I agree with you about the mobile home thing. Millions of people live in them. And they come in all sorts of "ranges" from high end triple wides to beat up tiny shit boxes. And there isn't anything wrong with that. Affordable shelter is hard to come by these days.
I don’t agree with his opinion on tiny houses either. It could be a way for someone to save more money. No it’s not going to appreciate like a house but it could be right for some people like young families who want one parent to stay home and raise the children, or a retired person living on social security provided they have a place to put it. My issue with DR is he gives me the impression that he thinks if someone retires without a million dollars in the bank they are a loser. Or if someone is living on a low income they are “starving”. I just didn’t make accumulating a big bank account a high priority in my life. I live simply, debt free, and I’m happy living this way. When you don’t need a lot of money you don’t have to stress about money. Even now when all the prices are rising, knowing how to live frugally is very valuable. I do think having a healthy emergency fund helps to keep the stress away.
DR has to sound stern because there are people that are stupid in terms of finance. The $1000 emergency fund is just a start, better than nothing. I like his idea of paying off the house asap because it secures a roof for you and your family. Also it is a peaceful feeling that money can’t buy. You just don’t know what will happen tomorrow. Working 2-3 jobs for a short time in order to pay for a goal is ok. My husband did that for a year and half in order to put our 3 kids through college. They are debt free and so are we. Now they are all professionals and living with us to save more money and invest. We have plenty of time together and we love to travel as a family. Each family is different, do what is best for your situation.
Great video! Agree 100%. We have listened to Dave Ramsey for about 12 years and decided to take from him what worked for us. Been debt free for ten years with the exception of our house which will be paid off this summer. Which, btw is a 30 year mortgage being paid off in 17 years. Did I mention, great video? 😉
One of the best gifts you can give your children is good credit history. If you already have good credit, add your child as an authorized user to one of your credit cards. Make sure you don't get a card with their name on it. Just have them on the account to start their credit history. As long as you pay off your card balance every month, you pass that good history onto them. I added mine to my Discover Card, but they needed to be at least 15 years old. By the time they will need to get a loan, they could have 3-5 years of credit history.
I completely agree with all these concerns as does my brother who has a Finance Degree. He has been saying this for year's now. I just took from him what was good for me and went with it. I was able to save a lot, but never would I even be able to buy a home on 25% income, and never could I rent at that low amount either, not possible unless safety isn’t a concern. No one but rich people could buy homes with that requirement. Also have 1 credit card that gets paid off monthly, need credit to afford anything these days. I am big time into healthy eating and his plan is a No Go for me and my family. I also don't value money over my time, or family. I will not work myself to death to have a big bank account. I live a modest and frugal life and I like it that way. No one has blanket advice that works for everyone situation, no one.
So true regarding the home buying qualifications. If I followed DR advice, I would never have purchased my first home and built the equity that I have. I’m now a landlord, but according to DR, I shouldn’t even be a homeowner.
You make excellent points. I especially like how you pointed out that making money all the time isn’t as important as spending time with your kids or taking good care of yourself. It’s so true that you can never get that time back after your kids grow up. It’s important to relax, recharge, and enjoy your life along the way of building healthy finances. You have excellent priorities. Thank you for sharing this info and perspective with everyone. ❤
I have listened to Dave a lot, but I appreciate how you said your time is important too, especially spending time with your kids when they are young. You never get that back. I like your balanced view.
Dave Ramsey changed my life! He gave me direction and focus.. With that being said I completely agree with all 6 points! He gave us direction. I’ll always be thankful for that but I can’t totally agree with all that he teaches.
The 1000 dollar is to start an emergency fund. He is also reaching out to those who do not save and continue to go into dept charging amounts until they get to max on credit card, then get another one. He talks about long term savings and those who cannot control spending on a credit card. Nevertheless, people need at least one credit card and I agree with you as long as you pay it off each month. I know allot of people who never saved money had no problem buying anything on credit and were in financial trouble. One paycheck away from homeless. I do not think he is a bully. He tells it like it is. I know no one who goes to him for a car or home loan. Peace!
Excellent points! Especially appreciate your emphasis on work/life balance. Everyone must decide what they truley value. We can live happily on so much less than one might initially think. Thanks for sharing your point of view!
One thing I disagree with Dave Ramsey is paying off the lowest amount credit card first. You should pay off the highest interest rate one first. It will save you more in the long run.
The argument is to give motivation to people that feel like they are stuck and get momentum. Money for some people is not a math problem, it’s an emotional problem.
Interesting video! Our first mortgage was a 30 year with a 10 percent down payment, but we paid it off in 14, so I agree with you there. A rent in our area would have been 100s more a month, so I feel it was the right choice. Also, I agree it's important to have a credit history, even if you just start by charging $10 a month and immediately paying the balance. We have credit cards which we pay off every month, and we use the rewards for either cash back or gift cards for either holiday gifts or vacations.
You are spot on with this video. Just my opinion but it seems that money discipline is the key. Credit cards are just another tool in the money tool box just as credit scores, loans etc. are. It depends on what your life situation is and what your needs are. Needs vs wants and discipline seems to be the key. Thanks for the great video!
I noticed that most people on his show make megga bucks. I am not impressed that someone who makes 150 thousand times 2 with both working and they pay off their debt. I stay out of debt by living below my means. I have a credit card and like you, I pay off each month. I can't figure out how well educated high paying job people even get into debt. I bought the last cheap house in my county 18 years ago. I got a 30 year mortgage and had a 40 percent down payment only because I got an inheritance from my grandmother. The house was under 90 thousand. I was 51 years old and with rents at 800 back then I could not save. No lie, my mortgage was under 200 per month. I saved that 600 for repairs. I paid off by 65 so I could live on my social security and what savings I had at retirement. Still it's a struggle but my rent now would be more than my monthly payment. You can see why I get frustrated when someone who makes as much as DR guests do and were in debt. Try being a single mom, best income all my life was 40 thousand a year, I never had to file bankrupsy and I have no debt. Now that does deserve kudos.
100% agree with you especially the credit cards. I never paid a single dollar interest and I got a lot of sign up bonuses and cash back from expenses I will need to pay anyway. I treat credit card like cash meaning I only buy what I need. It’s also easier to track my expenses with credit cards.
I disagree with the car thing…. I have had low income, saved for cars in cash, rented vehicles and used manual underwriting for a house. It may not be the easiest but honestly it is too easy to fall into bad habits with debt and we only started making headway when we walked away from debt
Gazelle intensity is never supposed to last for more than 2 years…. You work hard for a couple years to slow down and not be scraping by. Idk man. Being able to go on vacations and to be able to buy my kids shoes when they need them is worth the couple of years to pay off debt
Just found your channel and I really enjoy the content you make :). I followed DR’s advice loosely during the pandemic, I was able to increase my credit score by 100 points in 2 years. For the the key takeaway from his baby step program is to tailor things for your lifestyle. Great video!
I know many people helped by Dave Ramsey. Helped them get out of debt and build an emergency fund. But like anything you must use what works for you. I use some things and am working to get out of debt. I do not have credit cards by choice. If I don't have the money I don't need it. I purchased my home many years ago b4 Dave Ramsey. Having shelter is important and rent costs much more than purchasing a home. As far as his requirements that is the ideal but who lives the ideal? We all must use our own judgment. I made sure my home was less than 25% of my take home pay so I could afford to live my life. Always remember he thinks like wealthy people not like a regular person.
I think initially Dave Ramsey and other Televangalistic type financial gurus draw people in who are trying to get a sense of financial stability in their life when they have chaos. I think some bits he has to say are relevant somewhat but again as you say he has not come from a background of financial disadvantage which in and of it self can be a Maze. Saving at least 5k to 10k is modicum. That being said. Having a job that is 15k for a long time it can be quite challenging to save a great deal of money. Paying a 30 year mortgage off and making improvements in order to have a better chunk of money top use for housing is truly a blessing! Your advice is well received. Thank you!
This is a very thought provoking video- and i agree completely with your concerns- in my quest for financial freedom, i read several different books and found a path for myself "down the middle" which seems to be working well- and i started with a savings that would carry me for 6 months if needed 😉
In most cases, a 30 year mortgage is resolved in 5 years if you make double payments each month with the extra payment earmarked as a principle payment- it worked for me- i have bern mortgage free for several years...
You guys/gals are doing great. On the other hand, it’s difficult to pay off mortgage in California as houses are so expensive here. Also, if you put less than 20% down, that means you have to make a lot of money to be able to pay the mortgage monthly.
I agree with you. Thanks for the very realistic financial advice. My husband and I are low-income and are learning to track our spending and maintaining a budgeting plan that works for us. We recently were able to get our mortgage payments reduced due to being approved for a senior property tax exemption.
I can understand your concerns, but I totally disagree. We are a family of 7, debt and mortgage free, and do not use credit. His plan truly does work. And we are NOT high income either. I would encourage you to read his books and watch his RUclips channel, because he addresses every single point you’ve made in detail, and they make perfect sense. I say this as respectfully as possible, but there is nothing “dangerous” or “harmful” about his advice, and we are one of many families that are proof of that.
I am glad Dave's advice is working for you and your family - truly - but that is not everyone's experience. I have read all of Dave's books, listened to is podcast for a couple years, and followed his plan up to finishing my 3-6 months of savings. I know his refute to everything I have said, but still disagree with him. Your experience is not everyone's experience.
@@raisingwildflowers I agree with you- our experience is not the same as others. We have taken the approach of not going back into debt and not having a dime to our name a hill to die on, no matter what it takes, and it has worked.
There was nobody better for me to get out of debt and for that I’m grateful. But his politics and opinions were definitely NOT for me and I just had to stop listening after all of the people that came forward about how they were treated as employees. It was just a step too far for me.
I don't agree with Ransey, however I do see where his plan works for those that have misused credit and have huge amounts of debt. I wouldn't use his system as a life long plan, but it's good for getting out of debt.
I agree with so many points! The $1000 emergency fund is not enough. Just because you build a good credit score doesn't mean you're intending to go deeply in debt. It means you manage available credit effectively. A reliable car that will keep your family safe is often well worth the payments. I'm also concerned about the constant push to set up a budget. For folks who are in serious financial struggle, a short term no spend can be an effective stepping stone to building a budget with confidence. Thanks for your channel!
I don't agree with everything Dave Ramsey says either. I do have a credit card with a very good credit score, which I pay off my balance every month. I did not work when my kids were little. I stayed home with them. Because I wanted to be the one raising them. My husband made good enough money where if we managed it correctly, we were able to have the things that we needed. We bought a house and always drove used vehicles. I have no desire for a brand new vehicle. We were able to take a few family vacations with the kids. We always grew a garden, and I done canning and freezing, and we ate at home most of the time instead of eating out. Going out to eat was a treat. It's not an everyday thing. Thank you for making this video. I really enjoyed it. You are really down-to-earth and have a lot of great advice for people who don't have a lot of money.
I agree with your opinions especially the emergency fund. Dave’s 7-Baby Steps helped me get started but I found my own way after researching RUclips and reading countless blogs.
As we get older our body begins to fail, so creating a nest egg while being younger might be the best option for some people. For example, I know how to do major repairs on my home that will save thousands, but my body has been banged up over the years. As we speak I need to regrade my yard and put in a french drain system that is very expensive to have done by a company. The issue is there is a lot of digging and breaking up concrete that will be harsh on my 50-year-old body. btw Great Video!
no credit score..no credit card=tof life! dave is to stuburn about this..they only way to get somewere in life you need credit score!9WE are in 2022! ..as long you paid them every month..they is no other way about it! i 100 agree whit you.
I've had cash stolen and a credit card stolen. The cash is gone. The credit card was used, but I was only responsible for $50. Have a credit card stolen was a lot less painful than having cash stolen. I think people in high crime areas might be better served having a credit card than carrying cash--if they can use it responsibly. I also think the $1000 safety fund might have worked for most people in 1992 but with inflation, I would suggest $3000 in a safety fund.
Dave Ramsey is known as a bully. Now, some people need that tough love approach.but he calls people idiots,morons,etc.degrades people trying their best. That's unacceptable.more than one person said that.chris Evans quit Dave Ramsey
Chris Hogan was fired for violating the “morality clause” in his Ramsey contract by having multiple affairs while married. The thing that really irked me is that it was well known, and his ex wife claims she told the Ramsey team over and over but they still employed him for several years. It was only when the media found out that they exercised the clause and fired him. They’re also being sued for firing a woman who was pregnant but not married ( though living with her boyfriend). You can find Dave’s quote on that pretty easily too. Like I mentioned earlier… great getting out of debt advice, but that’s where it ends for me .
I know this is an old video, but thank you for sharing your perspective and some common sense on this 😉💚 I have struggle with some of the advice from DR myself. Some it’s not easily transformed to Norway and how we do it here. Thanks again! Love from Johanne, Norway 🇳🇴
I don't agree with his opinion on reverse mortgages either. They are not for everyone but there are elderly people I know that have benefited and been able to stay in their home had it not been for that program. People doing a reverse mortgage also have to have attended a class showing that they've been fully explained to what they are doing should they decide to.
Dave is first and foremost a business man. It’s his injection of evangelism into his principles that irks me. No matter what religion you are, you can have smart spending and investment habits.
1. You mentioned that it's particularly harmful for low income people. Most people that are low income don't have even $1000 in the bank. 2. People ARE irresponsible which is why consumer debt is where it is. Using a credit card for emergencies only causes the poor person to dig into a more desperate situation 3. There are ways around credit scores.......but I get your point. Most poor people have trash scores. I worked with low income families for over 15 years doing budget counseling. Me personally, I don't need a credit score because I don't plan on getting into debt. 4. Saving 20% for down payment means you will be actually buying a house you can afford and you can avoid PMI. 5. Work, work, work, to get out the situation you are in for a short period of time. Not everyone's situation is your situation. Not everyone has children. It's because of your financial freedom that you are able to currently live on $1,500 a month. If it weren't out of debt, imagine having to pay for a house payment, a car payment, credit card debt on that $1,500 per month. 6. Beans and rice. We all ought to make sacrifices to making our dreams come true. No one is forced to follow Dave Ramsey. It's a choice. To each their own. 🤷🏾♀️ Financial freedom is Biblical. If you get there using Dave Ramsey or Suzy orman, or Larry Burkett than so be it....just get there!
She gives a lot of valid points that I agree with. Yep, to each their own. The PMI isn’t a big deal if you can afford the mortgage. The insurance will drop once the value of the home reaches that 20% equity. I wouldn’t wait to purchase a home just for that. Interest rates will continue to rise in our current economy. I don’t agree with living on just beans and rice. Your health is your most important asset, don’t sacrifice it.
@@ja7124 Beans and rice is a euphemism for bare bone food budget. You can have your fruit and veg, but you wouldn't go for the lamb or the steak kinda thing unless it's on sale.
Good advice! I followed his advice and John Commuta's (spelling?) loosely for 15 years. It was great to get debt free, but I never bought land and a home. I had more than enough downpayment too. It's for multiple reasons, but I also lived without credit till a few years ago, when I decided to get a personal loan, to buy an automobile, to build credit.
I’ve always said you cannot afford a house that costs more than 3 times your yearly income. Call me crazy but I’m on my 3rd house after 40+ years. I paid cash and am retired.
So what I’m hearing is to use common sense and question everything. I agree with you. I’ve been a frugal person for 40 years. One person cannot guide the masses. I took from Dave what I understood to make sense. The reasons you fell Dave is misguiding people I simply didn’t follow. His plan or ideas were simply a starting place for me. We all have to critically think for ourselves.
Failing to plan is planning to fail. But be flexible as needed. Continually educate yourself before just jumping into something. Your temperament, your age and stage, your goals should determine your approach to life and money. In general, if you are 18-21yrs, no kids, with good health; now is the time to work a few jobs. Have a main job with any other work determined by your goals. It’s easier to work 2-3 jobs at 18 than 32. In an average housing market, not this crazy one, in many areas, there are programs that help with a down payment and the seller pays 3% of the sales price towards the buyers closing costs. If you can buy a home for less than rent, you plan to live there at least 2 years, and you want to own a home, do it. Depending on your goals, a 15 year mortgage would be great, but its more important to to get a home and have financial flexibility. If you spend down your savings/emergency fund to buy a home, consider getting a roommate or two. Divide the money in 3. 1/3 goes to savings, 1/3 goes to debt repayment-then mortgage payoff and 1/3 is for home maintenance expenses. A savings fund can be accomplished in several ways. Not just putting money aside. - Have a 3-6 mo food supply, as well as a personal and home goods stockpile as part of your “savings.” It allows you to replace food and other goods at the lowest cost. Develop a menu plan, have a list of 14-28 low cost, nutritious recipes you like. Learn to cook from scratch and get the most nutrition from each food. Example: sprout your beans and brown rice before cooking to make more of the nutrition available during digestion, plus they cook up quicker. -Learn to use less electricity so you combine lower expenses with your savings to make it last longer. Invest part of your “savings” into money saving things. Examples would be LED lights (if the 60 watt equivalent isn’t enough light, up it to the 75 watt equivalent, you will still save loads of money). Buy insulated drapes/curtains for your windows, they do save energy. Buy a timer for your hot water heater, you don’t need hot water while you are at work or sleeping (on from 6am-8am, off 8am to 5pm, on 5pm to 10pm, off 10pm to 6am). For weekends, just turn if off for 10pm to 6am. Kill the phantom vampire electricity usage. Get a slow cooker/crockpot. - Make your own clean supplies from 5-7 basic ingredients. - Turn your clothes into a capsule wardrobes. Spring/Summer, Fall/Winter, Casual/Work - Buy secondhand. Free cycle, borrow, yard/garage sales, thrift stores - if you must buy new, try to combine: sales, discounts, rebates, discounted gift cards, buy off-season Keep a positive, can do attitude!
Thank you for your so very Sound Advice and your perspective. It's hard to argue with Dave considering all of his success and much of his advice being good. All of the things that you hit on have caused me some confusion when listening to Dave. My gut just said that can't be right, real people won't be able to buy a house if they do that, until they're 40 and good luck ever finding a house that you can do 15 year fixed that's 25% of your income at least here in California. Thank you for your wisdom bravery and confidence!!!
My opinion is Dave Ramsey is great for people in a financial crisis who respond to a drill sargent approach. Most of his other advice is average at best.
If the grid goes down, chances are that cash in your house isn’t going to be worth much either. Much better to store things that will be useful in a grid down situation. Like food.
1. Baby Step 1. $1000 is not enough money in an Emergency Fund to have before focus on paying debt. 2 & 3: Not having a credit shore is extremely dangerous. Credit cards OK if you can pay them off every month. Credit cards & good credit Needed for rent cars, good jobs, lower insurance costs, and there are rewards. Score needed to buy a house and car, affects deposits on utilities. No credit score requires you to use underwriters, Dave's, for insurance and loans. 3. Home buying recommendation: Debt Free, 10-20% down, Qualify 15 year fixed term, conventional loan. Perhaps buy house with less down, make improvements, and sell for profit later. 4. Giselle Intensity: work work work all the time is a garbage way to live. Life is meant to be enjoyed. 5. Eating beans & rice mentality. All the money won't matter if you are not healthy, getting proper sleep, recreation.
I think people need to use what works for them. I take advice a little here and there. Credit score means everything and nothing wrong with a 30 year mortgage. You will never own a house with his qualifications. I have only liked a few things he has ever said.
The problem is a lot of people don't even have $1,000 saved so I think having $1,000 saved is a big step for many and it's better than nothing. Many people have high interest and high balances on credit cards that is what they need to be working on. Thankfully my mortgage is paid for and I have no credit card debt my only income is Social Security $1,237 so I am able to save 25% ( sometimes a little more ) of that each month
Good for you!! I get $1246 SS after Medicare, still have a mortgage ($32k balance), car paid off, small CC bill, quit PT job recently for health reasons. Many responsibilities still. Budgeting, gardening, chickens etc. Very happy but wish I'd learned about financial strategies Years ago!!
Buying a house is the American dream. If the bank calls for you to pay a loan off, you can lose your home if you can't pay it off. And they can do that. I use to work in a bank. That hasn't happened in awhile. I did the same thing you did. But my return wasn't your return in your home. It depends on market value and area you live in. The best source is many, and a financial advisor the best. I understand health vs money, but he was only recommending til your debt is snowballed. Then you live within your means, what you earn. Best example knew someone her idea of getting out of trouble in finances, her aunt. Every time things went wrong. What did she learn? People have to improve their financial situation, and sometimes you do have to work over. But not your whole life.
I'm in a different season of life, But I feel Dave Ramsey has many sensible suggestions to help you get out of debt. I also know that if I'm spending cash, I'm much more reluctant. To spend it than if I'm using a card.
I do agree with Dave on the $1000 emergency fund . If people don't like that than do $2000. The reason? Most people who are in debt have nothing saved so $1000 is WAY more than they have ever had. Most do what you said and consider the credit card or LOC their back up plan. I 100% agree with you on the credit card and 15 year mortgage points. First of all, in Canada there is no such thing as a 15 year fixed. 2nd of all our houses cost way more than in the states. Our house was 635,000. With Dave's advice we could not afford it. Also in Canada 95$% of hotels and rental car companies will not allow you to pay the depsoit with cash. I think that is ridiculous but that is how it is. Even pay parking at the Dr. requires a credit card. Also, we can't have a zero credir score in Canada because our phone companies and our mortgages report to our credit. I am fine with gazelle intnese, and beans and rice as long as children are not in daycare. Healthy food is cheaper than processed junk anyways so I don't see it as a health problem.
Dave Ramsey helps people who are totally financially illiterate and have shown a great deal of fiscal irresponsibility. Think of it as a first step for financial dummies. Once a person has graduated from this level, his show becomes pure entertainment with a grain of Jerry Springer excitement mixed in and I'm still often listen to it when driving. I'm 65 now, my wife will turn 61 in a few weeks. We live in California and bought our first home late in life. It took two years of getting our income up, a giant effort and the help of some miracles to have all stars align perfectly to qualify. We paid $555K for what's considered a starter home these days, for a home that was stuck in the 1970s, did a lot of renovations ourselves, but we have a great property and now, 6 years after purchasing it, it's already worth in the high $800Ks. In 2020 we refinanced from 4.0% to 2.75% and again we had to do the dance in order to qualify. Now that we have locked that in, our mortgage is lower than it would cost to rent, aside from the fact that we wouldn't even qualify as renters in a home like ours as we just don't have the income. In retrospective, our main regret is that we wasted money for so long, and that we were not able to purchase a home this sooner. Owning one's home and building equity is how the MAJORITY of wealthy Americans accumulated their wealth. Our neighbors bought their home in 2000 for $199K, and it's worth about $800K now. It's going to be paid off before they retire, and not having a mortgage or rent in retirement is of paramount importance. In 3 years when we retire, we will sell our California home, worth hopefully at least $900K by then, and use the equity to buy a smaller but equally nice home in the nicest area of Mexico outright, with hundreds of thousands of dollars left. Without home purchase, we'd never be able to pull this off. Our advice: live as frugally as you can, and buy a home as soon as you can, even if it's a small one that needs lots of elbow grease. In the end, it's all worth it! If we followed Dave Ramsey's advice -- and he doesn't give a "free pass" for people who live in a high-cost-of-living area, we'd have a $4,800 15-year-mortgate, and needed an income of $15K take home, per month. That's how insane his advice is. We'd never be able to afford a home, and would be paying $3,600 a month in rent, if we even qualified for that. I appreciate your down-to-Earth approach; it's a refreshing channel!
DR has a whole program for the military, and his advice is terrible. When you move from state to state and even across the world, you need a credit score. It is easy to have a great score by getting one credit card, using it for 1 bill or just gas every month, and pay it off every month. Also, when soldiers move every 2-6 years, most are never able to buy. They lose 20+ years of equity they could have built in a home had they used a mortgage. Also, it was impossible for us to not have a car loan at first or to get one for less than $10k. Also, when soldiers are deployed, the money they put into their TSP retirement is never taxable. We lost out on a lot of future retirement savings being tax free because we were paying down (very low interest) debt too aggressively. There is more but this is a big enough rant for now. People don't like Suze Orman, but her program for the military was spot on.
Landlords and even some employers run a credit check. You're absolutely right that everyone needs to be concerned about their credit score. You're also right about getting the 30 year mortgage. Maybe you can pay it off in 15 years (that's what I'm trying to do), but having that lower monthly payment makes you safer in case of a job loss or other financial emergency. It's no use to have a 15 year mortgage and then lose your home to foreclosure.
I don't think it is safe to start paying off extra debt when you only have $1000 in savings. That is a recipe for disaster if an emergency happens. You need more than $1000 before you begin throwing all your extra money to debtors. At least 1 month of expenses, but more likely 3 months. Then start paying off debt. Then you can save even more. $1000 just isn't even close to enough for a basic emergency fund.
@Michelle when you say 15k in cash where is the other half of your emergency fund? I’m new to trying to save and get my act together so I’m curious what you mean.
I worked in lending and banking for years and I’m completely debt-free. Here’s my take on your points and someone who’s seen thousands of other people’s finances and done DR. 1. Most people don’t even have $1k in savings. DR is just teaching people to start saving. You can always pause the extra debt payments if something happens that requires more than $1k. 2. Most people mismanage credit cards. That’s why he advises against them. If the people he’s talking to were good with CCs they wouldn’t need his advice. Most people see it as “free money” and just spend away. You can rent a car without a credit card. I do it multiple times a year. $200 hold on my debit card and no credit check. I use Enterprise. 3. I don’t agree with not having a credit score but it’s not the end of the world. A no-score report is way better than a low score. My husband has no score because he hasn’t had debt in so long. We are currently shopping for a new home and he was approved with no score. A good credit score does help with insurance and employment though. 4. I agree with you on house buying. I’d rather people pay towards owning their home than throwing money away renting but they do need a larger savings account since home repairs are expensive. 5. I agree with Gazelle intensity- we worked our butts off for 5 years and paid our house off. Now we have zero stress and taught our kids amazing financial principles and a great work ethic. Both of our teens handle money well and have larger savings accounts than most adults that we know. I’d rather work hard for a couple years than struggle with debt for my children’s entire childhood which would have limited our lifestyle.
This popped up on my phone. I am always happy to see negative videos about this person. I can't stand him. You see, I stopped going to church because I had major life changes and was barely making ends meet, and could no longer pay tithes. I had been paying 25% or more of my gross income. Tithing was mandatory in that church. Therefore, I stopped going. Well, the pastor told me to follow this person, and I was insulted and offended. The pastor expected me to continue paying 25% or more tithes, even though we had a death in the family AND my employer cut our hours to 32, all at the same time. He didn't understand. He thought, if I followed DR, I would still be able to pay 25% or more. I was so insulted. I unsubbed to someone because they said good things about him.
Many churches invite DR to give paid financial seminars to their congregations. Why? DR is a money-making business. Does he prey on churches? And, in turn, do the churches prey on their congregations?
We did 5000 as an emergency fund,and then one year living expenses.Paid off all debt including our house and it raised our credit score to 830.I think the credit score is very important.We are able to slam money to our savings and retirement.Our home is much smaller than the US average,it is only about 1000 square feet.It is still now worth almost 4 times what we paid for it.I just glean the positive of his program and discard what I know will not be good for us.
Yes! I just published a video about using rewards credit cards despite what Dave Ramsey says, I got kicked out of a DR facebook group lol 😝 and I don’t care!
I love Dave Ramsey!! ❤️ That being said, I do not agree with him on everything (especially not having a credit card). His advice on getting out of debt (baby steps) is amazing for many people especially those who aren't very low income. His advice definitely does not fit everyone though. It annoys me to no end when people get upset when he tells them what they NEED to hear, not what they want to hear. I also applaud him for expressing his opinions even if I don't alway agree with him. 👏
I think a lot of what DR and his team say is sensible. What doesn’t sit well with me is when he links financial success to the bible. I also found his comments about how some religious services can be really somber (I’m guessing he might mean Catholicism) and yet his baptist church is wonderful, really isolating for me and other non-evangelical - each to their own Dave. Nothing against them, but he’s there to give financial advice not bash other religions.
@@carolluther1625 oh, he is completely honest about his financial past. However, he tells everyone else to spend years getting their debts paid off, and he took the easy way out. Big separation of priorities there.
As someone from the UK I found Dave Ramsey was the one who helped me the most but I do agree £1000 emergency fund is low! I'd say 3-6 would be more realistic in today's economy then go from there! I agree with your other points too!
I agree with everything you said. You did not mention what I believe is THE WORST advice Dave Ramsey gives. He tells people to invest via commissioned salespeople which is a huge waste of money. Paying all of those unnecessary fees costs between 1/3 and 2/3 of your nest egg over your investing lifetime. That is serious money which should be in YOUR pocket but ends up in the salesperson's instead. Also, he recommends an 8% portfolio withdrawal rate, which is dangerously high. That is twice the amount considered to be "safe". More than half of the people who follow his advice will run completely out of money before they die. He never discloses how risky his 8% withdrawal rate advice is; he even tells people that they will leave a legacy for their family.
Correct! Don’t pay commission fees; going through a broker is outdated dated advice. Lots of investing companies have free no-load funds, ETFs, & mutual funds with low fees!! If you need help investing, get a fixed-fee registered financial planner who is required to put your financial health first. If anyone suggests annuities, RUN FAST!!
Can’t disagree with any of it. Concerning buying a home, if the seller meets the occupancy requirements, all of the profit from a sale is completely tax free. It’s one more major reason to buy.
Also, when ANYONE claims to be the ONLY way, that their way is the only correct way.....
run the other direction. RUN
I'm glad someone finally said it. Also, ignore Suze Orman and Robert Kiyosaki. And, DR needs to shut it about manufactured homes.
I agree with you about the mobile home thing. Millions of people live in them. And they come in all sorts of "ranges" from high end triple wides to beat up tiny shit boxes. And there isn't anything wrong with that. Affordable shelter is hard to come by these days.
@Anita 😈 unbelievable
@@kellybarrington9057 some mobile homes are awesome. Main thing that rules them out for me is the lot rent which can be insane sometimes.
@@unklecorky2181 That's why we bought 5 acres to put ours on.
I would say it loud and clear if I had a platform
I don’t agree with his opinion on tiny houses either. It could be a way for someone to save more money. No it’s not going to appreciate like a house but it could be right for some people like young families who want one parent to stay home and raise the children, or a retired person living on social security provided they have a place to put it.
My issue with DR is he gives me the impression that he thinks if someone retires without a million dollars in the bank they are a loser. Or if someone is living on a low income they are “starving”. I just didn’t make accumulating a big bank account a high priority in my life. I live simply, debt free, and I’m happy living this way. When you don’t need a lot of money you don’t have to stress about money. Even now when all the prices are rising, knowing how to live frugally is very valuable. I do think having a healthy emergency fund helps to keep the stress away.
It's a start. I work in finance and most Americans can't cobble $300 together so anything that at least starts saving in a huge step for most.
DR has to sound stern because there are people that are stupid in terms of finance. The $1000 emergency fund is just a start, better than nothing. I like his idea of paying off the house asap because it secures a roof for you and your family. Also it is a peaceful feeling that money can’t buy. You just don’t know what will happen tomorrow. Working 2-3 jobs for a short time in order to pay for a goal is ok. My husband did that for a year and half in order to put our 3 kids through college. They are debt free and so are we. Now they are all professionals and living with us to save more money and invest. We have plenty of time together and we love to travel as a family. Each family is different, do what is best for your situation.
I just cannot believe that it’s “most” Americans.
Great video! Agree 100%. We have listened to Dave Ramsey for about 12 years and decided to take from him what worked for us. Been debt free for ten years with the exception of our house which will be paid off this summer. Which, btw is a 30 year mortgage being paid off in 17 years. Did I mention, great video? 😉
Thanks so much! Congrats on paying off your home!!! Super exciting!!!
Your channel is really growing. I can see why. I do use credit cards, but I do not carry debt.
One of the best gifts you can give your children is good credit history. If you already have good credit, add your child as an authorized user to one of your credit cards. Make sure you don't get a card with their name on it. Just have them on the account to start their credit history. As long as you pay off your card balance every month, you pass that good history onto them. I added mine to my Discover Card, but they needed to be at least 15 years old. By the time they will need to get a loan, they could have 3-5 years of credit history.
That's a good idea.
I recommend this too. I worked in lending for years and this is a huge advantage. I’m about to do it for my oldest.
I completely agree with all these concerns as does my brother who has a Finance Degree. He has been saying this for year's now. I just took from him what was good for me and went with it. I was able to save a lot, but never would I even be able to buy a home on 25% income, and never could I rent at that low amount either, not possible unless safety isn’t a concern. No one but rich people could buy homes with that requirement. Also have 1 credit card that gets paid off monthly, need credit to afford anything these days. I am big time into healthy eating and his plan is a No Go for me and my family. I also don't value money over my time, or family. I will not work myself to death to have a big bank account. I live a modest and frugal life and I like it that way. No one has blanket advice that works for everyone situation, no one.
👍
So true regarding the home buying qualifications. If I followed DR advice, I would never have purchased my first home and built the equity that I have. I’m now a landlord, but according to DR, I shouldn’t even be a homeowner.
All of this. 100%.
Also having bad finances does not make you a bad person, which he sometimes implies.
You make excellent points. I especially like how you pointed out that making money all the time isn’t as important as spending time with your kids or taking good care of yourself. It’s so true that you can never get that time back after your kids grow up. It’s important to relax, recharge, and enjoy your life along the way of building healthy finances.
You have excellent priorities. Thank you for sharing this info and perspective with everyone. ❤
I have listened to Dave a lot, but I appreciate how you said your time is important too, especially spending time with your kids when they are young. You never get that back. I like your balanced view.
Dave Ramsey changed my life! He gave me direction and focus.. With that being said I completely agree with all 6 points! He gave us direction. I’ll always be thankful for that but I can’t totally agree with all that he teaches.
The 1000 dollar is to start an emergency fund. He is also reaching out to those who do not save and continue to go into dept charging amounts until they get to max on credit card, then get another one. He talks about long term savings and those who cannot control spending on a credit card. Nevertheless, people need at least one credit card and I agree with you as long as you pay it off each month. I know allot of people who never saved money had no problem buying anything on credit and were in financial trouble. One paycheck away from homeless. I do not think he is a bully. He tells it like it is. I know no one who goes to him for a car or home loan. Peace!
Well said.
Excellent points! Especially appreciate your emphasis on work/life balance. Everyone must decide what they truley value. We can live happily on so much less than one might initially think. Thanks for sharing your point of view!
One thing I disagree with Dave Ramsey is paying off the lowest amount credit card first. You should pay off the highest interest rate one first. It will save you more in the long run.
The argument is to give motivation to people that feel like they are stuck and get momentum. Money for some people is not a math problem, it’s an emotional problem.
Interesting video! Our first mortgage was a 30 year with a 10 percent down payment, but we paid it off in 14, so I agree with you there. A rent in our area would have been 100s more a month, so I feel it was the right choice.
Also, I agree it's important to have a credit history, even if you just start by charging $10 a month and immediately paying the balance. We have credit cards which we pay off every month, and we use the rewards for either cash back or gift cards for either holiday gifts or vacations.
You are spot on with this video. Just my opinion but it seems that money discipline is the key. Credit cards are just another tool in the money tool box just as credit scores, loans etc. are. It depends on what your life situation is and what your needs are. Needs vs wants and discipline seems to be the key. Thanks for the great video!
Yes, discipline is the key.
Thank you for sharing this. I felt something wasn't right about his advice and you really articulated it very well.
I noticed that most people on his show make megga bucks. I am not impressed that someone who makes 150 thousand times 2 with both working and they pay off their debt. I stay out of debt by living below my means. I have a credit card and like you, I pay off each month. I can't figure out how well educated high paying job people even get into debt. I bought the last cheap house in my county 18 years ago. I got a 30 year mortgage and had a 40 percent down payment only because I got an inheritance from my grandmother. The house was under 90 thousand. I was 51 years old and with rents at 800 back then I could not save. No lie, my mortgage was under 200 per month. I saved that 600 for repairs. I paid off by 65 so I could live on my social security and what savings I had at retirement. Still it's a struggle but my rent now would be more than my monthly payment. You can see why I get frustrated when someone who makes as much as DR guests do and were in debt. Try being a single mom, best income all my life was 40 thousand a year, I never had to file bankrupsy and I have no debt. Now that does deserve kudos.
100% agree with you especially the credit cards. I never paid a single dollar interest and I got a lot of sign up bonuses and cash back from expenses I will need to pay anyway. I treat credit card like cash meaning I only buy what I need. It’s also easier to track my expenses with credit cards.
I pay mine off every month. I save for my bills then use the card and pay it off. I use the points to pay for streaming service and other treats.
I disagree with the car thing…. I have had low income, saved for cars in cash, rented vehicles and used manual underwriting for a house. It may not be the easiest but honestly it is too easy to fall into bad habits with debt and we only started making headway when we walked away from debt
And we didn’t use Dave’s underwriters. 🤷🏻♀️our bank had one
Also the 20% down payment saves you so much on PMI! It makes it possible to do a 15 year.
Gazelle intensity is never supposed to last for more than 2 years…. You work hard for a couple years to slow down and not be scraping by. Idk man. Being able to go on vacations and to be able to buy my kids shoes when they need them is worth the couple of years to pay off debt
Just found your channel and I really enjoy the content you make :). I followed DR’s advice loosely during the pandemic, I was able to increase my credit score by 100 points in 2 years. For the the key takeaway from his baby step program is to tailor things for your lifestyle. Great video!
100 points! Great job!!!
@@raisingwildflowers thank you! It required a lot of hard work and sacrifice but so worth it :)
I get cash back on my credit cards so i put almost everything even bills on it and pay in full
I know many people helped by Dave Ramsey. Helped them get out of debt and build an emergency fund. But like anything you must use what works for you. I use some things and am working to get out of debt. I do not have credit cards by choice. If I don't have the money I don't need it. I purchased my home many years ago b4 Dave Ramsey. Having shelter is important and rent costs much more than purchasing a home. As far as his requirements that is the ideal but who lives the ideal? We all must use our own judgment. I made sure my home was less than 25% of my take home pay so I could afford to live my life. Always remember he thinks like wealthy people not like a regular person.
I think initially Dave Ramsey and other Televangalistic type financial gurus draw people in who are trying to get a sense of financial stability in their life when they have chaos. I think some bits he has to say are relevant somewhat but again as you say he has not come from a background of financial disadvantage which in and of it self can be a Maze. Saving at least 5k to 10k is modicum. That being said. Having a job that is 15k for a long time it can be quite challenging to save a great deal of money. Paying a 30 year mortgage off and making improvements in order to have a better chunk of money top use for housing is truly a blessing! Your advice is well received.
Thank you!
This is a very thought provoking video- and i agree completely with your concerns- in my quest for financial freedom, i read several different books and found a path for myself "down the middle" which seems to be working well- and i started with a savings that would carry me for 6 months if needed 😉
Learning about finance from several different people and figuring out what works best for your situation is perfect!
All extremes are bad. Everything is moderation is healthier.😊
A thousand dollars is nothing now days. 30 years ago I wouldn't have said that.
In most cases, a 30 year mortgage is resolved in 5 years if you make double payments each month with the extra payment earmarked as a principle payment- it worked for me- i have bern mortgage free for several years...
@Michelle that is also terrific- Congrats to you! I was about the same age when i finished paying for mine....
You guys/gals are doing great. On the other hand, it’s difficult to pay off mortgage in California as houses are so expensive here. Also, if you put less than 20% down, that means you have to make a lot of money to be able to pay the mortgage monthly.
I paid extra every single month ...towards the principle. Some months it was only $5-10 but it added up and we paid ours off in 19 instead of 30.
I agree with you. Thanks for the very realistic financial advice. My husband and I are low-income and are learning to track our spending and maintaining a budgeting plan that works for us. We recently were able to get our mortgage payments reduced due to being approved for a senior property tax exemption.
Well said!!!!! I so agree with you, take bits and pieces from all money advisors and use what works for you. 😊
I totally agree with you on all of it especially credit cards and payments just being responsible. The rewards can be amazing if used responsible. 💯👍
I can understand your concerns, but I totally disagree. We are a family of 7, debt and mortgage free, and do not use credit. His plan truly does work. And we are NOT high income either. I would encourage you to read his books and watch his RUclips channel, because he addresses every single point you’ve made in detail, and they make perfect sense. I say this as respectfully as possible, but there is nothing “dangerous” or “harmful” about his advice, and we are one of many families that are proof of that.
I am glad Dave's advice is working for you and your family - truly - but that is not everyone's experience. I have read all of Dave's books, listened to is podcast for a couple years, and followed his plan up to finishing my 3-6 months of savings. I know his refute to everything I have said, but still disagree with him. Your experience is not everyone's experience.
@@raisingwildflowers I agree with you- our experience is not the same as others. We have taken the approach of not going back into debt and not having a dime to our name a hill to die on, no matter what it takes, and it has worked.
I completely agree! Thank you so much for this video and for putting into words what I have felt for some time now.
There was nobody better for me to get out of debt and for that I’m grateful. But his politics and opinions were definitely NOT for me and I just had to stop listening after all of the people that came forward about how they were treated as employees. It was just a step too far for me.
I don't agree with Ransey, however I do see where his plan works for those that have misused credit and have huge amounts of debt. I wouldn't use his system as a life long plan, but it's good for getting out of debt.
I agree with so many points! The $1000 emergency fund is not enough. Just because you build a good credit score doesn't mean you're intending to go deeply in debt. It means you manage available credit effectively. A reliable car that will keep your family safe is often well worth the payments. I'm also concerned about the constant push to set up a budget. For folks who are in serious financial struggle, a short term no spend can be an effective stepping stone to building a budget with confidence. Thanks for your channel!
I don't agree with everything Dave Ramsey says either. I do have a credit card with a very good credit score, which I pay off my balance every month. I did not work when my kids were little. I stayed home with them. Because I wanted to be the one raising them. My husband made good enough money where if we managed it correctly, we were able to have the things that we needed. We bought a house and always drove used vehicles. I have no desire for a brand new vehicle. We were able to take a few family vacations with the kids. We always grew a garden, and I done canning and freezing, and we ate at home most of the time instead of eating out. Going out to eat was a treat. It's not an everyday thing. Thank you for making this video. I really enjoyed it. You are really down-to-earth and have a lot of great advice for people who don't have a lot of money.
Great video I’m with you on this advice sister! Xx
I agree with your opinions especially the emergency fund. Dave’s 7-Baby Steps helped me get started but I found my own way after researching RUclips and reading countless blogs.
Thanks for doing this, it was well presented. Thanks also for calling out his “advisors”. They help his bottom line, but probably not yours,
Amen. Taking care of yourself and your family is so important. You need good food and time to play and rest.
As we get older our body begins to fail, so creating a nest egg while being younger might be the best option for some people. For example, I know how to do major repairs on my home that will save thousands, but my body has been banged up over the years. As we speak I need to regrade my yard and put in a french drain system that is very expensive to have done by a company. The issue is there is a lot of digging and breaking up concrete that will be harsh on my 50-year-old body. btw Great Video!
no credit score..no credit card=tof life! dave is to stuburn about this..they only way to get somewere in life you need credit score!9WE are in 2022! ..as long you paid them every month..they is no other way about it! i 100 agree whit you.
I've had cash stolen and a credit card stolen. The cash is gone. The credit card was used, but I was only responsible for $50. Have a credit card stolen was a lot less painful than having cash stolen. I think people in high crime areas might be better served having a credit card than carrying cash--if they can use it responsibly. I also think the $1000 safety fund might have worked for most people in 1992 but with inflation, I would suggest $3000 in a safety fund.
Dave Ramsey is known as a bully.
Now, some people need that tough love approach.but he calls people idiots,morons,etc.degrades people trying their best. That's unacceptable.more than one person said that.chris Evans quit Dave Ramsey
Chris Hogan was fired for violating the “morality clause” in his Ramsey contract by having multiple affairs while married. The thing that really irked me is that it was well known, and his ex wife claims she told the Ramsey team over and over but they still employed him for several years. It was only when the media found out that they exercised the clause and fired him. They’re also being sued for firing a woman who was pregnant but not married ( though living with her boyfriend). You can find Dave’s quote on that pretty easily too. Like I mentioned earlier… great getting out of debt advice, but that’s where it ends for me .
I also wonder what happened to Anthony O'Neil.
@@kellybarrington9057 He left with Dave's blessing and has started his own RUclips channel giving financial advice.
@@ayela562 I really enjoyed reading Chris Hogan's books. Sorry to hear of his infidelity..along with his disabled son...😳
I know this is an old video, but thank you for sharing your perspective and some common sense on this 😉💚 I have struggle with some of the advice from DR myself. Some it’s not easily transformed to Norway and how we do it here. Thanks again!
Love from Johanne, Norway 🇳🇴
Totally agree with all your points! I take some of his advice, but there is no way that taking it all would be beneficial in my circumstance!
I don't agree with his opinion on reverse mortgages either. They are not for everyone but there are elderly people I know that have benefited and been able to stay in their home had it not been for that program. People doing a reverse mortgage also have to have attended a class showing that they've been fully explained to what they are doing should they decide to.
Dave is first and foremost a business man. It’s his injection of evangelism into his principles that irks me. No matter what religion you are, you can have smart spending and investment habits.
Dave is first and foremost a business man. This comment is so true he is a business man and his goal is to make money.
1. You mentioned that it's particularly harmful for low income people. Most people that are low income don't have even $1000 in the bank.
2. People ARE irresponsible which is why consumer debt is where it is. Using a credit card for emergencies only causes the poor person to dig into a more desperate situation
3. There are ways around credit scores.......but I get your point. Most poor people have trash scores. I worked with low income families for over 15 years doing budget counseling. Me personally, I don't need a credit score because I don't plan on getting into debt.
4. Saving 20% for down payment means you will be actually buying a house you can afford and you can avoid PMI.
5. Work, work, work, to get out the situation you are in for a short period of time. Not everyone's situation is your situation. Not everyone has children. It's because of your financial freedom that you are able to currently live on $1,500 a month. If it weren't out of debt, imagine having to pay for a house payment, a car payment, credit card debt on that $1,500 per month.
6. Beans and rice. We all ought to make sacrifices to making our dreams come true.
No one is forced to follow Dave Ramsey. It's a choice.
To each their own. 🤷🏾♀️
Financial freedom is Biblical. If you get there using Dave Ramsey or Suzy orman, or Larry Burkett than so be it....just get there!
She gives a lot of valid points that I agree with. Yep, to each their own.
The PMI isn’t a big deal if you can afford the mortgage. The insurance will drop once the value of the home reaches that 20% equity. I wouldn’t wait to purchase a home just for that. Interest rates will continue to rise in our current economy.
I don’t agree with living on just beans and rice. Your health is your most important asset, don’t sacrifice it.
@@ja7124 Beans and rice is a euphemism for bare bone food budget. You can have your fruit and veg, but you wouldn't go for the lamb or the steak kinda thing unless it's on sale.
Good advice! I followed his advice and John Commuta's (spelling?) loosely for 15 years. It was great to get debt free, but I never bought land and a home. I had more than enough downpayment too. It's for multiple reasons, but I also lived without credit till a few years ago, when I decided to get a personal loan, to buy an automobile, to build credit.
I’ve always said you cannot afford a house that costs more than 3 times your yearly income. Call me crazy but I’m on my 3rd house after 40+ years. I paid cash and am retired.
Great Info and very well said I agree $1000 dollars is not enough for an emergency fund.
So what I’m hearing is to use common sense and question everything. I agree with you. I’ve been a frugal person for 40 years. One person cannot guide the masses. I took from Dave what I understood to make sense. The reasons you fell Dave is misguiding people I simply didn’t follow. His plan or ideas were simply a starting place for me. We all have to critically think for ourselves.
Failing to plan is planning to fail. But be flexible as needed. Continually educate yourself before just jumping into something.
Your temperament, your age and stage, your goals should determine your approach to life and money. In general, if you are 18-21yrs, no kids, with good health; now is the time to work a few jobs. Have a main job with any other work determined by your goals. It’s easier to work 2-3 jobs at 18 than 32.
In an average housing market, not this crazy one, in many areas, there are programs that help with a down payment and the seller pays 3% of the sales price towards the buyers closing costs. If you can buy a home for less than rent, you plan to live there at least 2 years, and you want to own a home, do it. Depending on your goals, a 15 year mortgage would be great, but its more important to to get a home and have financial flexibility.
If you spend down your savings/emergency fund to buy a home, consider getting a roommate or two. Divide the money in 3. 1/3 goes to savings, 1/3 goes to debt repayment-then mortgage payoff and 1/3 is for home maintenance expenses.
A savings fund can be accomplished in several ways. Not just putting money aside.
- Have a 3-6 mo food supply, as well as a personal and home goods stockpile as part of your “savings.” It allows you to replace food and other goods at the lowest cost. Develop a menu plan, have a list of 14-28 low cost, nutritious recipes you like. Learn to cook from scratch and get the most nutrition from each food. Example: sprout your beans and brown rice before cooking to make more of the nutrition available during digestion, plus they cook up quicker.
-Learn to use less electricity so you combine lower expenses with your savings to make it last longer. Invest part of your “savings” into money saving things. Examples would be LED lights (if the 60 watt equivalent isn’t enough light, up it to the 75 watt equivalent, you will still save loads of money). Buy insulated drapes/curtains for your windows, they do save energy. Buy a timer for your hot water heater, you don’t need hot water while you are at work or sleeping (on from 6am-8am, off 8am to 5pm, on 5pm to 10pm, off 10pm to 6am). For weekends, just turn if off for 10pm to 6am. Kill the phantom vampire electricity usage. Get a slow cooker/crockpot.
- Make your own clean supplies from 5-7 basic ingredients.
- Turn your clothes into a capsule wardrobes. Spring/Summer, Fall/Winter, Casual/Work
- Buy secondhand. Free cycle, borrow, yard/garage sales, thrift stores
- if you must buy new, try to combine: sales, discounts, rebates, discounted gift cards, buy off-season
Keep a positive, can do attitude!
This is SUCH GREAT ADVICE!!! Thanks so much for sharing!
Thank you for your so very Sound Advice and your perspective. It's hard to argue with Dave considering all of his success and much of his advice being good. All of the things that you hit on have caused me some confusion when listening to Dave. My gut just said that can't be right, real people won't be able to buy a house if they do that, until they're 40 and good luck ever finding a house that you can do 15 year fixed that's 25% of your income at least here in California. Thank you for your wisdom bravery and confidence!!!
My opinion is Dave Ramsey is great for people in a financial crisis who respond to a drill sargent approach. Most of his other advice is average at best.
My new thing is keep lots of cash in your house in SMALL bills.
We are living in unstable times.
What if the Electric grid goes down?
If the grid goes down, chances are that cash in your house isn’t going to be worth much either. Much better to store things that will be useful in a grid down situation. Like food.
i have not thought of it that way.Thank you for sharing.
1. Baby Step 1. $1000 is not enough money in an Emergency Fund to have before focus on paying debt.
2 & 3: Not having a credit shore is extremely dangerous.
Credit cards OK if you can pay them off every month. Credit cards & good credit Needed for rent cars, good jobs, lower insurance costs, and there are rewards. Score needed to buy a house and car, affects deposits on utilities. No credit score requires you to use underwriters, Dave's, for insurance and loans.
3. Home buying recommendation: Debt Free, 10-20% down, Qualify 15 year fixed term, conventional loan. Perhaps buy house with less down, make improvements, and sell for profit later.
4. Giselle Intensity: work work work all the time is a garbage way to live. Life is meant to be enjoyed.
5. Eating beans & rice mentality. All the money won't matter if you are not healthy, getting proper sleep, recreation.
I love working my credit card rewards!
Good info, thanks for sharing!
My husband has always said that Dave’s advice is only good for dual income high earners. Great video, thanks for sharing.
I think people need to use what works for them. I take advice a little here and there. Credit score means everything and nothing wrong with a 30 year mortgage. You will never own a house with his qualifications. I have only liked a few things he has ever said.
The problem is a lot of people don't even have $1,000 saved so I think having $1,000 saved is a big step for many and it's better than nothing.
Many people have high interest and high balances on credit cards that is what they need to be working on.
Thankfully my mortgage is paid for and I have no credit card debt my only income is Social Security $1,237 so I am able to save 25% ( sometimes a little more ) of that each month
Good for you!! I get $1246 SS after Medicare, still have a mortgage ($32k balance), car paid off, small CC bill, quit PT job recently for health reasons. Many responsibilities still. Budgeting, gardening, chickens etc. Very happy but wish I'd learned about financial strategies Years ago!!
Buying a house is the American dream. If the bank calls for you to pay a loan off, you can lose your home if you can't pay it off. And they can do that. I use to work in a bank. That hasn't happened in awhile. I did the same thing you did. But my return wasn't your return in your home. It depends on market value and area you live in. The best source is many, and a financial advisor the best. I understand health vs money, but he was only recommending til your debt is snowballed. Then you live within your means, what you earn. Best example knew someone her idea of getting out of trouble in finances, her aunt. Every time things went wrong. What did she learn? People have to improve their financial situation, and sometimes you do have to work over. But not your whole life.
100% agree! You're awesome 💖
"Christian" people who take advantage are the worst. Ugh. Dave is so irritating to me.
I'm in a different season of life, But I feel Dave Ramsey has many sensible suggestions to help you get out of debt. I also know that if I'm spending cash, I'm much more reluctant. To spend it than if I'm using a card.
You are smart on things... I agree with all here...
I do agree with Dave on the $1000 emergency fund . If people don't like that than do $2000. The reason? Most people who are in debt have nothing saved so $1000 is WAY more than they have ever had. Most do what you said and consider the credit card or LOC their back up plan. I 100% agree with you on the credit card and 15 year mortgage points. First of all, in Canada there is no such thing as a 15 year fixed. 2nd of all our houses cost way more than in the states. Our house was 635,000. With Dave's advice we could not afford it. Also in Canada 95$% of hotels and rental car companies will not allow you to pay the depsoit with cash. I think that is ridiculous but that is how it is. Even pay parking at the Dr. requires a credit card. Also, we can't have a zero credir score in Canada because our phone companies and our mortgages report to our credit. I am fine with gazelle intnese, and beans and rice as long as children are not in daycare. Healthy food is cheaper than processed junk anyways so I don't see it as a health problem.
Dave Ramsey helps people who are totally financially illiterate and have shown a great deal of fiscal irresponsibility. Think of it as a first step for financial dummies. Once a person has graduated from this level, his show becomes pure entertainment with a grain of Jerry Springer excitement mixed in and I'm still often listen to it when driving.
I'm 65 now, my wife will turn 61 in a few weeks. We live in California and bought our first home late in life. It took two years of getting our income up, a giant effort and the help of some miracles to have all stars align perfectly to qualify. We paid $555K for what's considered a starter home these days, for a home that was stuck in the 1970s, did a lot of renovations ourselves, but we have a great property and now, 6 years after purchasing it, it's already worth in the high $800Ks. In 2020 we refinanced from 4.0% to 2.75% and again we had to do the dance in order to qualify. Now that we have locked that in, our mortgage is lower than it would cost to rent, aside from the fact that we wouldn't even qualify as renters in a home like ours as we just don't have the income.
In retrospective, our main regret is that we wasted money for so long, and that we were not able to purchase a home this sooner. Owning one's home and building equity is how the MAJORITY of wealthy Americans accumulated their wealth. Our neighbors bought their home in 2000 for $199K, and it's worth about $800K now. It's going to be paid off before they retire, and not having a mortgage or rent in retirement is of paramount importance.
In 3 years when we retire, we will sell our California home, worth hopefully at least $900K by then, and use the equity to buy a smaller but equally nice home in the nicest area of Mexico outright, with hundreds of thousands of dollars left. Without home purchase, we'd never be able to pull this off. Our advice: live as frugally as you can, and buy a home as soon as you can, even if it's a small one that needs lots of elbow grease. In the end, it's all worth it!
If we followed Dave Ramsey's advice -- and he doesn't give a "free pass" for people who live in a high-cost-of-living area, we'd have a $4,800 15-year-mortgate, and needed an income of $15K take home, per month. That's how insane his advice is. We'd never be able to afford a home, and would be paying $3,600 a month in rent, if we even qualified for that.
I appreciate your down-to-Earth approach; it's a refreshing channel!
DR has a whole program for the military, and his advice is terrible. When you move from state to state and even across the world, you need a credit score. It is easy to have a great score by getting one credit card, using it for 1 bill or just gas every month, and pay it off every month. Also, when soldiers move every 2-6 years, most are never able to buy. They lose 20+ years of equity they could have built in a home had they used a mortgage. Also, it was impossible for us to not have a car loan at first or to get one for less than $10k. Also, when soldiers are deployed, the money they put into their TSP retirement is never taxable. We lost out on a lot of future retirement savings being tax free because we were paying down (very low interest) debt too aggressively. There is more but this is a big enough rant for now. People don't like Suze Orman, but her program for the military was spot on.
A lot of great points being made here.
Landlords and even some employers run a credit check. You're absolutely right that everyone needs to be concerned about their credit score.
You're also right about getting the 30 year mortgage. Maybe you can pay it off in 15 years (that's what I'm trying to do), but having that lower monthly payment makes you safer in case of a job loss or other financial emergency. It's no use to have a 15 year mortgage and then lose your home to foreclosure.
The 1000 is just to get started, a later step is 3-6 e fund, to cover many of those expenses you listed.
I don't think it is safe to start paying off extra debt when you only have $1000 in savings. That is a recipe for disaster if an emergency happens. You need more than $1000 before you begin throwing all your extra money to debtors. At least 1 month of expenses, but more likely 3 months. Then start paying off debt. Then you can save even more. $1000 just isn't even close to enough for a basic emergency fund.
@Michelle when you say 15k in cash where is the other half of your emergency fund? I’m new to trying to save and get my act together so I’m curious what you mean.
I worked in lending and banking for years and I’m completely debt-free. Here’s my take on your points and someone who’s seen thousands of other people’s finances and done DR.
1. Most people don’t even have $1k in savings. DR is just teaching people to start saving. You can always pause the extra debt payments if something happens that requires more than $1k.
2. Most people mismanage credit cards. That’s why he advises against them. If the people he’s talking to were good with CCs they wouldn’t need his advice. Most people see it as “free money” and just spend away.
You can rent a car without a credit card. I do it multiple times a year. $200 hold on my debit card and no credit check. I use Enterprise.
3. I don’t agree with not having a credit score but it’s not the end of the world. A no-score report is way better than a low score. My husband has no score because he hasn’t had debt in so long. We are currently shopping for a new home and he was approved with no score. A good credit score does help with insurance and employment though.
4. I agree with you on house buying. I’d rather people pay towards owning their home than throwing money away renting but they do need a larger savings account since home repairs are expensive.
5. I agree with Gazelle intensity- we worked our butts off for 5 years and paid our house off. Now we have zero stress and taught our kids amazing financial principles and a great work ethic. Both of our teens handle money well and have larger savings accounts than most adults that we know. I’d rather work hard for a couple years than struggle with debt for my children’s entire childhood which would have limited our lifestyle.
This popped up on my phone. I am always happy to see negative videos about this person. I can't stand him. You see, I stopped going to church because I had major life changes and was barely making ends meet, and could no longer pay tithes. I had been paying 25% or more of my gross income. Tithing was mandatory in that church. Therefore, I stopped going. Well, the pastor told me to follow this person, and I was insulted and offended. The pastor expected me to continue paying 25% or more tithes, even though we had a death in the family AND my employer cut our hours to 32, all at the same time. He didn't understand. He thought, if I followed DR, I would still be able to pay 25% or more. I was so insulted. I unsubbed to someone because they said good things about him.
Many churches invite DR to give paid financial seminars to their congregations. Why? DR is a money-making business. Does he prey on churches? And, in turn, do the churches prey on their congregations?
i agree i bought 2 houses on credit cards 0 percent interest and i couldn't get a bank loan
You need to own your own land to have a mobile4 home
Do not rent the land
We did 5000 as an emergency fund,and then one year living expenses.Paid off all debt including our house and it raised our credit score to 830.I think the credit score is very important.We are able to slam money to our savings and retirement.Our home is much smaller than the US average,it is only about 1000 square feet.It is still now worth almost 4 times what we paid for it.I just glean the positive of his program and discard what I know will not be good for us.
Everything you said after rice and beans step . Is exactly what I think
Yes! I just published a video about using rewards credit cards despite what Dave Ramsey says, I got kicked out of a DR facebook group lol 😝 and I don’t care!
I use credit card pay it off every month. David Ramsey said no credit. I have done this 20+ years never paid interest.
The only thing I agree with Dave Ramsey about is getting out of debt 💸 as quickly as possible. Outside of that I don’t pay him any mind.
great video
I love Dave Ramsey!! ❤️ That being said, I do not agree with him on everything (especially not having a credit card). His advice on getting out of debt (baby steps) is amazing for many people especially those who aren't very low income. His advice definitely does not fit everyone though. It annoys me to no end when people get upset when he tells them what they NEED to hear, not what they want to hear. I also applaud him for expressing his opinions even if I don't alway agree with him. 👏
Dave Ramsey got me out of $60k debt, funded IRA, 457b, savings, paid car.....the list goes on. 🧡
I agree. Nice job.
A lot of places take a debit card for car rental. Sadly, a lot of people don't have the discipline to pay their card off at the end of the month.
I think a lot of what DR and his team say is sensible. What doesn’t sit well with me is when he links financial success to the bible. I also found his comments about how some religious services can be really somber (I’m guessing he might mean Catholicism) and yet his baptist church is wonderful, really isolating for me and other non-evangelical - each to their own Dave. Nothing against them, but he’s there to give financial advice not bash other religions.
I agree! 1k Is not much especially for a family or someone in the city
100% agree on woman not working and especially not working 2 jobs!!!
So true! You may want to watch the movie Maxed Out, on RUclips. In it, Dave Ramsey gets left speechless.
Dave Ramsey didn't even follow his own advice. He declared bankruptcy and got a free pass out of his debt.
He made mistakes. Big mistakes. That's part of why he fessed up.
@@carolluther1625 oh, he is completely honest about his financial past. However, he tells everyone else to spend years getting their debts paid off, and he took the easy way out. Big separation of priorities there.
Great video
As someone from the UK I found Dave Ramsey was the one who helped me the most but I do agree £1000 emergency fund is low! I'd say 3-6 would be more realistic in today's economy then go from there! I agree with your other points too!
I agree with everything you said. You did not mention what I believe is THE WORST advice Dave Ramsey gives. He tells people to invest via commissioned salespeople which is a huge waste of money. Paying all of those unnecessary fees costs between 1/3 and 2/3 of your nest egg over your investing lifetime. That is serious money which should be in YOUR pocket but ends up in the salesperson's instead. Also, he recommends an 8% portfolio withdrawal rate, which is dangerously high. That is twice the amount considered to be "safe". More than half of the people who follow his advice will run completely out of money before they die. He never discloses how risky his 8% withdrawal rate advice is; he even tells people that they will leave a legacy for their family.
Correct! Don’t pay commission fees; going through a broker is outdated dated advice. Lots of investing companies have free no-load funds, ETFs, & mutual funds with low fees!! If you need help investing, get a fixed-fee registered financial planner who is required to put your financial health first. If anyone suggests annuities, RUN FAST!!
Yes. Withdrawal fee too high; instead of 8% should be about 4%.
Agree with her
I'm confused. 3-6 months expenses is way more than 10% down on a cheap house in the states. 3-6 months expenses can be 21-42 grand.
Can’t disagree with any of it. Concerning buying a home, if the seller meets the occupancy requirements, all of the profit from a sale is completely tax free. It’s one more major reason to buy.
You missed the forest for the trees. You misunderstood on every single baby step. I don't even like Dave, but you totally don't get what he says.