On the inflation front ...

[CLT65]

Out of curiosity, how does his position of paying off debt and living within your means put him out of touch?

Granted, his philosophy falls a bit flat for higher income earners, but when is having no bad debt a bad thing?

I don't have a dog in this fight, I'm just curious.

I agree with him on those principles, always have, and we've stayed out of debt, other than the mortgage. Excellent ideas and I appreciate what he's done.

My thoughts about him being a little out of touch just come from noticing changes in tone in his show over the years. I have to remind myself that he's talking to people who aren't particularly responsible with their money, and not me, when he effectively say you just need to buckle down and work harder, live within your means and pay off debt. Then he has numerous callers who have family incomes of $250k+, and he talks like it's some kind of average, middle class thing. I have to wonder if he knows how hard it is for the average middle-class, blue-collar guy to earn 100k?

Granted, my specific circumstances are not average. I work my butt of to make what used to be considered a pretty good income, pinch pennies like crazy, but due to family/health issues still can't get ahead. Maybe I'm just a little sensitive about it because I've been following his principles for many years. He talks big money and investing, things that don't exist in my little world. I don't know, maybe I'm the one who's out of touch.

 

[VinnieBoomBah]

Ramsey and folks like him and Suze Orman are selling a "product" and they tailor their advice to what the people that they are trying to profit off of want to hear. Not that the advise is always good for their target audience or even most people, but they don't really care as long as their ratings stay up and what they are selling is good for them

 

[Member 24198]

I agree with him on those principles, always have, and we've stayed out of debt, other than the mortgage. Excellent ideas and I appreciate what he's done.

My thoughts about him being a little out of touch just come from noticing changes in tone in his show over the years. I have to remind myself that he's talking to people who aren't particularly responsible with their money, and not me, when he effectively say you just need to buckle down and work harder, live within your means and pay off debt. Then he has numerous callers who have family incomes of $250k+, and he talks like it's some kind of average, middle class thing. I have to wonder if he knows how hard it is for the average middle-class, blue-collar guy to earn 100k?

Granted, my specific circumstances are not average. I work my butt of to make what used to be considered a pretty good income, pinch pennies like crazy, but due to family/health issues still can't get ahead. Maybe I'm just a little sensitive about it because I've been following his principles for many years. He talks big money and investing, things that don't exist in my little world. I don't know, maybe I'm the one who's out of touch.

Yeah, if he's talking $250k as normal middle class he's definitely out of touch. Median household income is around $75k, and you're definitely not buying much at that salary.

 

[VinnieBoomBah]

I have to wonder if he knows how hard it is for the average middle-class, blue-collar guy to earn 100k?

Hard enough that around 65% of Americans don't earn that much

 

[Cavedweller]

Mailed a small bubble envelope today with a total weight of 1.4 oz. Not express or anything, just regular old 3 day delivery. No proof of delivery or any other extras. The charge was $5.10. Damn!

 

[CLT65]

Yeah, if he's talking $250k as normal middle class he's definitely out of touch. Median household income is around $75k, and you're definitely not buying much at that salary.

To be fair, I know he has people calling up who are scraping by at $30k, and he does his best to help them too, so he probably just tailors his advice to the caller. It just grates a little when he talks to these high earners like they're the average Joe. I haven't listened regularly for quite a while, but it did seem to be going more that way when I did; he'd be talking big money and investing for high earners, and I couldn't relate.

I do like his advice that I wish I'd taken earlier in life: If you want to earn more money and get ahead, don't just gripe about it and feel sorry for yourself. Get some training, make yourself more valuable, put in the effort, get a better job!

Yes he's selling a product, but based on listening to him since way back, I do think he's a sincere guy who does want to help people (and make a profit selling a product at the same time).

 

[Member 24198]

To be fair, I know he has people calling up who are scraping by at $30k, and he does his best to help them too, so he probably just tailors his advice to the caller. It just grates a little when he talks to these high earners like they're the average Joe. I haven't listened regularly for quite a while, but it did seem to be going more that way when I did; he'd be talking big money and investing for high earners, and I couldn't relate.

I do like his advice that I wish I'd taken earlier in life: If you want to earn more money and get ahead, don't just gripe about it and feel sorry for yourself. Get some training, make yourself more valuable, put in the effort, get a better job!

Yes he's selling a product, but based on listening to him since way back, I do think he's a sincere guy who does want to help people (and make a profit selling a product at the same time).

I have a friend that between her and her husband make somewhere in the $150k range combined. The get out of debt doesn't necessarily apply the same, so I could see him tailoring his response.

 

[coltemp]

The biggest issue many have with Ramsey and some others like him. Is while in principle he has good advice for too many people who have no control over their spending habits. His advice is sometimes outright stupid. He has no clue about tax planning (probably does but he just ignores it). He gives terrible advice at times about debt. Some debt is not as bad as others. Paying off the small and debt snowball is a nice idea and fpr some the right solution. But if you have debt it really depends on what rates are at. While I would love to be debt free including the house. I would be stupid for paying down the mortgage right now. I am debt free except the mortgage BTW. But with a mortgage at 2.85% and general saving earning north of 4% his paying down the mortgage is just plain dumb. Put it in savings and earn more. Now when the rates goes back down to near 0 I will be paying off the mortgage faster again.

The other area he is truly clueless about is wealth preservation. He is your typical financial guy in the USA who has no wealth stored in any Precious metals. And his comments about those PM's are just as out of touch with reality and some comments about other items without taking into account the tax burden.

His advice is good if you have spent way more than you are earning, but there is plenty of other advice that is as good or better than his one size fits all approach.

 

[Certaindeaf]

Thirty million new illegals in the last three years makes buying anything more problematic.. supply /demand and all.

 

[arakboss]

Housing is already in short supply and we are adding more people, through births and immigration, that need housing. This will not lead to cheaper housing cost. Build baby build is the answer or decrease the size of the population.

There are many ideas here, some I agree with, some I don't.

How Do We Solve the Affordable Housing Crisis? — Divided We Fall

Potential solutions include eliminating affordable housing subsidies, expanding land use permitting, and increasing new home construction.

dividedwefall.org

Available land is a big problem around here. UGB need to be chucked and land use restriction eased. That will be start to getting more homes built.

Lenders should also be allowed more freedom to make loans where multiple families wish to be on a single loan.

Many existing homeowners will be resistant to ideas that could potentially lower their home values or increase population density in their area. Lots of NIMBY attitudes should be expected.

 

[Certaindeaf]

Housing is already in short supply and we are adding more people, through births and immigration, that need housing. This will not lead to cheaper housing cost. Build baby build is the answer or decrease the size of the population.

Or live 14 to the room like the illegals do.

 

[arakboss]

Or live 14 to the room like the illegals do.

If the rest of Americans did that, it would be another solution. Probably not going to happen.

 

[arakboss]

Oregon has an extreme housing shortage. Here’s what could be done

Experts say there isn't a quick fix to undo decades of underbuilding. But there are steps policymakers and Oregonians can take.

www.google.com

 

[Jay Walk]

i have to say that, every time charts like the above come out, I have to call BULL-bubblegum! Albertway's price on Ground Beef is over $7,00/LB! That's not 25%! Winco burger's at $5.50+/-/LB. And IF, Pork Butts go on sale, they are $1,99/LB, NOT $.99/LB, like before Joe and the Ho shafted our country!

Proof that people believe what they are told.

The Nazis wanted Germans to support the Nazi dictatorship and believe in Nazi ideas. To accomplish this goal, they tried to control forms of communication through censorship and propaganda. This included control of newspapers, magazines, books, art, theater, music, movies, and radio.

And we all know how that turned out.

 

[monkeybutler]

A friend of mine who likes guns is now spouting the "greedflation" thing. He says it's actually the big, greedy corporations at fault, not true inflation..

If that becomes tiring, just remind the guy that Kamala has been making very similar assertions.

Always interesting seeing the convergences of populist rhetoric. When I hear "corporate greed" I stop listening.

 

[Mikej]

Proof that people believe what they are told.

The Nazis wanted Germans to support the Nazi dictatorship and believe in Nazi ideas. To accomplish this goal, they tried to control forms of communication through censorship and propaganda. This included control of newspapers, magazines, books, art, theater, music, movies, and radio.

And we all know how that turned out.

It seems like the government isn't controlling the media. But they sure won't come out and say that the a large section of the media is spewing nothing but lies.

Three, going on four, generations have been raised by money from the government. The Government will see that you have everything you need to live.

 

[JRuby]

I have lived in my home since August of 2015 - since then the value of the property has doubled not counting the work we have done on it. I would have a hard time purchasing my home today at its current market value with my current salary.

When my wife and I first started out in the early 80's we had to skrimp and find cheaper ways of doing things. It was not easy for us either. We did not live in a good part of town. We did the best we could and as time went on we purchased and sold homes to get to where were at now. Why does the younger generations think they should be able to step into a home from the begining that resembles a home thier parents took 40 years to get to.

 

[MTpockets]

One interesting thing about the value of property increasing over time is....that much of that current perceived increase in property value...is actually the decreasing value of the U.S. Dollar. The same thing can be said about those gains on stocks and bonds... realize those gains and you will pay the "inflated gains tax"....

Another indicator of actual inflation... is the cost of labor. The majority of the new contracts/salary increases/employment offers that I see are between 30%-40% increases from the rates of just 3-4 years ago. If you are in a competitive area and in a competitive field, you need more than a 3% yearly pay increase to keep (or catch) up with dollar devaluation.

Back to housing... I think the lady in that video was speaking of this type of situation.

It would take a $40,000.00 down payment to get into this house... well, if it hadn't been destroyed in a fire and if it could pass inspection for a loan.
I guess a person could look at the bright side.... That $40,000.00 down payment is only $28,500.00+/- in 2020 dollars.

Edit to add: I wish everyone the best in adjusting to the current economic situation. Don't give up, set your goals and keep hustling.

 

[JRuby]

One interesting thing about the value of property increasing over time is....that much of that current perceived increase in property value...is actually the decreasing value of the U.S. Dollar. The same thing can be said about those gains on stocks and bonds... realize those gains and you will pay the "inflated gains tax"....

Another indicator of actual inflation... is the cost of labor. The majority of the new contracts/salary increases/employment offers that I see are between 30%-40% increases from the rates of just 3-4 years ago. If you are in a competitive area and in a competitive field, you need more than a 3% yearly pay increase to keep (or catch) up with dollar devaluation.

Back to housing... I think the lady in that video was speaking of this type of situation.
View attachment 1944827
It would take a $40,000.00 down payment to get into this house... well, if it hadn't been destroyed in a fire and if it could pass inspection for a loan.
I guess a person could look at the bright side.... That $40,000.00 down payment is only $28,500.00+/- in 2020 dollars.

Edit to add: I wish everyone the best in adjusting to the current economic situation. Don't give up, set your goals and keep hustling.

Was that the price before the fire?

 

[MTpockets]

Was that the price before the fire?

I doubt that it was for sale before the fire. Think the pocket of homes in that area range in estimated values of ~$250K-$300K...would rarely find one for sale...currently not a very desirable area.

My previous post wasn't in response to your previous post. I typed all that garble out to shed a lil light on what the current batch of young are encountering when leaving the hen's nest. Rapidly Devalued Dollar, Tightening Lending Restraints, Higher Housing & Energy Costs (Rental or Purchased)... They will need to boost their marketability and negotiating prowess...or get comfortable in the basement.

Minimum starting wage, after training, needs to be around ~$75,000.00 or they will be working at break even, or to a loss.