portfolio value, and our savings account has doubled also.

Eliminate the unnecessary stuff that you buy every day or every week and watch your savings grow even more! I was buying a cup of coffee at DUNKIN DONUTS every day on the way to work until I realized how much money was being pissed away(literally!)

Saving and investing wisely does work!

[pup55]

I have listened to this guy.

What he is saying about getting out of the car payment rut is dead on. For young people, car payments are the most clear wealth drainer you can do.

The pup55 plan is similar to this, but instead of buying the nice car, you continue to drive the old junker for years and years after that, and put the savings into VGENX which is getting 27%.

Also, you figure how to work on the car, for most minor repairs, and also, you take off all but the legal minimum for insurance, and drive like a little old lady so as to make sure you do not get into a wreck. Make sure you change the oil regularly. If you drive like a little old lady, and change the oil regularly, your cars will last a long time, even if used in the city.

Your friends and family will not envy you, because you drive around like a little old lady in this old junker, but you do not care.

The only minor problem is to get your significant other and your kids to get in alignment with this. They are more sensitive to what others think of them, and drive like there is no tomorrow.

[gnm]

Good advice. I drive a 15 year old junker and it does just fine... You could add that in many states which require insurance you only need to carry liability if the car is paid off but you will have to carry full coverage if there is a lien on it...
full coverage=very spendy

-G

[Tyler_JC]

An average 12% return on investment in an average mutual fund?

Who does he think he is?

Once you factor in taxes, management fees, etc., relatively few people break the double digit mark.

Factor in 8% instead of 12% and your nest egg after 40 years is only 1.6 million, not 5.5 million.

And that is without factoring in inflation...

This video is not realistic.

Moreover, it's very simplistic.

It is like telling a fat person to EAT LESS and WORK OUT MORE.

Want to get rich? Save money, invest wisely, and spend less money on crap. It's obvious but no one ever follows it.

[pup55]

$this->bbcode_second_pass_quote('', 'T')his video is not realistic

[dissimulo]

Yep, Dave Ramsey offers good, common sense advice. He inspires people to get out of debt, which probably benefits us all.

I bought my first new car in 2005 (with cash) and will drive it until it is dead. I bought my previous three junkers with cash. My three younger siblings all have new cars on loans and the second youngest is on her second new car (and is still finishing paying off the loan on her previous car). They are all poor, but have nice cars.

My whole family is like this. Somehow I got the gift for managing money, but I apparently didn't get the gift of the educator, since I can't seem to help them get off the spending carousel.

I put money away in a special fund for them, because I know they are going to need help at some point and I don't want to have to liquidate anything I care about when the time comes.

[Hawkcreek]

--

[eastbay]

Want to get rich? Save money, invest wisely, and spend less money on crap. It's obvious but no one ever follows it.

... almost no one. This plan worked great for us and I recommend it to people, but I know very few others who live by this simple-living plan. The problem is that it takes several years to see a positive result and few have the patience.

I worked with a guy who retired a few years before me and made the same as I did. He never bought a house because he 'could never afford the down payment'. Always had a nice ride, however...

[gnm]

$this->bbcode_second_pass_quote('Tyler_JC', 'I')t is like telling a fat person to EAT LESS and WORK OUT MORE.

[Tyler_JC]

GNM, eating less and working out more does nothing to eliminate obesity.

The only solution is consuming lots and lots of amphetamines.

My solution also solves the problem of sleep deprivation and, eventually, the social security deficit.

Personally, I think we should just recycle all people over a certain BMI and convert their bio-fat into bio-diesel.

[I_Like_Plants]

$this->bbcode_second_pass_quote('Tyler_JC', '
')Personally, I think we should just recycle all people over a certain BMI and convert their bio-fat into bio-diesel.

[Tyler_JC]

How can these people afford to eat that many calories a day?

I don't understand it.

I hope that eventually poverty will strip them of their excess lard.

If not, the Tyler_JC human fuel processing plant will take care of it.

[eastbay]

The cure for fatness and obesity is so simple that there is no doubt whatsoever that anyone who is fat or obese is that way by choice.

Why anyone would want to intentionally do something like that to themselves is beyond me, but about half of adult Americans do and that is kinda creepy.

[perdition79]

$this->bbcode_second_pass_quote('eastbay', 'T')he cure for fatness and obesity is so simple that there is no doubt whatsoever that anyone who is fat or obese is that way by choice.

Why anyone would want to intentionally do something like that to themselves is beyond me, but about half of adult Americans do and that is kinda creepy.

[patrick_b]

That's indeed a cool video ! I think the 12% yield is exagerated, but even with 6% it's very useful.
There is also another tip I could give.
You can also completely avoid the monthly car payment even if you don't have enough money to pay for it completely.
The idea is simply to use the credit card to pay part of the car and then pay the credit card as fast as you can. Using this simple trick, you may pay interests for the car only during 6 months, instead of 6 years. That makes a lot of difference on the amount paid for interests.

I used this trick for my own car. I wanted a reasonably priced, safe and long-lasting family car. Since I had not much money I wanted a used car that is between 8 and 10 years old. I went to euroncap.com to find out which are the safest cars built around 1997 and 1999. I decided for a Volvo S40 that was 8.5 years old. (Don't buy this car in the US, they're not the same quality as in Europe...) It cost me 8400 CHF (6800 US$). I paid half of it with money from my bank account, the rest with the credit card. After 4 months, my cc was at 0 CHF and my car was thus entirely paid. I paid a few tens of dollars of interests instead of thousands.

The morale of the story is: even with a small amount of cash at the time I bought it, I entirely own my car and I'm a happy driver.

[vision-master]

I believe many FAT people are just made that way. I have a FAT dog. She get's tons of exercise & not much food. She is just BIG!

[Aaron]

$this->bbcode_second_pass_quote('Tyler_JC', 'H')ow can these people afford to eat that many calories a day?

I don't understand it.

I hope that eventually poverty will strip them of their excess lard.

If not, the Tyler_JC human fuel processing plant will take care of it.