How Do You Compare Financially to The Average American?

[@bluesmoke218]

Paid off my house and was completely out of debt 2 years ago at the age of 35. It’s such a great feeling when you make that last payment.

[@quito215]

Were you 5 year when you bought your house?

[@bluesmoke218]

@ I had a 30 year that I kept making principle payments on

[@pamelaesslemont9822]

Paid off my credit card today 🎉

[@floydestelle6242]

Congrats

[@coreyf1204]

Nice work!

[@Jaboomf]

Way to go!

[@Aisha_babii]

Me tooooo!!!! 🎉 yay us

[@Eisenstroup]

Now can you cut it up is the real question

[@carleywainwright1534]

I just paid off my car in July after getting a large year end bonus. All my coworkers spent their bonus on fun stuff and looked at me crazy. Jokes on them, paying off my car gave me a $1000 raise each month!!! My payment was $462 and I was making extra payments each month to pay it off. I initially took out an 8 year term (never again) but paid it off in 3 years. What a WEIGHT off my shoulders!

[@gary9080]

Congrats 👍 Keep it for at least 20 years. Once you get to where you are earning interest instead of paying it you’ll never go back.

[@jamesday7344]

That is truly awesome

[@simoncameron4355]

So happy for you, I have a paid off car for the last 14 years... and it is the best feeling ever. I own 4 houses and 3 of them are paid off (With only 90K on my house at 3%) Keep it up and you will be a millionare before you know it.

[@noonan395]

Take that amount you paid off your car and buy a share of VOO OR VTI AND YOU WILL END UP RICH 🤑!

[@ozzymartinez3820]

preach brother! owe 18k on a tacoma and thats gona be gone next year!

[@PatSax]

My wife and I are are 43 and 42 and have just become completely debt free. It feels amazing. We are still driving a couple beaters so the next goal is to upgrade our vehicles with cash. I started listening to Dave when I was 25. He gave me a completely different mindset on money. Thanks.

[@Seraphina_Atley]

I am so proud of you! I am paying off the rest of my debt next payday. I can't wait to join the debt free club.

[@katiejon17]

I’m 45 and have only listens to him for a decade. But my husband and I paid off $113k in student loans and credit cards (not including a previous mortgage) in 6.5 years, on his salary that incrementally increased from $42k/year gross to $52k. We mad the last payment in November of 2021, then bought our current home with a 15 year mortgage. We’ve just created $60k/year gross and only have about 3 years left until we pay it off early. My question to you is (and congratulations FIRST!): have you noticed Dave Ramsey getting a lot softer on his stances? I 100% have, and it’s been a real hit. I need the straight talk and tough love😭

[@cheesecurd100s]

How much do you have saved for retirement?

[@gillm12]

Car payment- none $1000 honda cvic Credit card debt-none Student loans-none Mortgage-94k, $840mo 401k- 15% Investment-15k, 1800mo contribution Emergency fund-funded.

[@spcysos]

Millionaire before you know it! Good job! Maybe 10-15 years tops?

[@gillm12]

@@spcysos the 401k is already on its way. Feel like I got too late of a start in my mid 30's. Feel behind.

[@spcysos]

@@gillm12 you are doing great! Don’t forget that!

[@Aisha_babii]

Look at you! Good stuff!

[@Dee0426]

Great job friend! I’m PROUD OF YOU

[@user-bm6wu9zw9m]

I own an average house, drive an old car, but I’m debt free.

[@deirdrawilson3269]

Good on you!

[@fattrolls8094]

Sounds like a dream!

[@flounder135]

Me too, be smart! good for you! I think we are the 1%er's

[@Seraphina_Atley]

Then you are my role model. That is what I want in life!

[@katz20200]

Same here. Modest house. Old car. Debt free. Living within my means.

[@Aisha_babii]

Paid off my credit card today! 12k gone! 🎉

[@richardwilson9560]

Congratulations

[@Aisha_babii]

@@richardwilson9560 thank you

[@Aisha_babii]

@@richardwilson9560 thank you 🙏🏽

[@jdrankwalter]

Great work!

[@Aisha_babii]

@@jdrankwalter thank you 🙏🏽

[@NewGuy2024]

Being raised poor, I always thought we were a solid two income middle class. I was actually shocked last year when we added everything up and realized we were upper class. Top 5% in terms of net worth according to a few websites. The snowball really grows fast once it gets going.

[@mrjuvy49]

Poor no more, enjoy your success

[@maya.the.earthling]

Nice brother, good work!! 🎉

[@mrjuvy49]

Yes, keeping motivated and keeping score

[@katiejon17]

I’m convinced how we spend money is a significantly bigger factor than how much we earn, in general (you can’t really count 45 year olds working 16 hours a week at Walmart and then claiming “poverty”, when it’s a choice). Not including the mortgage we had, between mid 2015 - late 2021 we paid off $113k in student loans and some credit cards. Our household income climbed incrementally over those 6 years from a yearly gross of $42k to $52k. Then we bought our new home (modest), took out a 15 year mortgage, and are set to pay it off within 5 or 6 years of purchase, on an income that just created $60k/yr gross. We just stopped being hyper-consumers and we honestly feel like we have a whole lot of extra money. We have neighbors that make around $120k/year just for the husband’s job (and the wife works too) - most are decent enough, but a few have made comments about how “it must be NICE to GET to be a SAHM”. We just don’t spend money like they do.

[@mrjuvy49]

LOve it sounds kinda a like us.

[@theresaherman]

Old guy here. I learned a lot from my father-in-law. His rule was “never carry a balance on a credit card, it only enriches the CC people. Only charge what you can pay off every month.” Also his advice was to pay cash for that 1st car, so if you needed to upgrade you always have equity in that vehicle. We took it one step further. We always paid cash for our 2nd hand cars, usually 4 to 8 years old with 50-80k miles. He also advocated to pay extra on your principal on the mortgage. That would save much $$$ in interest, builds equity faster in your home, and of course accelerates the plan to pay off your house earlier. He was very adamant about owning your home DEBT free, especially before retiring. Thanks Vern, RIP buddy.

[@antilogism]

I had a high-school teacher that drilled that into us.

[@ShanQueefus]

Its simple. Don't pay interest and pay the least amount of taxes possible.

[@mmartin7563]

Average vs. median. Huge difference

[@Californiagirl96]

Exactly!! Mean would be accurate, NOT average.

[@bobfeller604]

I don't think she knows the difference between mean, median, and mode.

[@bradhankins-x5j]

The avg. American is having a tough time, I know I am not alone. There are others in same position as me. By certain statistics: 22% of americans have no retirement savings. 64% are worried that they will not have money in latter years while 47% of adults who are not yet retired think they have to work part-time in retirement. How can I best grow the 100k I have saved seperately outside retirement access which of course had depleted over the years?

[@brianmurphysn]

Think about actions you’re taking that might be harming you such as carrying over credit card debt each month.

[@jburch1544]

Heard same statement in 1982, except no one had 100k to invest

[@kingcastro-s1p]

get an expert advsor quick! they would help create a budget including income and expenses

[@kingcastro-s1p]

Plan with a pro advsor for a successful retirement.i work with an advsor and generated over 1 5 0 %

[@kingcastro-s1p]

In 11 mnths with guidance.

[@geckster109]

49 years old 300k house paid off 2017 wrangler, 2024 CRV both paid off no credit card debt or any debt of any type 148k in cash in money market account (high yield savings) 412k in retirement accounts This balance sheet looked VERY, VERY different in 2020! Thats when I got sick of all the loans and the mortgage I had open. I did the snowball deal and just began tackling each loan until everything including the mortgage was paid off. That opened the flood gates to saving a nice pile of cash! You guys can do it too, just takes sacrifice. You should never buy another cup of coffee again until you are completely debt free. Eat all your meals in, brew your own coffee, limit vacations (I didnt take one for over 3 years). If you put in the work and sacrifice, it CAN be done!

[@katiejon17]

Wow - this is amazing! You must make a decent income? It can be done on a modest income too. For us: ~6.5 years to pay off $113k debt (not including mortgage) on a gross yearly that went from $42k-$52k. Made our last payment in late 2021, then bought our current home with a modest 15 year mortgage, and have been over-paying it to hopefully have it paid off within 5-6 years of purchase. My husband’s salary just created $60k gross. His job comes with retirement, and we are hoping to now max-out my IRA. I’ve heard that once your investments reach $100k, the compounding interest from there on is wild! Please tell me that’s true!

[@AKcam7]

Gotta start investing those money market funds in mutual or index funds! Thats a lot of money to have in savings. Great job by the way!!!

[@joycewright5386]

I’m retired and debt free but starting to get nervous. Medicare supplement going up, electricity almost doubling, groceries becoming unaffordable,homeowners insurance rising. My budget used to work but there is not much wiggle room left.

[@recabitejehonadab2654]

Bidenomics.

[@joycewright5386]

@@recabitejehonadab2654 Trump 2024!

[@justinthomas4598]

Bend over for biden baby! Don't ya love it

[@jerrypedrick6206]

Trump2024!

[@Jawrathful]

Yes I pay off my CC every month. Just because I use my CC doesn't mean I'm not budgeting. I am! I'm not using my CC to get rich, I'm using it for the discount! I'll always use it and never pay interest. I earn it!! Debt free here. It feels great!

[@AlEx-hk1pf]

We drove 2004 Civic and saved to buy 2025 Civic sport at the end of July 2024. It feels so refreshing to drive a brand new car without monthly payments. The 2004 Civic is still running, so our high schooler is using it. The 04 Civic was bought 2010 cash for about 5.5k. Don't let anyone tell you that it's impossible to buy a brand new car cash in America (lesson we gave our children). Yes, it took us years (500 a month for 5 years), but we did it. You can do it, too. Drive a reliable used car and save for as long as it'll take.

[@mrs.bdaycare5530]

This is crazy. I’m only $3,800 in debt. I hope to pay off by Jan 2025

[@matthewhudock8378]

You can do it! Keep it up.

[@aznsumthing]

Keep at it! A huge milestone is within sight

[@ramenandgyoza702]

Keep at it! 👊

[@skaterzrule4]

Literally same! Check back with you then!!!

[@watcher9997]

Hope has nothing to do with it. Make a plan and stick to it. You've got this!

[@austinbar266]

It’s always advisable to Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.

[@joshbarney114]

I think the safest strategy is to diversify investments. Like spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.

[@rogerwheelers4322]

A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K.

[@FabioOdelega876]

I will like to ask, How did you achieve it? I been trying to stick with index funds. I feel this new interest rates hikes could crash this economy. I'm looking out for a better investing strategy, I have a lump sum that inflation is steady eating up.

[@rogerwheelers4322]

Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky’’ for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.

[@FabioOdelega876]

Excellent share, just inputted Marisa Michelle Litwinsky on the internet, spotted her consulting page ranked top and was able to schedule a call session. I’ve seen commentaries about advisors but not one looks this phenomenal.

[@jeff_lail]

People should really be investing as much as they can in their 20s and 30s.

[@harjimbaugh4234]

hogwash, people need to go on vacations on credit

[@0_Katt_0]

@@harjimbaugh4234 thats moronic

[@MariaGarcia-gj5ie]

My son’s car was totaled because of an engine fire. He is currently training at the police academy in Knoxville. Isn’t making much and he is struggling to get there by renting a car and paying an Uber. No savings to buy another vehicle and he has 3 months left of training. I have no savings to help him with so we are praying for a miracle to get him through this. Prayers please 🙏

[@joycewright5386]

Can he ride share with anyone?

[@RepuBlicOfChaD]

Once he is off probation he can work extra jobs and make 6 figures a year. He'll work a lot but it'll be worth it!

[@michellejennings1115]

Feeling humbled but also more informed. Thank you!

[@thullraven1]

I enjoy your videos. Thank you. I'm not the average American. I may never be a millionaire, but I think like one. I never say, "how much down and how much a month". I always say, "how much". I'm debt free and want to stay that way. If I want something and don't have the money to get it, I get it the old fashioned way: I save up for it then get it. I'm a young retiree so my income is minimal, but I don't need to be making a fortune. I have healthcare for life from my government retirement and I used the snowball of debt relief and am totally debt free. I don't even have a mortgage as I sold my big home and used that money to buy a smaller townhome outright so I wouldn't have a mortgage. My daily driver is my hot rod slightly modded 2018 6 Speed Ford Mustang GT with 500 hp that was paid off in 2020. I bought it new because I got a really good deal and planned to pay it off quickly and I did. It's my retirement car and I'll keep it until it drops or I do. Whichever comes first. I went against what you and your dad said and kept ONE credit card for the flying perks when I travel, and that's the only time I use it. I have great mental discipline and HATE debt with a passion. I ALWAYS pay the balance in full when I return from my trips. The other credit cards were discontinued and turned into guitar picks. I may not be up to standard regarding incomes and where I should be, but I'm debt free and am living comfortably, so that's got to count for something. 🙂

[@itshimhim2837]

How can people have $30,000 car loans and pay them off BUT cannot pay a nickel of a $30,000 student loan?…quit wasting OUR money on your worthless degrees ladies and guy

[@Sandman60077]

Only buy used vehicles and put a large down payment. I bought a 3 year old (practically brand new) truck with 27,000 miles on it. I put a large down payment and my monthly payments were only $240 per month. I had the remainder paid off within 6 months. Save the extra money and invest it in mutual funds.

[@stevetimmons3114]

yeah, i think buying a used vehicle that maybe just came off a lease, etc 2-3 years old 30k miles - great decision. I have been fortunate to have worked remotely for probably 1/3 of my IT career - i have a 2004 jeep with only 152k miles still looks and runs great. Only bad thing about it is poor gas mileage - now I am working hybrid but still only put about 8k miles a year on. Wife's car is paid off, hoping we can have that SUV for 5-6 years before needing to do anything, you just never know. I will probably get a small used SUV next year or the year after, put some money down and have a small monthly payment for a bit then try to go another 10 years before buying anything else (hoping to retire before too long so won't drive much hardly at all after that). People waste so much money on cars , it's unreal.

[@Sandman60077]

@@stevetimmons3114 Exactly. At that point it's still practically brand new but it's been broken in, and if there were any issues from the factory they would've shown up already. As long as you keep up with the regular maintenance it will last a long time.

[@penelopeprimrose90]

We have only ever bought used cars for cash. Buy they right one, and it will last a very long time. We bought gently used Toyotas and are still driving them 18 and 16 years later. No car payment in all those years is an amazing thing.

[@steved733]

I'm 58, my wife is 49. I work construction, and my wife stays home and takes care of everything. Cooking, cleaning, bill paying etc. Our house is paid off, it's probably worth $600,000 now. We have about $745,000 saved. All our vehicles are new, 2024's. 2 Ducati's, Silverado, and a Cadillac. Everything is paid for except the Cadillac. We owe about $30,000 on that. No credit card debt, or any other debt. I make about $75,000, to $100,000 a year. Our goal is to get to a million saved then retire. It's been a good overall life. I have way more than I deserve.

[@williecamarador2502]

That should be the situation for every American, but unfortunately it is not. Not saying we should all have the same numbers you have, but anyone approaching retirement age should be debt free. But then again, this is not the case for over 50% of Americans and that is sad. Congratulations on handling your finances so well!

[@ivgondef4408]

There is no home where I live that costs $2006 per month. My home was $1650 per month in 2016…..luckily I paid it off in 2021 because if I bought my home now with no money down it would be over $5200 per month.

[@MAHACoach2025]

Its much easier to drive a used car when you keep it clean. I use a California car duster on the outside and then Windex the windows as soon as they get spots on them. Car always looks great insode and out and I dont feel the need to buy a new one. 2012 Lexus RX 350. Bought cash in 2016 for $14,000. Its still worth about $10,000 now. 200,000 miles and will drive dor another 100,000.

[@scoutandscooter]

Property taxes and insurance are still $3,000/month. That will never end.

[@ArntArnesen]

Selfinsurance? Or you could live a more inexpensive place?

[@ArntArnesen]

You have lived beyond your means, both private and as a nation. I live in Norway, and we have no national debt, the worlds largest wealth fund, owning about 2% of all the public stock in the world. We have moderate taxes, free healthcare, free education for everyone. Exelleny benefits, pensions(no need to save neither to childrens education or retirements). We have 5 weeks paid vacation and 100% paid sickdays, up to a year. You have really made som really bad choices in US.

[@chrisogburn6364]

You live in the wrong place unless you meant "per year"

[@BarbaOlof]

@@ArntArnesenEnvious swede here. 😊 Yes, you’ve managed the cards you were dealt in a smart way, but not every country gets the same cards.

[@ArntArnesen]

@@BarbaOlof You know that your government was offered to trade 50% of Volvo AB with 50% of the norwegian oil. You said no thanks🙃

[@Dohair879]

I’m on step 6. While I don’t feel like I’m on top of the world, I am way beyond average. I will just keep trucking.

[@franciscotoro827]

I found a Ramsey when I was in my mid-20s. I was just starting to take off of in my career and was on the verge of outspending my earnings so I used a lot of his techniques and methodologies that I use even to this day. But the one thing that I did deviate from was a car. It's the one thing I've splurged on for the last 20 years to me its something I use almost every day gives me enjoyment it's worth a little extra I just sacrifice a little somewhere else. Though both my vehicles are paid off now and I cannot justify buying a new one at these current prices so I have not gone completely wild with my vehicles.

[@drunclecookie216]

I'm 47, my wife is 43. We have a household income of $108k a year. No debt, paid off house, and own two cars. Net worth is about $270k including our home and 401k funds. The past couple of years we've been working on doing necessary upgrades to our house since we kind of neglected it the past 10 years. Had to replace 1 furnace, 2 ac units, 2 hot water heaters, get a big tree in our back yard trimmed back off our roof, and a sink hole filled under our garage as well as some minor plumbing issues. We still need a new front door, new gutters, new siding, new fence for the back yard, and probably in the next 5-10 years a new roof. the home repairs are the main thing keeping us from contributing more to our 401k's or investing more.

[@valdivia1234567]

I still drive a 2012 Outback that I bought used in 2014. I haven't had a car payment since 2017.

[@theresakrueger9112]

I bought a 2012 Kia Sportage in 2011. It had 112 miles on it! I paid it off 2years early, and still drive it today. It’s got 245k miles on it! I hope it can make it to 300k cause my snowball is speeding up…

[@jasonrodgers9063]

I've NEVER had a car in my 50+ year driving LIFE that I didn't pay full cash for. Making car payments to impress some stranger next to you at a stoplight is INSANE!

[@nomaderic]

Most ppl can't afford to do that. We have to get a car payment.

[@spcysos]

Nope, plenty of cars for cheap that are reliable. Most people are uninformed though.

[@nomaderic]

@spcysos no there isn't. If you spend less than 5k on a car the odds are strong that you're gonna have problems with that car in like a month. That's why ppl call them cash cars because we know they aren't gonna last a year. Without my car I have nothing so I have to have something reliable. I've driven over 100k miles in less than 2 years in my corolla. You arent doing that with some cash car

[@spcysos]

@@nomaderic okay, great point, YOU drive 100k miles a year, what’s that in normal people miles, huh? Almost 9 years! You are putting the pressure of your situation on everyone else. Point still valid.

[@spcysos]

Point is that no one should need to go into debt for very long if at all if they want it bad enough, it just depends on how hard you want to try. We are being trained that debt is okay, but in reality it hinders us far more than you think. I’m glad you found a vehicle that works great for you, but I don’t think that’s the majority or really should be for a matter of fact - who needs to drive that many miles per year? Many people may need to adjust where they are living, the proximity to their job/get a new job, etc. There are choices we all have to make.

[@floydestelle6242]

I did all of Dave's steps but not in order since i never saw them. So much of it is common sense and living within your means with your eyes and investing for the future. Zero debt, home paid and money saved for a great retirement

[@machickman4041]

I just don’t understand how the 25% of your take home pay is still feasible. This housing market does not reflect what your take home pay is. Salaries are no where near what they should be to afford a decent house. I would love to see a video discussing this.

[@DericAnslum]

...there are literally dozens of videos discussing this...ad nauseum... ...right here on the internet where you already are...

[@rossallen738]

​@@DericAnslumHe wants to hear the opinion of the Dave Ramsey crew.

[@nicholasromero2776]

Depending on where you live, this is correct. In some cities it may make more sense to rent than buy a home.

[@justinthomas4598]

It's not they just keep talking around it. Another 4 years of this and the top 5% will be the ones owing homes. Anyone new coming into the market will be forced to rent unless u buy a box

[@kayciable]

bigger downpayment.

[@josephjustice4553]

The car loan can be tricky. We bought a brand new 4Runner a year ago. $48k out the door. Put $18,500 down. Got a 5.45% interest rate through a credit union. Monthly payment is $735 (less than 10% of monthly take home). Owe roughly $25k still. Could pay it off now but want to have plenty of $ in our emergency fund. Thinking it makes more sense to keep saving into that and pay the car off in one more year. Oh yeah…signed a 4 year loan. 🤷‍♂️

[@motorcyclemichael2182]

We’re at step 7! Debt free with money in the bank 🏦 for the first time in 31 years! Next step is investing in some growth stock mutual funds 😊

[@indigostaraz]

Congratulations! 😅

[@Xtina2525]

Great video! It was nice to be able to compare my personal finance numbers against the averages. In some places I'm doing better and in a couple of others I'm doing below average but now at least I know! Thanks!

[@sofer23490]

We just spent $21500 cash on a new car with 15 miles on it. A part of me really didn't want to go through with the purchase because it would use up our savings. But after dealing with a $8000 used car that racked up an extra $7000 in repairs and more I was ready for a functional car. The car situation is tough, especially having young kids and sometimes driving them to place that are an hour and a half away it just seemed more reasonable to get the best for longevity purposes. The hope is to have this car for 10 years over 3.

[@billclinton-f8n]

Hello, I am due for retirement in two years, I'm a senior citizen but I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $50K per year but nothing to show for it yet.

[@ChrisWoodBritton]

Agreed, the role of advisors an only be overlooked but not denied. I was shocked that I made more money with investing than hard work, not even my CEO income. Earning ''return on investment'' fetched me millions within a space of 5 yrs.(But I still enjoy working)

[@Mitchellee-g2s]

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

[@user-567-ut]

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.

[@Christopher-v8q]

Paid off my 2 credit cards yesterday just like I do every month!

[@rocketmom60]

My husband and I use a credit card for every expense. We do it for ease of record keeping and for the cash back points. We absolutely pay it off in full every single month. We haven't paid credit card interest in decades. Also vehicles are paid off and we paid cash for our last two homes. Plenty of $$ in our reserve fund and investments. I'm not worried about using a credit card.

[@ICantComplain]

It sucks that homes are so expensive in Southern California. In Orange County, you will rarely see a home selling for less than 900k in the desirable areas that are not fixer uppers, and this truly sucks for first-time home buyers such as myself who bought in 2022 who want to stay near their family. If you abide by Dave's advice when purchasing a home, your household income would have to be quite large in order to afford a home and have it be only about 25% of your take home, especially with the current mortgage rates. For example, my family of 4, we have a 311k base household income. Our mortgage on a 1.02m home @5.25% with 25% down, we purchased in 2022, is roughly $5600, which is about 39.3% of our monthly take home after maxing out 401ks + health related deductions for both spouse and myself. Our total expenses equate to about $8,800 per month and no other debt outside of the mortgage, and in theory, if we follow the typical advice, we still shouldn't own and its super critical to have an emergency savings given the state of the economy and just the general upkeep of owning.

[@JBoy340a]

Why not buy a fixer upper. Fix it up over time and increase equity. Home repair and upgrades are manageable by almost everyone.

[@ICantComplain]

@JBoy340a The area we had to look was only a tiny part of Orange County. We cared more about the school district and neighborhood and people in our area barely sell. The home we purchased was not a fixer upper, it was well-maintained, but it wasn't upgraded or flipped either. It was just move in ready. I myself have only seen a few fixer uppers, but they were after we purchased. Nonetheless, having no other debt outside of mortgage makes all of it manageable. We max retirement and save $$ per month, can't complain.

[@TechOutAdam]

It's impossible to pay off the United States debt because nothing is backing currency other than our faith in the purchasing power. It's not even backed by a gold standard anymore so in other words how do you pay off debt, with more debt, when the balance due + interest will always exceed the equity to pay it back?

[@jameslucas5590]

The median household income was 80,610 U.S. dollars in 2023. (BLS) "According to the U.S. Bureau of Labor, the average U.S. annual salary in Q4 of 2023 was $59,384. This is up 5.4% from the same time period in 2022 when the average American was making $56,316 per year." (USA Today) I would suggest you use the median because it accounts for outliers.

[@tatianastarcic]

Wealth/Success is dependent on the action or steps you take to achieve it. Show me a man who doesn't have an investment and I will tell you how soon he'll go broke. Investment is building a safe haven for the future: with the right choices of investment that has minimum risk and with an Expert guidance, profit and interest should be guaranteed.

[@TinaJames222]

Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .

[@Vincent-j8u]

Exactly ! That's my major concern and what kind of profitable business or investment can someone do with the current rise in economic downturn.

[@nicolasbenson009]

You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst

[@sharonwinson-m8g]

Could you possibly recommend a CFA you've consulted with?

[@nicolasbenson009]

Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.

[@katiejon17]

Being a “hyper-consumer” is the norm now. And the people who live that way put so much effort into denying it, and rationalizing their non-stop consumerism that they have nothing left in them to put towards change. I was their myself, until the second the pregnancy test showed “+”. It took 6 months of tying, and a lot of failing, until I finally stayed within the budget I had made. Afterwards it took another 6 years to pay off my consumer/student debt. We still live modestly and are paying off our mortgage early. Life is better now than when I was a hyper-consumer.

[@MexicoTraveller]

EXCELLENT advice

[@robedmund9948]

Comparison is the thief of joy, and ignorance is bliss. Seems to be how Americans tend to live. That average including mortgages makes it seem not all that bad. If you are 10 years out from retirement and have $66k on a mortgage, you stand a great chance of retiring without a mortgage payment! HAMMER IT, man!! YOU GOT THIS!!

[@charmin78]

Maxed out HSA this weekend! Auto-transferring $650 a month to savings to get a jump start for 2025, just like Rachel & Winston do. Front load the year to max out the compound interest.

[@jensbiederstaedt8022]

I never used a credit card for credit. Just for the convenience of paying. One day my wife missed her weekly pay and we paid $20 interest, so we had a little argument. We came from Europe to Canada 17 years ago and over there credit cards are used for travelling at the most, at least back then. We had a bit consumer debts, cars and motorcycles, all paid off. We own 3 houses now. Never made crazy money, it got a bit better when the kids moved out...

[@helomech1973]

Skipped step 6, no way I am taking money from investments to pay 2.6% interest loan. Heck savings account is giving me 4.7% and it is insured. I would literally loose 2% of guaranteed money.

[@MusicMike747]

“Stealth wealth” is going to be critical in the coming years. And not just for the wealthy. Learn how to live quietly. Especially on social media. Think. As the economy turns darker, more people will become more than just jealous. They will become angry. Before you wear that $3k watch or post pictures of your new vehicles…realize that you are making yourself a target. Some people don’t choose to be impressed. They will want to take what you have

[@tomlim1598]

There is no point in comparing with others. i'll be always better than some and not great when comparing with others.

[@JBoy340a]

A car loan of $750/mo. is $9,000/year or $36,000/4 years. That is a ton of money. Plus, increased insurance costs.

[@johng5710]

I got so so lucky 10 years ago. Guy was trying to just get rid of a condo his daughter was living in while attending college. 950 sqft unit (only one bedroom though), the building was only 12 years old at the time I bought it - $70,000. My monthly mortgage payment + HOA fee is only $600 😂. And the way the housing market is looking, I might never move out lol.

[@sooner1125]

We have a paid for 2022 suv and owe $29k on my car that has 3 years left. Owe $212k on house 18 more years $1302 mortgage payment 3.25%. No credit card debt. Raising cash right now then will invest more when the cash position is more solid in a couple months.

[@bobzeren4789]

Who else thinks Rachael is as beautiful as she is smart?

[@michael7054]

Me!

[@bobzeren4789]

@@michael7054 good man!

[@thomasorchard]

Yeah she is beautiful but what is up with her wardrobe choice here?😂

[@faiora]

It’s kinda gross how every video of a woman talking about something serious has this kind of comment. You probably think you’re being nice by complimenting her appearance. But this video isn’t about her appearance.

[@vbelbel490]

@@faiora You must be fun at parties.

[@RobertNoppers]

Had I been able to see through the massive amount of Bovine Scat I was fed earlier on, I might have retired in my 50's. I'm 68 now, I started investing late so focusing on benefiting from compounding interest from ETF's wasn't enough for me. After some research, I found a strategy that helped. I'm pleased to say I'm retiring with at least $4 million. Those of you in younger generations please don’t be like me: too soon old, too late smart.

[@MaxWell-pp9zs]

It’s worth noting that luck often plays the significant role in investing, sometimes even more than the resources involved. Without it, its challenging

[@RobertNoppers]

In my experience, luck plays a part, especially in the short term. But I’ve noticed that when results remain consistent, it usually indicates something more than just luck. For me, research was the challenge until It led to Emily Ava Milligan, a fund manager. I thought her strategy made sense, it contributed to growing 400k into this and counting

[@MaxWell-pp9zs]

I just searched for the name, and her page popped up as a top result. I’m curious to learn more, appreciate you pointing that out

[@laurijohnson7754]

These should be taken down!

[@Jfromes1]

Rachel Cruz has a rich father. Helps a lot

[@catztruck929]

Correct. I wonder what car she drives versus what she would have if born into poverty.

[@brentyancich]

The average mortgage debt was lower than what I would of guessed

[@johng5710]

Maybe it's counting the growing number of homeless people, whose monthly mortgage is $0

[@jdrankwalter]

A lot of Late Gen X/millennials swooped in 2011-2013 and gobbled up free down payments from Wells Fargo's mistakes and got in cheap.

[@darylb5564]

I thought the same thing

[@HypotheticalPizza]

Or renters

[@paulstandaert5709]

I am surprised that it is only 35% of households that have car loans. I thought it would be much higher than that.

[@ekoller]

For credit cards, even if people pay it off every month, it’s also common to overspend with them and use savings to help pay the balance

[@gblyndensrandomreviews]

I pay off my credit card fully every month while earnings Amazon points. Banks no money off of me lol

[@brucecranford0824]

Zero debt except mortgage. That'll be paid off in 3 years. Have $280k remaining on 15 year note. We max out Roth 401k every year. Current balance at $221k. Have 15 years or so until i retire. Once house is paid off, our goal is to buy 1 rental property per year in cash until we get 6 of them. This will leave 2 for each of our 3 children when we pass.

[@d454b]

Other than mortgage, everything is paid off. Early 50s. Just re-did retirement numbers, and moved my target to five years earlier! Motivates me to spend less and save more.

[@Kornheiser10]

Love how Rachel makes it clear starting off that she won't yell at you....like some people we know.🙄 Remember, 75% percent of people think they're above-average drivers.

[@minas.831]

I am debt free and read about finances everyday

[@margibaleztena81505]

Income is relative to age and geographic location. Example a person earning $65k in Boston verses a person earning $65k in Louisiana. A new 22 year old college graduate verses a seasoned 47 year old executive.

[@Squatnation]

27 years old, no debt, $70k in savings, 6 figure income, going to be buying a home within the next year. This video makes me feel better about not owning a home yet at least.

[@KMT15]

Sweet, so at 39 retiring by year end and financially free I’m doing ok!

[@mattkelly7752]

Sounds like most people are suffocating in debt…I have zero debt besides my mortgage. The mortgage isn’t bad and could have been paid down more if it wasn’t for my $8000 property tax. When I bought the house property tax was only $2000.

[@emilyl6746]

I'm just about to start paying off my law school loans but I'm fortunate to have a six figure salary. Still living like a broke law student until it's all paid off. I love what I do and the degree was an investment. Some of my fellow graduates, however, seem destined for lifestyle creep because they'll be making more money than they've ever made.

[@WestleyWilliams-j6x]

If I remember the theory correctly, mean, median, and mode are three different measures of “average.”

[@spotless304]

Learn to build and fix things yourself instead of paying someone to do something you can just do yourself. Time is money so sometimes it isn't worthy but my mindset has been that I will do it myself. Plus, others take the easy way out and call it "fixed".

[@darylb5564]

KZbin has saved me a fortune teaching me how to fix things myself

[@Lucysil1970]

I know several people who just bought used cars and now they are in the shop every other week getting things fixed.

[@silverstar4289]

Not likely as bad as you are perceiving . 5000 buys a pretty good car with research.

[@laundrygoddess4]

​@@silverstar4289 it's a toss up as to whether or not it's good. You can't tell if all the services have been done and if it's been driven easy.

[@spcysos]

Probably did not buy reliable cars. Just guessing… can’t expect a used Kia or Nissan to be a good deal.

[@laundrygoddess4]

@@spcysos my son bought a car with a great reliability rating. And it was a lemon. They are just riskier.

[@spcysos]

@@laundrygoddess4 what car did they buy if you don’t mind sharing?

[@chrissilkwood5439]

regarding the car, an option would be to look at nice used cars... some that have been returned from leases.

[@Lingle-h1g]

Under Kamala Harris: •Rent is up 23% •Groceries are up 22% •Eggs are up 69% •Baby Food is up 31% •K-12 Food is up 70% •Car Insurance is up 57% •Gas is up 38% •Fuel Oil is up 37% •Transportation is up 31% •Airfare is up 25% •Electricity is up 31% •Hotels are up 42%

[@Flownthecoup23]

I use a CC for security. If it’s misused by criminals (and it has been) it’s not my money they get.

[@JV-wq6xb]

Thank you Rachel!!

[@wellspj2002]

According to Chat GBT the US population is almost 350 million and if you divided 350 million into our current national debt the answer is approximately 103,000 per person. Not Trillions per person.

[@darylb5564]

I don’t think these numbers are real real but they sure did make me feel good about myself…

[@JasonGroom]

Banks making money from credit cards is not the interest. The majority of their income from cards come from the 3%-6% fees that they charge per transaction to those that accept them as payment.

[@joelcoyne1365]

Median is the mid point, not average.

[@tcgtpl]

Math was never a strongpoint of the Ramsey Team. 🙃

[@tannerdriscoll6699]

It's a better representation of the "average" American since the million/billionaires raise the average a ridiculous amount

[@alexc2265]

It’s the average in one sense. It’s what the average, 50th percentile person has.

[@toomanycatsfive]

⁠@@alexc2265except that’s not the definition of average. That’s why there’s different terminology… 50th percentile is the median

[@winxtra2892]

​@alexc2265 no,, go back to middle school.

[@DonaldMark-ne7se]

Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.

[@Jamessmith-12]

I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value

[@JacquelinePerrira]

The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.

[@kevinmarten]

please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?

[@JacquelinePerrira]

Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

[@kevinmarten]

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.

[@randyroebauch1466]

That average debt number is skewed because it accounts for a lot of young adults who live at home and have a car loan (average car is now 50K new). That number is way higher when account for the debt with mortgages for older adults. You say the average American makes 61K a year in salary yet the average American puts $4,000 down on a house ……

[@AJM-timecop]

I'm 60. Doing fine. Didn't buy a car till I was in my 30s. Don't think I've ever bought a new car.

[@bettygossell3408]

Living on social security, so trying to live way below average. Debt free except my home. Money in 401k but trying to use it sparingly

[@mweb1]

I am totally debt free!

[@tressalewis7004]

Yay! I have always wanted to be above average❤❤❤

[@nathanrice7352]

I bought a car in 2023 and financed $20,000 at 5%. I had the cash, but left it in the market instead of using it. That $20k has earned an annualized 16% return since then. I made 11%/yr on $20k by taking advantage of financing.

[@ErickSu1]

I am so freaking in debt in mortgage compared to the average American. Maybe I am playing too aggressively.

[@Mrslewis611]

Love your jumpsuit! 😍

[@douglasthompson9482]

No debt and fully retired. House worth 1.4 million. Life is good.

[@DirkChristian-w2e]

The economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

[@Chet_24]

I still disagree with paying for the kids college. I think they should have some skin in the game in the cost 50/50 is reasonable, imo.

[@camillepage208]

As someone who was privileged to have parents who were financially literate and worked hard to pay for my undergraduate education, it was the biggest blessing to me and the best thing they could have done. I thank them for it all the time. I got married at 19 and I can’t imagine how much more stressed I would have been if I had to worry about how I was going to pay for school on top of figuring out how to be an adult and working just to make ends meet. Them paying for it let me actually focus on my studies and I enjoyed school so much more because of it. They had my hubby and I take FPU when we were engaged, so it also allowed us to pour our finances towards his debt and start out knowing how to handle finances. We paid off his $57000 of debt super fast! Then we were able to save our emergency fund and save for a home! I totally get wanting kids to have skin in the game, but having experienced that gift, I know I want to pass that along to my kids. I think a kids attitude towards such a huge gift has a lot to do with how they are parented too and how much parents teach kids the value of money & the value of an education. I know it’s a hot topic, but that’s my take. I wanted to share as someone who got to experience that gift and I am sooooo much better off for it.

[@darylb5564]

I agree they should have the skin in the game but 50% sounds a bit high. I wouldn’t have had them if I didn’t want to pay for them.

[@bradleyvanzile1111]

Never had a car loan always paid in full outright 😊

[@marklance033]

"Everybody loves Rachel"

[@scottkolaya2110]

Excellent video, but to clarify, 3:36 Credit card debt. Correct, the average person has $6,501 in credit card debt, BUT the average person doesn't pay interest on $6,501 because this number is just the average balance regardless of whether it is paid off each month. The average that gets rolled from month to month and people pay interest on, is more like $3,500. Still too much, but If you think the average person is rolling $6,500 from month to month, you may think you're just average when in reality you're way worse off than average.

[@darylb5564]

I get your point. I’d like to no what the real number is

[@scottkolaya2110]

@@darylb5564 I'm trying to find where I got it, but it was singling out just the average interest paid per person per year at about $875 (just interest, not counting fees). With an average 25% interest rate, that's paying interest on $3,500 worth of rolling debt. But it's still true that the average balance is $6,501. Many people like to infer that people pay interest on that every month.

[@Teffy2105]

Average new car payment $750 dam 👀

[@mrjuvy49]

Buy you car at the 4 year mark, get all the goodies and mucho depreciation is gone.

[@Corkfish1]

Saving a million dollars was actually shockingly easy. Even on a modest salary.