Dave Ramsey Loses His Mind Over This 'Advice' (Part 1)

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[gregme]

I used my daughter's name to take a 50k loan. Took her 10 years at a minimum wage to pay it off. Now she knows she can't trust people. I'm so proud of her

[johnguilfoyle]

I bought a used Ford truck for $7, 000.
Twenty years later I'm still driving that truck.

[Wellactually]

My son just bought his first car. He worked after school mowing lawns for the last 2 years and paid cash for a cheap, older, low mileage, Honda. He has gone through it, changing the oil, plugs, wires, breaks, belts, hoses, and bearings. He watched videos and learned how to do all the work himself. By the time he's done, he'll have a car that he loves, is paid off, and he'll appreciate it enough to treat it right.

To me, that's a better lesson than aquiring debt.

[Shmokey.]

I am a 16 year old kid that bought my first car the other day. It is a 2004 Toyota Corolla with 148, 000 MI and it runs very smoothly. I worked for 2 years in a cafeteria to get the money and I am very happy to have my first car.

[jnal]

I trad an article recently that said people are turning back to hotels instead of airbnbs because the cleaning and other fees have made them more expensive by comparison.

[RichardRietdijk]

Her “free car” is about to become an “expensive education”

[narrowroad]

My son drives my old car that I bought with cash. He was cast in a national commercial and made $60k for four hours of work. Instead of buying a new car, he built an ADU in our backyard, rents it out and receives $1300/mo in rent. (Not airbnb) That’s a 26% return on investment. He went to community college and a state school and is graduating with ZERO student loan debt. He still drives my old car. I’m so proud of him.

[seancantwell]

I spent over $20, 000 on an older but nice truck. My sister spent $4, 000 on a not so attractive vehicle but it runs. Now one of us has a $450 car payment and the other has no payments yet we both have a vehicle. Hard lesson learned.

[lynnettep]

My daughter needed a car that was reliable, as I lived in another state. But she just turned 18, was going to college, and had no credit. So I signed for a very basic Mazda truck. Nothing fancy, not even electric windows or electric doors, seats two. That was in 2008, she never missed a payment, had oil changes regularly, always had insurance, AND she’s still driving it today, in 2024. I’m very proud of her. She rocks!!

[ORIGINALwhatnow]

"Arbitrage is Greek for I am stupid" 🤣

Ramsey quote of the year.

[lfuentes]

I’m proud to say we paid cash for both our kids used cars. Thanks to Dave’s snowball. I’m so glad I read the Sunday paper where I found your advice 26 years ago.

[tmgha]

My son worked endless hours as a waiter in a 2 story restaurant to buy his own car and couldn’t wait to tell me I was right about how good that would feel. He’s so proud and feels empowered knowing he did it all by himself. That’s what our kids need, to see how much their own effort and energy is worth so they can be successful, happy, fulfilled adults.

[barnabusdoyle]

I know 3 people who bought homes to run as AirB&Bs. One of them had a tenant steal everything out of the house, than realized the ID, credit card and tenant information were all fake so recovery was impossible. Another one of them had a really hard time finding tenants for the property so turned it into a standard rental. The third one did ok with the property, but never had a tenant during the winter so had to build a huge war chest for the mortgage during about half the year.

AirB&Bs are definitely not the sure thing that people think they are.

[DelaCroix]

I’m 58, driving a 95 Nissan truck and a 96 Nissan Sentra. My annual salary is $100, 000. Every time I drive my old truck someone asks if it’s for sale… Thank you Dave for your encouragement to live freely! It’s a blessing to be able to give money to others when you are lead by God to do so.😊

[amsluv]

My dad never taught me any of this. None of my family taught me how to set myself up for life. I think this is something we should teach in high school!

[weepingangel]

For people who don’t get it, her “plan” is to use the 7000 as a deposit + furnishings for an apartment, get it at a reduced cost from the landlord and then rent out the place on air bnb (landlords approval). You will have to have it rented out at a certain percentage just to break even, combined with costs of maintenance, repairs and any taxes on profits you are looking at VERY slim margins at best, this 14% ROI is a dream.

[alvincyt]

This was how I bought my first car: I had more than double in cash, the dealership offered a $1500 rebate if I signed up for a loan, so I did and instantly got the extra discount.

Then I paid off the balance next week.

[greg_]

"I mean, he's so proud" had me howling. I love Rachel.

[dave_cj]

Finally, somebody is calling the stupidity out loud. 👍

[brooklyn_beLAA]

Rachel’s smile knowing what Dave was about to unleash is underrated comedy that i needed 😂