I'm Afraid To Use My Savings to Pay Off Debt
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- Опубліковано 4 вер 2021
- I'm Afraid To Use My Savings to Pay Off Debt
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I totally understand being afraid to use savings, it’s such a mental thing 🙈
Yep, I cling to my savings like a drowning man clings to a pool noodle in the ocean!😄😄
Pry it out of my cold dead hand!🖐🏻
The worst thing is when you have to use ALL your savings to pay off your debt. Now that's scary.
Love people that "follow the baby steps" and obviously don't.
lol
I never realized before that only 20% of Dave’s answers are the information of the baby steps. He spends 80% of the time connecting with the caller. Every caller wants to believe that they are the exception, and in order for Dave to change their mind, Dave first has to show he understands the caller’s unique situation. Then he presents the next step as just the next logical thing to do, which also happens to be the baby steps.
I agree
Because personal finances aren't a one size all. Dave's babysteps are terrible advice for a lot of people.
Yo Karen you will be successful in life. Follow what you realized. It’s wisdom.
@@aaront936No they aren’t.
And if people feel that way, then they can follow someone else’s advice.
I still don’t think the guy understood what his monthly expenses were, math still didn’t add up at the end
Right! I think his 3-6 months is actually 6-7k but they confused him and he wasn't prepared.
he definitely said 1350 for mortgage and another 1000 for everything else per month = 2350 x 6 months = 14100. I don't know what math they were using haha.@@mosesleparker
@mosesleparker No, they didn't confuse him. They asked for "three to six months of expenses", and he gave a one-month figure. There's no way $6-7k covers three to six months.
Happy Sunday everyone. Remember to be kind to everybody everywhere.
Sunday is about to end for us 😅
@@theinvestordomain6592 winter is coming.
except those who peddle time shares...... no kindness for them
Even those who prefer rice free salads?
I like you
*We just paid off all our debt* 🎉🎉
Yay!!!
The caller is not good with numbers. He can’t even compute 3-6 months expenses 🤣🤣🤣
He just got confused... He knew other numbers like salary, bank balance and % of retirement contribution.
Be nice
@@godisgood5038 Does the truth hurt?
@@MC-vg1tl You poor soul. God bless you with peace.
@@godisgood5038 same to you
This still doesn't add up. He makes 70K a year but his expenses are 7K a month.
7K x 12 = 84K...
😂😩😭
🤥 I'm confused!
Good point
True. It sounds like his monthly output is around $2.5k. These guys didn't spend enough time clarifying that with him.
Savings is a security blanket so it can be difficult to use it. However, this guy is in great shape. Payoff the debt and still have $21k in savings. Great job man 👍.
J money I'm in a similar situation have 12000 saved up with 4000$ owed on my car should I pay it off
Financial health is 90% mental/emotional and 10% numbers.
@@windy6868 Like....NOW!
@@windy6868 Your first mistake was financing the car and not paying cash.
Now, ask yourself this simple question…
Does the amount of interest accrued from your savings account exceed the interest accrued on your debt? It’s simple math and the answer is no.
Pay it off *now*
@@bren.r thanks guy I will pay it off
paying that debt will make him feel so much better and beauty about making money, you can always make more.
The beautiful thing about money is that it is a tool and if you use it correctly your money will make money. Learn what compounding interest is and ignore these babysteps.
It sounds like his monthly expenses are under 3k which means he needs about 9k for an emergency fund.. he doesn't need 6-7k a month, that doesn't make sense.
This call was a train wreck
He’s in great shape and once he gets onto Ramsey’s plan, this will go so fast! Good job, sir!!!
I'm glad the math added up eventually. Ramsey would have lost it by then 😅
Depends which Dave Ramsey turns up on the call. Sometimes it is patient Dave but more and more "it's get off my lawn" Dave.....
I finally paid off my student loans in FULL just before forbearance ends. I refuse to let the loan company get a penny of interest from me. I'd rather have a temporary reduction in savings and build back up so I don't have to get SQUEEZED by the student loan comapny. Screm em.
Im 27 with 8k in the savings, all debt paid off besides mortgage. Bought a condo april of 2020 and the feeling off paying off the condo at a faster rate and able to safe is the best feeling ever.
How is this guys monthly expenses 7k a month?? Why don’t they ever address that problem
Making 70k/Year...
I think his numbers are wrong. He obviously has disposable income if he was able to save $35k while investing 10% of his income and paying off debt. I don’t think he is spending $7k a month on a $70k income. If that were the case, he’d be in the negative
@@NadyaPena-01 Exactly this. He's either spending too much and using CC debt, or not on a budget keeping track of where his money goes
@@aytcs yeah you’re right. It’s ironic that they’re so incredulous because that’s what they preach to people with average incomes to do when they say to not pay more than 25% of your take-home towards housing and live on rice and beans. Shows the hypocrisy.
70k salary . 7k monthly expenses . Not adding up Lol
I don’t know. Something still doesn’t add up. I think someone needs to sit down with this guy and figure out dollar for dollar where all this money is going. His baby steps are out of sync and he doesn’t understand how to answer these questions.
Thank you I could not agree more. I think he either does not earn much more than he spends or his budget is unstable b/c all he has to do is wait and pay later once he has the cash amount to know what will work. I think it may be better to increase buying power some how. Your quote: (I don’t know. Something still doesn’t add up. I think someone needs to sit down with this guy and figure out dollar for dollar where all this money is going. His baby steps are out of sync and he doesn’t understand how to answer these questions.)
Im just afraid to spend money in general. I've become this cheap person
Same here my girl actually calls me cheap boring and unfun all the time. she's just not on the same page as me at all when it comes to money.
@@el-hp1lj leave the relationship. Or at least never marry someone like that. Disaster waiting to happen
I feel like at this point no one is doing the baby steps right
The caller was right $1350 house payment plus $1000 expenses = $2350 monthly ×3 months = $7000 for emergency!!
What about the fact that he said his expenses are around $7k/month and he makes $70k/year? Even if $70k/year is his net earnings, that’s still $5833/month. I’m guessing he might be referring to an annual salary of $70k/year which is going to be around $4k/month take home. If his numbers are actually accurate, he will continue to need debt to live his life until he decreases his spending or increases his income.
Dave needs to update his starter emergency fund. $1000 in 2021 is not much for an emergency. I get that is a pyschologically attainable number, but really it's almost nothing these days. Dave was advocating a $1000 starter emergency fund in the 2003 copy of his book. That $1000 expense in 2003 would be $1500+ today. Time to up it to $2000.
He’s explained why he isn’t going to do that. You’re not going to change his mind.
It’s a starter for a reason. It’s to bring a sense of urgency to your situation.
I don’t understand why people feel the need to come to his channel and tell him what to do with his plan. One that’s worked for 30 years.
This guy clearly doesn't know the baby steps.
Funny how so many people really can’t do numbers # ‘s
I think his expenses ARE about $2.3k a month. So he's right that his emergency fund is about $7k. He lives in Kentucky.
His grass is blue!
I sort of understand what this guy means. My friend has to have a surgery it will cost 3K. Bro actually wants a personal loan from the bank despite having $10k in savings because it took him a while to stack that up. He says "i NEVER pay myself back but i always pay back those guys" i tried to tell him just use the savings... 😔
Even from a practical point of view, he's going to keep on owing money because of accrued interest. Surprised the hosts didn't mention that.
Im in the same boat like this person. But sadly I'm in college for my master's and paying out of pocket( no loan) . I don't think I'll be out of baby step 2 till I graduate . 😒
What you need to do is, drop out of school, marry a stripper you barely know, get her pregnant as fast as you can and buy a 2024 Corvette with $1,500 car payments........that outta do it.
George’s face.
7K a month wtw! I'm confused!
Who tf is that next to Ken Coleman ??
This guy is a superstar! He's crossing t's and dotting I's across all boards!!!!
best thing you can ever do is after you pay off debt aggressively look back and see how much you spent: total, on interest, and the possibility if you had invested that vs you making others more rich and going bald.
This isn't true. If it has a low interest rate you are better off paying the minimum and investing the rest. Learn how to make your money make money through compounding interest.
but you're not afraid to keep the debt? that makes no sense
Mortgage payment - Mortgage Balance = 15% for retirement.
$7k monthly expenses? This guy lives in a mansion or something?.. That seems a lot to me
Yep and saying that he makes only 70k a year… doesn’t add up at all, unless he’s going further into debt every month?
I really miss AO on this channel.
He violated some rules.
What happened?
AO is better on his own channel, he always sat there like a bump on a log on this channel, like he was afraid to talk especially when he was paired with Dave.
@@havuckofp what rules
Why he didn't have mastery of the subject material. He consistently bungled the baby steps and Dave had to correct him, for example when he recommended someone pay off a larger loan first. It's just seven baby steps how hard is it to learn? George meanwhile mastered his craft and is being rewarded for it.
How is $14,000 just a "little bit of debt"? Plus, the guy can't add.
At least AO had his own ideas to give an answer, this guy literally imitates Dave with these baby steps, I'd rather hear from Dave than this guy's monotone voice.
Yeah… I miss AO
AO has his own YT channel now
I was looking for this comment. I’ve seen him a few times now and he’s trying tooooooooooo hard to copy Dave. No originality. Be yourself dude!!
Who is the new guy
If he makes 70k and spends 6-7k per month then he spends 72-84k a year and is drowning. I think he had is emergency fund numbers right before Ken confused him lol
@@aytcs I think you restated my point. Thanks!
I don’t follow baby steps but I use Dave Ramsey’s principles as my main guidance for my finances. He wouldn’t like hearing that but it’s my life! Haha I have to think for myself
Youre on the Evan plan, Dave is cool with that unless you call and ask for advice. Then he would say to do the Dave Ramsey plan lol
Dude you better pay off that debt real quick the u.s. dollar is because more worthless each and every day don't believe me look at the price of everything around you going up.
According to your logic then it would be stupid to pay off the debt.
Who is this guy? Is he a new team member??
The reality of the rich and the poor is this; the rich invest their money and spend what is left while the poor spend their money and invest what is left .
The problem is he believes he has savings and he does not. He's in the negative. It's against the laws of mathematics to have a savings while having a mortgage.
All my savings is my emergency fund..😆😆
Jonathan sounds like a good old boy who went through the public school system.
1000 is not enough for a emergency
Sure, but it’s better than nothing and already better than what the majority of the country has.
Save more then. Or start your own get out of debt system
That’s why it’s called a “starter fund”. And it’s twice as much as the national average.
Sirdeezy, it is a "starter" emergency fund, meant to help in little emergencies that derail most along the steps!
Suppose be starter
@DavidRamsey I have a question what is a good safe bank FDIC to deposit a large amount of money 💰talking about close to a million. it’s not a question for me for my dad ? He’s into investing owns multiple properties
paid off he’s wealthy but wants to deposit a large amount of money he’s not interested in investing or interest rate just safety of the bank and his money
Because this amount is not to invest it’s separate from his other accounts he uses to invest and for real-estate
I appreciate and thank you for your wisdom and advice in advance More grace in Jesus Christ name
Does anyone have an answer to this question!!
So if I want to pay off my car I have to stop my 401k until I pay off my car?
If you are following Dave's plan, yes. It's about focus on paying off debt before doing anything else.
That's what the Ramsey plan says; stop contributing to your 401k and IRA until all debt except your mortgage is paid off. But I didn't follow that when I was getting out of debt. While I was paying down my car loan and other debt I paid enough into my 401k to maximize the employer match. When my car was paid off, I was debt free AND built a nice stash in my 401k. I would have missed out on over $10000 in employer matching funds if I wasn't contributing to the 401k during that time.
Imagine thinking the interest accrued in savings can outpace the interest in debt 😂
You didn’t spend because you’ were affraid before, pay off now, you will be in great shape.
when the host forgets paying off debt comes before the 3-6mo emergency fund
What? He didn’t forget the steps. He wanted to know how best how to convince him that his security is still there. Which worked.
Who is this new guy taking the place of? Chris??
That's his lover
Doesnt sound like this guy even keeps a proper budget
Omg that just sounds so stupid to me. Keep the 35grand in the bank. Make the payments every month. You have enough that if you do get into a bad situation you covered. I rather have the money on hand in case a big investment opportunity comes up that I could make big gains on.
Dave Ramsey teaches financial peace. Your concept of leverage and hard to find investment is sort of the opposite of peace: thrill, excitement, adrenaline, risk, concern. It's just a difference of strategy. One is getting to peace ASAP then building wealth. The other is building wealth asap then deciding if you want peace or not. Peace isn't stupid, it's just different
@@aytcs yea I rather put 10k into etherium right now than pay off car loan that I can comfortably make payments on. That 10k will double or triple in the coming years for sure
@@aytcs You have no clue how the baby steps work. You also do not understand theft. I urge you to quit dispensing bad financial advice.
😁🖖👍👌✌😎
The caller is a black American person. They sound different. I would like to visit America someday, I’ve learned America stuff for a while now
These hosts are horrible
You’ve got enough left over after you pay it.
Disingenuous fake non-millionaire alert, no one wants to read your unsolicited spam
Casey, you are HATED. PLEASE stop spamming!!!
Pls stop the oneliner abusing Casey!
@@saulgoodman2018 True, you are the real spammer! No ball Saul!
Casey, the broke as a joke financial spammer!
Unless you are already a millionaire, investing is wrong. You need millions to invest to make any money at all. Investing a thousand here and a thousand there won't cut it.
If you wanted an apple orchard yet had an empty field would you say I can’t have an orchard unless I had thousands of apple trees already so I’ll just give up on the idea? No, you would go buy a bag of apples, take out all the seeds and plant them. Once those trees produce fruit you would take those apples and plant their seeds. In time you would have an apple orchard. Investing is no different. You start small and continue making investment deposits as you can. As your investments produce returns, reinvest those and they too will yield returns. Returns compounding over time with consistent investments is what produces large sums of money. Remember, the mighty Oak comes from an acorn.
MiketheYung God, what is your net worth? More than 250M?