Thread: My sig explained (finally..and it's a fricken' novel)

Originally Posted by gameboy

that's all you take home in the IT field? i have a Assoc. in Internet technology, but i work at a sawmill as a skilled laborer(machine operator), and i make more then that

Hah! I am a Hardware Specialist and only net 1590 a month, 24,000 a year

Next step is Network Admin (which I pretty much do everything now) at $30,000

Originally Posted by gameboy

that's all you take home in the IT field? i have a Assoc. in Internet technology, but i work at a sawmill as a skilled laborer(machine operator), and i make more then that

Wizard's been awfully quiet (how strange!). But those salary figures are from his wages in Mississippi. He has since relocated and has increased his salary, if I'm not mistaken.

I'm with Jake - Ramsey's a tool, but a marketing genius. His advice won't help anyone who doesn't want to work their entire life. Most of us follow the 40/40/40 rule. Work 40 hours a week for 40 years to retire at 40% of our salary. That doesn't make me look forward to living, let alone retiring. But Ramsey's approach is the safest... as long as the economy is perfectly stable and your job can never be outsourced AND you never lose your health.

Originally Posted by R32 JUhl

Wizard's been awfully quiet (how strange!). But those salary figures are from his wages in Mississippi. He has since relocated and has increased his salary, if I'm not mistaken.

You are correct.

Originally Posted by R32 JUhl

... as long as the economy is perfectly stable and your job can never be outsourced AND you never lose your health.

This is not accurate, because it makes it sound like other methods will not be affected by these things as well. (note that the "you" in the rest of this post is the plural form)

Let's talk about the health portion first:
You need health insurance. Ramsey does NOT tell you to forego health insurance in order to pay down debt. He teaches that you should get health insurance that has high deductibles with high caps on coverage costs. The plan I have, for example, pays 100% of my medical expenses after the first $2000 if I were to get hit by a bus--or get cancer, or any other condition that would require long-term rehabilitation.

Now onto the stability:
If the economy goes south or you lose your job, a Ramsey follower will be in a much better position than someone who is in debt up to their eyeballs. With no payments and 6 months of expenses (~$10,000) in the bank, a job loss will not send someone into panic mode and cause them to take the first opportunity presented to them. That is what caused me to take the really low-paying job in Mississippi--I had no choice because I had credit card and student loan payments to make, which meant I had to take the first job I could get. With no payments, it does not take all that much money to live. You've got to eat, put gas in the car, and keep the lights on--that's it.

If you've got a car payment, house payment, student loan payment, plasma TV payment, Bowflex payment, credit cards, and other debt, and you lose your job--you're in trouble, even with 10 grand in the bank. You will go through it much quicker than I will, and in desparation you will take a job you hate to "pay the bills."

If you've got rental houses that still have mortgages, you're in even bigger trouble. Let's say the mortgage on your rental is $1400/month, and you rent it out for $2000/month. You did a really good job of screening your tenants and they pay early or on time for 2 years. Then your tenant loses his job or gets sick and stops paying rent. In most states, it takes 60 days before you can send out an eviction notice, and there will be court costs and lawyer's fees in order for you to get rid of these now-bad tenants. By the time they're out, you could be near foreclosure.

If the economy goes south, EVERY investor will lose money, not just the debt-free ones. The cool thing, though, is that there has not been a 10 year period since the Great Depression where the stock market lost money as a whole. Corrections and downsizing are a part of life, but let's say this happens and you've got that nice rental that now no one can afford. Not even you.

Rentals are great when the tenants pay. Daytrading is awesome when pennystocks go up a nickel. The problem lies when those things don't happen.

Ramsey's plan is all about risk management. Oh, and people who retire early die early

Originally Posted by wizardPC

Ramsey's plan is all about risk management. Oh, and people who retire early die early

Not entirely true. Those people who sit around and do nothing die early.
Also there is research done for the retirement age in my line of work. If you retire at 55 the average age of death is 75. if you retire at 65 the average age of death is 68. work that one out.

Originally Posted by wizardPC

If the economy goes south, EVERY investor will lose money, not just the debt-free ones. The cool thing, though, is that there has not been a 10 year period since the Great Depression where the stock market lost money as a whole.

Good investors make money in every market, especially a down market. When the housing bubble pops, I sell my rentals. When the layoffs and subsequent foreclosures begin, I buy.

It is all about risk management and for 99% of the populace, Ramsey's planning methods are spot on... and that's why 95% of the world's wealth belongs to the 1%.

Love ya' Wizard! I've been tracking Anti-promotions. He's been behaving!!! Oh, and I figured out how you got his full name. That site showed us we needed to do some work on some of our website registrations.

Well fellas, they screwed up my paycheck so instead of the 80 hours that I normally get, I only got paid for 33 hrs.

Fun times!

charge them interest.

Originally Posted by Enforcer

charge them interest.

Worth a try...

Terran