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Matthew_C1314 t1_je268kv wrote

It's literally just Dave Ramsey, same system different packaging. The problem with money management "Gurus" like these is that they advise you to fully swear off credit and pay in full. That isn't smart if you actually want to buy a house or get a business loan in the future. You need to manage your finances and incorporate healthy credit habits. Dave Ramsey may be a millionaire, but it's because he sells you this advice and products to use with it. He would not have that kind of money from envelope budgeting alone.

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twokietookie t1_je3a4cr wrote

Bro my grandpa had an older guy teach him this system when he joined the army in the early 40s. Giving too much credit to the grifter Dave.

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Matthew_C1314 t1_je3atgl wrote

I'm not saying Dave created it. He just pushed it with a religious twist.

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aftenbladet t1_je460ga wrote

Maybe its just about not using credit cards. Most people still need to loan money for house or cars, but using credit cards as a buffer account is not very smart. But it seems to be very common in the US.

Fine as long as you pay by end of month, expensive to be poor if not.

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Matthew_C1314 t1_je4wkxj wrote

It depends. I work in finance and met a guy who took Dave Ramsey to heart, at least the biblical parts. He sold his house and car, then bought a cash car and rents a home now. Said he didn't want to be in debt to anyone, but failed to see how being a renter was much worse. I agree with you about credit cards though, they are a nice feature if you are responsible. However, most americans use it as a slush fund to cover bills they can't normally do.

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Meocross t1_je2gr8c wrote

Credit is not worth it if you have zero discipline, my families credit cards have been busted for poor credit, without debit cards international commerce would have been impossible.

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Matthew_C1314 t1_je2k34a wrote

I said heathy credit habits.

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DavidAmazing t1_je3ef9r wrote

Right, but not every system works for every person. Just like other vices, some people can’t handle credit and that’s ok. Sure it comes with other challenges but for some people those challenges are easier to manage than credit.

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grenade25 t1_je325n1 wrote

This is true. People who perpetually disassociate card spending with the cold hard cash they have in their account will never be able to build credit. More often than not they have psychological issues that need attention and treatment. This disassociation is common in people with addictions. Most common is gambling addictions but can also be materialism, hoarding, etc. These are VERY hard to overcome.

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