Thu, 2006 Jan 12
Financial Peace
I’m reading Dave Ramsey’s Financial Peace, whilst Mel and I are reading Robert Kiyosaki’s Cashflow Quadrant. The latter is the second in the Rich Dad series we have read, after Rich Kid, Smart Kid. For reasons that ought to make a later article, I really like Kiyosaki’s books, and have learned a lot from them.
I’m reading Ramsey’s classic: 1) as a contrast to the Rich Dad series; and 2) because many people I respect have said good things about it.
I didn’t come into it expecting to like because I have liked Kiyosaki’s books and had enough background knowledge to know this would be different, and because it seems that people who like Dave Ramsey are into flipping homes, while I’ve yet to hear of anyone making money that way.
Ramsey, naturally, has some good things to say. Having 3-6 months in savings makes a lot of sense to me (Kiyosaki recommends 1 year), and getting out of personal debt also seems wise. And there it ends.
Dave Ramsey says all debt is bad and that savings is the best investment. Now here’s my way bid red flag: He uses a minimum of 6% return on savings to prove his point. I don’t get that. I don’t know where anybody would get that. He proposes that just by saving you can make lots of money. My saving won’t beat cost-of-living increases.
The second is he sounds like a bitter old man. Kiyosaki seems to be full of fun and life. Ramsey seems to be head for the hills and bitter about his life. That makes me…disinclined to take his advice. More to come, maybe. Certainly, I should elaborate and give examples. For the moment, I just wanted to write. Apologies to anyone looking for a useful review.
