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Dave Says Don't Fake Being Poor
Townhall.com ^ | February 20, 2013 | Dave Ramsey

Posted on 02/24/2013 9:26:07 PM PST by Altariel

Dear Dave,

What do you think about the practice of credit card churning?

Ethan

Dear Ethan,

I think it's a pretty dumb idea. The concept is to run up the balance on one card as high as you can, then flip the balance from card to card in order to get perks like airline miles. But if you want to go through all the trouble and hassle over such a small amount of money, be my guest.

I've met thousands of millionaires, and none of them have ever credited their success to credit card churning. Think about it: With all the time you'd spend, and risk you're taking on a scheme like that, you could actually have made some money.

If you want success, Ethan, you have to mimic what successful people do. This means living on a detailed plan, saving, and investing!

--Dave

Dear Dave,

Both of our daughters will start college next year. We have $25,000 set aside for each in their custodial accounts, but my financial advisor says we should take the money out because it will keep them from being awarded as much in scholarships and other assistance. What do you think?

John

Dear John,

I disagree. It's like saying you should quit your job to get food stamps. You guys obviously aren't poor, and any financial advisor who says you need to fake being poor in order to get help is not a person whose advice I want to follow.

When your kids apply for scholarships and assistance, your entire financial picture will be assessed. More funding goes to kids from poor families than rich ones, but that's only fair. Chances are, you fall somewhere in the upper-middle portion of the scale.

But no, I wouldn't move the money or try to hide it. It's just not honest to try and act like you're poor when you're not. I don't believe in that kind of stuff.

--Dave

*Dave Ramsey is America's trusted voice on money and business. He's authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.


TOPICS: Miscellaneous
KEYWORDS: creditcards; daveramsey; debt; ramsey

1 posted on 02/24/2013 9:26:11 PM PST by Altariel
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To: Kaslin; CSM

Dave Ramsey: Encouraging every Freeper to work towards Financial Peace with every PING.


2 posted on 02/24/2013 9:29:26 PM PST by Altariel ("Curse your sudden but inevitable betrayal!")
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To: Altariel

The bankrupt Dave Ramsey? Yeah, right.


3 posted on 02/24/2013 9:34:33 PM PST by narses
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To: Altariel

“More funding goes to kids from poor families than rich ones, but that’s only fair.”

Why is that fair? Guess merit doesn’t matter anymore...


4 posted on 02/24/2013 10:11:00 PM PST by piytar (The predator-class is furious that their prey are shooting back.b)
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To: narses

Eh???


5 posted on 02/24/2013 10:27:19 PM PST by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: Vendome

His real estate “empire” ended in bankruptcy court.


6 posted on 02/24/2013 10:28:32 PM PST by narses
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To: narses

When?

And, Life happens...


7 posted on 02/24/2013 10:36:34 PM PST by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: narses; Vendome

Oh for Pete’s sake. It happened so many years ago and he’s built up another fortune and future since then. So Narses, have you built your FIRST fortune yet?


8 posted on 02/24/2013 10:44:10 PM PST by Shimmer1 (No matter how cynical I get, I just can't keep up.)
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To: Shimmer1; narses

Kinduh where I wuz gonna go next.

I know everyone in Silicon Valley, Philthadelphia, NYC and Hollywood.

They make it, break it, screw up and then get their gumption to repursue their dream or just get out their hell.

I don’t know anyone that stays down.

They take their ass kicking and keep going.

“It’s a great life if yer tough”

So stoopit. I got a friend that was a school teacher and now flies private jet.

She woke up one day and just went a different direction.

Still another friend who also flies private jet. Took an azz whooping from life and a wife.

kept going and now doesn’t allow strifeful people in his life. Seems everyone gets a chance or two to act KuhRayZee and if they make it to a 3rd time, they end up making new friends.

It ain’t the falling the counts, it’s getting up that matters.


9 posted on 02/24/2013 10:55:25 PM PST by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: Shimmer1; narses

Maybe narses isn’t a crook.


10 posted on 02/24/2013 10:55:48 PM PST by antceecee (Bless us Father.. have mercy on us and protect us from evil.)
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To: Altariel
Dave Ramsey!!??

ROFLOL!!

11 posted on 02/24/2013 10:57:16 PM PST by Osage Orange (MOLON LAVE)
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To: antceecee; Shimmer1; narses

Maybwe not even trying...

Cept for the rock throwing thing...


12 posted on 02/24/2013 10:58:56 PM PST by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: antceecee

Why would I think he is?


13 posted on 02/24/2013 10:59:19 PM PST by Shimmer1 (No matter how cynical I get, I just can't keep up.)
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To: piytar

I have little problem with helping qualified and worthy ‘poor’ young people get needed financial aid. My skepticism is in who determines ‘poor’ and why as to such. My years of life tells me that there are ‘somewhat poor’ and ‘somewhat comfortable’ families that are just as worthy of help. I speak from experience of a WWII vet who besides getting G.I.Bill aid had to ‘hash’ in addition to attend a world class public system without any family support. No moans but I can see a spectrum of worthy young people.


14 posted on 02/24/2013 11:10:20 PM PST by noinfringers2
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To: Altariel
Well of course he is going to tell a stranger in a published paper to “do the super squeaky clean, long hard road thing”! The question is how he would advise his best buddy at a private table, while sipping whiskey and smoking cigars.
15 posted on 02/24/2013 11:14:23 PM PST by Casie (Chuck Norris 2016)
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To: Vendome

Looks like I struck a nerve?


16 posted on 02/24/2013 11:16:51 PM PST by antceecee (Bless us Father.. have mercy on us and protect us from evil.)
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To: Altariel

Never knew anyone named dave so I don’t give a damn what he says!


17 posted on 02/24/2013 11:20:28 PM PST by dalereed
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To: Altariel

Dear Dave, What if I fake being rich by buying shoes for the kids instead of making them wear my old ones?


18 posted on 02/24/2013 11:24:21 PM PST by count-your-change (you don't have to be brilliant, not being stupid is enough)
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To: Altariel

Dear Parents: Take that money and buy new furniture, big screen tv’s, fur coats, fancy wheels for your ride, steaks at grocery store, PowerBall tickets, drugs, wild parties and jewelry before you apply for that student aid. It is important to build a proper profile before apply for “free” Obama Bucks! ;-)


19 posted on 02/25/2013 3:11:12 AM PST by Average Al
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To: Shimmer1

Any idiot that STILL advocates putting money in the stock market is an idiot I will not listen to.

Putting money in now is like putting money in in June 1929.

What an ass... he even states repeatedly that you can “earn” 8%+ in growth mutual funds ...


20 posted on 02/25/2013 3:57:45 AM PST by Neidermeyer (I used to be disgusted , now I'm just amused.)
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To: Vendome

If you can’t change your friends, change your friends.


21 posted on 02/25/2013 4:47:28 AM PST by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: Altariel

It’s been a long time since I was in college, so maybe things are different, but assuming they aren’t, I’m going to have to disagree with Dave.

Take the money and put it into cash and then don’t report it.

Financial aid is based on the previous year’s income and assets. Unless you expect to have stable income for the duration of the child’s college career, you’re better off making your income/assets book as low as possible.

You can always pay more, but you won’t be able to pay less until the year after your income drops, making the year of an income drop very hard to deal with. Once they’ve spent through your assets, you’ll essentially be in the same situation.

Keep the 25k to pay for unexpected college expenses, or as a hedge on job loss or pay cut.

That’s the way the game works. I’m not saying it’s right, but you should know the rules before you play.


22 posted on 02/25/2013 5:46:08 AM PST by chrisser (Senseless legislation does nothing to solve senseless violence.)
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To: antceecee

Nope. you remind of all the mouthy know it alls who haven’t the benefit of experience but, are experienced in moral and mental gymnastics, without ever trying to reach for a thing.

Yer jealous at the minimum, punky, probably, in reality.

I think people like you relish in other peoples strife or failures.

It a real character flaw.


23 posted on 02/25/2013 9:11:36 AM PST by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: Hoosier Catholic Momma; CottonBall; TenthAmendmentChampion; Chickensoup; JDoutrider; ...

Keep living like no one else so that you can LIVE like no one else. Don’t let Obama’s ilk hold you back!

Dave Ramsey fan ping list.


24 posted on 02/25/2013 11:05:13 AM PST by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
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To: Hoosier Catholic Momma; CottonBall; TenthAmendmentChampion; Chickensoup; JDoutrider; ...

Keep living like no one else so that you can LIVE like no one else. Don’t let Obama’s ilk hold you back!

Dave Ramsey fan ping list.


25 posted on 02/25/2013 11:06:13 AM PST by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
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To: narses

“His real estate “empire” ended in bankruptcy court.”

and he paid every creditor every penny back, but I wouldn’t figure you would tell the complete story. Envious much?


26 posted on 02/25/2013 11:13:39 AM PST by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
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To: antceecee

“Maybe narses isn’t a crook.”

So, you are implying that Dave Ramsey IS a crook. Yes he claimed BK, but after working through that BK and starting over, he paid every penny back to every creditor. Even if that creditor did not want to take a payment post the BK.

Yep, crooks make their “victims” whole.

Take your lies somewhere else.


27 posted on 02/25/2013 11:16:26 AM PST by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
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To: piytar
Why is that fair? Guess merit doesn’t matter anymore...

Doesn't matter one bit any more. No matter what, the middle class gets screwed.

I'd like to see a caveat that goes along with financial aid - like getting a useful degree, having to work part-time, and the best one - IF they don't graduate within 5 years, they have to pay all of it back.
28 posted on 02/25/2013 11:19:21 AM PST by yorkiemom
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To: yorkiemom

Very Good Point. You should consider running for office. You have always had insightful, conservative ideas. I think you’d make a GREAT Tea Party candidate!


29 posted on 02/25/2013 4:13:45 PM PST by jeffreypine
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To: Vendome

Wise Words FRiend


30 posted on 02/25/2013 4:49:26 PM PST by Chickensoup (200 million unarmed people killed in the 20th century by Leftist Totalitarian Fascists)
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To: Vendome

Wow.. hit a nerve.


31 posted on 02/25/2013 8:46:51 PM PST by antceecee (Bless us Father.. have mercy on us and protect us from evil.)
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