Quote:
Originally Posted by Bearcat
Isn't the emergency fund step one of his plan, too?
You're in debt. Likely don't have any savings. You're getting charged insane interest on credit cards.
Just ignore that for a few months is step one?
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Meh. I'm not necessarily opposed.
People that get in REAL shit such that they need Dave Ramsey are probably compulsive/addicted/some other behavior that limits their capacity to look at the thing objectively. Accordingly, Ramsey's stuff is psychological as opposed to mathematical. It is not solving for optimal returns, it's designed to eliminate failure.
Accordingly, someone that is in a mess, then they have some sort of unexpected expense, and they have to stick something on a maxed out credit card, it can kick some people out psychologically.
I don't hate it. I heard someone say once that "not having an emergency fund is an emergency" Particularly the people that can absolutely not handle credit cards or debt. Again, people that can see their situation objectively don't need Ramsey.
I didn't know the $1,000 was only for early on stuff.