Dave Ramsey Heresy

I fear that Dave Ramsey may go gunning for me. There’s an old joke that I heard twice. The first time the teller was Dr. James T. Jeremiah, president of Cedarville College, a very conservative Baptist college. He told it in chapel. The second time I heard this joke a flaming Atheist used it as part of his case against Christianity. Here’s the joke. It recounts a conversation between a suicidal person standing on a bridge and someone trying to talk him down. »

Fasting to Reduce Hunger

As you know, I have found several parallels between frugality and weight control. Both of these disciplines require you to “mind the gap” and both are neither sprints nor marathons. Sprints and marathons have finish lines, but frugality and weight control have NO FINISH LINE. This means that your crazy vow to eat nothing but grapefruit until you pay off your credit cards, or to drive a clunker until you fit into skinny jeans will fail. »

Virtual to Real Dollars

I recently likened the money in my Vanguard account to Shroedinger’s Cat and though I entitled the post Quantum Portfolio Management I merely introduced the metaphor that your invested money is in something like quantum superposition. Apologies if you’ve heard me say this before, but it bears repeating. There are only two times when the value of your shares of any equity is real: on the day you buy them, and on the day you sell them. »

Quantum Portfolio Management

Quantum Mechanics is spooky, but it’s real. It does things that are counter to common sense. For instance, a single bit of light, a photon, is both a wave and a particle. Quantum systems can exist in a state called “superposition.” Quantum computers are built using things called “qubits” that simultaneously zero and one while they are in this state. When you observe the qubit, it collapses into a zero or a one. »

Snowball Versus Avalanche

Dave Ramsey is widely criticized for advocating the debt snowball. His critics counter with the debt avalanche. Though I’ve nattered on about this topic before, I’ve never pulled everything together on this topic in one place. Until now. Second, let’s define terms. First, let’s examine where there is agreement between Dave and his critics. Debt is dumb. They say Abraham Lincoln freed the slaves. He didn’t. My great-great grandfathers spilled their blood in the Civil War to end slavery. »