Re: Side Hustle
Posted by Just remember.. on 11/12/2020, 10:05 am, in reply to "Re: Side Hustle"
Dave Ramsey didn't make his money by following his plan. He got out of DEBT by following his plan - back in the 1980s, when it was much, much easier to get out of debt. |
Dave Ramsey got rich by selling his plan to other people.
It's also COMPLETELY out of touch with the economic reality of most recent graduates and young families.
Imagine a first year teacher making $3500 a month take-home (and this is an absolutely GREAT starting salary).
With ZERO credit card debt,
$950 a month rent (very much on the low side in my metro area),
$150 in student loans monthly (also on the low side),
monthly food budget of about $400,
car payment and insurance of $400 (also low-balling),
electric and internet of another $200 (still low-balling),
and clothing $100-200,
you're talking about at most $1150 left before you talk about gas, medical bills, incidentals, and emergencies.
You're also putting nothing toward retirement. And oh - virtually no one under 25 has zero credit card debt. It's simply absolutely not realistic.
Putting away even $100-200 a month is about the best many young people can do. Things simply cost more than when Ramsey came up with his scheme.
The reality is, it works when you have more than one paycheck contributing to bills - have a roommate or have a wife/husband that pays half. And if you're talking about an typical home price in Texas of around $150k, it will take literally 300 months - 25 years! - at $100 a month to build up enough savings to put down 20%. That's the length of an entire mortgage - and you've been paying RENT to someone else that entire time!!
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