T Nation

Trump: The Third Year


#301

Notice how in both scenarios you highlighted headcount increased during the recession itself, and then dropped afterward? That’s because they’re divorced from reality with (as you point out) ever-increasing budgets.

Not saying we should be mean to government workers. But I’m not exactly shedding huge tears for them. They get a lot of perks private employees don’t and the risk they take on (albeit very, very small) is income interruption from politics. Also after the 2013 shutdown the furloughed employees received back pay.


#302

I would assume due to increased need for the social safety net

Imo it’s because the very nature of a social safety net requires it to expand the more people that need/use it, which happens more during economic downturns

Oh I’m not shedding tears or anything, just a brief nod to when I worked in the mortgage industry and the reason someone’s paycheck stopped doesn’t effect us reporting them late and tanking their credit score.

Very few of them will enter foreclosure due to this, but at a minimum many of them will be forced to use short term debt to make up the difference. So the reality is still a pain point caused by a presidential tantrum that he waited until the final hour to throw.

Well duh.

Not that their stomachs backfilled, or any bills they missed. That stuff sticks


#303

That whole Dave Ramsey ‘3 to 6 months of expenses in an emergency fund’ thing is super fucking duper good advice. I’m building mine back up after a brief 1 month layoff.

I know 99.9% of Americans won’t do that though since most Americans can’t even save $1k and don’t bother investing.


#304

I like Dave Ramsey kinda, but his whole ‘you don’t need a fico score’ shit really frustrates me. Like thanks Grandpa I also can’t buy a cheeseburger for a nickle. Can ya hear me back in the 50s?

Whackadoodle as shit

I’m sure those tax cuts will trickle down to higher wages any day now.

Or at the very least try to match inflation.


#305

Dave Ramsey has a lot of good advice but definitely is off the boat on some items with what you highlighted being one.

Also it is really dumb to pay off your smallest balances first and your largest last with no regards to interest rates. If you’re paying off a 2% interest rate loan instead of a 10 simply because you will “finish” the 2% one faster is stupid. It’s making getting out of debt take longer and become more expensive.

Also index funds over mutual funds. Don’t pay someone to invest for you. Do it on your own and keep more of your money.

Other than that the world would be better off following his advice. Minus the to truly achieve financial peace you must walk with the prince of peace Jesus talk.


#306

What are you doing buying cheeseburgers out while you still have consumer debt? You could be paying shit off with that $10 “value” meal. :stuck_out_tongue_winking_eye:

I think he softened on that as long as the only debt you’re in is a 15 year fixed rate mortgage for a house. You have to remember the people he’s dealing with are completely broken with no financial IQ.

Typical call:
“Hi I make $45k and I have $50k in student loans that I’m not paying, $20k in credit card debt I’m not paying, a $30k loan on a fishing boat they’re threatening to take away and I was wondering if I should buy a house this year…”

That type of person should never touch consumer debt again… ever.

What I can’t stand is his insistence on actively managed mutual funds while he ignores the fees they charge.


#307

This is actually one I love because it’s geared towards helping the lowest common denominator. That’s why the whole ‘never get a fico score’ is such bullshit, because it’s only good advice for people whom are very good with their personal finances. And those people probably don’t need his advice.

Which is silly. Because AFTER the house purchase is when the fico score’ stops mattering.

We used to GUT non traditional credit people. And what were they gonna do? Most place won’t even touch you without a fico

I would bet my life (literally) that he receives kickbacks on these. He’s just another common shill.

Either that or hes so fuckin stupid he has no business using the words ‘personal finance’ in a complete sentence.


#308

If you make more than $35k you’re in the top 1% of worldwide income earners. US residents buy a ton of shit they don’t need and complain about the debt they’re in.


#309

Of course he does. He tells you to use one of his trusted advisors. Does the same thing with life insurance going through his people. He gets money off it.


#310

Of course they do. I’m not sure how Americans making more than people in other countries means it makes sense to slash taxes on the richest Americans though.


#311

Actually the math could work out in favor of his method, depending on the sizes of the debts.

But that rule isn’t about math. It’s about behaviour. He’s literally setting up dopamine hits for these people so when they pay off their $500 CC they get a sense of accomplishment and roll those minimum payments into the next debt. It’s enforcing good behaviour.

Harvard business review claims it’s more effective than paying off the largest interest rate debt first.


#312

Also it’s very easy to ‘rule of thumb’ think that the vast majority of debts see interest rates scale based on the amount

Paying off the lowest balance first usually also means hitting the highest interest rate. Just much easier to digest.

Cuz Reagan. The other joke of a TV star POTUS


#313

The math works out best for paying off high interest rates. By ignoring them you could be paying much more money in the long run. Maybe the snowball method “feels good” but it certainly isn’t a method guaranteed to have you spending the least amount of money. I’m not saying it can’t be effective but without taking account the interest rates of your loans into the equation you’re REALLY screwing up.

Case in point: 10, 500 dollar loan at 2% vs. 11,000 dollar loan at 10%. Killing the first one because you will feel better and roll that money in is going to cost you a chunk.

HBR study doesn’t take real money into effect. It also doesn’t show the savings difference when dealing with loans of varied interest rate sizes.

Snowball method can and is effective but it is stupid to completely ignore interest rates in making a plan for the debt. Especially if you have debts that are similar sizes but big differences in interest rates. Student loans vs. credit card debts is a common scenario where you are typically looking at big differences in interest rates where snowballing doesn’t make financial sense.


#314

Good thing I have no CC debt and I’m trying to murder the college loans with extreme prejudice this year. When I have only a mortgage I won’t have to worry about which one to prioritize.

@pfury @h_factor

Want to start a personal finance thread? Tips and tricks and such? Way more fun for me than politics.


#315

I’d be down. I’m really close to being done with student loans.


#316

While I agree with everything you’re saying, this is a big scarcity in the real world. Typically the higher the loan value the lower the interest rate would be.

Personally, with the debt me and the wife has, ranking our debt by size is the exact same as ranking it by interest rate.

I think ranking by size is just a lot easier for the layman to consume and understand. Half the country doesn’t understand how an APR works.

Fire away. I’m in


#317

Jesus. I have maybe 10 k of dry student debt (a benefit of the UK system) and a $1000 overdraft. The level of debt you’re describing is mystifying to me.


#318

Some of the calls man. People call in crying ready to take the bridge and Dave is like “sell the BMW.” And they reply “but I can’t!” And hang up all petulant and mad.


#319

Did you see Vice. Christian Bale is fucking amazing as Cheney.

That sounds like Euro socialism to me. First you start off with realistic and manageable levels of student debt and consumer debt in general the next thing you know there’s a red banner with a hammer and sickle in the doorway and you’re being shipped off to a gulag.


#320

LMAO, Ioppar.

In fairness, it WAS excellent. The issue arose when Anthony Blare made the declaration that 50% of people needed to go to college. It exploded price and diminished quality, however that’s a global problem. It’s already like a trillion GBP of (mostly) NPL’s.