Comments on: Comment From a Reader Regarding My Dave Ramsey Post http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Thu, 24 May 2012 21:18:34 +0000 hourly 1 http://wordpress.org/?v= By: a tour through my blogroll: all financial matters to cleverdude : plonkee money http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/comment-page-1/#comment-165965 a tour through my blogroll: all financial matters to cleverdude : plonkee money Sun, 04 Nov 2007 17:42:16 +0000 http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/#comment-165965 [...] a comment from a reader about my dave ramsey post - JLP has a loads of great reader inspired posts, and this one is really about retirement and credit card debt rather than Dave Ramsey [...] [...] a comment from a reader about my dave ramsey post – JLP has a loads of great reader inspired posts, and this one is really about retirement and credit card debt rather than Dave Ramsey [...]

]]> By: beefstooge http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/comment-page-1/#comment-83009 beefstooge Fri, 02 Mar 2007 18:09:26 +0000 http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/#comment-83009 I agree with Dave Ramsey on most things, but... For some people, the 401k contribution is the only good habit they have. Don't quit the good things--quit the bad things. Stop using credit cards and change your lifestyle. Reward yourself for good behavior by giving yourself a 401k raise at certain milestones. I agree with Dave Ramsey on most things, but…

For some people, the 401k contribution is the only good habit they have. Don’t quit the good things–quit the bad things. Stop using credit cards and change your lifestyle. Reward yourself for good behavior by giving yourself a 401k raise at certain milestones.

]]> By: tiredofbeingbroke http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/comment-page-1/#comment-82265 tiredofbeingbroke Thu, 01 Mar 2007 21:57:34 +0000 http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/#comment-82265 I am currently in a situation where I have thousands in debt with credit card, car loan and student loans. I personally do not see the issue with the debate. I will not give up contributing to my 401K. I contribute the minimum to get the employer match because I like FREE and because I will never be able to get that back. Plus, for the small amount that am contributing to my retirement pre-tax giving that up would increase my tax bill and the difference in take home pay would probably not put a huge dent in my debt to make it worthwhile. I am also saving for an emergency fund while paying down debt. Why? In September I had a car accident and realized the wisdom of having a mini-efund so that the credit card cycle does not continue. I am currently in a situation where I have thousands in debt with credit card, car loan and student loans. I personally do not see the issue with the debate. I will not give up contributing to my 401K. I contribute the minimum to get the employer match because I like FREE and because I will never be able to get that back. Plus, for the small amount that am contributing to my retirement pre-tax giving that up would increase my tax bill and the difference in take home pay would probably not put a huge dent in my debt to make it worthwhile.

I am also saving for an emergency fund while paying down debt. Why? In September I had a car accident and realized the wisdom of having a mini-efund so that the credit card cycle does not continue.

]]> By: The Digerati Life http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/comment-page-1/#comment-81864 The Digerati Life Thu, 01 Mar 2007 01:12:07 +0000 http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/#comment-81864 Without the dedication to change one's habits, debt will linger. So yes, lifestyle changes are key -- whether or not it involves having to reshuffle money around and give up the 401K to ease the brunt of paying down debt. I think it depends on each person. If someone feels they are sacrificing too much, they may feel resentful and not stick to the program, so for some people, the sacrifice may end up being that 401K for some period of time just so debt can be paid down. Without the dedication to change one’s habits, debt will linger. So yes, lifestyle changes are key — whether or not it involves having to reshuffle money around and give up the 401K to ease the brunt of paying down debt. I think it depends on each person. If someone feels they are sacrificing too much, they may feel resentful and not stick to the program, so for some people, the sacrifice may end up being that 401K for some period of time just so debt can be paid down.

]]> By: jake http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/comment-page-1/#comment-81779 jake Wed, 28 Feb 2007 20:42:13 +0000 http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/#comment-81779 It seems that everyone is willing to agree that if the father is willing to change his behavior that would help address the root of the problem. Knowing how important 401k contributions are, I would think a short term stoppage is an excellent measure of how committed someone is to getting out of debt. The greater the commitment, the quicker debt will be gone. With no debt, you can make LARGER 401k contributions. Makes senses to me. It seems that everyone is willing to agree that if the father is willing to change his behavior that would help address the root of the problem. Knowing how important 401k contributions are, I would think a short term stoppage is an excellent measure of how committed someone is to getting out of debt. The greater the commitment, the quicker debt will be gone. With no debt, you can make LARGER 401k contributions. Makes senses to me.

]]> By: Miguel http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/comment-page-1/#comment-81719 Miguel Wed, 28 Feb 2007 18:17:06 +0000 http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/#comment-81719 Typo - should read: "...pension assets are insulated from creditors in bankruptcy..." Also, should note that recent changes in the bnkrpcy law make it harder to fully eliminate CC debts. Typo – should read: “…pension assets are insulated from creditors in bankruptcy…”

Also, should note that recent changes in the bnkrpcy law make it harder to fully eliminate CC debts.

]]> By: Miguel http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/comment-page-1/#comment-81718 Miguel Wed, 28 Feb 2007 18:15:29 +0000 http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/#comment-81718 I agree with the folks who think Dad was crazy like a fox and pulled a fast one on the CC co's. The CC debt could be extinguished thru bankruptcy, but the oppty to get the "free" 401K match would have been gone forever if he missed it. And key point - pension assets are insulted from creditors in bankruptcy (I wonder if Dad knew that all along). Having $250K to retire on might not be a enough for Dad, given his over-spending tendencies, but it is far more than most people will have. And guess what - Dad can probably repeat the same technique all over again cause it ain't difficult to get new CC's even with his record. I agree with the folks who think Dad was crazy like a fox and pulled a fast one on the CC co’s.

The CC debt could be extinguished thru bankruptcy, but the oppty to get the “free” 401K match would have been gone forever if he missed it. And key point – pension assets are insulted from creditors in bankruptcy (I wonder if Dad knew that all along).

Having $250K to retire on might not be a enough for Dad, given his over-spending tendencies, but it is far more than most people will have.

And guess what – Dad can probably repeat the same technique all over again cause it ain’t difficult to get new CC’s even with his record.

]]> By: plonkee http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/comment-page-1/#comment-81705 plonkee Wed, 28 Feb 2007 17:36:11 +0000 http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/#comment-81705 I think the words "if he had just cut his lifestyle" are key here. If he had cut his lifestyle then either option would have been ok. Yeah sure, one is probably better than the other but as it is he spent more than he made. And, to paraphrase Dickens, that is the sure path to misery. I think the words “if he had just cut his lifestyle” are key here.

If he had cut his lifestyle then either option would have been ok. Yeah sure, one is probably better than the other but as it is he spent more than he made. And, to paraphrase Dickens, that is the sure path to misery.

]]> By: tinyhands http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/comment-page-1/#comment-81655 tinyhands Wed, 28 Feb 2007 16:38:14 +0000 http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/#comment-81655 Mossy- I would add one more issue to it: Someone who brings someone else down with him. The dad's fiscal irresponsibility is now also the burden of the mom (assuming she's in the picture). Hopefully the reader and any siblings are sufficiently insulated from their father that they won't suffer as well. Mossy-
I would add one more issue to it: Someone who brings someone else down with him. The dad’s fiscal irresponsibility is now also the burden of the mom (assuming she’s in the picture). Hopefully the reader and any siblings are sufficiently insulated from their father that they won’t suffer as well.

]]> By: paul http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/comment-page-1/#comment-81646 paul Wed, 28 Feb 2007 16:19:47 +0000 http://allfinancialmatters.com/2007/02/27/comment-from-a-reader-regarding-my-dave-ramsey-post/#comment-81646 I agree with JLP that people will usually not want to change their lifestyle. I'm not sure if it's ego or peer pressure or embarressment. I did it and it was embarrassingand uncomfortable, but it kept me from declaring bankruptcy. http://extremeperspective.blogspot.com/2007/02/shift-your-thinking-to-reduce-debt.html I agree with JLP that people will usually not want to change their lifestyle. I’m not sure if it’s ego or peer pressure or embarressment. I did it and it was embarrassingand uncomfortable, but it kept me from declaring bankruptcy.

http://extremeperspective.blogspot.com/2007/02/shift-your-thinking-to-reduce-debt.html

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