The power of God is real!!! My wife and I are going through this exact same thing. We have two cars and are paying off student loans and refuse to get into any other debt. I just purchased a second car for us two months ago with cash and my transmission just recently went out. It will cost more to fix than I purchased the car for. Everyone has been telling me to get a loan and buy a brand new car. I prayed about it last night and it just so happened that this video came up this morning. I needed to hear this!! It was all God!!
Never buy a new car. You're on theright path. I would rather buy a $1000 vehicle every month to 6 months then pay 150 to 800 a month for a lease or financed vehicle. The best thing about cheap vehicles is that even when they go out the salvage value is still there and or you can just walk away from the vehicle. Issue with a newer used car even is the same thing can happen to it just at a higher cost. Just adjust thr vehicle for amounr you make. If you make 100k a year. 1000 car. If you make a million then 10k car. Thats my rule of thumb on depreciating assets. Only way I buy vehicle's at high cost is if they are currently or already in the process of increasing in value for the long term such as land rover defender 90, ford gt, etc.
It’s kind of like alcoholism, when someone offers you a drop of alcohol after you’ve been clean for months and you say no that’s a very proud moment for you because you know you’re on the right track to staying clean and you just proved to yourself that you can actually do this and you have the courage and motivation to stay clean.
We were in a similar position as well! We have one car. In September, we JUST paid for the power steering wheel to be fixed & after picking it up from the shop we were then informed that 60-65 issues showed up that was wrong with the transmission. Therefore, the entire transmission needed be rebuilt. We can no idea because until we brought it to the shop to fix the power steering wheel, it drove fine & none of the sensors went off about it. Turns out the sensor was broken & also needs to be replaced. We owe around $12k on the car & the amount for a new transmission plus the sensors were going to cost over $5k+ altogether. This is NOT including inner/outer damage costs from an accident I previously gotten into months ago! We wondered if it was worth it although we still owed so much. After much prayer, we decided to keep the car. Paid for a used transmission & the labor for it, significantly cheaper than paying for a brand new one. Come tax season, we want to pay down a big portion of our car debt as well as purchase another car w/ cash. (Not another car loan) That way, we aren't reliant on just one car.
LOL I've had people online tell me that before... try biking a 33 mile commute everyday... then try it during the winter months when it's 0 degrees outside... having a car is a necessity if you live in a rural area... but I agree on the $170k per year, getting another car shouldn't even be an issue with that amount of pay
He can like pay a rideshare to work and have more than enough money saved up of a nice used car. He makes 14k a month! Or cash in the the car at a lot, take that car push 3k and drop it on a 13k nice car. He could literally pay that car off in 3 months. I am surprised how Dave was too nice to him, when he rips into others that make far less then Bill with less debt too.
@savageheartbeat, its confusing sometimes when he does that, gives out mixed signals when it comes to what people make a year, at least hes entertaining and sticks most of the time to his principles.
A $3k used car isn't "nice". Today's $3k used car is a $800 pre-pandemic used car. It's one major repair away from the junkyard. edit: Whoops, didn't notice the age of the video/post.
almost a year later and labor is killing me, HOA doesn't allow us to work on vehicles and I don't have a garage to work on cars. Boutta spend $650 on labor 😬
Nathan Jay That’s good. It’s just annoying to have to pay so much to get cars fixed. But it’s not mechanics fault why cars are so complicated now and require expensive tools.
rosen380 they are following the steps but because their income is higher their emergencies are more expensive. Some high earners have 3K-4K depending on family size for emergency. Imagine a car accident for a family 5 and they only have 1K saved. That would not cover the hospital bill.
@@brianaelliott9786 OK, so what? My point was that they were calling into the Dave Ramsey show after following Dave Ramsey's Baby Steps looking for some advice on how to move forward given a particular scenario. If the Baby Steps were, "First save $1000 for every $50000 of income you have," then they didn't have enough saved. But, as they were following the Baby Steps, they have exactly as much saved as Dave Ramsey says was appropriate in their situation. Sounds like you are saying the Baby Steps are wrong, more than this particular person being wrong. TBH, I've given up on trying to make arguments like that here (ie, if you disagree, then be prepared to disagree all the time and expect about 80% of the commenters in these threads to side with DR)
rosen380 you said how much should they have saved and I answered. For high income earners probabaly a little more than the standard 1K, just like Dave put in his book for people making less than 20K per year to only save $500. If you actually read his book, that’s in there but if you are just a RUclipsr you’ll miss his common sense lessons in his book. Geez - relax. He said he makes 165-190K a year - having only 1K doesn’t make sense! That’s a no brainer. Having 3K saved won’t slow down his baby steps. Don’t send me another nonsensical rant
@@brianaelliott9786 OK- maybe it is in his book. I never read it because I've never had any financial issues to require it. But I can't say I've ever heard DR call for anything but $1000 for BS1 on the radio show; plenty of high $$ earners seem to call in, so you'd think it would have come up. When the caller said he was on Baby Step #2... and then Dave said, "so, you have $1000 saved" and the guy said yes. And then asked about household income and the caller said $165-190k -- if BS1 isn't $1000 but some figure based on your income, wouldn't that have been an opportune time to bring it up for everyone?
Great advice Dave, financially and psychologically. I was a financial consultant for 35 years. I love the part about changing ones head about debt. It’s like giving up smoking. It’s uncomfortable for a time, but having done it myself, I would never go back. Again ,kudos for your excellent video. Great job.
This is the question I always hoped you’d answer!!!! This was my situation at one time and although I picked a solution that I still don’t agree with (it unfortunately became a joint decision with my parents) I am now hoping to sell the car (that i can’t afford) within a year and get something I can afford and pay off completely at the time of purchase. At the same time tho I’m currently attacking my student loan debt now that i have a stable decent paying job (that doesn’t even feel like work bc I love it so much.). Anyway, so grateful I came across you, you’ve been extremely helpful and helped me successfully pay off my $2,800 in debt on my CC (I sold so much of my stuff it was crazy and I got a second job!). And I just paid off $1,400+ on my student loans and honestly am so motivated by all that I’ve learned from you so far. I have a lot more to learn, and really need to commit to finding a cheaper car (obvi the sooner the better..) but im gonna keep coming back to learn more!!! Thank you for all the lessons you share!!! ❤️❤️❤️
I would love to hear a breakdown comparing a used Car’s average cost of repairs/maintainace over its life compared with a leased’s cars cost over the life of the car !!!
In europe it would likely be cheaper to lease because the smog and mechanical inspection along with very high gas prices scew things one way vs some states where there is none of that.
The details of the car might be important. We put a new $3200 engine in a car worth maybe $5000-6000 or so, versus taking the $3200 (plus $1800-2800 the car was worth as it sat), because we know how the car was maintained from new. Some mystery $5500 car, who knows how it was maintained, so we chose to stick with the devil-we-knew (plus brand new engine with a 3yr/36000 mile warranty on it).
Need to know more about the current vehicle. I dropped about $4000 into my 14 yr old truck last year all in all. However, most was expected maintenance (exhaust for instance). It's a Toyota Tacoma with 143k miles. I've had it over 10 years so I know the vehicle well.
What happens when you have $1000 in savings, 6 kids, a 2008 Honda Odyssey van with an oil leak (maybe $1500 in repairs), 1 income of $36k a year and about $16k in debt. Do you repair the Honda ??
Cut the guy some slack. He's on the DR plan, he said he was looking to replace his car with another (cheap) $5500 car. He's clearly made mistakes but this is why the DR plan exists - many people are not educated about money, and often times when people get into this income level of 160-190k they think they are rich but they don't understand that cash flow =/= wealth. As a result, they get in trouble. It's incredibly easy to torch 165k gross and wonder where your money went, if you are not educated about personal finance.
Could just buy an older lower cost car. After graduating college i needed a new car and bought a 2000 Honda Civic - it was actually a very good car for being so old and cheap. Only use debt for your degree and your first house!
How about just fixing the car and then you have a running car for another couple of years, I'm pretty sure that transmission couldn't cost more than two to three grand to fix oh, still cheaper than a car payment, but this goes back to my old saying you're either making car payments or a reliable car or making the equivalent of car payments fixing it old car
Just another way to think, is how far is your job from where you work? If it ain't too daggum far, you got two feet and a heartbeat, walk, ride a bicycle to and from work! If it is too far for that type of commuting, use public transportation, such as a city bus system for as long as it might take before borrowing money! And if that ain't an option, scrape up two or three hundred dollars from somewhere and find a two or three hundred dollar ole wreck of a car that runs well enough to at least get you back and fourth from work and home only!!! You would be surprised how easy it is to just buy an old wreck, use it til you can scrape up enough money to buy a better car with some saved up cash!!!! I do this all the time, and right now my son and I have a three hundred dollar ole Geo Prizm, named Git-r-on-Down-the-Road-Guzzy!!! The little car has been lasting us for well over a year with not too many heavy issues, but for the most part is a reliable form of work to home to grocery store type car!!! No, we don't leave our immediate traveling area, but then again we ain't got anywhere else we can afford to go anyhoo!!! It's gonna work for us until we can find a better car that we can pay cash for!!! Where there's a will, there is always a way to get things done!!! I'm gonna try and get Dave Ramsey's system built into my son's head to try and live by!!! It just makes sense!!!
You know i feel silly for not ever thinking that renting a car was an option for a short while… then i also thought if i wanted to buy a new truck maybe i should go rent a similar one for a short while just to see if it fits me.
I have a 2013 nissan maxima. 125k miles. Kbb value is around 3k. Ac compeessor went out and will cost 2100 for part and labor for repair. Torn inbetween paying to get it fixed or getting a newer car but for never car id have to borrow atleast around 20k for something decent.and on the other hand i dont think the ac is worth it for me to sell it and by another lemon for less than 10k. What would you all do in this situation?!
I've got a 2005 honda civic that I bought for 500 for it need a transmission so I paid 4500 for a new transmission and new front wheel bearing and new lower ball joints and new front brake the transmission come with a 3 yr unlimited mileage warranty and now I'm fixing to spend 1500 for a new water pump and new timing belt and idler pulley all together I have 6500 invested in my 2005 honda I don't know if this is either the stupidest thing I've ever Doon or the smartest thing it does get 35 miles to the gallon 😂
I payed off $26K in collage debt five years early making $12 per hour. He is making $14K a month and can't find $5,500 in the budget. Get an economical house, you don't NEED a multi million dollar mansion. Stop all luxury spending and embrace minimalism. Only eat the food you cook. No more movies, plays, operas, concerts, etc. for the next three months. You don't need stuff to make you happy, you just need to spend time with the people that matter the most.
He should just fix the car he already has then go save up down the road and get an upgraded car. I put a transmission in my car to extend the years on my 01 lexus.
I’ve never understood the “My repairs cost more than what the car is worth logic” then again I’m a car enthusiast. I know the way I view cars is completely different from the average person. In my opinion the value of a car is subjective. If you buy a $5,000 beater, and put $10,000 into it to make it reliable and it gives you 100,000+ miles…how was that a bad investment? The average car note these days is roughly what $450 depending on make/model? Assuming your credit is absolutely perfect…which for many Americans isn’t the case. Over a span of 4 years you may spend $30,000 in car payments. That’s not including insurance, vehicle maintenance, and repairs. Maybe I’m just biased, because I’m a car enthusiast that loves old school Muscle, and JDM cars. In my experience though it has been way cheaper owning several cars I put work into. I buy cheap, get any needed mechanical TLC done, restore the interior, a few mods, and give them a fresh paint job to make my 90’s/early 2000’s feel new.
The problem is that 5K beater with 10K work done isn't a 15K car now. Its maybe 6K so if you're doing that why not just buy a 15K car from the start thats likely more reliable and in better shape anyways
@@Omegeddon I you’re not mechanically inclined to perform a basic inspection, or pay for one then that’s on you. I have never purchased a beater and it cost me 10k+ in repairs.
@@Omegeddon Lower miles does not automatically mean you’ve purchased a more reliable platform…AT ALL. It’s a common misconception that always comes back to bite people in the behind. It is completely subjective a 100k mile Honda is not the same as a 100k mile BMW. If you’re trying to turn a profit that is mistake #1. If you put money into a vehicle that you get years of use out of the value doesn’t matter. That vehicle has served its purpose, or has gone beyond it.
@@onlyfacts3502 Sure but you mentioned putting 10K work into it so why do that when you could get a 10K better car instead. Unless its a hobby car or you're doing custom work
y2ksierra well don’t beat the man while he is down...he knows he has a problem....his brain only knows how to tackle issues by accumulating debt. His brain doesn’t know how to do this all while avoiding debt.
Debt. This guy has an enormous about of debt/payments that keep him from having any available cash. But, it sounds like he is on the right track of getting his financial life together.
take the bus, car share, walk, cycle. People forget about shift workers, and people living in rural areas that are not commutable by human power. ffs. I can't get a bus to work at 3am, or one home at 2am, I cant walk 42 miles per day. No one to get a lift from. Cars are a pain man.
Spend $5K-$6K on a different used car because you don't want to spend $2K? Just fix the car and take the ding. Add the loss for junking the car, tax, title and registration for a new one, and renting a car until you can afford a replacement and you still have the risk of another used car that can break down. At least the old one will have a new transmission.
"Safe", in what way? Safe as in life is at stake every time you get behind the wheel? Newer cars are generally safer and safer in that respect, but not like we're talking, "new car will survive a 150 MPH head-on collision and 'old' car will kill you with a 3 MPH tap" Or "safe" as in, "I have a reliable car that will almost always get me from A-to-B"? -- I guess a good question might be, is your car a $2000 car because it is a well-maintained 2008 Chevy Aveo or is it a $2000 car because it was a poorly-maintained 2008 Mercedes C300 that is covered in dents, A/C doesn't work, power seats don't work, seats are all ripped, headliner is sagging, etc? One I'd be more likely to put $2000 in and the other I'll sell to Dave for $600.
My $5,500 Toyota echo has been good to me for six years now. Still driving it with no trouble and it's worth about $1,100. I'm sure I have at least three more years left in it.
Dave is right, if you can get it by postponing it, that would be the better option. I'm not sure it would be the best option if you just look at it from a financial point, though, renting a car, even if it is only 300, is going to be more than the interest for one month on any 5-6000 you'd be lending, especially if you'd spend that 5-6 grand the next month, but he's right that our relationship with money isn't just financial, it's psychological. If you think you are strong enough to keep up the battle, do your maths and see if you can make a sacrifice paying off that extra debt. If not, do as Dave tells you.
@@markg999 around the 5 year mark a fiesta should lose half its value, a low mileage, will kept one would be a good value. The low end throwaway cars are good to put a ton of miles on and get you whereever for cheap
@@MilanBroz Well ''oh just suffer for a few months without a car to go to work'' or ''rent a car short-term'' (which is stupidly expensive and will end up costing more) doesn't really count as good advice in my mind. I would prioritize getting a car he can afford asap with very low interest financing so that it does not affect his day to day life negatively and then pay it off early (he was thinking of getting a used car for only $5000 which should be fine)...they have a household income of 170000$/year. As for his debt issue on the line of credit, that is where his discipline should be focused and they should be automatically deferring a significant percentage of their salary monthly to pay it off and budget better to stop accumulating the debt moving forward.
I felt like Dave was too nice to him and didn't ask any questions on how some making 14k a month is struggling to fix their car or can't get a used one without calling the show?
Darkrider6970 All this dude needs is one or two paychecks and he has the money to fix the car. you got to a budget car rental place and use your EF funds to rent a car while you wait for paychecks and accumulate enough money to either fix the car or buy a new cheap car. whatever they were putting monthly into debt goes towards a new used car. The idea is to get RID of debt, not accumulate more.
@@MoistChungus Dave said to briefly rent a car, never go thru a car rental agency again. Turo is the solution if you decide to rent a car. Where I live there is 0 inventory for Corolla or Camry. Sucks
The power of God is real!!! My wife and I are going through this exact same thing. We have two cars and are paying off student loans and refuse to get into any other debt. I just purchased a second car for us two months ago with cash and my transmission just recently went out. It will cost more to fix than I purchased the car for. Everyone has been telling me to get a loan and buy a brand new car. I prayed about it last night and it just so happened that this video came up this morning. I needed to hear this!! It was all God!!
Never buy a new car. You're on theright path. I would rather buy a $1000 vehicle every month to 6 months then pay 150 to 800 a month for a lease or financed vehicle. The best thing about cheap vehicles is that even when they go out the salvage value is still there and or you can just walk away from the vehicle. Issue with a newer used car even is the same thing can happen to it just at a higher cost. Just adjust thr vehicle for amounr you make. If you make 100k a year. 1000 car. If you make a million then 10k car. Thats my rule of thumb on depreciating assets. Only way I buy vehicle's at high cost is if they are currently or already in the process of increasing in value for the long term such as land rover defender 90, ford gt, etc.
He's ALWAYS on time!!
It popped up because of your search patterns. Thank RUclips's algorithms, not God.
God bless you and your family!
@@bullonwallstreet buy a bicycle 😂
It’s kind of like alcoholism, when someone offers you a drop of alcohol after you’ve been clean for months and you say no that’s a very proud moment for you because you know you’re on the right track to staying clean and you just proved to yourself that you can actually do this and you have the courage and motivation to stay clean.
We were in a similar position as well! We have one car. In September, we JUST paid for the power steering wheel to be fixed & after picking it up from the shop we were then informed that 60-65 issues showed up that was wrong with the transmission. Therefore, the entire transmission needed be rebuilt. We can no idea because until we brought it to the shop to fix the power steering wheel, it drove fine & none of the sensors went off about it. Turns out the sensor was broken & also needs to be replaced. We owe around $12k on the car & the amount for a new transmission plus the sensors were going to cost over $5k+ altogether. This is NOT including inner/outer damage costs from an accident I previously gotten into months ago! We wondered if it was worth it although we still owed so much. After much prayer, we decided to keep the car. Paid for a used transmission & the labor for it, significantly cheaper than paying for a brand new one. Come tax season, we want to pay down a big portion of our car debt as well as purchase another car w/ cash. (Not another car loan) That way, we aren't reliant on just one car.
you make $170k per year ffs -- ride a bike for 2 weeks, and then buy another friggin' car
LOL I've had people online tell me that before... try biking a 33 mile commute everyday... then try it during the winter months when it's 0 degrees outside... having a car is a necessity if you live in a rural area... but I agree on the $170k per year, getting another car shouldn't even be an issue with that amount of pay
He can like pay a rideshare to work and have more than enough money saved up of a nice used car. He makes 14k a month! Or cash in the the car at a lot, take that car push 3k and drop it on a 13k nice car. He could literally pay that car off in 3 months. I am surprised how Dave was too nice to him, when he rips into others that make far less then Bill with less debt too.
I'm sure they got thousands in the bank
This a weird call, uncle dave didnt ask how much he owe, and with the caller making more than 150 k a year it seems odd that hes having car problems
Al Delgado the fact that u called him uncle is more weird
@@Light-vu6ws youre weird
@savageheartbeat, its confusing sometimes when he does that, gives out mixed signals when it comes to what people make a year, at least hes entertaining and sticks most of the time to his principles.
I believe he didn't get that far because the emergency created by the car trouble effectively stops the debt snowball until resolved.
Very true
Making 165k and can’t afford a decent used car…. What the hell are these people doing
they have many expensive bad habits.
He makes more money than me but can't save up 3k for a nice used car??? What are the monthly expenses?
A $3k used car isn't "nice". Today's $3k used car is a $800 pre-pandemic used car. It's one major repair away from the junkyard.
edit: Whoops, didn't notice the age of the video/post.
@@forresthodge1024true tho 😅
I’m just glad I can fix cars. Save me a ton for Labor Wise.
almost a year later and labor is killing me, HOA doesn't allow us to work on vehicles and I don't have a garage to work on cars. Boutta spend $650 on labor 😬
Nathan Jay My steering rack got busted. 550 dollars down the drain....
@@angelgjr1999 I paid $560 so not horrible
Nathan Jay That’s good. It’s just annoying to have to pay so much to get cars fixed. But it’s not mechanics fault why cars are so complicated now and require expensive tools.
@@angelgjr1999 yup. My Lincoln Town Car was sort of a special circumstance, where I've been restoring it from junkyard status.
Makes 150k is on baby step 2. Only have 1k saved. A mess.
If they are following the baby steps, how much should they have saved while in baby step two?
rosen380 they are following the steps but because their income is higher their emergencies are more expensive. Some high earners have 3K-4K depending on family size for emergency. Imagine a car accident for a family 5 and they only have 1K saved. That would not cover the hospital bill.
@@brianaelliott9786 OK, so what? My point was that they were calling into the Dave Ramsey show after following Dave Ramsey's Baby Steps looking for some advice on how to move forward given a particular scenario.
If the Baby Steps were, "First save $1000 for every $50000 of income you have," then they didn't have enough saved. But, as they were following the Baby Steps, they have exactly as much saved as Dave Ramsey says was appropriate in their situation.
Sounds like you are saying the Baby Steps are wrong, more than this particular person being wrong. TBH, I've given up on trying to make arguments like that here (ie, if you disagree, then be prepared to disagree all the time and expect about 80% of the commenters in these threads to side with DR)
rosen380 you said how much should they have saved and I answered. For high income earners probabaly a little more than the standard 1K, just like Dave put in his book for people making less than 20K per year to only save $500. If you actually read his book, that’s in there but if you are just a RUclipsr you’ll miss his common sense lessons in his book. Geez - relax. He said he makes 165-190K a year - having only 1K doesn’t make sense! That’s a no brainer. Having 3K saved won’t slow down his baby steps. Don’t send me another nonsensical rant
@@brianaelliott9786 OK- maybe it is in his book. I never read it because I've never had any financial issues to require it. But I can't say I've ever heard DR call for anything but $1000 for BS1 on the radio show; plenty of high $$ earners seem to call in, so you'd think it would have come up.
When the caller said he was on Baby Step #2... and then Dave said, "so, you have $1000 saved" and the guy said yes. And then asked about household income and the caller said $165-190k -- if BS1 isn't $1000 but some figure based on your income, wouldn't that have been an opportune time to bring it up for everyone?
Great advice Dave, financially and psychologically. I was a financial consultant for 35 years. I love the part about changing ones head about debt. It’s like giving up smoking. It’s uncomfortable for a time, but having done it myself, I would never go back.
Again ,kudos for your excellent video. Great job.
This is the question I always hoped you’d answer!!!! This was my situation at one time and although I picked a solution that I still don’t agree with (it unfortunately became a joint decision with my parents) I am now hoping to sell the car (that i can’t afford) within a year and get something I can afford and pay off completely at the time of purchase. At the same time tho I’m currently attacking my student loan debt now that i have a stable decent paying job (that doesn’t even feel like work bc I love it so much.). Anyway, so grateful I came across you, you’ve been extremely helpful and helped me successfully pay off my $2,800 in debt on my CC (I sold so much of my stuff it was crazy and I got a second job!). And I just paid off $1,400+ on my student loans and honestly am so motivated by all that I’ve learned from you so far. I have a lot more to learn, and really need to commit to finding a cheaper car (obvi the sooner the better..) but im gonna keep coming back to learn more!!! Thank you for all the lessons you share!!! ❤️❤️❤️
Get a Toyota Corolla manual
Why in the heck does anyone who makes more than 100k a year have to borrow a dime for anything that's just STUPID
Unfortunately this is very common.
No budgeting before they got a house, bought cars, went to school, yada yada
It is called being married to a women
he's probably not honest about his income.
its not what you make- its what you keep
I agree everything Dave said except $300 for car rental for a month. It will way be way more than that😒
On Priceline I've seen car rentals for a little over $800/month. That is still a lot.
Find a cheap highly skilled shade tree mechanic. I did, and it's one of the smartest money moves I ever made.
I would love to hear a breakdown comparing a used Car’s average cost of repairs/maintainace over its life compared with a leased’s cars cost over the life of the car !!!
In europe it would likely be cheaper to lease because the smog and mechanical inspection along with very high gas prices scew things one way vs some states where there is none of that.
The details of the car might be important. We put a new $3200 engine in a car worth maybe $5000-6000 or so, versus taking the $3200 (plus $1800-2800 the car was worth as it sat), because we know how the car was maintained from new.
Some mystery $5500 car, who knows how it was maintained, so we chose to stick with the devil-we-knew (plus brand new engine with a 3yr/36000 mile warranty on it).
Spend the 2k and car is good for another two years
Sell for 600 bucks, Dave, I can sell to a salvage yard for 600 bucks, I've sold 10 year old cars that need major work for 2k minimum
My car is 20yrs old. It's starting to act out. What can you sell it for?
He needs a trip to Somalia, to see how people really struggle.
This is one of the best videos I have seen from Dave.
Need to know more about the current vehicle. I dropped about $4000 into my 14 yr old truck last year all in all. However, most was expected maintenance (exhaust for instance). It's a Toyota Tacoma with 143k miles. I've had it over 10 years so I know the vehicle well.
Is not how much money you make is how much you keep and invest after your expenses
Literally going through the exact same thing, in the exact same City. It must be going around the 804
What happens when you have $1000 in savings, 6 kids, a 2008 Honda Odyssey van with an oil leak (maybe $1500 in repairs), 1 income of $36k a year and about $16k in debt. Do you repair the Honda ??
What did you do. I’m in similar situation I’m thinking pay $2000 and get it fixed we still owe about 1500 on it too.
Good question. My Subarus on its way out & I make less than your income a yr, so how would I get a reliable car??🤔🤔🤔🤔
You close your legs and marry at least one of the fathers, holy cow
Cut the guy some slack. He's on the DR plan, he said he was looking to replace his car with another (cheap) $5500 car. He's clearly made mistakes but this is why the DR plan exists - many people are not educated about money, and often times when people get into this income level of 160-190k they think they are rich but they don't understand that cash flow =/= wealth. As a result, they get in trouble. It's incredibly easy to torch 165k gross and wonder where your money went, if you are not educated about personal finance.
Could just buy an older lower cost car. After graduating college i needed a new car and bought a 2000 Honda Civic - it was actually a very good car for being so old and cheap. Only use debt for your degree and your first house!
How about just fixing the car and then you have a running car for another couple of years, I'm pretty sure that transmission couldn't cost more than two to three grand to fix oh, still cheaper than a car payment, but this goes back to my old saying you're either making car payments or a reliable car or making the equivalent of car payments fixing it old car
Just another way to think, is how far is your job from where you work? If it ain't too daggum far, you got two feet and a heartbeat, walk, ride a bicycle to and from work! If it is too far for that type of commuting, use public transportation, such as a city bus system for as long as it might take before borrowing money! And if that ain't an option, scrape up two or three hundred dollars from somewhere and find a two or three hundred dollar ole wreck of a car that runs well enough to at least get you back and fourth from work and home only!!! You would be surprised how easy it is to just buy an old wreck, use it til you can scrape up enough money to buy a better car with some saved up cash!!!! I do this all the time, and right now my son and I have a three hundred dollar ole Geo Prizm, named Git-r-on-Down-the-Road-Guzzy!!! The little car has been lasting us for well over a year with not too many heavy issues, but for the most part is a reliable form of work to home to grocery store type car!!! No, we don't leave our immediate traveling area, but then again we ain't got anywhere else we can afford to go anyhoo!!! It's gonna work for us until we can find a better car that we can pay cash for!!! Where there's a will, there is always a way to get things done!!! I'm gonna try and get Dave Ramsey's system built into my son's head to try and live by!!! It just makes sense!!!
Someone at work doesn’t like driving. He takes the bus and walks a lot. I’m sure there are buses in Richmond.
You know i feel silly for not ever thinking that renting a car was an option for a short while… then i also thought if i wanted to buy a new truck maybe i should go rent a similar one for a short while just to see if it fits me.
Driving uber, debt free in Kauai
I have a 2013 nissan maxima. 125k miles. Kbb value is around 3k. Ac compeessor went out and will cost 2100 for part and labor for repair. Torn inbetween paying to get it fixed or getting a newer car but for never car id have to borrow atleast around 20k for something decent.and on the other hand i dont think the ac is worth it for me to sell it and by another lemon for less than 10k. What would you all do in this situation?!
It don’t cost 300 a month to rent a car.
Do you keep taking it to the same repair shop?
165k household income? Borrow a car from someone and pay the insurance for them.
I've got a 2005 honda civic that I bought for 500 for it need a transmission so I paid 4500 for a new transmission and new front wheel bearing and new lower ball joints and new front brake the transmission come with a 3 yr unlimited mileage warranty and now I'm fixing to spend 1500 for a new water pump and new timing belt and idler pulley all together I have 6500 invested in my 2005 honda I don't know if this is either the stupidest thing I've ever Doon or the smartest thing it does get 35 miles to the gallon 😂
Did he say his income is 175 to 195k a year?
Junk it you came to the wrong channel go to Scotty Kilmer.
Get a Toyota lol
Rev up your debt!
I payed off $26K in collage debt five years early making $12 per hour. He is making $14K a month and can't find $5,500 in the budget. Get an economical house, you don't NEED a multi million dollar mansion. Stop all luxury spending and embrace minimalism. Only eat the food you cook. No more movies, plays, operas, concerts, etc. for the next three months. You don't need stuff to make you happy, you just need to spend time with the people that matter the most.
Great response to their problem, you're telling the truth. 👏👏
He should just fix the car he already has then go save up down the road and get an upgraded car. I put a transmission in my car to extend the years on my 01 lexus.
I’ve never understood the “My repairs cost more than what the car is worth logic” then again I’m a car enthusiast. I know the way I view cars is completely different from the average person. In my opinion the value of a car is subjective. If you buy a $5,000 beater, and put $10,000 into it to make it reliable and it gives you 100,000+ miles…how was that a bad investment? The average car note these days is roughly what $450 depending on make/model? Assuming your credit is absolutely perfect…which for many Americans isn’t the case. Over a span of 4 years you may spend $30,000 in car payments. That’s not including insurance, vehicle maintenance, and repairs.
Maybe I’m just biased, because I’m a car enthusiast that loves old school Muscle, and JDM cars. In my experience though it has been way cheaper owning several cars I put work into. I buy cheap, get any needed mechanical TLC done, restore the interior, a few mods, and give them a fresh paint job to make my 90’s/early 2000’s feel new.
The problem is that 5K beater with 10K work done isn't a 15K car now. Its maybe 6K so if you're doing that why not just buy a 15K car from the start thats likely more reliable and in better shape anyways
@@Omegeddon I you’re not mechanically inclined to perform a basic inspection, or pay for one then that’s on you. I have never purchased a beater and it cost me 10k+ in repairs.
@@Omegeddon Lower miles does not automatically mean you’ve purchased a more reliable platform…AT ALL. It’s a common misconception that always comes back to bite people in the behind. It is completely subjective a 100k mile Honda is not the same as a 100k mile BMW.
If you’re trying to turn a profit that is mistake #1. If you put money into a vehicle that you get years of use out of the value doesn’t matter. That vehicle has served its purpose, or has gone beyond it.
@@onlyfacts3502 Sure but you mentioned putting 10K work into it so why do that when you could get a 10K better car instead. Unless its a hobby car or you're doing custom work
@@Omegeddon The point I’m trying to make is simply because a car is more expensive does not make it more reliable
Why not wait a week. You'll have the $$$$ to fix your car.
$165k income and can't put a transmission in a car? Really?
y2ksierra well don’t beat the man while he is down...he knows he has a problem....his brain only knows how to tackle issues by accumulating debt. His brain doesn’t know how to do this all while avoiding debt.
Buy second hand transmission from auto wrecker and fit yourself .
This guy can't control his money i doubt he can change a transmission by himself
How can you be broke to buy a used car making over 14k a month?
If he's following DR's baby steps (which is what he claims), then that's why.
Debt. This guy has an enormous about of debt/payments that keep him from having any available cash. But, it sounds like he is on the right track of getting his financial life together.
Scrap it get some money and get a new one no point of spending more money on a car than what the car is worth chances are car will break down again !
Scotty would tell him to sell the car for parts for $600, take the $1600, buy an old Toyota Celica, and save up for a better car for about 2-3 months.
A 10 year old car for 2k? What timeline was this 🤣
take the bus, car share, walk, cycle. People forget about shift workers, and people living in rural areas that are not commutable by human power. ffs. I can't get a bus to work at 3am, or one home at 2am, I cant walk 42 miles per day. No one to get a lift from. Cars are a pain man.
Spend $5K-$6K on a different used car because you don't want to spend $2K? Just fix the car and take the ding. Add the loss for junking the car, tax, title and registration for a new one, and renting a car until you can afford a replacement and you still have the risk of another used car that can break down. At least the old one will have a new transmission.
I have wasted good hard money on rubbish car rust repairs Todo just wait for some peanut to write the car off and claim isurance
Easy one -- sell it as it is.
WTH! You make 160-190k and you’re really asking this?!!!!
That is what crushing debt causes. Even if you make a lot of money, it means nothing if it's all owed to others.
Get rid of the car. Lol
You make 170k and only have $1000 saved????????????
Where's your money going?
How do people feel save driving around in $2000 cars?
It's not like $2000 cars explode...
"Safe", in what way? Safe as in life is at stake every time you get behind the wheel? Newer cars are generally safer and safer in that respect, but not like we're talking, "new car will survive a 150 MPH head-on collision and 'old' car will kill you with a 3 MPH tap"
Or "safe" as in, "I have a reliable car that will almost always get me from A-to-B"?
--
I guess a good question might be, is your car a $2000 car because it is a well-maintained 2008 Chevy Aveo or is it a $2000 car because it was a poorly-maintained 2008 Mercedes C300 that is covered in dents, A/C doesn't work, power seats don't work, seats are all ripped, headliner is sagging, etc?
One I'd be more likely to put $2000 in and the other I'll sell to Dave for $600.
Hahaha Fruzzy you are funny! That $2000 car was once an expensive one as well. It didn’t just shed a level of safety along with it’s value.
My $5,500 Toyota echo has been good to me for six years now. Still driving it with no trouble and it's worth about $1,100. I'm sure I have at least three more years left in it.
Most cars will become $2000 car at some point...if a car is maintained they dont all of a sudden become a death trap with age.
$170k per year driving a $2K junk car ? it's look like a scripted interview.
Dave is right, if you can get it by postponing it, that would be the better option. I'm not sure it would be the best option if you just look at it from a financial point, though, renting a car, even if it is only 300, is going to be more than the interest for one month on any 5-6000 you'd be lending, especially if you'd spend that 5-6 grand the next month, but he's right that our relationship with money isn't just financial, it's psychological. If you think you are strong enough to keep up the battle, do your maths and see if you can make a sacrifice paying off that extra debt. If not, do as Dave tells you.
From my hometown but seriously how do you make six figures and still in a mess? I only make 16k a year but have 2K saved up
He isnt saying anything at all.
i make 25,000 shoud i but a 60k BMW? am thinking of leasing
oscar becerra 😂
He makes big money, get a brand new car.
You can buy a good used car for $13k -.-
This brand new, zero mileage Nissan versa and ford fiesta start in the $14,000.
@@Powertoolz I guess....rather get one 3-4 years old while they will have miles it will be a much better car than a Fiesta and a Versa...larger also.
@@markg999 around the 5 year mark a fiesta should lose half its value, a low mileage, will kept one would be a good value.
The low end throwaway cars are good to put a ton of miles on and get you whereever for cheap
scrap metal price on a car is only $200 not $500-$600
This is freaking stupid advice in the case...
We are waiting for your suggestion then:-)))
@@MilanBroz Well ''oh just suffer for a few months without a car to go to work'' or ''rent a car short-term'' (which is stupidly expensive and will end up costing more) doesn't really count as good advice in my mind. I would prioritize getting a car he can afford asap with very low interest financing so that it does not affect his day to day life negatively and then pay it off early (he was thinking of getting a used car for only $5000 which should be fine)...they have a household income of 170000$/year. As for his debt issue on the line of credit, that is where his discipline should be focused and they should be automatically deferring a significant percentage of their salary monthly to pay it off and budget better to stop accumulating the debt moving forward.
I felt like Dave was too nice to him and didn't ask any questions on how some making 14k a month is struggling to fix their car or can't get a used one without calling the show?
Darkrider6970 All this dude needs is one or two paychecks and he has the money to fix the car. you got to a budget car rental place and use your EF funds to rent a car while you wait for paychecks and accumulate enough money to either fix the car or buy a new cheap car. whatever they were putting monthly into debt goes towards a new used car.
The idea is to get RID of debt, not accumulate more.
NOOOOOOOO, RENT YOUR CAR THRU TURO!!!! SAVE MONEY. Car rental agency's are a thing in the past. Download the TURO app. Save 50% on renting a car
Turos not a long term fix, if you want to save money buy a cheap Corolla and make it go 100k miles and then you'll have so much money saved
@@MoistChungus Dave said to briefly rent a car, never go thru a car rental agency again. Turo is the solution if you decide to rent a car. Where I live there is 0 inventory for Corolla or Camry. Sucks