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/biz/ - Business & Finance

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668929 No.668929 [Reply] [Original]

what are the worst financial advice hacks?

>> No.668934

The ones that are also conspiracy theorists.
>the government issues a bond with you as collateral to <insert nefarious bogeyman here>!
>You can redeem it to pay off all your debts!

>> No.668943

>>668929
put de monei in de ponzi

>> No.668950

>>668929
It's hard to beat Dave Ramsey but Suzy Orman is right up there.

>> No.668966
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668966

>> No.668973

David Ramsay is the high speed bullet train to the most vanilla lower middle class life known to man.

>> No.669004

>>668929

Exactly what is wrong with Dave Ramsey?

His advice and his show are completely geared towards people who have zero impulse control and can't plan ahead, which is why it seems so basic and retarded, because the audience is basic and retarded.

>> No.669008

/biz/

>> No.669009

>>669004
I ONLY read one of his books, and it was about a year ago, but here's what I remember.

Dave Ramsey gives sound advice. For example, he reinforces the idea of only spending cash for everything. He also urges everyone to have a savings account with 3-6 months of expenses stashed away as an emergency fund.

However, all of the info he provided was very basic and a lot of it were things financial advisers have been saying for years. He teaches little about investing and making money, but rather conserving the money that you already have. Also, he urges people to spend only cash, which is good for things like say, remodeling the house or buying a swimming pool. But, there is a such thing called "good debt", which he didn't even mention.

Also, it really bothered me that he put a lot of his Christian messages all over the place. Money is universal and he's essentially alienating everyone who doesn't share the same belief in his ideology. Again, money is universal. Leave the Jesus bullshit out of the book. Horrible marketing decision.

>> No.669011

>>669009

It's very basic because it's aimed at people who have absolutely zero idea what they are doing and need to be told everything.

> Horrible marketing decision.

Given the amount of books he's sold and money he's made, it cant have been that bad.

>> No.669035

>>669009

>all of the info he provided was very basic and a lot of it were things financial advisers have been saying for years. He teaches little about investing and making money

That's pretty much true for 99% of financial books

His audience cannot differentiate good debt from bad debt. These are the people who buy a $40,000 car when they make $60,000, and then call the car an asset.

He's said on his show that he doesn't recommend specific stocks and mutual funds because he can't predict the future and it would hurt his credibility. At least he is vague about his investing rather than doing what Cramer does and flat out lie and use his audience for pump and dumps.

>Money is universal and he's essentially alienating everyone who doesn't share the same belief in his ideology. Again, money is universal. Leave the Jesus bullshit out of the book. Horrible marketing decision.

You are vastly underestimating the Christian market. Christian music and Christian books sell like hotcakes

Literally every single one of his books was a #1 best seller on Amazon at one point in time

>> No.669038

>>668929
HATERS GONNA HATE
>>668966
but you just do the opposite of what he says

>> No.669039

>>669008
I shall rate this post appropriately

>> No.669040
File: 108 KB, 800x533, Bedroom.jpg [View same] [iqdb] [saucenao] [google]
669040

>>669009
>Dave Ramsey gives sound advice
Except that:

>he reinforces the idea of only spending cash for everything
>He also urges everyone to have a savings account with 3-6 months of expenses stashed away
Is poor advice. He has absolutely no concept of inflation. People who have been following that advice for the past 6 years would be getting poorer over time since inflation has been between 1-2% every year while the interest on savings (on average) has been stagnant between 0.01%-0.2% meaning they're losing, in real terms, ~1%-2% a year if you're getting the very typical 1 basis point yield.

His ideas about debt are also flawed from the ground up of course.

>pic unrelated

>> No.669064

>>669040

Dave Ramsey is financial advice for the majority of people.

i.e. people who are not fit to use to credit.

Morons.

Simpletons.

It's for simple people to keep themselves out of trouble.

>> No.669178

>>668929
People who think that index investing is for everyone. buying an index wont make you a millinaire 40 years from know.

>> No.669187

>>669178
>buying an index wont make you a millinaire 40 years from know
Of course it can.

Anyway, investing isn't likely to make you rich period unless you're charging a fee to invest other people's money.

>> No.669196

>>669178
Index investing is for everyone. Starting with the same principal, you're more likely to get a better return with indexing than with more active stock picking. Depending on the size of the principal, you're right. Indexing won't make you a millionaire. But neither will the other approaches.

>> No.669203

>>669196

You're getting baited

The guy you're replying to is probably some shitlord memester who thinks that investing = Wall Street Billionaire and doesn't understand that you get rich through you income and index funds are simply making your money work for you.

>> No.669260

>>669187
My argument is that you can unlucky, someone who invested in 2000 till 2009 thinking that the bought the botton made any money.

>> No.669271

>>669260

And if you had left everything you invested from 2009 to this exact day, you would have made five times your money by it just sitting there.

>> No.669277

>>669011
>>669035

I guess you guys are both right. It makes sense to market to a Christian demographic... since the majority of the US believes in god, people might feel some sort of kinship with him and be more compelled to purchase it. I see your view and I stand corrected.

However, it still doesn't change how it makes me irate.

>> No.669291

>>669040
Having an emergency fund is not bad advice though. Everyone should have one. Yes, you lose 1-2% annually with inflation, but it's a safety net. Imagine if you were fired from your job and went 6 months without income. You might have to remortgage your house, refinance your car, take out loans, pull out from your retirement early, etc. All of these things are catastrophic in terms of ultimate lifetime wealth, when compared to "hurr durr my inflation!" I personally know people who have been laid off, or their union went on strike, and believe me, they would not have whined one bit about the value lost to inflation. Consider the lost value of money a minor expense for total financial security.

Also as >>669064 pointed out, the book is for simpletons. It's for the common person who is oblivious to the business/financial world around them. I would said that everyone who posts on this board is above Dave Ramsey, because above all else, we all inherently share a common desire to learn and participate in discussions of business. That alone elevates us over the target audience for Ramsey's teachings.

>> No.669900

>>669291
Nah, It's infinitely better to just have a personal investment account. Beating inflation even with low-risk bonds isn't even a challenge, let alone other investments. If you happen to need the money, you can just sell off some of your investments.

>> No.669917
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669917

>>669291
Big whoop, if i have to much debt then i"ll:

1) sell off remaining assets to a close friend for a "reasonable" price, enough not to arouse suspicion.
2) pay off creditors with with 65-70% less cash than I would be obligated to if i sold said assets at market value.
3) File for chapter 7 bankruptcy
4) Get creditors off my ass
5) get a fresh start
6) raise new capital
7) get my assets back from close friend after follow up time dissipates.
8) saved 60-70% paying off creditors
9)??????
10) SHEKELS!!

>> No.669933

>having a safety net is bad.

/biz/

>> No.670090

>>668966

What he advocates is really irresponsible giving his target demographic. He also uses the vague concept of "homework" to cover his ass. If you lose money it is not because his system is broken its because you didn't do enough homework.

>> No.670099

>>670090
>it is not because his system is broken

I'll bite, how is his system broken?