What is the difference between suze orman and dave ramsey

I am debt free now for 7 yrs. I am 49 yrs. I have to 2 jobs combined salary about 41, a year. I am single no kids. What changes do you suggest I make if any. Give me your take? That is where you are at. Congratulations and welcome to the club. Recommend spending a little bit of money. I know if is hard but do something you have always wanted to do. I am having that challenge right now.

We are in a better position than most people. We can pay cash for what we want or need. Mark — It sounds like you have a a LOT going for you financially. I salute you for having a second job. Are they LOW cost mutual funds? I prefer Vanguard index funds. How are you doing with asset allocation? Do you understand asset allocation along with your risk tolerance? They give sound investment advice using low cost funds.

These people have many internet columns, websites, podcasts and books to help you. Good Luck, sir. You just need to put in more in your retirement.

You should have more in your retirement accounts at your age. His principles do not need to be adapted. If they do I have yet to hear anything he suggested that was taught in a better way somewhere else. However, Dave admits that this is not the best way if you are able to do it but that the Debt Snowball is a motivating tool.

I do not follow everything Dave says because I still have credit cards for my convenience , but I make payments to them twice a month and do not spend any money unless I know I already have it. I am down to owing only on my house and about 10k left on my car with my 1k emergency fund and 5 months of cash in the bank.

I am thankful from what I have learned from both of Suze and Dave. Put that money towards payoff on your car. Just a bit of advice from an outsider looking in…. Saves snowball is faulty. Then lower debts after. You need to pay highest debts first. That should be motivation enough for anybody. Common sense.

Use some money to Get ahead on that bill. The psychological gratification is good for those of us that need it. However if you know its old and could go out, the whole Dave thing is plan for it and it wont be an emergency.

Like some of the others have said, I take some advice from both Dave and Suze. I tend to side more with Dave, but there are things I disagree with him on. Dave Ramsey: I think he is more realistic about how people work with money. They need to learn the difference between wants and needs. My main point of disagreement with Dave is on student debt, if its managed properly,. That is when I realized why I have a small house in a rural area, and the banks have huge buildings downtown areas.

I have a plastic, foldout table in a small carpeted room to work from. They have huge offices, when marble floors and giant mahogany desks. Some of the main components of the FICO score are paying your bills on time, the amount of credit you have available and what percentage of that available credit you are using.

Always remember they are in business to make money. Yes FICO scores affect everything you do. Renting, employment, insurance rates, ect. All are affected by your score because in Affect it is your financial iD. It shows everybody how financially responsible you are. Even if you were to pay cash for a house, they would still look up your FICO score.

FICO scores are for those who live their lives as slaves to the lender. It just requires more effort on the underwriter to approve the purchase. To verify the funds are legit. To many individuals lead their lives based on a FICO score. Great points and evaluation of what author actually gives better Financial Freedom advice.

Everything tanked. I re-read a book and astonishingly, she wrote to roll in your credit card debt into your home mortgage when refinancing. I do listen to and read both Suze and Dave, but my husband and I have found a middle ground. We have no debt, and are getting our kids through college debt free. When you own something, the government has a harder time taking it away,. At one point, she was talking about investing in commodities to her followers.

Many professionals consider dabbling in commodities speculation, not investing. A while back she formed a relationship with the Money Navigator, a market-timing newsletter. This from a woman only keeps a very small portion of her own sizable wealth invested in equity markets. Your portfolio will thank you!! I think the government can take away your land even if you own it.

Look at what they do to land owners out west. Dave Ramsey has never changed his plan. The economy has changed drastically. At minimum, you should save 10x your annual pre-tax income or 15x your annual net expenses for retirement.

It makes you just want to give up and not bother saving for retirement at all. Orman has been quoted as saying that 70 is the new retirement age , because people live longer and thus need to work longer to offset the costs of those later years. She also says this because delaying Social Security payments as long as possible results in larger payouts. As is common with personal finance critics, touting a one-size-fits-all approach to anything is probably an overreach.

This is no exception. After all, retirement planning should be based on your annual net expenses or annual pre-tax income, in addition to your life expectancy. Its borderline irresponsible of her to base it on an arbitrary age. Both Orman and Ramsey are intelligent people with a lot of solid financial guidance to offer. They also both made big money mistakes in their youth and have spent years teaching to help prevent others from making the same mistakes.

Both Suze Orman and Dave Ramsey emphasize the importance of spending responsibly, which is great. The big difference here is that while Orman permits credit-card use, Ramsey is utterly against all credit cards. Ramsey makes no such exception, simply because of the research showing that you spend more with a credit card and are more likely to go into debt if you have one.

His solution to the problem of credit card debt is to avoid credit cards entirely. Both recommend an emergency fund for repairs, medical issues, and other surprises. Dave Ramsey is even stricter on homebuyers, however, encouraging people to take out a year fixed-rate mortgage not a year mortgage. Even more drastically, he really prefers that no one ever borrow money.

The only reason Dave allows this kind of debt is because there is overwhelming evidence that home ownership is just not possible for many people unless they take out a mortgage and, more importantly, renting also comes with a monthly price tag. They are opinionated people with big personalities, so they share those opinions unabashedly.

His Baby Steps are very succinct and easy to follow. You will establish a strong financial footing and retire fairly wealthy if you follow his strict steps. Just be aware of the shortcomings of her plan and remember… credit cards are dangerous!

With that said, both Dave Ramsey and Suze Orman bring valid points to the table about personal finance issues.

So if someone tries to tell you that either Orman or Ramsey is the ultimate source of financial wisdom, be sure to fire back at them. Do your research for your financial situation. You can pull some of the best pieces of advice from both of them, plus gather ideas from other great personal finance sources. You can craft your own personal finance plan and philosophy.

Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. All rights reserved. Dave Ramsey vs. Suze Orman by Chris Pratt. The question of preference would come down to a question of baldness vs. That difference is their competing positions on a critical personal finance matter—getting out from under debt. You pay minimums on all of your debts, throwing whatever extra dough you have in your budget at the account with the smallest balance.

Suze Orman preaches a different technique. So, who wins? From a pure dollars and cents perspective, the best thing to do is to pay minimums on all of your accounts, except for the one with the highest interest rate and to pay that baby down first.

However, the Dave Ramsey approach recognizes the psychological relationship with have with money. This got me thinking about the amount of student loan debt that was piling up in my corner. Maybe this Dave guy was on to something?

Both Ramsey and Suze Orman are known for their financial insight they bring to their listeners. In order to teach their followers, both have developed a step-by-step method to accomplish goals. Especially if you have kids! The purpose of starting an emergency fund is to keep you from relying on debt with any financial emergencies that occur. Every caller that asks his advice regarding debt reduction is given this prescription to Debt-itis.

The Snowball involves listing all debts from smallest to largest. Next, pay the minimum payment on all smaller ones while putting as much money possible towards the smallest on the list. Place 3 to 6 months worth of living expenses in your emergency fund. Dave teaches finance from a Biblical perspective which is why he wants us to be a generous giver. Leaving a legacy to your children and others is possible once you reach this point in your life. Now that Suze has all of the facts, she then can give her her two cents.

Many people that are fortunate enough to have a little cash in an emergency fund sometimes think a want is a need. They reach a point in life when they realize they need to make a large purchase such as a vehicle or in this case a house. She recommends that you cut out all non-necessity spending. Sorry Starbucks! Go through bank and credit card statements and ID any items to eliminate. Make it automatic. Most financial institutions such as banks, Vanguard, Fidelity, etc. Set up and automate transfers on a regular basis to fund your emergency fund, retirement plan, and savings account.