My wife and I just finished paying off $94,673.35 this morning. Praise God and thank you Dave for these teachings! I’m 22 and she’s 23 so we are excited to start young.
Absolutely, financial management is crucial for long-term stability and peace of mind. Avoiding it can lead to missed opportunities and financial difficulties. It's never too late to start managing your finances wisely and securing your future.
Financial management is crucial for long-term stability and peace of mind. Avoiding it can lead to missed opportunities and financial difficulties. Working with a financial adviser has really helped me get on the right track and secure my future.
It's great to hear how beneficial working with a financial adviser has been for you! I'm definitely interested in working with a financial adviser myself to better manage my finances and secure my future.
'Rachel Sarah Parrish, is respected in her field. I suggest delving deeper into her credentials, as she possesses experience and serves as a valuable asset.
I absolutely disagree. I sold my house in 2016. I spent $60k to turn my unfinished basement into 2 more bedrooms, 2 more baths and a rec room. I sold my house for at least $150k more because the logistics between a 3 bedroom, 1 and 1/2 bath didn’t list nearly as much as a 5 bedroom, 3 and 1/2 bath home… with twice the living floor space and all new stuff in the basement. My $60k investment brought me at least $150k return in 6 months. Damn good deal !!
We were dirt poor as a family of 4 making $17,000 a year and $11,000 in debt. We followed Dave for years. Now we own a beautiful home with $265,000 in equity so far. My husband and I each have a retirement account. Our kids are grown. We'll be selling this home and purchasing a smaller home with no mortgage.
One of the best feelings I've ever had was the day I was sitting in the dealership, waiting for my truck to get some repairs, and started talking to the dealer about getting a new truck. He said, "Let's check your credit." I said, "Nah, if I get something, it'll be cash." The dumbfounded look on his face was the most priceless thing I've ever seen! I didn't buy a new truck that day, because the repairs were a better option, but just seeing him so confused made me smile!
I remember when my grandpa bought identical but upgraded versions of the same farm truck. In cash.three times in his life that I was around. He kept a savings account for big item purchases and cds he cashed in when he was making them. My grandparents didn’t run around acting like wealthy ranchers but lived a steady quiet luxury of quality items and using their farm to create 80% of living needs. I think the only really oddity of money dumping was that my grandma didn’t bake bread because grandpa liked the white wonder sandwich bread so went to buy a fresh loaf every other day. lol
I’m not into cool cars like some people are, so I feel like even if I made six figures and was a net worth millionaire I’d still buy 4+ year old cars. More money for activities lol
I confused someone that much when I paid cash for a lap top. 🙄 The guy actually got rude with me about how it “must be nice.” I told him I had been saving for it and he said “oh, I guess saving works.” Ridiculous!
Yup. One habit I've been trying to change is making sure I get enough sleep. It sounds like a small thing, but I know it'll help me make calmer, smart choices.
Dividends are dope. Personally, I sometimes use my dividends to buy other dividend and growth stocks for diversification instead of reinvesting in the same stock. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important. Salute for the content!
The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner
the best market strategy is to work with a credible investing coach. Since a while ago, I've been in touch with a coach, mostly because I lack the depth of understanding and mental toughness to deal with the ongoing market conditions. You lack the information necessary to succeed in a competitive market, not because you're doing anything wrong, but rather because of your lack of experience.
'Rachel Sarah Parrish' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
People are facing a tough retirement. and it's even harder for workers to save due to low-paying jobs, inflation, and high rents. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire in.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
Most people in the world work until the physically can’t anymore, then rely on government and/or family Citizens in wealthy nations will soon have that type of retirement
I’m 63 years old and I can’t tell you how refreshing it is to see a brilliant young lady on the show. Hopefully that will help you reach a broader audience. It shouldn’t just be us older guys talking about money! Thank you ma’am for your intelligence and your insight! It is a pleasure watching you
@@AlyssaMonetMason I am white and it made me proud also! It’s about time everybody realizes that everyone has input and we have a lot of smart young people that have a lot to bring to the table! Thank you for your comment! I hope you have a wonderful day!
I am retired and have a paid off house and two paid off cars and no debt, My advise is to be out of loan debt before you retire! You will sleep real good every night.
If you're referring to Dave mentioning it as a "middle-class behavior", keep in mind that such behaviors aren't being complemented or recommended. They're being lampooned and portrayed as dumb. Car leasing is dumb, as you pointed out, and Dave agrees with you.
It depends because you can also avoid maintenance and repairs and have a new car to keep the perception of having wealth, but it also depends on what you are leasing. If you are leasing a luxury vehicle, it can be $600 to $1000 monthly payment, but if you lease an economical car it can help you. There are pros and cons. I would lease probably a Honda or Mazda, but not lease a BMW or Mercedes Benz or Tesla because buying also means higher payments even if you buy used. But also it is best to find a good vehicle under $10,000 such as an older Toyota, Honda, Mazda, or Nissan and then use it for business so that you can claim your payments as a business expense.
For those of us who are older, we remember when the banks encouraged farmers to take out loans for new equipment and mortgaged their farms. Then they called in the loans and farmers lost their land. This was in the 70s. My dad kept his old equipment and we were OK. But it was tragic for a lot of farmers. Don't trust bankers, lawyers or preachers. They all want your money.
Just like fees for infractions in neighborhood associations and city fines ... They run up the fines, then send the person to their lawyers who send them a huge bill. Next step: A lien on the fined person's property, and soon the lawyer becomes the new property owner. It is a SCAM.
Given the situation at the time it might have been a smart move. The bank is more than happy to loan out money with interests, its what they do and how they make BIG money. The problem comes when the bank have to repay the money they let you loan, they dont have it and your dont have it. Either they take whatever you put up as security for the loan or they are out of buisness and likely as screwed as you.
I find it very funny that my bank has been sending me letters encouraging me to get loans for YEARS, when I was on a low-ish income. I never responded to any of them. Suddenly I get a big bump in pay and they're sending out letters that say 'why not have a consultation with our wealth managers'...no thanks. I do my own investments without crazy management fees. No matter who they think you are, they're trying to siphon your money!
My wife grew up very poor, it was incredibly difficult to get her out of the mindset of "why don't we finance the ____?" phones, fridge, washer/dryer, bed, game system, house repairs, tools, etc. For me it's "ABSOLUTELY NOT" and since we have been together we have had $0 debt besides a 15-year mortgage that we will pay off in 10. Financially we are set. We may buy a Car in the next 2 years or so, but trust me it will be paid at least 50% in cash, but hopefully 100%. People do not understand the horrible implications of what financing/loans does to your monthly income long-term.
If I have the money to pay off my house in full right now, would it allow me to save more money in the long run rather than continue to pay the mortgage monthly for the remaining 22 years and would it be financially beneficial for me in the long run?
The key is to finance with a lower interest rate than your investments are paying. I bought a 10K deck for 2 years no interest with Lowe's. I have that 10K sitting in a CD earning 5% interest. Why should I give Lowe's my money up front when I can draw interest on it for two years? That's just foolish. You have to play the system
My FIL had moderate income, invested well, denied himself nice cars and vacations, had tremendous income when he retired at 65...then...three months after retirement he was diagnosed with stage 4 pancreatic cancer and passed two months later. Live you life in moderation but enjoy yourself.
Oh man that makes me so sad. I'm with you. I do what I can to dig out of housing debt and have a retirement plan from work and a separate Roth FIA that I am maxing every year. Also listened to Dave to save a rainy day fund. I did buy a new care 15 years ago after housing crash so I got a good deal on it. Took 5 years to pay it off and so last 10 years I have driven my car with no car payment. I will need to think of another car at some point, but won't buy brand new next time. I'll purchase a pre-owned car for cash. My main goal is to pay off my house (have 10 years left on loan), and build my Roth FIA account. My kitchen is in terrible shape, but I don't plan on getting a HELOC. I find that a distasteful idea. My Dad does that and while he has retirement accounts, an office building that generates revenue, and social security, he also has a second mortgage. I think I'll work to find cash or sell a few items to get kitchen done. At the moment, my house is work at 290k and I owe less than 80k on it with a 5.5 fixed interest rate.
Yeah this is why I don’t like the “live down to the bone” money mindset. It’s really unhealthy and you lower your quality of life to prepare for a potential future.
THANK YOU!! I understand saving but damn, are we suppose to sit around, work non stop, and then hope we're able to do the things we want to do when (or if) we get old?? My uncle did that and then my aunt got dementia.
Yup. Many people have this "golden years" mentality that once I retire I'm going to have all this money and travel the world with it. But will you have the energy? Will your health be intact enough to properly enjoy it? Will you even live that long? Not to mention much of the extravagance that we desire in our youth tends to dwindle away in our later years in favor of the simpler things in life anyway. I have more student loan debt than I probably should because I chose not to work during my college years (I worked full time during the summers and like 5-10 hours per week some semesters, but mostly didn't work)...but I also know that if I had worked more in college, my college experience would have been diminished. I got to do a lot of traveling and participate in a large number of unique activities with people I'll never forget. I'm still paying for it now when I probably "shouldn't" be, but I have no regrets about it. I wouldn't do anything differently from the financial angle if given the chance to do it again.
Very similar to your experience. My GrandFIL had dementia and needed full time care. They started paying $6k month and went up to $10k to live in the same facility that his nursing home neighbor paid $0 for. Hers was all subsidized through the government. They blew through their most of the savings, and left grandma with very little.
To attain upper-class wealth, a wise individual recognizes that building financial success requires smart investments, strategic tax planning, and informed decision-making. Although the stock market offers growth potential, effectively seizing these opportunities demands both skill and expertise.
Stock investments can offer great potential, but it's essential to approach them with caution. I recommend consulting a financial advisor who can help you determine the optimal times to buy and sell.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
My CFA ’ Melissa Terri Swayne’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thank you for saving me hours of back and forth investigation into the markets. I simply copied and pasted her full name into my browser, and her website came up first in search results. She looks flawless.
Yes I agree. Im a single 30yo and I live alone in a decent 2 bedroom condo in CA( garage, inside laundry room, fireplace, walk-in closets, and other amenities) even though I only make $55,000 annually. Most people either live with their partners/so or roommates (sometimes total strangers). I drive a 2015 Mercedes-Benz which I own, I don’t make monthly payments. That’s primarily the reason why I am able to afford living alone. I don’t have ANY debt. Paid off all my CC and also my car. Most of us don’t consider this a debt when in fact it is the most common type and usually the highest! If I had continued to make my monthly payments there is NO WAY I could afford my current lifestyle . I advice people (like me) who plan to keep their car for 10+ years to PAY IT OFF QUICK, IN FULL!! Even if (like me) you financed for 5 yrs, I paid off mine in a little over 18 months. Saved thousands on interest and gained freedom, SPECIALLY financially.
My final federal student loan payment went out this month! $20K I will never owe again. I made payments during the pandemic and I’m so proud to be part of the 1% who did. Thank you Dave and everyone at Ramsey Solutions. Next snowball is my car! 😊 Trying to get out of middle class 🤞
Just curious why would you make payment during pandemic when they gave you 0% rate? I paid off mine as well but I only did when the interest rate was not 0
@@rosc2022my wife had $21k in student loans going into 2020. Instead of making the payments we set it aside in a high yield savings account as additional security during that time. At the beginning of 2022 we put the money in Ibonds that yielded 6%-9% over the last 1.5 years. Now the money is back into a high yield savings that is earning more than the interest on the student loans.
I don't know her name but she brings up an excellent point. If Cindy is planning to move in 2 years why is she trying to do any non-essential work on the house? Let the new owners decide if they want to finish the basement or update the deck. Home repairs are something you should do for your long term enjoyment, not to bring up the property value. In the overwhelming majority of cases, the increased property value is less than the $$ you put into the project. You're better off keeping your money. Dave ignores the 2 year move timetable completely.
I retired with 6 figure pension. Zero debt. Except one thing. 52k equity line on a property in the mountains. I couldn't sleep at night. Didn't want to pull money from investments. Went back to work at something I love. Paid off the loan. Freedom!
Dave, "forever and ever, Amen" 😂 I loooove Dave, his realness, bluntness, and no nonelsenseness ❤❤. He cares! Thank you for this DR! The Finance Doctor!
Cost of living increases hit harder when a lot of debt is carried beyond housing/mortgage (e.g., car, credit cards, student or other loans). Hello to lovely Scotland from California.
100% agree. When I was 26 I bought my 1st apartment (2016), so instead of upgrading to a new iPhone I was paying my mortgage! Since than I have bought and sold 2 more apartments (instead of buying clothes and spending on stupid stuff). Which after selling last year left me with one 100% paid flat and 50k euro cash! It's all about the money habits! Btw I did this following Robert Kiyosaki adviced since I started it all with 10 euro in my pocket! However, I absolutely love Dave advices too, so now that I am 33 years old I follow both of their advices to some extend. Also one of my fave books is the "Millionaire next door"
So true, all you both said. You really don't need the newest and nicest stuff to be happy. Happiness can be sleeping at night not worrying that the bank is gonna come take back everything you have!
My vehicles are a 2002 truck and a 1992 conversion van. The truck has over 400k miles on the original engine and just replaced the transmission. An engine compression check was a 👍. The van has cost me about 11k in mechanical repairs, which I paid in cash for every time, over the last few years but has been replaced bumper to bumper and it's a 👍 now. I will NOT be replacing them with brand new 40k-100k new crap unless I have absolutely no choice. I'm debt free except for my mortgage which I am paying down as fast as possible by paying extra principal every month. Life is good. I'm 66 years old and hope to leave a actual inheritance for my children and grandchildren that I have raised since they were born.
I am so thankful for your teaching. Jan 2021 we began using Baby Steps. We are old. Early 60's. But we are so much better off. We would have been screwed if we didn't change. Praise God. Praise my son who shared Dave initially. And praise my hubby who got on board to hit it and git it!!!!! It has helped our relationship tooooo! Major bonus! Debt is dumb! ❤
What makes me sad about families striving to live within their means is that society seems to have a nasty term for when families move into older or modest affordable neighborhoods and begin renovating and beautifying homes: "Gentrification." How dare families buy within their budget, make their home nice, and increase property values. 😂😂
No debt aside from medical bills but they only added up to less than 5 grand. Drive old cars , live in a trailer, for now, not by choice. At 57 trying to find my way back to middle class. We've been through alot but well come out of it by Gods help and the decision i make. I don't care to be rich, just to be ok. But you guys are right about what we do with our money puts us in a bad place. Im prime example. Hopefully ive learned from my bad choices and can look forward from here. Thanks for your channel.
We paid off our home in 2017 at 15 years, three months. Once you pay off your mortgage you have tons of money. We are debt free and power saved for years after that so Covid was nothing but a nice vacation. Thanks, Dave!
.my brother passed away leaving a equality loan with interest only. So we had to pay the loan back at closing and sell the house. Don't know what he used the money for. Not a good move
What is your income?? Most Middle income people cannot afford a 15 yr. Mortgage. I never advocate debt and spending more than you make. I don't need to call an arrogant person to tell me not to spend more than you make. Not rocket science.
For the past 4 weeks, I have been viewing this channel, and I feel amazing, like I have wise and rich friends that are teaching me how to become wealthy, during this time I have paid 4k in debt and I have my Emergency Fund saved. I am working with the everydollar budget, and project to be debt free in about 6 months if not less than that. Baby Steps, one step at a time.
I am from South Africa. Thanks to you Dave i am at peace No credit card debt No car payment- bought it as a second hand car No personal loan Only home loan payment. Im in a much better financial state. All thanks to you.
The problem with so many people is they constantly have the urge to sell and buy a bigger house every 5 years, always in debt, because they feel the need to keep up with the Jones. I bought my first and only house in 1987, and am still living in that house. I am now a multi millionaire investing all that extra money for all those years.
Praise be and blessings to Dave. My wife and I are both 19 and just paid off our university tuition in advance totaling $387,536.29. We are sophomores and are now debt free and saving up to buy a data center for our AI business Baby Steps LFG!!
I strongly suspect that the person offered interest-only for 10 years thinks they don't have to pay back the principal. Not understanding the value of the equity in the home bespeaks someone who really needs something like Financial Peace University.
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $2m with the help of my advisor from an initial $350k investment.
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.
Hi, Im from the uk and was always interested in this info but I still feel intimidated at times about my financial 'rights' if you will ..I mean the feeling of feeling I have a right to rise above middle class and have that sense of stability and peace ..Can you share what you implemented that changed your life please?
The problem we have is because Most people always taught that " you only need a good job to become rich " . These billionaires are operating on a whole other playbook that many don't even know exists.
" It is remarkable how much long term advantage people like us have gotten by trying to be consistently not stupid , instead of trying to be very intelligent."
The wisest thing that should be on everyone mind currently should be to invest in different streams of income that doesn't depend on government paycheck, especially with the current economic crisis around the world. This is still a time to invest in Stocks, Forex and Digital currencies.
I also keep seeing lot's of people testifying about how they make money investing in Stock, Forex and Crypto Trade(Bitcoin) and I wonder why I keep loosing. Can anyone help me out or at least advice me on what to do.
Even with the right technique and assets some investors would still make more than others. As an investor, you should've known that by now that nothing beats experience and that's final. Personally I had to reach out to a stock expert for guidance which is how I was able to grow my account close to $35k, withdraw my profit right before the correction and now I'm buying again.
No car payment No credit card No house payment Almost debt free. Emergency fund saved Railroad and military retirement! 401k and stocks. Let's go! My ex wife said I love Dave Ramsey more than her. Yup!👍🏾
Everything you listed... good job except the credit card part. Get a credit card but use it in a responsible way. Unless you're worth millions or billions of dollars... you still need a good credit score.
@@joelkaben Nope! I rent a house and I've rented a car all without credit or credit cards. You don't need credit. Credit just makes things a bit more convenient.
There are a few changes I would like to make to my home. Nothing "needs" to be done though. I am focusing on paying the house off, which should be about four years. ONLY THEN will I look at making any cosmetic upgrades.
We had an interest only home equity loan on our previous home but we made a point of paying extra on it every month towards the principal. At the end of 10 years, ours then automatically defaulted to a traditional installment loan with principal and interest amortized with the balance. Fortunately, we paid it off before it reached that point. It's all about discipline! Agree completely with Dave about banks. I used to work for one many years ago and it's all about making money and it's gotten way worse over the years.
I treated myself to a new car . 20 years later I still have it with less than 70, 000 miles. I am debt free and blessed. BUT for me I realize that if was diagnosed with a serious health condition I would be screwed because of healthcare costs despite having insurance. I am also starting to believe the saying "There is nothing more stupid than a person living poor in order to die rich."
Always opt for an out-of-pocket max on your health insurance, ideally if that includes out-of-network providers. Even if it is something like $5000 for the year. That way you're not paying for Healthcare in perpetuity. And while on that subject, I believe that we need to become more educated on health insurance in general. Oftentimes we don't think about it or understand our plans, especially when it is obtained through our employers.
LOVE THIS! Smart in a nutshell. I love how Jade and Dave have developed this rhythm like they read each other's minds! Jade is the most articulate with fast thinking on her feet of all Dave's sidekicks (even Rachel - she's hard to listen to as she stammers around and has trouble finishing her sentences_)
I've never seen any conversation where she had anything of value to add, but that's pretty much true for all of them. It's the Dave show, the others are just there to nod their heads and make pointless comments.
Well that's the point isn't it? Dave probably wants to retire sooner than later so he is grooming his young acolytes to take over. Of course they parrot his principles but he also shows respect when they have a unique point of view from their own experience. He can't exactly clone himself so you just have to accept a new generation.@@mplslawnguy3389
I opened an ROTH IRA at the age of 27 and put the maximum amount possible for 2024. I feel foolish for letting my life fall into order so slowly. The issue at hand is how to invest the funds most profitably in order to save for retirement
You're 27 years old. It is alright. The compound interest period has begun. To build a strong foundation and reduce risk while maximizing gain, I think all investors should begin with ETFs. From there, they should diversify across a range of asset classes and continue to invest consistently and systematically
You do not need to locate the next NVIDIA to be successful in investing. Simply choose top tier ETFs and work with a financial counselor, as I did. I turned $90,000 into $53,000 in annual dividends, which is a huge accomplishment for me today
Impressive! I admit I'm scared about retirement as I turn 60 on my next birthday. I need to ensure I have enough money to survive on. How can I consult your advisor? My retirement account isn't performing well
''Aileen Gertrude Tippy'' is the licensed advisor I use. Just research the name online you will find necessary details to work with to set up an appointment
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her
Yep. There's a reason advertisers put certain commercials on at certain times of the day and evening. They know their demographic and target audience. Rent to own, Payday loans, high interest used car dealer commercials (no credit, bad credit, no problem) and so on in the late morning and early afternoon, the new car ads during the evening news, the luxury car ads during sporting events, and so on.
This question is a pefect example of how financially ignorant this country is. "What is the benefit to having all this equity?" Wow, just wow. They prioritize teaching so much nonsense in school these days. Yet so many schools refuse to teach basic finacial literacy.
I got so frustrated with that line. The "benefit" to having all that equity is NOT having that much in debt. That's literally the point of owning things, so you don't have to pay someone else a monthly bill to "rent" them
Agreed. However, it is also a parents responsibility to teach their children financial responsibility and lead by example. My parents were frugal and I still live by that, but did not talk about financial matters in general. I learned everything myself through my own research. The problem is that so many people don't take the initiative then blame everyone else for not teaching them.
Maybe schools needed to stop teaching basic economics and money management so that the kids would not start asking questions at student loan application time? 😂😂
I don’t have much debt under $5,000 total between my wife and I. We drive vehicles that we bought out right and as a mechanic we do save a lot with my knowledge and labor when it comes to vehicle maintenance/repair. We don’t save much though and don’t quite live check to check but we spend too much on the weekends with the kids and such. We rent but are working towards buying a house for under $150,000. I just started contributing to our works 401K plan and they match up to 3% gross so I just started doing the maximum amount I can and still have them match. Dave’s advice is well needed.
Back in 2007 most everyone was using their home as an atm. I had a hard, personal rule never take an equity loan for anything. My friends and family refinanced and took equity loans and were driving nicer cars and taking better vacations than me. When the financial crisis came most of them went broke and bankrupt. I wasn't even underwater. Their Escalade was a burden. My Honda Accord was paid for and I had money in the bank.
They get suckered in. The saying is "you haven't matured until you stop trying to impress others" says it all. The people they're trying to impress with fancy cars, clothes, jewlery and such will not save them when they end up homeless because of debt.
Yes and then those of us who had money saved, like you, were able to swoop in and buy a good house for several years after the crash. It was a buyers market if you had a down payment and weren’t paralyzed from moving by being underwater on a house
The reason lottery tickets sell SO well in lower income areas isn't because they don't understand the odds, it's because they truly feel that they would rather have a razor-thin chance of "making it" instead of "ZERO" chance, which is what they are utterly convinced of. How do I know? It used to be ME.
Watching these videos is making me appreciate my life more and more... Being debt free is a luxury in itself... I never realized how much debt people r in
The big question is if they are planning to move within two years, will the renovations increase the price of the house in excess of the cost of the renovations. Personally, if I were planning to move, I wouldn't go through the hassle of a major renovation unless I was going to realize a significant return on investment.
In excess of the renovation cost and interest on top of the principle by the date of repayment. I would cashflow anything urgent then just sell as is. The forever home is the one that matters. Dont bother with a loan.
I agree but it also depends on the neighborhood , if their house is the smallest and dumpiest on the block. But just adding square footage for themselves on the chance that it will increase value is not a good idea. Dave ALWAYS cautions against any renovations unless you can pay for it with cash.
From the rationale presented, it sounded like maybe these homeowners were being talked into improvements to increase the value of the house. We researched pricey home improvements and the only one that made sense in terms of increasing value was ADDING a bathroom. Unless an exiting kitchen or bathroom is seriously dilapidated, it does not seem to be worth the thousands to have a professional completely renovate it.
Spending 30,000 to get 15,000 or whatever the numbers are. In the end it's a bad idea. Wash and wax a car before you sell it but don't drop in a new engine.
Not having an airbag is a real problem, but that doesn't mean that you need a $40,000+ car. I bought a 7-year old Honda Accord 5 years ago my senior year of college for $9,500 and it is still driving great.
Bought a 2007 Mitsubishi outlander back to 2015, I still drive it, it runs smoothly, but it doesn’t look very nice because I hit a deer on the highway 4 years ago, the right side is completely misshapen.
It works so keep going. Found Dave’s method when I was in my early 20s. Pre-internet if you can imagine. Would read financial articles in a real newspaper 😉. I’m nearing retirement now and I’m set. I’ve lived a modest life but a stress free one. Because it’s been a debt free one once I followed the 7 baby steps.
I owe 2 more months on my car. The payment is due on the 29th, I've tried to pay it, at least by the 10th of every month. Why? Because it's "interest compounded daily" just like a mortgage, and if you can pay it off earlier in the month, or even make 2 motrgage payments (the equivalant of 13 total house payments per year) then it will be paid off years early! This is my last thing to pay off. By Nov I will be debt free.
I am only new to this channel, and I have been doing the stuff he is saying, buy second hand cars with cash, avoid any debt that isn't my mortgage which is at $9k owing and will be gone in a few months 🎉🎉🎉🎉 I have a net worth into the millions and I am only 38
I get where he is coming from, but wonder why anyone would send in a question when they get responses like this. I was raised lower middle class and my parents drilled into me many life lessons. The ones about money were to avoid debt. Save for what you want. Live below your means. Even when I was out on my own and barely making more than minimum wage I quickly had 6 months of take home in the bank.
My big financial mistake that I didn’t have a solution for at the time was buying a used car at a dealership in 2021. Cars with 200,000 Kms on it were going for around $15,000 from personal sellers or dealers. I was newly hired for a job that I needed a vehicle for. Bussing wasn’t an option for where I needed to get to and I had a deadline for starting my job a few days after I bought the car. I went for the cheapest car I could find in good condition and have been paying way too much for it ever since. I had to finance it which ended up being $25,000 after all the costs were added up. I’m down to $18,000 but I’m never going to let that happen again. I will use cars until they die.
Watching these videos keep me on my toes for real . Like Aht…Aht…. don’t you go get a new car & you don’t need one. Even though I’m good at staying on track & not doing foolish things I love watching these type of videos.
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!
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.
I have been investing in stocks for over 3 years now and I have made nothing less that $400k in ROI. My portfolio has grown exponentially. Will advise you consider stocks inveestment.
”Debra Ella Nicholas” is the lady's name. I first saw her on a goldman sachs' report, then on Smart Advisors, and immediately looked her up on the internet; it was the best decision I've made to stay afloat in these crazy times. She has been outstanding.
Those of us elders who were raised by Great Depression parents already knew all this. Never trust the banks. Borrow no money unless you have to for a small mortgage. Pay that mortgage off within 5 years or less. Pay cash for cars. Save every penny you can. Sadly, those lessons have died out and have to be relearned again.
A new home only cost 2x the salary and only 1 spouse could afford it. Now houses are more than 5x that and either 1 needs to make bank or dual-income is a must. Thanks elders 🫡
@@15KHPCLUB My first and only mortgage was 4 times my income and it was a very small home compared to what most people would accept today. I had to put 25% cash down and pay 5 1/2% interest. Two very small bedrooms, one small bath, no dining room and a small eat-in kitchen, no family room, just a small living room. I used a laundromat. Our expectations were much smaller too, no electronics, no expensive phones, and one modest car per middle class family, generally. You must be referring to the upper middle class and the wealthy. Most of us elders had very little in belongings and small wages. We just saved constantly. No credit cards either.
I'm 31 years old, making 28k a year and trying to find a way to get out of my poverty. I started to read books about finance to see if I could make a plan to get out of the situation. I hope it work while I watch your videos as well
I paid off my car and student loans making $24,000 5 years ago and no trust fund or help. It took hard work and couponing and doing without to achieve it. I was told I couldn't do it, but from 2014 to 2018 I paid off my $12,000 car and literally $9,993 in my remaining student loan debt. You can do it!!!!!!
It will bro. I make 24k a year, and did the same in reading alot of finance books to increase my income and what todo with it once I have it. Best books are richest man in Babylon and rich dad poor dad.
I can't tell you how much your podcast has and is teaching me. I'm a new listener and am so grateful to God that even at the age of 50 that I started to. I Praise God as I sit in my 2007 Toyota that I bought from a college student, happy as can be because I truly own it. All the best to you and your team.
THIS is what Ramsey Solutions needs to keep doing more of. In another RS video where someone asks about her college loans - the comment section is filled with people who *still* don’t get it, they don’t even sound like they *listen* to Dave. When I described that we paid off $145k in debt in 6.5 years, on a single income that went incrementally from a gross yearly of $42k to $52k - people actually called me a “liar”. Nope - we have always had cash-bought old cars, when mine died we remained at one car, we don’t pay for childcare since I’m home, we don’t eat out because that’s my job. No vacations, every tax return and “covid stimulus check” went as lump-sum payments towards debt principles. And $13k from the profit of selling our home went towards debt as well. We were debt-free, then bought my fathers house for him (he stayed!), and are on schedule to pay that mortgage off within only 5 years. We *literally* “live like no one else”... yet Dave Ramsey views still think it cannot be done. More content like this!
Yeah I LOVE this checklist. I don’t want to be “normal” like other broke people Don’t lease a car Don’t take out a second mortgage Don’t finance a vacation Paying off my student loans, listening to Dave every day
It's disappointing when close friends or family just say car payments and debt payments are a Way of Life! Just gotta perpetually be in debt To Make Money!
A lot of people are struggling out there. We are suffering and don't know where our next meal is coming from. Student loan relief would go a long way to helping us all out. We could pay bills and put food on the table. Why are Dave and Dr. John against us having that?
Problem with Ramsey is that he puts money first in his life. The goal for him is to "become a millionaire", so you can do what you wanna do. Aka, "Do what thou wilt". He tells people to move or get a new job or whatever to make more money to pay off the debt. For him freedom is more money and no debt. He talks of investing and making big money, but does not care what companies you invest in. Most Fortune 500 companies promote evil to make money whether it be a form of slave labor (Nike), Anti-Freedom (Apple, Microsoft, etc.), Medical experimentation, etc. (Pfizer), destruction of environment (Exxon), Pro LGBT (Target, Starbucks) or Military Industrial Complex (Lockheed Martin). All of the major companies make their money with some form of evil, which is where your retirement money comes from. As Christians we are to put God first and follow his principles which would keep us out of debt in the first place. Trusting God for whatever job, career, etc. is the way to go ultimately and would prevent us from making a lot of stupid decisions in the first place. Find a company like Timothy Plan that invests in companies after screening them for evils. Many times a simple life of good quality is superior than making a lot of money.
@@costco_pizzaI wonder if they would not be opposed to a student loan relief program if there were stipulations against the colleges slash universities.
This is not what "poor people" do. This is what broke people do. The larger the house, the harder it is to sell because you have a greatly reduced buyer base and the buyers have much higher expectations. You never improve your house beyond the neighborhood its in.
???? "You never improve your house beyond the neighborhood its in." $250K homes sold for $50K in 2010 People bought and started to improve. I don't intend to sell,
Thankfully the McMansions seem to be falling out of fashion. For decades, people who move into older and lesser kept neighborhoods--buying within their means--with the intent to repair or renovate their new home have been accused of "gentrifying an area." In some cities, the "gentrification" label is applied to modest or run down areas where homeowners do little more than paint the house and clear up the yard. Several houses like that in a run down or mostly rental property neighborhood will bring up the desireability and property values, and then the rents. Once the rents go up, those families living within their means and improving their neighborhoods get derided for their efforts or accused of "forcing out low income residents." It is ridiculous, really. (speaking of media reports about communities in Los Angeles or Pasadena, California)
My ex does stupid 💩 like this. I’m 10 years into my “new” marriage now and so ridiculously happy I can’t stand it. Being on the same page (the DR page) with someone is amazing. Being with an idiot child-man obsessed with status symbols and wasting money to impress strangers was horrible and stressful.
A lot of coworkers sound like your ex. They lease a $100K+ car and I park next to them with my 2010 corolla which is worth $11000. We both make it to and from work
As an ADHD/ASD 35 year old woman, i find that reducing everything in my life from items and things, to limiting social media are some of the best ways to help silence all of the noise in my head. Decluttering my whole life was the best thing I could do for my mental health. So much so that I'm hoping to become an interior designer specializing in creating spaces specifically designed for other neurodivergent people.
The US economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Things are strange right now. The US dollar is becoming less valuable because of inflation, and other powerful nations waking up to trade in their own currencies. Good thing is, a lot of people still turn to the Dollar because of the safety is somehow assures. I'm worried about my retirement savings of about $700k losing value because of these factors and more. Where else can we keep our money?
Well, I suggest you make a diversification plan because it's been harder to build a good portfolio that stays afloat since COVID. Personally, I garner knowledge from a brokerage Adviser whom I work with, and I've actually made over $450K with their help since February. Very effective defensive strategies are used to protect my portfolio and make profits despite the ups and downs.
My brokerage Adviser is BECKY LOU GORDON . She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.
All I want to do is live, do wtf I want, have money and don’t worry bout stuff like this. Some people do and they have all the cars, houses, and not worried bout this type of stuff
Hey everyone! Since i started following The Ramsey show I've been a member of this amazing society of investors for a while now, and I can't articulate how much it has transformed my life. We're not just here to earn money; we're here to uphold one another, grow collectively, and rejoice in every stride toward our financial aspirations.
I completely resonate with your experience,if you are talking about expert Mrs Bianca Faye Lindsey then yes ,working with her transformed my life also, suprised to see other people here work with her after her skills was talked about on the show i started working with her , Before, I was uncertain and made impulsive moves. With our her insights, I've learned patience and strategy. My investments are flourishing, and I'm on my way to achieving my financial goals. Let's inspire others to take control of their finances! Great show🤩
Your words perfectly express my feelings. Yes, I'm talking about the expert Mrs. Bianca Faye Lindsey. She didn't just teach me about the market; she helped me understand myself as an investor. I've found my niche, and my portfolio reflects that. Together, we're not just trading; we're building futures. Here's to making more informed decisions and sharing successes.
I am not a subscriber of this channel but this not the first time i am hearing about Mrs Bianca ,i heard her dedication to her client is remarkable and she does not only analyze market trends but also listen to the concerns of her clients ,the sad news is have no way to reach her or even get her attention heard she mostly booked
Her mentorship transformed my approach to investing. I used to chase quick wins, but now I focus on long-term strategies. The results speak for themselves - my portfolio is more stable, and I've achieved financial milestones I never thought possible,this show has been a blessing
Your story is inspiring , Expert Bianca impact goes beyond numbers; it's about personal growth. I've learned discipline, resilience, and the importance of continuous learning. Every trade is a lesson, and I've gained a wealth of knowledge along the way. Let's stay committed to evolving as investors and supporting one another. Here's to meaningful growth and lasting success!
Good one! And people who haven't done their research don't realize that the "panels" purchase likely does not include the batteries which are REALLY pricey and have to be replaced every 10 years or so.
Sign me up for a $1000 monthly plan. $30,000 for solar panels plus installation fee of $5000. Just to save $300 a month on electricity. It a smart move. It make sense to some people. 😂
It can make sense if you're down south where you get more direct sunlight and electricity is more expensive or unreliable (Texas has had some problems the last few years for example). Up north where I live, the numbers really don't add up.
And they look like dog shiit on your roof and make neighborhoods look like crap. They need to drill your roof! How dumb - you have a barrier for moisture called a roof so let’s make holes in it. It adds to the expense of re-roofing. (i dont care if salesman says your roof won’t leak. you’re NOT drilling my roof). I even heard where a roof got sooo hot, the house caught on fire. look it up. Solar panels are a joke. ROI on them sucks.
You Dave and Anthony O, have no idea how many lives you are changing every day for the better…with a grateful heart for teaching me how to not only tackle my debts but be money smart…thank you from Edmonton Canada 🇨🇦
I put $150 weekly towards taxes since we paid off the house. It irritates me that I have to do this. The rest is invested and saved. We live under our means so we can live like nobody else. We have no debt.We went out to dinner, and I left a huge tip for our waiter. The next time we ate at the restaurant, he greeted us. He's paying for his own college education and raising 3 children. He needed the break. I'd do it again in a heartbeat.
Dealing in absolutes is a clear red flag that the person advising you in such terms is going to mislead you and ultimately fail to consider all of your circumstances.
We just started reading your books. My husband and I have 35000 in debt. We don't own our own house, we rent and our debt is our car and credit card combined. The card is the highest APR, so we are paying that off quickly, once the card is paid off and closed, we are funneling the extra money to our car balance of 28000. So exciting!
If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you... prevent inflation
I started paying more attention to stock and learning more about online trades few days ago, thanks for the advice, I wish everyone will take this seriously!!
So true, thanks for bringing this up to my notice, the truth is this economy wouldn't be so bad if people indulge themselves more with various investments rather than just depending on their stipends and savings, because the economy wouldn't always remain as it was
I love what you have to say. I was fortunate to have many financial teachers when I was just starting out. They told me to put money into my 403B (I worked in a hospital) and gradually increase it. My boyfriend/future husband did the same with his 401K. When we got engaged/married, we NEVER used credit cards unless we could pay off the debt. We bought our 1st house after a failed 1st condo, but it was at a lower price point than what they told us "we could afford". We paid off our mortgage in 2016, and then put those "payments" into investments, which enabled us to retire early. It used to drive me CRAZY when my younger co-workers complained about living "paycheck to paycheck" and yet their 3 year old had an iPad, and I knew they had nice cars. OMG!!! What the heck! Live within your means, for crying out loud! Okay, I'll get off my soapbox, lol!
It did not sound odd to me. There is a whole line of thinking that a home becomes a source of lending, I know people who have taken out second mortgages or lines of credit to "save interest," consolidate loans, and renovate kitchens or bathrooms. "Make the Equity in Your Home Work for You," is a very familiar sales pitch. People fall for it.
Thanks to dave i have 2 houses pay off im going to buy the third house next year then i planing to pay my kids education and finally go back to we are come from at and live simply life there
We are middle class…but I paid my kids school fees, their apartment because university are to far for them to stay at home, and they worked in summer for their expenses so NO students loans for them, the best gift I could have given them…I was able to do that because we paid our house mortgage by paying a little bit more on the capital side of the mortgage each month and we paid our mortgage weekly instead of monthly and also no monthly car payment during the kids expenses period, everybody in middle class can do the same if they plan ahead this strategy …as for the cars, if you buy a new ones four years before the kids high school expenses, the cars loans will be finished when they do go and a 4 years old car don’t need to be replaced during the time your kids need your support…we just wanted to give them a good start in life and we did.
He had me until he said you can be a rich person by making $40,000 a year. Dave himself always says your income is the most important driver of wealth. He cant have it both ways
They aren't trying to time the market from my understanding, they are trying to add value by finishing the basement and making other upgrades. If they spend 50k to increase the value 100k even if they have to take out debt I'd say go for it!
@@epicgaming4946 The problem with that mindset is that most $50,000 renovations don’t translate into double the value down the road. Make the renovations because it adds more utility to your life, but don’t speculate. People have a gambling mentality with their primary residence that seems silly to me. If it isn’t worth $50,000 to you TODAY to add a new bathroom, it wont be worth $100,000 to someone else 5 years later.
![Noob To Max With DRAGON REWORK In Blox Fruits [FULL MOVIE]](http://i.ytimg.com/vi/LnBMOinoOvA/mqdefault.jpg)
My wife and I just finished paying off $94,673.35 this morning. Praise God and thank you Dave for these teachings! I’m 22 and she’s 23 so we are excited to start young.
Well done!
Congratulations I'm 25 single and just paid off my 55K home loan 3 days ago (95k house in 2020)
Yesss, you guys are awesome!
Awesome!!
I'm 18 and paid down my 795000 house last month.
Financial management is a vital subject that many avoid, often leading to future regrets.
Absolutely, financial management is crucial for long-term stability and peace of mind. Avoiding it can lead to missed opportunities and financial difficulties. It's never too late to start managing your finances wisely and securing your future.
Financial management is crucial for long-term stability and peace of mind. Avoiding it can lead to missed opportunities and financial difficulties. Working with a financial adviser has really helped me get on the right track and secure my future.
It's great to hear how beneficial working with a financial adviser has been for you! I'm definitely interested in working with a financial adviser myself to better manage my finances and secure my future.
'Rachel Sarah Parrish, is respected in her field. I suggest delving deeper into her credentials, as she possesses experience and serves as a valuable asset.
She looks to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Simple answer. Do not finish your basement if you are moving in 2 years. I don't care if you use cash or borrow. Save your money. Move in 2 years.
I absolutely disagree. I sold my house in 2016. I spent $60k to turn my unfinished basement into 2 more bedrooms, 2 more baths and a rec room. I sold my house for at least $150k more because the logistics between a 3 bedroom, 1 and 1/2 bath didn’t list nearly as much as a 5 bedroom, 3 and 1/2 bath home… with twice the living floor space and all new stuff in the basement. My $60k investment brought me at least $150k return in 6 months. Damn good deal !!
We were dirt poor as a family of 4 making $17,000 a year and $11,000 in debt. We followed Dave for years. Now we own a beautiful home with $265,000 in equity so far. My husband and I each have a retirement account. Our kids are grown. We'll be selling this home and purchasing a smaller home with no mortgage.
Well done
Beautifulll ... 👏👏👏
Well said and good luck on all your future endeavors!
Fantastic job!
I love hearing these stories!!! Congratulations!
One of the best feelings I've ever had was the day I was sitting in the dealership, waiting for my truck to get some repairs, and started talking to the dealer about getting a new truck.
He said, "Let's check your credit."
I said, "Nah, if I get something, it'll be cash."
The dumbfounded look on his face was the most priceless thing I've ever seen!
I didn't buy a new truck that day, because the repairs were a better option, but just seeing him so confused made me smile!
I remember when my grandpa bought identical but upgraded versions of the same farm truck. In cash.three times in his life that I was around.
He kept a savings account for big item purchases and cds he cashed in when he was making them.
My grandparents didn’t run around acting like wealthy ranchers but lived a steady quiet luxury of quality items and using their farm to create 80% of living needs. I think the only really oddity of money dumping was that my grandma didn’t bake bread because grandpa liked the white wonder sandwich bread so went to buy a fresh loaf every other day. lol
..................or when they bring in the finance guy and he (they) realize that you don't need him!!! Ha, ha, haaaaah..........
I’m not into cool cars like some people are, so I feel like even if I made six figures and was a net worth millionaire I’d still buy 4+ year old cars. More money for activities lol
The salesman had the same look when we told him we were paying cash 3 yrs ago on a used Outback. We were out of debt and intended to stay that way.
I confused someone that much when I paid cash for a lap top. 🙄 The guy actually got rude with me about how it “must be nice.” I told him I had been saving for it and he said “oh, I guess saving works.” Ridiculous!
“If you want to level up; you change your behavior, you change your habits , you change your views . Where there is no vision the people perish”
Preach 👏👏👏
Amen!
Yup. One habit I've been trying to change is making sure I get enough sleep. It sounds like a small thing, but I know it'll help me make calmer, smart choices.
@@Alexis-vv5bk Yes. And avoid Sin, Alcohol, Drugs, Fornication.
Dividends are dope. Personally, I sometimes use my dividends to buy other dividend and growth stocks for diversification instead of reinvesting in the same stock. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important. Salute for the content!
The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner
the best market strategy is to work with a credible investing coach. Since a while ago, I've been in touch with a coach, mostly because I lack the depth of understanding and mental toughness to deal with the ongoing market conditions. You lack the information necessary to succeed in a competitive market, not because you're doing anything wrong, but rather because of your lack of experience.
That's impressive! I could really use the expertise of this advisors, my portfolio has been down bad. how can I contact them?
'Rachel Sarah Parrish' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I looked up her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me.
"Rich people don't ask how much down and how much monthly, they ask how much " Love it ❤ .. very true!
I ask how much and then if the rates are great (
I’ve seen the private jet TikTok. Those people finance private jets lol so that’s a lie
Omg yeah I get embarrassed when folks start talking about "payments" so awkward.
@@breloominonion then they're not rich people. They're pretending to be.
@@breloominonion your source is "TikTok?"
People are facing a tough retirement. and it's even harder for workers to save due to low-paying jobs, inflation, and high rents. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire in.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
Mind if I ask you to recommend this particular coach you using their service?
thank you for this pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a calI session with her.
Most people in the world work until the physically can’t anymore, then rely on government and/or family
Citizens in wealthy nations will soon have that type of retirement
Going to get a lot worse.
I’m 63 years old and I can’t tell you how refreshing it is to see a brilliant young lady on the show. Hopefully that will help you reach a broader audience. It shouldn’t just be us older guys talking about money! Thank you ma’am for your intelligence and your insight! It is a pleasure watching you
As a black woman, I love being represented on this show.
@@AlyssaMonetMason I am white and it made me proud also! It’s about time everybody realizes that everyone has input and we have a lot of smart young people that have a lot to bring to the table! Thank you for your comment! I hope you have a wonderful day!
@@hirambond1432 I'm pleasantly surprised by your kindness. Thank you!
She sucked at first but is totally growing into the role. I plan to enjoy her on the show for many years.
@@Gregarious3 Yeah, I felt the same. I don't like being race bated. So, I had strong opinions about her. It's all good now.
Sep 2023 just did my last home payment!!! Like papa dave said before, I feel and smile differently now. Thank you, Mr. Dave.
Congrats!
Congratulations 🎉. That is a feeling like No other! Enjoy !😊
So awesome!
👏🏽👏🏽👏🏽🎉🏆
That is awesome!! Congrats!! Now it’s time to live and give like no one else!! 🥳
I am retired and have a paid off house and two paid off cars and no debt, My advise is to be out of loan debt before you retire! You will sleep real good every night.
Leasing a car? I very much disagree with that. It's like renting a house, you're paying money towards something and won't get anything in the end.
If you're referring to Dave mentioning it as a "middle-class behavior", keep in mind that such behaviors aren't being complemented or recommended. They're being lampooned and portrayed as dumb. Car leasing is dumb, as you pointed out, and Dave agrees with you.
It depends because you can also avoid maintenance and repairs and have a new car to keep the perception of having wealth, but it also depends on what you are leasing. If you are leasing a luxury vehicle, it can be $600 to $1000 monthly payment, but if you lease an economical car it can help you. There are pros and cons. I would lease probably a Honda or Mazda, but not lease a BMW or Mercedes Benz or Tesla because buying also means higher payments even if you buy used. But also it is best to find a good vehicle under $10,000 such as an older Toyota, Honda, Mazda, or Nissan and then use it for business so that you can claim your payments as a business expense.
No purchase is better than the peace of mind of having no debt.
I second this !
Amen to this
100%
SERIOUSLY
Love this
For those of us who are older, we remember when the banks encouraged farmers to take out loans for new equipment and mortgaged their farms. Then they called in the loans and farmers lost their land. This was in the 70s. My dad kept his old equipment and we were OK. But it was tragic for a lot of farmers. Don't trust bankers, lawyers or preachers. They all want your money.
Just like fees for infractions in neighborhood associations and city fines ... They run up the fines, then send the person to their lawyers who send them a huge bill. Next step: A lien on the fined person's property, and soon the lawyer becomes the new property owner. It is a SCAM.
Given the situation at the time it might have been a smart move. The bank is more than happy to loan out money with interests, its what they do and how they make BIG money.
The problem comes when the bank have to repay the money they let you loan, they dont have it and your dont have it. Either they take whatever you put up as security for the loan or they are out of buisness and likely as screwed as you.
No land is given for free. Why give it to the bank.
I find it very funny that my bank has been sending me letters encouraging me to get loans for YEARS, when I was on a low-ish income. I never responded to any of them. Suddenly I get a big bump in pay and they're sending out letters that say 'why not have a consultation with our wealth managers'...no thanks. I do my own investments without crazy management fees. No matter who they think you are, they're trying to siphon your money!
Have yal seen the new headline about the preacher who was just doin 'gods will' i think it was like sum type of investment scheme 😂
My wife grew up very poor, it was incredibly difficult to get her out of the mindset of "why don't we finance the ____?" phones, fridge, washer/dryer, bed, game system, house repairs, tools, etc. For me it's "ABSOLUTELY NOT" and since we have been together we have had $0 debt besides a 15-year mortgage that we will pay off in 10. Financially we are set. We may buy a Car in the next 2 years or so, but trust me it will be paid at least 50% in cash, but hopefully 100%. People do not understand the horrible implications of what financing/loans does to your monthly income long-term.
If I have the money to pay off my house in full right now, would it allow me to save more money in the long run rather than continue to pay the mortgage monthly for the remaining 22 years and would it be financially beneficial for me in the long run?
"Not counting the debt we had, we didn't have debt"
Why are gamers like this?
@@feedandseed-fl3er Do you mean the mortgage?
How did you influence your wife to think differently about money? What was your strategy?
The key is to finance with a lower interest rate than your investments are paying. I bought a 10K deck for 2 years no interest with Lowe's. I have that 10K sitting in a CD earning 5% interest. Why should I give Lowe's my money up front when I can draw interest on it for two years? That's just foolish. You have to play the system
My FIL had moderate income, invested well, denied himself nice cars and vacations, had tremendous income when he retired at 65...then...three months after retirement he was diagnosed with stage 4 pancreatic cancer and passed two months later. Live you life in moderation but enjoy yourself.
Oh man that makes me so sad. I'm with you. I do what I can to dig out of housing debt and have a retirement plan from work and a separate Roth FIA that I am maxing every year. Also listened to Dave to save a rainy day fund. I did buy a new care 15 years ago after housing crash so I got a good deal on it. Took 5 years to pay it off and so last 10 years I have driven my car with no car payment. I will need to think of another car at some point, but won't buy brand new next time. I'll purchase a pre-owned car for cash. My main goal is to pay off my house (have 10 years left on loan), and build my Roth FIA account. My kitchen is in terrible shape, but I don't plan on getting a HELOC. I find that a distasteful idea. My Dad does that and while he has retirement accounts, an office building that generates revenue, and social security, he also has a second mortgage. I think I'll work to find cash or sell a few items to get kitchen done. At the moment, my house is work at 290k and I owe less than 80k on it with a 5.5 fixed interest rate.
Yeah this is why I don’t like the “live down to the bone” money mindset. It’s really unhealthy and you lower your quality of life to prepare for a potential future.
THANK YOU!! I understand saving but damn, are we suppose to sit around, work non stop, and then hope we're able to do the things we want to do when (or if) we get old?? My uncle did that and then my aunt got dementia.
Yup. Many people have this "golden years" mentality that once I retire I'm going to have all this money and travel the world with it. But will you have the energy? Will your health be intact enough to properly enjoy it? Will you even live that long? Not to mention much of the extravagance that we desire in our youth tends to dwindle away in our later years in favor of the simpler things in life anyway.
I have more student loan debt than I probably should because I chose not to work during my college years (I worked full time during the summers and like 5-10 hours per week some semesters, but mostly didn't work)...but I also know that if I had worked more in college, my college experience would have been diminished. I got to do a lot of traveling and participate in a large number of unique activities with people I'll never forget. I'm still paying for it now when I probably "shouldn't" be, but I have no regrets about it. I wouldn't do anything differently from the financial angle if given the chance to do it again.
Very similar to your experience. My GrandFIL had dementia and needed full time care.
They started paying $6k month and went up to $10k to live in the same facility that his nursing home neighbor paid $0 for.
Hers was all subsidized through the government.
They blew through their most of the savings, and left grandma with very little.
To attain upper-class wealth, a wise individual recognizes that building financial success requires smart investments, strategic tax planning, and informed decision-making. Although the stock market offers growth potential, effectively seizing these opportunities demands both skill and expertise.
Stock investments can offer great potential, but it's essential to approach them with caution. I recommend consulting a financial advisor who can help you determine the optimal times to buy and sell.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
How can I reach this advisor of yours? because I'm seeking for a more effective investment approach on my savings
My CFA ’ Melissa Terri Swayne’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thank you for saving me hours of back and forth investigation into the markets. I simply copied and pasted her full name into my browser, and her website came up first in search results. She looks flawless.
Yes I agree. Im a single 30yo and I live alone in a decent 2 bedroom condo in CA( garage, inside laundry room, fireplace, walk-in closets, and other amenities) even though I only make $55,000 annually. Most people either live with their partners/so or roommates (sometimes total strangers). I drive a 2015 Mercedes-Benz which I own, I don’t make monthly payments. That’s primarily the reason why I am able to afford living alone. I don’t have ANY debt. Paid off all my CC and also my car. Most of us don’t consider this a debt when in fact it is the most common type and usually the highest! If I had continued to make my monthly payments there is NO WAY I could afford my current lifestyle . I advice people (like me) who plan to keep their car for 10+ years to PAY IT OFF QUICK, IN FULL!! Even if (like me) you financed for 5 yrs, I paid off mine in a little over 18 months. Saved thousands on interest and gained freedom, SPECIALLY financially.
My final federal student loan payment went out this month! $20K I will never owe again. I made payments during the pandemic and I’m so proud to be part of the 1% who did. Thank you Dave and everyone at Ramsey Solutions. Next snowball is my car! 😊 Trying to get out of middle class 🤞
Just curious why would you make payment during pandemic when they gave you 0% rate? I paid off mine as well but I only did when the interest rate was not 0
Paying it off at 0% means every dollar goes to the principal. Why would you not take that deal?
@@Ayy12366unclear on the concept. You pay it off faster when you don’t have interest. Why would you want to pay interest? 🤦🏻♀️
@@rosc2022my wife had $21k in student loans going into 2020.
Instead of making the payments we set it aside in a high yield savings account as additional security during that time. At the beginning of 2022 we put the money in Ibonds that yielded 6%-9% over the last 1.5 years. Now the money is back into a high yield savings that is earning more than the interest on the student loans.
Congratulations, you are such a winner in life!
I don't know her name but she brings up an excellent point. If Cindy is planning to move in 2 years why is she trying to do any non-essential work on the house? Let the new owners decide if they want to finish the basement or update the deck. Home repairs are something you should do for your long term enjoyment, not to bring up the property value. In the overwhelming majority of cases, the increased property value is less than the $$ you put into the project. You're better off keeping your money.
Dave ignores the 2 year move timetable completely.
I retired with 6 figure pension. Zero debt. Except one thing. 52k equity line on a property in the mountains. I couldn't sleep at night. Didn't want to pull money from investments. Went back to work at something I love. Paid off the loan. Freedom!
Dave, "forever and ever, Amen" 😂 I loooove Dave, his realness, bluntness, and no nonelsenseness ❤❤. He cares! Thank you for this DR! The Finance Doctor!
What a video. Not one lie told especially about the actions of Poor People.
Apparently there is a cost of living crisis, not in my debt free house! No debt, no mortgage! Thanks Dave from Scotland!!!
Cost of living increases hit harder when a lot of debt is carried beyond housing/mortgage (e.g., car, credit cards, student or other loans).
Hello to lovely Scotland from California.
@@user-mv9tt4st9k Hello!
Me too
Actually, it's good to be in debt when inflation hits, because inflation lowers the value of debt. Savings are harmed by inflation.
@@me-myself-i787 Except now that you have to work harder to pay-off your debt with your less-than-powerful (i.e. inflation affect) income.
100% agree. When I was 26 I bought my 1st apartment (2016), so instead of upgrading to a new iPhone I was paying my mortgage! Since than I have bought and sold 2 more apartments (instead of buying clothes and spending on stupid stuff). Which after selling last year left me with one 100% paid flat and 50k euro cash! It's all about the money habits! Btw I did this following Robert Kiyosaki adviced since I started it all with 10 euro in my pocket! However, I absolutely love Dave advices too, so now that I am 33 years old I follow both of their advices to some extend. Also one of my fave books is the "Millionaire next door"
So true, all you both said. You really don't need the newest and nicest stuff to be happy. Happiness can be sleeping at night not worrying that the bank is gonna come take back everything you have!
My vehicles are a 2002 truck and a 1992 conversion van. The truck has over 400k miles on the original engine and just replaced the transmission. An engine compression check was a 👍. The van has cost me about 11k in mechanical repairs, which I paid in cash for every time, over the last few years but has been replaced bumper to bumper and it's a 👍 now. I will NOT be replacing them with brand new 40k-100k new crap unless I have absolutely no choice. I'm debt free except for my mortgage which I am paying down as fast as possible by paying extra principal every month. Life is good. I'm 66 years old and hope to leave a actual inheritance for my children and grandchildren that I have raised since they were born.
Why would they do any “remodeling” when they have so much equity and they’re planning to move anyway? Wtf?!
I am so thankful for your teaching. Jan 2021 we began using Baby Steps. We are old. Early 60's. But we are so much better off. We would have been screwed if we didn't change. Praise God. Praise my son who shared Dave initially. And praise my hubby who got on board to hit it and git it!!!!! It has helped our relationship tooooo! Major bonus! Debt is dumb! ❤
Living within our means still a tough concept to absorb for most Americans in our consumer society.
What makes me sad about families striving to live within their means is that society seems to have a nasty term for when families move into older or modest affordable neighborhoods and begin renovating and beautifying homes: "Gentrification." How dare families buy within their budget, make their home nice, and increase property values. 😂😂
Not for me because I don't want to work more than 20-30 hours a week.
Americans are like a bunch of zombies who are constantly and aimlessly looking for stuff to buy. It’s hilarious. Dummy’s.
@@user-mv9tt4st9k I mean, building a 6,000 sq ft mansion in Newark, NJ is inherently stupid and a fake rich move.
@@joeplem5329 Lol let’s see how far you go with that bum mentality 😂
No debt aside from medical bills but they only added up to less than 5 grand. Drive old cars , live in a trailer, for now, not by choice. At 57 trying to find my way back to middle class. We've been through alot but well come out of it by Gods help and the decision i make. I don't care to be rich, just to be ok. But you guys are right about what we do with our money puts us in a bad place. Im prime example. Hopefully ive learned from my bad choices and can look forward from here. Thanks for your channel.
Good luck. I hope you overcome all your battles and will be blessed to be better off in JESUS name Amen 🙏🏻
We paid off our home in 2017 at 15 years, three months. Once you pay off your mortgage you have tons of money. We are debt free and power saved for years after that so Covid was nothing but a nice vacation. Thanks, Dave!
What's the gender split on the income? Is this "We" like Lennon-McCartney or more like Wham!
.my brother passed away leaving a equality loan with interest only. So we had to pay the loan back at closing and sell the house. Don't know what he used the money for. Not a good move
There with you! That is true Freedom!!!!
@@raygordonteacheschess5501WARNING….Snowflake Troll on the loose!!!!
What is your income?? Most Middle income people cannot afford a 15 yr. Mortgage. I never advocate debt and spending more than you make. I don't need to call an arrogant person to tell me not to spend more than you make. Not rocket science.
For the past 4 weeks, I have been viewing this channel, and I feel amazing, like I have wise and rich friends that are teaching me how to become wealthy, during this time I have paid 4k in debt and I have my Emergency Fund saved. I am working with the everydollar budget, and project to be debt free in about 6 months if not less than that. Baby Steps, one step at a time.
I am from South Africa. Thanks to you Dave i am at peace
No credit card debt
No car payment- bought it as a second hand car
No personal loan
Only home loan payment. Im in a much better financial state. All thanks to you.
South Africa? You may be doomed regardless!
@@seminolewind158 What do you mean? How is financial literacy different in South Africa?
@@tiisetsomohapi8779 Imagine some fiends breaking in your house and claiming every buck you Ramsey’d! Possible? Nay, probable!
@@seminolewind158and am from South Africa
@@linahmahlangu7064 Do your best to leave as soon as possible!
The problem with so many people is they constantly have the urge to sell and buy a bigger house every 5 years, always in debt, because they feel the need to keep up with the Jones. I bought my first and only house in 1987, and am still living in that house. I am now a multi millionaire investing all that extra money for all those years.
This is one of the best shows I've seen by Dave and I've listened to 100's. This is basically everything you should and shouldn't do in a nutshell.
I screwed up and took out a home equity loan and it went from 4.5 percent to 10 percent. We are dying financially now.
Praise be and blessings to Dave. My wife and I are both 19 and just paid off our university tuition in advance totaling $387,536.29. We are sophomores and are now debt free and saving up to buy a data center for our AI business
Baby Steps LFG!!
I love Dave and Jade and the whole team!!! God bless you guys!!
I strongly suspect that the person offered interest-only for 10 years thinks they don't have to pay back the principal. Not understanding the value of the equity in the home bespeaks someone who really needs something like Financial Peace University.
Well they would be in for a rude awakening after 10 years rolled around.
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $2m with the help of my advisor from an initial $350k investment.
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
Her name is. 'Lucinda Margaret Crist’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
These 2 are a force. Great matchup
From the UK , Dave saved my life
Thanks for all you do , I wish you could get phone calls from The UK aswell
Hi, Im from the uk and was always interested in this info but I still feel intimidated at times about my financial 'rights' if you will ..I mean the feeling of feeling I have a right to rise above middle class and have that sense of stability and peace ..Can you share what you implemented that changed your life please?
The problem we have is because Most people always taught that " you only need a good job to become rich " . These billionaires are operating on a whole other playbook that many don't even know exists.
Money invested is far better than money saved , when you invest it gives you the opportunity to increase your financial worth.
" It is remarkable how much long term advantage people like us have gotten by trying to be consistently not stupid , instead of trying to be very intelligent."
The wisest thing that should be on everyone mind currently should be to invest in different streams of income that doesn't depend on government paycheck, especially with the current economic crisis around the world. This is still a time to invest in Stocks, Forex and Digital currencies.
I also keep seeing lot's of people testifying about how they make money investing in Stock, Forex and Crypto Trade(Bitcoin) and I wonder why I keep loosing. Can anyone help me out or at least advice me on what to do.
Even with the right technique and assets some investors would still make more than others. As an investor, you should've known that by now that nothing beats experience and that's final. Personally I had to reach out to a stock expert for guidance which is how I was able to grow my account close to $35k, withdraw my profit right before the correction and now I'm buying again.
No car payment
No credit card
No house payment
Almost debt free.
Emergency fund saved
Railroad and military retirement!
401k and stocks. Let's go!
My ex wife said I love Dave Ramsey more than her. Yup!👍🏾
Everything you listed... good job except the credit card part. Get a credit card but use it in a responsible way. Unless you're worth millions or billions of dollars... you still need a good credit score.
Been that for yrs.
@@joelkaben Nope! I rent a house and I've rented a car all without credit or credit cards. You don't need credit. Credit just makes things a bit more convenient.
@@ndwhitlow the person with a good credit score has a massive attention over you, so you still need it.
You need some BTC. If you don’t have at least one whole BTC now, later it will be out of reach. BTC to 5 Mil at least.
There are a few changes I would like to make to my home. Nothing "needs" to be done though. I am focusing on paying the house off, which should be about four years. ONLY THEN will I look at making any cosmetic upgrades.
We had an interest only home equity loan on our previous home but we made a point of paying extra on it every month towards the principal. At the end of 10 years, ours then automatically defaulted to a traditional installment loan with principal and interest amortized with the balance. Fortunately, we paid it off before it reached that point. It's all about discipline! Agree completely with Dave about banks. I used to work for one many years ago and it's all about making money and it's gotten way worse over the years.
I treated myself to a new car . 20 years later I still have it with less than 70, 000 miles. I am debt free and blessed. BUT for me I realize that if was diagnosed with a serious health condition I would be screwed because of healthcare costs despite having insurance. I am also starting to believe the saying "There is nothing more stupid than a person living poor in order to die rich."
This needs more exposure
Does your health insurance not have an out of pocket maximum per year?
Always opt for an out-of-pocket max on your health insurance, ideally if that includes out-of-network providers. Even if it is something like $5000 for the year. That way you're not paying for Healthcare in perpetuity. And while on that subject, I believe that we need to become more educated on health insurance in general. Oftentimes we don't think about it or understand our plans, especially when it is obtained through our employers.
What kind of car?
LOVE THIS! Smart in a nutshell. I love how Jade and Dave have developed this rhythm like they read each other's minds! Jade is the most articulate with fast thinking on her feet of all Dave's sidekicks (even Rachel - she's hard to listen to as she stammers around and has trouble finishing her sentences_)
Yes I agree because they have timing and also chemistry. This is like two brainiacs, bouncing off of each other doing dialogue in a movie.
I love Jade. She's great at articulating her points without shaming people. Dave can be overly harsh, and I don't think it always registers.
I've never seen any conversation where she had anything of value to add, but that's pretty much true for all of them. It's the Dave show, the others are just there to nod their heads and make pointless comments.
Well that's the point isn't it? Dave probably wants to retire sooner than later so he is grooming his young acolytes to take over. Of course they parrot his principles but he also shows respect when they have a unique point of view from their own experience. He can't exactly clone himself so you just have to accept a new generation.@@mplslawnguy3389
@@mplslawnguy3389 It makes it more fun with them in these videos though I think.
I opened an ROTH IRA at the age of 27 and put the maximum amount possible for 2024. I feel foolish for letting my life fall into order so slowly. The issue at hand is how to invest the funds most profitably in order to save for retirement
You're 27 years old. It is alright. The compound interest period has begun. To build a strong foundation and reduce risk while maximizing gain, I think all investors should begin with ETFs. From there, they should diversify across a range of asset classes and continue to invest consistently and systematically
You do not need to locate the next NVIDIA to be successful in investing. Simply choose top tier ETFs and work with a financial counselor, as I did. I turned $90,000 into $53,000 in annual dividends, which is a huge accomplishment for me today
Impressive! I admit I'm scared about retirement as I turn 60 on my next birthday. I need to ensure I have enough money to survive on. How can I consult your advisor? My retirement account isn't performing well
''Aileen Gertrude Tippy'' is the licensed advisor I use. Just research the name online you will find necessary details to work with to set up an appointment
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her
Preach it! Loved the commentary on class behaviors.
Yep. There's a reason advertisers put certain commercials on at certain times of the day and evening. They know their demographic and target audience. Rent to own, Payday loans, high interest used car dealer commercials (no credit, bad credit, no problem) and so on in the late morning and early afternoon, the new car ads during the evening news, the luxury car ads during sporting events, and so on.
This question is a pefect example of how financially ignorant this country is. "What is the benefit to having all this equity?" Wow, just wow. They prioritize teaching so much nonsense in school these days. Yet so many schools refuse to teach basic finacial literacy.
I got so frustrated with that line. The "benefit" to having all that equity is NOT having that much in debt. That's literally the point of owning things, so you don't have to pay someone else a monthly bill to "rent" them
Agreed. However, it is also a parents responsibility to teach their children financial responsibility and lead by example. My parents were frugal and I still live by that, but did not talk about financial matters in general. I learned everything myself through my own research. The problem is that so many people don't take the initiative then blame everyone else for not teaching them.
Do you really want schools, who can't control their own spending, to teach financial literacy. That's a parent's responsibility.
Maybe schools needed to stop teaching basic economics and money management so that the kids would not start asking questions at student loan application time? 😂😂
@@user-mv9tt4st9k Good point 🙂🙂
I don’t have much debt under $5,000 total between my wife and I. We drive vehicles that we bought out right and as a mechanic we do save a lot with my knowledge and labor when it comes to vehicle maintenance/repair. We don’t save much though and don’t quite live check to check but we spend too much on the weekends with the kids and such. We rent but are working towards buying a house for under $150,000. I just started contributing to our works 401K plan and they match up to 3% gross so I just started doing the maximum amount I can and still have them match. Dave’s advice is well needed.
Back in 2007 most everyone was using their home as an atm. I had a hard, personal rule never take an equity loan for anything. My friends and family refinanced and took equity loans and were driving nicer cars and taking better vacations than me. When the financial crisis came most of them went broke and bankrupt. I wasn't even underwater. Their Escalade was a burden. My Honda Accord was paid for and I had money in the bank.
They get suckered in. The saying is "you haven't matured until you stop trying to impress others" says it all. The people they're trying to impress with fancy cars, clothes, jewlery and such will not save them when they end up homeless because of debt.
Yes and then those of us who had money saved, like you, were able to swoop in and buy a good house for several years after the crash. It was a buyers market if you had a down payment and weren’t paralyzed from moving by being underwater on a house
The reason lottery tickets sell SO well in lower income areas isn't because they don't understand the odds, it's because they truly feel that they would rather have a razor-thin chance of "making it" instead of "ZERO" chance, which is what they are utterly convinced of. How do I know? It used to be ME.
I won the Powerball last night. $4. Yay!
The power of hope...
Congrats! Don't spend it all in one place!@@bite-sizedshorts9635
A "gazillion to one" chance, versus the ZERO chance they are totally convinced of. Been there, done that. I truly do sympathize. @@channell11
My mom spoke those words to me to convince me to buy lottery tickets. ❤ "at least you'd have a chance."
Watching these videos is making me appreciate my life more and more... Being debt free is a luxury in itself... I never realized how much debt people r in
The big question is if they are planning to move within two years, will the renovations increase the price of the house in excess of the cost of the renovations. Personally, if I were planning to move, I wouldn't go through the hassle of a major renovation unless I was going to realize a significant return on investment.
In excess of the renovation cost and interest on top of the principle by the date of repayment.
I would cashflow anything urgent then just sell as is. The forever home is the one that matters. Dont bother with a loan.
not likely...sell it as is like the other commenter shared
I agree but it also depends on the neighborhood , if their house is the smallest and dumpiest on the block. But just adding square footage for themselves on the chance that it will increase value is not a good idea. Dave ALWAYS cautions against any renovations unless you can pay for it with cash.
From the rationale presented, it sounded like maybe these homeowners were being talked into improvements to increase the value of the house. We researched pricey home improvements and the only one that made sense in terms of increasing value was ADDING a bathroom. Unless an exiting kitchen or bathroom is seriously dilapidated, it does not seem to be worth the thousands to have a professional completely renovate it.
Spending 30,000 to get 15,000 or whatever the numbers are. In the end it's a bad idea. Wash and wax a car before you sell it but don't drop in a new engine.
Not having an airbag is a real problem, but that doesn't mean that you need a $40,000+ car. I bought a 7-year old Honda Accord 5 years ago my senior year of college for $9,500 and it is still driving great.
Most every car has airbags post 1995, IDK many people driving cars older than 1995
Bought a 2007 Mitsubishi outlander back to 2015, I still drive it, it runs smoothly, but it doesn’t look very nice because I hit a deer on the highway 4 years ago, the right side is completely misshapen.
@@MrJimmy3459 Not anymore thanks to Cash For Clunkers.
Watching this at a point of really needing a miracle. Thanks for this teaching. 🙏
It works so keep going. Found Dave’s method when I was in my early 20s. Pre-internet if you can imagine. Would read financial articles in a real newspaper 😉. I’m nearing retirement now and I’m set. I’ve lived a modest life but a stress free one. Because it’s been a debt free one once I followed the 7 baby steps.
It is very important to help your community to stop the poverty.
I owe 2 more months on my car. The payment is due on the 29th, I've tried to pay it, at least by the 10th of every month. Why? Because it's "interest compounded daily" just like a mortgage, and if you can pay it off earlier in the month, or even make 2 motrgage payments (the equivalant of 13 total house payments per year) then it will be paid off years early! This is my last thing to pay off. By Nov I will be debt free.
I am only new to this channel, and I have been doing the stuff he is saying, buy second hand cars with cash, avoid any debt that isn't my mortgage which is at $9k owing and will be gone in a few months 🎉🎉🎉🎉 I have a net worth into the millions and I am only 38
Why!! Honestly!!! Why would you call Dave Ramsey and ask him about taking out a loan? Are you new to this planet?
I used to work at a bank a couple things I learned were NEVER touch your equity and NEVER get an interest-only loan.
I get where he is coming from, but wonder why anyone would send in a question when they get responses like this. I was raised lower middle class and my parents drilled into me many life lessons. The ones about money were to avoid debt. Save for what you want. Live below your means. Even when I was out on my own and barely making more than minimum wage I quickly had 6 months of take home in the bank.
my car is 21... i love it... i own a house... i am debtfree... i love it. not much money, but happy....
I want to be like u within the next year or 2
Guess what folks…if you still have a mortgage on a home or loan on a car….YOU DON’T OWN IT. The bank does
Exactly. People say they own their home, yet paying a mortgage. Hah! One step above being a renter? Still can get kicked out.
If you own your home and don't pay your taxes.... Guess what?
My big financial mistake that I didn’t have a solution for at the time was buying a used car at a dealership in 2021. Cars with 200,000 Kms on it were going for around $15,000 from personal sellers or dealers. I was newly hired for a job that I needed a vehicle for. Bussing wasn’t an option for where I needed to get to and I had a deadline for starting my job a few days after I bought the car. I went for the cheapest car I could find in good condition and have been paying way too much for it ever since. I had to finance it which ended up being $25,000 after all the costs were added up. I’m down to $18,000 but I’m never going to let that happen again. I will use cars until they die.
Watching these videos keep me on my toes for real . Like Aht…Aht…. don’t you go get a new car & you don’t need one. Even though I’m good at staying on track & not doing foolish things I love watching these type of videos.
Amen Dave! Live within your means and save…..only took me 43 years to figure it out.
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!
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.
Exactly. That's my major concern and what kind of profitable business or investment can someone do with the current rise in economic downturn
I have been investing in stocks for over 3 years now and I have made nothing less that $400k in ROI. My portfolio has grown exponentially. Will advise you consider stocks inveestment.
I find this interesting. Could you please provide me with the means to get in touch with your Adviser? I am concerned about my dwindling portfolio.
”Debra Ella Nicholas” is the lady's name. I first saw her on a goldman sachs' report, then on Smart Advisors, and immediately looked her up on the internet; it was the best decision I've made to stay afloat in these crazy times. She has been outstanding.
Really love this video I wish it was 10X longer and you ranted and listed more traits
Those of us elders who were raised by Great Depression parents already knew all this. Never trust the banks. Borrow no money unless you have to for a small mortgage. Pay that mortgage off within 5 years or less. Pay cash for cars. Save every penny you can. Sadly, those lessons have died out and have to be relearned again.
A new home only cost 2x the salary and only 1 spouse could afford it.
Now houses are more than 5x that and either 1 needs to make bank or dual-income is a must.
Thanks elders 🫡
@@15KHPCLUB My first and only mortgage was 4 times my income and it was a very small home compared to what most people would accept today. I had to put 25% cash down and pay 5 1/2% interest. Two very small bedrooms, one small bath, no dining room and a small eat-in kitchen, no family room, just a small living room. I used a laundromat. Our expectations were much smaller too, no electronics, no expensive phones, and one modest car per middle class family, generally.
You must be referring to the upper middle class and the wealthy. Most of us elders had very little in belongings and small wages. We just saved constantly. No credit cards either.
Indeed it's a must to learn those things at an early age
Save money kids. I'm 52 made great money in my youth . Never saved a dollar. Well my savings has 20$ in it. 6$ in my checking.
I'm 31 years old, making 28k a year and trying to find a way to get out of my poverty. I started to read books about finance to see if I could make a plan to get out of the situation. I hope it work while I watch your videos as well
You will make it have faith and work hard👐😊
I paid off my car and student loans making $24,000 5 years ago and no trust fund or help. It took hard work and couponing and doing without to achieve it. I was told I couldn't do it, but from 2014 to 2018 I paid off my $12,000 car and literally $9,993 in my remaining student loan debt. You can do it!!!!!!
dont buy like a poor man.
It will bro. I make 24k a year, and did the same in reading alot of finance books to increase my income and what todo with it once I have it. Best books are richest man in Babylon and rich dad poor dad.
@@traciejones6491living rent free?
I can't tell you how much your podcast has and is teaching me. I'm a new listener and am so grateful to God that even at the age of 50 that I started to. I Praise God as I sit in my 2007 Toyota that I bought from a college student, happy as can be because I truly own it. All the best to you and your team.
THIS is what Ramsey Solutions needs to keep doing more of. In another RS video where someone asks about her college loans - the comment section is filled with people who *still* don’t get it, they don’t even sound like they *listen* to Dave.
When I described that we paid off $145k in debt in 6.5 years, on a single income that went incrementally from a gross yearly of $42k to $52k - people actually called me a “liar”. Nope - we have always had cash-bought old cars, when mine died we remained at one car, we don’t pay for childcare since I’m home, we don’t eat out because that’s my job. No vacations, every tax return and “covid stimulus check” went as lump-sum payments towards debt principles. And $13k from the profit of selling our home went towards debt as well. We were debt-free, then bought my fathers house for him (he stayed!), and are on schedule to pay that mortgage off within only 5 years. We *literally* “live like no one else”... yet Dave Ramsey views still think it cannot be done.
More content like this!
Dave is a Genius for Hiring Her!!!! That Damn Ramsey Wins Again!!!
Jade is awesome!
@@mathematician1234 anything is possible, wishing her much success.
Yeah I LOVE this checklist. I don’t want to be “normal” like other broke people
Don’t lease a car
Don’t take out a second mortgage
Don’t finance a vacation
Paying off my student loans, listening to Dave every day
It's disappointing when close friends or family just say car payments and debt payments are a Way of Life! Just gotta perpetually be in debt To Make Money!
A lot of people are struggling out there. We are suffering and don't know where our next meal is coming from. Student loan relief would go a long way to helping us all out. We could pay bills and put food on the table. Why are Dave and Dr. John against us having that?
Problem with Ramsey is that he puts money first in his life. The goal for him is to "become a millionaire", so you can do what you wanna do. Aka, "Do what thou wilt". He tells people to move or get a new job or whatever to make more money to pay off the debt. For him freedom is more money and no debt. He talks of investing and making big money, but does not care what companies you invest in. Most Fortune 500 companies promote evil to make money whether it be a form of slave labor (Nike), Anti-Freedom (Apple, Microsoft, etc.), Medical experimentation, etc. (Pfizer), destruction of environment (Exxon), Pro LGBT (Target, Starbucks) or Military Industrial Complex (Lockheed Martin). All of the major companies make their money with some form of evil, which is where your retirement money comes from.
As Christians we are to put God first and follow his principles which would keep us out of debt in the first place. Trusting God for whatever job, career, etc. is the way to go ultimately and would prevent us from making a lot of stupid decisions in the first place. Find a company like Timothy Plan that invests in companies after screening them for evils.
Many times a simple life of good quality is superior than making a lot of money.
Wait a minute... People actually finance vacations? Are you serious?
I can understand financing business trips but geez....
@@costco_pizzaI wonder if they would not be opposed to a student loan relief program if there were stipulations against the colleges slash universities.
Yes it’s the worst loan ever, we are just about to pull ourselves out of a loan like this . NEVER Again!!!!
This is not what "poor people" do. This is what broke people do. The larger the house, the harder it is to sell because you have a greatly reduced buyer base and the buyers have much higher expectations. You never improve your house beyond the neighborhood its in.
????
"You never improve your house beyond the neighborhood its in."
$250K homes sold for $50K in 2010
People bought and started to improve.
I don't intend to sell,
@@aolvaar8792 yes. House prices don't go up because of improvements. It's inflation driven and the economic value of the businesses close by
Thankfully the McMansions seem to be falling out of fashion. For decades, people who move into older and lesser kept neighborhoods--buying within their means--with the intent to repair or renovate their new home have been accused of "gentrifying an area." In some cities, the "gentrification" label is applied to modest or run down areas where homeowners do little more than paint the house and clear up the yard. Several houses like that in a run down or mostly rental property neighborhood will bring up the desireability and property values, and then the rents. Once the rents go up, those families living within their means and improving their neighborhoods get derided for their efforts or accused of "forcing out low income residents." It is ridiculous, really. (speaking of media reports about communities in Los Angeles or Pasadena, California)
@@aolvaar8792That's area dependent. It varies by location.
@@user-mv9tt4st9k Pretty sad that putting the house back in the respectable condition it was meant to be in is considered gentrification.
My ex does stupid 💩 like this. I’m 10 years into my “new” marriage now and so ridiculously happy I can’t stand it. Being on the same page (the DR page) with someone is amazing. Being with an idiot child-man obsessed with status symbols and wasting money to impress strangers was horrible and stressful.
Congratulations. May I ask what the DR page stands for, please?
@@ALinn-vr3nl Dave Ramsey!
@@ALinn-vr3nl Dave Ramsey, I suppose
A lot of coworkers sound like your ex. They lease a $100K+ car and I park next to them with my 2010 corolla which is worth $11000. We both make it to and from work
@@satvirvia1561 I love Toyotas and suburu! They last forever!
As an ADHD/ASD 35 year old woman, i find that reducing everything in my life from items and things, to limiting social media are some of the best ways to help silence all of the noise in my head. Decluttering my whole life was the best thing I could do for my mental health. So much so that I'm hoping to become an interior designer specializing in creating spaces specifically designed for other neurodivergent people.
I absolutely love her. She and Dave both really get it. God bless you!
The US economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Things are strange right now. The US dollar is becoming less valuable because of inflation, and other powerful nations waking up to trade in their own currencies. Good thing is, a lot of people still turn to the Dollar because of the safety is somehow assures. I'm worried about my retirement savings of about $700k losing value because of these factors and more. Where else can we keep our money?
Well, I suggest you make a diversification plan because it's been harder to build a good portfolio that stays afloat since COVID. Personally, I garner knowledge from a brokerage Adviser whom I work with, and I've actually made over $450K with their help since February. Very effective defensive strategies are used to protect my portfolio and make profits despite the ups and downs.
I find this interesting. Could you please provide me with the means to get in touch with your Adviser? I am concerned about my dwindling portfolio.
My brokerage Adviser is BECKY LOU GORDON . She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision.
Becky appears to be a true authority in this field. Checked out her page on the net, went through her profile and I can say she's superb.
All I want to do is live, do wtf I want, have money and don’t worry bout stuff like this. Some people do and they have all the cars, houses, and not worried bout this type of stuff
Hey everyone! Since i started following The Ramsey show I've been a member of this amazing
society of investors for a while now, and I can't articulate how much it has transformed
my life. We're not just here to earn money; we're here to uphold one another, grow
collectively, and rejoice in every stride toward our financial aspirations.
I completely resonate with your experience,if you are talking about expert Mrs Bianca Faye
Lindsey then yes ,working with her transformed my life also, suprised to see other people
here work with her after her skills was talked about on the show i started working with
her , Before, I was uncertain and made impulsive moves. With our her insights, I've
learned patience and strategy. My investments are flourishing, and I'm on my way to
achieving my financial goals. Let's inspire others to take control of their finances!
Great show🤩
Your words perfectly express my feelings. Yes, I'm talking about the expert Mrs. Bianca
Faye Lindsey. She didn't just teach me about the market; she helped me understand myself
as an investor. I've found my niche, and my portfolio reflects that. Together, we're not
just trading; we're building futures. Here's to making more informed decisions and sharing
successes.
I am not a subscriber of this channel but this not the first time i am hearing about Mrs
Bianca ,i heard her dedication to her client is remarkable and she does not only analyze
market trends but also listen to the concerns of her clients ,the sad news is have no way
to reach her or even get her attention heard she mostly booked
Her mentorship transformed my approach to investing. I used to chase quick wins, but now I
focus on long-term strategies. The results speak for themselves - my portfolio is more
stable, and I've achieved financial milestones I never thought possible,this show has been
a blessing
Your story is inspiring , Expert Bianca impact goes beyond numbers; it's about
personal growth. I've learned discipline, resilience, and the importance of continuous
learning. Every trade is a lesson, and I've gained a wealth of knowledge along the way.
Let's stay committed to evolving as investors and supporting one another. Here's to
meaningful growth and lasting success!
Dave, you forgot financing solar panels for 30 years to “save” money on your electric bill. 🙄
Good one! And people who haven't done their research don't realize that the "panels" purchase likely does not include the batteries which are REALLY pricey and have to be replaced every 10 years or so.
Sign me up for a $1000 monthly plan. $30,000 for solar panels plus installation fee of $5000. Just to save $300 a month on electricity.
It a smart move. It make sense to some people. 😂
It can make sense if you're down south where you get more direct sunlight and electricity is more expensive or unreliable (Texas has had some problems the last few years for example). Up north where I live, the numbers really don't add up.
And they look like dog shiit on your roof and make neighborhoods look like crap. They need to drill your roof! How dumb - you have a barrier for moisture called a roof so let’s make holes in it. It adds to the expense of re-roofing. (i dont care if salesman says your roof won’t leak. you’re NOT drilling my roof). I even heard where a roof got sooo hot, the house caught on fire. look it up. Solar panels are a joke. ROI on them sucks.
@@curiouscat3384 Most solar systems don't have batteries, they push the excess electricity to the grid.
You Dave and Anthony O, have no idea how many lives you are changing every day for the better…with a grateful heart for teaching me how to not only tackle my debts but be money smart…thank you from Edmonton Canada 🇨🇦
I put $150 weekly towards taxes since we paid off the house. It irritates me that I have to do this. The rest is invested and saved. We live under our means so we can live like nobody else. We have no debt.We went out to dinner, and I left a huge tip for our waiter. The next time we ate at the restaurant, he greeted us. He's paying for his own college education and raising 3 children. He needed the break. I'd do it again in a heartbeat.
Please save for maintenance on your home and for any future health issues.
This was very informative. Thank you so much. I was thinking about getting a HELOC too so glad I watched. God bless.
Dealing in absolutes is a clear red flag that the person advising you in such terms is going to mislead you and ultimately fail to consider all of your circumstances.
We just started reading your books. My husband and I have 35000 in debt. We don't own our own house, we rent and our debt is our car and credit card combined. The card is the highest APR, so we are paying that off quickly, once the card is paid off and closed, we are funneling the extra money to our car balance of 28000. So exciting!
If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you... prevent inflation
The previous year was difficult and never worked in my favor, I'm thinking about starting up on stock market investment
I started paying more attention to stock and learning more about online trades few days ago, thanks for the advice, I wish everyone will take this seriously!!
So true, thanks for bringing this up to my notice, the truth is this economy wouldn't be so bad if people indulge themselves more with various investments rather than just depending on their stipends and savings, because the economy wouldn't always remain as it was
There are series of distinct market phases that occur between the market peak and low
I've grown so much in forex through the mentoring of Cora James
I love what you have to say. I was fortunate to have many financial teachers when I was just starting out. They told me to put money into my 403B (I worked in a hospital) and gradually increase it. My boyfriend/future husband did the same with his 401K. When we got engaged/married, we NEVER used credit cards unless we could pay off the debt. We bought our 1st house after a failed 1st condo, but it was at a lower price point than what they told us "we could afford". We paid off our mortgage in 2016, and then put those "payments" into investments, which enabled us to retire early. It used to drive me CRAZY when my younger co-workers complained about living "paycheck to paycheck" and yet their 3 year old had an iPad, and I knew they had nice cars. OMG!!! What the heck! Live within your means, for crying out loud! Okay, I'll get off my soapbox, lol!
The caller says that they don't understand the point of all this equity in their home - they don't see the point in not being broke.
What an odd sentence they used
Like use w all these savingd
It did not sound odd to me. There is a whole line of thinking that a home becomes a source of lending, I know people who have taken out second mortgages or lines of credit to "save interest," consolidate loans, and renovate kitchens or bathrooms. "Make the Equity in Your Home Work for You," is a very familiar sales pitch. People fall for it.
The caller also does not understand you do not add square footage to your house by finishing the basement.
Thanks to dave i have 2 houses pay off im going to buy the third house next year then i planing to pay my kids education and finally go back to we are come from at and live simply life there
We are middle class…but I paid my kids school fees, their apartment because university are to far for them to stay at home, and they worked in summer for their expenses so NO students loans for them, the best gift I could have given them…I was able to do that because we paid our house mortgage by paying a little bit more on the capital side of the mortgage each month and we paid our mortgage weekly instead of monthly and also no monthly car payment during the kids expenses period, everybody in middle class can do the same if they plan ahead this strategy …as for the cars, if you buy a new ones four years before the kids high school expenses, the cars loans will be finished when they do go and a 4 years old car don’t need to be replaced during the time your kids need your support…we just wanted to give them a good start in life and we did.
He had me until he said you can be a rich person by making $40,000 a year. Dave himself always says your income is the most important driver of wealth. He cant have it both ways
In my opinion, enjoy the house and enjoy what you have. The equity will build over time, it’s about time in the market not timing the market.
They aren't trying to time the market from my understanding, they are trying to add value by finishing the basement and making other upgrades. If they spend 50k to increase the value 100k even if they have to take out debt I'd say go for it!
@@epicgaming4946 The problem with that mindset is that most $50,000 renovations don’t translate into double the value down the road.
Make the renovations because it adds more utility to your life, but don’t speculate. People have a gambling mentality with their primary residence that seems silly to me. If it isn’t worth $50,000 to you TODAY to add a new bathroom, it wont be worth $100,000 to someone else 5 years later.