The Truth About Dave Ramsey's 7 Baby Steps

[@GabeBult]

What do you think of Dave Ramsey?

[@YourArtJournal]

I think your approach is more practical.

[@cashisking3019]

Dave Ramsey has an amazing story of financial ruin to success. He is a beacon of hope and inspiration to millions to help themselves. Gabe I think your points are valid and appreciate the practical insights that make more sense.

[@erickzoolander6577]

Mixed. I feel like gives great advise but has a outdated approach to things at times

[@justadudeintheworldman.120]

I listen to Dave for his rants, advice, and to me he’s really funny in a practical uncle/dad sort of way. I don’t agree on some of his stuff either but I think it’s a good jumping off point for the majority of people just getting started.

[@lusoroofing5221]

ppl misunderstand his teachings… hes teaches the fundamentals to saving and investing, his teaching dont apply to once you have your fundamentals taken care of..

[@smonty6]

Baby Step graduate here. We love Dave and his “baby steps” It worked VERY well for us. Now that all our debt is gone, we are acquiring wealth far far faster. Our wealth should double about every 7 years now. The freedom and security we feel being completely debt free was more important to us. To each his own.

[@1hunterdale]

Good 1 thang dont give any of your money away Dave is wrong about that

[@emzywillrich7243]

I agree. It worked.

[@purplepeopleeater5355]

I agree! We own our home outright, we are debt free, and we had enough saved that hubby could go back to school for a complete career switch. We just turned 40. I know there is no way we could have done that without following at least the basics of DR. I don’t agree with him on everything but I think it’s a fantastic start!

[@seanmiller292]

Dave is the propoganda wing of fortune 500 companies.

[@bestill389]

What separates Dave from the rest of these financial “gurus” is that he focuses with changes in people’s behavior. Financial problems are not always mathematical problems, in fact most financial problems are not. I’ve followed Dave teaching it’s boring but it’s working.

[@calebreasons]

Yeah we’re doing the Dave Ramsey program and he even says in one of the seminars that it’s not a math problem and we’re not mathematicians, and if we were, we wouldn’t be in the crazy debt that we are in! 😂 don’t try to fix what’s not broken (baby steps) and fix what IS broken (your debt)!

[@catt99mahal8]

Because of Dave’s rants I paid off 150k and bought my own house. Did it in 3 years.

[@LillyAnnHouston]

Dave Ramsey was a good start for us. We tweaked it, especially step 1. We saved $3,000. Then we added step 1a. Save one month worth of income before starting our debt snow ball so we were always one month ahead of our bills. If you know anything about Dave Ramsey he wouldn’t agree with this because it’s not his idea. Anyway debt free including home since 2013. Retired at 45.

[@orphanedhanyou]

The issue is how insanely in debt you are. If you have $2000 of a debt that will start collections hounds or legal action or losing a property etc than NOT saving $3000 and using that $2000 right away is more important

[@sharonfleshman6961]

I love that his plan is orderly so you can discuss each option and follow YOUR plan.

[@financefirewallsreviews]

Dave is way too proud and stubborn. He measures success by how much one has in the bank. I don’t agree with his perspective on credit either.

[@Chrisp969]

Dave has pulled himself back from bankruptcy to become a multi-millionaire and helped millions of people get out of debt and attain wealth. Many like to knock his system, yet they all lack the stats of starting with less than nothing and mass multitudes of people they've helped.

[@jesseellis796]

Baby Step 1 is set at $1000 to make you uncomfortable. It encourages paying off debt faster. People are more likely to pay off debt when they see the small wins. Ramsey says "finances are 80% behavior and 20% head knowledge. Baby Step 3 is to build a 3-6 month emergency fund to remove the fire from under your butt. Baby Steps 4, 5, and 6 are supposed to be done AT THE SAME TIME. Baby Step 4 is simply to start investing (This can be maxed out on Baby Step 7). Dave also says it can, depending on how you want to raise your kids, be okay to skip baby step 5 (I think). For Baby Step 6, Dave teaches to only have a 15yr, fixed rate mortgage when you use your down payment of at least 20% created in Baby Step 3B. This is to avoid unnecessary interest. Gabe portrays Baby Step 7 as if its decades away (while it is for some depending on how much debt you have). For most people it doesn't take that long. I think the main difference between Gabe and Dave is that Gabe is more focused on financial gain, while Dave is focused on financial peace. there's a big difference.

[@beverlyblanco3167]

Excellent summation

[@meastrau4772]

Exactly 💕

[@awomanofvalueandworth5936]

It would be intriguing to see a video on why people go into debt. It is a behavioral issue more than mathematical problem.

[@trinitywright7122]

I cant agree with that. I have no math brains whatsoever and that has been my biggest problem

[@AlexMint]

No, it's a mathematical thing that tends to snowball. People don't have savings, so they wind up having to charge something, the interest rate takes hold, and paying it off winds up taking up cashflow that would otherwise go to groceries.

[@taylorsessions4143]

Think of how many payday loan and title loan businesses there are in your city or nearest city. You get all the endorphins of having just earned a paycheck without having to work for it. This is a mentality that gets a person into hot water quick. Rather than saving for the future, you are busy paying off your past.

[@AlexMint]

@@taylorsessions4143 Nobody gets "endorphins" from a payday loan, anyone who knows about payday/title loans knows they're bad news, and only takes them out of desperation.

[@joseCalderon1976]

ABSOLUTELY. Like Dave says, spending too much money is just the symptom. Your brain and behavior is the real problem. I know very well, since I've done it

[@jwlove66]

Dave focuses on behavioral change with the assumption most people aren't financially astute or highly disciplined. He's also very biased and gets immense kickbacks from his endorsed local providers program. That being said, I think his teachings are a good starting point for most people. I regard it as the "high school" of financial management. It works fantastic for the typical American lifestyle.

[@JoeLopez]

Another great video, thank you. While true, let's consider his target audience. People who have made terrible financial choices and in all likelyhood have terrible spending/saving habits. His advice drives home the idea of not having debt and making better choices. The debt snowball, even Dave says it doesn't make sense mathematically, but let's again consider the target audience. They will not invest the money and should concentrate on paying off their current debt. Credit cards - same idea. Consider the true target audience. Saving 15% in your retirement. Keep in mind, this is only to get started. Later steps has people investing more in their future ;) Paying off your home - People with better discipline can carry the mortgage and invest their money more wisely.

[@acajudi100]

Not everyone.

[@anitas5817]

This is a really important point. I know quite a few people who benefited from the baby steps but to a person, they had all made poor financial decisions to that point and were in a hole. People who make savvy financial decisions don’t need the baby steps in general.

[@d.zyned2thrive584]

No, money savvy people don't need Dave Ramsey. But for those who aren't, paying off all debt and avoiding credit cards is often necessary for them to reach financial success. And they need the dopamine rush of paying off smaller debts first, even though it costs more in the long run. For these people, being ready to retire at 65 is the best they can hope for, and trying to do things the most financially advantageous way would most likely end in ruin. We don't do everything the way he teaches either, but I think there are people who really have to in order to have any level of success. I agree 100% with your strategies, but will say that it would be tough for a family of 7 (in our 40s) to start investing 50-75%. We'd have to live in our camper with 5 kids for years, and that's not happening 😂. We wish we'd started younger like you did, but it is what it is🤷

[@madiantin]

Re: college. Yes, it *can* work to not go to college. Many people have done it. However, the *vast majority* of those who don't go to college earn significantly less than those who do. I've watched over the years, and taken note of those people I know who have attended and those who haven't. In the long run 100% of those in my acquaintance who have attended college have had lives that are more stable, and more financially secure. Those who did not attend college had lives that were much more unstable, earned much less, and overall were more miserable. I used that word "miserable" deliberately - it has been my observation that they had much more stress in their lives and were less happy. Yes, it *can* work not to go to college. But for the vast majority, it's so so so worth it if approached with wisdom and good planning. Re: paying off house early. I can't describe to you the sheer relief of finally having no mortgage. It was one of the highlights of our lives, and brings us joy every month. The knowledge that this home is *ours* is worth every extra penny we used to pay it off early.

[@cheekymonkeygirl3378]

Exactly. I could not agree more. In addition to that, a college degree makes you look more professional and valid than reading some books. Therefore, I value wealthy educated people more than those who earn their wealth via reading books or establishing their businesses. It's nice that he earned wealth via other strategic ideas but most educated people have a more prosperous life than those who do not finish high school.

[@cccycling5835]

College entirely relies on what you study. STEM of course it will lead to better things. Underwater Basket Weaving? Nope. I learned more working for a photography studio than I did in film school. Way more. So it entirely depends.

[@madiantin]

@@cccycling5835 Agreed!

[@StephanieGiese]

Dave Ramsey works well for a lot of people, especially if you have consumer debt, but it didn’t work at all for us. Like AT ALL. We tried for 4 years with his program and got absolutely nowhere because we didn’t really have an overspending spending problem, we had a “raising kids with medical needs in a country that has crazy expensive healthcare” problem. Sure, you can stop buying extra clothes and going to restaurants. You can’t just stop taking sick kids to hospitals. I also truly regret that we followed Dave’s advice and paused our retirement savings for a while. I think his advice is really outdated and just doesn’t translate well unless most of your debt is from credit cards. Finding Minimalism and doing the opposite of what Dave Ramsey advises in a few areas is actually what let us finally get out of non-mortgage debt.

[@PowerfulMoneyHabits]

2020 hurt my dental practice. I got on the Ramsey baby steps and in a year and a half, went from baby step 1 to baby step 7! His advice works! His net worth is $200 million. U can do it ur way or u can do it the proven way!

[@nanimaonovi2528]

I limited my daughter's exposure to media to 1 hr a day (don't raise a consumer) and gave her allowance from year 5-16, increasing from $5.00 a week at 5 to $16.00 at 16. I also paid for half of anything educational and 100% of sports. Interests and activities win over consumption then. It really works.

[@SevenFortyOne]

You make some great points but I think you are underestimating how much emotion factors in to the overall equation. Paying off all debt, including your house, has a profound effect on one's attitude toward work and money. When it comes to investing instead of paying extra on a mortgage, most people aren't disciplined enough to actually do that and end up spending that money on something else either by necessity or desire.

[@clemsonlaptop7224]

Agree. Discipline is key. Investing>paying low interest debt>blowing it on consumables.

[@granitemoss1451]

I think Dave Ramsey is a terrific motivator and starting point for people who don't know where to begin with their personal finance. But the things I strongly disagree with him about- credit cards/credit scores (never carry a balance but collect those rewards, maintain a good score for the benefits besides borrowing money), investing while paying down debt (NEVER turn down a company match, that's like rejecting part of your pay), 15 year mortgages only (not always feasible) and yes, the $1k emergency fund (totally outdated amount, even if it's not meant to be a full one). But as the name implies, personal finance is, well, PERSONAL. So we all have to do what makes sense for us, even if it's not right for someone else!

[@kj7653]

Totally agree with your recommendations to Dave's system. Although some people shouldn't have credit cards until after step #3.

[@DrProgNerd]

The debt snowball is more of psychological strategy than a mathmatical one. The people who seek out his program are generally people who have lost control of their finances. By paying off those cards, they are reinforcing the idea that they are in control of their finances. This confidence is the foundation that the other steps are built on. Great video. I love the 'teaching your kids about finances' part. I've been working with my 19-year-old for several years in this area. He's built his credit rating to 750+ and has a respectable chunk saved for a down-payment on a house.

[@jennie9]

I agree with teaching your kids about finances and setting up some kind of funds to help your kids with their goals whatever they happen to be. I totally agree about not getting a post-secondary education just because it's expected. However, it would be good for them to be able to pay for it in case they want to follow a career path that requires some formal education. And that isn't just for becoming a doctor, accountant, teacher, etc. In Canada and the US, a lot of trades require formal education to enter and progress through the apprenticeship stages. It's much more difficult to get a well-paying, steady job, especially in a unionized environment, than it used to be, and education helps with that. It's not the only path to that kind of job but it's becoming increasingly necessary.

[@betterideas6434]

My Dad never brought me things when I was growing up, not even a Birthday gift. I’m thankful I had food and clothes with a roof over my head along with learning independence.

[@warlockman-ri2jr]

I'm sorry you had such a shitty childhood that sounds terrible

[@betterideas6434]

@@warlockman-ri2jr Not at all. He taught me how to fish and shoot his gun and and a bow and arrow. He gave me much more than he had, back in his day if you had a pair of shoes you were lucky and if they fit even more lucky. He hated wasting money.

[@betterideas6434]

@@warlockman-ri2jr My mother and grandmother spoiled me so it all balanced out. Lol

[@dhinkle88]

couple points: the best debt repayment method is the one you can stick to. also, his target audience is people who cannot treat credit cards like cash, or get the bonuses. etc. for people that cant handle credit cards, not having them is better. a 529 is a versatile tool. its good for trade school, community college, etc. there's no time limit, and you can transfer it to another beneficiary if you want. also if your kid gets a scholarship you can withdraw that amount without penalty. Daves plan assumes you pay off the house early, and invest the money you were paying.

[@cramsa]

You don’t need college to become a pilot… or to make a good income… but you want to become a medical doctor, scientist, engineer etc you need university education. Also, paying off my house and becoming 100% debt free before I was 40 was the BEST THING I EVER DID… my savings rate went from 25% to 75% when I payed off my credit cards and mortgage and now the money that was budgeted to those former debts are now for investments. I HAVE MUCH MUCH LESS STRESS NOW when investing. An investor with debt is more stressed than one without debt… same with leverage or borrowing money to invest… MUCH MORE STRESSFUL!

[@natashatheresa]

As someone that does not use their college degree, I agree with you. I will help my kids build an investment account but not a dedicated one specifically for college. Thanks for this great advice!

[@amylukenash4048]

I love that you read “save the cat”. My husband (Jamie nash) wrote the “save the cat writes for tv” book. I do listen to Dave Ramsey alot but I pretty much was able to save and become a minimalist without someone else’s help. We have worked for ourselves since 2001. And having to pay our own estimated taxes and other things self employed people have to learn actually helped us save more money. My son has severe autism and he taught me how to be a minimalist. He hates clutter and stuff. So he was the first in our family to be a minimalist. Also having a child with special needs is expensive so I only buy what I truly need and I save the rest of my money. He’s going to need all my money to live on in the future. But yes Dave is very entertaining and knowledgeable to most. I enjoy his caring attitude. He helps those in need. And he tells others to help when they can too.

[@MartinCliffe]

So much of Dave Ramsey's advice is geared to the US economy that I've not paid it too much attention. We have no debt, paid off our UK house in 2020 (18 years early), and have no children, so I'm pretty happy with where we are financially. We will be able to comfortably retire in our mid-50s, maybe sooner, and put even more time and energy into supporting the less fortunate.

[@Trishpage312]

I like him. He gets me motivated. You missed baby step 3 by the way. 3 to 6 month emergency fund. I’m on that one now. Investing is a tricky one for me. I keep checking it. Being self employed I need to step up the hustle. This video is really good! Thanks for the video! I want to see the baby!!

[@trinitywright7122]

He doesn't motivate me because there's a lot of things he says that I really don't care for

[@debhalld9794]

Dave's method worked amazingly well for me! Keep on keepin' on 👍 You'll be doing the debt free scream while the naysayers are still in debt... and criticizing those if us who made it.

[@SIFON5CS]

@@debhalld9794I love how ppl get mad at sb telling you to pay off what you owe and having a financial cushion while doing so😭

[@annagilda1]

Im 34, have followed Daves advice pretty much to the letter. I got out of 30k of consumer debt, paid off my house and in the last 6 months, my wealth accumulation has started to get rolling in a way i never imagined possible. I can not tell you how much peace i have about my financial future. Daves advice is borring AF, but it worked for me and i will forever be grateful.

[@grumpybulldog19]

Math is important but it isn't everything, peace of mind cost money and there is nothing wrong with that. I don't agree a hundred percent with Ramsey but I don't believe he's completely wrong with his ideas.

[@Exciteddelirium1]

Avalanche Vs snowball Maths does not come into the equation... Debt is an emotional issue and all of the research he did... The snow ball works

[@deniselittle5558]

You make some good points. I believe in giving as well, but however much you can comfortably give at any stage of your life. It could end up being less than a percent or more than 10%. This blanket 10% is a construct by the church and beggars can't be choosers. Dave Ramsey has helped a lot of people, but he is stuck in one way and there is no room for variation. His method is never going to work for everybody, but with him it is his way or the highway. I take some parts of what he teaches, some of what you teach and some from a bunch of others and create what works for me. Love your channel.

[@ivanpadilla4479]

I trully believe Ramsey’s advice is the evolution form talking to a multitude of people directly. If you’re not clear on what to do, it’s great you have a plan laid out already that’s reliable. I also think that once you have good understanding and discipline do whatever you want. If you mess up incredibly, you can still comeback.

[@marywilliamson2559]

I always value your content and actively follow you. I do also think you made a great point about investing vs paying off one's mortgage. I do have to say that I paid off huge credit card debt quickly with that cute printable form on Ramsey's site for the snowball debt method. It's really about the visual, and watching your debt go down ON PAPER. It worked for me, and at the time I had a stupid low salary. Anyway, that's my take.

[@Ajschroeder7]

Definitely agree that saving for kids collage doesn’t need to be a top priority. I went to collage and don’t currently use my degree, Thankfully I did it without debt. My husband had apprenticeship and makes more than many people with degrees, without crazy overtime.

[@benross9700]

As always, a really well produced video! Completely agree that an emergency fund and debt avalanche are both bang on. However, a lot of your analysis of debt (for example, the mortgage calculation) completely neglects the debt erosion effect of inflation. As time goes on, prices (and hopefully salaries) increase, causing the value of the debt in terms of purchasing power to reduce. In addition, a lot of the return calculations for investing in the stock market don't even mention risk. If you have a low tolerance for risk, then guaranteeing a 4.5% return by paying down your mortgage might be worthwhile. Finally there are tax implications that need to be considered. I appreciate that each of these points could be a full video in and of itself, but definitely worth pointing out as a footnote. As a side note, I live and work in the UK, so I appreciate the systems around student loans, taxation, and culture around owning property is quite different in the USA. Really enjoy your videos, keep it up!

[@leshaatbu555]

I do like one point that Daves makes. Would you take out 3-6% loan to invest for a potential 10%? Given short term risk, most people would say no, so I would say go ahead and also pay off that 3-6% debt. I'd rather have no debt and just invest my $, than a potential of having debt and being in the negative on my invesments because the stock market took a down turn. Also, for some people there is a negative psychological effect of owing $.

[@jokster4409]

I hit the like button and earned my say, with that in mind I will say the worse thing you can do is pay for your kids College and set up a savings for them by 18. Let them fall and earn their own way in life. Why carry them? You are stealing their ability to learn away.

[@VickyHafler]

I wanted my kids to succeed not fall. Teach them and they won’t “fall.” Homeschooled for 15 years… I have three that own their own business and one that’s lives on a homestead. Only one went to college and paid their own way, was allowed to live home expense free until finished. Gabe great advise.

[@jokster4409]

@@VickyHafler That's an interesting thought. All parents should want their kids to do better than themselves. Just as when they learn to walk, you let them fall to learn to stand. How silly to catch them constantly. Failure is part of life and the sooner the better.

[@moveit845]

Oh brother here we go again with the homeschooling stuff. Homeschooling is a tool and doesn’t guarantee the best results. You can bring a horse to water but can’t make hi m drink.

[@jenleach369]

I think that not having that financial stress and understanding the value of the dollar and how your parents saved for you is important. Not being able to provide them an option for school could set them up with unnessary financial stress. Educate your kids young about saving, and they can still appreciate a "hand out".

[@jokster4409]

@@jenleach369 I agree that you want them to learn the value of a dollar. Mine served in the military and earned every penny. The choice to continue his education was broad. I don't think he would of appreciated it as much if this was a hand out.

[@WillowGee57]

As someone who's all about the numbers, I 100% agree with you, Gabe. I will occasionally listen to Dave Ramsey, but after awhile he gets kind of annoying. I think his program works great for people that are tremendous at following directions but lack imagination and the ability to think outside the box. There's always another way to accomplish something. It just takes a ton of willpower & courage to follow through with your own ideas. Dave lays out a plan, and people follow it. It works, but it can be a slower process. And I see through so much of their fake empathy. That aspect of the show really kills it for me.

[@jasperdemuynck]

Being an eternal student is definitely key to long-term success. Interesting video Gabe!

[@GabeBult]

💯

[@lucbriedecooper]

But not an eternal university student! That debt 😂

[@readJames48]

I would LOVE to hear Gabe call into the show and talk to Dave!!!....(just DON'T ask him "how ya doing Dave???.lol) I LOVE BEING 100% DEBT FREE!!! Romans 13:8 The rich ruleth over the poor, and the borrower is servant to the lender.

[@JustinCase780]

Babystep #4. We all know that compounding wins big. If anything the % savings into 401Ks, etc. should be MUCH higher than 15% for young folks. It automatically puts them into a budget plan to spend less on other stuff.

[@prestonrodeniser893]

This has been a gripe of mine with the Dave Ramsey following. What he teaches is really good for people lacking in discipline and needing to get on track. The one benefit to weigh when considering fully paying off school debt or house is that if you hit a time where money is hardly coming in, or have disability etc it can be a great safety net to have done. I'll have to think a bit on the idea of investing in properties sooner rather than getting fully debt free! The people I've helped budget I always go with the highest interest debts first as well!

[@GabeBult]

That's true they're definitely is something to be said for that

[@amadoudicko552]

Dave stuffs work, it changed my life. Personal finance is more about psychology than math.

[@sonokoful]

Baby steppers here and I can fully testified that his program WORK! I know some expert will say there are better ways but let’s be real most people don’t know any about finances so with that Dave keep his program as simple and as risk free as possible so most average people can actually follow and there are no temptation to fall back on credit card.

[@happyladyhere422]

The rich live like they are poor and the poor live like they are rich, the difference in the two lifestyles.

[@ilovegreen0150]

I thank Dave & Rachel for teaching me about Sinking Funds, Emergency Fund❤️❤️

[@bridgetcatherine]

Also congrats on the baby on the way!

[@erickzoolander6577]

I was just watching his videos. I'm down to just paying off my student loan. Trying to figure out my next step. I'm a LVN /LPN and want to get into wound care cert next. Last time I checked it's 3, 000 for the class + 500 test and approx 2000 for what I need to take time off and other expenses. I'm going to start studying and learn as much as I can before taking the course so I won't struggle. I'll be done with my student loan June / July

[@sdollygirl]

Yeah!!! Many employers will pay for (u may need to ask) or will reimburse. Check it out and good luck!!

[@glennmorris6071]

This video is a good example of people commenting on Dave Ramsey stuff without watching a lot of Ramsey content, IE: The Debt Snowball. Gabe makes the argument that simple math would indicate that you should pay off the higher interest debt first (Avalanche Method) Here is why this doesn't usually work. Dave would argue that if you were using math as your guideline for financial decisions, then you would never borrow money in the first place, so there must be some other force at work having influence over your decision making ability. This is called human nature. Because human nature is a strong force, you must work with it in order to get to where you want o be. IE: paying off your dents smallest to largest in order to benefit from the joy of eliminating your debts. Lastly, people like this always just say to just control your credit card spending and you can easily have a credit card. The stats are very clear on this, the overwhelming majority of Americans and Canadians cannot do this. Ramseys advice is not best for people who cannot control their spending, its best for virtually every north American.

[@sobeliever1638]

I agree with you however if you can do the highest interest first than does make sense to do it. We paid off 165k following his debt snowball and by downsizing our house so his methods worked for us!

[@rory644]

"Best for virtually every north American" projecting much mate such a dumb statement.

[@Mysticbladegod]

Agreed. Dave Ramsey is right, minus only having $1k in an emergency fund.

[@clemsonlaptop7224]

I can’t speak for other ppl, but I get no joy out of paying off a single debt in full. I get joy in watching the total amount of debt I have shrink. The type matters. Net worth matters. Also, I agree w your point abt credit cards that many ppl have no will power. Thankfully financial literacy has taught me how to have some: I have 4 credit cards and have paid $0 in interest.

[@highlyfavoredoneblessed8561]

Well another aspect about the snowball method is you are freeing up cash faster to build your emergency fund faster.

[@nicolehill1115]

Baby step 6: I paid off my house before I was saved, but now understand the biblical aspects of not having debt.

[@Kris-jh2ud]

Though I didn’t agree on every point mainly because I’m scared of the stock market, I agreed with a lot of what you said. I do agree with what you said about Dave Ramsey - too extreme and blanket statements that don’t apply to everyone but I do believe you can learn from him and apply his advice in moderation. Then at the end, you said the most important thing when you said, “I tithe 10 percent.” So do I and God has met all my needs since I began tithing over 30 years ago. Tithe and trust God - He will never let you down. Love you and your channel, Gabe, and congratulations to you and your wife on the little precious baby you’re expecting 😊

[@RedNicole22]

I agree on all the points. I went through the class and think that it is helpful for people with no direction. But if you are responsible, his ways are not beneficial to those struggling. I should have bought a house years ago even if I didn’t have a huge down payment, in fact most people should, unless you want to live in the slums. Housing is most of our income, so buying is the way to go no matter what. Also I think $5k in savings is a must. People who have kids can get there in one year with the income tax return, that’s what I did. I agree on buying cash cars. I also agree on only having a credit card if paid off monthly, and agree with you on cash back bonuses can work to our advantage, plus you need good credit to get good loans and such. I also agree on paying off the highest interest, that just makes sense. I understand why he says what he does, but like you said mathematically you get more accomplished by paying off high interest first. Dave Ramsey is 50/50 in my book, not all advise is good and not all bad, just not really that helpful to most of us. I would be in a better place had I bought 12 years ago, rather than wait like he said. I personally believe most people should buy asap. Buying builds equity and financial freedom sooner and just makes sense.

[@13brimarshall]

Thank you! Yes! I get so much hate for disagreeing with Dave… Man!!! So glad someone else sees this! Great video.

[@AnaMargaritaPonce-kl4kg]

You already said it. It is mental. That's what being addressed majorly and establishing the habit. The financial breakthrough is just the result or the reward.

[@jessicamccarlson]

Thank you for saying what you did about college! I did go to college and kinda wish I wouldn't have (at least not grad school; as that is when I accrued debt). I'm one of the lucky ones who found a job in my field right away and am doing what I love, but I honestly learned more from experience at the "intern" level than I did IN grad school. I was totally fed the lies that you have to go to college to be successful and now I'm seeing that is just not at ALL true. As a librarian, it is SO obvious now that learning isn't AT ALL magically linked to the world of professors and textbooks and classrooms. I think if I am ever so fortunate to be a parent some day, I will really make them think twice before deciding to go to college: is it ACTUALLY the best way to learn that skill/trade/etc or is there a better alternative? I like the simplicity you give it: focus on housing or college/business. Thinking about, though, how much things have changed between my generation to my parents to my grandparents... I do wonder how what I have learned now will or will not be relevant for the next generation? Thanks for the food for thought.

[@cindyperez2837]

Tithing.........is a blessing!! and the secret to be happy with money

[@rasta487]

Enjoy your content. If you don't mind I will add that if job loss occurs, the peace of mind of homeownership is matchless for some. Thanks again.

[@scanman265]

I agree completely with everything you say about the Dave Ramsey method. And he’s mean! Lol

[@wi4305]

Trade school may be better. I went to an electrician 10 months course. Now I'm working as an electrician. God has blessed me.

[@debbic2055]

Almost totally agree with you. I think Ramsey is great for people who don’t have a clue and have gotten themselves in a lot of debt. Kids are interesting. I have one that totally “got” all the financial stuff we taught them and one that didn’t. As he’s gotten older he’s learned a lot. Kids are individuals. 😊

[@tamingthemess1501]

I think they are individuals to a point. All of mine are frugal, just principle.

[@cathylombard964]

My son sold his used car for $5,000 more than he paid for it.

[@christinejervis5491]

congrats on the baby!!

[@42jessicat]

Been watching a lot of your videos lately and love them, but I have not subscribed yet. I know it's silly and petty, but the typos in the graphics on so many of them make me twitch. Gabe, I know you want that Tesla. Your baby and your wife want you to have that Tesla. Your viewers want you to have that Tesla. Check your spelling before uploading, and you'll look more credible. (And I will just get over my hangup about it regardless.) Keep on keeping on, man. You're doing the world a great service.

[@GabeBult]

Thanks lol I’m working on it for me and my editor

[@chrisfairley2930]

Lol. The word “stricktly” made me cringe. You can tell I’m over 60.

[@SADilNikad]

It's funny how it's work. The idea of budgeting is getting into your head over time, so you stop spending as much as you have. We started doing this baby steps few months ago. First month budget wasn't enough for us. We needed more money, but today we have more money and budget is smaller then before 🤑🤑🤑 It is not frustrating anymore. Keep doing this ppl. It works!

[@danettemckinnon7251]

However, if it was a numbers game (in regards to paying off debt) then folks would not be in debt. So paying off the small ones first gives people hope that they ‘can’ do it.

[@melissataylor8910]

Amen!! Love this video! Some people need credit from time to time and need a credit score. Agree with everything you said 😊

[@StacySanseverino]

I love your content! Very clearly articulated!

[@konsmberg]

What people don't take into account when they are signing up for multiple cards is that eventually those cards will LOWER your credit limit for not using them much. So if you open 3 cards with limits 20k, 10k and 30k, you start with total limit of 60k but even if you try charging (and then paying off) 100-500 dollars on each card every month, eventually your limits will go down to 10k, 5k and 15k, thus affecting your total credit limit and consequently your credit score. Just something to keep in mind.

[@mindsetmatters5650]

The emergency fund is to cover your but Ramsey has said like insurance.

[@nbdysfool3]

Truth is they’re great and work! Worked for me and it will work for anyone that applies it!

[@berlinefernandez]

Love this. It's like a practical way and a new generational term /modern for Dave Ramsey 7 baby step. Hands up 👍👍

[@JoanneWhitlock]

You pressed some buttons so I signed up for the 50 tips, no good complaining if I can learn something!

[@suzanneadamson1306]

Congrats on the bambino, Gabe!

[@kimvannatter5214]

Lots of good info! Dave Ramsey is a great beginner guide though. Wish more people had investing education.

[@youcanknowanything8489]

excellent video

[@geawillemse3513]

I agree with virtually all of your approach except paying off your mortgage early. I think if possible aim to pay off your mortgage in 5 years. We have done this while having six children at home. Pay it off as soon as you can and the Maths does add in your favour rather than investing.

[@VitalBigras]

You are good, I appreciate your videos 👌🏼no need to question others or diminish their views 😅 keep up the good work man❤

[@KMF3]

Yeah I agree with the whole college one. I would never save for my children's college. Number one because I think that they should have to do like I did which is pay for my own college I didn't have anybody helping me and number two I agree with you I think that college is way overrated nowadays. There are going to be some careers that you are definitely going to need to go to college. But for the most part I don't think that most people need to go to college nowadays especially with the cost associated with that it's absolutely ridiculous

[@taniagarrison6216]

I agree with increasing the amount of an emergency fund

[@AlexMint]

I actually take a hybrid to the snowball/avalanche. A lot of my smaller debts are higher interest, but freeing up cashflow is king. At a certain point, a higher interest rate charges you less per month in interest than a lower interest rate on a larger sum, but right now I have yet to refinance my student loans.

[@rashichoudhary2006]

Woah I'm early! Interesting topic today! Really excited.

[@GabeBult]

Dang that was fast

[@rashichoudhary2006]

@@GabeBult Well, this just shows how much time I'm wasting being on my phone all the time. I'm trying to reduce that cause of your videos but I'm struggling a little. Too used to just taking it out all the time. Anyway, I really love your videos. Very sound advice. I'm 16 but I am trying to save from now itself and I asked my Mom to invest a little bit I'd saved up in stocks cause I don't know a lot but she does and it's nearly doubled now. Thanks! Also, I tried to declutter my closet a bit too.

[@bedanava]

Dave Ramsey is popular because his stuff works. Its much more than just mathematics. His plan is much more about seeing momentum and that way you stick to the plan. Its like weight loss when you see fast weightloss you are more likely to stick to your diet.Reading the comments I see I am not alone on believing that you maybe a bit wrong on this one.

[@heidilocke1566]

Perhaps you dont realise just how much you have learnt, Gabe. You have studied from the best, taken the gold from each, and enriched not only your life, but those around you. Someone might 'sound' righteous , like they have all the answers, but that's just ego and fluff and bluff. I appreciate your work.

[@veraoliveira5059]

Great content! You are one of the best advisors on financial options i falow, and most surprising for being so young. Thank you so-so much for what you are doing for all of us. Congrats, Gabe. Vera, Lisbon, Portugal, UE

[@rebeccareyna4137]

I love you and I also love Dave. This perspective and video is greatly appreciated 😄

[@ephesianslicenseplate7421]

The context of “Dave” is a generation of people who believed it was wrong to not pay your bills and debtors prisoner is part of our history, so consider where he is coming from. Very serious stuff years ago.

[@wendyking8805]

This was a great video. Very useful information that most people don't realize to look at. I completely agree about the college fund for children. I think it is best also to invest in their future and educate them as much as possible about finances.

[@FloridaManConstruction]

Yes! Really well done update and modification of his concepts. Appreciate ya! 👍🏼🌴🐈🐈🐈🌴🏴‍☠️

[@hisinheritance4048]

More changes to your video. Nice 👍 Keep changing them and I hope I can still find them as a reference point.

[@brandondelgado7731]

I like FIRE. Realistically speaking, only a small percentage of people can do it. Imagine if all working age people pursue this. How long before services get disrupted? Plumbers, construction workers, lawyers (may be we don’t really need them but we do), dentists.

[@lucbriedecooper]

Awesome video! I learned :)

[@GilliMarieMoody]

Wow, Gabe. Some of us really enjoy/ed university. In addition, there are All kinds of reasons to attend (both secondary and) post-secondary institutes. We sincerely hope that your child will be given the opportunity👍🏽. Otherwise, we will check out your “house hacking”. Hmmm.

[@kj7653]

I agree. Most of the benefits of attending university are not financial. They are social. I noticed as a young adult that the kids 'who went away to college' seemed happier. The ones who 'stayed in town' never seemed to outgrow the high school mentality. 30 years later, you can really see the difference. You learn a different way of thinking and problem solving by going to college. Now as a parent, watching my own children, the same is true by a factor of 10! My children who are at university are much happier and their social network is strong. They are growing with new experiences, some are painful, but their world is only focused on school, life is better for them. The children who stayed home and did trade school, have had much messier lives and relationships, even with higher income careers.

[@DaveGme]

It’s not meant to be perfect. It’s designed to award correct behavior. A perfect plan that isn’t followed is just a dream.

[@haynbong]

It works I’m on step 6 well almost done with 6

[@insertrandomnamehere764]

I have basically a zero credit score. House was a foreclosure that I bought with cash. Last 2 cars were bought with cash. And I haven't had a credit card in over a decade. And at 38 years old the last debt I had was paid off when I was 27. I haven't needed credit. However my plan to get credit to be able to get a second property to get some more passive income is to next year buy a car that I could pay off in cash. Take the maximum loan that I can get on the car (looking at around 15k) and pay the minimum payment for the first month so it establishes a 15k loan. The second month pay off about 14.5k. so ruffly $500 left to pay off over the life of the loan. I'd be looking at paying less than $20 a month and I establish credit for a 15k loan.

[@neppahtitel]

amazing video, Gabe. thank you

[@GabeBult]

Glad you enjoyed it!

[@danicegewiss862]

I use a different type of emergency fund. I use Yotta. I categorize our savings. That way we have cash for vacation, clothes, medical care not covered by insurance, etc. Every $25 I deposit, I get a ticket to win more money. I haven't won any more than a few dollars, but my interest rate (with the wins) has been over 4%. I'm a minimalist and donate my stuff to the poor as we find them. I remember buying a homeless guy a nice pair of shoes. He had none. We didn't have any in his size, but wanted to do the right thing.

[@sprint7412]

So, recently Yotta has been in the news because a lot of their customers can't withdraw their money. I hope you were able to switch banks before that happened or at least have savings in other banks as well.

[@thethriftyfawn]

This was such a delight to watch and such valid points! I agree, everyone is different and they need to make the best decisions for themselves! Kind of off topic, but not, a small but impactful money saving hack I use: when I need to purchase something, instead of outright purchasing it, I'll mention it to friends and family first! "I need an outdoor broom to sweep the patio, driveway, and front steps..." and if any of them happen to have that item it's not it use or they were going to get rid of it anyway, they gladly pass it along to me! I do the same if they mention something they're in search of, and give back happily as well! We all love communicating these things so casually and lending a hand to save money on things that already exist in this world! 😊

[@Shahlarna]

Hi Thanks for your tips. Please send any free info including the ebook how to increase saving rate . Thanks again

[@nleposk1]

If people were doing math they wouldn't be in the mess in the first place 🙄

[@financefirewallsreviews]

That’s true. Doesn’t mean they can’t learn the math.

[@nleposk1]

@@financefirewallsreviews they can but the people Dave is targeting likely need his plan for behavior modification