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.
If you can’t change your friends, change your friends.
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.
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.
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.
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.
“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?
“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.
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!
Wise Words FRiend
Wow.. hit a nerve.
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