I Have A Lot of Debt and No Retirement!
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- Опубликовано: 5 окт 2024
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I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
I totally agree; I am 66 years old, recently retired, with approximately $1.2 million in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, I didn't do all this alone, but with the help of a financial advisor. Having one is currently the best way to trade in the stock market, especially for people nearing retirement.
@@mariaguerrero08Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.
'Gertrude Margaret Quinto' maintains an online presence. Just make a simple search for her name online.
Thanks, I just googled Gertrude and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million.
`This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $21k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
I can't say much but Sonya Lee Mitchell is the FA I work with you, you can do your due diligence as she's very much accessible to the public
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
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.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Donnafrank-k6e However, if you do not have access to a professional like Clementina Abate Russo, 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.
@@BrandonIvan-c6e Oh please I’d love that. Thanks!.
@@Donnafrank-k6e Clementina Abate Russo is her name.
Lookup with her name on the webpage.
Since watching this video I have really put the pedal to the floor on retirement savings this past year......set my automatic withdrawals for 2023 to max my 401k and ROTH IRA accounts. I make under $150k a year.....paid off our vehicle and my wife is babysitting 1 child from church which has helped me pull the trigger to max everything out.
Nobody knows anything, you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
The secret is to put money away every paycheck. He says 15% but I think you check out the budget for some extra. Put it into an SP index fund. Do not touch it. Just let it grow. If you are spending 10 hours a week worrying about it now,use that time for a hustle and tuck that away. Trying to work the market is a mugs game. It can be done by a few people but you don’t d sound like one. 10 years from now your index fund in your Roth IRA will be doing great. Or 401k.
@@Curbalnkif you stay out of debt, work & live below your means and diversify your investments--unless you catch some horrible disease/accident you'll be just fine.
It's the people who never start that rarely ever finish. 😢
Great job! I paid off my house in three years. I working a full extra job and putting all of that on there. I'm 54 with no house payment and it's absolutely awesome. Every time I would go to buy some thing I just said do I want this more than my house paid off and usually the answer was no!
Luckily, I work so hard at one of my jobs. I did get a huge payday after my house was paid off so I don't have to worry too much about retirement but the one thing I wish I could go back in time and do is start retirement earlier. So I think you're doing a wise decision!
They are in a better financial position than most Americans……
110k in savings making 90-100k a year Is very impressive imo
$110K in savings is losing $3-$5K of purchasing power per year, even with higher saving's rates.
I’m in my 20s making 40k and saving 10k a year, I would have 500k saved at 45 if I was making 100k a year. Not bad but not great
I like this guy. He will do well. He just needs the education on what to do with a plan. 🎉🎉 Hes teachable
investing requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myself May I ask which investments are good??>>>>>
Considering that I am only three years away from retirement, it becomes challenging for me to solely concentrate on the long-term perspective. Despite having invested in reputable companies and having a significant amount of funds allocated, my profits have been stagnant. This situation raises the question: Does the current recession and unstable market offer any calculated risk opportunities for generating profits?
I understand your concerns, my friend. I recommend exploring passive index fund investing and expanding your knowledge in this area. Personally, I experienced both successes and challenges when initially seeking a reliable passive income......,
how do I get in touch with this consultant that assist??>>>>
STEPHANIE KOPP MEEKS, that's whom i work with look her
Thanks for these recommendations.....,,,
In today's economy, assistance is critical if we are to survive. I was really hopeful about my investments this year but all my plans have been disoriented, I've been studying the stock market and I realized some investors made millions from the recent recession and I was wondering if such success rate could be achieved in this present market. Any recommendations?
Clearly the recommendation is switch all your savings to bitcoin. If you are stuck in a 401k or some regulated savings buy microstrategy, which is essentially a bitcoin purchase hidden as a stock.
I grew to a 7 figure well-diversified portfolio and still receiving about 30k in dividends. I only buy quality firms, anticipate to hold them regardless of what happens, pay up but not too much, keep track, sell only when necessary, and be ready to course correct. also ignore the forecasts and market views which are at best entertaining but completely useless. ever grateful to Trisha Jean Webb my F.A...
@@RandyPelletier checked for your FA and found her web page. she is very impressive , left a mail after going through her resume.
"Build Residual Income!" Ask how?
Nah. Buy and hold is eternal no matter what people claim is the "new" fad in speculation. But you're not a speculator, you're an _investor,_ and investors make money by buying productive assets (e.g. blue chip stocks, bonds, mutual funds, REITs) and ignoring the noise of the financial media. I'm 39 and made a cool million by investing in nothing sexier than index funds (401k/IRA) and blue chip stocks (IRA and taxable brokerage accounts) over the last 18 years.
People grappling with the difficulty of meeting essential expenses often encounter this situation due to inadequate savings during their working years. The decisions taken in readiness for retirement carry extensive consequences, as demonstrated within my own family dynamics. Differing investment approaches yielded disparate results. Guided by a financial advisor, I'm currently retired.
Indeed, that's accurate. I'm currently in my mid-50s. My wife and I were on a similar path until a couple of years ago when I decided to shift my investments to her wealth manager. While I haven't quite caught up to her accumulated profits over the years, I'm at least earning more now. I'm generating income even before retirement, and my retirement fund has experienced remarkable growth compared to what it would have with just the 401(k). It's quite amusing.
It's regrettable that many individuals lack access to such insights. I understand why people might become anxious. Insufficient information can indeed pose significant challenges. Personally, I've been able to generate over $25k passively simply by investing through an advisor, and the best part is, I don't need to exert much effort. Regardless of economic fluctuations, skilled wealth managers consistently deliver returns.
@@BiancaSherly-qt6sb Could you guide me on how to get in touch with your advisor? My funds are being eroded by inflation, and I'm seeking a more lucrative investment strategy to effectively utilize them.
Sure, the Financial advisor that guides me is *Mary Onita Wier* and she is renowned and has quite a following. So it shouldn't be a hassle finding her. Just look her up.
After conducting an online search of her name, her website quickly surfaced, piquing my curiosity. The initial impression is positive and I intend to arrange a call with her. I'll make sure to provide you with updates on how it goes. Thank you.
I'm struggling in this market. Stocks that I have held for months and made profits from are not behaving the way I'm used to so I’m quite indecisive on how to tackle this market, any advice would be grateful.
@MariaA.Holmes That sounds great and what signal do you invest with?
@MariaA.Holmes That's awesome and please how do I connect with this broker lady?
@MariaA.Holmes I'm currently on her webpage now, her reviews are very impressive and I left a message for her. thanks, a lot.
@@MaryOlson7 The best thing that has happened in my life is working with BRIDGET MARY TUROW. I haven't just attained financial freedom, I have gained a lot of power in the knowledge I have acquired from her. Her trading strategies have been working for me for more than a year now and I’m making good profit from the stock market she's 100% honest, reputable, and trustworthy.
At least he called and realized there's got to be a way out. Keep your faith.
Love the Ramsey show and agree with everything except for when you have a responsible person paying your card every month the points are so worth it for travelers. 99 dollar annual fee card that can get you a trip to Europe and back which would be about 700-1000 out of pocket. Completely agree not having cards for people in debt/irresponsible spenders
You think u are gonna beat a multibillionaire company at their game ?
You think they give u those points
Out of concern for u ?
The caller asked about points
Dave said “it’s not making u Rich ?”
I’ve been to Europe 18 times and have used credit card points to pay for every trip.
Use cards responsibly and they are fantastic.
@@philipkircher2848 you would have been to Europe 25 times if you didn’t use credit cards because you naturally spend less and would have more money for your trips…I understand you’ll never agree with that, because you will claim “I don’t spend anymore with a credit card, and just take advantage of the points”…yet all the research shows you do, I used to think the same thing, but when I stopped using credit cards and switched to cash i have a ton more money left over money each money, but hey multibillion dollar CC companies are out to help you right?!?!? Hahaha
@@Mistro07 This. We noticed a significant drop in our spending when we stopped using credit cards. It is a psychological game. Paying with physical cash will cause you to spend even less than with a debit card.
@@Mistro07agreed. The points cheats your mind to think your scoring by spending, but if you crunch the numbers, the points return something like 0.1% of money spent.
It benefits more to spend less by avoiding the feelings if points.
The house never loses.
I’m 28, have been investing in my 401k since 23, you might as well get something out of your employer while working there. I don’t wanna retire broke.
Many miss that boat and end up broke.
That fellow reminds me of me. I was just a few years younger than that when I got serious about saving. They'll do fine if they stick to the plan. We did. On track to retire any time I want, I just don't want to yet. I still enjoy what I do - but it's nice to have the freedom to walk away if the company and I stop seeing eye to eye.
65 years old, still working full time. Already on Medicare A,B and D. My only debt is about $2K on my vehicle, paying off in Nov. There's $20K in savings, $2,500 in cash. House is paid off. I am terrified that my $70K in the 401k and SS will not be enough to live off.
When the vehicle is paid off, I will be throwing that $400 each month at the 401k, and work until I have a grandchild (grateful there are no plans for that now).
Still terrified.
I know the terrified feeling. You should email what you wrote to Dave or call in and share your story. You are at least aware of your situation. Many are not so you are ahead of the curve right now. Good luck to you!
Have you met with an advisor from whatever brokerage manages your 401k? You might be in better shape than you think.
Call in to the show. This is the kind of situation that we regular viewers like to hear about. I think a lot of people are in your position.
You are doing good progress so far, and also the good news is that your home is already paid off so no need to worry about monthly mortgage payments and you have a place to live . The next step is only building up the savings more and you're in the right path financially.
Not financial advice, but some people with paid off houses will downsize and use some equity for retirement
@@SilentEire I can't get much smaller. LOL! Under 1,000 s.f.
if you use a debit card and there is theft, the money will disappear from your account. and they will take their sweet time returning it. if they do the same with a credit card, it doesn't matter that it takes them a month to straighten it out, because it's not cash they have wiped out.
I want to see a show on how many of the Ramsey Personalities are Debt Free and if they are Everyday Millionaires and how they got there--more Everyday Millionaire shows please🥳
Videos with their stories are available and they share their journey from debt to financial freedom.
Debt free and they make a ton of money because they sell books which Dave ramsey pushes.
My family members, co-workers,and friends all have one thing in common.. They all want to hold on to that one credit card...like what is that about?. The twenty one year old Co worker...this is his first job...he said now that he has a job he wants to "get a credit card to establish good credit to purchase a car/house. 😳
@Gina I agree with Dave on everything except for the credit card. Having a credit score is so important. Manual underwriting isnt near as easy as they make it out to be. Also don't preach penny pinching and then turn down a free 2%. That's why most people disagree with Dave on that.
I'm one. Seriously.
I started a retirement trust fund when I was in middle school. I’m 24 now, and every decade it doubles the amount that is in there and by the time I’m 60, it will be a million dollars. Save now people.
You're only 24, and (evidently) have no proper insight into how unforgivingly brutal life can be.
@@TW-ps2cr what are you implying
That’s awesome. Most of us have not done that.
Implying that you have No Clue what a life altering major Illness or bad Divorce or Accident can do to you and your Life...
@@patde1264 that’s what an emergency fund is for
I just turned 50 and wish I could retire now. I am just working for the health insurance.
Isn't America wonderful
Just for yourself or family?
Yeah i could retire no issue at age 50 if i could get insurance for what i pay now at my job i pay 700$ a month for family insurance its about half that when my kids age out of the plan its like 1500$ a month for garbage insurance on the private market
@@lionheart93 Myself and teenage daughter
20 years of service for the City
Free lifetime family healthcare
This one was Ramsey Gold. Really good stuff. Thank you. I need this coaching in my life.
6yrs ago me.
56. $11,000 cc debt. No savings
$400 rent. $2300. Take home.
Then I found Dave.
Now. 62. $0 cc debt. $43k in savings
$0 rent paid off home. $4100 income.
Retired. Dave has helped me do a complete turnaround.
“Act Your Wage! “ works for me. 🥰
Being on the road to Free from Debt changes how you look at $$$$ ! What Dave said about making every dollar work for you - its Living Within your means.
This show always gives hope. That's why I keep listening. ♥♥♥
Except when George offers advice to an 86 year old woman...
Caller: "we have debt. Whats the best plan forward?"
Dave: "Have you read ANY of my books???"
That’s how he became a millionaire lol
Sell your expensive car and invest the $750 a month.
Click.
33 years old, never missed a cc payment and never paid a penny of internet on any of them. I get most people can’t behave this way, but I’m gonna keep taking from those cc companies.
Agree - there is a minority of people likely a small one who know how to use credit cards. I’ve been using credit cards for 40 years now and I haven’t paid a cent of interest in that time. I have 4 CC 3 are no fee cash back cards. Last one is a travel credit card best feature is no fees for foreign currency transactions. It has an annual fee but it has been waived permanently because of the emergency fund balance I keep. Best of both worlds.
Being a contractor (self-employed) @46 y.o. making $90K a year. A mortgage and a car loan is not that bad. Open a self-directed 401k with Vanguard or Fidelity. Put your part ($100k)of your $150k savings as a start to Vanguard ETFs (BNDX,BND,VTI,VXUS). Being self-employed you have to pay 12.4% to SS contribution to get SS pension at 66 (FRA). You will be a millionaire at retirement.
Always find it funny how people find their way to call into the show before learning or reading about the Ramsey methods.
If you have a 40k debt on your truck, then you do not have 110k in saving. You have 60k. People need to think net worth. So add up what you have and subtract what you owe - including your mortgage. Unfortunately, he has missed 20 years of compound interest.
Yup.
Also debt free means without a mortgage too.
Nah he has 110k in saving . He can always sell the truck anytime
Your math is off. It would be 70k saved.
@@kevinkidneyy Yup he can sell his depreciating asset anytime and minus the 40k from the sale. your point?
Math is hard…
Mmmmmm I disagree with cutting up your credit card IF you have self control. I earn about $1,000 a year from points for Christmas by charging everything BUT paying it off each WEEK.
Self control is something no American has.
If you pay your credit cards off by the end of the month, I don't see the problem.
Mistake? $750 a month, times 20 years does not get you to even $200k let alone a Million. What kind of interest rate is he using here?
He’s using an approximate 14.5% interest rate. Which is… never guaranteed for 20 years consecutively
You didn't even include interest in your own calculation.
Though you are right. He would have to assume a 16% interest rate at $750 a month for 20 years to get a million
Yeah he’s off some plugged the numbers in got 760,0000. That’s putting 12% as average return like he says his mutual funds get
If you watch Ramsey a lot you know he likes to assume 10% rate of return. So $750 a month for 20 years at 10% is $538K. For 26 years it’s $1.026M.
Everyone here is right about the math but I think you’re forgetting that after he’s debt free he’ll be investing 15% of his income into a Roth. Maybe even more with a paid off car. So, he could be investing closer to $1200-$1500 a month for the next 20 years.
It's ALWAYS the truck!!
100k saved is decent but yes he could if had over a million dollars by now if he invested into stocks like 20 years ago
The one thing I disagreed with was telling this guy to cut up his credit card when he said he pays it off every month (as opposed to those who rack up massive credit card debt). What is the problem with a credit card with a low credit limit to pay off monthly incidental expenses as long as you pay it off every month? I've been doing that for decades and have stayed out of debt other than my mortgage. Other than that, solid advice.
Dave Ramsey simply doesn't believe that people like you and me exist. Like you, I pay my credit-card balances off in full every month without fail. I haven't paid a single cent in credit-card interest in decades. My last cash-back check was $4,700+, which I deposited in my bank account. According to Ramsey, I should have flushed the $4,700+ down the toilet. I have zero debt, not even a mortgage.
@@KathleenMcNe Well done, Kathleen. I knew I couldn't be the only person that had the common sense to use this approach. I just paid off my mortgage, so looking forward to having that out of my life as well.
@steve2474 Congratulations on paying off your mortgage, Steve. It's such a liberating feeling to have zero debt. And it's amazing how much easier it is to save and invest when there is no debt to service. If you don't already, you might want to maintain a net-worth statement to track your progress. I didn't maintain a net-worth statement for a long time, but I do now.
@@KathleenMcNe I have already started to track my net worth, but thank you for the tip. Since I can't high five you in person, this will have to suffice for a virtual high five for a job well done!
There is always some giant, stupid truck loan. “But I need it for work.” If you really needed it as a work tool, you could write it off. They wanted it so they bought it.
That “extra” $750/mo will get eaten alive with inflation, 2 kids, a non-working wife to support and misc. expenses called LIFE! The only problem I have with Dave’s radio math is that it requires perfection and no changes for 20 years. Being a paper millionaire at 66 is great so long as he still has $100K + coming in from a job or investments.
I’d rather be a millionaire at 66, then be broke at 66. So, Quit spouting bullshit. A million is still a substantial amount of money. Your brainwashed by idiots, who blow their money like assholes. A 5% withdrawal rate of $1,000,000 is $50,000 and that is a reasonable amount.
The compound interest helps with future inflation. The return it’s usually about 10%
That is why we have to seek passive income to supplement our active income. I do not hear people calling in making $25k and on Food Stamps.
I notice when I go to lunch or dinner with friends I am the only one who pays using cash. It seems almost abnormal that I dont use a CC
Maybe some are using debit cards. You wouldnt know unless you asked them. Basically, most people pay using plastic at restaurants.
The thing about credit cards is people assume they will never get fired. Because let's be honest most people don't have a 3-6 month emergency savings because if they did they wouldn't be in as much debt to begin with.
Numbers
80% of Americans are in debt.
84% of Americans have a credit card. 35% carry a balance from month to month. 51% have less than 3 months savings. 23% have a 6-month savings. C'mon, people wake the heck up!
I thought I heard The Sloshing Hillbilly Hogs open for Cheap Trick at the Forum back in 1979.
Mellow Guy 👍🤣
I have a great idea. Pay off the truck today....pay off the credit cards and stop using them. The wife starts earning $1200 a month max, just doing part-time easy work and use that $1200 as retirement. He can put money into it as well BUT she could be helping with retirement by earning just a little. They're doing great but he's alone.
"I'm 46 with house, car, and CC debt." Dave: "So house and car is your only debt? How old are you?..." Dave needs to pay attention. This is a caller to HIS radio show, not a door to door salesman.
Yeah it’s actually shameful. He needs a note book if he can’t pay any attention.
He’s pretty successful for 35yrs.
Sadly he does this all the time. Either a hearing problem or just plain bored with broke callers.
@@matthewgardner2144 He's got early onset Joe Biden disease.
Actually no. I've watched some videos in which the caller doesn't mention other credit card debts and etc, unless dave ask about them.
They are so off-base when it comes to credit cards. It makes sense for most people, but for people who have any sort of self-control, credit cards are a tool. I don’t know how Dave sees real estate as a tool for wealth, but credit cards are not a tool for controlled spend.
I agree with you. Like many of my friends, I pay my credit-card balances off in full every month without fail. I haven't paid a penny in interest in decades. My most recent cash-back check was $4,700+, which I deposited in my bank account. According to Dave Ramsey, I should have flushed that $4,700+ down the toilet.
Hopefully the caller has his own LLC and can invest in a SEP retirement account. The limits for that are much greater than a standard Roth IRA.
You don't need an LLC to invest in a SEP, you just need to be self employed.
Just a sloshing hillbilly hog! 😂😂😂😂 I'M DYING! 😂😂
Jake Legion 😂
I love how Dave uses that button to hang up on the caller, yet continues to talk to them like they’re still there. 😂
That's because they still are. They hear him, they just can't talk to him.
Big stfu button
It's a mute button not a hang up button.
That’s a mute button you doof
Radio
Completely disagree with the credit card perspective here
This guy is in good shape with a good income and a large cash account.
Caller says they have no savings for retirement than a minute later says they have $110,000 in savings???
He meant he had nothing in his 401k
To each their own, but I can't stand Dave's opinion on credit cards. You're flat out wrong. I only charge exactly what I'd spend out of my checking account, except I get great benefits from my prestigious cards. I have no annual fees and pay my cards off every month, paying no interest. I get on average about $7500 a year in perks. If you just used the points for statement credit, sure, it'd be much less than that. But that's the whole points/miles game. There are all kinds of promotions and programs for different things, and you can maximize the rewards. I get how some people may not manage their cards/points well, so they are losing money in the long run. But not many other people who do it correctly. There is no universal, adamant "how to" in finance. Stop being so 'my way or the highway' Dave. Jeez.
I agree, I love watching his episodes and his advice on money problems but his whole stance on credit cards being such a problem still amazes me. He always mentions that he has never talked to a millionaire that told him the way he got there was from his credit cards/air miles or points. Well thats obvious Dave, you never will in that regard because credit cards don't make millionaires.
We should only be talking about how credit cards give the user perks. Plain and simple, if a responsible person who pays off their credit cards at the end of every month is made to be in the wrong or a dadgum idiot, thats not a fair assumption to make. Many of us out there love getting free trips, cash back, healthy R1 credit ratings, points, air miles & rewards for being loyal customers. What's the harm in that? Use it unnecessarily or to purchase things u cant afford and pay it off slowly incurring interest with fees etc...then sure it's a bad idea.
Sorry Dave, but you are wrong for being so one sided on this topic. Benefits buddy, that's the main/only reason a responsible card holder uses it for. Benefits and benefits alone.
I'll start with saying that I do use a credit card, but the way I see it, is that Dave's plan is a one size fits all to accommodate the most people. Most people use credit cards as free money, or with the mind set of "Im making the minimum payments so Im good, or "if I buy x, I'll get an extra 2% discount", or "Im not at my credit limit, so Ill be able to pay it off next month", all of which leads to more spending whether top of mind or subliminal. So, in my opinion (and I may be wrong), it's more to help people avoid falling into these traps that they may not think they fell into and stick to a strong stance of credit cards are bad.
@@fyrebolt couldn't agree with you more, very nicely put. He's just trying to forewarn ppl from falling into the whole credit card trap.
A $110,000 just sitting there with a truck payment? Not even being invested? Jeez. I’d love to be able to become debt free, an emergency fund and retirement all sorted out in one call lol. Must be nice.
Dam 110k in savings that's good.
Credit cards are fine if you can control and pay off every month . I got so many extras with the points.. and NEVER had a balance !
My coworker just turned 50 and has a net worth of negative $650,000. He keeps borrowing and spending well beyond his means. He has zero dollars in his 401 K and loves to take lavish vacations. His kids dropped out of college and he has multiple dependents. They all wear designer clothes, have the latest iPhones and drive new cars. They look like millionaires but are flirting with financial disaster. He thinks the government will support him when he retires. His kids do not want to work and are already having children of their own. Who will care for the parents and support them when they age? I am sure he will get bailed out by Uncle Sam.
Wow This sounds like a disaster I feel sorry for them.
Uncle Sam will provide rice and beans.
@@jodylarson4697 not for millennials, go ask boomers they’ll tell you that there will be no retirement funds for the millennials/genZ generation that’s why it’s SO important to plan from a young age.
LOL: A sloshing hillbilly hog! Great analogy- I'm cracking up. Awesome! 😂
110K in cash saved, that's no chopped liver money. Issue I have is a truck you still 40K towards and a wife who isn't working. Unless they have a kid or two she could be working a job making a secondary income towards their mortgage. They're not in dire scenario unless he gets sick and or can't work, but the truck needs to be paid off or sold.
This guy will be an everyday millionaire..he just needed some guidance.
Good that he is seeking guidance now before he is ready to retire.
@@carlaritchie331 Or cannot retire!
Investing $750/mo starting at age 46 until retirement will not make you a millionaire. That's just not going to happen. You need to start when you're young, or up your contributions. I'm thinking more like $2000/mo might, might get him there.
The best plan is to jump down Dave's baby step staircase head first
he was actually pertty nice to him lol
Deliver pizzas at night and make $1500 a month
I did that in college!! And I made a lot doing it during Covid
Don't forget to CCW
Minus gasoline, car usage, risk increase on insurance eyes so higher premium.
Just to keep the number as real as possible…
@@elingedgar Shhhh, don't spoil their dream with hard numbers. The real return is 7.50 per hour....
.38 special, Molly Hatchet, Allman Brothers, Marshall Tucker…all take a back seat to the Sloshing Hillbilly Hogs. I love the southern rock genre.
👍😁
My Wife Stays home
Can someone please explain (besides feeling they deserve it) why people finance a car, have kids and take out a mortgage when they have loans and no retirement savings? Especially over 40 it just seems like putting the cart before the horse. It isn't a Ramsey thing but more of a common sense thing.
People have to keep up with expectations mostly. I live in Tysons Corner Virginia and if you go to the mall here, almost every single car costs $40k+. Of course you’ll see the occasional beaters, but they’re rare. People do what’s socially acceptable. Being a partner at a firm for 15 years and driving a 2003 Honda will get you looked down upon in the corporate world, generally speaking. Same thing with if they rent a studio apartment and have been with the same company for 15+ years, people for SOME reason. Are so involved with how others spend their money, and as a result, most get into debt to keep up with appearances AND expectations. That’s why Dave always says “Live like no one else now, so that you can live like no one else later”
@@MiahV007 Like I thought, feeling they deserve it even though they are not there.
I think they behave this way because they have had no financial guidance other than what their family members or friends are doing. Those people also have had no financial guidance. Nobody told me when I was mid-30s that I should be watching where my money goes and saving for retirement.
Why not take out the mortgage? I hate paying rent and have nothing toward the principal. In my area, renting a house similar to mine, I would have to pay almost double. No thanks.
@@stevenporter863 Wealth is quiet--Rich is loud--Poor is flashy.
2:26 Why is John sitting so much higher than Dave? 😂
This couple is doing fine, but need some adjusting. Dave is right about taking that savings and paying off that vehicle completely and other credit cards. I don't agree with the savings setup he wants to institute. I would tackle the mortgage by getting a first position or second position HELOC. because that's going to save them a ton of interest versus paying the amortized mortgage loan. Then I would throw the rest of the savings on that mortgage or HELOC to cut out the additional interest. Because that HELOC is a revolving account meaning you can pay into it and borrow from it whenever you want, you do not need an additional savings account for emergencies. You can use it to fund other investments as well. You can take vacations when you want to. You don't have to live on beans and rice. You don't have to get a second or third job to make ends meet. You will be using the same money you are already making, but you are allocating it differently for your benefit and not the bank. I knocked out at least 6 loans and paid off a 323k house in 5 years saving over 150k in interest using lines of credit or OPM, other people's money. In other words, the bank's money and that savings account money you put in the bank. Dave's program does work, but you will have to be on a drastic strict diet of self denial of things you are use to doing, meaning you can forget about vacations, date night out, and other activities. You will be on probation and in pure monk mode. Doing it this other way does not mean you do not have to practice a degree of discipline. So I advise you to look into other solutions before you commit to Dave's baby steps. I'm not saying that his solution won't work, it's just the price that you have to pay. I learn from my grandmother a long time ago, there are more ways to kill a cat than to just hang it.
He can do it!!!!!
Why he has to cut the CC if the balance was paid off every month? I don’t get it.
Cause of the Vegas odds the CC company is counting on.
“They’re not hooking you up with free money and flights every time you use their card.” Actually they are, dumb advice if you pay the card off every month.
They still young and have plenty of time to star savings..!
Deloney loves his poncho shirts man
My dad is 67 he’s making it with just social security and 45gs in income funds and 24gs in high interest savings and paid off house. My mom still working she’ll have about 240gs in her 401k when she retires in 4 years. Retirement can be tricky but there’s always ways. I learned from my parents and I want to invest as much as possible though I don’t want to work til I’m 60. 50% of my paycheck goes straight to dividend funds
High interest savings? Please share more on where that is available.
@@carlaritchie331 all the online savings accohnt are offering like 4-5% interest rightnow
why would you invest in dividend funds during your earnings years? You are leaving big stock appreciation on the table. You will be worse off in 20 years by following that strategy
@@tartuffethespry I’m 31 I want to achieve fire before 40. I hav diff goals. I don’t want to work till I’m 65 for a dollar that is getting devalued every year. I rather enjoy life spend time with fam friends date and work on my health then be at a job making profit for someone else. Also my dividend funds are dividend growth stocks that also grow every year 7-8%
@SavageInvestor
That's less than inflation.
John, I think George Kamel recently coined what should be the name of your next band... Dorsal Coin Hole! 😂
Idk about liquid dating that 100k in this uncertain economy….
Just pay the car off over time. With 90k a year it should be paid off in to time.
Living on the West Coast is equivalent to purchasing a Tesla brand new in cash
If you cannot do that then you can live on the west coast
😮 not hasn’t caused us to be rich! Wow. Makes a lot of sense.
Tried that debit card system a few years ago. Perhaps I'm just disciplined, perhaps I like the 28 days float, perhaps I know it's just easier to reconcile daily expenses on one account vs. recurring monthly expenses upon another account. Perhaps I'm just a nerd. Somehow, I'm retired and have too much to leave to heirs and charity. Stop it with the credit card crap. All it takes is discipline.
All it takes is something no American has.
These people that are so shocked @ their student loan debt amazes me. They didn't keep track of the borrowed number? Guess they figured old Joe would bail them out.
Yup!!
What gets me, as a single woman in my late fifties, who didn’t have any of this knowledge, before I started tuning in here. YT wasn’t always around and even my business owning parents were either too stupid or too narcissistically in it all for themselves, are some of the people I’m crossing paths with.
None of us are financial gurus. But, what I’m seeing are people who are retiring early, going Whoopsies and their solution then? YOU. You, who knew you had better keep working, if you wanted healthcare, the ability to pay rent or mortgage and other living expenses, the ability to have any amount of permanent retirement. Some of these people retire early and actually may become “lucky” enough to become ill enough, where someone HAS to take their stupid a$$ in.
And you know what? I’ve been predated by one of these types and I get blamed for not helping them. So, essentially, their stupid a$$ is supposed to remain coddled and comforted, by my working a$$ or I’m in the wrong.
All of these people are sick, stupid and crazy.
I’m glad this guy called in, to get some sense, while he can do something about it. Because give it 20 years and he’ll be in the same panic some of the people I’ve mentioned above are.
Nothing in your post many any sense.
@@matthewgardner2144 it takes time for some to figure it out.
All great advise I would say use your credit card instead of your debit as they give you the best protection. But pay it off the next few days as soon as it hits your account instead of every month.
I’m sorry Dave I really don’t understand you saying if you invest 750 a month for 20 years will not get you to 1 million unless you are receiving a 15% return on your money which is unlikely considering the market usually only returns 11% on average.
It is 23 years @12%
Support the FAIR TAX and DEPT Can be payed off
What department can be paid off? Are you a politician or a lobbyist?
When something says Fair Tax or anything related to that, it not the complete opposite of fair.
@@MikeNapoli1989 like when a politician says is "common sense" laws.
Which Department do you want paid off? Learn how to spell "paid" my trans fluid friend.
No... People will just increase their spending.
Self employed people need to wise up and invest .... there is a common theme here with those who are self employed. They forget about retiring.
I agree with you. A lot of self-employed people don't invest in their retirement to the degree that they should.
This is the whole nation
This guys gonna make it. No prob.
I think this is the first time I've ever heard Dave mention HYSAs. Usually he gives the stock Boomer suggestion of CDs or brick-amd-mortar savings accounts, either locking your money up or paying you squat.
Not much point mentioning them a few years ago when you were lucky to get 1%.
@amireallythatgrumpy6508 Well I've been listening to Dave since 2004 and I can assure you from my own experience HYSAs (we called them e-savings accounts back then) were paying 6% sometime around 2006-2008. I think Kamel and Jade finally got him to realize they are good.
There are cash back debit cards.
Yes there are!
I would live to hear The Ramsey Show actually address take home pay only, and not annual. 90K take home is ~$4K/monthly after deductions. It is a bit misleading.
I think your math is a bit off. Take home pay is a bit over $5K per month on that salary.
@@dudeorduuude5211 if you are not contributing to retirement or benefits, maybe. I have made that and know the take home.
Not if you're self employed and take all your deductions, filing as married.
When you study millionaires...do they have credit cards?
Yes. My brother is a multimillionaire and he charges EVERYTHING in his business to his credit card and earns thousands of dollars a year in points but he pays it off before interest is charged. You just have to have incredible self-control.
Stack some gold or silver
I don’t get why they always say pay off ur car. If he pays 40k off and sells it in 3-4 years he’ll prolly only get back 20k or less. Versus paying the car payment
It’s going to be worth $20k in 4 years regardless. Instead of paying a car payment that has interest working against you…he can invest the $750 a month into the stock market and get interest for for him. -4% interest with the car loan or +8% in investments.
@Nicholas Lamantia what investment are you people talking about. Sp500 or what? The market is uncertain, and you can lose in short time too. What is the guarantee of 8%?
@@LoveLife-oo9cz MorningStar subscription
Wife is playing with fire. She should get a job and max out a Roth yearly plus she will pay into SS and not have to rely on him if he starts acting out.
Wife knows exactly what she's doing and she can take half in a divorce down the line.
@@IrishFrank22 half of what the house equity and 110 thousand? Lol
@@IrishFrank22 with alimony...
@@jaydubya9265 Still better than most who have zero. Why can't she get a job?
@@IrishFrank22 half of what? He has nothing!
Where do I get this high yield savings account Dave mentioned. My savings accounts pay less than 1%.
Online banks. American Express Savings, Discover Savings, and many others. Google "best high yield savings" and you'll find a list. They pay MUCH higher interest because they have no overhead. One of my accounts pays 4.5% and another pays 4.0%.
Great advice!
750 a month, but invest in what
What are some good investments to put into in a roth ira?
This is sad. I am saddened seeing my aunts and uncles working at 65+. They’re old and tired. I’m just maxing out my Roth and 401k match, investing in VTI, and will cash out on social security as soon as I can (62 as of now, but maybe later in the future?).
If you have an adequate nest egg then take ss as soon as you can.
If your SS benefit will be more than half of your income in retirement, then you would be better off waiting until at least full retirement age to start receiving it. The reason is that you'll get more per month that way.
@@jodylarson4697 the break even point is 86 years old. Considering 65%+ of Americans die before then, you’re making a terrible choice waiting, unless you think you’re a special snowflake that will be that 35%. A bird in hand now is worth 2 in the bushes. Plus it’s just supplemental anyways.
@@jamesssss621 I completely agree. Tomorrow isn’t guaranteed, anything can happen to us. People vastly underestimate risk factors and always assume they’re statistical outliers. I always plan for the worst, so only the best can happen.
His wife sits at home and does not bring in income. A stay at home spouse is expensive. This is a rip off for everyone. She needs a career.. What happens if you split up or some other unfoseen emergency that is a game changer. Dependency is a power imbalance.
I am glad a woman wrote this comment.
Both spouses working is the worst thing you can do for your kids, and its actually horrible for society as a whole. Why would someone voluntarily have multiple kids, then drop those kids off at a daycare or a grandparents house. Makes no sense. The only thing we accomplished when all the women started working in the 60s, is everything went up in price. Houses, cars, food, all went up because we doubled our household incomes. We did this to ourselves.
With all respect, Betty, his wife might be contributing significantly by staying at home. Not everyone gets divorced, either. And, on average, we live well past retirement age.
Perhaps both parties are dependant on one another? That's not uncommon in households where children are present. That's called "co-dependency". And co-dependency is
good for families and it's good for communities. Not everything is about "power". But yes, fate can be a cruel master, I agree.
She isn't "sitting at home!" She is raising three kids and taking care of their home and family! And hopefully raising good adults, who can take care of themselves and do well in life!!
They have 3 kids. How much would that be in daycare? Would she make significantly above that for it to make sense for her to work?
No trucks!!!!!
How is Dave calculating saving 750 bucks a month for 20 years and him being a millionaire? !
I think they must have high interest in some acoounts
110k already saved plus $750/month @ 9% interest for 20 years is over a million.
750/month invested at 10% is about 500k after 20 years, but he will likely be a millionaire because the steps over that time also tell him to pay off his house. And he should be able to increase what he puts in over time
Compounding interest!
@@norse3026 please tell that Mutual fund to invest,,, I invested in tomorrow
Good for him for having 1 parent stay at home! American society ranks as one of the lowest quality of life countries in the world. And we deserve to be. 2 parent working households are toxic.
Both spouses working is the worst thing you can do for your kids, and its actually horrible for society as a whole. Why would someone voluntarily have multiple kids, then drop those kids off at a daycare or a grandparents house. Makes no sense. The only thing we accomplished when all the women started working in the 60s, is everything went up in price. Houses, cars, food, all went up because we doubled our household incomes. We did this to ourselves.
You are ignoring that 1. Women started working in war times... they did what they had to do as you can't always rely upon men and 2. You think things are so rosy and didn't see the many lives of quiet desparation and how trapped this makes women. Women have choice now. There are consequences, but some women want to explore other sides of themselves and their own potential. The Earth isn't hurting for people, so we can have some women choosing this, and others and still choose a traditional life.
Thank you. I commented the same thing. First it is “their” kids and would you rather schools and the state raise them. Let’s not dis women who stay home, they are doing the harder job with less pay and more satisfaction.
@@dudeorduuude5211 , that also gave us all other "choices" too. Now, we get to choose....do we want to pay 40k for a car, or 80k for a car. We also get to choose, do we want to pay 300k for a house or 500k for a house. We pay inflated prices for everything because too many people are working. Too much money in the system means inflated prices...basically like that last 3 years have been.