I decided to write this post in the form of a letter to Dave Ramsey:
Hey Dave,
My company decided to offer your Financial Peace University course to any employees interested. Always hoping to learn more and better my financial situation, I signed up. In your latest lesson, you spoke about dumping debt and specifically advised people to sell stuff.
Well Dave, I’ve started to sell my stuff. For example, my wife and I aren’t big TV watchers. In fact, the only TV show we regularly watch is Fox’s Dollhouse and we almost always watch it on Hulu.com. So we sold the TV…the TV Dave. I’m not sure what all the ramifications are yet of that decision, but I’m hoping that my family will be better off with less digital garbage coming in. One thing you didn’t talk about though was getting a good deal for all the stuff I’m out selling. In my haste and desire to cleanse my home and earn some extra cash, I completely undersold the TV. A nice, young college student and his roommates are now enjoying my TV at a hefty discount. I loved getting the subsequent five phone calls that day asking about the TV. Each person willing to pay more than what I sold it for. So you might want to tell your viewers/readers that they should get excited about selling stuff, but don’t get stupid about it. Do you know anyone that wants a nice, solid wood TV stand from IKEA?
While we are on the subject Dave, I’m not sure where the selling stops. For example, I preempted my wife this week by telling her that “the golf clubs stay!” So what if I’ve only used them once in the last two years. Doesn’t that just make me an average golfer? Actually, I would golf more if my wife weren’t so bad at it that she refuses to go. The one time I used them last year was when she went to her brother’s wedding out East. I went golfing twice that week – it was a good week. So my point is, you told me to sell, sell, sell. But do you offer any guidelines? I would sell anything that I owe money on to pay it off, but that’s only my car and my house – and the house stays.
So Dave, that leaves my car. I’ve only had my car for six months, and I love my car. I drive a 2008 Hyundai Santa Fe. I haven’t driven an SUV for years and I’m not sure that I’m ready to make the mini-van commitment. My kids don’t play soccer yet, so what does driving a mini-van say about me? Of course, I sure wouldn’t mind a reduced car payment. It’s not that I can’t afford it, but I sure could do other things with that money. So I did a little research online and I’m pretty sure I can get more than what I owe on my car. But the problem now is finding a cheaper car that is big enough for my family and double stroller. I found a 2005 Town & Country for sale but it has 98k miles on it. Come on Dave, 98000 miles! And that’s the best deal I’ve found so far in a price range that makes selling my car and getting another one worth it. So do you have any advice to go along with your simplified statement of “sell the car”?
What I’m saying Dave is that we are trying. We are filling Craigslist with more stuff for people to buy (which doesn’t that encourage this problem for other people?). However, I would appreciate it if you could answer three questions: (1) Am I being a good guy and helping someone out if I undersell my stuff, or should I get every penny for it that I can since I’m using it to pay off my debt? (2) Do you have any guidelines on what I should and should not sell? At what point have I sold my life? Notice I didn’t say “lifestyle.” (3) You said in your video not to get a clunker, but you were adamant about selling the car. So where’s the happy medium? I can find a cheap commuter car no problem, but a quality, cheap family vehicle is harder to find.
Dave, I like you. And I like your course, even if I don’t agree with everything. I also think we could all do with a little less stuff in our lives and homes and on our credit accounts. I’ll let you know how it all turns out once the selling spree ends.
Regards,
Adam “I’m keeping the clubs” Williams
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If you’ve taken Dave’s courses or have read his books, what are your experiences with selling stuff? Any good answers for my questions? Let us know in the comments.
Dave says you can keep your car if the total value of your motorized vehicles is less than half of your annual household income. So…you can probably keep the car. Just get it paid off!
Thanks! That’s good to know. My wife and I have been looking around at other options and we are having a hard time finding something that works well. I think if we find a good deal on a car that we can purchase outright, then we’ll sell our car so we don’t have a payment. But I think patience is our best bet.
Dave says you can keep your car if the total value of your motorized vehicles is less than half of your annual household income. So…you can probably keep the car. Just get it paid off!
Thanks! That’s good to know. My wife and I have been looking around at other options and we are having a hard time finding something that works well. I think if we find a good deal on a car that we can purchase outright, then we’ll sell our car so we don’t have a payment. But I think patience is our best bet.
While I’m a bit unfamiliar with this “Dave” here and his method of selling everything you have, it seems to be a bit interesting. I can certainly understand selling junk to payoff debt… but, lowering your living standards isn’t always the most viable route to travel down in my opinion. I guess it’s a matter of what works for you, but his method seems to be a bit extreme from what I’ve read here…
.-= Travis´s last blog ..Understanding the Minds of Stupid People =-.
That is a good point and it does feel a bit extreme. Though considering how much debt some individuals have, they need something extreme to change their financial situation. In our case, we don’t have tons of debt but decided that we can do without a TV as a lifestyle choice more than a financial necessity. Thanks for your comments.
While I’m a bit unfamiliar with this “Dave” here and his method of selling everything you have, it seems to be a bit interesting. I can certainly understand selling junk to payoff debt… but, lowering your living standards isn’t always the most viable route to travel down in my opinion. I guess it’s a matter of what works for you, but his method seems to be a bit extreme from what I’ve read here…
.-= Travis´s last blog ..Understanding the Minds of Stupid People =-.
That is a good point and it does feel a bit extreme. Though considering how much debt some individuals have, they need something extreme to change their financial situation. In our case, we don’t have tons of debt but decided that we can do without a TV as a lifestyle choice more than a financial necessity. Thanks for your comments.
Love this! I am taking (hosting) the class for the second time. This time we are having an FPU yardsale and I’m a little giddy. Mostly because I have way too much stuff in my space, its good stuff and someone might want it. So yes, I have to remember “don’t be stupid” at the same time, its not coming back in the hosue with me so “Take what fits in your arms and make me an offer!”
Adam…just go to Dave’s website. Spend the money and get his Financial Peace University Program. My ex and I went to it at Church. IT WAS AWESOME!!! It’s simple stuff, but like they say..”common sense isn’t common” Dave says “normal is broke”. I got tired of being “Normal”. I am now living the program. I’m 100% debt free and LOVING IT!!!
I’m still on Baby Step 3, but It’s going great. It’s amazing, you don’t know how much stress you’re living with until it’s GONE!
The existence of an emergency fund makes everything so much easier. Dave would also tell you to SELL THE STUPID CAR.
I love listening to his radio show and read stuff like what you put out :) It’s amazing the lengths people go to to justify their mistakes. Attempting to rationalize debt. Like Dave would say…if the math added up you wouldn’t be in the predicament you’re in.
For me, the pain of where I was at was greater than the fear of change. I had over 109,000 in debt, lost my job, lost my wife and had to move back in with my parents at age 43. Talk about lowering your “living standards” Travis.
I have at least 20 good years left, God willing, to make up for stupid. I am “gazelle intense” towards my retirement investing. Right now…”I’m living like no one else, so later I can live like no one else”. Yes, you can call me a “Dave Disciple” preaching the gospel of Dave :) Can I get an amen?!