Be Careful Who You Listen To When Seeking Financial Advice

I just stumbled on something on Yahoo Finance called Don’t Get Your Money Advice From Suze Orman, Dave Ramsey: Pound Foolish Author.  Now I’m NOT a fan of Suze Orman, she tells women to hide money from their husbands.  I think that is deceitful and not a way to conduct a healthy marriage. She also seems to talk out both sides of her mouth switching her advice around according to who is endorsing her at the time.  But that is a post for another time!  I am a fan of Dave Ramsey however.  We used his program to pay off over $55,000 in debt even as our income took a dramatic cut when I left the teaching field.  We owe on nothing at all other than our house and we are currently building our net worth year by year.  It is freeing!  In fact I believe in Dave Ramsey’s program so much that I’ve lead the Dave Ramsey course Financial Peace University five times!  So OBVIOUSLY I hit this link.  What DID this woman have to say?

Watch it yourself of course but here were some key points that stood out.  Number one, she says yeah paying off your debt is a good idea but only if you can do it.  WHAT?  Only if you can do it?  Define for me can or cannot do!  I’ve seen people HUNDREDS of thousands of dollars in debt pay it all off.  I’ve seen people with just a few thousand become so discouraged that they just couldn’t!  It is ALWAYS good to pay off your debts in my opinion.  We did it while cutting our income by about 30%.  At first we were $500 a month in the red!  We turned it around!

Dave Ramsey and Suze Orman claim that you can get a 12% annual return on your investments in stocks and equities.  Ms. Olen claims this isn’t possible.  HELLO!  We just got our statement in the mail TODAY and we got a 16.75% on our stock and equities investments last year.  We followed Dave Ramsey’s advice on investing.  No, you can’t get 12% on your money, you can do EVEN BETTER!

She claims American’s networth tanked 40% between 2007 and 2010.  We started digging out of debt in 2007.  Between 2007 and 2010 our network INCREASED over 25%!  If you include the years since 2010 our networth has increased 50%.  That investment snowball is working.  Don’t forget! The stock market tanked in 2008 and yet we still made considerable gains over all of these years.  All while following Dave Ramsey’s advice to get out of debt, save for emergencies, and invest!

There was one thing I did agree with.  She says it isn’t a good idea to buy real estate with no money down.  Yes, truth!  Actually in a perfect world we’d just pay cash and leave out the banks.

So what’s my point?  You can live debt free, you can have emergency savings in the bank, you can invest and get a very good return on your money.  Don’t let anyone tell you different!  Hey if you have a getting out of debt story to share I’d love to hear it!

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