Respect to you. I also paid my student loans and I hate to see other people trying to bully our representatives to forgive their debts. I support reform on tuition but not theft.
@@bcvc3365 It took me about 4 years to pay that amount off. And mind you I was working like minimum wage jobs. However I didn't have other expenses so almost all my money went to debt.
He created a system that works, of course he's gonna say the same thing over and over. The system doesnt care about your unique situation, it cares about following the steps.
@@EmilyDavidson-hd3qz Good point. Its like trying to lose weight but not cutting out junk food. You can't have both. You either want to live a certain lifestyle or you want to get out of debt.
Definitely need to pay off those student loans. Buying a home to flip and sell always carries a degree of risk - there's no sense in taking that big of a risk when the alternative is paying off debts.
Agreed - just getting the loans paid will free that extra cash in payments. It's just like getting another job or having another stream of income from a rental - except one has lowered one's risk by getting rid of debt. When I get rid of my mortgage in about four years, that will be another 640 dollars per month saved. I really look forward to that.
Do they know how blessed that are to ONLY have $19k in student loans??? My husband and I have about $140k combined and it feels like we will never pay it off. He’s been insistent on buying a house, so I’m compromising by agreeing to it only after we’ve paid off our smaller consumer debt and save some money for a down payment. I know it’s out of order, but my husband is stubborn and Dave’s name is almost a curse word in our house to him🤦🏽♀️
Brenden Sprague I have a Masters degree in counseling from a private university. My husband has a Bachelors degree in Communications. He’s not using it though.
Flip houses in this overpriced market doesn't always make you money. If you have skills in constructing, use that skill. The secret to getting rich, Make money on someone else's Dime!
Did anyone else think she was going to be the one wanting to buy a house because her husband was the one who convinced her to call this show? That was an interesting twist.
Honestly I have a suspicion that she switched the roles for the call. She was giggling a lot and I started to wonder if it was actually her that wanted to buy the house she knew what dave would say so switched it around lol
Dave’s show would be irrelevant if people would just follow the baby steps. We call and ask him questions that the baby steps already answers. He rarely, if ever, deviates from the steps. You can maybe PAUSE. but he will never say skip a step. Moving to investment property jumps over the pay off your debt step.
Only go to college if you can pay as you go, whether that be a scholarship, money saved overtime, paying for one class at a time, gi bill, whatever. But DO NOT go into debt. Only if you're on track to earn a 6 figure income
Go to college if your body isn't strong enough for trades. If you are weak and unattractive you are going to be poor anyway. Might as well roll the dice and go to school for a hard skill.
Her story doesn’t make a lot of sense. I think it’s more about the fact he’s the only one working and if he is let go or furloughed their in trouble. Then they make bad choices. Don’t gamble what you can’t lose. They need to stop living off fake money. Since they already took the money out they need to pay the student loans off. Mom needs a job now, any job. She needs to throw her entire check into an insured interest bearing savings til. She has 9 months of emergency funds. If dad loses his job he’ll be out of work longer than Dave’s 3 months.
@@ericeandco I disagree, her husband works in IT and knows how to fix houses. If push comes to shove they can leave the state or reshuffle where they are. If you know how to fix things AND you know IT you can always make money if need be under the table. And she could work more hours in an ermergency in a few years, the children are 3 and 5 in 3 years they are both going to school and they pay less for chilcare.
It sounds like they have no savings, student loans, they took the equity out of their house creating debt. And the money has been sitting making little or no money and mom doesn’t have any in income . Dad’s chomping at the bit to work a full time job and rehab a house after working 40+ hours. Sounds flaky. Mom needs to get a job and bring some money into the house so they can do it right.
Interesting that she said she's the one who wants to pay the loans off. Does anybody else think that she may have reversed their opinions for the call because she knew what Dave would say? She was giggling an awful lot. It wouldn't surprise me if somebody claimed to be the one who wants to pay off debt on the call knowing Dave wont like the other opinion
Take a step back to make a giant leap forward....get those loans out of your life as soon as possible. Student loans don't care about life happening to you; the sooner those are gone the better...
I need to see Dave walk through these *student loan matters.... live and in person compared to buying a house given what rent is DEMANDING these days*. Rent is at or costing more than student loan payments. 🙋🏿♀️ I’ll volunteer first.
1. Houses are not investments 2. Student loans are terrible debt to hold. 3. Go get some debt in something that produces income. Your problem is income. Nothing more nothing less. I’d re-negotiate your student loans and forget the house idea until you have enough money to where the price of the house means nothing. I swear America is stupid.
Blue-collar jobs pay well; but good luck doing it for 30 years... all the money ppl make in those jobs just go right back into paying for healthcare services
Dave: "after your husband works his 40 hr week, he needs to work on the weekends too." Wife: "i divorced my husband because he worked too much and was never home."
That’s what I did, I saw a pile of cash took that invested it and borrowed more and I hate myself for ever having done that… It’s embarrassing, it’s humiliating, I know better… (Has nothing to do w/ anything other than what they are saying... You’re doing so good and you see that pile of cash to freedom... But you just add to your struggle...)
I’m down to student loans and car- two large debts. Technically, according to debt snowball I should pay down student loans first, but I’m going to do car first because it’s a much larger monthly payment and holding out glimmer of hope there might eventually be student loan forgiveness. Just in case. So doing a slightly different version of Dave’s plan could work for people, like this caller with her already saved 3 month emergency fund
Having spent enough time behind a screwdriver, I can firmly say without a doubt in my mind that both ends of a screwdriver work, especially with a steel cap.
The house aren't just to flip they live in them and are putting a good chunk down so they are going to always have equity. Then after three to five years sell as long as the market is good and they can keep moving up in house, not a bad plan actually. But the student loans are only $19k just pay them off and you would still have money.
I also agree to pay off the student loans. But calling the Dave Ramsey show and asking "should I pay off debt or do this other thing" is a rhetorical question. If you're hoping for some nuanced financial advise you're not going to get it here. Some folks may argue to pay off certain loans (high int, unsub, etc) and use the other money to invest. But you're never going to hear that here... and that's okay. Just find it weird like people think "this time they'll say not to pay off the debt"
"When"not "if". Politicians can only impact federal loans tho, so if u have pvt loans make sure ur paying! For federal make minimums until at least january nxt year!
@@katrhoads2741 I 100% agree the person that takes the loans should be responsible for the loans. It would be very wrong to just wipe the loans. I'm saying I would be frustrated if I had worked hard to pay mine off then they just wipe loans for people.
Morons rely on that, free free free..its for me smh those student debts get wiped, those taxes will be through the roof..i aint paying for no ones student loan debt through taxes.
I’m curious for anyone’s opinion, I live in a country where student loans are completely interest free unless you move overseas. (New Zealand). The loans are paid off by an automatic deduction with PAYE (tax is paid as you earn) at 12% of your earnings when you earn over 385 per week or 1668 per month. The loan deduction is calculated like this: Income over 1668 per month - 12% = paid to student loan. There’s an annual fee of $40 added each year. Some people just use the deductions to pay them off (as well as inflation to an extent). I was curious. If it was an interest free loan, would people still recommend to pay it off before buying house first? Particularly in NZ, it’s incredibly hard to find an affordable rental or an affordable house. Owning are on par with renting if not they’re less. I’ve seen a lot of people shut out of buying their house cause average rent is 70% of peoples incomes unless you live somewhere where there are no jobs or only minimum wage jobs. There’s big pressure for people to “get on the housing” ladder as it is very quickly shutting people out and living is becoming very unaffordable. My partner and I are in the position to get pre-approved and buy a house (no guarantee we would be able to afford a house, houses are increasing by 10% per month). I’m unsure what move to make, house or wait, continue saving and pay off the loans?
@@RedScareClair Do your research on what you want your degree in and never stop working even if it's an internship. You'll thank me later. And employers really don't give a hoot which school you went to; they just care that you're a problem solver, compliant, flexible and able to do the job.
@@CEDL4072 Big biz (with a formal "human resources" unfortunately cares about the formal qualifications). And big biz gets more and more of the share of the market. A family run middle sized company might not care, but chances are they have been or will be bought up by a larger company with another culture. And in some areas like engineering, IT you WILL likely have to work for a big player. or if you work directly or indirectly for government.
@@CEDL4072 Prof. Richard Wolff overheard a conversation in a Starbucks in New York. A young woman came in and asked for the forms to apply for a job. The manager came and friendly asked her if she had graduated from college. She said no, she had dropped out, she seemed to be embarrassed. the manager said: I will give you the forms and will pass them on, but I have to tell you that unless you have a degree HR will not consider your application. Dr. Wolff: Does one need a college degree to press buttons on a coffee machine ? - No. So why does Starbucks (at least in NCY) require that ? - Because they _can._
When you already know the answer when you see the title of the video. Are some of these people just oblivious to Dave? You have the money sitting there, pay it off. I can't tell you how refreshing it is to wake up the next morning and be able to say you no longer owe Fannie Mae a cent.
Dave want you to live ordinary life ( poor/broke) keep money in the 401k and work like no one else till you get old than enjoy it. ask your self how Dave built wealth. I guess not a full time salary job and 401k plan he contribute to! Think folks
Pay off the college education... we all know its insanely overpriced. I have one more term of grad school and have vowed that I would do everything I could to never spend another dime on university as long as I live after next spring's payment.
Many persons in IT are not so good in interpersonal relations, communications, management skills (it comes with the territory of being good in a STEM field). The not so common folkd that can co BOTH are sought after. So the degree might be indirectly useful - or more like it SHOWS that the person is also interested and capable in OTHER fields than IT, coding, etc. EVERY skill (if you are good in something) helps you along the way.
Steve Jobs found out that (expensive) college did nothing for him. He wanted to save his parents the costs for tuition and dropped out after one year (that was in 1972). But they offered courses in caligraphy and he took THOSE. The 18 months he spent on what really fascinated him _seemed_ to be a waste of time. No real skill and real interest is ever wated. It was not his most important talent, more like that it was an expression of how much he was into visuals and aesthetics. If he hadn't become _Steve Jobs_ he might have ended up selling signage, or used the experience to create pleasing websites or ended up in advertising .... Or offering services to create pleasing window decorations. If you know how to do that you have always a way to make income, if need be w/o formal employment. More people know how to clean or to cook than know how to make signs for weddings and festive events. So even for people that are otherwise "only" normally talented there is a niche or they can create one. That is ALSO a skill to make some extra money additionally to a formal job.
Tiling/renovating/construction is probably way more profitable than doing social work, but he's doing IT anyways? She works in fitness, but her degree is in Non-profit management?
Can some1 please fill me in on why people take poor degree options I’m year 10 and just thinking about what I should get my degree in once I leave school
It would be significantly cheaper for me on a monthly basis to buy a house than to rent. Which would free up more money for me to pay off my student loan quicker. Not sure what to do.
If you lose your job, are you able to do something else. Are you experienced ! as a waiter, cook. Do you know how to clean houses, or do you have DIY skills that could be valuable in a crisis (if it gets bad the trained trades people will compete with you). If the student loan debt is not high interest, I would consider buying a reasonably priced small home (but invest in having it inspected by a THIRD pary, and someone with references. That will cost, but you cannot afford to not pay that money). 1,7 trillion student loan debt. It might be forgiven at some point, and they young (and not so young borrowers) are a political force to reckon with. If the economy gets really bad you will not be forclosed on that. If the holders of student loans (and their parents) are getting angry they are a political force. So low interest student loan is better than a car loan or a mortgage. You are not going to lose your home over student debt. Too many people like you would be affected.
If you have a small house you might rent out a room, remodel the garage, or offer a space for a "stealth camper" in your driveway in more urban areas. If they can park in your driveway and get electricity from you (and are secure from crimes, break ins and the knock on the door by police or neighbours they might pay you a little money for that. Let's say 200 - 300 USD per month. Even more if they need a LOT of electricity. Having access to water (filling up in the garden or the garage during winter, or getting a free jug of tap water), maybe even a toilet is also a big one - even though campers know how to navigate the bathroom issues. Your electrical plumbing would have to be up to the task and you would have to deal with HOA if there is any. but if a person knows how to stealth camp in the city / town, they can pull off the fiction of living IN the house (while in reality they sleep IN the vehicle). Electricity is a bummer. They cannot display a big solar, that is a giveaway. If they burn propane that shows, too (for the fridge or A/C, and that would be very expensive and maybe also dangerous. They can shower in gyms, but if they want to work online they need electricity. With enough electricity they can also handle cooling and heating (that is a major deterent for camping). A LOT of people that have middle class aspirations skip expensive rent (think Seattle, California, Colorado, ...) and try to make it. They often work in IT, are aspiring entrepreneurs, etc. You would have to select those renters carefully (and it would be under the table income), but it is an option. Would solve a problem for both of you.
If you have crisis resistant skills (crafts, IT, you are good in sales ) AND parents that would help you to sit it out for 1 - 3 years you could risk it. I disagree that you should not lend money to family members. You should not lend them a lot if they start a biz (good chance they will not be successful) or money that you cannot afford to lose or even to wait for. But if your parents know that you are prudent and you do not have a toxic, overspending partner, and you have marketable skills, you sign a contract (make sure to get information what happens if you die), and pay them back. Do not have them on the mortgage and deed. (If the house rises in value you get to keep the equity). It can help if your parents act as backup for a loan (if you cannot pay they will owe it. Which is NOT a risky deal for them, because a) you are prudent and unlikely to fail b) if rent is that high it can't be hard to rent or sell it c) you made danm sure that you did not pay too much. Parents will not foreclose you, they will wait another year. Banks are eager to finance too expenisve homes and in the economic downturn they scoop them up for cheap. Banks cannot invest directly in overpriced housing and they do not want to. the suckers lose a part of the downpayment, they make money on fees and interest, and later they get the home for cheaper. That worked really well after 2008 (Thanks Obama !). As for crisis resistant skills: If your plan B and C would be cleaning houses or flooring you better have that as a side gig already. Why ? REFERENCES and satisfied customers and you learn from your mistakes (and fix them for free for you customers). If you are known by a few wealthy people to be a very reliable cleaner and they trust you with the key (if they are not there) that relationsship needs time building. But they know other wealthy people that have the same problem: they would like to have someone reliable that can check on their property or that they do not have to be in the house when it is cleaned. But that is a trust and security issue. You better already have a small but loyal customer base. If you want to expand because you have now time and need when you lost the main job you already have the REPUTATION. Imagine you get an offer for flooring and it is a single guy or gal. They _might_ be good, how do you know. If it is a reputable company in town they can be sued and have something to lose if you badmouth them. So there is a risk giving the unknown handy man / woman a chance. Well, if you had to reject offers when you still had a regular job because you EARNED a good reputation you have crisis proved your plan B and C.
Or her husband could Lay flooring down for people who don’t know how to and they’ll pay him, My mother paid someone close to $1000 lay wood flooring. That was like a two day job.
One has Masters in Non Profit Mgt other has Masters in Social Work. she is not working the other is using his Bachelor's and works with I.T. Why do such Master's??
The live in a _college_ town. Moving throught the pandemic is not a good idea and also costs money. Plus they might have family where they are (which is a major plus if you need ermegency childcare for instance).
While watching this video I went ahead and paid off a $2,000 student loan! Got a few more semesters of student loans left to go still!
I have finished paying off over 50000 in student loans. I have finished my masters degree and I am finally free!!
Respect to you. I also paid my student loans and I hate to see other people trying to bully our representatives to forgive their debts. I support reform on tuition but not theft.
@@joshitheyoshi2533 I’m almost done paying mine, but it doesn’t bother me if they end up forgiving debt for other people.
@@eos_2366 You're either a liar (most likely) or a huge fool.
How long did it take you?
@@bcvc3365 It took me about 4 years to pay that amount off. And mind you I was working like minimum wage jobs. However I didn't have other expenses so almost all my money went to debt.
People always think their situation is unique. Dave says the same thing EVERY TIME.
He created a system that works, of course he's gonna say the same thing over and over. The system doesnt care about your unique situation, it cares about following the steps.
@@EmilyDavidson-hd3qz Good point. Its like trying to lose weight but not cutting out junk food. You can't have both. You either want to live a certain lifestyle or you want to get out of debt.
Ha so true
I just payed off my FED LOAN !!!!
paid
Congratulations man! That's huge!!
Lemme hold somethin
Congrats 🍾
Congrats !!!!
Who knew the answer before watching
Me.
Me
she did
Everyone that has watched Dave for 2 days knows the answer
I LITERALLY just told my daughter before clicking that I know what he’s gonna say and I clicked on the vid and saw your comment first 😂😂
Pay off loan. *click*
Exactly , all these degrees but no common sense 🤣🤣🤣
🤣🤣🤣
Definitely need to pay off those student loans. Buying a home to flip and sell always carries a degree of risk - there's no sense in taking that big of a risk when the alternative is paying off debts.
Yep. A high degree of risk.
Agreed - just getting the loans paid will free that extra cash in payments. It's just like getting another job or having another stream of income from a rental - except one has lowered one's risk by getting rid of debt. When I get rid of my mortgage in about four years, that will be another 640 dollars per month saved. I really look forward to that.
Do they know how blessed that are to ONLY have $19k in student loans??? My husband and I have about $140k combined and it feels like we will never pay it off. He’s been insistent on buying a house, so I’m compromising by agreeing to it only after we’ve paid off our smaller consumer debt and save some money for a down payment. I know it’s out of order, but my husband is stubborn and Dave’s name is almost a curse word in our house to him🤦🏽♀️
What school and degree?
Brenden Sprague I have a Masters degree in counseling from a private university. My husband has a Bachelors degree in Communications. He’s not using it though.
Janice…it’s been a year and I’d love to hear an update concerning your loans…were you able to pay down some? All?
You should name your son Dave
Y'all still alive lol
Personal finance should be a mandatory course in high school
This need to be put out to all school boards!!!
The banks pay teachers unions to burn those lesson plans. Might I suggest that parents teach their kids this skill?
I agree, it would definitely reduce homelessness
AMENNNNN
Pay off the debt. Then go flip houses. I would expect Dave to say nothing different.
Flip houses in this overpriced market doesn't always make you money. If you have skills in constructing, use that skill. The secret to getting rich, Make money on someone else's Dime!
When callers try to turn on the charm 🙄. Just answer the question, spare us all the extra details.
She sounds like a happy wife, so giggly 😆😆
@@droneultimatum6829 nope
Yeah coffee will do that to ya☕☺️
That's annoying AF
I had to puncture my ear drums. I bet the husband drinks.
She doesnt work. Yes she's happy
You can't afford to start flipping homes until you have paid off the loans.
Cash out refi: "We went deeper into debt and called that winning."
Finally someone understands 🙏🤣
And have a real savings.
They already flipped a house and made good money, prior to this. So they want to do it again, to make quick cash and pay the loans off.
@@TimeisUp22 , At this time, when the housing market will be tanking?
Two years later and I needed to hear “don’t pause” just do what you need to do and keep going
Dave is the financial figure I never knew I needed in my life.. 🙏🙋🏻♀️
This call took to long! Pay 💰 the student 👨🎓 loans 📜
Too
Okay!
Yes!!! So well put 😄
Did anyone else think she was going to be the one wanting to buy a house because her husband was the one who convinced her to call this show? That was an interesting twist.
Honestly I have a suspicion that she switched the roles for the call. She was giggling a lot and I started to wonder if it was actually her that wanted to buy the house she knew what dave would say so switched it around lol
@@random-nz7dy You may be onto something lol. She was just a giggly as could be!
@@MamaHarperr yeah I totally think this is the case.
I haven't even watched the video but I already know Dave is gonna say pay off the student loans
I am better than I deserve too. Am thankful for life.
Dave’s show would be irrelevant if people would just follow the baby steps. We call and ask him questions that the baby steps already answers. He rarely, if ever, deviates from the steps. You can maybe PAUSE. but he will never say skip a step. Moving to investment property jumps over the pay off your debt step.
👏🏿👏🏿👏🏿👏🏿👏🏿👏🏿👏🏿
Right? He’s got to be glad that they don’t. Lol
Pay off those loans as much as possible while the interest accumulation is paused!
They add the interest to the principal in Jan.
@@twincherry4958 Seriously?? Where'd you hear that?🤔
Man I just keep finding reasons to not go to college lol
Only go to college if you can pay as you go, whether that be a scholarship, money saved overtime, paying for one class at a time, gi bill, whatever. But DO NOT go into debt. Only if you're on track to earn a 6 figure income
Not even on track. Only if you are GUARANTEED to get a large income out of college. Otherwise trade is a much better use of time and resources
Go to college if your body isn't strong enough for trades.
If you are weak and unattractive you are going to be poor anyway. Might as well roll the dice and go to school for a hard skill.
@@chrisreynolds6391 what 😂
College does pay off. It's the major that's the issue here. Masters in Social Work and Non Profit XYZ- aka broke
She wants to pay off the student loans. He’s the one with stars in his eyes.
Her story doesn’t make a lot of sense. I think it’s more about the fact he’s the only one working and if he is let go or furloughed their in trouble. Then they make bad choices. Don’t gamble what you can’t lose. They need to stop living off fake money. Since they already took the money out they need to pay the student loans off. Mom needs a job now, any job. She needs to throw her entire check into an insured interest bearing savings til. She has 9 months of emergency funds. If dad loses his job he’ll be out of work longer than Dave’s 3 months.
@@ericeandco I disagree, her husband works in IT and knows how to fix houses. If push comes to shove they can leave the state or reshuffle where they are. If you know how to fix things AND you know IT you can always make money if need be under the table. And she could work more hours in an ermergency in a few years, the children are 3 and 5 in 3 years they are both going to school and they pay less for chilcare.
I’ll be debt free next you from my auto loan, saving up for a down on a house already, hopefully I’ll be set for that next chapter by 2023
It sounds like they have no savings, student loans, they took the equity out of their house creating debt. And the money has been sitting making little or no money and mom doesn’t have any in income . Dad’s chomping at the bit to work a full time job and rehab a house after working 40+ hours. Sounds flaky. Mom needs to get a job and bring some money into the house so they can do it right.
Real estate will make you rich but debt will always hold you back. A great deal will definitely be worth more while
Interesting that she said she's the one who wants to pay the loans off.
Does anybody else think that she may have reversed their opinions for the call because she knew what Dave would say?
She was giggling an awful lot. It wouldn't surprise me if somebody claimed to be the one who wants to pay off debt on the call knowing Dave wont like the other opinion
Do people call in just to hear themselves talk
Just to hear themselves laugh😬🤦♀️
Hahahaha 🤣🤣
Yes; they know what Dave will already say
Take a step back to make a giant leap forward....get those loans out of your life as soon as possible.
Student loans don't care about life happening to you; the sooner those are gone the better...
I thought this was gonna be one of those “I have $190k in student loans and I’m a fitness instructor” calls.
Took the husband a year to convince her to call into the show? How long does it take him to convince her which restaurant they should go to?
Financial Lift I don’t care whichever you want to go to.
2 years
the way anthony crackd a smile when he heard her voice 😅
A Masters in "Non-profit Management". Very interesting way to go in debt, ...but continue. 🤔
House flip isn’t a guarantee
With those two careers better have a huge emergency fund.
The dad built the house at 12!! Amazing!! Being debt free sounds good but cash flow sounds a bit better in my opinion!!✨👍
Great counsel. Pay off the student loan.
I need to see Dave walk through these *student loan matters.... live and in person compared to buying a house given what rent is DEMANDING these days*. Rent is at or costing more than student loan payments. 🙋🏿♀️ I’ll volunteer first.
1. Houses are not investments 2. Student loans are terrible debt to hold. 3. Go get some debt in something that produces income. Your problem is income. Nothing more nothing less. I’d re-negotiate your student loans and forget the house idea until you have enough money to where the price of the house means nothing. I swear America is stupid.
I love her energy
this man really said 'I'm doing better than I deserve' XD
She sounds so happy, puffy and warm 🥰
I bet she’s a sex kitten!
Easy! No brainer! Pay-off the $19k student loans before you take on more debt!
Her laugh though...
Blue-collar jobs pay well; but good luck doing it for 30 years... all the money ppl make in those jobs just go right back into paying for healthcare services
He wants to go flip houses so he can get out of their house and away from her annoying giggles.
Thank you for sharing 🙌
this is a great discussion... very true.. stay on track, stick to the plan
"Eat less". Brilliant.
Dave: "after your husband works his 40 hr week, he needs to work on the weekends too." Wife: "i divorced my husband because he worked too much and was never home."
This!!
pay off debt and learn to build decks. thanks dave
That’s what I did, I saw a pile of cash took that invested it and borrowed more and I hate myself for ever having done that… It’s embarrassing, it’s humiliating, I know better… (Has nothing to do w/ anything other than what they are saying... You’re doing so good and you see that pile of cash to freedom... But you just add to your struggle...)
I knew Dave's response before I watched the video
I’m surprised Dave was ok with the cash out refinance 🧐
I’m so glad I didn’t go to college. My 0k debt has been nothing but bliss and nonexistent.
I’m down to student loans and car- two large debts. Technically, according to debt snowball I should pay down student loans first, but I’m going to do car first because it’s a much larger monthly payment and holding out glimmer of hope there might eventually be student loan forgiveness. Just in case. So doing a slightly different version of Dave’s plan could work for people, like this caller with her already saved 3 month emergency fund
How much is the car worth?
Chris Reynolds between $16-$18k
If your student loans are smaller than $16k you're doing really well. Congrats.
Having spent enough time behind a screwdriver, I can firmly say without a doubt in my mind that both ends of a screwdriver work, especially with a steel cap.
It’s the poor man’s hammer.
I love Anthony sooooo much 🤣❤️
The house aren't just to flip they live in them and are putting a good chunk down so they are going to always have equity. Then after three to five years sell as long as the market is good and they can keep moving up in house, not a bad plan actually. But the student loans are only $19k just pay them off and you would still have money.
That potential with the side hustle is so strong! I hope he takes that advice
Why not do both?
Depends on the interest rate of the student loans
I also agree to pay off the student loans. But calling the Dave Ramsey show and asking "should I pay off debt or do this other thing" is a rhetorical question. If you're hoping for some nuanced financial advise you're not going to get it here. Some folks may argue to pay off certain loans (high int, unsub, etc) and use the other money to invest. But you're never going to hear that here... and that's okay. Just find it weird like people think "this time they'll say not to pay off the debt"
Pay off those student loans first.
What would be frustrating is if you pay off your student loan then politicians wipe part or all of student loans.
"When"not "if".
Politicians can only impact federal loans tho, so if u have pvt loans make sure ur paying!
For federal make minimums until at least january nxt year!
They're st knocking off 50k of fed loans
Your student loan, then YOU’RE responsible to pay it. Everybody waiting on a handout, that majority doesn’t want. Nothing is free.
@@katrhoads2741 I 100% agree the person that takes the loans should be responsible for the loans. It would be very wrong to just wipe the loans. I'm saying I would be frustrated if I had worked hard to pay mine off then they just wipe loans for people.
Morons rely on that, free free free..its for me smh those student debts get wiped, those taxes will be through the roof..i aint paying for no ones student loan debt through taxes.
The logical strategy would be to pay off the student loan first before considering purchasing a property
I’m curious for anyone’s opinion, I live in a country where student loans are completely interest free unless you move overseas. (New Zealand).
The loans are paid off by an automatic deduction with PAYE (tax is paid as you earn) at 12% of your earnings when you earn over 385 per week or 1668 per month.
The loan deduction is calculated like this: Income over 1668 per month - 12% = paid to student loan.
There’s an annual fee of $40 added each year. Some people just use the deductions to pay them off (as well as inflation to an extent).
I was curious. If it was an interest free loan, would people still recommend to pay it off before buying house first?
Particularly in NZ, it’s incredibly hard to find an affordable rental or an affordable house. Owning are on par with renting if not they’re less. I’ve seen a lot of people shut out of buying their house cause average rent is 70% of peoples incomes unless you live somewhere where there are no jobs or only minimum wage jobs. There’s big pressure for people to “get on the housing” ladder as it is very quickly shutting people out and living is becoming very unaffordable.
My partner and I are in the position to get pre-approved and buy a house (no guarantee we would be able to afford a house, houses are increasing by 10% per month). I’m unsure what move to make, house or wait, continue saving and pay off the loans?
This is why I don’t want to attend University because of the amount of students debts which can unfortunately stop you from buying good assists .
You don't have to spend an arm and a leg at a university
If you do it correctly, and pick a useful degree with available jobs and high pay, then you can make out pretty good!
@@RedScareClair Do your research on what you want your degree in and never stop working even if it's an internship. You'll thank me later. And employers really don't give a hoot which school you went to; they just care that you're a problem solver, compliant, flexible and able to do the job.
@@CEDL4072 Big biz (with a formal "human resources" unfortunately cares about the formal qualifications). And big biz gets more and more of the share of the market. A family run middle sized company might not care, but chances are they have been or will be bought up by a larger company with another culture. And in some areas like engineering, IT you WILL likely have to work for a big player. or if you work directly or indirectly for government.
@@CEDL4072 Prof. Richard Wolff overheard a conversation in a Starbucks in New York. A young woman came in and asked for the forms to apply for a job. The manager came and friendly asked her if she had graduated from college. She said no, she had dropped out, she seemed to be embarrassed. the manager said: I will give you the forms and will pass them on, but I have to tell you that unless you have a degree HR will not consider your application.
Dr. Wolff: Does one need a college degree to press buttons on a coffee machine ? - No.
So why does Starbucks (at least in NCY) require that ? - Because they _can._
Who else likes Dave’s buddies more than Dave?
When you already know the answer when you see the title of the video. Are some of these people just oblivious to Dave? You have the money sitting there, pay it off. I can't tell you how refreshing it is to wake up the next morning and be able to say you no longer owe Fannie Mae a cent.
Dave want you to live ordinary life ( poor/broke) keep money in the 401k and work like no one else till you get old than enjoy it. ask your self how Dave built wealth. I guess not a full time salary job and 401k plan he contribute to! Think folks
Exactlyyyy
She has her masters. Why isn't she working.
A degree is no guarantee of a job
@@bevz90 Thank you!
She has two children at home.
They have 2 kids, so she's been home with them.
@@ireneissomewhere Plenty of online part-time jobs.
Flip the house and use the profit to pay for the student loans
Thats the risk. If you flip the house.
Wait they’re netting 70 and they both have masters?
Matthew Claiborne social work.
I have masters and make minimum wage
Pay off the college education... we all know its insanely overpriced. I have one more term of grad school and have vowed that I would do everything I could to never spend another dime on university as long as I live after next spring's payment.
Classic cart before the horse question.
A flip should make way more money than paying off the student loans early. You'd want to have a nice emergency fund though.
Degree in social work
Works in IT 🤔🤔
😂😂😂
Going to college just to say I went to college.
Many persons in IT are not so good in interpersonal relations, communications, management skills (it comes with the territory of being good in a STEM field). The not so common folkd that can co BOTH are sought after. So the degree might be indirectly useful - or more like it SHOWS that the person is also interested and capable in OTHER fields than IT, coding, etc.
EVERY skill (if you are good in something) helps you along the way.
Steve Jobs found out that (expensive) college did nothing for him. He wanted to save his parents the costs for tuition and dropped out after one year (that was in 1972). But they offered courses in caligraphy and he took THOSE. The 18 months he spent on what really fascinated him _seemed_ to be a waste of time.
No real skill and real interest is ever wated.
It was not his most important talent, more like that it was an expression of how much he was into visuals and aesthetics.
If he hadn't become _Steve Jobs_ he might have ended up selling signage, or used the experience to create pleasing websites or ended up in advertising .... Or offering services to create pleasing window decorations.
If you know how to do that you have always a way to make income, if need be w/o formal employment. More people know how to clean or to cook than know how to make signs for weddings and festive events. So even for people that are otherwise "only" normally talented there is a niche or they can create one.
That is ALSO a skill to make some extra money additionally to a formal job.
My God this lady talks so much
you will feel so much better if you paid off the loans.
Tiling/renovating/construction is probably way more profitable than doing social work, but he's doing IT anyways? She works in fitness, but her degree is in Non-profit management?
Can some1 please fill me in on why people take poor degree options I’m year 10 and just thinking about what I should get my degree in once I leave school
It would be significantly cheaper for me on a monthly basis to buy a house than to rent. Which would free up more money for me to pay off my student loan quicker. Not sure what to do.
Baby steps. You know the answer
If you lose your job, are you able to do something else. Are you experienced ! as a waiter, cook. Do you know how to clean houses, or do you have DIY skills that could be valuable in a crisis (if it gets bad the trained trades people will compete with you).
If the student loan debt is not high interest, I would consider buying a reasonably priced small home (but invest in having it inspected by a THIRD pary, and someone with references. That will cost, but you cannot afford to not pay that money).
1,7 trillion student loan debt. It might be forgiven at some point, and they young (and not so young borrowers) are a political force to reckon with. If the economy gets really bad you will not be forclosed on that. If the holders of student loans (and their parents) are getting angry they are a political force.
So low interest student loan is better than a car loan or a mortgage. You are not going to lose your home over student debt. Too many people like you would be affected.
If you have a small house you might rent out a room, remodel the garage, or offer a space for a "stealth camper" in your driveway in more urban areas. If they can park in your driveway and get electricity from you (and are secure from crimes, break ins and the knock on the door by police or neighbours they might pay you a little money for that. Let's say 200 - 300 USD per month. Even more if they need a LOT of electricity. Having access to water (filling up in the garden or the garage during winter, or getting a free jug of tap water), maybe even a toilet is also a big one - even though campers know how to navigate the bathroom issues.
Your electrical plumbing would have to be up to the task and you would have to deal with HOA if there is any. but if a person knows how to stealth camp in the city / town, they can pull off the fiction of living IN the house (while in reality they sleep IN the vehicle).
Electricity is a bummer. They cannot display a big solar, that is a giveaway. If they burn propane that shows, too (for the fridge or A/C, and that would be very expensive and maybe also dangerous.
They can shower in gyms, but if they want to work online they need electricity. With enough electricity they can also handle cooling and heating (that is a major deterent for camping).
A LOT of people that have middle class aspirations skip expensive rent (think Seattle, California, Colorado, ...) and try to make it. They often work in IT, are aspiring entrepreneurs, etc. You would have to select those renters carefully (and it would be under the table income), but it is an option. Would solve a problem for both of you.
If you have crisis resistant skills (crafts, IT, you are good in sales ) AND parents that would help you to sit it out for 1 - 3 years you could risk it. I disagree that you should not lend money to family members. You should not lend them a lot if they start a biz (good chance they will not be successful) or money that you cannot afford to lose or even to wait for. But if your parents know that you are prudent and you do not have a toxic, overspending partner, and you have marketable skills, you sign a contract (make sure to get information what happens if you die), and pay them back.
Do not have them on the mortgage and deed.
(If the house rises in value you get to keep the equity). It can help if your parents act as backup for a loan (if you cannot pay they will owe it. Which is NOT a risky deal for them, because a) you are prudent and unlikely to fail b) if rent is that high it can't be hard to rent or sell it c) you made danm sure that you did not pay too much.
Parents will not foreclose you, they will wait another year. Banks are eager to finance too expenisve homes and in the economic downturn they scoop them up for cheap. Banks cannot invest directly in overpriced housing and they do not want to. the suckers lose a part of the downpayment, they make money on fees and interest, and later they get the home for cheaper.
That worked really well after 2008 (Thanks Obama !).
As for crisis resistant skills: If your plan B and C would be cleaning houses or flooring you better have that as a side gig already. Why ?
REFERENCES and satisfied customers and you learn from your mistakes (and fix them for free for you customers).
If you are known by a few wealthy people to be a very reliable cleaner and they trust you with the key (if they are not there) that relationsship needs time building. But they know other wealthy people that have the same problem: they would like to have someone reliable that can check on their property or that they do not have to be in the house when it is cleaned.
But that is a trust and security issue. You better already have a small but loyal customer base. If you want to expand because you have now time and need when you lost the main job you already have the REPUTATION.
Imagine you get an offer for flooring and it is a single guy or gal. They _might_ be good, how do you know. If it is a reputable company in town they can be sued and have something to lose if you badmouth them. So there is a risk giving the unknown handy man / woman a chance.
Well, if you had to reject offers when you still had a regular job because you EARNED a good reputation you have crisis proved your plan B and C.
Or her husband could Lay flooring down for people who don’t know how to and they’ll pay him, My mother paid someone close to $1000 lay wood flooring. That was like a two day job.
$20,000 is not that much. Just pay it off. No reason why you can’t do it on 2 incomes.
U make 70,000 and owe 19,000 lol 😂
PAY OFF THE DEBT!!!!!
Anthony wanted to say that from jump
Good advice Dave, what are these people thinking?
I got paid to go to school
Dave “how much in student loans?” Ramsey
So you telling me I have to wait 30 years to buy a house because I have half a mil in student loans????
There are a lot of infomercials out there now that make it seem easy to flip houses. Ah! no it isn't and if you do you better have deep pockets.
One has Masters in Non Profit Mgt other has Masters in Social Work. she is not working the other is using his Bachelor's and works with I.T.
Why do such Master's??
Sounds like she went to school for something dumb but I don't know anything
She needs to seek other employment instead of waiting around for her fitness career cmon help your husband he’s drowning !
Right!
The live in a _college_ town. Moving throught the pandemic is not a good idea and also costs money. Plus they might have family where they are (which is a major plus if you need ermegency childcare for instance).
Home town 🤟🏾
I rather have a house.
How did they cram a minute and a half call into 9 minutes?
Both 🤫
Interest rates are hot!