Wednesday, January 7, 2009

Financial peace university

My husband and I are starting the Financial Peace university program with Dave Ramsey in a couple of weeks. We have already kinda started to prepare for total discipline. I got an e-mail and it ws an article that listed the most annoying statements or excuses that people make that drive Dave nuts. I thought they were pretty good.

“Dave arguments” that drive Dave Ramsey nuts!
(my comments are in red)
-I hate the argument that you can make more money if you’re willing to go into debt.
(I learned this the hard way, and in a bittering way)
-The ones I hate: I have a very rich relative, if something happens he will help us.

-I can't afford a car that needs to be fixed, so I bought a new one.

-Buying a used car is risky. I want my kids to have what I didn't.
(Never use your kids as an excuse to get what you as an adult want)
-I hate the line about how getting out of debt isn't the best plan for everyone, and you have to go case by case.
(this person had to have been in denial)
-I also hate the [idea that] buying a used car is just buying someone else's problems. I heard that from my own mother!

-My favorite is, "I can get 10% on my investment with money from a 6% home equity loan. I can use my house to make me money!" Sounds like they forgot to account for risk!
(This is a no brainer, always minimize risk when it comes to your home. I have never noticed a plus on my income taxs with owning a home so why use the equity up for other debt to help your taxes)
-I had the "Why bother to save $1,000 in an emergency fund when I owe thousands on a credit card?" chat. They didn't get that it isn't what makes the most financial sense; it is about changing behaviors by never borrowing again!
(we have already done this and it really does help us feel more secure about if things come up)
-I dislike the phrase, "There's nothing in my budget I can cut to be able to put something toward my emergency fund or debt." Meanwhile, they are driving a new car, carrying the latest cell phone, toting a Dooney & Burke bag, and eating out at nice places!
( this one is one that irritates me too, I know lots of people that are supposedly broke and have no money but they are in the latest fashion and they are always eating out. How ironic)
-The argument that drives me bonkers is "I spend more when I use cash." Yeah, maybe the first month. But if you stick to the plan and don't use credit cards as a backup, you learn pretty quickly that when that cash is gone, you are done spending!
(this is a comment that even I was stupid enough to say. but really it was just a way to not make a committment)


Lisa@verybusymomwith4 said...

We are doing Dave Ramsey too--my biggest issue is sadly my husband thus the hardest one of all. He loves to go out!
Good to see you back!

Elizabeth said...

good for you 2 with going with this system. i really hope it helps you toward your financial goals. esquire & i just sat down yesterday and talked budget...always happens in january. we feel very blessed with how God has provided but we are tracking every penny this month b/c we are curious how it all will work out in the end. i am determined to do good. ;-)

Becoming Me said...

I heard this is fabulous! Oh, I'm adding you to my new blog roll

new*me said...

I think hubby and I need this too :) I really like Suze Orman too

virginia said...

awesome post.I totally agree.

Peter said...

Good luck on your Dave Ramsey journey! We taught FPU this winter, and it really is a life changing class. As long as you attend class, and do what they ask, you really can turn things around financially. When we first took the class it really helped my wife and I to get on the same page, and now we're debt free except the house!