$1,000 Doesn't Seem Like Enough for An Emergency Fund

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[@ehsoule]

When Dave asks “what’s your household income” things are about to get real.

[@nicole4779]

HA! 😂😂😂💯💯💯

[@inertiaforce7846]

If he asks me that I will run.

[@350z1984]

Yep. As soon as I heard that, I was like uh-oh! Here we go. Lol.

[@allenmenefield4560]

Facts

[@markwill3515]

@@350z1984 lol😅😅😅😅

[@waterbottle4782]

1,000$ is not an emergency fund. It is an emergency emergency fund until you save 3~6 months expenses.

[@user-wq5ws1qs7x]

No, it’s an emergency fund until you are debt free. Then it 3-6 months emergency fund. So realistically that 1000 could be your emergency fund for years.

[@kelvinwilliam1681]

What really guarantees financial security is having multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@stefanossmitty3318]

I think he calls it a “starter” emergency fund. It’s designed for people in debt and need help with their finances. Unless you live in a tent and have no expenses, everyone knows 1k is not nearly enough.

[@aolvaar8792]

@@kelvinwilliam1681 I like a ~$100K/yr Federal Pension at 40 years old No investing, just Play

[@erikrohr4396]

@@kelvinwilliam1681 Ooh, an ad.

[@FierceChic]

When I first learned about the $1000 emergency fund and actually saved up for it, it was a life saver for me. I wondered why I never had one! I never had to borrow money and I felt a lot more secure.

[@kelvinwilliam1681]

What really guarantees financial security is having multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@AGaesthetics]

@@kelvinwilliam1681 scammer

[@bernadettelovespie4734]

@T K Agreed!

[@joelkaben]

@@zacharygray3923 Is he on KZbin? What is his name? He's absolutely correct.

[@AP.Production]

That's why its a "starter" emergency fund,Then 3 to 6 months. If you ask me, shoot for 6 to 12 months savings just to be more secure.

[@MrCoxmic]

"I'm taking a shotgun approach to the baby steps," Dave smiles...

[@dennishochstetler1653]

It's funny because people think that Dave hasn't thought of that angle yet. And usually he has. They're stuck on the math and he's pulling psychology into it.

[@justinacase2623]

Let the games begin! Dave is Lord Humongous.

[@minimumwagemoney3258]

Dave is right. $1,000 isn’t enough but it should scare you to be more focus on paying off debt.

[@jlarue6970]

3:58 Rachel’s smirk says it all. She’s heard Dave lay the verbal smackdown all too many times 😂

[@JugglingFinance]

😂😂

[@aliciab6193]

I know I hate her face

[@misterj1396]

I don’t get how these people can be making over $100k and have issues saving. I would be almost retired by now if I made that much.

[@mando_apolgetico]

I don’t understand how someone In the US doesn’t make 100k a year. The US is the easiest place to make money. There’s a reason you’re not making 100k...

[@adb2u]

Thats his and his wife's income together. Not a lot of money

[@maksimfilms4673]

@@mando_apolgetico you sound like someone who’s parents paid for all your college and education where you never experienced the hustle out here

[@ashleyjones5396]

Idk how he is getting military retirement and he and his wide income only making $120,000. Makes me think he doesn’t get VA disability and it sounds like he has a federal govt job which has locality pay in addition to base pay. He sounds you g so I’m thinking he retired early (maybe medical retirement) so he can’t get retirement pay and disability like many retirees. I’m kind of thinking out loud right now so he must have gotten a medical retirement at a lower rank then normal retirements.

[@WISHBONEL7]

@Johnny Five What do you think the " mode " is ?.

[@haggishighways]

The baby step is there just to ease someone into learning how to save.

[@2Years2Farm]

Yep! That’s my opinion

[@itskia2586]

We can't follow it religiously during the pandemic. I'm doing 2 & 3 together.

[@angelaonthego]

Baby step 1 is there so people stop using their credit cards or payday loans for unexpected expenses.

[@d_all_in]

The $1,000 should really be whatever your highest insurance deductible is

[@travisdrive2003]

@@angelaonthego - Exactly right! It is just enough to cover a truly unexpected expense without needing to borrow (including using a credit card). And it is small enough to keep you from complacency; you still have a sense of urgency.

[@dankestranch8738]

I have 10k and it doesnt feel like enough

[@KennyakaTI]

I have 40k and it doesn't feel like enough.

[@fifthdimensionguru]

@@KennyakaTI I have 160k and it doesn't feel like enough.

[@rerako4755]

I too have 10k in emergency funds and 3k in savings, not even counting my investments/401k. it never feels enough honestly, when that number starts to shrink I get more angsty...

[@BoeingPrototype]

I have 1 million and it doesn't feel like enough

[@duanejackson6718]

If you keep your emergency fund in pennies it feels like more and it's hard to spend.

[@DriverDude100]

I originally thought DR was a successful numbers guy. Now I realize that he is gifted at human behavior. Thanks DR!

[@Dpaq13]

His story telling is unparalleled

[@mickeymichelle9067]

Agreed!

[@alvinfong1449]

Absolutely this. Most of his advice isn't actually numerically optimized, but psychologically optimized avalanche pays off debt faster than snowball since you're sniping the high interest rates first. BUT snowball's "quick wins" is psychologically rewarding and keeps people on track. pay off mortgage in 15 years - mortgages are low-cost credit and you can easily come out ahead by investing to earn 6%+ and dragging out the 3% mortgage. I can at anytime liquidate my stocks to pay off the mortgage. (In USA mortgage interest is tax deductable; Canada it isn't. this can change your numbers a bit.) BUT DR advocates getting rid of all debt and getting the financially independent freedom feeling. which is also great. Mutuals over index ETFs : something like 95% of managers can't beat the index. BUT if you can find one that reliably beats the market... hey, power to you.

[@barvdw]

@@alvinfong1449 agreed, but with keeping the baby step 1 at a non-adjusted $1000, I feel he is neglecting the number side of finances. I really wish he would adjust that baby step 1 to nowadays values.

[@alvinfong1449]

@@barvdw how many years has it been at 1000? There's conventional wisdom out there to have 3 months' expenses for your emergency fund Maybe that's with being baby step 3.5 or something haha

[@ghjong001]

Forget the baby steps for a second - where's his budget? He's netting probably 90k/year as MFJ. Where is his money going that he took almost two years to clear $30k in debt?

[@MaciasOfficial]

THATS WHAT IM SAYING DUDE! I would pay off my debt in 2 months if I were him

[@jadiecakes3241]

its called lifestyle creep. the more you earn the more dependent you become on the higher income, and its hard to learn to live on less and cut back down.

[@kyronlee8927]

He said he just got a promotion. So I think he made less than that. That’s what he is going to be making.

[@bobbyb7672]

Imagine only having $1,000 when the pandemic hit and everybody was losing their jobs. I saved my emergency fund before I paid off my debt. I slept a lot better while I was paying off debt.

[@tanL22]

Right. I would never sleep at night with less than six months in the bank. This year has shown me that I need to bump that up to twelve.

[@bobbyb7672]

@@tanL22 Exactly! That $1,000 is too scary for me. I'd rather sleep better and take a little longer to pay off the debt.

[@colinfiggins3372]

I had no emergency fund at the start of the pandemic, but luckily my job is very stable. I'm now in baby step 3 and, yes, it helps me sleep a lot better!

[@aliciab6193]

I agree. I am just piling up various savings while I still have a job. We can afford to save and make bigger car payments. That seems way less stressful. Then if shtf and we get sick or off work, we will have that emergency money to throw at the car and not worry about missing payments, plus we will be ahead from the little bit extra.

[@kylew8444]

That's not exactly out of line with the Ramsey plan... building an emergency fund does come first... building 50k in emergency funds while making payments on a 25k car is a bit ridiculous but even in this video, you should be a little bit scared of only having $1,000 extra

[@DebtFreeDad]

1000 is never enough I keep a lil more to feel comfortable.

[@dayvidsdays5644]

Agreed!

[@nocciolina]

Totally agree! Especially for those with children or those living in more expensive cities where rent is high. Some people really may need more than $1,000 saved before embarking on Baby Step #2. That's the one main alteration I made to the program.

[@TheDarylMack]

The more you can save for a emergency fund the better !

[@havuckofp]

I also keep more than $1000

[@FloydofOz]

I did $1000 for each family member until I got out of step 2.

[@mph5896]

This guy thinks he is smarter than Dave, he makes $130k a year and is drowning in debt.

[@JoeGarofaloII]

He also lives in NOVA so I'm sure the ridiculous price of everything up there scares him too

[@johndone8045]

Hes only 31k in debt, no where close to drowning.... I wont even break a sweat if i have 31k in a car, as long as my interest rateis below 2%

[@mph5896]

@@johndone8045 Why are you watching Daves video's? Everything you mention is against everything he teaches. Troll alert.

[@BoeingPrototype]

Exactly, who does he think he is?

[@MikeThePike316]

@@mph5896 - Still has a point. $31K is technically not drowning with a $130K income, but it really depends on how much of that income is going towards expenses.

[@MrJimmy3459]

His bad financial decisions are why he freaked out about the pipes and had to go into debt NOT the $1,000 beginner emergency fund

[@kelvinwilliam1681]

What really guarantees financial security is having multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@MrJimmy3459]

@@kelvinwilliam1681 no thanks scammer

[@joshmiller3673]

Plumbing isn't rocket science. Watch a KZbin video, fix the leaks yourself instead of spending 11 grand on pipes.

[@cammims7645]

That $1,000 EF is for Emergencies around $200 - $800! Realistically!

[@MikeThePike316]

That's the intended purpose. Pay off your debts to increase your snowball. If a major emergency comes up, stop the debt payments and use the snowball until you cover the emergency.

[@kelvinwilliam1681]

What really guarantees financial security is having multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@kelvinwilliam1681]

Personally I’ll recommend Brenda’s trading services. +.1.7.8.6.6.9.9.6.1.6.9 is her cell on what’s@pp. she’ll help you set up an investment plan and guide you through it.

[@carlkpsplucky5554]

Kelvin William why is every “professional” broker on wafs@pp. Gram already exposed the scam but I’m just wondering what’s so good about that platform.

[@adb2u]

@@MikeThePike316 yeah but you could emergencies that cost way more than 1000 and you are right back to increasing your debt!!!!

[@CloudTribe]

Honestly in 2020 if you’re emergency fund doesn’t cover 2 months of all expenses minimum it’s not much of an emergency fund.

[@martinlawrence8986]

What really guarantees financial security is Gavin multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@bighands69]

@@martinlawrence8986 You are not Ramsey.

[@LittleMopeHead]

Report the fake Dave Ramsey comments.

[@escapedthematrix2373]

@@martinlawrence8986 You’re a fraud!

[@garyrichardson6715]

2 months and we are now in month 9 what’s the plan

[@fhuber7507]

They didn't do the "rice & beans" either. He didn't say it because he didn't do it.

[@martinlawrence8986]

What really guarantees financial security is having multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@mwiza]

🤣🤣🤣🤣

[@mzstacystacks3168]

@1 wow that’s just wrong on alll levels smh Dave must be fuming to see this scammer’s post

[@ThisLifeUSA]

Why call Dave, if you already know his plan and don't want to follow it.

[@NaNa-lt1po]

It's called having a debate. It's not north Korea. And more and more people are coming to believe that a 1000 just ain't gonna cut it these days.

[@ThisLifeUSA]

@@NaNa-lt1po You have a point, but I don't think Dave is going to change his plan after 30 years just because a broke person call to disagree with him.

[@sidwhiting665]

@@NaNa-lt1po , so a dude who is broke and in debt wants to "debate" a multimillionaire who for 30+ years has taught millions of people how to win with money? Um, no Sir. That is not a debate. That is suicide. I mean, one of my kids took his first speech and debate class in 5th grade....but I would not send him to debate against the head of the Harvard Forensics Dept. . A debate has to have rational basis behind why method X is better than Y, and too there must be some degree of parity among the credentials of the debators. In this scenario, there is no rational basis and there is a huge gap in parity among the two parties. The Caller lost the "debate" when he called in by definition. If his method is so great, he should not be calling Dave Ramsey and asking what to do. . Now if you want to bring in Suze Orman, that would be a debate. This is just a hot mess.

[@NaNa-lt1po]

@@sidwhiting665 so just because he is a millionaire, EVERYTHING he says has to right and the ONLY way? I get that, its not the dave way, but not being allowed to even ask/question this is not the right approach IMO That being said, I follow 99%of what he says, and am sure he's ready to debate that extra 1%. We may not agree, but no one will mind asking.

[@bighands69]

The guy got confused and is clearly wanting to follow Dave's program. He did not have the money to repair the plumbing and it meant he was in a bind. He clearly needs to have investments but is not at that point as of yet.

[@SingingBeeize]

RICE AND BEANS ....BEANS AND RICE 😩😩😩

[@britt1805]

Not too bad with some Sriracha 😏

[@bryceoleski5680]

The first month after I saved my $1000 emergency fund, my parked car was struck by a hit and run driver. I had to pay a $500 deductible and had that cash! Thanks Dave!

[@arga400]

"I am not following your plan, I am doing my plan, why is it not working?"

[@jimhandler1129]

Just a question: If Dave has been suggesting these baby steps (which I agree with) for 30 years, wouldn't the $1000 from 1990 have to increase just based on inflation?

[@Pantera972]

Yeah it should be at least $5,000 by now.

[@alicelaybourne1620]

@@Pantera972 Most people would take a VERY long time to save 5000 when in debt. The 1000 is to protect against small emergencies, and provide a sense of accomplishment.

[@Donald_the_Potholer]

@@Pantera972 Actually, according to the US Bureau of Labor, $1,000 in 1992 is only worth $1,850 today. Granted, the poor feel more impacts from food & energy fluctuations than the others, but $5,000 is still too much to remain in the spirit.

[@zeemurks6626]

I believe it used to be $300

[@wyattandwill12]

For me I do my own car repairs (although I don’t have a registered car bc it probably wouldn’t make back the $250 insurance for me) and I don’t have many things that can break. Learning to do your own work on stuff is huge. For example, a blown head gasket on some cars can easily be 10% of the price if you just need parts. Not telling anyone to be in an uncomfortable place, just an idea.

[@natemullen5868]

Trust the process, it's helped millions of people for a reason. I wish I would have started sooner!

[@kelvinwilliam1681]

What really guarantees financial security is having multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@kelvinwilliam1681]

Personally I’ll recommend Brenda’s trading services. +.1.7.8.6.6.9.9.6.1.6.9 is her cell on what’s@pp. she’ll help you set up an investment plan and guide you through it.

[@roolyfe]

Same. Stick to the recipe

[@bachibouzoul]

@@kelvinwilliam1681 choke on it

[@justinacase2623]

128k, and broke! And people get by on 40k easy. Call Ron a waaambulance. 🚑

[@jasonherron4199]

I think the emergency fund should be more based on your position in life. Do you own a house, do you have kids, etc. A single person $1,000 is a big help. A family of 4 it wouldn't do much. $1,000 per number in your household would make more sense.

[@teaboone]

Why can’t callers just ask the question. Soooooo looooongwinded. Ugh 🤦‍♂️

[@ryanxiong2258]

Always seems to be that way.

[@jasonhowell8]

Playback speed at x1.5 is how I listen to all Dave's videos. Longwinded callers and Dave is not the fastest talker, either.

[@Daedalus33]

It’s not about it being enough. It’s about being able to make it through the first part. Then from there you can keep pushing with your own income after you catch up and reallocate your budget

[@gamerji-li4755]

I never could have reduced down to $1k. Sole financial provider for my family of 3. Spouse is stay at home parent. I had cleaned up my debts with more in our family's starter EF. I get that some never had even $1k in theirs before starting, but I always had larger EFs and they saved us during layoffs!

[@KTSpeedruns]

Comments: “waaa waaa 1k really isn’t enough, Dave is dumb.” Dave: “I know 1k isn’t enough. It’s not designed to be enough.” Comments still: “Waaa waaa...”

[@michaelvarney.]

Why not save zero then? With inflation, Dave gave “more than enough” back when he formulated his baby steps. Now that $1k is only worth $600. Dave math is dumb math.

[@random-nz7dy]

@@michaelvarney. so I personally do a $3,000 emergency fund. It's still plenty enough that I'm very motivated to get out of debt because I could easily encounter an emergency that takes more than $3,000. But I feel like it's fair to account for a little more depending on your situation. The point is that it's not supposed to be so much money that you become complacent with your debt. So if you want to raise it by 500 or $1,000 then that's fine. And I feel like you can do that without compromising the Integrity of the baby steps

[@michaelvarney.]

@@random-nz7dy Smart move.

[@MrTmenzo]

@@michaelvarney. inflation is about 3 percent a year. So it depends on how long it takes for you to finish paying off debt. So 1k becoming 600 and you're still in debt means you're not paying it off fast enough.

[@alicelaybourne1620]

@@michaelvarney. It isn't math at all, and he says that over and over again. His original plan had no starter emergency fund, but people got derailed by the occasional problem, and stopped the program. He makes it small and manageable so the folks in any circumstance can reach it, feel successful and move on to paying off debt.

[@dandavies7197]

Love the vids, thanks Dave.

[@sidwhiting665]

B.S. 1 is hands down one the of best techniques I've ever seen to help people win with money long-term. The problem with all the arm chair quarter backs who think it's too little is that they don't understand the psychology behind it. . $1000 is meant to accomplish 3 things: . 1) Teach paycheck-to-paycheck broke people the discipline of saving. 2) Gives a "quick win" / pat on the back when complete. Checking something off the list feels good! 3) Keeps you in a healthy state of discomfort so you get in gazelle intense mode and get out of debt faster. . The gazelle doesn't escape the cheetah because he is comfortable. BS 1 is not designed to make you "comfy"....it's designed to get you moving, accomplishing, and setting new goals. If someone else has a better method that accomplished all three of these tasks AND has been proved to work in the real world for millions of people, I'd like to hear about it. .

[@jaetaegang71]

It could also be a mental thing. I was so proud of myself when I made my $1000 emergency fund, then I had to spend it all in 1 day for car maintenance. That hurt. Yes I had money, but it was like building a really nice sandcastle for hours, just for it to be taken out in seconds.

[@ZachMurtaugh]

That’s so crazy how I was thinking the same thing this morning and then KZbin threw this video in my face!

[@CarysCorner]

Dave Ramsey's program has been successful for almost 30 years,... ...but lets hear your idea... 😆 LOL..

[@justinacase2623]

Truth bomb 💣

[@barvdw]

Ramsey has been preaching his baby steps for over 25 years, indeed. And the bones of the program are good, but the numbers do need an update. Just with inflation, 1995's $1000 should be $1700. People weren't 'comfortable' with $1000 in 1995, and people in 2020-2021 won't be comfortable with $1700, but just 2 emergencies, and with only $1000 in 2020, you're sunk.

[@justinacase2623]

@@barvdw the idea is starter emergency fund. To keep small gotchas from wrecking your plan.

[@CarysCorner]

@@barvdw probably wouldn't be a bad idea to have $2,000 due to inflation, but the framework of the plan still holds true. Walking through the steps in order work better than a shotgun approach, as the caller was talking about.

[@barvdw]

@@CarysCorner Agreed, and that's what I meant with 'the bones of the program are good'. I don't have a beef with the baby step approach, I only wish he'd adjust the numbers to today. @Azzo yes, and that was the idea in 1995, too. But even those small gotchas have gone up in price, since. If $1000 was enough for that starter emergency fund in 1995, why would $1700 not be okay now?

[@rachellee3102]

Dave's process is just a GUIDE, if 1000 is not enough for your situation then save more. For most people 1000 wont even cover a month of rent. When I was going through this process I saved one full month of expenses for my baby step one. That made me feel more comfortable. That worked for me. Debt free today. People act live Dave is GOD, like calm down.

[@ibealion1]

If they could figure it out on their own, they wouldn't need him at all... makes sense that they would ask a question or two.

[@beckyshell4649]

They know what he will ALWAYS say when they call so don't call and ask that question. If they need more than $1000 just hold back more Dave doesn't have to know. I get why he doesn't waiver with the steps and most people that start the plan have tried to get out of debt before and failed.

[@rosebogert6047]

I wouldn't be a little scared with $1k as emergency fund - I'd be straight up terrified. My mortgage is $13k/month.

[@kleindropper]

@@rosebogert6047 That's the point, to scare you. A $13K mortgage should be scary if you can't afford it.

[@wolfrig2000]

I don't like to let my Checking under $1000 AND keeping an emergency fund

[@kelvinwilliam1681]

What really guarantees financial security is having multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@kelvinwilliam1681]

Personally I’ll recommend Brenda’s trading services. +.1.7.8.6.6.9.9.6.1.6.9 is her cell on what’s@pp. she’ll help you set up an investment plan and guide you through it.

[@justinacase2623]

Kelvin, quit spamming. This is a scam, no one believes you.

[@keith819]

I love Dave's response here. I got out of credit card debt Davish, I'm more focused on getting 12 months of living expenses before paying off my student loans.

[@jeanniechristy3885]

Thank you! You are absolutely correct FOCUS is the ANSER!

[@FloydofOz]

1:10 where did Rachel learn to hold a pen? Haha.

[@T25de]

Lefty

[@bluetexastrucking5232]

Lol 😂 👍

[@ryanxiong2258]

Yuck lefty.

[@T25de]

@@ryanxiong2258 😂 Lefty is derogatory I should have said left handed 😂😅

[@polyglotsjourney]

That's right, Dave! Focus on one thing! 👏🏻👏🏻👏🏻

[@RiSkyNick]

This call was very motivating

[@kingdomross8974]

If you own a semi truck, and truck breaks down repair cost $2000. So where is other $1000 coming from out my rear end. People are in debt between 2-4 years so $1000 is not enough.

[@melaniefuifui1802]

Whew 😰 I would be scared to call

[@stacyfonoi]

Thank you for your program! Even though we were on baby step 2 before this pandemic happened and we are now just barely surviving due to the lockdowns, we are a whole lot better off than we would be because of your plan. Before the government stopped my husband from having the ability to make a living, we were able to pay off both vehicles and a small consumer debt. We still have some debt and are only able to make minimum payments right now but we are not creating any new debt. In our old life, we would have maxed out the line of credit by now and instead, we reduce the credit limit every time a payment is made. It’s funny because most of the young bank employees didn’t know that reducing a line of credit by the consumer was allowed. Thanks again for your program, it works!

[@JustinVConroy]

The baby steps were first introduced in 1992 and back then, $1000 made sense for the level of discomfort they were designed for. It would cover any single normal major expense that could arise (appliances, car parts, etc.). But, inflation has been about 86% since then and $1000 simply isn't enough for most major emergencies that can rise up these days. A more appropriate number these days would be closer to $2000. Even with $2000, you'd still be VERY uncomfortable!

[@martinlawrence8986]

What really guarantees financial security is Gavin multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@martinlawrence8986]

Personally I’ll recommend Brenda’s trading services. +.1.7.8.6.6.9.9.6.1.6.9 is her cell on what’s@pp. she’ll help you set up an investment plan and guide you through it.

[@GardeningforFreedom]

Sounds like they should have used pex instead of copper

[@kashfortheking]

Kevin Hillier I got polybutylene. Worst pipe ever. Pex is awesome.

[@jeffreyandrews5254]

"I'm freakin getting out of debt!"

[@noveltyrobot]

The one thing I will probably always disagree with Dave on is the employer match into retirement. It ends up being just over a $100 - $150 a month, and in a dual income house, you can squeeze that from you budget.

[@TommyTurkovic]

Nobody: ......... Dave: what’s you household income???

[@procapper6933]

It’s a tough pill to swallow but it’s the medicine you need. The transformation that happens is worth the discomfort you will feel.

[@kelvinwilliam1681]

What really guarantees financial security is having multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@kelvinwilliam1681]

Personally I’ll recommend Brenda’s trading services. +.1.7.8.6.6.9.9.6.1.6.9 is her cell on what’s@pp. she’ll help you set up an investment plan and guide you through it.

[@Mint-kj9kw]

What has this "pandemic" taught us this year? Everyone needs to have 12 mos of expenses saved in an emergency fund!!

[@coderefactor7294]

@@matthewkoch6937 if you're not making enough to do that, you're spending more than you make.

[@hzuiel]

@@matthewkoch6937 If you only make 2k per month, then you need to be in really cheap living circumstances to be living properly within your means. That probably means bicycling to work and having roomates. If you are spending every bit of your 2k or very close to it, you need to explore ways to spend less, and make more.

[@nryanmusic]

lol, sure, we all all get right on that.

[@nryanmusic]

@@matthewkoch6937 that's not the point. the point is a person being able to save 12 months of living expenses. You sound like you are single with no kids living in a cheap area. most people are not in that situation so get a grip.

[@jakes-dev1337]

@@nryanmusic hey now.. don't assume, its insulting.

[@lotto5742]

I have $38,000 in my emergency fund, and I feel like that isn't enough.

[@la9863]

@lotto, that’s awesome! How long did that take you? Goals!

[@lotto5742]

@@la9863 5 years. I would have more but unexpected life events happened and made some bad investments.

[@martinlawrence8986]

What really guarantees financial security is having multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@la9863]

@@lotto5742 thanks for sharing! So awesome.

[@robertsimon5869]

I also have a similar amount($32,000) and feel the same way. Why?....because there is literally a million different things that can go wrong

[@PhilipMarcYT]

Dave acted like a responsible father to this guy. This felt real.

[@Brovillion559]

I set aside 20 bucks per check from the 5 different incomes I had to get in order to get out of debt, anyhow; I saved 20 per check after the 1000 was saved. It’s a good comfort knowing and that’s how that works

[@chada75]

For the billionth time... One Month's Income!

[@missy3505]

So weird...Why are people who don't even have $1000 saved care that it's not enough 😂🤦🏾‍♀️

[@alicelaybourne1620]

Agreed. The data is clear. Before the pandemic over 80% of people could not afford a 1000 emergency without going into to debt, so I find this conversation a bit out of touch with reality. If you are in good enough financial position to have more, you probably don't need the baby steps 1-3 in the first place.

[@charletfoster8917]

Good advice--just follow it👍🏿

[@Joshmarmolejo_]

I loved his rent at the end.

[@LetsTalkPersonalFinance]

I think that's the while point of only having $1000, so you feel uncomfortable.

[@johndone8045]

Feeling uncomfortable is ok, reality 1k doesnt get u away fron emergency

[@sirimity]

@@johndone8045 it’s gotten me out of many emergencies, and I’ve then built that 1000 back up again.

[@johndone8045]

@@sirimity 1000 emergency is not so much of an emergency I hardly understand how americans dont even have a few thousands. In the bank

[@cb4354]

But its dumb though. Your just going to put yourself in more debt like this caller did. Baby step 1 so outdated but Dave to prideful to make any adjustments

[@IreneZGoodman]

It doesn't make sense. Why would you want to be uncomfortable? Why not have the money saved up so you don't have to worry about the unexpected

[@insideoutsideupsidedown2218]

The $1k is a starter emergency fund. Its just a little pile of helper money. Adjust your budget according. Dave consistently tells people if they are laid off/ had to change jobs, or lost their job that baby step 2 is on hold and you start piling up cash. Biggest thing is to have a budget plan for where your money goes every month. You very well could have a month where you just pay bills and are not paying anything extra on debt.

[@kelvinwilliam1681]

What really guarantees financial security is having multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@kelvinwilliam1681]

Personally I’ll recommend Brenda’s trading services. +.1.7.8.6.6.9.9.6.1.6.9 is her cell on what’s@pp. she’ll help you set up an investment plan and guide you through it.

[@escalade8759]

Love It! Working on our 2nd Mortgage now and we are done!

[@AnnMitt]

😬 Dave was a little rough

[@willcraigle]

Missing out in the TSP match is a mistake in my opinion. It is free money.

[@acm1288]

Agreed. I would do the same but I would not call Dave and ask for his advice. Follow his plan or not. Every situation is different and it makes sense to do what is right for you.

[@chrisstaub5880]

Exactly, it's free money that you are missing out on. Which means that's it's another source of motivation to pay off your debt fast. Sure, this may not matter for everyone, but some people really need that extra motivation.

[@mkeyw2226]

And! Increasing federal income tax by not contributing 401K

[@1jw298]

People with six figure salaries and higher make me scratch my head 🤔. That’s a whole lot of money to be worried about debt unless you are living beyond your means by borrowing when you don’t need to be.

[@JK20239]

Make more spend more is the theme for America's middle class. Being good with money gets worse as the income increases.

[@hartlytartly]

yeah, i agree. I make a thrid of this guy and have never had na issue with money in my life.

[@havuckofp]

WELCOME TO MY LIFE

[@nightfangs2910]

Yeah, even net on that income is about 80k a year, it's not a cash flow issue it's a wow I want that right now issue

[@gamerji-li4755]

Said promotion, so who knows how long they have had 6 figs. Also depends on cost of living where they are. You can make 6 figs now but had low income at the time you racked up debt. Like I had gotten student loans when I made $8.50/hr at 20 hrs a week, but now I make 6 figs and was able to clean up all my debts and start saving finally.

[@GabrielHernandez-zf2ys]

Still waiting for Dave to be a spokesperson for Domino's.

[@46ace]

"We took a shotgun approach to the baby steps"...Dave snickers.. (of course you did).

[@lindsay3793]

I feel zero sympathy for anyone bringing in six figures and can't get their financial act together. None.

[@teodjuyg56]

Depends where they live as well

[@bighands69]

He recently has only achieved that income and he is clearly trying to reduce his debts. And has had a set back with faulty plumbing on his house that had to be dealt with. Having 4 plumbing leaks in a short period of time is not good and can lead to some serious building damage.

[@lindsay3793]

@@teodjuyg56 Nope. There is no excuse. They are living beyond their means and can choose to downsize with that amount of income, even living here in the SF Bay Area. Not an iota of sympathy.

[@teodjuyg56]

@@lindsay3793 not really, even in places that are very expensive, food can be just as expensive. Even in ny, a studio apartment can cost nearly over $1,900, that's just a studio. Not to Mention having to fix pipes can be quite expensive considering he now just got a raise. Even where I live its not nearly that much, maybe a couple hundred but nowhere near 2k

[@blackworldtraveler3711]

@@teodjuyg56 It's simple. Use common sense,find a cheaper place,be patient,or move elsewhere.

[@jaredstieg4238]

I switched all my pipes over to cpvc from steel pipe and it only cost a couple hundred bucks.

[@jonymanay]

My brother had a few leaks in his house. Pvc connectors was fairly cheap. Im not sure about replacing all the pipes sounds like he got conned or something.

[@001SpecialAgent]

@@jonymanay Poly pipe is problem-ridden. Some old houses are piped in galvanized steel which rusts from the inside of the pipe out. The new PEX pipe seems promising

[@WISHBONEL7]

" You have to want to succeed , as much as you want to breathe ", Eric Thomas .

[@suem6004]

Trust the process

[@athens31415]

Yeah, so 130K is not that much for NOVA region, particularly for a couple. 1 bedroom apartment rentals are ~ $2500 - $3000/month. A decent 1000 sq. ft house is about 600-750K, and that's in the suburbs (1.5+ hour commute to city). Even cheap fast food restaurants like McDonalds and Taco Bell are exorbitant compared to the rest of the country. Gallon of cheap milk is about $4.50. Living on Rice and Beans in NOVA costs about $3500/month for a single person -- a Rice and Beans Salary around here is about 65K for one person, probably 70K for a couple. So the most you'll be able to save on a 130K salary is about 2-3K /month. Still pretty good, but not nearly the level that most people expect for a 130K salary. So paying a surprise bill of 11K will set you back about 4-6 months from Baby Step 2. Better hope no other emergencies come up in the meantime.

[@abark]

Rent is irrelevant. They own the home. Cost of restaurants is irrelevant, they are in debt and should not be eating out. Groceries for 2 people even in the most expensive places do not cost that much. And even in expensive places there are less expensive places to get groceries like Asian supermarkets, discount stores and salvage grocery stores. People can make all the excuses they want, but 130,000 is more than enough to live within your means and save plenty of money.

[@athens31415]

@@abark Paying Rent, Cost of Restaurants, and Owning a Home are extremely relevant -- they are all forms of owning property. If the average sq. ft. costs $1000 in a HCOL area, then your mortgage is sky high, cost of food and services is higher, rent is high -> reduced purchasing power. You will not find a single discount store or salvage grocery store in a HCOL area - simply because they cannot profit enough to justify the high cost of rent in such areas. You have no clue what you're talking about. You clearly never lived in a HCOL area. Your failure to comprehend something doesn't make it false. Typical ignorant.

[@joseromero81]

I agree. 1000 is not enough. Dave needs to update his advice here.

[@chrishogan544]

+1 (5 8 0) 9 5 2 - 4 2 5 7

[@gabe5661]

$1000 isn’t what it was. It’s not responsible to only have that much nowadays. What’s wrong with increasing the emergency fund to $1500 or $2500?

[@TheComicsDen]

I have been saying it for years . Ever since . 1000$ is alot of money for a 16-20 year old. Avredge adult has 1500$ a month in bills on the low end . I think ab emergency fund should equal minimum 2 months of Bill's.

[@vazjc]

These are always good when people go 'ish.

[@legendary1v1er]

I OWN THE BANKS. But yet... "it doesn't feel like enough."

[@FromDailywebEARN]

$11700 in a month is okay and I’m contented with that

[@MrTmenzo]

Cool fake story 👍

[@thecurrentmoment]

Also, one way to look at it is that unless you have actually completed something, you haven't actually made any progress, or got any 'points' on the board. This is what I have found when I 'water things down' as Dave mentioned, is that none of these problems area actually solved yet so I can't build any momentum, but they will be finished all at once, almost, just by chipping away at a dozen things. It means that you will still have a dozen things to manage, and that is where the big problem is, because it takes more attention and focus to focus on a dozen things than one thing at a time, and have one less thing to focus on each time you complete something. I found some value in managing multiple areas of my finances all at once early on, when it was all important, but now I am in a position to really focus on things and get them finished in a hurry, whereas before it was more of an epic journey of walking instead of a relay race.

[@DavidMartinez-pg3zq]

I like to to combine a few of the steps save for 3 months expenses up front then follow the rest and plow throw the snowball. After that save another 3 months and once i got 6 months expenses proceed again with Dave's plan.

[@SteveMyrick3]

To be fair, when Dave came up with $1000 in 1992, that would cover a lot more than it does today. Inflation exists and the baby step should be adjusted accordingly.

[@marybetheby5184]

Yup...make it 3-4 at least..

[@johndone8045]

Exactly, hes shot in the mind

[@duanejackson6718]

In 1992 gold was $333 per ounce, now I think it's hovering about 1,600 per ounce. In 92 a thousand bucks would have bought you 3 oz of gold, and left enough money to party for the weekend. Now it won't even buy an ounce.

[@SherryEllesson]

I agree completely, Steve. I think the starter "baby" e-fund should be $3K.

[@jeremynorris_hostyl1]

It's funny, in one of their other videos, even Rachel said the same thing. Like it should be adjusted to one month's expenses or something. Of course, ultimately, she decided to just commit to the process.

[@V___156]

Of course, 1k in your savings isn't enough money for a legitimate emergency. However, it's a blessing to even that amount of money in your bank account. If you're watching this video, and you have a 1k in your savings right now, know that you're great, but more importantly, you're blessed. Remember, many people in life do not have that amount of money.

[@MsMockingbird06]

Agree!

[@dericanslum1696]

...becausw I made it so...no magic blessings necessary or even plausible...

[@GApeech08]

FOCUS! Do truer word has been said!

[@GApeech08]

@The Dave Ramsey Show , SCAM

[@GApeech08]

@The Dave Ramsey Show , SCAM

[@araoyatomo985]

When you are on a journey to change your habits the mind will always fight against it and want you to stick with ways you are familiar with. The key thing is to get back on track and focus and know that you may be tempted to wander off again but not beat yourself up but get get back on track.

[@JadeTrading]

If you live in the US definitely not enough. You probably can't even go to a hospital with only $1000

[@martinlawrence8986]

What really guarantees financial security is having multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@martinlawrence8986]

Personally I’ll recommend Brenda’s trading services. +.1.7.8.6.6.9.9.6.1.6.9 is her cell on what’s@pp. she’ll help you set up an investment plan and guide you through it.

[@avocadogaming3942]

Keep the tsp matching its FREE MONEY 2X before you even start investing

[@DoTheDomThing]

Those long silences are making huge noise.

[@Borkybaby]

Cash is king debt is dumb. Paid off 22k this year and cleared out all my consumer debt. Now time for student loans

[@bradleymaravalli2851]

$1000 emergency fund is supposed to make you feel uncomfortable. It is supposed to motivate you to get out of debt and then go for a fully-funded, 3-6 month emergency fund.

[@TonyMaine915]

My thoughts exactly. Its low on purpose to help you get through Baby Step 2.

[@IreneZGoodman]

And what happens when you have an emergency that's way more than $1,000?

[@TonyMaine915]

@@IreneZGoodman You pause baby Step 2 and put all that cash towards the emergency. Then Restart Baby Step 1.

[@cb4354]

@@TonyMaine915 buts it's an emergency. You cant through all cash at it when you need the money now. If it takes longer than 6 months to pay off debt you need way more than 1000. Keeping 1000 in a EF for a longer period of time is dangerous and will lead to more debt

[@kelvinwilliam1681]

What really guarantees financial security is having multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@heinuchung8680]

THEY HAD POLYBUTYLENE PIPING STAY AWY THE CLASS ACTION SUIT ENDED 2009

[@shola7987]

Focusing on one task at a time really helps save time and money in the long run--with alot of things in life.

[@madisonandthespirits]

I live in Alexandria, $130k combined income is not high…this area is extremely expensive. Average house is $550k plus in Alexandria, plus other expenses are crazy. You are taxed greatly as well. You get any work done on your house, people want to charge you 300% more than other places…it’s crazy. We are trying to move out of area to save…this place takes all your money

[@darthyoda4045]

100k job and complaining about saving smh I’ve yet to even make 20k a year & still manage to save

[@Jumperman12mac]

The point of the $1000 Emergency Fund is to get yourself started with something, but it isn't enough of course. Also also, Dave made a Star Wars reference lol Disturbance in the Force

[@kelvinwilliam1681]

What really guarantees financial security is having multiple streams of making passive income. I find a lot of efficiency in spilt income sources, which has made me very successful today. You should invest in the financial markets

[@kelvinwilliam1681]

Personally I’ll recommend Brenda’s trading services. +.1.7.8.6.6.9.9.6.1.6.9 is her cell on what’s@pp. she’ll help you set up an investment plan and guide you through it.

[@RaineyPowerTraining]

He had polybutylene pipes. That lawsuit was over decades ago. Instead of replacing all them at once, just cut out the bad portion, connect what's good with pex and use shark bite connectors. At least until you can save up to replace them all.

[@philipw4849]

When Idave asks household income is that gross or net income? Second question in calculating paying off debt is he assuming the apr of the debt is zero percent? Thankyouin advance.

[@robertsimon5869]

Another person making 6 figures and 😢 about being broke

[@user-tb7rn1il3q]

Gov’t employees are bad at managing money in their personal lives as well. If you go into debt to replace pipes you are a financial wreck.

[@TheWarmUpNBA]

I could be wrong but I thought the emergency fund should be 6 months of expenses

[@dankestranch8738]

I believe that is a later baby step. Dave Ramsay's first step is to save $1000, then pay off debts, then build a fund of 3-6 months

[@brianmcg321]

You are correct. But baby step 1 is save $1000 for an emergency. Step 2 is pay off all debt. Step 3 save up 6 months for emergency fund. This guy is only in step 2.

[@suem6004]

No. 1000 before start. Only after paid debt do you have 3-6 months

[@TheWarmUpNBA]

@@brianmcg321 thank you

[@ahavahpries805]

Read his book run around his videos so u will understand the process of BS

[@SouLoV1]

How can I submit a question?

[@Financial_Awareness]

$1k should be sufficient assuming you’re done with baby step #2 within a year ASAP, but what if it takes you longer to get through #2? I’ve heard DR say lower incomes a $500 EmFund is good and more than $1k with larger incomes.