Review of Dave Ramsey's Financial Peace University

I would like to start with a disclaimer on this review. My aim at this review is to be as accurate as possible but it will have the flavoring of my impressions. This is neither good nor bad just just admitting that I might not get all things right nor put it right. I do suggest you check this course out to help with your own finances as well as making up your own mind about it. Now, onto the review.

The course itself is a 13 week course (one financial quarter). It is 13 classes on DVD doe by Mr Ramsey with group discussion afterward. You also get a book, a work book, audio cds of the lessons that were on DVD and the envelope system that is taught in the class. All of these parts work together to get the essentials of the course learned. It is well packaged to get the ground covered and get it done well.However there are some drawbacks. It does help and does work but it definitely not a one size fits all and I do not think it would be possible to do that without one on one counselling. The small group discussion does not cover a lot of this but it still a case of fitting the principals that do work fit to your particular situation. The other thing you must keep in mind is that your finances will not be fixed when you get out of the class but the foundation for that will be. I am not saying that to be negative or put the course down but the reality that to get your finances truly better it is going to be slow and take time. Mr Ramsey even states that this is a crock pot solution so if you are going to look for microwave results, forget it.

The one tool that probably has helped the most from the course is the envelope system. It has really helped us get onto a cash only/ on a budget basis. The biggest challenge was weaning off the credit cards to buy things when we wanted to getting things and going out to eat only when we had the cash on hand. At least for us, that took about 2 to 3 months to get onto that system. It was hard as heck just to get 2 twenty dollar bills just to prime us into using the envelopes. With each paycheck, it got easier and easier to put and keep money in it., There was some going forward and giving up on how easy it was bu tin general it became easier and easier. Now it seams like they are having babies all the time and leaving at least something in there. We are not out of the financial woods yet but we are at least on the path.

One big disagreement I have with Mr Ramsey's point of view is on credit cards. He has the point of view where you need to get rid of them all but ATM and debit cards are ok. I am pretty much ok with the spirit of this but not totally. I come from a point of view that all three of these are dangerous tools and I need to be a good craftsman with these and use them wisely. Credit cards should be used sparingly and only if you have the money to transfer to pay it right now. Treat the credit card like a debit card or ATM card and that the money comes out right now and you are on a better footing. All three of these can be abused if you are not tracking your finances. It is better to use cash from your envelopes and only spend the money you set aside in the envelope with that purchase in mind. Find the right tools to manage the money and you have most of your problems taken care of. It is about discipline and having a plan. The tools can only help or hinder as they fit or do not fit into that plan.

There is a lot to this course and I do not think I have enough room for it in one blog post. If I were to sum up the most important things I learned from the course is to have a written plan/ budget, get out of debt, and work and talk to you spouse so you are in agreement on this. One more nice thing about paying cash and using the envelopes is that money fights can be eliminated to a degree by using the envelope to decide on purchases. If one of you wants something, it is not so much up to th espouse to agree (although that still is important) but you look at the envelope with the money for that item and see if there is money for it. If there is not, then you either have to wait to get it until there is or agree to short another category to get it. Instant feeding back and decision making. It takes it out of the realm of personalities and into the realm of can we afford it and how. It has given my wife and I a framework hon how to deal with money better.

In the end, I might not think Mr Ramsey is always right, but the framework and principals he teaches out works. Check the course out. There is far too much I have left out.