I never once heard Ramsey explain that the US Dollar loses 2 to 3% value per year due to inflation. BTW inflation is also compounded. If you have a 2% interest rate but your currency has inflation of 3% per year you are still losing 1% per year of the value of your money to inflation. Make sure to thank the Federal Reserve folks for expanding the fiat currency supply every year. Oh you need to also get a 3% per year raise at your job to maintain your standard of pay and need to get a 3% interest rate on your savings to maintain the value of your savings. Do you guys get a 3% per year raise and 3% per year interest rate on your savings?
That's all nice and dandy, but where can I get a 10% return?!
He should do an example for if you stop drinking soda and invest that money how much you could have by the time you retire.
starting with the class of 2016, we should make this mandatory for every 18 year old out there that just graduated from high school, this should be a law for the class of 2016 (to infinity...) and beyond!
where do we put the money? I am new to this. Index fund? which company? so many questions I can't even process. why didn't I know this earlier
In the last 10 years or so, inflation has WAY outpaced salary/wage increases. The average middle class adult with a family to support CAN NOT spare enough money each month to build any kind of respectable retirement fund. Gas prices (and therefore EVERYTHING PRICES) and healthcare premiums have skyrocketed! In addition, Dave Ramsey lives in a dream world of 12 % returns. When he talks about this, HE NEVER mentions that comissions and fees eat up a good 4-5 percent of that return, and when you consider that inflation costs you 4% per year, you are REALLY getting f'd on your overall returns. Did ANYONE watching this who is older actually earn 12% average annual returns in TAKE HOME on their lifetime investments. If so, I'd love to know how - please post the exact names or symbol of the funds which you bought. Thanks.
How do you start compounding if you are already in debt?
And if you get monthly interest over yearly you make even more
how do you start a compound interest account? and with what company? thanks
I cringe when I realise I didn't start earlier. I didn't really get serious about money till my early 30s.
But think about it, if they taught you this at school, you wouldn't take out loans and get into debt and you'd be conservative about how you spent your money. In other words, you would have a financial mind of your own.
The government or whoever runs things wants you in debt, in servitude and totally reliant on the state.
It does not want you to be empowered. It wants you to be ill and poor but just well enough so you can keep the "corporatocracy" going... buying crap you don't really need and cannot afford.
um, am I the only one that learned this in 10th grade math class?
im 29 is it to late for me , why didn't they teach this in school , i hate ontario education system damn you mike harris!!!!
Guess I better start. I'm 19. also his course is required to graduate my highschool.
This is one reason I recommend Dave Ramsey's Financial Management Course for my clients.
My wife and father have averaged 16% the past two years in their 401Ks. Anyone can get that return right now in their retirement accounts.
Good thing I'm learning it in middle school!
10%. Where the bloody hell are you going to get a 10% return on ANYTHING?
Banks getting 10% from you? Of course. Easy. They'll go up to 33% on your credit card.
You, on the other hand. Bwa ha ha ha ha. You're lucky to get a stable 5% or less on anything.
I know of a system that works similar to this. If you want to know more email me at darahn2000@yahoo.com