Dave just didn't get what the caller was trying to say. Finally George stepped in to say if something comes up, you push pause and take care of it, then resume.
Back in 2020 we had 45k in truck debt, 14k in cc debt, 60k left on mortgage, and only had 28k invested in 401k. I traded the 45k truck for a sensible 15k car. I took on side hustles doing uber eats, door dash, flipping items on fb. I sacrificed and cutback on expenses for a year and half and went batshit crazy knocking the shit out of debt. Happy to say that today we are 100% debt gree including our home and have 98k in 401k and growing. Maxing out Roth 401k (23k plus 6k match every year) and Roth IRA (14k total between spouse and I), plus 40k and growing in kids college fund
It sounds like you don't trust your spouse. Even though I have the higher income of my wife and I, I was actually the one that was overspending and triggering debt. But I came to my senses after a medical diagnosis that could mean that my wife may have a reduced lifespan. Teamwork and trust is a must if married. If both spouses are not committed, it will not work.
@@r8alvar Weirdly enough, it falls on trust now because of the laws made by a few individuals in the past who had no idea what they were doing in the field of law and now we all have to suffer. Every male or female in this day and age, should know how to stand up on their own two feet when push comes to shove. Is it smart to be like an average American with a wife and kid? Or is it smarter to be single until the laws we know that were made to hurt us are reversed?
I worked 70 hours a week for 4 straight years. When I got married, I wrote a check for the house my family now lives in. I was tired, but this house is mine. 2 months later, COVID shutdown the world. 5 months after that, I was laid off. Not having a house payment, while also not having a job, made my stress level go from hair on fire to "welp, gotta find a job". If you want mental health issues, hang on to your debt and watch them pile up. 4 straight years of 70 hour weeks (average) of work is nothing.
I was so happy to hear her say part-time job and not side hustle, lol! Also, I feel like no one talks much about retail as a part-time job much, anymore
Oh my gosh did the caller get to finish a single sentence on this entire call?! They might actually get the information they need to help her if they would shut up and let her give it to them!!🙄
Dave also teaches the envelope method of budgeting. In that process, every potential future expense is a "sinking fund". So if you know your tires are 300 dollars a piece, you should budget and allocate a certain amount into the "tire replacement" envelope until you have $1200 in cash in that envelope. This is an expense, so it is apart of your budget. Your emergency fund is just another expense, you're going to put $1000 in an envelope and leave it at that. That money is for legitimate emergencies you did not plan for. Plan the obvious , smaller life emergencies and/or future expenses in your budget and save for those. Thats not "savings", thats not your "emergency fund", thats an actual expense but its taking place at an unknown date in the future. Gifts, school clothes, football pactice, ballet costumes, vacation, family reunion ect. Ect. are expenses, save for them with every check. Your emergency envelope of $1000 is for the situation you didnt plan for. Think long and hard when you are establishing your budget, future expenses need to be included so you have an accurate snowball number. If you want to get out of debt faster, minimize those future expenses and stick too it.
I do it this way, to not to have too much sinking funds, I have one for example for everything with wheels and motors, The amount I put in monthly, includes the devaluation of the vehicles, so that if I need a new car, the money is there. I found a bank were I can have up to 10 secondary accounts under a main account, and the money that comes in gets automatically distributed to the different accounts. I still pay cash as much as possible, but instead different envolopes at home I have different accounts. If I take money out, I transfer it online from one of the secondary accounts to the main account, take it out in cash with the debit card and pay cash. It works for me. I still have an excel sheet for my budget, the old way, and every penny gets documented. I am so grateful that I found Dave Ramsey and his methode around 8 years ago.
I’ve watched enough videos to understand the Baby Steps & follow them to the best of MY abilities. I’m what Dave calls “Dave-ish”. I have way more than $1,000 in savings (save whatever number makes you comfortable), I am putting 2K total towards my debt monthly ($1,400 is extra payments), and I’m still saving a little towards savings & contributing enough $ to receive my jobs match for retirement. If I went scorched earth like Dave promotes I would get out of debt 6 - 9 months faster but I’m not comfortable doing that. His principles still have helped me get to where I am. So far I’ve paid over $20,000 in debt just by implementing the things mentioned above over the last year. It really works, you just have to decide how hard you want to go at it.
Almost everyone talks about income as gross, but if you call Dave, you better give him your net. Where I live $76k is $57 net, so Dave's "living on $30k" is really living on $12k if you plan to pay off $45k in a year. That's literally poverty.
Most people who say their income by year are talking gross, people who say it by week or month are usually talking net. When you call in they advise you to say your net to make it easier but if the caller does not that is not Dave's fault, he can only go off what he is given.
This person needs an 18-24 month plan. Doing this in one year is impractically aggressive. But she can do it, she has the attitude to do it, and the drive to do it.
2 to 3 year maybe the sweet spot since she mentioned mental health. She probably is not built to work like a dog and clear it with that gazelle intensity.
@@bennyjoey8444 so a timeline of 12-18 months of work/eat/sleep is too much..?? No wonder people say these kids are weak! For 5 years I worked 100-115 hours a week, with no breaks except holidays!! But still got paid 30 years later at 55 retired and living the dream and debt free..
I love how living by the bones of your arse for a short, set period is so outrageous to some people. Being mildly/fairly uncomfortable for a short period is worth it for moving forward and getting greater rewards overall.
@letsgotomarsman That's a bullshit excuse we tell ourselves when we wanna do something that's unwise, lol. Chances are, you ain't gunna die tomorrow, so pay your damn bills.
My anxiety was worse making that much money. No sleep, no social life. Made me completely sick to the point where I had to go to the hospital. I understand her pain. I feel she should plan it out over 2 years and she’ll still be debt free by 30
Why does it hurt your mental health to work? Working 70+ hours a week, going to bed every night knowing that you have zero free time and all you are going to do the next week is work all day every day can absolutely take a toll on your mental health after a while.
That’s the sacrifice you make when you’re in a lot of debt, and that’s what it takes to get ahead in life. Being buried in debt should affect a person’s mental health.
@@donaldo7656, that's a good point; sometimes in life you just have to buckle down and get things done. I've never been in a crazy amount of debt so I don't know what that's like. I have worked a ton of hours before and personally I can say there were times I felt depressed and was questioning why I was doing it.
He’s right! It is like being in a cult. 😂 I’m absolutely obsessed and so wishing I’d paid closer attention to money years ago! Being in debt definitely causes me more anxiety than working many hours.
She's making same as me. Same debt more or less. I have CC debt, back child support, and a desperation loan to put in a new HVAC system in my house last April. I'll have this done within 2024, no question. I want a big bank account full of money so I can continue my spiritual endeavors and add to my enjoyment the single life. I want my life back.❤❤❤❤
@@Ja50nkAt My daughter is 20. I'm done paying child support. All I have left is back child support. In Virginia you're done paying child support when the child is 18 and graduated high school. It's been 2 years for me almost since I paid the main support.
@@kathleencooney1518 thank you so much. I just started making this kind of money a few months ago. I had to pick up a second job but it's definitely working out great. I'm going to have this done in no time.
she doing fine...with $6000,00 in savings.."" continue doing what you doing"" Don't listen to them"" Just like you said.. Thngs do happen unexpected BILLs pop up all the time""!! THere is NO rule to this... !!
There's something I feel we're missing about the hardship of working 7 days a week...It's this: As "easy" as it is to simply "work" every day, there is still always laundry to do...groceries to shop for....food to prepare...bills to pay...house to clean...friends & family to not completey ignore...maintenance on home & auto....etc... Basically what I'm saying is that "no"....work itself, is not anxiety inducing...it's all of the necessities that there's no time left for that does it.. To be 100% real here...I have felt for most of my adult life...that simply going to work has been the easiest part of my reponsibilities...and it's only when the balance tilts toward a bit too many working hours, that things start to fall apart... ...the occasional missed bill payment and resulting late fee.... .. relationships feeling the pinch... ...washing machine breaks down and I either have to take time off work to meet repairman or take extra time to go to laundromat. I'm not saying we can't make it through this "pinch" for a short time...especially if we're not married and don't have children...I just think it's important not to ignore all of the rest of our very real responsibilities that require very real time, if we want to create a realistic plan
Let's see, $76k income, less taxes is about $57k take home. So, Dave wants her to pay off $46k in one year and live of $1000 per month. She is already burned out working two jobs and Dave wants her to go scorched Earth, take her savings down to $1000, work every waking moment, and oh yeah, buy his books, subscribe to his budgeting app, attend his seminars, use his "preferred" service providers, ad infinitum. Now, if she were in dire straits financially, couldn't make rent, couldn't buy groceries, utilities were getting shut off, etc, then yes, drastic times call for drastic measures. This caller is not in bad shape financially. Set the student loans up on a reasonable amortization schedule, make the normal monthly payments on the car, and don't drink the Ramsey KoolAid. When people say "In all things, moderation", that also includes the Ramsey schtick.
yes it sucks working more than 40 hours weeks...some work 100 hr weeks some dont work at all lol choose the life you want and own it, if you care about debt being miserable working 24/7 until its gone OR just be fine with debt...pick one they both suck but one sucks less...
When you call in they advise you to say your net pay to make it easier but if the caller does not that is not Dave's fault, he can only go off what he is given.
Accounting taxes she could still do it in 18 months if she wanted to that bad. Given nothing else comes up. I think people get so stuck on the numbers and timeframe themselves with it “not adding up”. The point Dave is making is it’s about behavioral change and choices. Yes after tax it’s more like 50-60k depending on where she lives. But, even if she put 40% of that on debt she could still pull some strings and have it done in just over a year.
$1,000 is not enough for emergencies unless you have 0 for them. I think $2,500 in the savings and $4,000 to knock out the first student loan is a good start
Here we go again with "Dave doesn't want to print new books after 25 years" episode. Inflation is real friends. Emergency fund needs to be at least $2000
Didn’t he in the old books always say to tailor it to your needs? I mean if a rack ain’t enough, have a higher starter emergency fund, but Dave does always justify having more in that fund after paying off the debts ya got.
@@codyjaybditw We're not talking about the full emergency fund, we're only talking about the interim fund while you pay off your debt. There is not, and should not, be a specific dollar amount on the full emergency fund. The only valid way to measure it is in terms of how long you would be able to live off it if you had to.
Exactly. A magic $1000 that doesn't change with family size or inflation is bewildering. The same $1000 back in 1994 and still in 2024? The same $1000 for a single person living rent free with parents, and also for a family of 6 with a $2000/month mortgage?
Here's an idea if Baby Step 1 makes you feel uncomfortable/nervous: don't be a Ramsey bot, maintain an emergency fund of $4,000-$5,000, and aggressively pay off your debts. Finally, paying off $39,000 in one year while making $75,000 is a silly suggestion, especially if she's paying $1,500+ on rent/mortgage. Get real, Dave.
@@damondiehl5637we know exactly the baby steps. Have only $500 for the next 5 years and stress or about emergencies. And guess what, I adjusted for inflation for 10 years from now when Dave still doesn't adjust for inflation
Not one formula (amount) suitable for all. A size 9 shoe might fit many, it does not mean it will fit the next person we meet. If this lady gets mental peace at 6k, let that be her emergency She can work with the ‘suggested’ intensity to pay off the debt instead of being worried about what if scenarios.
You really just have to decide which is better for your mental health: 1. Doing Dave’s rice-and-beans, 100 working hours a week method for a year, but seeing the debt drop off faster. 2. Increase working hours and decrease expenditures at a more moderate pace, but see the debt drop off more slowly over 2 years. (Factor in the opportunity cost of not earning savings interest in that 2nd year, too, if you go with Option 2, or the lost time with family and friends with Option 1). Honestly, different people are going to have different answers to this question, and that’s okay.
Her net after fed and FICA is ~$4,375. I suppose rent must be $1,000. On your plan she'll still have a car payment for a bit. So sure, she can live on $2.00/day. She's young. Give her two years for good behavior.
I have to have at least 5k in my EMF. At 60 and being a homeowner, i have to have enough to fix things. This lady sounds like she's never worked hard. 😂 let's hear back when she's my age.
It all depends on the job but I learned that you can increase your hours when you feel motivated and be fine mentally. Once it takes a toll you can decrease your hours and then pick up more. This will keep you from going insane, but it all depends on the job.
I dont understand why he never factors in taxes. after 76k salary you are left with 55k max. you have to live on 10k not 30 to pay it off in a year. good luck with that when your rent costs more than that.
If you have kids do NOT go down to 1,000. if kids rely on you do not go below 1 month. i'm tired of the 1K mantra. 2,500 car repair, 3000 furnace repair, 5000 dollar medical bill. now you have to finance it because dave says 1K....
Completely agree. And this actually happened to me and my wife. Paid off all our debt December and then boom, $1,000 plus in car issues, pipe burst in the house, and $6k and climbing for a medical emergency. And that’s with no kids. Thankfully we kept 2-3 months of savings while paying off debt. I honestly don’t think anyone who relies on a car to get to work should have $1k or less in savings
Love Dave and i don’t blame him for being outta touch bt $1,000 is Wildly irresponsible in the savings IMO. Wife and i just paid off about 20k or our last debt in December. Since then we had car issues (starter, Heat, and flat), huge medical emergency ($6k and climbing), and pipe burst in the house. You need more than $1k just to continue working in case your car has issues that stop you from driving. Call me crazy bt I’m glad we didn’t go to $1k while paying off debt.
@@damondiehl5637I know the steps. Im saying I disagree because you are one emergency away from not having the funds and having to go further in debt. My coworker had to replace her car water pump yesterday. $1,300. And she couldnt find a cheaper mechanic because she didnt have time to wait for the car to get done later in the week or on the weekend. She has a baby and responsibilities. $1,000 use to be more than sufficient in the 90s.
I get that these guys are the experts to call when it comes to finance. But they shouldn't be calling bullshit when someone talks about their mental health. They're not qualified to do so.
You kind of need to do the trip both ways to get actual mpg. I realize you are measuring all of the trucks against each other on the same route, but if you did the trip both ways filling up at both ends, added all the miles and all the gallons of both trips, you would get a more actual representation of what the truck can do performance wise with regard to mpg.
Not sure about this one. $76,000 is most likely gross here, which may come out to about $58,000 net. Take away 39k for the debt, you're left to live with $19,000 for the year. Assuming your expenses are a modest $3,000/month, that'll last you 6 months. But hey, beans n rice I guess.
Dave needs to stop giving advice on people's GROSS pay...it makes no sense. And if people are crashing and burning at the seams from working 80+ hours a week, their health will certainly be impacted (here comes more bills for the doctor, therapy etc). Be disciplined-yes, but take his advice with a grain of salt. Know your threshold physically and mentally, complete a budget every month (or pay check) based on your take home pay, subtract your necessities and with the remainder tackle the debts---either smallest to largest or by highest interest rate/monthly payment---however you choose.
Dave always leaves out taxes and deductions. So Dave don't care about mental health? Working too much, can cause you mental stress. And other health issues.
Dave being extremely condescending at the 03:40 mark was uncalled for. Both hosts are rich af and have plenty of resources around them. Maybe show a little more compassion for someone not in your position and talk to her like an equal.
I have real issues with TROLLS on here that KNOW what Dave's program is all about, yet they constantly counter his advice and program. I am NOT some Dave lover nor do I agree with everything and I have my own life (not on Dave's payroll LOL) BUT I am also NOT A TROLL who follows people that I fundamentally disagree with. Note the key there... you cam disagree with a person, comment as such and not be a troll. But when you FUNDAMENTALLY DISAGREE with someone and follow them / comment on all their videos, that is a troll! So ask your do you fundamentally disagree with Dave. If you do and you comment all the time, you are a troll.
Reading through the comments i don’t see many ppl that outright disagree with Dave. They only troll him on certain variables like not counting taxes or having the same emergency fund recommendation since he started. The comments are helpful cuz new ppl coming realize like you can still follow Dave without being 100% in agreement with him. He’s life changing but i still adamantly disagree with the $1k savings.
@Shortballa11 There are one or two. Jimmymcgill6778 is one of them. He counters Dave's entire program. I have not rear one comment where he agreed with Dave yet he comments on all or nearly all of Dave's videos. I even directly asked him if in general he liked or agreed with Dave and he refused to answer. To me he fundamentally disagrees with Dave and Dave's program yet he negatively comments on every video. That's a troll. And for you... how do you define internet troll? Perhaps similar to how I do.
@@GAFB1122Aahh yea that guy is a troll then and its weird he comes to this page along with the couple others. There are a lot of negative comments on this video specifically but most the ppl arent trolls and follow Daves program. I dont have a definition of troll bt by your example I agree.
No amount of life improvement has ever motivated me to work more. I despise every moment of productive activity. I have only worked to meet obligations for more than 30 years. My retirement is secure, but that is only so I did not burden others. I utterly hated every moment; even though my profession improved public health and saved lives.
Sounds like you needed to address why you hated working. Im 32 and in a career i enjoy. I couldnt imagine doing a job my entire life i dispised. I get that sometimes people HAVE to, but at least have a gameplan to transition to something reasonable and not soul sucking
Dave and his wife went scorched earth to get out of their debt, and I think he expects/wants today's youth to attack their debt with the same intensity. But not everyone thinks their debt is a problem, as evidenced by the casual attitudes people have toward debt on these videos.
Do taxes not exist in the Ramsey world? How are people supposed to pay $45k in one year and live on $30k when taxes will take $12k of that away so it’s really living on $18k total
A 20 something year old call Dave Ramsey and said my mental health makes me not want to work extra. Now who didn’t see that coming when Dave gets on her
When you pay off debt.... if its even 5k or 20k or more... if you go at it like than you won't even spend the extra money... you will be just used to it...
people like this caller always crack me up. their getting answers and insight but they're preoccupied wanting to talk and move away from the point being made. she wasnt too bad, the beginning of the call felt like it was going that way. im sure theres some nerves involved being that they're calling a show with a lot of people listening
I use to work a job that was 60 hour week in a hot waRehouse 6 days a week my 6th month I started to here voices and started suffering mental issues dave ramsey ur crazy as hell don't not listen to what his crazy has to say
@@Ja50nkAt That is true but when you call in they advise you to tell your pay by what you actually take home. Do they actually do that? maybe, maybe not but Dave can only go off of what they say. But it comes down to the caller knows if it is net or gross so if it is gross then they know they need to adjust it.
Dave always forget in his calculation that income before taxes, social security, health insurance.... How can she live on 30k and pay 45k. She should work on paying debt after taxes
Dave does not forget to calculate income taxes, social security, health insurance....when you call in they advise you to give your take home pay to make it easier. If a caller decides to give their gross pay that is their choice and then they need to make the adjustments themselves. Nothing Dave can do about that.
I feel like Dave would ask hey is your car still working if yes, probs wait, if it just doesn’t work anymore and can’t get you where you need to go, I think that classifies as an emergency but be very careful as to what you buy and don’t be scared to look around high and low and never the first option unless you know it’s solid!
Depends. If your current car breaks down and it is going to be too much to repair it compared to what it is worth then yes, use some of your emergency fund to buy a cheap replacement car so you can get to and from work. If you simply want to upgrade your current car and it is not an emergency to get a newer car then use a sinking fund instead.
The question is what are her expenses? She needs to cut expenses drastically and keep working the PT. Have at least all the PT income go towards paying down debt, smallest the largest. Keep at least $3-4k in savings for “emergencies. Take the remaining to help pay off the smallest debt first.
@@jimmymcgill6778 you’re comparing the plant at Foxconn, where people are basically indentured servants to a chick who works 55 hours a week ?dude grow up
So she makes 75 gross not net lol I make the same and I make like 48 after taxes and she’s supposed to pay 40k in a year do they ever give good advice or realistic advice
All of these Americans calling in with debt are earning ridiculous amounts of money! How are they in so much debt when they rake in all that cash? Meanwhile, here in the UK, I don't even make £25k.
Why do you have to call about this? If your not comfortable with 1k then keep what your comfortable with, have to have another man tell you what ur allowed to have?
what i cant understand is people reacting on the BS1 violently,but never is concern of the 5-6 digits of debt. worrying over the $1k EF not enough yet not concern of the thousands of debt accumulated😂😂😂
I love Dave Ramsey and he has many good qualities. But he is also constitutionally incapable of ever admitting that his advice needs adjusting or that anyone could ever do something even slightly different and win. He just will not do it. I don't know whether it is ego or arrogance or simply that he wants to market his plan as being the end-all, be-all of financial wisdom so that people will buy his products. Regardless, no one needs Dave's permission to do something different. I personally do not think $1,000 is enough even for his Baby Step 1 goals in 2023 and even understanding that a little anxiety is part of the plan. I would suggest something like $3,000. That's just me. But everyone can do what they want. The point is, save some money for a rainy day and then pay off your debt.
@@amireallythatgrumpy6508 but when people already have more than $1000, he tells them to use all of it except $1000 to pay down their debt. $1000 may be a useful stepping stone for somebody who has nothing saved, but it's excessively risky for people who already have much more.
Dave's line of "1k isnt supposed to be enough" is an absolutely ridiculous non-answer. It's supposed to do a job, and it no longer does the same job it did when he first came up with the rule.
2 things. 1..The 76K is gross, not net. Meaning she's losing a ton of that to taxes. No way she's paying off her debt in just 1 year..impossible. Be realistic. 2..$1000 is not enough. You can still feel anxiety with $2000 instead. In the last month I had $1500 in unexpected vehicle repairs and another $400 in vet bills. Life happens.
Only keeping a $1k emergency fund for a prolonged period - an amount that Dave has not adjusted for inflation since the 1980s - is terrible advice. Don't know why he clings to it so stubbornly. AT LEAST adjust for inflation!
That is because when you call in they advise you to give your take home pay to make it easier. If a caller does not and gives their gross pay there is nothing Dave can do about that and the caller then knows they need to adjust it themselves.
Is it just me or a lot of these callers are faking their actual ages? They all sound a lot older. Perhaps, to mask their financial embarrassment with younger age..?
@amireallythatgrumpy6508 that's hilarious because I initially spelled it ok, but went back and changed it because I thought you might give me crap over it. 🤣
You mean one month's expenses. It makes no sense to measure an emergency find in terms of income. The only logical way to measure it is how long you can survive on it.
Dave just didn't get what the caller was trying to say. Finally George stepped in to say if something comes up, you push pause and take care of it, then resume.
Back in 2020 we had 45k in truck debt, 14k in cc debt, 60k left on mortgage, and only had 28k invested in 401k. I traded the 45k truck for a sensible 15k car. I took on side hustles doing uber eats, door dash, flipping items on fb. I sacrificed and cutback on expenses for a year and half and went batshit crazy knocking the shit out of debt. Happy to say that today we are 100% debt gree including our home and have 98k in 401k and growing. Maxing out Roth 401k (23k plus 6k match every year) and Roth IRA (14k total between spouse and I), plus 40k and growing in kids college fund
The only issue I see is the wife. She can easily wipe out all that.
It sounds like you don't trust your spouse. Even though I have the higher income of my wife and I, I was actually the one that was overspending and triggering debt. But I came to my senses after a medical diagnosis that could mean that my wife may have a reduced lifespan. Teamwork and trust is a must if married. If both spouses are not committed, it will not work.
@@r8alvar Weirdly enough, it falls on trust now because of the laws made by a few individuals in the past who had no idea what they were doing in the field of law and now we all have to suffer. Every male or female in this day and age, should know how to stand up on their own two feet when push comes to shove. Is it smart to be like an average American with a wife and kid? Or is it smarter to be single until the laws we know that were made to hurt us are reversed?
Yes Dave working 55-70 hour weeks would have adverse mental health effects
I agree. I like that he specified working like that "short term with a sense of destiny", that made much more sense
Not near as much as being a financial slave in perpetuity
As does holding onto debt for years.
I worked 70 hours a week for 4 straight years. When I got married, I wrote a check for the house my family now lives in. I was tired, but this house is mine. 2 months later, COVID shutdown the world. 5 months after that, I was laid off. Not having a house payment, while also not having a job, made my stress level go from hair on fire to "welp, gotta find a job". If you want mental health issues, hang on to your debt and watch them pile up. 4 straight years of 70 hour weeks (average) of work is nothing.
The whole point is to not have to work 70 hrs a week forever. Pull up your bootstraps.
I was so happy to hear her say part-time job and not side hustle, lol! Also, I feel like no one talks much about retail as a part-time job much, anymore
Oh my gosh did the caller get to finish a single sentence on this entire call?! They might actually get the information they need to help her if they would shut up and let her give it to them!!🙄
Dave also teaches the envelope method of budgeting. In that process, every potential future expense is a "sinking fund". So if you know your tires are 300 dollars a piece, you should budget and allocate a certain amount into the "tire replacement" envelope until you have $1200 in cash in that envelope. This is an expense, so it is apart of your budget. Your emergency fund is just another expense, you're going to put $1000 in an envelope and leave it at that. That money is for legitimate emergencies you did not plan for. Plan the obvious , smaller life emergencies and/or future expenses in your budget and save for those. Thats not "savings", thats not your "emergency fund", thats an actual expense but its taking place at an unknown date in the future. Gifts, school clothes, football pactice, ballet costumes, vacation, family reunion ect. Ect. are expenses, save for them with every check. Your emergency envelope of $1000 is for the situation you didnt plan for. Think long and hard when you are establishing your budget, future expenses need to be included so you have an accurate snowball number. If you want to get out of debt faster, minimize those future expenses and stick too it.
I do it this way, to not to have too much sinking funds, I have one for example for everything with wheels and motors, The amount I put in monthly, includes the devaluation of the vehicles, so that if I need a new car, the money is there. I found a bank were I can have up to 10 secondary accounts under a main account, and the money that comes in gets automatically distributed to the different accounts. I still pay cash as much as possible, but instead different envolopes at home I have different accounts. If I take money out, I transfer it online from one of the secondary accounts to the main account, take it out in cash with the debit card and pay cash. It works for me. I still have an excel sheet for my budget, the old way, and every penny gets documented. I am so grateful that I found Dave Ramsey and his methode around 8 years ago.
Well said man!
I’ve watched enough videos to understand the Baby Steps & follow them to the best of MY abilities. I’m what Dave calls “Dave-ish”. I have way more than $1,000 in savings (save whatever number makes you comfortable), I am putting 2K total towards my debt monthly ($1,400 is extra payments), and I’m still saving a little towards savings & contributing enough $ to receive my jobs match for retirement. If I went scorched earth like Dave promotes I would get out of debt 6 - 9 months faster but I’m not comfortable doing that. His principles still have helped me get to where I am. So far I’ve paid over $20,000 in debt just by implementing the things mentioned above over the last year. It really works, you just have to decide how hard you want to go at it.
when people are telling their income i never know if they talk net or gross?
Most the time gross. Because that’s what the W2 shows. Dave never takes it into account so gotta take it with a grain account.
Almost everyone talks about income as gross, but if you call Dave, you better give him your net. Where I live $76k is $57 net, so Dave's "living on $30k" is really living on $12k if you plan to pay off $45k in a year. That's literally poverty.
@@emoney1231It's less than poverty. Most likely homelessness cuz mortgage nor rent is that cheap in most places.
Most people who say their income by year are talking gross, people who say it by week or month are usually talking net. When you call in they advise you to say your net to make it easier but if the caller does not that is not Dave's fault, he can only go off what he is given.
Neither do they.
This person needs an 18-24 month plan. Doing this in one year is impractically aggressive. But she can do it, she has the attitude to do it, and the drive to do it.
2 to 3 year maybe the sweet spot since she mentioned mental health. She probably is not built to work like a dog and clear it with that gazelle intensity.
Easy: just don’t worry about the car on such a tiny interest rate and pay minimum payments. Done deal.
Some people do like to have a life outside of work.
@@bennyjoey8444 so a timeline of 12-18 months of work/eat/sleep is too much..?? No wonder people say these kids are weak! For 5 years I worked 100-115 hours a week, with no breaks except holidays!! But still got paid 30 years later at 55 retired and living the dream and debt free..
It’s just a question of how long she’s willing to remain a slave to the banks
The anxiety is good it helps you move forward❤❤
I love how living by the bones of your arse for a short, set period is so outrageous to some people. Being mildly/fairly uncomfortable for a short period is worth it for moving forward and getting greater rewards overall.
You could die tomorrow, spend your last day working ? Hell no
@letsgotomarsman That's a bullshit excuse we tell ourselves when we wanna do something that's unwise, lol. Chances are, you ain't gunna die tomorrow, so pay your damn bills.
My anxiety was worse making that much money. No sleep, no social life. Made me completely sick to the point where I had to go to the hospital. I understand her pain. I feel she should plan it out over 2 years and she’ll still be debt free by 30
Why does it hurt your mental health to work? Working 70+ hours a week, going to bed every night knowing that you have zero free time and all you are going to do the next week is work all day every day can absolutely take a toll on your mental health after a while.
You need your woobie? Maybe your mommy can rub your belly and tell you it will be ok.
That’s the sacrifice you make when you’re in a lot of debt, and that’s what it takes to get ahead in life. Being buried in debt should affect a person’s mental health.
@@donaldo7656 Great point. Funny how working hurts mental health but debt doesn't.
@@linuxsurfer2002 Also, could working HELP mental health? I think my mental health is pretty good and I like working.
@@donaldo7656, that's a good point; sometimes in life you just have to buckle down and get things done. I've never been in a crazy amount of debt so I don't know what that's like. I have worked a ton of hours before and personally I can say there were times I felt depressed and was questioning why I was doing it.
He’s right! It is like being in a cult. 😂 I’m absolutely obsessed and so wishing I’d paid closer attention to money years ago! Being in debt definitely causes me more anxiety than working many hours.
She's making same as me. Same debt more or less. I have CC debt, back child support, and a desperation loan to put in a new HVAC system in my house last April. I'll have this done within 2024, no question. I want a big bank account full of money so I can continue my spiritual endeavors and add to my enjoyment the single life. I want my life back.❤❤❤❤
And, you’ll get it. Way to go.
Child support won't go away unless the kids turning 18 but good luck
@@Ja50nkAt can be more than that but yes :D
@@Ja50nkAt My daughter is 20. I'm done paying child support. All I have left is back child support. In Virginia you're done paying child support when the child is 18 and graduated high school. It's been 2 years for me almost since I paid the main support.
@@kathleencooney1518 thank you so much. I just started making this kind of money a few months ago. I had to pick up a second job but it's definitely working out great. I'm going to have this done in no time.
she doing fine...with $6000,00 in savings.."" continue doing what you doing"" Don't listen to them""
Just like you said.. Thngs do happen unexpected BILLs pop up all the time""!! THere is NO rule to
this... !!
I really wish we could go off of take home pay to get real life numbers.
There's something I feel we're missing about the hardship of working 7 days a week...It's this:
As "easy" as it is to simply "work" every day, there is still always laundry to do...groceries to shop for....food to prepare...bills to pay...house to clean...friends & family to not completey ignore...maintenance on home & auto....etc...
Basically what I'm saying is that "no"....work itself, is not anxiety inducing...it's all of the necessities that there's no time left for that does it..
To be 100% real here...I have felt for most of my adult life...that simply going to work has been the easiest part of my reponsibilities...and it's only when the balance tilts toward a bit too many working hours, that things start to fall apart...
...the occasional missed bill payment and resulting late fee....
.. relationships feeling the pinch...
...washing machine breaks down and I either have to take time off work to meet repairman or take extra time to go to laundromat.
I'm not saying we can't make it through this "pinch" for a short time...especially if we're not married and don't have children...I just think it's important not to ignore all of the rest of our very real responsibilities that require very real time, if we want to create a realistic plan
Well said love!!!!❤
@@anneperry9014 🙏
Tough love by DR. Wish everyone had an Uncle Dave!
Let's see, $76k income, less taxes is about $57k take home. So, Dave wants her to pay off $46k in one year and live of $1000 per month. She is already burned out working two jobs and Dave wants her to go scorched Earth, take her savings down to $1000, work every waking moment, and oh yeah, buy his books, subscribe to his budgeting app, attend his seminars, use his "preferred" service providers, ad infinitum.
Now, if she were in dire straits financially, couldn't make rent, couldn't buy groceries, utilities were getting shut off, etc, then yes, drastic times call for drastic measures. This caller is not in bad shape financially. Set the student loans up on a reasonable amortization schedule, make the normal monthly payments on the car, and don't drink the Ramsey KoolAid. When people say "In all things, moderation", that also includes the Ramsey schtick.
But he's giving her the subscriptions for free...
Skip rent. Just work 160 hours a week. That leaves 8 hours a week to commute between your jobs. Easy peasy.
@@d.h.8279 Yep, free for the trial period. Then your account starts getting charged for the monthly subscription fee of $12.99 or so.
I feel like we’re missing something in our math, maybe the IRS will know what it is.
Caller: I want to do “this”
Dave: you should do “that”
Caller: yeah but I’m still gonna do “this”
I didn't hear that in this conversation at all. She was listening.
Yes
I have sinking funds plus an emergency fund. Sinking funds are earmarked for possible expenses. Like car repairs.
yes it sucks working more than 40 hours weeks...some work 100 hr weeks some dont work at all lol choose the life you want and own it, if you care about debt being miserable working 24/7 until its gone OR just be fine with debt...pick one they both suck but one sucks less...
45000 out of 76000 means you live on 30. Lol I love how Dave thinks taxes are optional when paying off debt.
IRS tax bill will become IRS tax debt
Or she pays it off in 2 or 3 years
When you call in they advise you to say your net pay to make it easier but if the caller does not that is not Dave's fault, he can only go off what he is given.
Accounting taxes she could still do it in 18 months if she wanted to that bad. Given nothing else comes up. I think people get so stuck on the numbers and timeframe themselves with it “not adding up”. The point Dave is making is it’s about behavioral change and choices. Yes after tax it’s more like 50-60k depending on where she lives. But, even if she put 40% of that on debt she could still pull some strings and have it done in just over a year.
Most people say they take home X a year. 95% of Dave's callers and email questions are after tax.
Best to get out of debt before getting married.
Some couples love to share their debt, gives them something in common.
$1,000 is not enough for emergencies unless you have 0 for them. I think $2,500 in the savings and $4,000 to knock out the first student loan is a good start
Here we go again with "Dave doesn't want to print new books after 25 years" episode. Inflation is real friends. Emergency fund needs to be at least $2000
Right it has to cover car expenses in case something happens at minimum.
$2,000? More like $20,000.
Didn’t he in the old books always say to tailor it to your needs? I mean if a rack ain’t enough, have a higher starter emergency fund, but Dave does always justify having more in that fund after paying off the debts ya got.
@@codyjaybditw We're not talking about the full emergency fund, we're only talking about the interim fund while you pay off your debt. There is not, and should not, be a specific dollar amount on the full emergency fund. The only valid way to measure it is in terms of how long you would be able to live off it if you had to.
Exactly. A magic $1000 that doesn't change with family size or inflation is bewildering. The same $1000 back in 1994 and still in 2024? The same $1000 for a single person living rent free with parents, and also for a family of 6 with a $2000/month mortgage?
Do people not pay tax in the US? Like if I made 76k where I live, I'd end up with 54k after tax... truly curious
Up to 37% if you make over some hundreds of grand
A $1,000 starter emergency fund that hasn’t changed in two decades isn’t “a little anxiety.”
Here's an idea if Baby Step 1 makes you feel uncomfortable/nervous: don't be a Ramsey bot, maintain an emergency fund of $4,000-$5,000, and aggressively pay off your debts. Finally, paying off $39,000 in one year while making $75,000 is a silly suggestion, especially if she's paying $1,500+ on rent/mortgage. Get real, Dave.
Also utilities, gas food etc. I am surprised he didn’t say sell ur car and walk everywhere
You should run the numbers first. I'd like to see why you think that isn't possible?
@@USMC6976: $75,000 (gross income) - $39,000 (annual debt reduction proposed by DR) - $18,000 (estimated monthly rent of $1,500/month)= $18,000 (or $1,500/month) for taxes, food, utilities, transportation, clothing, etc. DR's suggested figure is entirely quixotic.
Of course if she actually was aggressive, her income would be a lot more than $75,000...
$1500/mo is 18k a year. Let's say take home on 75 is 60k. That leaves 42k for everything else. So let's say 18-24mo if she doesn't up her income.
1k is too low.
Do not drain that low. Dave have millions in the bank. So he does not care about it.
Tell us you don't know the Baby Steps without saying you don't know about the Baby Steps.
@@damondiehl5637we know exactly the baby steps. Have only $500 for the next 5 years and stress or about emergencies. And guess what, I adjusted for inflation for 10 years from now when Dave still doesn't adjust for inflation
@@damondiehl5637 Stop being a follower. It is too low.
@@jimmymcgill6778 It's Baby Step #1. It's not the final solution, it's the start of the process.
Not one formula (amount) suitable for all. A size 9 shoe might fit many, it does not mean it will fit the next person we meet. If this lady gets mental peace at 6k, let that be her emergency
She can work with the ‘suggested’ intensity to pay off the debt instead of being worried about what if scenarios.
You really just have to decide which is better for your mental health:
1. Doing Dave’s rice-and-beans, 100 working hours a week method for a year, but seeing the debt drop off faster.
2. Increase working hours and decrease expenditures at a more moderate pace, but see the debt drop off more slowly over 2 years.
(Factor in the opportunity cost of not earning savings interest in that 2nd year, too, if you go with Option 2, or the lost time with family and friends with Option 1).
Honestly, different people are going to have different answers to this question, and that’s okay.
Her net after fed and FICA is ~$4,375. I suppose rent must be $1,000. On your plan she'll still have a car payment for a bit. So sure, she can live on $2.00/day. She's young. Give her two years for good behavior.
I have to have at least 5k in my EMF. At 60 and being a homeowner, i have to have enough to fix things. This lady sounds like she's never worked hard. 😂 let's hear back when she's my age.
5k isn't enough for a new roof or HVAC system
BTW - used tires are way less expense and work just fine
It all depends on the job but I learned that you can increase your hours when you feel motivated and be fine mentally. Once it takes a toll you can decrease your hours and then pick up more. This will keep you from going insane, but it all depends on the job.
I dont understand why he never factors in taxes. after 76k salary you are left with 55k max. you have to live on 10k not 30 to pay it off in a year. good luck with that when your rent costs more than that.
If you have kids do NOT go down to 1,000. if kids rely on you do not go below 1 month. i'm tired of the 1K mantra. 2,500 car repair, 3000 furnace repair, 5000 dollar medical bill. now you have to finance it because dave says 1K....
Completely agree. And this actually happened to me and my wife. Paid off all our debt December and then boom, $1,000 plus in car issues, pipe burst in the house, and $6k and climbing for a medical emergency. And that’s with no kids. Thankfully we kept 2-3 months of savings while paying off debt. I honestly don’t think anyone who relies on a car to get to work should have $1k or less in savings
Love Dave and i don’t blame him for being outta touch bt $1,000 is Wildly irresponsible in the savings IMO. Wife and i just paid off about 20k or our last debt in December. Since then we had car issues (starter, Heat, and flat), huge medical emergency ($6k and climbing), and pipe burst in the house. You need more than $1k just to continue working in case your car has issues that stop you from driving. Call me crazy bt I’m glad we didn’t go to $1k while paying off debt.
Baby Step 1: Emergency fund of $1000.
Baby Step 3: Set aside 3 to 6 months of living expenses.
@@damondiehl5637I know the steps. Im saying I disagree because you are one emergency away from not having the funds and having to go further in debt. My coworker had to replace her car water pump yesterday. $1,300. And she couldnt find a cheaper mechanic because she didnt have time to wait for the car to get done later in the week or on the weekend. She has a baby and responsibilities. $1,000 use to be more than sufficient in the 90s.
Love how Dave doesn’t let these ppl yap on and on trying to find a way out of sticking to the baby steps.
I get that these guys are the experts to call when it comes to finance. But they shouldn't be calling bullshit when someone talks about their mental health. They're not qualified to do so.
You kind of need to do the trip both ways to get actual mpg. I realize you are measuring all of the trucks against each other on the same route, but if you did the trip both ways filling up at both ends, added all the miles and all the gallons of both trips, you would get a more actual representation of what the truck can do performance wise with regard to mpg.
Not sure about this one. $76,000 is most likely gross here, which may come out to about $58,000 net. Take away 39k for the debt, you're left to live with $19,000 for the year. Assuming your expenses are a modest $3,000/month, that'll last you 6 months. But hey, beans n rice I guess.
However much anxiety working gives you, you’ll be much more anxious in 15 years and even deeper in the hole
She go on the Caleb hammer show
Doesn’t she pay tax on that $76k income? If she does, how can she pay that $45k debt in one year out of whatever is left after tax?
Because Dave wants her to live in a hovel and eat beans out of a can. Not sure he would recommend that if she was his daughter
@@bennyjoey8444 His daughter would never have got into debt, so moot point.
Mental health is king! Not cash.
You can't have mental health without cash.
Dave needs to stop giving advice on people's GROSS pay...it makes no sense. And if people are crashing and burning at the seams from working 80+ hours a week, their health will certainly be impacted (here comes more bills for the doctor, therapy etc). Be disciplined-yes, but take his advice with a grain of salt. Know your threshold physically and mentally, complete a budget every month (or pay check) based on your take home pay, subtract your necessities and with the remainder tackle the debts---either smallest to largest or by highest interest rate/monthly payment---however you choose.
Dave always leaves out taxes and deductions.
So Dave don't care about mental health?
Working too much, can cause you mental stress. And other health issues.
Working hard for a short time to pay off what you owe and to become debt free is a temporary sacrifice, not a life-ending burden.
@@bobmcdoggish9659 It can still cause health problems.
As can having debt.
Dave being extremely condescending at the 03:40 mark was uncalled for. Both hosts are rich af and have plenty of resources around them. Maybe show a little more compassion for someone not in your position and talk to her like an equal.
I have real issues with TROLLS on here that KNOW what Dave's program is all about, yet they constantly counter his advice and program.
I am NOT some Dave lover nor do I agree with everything and I have my own life (not on Dave's payroll LOL) BUT I am also NOT A TROLL who follows people that I fundamentally disagree with.
Note the key there... you cam disagree with a person, comment as such and not be a troll. But when you FUNDAMENTALLY DISAGREE with someone and follow them / comment on all their videos, that is a troll!
So ask your do you fundamentally disagree with Dave. If you do and you comment all the time, you are a troll.
Reading through the comments i don’t see many ppl that outright disagree with Dave. They only troll him on certain variables like not counting taxes or having the same emergency fund recommendation since he started. The comments are helpful cuz new ppl coming realize like you can still follow Dave without being 100% in agreement with him. He’s life changing but i still adamantly disagree with the $1k savings.
@Shortballa11 There are one or two. Jimmymcgill6778 is one of them. He counters Dave's entire program. I have not rear one comment where he agreed with Dave yet he comments on all or nearly all of Dave's videos. I even directly asked him if in general he liked or agreed with Dave and he refused to answer. To me he fundamentally disagrees with Dave and Dave's program yet he negatively comments on every video. That's a troll.
And for you... how do you define internet troll? Perhaps similar to how I do.
@@GAFB1122Aahh yea that guy is a troll then and its weird he comes to this page along with the couple others. There are a lot of negative comments on this video specifically but most the ppl arent trolls and follow Daves program. I dont have a definition of troll bt by your example I agree.
Yeah I read the comments for encouragement and inspiration…today I’m not finding that much
It’s nearly impossible to live off $35k in Dallas!! Unless she’s living with her parents, idk how that’s possible.
No amount of life improvement has ever motivated me to work more. I despise every moment of productive activity. I have only worked to meet obligations for more than 30 years. My retirement is secure, but that is only so I did not burden others. I utterly hated every moment; even though my profession improved public health and saved lives.
Sounds like you needed to address why you hated working. Im 32 and in a career i enjoy. I couldnt imagine doing a job my entire life i dispised. I get that sometimes people HAVE to, but at least have a gameplan to transition to something reasonable and not soul sucking
Ngl you just sound kinda lazy
You sound like that guy who is going to yell at kids to get off your lawn.
@crashtestdummy1972 How would I enjoy any job(that paid well), if it is the concept of work and societal interaction that I hate?
@damondiehl5637 Naw. I don't want a lawn or a house that anyone can find. ;)
hate to be negative but shes going to get out of debt fall in love with a guy in debt and then not want to get married...
Dave and his wife went scorched earth to get out of their debt, and I think he expects/wants today's youth to attack their debt with the same intensity. But not everyone thinks their debt is a problem, as evidenced by the casual attitudes people have toward debt on these videos.
Do taxes not exist in the Ramsey world? How are people supposed to pay $45k in one year and live on $30k when taxes will take $12k of that away so it’s really living on $18k total
A 20 something year old call Dave Ramsey and said my mental health makes me not want to work extra. Now who didn’t see that coming when Dave gets on her
Live on 30k .. can we be realistic please. No one can live on that
Taxes and inflation aren’t what they used to be.
When you pay off debt.... if its even 5k or 20k or more... if you go at it like than you won't even spend the extra money... you will be just used to it...
Tires that last 100,000 miles is not an emergency... Just did 4 on my wifes Yukon for $200 off marketplace.
people like this caller always crack me up. their getting answers and insight but they're preoccupied wanting to talk and move away from the point being made. she wasnt too bad, the beginning of the call felt like it was going that way. im sure theres some nerves involved being that they're calling a show with a lot of people listening
I use to work a job that was 60 hour week in a hot waRehouse 6 days a week my 6th month I started to here voices and started suffering mental issues dave ramsey ur crazy as hell don't not listen to what his crazy has to say
$1000 is scary but accruing $2000/year in interest for another 10 years is fine...
$1000 means you have something to lose. $2000/year in interest means you are already at a low. You have literally NOTHING to lose.
76 gross, so like 60k a year, probably 2 years of rice and beans if everything goes well and if she can live with a roommate.
She did not say 76k was gross, you are making a huge assumption.
@@paulinoaz That's usually what people are saying when they talk about their yearly salary 🤷
@@Ja50nkAt That is true but when you call in they advise you to tell your pay by what you actually take home. Do they actually do that? maybe, maybe not but Dave can only go off of what they say. But it comes down to the caller knows if it is net or gross so if it is gross then they know they need to adjust it.
Didn't you hear Dave? She has two new tires, it is all smooth sailing from here on out...
Dave always forget in his calculation that income before taxes, social security, health insurance.... How can she live on 30k and pay 45k. She should work on paying debt after taxes
Dave does not forget to calculate income taxes, social security, health insurance....when you call in they advise you to give your take home pay to make it easier. If a caller decides to give their gross pay that is their choice and then they need to make the adjustments themselves. Nothing Dave can do about that.
I just got two new tires. $265.39.
She needs to lay off on her girlie stuff and cook her own food.
Dave seriously - her work schedule is a lot for anyone to do for a prolonged period of time.
Does Dave suggest using some of your emergency fund if it means you can pay for a car in cash?
YES! You need to always rebuild the four walls.
I feel like Dave would ask hey is your car still working if yes, probs wait, if it just doesn’t work anymore and can’t get you where you need to go, I think that classifies as an emergency but be very careful as to what you buy and don’t be scared to look around high and low and never the first option unless you know it’s solid!
Depends. If your current car breaks down and it is going to be too much to repair it compared to what it is worth then yes, use some of your emergency fund to buy a cheap replacement car so you can get to and from work. If you simply want to upgrade your current car and it is not an emergency to get a newer car then use a sinking fund instead.
Dave out here doing the Biden whisper…scarin’ all the kids..
The question is what are her expenses? She needs to cut expenses drastically and keep working the PT. Have at least all the PT income go towards paying down debt, smallest the largest. Keep at least $3-4k in savings for “emergencies. Take the remaining to help pay off the smallest debt first.
Mental health, I think we know which generation is the caller 😂
That is a real thing. Look at the nets around factories in China from people working too much.
@@jimmymcgill6778 you’re comparing the plant at Foxconn, where people are basically indentured servants to a chick who works 55 hours a week ?dude grow up
@@jimmymcgill6778 Don't even DARE try to make that comparison.........
And you realize those servants have to live at the factory, right?
@@nastang87xx WHY? Don't like the truth?
So she makes 75 gross not net lol I make the same and I make like 48 after taxes and she’s supposed to pay 40k in a year do they ever give good advice or realistic advice
“Money is a fabulous slave and a terrible master”😅
70+ hours a week for more then a few weeks in a row is brutal especially if you have kids or other responsibilities
✝️
All of these Americans calling in with debt are earning ridiculous amounts of money!
How are they in so much debt when they rake in all that cash?
Meanwhile, here in the UK, I don't even make £25k.
Why do you have to call about this? If your not comfortable with 1k then keep what your comfortable with, have to have another man tell you what ur allowed to have?
what i cant understand is people reacting on the BS1 violently,but never is concern of the 5-6 digits of debt. worrying over the $1k EF not enough yet not concern of the thousands of debt accumulated😂😂😂
If it gives you more peace to have 3K, I don't see the problem with that.
I love Dave Ramsey and he has many good qualities. But he is also constitutionally incapable of ever admitting that his advice needs adjusting or that anyone could ever do something even slightly different and win. He just will not do it. I don't know whether it is ego or arrogance or simply that he wants to market his plan as being the end-all, be-all of financial wisdom so that people will buy his products. Regardless, no one needs Dave's permission to do something different. I personally do not think $1,000 is enough even for his Baby Step 1 goals in 2023 and even understanding that a little anxiety is part of the plan. I would suggest something like $3,000. That's just me. But everyone can do what they want. The point is, save some money for a rainy day and then pay off your debt.
Republicans...
Dave never had to struggle, income has always been high. Sure he went into debt but his shovel was always huge
Problem is most people would get stuckon saving for a rainy day and save forever, and never get totheir debt.
@@whothou Except for the late 1980s/early 1990s.
@@amireallythatgrumpy6508 but when people already have more than $1000, he tells them to use all of it except $1000 to pay down their debt. $1000 may be a useful stepping stone for somebody who has nothing saved, but it's excessively risky for people who already have much more.
Dave forgets about income tax 🙄
Dave's line of "1k isnt supposed to be enough" is an absolutely ridiculous non-answer. It's supposed to do a job, and it no longer does the same job it did when he first came up with the rule.
Its only actual job was to prove to yourself that you can save $1,000.
2 things.
1..The 76K is gross, not net. Meaning she's losing a ton of that to taxes. No way she's paying off her debt in just 1 year..impossible. Be realistic.
2..$1000 is not enough. You can still feel anxiety with $2000 instead. In the last month I had $1500 in unexpected vehicle repairs and another $400 in vet bills. Life happens.
Only keeping a $1k emergency fund for a prolonged period - an amount that Dave has not adjusted for inflation since the 1980s - is terrible advice. Don't know why he clings to it so stubbornly. AT LEAST adjust for inflation!
One thousand dollars will buy some nice tires.
Me working 40 hrs a week give me bad mental health
Dave is rather ignorant about how important menta health is. Skyrocketing rates of suicide, depression and severe anxiety is real.
Nope. He just understands that being in debt for decades has the same effects.
He's helping people get cured. Debt is a huge contributor to suicide, depression, and extreme anxiety.
Dave seems to miss out on income tax on many of his shows. Keep more than $1000 inn emergency funds. Dave is not coming to your rescue by any means.
That is because when you call in they advise you to give your take home pay to make it easier. If a caller does not and gives their gross pay there is nothing Dave can do about that and the caller then knows they need to adjust it themselves.
Work and pay off the debt. Stop with the whining. Nothing but whine, stress, anxiety, boo hoo hoo. You built the debt, you pay it off!!
Dave says some things that are unrealistic. Who can live on $30k per year?
Ramen noodles, public transportation, thrift store etc, etc
@@BrendaTufts Doable depending on the state but not without some form of extra help in most.
2:40 😆
Never pay off the car early att that 3.x % car loan, just pay the student loan and pay the car as scheduled
Is it just me or a lot of these callers are faking their actual ages? They all sound a lot older. Perhaps, to mask their financial embarrassment with younger age..?
Dave asked a direct questioning she started circling.
Every time she doesn't get the answer she wants, she asks for "more clarification" 😅
Dave is getting ratioed to oblivion in this comment section...
Ratio is still NOT a verb.
@@amireallythatgrumpy6508 okay boomer...do you even know what getting ratioed means?
@@tstanley01 I know it's meaningless BS.
But hey, at least you spelled 'okay' correctly. Maybe there is some hope.
@amireallythatgrumpy6508 that's hilarious because I initially spelled it ok, but went back and changed it because I thought you might give me crap over it. 🤣
@@tstanley01 We boomers are certainly predictable.
$1k is nothing and it should one months check
You mean one month's expenses. It makes no sense to measure an emergency find in terms of income. The only logical way to measure it is how long you can survive on it.
@@amireallythatgrumpy6508 One months income is usually more then one month expenses. Dave has had $1k for 30 years and with inflation it’s nothing now