Comments on: My reaction to “The Total Money Makeover” http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/ Thu, 08 Jan 2009 17:44:21 +0000 http://wordpress.org/?v=2.5.1 By: Christine http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-3423 Christine Tue, 15 Jan 2008 21:54:17 +0000 http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-3423 I have always had credit card debt since I've been married (15 Years) but I hardly ever pay much in interest. I just transfer it to a different credit card with 0% interest when the interest is about to go up. The disadvantage on this is you have a lot of open credit cards. So you have to make sure you close the accounts you are not using them anymore. But this as saved me thousands in interest. But I am starting to rethink my debt and this year my goal is too eliminate most of my debt and start saving the money first instead of charging it. I have always had credit card debt since I’ve been married (15 Years) but I hardly ever pay much in interest. I just transfer it to a different credit card with 0% interest when the interest is about to go up. The disadvantage on this is you have a lot of open credit cards. So you have to make sure you close the accounts you are not using them anymore. But this as saved me thousands in interest. But I am starting to rethink my debt and this year my goal is too eliminate most of my debt and start saving the money first instead of charging it.

]]> By: Meredith from Merchant Ships http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2286 Meredith from Merchant Ships Thu, 06 Dec 2007 03:24:02 +0000 http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2286 Having been a Dave Ramsey fan for over 10 years now, I'll say that Dave Ramsey on-the-air is much more impressive than he appears in his writing. He truly has a gift for cutting to the heart of the matter, for seeing through the same old excuses (and in so many years of talk radio, he's heard them all.) He has an intuitive sense of when to be kind and when to be tough. Listening to his common sense advice, repeated and reinterpreted to every caller, has drummed these lessons into my head far better than any of the books. Good entertainment, good sense, good radio! Having been a Dave Ramsey fan for over 10 years now, I’ll say that Dave Ramsey on-the-air is much more impressive than he appears in his writing.

He truly has a gift for cutting to the heart of the matter, for seeing through the same old excuses (and in so many years of talk radio, he’s heard them all.)

He has an intuitive sense of when to be kind and when to be tough.

Listening to his common sense advice, repeated and reinterpreted to every caller, has drummed these lessons into my head far better than any of the books.

Good entertainment, good sense, good radio!

]]> By: Michelle http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2284 Michelle Thu, 06 Dec 2007 02:43:03 +0000 http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2284 Thanks for this book review--I've been hearing about him for a few weeks now and was curious. It may be worth checking out of the library for a few pointers! When we had credit card debit, I alway negotiated the interest rates, so that while I paid down the smaller balances first, the larger one was always at a rate less than 5%. If you've got a debt that's going to be sitting there for awhile while you get things under control, it's alway worth trying to negotiate--banks/creditors would rather have your $$ with a lower interest rate than to have to refi/balance transfer to some other vendor! Thanks for this book review–I’ve been hearing about him for a few weeks now and was curious. It may be worth checking out of the library for a few pointers! When we had credit card debit, I alway negotiated the interest rates, so that while I paid down the smaller balances first, the larger one was always at a rate less than 5%. If you’ve got a debt that’s going to be sitting there for awhile while you get things under control, it’s alway worth trying to negotiate–banks/creditors would rather have your $$ with a lower interest rate than to have to refi/balance transfer to some other vendor!

]]> By: Milehimama http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2271 Milehimama Wed, 05 Dec 2007 20:09:40 +0000 http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2271 I liked the Total Money Makeover. We also did not start out with any debt except a car loan that is almost paid off. But we didn't have credit cards, etc. We're on step 2 (saving the emergency fund) because it took us a while to just get current with our bills! Ramsey's advice for the 'barely making' crowd was to get a second job temporarily to get that 3-6 month emergency fund saved up (gazelle intense). We didn't do that, but took out a loan against our 401(k) - essentially, we are borrowing from ourselves and paying back ourselves with interest, plus we have some money in liquidity for emergencies. We did that because a second job was not feasible - my husband's job doesn't always work 9-5, and he may have to work through a weekend or a 12 hour day without notice. I liked the Total Money Makeover. We also did not start out with any debt except a car loan that is almost paid off. But we didn’t have credit cards, etc. We’re on step 2 (saving the emergency fund) because it took us a while to just get current with our bills!

Ramsey’s advice for the ‘barely making’ crowd was to get a second job temporarily to get that 3-6 month emergency fund saved up (gazelle intense). We didn’t do that, but took out a loan against our 401(k) - essentially, we are borrowing from ourselves and paying back ourselves with interest, plus we have some money in liquidity for emergencies.
We did that because a second job was not feasible - my husband’s job doesn’t always work 9-5, and he may have to work through a weekend or a 12 hour day without notice.

]]> By: Margo http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2270 Margo Wed, 05 Dec 2007 19:39:49 +0000 http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2270 Hey Babychaser, just wanted to let you know that my family is in a similar boat! While we do have debt that we're paying off, it's going to be years (school loans and mortgage), so the income going to that isn't going to be freed up anytime soon. We don't really have money left over at the end of the month, and sometimes it can be frustrating to read frugal tips and think BUT I am already DOING THAT!! Thanks, Kacie, for the very good tips on your blog - you go beyond the basic tips and that's why I keep on reading! And Kacie, about rent vs. owning a house: my husband and I are landlords and we figure the cost of utilities, maintenance, and taxes into the rent. So our tenants are paying the taxes too. I think renters benefit with the flexibility to change locations so quickly and easily. Also, tenants don't have the headache and liability of maintenance and repairs. Home ownership is shouldering a big responsibility. Hey Babychaser, just wanted to let you know that my family is in a similar boat! While we do have debt that we’re paying off, it’s going to be years (school loans and mortgage), so the income going to that isn’t going to be freed up anytime soon. We don’t really have money left over at the end of the month, and sometimes it can be frustrating to read frugal tips and think BUT I am already DOING THAT!! Thanks, Kacie, for the very good tips on your blog - you go beyond the basic tips and that’s why I keep on reading!

And Kacie, about rent vs. owning a house: my husband and I are landlords and we figure the cost of utilities, maintenance, and taxes into the rent. So our tenants are paying the taxes too. I think renters benefit with the flexibility to change locations so quickly and easily. Also, tenants don’t have the headache and liability of maintenance and repairs. Home ownership is shouldering a big responsibility.

]]> By: ashley @ twentysixcats http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2269 ashley @ twentysixcats Wed, 05 Dec 2007 19:38:10 +0000 http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2269 Dave Ramsey's idea of debt snowball really helped me. For us, the highest interest loans were also the biggest. It was so overwhelming to try and pay $16,000 at once. Also, we tended to not be as faithful about putting money towards it when we knew we had so far to go. But once we started knocking off the smaller loans (what? we only need $1000 more? well I can forfeit a nice dinner out for that) we were more motivated. I know logically paying off the higher interest seems better, but I really think in the long run we are actually SAVING money this way, because our loans are being paid off FASTER. Also, by the time we pay off the others, the bigger loans are less and not so scary. I guess it's all about tricking your mind. Dave Ramsey’s idea of debt snowball really helped me. For us, the highest interest loans were also the biggest. It was so overwhelming to try and pay $16,000 at once. Also, we tended to not be as faithful about putting money towards it when we knew we had so far to go. But once we started knocking off the smaller loans (what? we only need $1000 more? well I can forfeit a nice dinner out for that) we were more motivated. I know logically paying off the higher interest seems better, but I really think in the long run we are actually SAVING money this way, because our loans are being paid off FASTER. Also, by the time we pay off the others, the bigger loans are less and not so scary. I guess it’s all about tricking your mind.

]]> By: joanna http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2261 joanna Wed, 05 Dec 2007 16:34:39 +0000 http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2261 Your review of the book is very interesting. Thanks for sharing! Dave Ramsey's books were recommended by a friend just a couple months after we got married. We did as you say and paid off our highest-interest-rate school loan first, and now have only one left, and (most recently!) a mortgage. We had about 10% down on our house (at a 5.6% interest rate, where we can afford payments that will pay it off in 12 years)- which we've only been in a month- and chose to save up for the house rather than pay as aggressively as possible on the remaining school loan, because the school loan interest rate is very low, and getting into a house was a priority for us. Also, we went ahead and built up a 3-month emergency fund rather than just relying on the $1000. It gave us more peace of mind. Our emergency fund (also in ING) is a little different than yours in that its purpose is truly for income replacement- we have other funds to pay for car repairs (while not exactly foreseeable, they're inevitable). Our biggest take-away from Dave Ramsey's book has been going to an all-cash budgeting system. We pay our bills via check or online, but everything else is cash-based, budgeted for and taken out of the bank each paycheck. During a hectic couple paychecks early this year, we went off the cash system and learned our lesson- it really helps to have physical currency to spend, rather than plastic. Your review of the book is very interesting. Thanks for sharing!

Dave Ramsey’s books were recommended by a friend just a couple months after we got married. We did as you say and paid off our highest-interest-rate school loan first, and now have only one left, and (most recently!) a mortgage. We had about 10% down on our house (at a 5.6% interest rate, where we can afford payments that will pay it off in 12 years)- which we’ve only been in a month- and chose to save up for the house rather than pay as aggressively as possible on the remaining school loan, because the school loan interest rate is very low, and getting into a house was a priority for us. Also, we went ahead and built up a 3-month emergency fund rather than just relying on the $1000. It gave us more peace of mind. Our emergency fund (also in ING) is a little different than yours in that its purpose is truly for income replacement- we have other funds to pay for car repairs (while not exactly foreseeable, they’re inevitable).

Our biggest take-away from Dave Ramsey’s book has been going to an all-cash budgeting system. We pay our bills via check or online, but everything else is cash-based, budgeted for and taken out of the bank each paycheck. During a hectic couple paychecks early this year, we went off the cash system and learned our lesson- it really helps to have physical currency to spend, rather than plastic.

]]> By: If Dave Ramsey was a housekeeper… | Sense to Save http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2258 If Dave Ramsey was a housekeeper… | Sense to Save Wed, 05 Dec 2007 16:01:03 +0000 http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2258 [...] Comments Kacie on My reaction to “The Total Money Makeover”Sharon on My reaction to “The Total Money Makeover”Nichole on How much does that recipe [...] [...] Comments Kacie on My reaction to “The Total Money Makeover”Sharon on My reaction to “The Total Money Makeover”Nichole on How much does that recipe [...]

]]> By: Kacie http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2257 Kacie Wed, 05 Dec 2007 15:27:26 +0000 http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2257 Glad to hear your finances are looking up, Sharon! Also, thanks for letting me know you appreciate posts on deals at Giant Eagle. I'm not sure how many of this blog's readers live near a Giant Eagle grocery--so I'll be sure to post on it from time to time. Glad to hear your finances are looking up, Sharon!

Also, thanks for letting me know you appreciate posts on deals at Giant Eagle. I’m not sure how many of this blog’s readers live near a Giant Eagle grocery–so I’ll be sure to post on it from time to time.

]]> By: Sharon http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2256 Sharon Wed, 05 Dec 2007 15:19:15 +0000 http://sensetosave.com/2007/12/04/my-reaction-to-the-total-money-makeover/#comment-2256 Yes! Read it and loved it. It's really changing our financial life. (myself and my dh) I wish we had read it sooner. My parents used credit cards a TON. I saw more of that way of spending that any other growing up, Maybe they paid it off each month, but that part wasn't what I witnessed. what I witnessed was the use of plastic. So naturally, I didn't think twice about it before beginning my own credit card debt. BIG MISTAKE. I seriously thank of Dave Ramsey as a blessing. His approach is really helping us We're still on steps 1 & 2, but we're doing MUCH better than we were 2 years ago! I continue to love your blog. Thanks for all the helpful info and hard work you put into it! Oh, and btw, because of your posts on Giant Eagle, I shopped there last week and saved myself nearly $10! THANKS! Yes! Read it and loved it. It’s really changing our financial life. (myself and my dh) I wish we had read it sooner.

My parents used credit cards a TON. I saw more of that way of spending that any other growing up, Maybe they paid it off each month, but that part wasn’t what I witnessed. what I witnessed was the use of plastic. So naturally, I didn’t think twice about it before beginning my own credit card debt. BIG MISTAKE.

I seriously thank of Dave Ramsey as a blessing. His approach is really helping us We’re still on steps 1 & 2, but we’re doing MUCH better than we were 2 years ago!

I continue to love your blog. Thanks for all the helpful info and hard work you put into it!
Oh, and btw, because of your posts on Giant Eagle, I shopped there last week and saved myself nearly $10! THANKS!

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