Dave Ramsey’s Definition of “Broke”

[@lightludology9081]

My mom made a joke that I will be her retirement plan. I put every bonus into retirement, all my overtime on my car debt, and haven't eaten out in 2 months. She on the other hand just spent 6k on a two week trip to Bali. We're both broke, but at least I know one day I won't be

[@USMC6976]

Yes you will be broke, because your mom intends to spend your wealth. She's not joking. You need to start now on why you won't be her retirement.

[@NellyBlueee]

I hope you shut it down when she says that

[@SpoonyLuvification]

A conversation needs to happen one day

[@Dallas_214-wy1ix]

Your mom wasn’t joking…. Be careful

[@ChanelthePomston]

That's not even a funny joke. Especially since both of you are broke. Parents should be the leading example for their kids. I'd be nervous & scared especially when nearing retirement. Behind every joke there's some truth to it

[@tigers7834]

I was broke because I was making poor choices but now I act like I'm poor. I make sure bills are paid and don't spend money that I do not have.

[@karmasutra4774]

I make sure I don't spend the money I do have too 😂

[@Chrisday90]

It's amazing how simple that is but yet nobody does it.

[@ibabymomx3]

@@karmasutra4774same

[@Justmeeeee813]

“Broke people care deeply about what others think.”-TRUTH!

[@KathleenMcNe]

I have zero debt and an eight-figure net worth, drive a 10-year-old Toyota that I will still be driving 10 years from now, and purchase some of my clothing on eBay. I couldn't care less if people think I have no money.

[@juliac406]

@@KathleenMcNe That is much safer!

[@siva47931]

Dave is describing Nagger Rich

[@markkauffman6184]

I think this is the best measuring stick to see whose broke versus who is not. As you said, broke people are all concerned about how they are viewed by other people, trying to act rich.

[@peartfaldo]

thing is...no one cares!!!!!

[@somewillunderstand]

Debt is like standing on the edge of a cliff. The falling won't kill you, but the sudden stop at the bottom will.

[@kevinmoehring8259]

I have a saying about getting out of debt. "The best way to dig out of a hole isn't buying a better shovel, but not falling into any holes in the first place."

[@somewillunderstand]

@@kevinmoehring8259 if you have to , use a sandbox kiddie shovel and not a front end loader.

[@Mr.Edwards233]

Love this

[@InnerSanctum-777]

well said

[@Bibleguy89-uu3nr]

Good quote

[@clarke4222]

My friend’s dad is a retired cardiologist, most days he wears old jeans, sneakers and t-shirts from the 90’s. He was returning a small bag of bottles at the depot and some guy came up to him and gave him a big bag and said “here, you need these more than I do”. He grabbed the bag and said “thank you very much”. He cashed them all in then drove off in his Shelby.

[@mrjuvy49]

My kind of guy I also have a Shelby GT 350

[@tykendrick800]

​@@mrjuvy49did you buy it? Or are you too broke you had to get a car loan😂😂😂

[@mrjuvy49]

I was 21 and I put 70% down, now the car is worth 90K ++

[@superblump87]

​@@tykendrick800jealous?

[@tykendrick800]

@@superblump87 I'm never jealous. I was joking dude

[@mattcrouch9348]

Almost got it, but the phrase is "all hat and no cattle" - love from Texas.

[@somewillunderstand]

In rural NC, I say " you don't have a boot to piss in, or a window to pour it out of". Harsh but reality to some.

[@percivalgooglyeyes6178]

I've always know it as; "Big belt buckle, no cattle"

[@sparky5092]

Irish saying is " Fur coat, no knickers"

[@jtd7954]

I heard it as 'big hat, no cattle' - but same thing!

[@PaulProsperInvestments]

In the book that Ramsey is quoting, it's "Big Hat, No Cattle"

[@TheFirstRealChewy]

Wealth isn't based on how much you spend, its based on how much you keep. Every wealthy person is frugal. Its a requirement.

[@KathleenMcNe]

So true. I lived frugally for so long that it became second nature and I didn't think I was living frugally. Fast-forward to the present and I still maintain many of my frugal habits even though I have zero debt and a net worth approaching $14 million (28% in stocks and 72% in mortgage-free rental properties).

[@femalephobia]

Same here👍🏼

[@karlabritfeld7104]

Like the republicans who don't want to pay their fair share of taxes.

[@peartfaldo]

does frugal mean you dont spend money on stuff you dont need???? you dont try and buy happiness....youre not bored...???

[@elliotmyers9071]

The faster they climb the quicker they burn. It’s too much friction.

[@SK-fp4ed]

A poor person is due to bad circumstances. A broke person is due to bad choices!

[@joycewright5386]

Yes! I grew up poor but as an adult I am not broke!

[@Omar_Zazzle]

@@joycewright5386 Where is the $5.00 you owe me?

[@SK-fp4ed]

​@joycewright5386 Same here! Kudos to you!

[@annaburns2865]

You make no sense. A poor person is a broke person.

[@Rory-p1l]

Living in Canada doesn't help.

[@Allisoninspirations]

The only debt I have is my mortgage. Thats being paid off early. Im a self employed hair stylist working part time, have 4 kids. Started investing at age 23. I'm 47. Was a single mom for awhile. Remarried now but we are both on the same page about finances. I feel incredibly blessed that I learned early on, although in my 20's I made many mistakes. I came from a family where my parents always had money issues and broke all the time. I had to teach myself about managing money. If you don't manage your money, It will manage you.

[@Shreddahtrades]

Your doing amazing ❤

[@johnnyjesson2358]

Broke is loud.... wealth is silent

[@reese85]

that depends on the person! Idk why we act like all wealthy ppl are silent! Jeff bezos has a $500 million yacht, that’s not silent

[@ButteryAssNigga]

⁠@@reese85most wealthy people dont have jeff bezos type of wealth. I make around 35k a month and i only have 1 pair of shoes.

[@sppeders1]

@@reese85 wealth is quiet, rich is loud, and broke is flashy.... that's how i remember it.

[@reese85]

@sppeders1 I heard the saying b4 but as I said. It depends on the person when it comes to being wealthy and silent

[@boombaman31]

I don’t know if I agree with this. You have athletes, actors, singers, etc that make millions upon millions of dollars and they are flaunting super nice cars, houses, jewelry, watches, etc.

[@petranubaum7431]

We were able to live without a car for seven years when I stayed home with the kids. After that time we went and bought a used Ford Fiesta which has been the best car really. The dealer asked my husband: "Pastor, how can you drive around with such a small car?" And when my son asked why we don't have a better car I toll him that the car we have to drive is always the best car. We had the priviledge to be able to never go into debt...

[@Kroh13]

Please tell me you left the house sometimes though ..

[@muzerhythm2242]

"Cars that don't fit the neighborhood" is more accurate than the credit card to pay for a meal. One of my neighbors has a Tesla...and I'm in an older apartment (built in the 60s) with NO charging stations!🤣🤣

[@robertthomas9564]

With tax credits & incentives a brand new Model 3 can be had for $25k. A used one can be had even cheaper if you shop around. If you're just running around town, you only need to spend 20 minutes at a supercharger once a week.

[@Greggsberdard]

A wise person knows that building wealth requires wise investments and proper knowledge or guidance in the financial market. The stock market offers opportunities to maximize profit, but executing effective transactions requires skill and expertise.

[@crystalcassandra5597]

Investing in stocks can be wise with a reliable trading system. Focus on learning when to buy and sell to minimize losses and maximize profits, and be prepared to capitalize when the market rebounds.

[@BateserJoanne]

You're right! I diversified my $400K portfolio across various markets with the help of my financial advisor, and I've been able to generate over $1.2 million in net profit from high dividend yield stocks, ETFs, and bonds during this downturn.

[@VictorBiggerstaff]

How can I find your financial advisor? I need all the help I can get, especially in this crisis.

[@BateserJoanne]

Rebecca Nassar Dunne is the coach that guides, you probably might've come across her before I found her through a Newsweek report, she's quite known in her field, look-her up.

[@grego6278]

I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.

[@isaac23cify]

Aright. Long time listener here. Baby steps 4,5,6. Big believer in Ramsey Solutions. And I know credit cards are the devil with Dave. But if you see someone pull out of a credit card to pay for dinner, it doesn't mean they're broke. Or even close. :)

[@KathleenMcNe]

I hear Dave say that, and I know he's not correct. I almost always pay cash for restaurant dinners, but on rare occasion, I have used a credit card. I have zero debt and a net worth approaching $14 million, and I haven't paid a cent in credit-card interest in decades (I pay the full balance off every month without fail). I knew someone who was in virtually the same financial position that I'm in and he always paid for dinners with a credit card (and never paid any credit-card interest in his life, paying the full balance off each month).

[@RetroGamer20109]

Just because someone uses a credit card doesn't mean they are broke. I know to Dave it might be, but I know countless people who are wise with money and may have a credit card and use it

[@iati6294]

@@KathleenMcNegood for you but those credit card companies don’t own big buildings thanks to people like u, it’s the single moms or single dads, young adults that live paycheck to paycheck that pay for that.

[@Bruin2002]

Definitely agree. With a few millions in net worth, I use credit card on everything. Of course never carried a balance. I even choose to have a 0% 3-year car loan, so I can cash flow it and don’t have to liquidate investments. I think broke means you are not responsible or lost control to your money. Dave is very successful teaching broke people by simplifying financial strategies, but the fact is everyone’s financial situation is very different, especially when NOT broke.

[@MrJimmy3459]

Doesn't mean you're Winning with money either

[@Jules-916]

I saw a clip from the show 90 Day Fiancé where a lady bought this huge, ultra-modern house but the fridge is completely empty because she had no money left after buying the house.

[@williamfoxx3277]

That is crazy but not shocking which is sad to hear

[@carguyuk7525]

Try not to care what other people are and do. Do what is right for you.

[@lifesabeach746]

‘All fur coat and no knickers’ is what we say in Belfast, N Ireland

[@deborahwalsh30]

In the US, it's "all hat and no cattle".

[@deborahwalsh30]

Dave just said it!

[@allisona6482]

I love this phrase! 😂 thank you!

[@RabJ208]

Especislly around the Monagh Bypass area

[@annahopp]

That is hilarious. I have a friend with four Jaguars and color-matching fur coats. 🙂

[@MiseEnPlace26]

I was most definitely broke even when I thought I had it made. Looks so different in the rearview! Thank you helping us find the strength to change!

[@yujie1973]

When David talked about two 60k cars in front of a 400k house, that's my situation. My house worth about $400k. I bought 2 new cars last year, one is a BMW $62k and the other Tesla $42k, not two 60k but close. Looking around my neighborhood and many people drive older regular cars. The big difference though is that I paid cash for both cars. I chose 400k house is because i don't need a big mortgage payment. I bought 2 new cars last year because I like cars and also i can afford. I have decent savings and retirement funds in place. Maybe David suggests two 60k cars should be in front of a million + home.

[@BillyTimes-h9r]

Wealth is silent Rich is loud Poor is flashy

[@imkindofabigdeal4308]

This is really a "Are you making other people wealthy?" or "Are you building wealth?" discussion

[@joshualubin784]

Dave, I'm a BMW.... Black Man Working....Lol!

[@fernandop4393]

The best I heard in many many years

[@7th_Heaven]

Nice. Very nice

[@Constellasian]

1:57 "Wealth is not appearance". If only Asian communities, such as my ethnic community, would take this advice. I learned this lesson during 2014 because a former coworker, who happened to be a fairly wealthy guy, explained the concept to me. This simple conversation played a major role in changing my life for the better.

[@baconblaster6422]

I use a credit card at dinner and for all payments because I refuse to use a debit card in public and I am far from broke lol. I will never use a debit card for external third party vendors ever again after I had a fraud fiasco with chase that took 3 months to resolve. I had to contact the CFPB and everything. Banks act insane over debit card fraud cases versus if it happens on a credit card. Above Ramsey's head. it was a 3 month litigation nightmare to get my stolen funds back over debit

[@BuckNaked2k]

I have never used a debit card in my life. Everything on my cc and I have never paid a penny in interest.

[@boxbuster1000]

Her comment on using a credit card to pay for dinner is the most incorrect statement ever! I know because I'm a retired server that use to work at a well known luxury hotel. Our owners were the original founder with a small stake as he sold out to the new owners (One was the richest man in the world and the other was a Saudi Prince, you can figure out the hotel chain with this information.) The rich basically never use cash! Why? Because using credit cards leaves a "paper trail" that makes it easier for them to write off their expenses that their accountants will use. In fact, the really rich never see the bill it's the assistant that we interact with and will get the bill. Also, when we do get large amount of cash to pay the bill it's because the guest is a drug dealer. The bills literally smell like pot.

[@brianwhitehawker1756]

Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated.

[@Tonyham198]

the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.

[@yeslahykcim]

Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.

[@lucaswilliams9992]

impressive gains! how can I get your advisor please, if you dont mind me asking? I could really use a help as of now

[@yeslahykcim]

Lucinda Margaret Crist is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

[@Jadechurch-ql3do]

I appreciate this share. I set up a call with her and I am keen on getting to talk to her particularly. Lady looks really great though even with the exams and other stuff.

[@FaithAndrada-xo9ou]

Creating wealth entails establishing positive routines, I had only $78k to my name at 42 when I first woke up to this reality. I chose the stock market as a medium of growth, got an excellent financial advisor, Financial management is a vital subject that many avoid, often leading to future regrets.

[@BrewerVera]

Indeed, currently I'm managing my finances wisely and being frugal. In the last 19 months, my investments grew by 43%, adding over $500K in profits. However, I've had losses in the past month, making me anxious. I'm unsure whether to sell everything or wait.

[@AndersonFair-cy2bb]

No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.

[@Raymondcraw1967RaymondCrawley]

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@AndersonFair-cy2bb]

Her name is. 'RACHEL SARAH PARRISH’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@Raymondcraw1967RaymondCrawley]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@LarryWeathersby]

We have zero vehicle or toy payments. We are doing the debt snowball, which in itself means we are living paycheck to paycheck…his own system says every extra penny goes to debt and that’s what we are doing. We are insured every way possible, and it kills our bottom line.

[@kaizenborntowin]

Money talks, wealth whispers.

[@joeydupre6153]

$15.00 Walmart jeans are good enough for me.

[@philipgerry5228]

I get Sams Club jeans.

[@joycewright5386]

$2.00 yard sale for me.

[@Omar_Zazzle]

I live in a nudist colony, but due to all the fat people who have moved in, I have gone blind.

[@MarcoBonechi]

That's a wrong extreme, fabric quality is a real thing. Find a balance.

[@johnjones393]

Same here but I splurged on the $30 Lee jeans from Walmart. 😂

[@Yogastrong908]

Being wealthy means more than high income or no debt. It means making good money and not spending more than you make.

[@ryanwilliams989]

Nice content! Few years back I was assistant to a wealthy pen artist and within the short period I worked with him I observed that he had quite a chunk of investment everywhere, stocks, crypto, dividend investing to name a few, so he had revenues coming in from all angles. And in a year his worth doubled. With this I learned that the rich stay rich by investing.

[@StellaMaris-lv2uq]

Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.

[@hunter-bourke21]

I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.

[@maggysterling33254]

@@hunter-bourke21bravo! I appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?

[@hunter-bourke21]

Wright promptly do a web check where you can connect with her *Gertrude Margaret Quinto* and do your research with her full names mentioned..

[@TheresaAnderson-kf5xw]

My needs are kind of unique and complex. I'll contact her nonetheless, and I hope I'm able to make something out of it.

[@timsmith8506]

I needed a truck. Went to ford which “pre qualified” me for $124,000 loan…….saw a beautiful and well maintained 2019 Dodge Ram for $16,000.00. I paid cash for that vehicle and I have never been so satisfied with a purchase in my life!! It looks beautiful, but more than that knowing that next month and the month after that I won’t have some crazy payment on a $124,000.00 truck is amazing!!! And WTH how is it even possible to spend $124,000 on a ford pick up truck? That is absolutely crazy! (I was looking at F-150’s)

[@LHSHarmon]

How many miles were on that truck?

[@timothysmith7080]

@@LHSHarmon 120,000

[@Jehdhdu]

That jaguar joke has me cryingg😂😂😭

[@truthsayer9534]

So true. I have buddies that always have to have a cool car (payment). They are broke. Meanwhile, I have four paid off cars. My car is a 2010. Not much left on the mortgage. Our net worth is $2.2 million. It’s not rocket science. It’s putting away $200/month for 40 years in mutual funds. I prefer a whole market index fund.

[@MrJohannson]

Skip to 1:52 for the answer

[@warwagon]

I liked the Apartment complex statement with the $40,000 car parked outside. There is an apartment complex down the road from my house which appears to be lower income and there's always a Tesla Park to the parking lot

[@omarhafiz8981]

Just subscribed. I love this show. Watching from Malaysia.

[@JohnSmith-wp2yu]

I always pay for dinner with my credit card for the cash back. I pay it off at the end of the month and never carry a balance. So what?

[@KathleenMcNe]

Dave refuses to believe that people like us who pay the full balance every month exist.

[@NeoAndersonReloaded]

U probably spend more then u would with cash. Thats the trick. Its already been proven. Thats why they give rewards

[@alexm260]

@@NeoAndersonReloadedAnd? “Living like no one else” isn’t supposed to mean you spend as little as possible forever.

[@KathleenMcNe]

@NeoAndersonReloaded That's certainly not true for all. I would still purchase gasoline, take my dog to her veterinarian, stay at nice lodges on road trips, purchase gifts for my nieces and nephew, etc. if I paid cash instead of using a credit card.

[@JakeSweeper]

His point is that a credit card makes it too easy to spend money you didn't need to; mostly because you're not actually seeing the money go. It's why he recommends paying cash whenever possible because you see it go, and it'll make you think twice before buying whatever it is. This helps you make better decisions on where you money goes.

[@deelehey2827]

True that wealthy people don’t give a damn what anyone else thinks.

[@peartfaldo]

and those who "think" about others too much have problems......

[@petranubaum7431]

It is a priviledge to listen to your show! There is still a lot to work on for us. We live in Germany. And I just now discovered your show. I have to learn more about the baby steps...

[@tranger4579]

Simply put… if you have to finance it you can’t afford it. It’s something I dealt with for a long time before becoming financially free. Now it’s ingrained into my psyche and I question most purchases if they are really a necessity worth financing. That’s is how I have managed to stay debt free.

[@blackworldtraveler3711]

My dad has been telling me that since I was a child. Only debt I ever had was a 30yr mortgage I paid off in nine years.

[@charlesbyers6911]

I bought a sports car this month. Red Mustang convertible. Used. About 40% of sticker. Lifetime powertrain warranty. Paid cash. From the sports car fund. No debt for many years. Bought my last pair of jeans from Kroger for $23, with a coupon and cash. Now, I can afford to pay cash for a new car or fancier jeans, but why would I?? And that is the attitude that got me to cruise control in finances.

[@joepic85]

Net worth tells you if you are broke or not

[@MX-CO]

I have a 2004 Yukon 4x4, that Paid $2800 cash for. Runs good, looks good imo, and no payments. Ive never understood why people pay so much. My vehicle gets me there just the same.

[@JasonGroom]

Based on the way Dave described how to identify a broke person, most people would look at me and assume I'm broke. I live in a house i bought for $100,000 twenty years ago, but have nicer cars and toys and such that don't fit the neighborhood. It probably looks like i an drastically overspending. All 3 if my cars, my two motorcycles, my golf cart, and my camper are still less than half my annual income and all paid off. We go on international vacations regularly, all paid for in cash. Sometimes the person smart with money just spends it where they care and not where they don't.

[@Lilzigzz]

No need to flex

[@parker1981xxx]

You scream broke.

[@t.k.3895]

You're the anomaly. He is describing the majority. He is right. However, what is your net worth.

[@USMC6976]

Yes, you would be an exception. I had a neighbor that was the exception. But in general, it is true.

[@JasonGroom]

@@t.k.3895 7 figures

[@user-fp4dr1ne7z]

Dave can go on rants sometimes but I can tell he has a big heart ❤️ way to make this into a teaching moment for a young man 👏

[@CYCO1631]

My wife and I work hard to maintain 'not broke' status. Culture and inflation make that tough, but we're trying!

[@CatholicElectrician]

I wear jeans every day and I would never spend $50 on a single pair

[@Rashaadthegr8]

A person with a negative networth is broke. Math doesn't lie. Assets-Liabilites.

[@downburst1]

Exactly this. Don’t worry though as it’s a journey you can very easily and enjoyably take over time.

[@debmacie1612]

I have a friend whose husband bought very nice clothes. And he took everything except socks and underwear to the dry cleaners. So he overpaid for logo clothes, then quadruple+ paid for them again by sending them to the dry cleaners. The owner said he alone put her kids through private school. What an idiot. Now, he had the money, but how silly.

[@FrankPatrick-no8zo]

A prudent person is aware that accumulating money necessitates prudent financial decisions as well as appropriate understanding or direction in the financial system. The stock market presents potential for profit maximization, but successful transaction execution need knowledge and experience.

[@CrystalJoy-32]

Stock investments might be prudent when made with a dependable trading strategy. To reduce losses and increase profits, concentrate on understanding when to purchase and sell. Then, be ready to profit when the market rises.

[@LuvmeRos]

You're accurate! With the assistance of my financial advisor, I diversified my $300K portfolio across multiple markets, and through high dividend yield equities, ETFs, and bonds, I have managed to earn a net profit of almost $1million throughout this slump.

[@albacus2400BC]

I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?

[@LuvmeRos]

There are many independent advisors to choose from. But I work with "Monica Shawn Marti" and we've been working together for almost four years and she's fantastic. You could pursue her if she meets your requirements. I agree with her.

[@RuthEvelyn-rc3bg]

I really appreciate your useful advice. I was able to set up a call with her and confirm her identity. She seems incredibly knowledgeable, and I hope I'm able to connect with her.

[@kingsgold]

According to Dave, both broke and rich look the same. They drive a $50k truck, but you have no idea if they paid cash or if they have monthly payments.

[@davidpugh8772]

when i worked in sales at a Ford dealership the millionaires would come in, and choose the Ford F-150 King Ranch (a $100k+ truck at that time) and sit down and discuss financing but wouldn't allow us to perform a credit pull until they knew the rates from Ford financing, they would then discuss with their spouse whether to pay cash or finance for the truck. one time Ford didn't offer a person the 0.9% rate and instead offered 2.79% and the guy wrote a check and told us to call his bank if we needed to confirm the money was in the account (iirc he bought a $98k King Ranch) but all the broke people wanted the Ford Raptor... I guess for the image?

[@reese85]

@davidpugh8772 but how did you kno they were millionaires? Cuz they were able to write a check?

[@MrMustangrick]

@@davidpugh8772in a year that truck is worth 50k.

[@annaburns2865]

Finally a sane person! Thank you for seeing right through this dufus! I have no idea what churches pay him for because he’s a huge liar!

[@annaburns2865]

@@user-qp2qe5gf9bno one carries cash anymore.

[@gibblespascack1418]

I am a 2015 VW Passat, TDI, SEL. When I got it, I wrote the check for it.

[@La_sagne]

great car!

[@gibblespascack1418]

@@La_sagne I got the TDI because Consumer Reports said that it is the only engine to buy from VW from the Chatanooga plant.

[@BarbinAZ]

My truck I bought in 2001because I "needed" it is still running great. 1970 Ford Ranger. I still have it, it is great for garbage dump runs, hauling big stuff, and camping. Now it needs about 1000 front end work, normal wear and tear for age. I cant buy any other truck with just 77k miles for 1 K so I will fix it. I get low ball offers on it all the time when people hear how smooth it runs. Nope. My insurance for having 2 cars not one is less than 20 percent higher and I can jump my own battery, and have my own loaner car when either is in the shop. Car 2 has 176k mikes gets over 30 mpg and unlike the truck has AC. Both paid cash for.

[@singerjo5791]

My daughter's neighbor is having to sell their house and move into a travel trailer with two kids. But, they have gone on a Disney vacation and a Branson vacation, nails are done, hair is highlighted and 6 year old in $3000 cheerleading. I will never understand giving up your house for vacations and fake nails. (You mean I shouldn't put my state park cabin vacation on Facebook? Haha!)

[@jay0863]

Having a nice car in an average neighborhood doesn't make you broke. It just means you're a gear head and like cars. My buddy lives in an ok neighborhood he built a large garage out back and have many different cars and motorcycles inside. All are very nice; it's his passion. Kids thru college and nice home paid for and loves tinkering with his toys. He's an aerospace engineer 30+ years and is loving life with no worries. You can't take the money with you so why not buy and do the things you enjoy.

[@DackDavenport]

They're not broke though.

[@jasoncq2023]

I get 5% cash back on our grocery budget. But the rewards are basically free Christmas presents for the kid

[@Omar_Zazzle]

You must be getting the kids presents from a cereal box.

[@rebeltheharem7028]

Hmm, at 50 bucks a present for 3 kids, you would need to spend at least 3K on groceries, which for a family of 4+, seems reasonable.

[@abhisekmohanty4959]

Keep using credit cards and pay on time. These people dont know how to manage finances and preach everyone how do manage things. Everyone is a millionaire from 1990s whats new?

[@LHSHarmon]

This is exactly what I've been doing for the past decade. 600-1000 dollars accumulated over the 12 months.

[@robertthomas9564]

Consumer science says the opposite. Research shows that credit card users who don't carry a CC balance will overspend/overpay on their purchases. This is a proven fact and is part of the CC company's business model.

[@steelcastle5616]

Although simple, this is a great question. The varied responses support the need to have a more specific definition of these basic concepts people use. The same needs to be done for "wealthy," "rich," "poor," and "middle-class". It's much more than just how much money or things a person has.

[@Amandaaaaaaaaaaaaa]

We have a net worth of 2.6 million , we are in our mid thirties and drive a 2009 honda CRV that is wonderful but there is some discoloration due to sun damage . I was in an Aldi Parking lot next to the car getting ready to enter the store , a sweet lady gave me a 10 dollars gift card and told me the struggle will be over one day. People judge by appearances

[@TonyLambshanks]

I went to the grocery store after cutting the grass once. Dirty Shorts, shirt with a hole and paint on it, old shoes just to grab a few things to throw on the grill. I always price shop and a guy was watching me. From out of nowhere he hands me a $20 and says you can use this more than I can and insisted. I had to over insisted much hard back that I appreciated it but there are far more many people that could benefit from his kindness than I could.

[@smilinjoe23]

Flex on KZbin= fake 😅😭

[@blackworldtraveler3711]

@@smilinjoe23 You care deeply about what this guy thinks.

[@smilinjoe23]

​@blackworldtravealer3711 Typical assumption. And I believe Amanda is a she/her 😅😂😭

[@Amandaaaaaaaaaaaaa]

@@TonyLambshanks there is a lot of kind people out there, they may judge by appearance because that is how society taught us but their heart is in the right place

[@ancientcall7737]

Man I love Ramsey for his no bs straight up attitude ... he is also a very civilised and well worded gangster somehow! I see a lot of the broke people with money in my social circle. Like they both say: lots of talk, tons of advice and always pointing out how much money they get per paycheck but between the lines you can see that they spent too much on nonsense or status and somehow are not really free or spontaneous for what they truly want to do.... how weird and paradox. But I am so thankful for this advice because I have to admit that for some time I really got intimidated by those rich brokies.

[@Mike-m2s9x]

I pay for EVERYTHING with a credit card. I just make sure the bill is paid by the end of the month.

[@jimclarence5441]

Agree with you. One advantage of a credit card is when you shop for necessities and find them on sale (like food staples) you can buy them in bulk. Use that credit leverage to save money long term.

[@ryanl3812]

We are debt free thanks to Ramsey and on the cusp of a 7 figure net worth before 35. Love the guy and the system. BUT, I will always disagree with their stance on credit cards. If you travel a lot, a good CC is a must.

[@markmurrell1894]

USA: “cars are a status symbol” UAE: “hold my beer” 😂😂😂

[@SpoonHurler]

@@markmurrell1894 Or hold my rosewater 😅

[@geo525252]

Most people have never been anywhere near broke. If you have a job, you're not broke. If you have a usable credit card, you're not broke. If you have anything left to pawn or sell, you're not broke. What you're describing here is managing debt and financial responsibility.

[@AnOriginalYouTuber]

I saw the economic trends and purchased a small affordable house 2 years ago. Now, everyone I know is struggling month to month and has almost no retirement. I'm solidly in the black and have 23% going into retirement. The cost vs wage ratio is insane but I'm still thriving.

[@bobcantstandzyobitz9778]

I have a 400k house but that's because where I live that's what gets you a 2000 sq ft townhouse. But it's a modest house for my income, and I'd much rather have a modest house with a million invested than a million-dollar house and a modest amount saved. And you're 100% right, when you hit a certain amount of money saved, you become comfortable with yourself, and really do stop caring what people think.

[@annahopp]

Interesting discussion. One downside of NOT being broke is that your 'stuff gene' might break. You might find yourself driving a safe, reliable, affordable car that impresses nobody.

[@raemaxey3401]

You guys are so funny about the cars! I’m a paid off 2016 Nissan rogue…lol. I only want to listen to people that are winning with money. Thanks Dave and Jade.

[@EricMoore790]

When your check gets DPed into your account and you can't pay all of your bills.

[@blancaungson4490]

I was broke, thank to you Mr. Ramsey l been doing many thing diferente, like investing a 1,000 a month for retirement , we have our 6 months emergency fund, some moths are hard since we don’t have always the same income. My husband is 58 and have no much for retirement. I was ignorant about financial, but thank God, I’ll been leaning a lot the last couple of years. Everything is possible to those who believe.🙏🏼 God bless you all.

[@azteca6695]

My husband and I are debt free. We drive older vehicles, we shop at thrift stores, we bring lunch to work, we buy electronics at the pawn shop and I never thought it would be possible as we are blue collar worker.

[@annahopp]

You are awesome! Many people think it it not possible on blue collar incomes.

[@reese85]

@annahopp what’s a blue collar income? Cuz I’m a blue collar worker and although I don’t think my income is a lot, it’s more than most

[@RobertDeffley-l4r]

You are never debt free.

[@stacybender4414]

I love reading the comments, and had to laugh at the troll who was complaining about a financial show caring about money. 😂 Also, the 'Eye of the needle ' in the Bible is referring to the little door in the main gate/door that is closed at night. Not a sewing needle. Abraham and a lot of other names in the Bible where rich by our standards, and took care of a lot of family/servants.

[@mikefixescars]

The average age of a millionaire in the US is 62 I believe according to some sources. So good luck finding a millionaire next door that is 35! They are more likely than not in a gated community, or simply bouncing around from hotel to hotel across the world in their business and leisure ventures

[@asnboy1084]

If you have any kind of Debt, you’re broken. Listen to those with no mortgages and no Debt. end of story.

[@karmasutra4774]

Proud to have no debt at this moment. Things can always change . But it does feel good

[@alansach8437]

Zero debt and we froze our credit (for security reasons), so unlikely to accrue any! We do have credit cards that we use to pay just about everything. We collect points (like free money) that we use for Christmas every year. The cards are paid off 100% every month so we never pay interest.

[@shantakoa8596]

For me paying for a meal with a credit card means 1. That the only card or money I have right now or 2. I get reward

[@tracybrovan3997]

Come on...pulling out a credit card to pay for dinner is *NOT* a sign that you are broke. Come on.

[@travisbickle1455]

But buying groceries using credit cards is.

[@davidpugh8772]

@@travisbickle1455 i buy groceries with my credit card and pay it off every month... i don't see your logic

[@scottm0727]

@@travisbickle1455 no it's not. I get an automatic 5% cash back, that's cash not points, on every grocery store purchase. Why would I turn down a guaranteed 5% discount on everything, including sale items? I go home and immediately pay off the c.c. charge and take the money out of the grocery budget. That's call smart financial decisions, not broke.

[@gearsofwar3xXx]

It's unfair to judge someone strictly on the basis of using a credit card. They could be paying it off every month for all someone knows.

[@blackworldtraveler3711]

He’s just talking about massive amount of financially stupid people.

[@dmoore319]

Everything they said is on point. Most people judge wealth and success by appearance. If they see someone dressed nicely, driving a nice car, or living in a nice house they assume they are doing well and not broke. But many of these people are drowning in debt. Some people who make 75K are better off financially than some people who make 150K. It's true that broke people are obsessed with the appearance of money and people who are smart with their money and not broke don't care and typically drive older cars and live a low-key lifestyle.

[@fasteddy3336]

When does a person go from “broke people” to “not broke people”? After baby step 3? After baby step 7?

[@SpoonHurler]

Emergency Fund imho. But Dave is describing broke actions, not broke results. Plenty of people getting out of debt have tons of rich person actions and plenty of trust fund kids have broke behaviors.

[@mattcrouch9348]

I would say, emergency fund + at least 15% monthly investment

[@JasonGroom]

@@mattcrouch9348 I would add, once they have enough to pay all their bills, and have enough left over after investments and payments to enjoy life.

[@robloxvids2233]

I'd say anyone on step 5. No debt, e fund, and saving 15% for retirement. Even if you just completed step 3 you aren't really making progress since you aren't saving.

[@jarodarmstrong509]

Man does this hit home. I worked in NYC for several years before having a kid and everyone around me was always upgrading in apartment, buying new clothes, racking up huge bar tabs, etc. They'd poke and giggle at me for limiting myself to free events and parks for recreation and eating from food trucks if I didn't pack a lunch. Fast forward a few years and I'm sitting in a house with 30% equity with a paid off gently used Lexus out front and we own our first investment property. Guess I got the last laugh.

[@MontyQueues]

but food trucks aren't cheap, it's still "eating out" lmao

[@AlmarMaiden]

*If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you...prevent inflation*

[@EdgarBossen]

Interesting, This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro Investor?

[@PickeringDeets]

I feel Investors should exercise caution with their exposure and.exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or a licensed expert in order to navigate this recession and achieve potential high yields

[@AlmarMaiden]

Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.

[@AlmarMaiden]

Brian Humphery Services was my hope during the 'bear summer' last year. I made so many mistakes but also learned so much from it, and of course from Brian.

[@AlmarMaiden]

He is really a good investment advisor. Was privileged to attend some of his seminars.that's how I started my own crypto investment

[@soumyajeetchakrabarty6872]

Loved the convo, word of the wise, I will definitely implement this nugget of gold in my walk of life

[@ludens1526]

To me a negative net worth.

[@JasonGroom]

@@ludens1526 you are broke long before your net worth goes negative.

[@percivalgooglyeyes6178]

Bingo!

[@markchapmon8670]

If you carry any credit card balance, you are setting yourself up for failure. If you aren't saving up an emergency fund, same thing. If your car battery died and you have to make payments on the replacement, how can you possibly afford to replace your refrigerator? Emergencies happen and if you have no savings, you have to finance everything that goes wrong. Life has emergencies every now and then, be prepared or be devistated.

[@saramatthews7159]

Did Dave really just say "bling bling?" I love this man!

[@evanl889]

A 50k car outside of an apartment doesn’t mean broke that’s definitely painting with a broad brush. Some people choose to live in apartments to not be tied down to one spot and have tons of money in investments. My next door neighbor at my apartment was a single guy who sold his house cashed out huge, had a pension with past work even though he was only late 40s, millions in investments, and secondary employment at a local bicycle shop probably not making much but he liked being a bike mechanic drove a nice car. He just liked being able to pick up and move if he wanted. We had a lot of talks about finances. He was always big on index funds. He put everything in there. The amount Dave is talking about 50k for a vehicle he was probably making in interest per month from his investments. I do agree big time with what he said about broke people caring a lot about what others think. When you have all the money you need for yourself and you don’t stress about finances, suddenly the world opens up to way more things, start spiritually being able to explore life a little more and you do things that you truly enjoy. Yeah if you buy a vehicle for validation you’re certainly a bonehead but if you enjoy it for yourself it’s no different than any other hobby or indulgence.

[@davidpugh8772]

i pay for all my monthly expenses on a credit card... but i have the money in the bank to pay it off so that's debunk

[@Baywood]

Then why do it?

[@davidpugh8772]

@@Baywood i get 3% cash back so if retailer/merchants want to offer me 3% off my purchase for using cash or debit I would switch back to using cash or debit but until then I'll take a 3% discount

[@alansach8437]

Do the same. Get points back which basically is free money. Usually end up using them at Christmas, so Christmas shopping is essentially free! We pay off the credit cards 100% every month, so never pay any interest.

[@davidpugh8772]

@alansach8437 that's cool! I just don't understand why Dave is so against them, but at the same time, he probably has to be due to the financially illiterate. I've already paid my stupid tax in the past and I don't ever want to do that again

[@TheFlyingZulu]

@@davidpugh8772 He is against them because MOST people won't actually track what they spend. Most people will pay the 5% "credit card fee" just to get 3% in "cash back". They're stupid and don't realise they're actually paying 2% more by using a credit card... We're the minority and I have LITERALLY never heard one of my family members or anybody for that matter ask a restaurant "is there a credit card fee". I ask it every time.

[@KHallJr]

I love this! I know alot of people who fall into their description.

[@williamho7393]

Shovel is small, hole is larger = broke

[@Naturenerd1000]

New cars are literally 1 years salary. Way too expensive for the car payments.

[@zeal4god402]

Broke-Your expenses are multiplying while you're net-worth/income is subtracting Broke-Your church-offering never exceeds $1

[@robertthomas9564]

Lots of people have gone broke by being hoodwinked by people claiming to represent the invisible man in the sky.

[@DioDiablo702]

I'm broke cuz my bills take up almost all my money. It's at a point where I need a better job to survive. The job market is filled with crappy jobs so it's gonna be a chore.

[@ivar766]

From $7K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family

[@dorathystephanie7702]

I agree just reached my goal of $100k monthly trade earnings. Setting realistic goals is an essential part of trading

[@AIIG-zd5dx]

How does this trading stuff work? I'm really interested but I just don't know how it go about it. I heard people really make it huge trading..

[@WelseyWalker]

Get yourself someone like Stacey Macken who understands the market very well and is also a professional in placing trades. That's the key

[@robertgreg6009]

Wow! Kind of in shock you mentioned expert, Stacey Macken. What a coincidence!!

[@arktom7335]

Stacey's understanding of market indicators is impressive. She knows exactly when to enter and exit trades for maximum profit. her signals are top notch .

[@kymfrancis4612]

My husband & I are well off through utter hard work & dedication, we are self funded retirees & completely debt free. We both like decent cars & quality clothing; but we do not give a single thought about what other people think about us & our money or our possessions.

[@bcjammer87]

Here’s what broke looks like: the late 20’s married couple next door to me (grade school teacher and grocery store worker) in a $375k house with two $60k cars in the garage.

[@reese85]

60k for a car nowadays really ain’t a lot of money, especially for a house costing $375k

[@bigbubba4314]

Wow, start putting some money aside and offer to buy their house for cash, at a good discount, when the time comes. Because the time will come….

[@potdevodka]

@@reese85 I disagree, 60k is a lot for a car, especially for a 375k house... You can get a good reliable second-hand car for much less

[@reese85]

@potdevodka sure they can get cheaper cars but overall! 60k for a car nowadays is not a lot of money, especially not for a house costing $375k

[@Francisco-po1cf]

@@potdevodka I depends on what you get. You could get a fully loaded Lexus es350 for about $55k or a $60k pickup truck with cloth seats.

[@TK-1270]

My wife and I use our credit card exclusively to buy everything for 20 years. Bills around 5K a month. Never miss a payment

[@cheapcookies]

As already mentioned, using a CC to pay for dinner is not any hint of wealth, period. Everything else in this video is pretty much spot on. It's the level of indifference, the more you have, the less you care. Thank God I'm in the top 5% of wealth/zero debt in the US, and yes - I don't care what others think. A Toyota and a Chevy pickup are just fine in our household. Even in retirement, we are still building wealth simply because we live on much less than we spend.

[@KathleenMcNe]

I sometimes use a credit card to pay for dinner but haven't paid a single cent in credit-card interest in decades. I have zero debt and a net worth approaching $14 million, drive a 10-year-old Toyota and purchase some of my clothing on eBay, (like you) am still building wealth in retirement because I live on far less than my gains, and couldn't care less if people think I have no money.

[@madamenoire6830]

Not true. I personally use my credit card and pay the balance off every month in full. I also get cash back.

[@stretchluv]

Every purchase I make is with my credit card. I never pay when the bill is due. I pay immediately so as to avoid paying interest. I also get cash back. Last year, I got $1,400 back and I’m already at $1,200 in August this year.

[@PatrickJackson-mi8rh]

I was homeless, got into drugs went to prison and then I got to know Jesus and she changed my life... Heaven came through for me in my finances too, getting $50,000 in 2months . I can support God's work and give back to my community. God is absolutely more than enough! Now I have a new identity and a child of God

[@RoseGregCorona]

You're correct!! I make a lot of money without relying on the government. Investing in stocks and digital currencies is beneficial at this moment.

[@AbdulrahmanOdehBahr]

Mrs Michelle Catherine was my hope during the 'bear summer' last year. I did so many mistakes but also learned so much from it, and of course from Michelle Catherine.

[@LydiaClark-ne7mr]

Well...I will advise you should stop trading on your own if you keep losing and start trading with an expert because trading with an expert is the best strategy for newbie...

[@LouHondo-vl9ce]

Wow, I'm surprised to see Michelle Catherine mentioned here as well. I didn't know she had been kind to so many people.

[@DominiqueHarrison-ww2nc]

I remember friends calling me crazy when I started but i now shut up them with my four Figure weekly returned

[@2023Red]

We are fully retired and have a $1200 car payment. And mortgage. Combined debt is 25% of income. But why not? We earned our pensions and who wants to amass a million dollars to give to heirs and lawyers after we pass? We owe them nothing. Our remaining wealth goes to the Navy Seals who contributed their lives to keep up all free. Giving your wealth to family is quite selfish. What have they done for America?

[@LarsBergstrom-uh2eu]

It's really tough out here. My mom is struggling to figure out how to invest her savings of $280k in this unpredictable economy. She's worried about making the wrong move and losing it all. Does anyone have any suggestions on what we should do?

[@simonbad]

The market is so volatile right now. I've been looking into real estate, but even that seems risky with the current housing bubble. Maybe diversifying into some stable bonds or high-yield savings accounts could be a safer bet?

[@Erinmills98]

I recently put some money into index funds. They might not have the highest returns in the short term, but they tend to grow steadily over the years. It's a bit less risky than individual stocks, at least from my experience.

[@Andrian-ch3on]

If you're looking for someone who can really guide you, I’d recommend checking out Kristin Amy Rose. She’s been amazing in helping me.

[@MuradSamadov-n6i]

If you're looking for someone who can really guide you, I’d recommend checking out Kristin Amy Rose.

[@AstaKristjan]

Honestly, I was in the same boat as your mom, LarsBergstrom. I've got some savings and no clue where to put them. It was great to hear from someone who has successfully navigated these uncertain times and shared their strategy. It has been working out well since I started following the advisor rcommended.