Radio and Tv talk show host advice
Radio and TV personalities
It’s always interesting when someone tells you they’re getting all their financial advice from someone on the radio or television. The main reason is that almost none of these people are actually licensed to sell anything at all. What that means is they do not face any consequences if their recommendations are wrong. They’re giving you their best guess and they could be, and quite often are, giving bad advice. There’s also many cases where they’re getting paid for referring their customers whether it’s beneficial to them or not.
There is one in particular that has been doling out really bad advice for years when it comes to investing, life insurance, and just general information. The one area that I can actually agree with him on is his push to get people to eliminate debt. The problem is that he doesn’t them any more information than “pay it off as quickly as you can.” This is an area where he should have come up with something by now to help get out of debt even faster. I’ll show you in the examples exactly what I mean.
Here's a great example to show the power of our program
Let’s work on the same scenario using the different methods for paying off debt. Here’s the general setup for each one to payoff.
We’ll say that there are htree people that all make the same income. They all bought a very similar size and priced house at the same time. Each one is financing $250,000 for 30 years at a rate of 6%. If we don’t include property taxes or insurance, each loan has a base monthly payment of $1498. The total interest paid over the 30 years would be $289,595. That’s greater than the loan amount. The interest makes up almost 55% of the amount expected to get paid back. Each person will follow a different plan. The first will follow a radio host’s advice and the second person will use a more committed version of it. The third person will use our accelerated debt elimination plan.
Here are the results of the 3 different plans. Meet the Anderson’s, Bennett’s and the Clarks.
Ramsey Method 1 - Anderson's
Pay an additional $500/month
Pay a total of $1999/month
Total interest paid is $143,467
Loan paid off in 16 years 6 months
Total amount paid $393,458
That cut about half the interest out.
Coming up with the extra money could be an issue if anything ever happened.
Ramsey Method 2 - Bennett's
Pay an additional $1000/month
Pay a total of $2499/month
Total interest paid is $97,509
Loan paid off in 11 years 9 months
Total amount paid $347,508
That cut about 2/3’s of the interest out.
Coming up with that much extra money each month could be very difficult, especially if “Life Happens” and anunexpected expence pops up.
Financial GPS Method - Clark's
Pay just the base payment $1499/month
Pay $1499/month plus some calculated extra payments
Total interest paid is $58,452
Loan paid off in 7 years 2 months
Total amount paid $305,147
That cuts almost 80% of the interest out.
This one is obviously much more manageable as it makes it easier to make monthly payments and still live your life.