“I Make $18/Hour and Have $70,000 of Debt” | Financial Reality Check
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- Опубліковано 27 вер 2024
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Alecia had around $77,000 in debt when she sent me a DM asking for help with her budget. I said I’d give her a free coaching session under one condition: that we could put it on UA-cam for thousands of people to watch! So in today’s video, you’ll see step by step how we put together a budget to get Alicia on the path to building wealth.
Links:
Budgeting for Beginners Video: The Only Budgeting Method You Need To Worry About! • Budgeting For Beginner...
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George Kamel is a personal finance expert and co-host of The Ramsey Show. Following Ramsey’s proven money plan, George went from negative net worth to a millionaire in under 10 years. His goal is to help people spend less, save more, and avoid money traps so they can live a life with more margin, options and freedom.
This channel will simplify complex money topics, bust money myths with actual facts, and debunk the stupid financial advice you're seeing in your social media feed. All with a healthy dose of pop culture, humor, and snark.
It’s Caleb Hammer with less yelling.
and less s*x jokes too
It would be awesome to have her come back to the channel after 6 months to show progress.. that would be motivating.
In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.
If you need advice, consider speaking with a financial advisor. Don't get me wrong, you can do it on your own, but financial advisors have a lot more knowledge and expertise in this area.
you are completely right, Advisors have information and paths that are not disclosed to the public.. I profited £560k in 2022 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
Could you possibly recommend a CFA you've consulted with?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ 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.
We need a Dave Ramsey group for those of us with income under $20 hr. I have a degree in business but no one has been hiring other than call centers (& even that isn’t hiring this year)
Get a job in the government. They are the best employers in all 50 states. Try local state and federal.
Have you looked at hospitals? We have 1000s of people with the title admin assistant who make good money, with good benefits. I started at 45k/yr and i’ve more than tripled my income in less than 10 years (I took advantage of tuition discount to get my MBA) - health insurance is paid for with max out of pocket at $1,250/year. And they put 12% additional into 401k (that accoubt is over $400k without “me” contributing- i have a separate Roth IRA that i co tribute to). Note, i work for a university hospital :)
I don't have e a business degree but have my own small business and have been running businesses for people since around 2012.
Do you just have a degree? Any experience? Might need to go get some smaller business under tour belt with an owner you personally know to get your experience for a year or 2 first. Could easily ask for 20 but even if it's less just do it for a while to get what you need
I have worked at a hospital and still there, been there for over 15 years, I only make 36,000 year. Take out taxes, insurance etc. I now have a 2nd job. I do what I gotta do.
How long ago have you graduated ? Amazon has a program where they hire people that graduated within the last 2-3years as a manager starting pay 62k with about 8k in stock every year they hire anyone look it up.
Why she has Spotify AND Apple Music?
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@DIANNE-g However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
@DIANNE-g Judith Ann peace is her name
Lookup with her name on the webpage.
@DIANNE-g You are welcome
Let me make sure I understand how these student loans work. She has 77k in debt, so at 5% interest that would be $320 in interest alone every month. Her minimum payment is $32, so if she only made minimum payments her loan balance would be increasing by about $288 every month?! no wonder people never get them paid off.
Well but if they pay the max they can afford the loan should get cheaper IMO!!!
@donaldlyons17 Why should the loan get cheaper? If you agreed to the terms and conditions, why should the terms change? Both parties agreed on the amount to be loaned and paid back.
You have no argument. Pay your debts.
Aw yes the female version of child support.😂
@@Dragonologisthe meant the principle goes down each month..
@@Dragonologist You right and that’s why people shouldn’t borrow money… the agreed upon terms are often one-sided in favor of the bank. But a deal is a deal.
Alicia, it will be ok. It's been 3 years since we have cut our credit cards. It feels so amazing. We will never go back to consumer debt! Trust the process. All the best!!!
Yes indeed😊
Same! You can do it Alicia!!
Thank you for posting a kind and supportive comment. It’s staggering to see how many people come to the comments to bash people who are struggling and/or people who made mistakes or not the best choices. 🙂
I love this simple, clear , compassionate counseling session. As a retired CPA, I can’t help but point out that the $600 side hustle will will require 25 to 30% taxes. Keep up the good work. ❤
Even at her income? For a cash dog sitting business? Idk man...
Yeah. I hear you. But ALL income is taxable unless specifically exempt. There is no minimum and he is suggesting over $600 a month. That’s not insignificant especially over a year. I’m not saying it’s fair…
@@tyleralexander5976 it most likely isn't an actual "business" she is just doing it personally, which means it is personal income. it would be counted against her tax bracket. 25-30% may not be accurate, but it is still going to be taxed at whatever her income bracket is taxed at
I do door dashing. If I keep track of the mileage and manage to earn $1/mile, @a deduction of 0.655/mile, your taxes are minimal or even non-existent.
Its likely going to be taxed around 10-20% given her current income tax bracket (including other taxes), or more likely than not, its not going to be reported at all.
I love how you sat down with her, and went through the whole debt, and budget on screen.
Shayna, you’re a good sister for keeping your sister financially accountable and of course, helping your sister out.
Please y’all, don’t get ministry degrees if you can’t pay in cash or get scholarships/grants. You won’t earn enough in ministry to pay the student loans back effectively, and you shouldn’t get student loans anyway. There’s an abundance of available, FREE, information to learn the Bible and ministry. You can find a mentor. You can find more affordable ministry courses. You can take so many avenues without having to be buried in student loans.
Yeah, my jaw dropped when she said she paid 77k for a “ministry degree”…I know there’s significantly cheaper routes she could have taken for that. 🤦♂️
I was so excited to see this because it matched my situation exactly until she said she didn’t pay for her living expenses like rent and utilities. I don’t have the luxury of having someone to pay for my situation. Can we do someone that has low-income, large student loan debt, and pays for their own expenses.
One thing that I don't think was mentioned and is rarely mentioned even when it's a desperate situation like that is just look for support programs. If you have low wages and high debt, look for assistance where you can get it. The one time I've seen it suggested on Caleb Hammer's channel, the person was too proud. So they valued pride over their future basically.
That's why a lot of young people still live with their parents, with debt like this I definitely would stay in order to bring the debt down, it's a temporary sacrifice. There's also the help that comes from your spouse. A year after getting married, my husband and I used Dave Ramsey's debt snow ball to completely pay off both my student loans and my husband's credit card debt, and that was over 13 years ago. I am a stay at home mom now, so we are just a 1 income household, and we are on the last baby steps 🎉🎉🎉
@@GardenMinistry.being able to stay with your parent is not a sacrifice it's a privilege. Other less fortunate folks are obligated to help their parents
@@GardenMinistry.I unfortunately was put into a position where I had to buy the house I was living in or I'd be homeless. I was given 3 days notice from my dad, he had decided to take out a title loan using the house, that we needed to pay $5k in back pay or the police would be involved. It sucks paying to live in a home that has no freedom and goes way over my budget
That’s how family should be. Good job sister! Rooting for you Alicia!
I am so proud of her! Way to go Alecia!!!!!!! Stay the course!
I have “I quit!” arguments with Dave Ramsey from your perspective when I shower on an almost daily basis. Please relieve me from this stress and leave his show. You deserve it, George.
Correction: you’ve EARNED it
I feel like it’s great she’s able to do this but this is completely unrealistic for most peoples situations when it comes to living expenses. I’d love to see someone making what she’s making with rent and or a mortgage still paying off debt.
Thus the importance of avoiding unnecessary expenses, useless consumer debt and getting off on the right track!
Everyone’s situation is different, there is never a one size fits all budget. Some people have two incomes, some live in a high cost of living area, some have kids or medical issues. But when you look at each situation I’m sure you can find a solution for yourself
@@Olivia-2019Not all can. Please do your research thoroughly and don’t make broadstroke false assumptions.
@EmilyGloeggler7984 wow you're negative as fuck have fun with whatever you're doing.
George I’m laughing so hard at you mentioning the scammers! I’m so glad you did because I think some of your audience may be susceptible to those scams. Thanks for calling them out loud and clear for those that may not know.
Cc and loans really give you the American dream. Interest and payments wakes you up.
I’m just gonna say can we get more of these! 💕 it feels relatable kinda!
Your mention of the spam commenters is hilarious!!!
It's so funny and scary how many scam comments there are on EVERY category of finance related youtube videos.
I had $67k in debt making $16 an hour. 3.5 years later, Im now 2 months from being debt free!!! The key to how I did it? Put my fluffing head down to take classes outside of work to change careers to now where im making $28 an hour, live frugally by not overspending on the major life expenses like apartment/car/eating out, and there you have it
Its possible, people. Just accept the position you're in (THAT YOU PUT YOURSELF IN most likely), put your big boy/girl pants on, and take care of your shit
Thank you Alicia and George!!!! George I want to see Alicia on the Ramsey show shouting at the top of her lungs!!!! "I'M DEBT FREE THANKS TO GEORGE"!!!!!!!!!
George is awesome. Ramsey not so much….🇺🇸
This is now my favorite Dave Ramsey series! Thanks George for making this fun yet informative! God bless you and your family
George, This is an amazing video. Real life issues, real life advice and follow up! Put it on the board! More! Bob
George, you are great. You have a talent for this kind of show.
That was the biggest mistake of her life getting a ministry degree and a masters in ministry. Good lord.
I am South African so I don't even know Capital One but that shout out totally killed me😂😂😂😂
She's lucky she at least has decent interest rates on those student loans, mine were far higher but worked 1,000 hours of OT and paid them off in about a year... but I only had half her amount. Props to you George for helping someone and props to Alecia for taking those crucial first steps to wealth independence!
more time should be focused on why there is $70k in student loan debt and why isn’t her income reflecting all that education? the real hero is the sister here, she’s the one basically helping to pay down the debt by forgiving housing expenses, that’s the sacrifice here. I’m glad she has a good attitude and she is getting support now but hopefully she will be smarter about future decisions.
This video is such a cool idea you should do more of these!
This is the true Financial Audit we need, someone calm and collective who's optimistic like Graham Stephan and not pessimistic like Caleb Hammer (who also exploits by enticing others to buy a $300 course). This year after watching some Caleb Hammer but more of Graham and George, I paid off my $8k credit card debt and now Im just down to my car loan of $31k which is definitely within my budget. I'm proud to say as a 26 year old that these people are truly gods people, after credit card was paid my credit went up to 807, I currently make a little over 6 figures and I only have one debt now. With less debt I was able to open a high yield savings account on top of my current savings account too. It's possible just some sacrifices will need to be made.
I love this format George. Thank you for the details on what this debt free life looks like for people getting started.
It's Financial Audit, but calmer. I like it!
Yaaasssss
Very very cool to see a real example of budgeting & opting for change in action :) I hope she keeps kicking butt!
Why get into debt for a useless degree ? Getting a second job could easily paynoff that credit card debt
I got a useless degree and my starting salary is 82k lmao. Middle management FTW
27k debt. I’ll be able to pay it off in 1-1.5 years, and I’ll have the degree for LIFE. seems like a good deal to me
@@barexampasser .I did not say all degrees are useless.I was referring to the person' s individual case, where that degree is pretty much useless
@@jamilladiallo1321 "follow your dreams and passions....
.....Into debt and hopelessness"
Talk to all the baristas at starbucks. Spending $70k for a feminist dance theory degree, minoring in coloring book scribble interpretation. Then want to act shocked that there's no job listings for people with their degree.
loved the fake bot call out!
George, I ❤ this video! This is so inspiring! I ❤that she followed up! Please have her come back to check in. I’m rooting for her! 🤩
I know a lot of people like to make themselves feel smart by petty disputes with the snowball method but the beauty of it is that as the snowball gets bigger the debt amount and the number of debts gets smaller. You see the light at the end of the tunnel get a little brighter every month. The snowball rewards and encourages both at the same time.
I can say from my own life experience that there has to be an intentional decision that leads to a commitment to see this through. Our 2018-2022 snowball that put us in a debt free lifestyle and saving for the future was our third debt free journey. Yes, we went from consumer debt to no consumer debt and right back in twice before we made the commitment to get out of debt and stay out of debt. There is a certain beauty in simplicity and that is what the snowball is...simple.
Proverbs 22:7
Ugh I needed this!! I was doing amazing for 2/3 of the year and recently slipped. Just needed a refresh. Thank you George and Ramsey team!
I'm rooting for you girl!!
Great walk through of the EveryDollar budget tool with a real person/budget. Thank you George!
Way to go girl!! 🎉🎉🎉
This is really helpful to understand how Every Dollar works. Thanks for bringing in a real live person with a real life paycheck to manage life with!
Caleb Hammer!
Cutting up my credit cards was one of the best decisions I ever made. I just completed my first year without them. It’s amazing!
You should do more like this 😊
I like it. It's like financial audit without the foul language.
George, can you do a video on safe withdrawal rates at retirement? Specifically the math behind length of retirement and different withdrawal rates?
This was awesome George! Really enjoyed this type of video.
Its really good to see that she is heading down the right path.
Uh oh, George is coming for you, Caleb!!
I really like the show. It's the Student Loan debt 😩 I hope she keeps up with the plan to get out of debt
Alicia don't give up on yourself and your sister and most of all George!!!!!! You can do this!!! You have a very supported system in place!!!! work it!!!!!!!
That was awesome. So brave. It will only get an easier longer run.
“Mom, can we watch financial audit with Caleb hammer?”
We have financial audit at home!
The financial audit at home:
Haha but truthfully, I am happy that you are doing this! I know you respect Caleb and I think the more people out their trying to assist others with their finances, the better
this is a great channel brother. you should do this more often
It was hard to watch her reaction to the suggestion of cutting up her credit card today. You could see the fright in her face. I hope that she builds the courage to rid herself of the card, and takes advantage of the kindness of her sister, so that she can get rid of all the useless student loans.
If you watch until the end, she did cut up the card!
She cut the card
@@berg_dawg Roger that! Good for her
@@RobVI thanks! Good for her
Cutting cards? Lol.I worked with my sister. I had her sit on the phone with me sitting next to her ..called the credit card to CANCEL the card..otherwise she'd just call and have her "lost/stolen" cut up credit card up in a weak moment
Great format George! Loved how your guest had all the numbers and did not spent half of the video looking for them. Also you gave on point advice on how to improve her situation. Fingers crossed for her ❤ Please keep them coming.
Best channel in the whole Ramsey brand!
Taking student loans in USA is crazy, it would be better to learn Spanish or German and study for free in the EU. I hope Alicia reads this message and takes her dance classes online. There's a bunch of platforms especially for getting payment online and sharing info with your students uscreen, teachability. Girl u could easily make 10k a month. All the best
I love this. She is eager for help and you are helping her. Wish there was more of this in the world.
I cut up all 4 of my cards the first week I started listening to The Ramsey Show.
I’ll subscribe if you promise to never be sponsored by Better Help again. Your audience deserves better than those predators.
Love all of your videos George but this is gold. More of this please!
Good job cutting up that card!!! So proud of you! 👏
ok i cackled when you read that scam/spam comment
Love the Hammer format. Curious, Did Ramsey approve of this budget? Why do I hear him screaming at you later for suggesting something “stupid”.
An awesome video!! So specifically helpful. Have to share with my son. 😊Thank you!!
I love this format and I love it a lot more than Caleb Hammer's because this is a normal person that actually wants help. Caleb used to have more relatable audits but recently it's all lunatics. Hard to even watch it. Go George!
That's mad! my ministry course is just under £6000 A YEAR and for accommodation.
She has insanely cheap insurance. I got a 2014, no accidents, no tickets, veteran status with USAA and I’m 25 and I’m paying like $225 per month.
Full coverage or just min? I’m paying $150 a month for min on a paid off 2014 nissan
Love this! So practical!!!! Thank you! ❤
Wholly shit, I didn't realize how expensive a student loan is. I mean, I know I shouldn't compare it to a 3% auto loan since that one has collateral, but wowzers. I'm glad I went to a public university and lived poorly enough to survive with only grants and scholarships.
George, you should bring back Dave Ramsey's Plasty Awards. That would be so fun!
Why family should live together.
I can't believe that people with so much more education than I do, get paid so little. And to tack student loans on top of that... WOW.
Thanks George- this video should be played for all High School students as part of a course called ‘Scared Straight- Digging Out’. Hopefully better decisions will be made before they decide to borrow their way to degrees that put them in this bind in the first place.
I lived on $17,613 for 2023. All in, housing, food, insurance, gas, everything. That's less than $1,500 a month. It's $10 an hour 40 hours a week. I have no debt and I own my house. People have no idea how cheaply you can live when you don't live like everyone else.
Must not have mortgage or car payments or that be impossible to do but congratulations on your success
How did you do that? Did you grow your own food? I live in Australia my rent is $1560 a month, I don't go out, I don't have debt but I have a son and food is killing us we are now trying to grow our own food my gas and electricity is almost 1,000 every 3 months and I only work 2 days a week as I can't get day care for my son and have no family
How??
Hope tf did you buy a house with $10/hr??? You not telling the whole story
Loving the new format!
This is amazing, thank you George, for all your advice, it's definitively life changing.
Congrats to Alicia!!!
She is going to live with her sister for quite some time
Cut the gym and streaming stuff.
Loved this format!
great video, love to see more like this. Thanks Don
Get her a CDL.
Go OTR for 2 yrs starting pay 70k a yr
See the country
Build a plan
Work on yourself
At end of 2yrs you'll be debt free and over 20k in the bank, maybe more plus 2yr experience to get a local trucking job in case the job u want is not available or waiting for that job to open
Facts. I got my cdl but I’m working a local job for about 22 an hr until I can get a better local job. Best decision I’ve been told to do!
Thank you for your videos George, thank you for what you do for people, you and the Ramsey solution have restored confidence within myself to be able to get out of debt. And I’ve never felt better. Thank you guys.
This was super helpful to watch! Thank you both.
$18/hr is fast food territory. She can go back to get her RN (ADN) at a community college and double/triple her salary. Her master degree obviously doesn't worth much.
I shredded all of my cards in the shredder except my Apple card because it's titanium. So I used a grinder with a cut-off wheel and cut it into small pieces. All I saw was bright sparks while I was cutting it. Apple made sure that you could not destroy your card.
One of my favorite videos so far!
I got offered a 75.5 million inheritance today...I don't understand how people fall for this stuff. If it sounds too good to be true, it probably is.
These are not too good to be true, more like ridiculous!
These student loans... They just balloon more and more. Until you get a good income by which time they've grown to drastic proportions and you're stuck with them for years
My problem is not the budgeting but the income. I can cut out expenses down to the bare minimum (I don’t have a car payment, student loans, a credit card, or streaming services) but I still can’t afford basic necessities like mortgage, groceries, gas, utilities, and especially medical needs because everything is so dang expensive. Been trying to get a higher-paying job for four years with no luck. I have a college degree and I work full time, but I cannot seem to secure a better job. What’s the secret to that?
Shout out to Shayna!!
A7 chord 😂😂😂… very good George lol
Yayyy I’m so excited for this!!!! Been waiting for more one on one time with people who want to follow the Ramsey program! ❤
Honestly what the worse with cutting cards. If u feel ur dying from it apply for another🤷🏽♀️but u won’t when u free😎