I'm so happy I found your channel when doing research for my economics class. This was about two years ago and I still watch your videos til today. I'm so thankful you taught me how stupid debt is from a young age. Thank you for your amazing show. Entertaining and educational👍
Michelle Kumpin been listening to Dave since I was 21 didn't get into student debt, car debt and not even a personal home mortgage, my net worth is in mid 6 figures and I'm 27 now, this should be taught in schools
It took a while, but after months of hearing him say cut up your credit card, I cut up my credit card. I made a budget, and live off of less than I make. I'm debt free, with an emergency fund, and a 401K. Thank you Dave Ramsey.
The whole point of the $1000 isn't that the $1000 is enough. The point of it is to change your behavior and mindset. When I was trying to claw my way out of debt, I couldn't mentally conceive of what it was like to have $1000 in the bank. Once I managed to do it, and it took me several months at that point in my life, it was like some kind of switch flipped in my brain and I realized how much control over my situation I actually had. The husband is trying to conceive of this as a mental exercise, and it's not, it's behavioral therapy. I don't agree with every little detail of what Dave says all the time but when it comes to getting out of momentous debt, he's correct.
My sister saved up all summer for $5000 car, and walked out of the lot with $9000 car. Not one month after getting the car she had a $400 repair come up with barely anything to pay for it. Never underestimate that $1000 emergency fund.
Listen! I just started my emergency fund. Only $600 bucks now BUT Let me just say i have never saved money. I was an expert spender The confidence and security that lil emergency fund gave me BLEW ME AWAY!!! Im almost addicted to seeing the money grow Dave, from the bottom of my heart THANK YOU
$1000 emergency fund is important so you will not have to use credit card in case of emergency while on baby step 2. Always better to pay cash than pay interest by using credit cards.
THANK YOU FOR YOUR AMAZING RANTS AND ADVICE! YOU ARE SO EXPERIENCED I LOVE THE WAY YOU EXPLAIN THINGS AND DONT BORE US YOU ARE AMAZING I APPRCIATE ALL YOUR TIPS THANK U FOR BEING WHO U ARE AND NOT STOPPING THESE UPLOADS HERE ON RUclips IF I WOULDNT HAVE FOUND U I WOULD HAVE BEEN LOST I LOVE UR BABY STEPS IM HALF WAY THROUGH THE FIRST LOL I LOVE LOVE YOUR SHOW!!!!!!(:
The purpose for a $1000 emergency fund is so 3 months in when your hot water heater goes out you have it covered. BUT it does more than just that. It keeps you from loosing hope... "Just when we were getting caught up" or "getting ahead" this happens. All this plan does is gives you a simple process to change your attitude and perceptions.
Excellent reminder to stick with it, I needed that. Thanks Dave (and Team) for all of your hard work! It's especially hard to stay focused and not begin impulse buying things once you do start to get ahead too. Dave, let's see some backwards barefoot skiing videos!
Dave Ramsey is awesome I did the Financial Peace class in “2012” and I'm great at handling my finance . I'm saving, giving, tithing, have a Roth and paying of students loan I have no credit card! Thanks to Dave
I used the stuff cash envelope I took five envelope I wrote a category for each envelope and stuff cash in each all the money add up to 5,000 i could use it for personal needs like food but I used 5,000 I paid off my credit cards debt and save 1,600 dollars what left as emergency fund. So thank you Mr Ramsey
dustin s then make it $2,000 if you need to. The baby step 1 emergency fund should NEVER be enough for you to feel comfortable, which is the point 😁. It should be just a small umbrella temporary so you are more motivated to smack the debts in baby step 2 so you can move quickly to build up to a full funded emergency fund in baby step 3.
Dustin It is not. He says it is just intended to cover you minimally, while your main focus is paying down debt, then after all of it is paid off save up to 6 months in living expenses.
Casey Hackel ask him "what if we had an emergency". He might go on saying "why you being negative, blah, blah blah". Then he would say "put it on a credit card". Then your response should be "but aren't we trying to get out of debt" 🤔🤔🤔
great theme! the idea that people in the exercise industry know how to help people lose and maintain healthy weight loss is laughable. the barefoot water skiing and marriage councelling analogies are spot-on 100% point IMO. People may still argue with a well proven plan because [put as simply as I can] nature they like to "live their life not theirs".
Maybe explain that putting an emergency on a credit card means you’ll pay interest on the emergency. Rebuilding a $1000 emergency fund in cash doesn’t cost interest. A credit card emergency does cost interest.
I live in a hurricane area, which means I have a 5% deductible on my homeowners’ for hurricane damage. I also have rental property in the same are that I can’t sell right now. I seem to recall you telling someone they could keep more than $1k in the emergency fund for some reasons. Would I be complying with the plan if I keep $3-4K for now? That still wouldn’t cover even a 5th of one deductible, but would make me feel more comfortable.
I lost my driving privileges. Then I moved my family to Texas for a job change, which requires me to drive or be driven a lot. Do I take care of my licence 1st or baby step 1 first?
I've watched tons of his videos and hes never explained exactly what the $1000 is for. That can't cover but a very few little minor emergencies that might come up
put 1000 dollars to a credit card and you have the 1000 available on the creditcard and your not paying 18% interest on it. put 1000 dollars in the bank and you still have the 1000 dollars on the credit card balance and your paying the interest on that 18%
kevin overholtzer i think he was talking about a 0% interest card, and paying it off in a month though, bc IF you do that it’s the same thing, it’s just most people don’t
Why can’t Dave just answer why the proposed plan is bad? Yea the callers husband is broke but according to Dave’s logic, if a broke person says 1+1 is 2, the broke person must be wrong because all things said by a broke person are wrong
Why didnt he defend his plan with logic and facts instead of the classic because i said so and i know better. All he had to do was explain why that part is better.
@@marksweetser6312 Maybe it is BS but it definitely is important when getting a good rate on a mortgage or any other loan. It's the entire system that is BS but it's still in place.
There are companies that specialise in mortgages the traditional way - where you dont need a credit score. His own company has a list. My bank gave me my first mortgage without a credit score cause I proved myself a good payer of my regular bills and had no debts !.
The math on $1000. Energy fund doesn't work...it is psychological....same as debt avalanche vs. Snowball...and paying with a debit card and a rewards credit card but never paying intrest.....Dave says he always about the math....until he is not....
You can't just call people STUPID when they don't agree with you in every aspect of the matter. NOW THAT'S STUPID!!!! You was in a worse situation than he was, and you find what works for you, doesn't mean it's the only way to skinned the cat. I took what you said in consideration, but I didn't have an emergency $1000 fund. I didn't plan on having an emergency and I didn't. I wanted to throw every penny I had on it. Now I'm debt free and have WAY MORE THAN $1000 IN MY SAVINGS!!!!!! Was that stupid of me???????
denz310 Well, I understand your argument and totally respect it. I don't call people stupid. I am no better than anyone, debt free or not. I respect everyone..I guess Dave emphasizes the so-called $1000 emergency fund for just that-- emergencies. You may have been very lucky/ blessed that while paying your debt off, nothing crazy happened to you that required having to BORROW more money...not everyone will be as fortunate. Get it?
I disagree with you cause you didn't understand what Dave was trying to say. They ARE stupid. They are stupid because they don't change their behavior about getting out of debt. They won't try something new. They are so stubborn that they'll stick to their plan that got them broke in the first place. Dave isn't saying to follow his plan verbatim. I'm sure there are many people who got out of debt using something similar to Dave's baby steps or just in different order down the list. I'm one of them. To me it's like this. If you're drowning and a rescue worker who has experience in rescuing hundreds/thousands of people throws you a rope to save you, wouldn't you reach for it? Or do you wait and say, "I have a better plan, I'll just let the river sweep me away and swim ashore" or "I'll grab onto that tree over there"?
Viet PopLove the writer didn't say anything about them not changing their habits, just that her husband would rather used the money on debt than an emergency fund
m sparkle I get what he's trying to point out, but I see it the same way as the husband. If I would've gotten in an emergency, I would've used my credit card. Key word "Emergency." To get out of debt really is to change your mindset. Like Dave say, live on less than you make. If you had to spend $500 on the credit card, you'll still have $500 less debt in total.
ok I didn't catch that part but sounds like the writer's husband wants to pay off the credit card debt so he can continue to be dependent on credit cards...that's what got him into debt in the first place. The emergency fund is for the unexpected. Dave is right. You're stupid if you don't plan for the future. That's how people retire with nothing.
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! If she's a Christian she should submit to her husband!!!! PRAY like the world is coming to an end but she can only do & say so much! I know where she's coming from but he cannot be forced to do this! He will fail with his way but hopefully he will eventually follow the book! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
M Gm a wise man will listen and take counsel before taking action especially when he is failing. Pride should be thrown aside in order to start making progress.
M Gm The next line is husbands love your wives. It's not loving her to disregard what she's advising. Not trusting her. Why marry someone you don't trust or respect? Its a 2 way thing. You don't submit to someone not acting in love.
Well, I agree with the 3rd and 4th sentences, at least. No, she doesn't need to 'submit' to her husband. In fact, she's being an excellent wife by encouraging him to round this corner (as long as she is respectful in doing so). When he finally submits to the plan, their household will thrive if they continue to follow it.
I'm so happy I found your channel when doing research for my economics class. This was about two years ago and I still watch your videos til today. I'm so thankful you taught me how stupid debt is from a young age. Thank you for your amazing show. Entertaining and educational👍
Thanks for watching Michelle!
Michelle Kumpin been listening to Dave since I was 21 didn't get into student debt, car debt and not even a personal home mortgage, my net worth is in mid 6 figures and I'm 27 now, this should be taught in schools
How are you doing 2 years later? 🤔
@@merc7paul what’s your net worth now
It took a while, but after months of hearing him say cut up your credit card, I cut up my credit card. I made a budget, and live off of less than I make. I'm debt free, with an emergency fund, and a 401K. Thank you Dave Ramsey.
He has helped millions and millions of people. Proof is in the pudding.
Yes he has!!
The whole point of the $1000 isn't that the $1000 is enough. The point of it is to change your behavior and mindset. When I was trying to claw my way out of debt, I couldn't mentally conceive of what it was like to have $1000 in the bank. Once I managed to do it, and it took me several months at that point in my life, it was like some kind of switch flipped in my brain and I realized how much control over my situation I actually had.
The husband is trying to conceive of this as a mental exercise, and it's not, it's behavioral therapy. I don't agree with every little detail of what Dave says all the time but when it comes to getting out of momentous debt, he's correct.
Great comment about learning the control you have
"that's like a 500 pound man arguing with a personal trainer about diet" I lost it 😂😂😂😂
And people still do it, that's the irony.
When someone offers you advice, look at their life. Dave's advice it's simple, it's common sense, and it works!
My sister saved up all summer for $5000 car, and walked out of the lot with $9000 car. Not one month after getting the car she had a $400 repair come up with barely anything to pay for it.
Never underestimate that $1000 emergency fund.
Could have leased a car but, according to Ramsey you build weath by paying cash for old cars.than poor money into them for repairs. Makes a lot sense.
@@warrenkatz1469
You're an idiot.
@@warrenkatz1469 yes it does. Long term it’s better than a 400 a month car payment plus insurance
Never get finessed at a dealership. Know what you want and what you're gonna pay before you go. No negotiating. Cash deals and dip.
We just paused this video at 8 min and 31 seconds and CUT OUR CREDIT CARDS UP!!! Yikes!! Go Dave’s Plan 💪💪💪
Good for you 😁🤘🏽👏🏽👏🏽👏🏽👏🏽👏🏽
Just after 8:36: "Do something radical and different, so that you get something radical and different."
Another great quote from Dave.
"Cause he's stupid." Savage.
P Sharpe he takes no prisoners 😂😂😂
😂😂😂😂😂
The people who disliked this video are those who have to much pride to submit to a plan or try something new.
I love that Dave has a concrete plan and advises everyone the same way based on the plan.
Weight loss and money share the same common denominator... willpower.
True
Funny how that’s where a lot of the money leaks too, going out to eat too much.
Listen! I just started my emergency fund. Only $600 bucks now BUT
Let me just say i have never saved money. I was an expert spender
The confidence and security that lil emergency fund gave me BLEW ME AWAY!!!
Im almost addicted to seeing the money grow
Dave, from the bottom of my heart THANK YOU
You're taking the first steps to change your life, Keeylz! We're so proud of you!
If Michael Phelps tries to teach me to swim I am not going to say "You actually should do it this way".
Everything he says makes total and complete sense
I saved $1500 as an emergency fund, as I'm paid on commission and need a little extra padding.
Dave's ballin' so hard he hired a guy to come to his lakehouse for the summer to teach him how to waterski, LOL BALLIN OUTTA CONTROL
He budgeted the "BALLIN" I'm sure he did.
Talked like a real coach!
"I'm sure I'll lose weight that way, you're sure I'm not the one exception to freakin' physics on the planet?" LOL
..."Well, I'm not sure you can because he's stupid." Love it.
$1000 emergency fund is important so you will not have to use credit card in case of emergency while on baby step 2. Always better to pay cash than pay interest by using credit cards.
THANK YOU FOR YOUR AMAZING RANTS AND ADVICE! YOU ARE SO EXPERIENCED I LOVE THE WAY YOU EXPLAIN THINGS AND DONT BORE US YOU ARE AMAZING I APPRCIATE ALL YOUR TIPS THANK U FOR BEING WHO U ARE AND NOT STOPPING THESE UPLOADS HERE ON RUclips IF I WOULDNT HAVE FOUND U I WOULD HAVE BEEN LOST I LOVE UR BABY STEPS IM HALF WAY THROUGH THE FIRST LOL I LOVE LOVE YOUR SHOW!!!!!!(:
Thank goodness for our $1000 emergency fund!
The purpose for a $1000 emergency fund is so 3 months in when your hot water heater goes out you have it covered. BUT it does more than just that. It keeps you from loosing hope... "Just when we were getting caught up" or "getting ahead" this happens.
All this plan does is gives you a simple process to change your attitude and perceptions.
I’m a grateful member of AA. Sometimes I feel like you’re quoting from the big book, Dave. That’s why I love it and connect with it on another level.
I can't believe I use to think this. it's funny to me when I look back and see how I did all these basic things so wrong.
Excellent reminder to stick with it, I needed that. Thanks Dave (and Team) for all of your hard work! It's especially hard to stay focused and not begin impulse buying things once you do start to get ahead too. Dave, let's see some backwards barefoot skiing videos!
If your already in debt why would you use a credit 💳.
We cut our credit cards yesterday 😁
2019 is our year DEDD FREE😁😄😀thank you Mr Dave GOD BLESS YOU🙏🏻
How is it going? well I hope!
Man he murdered that callers husban!!!!
Dave Ramsey is awesome I did the Financial Peace class in “2012” and I'm great at handling my finance .
I'm saving, giving, tithing, have a Roth and paying of students loan I have no credit card! Thanks to Dave
My wife and I just reached step 4 Thanks Dave
I used the stuff cash envelope I took five envelope I wrote a category for each envelope and stuff cash in each all the money add up to 5,000 i could use it for personal needs like food but I used 5,000 I paid off my credit cards debt and save 1,600 dollars what left as emergency fund. So thank you Mr Ramsey
Excellent.
funny but couldn't agree more with Dave.
I have the opposite problem. I don't feel like 1000 is a big enough emergency fund.
dustin s then make it $2,000 if you need to. The baby step 1 emergency fund should NEVER be enough for you to feel comfortable, which is the point 😁. It should be just a small umbrella temporary so you are more motivated to smack the debts in baby step 2 so you can move quickly to build up to a full funded emergency fund in baby step 3.
Dustin It is not. He says it is just intended to cover you minimally, while your main focus is paying down debt, then after all of it is paid off save up to 6 months in living expenses.
I have this same problem with my husband. he doesn't want to save baby step 1 cause we can use it for debt or use it for his truck to work on it
Casey Hackel ask him "what if we had an emergency". He might go on saying "why you being negative, blah, blah blah". Then he would say "put it on a credit card". Then your response should be "but aren't we trying to get out of debt" 🤔🤔🤔
That said, I’ve met a few personal trainers in worse shape than I am...much worse!
great theme! the idea that people in the exercise industry know how to help people lose and maintain healthy weight loss is laughable. the barefoot water skiing and marriage councelling analogies are spot-on 100% point IMO. People may still argue with a well proven plan because [put as simply as I can] nature they like to "live their life not theirs".
I love the response
Best video ever!!
Maybe explain that putting an emergency on a credit card means you’ll pay interest on the emergency. Rebuilding a $1000 emergency fund in cash doesn’t cost interest. A credit card emergency does cost interest.
I live in a hurricane area, which means I have a 5% deductible on my homeowners’ for hurricane damage. I also have rental property in the same are that I can’t sell right now. I seem to recall you telling someone they could keep more than $1k in the emergency fund for some reasons. Would I be complying with the plan if I keep $3-4K for now? That still wouldn’t cover even a 5th of one deductible, but would make me feel more comfortable.
Dave cracks me up. "because he's stupid" lol
😂 Dave knows me so well
I'm not sure you can get through to him, because he is stupid LOL Dave made me LOL
PRAISE THE ALL MIGHTY POWER OF MONEY AND OUR DISCIPLE RAMSEY
I lost my driving privileges. Then I moved my family to Texas for a job change, which requires me to drive or be driven a lot. Do I take care of my licence 1st or baby step 1 first?
both
Agent Rivera Your license.
How long will that take? Hopefully only a couple of weeks. What's your household income?
So funny how a lot of his videos have new car ads in the beginning.😂😂
Tylenol sandwich, classic! 😂
I've watched tons of his videos and hes never explained exactly what the $1000 is for. That can't cover but a very few little minor emergencies that might come up
The thousand is a starter goal that you are suppose to build off
Totally agree with Dave. 80 %behavior
Gazelle intensity baby 🔥
Now for the broke youtube money experts!!
Yes! They never fail to make their appearance and think that they're not in the same boat as this woman's husband. LOL
Some folks on RUclips definitely have strange ideas about what it means to be 'rich'. They love their debt!
put 1000 dollars to a credit card and you have the 1000 available on the creditcard and your not paying 18% interest on it. put 1000 dollars in the bank and you still have the 1000 dollars on the credit card balance and your paying the interest on that 18%
kevin overholtzer i think he was talking about a 0% interest card, and paying it off in a month though, bc IF you do that it’s the same thing, it’s just most people don’t
I LOVE YOU DAVE!!!!!!😍😍😍😍😝😝😝
When Dave referenced the 500 lb man, he took me out. 🤣
If everyone submits to the plan, how do we come up with new plans?
I'm trying to find a specific video about debt consolidation. Is there a specific one? I'm curious as to Dave's thoughts on it.
It doesn't work because you will still have to pay off the Consolidation Loan; The behaviors have to change.
Lol...Tylenol sandwich
Why can’t Dave just answer why the proposed plan is bad? Yea the callers husband is broke but according to Dave’s logic, if a broke person says 1+1 is 2, the broke person must be wrong because all things said by a broke person are wrong
How did he know about that one in the back??😅😳
Why didnt he defend his plan with logic and facts instead of the classic because i said so and i know better. All he had to do was explain why that part is better.
Doesn't closing credit card accounts hurt your credit score?
Yes. But dave tells us credit score is bs.
@@marksweetser6312 Maybe it is BS but it definitely is important when getting a good rate on a mortgage or any other loan. It's the entire system that is BS but it's still in place.
There are companies that specialise in mortgages the traditional way - where you dont need a credit score. His own company has a list. My bank gave me my first mortgage without a credit score cause I proved myself a good payer of my regular bills and had no debts !.
Did anybody else go watch barefoot water skiing after this? Lol
🤣
Lol
The math on $1000. Energy fund doesn't work...it is psychological....same as debt avalanche vs. Snowball...and paying with a debit card and a rewards credit card but never paying intrest.....Dave says he always about the math....until he is not....
You can't just call people STUPID when they don't agree with you in every aspect of the matter. NOW THAT'S STUPID!!!! You was in a worse situation than he was, and you find what works for you, doesn't mean it's the only way to skinned the cat. I took what you said in consideration, but I didn't have an emergency $1000 fund. I didn't plan on having an emergency and I didn't. I wanted to throw every penny I had on it. Now I'm debt free and have WAY MORE THAN $1000 IN MY SAVINGS!!!!!! Was that stupid of me???????
denz310 Well, I understand your argument and totally respect it. I don't call people stupid. I am no better than anyone, debt free or not. I respect everyone..I guess Dave emphasizes the so-called $1000 emergency fund for just that-- emergencies. You may have been very lucky/ blessed that while paying your debt off, nothing crazy happened to you that required having to BORROW more money...not everyone will be as fortunate. Get it?
I disagree with you cause you didn't understand what Dave was trying to say. They ARE stupid. They are stupid because they don't change their behavior about getting out of debt. They won't try something new. They are so stubborn that they'll stick to their plan that got them broke in the first place. Dave isn't saying to follow his plan verbatim. I'm sure there are many people who got out of debt using something similar to Dave's baby steps or just in different order down the list. I'm one of them.
To me it's like this. If you're drowning and a rescue worker who has experience in rescuing hundreds/thousands of people throws you a rope to save you, wouldn't you reach for it? Or do you wait and say, "I have a better plan, I'll just let the river sweep me away and swim ashore" or "I'll grab onto that tree over there"?
Viet PopLove the writer didn't say anything about them not changing their habits, just that her husband would rather used the money on debt than an emergency fund
m sparkle I get what he's trying to point out, but I see it the same way as the husband. If I would've gotten in an emergency, I would've used my credit card. Key word "Emergency." To get out of debt really is to change your mindset. Like Dave say, live on less than you make. If you had to spend $500 on the credit card, you'll still have $500 less debt in total.
ok I didn't catch that part but sounds like the writer's husband wants to pay off the credit card debt so he can continue to be dependent on credit cards...that's what got him into debt in the first place. The emergency fund is for the unexpected. Dave is right. You're stupid if you don't plan for the future. That's how people retire with nothing.
Christians don't call others stupid. Not nice.
Chris chris - Agreed. Sadly Dave Ramsey blasphemes a lot too, which astonishes me. Christians know better than to say "Oh my God"
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! If she's a Christian she should submit to her husband!!!! PRAY like the world is coming to an end but she can only do & say so much! I know where she's coming from but he cannot be forced to do this! He will fail with his way but hopefully he will eventually follow the book! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
M Gm a wise man will listen and take counsel before taking action especially when he is failing. Pride should be thrown aside in order to start making progress.
M Gm The next line is husbands love your wives. It's not loving her to disregard what she's advising. Not trusting her. Why marry someone you don't trust or respect? Its a 2 way thing. You don't submit to someone not acting in love.
Well, I agree with the 3rd and 4th sentences, at least. No, she doesn't need to 'submit' to her husband. In fact, she's being an excellent wife by encouraging him to round this corner (as long as she is respectful in doing so). When he finally submits to the plan, their household will thrive if they continue to follow it.
first
Live4Revenge1 shut up no one cares
+wakememckinney Congratulations on being first. And congrats to the first hater too!