No need to “focus” on the 401(k) contribution… It comes out automatically… So you can “focus” on paying off the debt while contributing to at least get 100% match.
What Dave doesn’t mention is that him getting the match for his 401K is an instant 100% return… it’s literally free money the guy is leaving on the table. He should contribute to the matched amount and pay off his debt with everything else IMO..
I agree, he should do the 401 k traditional for now to take advantage of taxes, eat rice and beans, cut vacation and even if possible get a roommate! Eat from home and pay off that debt
The MBA and marathon analogy isn't that great whereas contributing to an IRA with a match requires virtually no distracting effort or focus. The man's income can tolerate both paying off the debt and the IRA contribution quite easily. Both plans seem to work, it's the going out to eat and vacations that are the only part of the plan that doesn't.
My friend asked me in the roaring 90's should he pay his house off or should he invest - I said, "Do both". I always did and I'm in good shape now. You need to KEEP putting money into your 401K. "Time" is your best investing friend.....so is dollar-cost averaging.
@@TheRealTommyBear33 Are you investing in a taxable brokerage account, or a business, or yourself? Invest in whatever gives you a good return on your investment.
There is a big difference between Tiktok and RUclips. Tiktok is where the idiots of the internet congregate. No intelligent life there whatsoever. There is some intelligent life on RUclips.
You must at least invest up to the match in your 401k. That match is income. You must build that base in your 401k as early as possible regardless of debt. 401k match is like time. Don’t pass it up.
Yeah I agree 100%. Unless one has high interest debt, one would be stupid to not invest like that. The idea of focus is somewhat incorrect. Anyone running a business or a family knows how to focus on more than one thing at a time 🤣
Plenty of people have had that idea and they have not changed the way in which they handle their finances. Go create your own plan. Get people to do it your way and then monitor the success rate. If you are too lazy to try, at the very least you could stop talking here and throw your support towards someone you align with more.
@@matthewlangley3524 I look up a lot of investing videos. This one came up so I watched it and gave my opinion. That's how the internet works. Stay mad bro
Mostly high earners call into the Ramsey show, so it's always an easy fix, "stop being stupid, stop being financially reckless and start paying your bills" It's not real world issues of unexpected large life expenses, health issues, low incomes and high cost of living, etc, which are mostly correctable but it's not as easy to navigate
I'd love to see the stats on how many millionaires in Dave's study kept contributing enough to their 401k to get the match while paying off debt. I doubt they asked this question because the answer would likely contradict Dave's teachings
I've never understood this. You can still be "gazelle intense" without 6% of your income. Why would you throw away free matching money from your employer?
His advice is for getting out of debt, that's it. He is very focused on that. If you want advice for building and preserving wealth Dave is not the person for that.
I definitely think it's true that most people aren't nearly as good at balancing multiple difficult things as they think they are. I believe it's the dunning Kruger effect in psychology that basically people tend to weigh overestimate their ability at being good at things. Like if you were to ask a 1000 people if they are in the top 20% of good drivers like everybody's going to say yes lol.
If you want to get out of debt, focus on paying off the mortgage first. If you want to take a chance at making more money, focus on investing first. One is guaranteed, the other one isn't. Its important to know that you don't have to stick with one way or the other. Many people do both. At the end of the day you want to have your house paid off AND have enough invested to retire.
The caller was paying off his loans using a self-imposed three year amortization. Nothing wrong with that. Keep doing what you are doing, contribute to the 401k AT LEAST enough to get the match, and stop listening to talk radio salesmen who are trying to get you to buy his books, seminars, apps, and Rachel Cruz wallets.
I am in debt but guess what I am still doing contributing to my 401k,my company is a publicly traded company and they have profit share they will contribute that profit share to my 401k.I got 1600 contributed to my 401k.
I was Dave Ramsey before I heard of him. Don't owe anything on time, but have a hard time with "retirement savings". But I have a good bit of paid for land, including Cemetery lot.😁
@@chawanneburn6003 I'm not in a business of my own anymore. I work for someone else, in the biz I love, doing what I know how to do. No gripes about pay. I have been the boss in this biz that feeds the country, and I know how it goes.
If lack of focus is so difficult why would anyone ever stop putting money into their 401K when young? Especially with a match. Think of it like a tax and don't question it. People that get off the investment horse usually waste the difference somewhere else.
@@PInk77W1 No they don't. Look, if you're a train wreck and financially illiterate which a lot of people are, then Dave's steps sure beat doing nothing. That said, if you have half a brain you know that unless you have so much debt you can't breathe not taking the 100% guaranteed return is foolish. And there's no chance those 10,167 millionaires stopped their 401k's while becoming debt free. I know I didn't.
And on this Dave is 100% wrong. No matter what interest is charged to you on the debt, you will always beat it by a mile on an employer match. All you are doing by stopping your investment is mortgaging your future to pay off the mortgage you already took out on your future. Should you be going crazy on investing to pay it off, no, absolutely not, the regular market will not beat it, but your tax free employer contribution and match is easy, you never see the cash, and it is far better than paying down debt
Dave is wrong. Always using straw man arguments saying we asked all the millionaires and they didn't say so and so? Listen to you friends on this. Dave is always putting other putting people down. His way is not the only way. Millions of people do multiple things at one time. So what if it takes longer then two years to pay. It then takes four. Big deal. Stopping it for two, you will lose out on hundreds of thousands in the future.
While i agree with you and also suggest take the match.. Dave's way is also, not wrong. Its just not that efficient. But he is not going for math,as he admits... he goes for behavioral changes.. I say, Take the good, junk the rest.. lol
@@NaNa-lt1po They can do multiple things at one time. They planned a wedding, and got there masters in the same year. Dave should stop thinking that no one has the discipline to do multiple things at the same time.
Jimmy Numbnuts you are CORRECT! There is no reason to ever stop investing especially for a young person with a match. Once they stop their 401K they blow the money elsewhere.
If he asked the millionaires if they kept contributing to their 401k (enough to get the match) while paying off debt, I bet most of them would say Yes.
He has a wife...thats the problem, women love spending and men have the reality/fear that if you dont spoil your woman and give her what she wants materialistically she's gonna leave you for a man that will
They're currently available ongoing SBA grants fund's for homeless people, widows, single mother, Veteran's,,transportation grants, mental health grants, jobless people and business grants funds programs in All America states
This is where Dave loses me. He has a solid foundation for his 'baby-steps-program' and general approach to money. But despite his religious views, god didn't put this on his tablets. This isn't a black and white issue. Yes, cut expenses to pay off his debt faster. Live on rice and beans like no one else for a few years to get out of debt and then start building wealth. But to give up the match makes no sense. This guy should be able to put 30-40k aside a year to pay off the debt and be done in 2.5 years. Turning down a free 25k a year just to knock that debt out 8 months faster is bad advice. If you really want to pay off the debt faster, live on the bare minimum. But don't turn down free money. There needs to be nuance.
Should I Stop Investing To Get Out of Debt? No, you should reduce spending to get out of debt!
Have you applied for your state grants funds yet
No need to “focus” on the 401(k) contribution… It comes out automatically… So you can “focus” on paying off the debt while contributing to at least get 100% match.
I paid off my car, bought my house and I am still financially responsible while taking the match the whole time. Just be smart about it.
Jesus maybe loves you
Congrats! That's great news
Dave haven't changed in 30 years what you think he was going to say no matter how the world changes he keeps his same principles
Really stupid when you think about it.
@@frobeck1487 you’re stupid for watching ramsey when you disagree with his principals.
@@frobeck1487 Yep
Because they work.....
What Dave doesn’t mention is that him getting the match for his 401K is an instant 100% return… it’s literally free money the guy is leaving on the table.
He should contribute to the matched amount and pay off his debt with everything else IMO..
It’s more than 100%. Compounding until retirement age
I agree, he should do the 401 k traditional for now to take advantage of taxes, eat rice and beans, cut vacation and even if possible get a roommate! Eat from home and pay off that debt
@@NoRegertsHere very true! I was just referring to the instant ROI from the match itself
Yup
When you are in debt, there is no money on the table, you are in a hole.
Never stop your matching
Agreed that's the biggest thing I disagree with Dave about.
The MBA and marathon analogy isn't that great whereas contributing to an IRA with a match requires virtually no distracting effort or focus. The man's income can tolerate both paying off the debt and the IRA contribution quite easily. Both plans seem to work, it's the going out to eat and vacations that are the only part of the plan that doesn't.
My friend asked me in the roaring 90's should he pay his house off or should he invest - I said, "Do both". I always did and I'm in good shape now. You need to KEEP putting money into your 401K. "Time" is your best investing friend.....so is dollar-cost averaging.
wish my job had a 401k lol
@@TheRealTommyBear33 Are you investing in a taxable brokerage account, or a business, or yourself? Invest in whatever gives you a good return on your investment.
Dave is like the AA of the financial world. Some people can have a glass of wine with dinner with no problem, others become addicted.
Get the match and put the other amount at the student loans. They have masters degrees.
It's ALL in behavior, the "how bad do you want it" approach. Discipline isn't easy.
He just bashed people for being on TikTok when this is on RUclips lol. The younger generations deserve personal finance education too!
There is a big difference between Tiktok and RUclips. Tiktok is where the idiots of the internet congregate. No intelligent life there whatsoever. There is some intelligent life on RUclips.
You must at least invest up to the match in your 401k. That match is income. You must build that base in your 401k as early as possible regardless of debt. 401k match is like time. Don’t pass it up.
With how young he is, it would be completely moronic to not at least do the 401k match.
Instant 100% ROI too
Yeah I agree 100%. Unless one has high interest debt, one would be stupid to not invest like that. The idea of focus is somewhat incorrect. Anyone running a business or a family knows how to focus on more than one thing at a time 🤣
Plenty of people have had that idea and they have not changed the way in which they handle their finances.
Go create your own plan. Get people to do it your way and then monitor the success rate. If you are too lazy to try, at the very least you could stop talking here and throw your support towards someone you align with more.
@@matthewlangley3524 I look up a lot of investing videos. This one came up so I watched it and gave my opinion. That's how the internet works.
Stay mad bro
@@Michael-mf6vm
Company match is pretax.
Mostly high earners call into the Ramsey show, so it's always an easy fix, "stop being stupid, stop being financially reckless and start paying your bills" It's not real world issues of unexpected large life expenses, health issues, low incomes and high cost of living, etc, which are mostly correctable but it's not as easy to navigate
Exactly
"They have more degrees than a thermometer." CGA
Good one.
dave triggered @4:57 😂
Big time.
I can’t believe this guy. 160 K and he can’t figure out how to pay off 85K? Please…
I"m with you - this guy is a dolt. I'd be rich if I was making 100 grand much less 165 grand!
@@dancalmpeaceful3903 100k ain’t as much as you think
@@reese85 in CA 100k as a single taxpayer means you'd pay almost 50 percent of your income in taxes.
@@dancalmpeaceful3903 that’s why you aren’t rich and why you aren’t making a 100k because you’re a dolt yourself.
That’s two ppl making 80 it’s not rocket science nor rich
I'd love to see the stats on how many millionaires in Dave's study kept contributing enough to their 401k to get the match while paying off debt. I doubt they asked this question because the answer would likely contradict Dave's teachings
I like to see how many also. Dave always bring up strawman points. Which I'll bet they never even asked them that question.
Despite Dave saying his research is "air tight", it has a lot of flaws
I get the match even though I decreased my contributions. $273 to my $50 biweekly.
@@lepoj Dave may have cherry picked the questions to validate himself.
It's irrelevant. No debt, paid for home and 401k afterwards is what got them there. He says it all the time
I've never understood this. You can still be "gazelle intense" without 6% of your income. Why would you throw away free matching money from your employer?
His advice is for getting out of debt, that's it. He is very focused on that. If you want advice for building and preserving wealth Dave is not the person for that.
I definitely think it's true that most people aren't nearly as good at balancing multiple difficult things as they think they are.
I believe it's the dunning Kruger effect in psychology that basically people tend to weigh overestimate their ability at being good at things. Like if you were to ask a 1000 people if they are in the top 20% of good drivers like everybody's going to say yes lol.
If you want to get out of debt, focus on paying off the mortgage first. If you want to take a chance at making more money, focus on investing first. One is guaranteed, the other one isn't.
Its important to know that you don't have to stick with one way or the other. Many people do both. At the end of the day you want to have your house paid off AND have enough invested to retire.
The caller was paying off his loans using a self-imposed three year amortization. Nothing wrong with that. Keep doing what you are doing, contribute to the 401k AT LEAST enough to get the match, and stop listening to talk radio salesmen who are trying to get you to buy his books, seminars, apps, and Rachel Cruz wallets.
Yeah, cuz nothing he says works…its been working for 30 years. And you can check out his books at the library, everyone knows that.
Nah, bro. Pay yourself first up to the free employer match. Pay off the loan with the rest. Easy equation.
I am in debt but guess what I am still doing contributing to my 401k,my company is a publicly traded company and they have profit share they will contribute that profit share to my 401k.I got 1600 contributed to my 401k.
7:50 I'm feeling this being in BS456 trying to pay off the mortgage, save for retirement and also put money aside for sinking funds.
Are you able to successfully applied for your state grants application fund's yet
I was Dave Ramsey before I heard of him. Don't owe anything on time, but have a hard time with "retirement savings". But I have a good bit of paid for land, including Cemetery lot.😁
Are you able to successfully applied for your SBA grants fund's yet
@@chawanneburn6003 I'm not in a business of my own anymore. I work for someone else, in the biz I love, doing what I know how to do. No gripes about pay. I have been the boss in this biz that feeds the country, and I know how it goes.
@@morganottlii2390 Sbagrants649@
@@morganottlii2390 That's SBA Gmail address......Just emailed SBA directly for further grants inquiry about your state
Awesome video guys!!
Are you able to successfully applied for your SBA grants fund's yet
At $160,000 a year salary this man can contribute to his 401k while aggressively paying off his debt.
Great video!
If lack of focus is so difficult why would anyone ever stop putting money into their 401K when young? Especially with a match. Think of it like a tax and don't question it. People that get off the investment horse usually waste the difference somewhere else.
Exactly. Never stop unless it’s life or death.
According to Dave... yes
And this is why The Money Guys advice is far superior to Dave's. He sure is a clown sometimes.
His worse advice by far has to be this and his 10% withdrawal strategy.
He is just getting people to concentrate 100% on getting out of debt.
@@PInk77W1 and in the process he's killing their financial future
@@aaront936
10,167 millionaires he interviewed disagree with u.
@@PInk77W1 No they don't. Look, if you're a train wreck and financially illiterate which a lot of people are, then Dave's steps sure beat doing nothing. That said, if you have half a brain you know that unless you have so much debt you can't breathe not taking the 100% guaranteed return is foolish. And there's no chance those 10,167 millionaires stopped their 401k's while becoming debt free. I know I didn't.
We dont want to be rich, just set free from system slavery.
He's trying to ball it up early. Causing all of us inflation
Whoa, good timing
Always take free (match) money, always. They don't need beans and rice, they aren't poor...
He Got right back in debt
Lattes are fairly healthy
And on this Dave is 100% wrong. No matter what interest is charged to you on the debt, you will always beat it by a mile on an employer match. All you are doing by stopping your investment is mortgaging your future to pay off the mortgage you already took out on your future. Should you be going crazy on investing to pay it off, no, absolutely not, the regular market will not beat it, but your tax free employer contribution and match is easy, you never see the cash, and it is far better than paying down debt
Dave is wrong. Always using straw man arguments saying we asked all the millionaires and they didn't say so and so?
Listen to you friends on this. Dave is always putting other putting people down. His way is not the only way.
Millions of people do multiple things at one time.
So what if it takes longer then two years to pay. It then takes four. Big deal.
Stopping it for two, you will lose out on hundreds of thousands in the future.
While i agree with you and also suggest take the match.. Dave's way is also, not wrong. Its just not that efficient.
But he is not going for math,as he admits... he goes for behavioral changes..
I say, Take the good, junk the rest.. lol
@@NaNa-lt1po They can do multiple things at one time. They planned a wedding, and got there masters in the same year.
Dave should stop thinking that no one has the discipline to do multiple things at the same time.
Jimmy Numbnuts you are CORRECT! There is no reason to ever stop investing especially for a young person with a match. Once they stop their 401K they blow the money elsewhere.
@@NaNa-lt1po stopping investing is the wrong behavioral change to instill.
If he asked the millionaires if they kept contributing to their 401k (enough to get the match) while paying off debt, I bet most of them would say Yes.
He has a wife...thats the problem, women love spending and men have the reality/fear that if you dont spoil your woman and give her what she wants materialistically she's gonna leave you for a man that will
They're currently available ongoing SBA grants fund's for homeless people, widows, single mother, Veteran's,,transportation grants, mental health grants, jobless people and business grants funds programs in All America states
I like lot of Dave, but I think on this one it is terrible advice to give up the match.
I get that Dave is trying to help but he routinely gives out bad financial advice.
Investing.....lol
More like hope and gambling.
This is where Dave loses me. He has a solid foundation for his 'baby-steps-program' and general approach to money. But despite his religious views, god didn't put this on his tablets. This isn't a black and white issue.
Yes, cut expenses to pay off his debt faster. Live on rice and beans like no one else for a few years to get out of debt and then start building wealth. But to give up the match makes no sense. This guy should be able to put 30-40k aside a year to pay off the debt and be done in 2.5 years. Turning down a free 25k a year just to knock that debt out 8 months faster is bad advice. If you really want to pay off the debt faster, live on the bare minimum. But don't turn down free money.
There needs to be nuance.
Thank you Mr. Ramsey
God first, and your advice second, love it!
May the lord continue to bless you and your ministry.
Gag.
This guy is NOT listening - he NEEDS to take Dave seriously. Glad to see Dave got a bit upset - AS he should. This guy WAS not GETTING the message.
✝️🙏
Whoa, good timing