Anyone ever done this?

I have ZERO CC debt, but a love for getaways, clothes and shoes. Of course I don't believe in driving a beater around, but most points are valid- anyone else ever followed his plan?

I think its the only way I can manage to regrow my Eleanor fund.

 

I listen to him a lot. So does an ex-coworker. He sold his BMW, bought a used car, and cut out some other fluff he was spending. In about a year and a half, he got rid of $50,000 in debt.

Actually I have not listened for a while. I got tired of hearing people saying:

Caller: I only make $20k a year but I actually spend $70k a year. Should I buy a third SUV so my kid can drive to school?

Dave: Don't buy that third SUV for $40-50K.

Seems to be a lot of the same.

Actually I do agree with the guy. I am debt free except for my house. His basic statement, if you don't have the money - don't buy it.

But as far as selling your car now to buy a beater, that depends on different factors. I have driven a few beaters in my life to keep costs under control (and now I have enough to buy an 05). But each scenario is different. Are you making payments? If not, then I would keep the current car and sell it when you get the new Mustang.

As far as trips and clothes, I would think; "which do I want more? Don't I already have enough clothes? Would I look better in those new shoes, or a 2005 Mustang? Would I rather go on a short trip or use the money towards a fun car?"

Those little items can really add up. I am not saying cut everything out. I still have my fluff money to do things with. But I don't go on numerous vactions, or have two-three closets worth of clothes (I think that is partially because I am a guy). But as a guy, I do not go out and buy a new tool every week either.

I fortunately have enough to buy the car up front and will do so. I have heard the other side of the story about financing the car and putting the money in investments. But that scares me. I would rather pay it off. I would worry if I financed and something happens where I need to pay off the car immediately, at that point my investments might be having a bad year and I don't have enough. Or in some people's case, they spend the money on a vacation instead of putting it in savings. Then if the car needs to be paid off, they get screwed, especially if they are upside down.

If a car is financed, I think it should have a large enough down payment to keep it right side up (and enough to keep you right side up thru the life of the loan). But you should also ask yourself, "Why do I have to finance, am I already in too much debt?" If the answer is yes, then you should reconsider buy now and maybe wait.

Good things come to those who wait.

 

I am almost following your lead, but I use cc to pay for everything and pay them off every month. That keeps the credit rating up and gives me accurate expenses for the month.

 

I already did the credit card thing in my early 20s(Hey, I am broke and theres only ketchup in the fridge- but we have CREDIT CARDS! Let's go to disney). I paid em off,closed em and swore never again.

I now pay cash for everything but my car/house. SO I don't spend more than I make, I just have severe stuffitis. I see something shiny and it goes home with me.
As for the olds, it will be paid for soon- I look at it like I already have a car payment, what's the difference? I just can't get the mustang until the olds is paid off- it has 140K miles on it from living in South Alabama, carpooling my kids 60 miles a day to the closest school and working up here(so I moved to cut it out and have driven only about less in the past six months than I did in one week down in the hades hole AHHHHH). A car in spectacular mechanical and look at me condition taking a 2k ding for over excessive mileage, can't do it! I will also not get the Mustang until I have at least 15% to stick down on it and will go through my bank for the rest.

Everything else I have is mine free and clear.

Those people who call in are crazyyyyyyyyy. The books are 80% good advice though.

 

Glad to hear things are free and clear.

My mother-in-law listens to him too, and we both get together and laugh at some of the ridiculous people on the show. But yes, there are some good calls. I have not read his book. I was debt free before him and have been doing good on savings, so I just listen to the radio ocasionally.

I also called his life insurance guy and did get a really good deal when others were higher.