/biz/ - Business & Finance

>>19952095
Because it is basic as fuck and you are actually losing money due to inflation by saving 85% of your income.

>>19952095
It’s instructions for normies without impulse control.

There are smarter ways to do what he advocates, but he advocates the simplest rather than best route, as once again people are stupid.

For example, his debt snow ball advocates paying off debt from the smallest value to the largest. You would be better off paying the highest interest off first, regardless of amount, as it is costing you more to carry.

>just find a good mutual fund that returns 15% every year

Why not dump all your money into global mutual funds? Lines go up.

>>19952095
he's pretty full retard on various borrowing/financing things

>>19952095
>only invest 15% of your income
>have children
>give away money FOR FREE (excluding tax loopholes)
>credit cards are bad
cringe

>>19952274
This. He's successful because he spoon feeds idiots out of debt. His steps work well for these people but can be improved on situationally. That requires thinking on your own and that's how must of moronic fan base dug their own graves in the first place.

>>19952095
If you never plan to use credit again, why would you pay off all debt and not dismiss it in bankruptcy, or just stop paying it? Assuming you'll never borrow again or need a good credit score. Why wouldn't you intentionally run up as much as you can first, and use that free money for your "children's college"?
The answer is, because it's not a very Christian thing to do. That's where he's wrong imo

>>19952095
From I've seen, he's only been wrong on 2 things.

> Buy good performing active mutual funds.
Low cost passive index funds beat the crap out of active funds.
Good past performance is not indicative of future returns, so impossible to know ahead of time which funds will perform well.
There's tons of academic studies on this.

> Pay your smallest debts first.
No. You should pay the debts with the highest interest first.
If you have a 20% credit card debt, that's equivalent to a 20% guarantee gain on an investment (those don't exist in real life).

Other than that, he has some solid advice.

>>19952095
he's not wrong about anything if you consider his audience: retards. yes, retards should save their money because otherwise they spend it on stupid shit. savvy investors should not be saving 6 months of expenses in some fucking gay ass 1% bank account.

whats the point of working and saving all your life, just to get rich when you´re 60+, and then just give it away.

>>19953095
If you can get 1% on a bank account you're doing GREAT
0.03 is more likely

>>19952095
It's in the details.

1. The Debt Snowball (smallest debt -> largest debt) will lose you more money than the Debt Avalanche (highest interest rate debt -> lowest interest rate debt).

2. He endorses actively managed mutual funds over index funds and ETFs like it is even up for debate anymore. Go for lowest expenses and lowest tax cost ratio funds as downside protection.

>>19953156
he doesn't just endorse them. he shills them. he recommends certain ones that he makes money off of somehow.

>>19952219
You are not saving that 85% you are living off of it. The 15% is about not living paycheck to paycheck and actually saving money. If you can do better he says go for it.

>>19953120
yeah, you're right. i was just too lazy to type a decimal.

>>19953060

He also shills 15 year fixed term mortgages or preferably 100% down payment. My employer gave us his smart dollar program for free so I dove into it. For the average person he really does work wonders because they’re so fucking brainless and buried in debt or their parents are and they didn’t learn any better. A 15 year mortgage or 10+ years of renting is not always ideal, especially if your work is on contract or freelance. The program itself is a good starting point, but not at all what you should follow to a T. If you’re never having children why save for them? Why not use credit because it allows for more purchasing power and most credit cards have introductory 18 month 0% offers? I like that he shills term life insurance because I had never thought about that. I really don’t care about my death, but if I can drop $20/month for 20 years for the peace of mind that my girlfriend or parents can benefit from that sounds good to me. I’m not a huge fan of charity and their anecdotal stories, but I can see how it appeals to the masses.

>>19952929
Yea I always thought the giving part was super cringe

>fixed rate
>15 years
>25% of takehome pay

i cant even get a shack for that

>>19954931
he's a christian boomer. what did you expect?

>>19954507
literally makes no sense when you can get a home with basically no down payment through federal incentives (just have to pay for mortgage insurance). my wife did this and now the value of our home has doubled in five years. following ramsey to a T, and you'll be lucky to have a $1 million net worth when you retire.

>>19952988

Imagine spending an eternity in a lake of fire where you never stop feeling the pain of your flesh burning and metling off of your body for a few sheckles.

>>19953095
So how much would you have liquid for emergencies?

>>19954958
get more money or move

>>19952095

>Save for children's college

This part