As a constitutionalist in a lover of the country you buy gold you offer payment and gold and silver and especially you give a child a silver coin when you recognize and understand what the Boomers have done since the sixties
+JacobslifeinVegas Funny how a single, smart, successful guy with no kids ends up on a path to being wealthy. Makes you wonder what happens to the rest of us.
I know what happened to me-I took out over $100,000 in student loans. I've paid off almost 40 of it in three years. I'm very much a natural saver, so having all of this debt is very frustrating for me because I know I would be way further ahead financially without it
By creating wealth entails establishing positive routines, such as consistently setting aside funds at regular intervals for sound investments. Financial management is a vital subject that many avoid, often leading to future regrets.
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time
Yes you're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
I was really down with cancer and could not continue working , instead of leaving my money in bank I paid my bills and invested the rest in stocks and today I'm enjoying my dividends
IntermediateGamer how awesome is that! Great stuff. I wish I had the same mindset as you when I was 23 but wishing the both of us a great financial future :)
No wife no kids, no contribution to society. We need people like him to do those things. And still be financially stable. Like me ;) baby on the way but debt free! We need smart people to have kids not idiots.
@@dreamingofskyrim Yes, we need smart people to have kids. That doesn’t mean the childless are not contributing to society. In fact, they’re unfairly forced to pay too much tax, and will not have kids to help them when they become feeble. Govt they’ve been paying for won’t care for them.
I give Dave credit where I think he's earned it, but I also don't hesitate to be critical when I think he's earned that. That said, this is possibly the most useful video on his RUclips channel I have ever watched. It was very helpful to me.
Im 30 and I am 100% debt free. Keep pushing! Once there shoot for 401k or roth ira, then go for 20% of income in savings. Then look to be generous. Help people, give back, etc
I can understand people being bearish with these conditions. However, it is not reasonable for most people to sit on the sidelines while your cash position debases by 10% or more per year..What is the best way for me to avoid inflation eating up my cash reserve of about 250k while investing it?
Don't be in a hurry to get in. The economy needs several weeks of strong performance to signal that the downturn might be over; i think It's a time to be largely, if not entirely, in cash
Inflation gives the illusion of growth. Investors should exercise caution with their exposure and exercise caution these period. See a market strategist with experience if you are unable to manage these market conditions.
@@velayuthman Agreed, opting for financial advise is the best way to go about the market right now. I average 5 figures/month in dividends, but my overall ROI just hit 85%. I only have 30 or so stocks (20%) of my portfolio with more of my investments in digital assets..
I've experimented with a few over the past years, but I've stuck with the popularly ‘’Kristin Amber Landis” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Summary: 1. $1000 saved 2. Debt free (other than mortgage) 3. Emergency fund (3-6m of expenses) 4. 15% of income saved for retirement 5. College fund for kids (if any) 6. Pay off house early 7. Be generous Thank me later. 💹
I have so much respect for dave Ramsey, I did not attend fpu but got inspiration from listening to the show and bought his book me and my wife did the debt snowball I am sitting in my paid off house writing this. Thank you dave
This gave me all the hope and reason I needed. Realistic, Logical and Applicable ! Man why haven't I been listening to Dave long time ago ? Thank you Michael fro NY and Thank you Dave !
I was brought up with the teaching of>> Don't buy ANYTHING that you can NOT pay for IN FULL with cash in the next 30 days.. I have lived my life with this teaching.. It is all the have to have toys and the credit card payments that have destroyed so many families and lives.. God laid out His plan for you in His word. He will give you EVERYTHING you need to have a godly life.. Be in the world but NOT OF THE WORLD..
I like step seven. Be generous. If you’re in the position, giving dollars to your charities or family before you die is really fulfilling. Keeps the grandkids coming back 😊
I have so much thanks to give Dave Ramsey from seriously helping me out several years back. I listened to him faithfully on the radio and believe it or not - paid off all debts AND my home. It's doable believe me.
Thank you for sharing your knowledge with your viewers! I have two questions that I am sure you have explained elsewhere but I have not heard. 1. Why not invest the emergency funds rather than save it? It can be accessible in a few days to cover rent and living expenses if needed? 2. Why pay off a 3% home loan off early rather than investing the extra payment for a 7% to 20% return? Take care.
I'm 34 yrs old. I am definitely a saver, invested in some mutual stocks with High yielding dividends and living below my means and still wanting to learn more about finances. Listening to this guy
What do you recommend for someone who's new trying to invest in stocks? All I know investing can be a risk with losing money then to top it off have to pay a advisor to invest for you.
This is my fifth year since retirement. but this isn’t really how hard I expected things to be. I still have about $460,000 of debt in my IRA to invest in stocks. How can I use the market turnaround?
Now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
Many people downplay the role of financial advisors until they are burned by their own emotions. I needed a good boost to help my business stay afloat. So I searched for fiduciary financial advisors and found someone with due diligence who did a great job of helping me grow my savings from $275,000 to $850,000 so far.
This is really nice. I worry that I have a couple more years before retirement, and I want to switch to using a financial advisor, I could really use the expertise of this advisor
I started out with a Financial Adviser called "Jill Marie Carroll". Her honest approach gives me complete ownership and control of my position, and her rates are incredibly affordable given my ROI. However, do your due diligence before contacting a financial advisor.
I recently sold an apartment in Springfield and now have about $250K in cash. I was advised to invest in stocks but I'm new to investing, as I've always preferred to play it safe with cash, but I'm now ready to take a little risk. What are the best strategies for long-term investments for retirement?
While the stock market is promising and can give good ROI, expert guidance is essential for effective portfolio management so you don't get burnt out in the market as it is very volatile.
My dear husband passed away in 2021, and I have around $400K from his life insurance just sitting in a bank account, earning nothing. I was advised to invest it through an advisor, and in just six months, I achieved over 80% capital growth, not including dividends. Highly recommended!
Pls how can i meet this advis0r? i want someone to help me invest my divorce settlement, It's just being laying around in the bank without appreciating much
Thank you for the lead. I searched her site up and filled the form. I'm just waiting for her response as I look forward to working with her to invest my cash savings of $80K.
Theres PLENTY of things to live for other than kids, your just brainwashed into thinking there isn't buddy. When divorce rate is over 60%, go ahead and risk your financial freedom pal!! hahaha
I am always impressed at the way all his callers have numeric knowledge of their own finances off the top of their heads. If you asked me those questions I would need time to look them up.
I need to make this money work for me, and not just disappear over time. I've been scrambling for somewhere to put the money, where I can make an effort to use the gains to pay bills so I can quit my job or should force early retirement. All roads have pointed to the financial market of some sort which is a good idea buh where else should I put money besides the financial market? We have a 13% RPI rate so cash is tough.
Yep great question and that’s always the one - where would you rather be if you have an option. Personally I’m always invested aside from a small emergency fund. Financial-market for me seem the only way forward with my long time horizon (accrued almost $1.4m in gains since 2020 ) but if you don’t have that fortune of time it’s a tough market out there almost nowhere feels safe! . Just know the risk you're comfortable with . Mistake is expensive
I fully agree; I’ve got approximately 1.2 million in outside retirement funds, no debt, and very few dollars in retirement funds in comparison to my portfolio balance over the last three years. To be honest, the financial advisor's role can only be ignored, not dismissed. Therefore do your research to get a reputable one.
The fiduciary that guides me is “Sonya Lee Mitchell” most likely the internet is where to find her basic info, you can run a quick research with her name. She's established...
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
This is great, I really needed to hear it. I'm doing well but it's helpful to go over the steps again. I had probably gotten a bit too comfortable, maybe even lazy, but now I see how I can recalculate my rainy day fund and attack my mortgage more aggressively.
This inspired me, I am not 41 but I am 33years old with teen children. Have my beautiful 500k house and I max out my Roth, along with fluid savings. Hearing this guy I feel I will retire young and a 3million millionaire 🤑 came here to get inspired. Long before this guy's age my kids will be in their 20s and I will have my house payed off. God is good ya'll, God is Good
Dave, you are good human being. You help people. I am glad that I stumbled upon your videos. I have learnt a lot, and I actually finished all the baby steps you are talking about and you made me a very confident and happy man. Thanks A zillion Dave, I pray God gives a long life so that you could more people !! Have a blessed day buddy !!
Started Dave Ramsey program about 14-years ago. Own Home not had a house payment in 11- years. No debt, three kids. Two went to college both have all college loans paid off. (Proud of them I bought them Complete Money Makeover books for Christmas one year.). I paid for 1/2 of their college. Third child is still deciding what she wants to do. Wife stayed home and raised kids did daycare and is now back in workplace. Have a good chunk saved for retirement already as I started when I graduated from College. I am 59- years old. Listen to Dave it can be done, just have to set goals and have priorities. Also not like I'm a tightwad and never spend money or go on trips. Just reasonable about it. Good luck! All it really takes is goals and a plan to get there. It is still true today, despite what negative people tell you.
Dave: always enjoy your videos. There’s something about you that is charismatic. Other people, though younger and better looking, just don’t have what it takes to keep me interested.
Funny how people say "don't get married" are only saying that because they can't hold a relationship or make poor dating choices. I'm married and my Financials have grown tremendously with help from the spouse.
@@2busywinning I'm a dude you idiot. I work as she works, double the income My wife don't spend like yours do. You must have relationship problems if you think all women like to spend money.
It’s a financial decision. People also say don’t start a business after theirs has gone south. I think what’s important is propoerly evaluating the financial decision. If you jump into marriage without vetting your partner or understanding relationships, you’re going to be about as successful as someone who starts a business without knowing the industry
Keep it up buddy. Paying off all debts is key. Even more important though, is not worrying about what people think about your car or your living quarters at first.
My older sisters did a Dave Ramsey course when they were in their teens. They taught me (I was 11) how to manage my money. I started my emergency fund with $50 and slowly worked my way up to more than $500 in no time. The key is to NOT recklessly spend. All my peers were spending money on useless clothes and makeup and Starbucks drinks. I also sculpt as a hobby and save money I make off of commissions. I'm so thankful I learned about this early on. I'm going to college soon and am excited at the idea of no debt! I'm also excited to teach my future kids the same things I have. It's doable.
Insightful video. I just want to know best how people split their pay, how much of it goes into savings, spendings or investments. I'm 27, and earn nothing less $150k per year, but nothing to show for it yet.
When people have money, they spend it. And some people spend more money when they have more of it. If you want to improve your financial management, you should consult with a financial advisor.
@@devereauxjnr That's right, you can avoid the traps of lifestyle inflation by consulting an expert advisor to help you plan for your short- and long-term goals; it all comes down to proper guidance. Over the past two years and six months, I have seen my income build wealth and now have a fully paid off house and at least $650,000 in stocks. All this is the result of subsequent investments with my savings and the application of expert advice.
@@Veteran2002 Nice, who is the Financial Advisor aiding you if this is not much i'm asking? my retirement plans are going down the drain with my 401k particularly losing everything it gained ever since 2021.
this guy is almost _exactly_ like me (same age, similar amount in the bank, same balance on the mortgage on 3 bedroom house), but I have a wife at home with 3 kids, we own our car outright, and I earn less. We rock!
Im younger, cars paid off, 2 of 3 homes paid off. 401k rocking, 401k roth rocking, savings in bank is x2 my salary. My small ranch paid off. No credit cards, college paid off. Im 34. We rock.
I know people who have kids because they get money for having them $760 the get per child than payments stop at age 3 so they keep having more kids with other guys. lucky I on the other hand single car paid of and paying of my first home it be paid by time i reach 50 years old only 30 years away.
Keeping money in the bank is setting yourself up for devaluation from inflation. My thinking about money has drastically changed lately, especially since I understand how to make profits from the stock market, and I started with only $60k. I'm still not making enough profit as I would though, but I don't know how to navigate from here.
I don't know what your profits are, but you are probably making what every other average investor is making and that is okay. The people who make those crazy profits you hear about are either professionals or people who invest with financial advisors. I'm talking about five figure monthly dividend checks.
I agree. There's a lot of potential in the market. My friend introduced me to a financial advisor in 2021, and even though I was skeptical, I went on. I finally was making enough monthly dividend to quit my soulless job and pursue my dream to start a restaurant in New Jersey.
That's really great. I've tried doing some research myself to hire a financial advisor, but it's really overwhelming. Could you recommend who you work with please?
I'm hesitant to make recommendations like this online so I can't drop her contact here, but you could look her up yourself and contact her if you wish. Her name is *Sharon Lynne Hart.* You can find details on how to reach her from her website.
Sharon Lynne Hart is the advisor I work with. Just research her name and you'll find necessary details to work with a correspondent to set up an appointment.
I genuinely mean it when I express my stress and concern regarding the market crash and high inflation, particularly in relation to my retirement. I have been experiencing losses for quite some time, and while some may argue that crises can present opportunities, I am feeling overwhelmed. However, I understand that investing is a long-term endeavor, and it is crucial to maintain focus on the bigger picture and the long run.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
My brother is 43 and has not held a job since college. He moves from older rich woman to woman. Spends his days at the gym and planning their next vacation.
I was like wow. Hows this guy doing so good with money? Then I heard him tell the answer. I'm not married and no kids. Bingo! But let it be known the wife and kids are more valuable than 30mil in the bank
I like the ‘outrageously generous ‘ comment. I can afford it, so I do like to give money to good causes and very appreciative family members. I’ve been happily doing that for years 😁
Everyone is hitting on the fact that the caller has no kids. But did you hear his actual response when Dave asked if he had kids? "No, I'm not married." That shows he's also responsible enough to not run around and procreate children he has no intention of financially supporting, no "baby mommas" he refuses to commit to etc. Sounds like a stand up guy!
Good morning I am 69 battling ovarian cancer due to talc powder so far I am winning that battle..I still make home mortgages and will be done in 8 years I work part time as a notary and 2 days a week in a pet shop for my sanity don’t like sitting around the house I have 20,000. In a cd saving because my car is 2002 years old and will need to replace soon not with a new model ..and I have 8,000.00 safety money I am a bit perplexed about if I should even get a 3 years old old car considering my precarious health ? Yhank you in advance for your help oh by the way I am in the big law suit concerning this talc powder. But likely won’t be around to collect ..
Keeping a 20-30k emergency fund in a standards savings account seems like a huge waste. Instead of making ~0.05% interest, you could put it in a money market and make ~0.25%, and have the exact same liquidity. Even better, you could put it in a ~3 year CD and get 3% interest! You just have to make sure that the early withdrawal penalty is reasonable. At my local credit union, the penalty is 90 days worth of interest, which comes out to about $100. I earn $500 a year on the interest, though, so that would more than pay for itself in the unlikely even that I ever make an early withdrawal.
One other thing I forgot to mention was that sometimes there's a difference between the minimum balance between a savings account and a money market. That won't matter for someone with 20k in savings, but it would for someone with $1000. That's another area with a local credit union will probably serve you much better than a national corporate bank will; my credit union doesn't have a minimum balance for either type of account.
Yeah I ain't seen a 3% CD, but there are lots of 2% HY savings accounts. One small thing about high-yield savings accounts is they usually have monthly deposit limits, like $1k max, and maybe not FDIC insured. But they're liquid and basically keep up with inflation. Either way, a fully funded emergency fund's interest earned is only gonna be what like $500 per year tops? Doesn't make much difference, the important thing is that it's quickly accessible.
@@JiisTube 3% was standard a few years ago when I set mine up, but you're right that it's much lower today. It'll go back up, though. $500 per year is not nothing to me, especially when it compounds every year. I've looked at Capitol One's HY accounts, and they are appealing, but I couldn't justify it morally, since their business is built on tricking people into debt. Maybe there are more ethical companies out there though, I haven't looked.
if you have a 30 year conventional with 20% down. reasons to not pay it down. -tough to get equity out -inflation, payment will stay same (besides property tax) the life of the loan. -mortgage interest is tax deductible - cash to pay mortgage payments in the event of a job loss or recession. - grow the extra in a taxable account like etrade.
The actual morale of the story rather than selfish one, “never get married and be selfish and bitter for the rest of your life,” Is to focus on yourself first, financially, physically, and mentally. Once you complete that, you’ll love yourself with no financial burdens and you’d know your worth. Then when you complete yourself, then you can find a like minded person with the same goals and dreams. Many people forget is that one of the most major causes for divorce is money. Get that under control for yourself, find someone else who is financially and mentally stable, then everything would fall in place. Look at Dave Ramsey and his wife, they’ve been together even after his financial flop, also with multi-millionaire Dan Lok. To conclude my point, getting rich for selfish reasons is not going fulfill anything developing yourself and finding someone to share it with, and passing those traits on I.e. your children. That’s how you can make the world a better place.
i wouldn't pay off the condo, if you get a rate of around 3% APY on the mortgage imo it's better to invest in say something like the SPX with and avg return of around 9.7%.
nubserver well if he puts 35k down on the balance the monthly payment does not change correct? So I would do a money market at 3 percent until it’s at full mortgage balance.
Agree with Dave on most things, but his pension to early pay off super-low interest mortgages as opposed to wisely investing is misguided. You can't convince me it's a better financial decision to put the $30,000 toward a 3% mortgage as opposed to investing with returns many fold greater.
I just made a reply to that very same point. Considering the age, hopefully there would be some thought given to this today. There is no reason to pay off that mortgage if it is a low interest rate loan.
Throwing his extra cash at paying his mortgage down early is poor advice if his goal is to generate wealth. He'd be a lot better off investing that money and earning a higher return than the interest rate on his mortgage.
+James Duncan He is already generating wealth in his retirement savings. The sooner the condo is payed off, the more free cash flow he will have each month to invest if he feels like he needs to do more. Having the security of a payed off place to live is a good return for his money.
If u think of it investing when u have a mortgage is counter productive.Ur asking for interest on ur money while paying interest to the mortage. A $150,000 mortgage over 30 years with 3.92 interest = $255,320, If he pays it of in 10 years he saves $70,000 in interest
it math, let say he owns 100k on the condo, at 3 percent intrest, if he had a 100k in cash in invest it, if he made dave 12 percent that would be better, 12 - taxes (.25)= 9.5 -3 percent= 6.5 percent that is a extra 6500 a year. what if he only made 8 percent now it only a extra 2k a year but if he make less then 7 percent after tax and the 3 percent he paying on his condo he lose money that year, plus I am assumeing he has a 3 percent loan, it might be 4 or even 5. so depending on his LOAN intrest rate, and taxes he would pay on money earn form stock plus what he would earn dave 12 percent what most people say 8 to 11, or 4 to 8 percent decide if it a good idea or bad idea,
+JasonfromMinnesota At that level of income, taxes are roughly 30%, his 401k is 15%. I'm going to guess his living expenses at 20%. So 5,000 - (5,000 * .65) = $1,750 give or take at the end of each month.
I agree! I'm 40y/o and have about $600k saved up. Looking to buy my first home (~$450k - in California) and pay it off, mortgage free), and still have a sized "nest egg" to sit on and feel comfortable with it. My life is and will be debt free 👍
I don't really understand why you'd put the extra cash toward the condo loan? With the low interest rates and tax benefits wouldn't it be better keeping the low interest condo loan and invest the cash at a higher rate?
I like Dave Ramsey but the caller is clearly somewhat good with his finances. So I'd ask, how much interest is he paying on the mortgage? That percentage will determine the next step. If the percentage is rather low (1-3.5%), he may be better off not paying off the mortgage and investing the money in an index fund making around 7% annual returns. If he has to pay 4% annually on a mortgage but he earns 7% in annual returns, that is a profit of 3% if he kept the mortgage payments ongoing and didn't pay it off.
MRAROCKERDUDE I invested while paying my house off. But when I paid my house off it was one of the best financial things I have ever done. It freed up a lot of monthly cash and being 100% debt free feels amazing.
@Sponge Bob Correct, but the Baby Steps are one-size-fits-all. I'd say the Baby Steps will work for a good chunk of the population. But you can't deny there are a better financially literate minority that shouldn't use the one-size-fits-all approach if it's better for them not to.
@Sponge Bob The key there is "pretty much". There are those who don't fit the bell curve. I, for example, use credit cards. Personally I find cash worse than credit cards for keeping on top of spending because with cash, I can't keep track of it, but I look at my credit card numbers daily and I'm super frugal. Plus, here in the UK, you get section 75 protection which effectively makes the credit card company as liable as the retailer for product/service issues. The principles will help most people but the key there is most. Finances are inherently personal and specific to your circumstances. Advice can't always be painted with a broad brush.
I was curious too. what do you do for a living? And I am sure your car is paid off now. Did you start putting the 15% in to retirement? I paid off my house and boy is the money starting to stack up. I make considerably less than you (I make 42 base pay 48k-50k after overtime and up to 60k after bonuses) but paying down the house does wonders man. I am 26 and hope to get to your income level.
+thecreoleson I put money into my retirement accounts gradually and intermittently as an adult. When I went back to school, I wasn't contributing anything. But now I'm contributing about 20%+ of my income plus company matching. Any raises I've been getting over the years I put towards savings.
There is a saying that money has wings so it's best you save it properly, invest it wisely and spend it judiciously. For me investing it wisely is the only profitable option of the three.
Investing on the other hand is simply the science of money making more money for you but know that it's one thing to invest and another to invest rightly. It's TRUE many do not have the required knowledge needed to change that fact but one change you can implement at the moment is to choose to start investing wisley
I dont know if you're like some of us who wish they started invetsing early in life? Well I certainly do wish I started earlier. I didn't start invetsing until my early 30's and while I'm glad to be where I am there are certain thing I wish the younger me had known.
Let no one deceive you all form of investment involve some degree of risk. The reward for taking on this risk is the potential for a greater investment return. If you have a financial goal with a long time horizon you are bound to make more money.
This guy is surviving on $92,000 a year, a fully paid car in 3 months, $200,000 in savings, and $65,000 in the bank that is sitting there and making him lose sleep at night. HaRd kNoCk LiFe! 👊🏻
@@gibusdrop8042 in San Francisco it's rubbish. But in most places outside of the most expensive cities (SF, NYC, Boston, ...), it's really good. It's something like 50% over average I think.
Although he's financially in great shape at 41. This isn't something I want to end up when I'm at that time in age. My goal is become a multi-millionaire before 28-30. I can say that I'm getting there
sounds like you caller is living the life most men should. hopefully he is smart and gets a prenuptial agree if he ever gets married. sad to see a man build his life up only to have someone take more than half resources.
I've heard they aren't worth the paper they are printed on. They can even get half of your 401k! The way I see it, if you are getting older, past the age where it would be fair to children to have them, then don't bother getting married. I mean, who wants to be 10 years old and have a 55+ year old father? If you are 45ish + and still no kids I'd say in all fairness that boat has sailed, not worth trying to swim after it. I don't make the money this guy does (60K year) and I was wasteful in spending most of my life, but was blessed with an employer that matched in 401K, up to 317K in that right now. Only 10K in savings but no mortgage. Now I'm starting to throw more into the 401K and I keep some savings going into that emergency fund, shooting for 20K for that then I will start investing on my own. I sure don't won't some woman to come along and totally derail me. At 46 I don't have time to really recover from that, if I keep up the good work of the last few years I should retire well :) (I find that it was easier to become disciplined with money when I could see the "finish line" in sight, wish I had started earlier but when you see about 250K in the 401K you start to think wow, quarter million, and it's starting to make nice interest, perhaps I should nudge that along.....)
@@randysmith2205 The right person? Define the right person please. I know that we fall in love with the right persons & breakup with the wrong ones, they are ALWAYS not the "right" ones only in hindsight. Don't be fooled, stay away from that thing called marriage, men benefit nothing from it.
I like Dave's advice except to pay off your car which is a depreciating asset. Why pay off your transportation cost especially if you have a super low apr%. You still need auto insurance at full coverage especially if you have money in the bank. Why not just pay your car down to its current value instead and put your money somewhere else where it can make more money. Though that's my take and yes I attended the classes.
I agree with everything except the initial $30k into a regular savings account. Put $30k into a high yield savings account at say 0.50% and let it grow and grow.
@@crash1364 Because a CD usually takes a year to "mature" and only after that can you use the money... The initial 30k is for an emergency fund and that money needs to be accessible at a moment's notice.
This dude will be like Buy a car outright and live off Kraft Mac and Cheese till your 65 and about to die from the toxic shit you ate for 30 years straight…
heres what im struggling with. i dont make much but im always hustling if i have some extra money i buy cars at auctions and flip them i dont have my house payed off but if i take the extra money i have and throw it in my house wouldnt it be better if i invested my extra money and made more to put more towards my house?
could be a good idea, but investing is difficult and sometimes money can be lost. make sure you're not investing without getting financial advice first
Yeah I agree, you can go wrong with investing but you can never go wrong with paying off your debt. What makes it difficult is that it isn't exciting or sexy to pay off debt, we get pleasure out of taking chances with a business' or different investments and see how they do. We get enjoyment now out of the things we buy now and pay later. We are willing to work a little harder for a business we own seeing something built up also adds value to life even though it doesn't always make rational sense. It is hard to argue with Dave's advice, but we are not always rational beings.
Tuf question. Over the last couple of years, with mortgage interest low and the stock market on a tear, you could make more money in the market than from paying down your mortgage early. Also keep in mind that stocks or stock funds are more liquid than real estate. You can't sell your front lawn if you unexpectedly need to raise some cash. I like the idea of re-financing a mortgage after a couple of years when the principal balance shows a significant reduction, without taking any cash out. That way you only pay interest on the new, lower loan, not the higher loan amount used originally when you first bought the house. The idea is to lower your monthly payments, and invest the savings. Also shop your homeowner's insurance or tweak the deductible to find ways to lower your monthly nut. Same goes for when the county tries to increase your property tax. File a dispute.
The most liberating, wonderful, magnificent feeling I have ever felt is the day I became debt free. I had always dreamed about it when I was deep in debt but my dream became reality when it became my priority. Now, it’s amazing. I have so much cash. I can can now donate to the charity of my choice and have plenty of money to spend!!!
I'm not an investment advisor, but IF I could advise you, I'd say no for the emergency fund. That should be immediately available. Metals might make sense for additional savings as a hedge against (the almost certain) dollar devaluation. Be advised though, metals are best used as long-term hold assets, typically for generational wealth transfer.
Great saver but doesn’t know he should pay off his car (Honda Civic) when he has an EXTRA $65k in the bank??🤦🏼♀️ He should have had no car payments for a long time or EVER. Basic.
Make sure to hit the subscribe button and thanks for watching! ruclips.net/user/DaveRamseyShow
Lol
Too slow for me
Help me please i'm sick help me help you god i need you to bless god in your health help me this account number if you want to help me 003280000002022
@@issacisaac8727 Yeah me too. Just leave it in the bank. It's not really money any ways
As a constitutionalist in a lover of the country you buy gold you offer payment and gold and silver and especially you give a child a silver coin when you recognize and understand what the Boomers have done since the sixties
Men are becoming woke to not get married and have kids
Ramsey rarely takes calls of people who are doing well. Most callers are in total financial disaster and need help. Nice to hear an inspiring story.
True,,he's for the low hanging fruit people....most smart folk, dont listen to Dave;s advice...
Wow. This guy is doing a great job with his finances
+JacobslifeinVegas Funny how a single, smart, successful guy with no kids ends up on a path to being wealthy. Makes you wonder what happens to the rest of us.
I know what happened to me-I took out over $100,000 in student loans. I've paid off almost 40 of it in three years. I'm very much a natural saver, so having all of this debt is very frustrating for me because I know I would be way further ahead financially without it
+JacobslifeinVegas did you finance a new car aswell.
I hear ya Jacob. Mine was 54K in student loans. Almost done...
# please
By creating wealth entails establishing positive routines, such as consistently setting aside funds at regular intervals for sound investments. Financial management is a vital subject that many avoid, often leading to future regrets.
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time
Yes you're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
Indeed that does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this consultant?
Sonya Lee Mitchell maintains an online presence. Just run a simple search for her name online.
Just checked Google up out of curiosity and I must say I am impressed by her Credentials. I emailed her already, waiting on her response.
I was really down with cancer and could not continue working , instead of leaving my money in bank I paid my bills and invested the rest in stocks and today I'm enjoying my dividends
How do you go about it, do you invest your self or you got some one who does it for you?
@@robertwildlife yea , Mack Daron Wilson is my broker for now , look him up he should be of help
@@kelvinpete7504 ok seen impressive
Good luck to you !
Currently 23 working a basic retail job. Almost 2 years in and I’ve got 15K saved. Looking for the next step.
IntermediateGamer how awesome is that! Great stuff. I wish I had the same mindset as you when I was 23 but wishing the both of us a great financial future :)
Arielle B Same to you! 👍🏼
I'm 29 I have 50k saved
Mucleboy01 i’m 21 and have 42k saved. I think i’ll catch up to you quick:)
@@cestlavieeee I doubt it I just started short period of time sir I changed careers
i dont understand how you dont have millions of subscribers. everything on your channel is a great lesson on how to be wealthy.
Chris, thanks for subscribing and watching! Share our videos with everyone you know and we can get to millions of subscribers.
It requires work and sacrifice, most aren't even willing to try to implement at least one of those.
Exactly, it's no different than exercise. Everyone wants the results but few work for it.
Chris Murphy he's broke
I'm guessing because other people are exposed to Mr.Ramsey via radio, That's how I came across his awesome energy...
He is on the right path. Love how Dave helped him on the fly ...master of the financial process.
This guy is the kind of examples we need in the world today..
No wife no kids, no contribution to society. We need people like him to do those things. And still be financially stable. Like me ;) baby on the way but debt free! We need smart people to have kids not idiots.
Apparently the only way to contribute to society is to have kids, according to you?
Rick Edwards where is the correlation between not having kids and not doing anything in society?
@@dreamingofskyrim Yes, we need smart people to have kids. That doesn’t mean the childless are not contributing to society. In fact, they’re unfairly forced to pay too much tax, and will not have kids to help them when they become feeble. Govt they’ve been paying for won’t care for them.
I give Dave credit where I think he's earned it, but I also don't hesitate to be critical when I think he's earned that. That said, this is possibly the most useful video on his RUclips channel I have ever watched. It was very helpful to me.
Inspiring. I'm 26, only debt is student loans (55k)..by the time I'm 30 I want to be debt free and on my way to wealth! In Jesus name!
+Kenny KBDubT Telsee 55k loan just to go school... what is wrong with this society and era??
+Kevin o'doherty it's backwards bro
Kevin o'doherty school cost a lot more these days
Im 30 and I am 100% debt free. Keep pushing! Once there shoot for 401k or roth ira, then go for 20% of income in savings. Then look to be generous. Help people, give back, etc
Kenny Telsee bet you regret going to college
I can understand people being bearish with these conditions. However, it is not reasonable for most people to sit on the sidelines while your cash position debases by 10% or more per year..What is the best way for me to avoid inflation eating up my cash reserve of about 250k while investing it?
Don't be in a hurry to get in. The economy needs several weeks of strong performance to signal that the downturn might be over; i think It's a time to be largely, if not entirely, in cash
Inflation gives the illusion of growth. Investors should exercise caution with their exposure and exercise caution these period. See a market strategist with experience if you are unable to manage these market conditions.
@@velayuthman Agreed, opting for financial advise is the best way to go about the market right now. I average 5 figures/month in dividends, but my overall ROI just hit 85%. I only have 30 or so stocks (20%) of my portfolio with more of my investments in digital assets..
I've experimented with a few over the past years, but I've stuck with the popularly ‘’Kristin Amber Landis” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Scam.
Summary:
1. $1000 saved
2. Debt free (other than mortgage)
3. Emergency fund (3-6m of expenses)
4. 15% of income saved for retirement
5. College fund for kids (if any)
6. Pay off house early
7. Be generous
Thank me later. 💹
Check out Bigger Pockets BRRR method, and you can thank ME later, lol.
Norsefalconer I will go to check it out right now :)
Garfield Ross Copied 😁
Garfield Ross thanks
Thank you now!
The baby steps were made very clear by this real-life example that Dave explained so well. This caller is rockin' it!
I have so much respect for dave Ramsey, I did not attend fpu but got inspiration from listening to the show and bought his book me and my wife did the debt snowball I am sitting in my paid off house writing this. Thank you dave
This gave me all the hope and reason I needed. Realistic, Logical and Applicable !
Man why haven't I been listening to Dave long time ago ?
Thank you Michael fro NY and Thank you Dave !
I was brought up with the teaching of>> Don't buy ANYTHING that you can NOT pay for IN FULL with cash in the next 30 days.. I have lived my life with this teaching.. It is all the have to have toys and the credit card payments that have destroyed so many families and lives.. God laid out His plan for you in His word. He will give you EVERYTHING you need to have a godly life.. Be in the world but NOT OF THE WORLD..
Debt free is the best feeling
There is no other way for me.
Excellent advise I have applied all my life and today I'm retired happy and Giving. Thank God.
Getting married, having kids then getting divorced will destroy it all.
Sad but true
How much would a prenup help?
Amen.
LOL.
lifeisgood070 Prenups aren’t worth the paper they’re written on. The more assets you have the greater the incentive to challenge it.
I like step seven. Be generous. If you’re in the position, giving dollars to your charities or family before you die is really fulfilling. Keeps the grandkids coming back 😊
I have so much thanks to give Dave Ramsey from seriously helping me out several years back. I listened to him faithfully on the radio and believe it or not - paid off all debts AND my home. It's doable believe me.
Charles H congratulations! I'm still young and new to this, so I'm glad to hear that this is really a feasible process!
You rock!
My wife and I did the same.
Thank you for sharing your knowledge with your viewers! I have two questions that I am sure you have explained elsewhere but I have not heard.
1. Why not invest the emergency funds rather than save it? It can be accessible in a few days to cover rent and living expenses if needed?
2. Why pay off a 3% home loan off early rather than investing the extra payment for a 7% to 20% return?
Take care.
I'm 34 yrs old. I am definitely a saver, invested in some mutual stocks with High yielding dividends and living below my means and still wanting to learn more about finances. Listening to this guy
What do you recommend for someone who's new trying to invest in stocks? All I know investing can be a risk with losing money then to top it off have to pay a advisor to invest for you.
south
Don't give until you are wealthy and successful. For me it is 150k+ annual income, owned home, two rental properties, two owned cars, 500k networth.
what do you do for a living ?
This is my fifth year since retirement. but this isn’t really how hard I expected things to be. I still have about $460,000 of debt in my IRA to invest in stocks. How can I use the market turnaround?
Now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
Many people downplay the role of financial advisors until they are burned by their own emotions. I needed a good boost to help my business stay afloat. So I searched for fiduciary financial advisors and found someone with due diligence who did a great job of helping me grow my savings from $275,000 to $850,000 so far.
This is really nice. I worry that I have a couple more years before retirement, and I want to switch to using a financial advisor, I could really use the expertise of this advisor
I started out with a Financial Adviser called "Jill Marie Carroll". Her honest approach gives me complete ownership and control of my position, and her rates are incredibly affordable given my ROI. However, do your due diligence before contacting a financial advisor.
I just googled her name and I'm really impressed with her credentials; I reached out to her via her webiste since I need all the assistance I can get.
I love this guy. Pretty much no debt 65k saved home owner, maxing out retirement fund, no wife/ kids bleeding out his pockets
I recently sold an apartment in Springfield and now have about $250K in cash. I was advised to invest in stocks but I'm new to investing, as I've always preferred to play it safe with cash, but I'm now ready to take a little risk. What are the best strategies for long-term investments for retirement?
While the stock market is promising and can give good ROI, expert guidance is essential for effective portfolio management so you don't get burnt out in the market as it is very volatile.
My dear husband passed away in 2021, and I have around $400K from his life insurance just sitting in a bank account, earning nothing. I was advised to invest it through an advisor, and in just six months, I achieved over 80% capital growth, not including dividends. Highly recommended!
Pls how can i meet this advis0r? i want someone to help me invest my divorce settlement, It's just being laying around in the bank without appreciating much
Thank you for the lead. I searched her site up and filled the form. I'm just waiting for her response as I look forward to working with her to invest my cash savings of $80K.
Thank you for the lead. I searched her site up and filled the form. I hope she gets back to me soon.
Key to financial success, stay Single and have No Kids
amen to that
Alumnikiid lets say you become a millionaire one day but alone and. No kids
Wat would u do wit ur hard earned money ?????
Travel and do anything I want to, whenever and with whomever. Just because you don't have kids doesn't mean your alone. This isn't 1970 anymore.
Alumnikiid, then what are you living for?
Theres PLENTY of things to live for other than kids, your just brainwashed into thinking there isn't buddy. When divorce rate is over 60%, go ahead and risk your financial freedom pal!! hahaha
I am always impressed at the way all his callers have numeric knowledge of their own finances off the top of their heads. If you asked me those questions I would need time to look them up.
I need to make this money work for me, and not just disappear over time. I've been scrambling for somewhere to put the money, where I can make an effort to use the gains to pay bills so I can quit my job or should force early retirement. All roads have pointed to the financial market of some sort which is a good idea buh where else should I put money besides the financial market? We have a 13% RPI rate so cash is tough.
Yep great question and that’s always the one - where would you rather be if you have an option. Personally I’m always invested aside from a small emergency fund. Financial-market for me seem the only way forward with my long time horizon (accrued almost $1.4m in gains since 2020 ) but if you don’t have that fortune of time it’s a tough market out there almost nowhere feels safe! . Just know the risk you're comfortable with . Mistake is expensive
I fully agree; I’ve got approximately 1.2 million in outside retirement funds, no debt, and very few dollars in retirement funds in comparison to my portfolio balance over the last three years. To be honest, the financial advisor's role can only be ignored, not dismissed. Therefore do your research to get a reputable one.
A million dollars in profit is a fantastic achievement; how can I contact this advisør of yours?
The fiduciary that guides me is “Sonya Lee Mitchell” most likely the internet is where to find her basic info, you can run a quick research with her name. She's established...
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
This is great, I really needed to hear it. I'm doing well but it's helpful to go over the steps again. I had probably gotten a bit too comfortable, maybe even lazy, but now I see how I can recalculate my rainy day fund and attack my mortgage more aggressively.
These steps work for real
Grown savings 83% over the past year
Any additional information? I have 56k lying in my bank without generating interest
Seek a bit of diversity, do something different
@@jianglitsui3698 Tremendous growth, how did you achieve this ?
I put some of the residual income into Cryptocurrency, that’s the future
This inspired me, I am not 41 but I am 33years old with teen children. Have my beautiful 500k house and I max out my Roth, along with fluid savings. Hearing this guy I feel I will retire young and a 3million millionaire 🤑 came here to get inspired. Long before this guy's age my kids will be in their 20s and I will have my house payed off. God is good ya'll, God is Good
Dave, you are good human being. You help people. I am glad that I stumbled upon your videos. I have learnt a lot, and I actually finished all the baby steps you are talking about and you made me a very confident and happy man. Thanks A zillion Dave, I pray God gives a long life so that you could more people !! Have a blessed day buddy !!
Started Dave Ramsey program about 14-years ago. Own Home not had a house payment in 11- years. No debt, three kids. Two went to college both have all college loans paid off. (Proud of them I bought them Complete Money Makeover books for Christmas one year.). I paid for 1/2 of their college. Third child is still deciding what she wants to do. Wife stayed home and raised kids did daycare and is now back in workplace. Have a good chunk saved for retirement already as I started when I graduated from College. I am 59- years old. Listen to Dave it can be done, just have to set goals and have priorities. Also not like I'm a tightwad and never spend money or go on trips. Just reasonable about it. Good luck! All it really takes is goals and a plan to get there. It is still true today, despite what negative people tell you.
Probably my fav Dave Ramsey video... I love how he runs through all the baby steps. I bet he’s got his condo paid off by now
Dave: always enjoy your videos. There’s something about you that is charismatic. Other people, though younger and better looking, just don’t have what it takes to keep me interested.
Funny how people say "don't get married" are only saying that because they can't hold a relationship or make poor dating choices.
I'm married and my Financials have grown tremendously with help from the spouse.
@@2busywinning I'm a dude you idiot. I work as she works, double the income My wife don't spend like yours do.
You must have relationship problems if you think all women like to spend money.
It’s a financial decision. People also say don’t start a business after theirs has gone south.
I think what’s important is propoerly evaluating the financial decision.
If you jump into marriage without vetting your partner or understanding relationships, you’re going to be about as successful as someone who starts a business without knowing the industry
Sixty-five grand in a bank and a $540/mo car payment? My mind boggles at that kind of thinking.
My bet is that he put $10k down on a 36 month term. That wouldn't be too surprising
ugh... thank god he's 41. I got depressed... I'm just starting to save
I started to panic too. hehehehe
Keep it up buddy. Paying off all debts is key. Even more important though, is not worrying about what people think about your car or your living quarters at first.
jason! Or you should just do what my dad did on his min wage job. Use home equity to start buying more houses and build up an empire.
That's nothing I have 50k in my bank account and 29 but also no kids or wife I'm good on dat
True, thought he was going to say 25 or something. I would have been so ashamed.
My older sisters did a Dave Ramsey course when they were in their teens. They taught me (I was 11) how to manage my money. I started my emergency fund with $50 and slowly worked my way up to more than $500 in no time. The key is to NOT recklessly spend. All my peers were spending money on useless clothes and makeup and Starbucks drinks. I also sculpt as a hobby and save money I make off of commissions. I'm so thankful I learned about this early on. I'm going to college soon and am excited at the idea of no debt! I'm also excited to teach my future kids the same things I have. It's doable.
Insightful video. I just want to know best how people split their pay, how much of it goes into savings, spendings or investments. I'm 27, and earn nothing less $150k per year, but nothing to show for it yet.
When people have money, they spend it. And some people spend more money when they have more of it. If you want to improve your financial management, you should consult with a financial advisor.
@@devereauxjnr That's right, you can avoid the traps of lifestyle inflation by consulting an expert advisor to help you plan for your short- and long-term goals; it all comes down to proper guidance. Over the past two years and six months, I have seen my income build wealth and now have a fully paid off house and at least $650,000 in stocks. All this is the result of subsequent investments with my savings and the application of expert advice.
@@Veteran2002 Nice, who is the Financial Advisor aiding you if this is not much i'm asking? my retirement plans are going down the drain with my 401k particularly losing everything it gained ever since 2021.
@@OttoLane-j9z credits to NICOLE DESIREE SIMON, one of the best portfolio manager;s out there. she;s well known, you should look her up
@@Veteran2002 Thanks for the info, i found her website and sent a message hopefully she replies soon.
This is inspiring for me. I’m 24, no debt, no kids, no wife. And I’ve got $33,000 to my name. I’m gonna be where he is by the time I’m 30!
Providing life doesnt knock you out by then or put you in a whole different situation. Its good to plan ,but be always prepared for the unforeseen.
Ahmed Abdirahman I mean yeah but that goes for anything.
Well done.
Keep doing your thing.
Stay strong and stay blessed!
this guy is almost _exactly_ like me (same age, similar amount in the bank, same balance on the mortgage on 3 bedroom house), but I have a wife at home with 3 kids, we own our car outright, and I earn less. We rock!
Yes you do... Until the kids get sick, the car breaks, and the wife wants a divorce. But enjoy today
solomon Bc thank you pessimistic person
Im younger, cars paid off, 2 of 3 homes paid off. 401k rocking, 401k roth rocking, savings in bank is x2 my salary. My small ranch paid off. No credit cards, college paid off. Im 34. We rock.
Jorge Serna what do you do for a living?
P.O. M.E How is not giving being greedy??
The moral of this story is don't get married and don't procreate. Lmao.
CA C unfortunately you’re so right 👏
💯 lol
You should only have kids if you are debt free and making over 100k annually in total household income imo.
I know people who have kids because they get money for having them $760 the get per child than payments stop at age 3 so they keep having more kids with other guys. lucky I on the other hand single car paid of and paying of my first home it be paid by time i reach 50 years old only 30 years away.
Facts
Keeping money in the bank is setting yourself up for devaluation from inflation. My thinking about money has drastically changed lately, especially since I understand how to make profits from the stock market, and I started with only $60k. I'm still not making enough profit as I would though, but I don't know how to navigate from here.
I don't know what your profits are, but you are probably making what every other average investor is making and that is okay. The people who make those crazy profits you hear about are either professionals or people who invest with financial advisors. I'm talking about five figure monthly dividend checks.
I agree. There's a lot of potential in the market. My friend introduced me to a financial advisor in 2021, and even though I was skeptical, I went on. I finally was making enough monthly dividend to quit my soulless job and pursue my dream to start a restaurant in New Jersey.
That's really great. I've tried doing some research myself to hire a financial advisor, but it's really overwhelming. Could you recommend who you work with please?
I'm hesitant to make recommendations like this online so I can't drop her contact here, but you could look her up yourself and contact her if you wish. Her name is *Sharon Lynne Hart.* You can find details on how to reach her from her website.
Sharon Lynne Hart is the advisor I work with. Just research her name and you'll find necessary details to work with a correspondent to set up an appointment.
I genuinely mean it when I express my stress and concern regarding the market crash and high inflation, particularly in relation to my retirement. I have been experiencing losses for quite some time, and while some may argue that crises can present opportunities, I am feeling overwhelmed. However, I understand that investing is a long-term endeavor, and it is crucial to maintain focus on the bigger picture and the long run.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
how do I get in touch with this consultant that assist?
STEPHANIE KOPP MEEKS, that's whom i work with look her up and thank me later.....
Thanks for the info . Found her website and it really impressive
My brother is 43 and has not held a job since college. He moves from older rich woman to woman. Spends his days at the gym and planning their next vacation.
This is the episode I needed. Numbers and situation is closer to mine. Well in the way to being a millionaire sounds nice
I was like wow. Hows this guy doing so good with money? Then I heard him tell the answer. I'm not married and no kids. Bingo! But let it be known the wife and kids are more valuable than 30mil in the bank
I understand the benefit of dollar cost averaging, but with stocks so expensive I am patiently waiting for a correction.
I like the ‘outrageously generous ‘ comment. I can afford it, so I do like to give money to good causes and very appreciative family members. I’ve been happily doing that for years 😁
This guy is killing it.
THIS VIDEO IS FANTASTIC!!!!
This guy is great, some sage advice everyone needs to hear.
$540 on a civic per month?!
hopefully its not a 5 year loan.....
As far as buying a new vehicle or even financing one, he has really made me think to never do it
Everyone is hitting on the fact that the caller has no kids. But did you hear his actual response when Dave asked if he had kids?
"No, I'm not married." That shows he's also responsible enough to not run around and procreate children he has no intention of financially supporting, no "baby mommas" he refuses to commit to etc. Sounds like a stand up guy!
Good morning I am 69 battling ovarian cancer due to talc powder so far I am winning that battle..I still make home mortgages and will be done in 8 years I work part time as a notary and 2 days a week in a pet shop for my sanity don’t like sitting around the house I have 20,000. In a cd saving because my car is 2002 years old and will need to replace soon not with a new model ..and I have 8,000.00 safety money I am a bit perplexed about if I should even get a 3 years old old car considering my precarious health ? Yhank you in advance for your help oh by the way I am in the big law suit concerning this talc powder. But likely won’t be around to collect ..
Put that extra money to work !
Exactly, it should earn dividends not just sit in the banks for the institutions to utilize
In my opinion the best option is to build multiple self sufficient income streams with the money
Chill, man has no kids
It also depends on level of income
Man. I need to get my act together. Why do we not learn this is school?!
Keeping a 20-30k emergency fund in a standards savings account seems like a huge waste. Instead of making ~0.05% interest, you could put it in a money market and make ~0.25%, and have the exact same liquidity.
Even better, you could put it in a ~3 year CD and get 3% interest! You just have to make sure that the early withdrawal penalty is reasonable. At my local credit union, the penalty is 90 days worth of interest, which comes out to about $100. I earn $500 a year on the interest, though, so that would more than pay for itself in the unlikely even that I ever make an early withdrawal.
One other thing I forgot to mention was that sometimes there's a difference between the minimum balance between a savings account and a money market. That won't matter for someone with 20k in savings, but it would for someone with $1000.
That's another area with a local credit union will probably serve you much better than a national corporate bank will; my credit union doesn't have a minimum balance for either type of account.
Ian Dunn or put into a high yield savings account at 2% interest so you are easily liquid
Yeah I ain't seen a 3% CD, but there are lots of 2% HY savings accounts.
One small thing about high-yield savings accounts is they usually have monthly deposit limits, like $1k max, and maybe not FDIC insured. But they're liquid and basically keep up with inflation.
Either way, a fully funded emergency fund's interest earned is only gonna be what like $500 per year tops? Doesn't make much difference, the important thing is that it's quickly accessible.
@@JiisTube 3% was standard a few years ago when I set mine up, but you're right that it's much lower today. It'll go back up, though.
$500 per year is not nothing to me, especially when it compounds every year.
I've looked at Capitol One's HY accounts, and they are appealing, but I couldn't justify it morally, since their business is built on tricking people into debt. Maybe there are more ethical companies out there though, I haven't looked.
if you have a 30 year conventional with 20% down. reasons to not pay it down.
-tough to get equity out
-inflation, payment will stay same (besides property tax) the life of the loan.
-mortgage interest is tax deductible
- cash to pay mortgage payments in the event of a job loss or recession.
- grow the extra in a taxable account like etrade.
The actual morale of the story rather than selfish one, “never get married and be selfish and bitter for the rest of your life,” Is to focus on yourself first, financially, physically, and mentally. Once you complete that, you’ll love yourself with no financial burdens and you’d know your worth. Then when you complete yourself, then you can find a like minded person with the same goals and dreams. Many people forget is that one of the most major causes for divorce is money. Get that under control for yourself, find someone else who is financially and mentally stable, then everything would fall in place.
Look at Dave Ramsey and his wife, they’ve been together even after his financial flop, also with multi-millionaire Dan Lok. To conclude my point, getting rich for selfish reasons is not going fulfill anything developing yourself and finding someone to share it with, and passing those traits on I.e. your children. That’s how you can make the world a better place.
That doesn't work for women.
Just listening to this guy saving gives me motivation to get on a plan
i wouldn't pay off the condo, if you get a rate of around 3% APY on the mortgage imo it's better to invest in say something like the SPX with and avg return of around 9.7%.
That's what I'm doing....:)
nubserver well if he puts 35k down on the balance the monthly payment does not change correct? So I would do a money market at 3 percent until it’s at full mortgage balance.
After hearing his finances I knew he was single. Before I had a family I saved, after family it’s so much harder.
Agree with Dave on most things, but his pension to early pay off super-low interest mortgages as opposed to wisely investing is misguided. You can't convince me it's a better financial decision to put the $30,000 toward a 3% mortgage as opposed to investing with returns many fold greater.
+ 1 (4 0 6 ) - 2-2 1 -1 2 8 6
I was sitting here thinking I was tripping because I felt the same.
I just made a reply to that very same point. Considering the age, hopefully there would be some thought given to this today. There is no reason to pay off that mortgage if it is a low interest rate loan.
agreed -- maybe the arguement could be made for people very close to retirement age but for young or middle-aged people I agree it makes no sense.
Throwing his extra cash at paying his mortgage down early is poor advice if his goal is to generate wealth. He'd be a lot better off investing that money and earning a higher return than the interest rate on his mortgage.
+James Duncan He is already generating wealth in his retirement savings. The sooner the condo is payed off, the more free cash flow he will have each month to invest if he feels like he needs to do more. Having the security of a payed off place to live is a good return for his money.
If u think of it investing when u have a mortgage is counter productive.Ur asking for interest on ur money while paying interest to the mortage. A $150,000 mortgage over 30 years with 3.92 interest = $255,320, If he pays it of in 10 years he saves $70,000 in interest
you are clueless if you don't realize how much money he will save in interest. That is saving wealth.
Hmm...pay off the 150K that he's paying less than 4% interest on or invest 150K and make 8%+....tough call.
it math, let say he owns 100k on the condo, at 3 percent intrest, if he had a 100k in cash in invest it, if he made dave 12 percent that would be better, 12 - taxes (.25)= 9.5 -3 percent= 6.5 percent that is a extra 6500 a year. what if he only made 8 percent now it only a extra 2k a year but if he make less then 7 percent after tax and the 3 percent he paying on his condo he lose money that year, plus I am assumeing he has a 3 percent loan, it might be 4 or even 5. so depending on his LOAN intrest rate, and taxes he would pay on money earn form stock plus what he would earn dave 12 percent what most people say 8 to 11, or 4 to 8 percent decide if it a good idea or bad idea,
"survive" on 5k/ mo SMH
+JasonfromMinnesota IKR..
+JasonfromMinnesota Remember he lives in New York
+JasonfromMinnesota At that level of income, taxes are roughly 30%, his 401k is 15%. I'm going to guess his living expenses at 20%. So 5,000 - (5,000 * .65) = $1,750 give or take at the end of each month.
Daryl A we always forget about taxes
but he have the money in the bank, so why would he be taxed on the 5000 again?
This caller is a legend
"Don't get married & don't have kids.".
Works for me...
I agree! I'm 40y/o and have about $600k saved up. Looking to buy my first home (~$450k - in California) and pay it off, mortgage free), and still have a sized "nest egg" to sit on and feel comfortable with it. My life is and will be debt free 👍
@@anthonyn.3575 And you've contributed nothing to society. You have no children. The foreigners will outbreed us due to people like you.
Yeah, women are really expensive!
Especially these days. I wouldn't have children today. Too much going on and high cost of living
some people shouldnt reproduce.
he is a bank mediator. and from ny ny. says it ALL right there. WOLF
Omg, I’m just not knowing about investments in my 40s... Gotta get my money in fast for an investment. Great vid.
Get cracking.
My car interest is 3.9 %. I prefer above car payment to invest in S&P 500
Not married, no kids = amazing financial health!! haha
100%
Facts! I find even my son to be less expensive than the old lady was. They seem to always want to go out and blow money.
@@vapeking466
PREACH!
It’s me👌🏾👌🏾👌🏾
= no life
I don't really understand why you'd put the extra cash toward the condo loan? With the low interest rates and tax benefits wouldn't it be better keeping the low interest condo loan and invest the cash at a higher rate?
I like Dave Ramsey but the caller is clearly somewhat good with his finances. So I'd ask, how much interest is he paying on the mortgage? That percentage will determine the next step. If the percentage is rather low (1-3.5%), he may be better off not paying off the mortgage and investing the money in an index fund making around 7% annual returns. If he has to pay 4% annually on a mortgage but he earns 7% in annual returns, that is a profit of 3% if he kept the mortgage payments ongoing and didn't pay it off.
That's exactly what I'm doing!!!! :)
MRAROCKERDUDE I invested while paying my house off. But when I paid my house off it was one of the best financial things I have ever done. It freed up a lot of monthly cash and being 100% debt free feels amazing.
Michael Lambert
Do you have to invest the same amount as your total mortgage
@Sponge Bob Correct, but the Baby Steps are one-size-fits-all. I'd say the Baby Steps will work for a good chunk of the population. But you can't deny there are a better financially literate minority that shouldn't use the one-size-fits-all approach if it's better for them not to.
@Sponge Bob The key there is "pretty much". There are those who don't fit the bell curve. I, for example, use credit cards. Personally I find cash worse than credit cards for keeping on top of spending because with cash, I can't keep track of it, but I look at my credit card numbers daily and I'm super frugal. Plus, here in the UK, you get section 75 protection which effectively makes the credit card company as liable as the retailer for product/service issues.
The principles will help most people but the key there is most. Finances are inherently personal and specific to your circumstances. Advice can't always be painted with a broad brush.
Mandatory viewing for young adults...for everyone! Well done!
Although 3:42 serves Michael well, let's keep in mind that he's (very) disciplined. Keep it up.
it is quite basic....I have done a lot of this, and now am reaping, what I had sown....
this guy is awesome
+Michael Lambert just out of curiosity, did you end up doing what Ramsey said to do? is a lot of money to get rid at a time.
Michael Lambert glad to hear! Good luck!
I was curious too. what do you do for a living? And I am sure your car is paid off now. Did you start putting the 15% in to retirement? I paid off my house and boy is the money starting to stack up. I make considerably less than you (I make 42 base pay 48k-50k after overtime and up to 60k after bonuses) but paying down the house does wonders man. I am 26 and hope to get to your income level.
+thecreoleson Registered Nurse at a hospital....best decision I ever made was to switch my career path and do this.
+thecreoleson I put money into my retirement accounts gradually and intermittently as an adult. When I went back to school, I wasn't contributing anything. But now I'm contributing about 20%+ of my income plus company matching. Any raises I've been getting over the years I put towards savings.
For 8% return he could be collecting $400 a month, that's life-changing.
There is a saying that money has wings so it's best you save it properly, invest it wisely and spend it judiciously. For me investing it wisely is the only profitable option of the three.
Investing on the other hand is simply the science of money making more money for you but know that it's one thing to invest and another to invest rightly. It's TRUE many do not have the required knowledge needed to change that fact but one change you can implement at the moment is to choose to start investing wisley
I dont know if you're like some of us who wish they started invetsing early in life? Well I certainly do wish I started earlier. I didn't start invetsing until my early 30's and while I'm glad to be where I am there are certain thing I wish the younger me had known.
Ask anybody who has made it in the market they'll say the same thing. The earlier you start investing the better off you'll be.
Let no one deceive you all form of investment involve some degree of risk. The reward for taking on this risk is the potential for a greater investment return. If you have a financial goal with a long time horizon you are bound to make more money.
This risks are there because the market fluctuates and no one knows when it's going to rise or fall
Not heard of you before but your advice was spot on. 10/10
This guy is surviving on $92,000 a year, a fully paid car in 3 months, $200,000 in savings, and $65,000 in the bank that is sitting there and making him lose sleep at night.
HaRd kNoCk LiFe! 👊🏻
thats how u stay ahead of the game, having 265K in savings and still wanting better for yourself. More power to that man
Is 92k a lot or not? (European talking)
@@gibusdrop8042 in San Francisco it's rubbish. But in most places outside of the most expensive cities (SF, NYC, Boston, ...), it's really good. It's something like 50% over average I think.
@@MrTresto ok :)
@@gibusdrop8042 around 80k €
Although he's financially in great shape at 41. This isn't something I want to end up when I'm at that time in age. My goal is become a multi-millionaire before 28-30. I can say that I'm getting there
what are you doing to become a multi-millionaire ?
Any advice how to do that?
Props to this guy. I’m telling my gf tomorrow we ain’t having kids 😂😂😁
How"d that go ?!?!
Dude, single is the best. All your own time, 100% focus on your own goals. It's great.
@@Patriotsounds facts
Thank you Dave Ramsey for making these baby steps .
sounds like you caller is living the life most men should. hopefully he is smart and gets a prenuptial agree if he ever gets married. sad to see a man build his life up only to have someone take more than half resources.
I've heard they aren't worth the paper they are printed on. They can even get half of your 401k! The way I see it, if you are getting older, past the age where it would be fair to children to have them, then don't bother getting married. I mean, who wants to be 10 years old and have a 55+ year old father? If you are 45ish + and still no kids I'd say in all fairness that boat has sailed, not worth trying to swim after it.
I don't make the money this guy does (60K year) and I was wasteful in spending most of my life, but was blessed with an employer that matched in 401K, up to 317K in that right now. Only 10K in savings but no mortgage. Now I'm starting to throw more into the 401K and I keep some savings going into that emergency fund, shooting for 20K for that then I will start investing on my own. I sure don't won't some woman to come along and totally derail me. At 46 I don't have time to really recover from that, if I keep up the good work of the last few years I should retire well :) (I find that it was easier to become disciplined with money when I could see the "finish line" in sight, wish I had started earlier but when you see about 250K in the 401K you start to think wow, quarter million, and it's starting to make nice interest, perhaps I should nudge that along.....)
Getting half of things you did not help build up is not fair 100%
He shouldn't get married at all, keep pumping & dumping.
Prenuptials are ridiculous. Marry the right person and your good.
@@randysmith2205 The right person? Define the right person please. I know that we fall in love with the right persons & breakup with the wrong ones, they are ALWAYS not the "right" ones only in hindsight. Don't be fooled, stay away from that thing called marriage, men benefit nothing from it.
I like Dave's advice except to pay off your car which is a depreciating asset. Why pay off your transportation cost especially if you have a super low apr%. You still need auto insurance at full coverage especially if you have money in the bank. Why not just pay your car down to its current value instead and put your money somewhere else where it can make more money. Though that's my take and yes I attended the classes.
I agree with everything except the initial $30k into a regular savings account. Put $30k into a high yield savings account at say 0.50% and let it grow and grow.
Yea why not a cd
@@crash1364 Because a CD usually takes a year to "mature" and only after that can you use the money... The initial 30k is for an emergency fund and that money needs to be accessible at a moment's notice.
This dude will be like Buy a car outright and live off Kraft Mac and Cheese till your 65 and about to die from the toxic shit you ate for 30 years straight…
heres what im struggling with. i dont make much but im always hustling if i have some extra money i buy cars at auctions and flip them i dont have my house payed off but if i take the extra money i have and throw it in my house wouldnt it be better if i invested my extra money and made more to put more towards my house?
could be a good idea, but investing is difficult and sometimes money can be lost. make sure you're not investing without getting financial advice first
Yeah I agree, you can go wrong with investing but you can never go wrong with paying off your debt. What makes it difficult is that it isn't exciting or sexy to pay off debt, we get pleasure out of taking chances with a business' or different investments and see how they do. We get enjoyment now out of the things we buy now and pay later. We are willing to work a little harder for a business we own seeing something built up also adds value to life even though it doesn't always make rational sense. It is hard to argue with Dave's advice, but we are not always rational beings.
Tuf question. Over the last couple of years, with mortgage interest low and the stock market on a tear, you could make more money in the market than from paying down your mortgage early.
Also keep in mind that stocks or stock funds are more liquid than real estate. You can't sell your front lawn if you unexpectedly need to raise some cash.
I like the idea of re-financing a mortgage after a couple of years when the principal balance shows a significant reduction, without taking any cash out. That way you only pay interest on the new, lower loan, not the higher loan amount used originally when you first bought the house.
The idea is to lower your monthly payments, and invest the savings. Also shop your homeowner's insurance or tweak the deductible to find ways to lower your monthly nut. Same goes for when the county tries to increase your property tax. File a dispute.
The most liberating, wonderful, magnificent feeling I have ever felt is the day I became debt free. I had always dreamed about it when I was deep in debt but my dream became reality when it became my priority.
Now, it’s amazing. I have so much cash. I can can now donate to the charity of my choice and have plenty of money to spend!!!
Is it a good idea to make Gold as my emergency fund instead of cash in the bank?
I'm not an investment advisor, but IF I could advise you, I'd say no for the emergency fund. That should be immediately available. Metals might make sense for additional savings as a hedge against (the almost certain) dollar devaluation. Be advised though, metals are best used as long-term hold assets, typically for generational wealth transfer.
Another brutal question from a caller. Poor guy. Good luck with this one Dave lololol.
Great saver but doesn’t know he should pay off his car (Honda Civic) when he has an EXTRA $65k in the bank??🤦🏼♀️ He should have had no car payments for a long time or EVER. Basic.
This first callers got it good.