I'm $96,000 In Car Debt! (Not Comfortable With A $1,000 Emergency Fund)

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[@MrOfficer235]

He should pay off the $20k car, sell the $70k car and purchase a second vehicle in cash.

[@jml9550]

If he thinks rationally before he bought that car he wouldn’t be in such a pickle.

[@annaelisavettavonnedozza9607]

Yeah but then he wouldn’t have a shiny luxury car

[@TheIronChainMaster]

Caller: I'm not comfortable with a $1000 emergency fund Me: You're comfortable with 96K in car loans tho

[@ovrjoyd4u2]

I had the same thought. What kind of car has a $72K loan on it? He lives high on the hog. Pay off the $24 K loan and then sock $10K on the other. Reduce emergency fund to $8K and then go intense on paying off the other one. Not really rocket science more mind over money.

[@jml9550]

@@ovrjoyd4u2 a Tesla Model S is a $110K car out the door. $72K loan is not out of line. But buying that car when he can buy something like a $35K Honda in cash, is out of line.

[@adamseidel9780]

Nothing out of line about it at all. It even follows Dave’s rule. The value of both is less than half his income. If he bought it in cash, Dave would tell him he can afford it if he wants it. You may not be able to afford it or you may not choose to spend that much, but he can afford it.

[@jml9550]

@@adamseidel9780 not saying the $72k car is out of Line. Just saying taking out a loan for a car, especially with that income is financially not smart. Personally I always buy cars in cash in the $45-55K range. If I can’t afford in cash. I can’t afford it.

[@adamseidel9780]

@@jml9550 if it’s a little dealer interest rate, meh

[@shahzebnasir4692]

It's incredible how much better off people would be financially if they didn't have low self esteem which forces you to buy expensive things to show them off to people who couldn't care less about you. Future parents, please raise kids with healthy, strong self esteems by constantly reiterating how great they are and also instill discipline in them from an early age.

[@raymondcunanan1135]

Great message! So true

[@percivalgooglyeyes6178]

I thought that was the purpose of "everybody gets a trophy" just for showing up?

[@shahzebnasir4692]

@@percivalgooglyeyes6178 No that makes you content with being average. Kids need to learn the pain of losing to want to succeed so bad but attaching your idea of self worth to what you achieve is also wrong. That's why people feel the need to get fancy cars because they feel if they have a fancy car they now deserve appreciation and respect. We all deserve respect, love and care no matter who we are - it should not be tied to material earnings but rather your character.

[@phatbetbruh]

@shahzebnasir4692 tell your kids you love them and teach them to do great things. Don't tell them how great they are if they haven't done great things. Terminology is important; words carry meaning and it's important we convey the right things at the right times.

[@shahzebnasir4692]

@@phatbetbruh Absolutely!

[@lisawright9626]

He makes 210k and worries about his dishwasher and fence tearing up! Man you can cash flow those repairs!

[@linuxsurfer2002]

For real, like eat in more often for a few weeks, skip starbucks, etc.

[@rhsc2670]

96k car debt and living in San Jose, the most expensive area in America next to NYC. 210k does not go very far with 96k in car debt in that area.

[@Dave-tz9zx]

You are wright!

[@LittleMopeHead]

@@Dave-tz9zx Get out! 😁

[@wittyusername9544]

His dishwasher is the stay at home wife. he doesn’t need another one.

[@knightfox4121]

It always baffles me how someone intelligent enough to make over 200k a year is this financially illiterate.

[@MelsDiner115]

This is what they call "educated derelicts". More common than you think.

[@camxdidxthat]

Making money and keeping/growing money are two different skills.

[@wesdaaawg]

They just want validation.

[@adamseidel9780]

Financially illiterate? He has a nice car that he can afford. More than I’d spend, but he can absolutely afford it. Plenty of savings and emergency fund. No problem at all.

[@alqoshgirl]

Crazy to me too! You make this much and can’t take care of normal things.

[@Curtis69213]

This guy is looking for every excuse to not knock out one of those car payments

[@clarebear9263]

I watch these videos to feel better about myself 😂

[@biolife3274]

🤣🤣🤣 me too, but it's still great advice

[@clarebear9263]

@@biolife3274 yea great advice

[@front331]

Why? He probably makes 10x more than you.

[@kannonpatterson]

@@front331 you can be a millionaire but be broke and on the verge of bankruptcy. Happens all the time

[@Odesskiy100]

I was watching these videos to stay motivated while paying off my debt. Now I watch to feel better about myself and stay away from getting into debt again

[@mle011]

How is a dishwasher breaking an “emergency”? Can you not hand wash dishes until you’re able to buy a new dishwasher, or fix the one you have?

[@ricksanchezsflask8794]

How could you even suggest a practice so barbaric? Are you going to suggest washing clothes by hand if the washer goes out? This is America!

[@foundationsbaseball]

You know what they did before dishwashers were a thing? Washed by hand with soap and water. There’s a reason that Dawn still airs commercials

[@ther1ny]

😂

[@susanedghill609]

agreed....and apparently there is only the two of them ......

[@susanedghill609]

....maybe they entertain a lot......

[@ricksanchezsflask8794]

Dawn is for cleaning ducks, not dishes.

[@krobdawg]

Bruh you make 210K/year...come on man

[@fabbz94]

He does live in California. And on top of that the most expensive county in California. After taxes and living expenses it can go quick.

[@Dan16673]

@@fabbz94 yeah that's barely middle

[@WeBeatMedicare6969]

@@Dan16673 lol

[@reese85]

@@fabbz94 I tell ppl all the time! These incomes are not what ppl think!

[@shumatsuopost]

It's always a very good idea to pay off your debt asap.

[@stephpiley]

💰

[@Kayleigh-uy2on]

This is the best explanation for the emergency fund that I have ever heard. It was full of understanding and logic!

[@unfairsanic5089]

Unfortunately most people wont accept that because its too logical for them

[@vincent8900]

If personal finance is 20% head knowledge, 80% behavior, and 100% personal, other people's lack of saving is irrelevant. Perhaps your sense of logic is skewed.

[@ethan4048]

This was completely illogical. Her response was basically well everybody else is in a shittier position lol

[@MikeThePike316]

@@ethan4048 You clearly missed the point.

[@beckymigdal3140]

The hosts are forgetting that the caller lives in CA where taxes are sky high as well as cost of living.

[@candy2325]

George did point that out in the video about California’s taxes eating up his money

[@LG-zy9dp]

Why didn’t they tell him to sell the cars and get $10k vehicles? They want him to wipe out his savings to pay for a car! Ridiculous Where is Mr. Ramsey?

[@amireallythatgrumpy6508]

If he sells the vehicles, they are going to receive this thing called money. You may have heard of it.

[@Argedis]

Yeah I'm surprised they didn't even mention selling that $72k vehicle. At least Dave also asked what kind of vehicle they are wasting that money on. I bet it's a brand new Truck or Tesla

[@georgeslupski5987]

True

[@rockymountainfacet5958]

Id say after all these years they should recommend at least $2000 emergency fund. Its not the same as it was in the 90s. Most problems cost more than $1000 now days.

[@JW-vl5or]

10k, people need to sacrifice

[@willtacoma2ndgen661]

5k should be your emergency fund not 1k dollars.

[@zzzarkka]

Like she said. It’s temporary.

[@dr_pinna543]

Did you even listen to the video?

[@rockymountainfacet5958]

@dr_pinna i listen to everything Dave Ramsey and did listen to the video. Im debt free and follow his plan to a T. Im just saying. Things just cost more now days. Im free to have an opinion.

[@smithersrob]

A damaged fence or a dishwasher going out is not an emergency, with a $200,000+ income save up for the repairs/replacement and hand wash the dishes for a few weeks

[@anya8221]

This is exactly my question, thank you!

[@JosiahK555]

one of these days with inflation as high as it is, there will have to be an admission that 1K is not enough, 1K will be like having 100 in the bank, or nearly zero. i'm interested to know when that day will be. will it be when the minimum wage hits 1,000 an hour? 😂

[@MichaelAnderson-wk1no]

I've thought about that, too. I see the argument now that it doesn't need to be changed, but what about another 50 years from now? I'm sure the day will come.

[@soullessginger2637]

I don’t understand why people call when they don’t want to listen to the advice

[@angel-ij4xv]

exactly they want to do things their way so stop calling in then

[@ricksanchezsflask8794]

They want to hear that they can keep living their lavish lifestyle without making changes.

[@linuxsurfer2002]

460k in debt paid off in 7.5 years??? Wow, way to go Jade and Sam!

[@Dan16673]

That is impressive

[@jml9550]

I paid of $328K mortgage in 25 months.

[@tracygaluszynski1868]

She got repreations.

[@WeBeatMedicare6969]

@@tracygaluszynski1868 lol

[@elnoraabduqadir2297]

Why Jade and Sam had so much debt? Student loan?

[@Jlcdb71816]

This was such a great call! Thanks for breaking down the Emergency Fund!! So goood.

[@timozuna]

If he is worried he can just put more aside this guy doesn't have much to worry about.

[@kathryntubridypakenham2743]

I was just thinking that, he could keep 10k and still put so much to the debt

[@Luv2Ski4500]

Exactly. Why is this so hard to figure out for some people? I didn't go to 1K when I was paying of debt I decided I'd rather have several thousand on hand. It may just take a bit longer to pay off the debt but do what makes you feel comfortable.

[@AutomotiveAnatomy]

The hosts fighting to take the lead and nobody bother to ask if the caller really needed a 70k plus car…

[@pdizzle6366]

Me in my $598k sports car paid for in cash.. LOL

[@bradycone]

That's exactly what I thought. Why didn't they question him on why he has this car, and why he doesn't sell it?

[@Brushedbymorgan]

You make 220k a year and you don’t have enough income to handle to buy a dishwasher ? I make half that and if my dishwasher went I can cash flow it in less then a month. Your wife stays at home tell her to wash some dishes. They sound like they need a budget.

[@deb9806]

He lives in San Jose

[@Argedis]

My house came with a dishwasher and I never used it for years

[@bestbudsourchannel4807]

He is SO not doing this

[@Nintendogamer757]

72k on one car is wild, they can still knock this stuff out the park no matter what they do though. I’d pay off the smaller car debt, keep the rest in savings

[@of6024]

That’s pure stupidity from this guy….he sells his car and buy (cash) a used and good car Nader 10k…

[@Winnie-Kay]

Where's Dave's, you can do what you want but you called me?

[@PInk77W1]

LoL. Dave is old rich and retired

[@ramenandgyoza702]

Listening to these videos makes me appreciate our paid off cars -'16 camry and '14 crv probably only worth 22k combined 😅 they aint fancy but get the job done 🤷‍♂️

[@aina3387]

I make a little over what the caller makes and I wouldn't be comfortable with only 1k in the bank. I think it is a good benchmark for people who are struggling to save even that much, but if you can keep around 5-10k in the bank I think you will have a easier time dealing with emergencies and paying off debt. I wouldn't go lower if you are already higher than that. I understand that I can cash flow a lot of emergencies, but my anxiety is too high for that, lol.

[@samuelm2111]

What kind of job is this Aina?

[@jml9550]

I make similar as well, paid off home in the Bay Area as well. I keep at least $100K in liquid.

[@MikeThePike316]

@@jml9550 Such a large amount of uninvested cash will probably cost you millions in retirement.

[@MikeThePike316]

@@RustyZipper It's feasible when you consider the purpose. It's a starter emergency fund, not a fully funded emergency fund. The idea is not to be enough, it's to cover the small things so you're not tempted back into debt.

[@joshw7415]

You cannot just assume that he could throw $10K/month at this, considering his take home pay is probably $13K/month.

[@jml9550]

Yep. Property tax are probably $12K a year.

[@brittanywelty566]

Neither repair he mentioned is an emergency 🙄

[@MichaelAnderson-wk1no]

I think the even more important point is that with his income, he can easily cash flow both with one paycheck. So the emergency fund amount is irrelevant in those scenarios.

[@droid2D2C3P0]

Yeah wash dishes by hand, millions of people do it every day already lol my parents lost part of their fence in a storm over Christmas, my dad just propped the boards back up with other wood and tied zip ties around the top to hold it in place until the summer when he can fix it himself. They have plenty of money and could get it fixed now but it's not an emergency lol we even have a dog, not a big deal

[@Forestdawg1791]

Y’all didn’t pick up that he’s making $200k in San Jose. He likely has a $2m mortgage he failed to mention. For comparison if someone called you up making $100k in Ohio with that sort of car debt you would tell them to sell tomorrow.

[@Elizabeth-yg2mg]

He said his mortgage was 3k per month and they said that was fine. It was toward the end of the call.

[@DioDiablo702]

If you watch the full video you would have actually got to the point where they did acknowledge that he lives in California and asked how much he takes home after mortgage is paid.

[@pattyhab596]

It's not just the mortgage, but property taxes in San Jose our outrages too. My house is paid off, but we still have to pay 10k per year on property taxes...and they keep going up every year.

[@estebancarrillo6103]

File an insurance claim to replace/fix fence. Dats what I am doing. Dishwasher use home warranty if you have it.

[@Miggy2222]

His depreciating asset to income ratio is 50%

[@rory644]

He’s only one lay off away from being bankrupt though

[@ericstewart517]

Most are....even with a 6 month emergency fund.....if one is laid-off Their laid-off.....so your comment is mute

[@wacker3523]

Why do so many people want to hold on to debt so badly?!? Especially when he has the money and a good job to knock it out. Good call and great answers.

[@topsykretts2264]

It’s that thought of spending all the cash on it. They think they’re losing equity but really they’re gaining it by decreasing their debt.

[@Rashaadthegr8]

Addiction

[@SteveC484]

@@topsykretts2264 Exactly. It's a decision that looks bad in the short term but in the long term is far better.

[@jessicavarona8099]

Conditioning

[@godfathaofyo]

because smart debt is better than bad debt, if you understand money and are smart with it

[@too-da-loo]

No discussion on the fact he has $96k car debt and ONLY makes 210k? that is nearly 50% of his income. If a fence and dishwasher failing causes you heartburn, then you are way over your head regardless of your income.

[@jml9550]

Exactly my thought.

[@FreeBladez]

This lady needs to take a chill pill. Let the guy finish his question.

[@thesuperdingos]

You can’t teach people who aren’t willing to learn

[@juantamez9442]

I kept $2K in my emergency fund because my anxiety gets the better of me lol everything else was business as usual. I was still able to pay off all my debt within a year

[@Michael-4]

30 years ago when he came up with the 1000 it equates to 2k today.

[@jasonharris765]

A dishwasher and a fence isn’t an emergency…you can wash by hand or fix it yourself…fence you can fix yourself as well or leave it till you can…also why does a stay home mom need a car?

[@FTG2Eli]

After the car, he needs to tackle this mortgage.............ridiculous; I know, as I live in San Jose (the WIllow Glen area)

[@phobedavis7014]

I came to see what Jade is wearing. Very sharp.

[@mathematician1234]

Dave Ramsey would have asked what kind of car does he have with a $72K loan?

[@adamseidel9780]

Dave would have had a much smarter answer to this question. He’d have told him you can afford the car but tried to explain to him why he doesn’t think Debt was a smart way to get it.

[@slyfoxx2973]

1000 dollars scares you more than 90K in car debt?

[@linuxsurfer2002]

That's the problem, the debt mentality - "Everyone's doing it"

[@marcuswashington461]

Great point!!!!

[@zombl337og]

my dishwasher went out in december, WHAT EVER WILL I DO when i only make over $200k a year?!?!

[@justinmichaelknox]

Obviously the cars were crazy and he should dramatically rethink his approach, but there’s no way I’d drop to $1k as a sole provider with a family to do it. He can solve his problem in months without the risk and stress of that

[@tiwarani]

Crazy how I make half the income as him, probably younger than him, yet my net worth is more. Stop financing things that depreciate!!!

[@reese85]

You prob don’t have a wife and family as well

[@tiwarani]

@@reese85 married since 2021. Don't assume anything.

[@reese85]

@@tiwarani key word is “prob” and I also said kids, and you prob don’t live in a high cost area!

[@tiwarani]

@reese85 If you're broke it's because of your decisions. Kids are a decision. Anyone can move. Next.

[@joseph10704]

its so crazy to think about it that most people today in america don't even have 1,000 bucks in there bank account.for a just in case problem.its crazy that people can live a life like this and not saving or living with something they dont need just now.I feel many people dont save is not because they just dont have it its because there just use to living broke.there not always willing to change.

[@willtacoma2ndgen661]

Dave's should bring up the emergency fund to 5k dollars because everything is sky high now. The 1k dollars 💸 emergency fund was back in the days 1990s and early 2000 not in 2023 anymore. You will need a minimum 5k for surviving.

[@VanderbiltMr]

Just go Dave-ish, drop to $15k savings and pay down the cars. I bet before writing a pay down check he will wrestle with selling it. Changing behavior is what it’s all about anyways.

[@GrandmaBirdy]

California….you have great point! As long as he learns to pay off debt.

[@Rashaadthegr8]

Yep debt is sky high too the longer you wait.

[@amireallythatgrumpy6508]

That's ridiculous. If people have to save for a year without even paying off any debt, they're going to give up before they even begin.

[@willtacoma2ndgen661]

@@amireallythatgrumpy6508 What can you do with 1000 dollars these days?

[@sharons5714]

I would be tempted to look into getting rid of the more expensive car and replacing it with something more affordable.

[@onebridge7231]

Lol! I want to do the Ramseyish Plan; therefore, I’m not selling my Porsche.

[@thomaschew2191]

I have owned a home owner for 37 years and have never owned a dishwasher. Unless our hands and a sponge are considered a dishwasher.

[@reese85]

That’s awful

[@jml9550]

Haha me too. My dish washer is for dish storage only.

[@Themoomabides]

I think it’s time to adjust the $1000 to those who have savings or families. So maybe $1000 per family member, etc.

[@khrisstake2210]

The 1000 dollar is just for getting out of debt

[@unfairsanic5089]

The point is that alot of americans cannot save 1k to begin with and you want to increase the emergency fund?

[@deb9806]

Why does the fact "most American's can't do something a Ramsey solution?" When I had three kids home, 1000 went to one brake/rotor job, then the water heater leaked, the list went on. No way would I save only 1000. We had much more saved and still paid off debt

[@curtis3688]

It’s crazy that they don’t factor in taxes. 210k is only 12k/mo take home. So 10k/mo debt repayment is outrageous. 5k would be tough. Still should be better off than most though 🤷‍♂️

[@danielvalenzuela8814]

Especially in San Jose. $210k in SJ is the equivalent of $100k in most other US cities.

[@huntershoemake2721]

Seriously I was thinking the same thing

[@Michael-4]

@@danielvalenzuela8814 Some places are only gonna have the homeless left.

[@godfathaofyo]

Exactly this, they are centered in Tennessee, a state income tax free haven.

[@lukerider479]

Taking home less than 12k when all taxes and health insurance considered. They are sometimes extremely ignorant when they do math.

[@tylersanders2388]

The point is to be uncomfortable. It’s called motivation

[@aolvaar8792]

Like being chained to your oar.

[@truckingmoney485]

It’s called risk

[@tylersanders2388]

@@truckingmoney485 risk is tens of thousands of dollars of debt. Spending a few months uncomfortable is eliminating your risk

[@aolvaar8792]

@@tylersanders2388 Jade spent 90 months, most people don't say "Few" I'm retired on a ~$9K/mo Gov't pension. The risk can be Very low. As my father said: " I will walk over the starved bodies of SS retirees, when my Military pension stops."

[@aolvaar8792]

7.5 years is not short term. Sell something? Like a bedroom set that you bought 30 years ago for $2000, now non-replaceable (they went out of business) or The 1953 Winchester model 70 dangerous game rifle. 1972 restored Chevy truck, that I bought New. Find a way and ALWAYS could. Example: an $11K A/C dies on the roof damaging the roof, $9K to replace roof insurance pays $2K, old roof (depreciation) $18K bill I'm old, retired, fixed income. Pay off the $24K car, and pound money on the remaining car. $18K emergency. I hate the Idea that people work harder with a gun to their head.

[@sinclairal]

Other option, sell the more expensive car. Buy a normal car with saving- boom debt free today

[@SicSemperTyrannisx9]

Wash the dishes by hand for a month. Not an emergency.

[@staceyrobles6526]

Within 3 days of my first 1k in savings...600 unexpected car repair...replaced it with a couple of weeks ..days later need new tire on other car..replaced again..and im only 2 months in..ugh..im not discouraged..im keeping on keeping on😢

[@aleksandar5323]

Do it with 5-6 thousand, it doesn't really matter. Just do it :)

[@linuxsurfer2002]

So modify Dave's plan a bit - keep, say, $5k in savings, throw the rest of the debt and get gazelle intense! They should still be able to get out of debt (except the mortgage) within 9-12 months with his income.

[@pattiupton1499]

Tired of people making big bucks whining!!!!

[@DanielGarcia-zz9eg]

Need to asking NET OR GROSS 210k = about 37k in taxes, 36k in mortgage, car insurance, health insurance, kids That can be brought down to about 60k net. Still good money 210k a year on a 3k a month mortgage is too high. You need to be at 400k a year so u have a cushion, especially in CA

[@juanmariscal3897]

It seems like they were speaking to me. I feel much better now that other are with me during the baby steps.

[@LifeWithChase]

Not the smartest way to do it at all. You can lose your income the day after you spend the 42k paying down debt and then you have 1k to your name and still have a mortgage and car note you can't pay!

[@jackman3654]

The guy makes $210k a year, I think he's going to be fine..

[@laurencesnashall]

Washing machine and fence falling are not emergencies either 😂

[@mattcole3927]

They didn't even ask what his interest rates are... but claim "this is the smartest way"...

[@percivalgooglyeyes6178]

So Andrew, how do you like that Range Rover? Does everyone think you're cool when you drive it?

[@ricksanchezsflask8794]

Men want to be him and women chase after it to be with him.

[@elizmarmontanez]

Where is Dave? I miss him on the show😅

[@tdogable]

I don’t love the advice here… why not sell that expensive a$$ car and buy something used???

[@chevyguy2063]

Lol meanwhile I just bought a 2008 Tahoe LTZ for $3,800 cash at my dealership I work.

[@DoctorSmartyPants]

Why can't ramsey solutions update that babystep to 2k? They are so stuck in the 80's!

[@jasonleatherwood2172]

In the usa a dishwasher is a emergency lol and if you dont have a dog neither is the fence

[@unfairsanic5089]

You must live in a fancy life then

[@petersimpson633]

If you have a dog it can lick the plates clean and you don't need a dishwasher...

[@LittleMopeHead]

In my apartment, I use the dishwasher and chimney (cleaned) as storage.

[@reese85]

Why do y’all think fences are only if you have kids? There also keep your kids inside your property and it also tells you your property line from someone else house or yard

[@Cynexius]

Is it me, or do the majority of people who call into this show with financial problems have six-figure incomes.

[@margaretmorrison7301]

Why would the pay cash for the 2nd car and pay himself the car payment in savings above what he already does? He could save so much interest that way!

[@myronpriest4935]

I'm scared I make $200000 I gotta buy a $1200 dishwasher😳😳

[@oceansky6207]

They need to rename their emergency funds name if it’s not meant to be a real emergency fund and only to start on the program.

[@alinatamashevich3354]

I think they use the term "starter" EF.

[@amireallythatgrumpy6508]

No,

[@theforeignerinamerica1817]

Get whatever car you want which you can pay for in cash, even if you get a loan you have the cash on hand to pay it off and decide not to because of an investment.

[@Msteve-nt5bx]

So go down to 5k and put 37k to your debt

[@Mysticbladegod]

I have most of my debt paid off (all student loans) but the idea of a $1k emergency fund in 2023 is insane. Inflation is out of control. I've been saving aggressively and paying down debt like a mad man. I'm in with the caller on this one.

[@SirPokemonX]

It’s just till you pay off debt then it’s 3-6 months expenses.

[@austintomkewitz3981]

@@SirPokemonX yeah just be brainwashed and pigeon holed into the Dave Ramsey Plan and don't think for yourself even though you make more money than I do

[@LiefLayer]

It should actually be zero, you still got your income and you are in debt so you are actually negative every month so you should just pay off debt as fast as possible. Think it as 10 dollars to buy bread if you are starving. 1000$ are not actually your money (you are in debt so you are on a negative on cash), it is not a real emergency fund, it's just starvation money that you keep as a reminder that you are drowning.

[@SirPokemonX]

@@LiefLayer well yeah you are still in debt. N the only reason to have $1000 is the mental effect it has on you to know you have something in your savings and not feel as though every cent has gone to paying off debt. Also so you don’t get discouraged

[@kerryfitting6070]

It's putting the fear aside and just doing it.

[@drama-addictic6462]

Its always amazing the more money you make, the more the car has to cost equal to half or my entire income a year. But everyone’s got their own sense of priority.

[@DonnieDarko727]

Lifestyle creep

[@chefjamesmacinnis]

Doesn't his home owners insurance cover the fence?

[@kevinreichert3254]

Given that Dave always discusses risk, I believe they should have said just keep $5000 and use the rest. If it makes the guy comfortable to have a bit more, let him have it. You are literally telling him to drop his savings to 1/3 of a single monthly mortgage payment. If he loses his job, he immediately misses a payment with no time to make a plan.

[@MsDebs777]

👍🏼Great advice!!

[@binfordtoolman5674]

Putting $10K / mo on the car debt is unrealistically aggressive, even with a take-home of $12-15K/mo. Caller has a 3K mortgage, not sure if that includes property taxes & insurance. Either way, caller and his wife haven eaten yet nor have car insurance, life & disability insurance, and utilities been accounted for. Even if caller eats "Rice & beans, beans & rice" until the car debt is paid off, $7-8K/ mo would probably be achievable, but still a stretch. Paying off the car with the lower balance & selling the expensive car and buying a late-model used car with cash would be the better way to go. You're out of debt immediately. You CAN get a reliable used car for 10-15K - I know, I've done it.

[@cabayern9416]

Please stop bragging how you got out of debt. Bring Dave back.

[@la9863]

Is he (Dave) ok? Is he tired. Retiring? You don’t like this lady? Why do you think she’s bragging?

[@cabayern9416]

@@la9863 I hope Dave isn't retiring!! He is always the voice of reason. Ti's woman always has to go back and brag what she and her husband did. She needs to stop. One can guide others without always referring to one's own self.

[@la9863]

@@cabayern9416 thanks for sharing your feedback. I hope he isn’t retiring/leaving either. But, it does seem like he is setting others up to run his show. I know he can’t work forever. He has built a strong empire.

[@perotal]

If you don't want to only have 1000 dollars then keep more than 1000. Next

[@RetailRipper]

He makes a lot of money, so he doesn't have to worry about the fence or dishwasher, but both of those could be fixed by him, cheap. A new dishwasher install is simple.

[@jml9550]

No need to be jealousy. He lives in a extremely high cost of living area. His mortgage is $3000 a month, assuming his loan was probably $700K and home probably worth a million, which isn’t much here. Probably tax is around $1K a month. I know because I have been living in the Bay Area for 30+ years.

[@jonquindiagan682]

I am right there with you. Keep up the good work!

[@phatbetbruh]

"The baby steps work for everybody". Yep!

[@unfairsanic5089]

Lolz it works for me, i follow the steps rn im debt free

[@Pepsiaddicto]

If your goal is getting out of debt, but despite what Dave Ramsey says, that's not always the best option for your financial situation.

[@phatbetbruh]

@@Pepsiaddicto Lol, okay.

[@alinatamashevich3354]

@@Pepsiaddicto Why try and reinvent the wheel?

[@chedbeckford8067]

I mean you can decide on the amount you want to keep. Things come up all the time, especially if you have children

[@Kendye6]

If the dude isn't comfortable going to $1K - fine, don't go that low, just go to $3K, or $5K. You don't have to follow Baby-Steps to a T. Dave doesn't control your account, the program provides a step-by-step process for getting out of debt, putting yourself and family on foundation of financial stability. It's about mentality and behavior. They do make great points though - he makes enough money that he can be fluid with cash and refill the fund as needed. And with $40K cash sitting around, his situation really is very manageable.

[@ahavahpries805]

sinking fund is very essential

[@annaelisavettavonnedozza9607]

How do u have less than $50k saved when you make over *TWO-HUNDRED THOUSAND DOLLARS* a year???!!!

[@jml9550]

High cost of living Area here in the Bay Area. Car payments,mortgage, property tax, kids activities/lessons, eating out, expenses can go on and on…..

[@raynaldfernandez1436]

San Jose, CA the most expensive city in America

[@tashanapink7688]

Even if he doesn’t drop down to the $1000, why couldn’t he just pay the car off by paying extra extras on the cars? He makes the money.

[@jfish9014]

Love Jade & George together

[@Deut3019]

72K car?! Ridiculous!