Final Thoughts on Ramsey

I've thought more about finances in the last two years than I have in my previous thirty-five. Some final thoughts:

1) I am amazed at how pervasive debt is today. School debt, car debt, and a thirty year mortgage (or fifty????!!!!) is the norm. That is a lot of money flying out the door each month. A colleague of mine leased a new car recently. We're close and he knew of our plan. He said "I don't consider a car payment an option. You have to have one and I'll have one the rest of my life." We've decided to get off this debt merry-go-round.

2)The greatest feeling about sloughing off our debt like so much dead skin is the flexibility it has given us. We can now respond to impending crises by rechanneling our money from investments to stockpiling cash when the demands of life appear. We can respond to immediate crises by using our emergency fund. That flexibility feels very liberating.

3) We also have more money to give. Ramsey is big on tithing and while we've been on his plan we've given money to the work of our church like we've never been in a position to give before.

4) My profession is infested with debt. Student debt is rising astronomically, with the average undergrad completing their degree with $19,000.00 in debt. Life is no better for graduate students either. I am concerned about students who go heavily in debt to get into a profession that won't allow them to pay it off in a reasonable length of time.

5) Ramsey's plan isn't perfect. My main criticism is that it is pretty cookie-cutter in its approach. He is a lot stronger on getting out of debt than he is on investing. Probably because so many more people need to get out of debt than they need to invest.

6) Finally, I think one great appeal about Ramsey is the power of his personal narrative. He was a millionaire before the age of thirty, lost it all, and was a millionaire again before forty. The experience of going bankrupt seared into his personality an aversion to debt. Being anti-debt is now a crusade for him.

His plan is simple, but not easy. It is also is not instant wealth or get-rich quick. It is methodical, and takes decades to achieve financial goals. It is simple, but not easy.

As he says "I sell crock-pots, not microwaves."

Why not give it a shot? I would recommend starting by reading The Total Money Makeover.