Sure, there’s not a lot of compounding at today’s interest rates but Ramsey is not based on the effects of compounding on savings but upon avoiding the effects of compounding on debt. Today’s savings rates are low but today’s interest rates on debt are still high.
BTW, congratulations. We started Ramsey about 20 years ago.
The things you can achieve following Ramsey are truly impressive. We’re retired now and are living very well.
After we paid off all the credit cards, the difference was like night and day. Most of the money was paying for interest. Now we pay them off every month, so the total bill is just for what we actually bought, no interest.
I meet too many Ramsey followers who don’t follow Ramsey. I have one friend who keeps $6000 in his BS1 account while they are going through BS2. He was complaining about the low interest it was earning and I told him “I know where you can get 18% interest on $5,000 of that money. PAY OFF THE DISCOVER CARD!”.
People who lived on credit cards and never had savings suddenly grow a large security glands when they start TMMO. It’s amazing.
For most people it is simple : Start treating your savings account like you now treat your credit cards and treat your credit cards like you now treat your savings account.