I'm sure ol' Dave has been discussed here at the Dollar Stretcher numerous times, but I'm not as regular here as I'd like to be and I've probably missed those discussions.

 I finally went to the library yesterday and checked out The Total Money Makeover.  Stayed up last last night and read the entire book.

 Wasn't as great as I thought it would be.  I'm sure it does work for A LOT of people.  In fact, I know it does because it is highly recommended on a lot of frugal blogs and sites I visit.  But, to me, it seemed a little impractical.

 There was somewhere in the book where Dave said (paraphrase) ".......most of you should be able to save $1000 in a month.....".   That's going to be impossible for a lot of people!  I know he is counting on everybody selling their cars, homes, etc.  but what about people who are already living very frugally and have great mortgages and car loans that must be paid?  Then there are variables like utilities, food, medical, insurance (car, home, life), etc.

I could totally see how the book would be helpful to those who have been blowing money right and left, without a clue, but it doesn't seem to address the needs of those of us who have already embraced frugality.

Oh, well.  Just my two cents worth.  What are your thoughts?  And what books have you found helpful?

Dolly77, I haven't read the book the total money makeover but used to listed to Dave Ramsey on the radio he had some good points. I know he is into selling cars,homes but what would we do without a place to live? He is also into people working 2 jobs for some it isn't possible how are you going to work 2 jobs without a car or public transit when it is to far to walk.  I agree with you about the people who are just blowing their money but for those of us that aren't saving a $1000.00 per month would be a challange with all of our other bills I know everyone should save something but when you have cut back every nook and cranny you can I just don't see saving that much money per month in this household.

dolly77:

 There was somewhere in the book where Dave said (paraphrase) ".......most of you should be able to save $1000 in a month.....".   That's going to be impossible for a lot of people!  I know he is counting on everybody selling their cars, homes, etc.  but what about people who are already living very frugally and have great mortgages and car loans that must be paid?  Then there are variables like utilities, food, medical, insurance (car, home, life), etc.

 

 I don't have my book handy but doesn't he say to put aside each month towards a $1000 min emergency fund?  I don't recall him saying to do it in one swoop.

2ndGenGranola:

I don't have my book handy but doesn't he say to put aside each month towards a $1000 min emergency fund?  I don't recall him saying to do it in one swoop.

Yes, the ultimate goal is at least $1000 in an emergency savings fund.  Here is the passage I was referring to in the book, where he assumes most people can save this in month.

"Twist and wring out the budget, work extra hours, sell something, or have a garage sale, but quickly get your $1000.  Most of you should hit this step IN A LESS THAN A MONTH."  pg. 105

I

Maybe it would help if you looked in the front of the book and see what the current copy right date is. If the edition you're currently reading is 2007 or earlier, I would have to say that some of the information would have to be adjusted to fit the current situation many find themselves in now. If the edition you are reading is 2008/09 then I don't know what to tell you.

dolly77:

And what books have you found helpful?

I like Suze Orman's no nonsense approach and yes she does sound like she lectures constantly. Her audience was the young professional types who were blowing money on toys, wardrobes and dinners out. Still I found her book targeted to women (Women & Money) especially helpful. I discovered that my husband had everything figured out in case something happens just the way Suze recommended.

dolly77:

 There was somewhere in the book where Dave said (paraphrase) ".......most of you should be able to save $1000 in a month.....".   That's going to be impossible for a lot of people!  I know he is counting on everybody selling their cars, homes, etc.  but what about people who are already living very frugally and have great mortgages and car loans that must be paid?  Then there are variables like utilities, food, medical, insurance (car, home, life), etc.

He might have been raising the bar high knowing people would be doing well if they were able to save half that amount. However as you say, when you are already doing all you can, trying to save $1000 because he says you should be able to can be discouraging. I say save whatever you can and try not to touch it. Its better than not saving at all.

"I could totally see how the book would be helpful to those who have been blowing money right and left, without a clue, but it doesn't seem to address the needs of those of us who have already embraced frugality."

I have said much the same!

I found once I tossed out all Dave's comments meant to get me to stop using debt since we didn't and adjusted his figures to suit our needs that his steps to building an emergency fund, pay off debt and build savings was fairly sound.

 

dolly77:

Twist and wring out the budget, work extra hours, sell something, or have a garage sale, but quickly get your $1000

I became annoyed when I read his book but I took a deep breath and realised he was speaking to the average person who has gotten themselves into credit card debt.

My husband was working more than 80 hours and still does often, I stay at home to homeschool and make things from scratch and at the time even was hand washing clothes in rain water which saved us money, errrm when going so far as to stretch shampoo by doing some washings in baking soda and hand washing clothes in rain water I had to wonder just how much more budget stretching I could do and when we get rid of unwanted things it is to toss them into the trash because that's all it's good for.

I just had to adjust and apply.

 

dolly77:

There was somewhere in the book where Dave said (paraphrase) ".......most of you should be able to save $1000 in a month.....".   That's going to be impossible for a lot of people!  I know he is counting on everybody selling their cars, homes, etc.  but what about people who are already living very frugally and have great mortgages and car loans that must be paid?  Then there are variables like utilities, food, medical, insurance (car, home, life), etc.

It depends on the individual's circumstances. Someone who is the sole wage-earner supporting a wife and three kids on $40k a year is in a far different situation than a childless couple with dual $80k-a-year incomes. Obviously the latter should have little difficulty saving $1k/month but I'd bet it's a lot harder for the former. The cost of living in a given area is another variable that simple "numbers" don't address. In the Washington, DC area one cannot find an efficiency apartment for less than $1,000 a month, or a small condo for less than six figures.

Go to Ohio, WV, PA or a number of other less expensive places and one can buy a very nice single family home for less than six figures. Probably not luxury living but certainly livable. A two-bedroom apartment can be rented for $500-$600 a month or even less in some places. Lotsa luck finding that in New York City!

One good book is "Your Money or Your Life" by Joe Dominguez and Vicki Robin, ISBN 0-14-08678-0. It is about taking control of your own life and making decisions about what to do with what money you do have, or expect to have, to get to where you want to be. It is about planning ahead, and making decisions that will affect your life for the rest of your life.

It is about taking a step back from the day-to-day concerns of mortgages and car payments and utility expenses and saying to yourself "Where do I want to be in 20 years, and what is my plan to get there?" It is about deciding to give up buying a new car or boat or plasma TV and saying there are other things to do with that money that could have far more lasting consequences. It is about living below one's immediate means to have a better life in the future.

It means that if you want to travel, does doing so mean that you have to stay in hotels and dine in the restaurants? Or could the same objective be accomplished by camping in a tent and cooking one's own meals from locally purchase food? Will the travel experiences be much different? The money thus saved can be either invested, spent on other objectives, or more travel. It's about making conscious decisions about what is important to you and allocating your available financial resources accordingly.

And of course, it's about having the maturity to realize that fulfilling every "I wanna..." by taking out loans or charging on credit cards is digging a hole that is extremely difficult to climb out of. Don't ask how I know that.

I have always thought that.  He does have good points but most of us don't have $100's extra to throw towards debt.     Its like when they show people on Oprah etc  they are always over spending so much it is easy to find the money.

That is why I like Gail from til debt due us part more. She speaks to a wide range of people.  I read her blog everyday. Very down to earth and sensible.  She is pretty blunt. if you don't have the money don't buy it.

Does Dave Ramsey say that a mortgage is an acceptable debt or not? I can't remember. Either way, we've gotta pay to live somewhere, either rent or a mortgage. May as well use that monthly payment to get equity, IMHO.

I know there are some financial advisors that say we should save up to pay cash for a house. I just don't see that being a practical goal. My family would never get there!