How to Budget Variable Income (And Other Juicy $$ Questions)

[@chriss7552]

Hey, the principles Ramsey teaches works. I am debt free. Was working on 3-6 months 9:56 emergency fund when I needed $2k for car repair. I had the money. It was a relief to have cash on hand to pay for emergency 😊

[@johnc1014]

My answer to budgeting for variable income/expenses is to always use the previous month's income for this month's expenses. This works for both a regular income/expenses and variable. Whatever I made last month becomes my limit to what I spend this month.

[@autumnlange1220]

The empire commercial was EPIC!! 😂

[@Frosty2014]

I really enjoy this type of quick Q and A style video! Thanks for the content George and crew God bless!!!

[@floresnashvilledrummer]

OMG, the SS# response! 😂

[@tolohuexochitl3]

Love the Ramsey crew. They serve low income people better than anyone!

[@cecestover3332]

6:08 I struggle with this a lot. And it’s hard to get out of the YOLO mindset because we really don’t know how long we have. I have a friend who there was a horrible tornado that hit the other side of town she lived in and she was like “if the winds had been slightly different I could be dead” and then went and bought a new used car. And I was just like well, it’s your life it’s your money.

[@punkbassandcovers]

'...by following a simple plan..' was hoping for a cut to the song 'I'd do anything' there...get it? Simple Plan.... I'd do anything....great track.

[@perfectlymprfct]

To that caller asking about Roth and non Roth IRA: you can't max out both separately. IRAs have one max. Any IRA contributions combined can't exceed that max of $6500 or $7500 catch up.

[@tcgtpl]

You are confusing IRAs and 401ks. The IRA limit, whether Roth of Traditional, is $6500 or $7500 catch up. A 401k limit, whether Roth or Traditional, is $22,500. You can invest in both an IRA & 401k and If you max out both an IRA and 401k, you’d be investing 6500 + 22500 = 29,000. Roth vs Traditional is about post tax or pre tax dollars you’re investing.

[@irenatrulove]

we no longer have a mortgage, husband is now retired and wants to travel. We don’t splurge or anything like that. Inflation has hit hard and want to relocate while growing his 401k which is less than 700k at the moment. I'm cautious than ever with rising costs, do you think I am wrong?

[@irenatrulove]

The ones I find are young and I feel may not be experienced working with us. They also tend to charge as much as 1% AUM which I am not comfortable with.

[@c0cochan3l29]

Uncle Dave is the freaking Goat and he gets to work with a living legend

[@katyedwards3935]

Who's that?

[@morbotheturtle3796]

The way I based a budget off of a variable income was applying all the income I earn this month to next month’s budget. That way you know exactly how much money you have. You do need enough of a buffer in your account though to have a full month’s income never in use though

[@AbidingHopeMentalHealthCoach]

That’s sort of how I operate. I’m self employed-everything from sewing ($800-1500 a month right now) to editing to Uber-all either cash up front or 1099s. I put all my income into a bank account at a different bank than I use for my daily expenses (making it hard to access unless I drive to the bank). Then a few days before the end of the month, I take a look at my balance and pick a number that leaves a little left in the account ($50-100), and make my budget for the following month from that. But this wouldn’t be practical for someone living paycheck to paycheck. I see Uber and Doordash have an instant withdrawal option. For 50¢ they’ll give you your money the same day you earned it. I have never used that feature. I just let it direct deposit to that separate bank, and once a month I withdraw cash and walk or drive to the next bank (my main bank is a block away from the downtown branch of my business bank, but I don’t always go there). Anyhow, having a separate account, even if it isn’t technically a business account (the balance drops too low each month right now) enables me to track my income and expenses much easier. A purchase at Joann fabrics undoubtedly was a business expense-I am a seamstress, after all. A charge at the local coffee shop meant I either had a business meeting there or I went there to work undistracted for a while-and 50% of meals can be deducted as a business expense if they were an business meal.

[@jangle318]

My husband switched jobs last October and he is now 100% commission. He didn’t get a paycheck this month at all and in his type of business it could be months in between paychecks. 😩

[@irenatrulove]

we no longer have a mortgage, husband is retired and wants to travel. We don’t splurge or anything like that. Inflation hit hard and he's thinking selling our home for renting/relocating. I'm cautious than ever with rising costs, do you think I am wrong?

[@karenhoward8542]

Love your editing inclusions

[@veronicabishop9466]

Love the answer about his SSN he make me laugh

[@SG-vj5zf]

Do you know and recommend any channels or shows specifically geared towards Canadians, especially for retirement and investing? Love the Ramsey team and advice and a lot of it still applies but when it comes to those areas, I need a Canadian perspective as it differs slightly!

[@2024FingersCrossed]

According to Nicole, watching old KZbin videos of Gale Von Oxley and there are others.

[@hopefilledfinancial]

I have a spicy question: Will Dave revise his harmful advice on retirement safe withdrawal rates? For years, Dave has advocated that 8% to 10% SWRs are safe. I made a whole video on why this is DANGEROUS due to crazy undue risk. I cover the argument and evidence for this claim in the video quite nicely, and I think it would change Dave's mind if he watched it.

[@jg-xx8oh]

Your good 🇨🇦

[@samanthaberch]

This video has no sound for me and I tried it several times. He really is muting George and holding him captive!

[@sameasnone]

This one flew by

[@bagenstb]

Make a reference to an old carpet commercial if Dave is holding you hostage.

[@joshuategeler3419]

Would you suggest paying off my $5000 of student loan before the payments start up again instead of following the debt snow ball? I have 2 medical debts (3700 and 4100) that are before it in the snowball but I plan on paying 5000+ to debt in the next 2 months anyway. I feel it world make more sense to pay off 1 that is about to have interest since they are all about the same total.

[@tfosss8775]

Stick to the snowball. Paying off one now that has interest and keeping the one that has 0 interest, means you will pay less in interest overall in the long run.

[@sameasnone]

Just try the Ramsey way, it’s worked for so many. Besides your thinking is what got you into those debts, so let’s not think of that and just give it a shot

[@indianatime]

​@@sameasnone"your thinking is what got you into those debts"... Huh? OP said they were medical and education debts. Generally, a spender mindset wouldnt have contributed much there, so all else equal I'd go with the math here: if medical debt doesnt have interest attached, I throw money at student loan, save the interest and knock it out.

[@sameasnone]

@@indianatime just ignore the math and do the method. As someone who excelled in math but was in debt for years. As soon as I did Ramsey’s way without putting my reasoning in I got out of $80k debt in 16 months. It’s a psychological thing not a math thing

[@indianatime]

@@sameasnone congrats awesome work!! Just because psychological was a root cause for you, doesn't mean that applies to the OP, especially since his debt doesn't appear to be of the consumer discretionary type. And as OP points out the balances are roughly the same, so there is minimal to no psychological benefit in keeping the more expense debt - would just stay in debt longer.

[@donnahampton3632]

George, tell us more about how you got your lovely bride to go on a first date with you. What was your job at the time? Where you out of debt yet? Did you flirt at work? Was your hair as stylish as it is now? Perhaps you should let her tell her side of this story!

[@luv2ruck770]

I like to think of Dave Ramsey as a good way to introduce finance to someone who's struggling. The practices are not perfect but they are so great that it can turn a person's life around.

[@peternguyen1911]

It takes discipline to mathematically maximize your savings and retirement. If people can't control their spending or pay off their credit cards every month, then a no-nonsense plan like the Baby Steps is more appropriate for a large portion of America

[@Askthe-Uw]

😂 No one asked you for your soc sec number - seriously? right? Anyhow, the response was funny as heck. 😂

[@gabevilla8578]

8:34 LOL 😂

[@marylepine7091]

Money comedy show!! Great info with a good laugh! Points to the editor for finding all the clips!

[@MicahMesser]

Love the content, keep it up! I especially like social security number bit, that was good.

[@jonsmith9728]

your take/opinion on dividend investing?

[@GeorgeKamel]

Not worth it just for the dividend. It gets paid out do the profits and instead of reinvesting it (making more money) it gets paid out and lowers the share price temporarily

[@jonsmith9728]

@@GeorgeKamel sry george, I do agree with you 90% of the time but was curious on your opinion, while a stock does lose temporory value it doesn't stay there, agree to disagree on this on.... keep up the great work though and congrats on your channel expanding so quickly (i won't get into the detail/due diligence as i'd be typing a dissertation haha)

[@Raymond.Butler]

I am a disabled vet, listed as unemployable and trying to find moonlighting positions, you'd know that as sidejobs. I am very limited in what I can do. Are there side jobs I can do without fear of drunk uncle Steve stepping in?

[@kratostomatoes8587]

Is it okay to go back into debt for an addition to a house if it's needed for a growing family?

[@PreppyAnglican]

They would probably advise you to try all other options first. You have time to plan, save, and cash flow your additional needs. Don’t add the bad stress of debt to the good stress of a growing family.

[@IrisP989]

Why would someone choose to be taxed at a high tax bracket for a Roth IRA right now when they can be taxed at lower tax bracket when they retire and have no income or low income (so they can do Traditional IRA instead)? My family would not have a 6 figure income then.

[@GeorgeKamel]

You’re assuming a lot and planning for a little. I’d rather do the opposite. Last thing I want is to have to limit income in retirement in order to enjoy it and avoid higher taxes

[@IrisP989]

@@GeorgeKamel Thank you for replying George. I guess I am not understanding why someone would be taxed higher during retirement when they will be making less money than they are now. We hope to continue having some rental income, have some social security (if it still exists), whatever is in the 401K (actively contributing), whatever just sits in the Roth IRA (not contributing anymore), Spousal IRA (not contributing anymore), Roth IRA (not contributing anymore), and my husband think that he might find a low stress, low paying job that maybe pays 60K or less. He thinks that once our kids get older and leave the house, we would not need a high 6 figure yearly income during retirement. (We are currently a single income household plus rental income).

[@Joshdaniel00]

If I Max out my Roth 401k can I still contribute to a Roth IRA the full 6500?

[@LindseyHarvell-vc4ez]

Yes

[@maureenfinnegan5543]

Hilarious and informative.....good combo!!

[@victorblas3483]

Love the content, keep it up!

[@ErikMore]

My wife said I should dress like George. I cried in the bathroom for 10 mins. I said I was pooping.

[@GeorgeKamel]

🤣🤣

[@nancys7405]

This was a great video!

[@ryleyschack]

Could you could name a _specific_ mutual fund that has averaged 12% over the past 30 years?

[@jredlitz12]

He can’t. No one can

[@RobVI]

How much does Ramsey solutions pay you annually

[@GeorgeKamel]

Appropriately

[@RobVI]

@@GeorgeKamel perfect response

[@jg-xx8oh]

50000000million

[@christinab9133]

❤❤❤

[@AbidingHopeMentalHealthCoach]

If one is self employed, up there at the top, even before the 4 walls, is taxes. Don’t forget to set that aside if it doesn’t come out of your paycheck. I pay tithe also (a double one-have for years and God has always made sure I have enough), so 45% of my income is set aside for God and the Government before I even look at my 4 walls. It’s easier if you have a job where they take out the taxes for you!

[@MilaN-lt2mq]

Sometimes they don't take out enough and then you find out at the end of the year that you owe $8000 you don't have to the IRS. I now keep $10,000 just for that.

[@tracyk920]

I love the clips that are edited in. Definitely makes your videos fun to watch.... more fun than rachel dave or dr. John

[@cedricatmoore]

Great video! I have learned a lot about what you mentioned in this video from a friend of mine. And I want to thank you for having very helpful tips.

[@DOGGYDOG1167]

Great stuff!!! Thanks 👍

[@Luncheon23]

I burst out laughing at 8:13 😂😂😂 Love your jokes, they make your videos so unique!

[@zacharyurda8197]

Are you supposed to invest in retirement if you’re in baby step 3b?

[@GeorgeKamel]

Some people do 0% investing in that step, some do up to match, some do full 15%. Of course I’m a fan of doing full 15%, but it will slow down your down payment goal. So it depends on how urgent you’d like to be a homeowner

[@victorbaird8220]

100th like 😊

[@AbidingHopeMentalHealthCoach]

He’s too small to see, but does anyone know who the guy at 7:31 is? He sounds exactly like Rom from Star Trek Deep Space 9.

[@Angelben62]

He’s blinking in Morse code.

[@sorvoja]

من الجيد أن تفكر في تقديم حلقة خاصة باللغة العربية. ستكون هذه فرصة رائعة للتواصل بشكل أعمق مع الجمهور العربي وتقديم محتوى غني ومفيد بلغتهم الأم. يمكنك التركيز على موضوع معين يهم الجمهور العربي، أو ربما ترجمة بعض الحلقات السابقة إلى العربية.

[@dabd8175]

Bro lose the jacket 😂

[@GeorgeKamel]

Nah. Denim is forever.

[@GeorgeKamel]

Maybe you should lose the ‘tude instead. Way easier.

[@dabd8175]

@@GeorgeKamel 🤣 I like your sense of humor 😂

[@Noname77331]

👍🏻🤣

[@JakeSpradlin2]

Blink twice if Dave is holding you hostage, George

[@Tashas_Travels]

He's been blinking the whole video, so what must we do now? 😂😅

[@minimad8793]

Just curious as to why Americans always include the home they live in as part of the wealth pile. Surely this is an illiquid asset until you sell it so only the savings/investments are proof of your own state of wealth?

[@bestsportnascar]

Blink twice if you need help

[@victorbaird8220]

😊😂

[@motoryzen]

4:15 to 4:35 sure..march mifht beat Roth ,. IF thr company you WORK for DOESNT SCREW you over...doesnr railroad yiu...doesnt fire you for nonsenee or push you to quit..then ya DONT grt thr match snr all that time and effoet is wasted and that match.... Gone.

[@X.MillennialResponder.X]

Holy crap dude you really need to tell them a little bit more than that an IRA. Instead you should be talking about a solo 401(k). It takes on less of an issue with an IRA. It’s also once your income grows you can put almost as much as a sept IRA at $61,000 a year for both employer and employee side, when it comes to budgeting, it’s pretty easy like you said you take the lowest of everything you have you budget on that and any additional income you start stashing it for retirement. Additionally, remember that a solo 401(k) is protected versus an IRA is not against any legal issues. You may follow for you in the future so my recommendation and you can even ask a lawyer is that you get a solo 401(k) and not an IRA. I am speaking specifically as a small business, additionally, I would also recommend if you are going to create your own small business. Look at a limited liability, corporation or partnership. This doesn’t take as much money as you think in overtime you can change your tax to be an escort, but as you start, you should ensure that your liability is separate from your personal liabilities as a business.

[@X.MillennialResponder.X]

5:22 as far as taxes I think the Roth idea is great. You can have a Roth 401(k) or a traditional 401(k) solo but I think that is more personalized person-to-person because it depends on what tax bracket you’re in if your tax bracket is within, you know the 22 to 26 tax bracket it might be OK to do, your at the 26-37% traditional to get your tax basis down today whereas if you’re making in the top marginal tax rates, it most likely is more beneficial for you to start stocking away in a traditional 401(k) because the likelihood in retirement that you can lower your taxable income is a lot higher, so I hate that we don’t talk about the nuances here

[@X.MillennialResponder.X]

@@thedopplereffect00 fair , and he may be thinking about people that are in commission sales that still works for someone. Unfortunately, this also comes across as a small business person unable to budget their variable income, and therefore in the future pay a lot more in taxes my thoughts above is only a small sliver of things that a small business person should consider when operating because you will essentially pay more in taxes the need to be especially if you cross over $120,000 of profit then you should move into an S Corp. Unfortunately, the education around being a small business and growing is never mentioned and the topic here is more likely budget and stay out of debt but I think Ramsey solutions is also going into small business as a target audience and if they are, they should be considering providing more advanced information like from the Money Guy Show etc..