Thread: Money Dave Ramsey
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Old 04-22-2025, 03:33 AM   #58
Sassy Squatch Sassy Squatch is offline
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Quote:
Originally Posted by Buehler445 View Post
A couple warnings if you go the Dave Ramsey route. He’s just flat wrong on a couple things.

He recommends a $1000 emergency fund. This is criminally low. Any emergency in 2025 is going to cost way more than $1000. Most places recommend 2 months salary. Some places 6. To me that’s a different thing. But more than $1000. That’s shitty dangerous advice from Ramsey.

He also recommends an 8% withdrawal rate in retirement. Also shitty dangerous advice. Most common recommendations are 4. The average return on the S&P is indeed 8%, but Ramsey doesn’t account for inflation, budgeting errors or things like sequence of returns risk (early losses in retirement can wreck a program).

Don’t do those things.
Huh? That's absolutely false about the emergency fund. That's only a starting emergency fund until you've gotten your shit a bit more together and then he advocates for AT LEAST 3 months of expenses, preferably 6 months.
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