I'm Afraid To Drain My Savings To Pay Off Debt!
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- Опубліковано 30 вер 2024
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investing requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myself May I ask which investments are good?......
ETFs
These billionaires which I am not one of them but they worked hard getting where they are they did not need to use this superstition that video talks about to become a billionaires they have all kinds of antiques, heirlooms and many clothes that they don't wear anymore and it doesn't stop being rich they work hard they know where to invest their money in and what kind of strategy to use to make themselves rich so don't need to do this false teachings says to do.
It’s not supposed to be easy. Anyone who finds it easy is stupid.
The investor's goal is to seek value in a way that minimizes risk and maximizes reward.
That is fantastic! I'm eager to start investing even though I have no experience with it. Which tactics do you use?
Until their own emotions burn them, people downplay the value of counsel. A few summers back, after a protracted divorce, I needed a big push to help my firm survive. I searched for consultants with the right credentials and found the most qualified one. Despite inflation, he assisted me in increasing my reserve from $275k to $850k.
It is simpler to profit from the market if you work with a reputable broker or account manager.
If you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life.
I'm interested in investing, but I'm not sure where to start. Do you have any advice or contacts who can help me out?
Investing can be complex, so it's smart to get professional guidance when building your financial portfolio.
It's a great idea to have a conversation with financial advisors like Amanda Martin to reshape your portfolio.
I spread out my $25k portfolio across various markets to diversify my investments.
That's awesome! I ended up making a net profit of about $115k by investing in high dividend yield stocks, ETFs, and equity.
What is the best way to profit from the current market, meanwhile I'm still undecided about investing $400k in my stock portfolio to get some dvidends and minimize risk
Remember that investing in the stock market carries risks, and it’s important to do your own research and consult with a financial advisor before making any investment decisions.
With the help of an investment advisor, I was able to diversify my $550K portfolio across multiple markets, and in just a few months, I was able to earn over $950K in net profit from high dividend yielding stocks, ETFs, and bonds
Pls who is this coach that guides you? I’m in dire need of one
My consultant is NICOLE DESIREE SIMON She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too.
investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
How can I get in touch with your financial consultant
I looked up her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me.
I want to invest in tax advantaged accounts. I just saved up $100,000 this last quarter, and i plan to invest in the stock market and other other retirement accounts
I don't really believe people should invest in stocks without the aid of an expert. the market is so volaatile that you can get burnt by your feelings. pls make your reseach and consult with an expert to stay safe
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 275 cash earning 5.25 interest, 685k in 401k, 120k cash account, 80k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed shortly.
pls how can I reach this expert, I need someone to help me manage my portfolio
*Jennifer Leigh Hickman* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her site up and filled the form. I hope she gets back to me soon.
I had 18k in cc debt. After binge listening to Dave for no reason at all, i decided to just take the money from savings and pay off that debt. Feels good.
I never understood the idea of having a large savings account whilst also having a mountain of debt. With that debt gone, the payments can be used to make a savings account and you should be able to build it up in no time considering you were already able to stash money away and now you can double your efforts.
I needed this
Same 🎉 I actually paid it off before my birthday 🎉❤
Its for security and fear of needing it@@fieryjalapenos4442
@@fieryjalapenos4442that's your backstop in case everything falls apart. Having a small monthly interest payment with an emergency fund feels better than having pennies in savings and no debt.
It's comfort not math
He could get a car that doesn't cost as much. Problem is most people are scared of what people think of the car they drive.
Broke people are scared of what other broke people will think if they have a 6 year old car....people that have money usually don't really care what others think.
I’m not getting rid of a car I already paid 40k on and only have 20k left! That’s silly
@@reese85 I meant he shouldn't have bought it in the first place.
Try a Honda Civic?
Or Honda Odyssey are good family vans not good on gas though.
I drive a 2006 Hyundai Sonata with rust all over it. Could care less what people think. 😂
I know the feeling. I was uneasy paying of my 20k car loan while having 25k in the bank. But once I did I can say that commiting to being debt free is one of the best life choices I have made
I had like 21k spent 19k to pay off my lease buyout in cash. It hurt given that I wanted to keep 4k towards my house savings goals but I'm glad I don't have a car payment as of October 2022.
Shoulda sold it off gotten a cheaper car and kept emergency fund
Debt free, start building a good nest egg, on the path towards wealth
Debt is a trap. Fear is the worst. They bank on you being afraid to break the chains of being debt free.
@Ricardo I feel the same way. I’m actually struggling with this right now. Do I pay off my $20k or do I keep paying it? I recently started traveling internationally since tomorrow isn’t promised.
@@iamkesha. I would pay it off. We made the jump in March of 2022. Today we are completely debt free including our home, have 22k in emergency fund, started maxing out 401k match plus Roth, and have 10k in extra cash and growing.
I’d suggest paying it off over 2-3 months. Protect yourself by maintaining the savings or even building it up, and take care of debt. Nobody thinks about the fact you could lose your job tomorrow. You’d be debt free but be strapped and panicking
True
You might have missed that there was $3K leftover.
Pay off that car!
True! They never mentioned that you could lose your job and no one knows when the next job will be. And i just went through this. I DoorDash for 6 months because i could not get a job, so i agree with Dave method but i also believe it’s based on the person. I would do half towards the debt and keep half and pay the rest aggressively!!
If you lose your job you still owe the money for the car which they will then take and which you won’t be able to get another one because your credit will be trash and how will you get to your new job then? Pay the car off!
I agree.. That's what I'm going to need to do for my school loan, which is 30k. Things happen unexpectedly.
$155k income and their debt is $20k? I’ve heard worse situations than this!
i’d say that’s actually pretty well and with that income they can take their time paying it off
Or, there is the possibility they are lying about their income. Nobody making $155k is worried about $20k of debt. That’s one year of being on the ball and it’s gone. Not sure why they even bothered calling in.
@fieryjalapenos4442 What is the reason to lie about your income on a show like this? After I went back to school, I tripled my income as well, and I didn't want to pay off my debts either because I was scared to lose the job and have no money coming in. It wasn't until after a year of a steady paycheck that I paid significantly down on it. That fear, while it may be irrational, it is very real
@@SweetEssie I always love this. You tripled but of course don’t say to what. Most likely something stupid like you went from $20k to $60k but of course you’ll say something like “I don’t have to share that.” Like that’s somehow too personal but you’ll hop on a chat and cry to a stranger about how you tripled your income and so that magically means no one has ever lied about their income levels. You’re a funny gal.
@fieryjalapenos4442 You can just ask me instead of assuming I don't tell you. I was making about $16 an hour and now I make $100k. But please don't respond. I don't like ill mannered people. You can keep that to yourself. Have the day you deserve. ✌🏾
I would keep the savings account intact. With their income they should be able to put several thousand dollars a month into the car loan and pay it off in a relatively short period of time.
Not several but prob 3-5k
Exactly, the reason most Americans are in debt is because of the lack of savings. They don’t have enough money for any type of emergency. ESPECIALLY if you own a house.
Either choice sounds good in his situation
I disagree. Pay off the car and build up the savings quickly. Not the other way around. If you keep the loan and get layed off, you will be in a much worse position.
agreed. why did dude even call in unless he isnt telling the truth on his financial sitiation
Wonder if this guy really called in and expected to be the exception to Dave’s plan?
Most do.
Right lol
I was thinking more like he was hoping to get a free in financial peace University
I knew the answer, I only listened to see if he was the exception.😂😂
If his name was Jimmy...well yes!
Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.
I didn't drain my savings to get out of debt, but I also didn't call Dave Ramsey and ask him to bend the rules just for special lil ole me. I figured out what savings level I was comfortable going down to, crunched the numbers on how much more interest I was going to pay by not putting that money towards debt, and how much longer it was going to take me to get out of debt by doing so, and with that info I made an informed decision to take a couple extra months and spend a few hundred more in interest to maintain the safety net.
Exactly. It’s great to be debt free but jobs are never 100% secure. You have to maintain a decent security fund first “just in case”. Waiting a few extra months like you mentioned would have been the best move.
Exact plan we are doing it’s not worth not having enough if emergencies do happen. Pay off but only so much.
@@Nikki-ks6wi Right, and by being debt free is a huge step towards financial freedom. Also is important having the mortgage paid off for secure housing.
Thank you for this. I've been struggling with trying to decide if it's worth draining my savings to be debt free. I've got 2 kids in school and let's face it, a lifestyle I'm comfortable with. The 2 debts are vehicles both under 5% interest (2.65 & 4.99). I *technically* have enough to clear everything out but it would literally mean draining my savings and living somewhat uncomfortable for a bit to build everything back up. Sounds great on paper but real life application is different and my #1 problem with any financial personality.
I feel much more comfortable knowing that even despite having some debt I have 3+ months of living expenses in savings that I can still pay down somewhat aggressively.
@@FirinMahLazer1 yes that is correct. But let's say one loses their job. In this scenario, one would be ending up using losing the savings much faster by paying outstanding debt and regular living expenses. Where as if one loses their job being debt free, one would only have the living expenses to worry about.
Don’t be afraid to be debt free, if you don’t like it you can go back into debt! 😉
I’m single and have no dependents. I earn just over $100k/yr. Paid my house off 2 years ago and drive a 2 year old car that is paid for. I own 1 rental property and have a small mortgage on that house that the rent income more than covers. Have no other debts. I’m investing close to $35k per year and not having a house or car payment is how I’m able to grow my wealth so quickly. I feel very blessed. I am borderline obsessed with investing.
Congratulations 🎉 I hope you don't become obsessed in investing but give and live WELL 😊
What is your career? I’m trying to go to school for something that will be worth it. My work will pay for school so I’m trying to take advantage of that
@@tystephens2267 I am the controller for the company I work for, which basically means I oversee all of the accounting and financial aspects of the business.
I hope you bought BTC.
I want to hear the callers that make less than 60k a year..I would live in heaven if I made over 100k
Meghan Maureen Kristensen is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Don't be afraid to be debt free... It is awesome....... You will build wealth so quickly when the debt is gone
Yes ! We couldn’t build any wealth while having debt because we were fearful of paying off the debt and leaving little money in the bank 😊
But 10 years later. No mortgage, no other debt and now we invest and save and am enjoying life ! 😊
The richest people in the world use leverage
@@cjhoward409 I don’t buy it. You must have had a very small mortgage and/or got a huge settlement.
The richest people in the world use debt
How? I heard about other solutions except savings but I'm no expert in stuffs like this and I wouldn't want to invest a lot of money and lose money.
I was homeless in 2003
bought a home in 2007 - paid off in 2014
bought a bigger home in 2017 - paying off this home in 20 days. That is my only debt.
Way to go dude!
Wow congratulations!!!❤🎉❤
What did you do to accomplish this?
And this is what drives me to get my bum off the couch and my mind stuck on this “poor” mentally. Tell us what you did please
How ?
Not trying to be mean but dude, "You are making $150,000 a year." Just use common sense and you'll be alright. 😊😊😊
I’m 57 and became debt free in my early 40s. I’ve paid cash for everything since then and that includes houses and cars. While I live below my means and save, I found that the best incentive to save aggressively was when I had debt because there was a clear goal of reducing that quantum. It was always a no brainer to me to deal with debt first and save later for other things including retirement. Since becoming debt free, there has been less incentive to save hard and had I the same discipline that I had when younger, I could probably have retired by now.
I am 41 and began paying off debt as Dave recommends. My wife is 32. I will do my very best to save up a retirement and live debt free from now on. I don’t know if I will ever retire. But the struggles my wife and I will go through will teach my kids not to make the same mistakes we did.
Also. If you have any advice from now to 57 on what you would have also done Please let me know.
Congratulations in being debt-free.
Are you rich
I have a similar thing. I'm way less aggressive about saving for myself than I ever was about paying off debt. Hmmm
When debt feels like security the banks own you. 🤷
We are all debt slaves to a debt based banking system.
@@RusskiCommieBot
I am not. I owe nothing to nobody 😀
@@cjhoward409 *anybody. Double negative.
@@gonnahavemesomefun
Well, since you seem to think this thread is an English class, you also are incorrect. I should have said …. I owe nothing to no one. But nice try calling out my verbiage mistake. 😆
@@cjhoward409 not an English lesson, just a point of clarity so that your intended meaning is understood. Although sorry to pick you up on it, the indefinite pronoun needed a hyphen “no-one”. A better structure would be “I don’t owe anything to anyone”. But thanks for the update, it is now clear what you meant.
$155k gross combined income. That should be around 9k/month net. Even with generous expenses, they should easily have a surplus of around $4k/month. If they don't have at least a 4k/surplus per month, they need to seriously examine their expenses.
I was stunned how he struggling being on a huge salary
@@howlbeast he wasn’t struggling and it’s not a huge salary
@@howlbeast He's not struggling. He's just doing multiple things at once. He's putting money in savings, he's paying heavily on the car, he's probably investing 10-15% of his income in retirement (or up to his matching amount), I bet he's also putting money in the kid's college fund, and he's probably had some lifestyle creep (besides the $60K car). However, I seriously doubt that $5000 is a proper emergency fund for a family of three...probably not even close to three months of expenses.
@ganthc agreed, especially considering the first year of a child's life (and especially around the birth) has the potential for some BIG medical bills
That’s not a lot of money in Ca
I do the same thing. But for me, I rather have a cushion in case things go bad than be debt free and have nothing. To each their own.
agreed bro. agreed very much.
Definitely wouldn't empty that 'safety net'. Especially if your affording thr monthly payments OK.
Life can change in a heatbeat and being debt free is little comfort when there's no money coming in and no money in the bank.
@@deezelfairy big truth right there.
I was just debt free to begin with.
Cushion growing since high school.
Yeah I don’t like his view on this. I could pay off my debts today too, but that’s just dumb to drain all your cash. He’s always saying “Murphy will move in!” then tells people every day to drain their cash down to $1000 for 24-36mo while getting out of debt, and expects nothing to go wrong in that timespan.
Lots of stories on Reddit boards and such of people cursing Dave because this exact thing happened to them, and they ended up in MORE debt than less.
I know the feeling. Having cash in the bank gives you a bigger sense of security. Where as you can pay off the debt, but then you have nothing in the bank in the off chance that something happens. Let’s say a medical bill comes up or you need to be outta work for a week or two, now you have no security in the bank for the “in case” factor...
Dave doesn't think of that. He have million, so he wouldn't care.
He does not live in the real world.
That is what the emergency fund is for lol
@@MoltenArmour really, 1k?
I would pay half of the 20k left on the car and pay the rest off in the next few months
@@MoltenArmour yeah, and if you use all of the money you have in savings to pay off all your debts, there goes your emergency fund...
Buying a 60k car is stupid period.
I bought one, it is a nice SUV.
Eh you only live so long, as long as you can afford it. At 160k, that’s a fine purchase at that age.
Debt is draining your future savings.
BS6 and husband was laid off in December, it scares me to think where we'd be if we had any debt besides our mortgage. Thank goodness we were aggressively paying it off up until the lay off!!
Pay off the $60k car, sell it, buy a $25k car with cash and bank the difference. Out of debt with savings to spare for your fully funded 3-6 month emergency fund.
Negative equity. Just because buy it at 60k doesn't mean it will sell at 60k. He will most likely take it at a loss.
Lol so you want him to pay it off just to sell it? That’s silly
@@reese85 why would selling a depreciating asset to stockpile cash be considered silly? Silly is buying a $60k vehicle when, at the time you are grossing $30k a year. You have to pay it off to release the title so you can sell it and get a car that is more in line with their new goal of building wealth as opposed to looking good to their friends.
@JasonLestage you owe 20k on a 60k note, assuming car is worth 50k. Why should the car owner dump 20k when he can sell it and take a loss at 10k. Logic says you want to pay less
@@JasonLestage smh they bought the car at 60k and laid off 40k in two yrs and on top of that saved up 24k! So saving money isn’t an issue! So pay off the car, don’t sell it and save back up the money
I became debt free at 60!!! I finally feel rich( peace of mind)
congrats!
I love how Dave has the humility to always repeat the same fundamental story that built the essentials to the baby steps despite having done it for 20 years.
Perhaps new listeners are here. Nothing but great advice to reiterate, over and over imo
How is $5k a 4-5 month emergency fund?! Especially with a 1 year old!
ref dialogue at 4:55
@@djsausagebiscuitsI would not take the risk in this economy. My company just laid off a ton of people. The only debt I have is my mortgage, but I’m struggling with the idea of spending my savings because I would feel much more comfortable with at least 8 months of mortgage payments set aside just in case. He can still be aggressive in paying down his debt while maintaining a savings buffer.
Ok so guy said they're able to live on 30K a year. Add 20 as a very generous reserve due to the toddler or whatnot, they should be putting away 8K a month ie 100K in a year with a household income of 150K! There must be something that the guy's not telling or otherwise he'd have that car paid off in 2-3 months! Especially being "aggressive" about debt as he puts it.
On 150K how is he not paying the debt faster there’s something going on
They paid off 40k in two yrs and saved up 24k! Seems like there doin ok to me
Might be they really make a 100 K instead and not the 150
He basically just finished school and is trying to figure out what to do with his new salary
It's astonishing that people call in with the exact same questions every day.
Todd that's because although it is the exact same questions, it's different people asking the questions, so that explains it.
They could, start limiting the amount of "doubles"
different situations. everyone is unique. Educating the public is difficult. Dave has been doing this for decades. why is everyone on board? Nope. people love debt, love credit, programmed by rewards and shiny.
Dave DROPPED THE BALL ON THIS ONE.
The guy bought a $60k car, made 2-3x payments so there is equity in the car, sell the car take the equity and buy a cheaper car free and clear and never touch the $20k in savings. Sad Dave sad
Ruff ruff woof woof
Will the cheaper vehicle have the same longevity? If they pay off this one, they can drive it into the ground.
I like this option better.
Yeah buy a nice used Toyota. Be smart.
Disagree with you and Dave! Use $10k-$15k of the savings and pay that into the car then pay the last bit off over the next few months which won't be a lot of extra interest at all. That way you still sit on a decent sum of cash for medical emergencies if needed.
If their earnings were less and the debt was more different story but this couple is really not in need to immediately pay off the balance of the debt, there's very very little risk here actually. No drastic measures needed at all, a few months and all done
They can pay it off in three months. He didn't need to call up. He don't good.
I would not drain the bank account. He can easily be fired tomorrow.
And so can you, if you have a job! But a freeloader has no worries....
He def don’t don’t good
I know the feeling. I have the same problem
Buying a new car has to be one of the worst uses of money. It depreciates so fast, it'll be worth half what you paid for in a year. Get a used one with low miles on it. That's if you aren't already pretty wealthy. If your rich but whatever you want
Being debt free is the best
I like have a nice cash balance too - when I got my mortgage knocked down we did it a few months so we could keep our savings at a decent level (what felt decent for us).
it took time, but taking decent bites out of the debt worked out nicely over a year. but then we had no other debt so it was easier...
now - I"m building my cash savings faster having gotten rid of my mortgage and other debt...
Several thousand is a stretch! Realistically prob 3-5 depending on their other bills
If only there was someone on this side of the pond like you, glad I found your show on UA-cam 😊
Being debt free in these scary economic times gives you peace of mind. We skipped vacations etc. and paid off our home in 9 years 3 months. My expenses are utilities, internet, some streaming services, insurance, and property tax. Do I have a budget now? Of course and I track my spending. I just retired at 62 and now is the time to start enjoying time with my family, working out more, playing drums etc. Debt is your enemy, believe it!
"Debt is your enemy"? Nothing is ever so clear-cut, absolute.
It would depend on what you did with that debt.
Debt can accelerate wealth-building. It's what companies use to expand their business, or rich people to accelerate their wealth.
It is also used poorly by the financially illiterate. And then, yes, it can destroy them.
Get financially savvy, and leverage debt, not be afraid of it. And certainly don't make sweeping statements that don't apply everywhere.
Debt used on assets can grow your wealth faster.
But, used on liabilities, can drag you DOWN faster.
You must be clear on what is, and isn't, an asset or liability. Your cars, your home and a too-expensive education are all liabilities.
A sensibly priced _and relevant_ education (one that prepares you better for a job), your job, a second home, and stocks, bonds etc, that appreciate over time, are all liabilities.
Assets PUT money in your pocket.
Liabilities TAKE money from your pocket.
Debt, leveraged on ASSETS puts MORE money in your pocket.
Debt, leveraging liabilities TAKES even more money out.
As simple as that. The key is to recognize what is an asset, and what isn't.
If I were making 150K a year, I would not have taken out the car loan at all. I do not understand why this guy is not paying off the car?
Dude, you have $24K in savings and you owe $21K. Therefore, you don't have $24K in savings, you have $3K. I've been in debt and am now debt free. Take it from me, debt free is better. You live frugally, so you will be able to put away money every month and you won't have that annoying car payment around to remind you every month of that time you did stupid. Before you know it, you'll have a real $24K in savings and go from there.
I saw Rachel in a fb reel and started following her but I had no idea she was Ramsey’s daughter. I asked God to help me in my finances and I believe he led me to y’all.
If they bought a 60k car making 30k...guess now at 150k buying a 100k car would looks pretty smart lol
I pulled some money from my savings and pay off all my crrfit cards.... And stop using them...just use cash or my debit card.
What’s the interest rate? I’d be very unlikely to drain all the savings unless the interest rate is terrible, which I doubt it is. Just pay it off on the next few months of you really want to, or don’t bother if it’s an old pre rate increase manufacturers rate.
don't pay it all at once....take 1/2 now....then build a couple of months then pay another bigger chunk......will be in the same spot by year end......but DO NOT drain your savings.....
My car is 1.8% interest. I could pay it off now. Or keep it it in a 4% high yield account. Dave's advice would have me pay off the 1.8% loan. I'm not going to do that.
LOL so you love making 1 to 2% on your tiny account, right? your 4% is more like 3.5 or less after taxes. then add then loan compounding. you get 1 to 2%
@@lolwtnick4362 Yes.
You should be afraid to drain savings to pay off debt. I got all amped up on this get out of debt, balance-sheet myopathy, and I did exactly that- wiped out all my debt: $14K. And mam, did it feel good. Until I lost my income. It was at that point I discovered that I had no business paying off debt without having a true emergency fund- 3 to 6 months expenses. Paying off all the debt actually put me in bankruptcy - no joke. I'm sure some smart-ass here knows it's all my fault (never said it wasn't) and that I should have (fill-in-the-blank). Yeah, well I didn't.
Your balance sheet is important. It is the ultimate measure of net worth and the biggest indicator of financial security and stability.
But cash flow matters. Managing debt while working to the point where you qualify to pay it off is the best way to protect against downside risks of focusing on getting out of debt to the exclusion of all else.
How were you in bankruptcy if you paid all your debt off?
Don’t be afraid, your money is doing absolutely nothing for you sitting in a savings account. It’s actually losing value right now every day it’s sitting in your account. Keep a little for an emergency fund and get your car paid off. Car dept is going to cause you a lot more stress than a temporary stall in savings.
I have money sitting in my savings account, been thinking in putting some in T Bills or something that would make it grow.
Likewise your fixed rate debt is also decreasing due to inflation. You should always take the interest rates into account when deciding to prepay debt.
@@aaront936imaginary numbers on paper.
Having debt is like investing in stocks with negative returns. If you pay off a debt with 20% interest you are gaining 20% on your investments
What about someone who is paying 3% on a car but is earning 5% in a high yield savings account? You realize you are losing money to take money out of savings to pay down the loan?
If you have $40 grand don't pay $30 grand debt. Wait until you get about $100 grand to pay off the $30 grand at once assuming you're still making minimum payments. It won't have much impact on your savings and investment.
i feel i have to keep money in my checking account because if you only have a few hundred or a 1k on hand and something breaks you are back to putting it on a credit card and taking out a loan. i try to keep my running balance over 8k
Car trap,I paid cash no debt for me!
Me too
Sell the stupid car and get something more realistic. Didn’t address the real problem enough, overpaying
Fyi. Get a cheaper car, sell the expensive one.❤😮
I pay my CC off in full within 30 days of putting in on- never want to pay a penny in interest and be in debt I also get rewards and cash back on purchases (which is why I put it on the Credit Card!)
I have savings and it feels great paying everything off and being debt free
Less stress aswell
the issue is People, too often lie to themselves of what a “reliable car” is. A 10k 8year old Honda CRV is a reliable car.
21k in debt is nothing man. Just get organized, live below your means. Beans and rice, you can do it.
I know it’s Dave’s plan & it works but me paying off a 21K debt when I have 25K in savings freaks me out! What if he gets laid off after he pays the debt? In his scenario he has his wife’s 30K salary but in my scenario I’m single & have 12K in savings & a 10K debt. I’m so scared to spend the bulk of my savings.
What if they both lost their jobs after putting all the money towards the debt? I am like you, I think of the absolute worst scenario. $4k would freak me out as well.
Just do it like NIKE says.😊
@@lashawnkuykendall1005 Or like how Shia Lebouf sings it.
It really depends on what your job is, certain jobs are very very secure. I mean there is always a chance of a lay off, but we have to weight our risks.
@@themotobikelife weigh*
I would save and chunk. Pay $10,000 on the car. . Leave $5000 in savings for 6 month emergency fund. Max out a Roth IRA with $6500. Start saving for a house, etc. You or your child could have a $3000 emergency. He can't guarantee that will not happen Follow your gut. Hopefully, the car is the only debt you have.
I really don’t be understanding these calls with folks making 6 figures and having any debt. Lmfao pay that stupid shxt off!
That’s mostly that calls in. People with large incomes over spending
I feel like there is more to this story. He is able to pay the car off quickly with or without using the money he has in savings. Or he could even use half and pay the rest off agressively. So why doesn't he?
Rachel is right. It is a mindset shift. Sounds like he hasn't made that shift yet.
The problem we have is because Most people always taught that " you only need a good job to become rich. These billionaires are operating on a whole other playbook that many don't even know exists.
Money invested is far better than
money saved, when you invest it gives
you the opportunity to increase your
financial worth.
It is remarkable how much long term
advantage people like us have gotten by trying to be consistently not stupid,
instead of trying to be very intelligent.
The wisest thing that should be on
everyone mind currently should be to
invest in different streams of income
that doesn't depend on government
paycheck, especially with the current
economic crisis around the world. This is still a time to invest in Stocks, Forex and Digital currencies.
Many individuals report success in investing in stocks, forex, and cryptocurrency (Bitcoin), yet I continue to struggle. Can somebody help me out or advise me on what to do?
Even with the appropriate method and assets, some investors will still outperform others. As an investor, you should already know that nothing surpasses experience, and that is final. Personally, I had to seek advice from a stock specialist, which allowed me to build my account by over $35k, extract my profit just before the correction, and now I'm purchasing again.
Mr. Ramsey, great advice and by the way, I love that green jacket!!
What is Dave’s fucking problem?? Why does he need to belittle everyone ?
Lost empathy and became out of touch along with way
Dave is being debt free and rich all we have to strive for in life ?
What kind of car did he buy for $60K!
Hope it is a Lexus!
My Lexus was 41
@@katemiller7874 Mine was over 50K RX350 F sport
I have 1600 left on my car. I get paid this week from my part time job and next week from my full time job, I know if I close my eyes I can clear it this month. But the thought of using 2 pay cheques to pay off something is bothering me LOL
Sell the car get some roller skates
Why? Seems like they got it brand new and already paid down 40k! There better off paying it and keeping for as along as they can
@@reese85 wrong depreciation
@@reese85 they can sell it buy a car with 50-60k miles for 10000$ and stop all that money from evaporating
@@jasonleatherwood2172 smh it’s wrong! They paid 40k off and got 20k saved up! They could at least throw 10k at and pay the other 10k in a few months and have a brand new car! You guys are crazy
@@jasonleatherwood2172 lol so let me get this straight! You want them to sell their (assuming cuz of the price)! There brand new car, and buy a used car for 10k with 50-60k miles on it vs paying off their brand new car that they only owe 20k on with 20k in the bank with lower miles and them being the only owner for a used car and that makes sense to you?
Where are all these jobs that pay 6 figures because I can’t find em? Had 4 jobs and never made above 40k…
The 1 year old is not going to need any major money. I would take 1/2 take 1/2 of the 19 and put it toward the car. and then buckle down on spending to pay the other 1/2 from spendable income.
Or be aggressive pay it off and take from you spendable income and replenish your emergency fund.
I went through this last November. It was the best decision I made!!! My income feels like its really mine for the first time 😂
Just imagine the house they are going to buy😮
Dave is all over the place with his advice. One clip he preaches the importance of having an emergency safety net, and then here he tells the guy that there "probably" wont be an emergency? Like what??
Dave needs to understand that 120k is gross and not net take home pay
He should save a full emergency fund and then pay down the car if he wants to.
I just don’t understand how people don’t have common sense but can make that kind of money. Loose screws or missing ones for sure.
If you have 100 bucks in your pocket and owe 100 bucks you have an empty pocket
“Needed” a car and went and spent 60k on a car???
Right. Needed would maybe be $20-25k at most if they wanted to go a little nicer than a clunker. $60k is a dumb move, which the caller admitted.
I don’t get how people that make so much money can be so bad with it.
It's perplexing. 😅
pay that loan off, it feels sooooooooo good knowing you no longer are paying monthly payments!!!!!!!
Should the same principal be used with a mortgage? I have enough savings to pay off half my mortgage today and will still have 6 months emergency and save 15% for retirement and don't have any kids.
A house is different from a car. Houses typically appreciate in value so carrying a mortgage is not necessarily stupid. Cars typically depreciate in value QUICKLY. Ramsey's method would have you paying down your mortgage as quickly as it is prudent (do not put yourself at risk by not having an emergency fund). His method says never buy a car with borrowed money.
He simply couldn't hear Rachel say "pay the car off."
With a 1 yr old baby, this caller needs an emergency fund!
$60k for a stupid car. That thing better fly
Dave Ramsey needs to stop waiting to talk and start listening to hear.
I guess they haven't had that enviable high income for very long?
If I were they I wouldn't have that car loan very long!
He can always pay half and see how he feels about it afterwards. That way you’re super motivated to save much more and faster to replenish what you used as payment.
I ve always had a safety net. Was nervous about only having 1000 in emergency fund but thats just me.
This is my favorite duo! Father daughter vibes is good with these two!
Losing 8% to earn 4% is dumb. Just get rid of the debt.
Why would you pay off any debt with an interest rate that is lower than the rate of inflation? Debt passes the effects of inflation to the lender. They never mention the interest rate on the car loan.
Probably because having a car loan is inherently stupid.
@@amireallythatgrumpy6508 If the rate it lower than inflation it's dumber to prepay it. Pay it later with cheaper inflated dollars.
If he has good health insurance, as long as he can make the out of pocket max he is good.
Right now we are focusing almost everything on paying off our mortgage since that's our only debt.
@Jermaine.....what is your mortgage balance? and how much extra are you paying above and beyond your regular payment?
I ask because I pay 3 mortgage principal payments a month....1 principal payment with my regular mortgage payment plus 2 extra principal payments.
I am really knocking it down fast and saving thousands in interest.
@Jermaine.....and also, what was your mortgage balance at the start of your loan?
I have the same fear. I have a car with 5,000 in debt still and I have about 10,000 in student loans yet. I make 55,000 a year and I have enough money saved up now to get rid of all of my debt, however, it would leave me with almost no cash left.
That doesn’t make any sense. You’d be able to save more money at a time if you pay off your debt first.