Dave Ramsey vs. The Money Guy: Which Strategy is The Best?

Dave Ramsey vs. The Money Guy: Which Strategy is The Best?
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[@Ryan31310]

I never understood why people would need dave over the money guy strategy until I tried to help my parents save for retirement. long story short they were trying to use credit cards as "good debt" to fund their business. Its very hard to flip a switch for those who've done it so long and people like that need dave's strict guidlines.

[@chris24hdez]

I know plenty of grown adults aged 30-92 who do not respect debt and constantly steal from their future without understanding what is going on. Dave Ramsey is for them.

[@thesytch]

That is such a good point. As much as everyone wants there to be a one-size-fits all strategy, it differs from person to person.

[@kevintheshane]

Totally. I really don’t care for Dave’s style and I’ve heard some things about him that I really wouldn’t agree with. All that said, I truly can’t argue with the results. FPU works for people in the way that my finance nerd advice does not. So that’s good.

[@ericjuli6576]

Similar experience with a co-worker. Not running a business, but just couldn’t handle the responsibility of managing the debt.

[@Spladoinkal]

I mean to be fair, I use "Good debt" to fund my business and it has made me far more money than I could have if I would've been debt free and waited. The idea though is that you pay OFF that debt asap before it does eat away from your bottom line.

[@fonz-ys6xu]

I'm a fan of both for sure. My take is this: if you're on baby steps 1, 2, 3 as defined by Dave Ramsey, then stick with him. If you're on steps 4, 5, and 6, it's time to listen to the money guys. Each of those are great sources of financial advice.

[@genxx2724]

I’ve posted numerous comments after Ramsey videos telling people it’s time for them to graduate to the Money Guy. Unfortunately Money Guy has lost their focus on teaching sophisticated points to the financial mutants.

[@SKBottom]

Nailed it.

[@acebragg5559]

I kinda started going in the Money Guys direction even before I ever heard of them, which was only a couple of weeks ago. I definitely enjoy both though and they both do great work.

[@markc7575]

My wife and I did FPU and it revolutionize our finances and that was back in 2015. I still follow Ramsey Solutions but I have also been tuning more in the Money Guy Show. I couldn't agree more that a blend of the two strategies is huge. Move with gazelle intensity in Baby Steps 1-3 and in 4-6, apply the FOO and become a financial mutant.

[@theclothingcottage]

I totally agree, I'm on bs 6 and with the high yield savings accts at 5.25% and my mortgage at 2.99%, I started to think I am probably in control enough at this point to funnel money to the hys acct. Once those rates start to tumble I can always move it to paying off the mortgage. But this would not work for someone likely to use that money for other things.

[@shauntelcampos3212]

Dave’s method is good for people who don’t have good financial discipline. Most people don’t and Dave’s method helps break people’s bad financial habits.

[@robertrecchia2642]

Exactly! I use one credit card for convenience & pay it off weekly. I use it to fill my tank up with gas ⛽️ & buy groceries. I’m not getting rid of it!

[@Imhere12345]

That was me

[@stephanieharries7746]

😊👍 agree

[@SomethingSimpler]

I think you're totally right. Dave Ramsey is what some people need. But you can do better if you can handle it.

[@jonm.678]

Dave is great for lighting the fire in you to take finances seriously and get your act together. I discovered him five years ago and paid off my student loans and car. Since then, once you get the general financial responsibility lessons- it’s time to graduate to the money guys.

[@dobber43]

I think that a good way to look at it he makes it simple enough for not very financially educated people to be successful

[@TanyaScorpio]

Agree....Dave starts that beginning you literally cannot do the money guys until you get out the debt. Also Dave has his ELP... Dave gets the monkey off the back... These guys help grow your money if you do not want to use an advisor.

[@adamcates603]

Well said.

[@betterwithrum]

100% We did FPU; it got us started down the right path. We've made a ton of progress. But Caleb Hammer has pushed us over the edge. I'm here on the Money Guys because we need to know what to do after we're debt-free when the house gets paid off soon.

[@InReality33]

Nailed it

[@debbiefried3533]

Dave Ramsey says to tithe from the BEGINNING. But extreme generosity is what has to wait.

[@brizzlebuster]

I paid my house off just before I turned 40. I am a CPA, so I understand the math between the two approaches. However, for me, there isn’t a day that goes by that I don’t feel enriched from living in MY house. For me, what it may have cost me was worth it and now I invest with “gazelle intensity”!

[@ctndiaye1]

Agreed. I'd love to see them make 2 different illustrations on this just for poops and giggles though.

[@randalfischer8939]

And even if you pay it off it still costs you every year with taxes! I'm still a believer of you pay it off taxes shouldn't happen! This is a big reason why our elderly can't afford their homes after they pay them off.

[@burkles4456]

@@randalfischer8939that would be a huge blow to state tax revenue. Which the elderly also rely on for healthcare etc.

[@b.c.2836]

I agree, I am financially disciplined, but I have a "safety" gene and want to have safe investments protected before the more risky ones. That brings a peace of mind that makes me enjoy life more having that security

[@brucema38]

When it's urs, it's urs. Minus property taxes. Good goal to have.

[@heartofamericafpv5584]

27 year old me really needed Dave and 40 year old me appreciates your advice.

[@forzared101]

I always look forward to hearing what Bo is excited about in each episode.

[@andiclemenza6476]

🤣🤣🤣🤣 me too

[@Psudoki]

I'm really excited about this comment! This is going to be the most exciting comment about Bo's excitement ever!

[@freeindeed8416]

“Love it!!”-Bo

[@dkaik]

I started off listening to Dave. That was until I was honest with myself with why I had debt (post divorce shared debt) and realized I would respond better with data driven methodology rather than emotionally driven. I wasn’t in debt because of any particular bad habit but rather life simply happening; and in fact, I learned since starting consuming financial content I had an affinity for handling money. The Money Guys made me learn I love wanting to optimize rather than need to “fix” myself financially.

[@gaddylh]

Fan of both. Think the main thing is to pick a plan and stick to it. Both are way better than no plan!

[@ericolens3]

i actually use both. Dave is better for paying off debt. i dont have a job with a 401k, i will have a pension plan. So i want to maximize my time horizon by NOT having debt by retirement and also having supplemental income from a personal ROTH. also, also, i like my cars so i did my on spin off and will save for them in cash/investments/CDs so that I can pay in cash. essentially, I decided on my maximum car price FOREVER. 35k for my entire life and will save for it in 5 year increments, so that by the time I retire, the money can pay for both repairs and the interest can perpetually accure. I mean I might buy a car every 5 years or actually wait every 10 years or even when it fully breaks down. THATS MY OPTION. but I'm not maxing out my money on vehicles that take away from retirement. While that sadly denies me certain types of vehicles, it enables my future self to one day make a FULLY FUNDED (ie not financed) dumb car purchase. laugh at like im poor now, but I'm debt free. and I'll have enough WEALTH to pass off to my kids to have them born with silver spoons. my great idea is that I can do a cash out refi my home and give the money to my kids so they can have a house PAID IN FULL and they just pay our mortgage and own 25% of the house. and when we die, they can have the home in full anyways. 😂😂😂. they can then fully use that home as a rental or sell it. we would be dead anyways, but it could serve them well to do as they see fit. KEY THING IS, to NOT have lots of kids. I want minimal inheritance. 100K ÷3 has less purchasing power than 100k ÷2. this is my LIVING inheritance plan, aside from a life insurance policy.

[@paulbrown5937]

Ramsey is listening to your gut, money guy is listening to your brain. I listened to my gut until it came time to pay off the house early and then started listening to my brain

[@elenaflorintsev7555]

Excellent video. I just want to comment that Dave's clients are usually less financially sophisticated and in more need of money education. I applaud Dave for being very simple, clear and very approachable. His books are at 6th grade reading level and ensure that people actually understand what to they are reading. Typical CFP program is getting really sophisticated really fast

[@isaacbarr6651]

Dave Ramsey made me care about all of this. I could’ve skipped him and gone to you all, but he made me care enough to find you all.

[@brentstenson3114]

Dave helped us immensely in our early thirties. We built on our success and have now moved on. Most Americans should follow Dave’s advice.

[@laszlobauer5274]

You guys and Dave are all awesome. Main difference I see is that you are more math, Dave is more life. I experienced on myself that I consider my purchases 100 times to make sure I am getting the best deal since I don't use credit cards. I love spending money and it's easier if I don't have a credit card in my wallet which can get me in deep debt. It's the same as having to walk next to the cookie jar every 10 minutes when you are fat. It helps in my diet to forget to grab a cookie.

[@RamaSivamani]

Yeah I think if you are a natural spender then what you say is true. For people that are natural savers and hate spending though I can see them using credit cards without getting into trouble with them.

[@DrJack144]

Not gonna end up in bad shape with either one tbh. If you can handle a little bit more on your plate, I like the $ guy strategy more 😊. Worth the extra compound interest to not pay off the house before 45, 2% cash back on credit cards, and 20-25% rather than 15% savings during the process.

[@GeneralSirDouglasMcA]

Also, contrary to what Dave says, it can be extremely difficult (if not impossible) to qualify for a home loan with no credit score, and therefore an entry-level credit card can be good for building credit in order to get a home loan. However, I completely agree with him on avoiding credit card debt that you can’t pay off. I never use more than 25% of the limit (it won’t help your credit score as much otherwise), and it’s always an amount that I can easily pay off with cash.

[@trevorpennington924]

perfect description!!!

[@christiaaanC7]

Plus, taking advantage of 401k match before paying off debt, and the first step is better than Dave's baby step 1

[@andyw6996]

Dave Ramsey is a racist tho. Very condescending to persons of color.

[@ToOpen6seven]

@@GeneralSirDouglasMcA I am going to say this -- I LOVE Dave Ramsey, but even before listening to these guys I had decided early I will NOT cut up my one credit card that has been with me for 10 or more years and when I didn't have a job, my credit card help me feed my family. I keep my credit card not only paid off, but even with a $100 credit, if I can. You have to eat the meat and spit out the bones. I also differ from these guys where I want to pay off my mortgage ASAP.

[@markhagerman3072]

The first criterion: if someone can and will follow one path and not the other, the one he'll actually DO is the best one (for him).

[@RCGuitar982]

I've loved the ramsey material but have started to disengage from it because of the company's social conservatism and religious influences. Nothing wrong with living your life like that! But if you listen to the callers, its kinda frustrating to see him telling a couple with 1 low income job that they can definitely have a 7th child, but that someone with even a penny of outstanding credit card balance can't order a pizza. I wouldn't say they are hypocritical, but there is DEFINITELY a bias

[@uneducatedchristain2963]

Lets not forget how badly Dave has shit on his employees.

[@drjag1688]

I started learning from Ramsey maybe 4 years ago, but glad to meet the Money Guys over the past year! I'm slowly moving to area between the two. I've always been responsible with money; never carried credit card balance, but was very skiddish with any kind of investing (retirement or otherwise). Been a slow but steady journey beginning in 2012. Maxed my retirement contribs for first time last year and accelerating!

[@sallyprzybil2404]

There’s something in both strategies that’s missing. That is: have an individual Brokerage Account. It would prevent, to a degree, what we see happening now. Right now in our tough economy, many, many people are dipping into their 401k, destroying it, to get money to just cover their monthly bills. If they had an Individual Brokerage Account where they had built up some money for non retirement use then rather than destroying their retirement they could use this account as a buffer. Also it would be a buffer protecting them from using their emergency fund for everyday living expenses. People seem to have forgotten about these types of accounts, but, boring as this type of account might be, it does have a place in a good financial strategy.

[@JesusGomez-ny5wu]

The money guy show just fits better in my situation, I can identify with everything. Thank you for all ya do! You guys have inspired me.

[@DennisMemmolo]

The point is to invest 15% then pay off the house. Then you invest as much as you can to build wealth. You don’t stay at the 15% forever

[@grady3691]

Yeah how the hell is someone nowadays making 40k BEFORE tax gonna be spending 10k a year on retirement when 15 should be plenty and that’s way better than most people that are way in debt.

[@iamjacquesbarjon]

Regardless of the difference between the two, I respect TMGS guys more because they can disagree with someone without calling them "stupid" or that they "live in their parents basement" - or justify why they're right because they're rich and have helped X million people. They back up their claims with facts and numbers. You can tell that they have tremendous respect for Dave and are okay with people disagreeing with them. Dave really turns me off with how crass and disrespectful he is at times. He was being nice when they came to his office, but you could tell he was threatened that somebody else had actually come up with a system that was helping people and that could compete with the Baby Steps. Following the Baby Steps isn't going to lead you into a ditch by any means, but the FOO is just better and more realistic in today's world. You guys covered it all here, but TMGS's take on credit card usage, home purchases, emergency reserves, and index funds vs. mutual funds makes so much more sense than Dave's alternative. I wish I had found you guys sooner.

[@jonc101x]

After following the contrast for a while and deciding what is better, I eventually realized they're quite similar. Dave recommends only 15% to retirement investing while extra should be going to pay down mortgage. But then he also recommends 100% stocks for the retirement investing with no bonds. So he's basically just paying down the mortgage loan instead of buying bonds. If you consider that debt is a negative bond, this ends up being quite similar to just doing all investing in a balanced stock+bond portfolio.

[@barnabusdoyle4930]

Probably the most important thing to have fully paid off when you go into retirement is your house. When you are 25, paying off your mortgage quickly doesn’t make that much sense, but if you are 45 paying it off quickly is pretty important. The one thing that Dave doesn’t go into is how to create cash flow in retirement. Rental properties is a good thing for that, dividend stocks or REITs is as well. What’s important is to go into retirement with as few expenses as possible while creating a few streams of cash flow.

[@Stashmo]

Not really. Focus on dividends is misplaced. Too many other simplistic misconceptions to get into. Check out Rob Berger videos, for example. With inflation at 5+%, why repay a

[@thebestthingthatneverhappe6729]

very unique way of looking at it, thanks for this perspective

[@taylorjackson7908]

I started with Dave and graduated to money guy. I really believe you all go hand in hand with each other.

[@Kornheiser10]

If you need to get out of (bad) debt like credit cards, than Dave is your guy, but if you're out of bad debt, then TMG will move you forward in creating wealth, which sometimes includes having some low-cost debt, like mortgages

[@novamaster0]

Back about 2-3 years ago when I got my first 'big kid job" and started finding some KZbin channels and found Graham Stephen, Ramsey, and such and started seeing the advice and going okay, well close enough, but I'll do a few things my own, I finally found a video that talks about some differences of opinion with the baby steps, and have found and loved this series since. As someone who's income has climbed into a position where I can let my financial mutations show. I'll admit this content (Along with some of the books) have gotten me from 'just the match' and paying down some student loans to paid off student loans, maxed out 401ks, IRA, and HSAs, and it's fun to see this go full circle now for me. Feels like the Star Wars line, When I left you I was, but a learner, now I am the master.

[@overcaffeinatedengineering]

Sounds like you guys are more geared for mathy people. I appreciate that, but I also appreciate how Dave Ramsey gives achievable advice for people who aren't going to dig into the numbers

[@choomanfoo157]

One of your best videos, great explanations and comparisons, lots of information and what mindset lead to each strategy, always been a fan - love your fiduciary work as always!

[@BunkMasterFlex77]

Financial mutants will have to vote for the money guy show.

[@betterwithrum]

The 30yr vs 15yr is a risky way of lifestyle creep. This requires a mountain of self-control and the highest levels of executive function. Your comments at the end are on point. We needed Dave to get started; we're getting to a place where your advice makes sense for us.

[@hooch5254]

I look at Dave’s plan as the first step basics to learning how to manage your finances, a plan for life time security. I look at the Money Guy as the next step after the basics, a plan for life time comfort.

[@myyt3824]

Dave’s strategy is for people who basically cannot handle debt or credit responsibly. There’s a lot of people out there who cannot have credit cards because they will bury themselves in debt and interest. Neither set of principles will steer you wrong! Both ideologies will land you in a good financial position when you’re nearing retirement. Both require sound decision making and discipline.

[@craigb4449]

Which is the majority of people

[@bulldogfightingforfreedom]

Right !

[@theduke7616]

I agree that it is the majority of people. My criticism of Dave would be that he thinks it's 100% of people.

[@whothou]

that's all apart of the mental gane though. You're not seeing that. For the sake of the majority he has to be 100% with his points unless he's outright incorrect. Because people listen in and if they hear flip-flop or exceptions people will always think their different.@@theduke7616

[@J_pearce01]

Man I’m happy I found these guys. I’m 28 but have only been in my career for a year. I’m gonna have to do some research and watch more videos going forward. Found Dave first so I’ve just been paying debt for the last year.

[@annerosewilson6710]

Love love love the comparison, explanation and how each May be utilized depending on where you are on the journey to financial independence. You guys are awesome!

[@ianjunkermann8194]

Wow. I've been watching Dave Ramsey for years and have been beginning my baby steps this past year. Then found The Money Guy and wanted to know the differences. Low and behold they have a video on it! And low low and behold it JUST came out!! Thanks for the information guys. I have some things to consider.

[@dragonofparadise]

Dave is good for beginners and novices. Your program is for more advanced financial managers. Dave's method is better from a psychological perspective since most of the American population are beginners. For those of us who are more advanced your way is better, but you cannot force someone with a beginners mindset to practice advanced actions until there mindset fundamentally changes. That psychological connection with money that has made Dave so simple. Keep it simple and easy to understand for 80% of the population.

[@christopherjaeger3196]

I have started the journey late, working multiple steps at once, had already gotten to 25% savings rate between building emergency funds, and retirement, but only recently. At 48, planning on 11 years to not needing to work for money. Still have debt, but have a plan for elimination within 3 years. Most fun i have all year is net worth statement time in december. Have enjoyed these guys, has helped alot in my planning and distribution of assets.thanks Brian, Bo, Rebie, Daniel, your all great.

[@SpencerBMcDuffy]

Some people ask me for financial advice, and I typically recommend the baby steps. The simplicity of his plan just makes it easier to recommend for someone who’s beginning to step up their finances. I will also tell them about the FOO. I just tell people that all playbooks will work- if you work the plan. Dave is great at getting people to take action and that’s why his plan works. He gets people to actually do it!!

[@educatedwanderer9293]

I was a Dave Ramsey fan, and I followed his steps getting out of debt. I departed DR's approach when it came to investing, and found Money Guy, Vanguard, and Paul Merriman to guide me in saving and investing. There are certain aspects of DR's teachings that I never followed... but I did use his steps to pay off debt.

[@tsiongemechu4253]

This is a very helpful episode! I love Dave Ramsey, I am a huge fan of his! I just discovered this channel which I like. A couple of things on Dave’s side of the game that is not presented here 💯 accurately is that: 1. Dave strongly recommends you buy your car cash if your current car is working fine but is just old! He says that if you must get into car loan make it under two/three years just like you guys say! 2. He strongly recommends 20% down for a house on 15 years! He is very strict on the 15 years but not so on the down payment as long as it is 25% or less of household income. 3. I have also heard Dave talk about index funds and not only mutual funds! Overall I like this channel and I am subscribed! Thank you for all you do guys!

[@anniealexander3402]

Having a paid off mortgage gives you opportunity. I was mortgage free in 2006. In 2007, I bought the home I live in now for 63% off it's previous appraisal. Credit froze and banks wouldn't lend money on foreclosures. I used a heloc to purchase homes for pennies on the dollar. I paid for two homes in 10 years. One home is 3br 2.5 baths, bonus room above the garage, formal areas, fireplace, jetted tub, dead end street but 3 minutes to I20. The other home was a brick ranch with a detached garage on an 8 acre mini farm. 🚜 I'm mortgage free again and watching people rack up consumer debt. Inflation is no joke and eventually the music will stop. I'm not sure if housing will ever be at the prices they were back then but something will be a great deal in the next couple of years.

[@oferzeira8125]

Well done discussion. Thanks.

[@hannahforrester6782]

Dave recognizes the mental changes that have to take place. He calls paying off those smalls debts little wins. It keeps you motivated to continue the process. If you’re working and working on one big loan with the highest interest. It’s gonna take far longer to pay off and mentally, you may get tired and give up.

[@Gamma_Labs]

The reason dave does it the way he does is because he's trying to change habits. You cannot say the rewards of a card are good to someone who already has shown the ability to mismanage their money. It's all psychology.

[@DanDannyDanielleBob]

I have a lot of corporate finance and strategy experience and so I am often asked about what I invest in. I always answer the same way. "Do you have credit card debt? Because if you do you need to follow Dave Ramsey. You are going to hear about Jesus more than you want to, but just like AA it works. You are the financial equivalent of an alcoholic. If you don't have credit card debt, follow the money guy."

[@Joseph-nd6bi]

Great points they have. Dave is definitely the way to go if your problem is behavioral and discipline.

[@kzalaska4804]

Honestly following either would put you far ahead of most people because most people don't have a plan for their money.

[@marg8315]

I wish I had found you guys a long time ago, before my friend recommended Dave Ramsey to me. I really didn’t buy Dave’s methodology even tho I have huge respect for that guy. In my line of work, I see rich folks getting loans to fund their businesses and I don’t agree with his attitude towards loan. His mortgage plan is also pretty ridiculous to me… and so I didn’t follow his other advice. Your FOO tho makes soooo much sense to me and I wish i had followed you guys earlier.

[@RR-jk3rl]

Ramsey is for those with no discipline.. MG is for those with some basic financial education and at least SOME built in discipline. Starting saving EARLY is extremely powerful. Starting < age 24 can set you up with much less stressful messy middle.

[@mollyholmes709]

Great content! I value your guys' ideas. What are your thoughts to PMI on a mortgage when you do not pay that 20% down?

[@fglend73]

I love both dave and the money guys. The reality is both camps have done a world of good for so many people. Regardless of who you think is right, you're going to win with either strategy. I use credit cards, i think you can use one wisely. But i agree with Dave. Even if you optimally use a credit card for points, it is not going to move the needle on your wealth building whatsoever. So if you cant control your spending, cut it up.

[@Benruhl17]

I appreciate how you handled this, financial mutant now after Dave got me started. Very classy content from you guys while staying strong with the FOO

[@SeanPitts92]

I’m in the same boat

[@Wongoo]

Baby steps vs FOO is the similar to debt snowball vs debt avalanche. Both are good. Both have their pros and cons.

[@BradColemanisHere]

I like that you're recognizing what Dave does well. I think you could have spent even a minute more on the psychology aspect. That example is great of the folks you've been telling to get out of credit card debt over and over and they don't listen but then they find this guy named Dave Ramsey and all of the sudden they've stopped carrying debt and aren't living on credit cards anymore. Why? Because it's not about math for them. It's about behavior and that's what he addresses better than anyone else. I also don't agree with Dave on everything but for those who would suggest he's not doing a ton of good, you aren't seeing the whole picture. I'm glad I found you guys though. I'm passed the baby steps and would like some advice for people who are good with money but need to avoid pitfalls.

[@1CJ6]

Good show. Did notice some information that wasn't exactly accurate in regards to the baby steps, but overall not bad.

[@rosepetal9067]

I follow both Daves and you money guy guidance. In particular what you say about auto purchases Brian if a person isn't knowledgeable about cars and car maintenance even though new cars do depreciate a person could end up spending more in the long run buying used cars and constantly paying a mechanic money getting them fixed.

[@patde1264]

You can not work on a new car with all the computerization. Even the manual will tell you "no user maintenance" the backyard mechanic days are over forever!

[@patde1264]

Dave is way out of touch on the Car issue

[@elisemedina2237]

Thankfully both are available for us to watch and learn.

[@Mare00711]

Great show

[@corriganburks3175]

I’ve always told people financial advice depends on their financial behavior. if you lack financial discipline Dave Ramsey is your man. If you are past that hurdle you the maximizing strategy you guys pitch.

[@thesytch]

Always sound advice. I love how respectful you both are with how you handle Dave Ramsey's baby steps.

[@arturovillaluz2053]

All these recommendations are good but very few people will follow them. Sad. A typical 25 year old will see age 65 as too far to wait, they want to enjoy the fruits of their labor NOW!

[@jonbossaller5358]

Building wealth is 80% behavior and 20% head knowledge. Dave's plan is great for you to get control of the 80%. The money guy seems to just focus on the 20%. Thier plan will only work if you have the 80% under control. These two plans do not have to go counter to each other. They can compliment each other, but only if you get that 80% under control. Simply, Dave wants you to build wealth while having good financial health and habits. Money guys just want to help you build maximum wealth fast and safe, assuming you already have good financial habits and responsibility.

[@Mr_NB628]

I would love to see you, do some Contin with Caleb Hammer and/or react to some of his financial audits that he does. I think you could provide some insight.

[@AbidingHopeMentalHealthCoach]

I’m listening to them talk about saving 25%, and back when our marriage was young, we were budgeting 10-15% for church and other donations, and we basically had a rice & beans budget. I was a SAHM, and it was hard. We could do that now, but when we were spending half what other people were spending on groceries, and there just wasn’t money left at the end of the month… it wasn’t possible. And we budgeted. Diligently. Didn’t matter. If we hadn’t had 3 kids, I could have worked and it would have been easy. The only debt we ever had was a mortgage; if we used a credit card, we paid it right off. Thankfully we are in a much better place now. But my husband won’t listen to me anyway when it comes to money. So we paid off our home in 18 months, and he’s looking at buying a second house soon as he can save up a down payment. Still isn’t funding retirement.

[@sherryie2]

I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.

[@McElvinn]

I can feel your pains. New guys need to realize the risks that come with all of this. You could lose it all and you could win it all. It goes both ways. Second, what works for A may not necessarily work for B and you should not be a bandwagon investor. A good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge.

[@corrySledd]

@@McElvinn Factos!! Since the market became extremely volatile and pressure increased (I should be retiring in 17 months), I took the decision to work closely with a financial advisor. It has already been 9 months and counting, and I have made approximately 600K net from all of my holdings

[@corrySledd]

@@AUstinnesc credits to NICOLE DESIREE SIMON, one of the best portfolio manager;s out there. she;s well known, you should look her up

[@Tromboninja]

Brian brought back the hilarious transformer noise!!! 😂😂 @39:38

[@arekkusu888]

Dave is for people who are having financial difficulties. The Money Guy is for people who don't need Dave. Both are doing good work.

[@damiangrouse4564]

Im too old to have listened to you money guys. Charles Givens did give me the nugget (among other factors to be honest) that allowed me to retire a year early. His saying was “pay yourself first” which is exactly your recommendation to max out your 401k/403b/IRA. Young people DO IT you won’t regret it.

[@eveliah88]

I’m fun of both because Dave makes me feel like I have to do something, on the other hand the money guys are very detailed in their advices

[@alicelaybourne1620]

Personally, I think setting it at 25% when most folks (60+%) can barely set aside 5 -10% is too lofty. 15% gets you there in time unless you are are simply to old to hit the mark. Obviously the math is better for 25% (duh), but for the majority of people? 15% is a great goal to strive for. And accessible to people just out of college, getting first homes and cars. Just my opinion, I'm with Dave on this one, also noteworthy that he does recommend more for older folks who are behind.

[@betterwithrum]

I think the only issue with being 25 and saving 25% is not realistic. I was barely making enough to get by. I had to get a second job and go to night school to just barely break even.

[@CameronTucker06]

This

[@zeldat6654]

Love compounding. But as an older adult(65+) with a 30 year loan, minimal savings (compounding is in the rear view mirror.) And not able to save more than 15%. Max out the 401k match of 1.5%. Currently have only 60k in it. Roth funded fully. A 3 month emergency fund.. Should I start build a bigger emergency fund or invest in 401K more? Obviously not retiring soon. Glad I like my work.

[@evanhiggins7298]

To finish off what the money guys are talking about. The book psychology of money by Morgan house is a great and relevant book

[@96ej]

I love both the money guy and the Ramsay crew, and depending on topic i side one way or the other. Eg. We got a 30-year loan on our house and 3 years into it we have 20 to go. That said the flexibility on a few tight months was a true Saving Grace

[@kildli]

I think the biggest difference between the money guys and Dave is that, Money guys show us how powerful $1 is, while Dave is laughing and calling you stupid for getting $20 cashback for spending $1000 on a credit card, even if that $1000 was necessities and you didnt pay single penny as interest.

[@tcgtpl]

Well put. The Ramsey Solutions Team will never admit that there are people who have more financial discipline than a five year old, and will make misleading statements about things they don't understand.

[@jimhandler1129]

@@tcgtpl Agree. They should include a segment for those who have achieved BS7 and are financially disciplined and able to use credit cards to our advantage.

[@tcgtpl]

@@jimhandler1129 They’ll never do that, though. Mr Ramsey’s rise to fame is due to his hardline stance on debt, and has openly stated his hatred for credit cards (especially American Express). The Ramsey Solutions Team will always badmouth credit cards & banks.

[@jimhandler1129]

@@tcgtpl Dave always brings up how millionaires didn't make their money off of getting credit card rewards, which is true, but he never says how many millionaires actually have and know how to use credit cards to their advantage.

[@Shayne01]

Dave does point out that the cash back you get is basically funded by some poor financially irresponsible person that is drowning in debt. He has acknowledged that some people can make it work, but he is still against it.

[@greggsadler4387]

I’ve been a Ramsey guy but knew there were some mathematical shortcomings. However, with my first wife we never really got to baby step 2. With my second wife, we hit baby step 1 completed very quickly, even with part of my paycheck going to alimony. We are on baby step 2 & 3. Because of my wife’s health issues, we are building up our emergency fund as we pay down debt instead of after. (Good thing-she needed 2 surgeries this year and missed 14 weeks of work, and with my taking a summer job which is there because I’m a teacher, we didn’t go into any debt.) Now, this is where I like the Money Guy Show. Their system seems to have some flexibility for people like me. And I like systems. I have no credit card debt. My wife brought in a student loan and we have a car payment and a mortgage. Fortunately I will have a teacher pension, and my wife will have a small pension as well. Based on those numbers, we should be okay. The Money Guy stuff is helping me be better than okay. Great episode. I’m super encouraged!

[@Teisha2112]

Money Guy ❤❤❤❤❤ Less Drama more actual advice!!!

[@samventi8160]

what is your view on business debt vs consumer debt? I view business debt as good debt and consumer debt as bad debt

[@geneslodysko6150]

Dave agrees with “tithing” from the beginning. His step 7 is extreme over the top, above and beyond at step 7

[@drewshultz8951]

When it comes to determining the emergency fund, should that be to continue your current spending on investing and savings or bare bones to cover the minimum expense?

[@TxHoneyBee]

The Money Guys are more humble and gracious, period. That is why I prefer them .

[@bekratzidy]

as a 36 year old that took on an army of student loan debt by 2009, this makes me so nervous for my future. No debt outside of mortgage and student loan, but maxing out my 401k is impossible right now and I am already behind on how much I should have already saved.

[@ReelNewwt]

When people say save 15 or 20 or 25% of you income for retirement, does that include the company match if you have one or is it outside of the match?

[@puertoricanv1ncecuh870]

So which step do I start saving up for a home? Or my college education?

[@Paul-GrnHil]

Wealth creation is about discipline. I started with a 15 year mortgage and refinanced occasionally but never let the total duration exceed 20 years. If you have a larger mortgage payment, you will be less likely to have "life-style creep". That way when the mortgage payments end, you have the cashflow to turbo-charge your savings. I always maximized my 401(k) savings and even started saving for my kids college before they hit pre-school. I started with $100 per month per kid and increased it each time I got a raise. If you don't start saving for their college until the are in high school, you'll be lucky if you have 1 year covered.

[@hanswhite]

The Money Guy Show is for financially sound people. Dave Ramsey is for those with large amounts of debt.

[@mrjuvy49]

I see it as Ramsey is going to high school, and TM Guys are teaching like you were in grad school, they both complement each olther.

[@bruce7244]

Dave is for the idiots

[@robby95036]

How do you guys shhow your HSA funds on net worth? I made a separate pie chart slice for them instead of breaking them into tax deferred or tax free.

[@sachaarthurton6451]

I have a question If you have a business you're solo 401K what do you want to have how much should you put in

[@miked412]

I will say, 1 thing to consider regarding the 15% vs 25%, is what happens at "retirement" or "financial independence". - 15% investing rate, means you have the remaining 85% (less taxes) to spend. - 25% investing rate, means you have the remaining 75% (less taxes) to spend. - I am using the assumption that both want the investing % to be based upon gross (not positive the baby steps is this way). Using gross as the baseline (I understand taxes and investment type [deferred vs after] are a thing), the 80% replacement rate is 5% less than what you are used to in the baby steps and is a 5% bump up in the FOO. Essentially, what I am saying is, that it is already easier to live on less with the FOO because the investment % has been higher for decades leaving you with a smaller budget and making it a routine to live on less.

[@jensahawk233]

Im 45 now and just bought my first apartment last year after a seperation. My small apt cost 425k! (I live in an expensive city) Im single now and right on the border age of paying off my mortgage as fast as possible or investing my money. Dont want to have to keep working till im 74 just to pay it off 😢what should I prioritise?

[@floridashawn7317]

I quit watching Dave and I’ve never heard of The Money Guy. I’ll give them a listen.

[@Kroogg]

Both the money guy and Dave Ramsey have good advice. A lot of it depends on where you are at. However, if I had to choose which one to listen to and which plan to follow I would probably go with the one that has helped the most people get out of debt and become financially free. Ramsey's baby steps is a time-tested proven method.

[@kaylab1157]

I wish I would have found you guys before buying my first house in 2019... before the house price explosion. We followed more along the lines of Dave Ramsey and got a much smaller house. Now 4 years later, with a growing family, we want to upside, but the cost to do so is soo out of reach vs if we would have upsized when we were originally looking. The house that would have been $350-400k back then is now running closer to $750-800k

[@Lucky008aau]

I live in one of the hotter areas for housing in the last couple years (Roseville, CA). A lot of newly tele-working bay area techies moved in during the pandemic. My house (4bdr, 2000') went up 50% from mid 2019 to mid 2022, but has since dropped 18-19% in the past 5 months (higher rates, prices calming). Things might not be as bad as you think now, or you're in a weird area that might not be worth it.

[@kaylab1157]

@@Lucky008aau I'm in the North Phoenix area. It looks like prices may be dropping but not as much as they've gone up by

[@megalodon1726]

Another problem with the Ramsey rule for home buying is that by the time you save up the 20% down payment, plus more if necessary to bring the loan size down to the point where the payment fits within the prescribed limit for a 15-year mortgage, the home prices likely would have increased significantly during that time, making you worse off than if you'd gotten a 30-year mortgage with a 5-10% down payment a few years earlier.

[@blairkinsman3477]

Hey guys so in Canada the 6-700k house is average, and that’s down 10% in the last year .. I get your frustration with the price up - 2 points: if you bought your house in 2007 you would be saying opposite, and, my monthly mortgage payment increased by $1000 since January (I’m glad I had no other debt) we can’t get 15 year fixed up here

[@madesquire2796]

In addition to cash back and other rewards, from a legal standpoint, credit cards provide more protections to consumers.

[@gcburkett]

I know people that contribute to their 401K but have carried credit card debt for many years. So I would generally agree that getting the 401K match while paying down debt at the same time is good. If you are making no progress on high interest debt then reducing 401k saving with a commitment of eliminating the high interest debt might be in order.

[@Caliabra]

I am definitely a money guy person over Dave. Here’s my biggest issue - for most people trying to buy your first house and saving requires you not putting 25% in retirement…houses are in the $1 mill range out here and in order to afford it we needed the 20%. I am not suggesting put nothing but a lower target for a few years to amass some more wealth on hand

[@HawksNHabsPC]

I have a pension that I already contribute 10% of my income to. Does the 25% you invest include if you have a pension? Or should I just invest another 15%?

[@Lucky008aau]

Before watching: Dave Ramsey focuses more on developing a stay-out-of-debt frugal mindset, then save for retirement. He teaches you how to start rolling up a snowball. The Money Guys teach you how to push that snowball down the hill (army of dollar bills). They assume you've made the snowball already and focus on optimizing your wealth journey. If you have credit card debt and want to be able to sleep better at night, follow Dave. If you want to save up X million of dollars so that you can do X, Y, and Z, follow The Money Guys.

[@b.c.2836]

I want to sleep well at night AND do X, Y, and Z

[@TheParkingLotGarage]

12:20 - You have a disclaimer that the calculation was based on an initial return of 10% decreasing by .01% each year. But the calculation actually assumes a constant 10% rate of return for the entire investment period. If you actually decrease it by .01% each year, your 1 dollar investment with an employer match only turns into $65.87 at age 65.