I think Dave Ramsey is kind of like debt rehab. If you’re a debt addict, his advice can be very helpful. But if you’re doing well financially and do not have self control problems around spending, his advice may not be optimal.
Yes Dave was helpful for me when I was coming from a family that was deep in debt and loss our house and parents that used payday advance loans and died with bill collectors demanding money. I was terrified of debt so Dave’s approach made sense. Now that I’ve made reasonable decisions in life, the money guys are helping me reach the next level. It’s more psychological than anything
Exactly. This is what a lot of people don't understand. Sure to people who are financially savvy, some of Dave's takes can seem unreasonable. But the reason he doesn't recommend credit card use at all for example is because for him it's a lot safer to assume that whoever is on the phone is going to fall into the majority of people who accumulate credit card debt. Not the small minority that never carry a balance. Dave isn't doing this for the people who have it all figured out and always behave rationally.
I think that worked without a lot of publicly available personal finance information and a more predictable economy. Now that there is more information and less predictability, we don't have to write off most of the population as "stupid" (Dave's words). Nowadays, people can't actually afford inefficient strategies with rising prices everywhere. I would never tell a person younger than 40 today that it's okay to be inefficient.
@@vulpixelful the number of Americans with credit card debt is at a 4 year high. Americans in general are notoriously bad with money. And Im not sure how todays economy is more predictable. Compared to when? Not using credit cards isn’t detrimentally inefficient. Especially when compared to using credit cards and carrying a balance and paying interest.
I love that the Money Guy team shows compassion and understanding while giving good advice, rather than screaming and insulting the people who ask them questions
I agree completely. I listen to both. Money Guy for actual advice and Dave Ramsey for entertainment factor and for those who need a place to start. Both have their purpose I think.
I switched from Dave to Brian/Bo years ago and the main reason is they don't fold their arms into their armpits and scream into the mic at callers. Also, and this isn't mentioned enough, is that sometimes Brian and Bo will actually disagree with each other or have slightly different approaches and that's what I love about them. Plus they provide nuance and aren't super rigid. I hate how the other Ramsey hosts are forced to say exactly what Dave says. They can't have a mind of their own and you're literally listening to the same person no matter who's mouth it's coming out of. Dave is good for a "break glass in case of emergency" approach to people who have zero financial literacy. Beyond that, he's not the guy.
I think Dave may help some of the people who are completely irresponsible with money. However, he assumes everyone is that way. Dave is one who thinks that because some people are alcoholics that no one on the planet should ever have a single drink., even for the toast at their daughter's wedding. It's ridiculous. If you are generally responsible with money and looking for ways to maximize it, the Money Guys are 100% better.
being that dave is extremely religious and carries that into his business, it makes sense how dogmatic they are. there's no nuance with any advice he gives.
I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
Yeah, not very intelligent.. Unless the match has a limit for when it can be vested.. You could literally just take the money out of the 401k immediately, pay a 10% penalty, and still be up immeidatley.
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, jokingly.
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.
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
My favorite thing is this isn’t a “trash Dave fest”. I agree with Dave on some things and disagree with him on other things but I think he’s great for a lot of people. So appreciate you guys!
@@lindsaysimplified I agree. Each time he trashes/ridicules someone who thinks or advises differently than he would, I lose a little more respect for him. The same when he says he has family members who "vote wrong." I know he jokes about THAT, but underneath, is it really a joke? Oh, well, everybody is different.🤷🏼♀️
@@Red_with_lead If you're paying off your balance every month, that's a silly way to think. I don't pay a dime to use my credit card, but I get a couple percent back every time I do. If you can control your urges they're an excellent tool to save money on things you were already planning to buy while building your credit for the things that debt is valuable for, like cars and homes.
From a personal standpoint I agree.I do disagree that Brian thinks he owns the banks by not carrying a balance. They make plenty of money off all the transaction fees the seller pays to pay your rewards. These costs end up embedded in prices which we all pay, (including the people not using cards well or at all), so I don't think good use of credit cards makes society better off, but it can make you better off.
@@Red_with_lead - and not everyone who drinks is an alcoholic. In doing a quick interterwebs search, 62% of Americans consume alcohol, while 10% of Americans are alcoholics. So....yeah. if you figure that of all the people who use credit cards, 18% of them can't handle it and get into uncontrollable debt? Yeah, then those people shouldn't use credit cards. In doing another interwebs search, it looks like the numbers for THAT (50% of americans cary a monthly balance on their credit cards) is probably higher. Underlying principle holds true, though - if you can handle it, you're fine. If you can't, you're not. The trick is figuring that out BEFORE you get into trouble.
Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I completely agree; I am in my mid 40s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky’’ for about three years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Marisa has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
These steps from dave can be productive for a certain type of income bracket. The key to building wealth is developing good habits like regularly putting money away in intervals for investments .The stock market has plenty of opportunities to earn.. I made my first million from going diverse, mainly stocks, etfs and bonds . i use a financial advisor and it's been a year of steady growth..
Looks like she really knows her stuff. I also found her web and read through her resume, educational background, qualifications and it was really impressive.
Exactly how I am. Dave really shocked my system, Caleb hammer helped me realize all the bullshit spending I did, and now the money guys are how I plan on really optimizing my financial future.
I have an MBA from a relatively prestigious university, and you’d think my classmates would have been more team Money Guy than team Dave. But probably 2/3 of them were financial disaster zones. $100k in MBA debt on top of car and house payments. Massive lifestyles. And lousy grades because us engineers who were there on company benefits broke the curve. Dave is a motivational speaker. A salesman. Hes not going to be useful to the people who graduate debt free with an engineering degree from State University, but he’s got a great understanding of the other 98%of American households.
100%, after seeing the situations other people in my life have gotten into, Dave makes more sense for them. For me. Money Guy Team is the way to go. As they said, know thyself is really what you need to do when listening to other people!
There’s a ton of nuance in re: student debt. It’s not the same as a mortgage, high-interest car loan, etc. They are federal loans used to fund education for the masses. Most people have houses and cars. Thats not an issue. The issue should be following the order of operations, keeping DTIs reasonable etc
@@johnraviella6561Yes student loan is not the same as other consumer debt because you can't get rid of it even if you file for bankruptcy. It has unreasonable payoff schedule. A majority of the time it's not valuable. There are tons of people that have college degrees and not even working in their field of study or remotely close to it. College in general is a scam. When you can get credits for bowling or crafting or other stupid s*** it's scam. For STEM fields it's not
A 10% match is basically like a 10% raise...absolutely insane to pass that up over low interest student loans. Also, CHECK WITH YOUR COMPANY! Mine offers their employer match on student loan payments, that is, if you pay 6% of your salary into your student loans, they'll put the match into your 401k even if you don't contribute directly.
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.
The issue is most people have the “I will do it myself mentality” but not skilled enough. Ideally, advisors are perfect reps for investing jobs and at first-hand experience, my portfolio has yielded over 350%, since covid-outbreak to date, summing up nearly $1m.
My licensed adviser of choice is Rebecca Nassar Dunne. Just look up the name. In order to schedule an appointment, you would find the required information. She is quite talented.
My main issue with Dave is not that his advice is inherently bad; my issue is his advice is one size fit all, no matter your specific situation to figure out how to succeed, and if you don’t do it, you’re failing by not taking his advice while wanting to both seemingly act and not act like an advisor (depending on if he could get in legal trouble). My situation might not be the same as yours, or the Money Guys’, or Dave’s so one size fits all doesn’t work for all folks given this!
@@Cathy-xi8cb I don’t disagree that it’s a show and as a result there has to be some level of showmanship. But what is a big portion of the show consist of? Taking peoples calls on their situations with debt, credit cards and investments and money and reacting to or telling them what he thinks they should do…
Dave's target audience needs fundamental guidance at the behavioral level. Dave is not trying to be Money Guy. Dave's statistical data supports his approach.
With $300K cash, invest in recession-resistant stocks from sectors like healthcare, utilities, consumer staples, and technology. Blue-chip, dividend-paying stocks with strong balance sheets are ideal. Consulting a financial advisor can refine your strategy.
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
@@patricksimon8943that’s not worth arguing. It’s obviously true. That being said, his suggestion is because it’s for the lowest common denominator. The weakest can’t multitask when it comes to fixing their financial life.
I do agree with him on some things. However, I am in vehement disagreement with him on one thing. One should ALWAYS invest up to the company match. Not doing so is foregoing a portion of your salary which you don’t want to do, and even credit card debt doesn’t have a 50-100% interest rate. There’s no other investment that can give you a guaranteed, risk free 50-100% rate of return on top of market returns.
Meh.... temporary pause for less than 18 months will have negligible impact on your overall financial future, so focusing on being debt free in less than 2 years is better.
Forgoing a portion of your salary is absolutely the right way to look at it! If setting aside 4% of your income in order to save and invest 8% doesn’t allow you any margin at all to clear debt, you need substantial lifestyle changes, and the 4% probably wouldn’t clear the debt regardless. As someone in my early 20’s with a family, I certainly could use the extra couple hundred bucks a month that I invest. But I understand I’ll never get this decade back, and the thousands I’ve already invested will set me and my family up for financial freedom in the future.
@@DanielBlackkerthey cut some of that call…I did the math on Ramsey’s channel. Not taking the match would end up costing the caller over 2 million dollars at retirement, and only pay off the debt 2 months sooner. Not taking the match is very significant.
Yeah Dave is kind of delusional on some things. His debt is the devil policy makes him forgo math and logic in many cases. Also 15 year loan 4th of gross income dude the avg home costs more than 400K now and before people come with anecdotes there are always exceptions to the rules, obviously location matters, but problem with more rural locations is the salaries often associated with that area are also significantly lower and mathematically the ratio is roughly the same. Also a 30 year loan makes way more sense than a 15 year loan. You can always make extra payments - and you can even run the math as if you were paying a 15 year mortgage etc, but if crap hits the fan that’s a ton of money your going to have to have in an emergency fund- also 3-6 months no longer works more like minimum 1 year- ideally 2 in this economy
So if you can get out of debt and say 15 months or 24 months versus what percentage you're putting in your 401. The amount of money you'll save on the interest of all your debts and the money you can throw in more after it's worth pausing. Stats don't lie look them up
I’d like for George to stop parroting what Ramsey says. When all Ramsey personalities say the same advice, it turns into a religion rather than personal finance advice.
Ramsey is very religious and so is his organization and company by nature as well as the people he decides to make a part of his team lol He’s based his whole organization around the rules and steps he set out in books he’s authored….and a lot of people he’s hired are people who have read and diligently follow the principles he’s preached in his writings. Sound religious to you ?
Some people need a religious like experience to cling to in order to get rid of their addictive debt. I don't personally follow everything Dave recommends, but for people who either don't understand, or don't have the discipline to make good decisions, following Dave's rules as if they were a religion will work. No one is becoming a billionaire on Dave's plan, but a lot of people don't want to do that - they just want to not worry about money and to retire with dignity.
I was shocked that DR said to skip the >100% return on 401k and instead focus on low-interest student loan. I agree with you, you can't go back in time to get that employer match if you choose not to participate. Over your working lifetime, those early investments and employer match will make a huge difference.
I don't like ramseys advice because its a one size fits all approach. Which often makes no sense. You have to do the math around it. But the one math flaw everyone makes is the one you just did. You absolutely cannot compare interest paid and interest earned and decide which one is better. that investing early in the 401k is the better option. Frankly it probably is in many cases. But... you can have as large of a spread as you can imagine.. and i can put together a financial example of all three outcomes. That forgoing the 401k is bettter. That its better to start with the 401k. Or that its a wash and doesn't actually matter which one you do. All possible outcomes regardless of the spread. And one thing ramsy gets right is actual behavior matters. You can say youll do something a certain way. But if your not actually going to do it. Then the math comparison doesn't matter. Your using math in a way to justify a choice you've already made. Math should be used to inform your choice. My point is it can be in your favor to pass up investing for a short period. Investing for two years at 6% in this setup is basically going to get you very little. You'll turn 6k into a 16.7k on an average year. All it would take is you freeing up around 1k per month of payments in a year. Less actually. And you would likely out pace your 401k investment first strategy. I mean there's a lot of angles to this so its an individual setup question. My point is to illustrate that pausing investing is not a dumb idea. Its actually can be a very goid one.
As Caleb Hammer would say, if you’re a credit card person(not spending more than what’s in your bank account and always paying off the balance in full), have credit cards. If that’s not how you use credit cards, you’re not a credit card person and you should stay away. However, you can learn to be a credit card person.
They are exactly right at 14:50 , Ramsey is necessary for the majority of Americans. But for financial mutants, the Money Guy really takes things to the next level for people who have developed self-control and are not the average person.
All I can say is I’m so happy I found you guys at the beginning of 2023. I feel like you all try to understand the position of people and that it’s not a “one size fits all” (no debt ever, 15 year mortgage, etc.) This is coming from someone in the messy middle. There should be guidelines we follow, but personal finance really is personal.
Dave is speaking to a specific cohort : people that have made bad financial decisions and need help getting out of a hole. He helps people who were in trouble and helps them on the road to become millionaires. If you were never in a financial mess and are educated on financial matters, then maybe Dave's rules simply don't apply to you, you are not his audience.
People sometimes refuse to understand who Dave is trying to help. There are tens of millions of people in this country who are struggling with bills and their spending and need a father figure like Dave to be disappointed and angry in their spending decisions, even if they aren't the caller being scolded. And if you think tens of millions is to high a number, realize that the population of this country is so massive now that 15% of us now totals 49.5 million people.
Dave, Dave, Dave..... He will not detour from his baby steps. It is his way or the highway. Personal finance is personal and he doesn't change and adapt to your situation. We were Dave-ish because we invested while paying off debt.
My company paid a consultant to provide retirement classes when I was 24 and just started saving for retirement. The class was called "The Kids Table" and basically their advice was go with a target retirement fund that aligned with your 65th birthday. That was 20 years ago. It is the only thing I've ever invested in. How else can I grow my finance?
target date funds made me a multimillionaire but i also watched them drop 40% in a very short time and take a long time to recover. my best suggestion is that you seek the guidance of a fiduciary to avoid mistakes
Agreed, when it comes to retirement planning, following the steps of a well experienced advisor did the trick for me in barely 5 years, turned my $500k capital to 5 figure monthly dividends. If you want to keep it very safe, then Vanguard TDF may be for you.
Can't divulge much, I delegate my excesses to someone of great expertise ''Karen Lynne Chess'' preferably, you can look up the name on the web, her qualifications speak for itself.
such an eye-opener! curiously inputted Karen Lynne Chess on the web and at once spotted her consulting page, she seems highly professional from her resumé..
Your videos were great!! I am one of your viewers and have been watching your videos lately. I would like to invest, but I still can't find the right investment to commit to. I will appreciate any help here.
I usually go with registered representative; Zachery M Demers, He provides a more grounded approach, looking at factors like market demand, regulatory changes, and adoption trends. This approach enable to make informed decisions rather than solely relying on emotional market dynamics
The beauty of his approach is his dual focus: while he aggressively pursues profit opportunities, he's equally tenacious about shielding investors from potential pitfalls. It's a balance few can achieve.
When I saw his testimonies all over the place I thought it was all made up of stories till I was convinced and gave it a try and honestly I don't regret the move I made because I invested in a big way.
If turning down 4% net compensation will get you angry enough to deal with your debt, just imagine what turning down 100% of compensation could do!!1!1!!
I think that Dave’s methods will prove to work better for the majority of people. Even the things that he says to do which our counter into it like not doing 401(k) match. The vast majority of Americans stay in debt forever. End up having to withdraw from their 401(k), they end up retiring with Dad. I think it’s better to get completely debt-free.
I love that Brian & Bo are friends with the Ramsey team. Dave whipped me into shape financially, and I've enjoyed the nuance from Brian & Bo. While the Ramsey team does cling to their Baby Steps a little too religiously, I think their ideas prompt a lot of good questions. Even if paying off a house early isn't optimal, would it be a burden lifted off me? Even if I never carry a balance on a credit card, do I want to be a part of the system that those companies have set up? Is the $20,000 car really that much more reliable than the $7,000 car? One thing I love about Brian and Bo is that they acknowledge that everybody has different goals and values, and I feel like they give me permission to disagree with them on the little things so long as I'm willing to acknowledge the opportunity cost.
I use a blend of methods, but generally only use cards for groceries or gas. Sometimes restaurants. Ones that have a high % cash back, use on the things I would normally be buying when its their quarter for it. Cash otherwise. They key for me is carry around a check register. Log in both debit AND credit card purchases. Then set the payment to pay entire balance. As far as my register goes, the money is already gone out of the bank, so it doesn't hurt. And, I have cash back with paying no interest at all. I get pick up so it is easier to tweak to make sure it fits the budget I set. By the end of the year, I generally have enough cash back to add to the budget for the holidays without actually coming out of my bank.
I love Dave and his whole schtick is grumpy grandpa. Also his focus is on behaviors that lead to staying in debt, not necessarily the math. Hence his advice. It’s always obvious to me who the pure math nerds are vs the people that add that plus human nature
There are a large percentage of people who NEED Dave’s advice because they need focus to remove debt from their lives and not let it control them. Those same people who gain that discipline are then ready for strategic implementation of the FOO for optimization.
Take Dave's advice to the extreme, and it falls apart. "If I put 1% into my 401k, my employer gives me $100k, but I have student loans at 4%. Should I do it?" He would say no. "It's not about the interest rate" is the dumbest statement. It's ALL about the interest rate.
I agree with the Money guys. I have seen clients putting 5% down payment and making hundreds of dollars in equity over the years. Waiting to save that money would have been harder for them to get into the market. We put a 3.5% 20 years ago and I am glad we did.
On the car cost bit for anyone who is interested. I am currently driving a 2019 Nissan Versa that i purchased for 16k brand new. The cheapest USED car i could find was 10k with 100k miles. The Versa's cost around 17k now and while they are not a super fancy car, they are cheap. Mine has lasted me 4 years and 9 months with nothing more than basic oil change / tire rotation. (i don't drive much so i go by months for maintenance not mileage) I encourage everyone to really look at New "Cheap" cars vs buying a used PoS. (Get a quote online and check with your bank for a loan before going to the dealer)
Agree! I have a 2008 Sonata, that I bought brand new in 2007. I paid right at $20,000 for it, 17 years ago. We have had to do some repairs, but nothing major. If I had bought multiple used vehicles, over this same period of time, I likely would have spent a lot more $. Plan to keep it a couple more years and then give it to son, for his 1st car (if it is still running without having to put a lot of $'s in to it). I will then buy another brand new car.
Calling someone else’s 401k plan “ridiculously generous” must imply he doesn’t do that for his people? What’s the retirement plan look like for a regular employee at RamseyLand?
yeah...Dave's mortgage advice is a great way to combat high housing prices by reducing demand. I agree with 20 per cent, but not the 15 year loan. I always go 30 and just pay ahead .
I work with a few Dave Ramsey superfans. One told me I should have kept renting and saved up to buy my home in cash. Yeah, I like my 3% mortgage with payments lower than my own rent. Another stopped retirement savings to pay off debt with a 5% employer match. I have been putting money into my HYSA with 4.2% interest for a rainy day funs. One of them said I should be using it to pay off my mortgage early. Didn't Dave say to have a good bit of emergency savings? The worst was the advice on a first date I should be asking financial questions like how much debt, income vs debts, etc. How about asking about hobbies or something normal on the first date?
My portfolio doesn’t just cater to dividend stocks. I hold $VFIAX (S&P 500 index fund) in my Roth IRA and $VTI (Total Stock Market ETF) in my taxable brokerage account. Two of my largest holdings. The individual dividend stock positions all complement the index holdings.
Thats when you hire someone to manage your money. You need a (CFP) straight up! personally, I would invest in ETF's and also love investing in individual stocks.
I took charge of my portfolio but faced losses in 2022. Realizing the need for a change, I sought advice from a fiduciary advisor. Through restructuring and diversification with dividend stocks, ETFs, Mutual funds, and REITs, my $1.2M portfolio surged, yielding an annualized gain of 28%.
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
I personally follow the baby steps, but can we all acknowledge that whether people follow the baby steps or the money guy steps, if people actually follow either with intentionality, they'll do so well in life. Having an actual goal that motivates you is so key.
at the 10:00 mark. Dave is 100% correct on this. I just recently paid cash, $5k for a 2010 Ford F150. Runs great, and works fine. I am sure with $5k I could have found other vehicles also, but I was specifically looking for a truck. Yes, you can get good transportation for $7k or less.
Agreed! Research and find a good mechanic, do some research on dependable vehicles, have the mechanic inspect the used vehicle you are looking to buy. Done. Bought a 1994 Honda Civic for 2k back in 2011 that I drove for 3 years without issue while I paid off my debt.
Yes, this is probably the only category where I actually agree more with Dave than MGS. My 2009 car is worth $3-5K and still works great. Good, cheap used cars are absolutely out there. Pay cash for the car.
Dave is teaching psychology. I am not sure why people don't understand this. The people he is trying to help are absolute train wrecks when it comes to money. If you have worked in retail you know what I am talking about. It's the guy coming in buying a $500 tv set and paying for it over 5 credit cards. That's who Dave is trying to help. These people are broken psychologically. That first baby step is meant for these people to hit a goal, then start working on step 2, the next goal. Etc etc. While mathematically FOO is obviously correct, FOO is not going to get these train wrecks out of their bad spending habits and how poorly they manage their money.
Thank you! I agree💯! His brand or product is for the people that mentally are not disciplined enough to maturely manage their money. Could they get there?! Absolutely but historically there is a pattern that shows they need to fix that part of themselves first. FOO, mathematically makes more sense in the long run, but for Dave’s target audience the behavior is the biggest problem. In my opinion people just resist Dave’s approach because of how direct he is in holding them accountable. Again, in my opinion, if you can’t handle being told in a direct way that you made a stupid choice that financially held you back, money is not the problem…
I think that many use DR tp get out of debt, and then when they get a bit of financial stability they start looking around for other teachings, etc...and find poeple like the Money Guy (s).
As a holder of a 2.75% 30 year mortgage, I will never pay that off early. My mom is in her 80's and still has a mortgage, also 2.75%. Invest in the market early, your returns will beat that paltry 2.75%
Been listening to Dave for a few years ( good content ) . His stance on not getting match is one thing I think he is off on ( my opinion ) . He has helped a lot of people though !
In the before times (before covid, BC) I would agree the emergency fund should be enough for about 6 months BUT NOW - Emergency funds should get you through 12 months
Currently I'm just being smart and frugal with my money, I'm in the green 47% over the last 23 months and l've accumulated over $70K in pure profits from DCA’ing into stocks, ETFs, dividends and futures. However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.
completely agree. I have been consistent with my profit regardless of the market conditions. I got into the market early in 2019 and the constant downtrends and losses discouraged me, so I sold off. I got back in December 2020 and this time with guidance from an investment adviser who was recommended by a colleague
Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.
I've been stuck with the popularly ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Thank you for putting this out, it has rekindled the fire to my goal... was able to spot Melissa Terri Swayne after inputting her full name on the web, she seems highly professional with over a decades of experience
I love Dave and it's because of his advice I am debt free. That said I feel I have outgrown his advice. I keep a zero balance on my credit cards and invest a lot more than the 15 percent Dave recommends because I became debt free in my thirties and now I have to catch up. I think Dave needs to update his advice.
10:11 guys… You can get really nice vehicles for $7000. I've been driving my current truck - a 1992 Ford Ranger - for a year, with no significant issues. I paid $1600 for it. For five or $6000 you can get extremely reliable used vehicles if you know what you're looking for (and as to what he said after that, I am probably the least mechanically inclined guy in my entire extended family 😂)
I like the Money Guys and Dave Ramsey, but the Money Guys are definitely wrong here. $7000 can still get a nice car IF you know what you're doing. Just about any Toyota or Honda at that price, if inspected before purchase, would be a good car. There are also several GM and Ford models that are quite reliable and can be found for that money as well.
Dave STILL says all of those things AND that you should be able to take 8-10% per annum from your retirement portfolio and you'll be fine. This is why I follow the Money Guy model now and not Dave's. Even George doesn't believe in a number of the Ramsey philosophies, even though he now has to parrot everything the way Dave wants it. Don't get me wrong, Dave's plan is fine if you need to go hardcore and cold-turkey your craziness. But once things settle and you get yourself stable, it's no longer realistic or practical in the modern world.
The point of WL is the cash value. Be your own bank so that you don’t have to leverage others. Similar to having a HELOC instead of the mortgage. Get something that’s out of the market and can still grow at a competitive return.
Investing at least the match (and I admit, a minimum into a post-tax Roth) while paying off debt got me both out of debt _and so far ahead_ for retirement in my 30s. Now investing the minimum until age 65 will secure my retirement, but I'm aiming for early retirement. Ramsey is literally costing people millions when younger boomers and Gen X are heading towards a retirement crises.
10:04 I don’t know why Bo and Brian are wincing at “7000 dollars will buy you a fine vehicle” It’s true, I bought an 04 mercury marquis out of an estate sale in 2019, paid 3600 dollars for it, it’s now at 215K miles and still going strong. Nothing other then normal preventitive maintenance. When my daughter was born we wanted an SUV to get the car seat in and out of easier so my wife and I got an 8K tax refund and paid 8K for a 2012 ford escape with 90K miles. The car has been amazing. 7K is way more then enough for a functioning vehicle that will give you years of reliable use. A lot of arguments people use for car loans are justification for buying a new car they don’t need, like safety, really by 2008 all cars have three point belts in all positions and two front and side curtain airbags and are unibody cars with crash crumple zones. If you grew up in the 90s like I did whatever car you’re driving from a 2008+ model year is definitely safer no dispute and if it didn’t bother your parents to drive you in a car from 80s when you were a kid in 95 or whatever you should have no qualms about a 7000 dollar car which is probably going to be 06 to 2015 model year depending on the car
I really appreciate the that you guys are realistic about purchasing a home in the modern economy. I purchased my home for $150,000 in 2020 when I definitely made barely enough to afford that home. Since then I have managed to make more than enough money to afford that home and the home has appreciated $100,000 in value and I have an interest rate you can't get anymore. If I had tried to follow any of Dave Ramsey's advice on purchasing a home, I would never be a homeowner. Instead, I am genuinely in the black as a result of my home being worth so much more than I now owe on my mortgage. Because my income has grown so much. I'm also now looking at being able to pay the house off in 20 years instead of 30
Many ‘cities’ in the USA or around the world don’t have houses for $150,000. In many cities $150,000 was a price for a home from 25 years ago. However, if your house is $150,000-$200,000, then yes, you should be able to pay it off within 15 years with today’s wages.
Also here is the deal with the 15 year mortgage. You can take out a 30 year but double your payment and pay it off like a 15 year. God forbid something happens and you need the flexibility you can lower your payment for a short period at no cost. If you stretch yourself for a 15 and have to refinance you will pay thousands in fees at potentially a higher rate and start the amortization clock over again.
We generally / typically have 25 year mortgages in the UK - but they will allow a range from 10 to 40; Were I starting out again at age 20/25 - I would again take a 25 year mortgage out to get on the ladder - I would not make the period 15 years. That said, there is nothing to stop anyone from saving and then overpaying it as a lump sum as soon as able. FWIW, I recently DID take out a 10 year mortgage (June 2020) to buy my wife's equity in our home out after we'd split - I paid the whole lot off in 2 years, 6 months and 13 days saving myself thousands of pounds in interest. The discipline is doing it as though you were in a straight jacket without being in a straight jacket! Ramsey is right when he says it's not a maths problem - it's behaviour! Have a great Xmas every one, btw - the season of goodwill is upon us
Amazing content! I have been following your videos for sometime now, consistently kicking down Wall Street doors for two years now, I have over $320k in stocks. Currently, my portfolio is down by 15%. Wondering if they're any short term opportunities I can invest in.
I agree that there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience.
I stopped listening and taking financial advise from these UA-camrs, because at the end of the day, I end up with a bunch of confusing stocks without knowing when to take profit, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
Elisse Laparche Ewing 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.
The only issue I see with the Credit card use (even if you pat it off every month) is the added 3-4 percent that businesses are adding on to the bill to cover the usage charges. They are basically passing on the Visa/Mastercard fee they are required to pay for using the service to their customers.
George did it in 11 years for the strong fact… HE HAD NO KIDS! Kids are essential and he wisely waited and was smart with finances which most people don’t do.
Strongly disagree, follow the Money Guy Show all the way, from getting out of debt to building wealth. Avoiding credit cards is fine, but don't completely halt your 401k contributions and forgo the match for low interest debt like student loans, and don't only save 15% in retirement until your house is paid off.
Dave Ramsey isn’t the best resource for people who make a good salary and are disciplined. His advice on credit cards for international travel or rewards, mortgages and retirement isn’t the best. He’s good for people who are in a mess & need to get their act together.
@@amireallythatgrumpy6508 wth? People aren’t supposed to visit family in Europe? What kind of kool aid have you been drinking? Life is too short to NOT get out of the bubble & see the world! “Life is a buffet and most suckers are starving to death.” Mame wasn’t talking about food either.
The thing is Dave's advice is for the majority of people. The people who have no impulse control, who aren't good with saving, investing, etc. These guys are more in the weeds than Dave is more into the details. Alot of people can't follow that. Dave makes advice that everyone can follow.
He’s decent for those in chronic debt but his investment advice is horrible. Steers everyone to his Smartvestor pro guys with mutual fund fees. Thats a bit corrupt imo
He dumbs down the methodology because most Americans should not be focused on optimizing when they can't even live below their means. He acknowledged many times over the years that his method is not the most mathematically efficient in terms of building wealth, but it still works very well for those who struggle with bad financial behavior.
@@Poindexter2291 "but it still works very well for those who struggle with bad financial behavior". No arbitrage and doing Roth over Traditional is mathematically inefficient, an 8% withdrawal rate will almost certainly fail.
@@jackoats50 If you plan on keeping your money in investments long term, then 8% is a conservative estimation of how much you stand to gain. While 8% and 6% are not a huge gap and you could reasonably say that psychologically it makes sense to pay off that debt, Dave would also recommend paying off the debt at 2.5% before investing, and that is just mathematically silly. It may make psychological sense for some, but those people are the people who are hopeless with money and have little financial understanding or discipline. For anyone under 50 who can control themselves with money, you'd be crazy not to invest before paying off that low-interest debt.
Well I drive a 2010 bmw it’s worth about 4K and people still think it looks new.. it runs well and has low mileage and very reliable! The last time I had to put any money into it was in 2019.
Credit cards are great. I pay mine off weekly. I sent my daughter a link and they gave me $150. She will get $200 after spending $500 in 90 days. I'm working on $200 bonus after spending $1k. My home insurance is more than that. Im getting a new card next week for about $200. 6 months of car insurance will make a big chuck of the $1k. Food and fuel will take care of the rest.
It certainly is not life changing money (from credit card rewards), but it is nice to have money to pay some bills, do a vacation, etc.. It all comes down to do you have the discipline to not rack up credit card debt and to pay it off monthly, ALWAYS. If you do have the discipline, then great and enjoy the benefits/rewards from owning a credit card. If not, then you have given up your right for them.
The emergency fund is there to prevent you from going into debt again. Complaining an emergency wiped out your emergency fund, is complaining that you ate the food you bought. An emergency fund isnt a checklist item you do only once. Its there to save you money by avoiding the use of credit cards and payday loans. If you use it then it did its job, you now need to rebuild it so it can save you money next time.
I think its wierd how we look at undiscipline people and blame the credit card....no. get a credit card and be disciplined. You arent born with discipline. You build it. If you cant not carry a balance on your credit card, than i dont know how you can be disciplined in any other part of your behavior
Some people need to build their discipline first and get good tools around budgeting before they can trust themselves with a card. But I agree. I just think it makes sense to first get counseling so you can attack the root causes of why you can’t trust yourself with a credit card. Thanks to credit cards I have gotten thousands in rewards and cash back without ever paying interest. But I had to get good with budgeting to only spend what I needed to.
Dave’s advice isn’t for everyone. His main principle is that debt is always bad for you, and not just financially. He’s said many times that this comes from the Bible. If you operate from that premise, then his advice makes sense and it’s done a lot of good for a lot of people
Investing in stocks may appear simple, but selecting the appropriate stock without a proven strategy can be tough. I've been trying to develop my $210,000 portfolio for a while, but the biggest hurdle is a lack of a clear entrance and exit strategy. Any feedback on this topic would be greatly welcomed.
Several individuals minimize the importance of counsel until their own feelings become overwhelming. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm afloat. I looked for licensed advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.
NICOLE ANASTASIA PLUMLEE is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Well I do have to agree with Dave and George on one thing, you’ll definitely be angry not taking the match. So I guess if that motivates you to pay it all off at lightning speed then it’s worth it
Honestly, this situation makes me uneasy, especially with the potential depression, not just a recession. I'm not sure about my $130K investment strategy given the economic uncertainty.
I agree. Even with great opportunities, we should proceed cautiously. Seeking market analysis or advice from certified market strategists is important.
Absolutely, having a solid plan is crucial. My portfolio has doubled since early last year. My financial advisor and I are working towards a seven-figure goal, though it might take until Q3 2024.
The thing about the credit cards now is a lot of them you can set up an autopay so that you know you will never carry a balance unless you are just completely overspending your income and your checking account doesn't have any money in it. It's really not hard to use them and not ever carry a balance.
Biggest deductible is nice, what about an expensive home repair that cannot be put off (plumbing etc), when it’s not high enough to use home insurance for fear that they will drop you, but it’s still 5-10k
Ramsey is HORRIBLE at investing. All this guy knows is pay off debt. Sure if you’re buried in debt, follow his plan, but for making money..run. Ramsey never takes into account interest rates, rate of return on investments, compounding..etc.
Dave Ramsey is the drill sergeant for money! I talk to people from all walks of life including their income level and the vast majority are totally screwed up whether by Ramsey or the money guys. A few years ago I talked to a guy who makes 150k plus and was crying the blues that he just didn't make enough to cover his so called basics! The bulk of people are insane when it comes to money. Those coming here including me are simply looking for validation of are already excellent money skills.
Over the last couple years, I have heard Dave Ramsey and crew say putting 5% down on a house was okay, they just prefer 20% to avoid PMI. I don’t think I’ve ever heard them say this prior to the last couple years. My wife and I put 25% down on a 15 year in 2022 though. 2500 sq ft house. We work middle income jobs, we are millennials, so I don’t think it’s impossible.
I love that the Money Guys' approach takes into account the realities of today's market and doesn't assume everyone is a financial idiot. Dave takes things to an extreme, well intentioned of course, but it's becoming less and less practical.
I think Dave Ramsey is kind of like debt rehab. If you’re a debt addict, his advice can be very helpful. But if you’re doing well financially and do not have self control problems around spending, his advice may not be optimal.
My thoughts on him too
Yes Dave was helpful for me when I was coming from a family that was deep in debt and loss our house and parents that used payday advance loans and died with bill collectors demanding money. I was terrified of debt so Dave’s approach made sense. Now that I’ve made reasonable decisions in life, the money guys are helping me reach the next level. It’s more psychological than anything
Exactly. This is what a lot of people don't understand. Sure to people who are financially savvy, some of Dave's takes can seem unreasonable. But the reason he doesn't recommend credit card use at all for example is because for him it's a lot safer to assume that whoever is on the phone is going to fall into the majority of people who accumulate credit card debt. Not the small minority that never carry a balance. Dave isn't doing this for the people who have it all figured out and always behave rationally.
I think that worked without a lot of publicly available personal finance information and a more predictable economy. Now that there is more information and less predictability, we don't have to write off most of the population as "stupid" (Dave's words). Nowadays, people can't actually afford inefficient strategies with rising prices everywhere. I would never tell a person younger than 40 today that it's okay to be inefficient.
@@vulpixelful the number of Americans with credit card debt is at a 4 year high. Americans in general are notoriously bad with money. And Im not sure how todays economy is more predictable. Compared to when? Not using credit cards isn’t detrimentally inefficient. Especially when compared to using credit cards and carrying a balance and paying interest.
I love that the Money Guy team shows compassion and understanding while giving good advice, rather than screaming and insulting the people who ask them questions
That's why I stopped watching Dave and Caleb Hammer.
Some people need that kick in the butt. I’m good without it, but his content is focused on the people that need it
I agree completely. I listen to both. Money Guy for actual advice and Dave Ramsey for entertainment factor and for those who need a place to start. Both have their purpose I think.
I believe most of current pussy feminine fatherless genz and millenials need that strong father figure
I lived in a tiny house. Trying to get an actual apartment, now.
I switched from Dave to Brian/Bo years ago and the main reason is they don't fold their arms into their armpits and scream into the mic at callers. Also, and this isn't mentioned enough, is that sometimes Brian and Bo will actually disagree with each other or have slightly different approaches and that's what I love about them. Plus they provide nuance and aren't super rigid. I hate how the other Ramsey hosts are forced to say exactly what Dave says. They can't have a mind of their own and you're literally listening to the same person no matter who's mouth it's coming out of. Dave is good for a "break glass in case of emergency" approach to people who have zero financial literacy. Beyond that, he's not the guy.
Dave's *Sola Scriptura* Evangelism shows itself in wild *dogmas* about money.
I.e. *The borrower is slave to the lender* is taken literally 😒
I think Dave may help some of the people who are completely irresponsible with money. However, he assumes everyone is that way. Dave is one who thinks that because some people are alcoholics that no one on the planet should ever have a single drink., even for the toast at their daughter's wedding. It's ridiculous. If you are generally responsible with money and looking for ways to maximize it, the Money Guys are 100% better.
being that dave is extremely religious and carries that into his business, it makes sense how dogmatic they are. there's no nuance with any advice he gives.
@@fffjake Get out of debt, join a cult.
YES! Same.
I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
That is so amazing, I’m trying to get onto the investing ladder at 40. I wish at 55 I will be testifying to similar success..
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Dave telling someone not to put 6% into 401k to get a 10% match is insanity
Haha so stupid. Unreal.
Yeah, not very intelligent..
Unless the match has a limit for when it can be vested.. You could literally just take the money out of the 401k immediately, pay a 10% penalty, and still be up immeidatley.
That's an understatement, insane people are unable to be held to account for what they say.
Dave KNOWS better.
True that! Do your 401k match. Thats free 100% return on your money that will be worth thousands later on life.
Especially when it's student loans that they can get on an income driven repayment plan.
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, jokingly.
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.
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Sure, “Sonya Lee Mitchell” is the licensed advisor I use. You’d find necessary details on the web to set up an appointment
My favorite thing is this isn’t a “trash Dave fest”. I agree with Dave on some things and disagree with him on other things but I think he’s great for a lot of people. So appreciate you guys!
1000%. The sad thing is, I've heard Dave, on more than one occasion, trash Brian and Bo. He actually called them stUpid.
@@bettedavis9261 Really? Stupid? Well, isn't he the Einstein of money...NOT
@@bettedavis9261 Oh yikes! Have never heard that, but I don’t listen to him regularly. It is sad that Dave can’t see other perspectives.
@@lindsaysimplified I agree. Each time he trashes/ridicules someone who thinks or advises differently than he would, I lose a little more respect for him. The same when he says he has family members who "vote wrong." I know he jokes about THAT, but underneath, is it really a joke? Oh, well, everybody is different.🤷🏼♀️
"Credit Card use OK - Credit Card debt No Way" - great mantra.
I agree. I hate it that so many financial videos fail to make the distinction.
The moment you use a credit card, you're in debt.
Not all alcoholics die from drinking. Most do.
@@Red_with_lead If you're paying off your balance every month, that's a silly way to think.
I don't pay a dime to use my credit card, but I get a couple percent back every time I do. If you can control your urges they're an excellent tool to save money on things you were already planning to buy while building your credit for the things that debt is valuable for, like cars and homes.
From a personal standpoint I agree.I do disagree that Brian thinks he owns the banks by not carrying a balance. They make plenty of money off all the transaction fees the seller pays to pay your rewards. These costs end up embedded in prices which we all pay, (including the people not using cards well or at all), so I don't think good use of credit cards makes society better off, but it can make you better off.
@@Red_with_lead - and not everyone who drinks is an alcoholic. In doing a quick interterwebs search, 62% of Americans consume alcohol, while 10% of Americans are alcoholics.
So....yeah. if you figure that of all the people who use credit cards, 18% of them can't handle it and get into uncontrollable debt? Yeah, then those people shouldn't use credit cards. In doing another interwebs search, it looks like the numbers for THAT (50% of americans cary a monthly balance on their credit cards) is probably higher.
Underlying principle holds true, though - if you can handle it, you're fine. If you can't, you're not. The trick is figuring that out BEFORE you get into trouble.
Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I completely agree; I am in my mid 40s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
This is exactly how i wish to get my finances coordinated ahead of retirement. Can you recommend the financial advisor you used to get ahead?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky’’ for about three years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Marisa has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
These steps from dave can be productive for a certain type of income bracket. The key to building wealth is developing good habits like regularly putting money away in intervals for investments .The stock market has plenty of opportunities to earn.. I made my first million from going diverse, mainly stocks, etfs and bonds . i use a financial advisor and it's been a year of steady growth..
Truly It’s all about accumulating wealth through compound interest investments.
This is definitely considerable! think you could suggest any pros i can get on the phone with? I'm in dire need of proper portfolio allocation.
she's Dianne Sarah Olson by name. please do your own due diligence on her to see if she is suitable with your goals.
I looked up her name online and found her page. I mailed and made an appointment to talk with her. Thanks for the tip
Looks like she really knows her stuff. I also found her web and read through her resume, educational background, qualifications and it was really impressive.
Ramsey helped me with the psychology around debt and now that I have "graduated" the Money Guys are helping me manage my money -
Exactly how I am. Dave really shocked my system, Caleb hammer helped me realize all the bullshit spending I did, and now the money guys are how I plan on really optimizing my financial future.
@@benstanfill363 I'm new to this channel. What's the best takeaway that you've heard thus far? Any advice??
I have an MBA from a relatively prestigious university, and you’d think my classmates would have been more team Money Guy than team Dave. But probably 2/3 of them were financial disaster zones. $100k in MBA debt on top of car and house payments. Massive lifestyles. And lousy grades because us engineers who were there on company benefits broke the curve.
Dave is a motivational speaker. A salesman. Hes not going to be useful to the people who graduate debt free with an engineering degree from State University, but he’s got a great understanding of the other 98%of American households.
100%, after seeing the situations other people in my life have gotten into, Dave makes more sense for them. For me. Money Guy Team is the way to go. As they said, know thyself is really what you need to do when listening to other people!
There’s a ton of nuance in re: student debt. It’s not the same as a mortgage, high-interest car loan, etc. They are federal loans used to fund education for the masses.
Most people have houses and cars. Thats not an issue. The issue should be following the order of operations, keeping DTIs reasonable etc
@@johnraviella6561Yes student loan is not the same as other consumer debt because you can't get rid of it even if you file for bankruptcy.
It has unreasonable payoff schedule. A majority of the time it's not valuable. There are tons of people that have college degrees and not even working in their field of study or remotely close to it. College in general is a scam. When you can get credits for bowling or crafting or other stupid s*** it's scam. For STEM fields it's not
Your prestigious university should have offered a grammar elective.
A 10% match is basically like a 10% raise...absolutely insane to pass that up over low interest student loans. Also, CHECK WITH YOUR COMPANY! Mine offers their employer match on student loan payments, that is, if you pay 6% of your salary into your student loans, they'll put the match into your 401k even if you don't contribute directly.
Nuance, with Dave? He could never. 😂
It’s 9k a year FREE. plus 8-10% growth annually
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.
The issue is most people have the “I will do it myself mentality” but not skilled enough. Ideally, advisors are perfect reps for investing jobs and at first-hand experience, my portfolio has yielded over 350%, since covid-outbreak to date, summing up nearly $1m.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one.
My licensed adviser of choice is Rebecca Nassar Dunne. Just look up the name. In order to schedule an appointment, you would find the required information. She is quite talented.
I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
My main issue with Dave is not that his advice is inherently bad; my issue is his advice is one size fit all, no matter your specific situation to figure out how to succeed, and if you don’t do it, you’re failing by not taking his advice while wanting to both seemingly act and not act like an advisor (depending on if he could get in legal trouble). My situation might not be the same as yours, or the Money Guys’, or Dave’s so one size fits all doesn’t work for all folks given this!
If I took this approach when advising clients I’d lose my license for malpractice 😬
@@JakoWako exactly
It is a...wait for it...SHOW! This is not advice. This is a show. And he is a showman. Has to be.
@@Cathy-xi8cb I don’t disagree that it’s a show and as a result there has to be some level of showmanship. But what is a big portion of the show consist of? Taking peoples calls on their situations with debt, credit cards and investments and money and reacting to or telling them what he thinks they should do…
Dave's target audience needs fundamental guidance at the behavioral level. Dave is not trying to be Money Guy. Dave's statistical data supports his approach.
Holy shit how am I just finding you guys? Dave is great for people who have zero financial education and no self control.
That would be 99% of America.
I am holding a cash position right now, of about 300k. I know a dip is supposed to be the buying opportunity, so whats the best stocks to dive into
With $300K cash, invest in recession-resistant stocks from sectors like healthcare, utilities, consumer staples, and technology. Blue-chip, dividend-paying stocks with strong balance sheets are ideal. Consulting a financial advisor can refine your strategy.
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
*Marissa Lynn Babula* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Always a treat when real financial advisors react to Dave, looking forward to it
They actually support some of his teachings so don't expect a lot of backlash.
Dave helped more people get out of debt than anyone else on earth.
@@antonioiniguez1615show me the statistics or this is just an opinion.
@@patricksimon8943 It's a fact
@@patricksimon8943that’s not worth arguing. It’s obviously true. That being said, his suggestion is because it’s for the lowest common denominator. The weakest can’t multitask when it comes to fixing their financial life.
I do agree with him on some things. However, I am in vehement disagreement with him on one thing. One should ALWAYS invest up to the company match. Not doing so is foregoing a portion of your salary which you don’t want to do, and even credit card debt doesn’t have a 50-100% interest rate. There’s no other investment that can give you a guaranteed, risk free 50-100% rate of return on top of market returns.
Meh.... temporary pause for less than 18 months will have negligible impact on your overall financial future, so focusing on being debt free in less than 2 years is better.
Forgoing a portion of your salary is absolutely the right way to look at it!
If setting aside 4% of your income in order to save and invest 8% doesn’t allow you any margin at all to clear debt, you need substantial lifestyle changes, and the 4% probably wouldn’t clear the debt regardless.
As someone in my early 20’s with a family, I certainly could use the extra couple hundred bucks a month that I invest. But I understand I’ll never get this decade back, and the thousands I’ve already invested will set me and my family up for financial freedom in the future.
@@DanielBlackkerthey cut some of that call…I did the math on Ramsey’s channel. Not taking the match would end up costing the caller over 2 million dollars at retirement, and only pay off the debt 2 months sooner. Not taking the match is very significant.
Yeah Dave is kind of delusional on some things. His debt is the devil policy makes him forgo math and logic in many cases. Also 15 year loan 4th of gross income dude the avg home costs more than 400K now and before people come with anecdotes there are always exceptions to the rules, obviously location matters, but problem with more rural locations is the salaries often associated with that area are also significantly lower and mathematically the ratio is roughly the same.
Also a 30 year loan makes way more sense than a 15 year loan. You can always make extra payments - and you can even run the math as if you were paying a 15 year mortgage etc, but if crap hits the fan that’s a ton of money your going to have to have in an emergency fund- also 3-6 months no longer works more like minimum 1 year- ideally 2 in this economy
So if you can get out of debt and say 15 months or 24 months versus what percentage you're putting in your 401.
The amount of money you'll save on the interest of all your debts and the money you can throw in more after it's worth pausing. Stats don't lie look them up
I’d like for George to stop parroting what Ramsey says. When all Ramsey personalities say the same advice, it turns into a religion rather than personal finance advice.
You may have missed when George was put in his place by Dave.
Amen! 😋
@@bige3969Yeah that was pretty disheartening to see, George provided something solid and Ramsey tore into him with completely bogus advice
Ramsey is very religious and so is his organization and company by nature as well as the people he decides to make a part of his team lol He’s based his whole organization around the rules and steps he set out in books he’s authored….and a lot of people he’s hired are people who have read and diligently follow the principles he’s preached in his writings. Sound religious to you ?
Some people need a religious like experience to cling to in order to get rid of their addictive debt. I don't personally follow everything Dave recommends, but for people who either don't understand, or don't have the discipline to make good decisions, following Dave's rules as if they were a religion will work. No one is becoming a billionaire on Dave's plan, but a lot of people don't want to do that - they just want to not worry about money and to retire with dignity.
Lots of ways to go trough life, Dave’s way is one but not the only way.
"Those are wonderful ideals..." is the politest way to say how absurd that home advice has now become 😅
What has become absurd is the idea of home ownership in the USA
I was shocked that DR said to skip the >100% return on 401k and instead focus on low-interest student loan. I agree with you, you can't go back in time to get that employer match if you choose not to participate. Over your working lifetime, those early investments and employer match will make a huge difference.
I don't like ramseys advice because its a one size fits all approach. Which often makes no sense. You have to do the math around it. But the one math flaw everyone makes is the one you just did.
You absolutely cannot compare interest paid and interest earned and decide which one is better. that investing early in the 401k is the better option. Frankly it probably is in many cases. But... you can have as large of a spread as you can imagine.. and i can put together a financial example of all three outcomes. That forgoing the 401k is bettter. That its better to start with the 401k. Or that its a wash and doesn't actually matter which one you do. All possible outcomes regardless of the spread. And one thing ramsy gets right is actual behavior matters. You can say youll do something a certain way. But if your not actually going to do it. Then the math comparison doesn't matter. Your using math in a way to justify a choice you've already made. Math should be used to inform your choice.
My point is it can be in your favor to pass up investing for a short period. Investing for two years at 6% in this setup is basically going to get you very little. You'll turn 6k into a 16.7k on an average year. All it would take is you freeing up around 1k per month of payments in a year. Less actually. And you would likely out pace your 401k investment first strategy. I mean there's a lot of angles to this so its an individual setup question. My point is to illustrate that pausing investing is not a dumb idea. Its actually can be a very goid one.
As Caleb Hammer would say, if you’re a credit card person(not spending more than what’s in your bank account and always paying off the balance in full), have credit cards. If that’s not how you use credit cards, you’re not a credit card person and you should stay away. However, you can learn to be a credit card person.
Dave is good for net worths below zero, Brian and Bo are good for net worths above zero.
Well said
Nah, they are slightly diffrent perspectives. Both can work, if you want and are responsible. Neither work if you are irresponsible
Dave is for dummies with no self control who can’t do math
A lot of broke people in the USA calling into the Ramsey show.
I love that they kept the microphone blooper Brian did. They show they are human. Best UA-cam channel around. Keep up the good work!
They are exactly right at 14:50 , Ramsey is necessary for the majority of Americans. But for financial mutants, the Money Guy really takes things to the next level for people who have developed self-control and are not the average person.
The main reason I watch them. I don’t need “psychological wins.”
@@MichaelCarrPilot Because you're not in that situation lol.
@@azeemsiddiqui4764 I WAS in that situation of lots of debt. I still didn’t need those types of wins.
All I can say is I’m so happy I found you guys at the beginning of 2023. I feel like you all try to understand the position of people and that it’s not a “one size fits all” (no debt ever, 15 year mortgage, etc.)
This is coming from someone in the messy middle. There should be guidelines we follow, but personal finance really is personal.
I really like the phrase "driving around in their potential wealth." I picture people driving around in a block of stacked cash.
Dave is speaking to a specific cohort : people that have made bad financial decisions and need help getting out of a hole. He helps people who were in trouble and helps them on the road to become millionaires. If you were never in a financial mess and are educated on financial matters, then maybe Dave's rules simply don't apply to you, you are not his audience.
People sometimes refuse to understand who Dave is trying to help. There are tens of millions of people in this country who are struggling with bills and their spending and need a father figure like Dave to be disappointed and angry in their spending decisions, even if they aren't the caller being scolded. And if you think tens of millions is to high a number, realize that the population of this country is so massive now that 15% of us now totals 49.5 million people.
Dave, Dave, Dave.....
He will not detour from his baby steps. It is his way or the highway.
Personal finance is personal and he doesn't change and adapt to your situation.
We were Dave-ish because we invested while paying off debt.
My company paid a consultant to provide retirement classes when I was 24 and just started saving for retirement. The class was called "The Kids Table" and basically their advice was go with a target retirement fund that aligned with your 65th birthday. That was 20 years ago. It is the only thing I've ever invested in. How else can I grow my finance?
target date funds made me a multimillionaire but i also watched them drop 40% in a very short time and take a long time to recover. my best suggestion is that you seek the guidance of a fiduciary to avoid mistakes
Agreed, when it comes to retirement planning, following the steps of a well experienced advisor did the trick for me in barely 5 years, turned my $500k capital to 5 figure monthly dividends. If you want to keep it very safe, then Vanguard TDF may be for you.
Can't divulge much, I delegate my excesses to someone of great expertise ''Karen Lynne Chess'' preferably, you can look up the name on the web, her qualifications speak for itself.
such an eye-opener! curiously inputted Karen Lynne Chess on the web and at once spotted her consulting page, she seems highly professional from her resumé..
@@fromthebirchwood Or better yet, make it your hobby. It's the best paying hobby out there.
Your videos were great!! I am one of your viewers and have been watching your videos lately. I would like to invest, but I still can't find the right investment to commit to. I will appreciate any help here.
I usually go with registered representative; Zachery M Demers, He provides a more grounded approach, looking at factors like market demand, regulatory changes, and adoption trends. This approach enable to make informed decisions rather than solely relying on emotional market dynamics
he often interacts on Telegrams
@Zachfinance
The beauty of his approach is his dual focus: while he aggressively pursues profit opportunities, he's equally tenacious about shielding investors from potential pitfalls. It's a balance few can achieve.
When I saw his testimonies all over the place I thought it was all made up of stories till I was convinced and gave it a try and honestly I don't regret the move I made because I invested in a big way.
If turning down 4% net compensation will get you angry enough to deal with your debt, just imagine what turning down 100% of compensation could do!!1!1!!
It’s not 4% it’s 10%. 9k a year in free money
I think that Dave’s methods will prove to work better for the majority of people. Even the things that he says to do which our counter into it like not doing 401(k) match. The vast majority of Americans stay in debt forever. End up having to withdraw from their 401(k), they end up retiring with Dad. I think it’s better to get completely debt-free.
I love that Brian & Bo are friends with the Ramsey team. Dave whipped me into shape financially, and I've enjoyed the nuance from Brian & Bo. While the Ramsey team does cling to their Baby Steps a little too religiously, I think their ideas prompt a lot of good questions. Even if paying off a house early isn't optimal, would it be a burden lifted off me? Even if I never carry a balance on a credit card, do I want to be a part of the system that those companies have set up? Is the $20,000 car really that much more reliable than the $7,000 car?
One thing I love about Brian and Bo is that they acknowledge that everybody has different goals and values, and I feel like they give me permission to disagree with them on the little things so long as I'm willing to acknowledge the opportunity cost.
I use a blend of methods, but generally only use cards for groceries or gas. Sometimes restaurants. Ones that have a high % cash back, use on the things I would normally be buying when its their quarter for it. Cash otherwise. They key for me is carry around a check register. Log in both debit AND credit card purchases. Then set the payment to pay entire balance. As far as my register goes, the money is already gone out of the bank, so it doesn't hurt. And, I have cash back with paying no interest at all. I get pick up so it is easier to tweak to make sure it fits the budget I set. By the end of the year, I generally have enough cash back to add to the budget for the holidays without actually coming out of my bank.
I love Dave and his whole schtick is grumpy grandpa. Also his focus is on behaviors that lead to staying in debt, not necessarily the math. Hence his advice. It’s always obvious to me who the pure math nerds are vs the people that add that plus human nature
There are a large percentage of people who NEED Dave’s advice because they need focus to remove debt from their lives and not let it control them. Those same people who gain that discipline are then ready for strategic implementation of the FOO for optimization.
Take Dave's advice to the extreme, and it falls apart. "If I put 1% into my 401k, my employer gives me $100k, but I have student loans at 4%. Should I do it?" He would say no.
"It's not about the interest rate" is the dumbest statement. It's ALL about the interest rate.
Dave’s system makes no sense mathematically. It’s so dummies with no self control
I agree with the Money guys. I have seen clients putting 5% down payment and making hundreds of dollars in equity over the years. Waiting to save that money would have been harder for them to get into the market. We put a 3.5% 20 years ago and I am glad we did.
Dave " I'm a math nerd...but I'm going to ignore it every single time"...LMAO
On the car cost bit for anyone who is interested. I am currently driving a 2019 Nissan Versa that i purchased for 16k brand new. The cheapest USED car i could find was 10k with 100k miles. The Versa's cost around 17k now and while they are not a super fancy car, they are cheap. Mine has lasted me 4 years and 9 months with nothing more than basic oil change / tire rotation. (i don't drive much so i go by months for maintenance not mileage)
I encourage everyone to really look at New "Cheap" cars vs buying a used PoS. (Get a quote online and check with your bank for a loan before going to the dealer)
Agree! I have a 2008 Sonata, that I bought brand new in 2007. I paid right at $20,000 for it, 17 years ago. We have had to do some repairs, but nothing major. If I had bought multiple used vehicles, over this same period of time, I likely would have spent a lot more $. Plan to keep it a couple more years and then give it to son, for his 1st car (if it is still running without having to put a lot of $'s in to it). I will then buy another brand new car.
Calling someone else’s 401k plan “ridiculously generous” must imply he doesn’t do that for his people? What’s the retirement plan look like for a regular employee at RamseyLand?
yeah...Dave's mortgage advice is a great way to combat high housing prices by reducing demand. I agree with 20 per cent, but not the 15 year loan. I always go 30 and just pay ahead .
I work with a few Dave Ramsey superfans. One told me I should have kept renting and saved up to buy my home in cash. Yeah, I like my 3% mortgage with payments lower than my own rent. Another stopped retirement savings to pay off debt with a 5% employer match. I have been putting money into my HYSA with 4.2% interest for a rainy day funs. One of them said I should be using it to pay off my mortgage early. Didn't Dave say to have a good bit of emergency savings? The worst was the advice on a first date I should be asking financial questions like how much debt, income vs debts, etc. How about asking about hobbies or something normal on the first date?
I think it depends on your age. If you are over 40 and dating, those are good first date questions.
Dave's emergency savings advice is 3-6 months of expenses.
Dave's advice is good for SOME people, not ALL people.
My portfolio doesn’t just cater to dividend stocks. I hold $VFIAX (S&P 500 index fund) in my Roth IRA and $VTI (Total Stock Market ETF) in my taxable brokerage account. Two of my largest holdings. The individual dividend stock positions all complement the index holdings.
Thats when you hire someone to manage your money. You need a (CFP) straight up! personally, I would invest in ETF's and also love investing in individual stocks.
I took charge of my portfolio but faced losses in 2022. Realizing the need for a change, I sought advice from a fiduciary advisor. Through restructuring and diversification with dividend stocks, ETFs, Mutual funds, and REITs, my $1.2M portfolio surged, yielding an annualized gain of 28%.
Your advisor must be really good, how I can get in touch with them as my porfolio isn't doing well.
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
I personally follow the baby steps, but can we all acknowledge that whether people follow the baby steps or the money guy steps, if people actually follow either with intentionality, they'll do so well in life. Having an actual goal that motivates you is so key.
at the 10:00 mark. Dave is 100% correct on this. I just recently paid cash, $5k for a 2010 Ford F150. Runs great, and works fine. I am sure with $5k I could have found other vehicles also, but I was specifically looking for a truck. Yes, you can get good transportation for $7k or less.
Agreed! Research and find a good mechanic, do some research on dependable vehicles, have the mechanic inspect the used vehicle you are looking to buy. Done. Bought a 1994 Honda Civic for 2k back in 2011 that I drove for 3 years without issue while I paid off my debt.
Yes, this is probably the only category where I actually agree more with Dave than MGS. My 2009 car is worth $3-5K and still works great. Good, cheap used cars are absolutely out there. Pay cash for the car.
Yeah, cars for the most part are incredibly reliable now. Basic maintenance is all you need to take most to 200000 miles.
I drive a 2009 Honda fit and love it! Got it for $3500
You got lucky. Solid used cars under 5k are unbelievably rare
Dave is GOAT
Dave is teaching psychology. I am not sure why people don't understand this. The people he is trying to help are absolute train wrecks when it comes to money. If you have worked in retail you know what I am talking about. It's the guy coming in buying a $500 tv set and paying for it over 5 credit cards. That's who Dave is trying to help. These people are broken psychologically. That first baby step is meant for these people to hit a goal, then start working on step 2, the next goal. Etc etc.
While mathematically FOO is obviously correct, FOO is not going to get these train wrecks out of their bad spending habits and how poorly they manage their money.
Thank you! I agree💯! His brand or product is for the people that mentally are not disciplined enough to maturely manage their money. Could they get there?! Absolutely but historically there is a pattern that shows they need to fix that part of themselves first. FOO, mathematically makes more sense in the long run, but for Dave’s target audience the behavior is the biggest problem. In my opinion people just resist Dave’s approach because of how direct he is in holding them accountable. Again, in my opinion, if you can’t handle being told in a direct way that you made a stupid choice that financially held you back, money is not the problem…
Not everyone that phones into Dave is a money moron. They aren't all train wrecks
@@laundrygoddess4 Did I say that? Did I write that all people who phone into Dave are train wrecks?
Try reading comprehension 101
I think that many use DR tp get out of debt, and then when they get a bit of financial stability they start looking around for other teachings, etc...and find poeple like the Money Guy (s).
@@laundrygoddess4yeah a lot of them have followed the baby steps and are quite successful now.
Love, love, love the Money Guys!! Best financial advice out there.! ❤
As a holder of a 2.75% 30 year mortgage, I will never pay that off early.
My mom is in her 80's and still has a mortgage, also 2.75%.
Invest in the market early, your returns will beat that paltry 2.75%
Humm…maybe at age 80 a mortgage should be paid off.
Been listening to Dave for a few years ( good content ) . His stance on not getting match is one thing I think he is off on ( my opinion ) . He has helped a lot of people though !
In the before times (before covid, BC) I would agree the emergency fund should be enough for about 6 months BUT NOW - Emergency funds should get you through 12 months
Currently I'm just being smart and frugal with my money, I'm in the green 47% over the last 23 months and l've accumulated over $70K in pure profits from DCA’ing into stocks, ETFs, dividends and futures. However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.
completely agree. I have been consistent with my profit regardless of the market conditions. I got into the market early in 2019 and the constant downtrends and losses discouraged me, so I sold off. I got back in December 2020 and this time with guidance from an investment adviser who was recommended by a colleague
Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.
I've been stuck with the popularly ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Thank you for putting this out, it has rekindled the fire to my goal... was able to spot Melissa Terri Swayne after inputting her full name on the web, she seems highly professional with over a decades of experience
15 year fixed helped me out so much, these guys crazy calling it hard
I love Dave and it's because of his advice I am debt free. That said I feel I have outgrown his advice. I keep a zero balance on my credit cards and invest a lot more than the 15 percent Dave recommends because I became debt free in my thirties and now I have to catch up. I think Dave needs to update his advice.
10:11 guys… You can get really nice vehicles for $7000. I've been driving my current truck - a 1992 Ford Ranger - for a year, with no significant issues. I paid $1600 for it. For five or $6000 you can get extremely reliable used vehicles if you know what you're looking for (and as to what he said after that, I am probably the least mechanically inclined guy in my entire extended family 😂)
I like the Money Guys and Dave Ramsey, but the Money Guys are definitely wrong here. $7000 can still get a nice car IF you know what you're doing. Just about any Toyota or Honda at that price, if inspected before purchase, would be a good car. There are also several GM and Ford models that are quite reliable and can be found for that money as well.
Dave STILL says all of those things AND that you should be able to take 8-10% per annum from your retirement portfolio and you'll be fine. This is why I follow the Money Guy model now and not Dave's. Even George doesn't believe in a number of the Ramsey philosophies, even though he now has to parrot everything the way Dave wants it. Don't get me wrong, Dave's plan is fine if you need to go hardcore and cold-turkey your craziness. But once things settle and you get yourself stable, it's no longer realistic or practical in the modern world.
The point of WL is the cash value. Be your own bank so that you don’t have to leverage others. Similar to having a HELOC instead of the mortgage. Get something that’s out of the market and can still grow at a competitive return.
Investing at least the match (and I admit, a minimum into a post-tax Roth) while paying off debt got me both out of debt _and so far ahead_ for retirement in my 30s. Now investing the minimum until age 65 will secure my retirement, but I'm aiming for early retirement.
Ramsey is literally costing people millions when younger boomers and Gen X are heading towards a retirement crises.
Early retirement is ASININE.
THANK YOU, I love the nuance here.
As Dave always says, “it’s not a math problem”. It’s about the behaviors…
This. If personal finance was nothing but math, everyone would be wealthy.
I thought it was “an income problem”
@@MichaelCarrPilot ?
Dave acts like it's impossible to make the behavior line up with the math
@@lepoj You act like behavior can effect inherent risk.
10:04
I don’t know why Bo and Brian are wincing at “7000 dollars will buy you a fine vehicle”
It’s true,
I bought an 04 mercury marquis out of an estate sale in 2019, paid 3600 dollars for it, it’s now at 215K miles and still going strong. Nothing other then normal preventitive maintenance. When my daughter was born we wanted an SUV to get the car seat in and out of easier so my wife and I got an 8K tax refund and paid 8K for a 2012 ford escape with 90K miles. The car has been amazing.
7K is way more then enough for a functioning vehicle that will give you years of reliable use. A lot of arguments people use for car loans are justification for buying a new car they don’t need, like safety, really by 2008 all cars have three point belts in all positions and two front and side curtain airbags and are unibody cars with crash crumple zones. If you grew up in the 90s like I did whatever car you’re driving from a 2008+ model year is definitely safer no dispute and if it didn’t bother your parents to drive you in a car from 80s when you were a kid in 95 or whatever you should have no qualms about a 7000 dollar car which is probably going to be 06 to 2015 model year depending on the car
Dave will get you out of debt. The Money Guy will help you get wealthy.
I really appreciate the that you guys are realistic about purchasing a home in the modern economy. I purchased my home for $150,000 in 2020 when I definitely made barely enough to afford that home. Since then I have managed to make more than enough money to afford that home and the home has appreciated $100,000 in value and I have an interest rate you can't get anymore. If I had tried to follow any of Dave Ramsey's advice on purchasing a home, I would never be a homeowner. Instead, I am genuinely in the black as a result of my home being worth so much more than I now owe on my mortgage. Because my income has grown so much. I'm also now looking at being able to pay the house off in 20 years instead of 30
Many ‘cities’ in the USA or around the world don’t have houses for $150,000. In many cities $150,000 was a price for a home from 25 years ago. However, if your house is $150,000-$200,000, then yes, you should be able to pay it off within 15 years with today’s wages.
Also here is the deal with the 15 year mortgage. You can take out a 30 year but double your payment and pay it off like a 15 year. God forbid something happens and you need the flexibility you can lower your payment for a short period at no cost.
If you stretch yourself for a 15 and have to refinance you will pay thousands in fees at potentially a higher rate and start the amortization clock over again.
That’s what I did. Got a 30 year but will have it paid off in less than 10 years, if all goes as planned
I got the 15 year mortgage, because I wanted the lower interest rate. I saved over 0.5% on my interest rate.
We generally / typically have 25 year mortgages in the UK - but they will allow a range from 10 to 40; Were I starting out again at age 20/25 - I would again take a 25 year mortgage out to get on the ladder - I would not make the period 15 years. That said, there is nothing to stop anyone from saving and then overpaying it as a lump sum as soon as able.
FWIW, I recently DID take out a 10 year mortgage (June 2020) to buy my wife's equity in our home out after we'd split - I paid the whole lot off in 2 years, 6 months and 13 days saving myself thousands of pounds in interest.
The discipline is doing it as though you were in a straight jacket without being in a straight jacket! Ramsey is right when he says it's not a maths problem - it's behaviour!
Have a great Xmas every one, btw - the season of goodwill is upon us
Amazing content! I have been following your videos for sometime now, consistently kicking down Wall Street doors for two years now, I have over $320k in stocks. Currently, my portfolio is down by 15%. Wondering if they're any short term opportunities I can invest in.
I agree that there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience.
I stopped listening and taking financial advise from these UA-camrs, because at the end of the day, I end up with a bunch of confusing stocks without knowing when to take profit, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?
Elisse Laparche Ewing 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.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
I would happily recommend your approach most of the time. Keep up the great advice.
You can never go back in time and get that 401k free money. You CAN find side revenue to pay more debt.
The only issue I see with the Credit card use (even if you pat it off every month) is the added 3-4 percent that businesses are adding on to the bill to cover the usage charges. They are basically passing on the Visa/Mastercard fee they are required to pay for using the service to their customers.
George did it in 11 years for the strong fact… HE HAD NO KIDS! Kids are essential and he wisely waited and was smart with finances which most people don’t do.
Yes he waited until he was ready before having kids.
Great advice guys . Thanks for helping people out .
Americans are lucky to have a personality like Dave. Follow him to get out of debt and then follow the Money Guy!
Strongly disagree, follow the Money Guy Show all the way, from getting out of debt to building wealth. Avoiding credit cards is fine, but don't completely halt your 401k contributions and forgo the match for low interest debt like student loans, and don't only save 15% in retirement until your house is paid off.
Dave Ramsey isn’t the best resource for people who make a good salary and are disciplined. His advice on credit cards for international travel or rewards, mortgages and retirement isn’t the best. He’s good for people who are in a mess & need to get their act together.
@@MKK-wg7fz The only advice for international travel is DON'T.
@@amireallythatgrumpy6508 wth? People aren’t supposed to visit family in Europe? What kind of kool aid have you been drinking? Life is too short to NOT get out of the bubble & see the world! “Life is a buffet and most suckers are starving to death.” Mame wasn’t talking about food either.
@@lmeliorhe never said pause your 401 to pay your mortgage off.
The thing is Dave's advice is for the majority of people. The people who have no impulse control, who aren't good with saving, investing, etc. These guys are more in the weeds than Dave is more into the details. Alot of people can't follow that. Dave makes advice that everyone can follow.
He’s decent for those in chronic debt but his investment advice is horrible. Steers everyone to his Smartvestor pro guys with mutual fund fees. Thats a bit corrupt imo
FOO, always ahead of the game.. 🙌
Dave is not a math nerd. He did great with his addition tables and struggled in algebra
He dumbs down the methodology because most Americans should not be focused on optimizing when they can't even live below their means. He acknowledged many times over the years that his method is not the most mathematically efficient in terms of building wealth, but it still works very well for those who struggle with bad financial behavior.
@@Poindexter2291 "but it still works very well for those who struggle with bad financial behavior". No arbitrage and doing Roth over Traditional is mathematically inefficient, an 8% withdrawal rate will almost certainly fail.
@@jackoats50 If you plan on keeping your money in investments long term, then 8% is a conservative estimation of how much you stand to gain. While 8% and 6% are not a huge gap and you could reasonably say that psychologically it makes sense to pay off that debt, Dave would also recommend paying off the debt at 2.5% before investing, and that is just mathematically silly. It may make psychological sense for some, but those people are the people who are hopeless with money and have little financial understanding or discipline. For anyone under 50 who can control themselves with money, you'd be crazy not to invest before paying off that low-interest debt.
It drives me up a wall that he claims to be a math nerd and then says you can withdraw 10% in perpetuity since the market averages 12%
Well I drive a 2010 bmw it’s worth about 4K and people still think it looks new.. it runs well and has low mileage and very reliable! The last time I had to put any money into it was in 2019.
Credit cards are great. I pay mine off weekly. I sent my daughter a link and they gave me $150. She will get $200 after spending $500 in 90 days. I'm working on $200 bonus after spending $1k. My home insurance is more than that. Im getting a new card next week for about $200. 6 months of car insurance will make a big chuck of the $1k. Food and fuel will take care of the rest.
It certainly is not life changing money (from credit card rewards), but it is nice to have money to pay some bills, do a vacation, etc.. It all comes down to do you have the discipline to not rack up credit card debt and to pay it off monthly, ALWAYS. If you do have the discipline, then great and enjoy the benefits/rewards from owning a credit card. If not, then you have given up your right for them.
Better make sure there's no yearly fee on those cards. That's where they like to get you.
The emergency fund is there to prevent you from going into debt again. Complaining an emergency wiped out your emergency fund, is complaining that you ate the food you bought. An emergency fund isnt a checklist item you do only once. Its there to save you money by avoiding the use of credit cards and payday loans. If you use it then it did its job, you now need to rebuild it so it can save you money next time.
I think its wierd how we look at undiscipline people and blame the credit card....no. get a credit card and be disciplined. You arent born with discipline. You build it. If you cant not carry a balance on your credit card, than i dont know how you can be disciplined in any other part of your behavior
Some people need to build their discipline first and get good tools around budgeting before they can trust themselves with a card. But I agree. I just think it makes sense to first get counseling so you can attack the root causes of why you can’t trust yourself with a credit card. Thanks to credit cards I have gotten thousands in rewards and cash back without ever paying interest. But I had to get good with budgeting to only spend what I needed to.
In the USA, discipline doesn't exist at all.
Dave’s advice isn’t for everyone. His main principle is that debt is always bad for you, and not just financially. He’s said many times that this comes from the Bible. If you operate from that premise, then his advice makes sense and it’s done a lot of good for a lot of people
Investing in stocks may appear simple, but selecting the appropriate stock without a proven strategy can be tough. I've been trying to develop my $210,000 portfolio for a while, but the biggest hurdle is a lack of a clear entrance and exit strategy. Any feedback on this topic would be greatly welcomed.
Several individuals minimize the importance of counsel until their own feelings become overwhelming. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm afloat. I looked for licensed advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.
That makes perfect sense; you seem to have a better understanding of the market than we do. The coach is who?
NICOLE ANASTASIA PLUMLEE is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
I just Googled her name and her website came up right away. It looks interesting so far. I sent her an email and i hope she responds soon. Thanks
Well I do have to agree with Dave and George on one thing, you’ll definitely be angry not taking the match. So I guess if that motivates you to pay it all off at lightning speed then it’s worth it
Honestly, this situation makes me uneasy, especially with the potential depression, not just a recession. I'm not sure about my $130K investment strategy given the economic uncertainty.
I agree. Even with great opportunities, we should proceed cautiously. Seeking market analysis or advice from certified market strategists is important.
Absolutely, having a solid plan is crucial. My portfolio has doubled since early last year. My financial advisor and I are working towards a seven-figure goal, though it might take until Q3 2024.
I could really use the expertise of an advisor like that.
Thanks for sharing. I searched for her name and found her website. I reviewed her credentials and did my research before contacting her. Thanks again.
Wow this is an incredible bot comment
The thing about the credit cards now is a lot of them you can set up an autopay so that you know you will never carry a balance unless you are just completely overspending your income and your checking account doesn't have any money in it. It's really not hard to use them and not ever carry a balance.
Dave Ramsey is good for people who are bad with money…. Dave Ramsey is bad for people who are good with money 👍
And nobody in America is good with money...
@@amireallythatgrumpy6508 that’s debatable
I can disagree sometimes with Dave but I also can disagree with with you guys !! But I like the Ramsey show !!
Dave shames and insults people into getting out of debt. Brian and Bo help people get out of debt AND build wealth.
You want shaming and insulting? Check out Caleb Hammer and the Financial Audit.. Nothing Dave does is anything like that show.
@@beckypetersen2680yes, I've watched Caleb Hammer. Just because there's someone worse doesn't mean he's constructive.
Biggest deductible is nice, what about an expensive home repair that cannot be put off (plumbing etc), when it’s not high enough to use home insurance for fear that they will drop you, but it’s still 5-10k
Ramsey is HORRIBLE at investing. All this guy knows is pay off debt. Sure if you’re buried in debt, follow his plan, but for making money..run. Ramsey never takes into account interest rates, rate of return on investments, compounding..etc.
Dave Ramsey is the drill sergeant for money!
I talk to people from all walks of life including their income level and the vast majority are totally screwed up whether by Ramsey or the money guys. A few years ago I talked to a guy who makes 150k plus and was crying the blues that he just didn't make enough to cover his so called basics!
The bulk of people are insane when it comes to money. Those coming here including me are simply looking for validation of are already excellent money skills.
8% safe withdrawal rate!!
That's coming down from a 10% safe withdrawal 😂
Over the last couple years, I have heard Dave Ramsey and crew say putting 5% down on a house was okay, they just prefer 20% to avoid PMI. I don’t think I’ve ever heard them say this prior to the last couple years.
My wife and I put 25% down on a 15 year in 2022 though. 2500 sq ft house. We work middle income jobs, we are millennials, so I don’t think it’s impossible.
I love that the Money Guys' approach takes into account the realities of today's market and doesn't assume everyone is a financial idiot. Dave takes things to an extreme, well intentioned of course, but it's becoming less and less practical.