Iowa | Itchy - 3/28/2011 18:43
That's fine, you can have your opinion.
Just a thought for you. If significant numbers of folks followed Dave Ramsey preachings "live debt free", why would there be a need for banks and other lending institutions in this country?
He is a simple minded fellow.
I am glad you are doing your part to "save" banks.
I am doing my part to not need them. I am more selfish than you as I care about ME, not the banks, but I sure am glad there are such unselfish people as you to "save" them!
I guess I am simple-minded, too--just like Dave Ramsey! I'm glad to be considered in the same breath as him!
Others have hit the nail on the head--Dave speaks to the masses--those working 8 to 5 for someone else. We farmers can live personally how he preaches and it WILL help us accumulate more wealth! I have 80A that was paid for with the money saved by never a new vehicle or fancy vacation, etc. By living frugally one can build wealth--it's an economic fact.
But I agree wisely-borrowed money is a wonderful tool and can also build wealth if you always keep the ROI in mind when deciding to borrow.
Is there a positive ROI on buying the farm next door? (probably--maybe not right now, but over time, yes) Is there a positive ROI from building better or more livestock facilities (most likely) Is there a positive ROI from upgrading planters? (probably) Is there a positive ROI from borrowing input money (probably)
In my case, most of my net worth is the result of using someone else's money sparingly when the odds were in my favor. Without the ability to borrow operating funds I would be nowhere.
Borrowing money because it is "cheap" (low interest rates) is unbelievably foolish, but a trap the financial institutions use every day.
Is there a positive ROI from buying a brand-new car or pickup with borrowed money? Absolutely not--I cannot be convinced otherwise--don't even waste your breath.
Is there a positive ROI from following your favorite team to a bowl game and putting the trip on a credit card? Absolutely not!
Is there a positive ROI from the $2000 tires and rims on your pickup? Absolutely not!
OK--here's a different one. Is there a positive ROI to a lake home you pay CASH for after decades of frugal living? Probably, from an investment standpoint, but realistically, probably not. Did I do it? Yes, I did, but with CASH-- I wanted it 5 years ago, but waited until I had the cash, AND my other financial houses in order as well.
"kids" need instant gratification
"adults" wait, scrimp and save, etc--then when they pay cash, they appreciate what they have accomplished. It doesn't take a bank to help do that.
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Rich dad poor dad or dave ramsey?
