Financial Advice for those wanting to be an O/O

Maybe a freightliner

 

To me, the bottom line is that in order to succeed, you need to live on a plan (and not just a financial plan, but that's for another day). If you don't have a plan, Dave's plan will be infinitely better, and if you DO follow Dave's plan, your chances of success will be very, very good.

Now, can the nerds among us come up with a BETTER plan? Well, that depends how you define "better". You can argue about opportunity costs, and credit card points, and a hundred other sticky details and stay in the woods for the rest of your life. And if you DO YOUR plan, you'll have a very, very high chance of success.

HOWEVER, it's not about which plan is better...... it's about which plan is more likely to get executed. It doesn't matter if YOUR plan is "better" if people that try to follow it fall off the wagon.

Think of an alcoholic trying to quit. AA is a simple, proven method that anyone can follow and get sober. I can argue for days that it's a waste of time, just quitting and going on with life is much more efficient, saves a lot of time, a lot of effort, embarrassment,etc. But which plan has the higher compliance rate, AA or my "just say no" plan?

Same with Ramsey's plan: the reason it's as successful as it has become is not because it's mathematically optimal (it is not, as Ramsay frequently points out himself), it's because it is clear and people don't fall off the wagon near as often. And following it, mathematical "flaws" and all, will lead to success, unless you get run over by a bus.

 

It gives some people structure…many need that. Obviously.

 

Okay, I thought it was a car loan, not a semi truck loan.

That is a seriously expensive car.

 

It said he owes $170k on 2 electric vehicles.

 

My best guess is that they graduated college in an incredibly lucrative career (healthcare or finance), had some credit and because of their new found wealth were able to get them and the spouse new BMW's, Benzs or the new fad with healthcare "professionals", Tesla's & Rivians. Then they purchased way too much house assuming they live in the midwest. Small to non-existent down payments (high monthly payments).

Clark Howard won't work for them as no amount of frugality is going to make up for those big three no brainers. Although he would espouse more frugal transportation.

Dave Ramsey could be the wake up call! Sell those silly cars and purchase two brand new Toyota or Subaru's, own them trouble free for 10 years and still save more than a 100k.

Mortgage is debatable but i would think that living even in the hottest markets such as New York, LA, San Fran etc $4500 is to easy beat, renting, earning that kind of money.

Assuming they can only save 1k per month on housing. That's still roughly 3k per month in car payments assuming 2%.

Good lord! Rich people problems! If they are too stupid to realize how fast they can pay off their reasonable student loans "sacrificing" 4k per month then i certainly don't want them as my doctor or financial consultant.

My doctor drives a Ford Focus from college still and my financial advisor understands compounding interest. True story here and why i don't assume anything with these "professionals" anymore. Rohlik Financial out of the Twin Cities sent an advisor espousing their services once to an employer i worked at trying to convince me to roll my 401k's to them. I asked her if she would rather have a million dollars or a penny doubled every day for a month...... sigh. Life is tiring at times isn't it?

 

Great marketwatch reporting! The article has changed from last night from when i read it but my assumptions were pretty accurate.

$3200 per month to get to work. Lord knows your living there as the new person. Where are the spouses wages?

The only upside i see is that they probably only charge their vehicle at work so the "gas" is free.
Well technically it isn't free. If you have healthcare insurance or pay your healthcare bills you, the employer or the gubment is paying for it.

 

Went to university to become dumber than a tree branch it seems.
I bought the wife a nice jeep because I could afford to pay cash for it. I drive a 7 year old pickup, and 3 year old car, paid for in full.

House is paid off, shop, tools, trucks, trailers, equipment, land, motorbikes, all paid off.

This guy has nothing but debt, and no brains.
My dogs have more common sense.

 

WRONG!!!