Money Expert Reacts to Unhinged Financial TikToks

[@eprofessio]

I got $9,000 left on my student loan. Started at $119,000.

[@AvalonMisty]

Way to go!

[@jasonrodgers9063]

Congrats!

[@Tinyzkid]

jesus, what degree did u get

[@grecojones]

Almost there! It’s amazing on the other side!!

[@daurissacrank3270]

Almost there! Doing great 🎉

[@ChristopherAbelman]

I recently sold some of my NVDA stock to secure profits, but I'm retaining a portion for the long term. Nvidia's growth potential remains robust. I'm considering diversifying my 6-figure portfolio, but I'm uncertain about managing risks in my next move.

[@HildaBennet]

Everyone needs a Margin of Safety in their portfolios and just remember, It's time in the market versus timing the market.

[@FinnBraylon]

While keeping your portfolio allocations balanced, de-risk your investments, support your core holdings, and take some gains. Even managed portfolios don't always perform as well as I would advise, so it's essential to get the advice of a qualified fiduciary; my spouse and I find that this works for us. Net of dividends, we have had over 80% capital growth.

[@bartlyAD]

I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?

[@FinnBraylon]

I personally work with Diana Casteel Lynch. Just take a look at her full name on the internet. She is well known so it shouldn't be hard to find her.

[@bartlyAD]

Thanks, I just googled her and I'm really impressed with her cre-dentials. I reached out to her since I need all the assistance I can get.

[@johannamiller527]

I always find it so funny how people will argue about the debt snowball versus avalanche versus whatever else. If you've set up your life so that you're spending less than you make and you have margin to put toward paying down your debts, you've already done the hard part - if you can stick with it, the debts will get paid off, whatever order you pay them off in.

[@battra92]

Whichever works for you is the best method!

[@nicknakpaddyman]

Preach. There also seems like the three blind monks and a elephant allegory here. Zooming out, it is a pretty good bet that your highest interest is a smaller dollar amount (like a credit card vs a car or house). So, different names for what functionally is the same more often then not.

[@Josyeliel]

The funniest thing is that a lot of the snowball haters crap on it and then say with the same face that cash flow is your issue lol

[@perfectlymprfct]

Key word is "if" - if someone's 28% credit card with $13k is their highest interest, they will likely quit before they get to the 10% car debt for 40k because they don't see the balance moving. If they were into paying attention to the rates, they wouldn't be in that mess to begin with. Sad, but true.

[@johannamiller527]

@@perfectlymprfct I'm afraid I don't understand your point. In the example you give - $13K on a credit card at 28% and $40K on a car at 10% - the debt snowball and debt avalanche would both advise the same course of action: Make minimum payments on the car and throw everything else at the credit card until the credit card is paid off, then attack the car loan. If somebody gives up on that plan because they don't see the car loan balance moving, that's not a weakness in either the snowball or the avalanche, that's a weakness in the person.

[@kasession]

I got out of debt before I discovered Dave Ramsey. While I started with trying the avalanche method (it didn't have a name back then), it wasn't working for me. I instinctively switched over to the snowball method. It was so much more effective in keeping me on track. BTW...While you may end up paying more interest using the 'snowball' method the difference between that and avalanche is insignificant.

[@Flownthecoup23]

I still think the debt snowball has more psychological value to it. Little victories add up.

[@eprofessio]

@@Flownthecoup23 they absolutely do. I have been paying my student loans off in groups using the debt snowball and it makes such a difference seeing them get paid in full.

[@nourishedheiress]

Agreed

[@kunya16]

Some people need that psychological thing. I would be kept up at night thinking about the interest adding up. I need avalanche. People aren't all the same.

[@NathanCrouse611]

That's exactly what it is. The Ramsey people admit to that. You'll save a bit more money with the avalanche method, but most people need those little victories to be able to keep up with the debt pay off on the larger debts. If your largest interest debt is also your largest debt, you'll be paying on it for awhile before it gets paid off and you'll feel as if you made no progress. The snowball method really does two things, if you have several smaller debts: it gives you the psychological value of quickly paying off some of those smaller debts, and when you're quickly paying off the smaller debts, it makes things easier to manage because you have less different debts to think about if you're not great at managing money. I knew someone who had at least 8 different credit cards, four of them totaled up to only about $1300, so basically several hundred per card, and then several that had several thousand with a total debt of at least $35k on all cards. She got a significant tax refund, but put about $7k into the largest card instead of knocking out several smaller cards and making the debt much easier to manage. I think it would have knocked out at least 5 of the cards, maybe 6, and she would have only had the manage another 2-3 cards rather than dealing with the 8 or so cards she had. It would have felt so much better to me if I was in that situation just to get rid of 5-6 cards completely. It accomplished the same thing either way, $7k less debt, but at the cost of still having the manage 8+ credit cards instead of 2-3. I think she was also managing them all through paper credit card statements rather than online accounts. She didn't even realize she was carrying a balance on the smaller cards and had late charges on a couple of them. It was a terrible financial situation...

[@flotaylor8170]

@@kunya16I agree 💯. If I had debt, I’d use the avalanche method.

[@killchill]

$3,800 more til im debt free thanks to you and Dave!

[@rachelharrison7961]

I have absolutely no desire to replace my car every 10 months. I want a car that I will keep a minimum of 10 years, hopefully more.

[@blava9081]

I think that was just talking about how to upgrade cars while debt free. Once you own a car you like and is reliable, keep driving it while saving so you can buy your next car with cash.

[@rachelharrison7961]

@@blava9081 I know what he means. I just find the process of buying and selling cars stressful enough that I’d be OK with a small loan that would be paid off within 2-3 years of the car’s 10-12 year lifespan.

[@unlimitedpower4101]

You can just save up more money over a longer period of time to pay cash for a new car and then not have to worry about buying another car for 10 years. I also would find it annoying constantly changing cars.

[@suzukiman8964]

Buying a new car is really not worth 😒 it, it depreciates after you drive it off the lot anyway, just buy a used reliable brand, mazda, Toyota, honda

[@nourishedheiress]

I love not having a car payment. I’m riding this car until I’m a millionaire and can justify the depreciation of a new car

[@codykoon5520]

George, one of the things I don't think you or any other Ramsey personalities mention enough about the snowball method is after you get some momentum, in the later years of paying on the larger debts, you create more margin to address emergencies that can arise without touching your baby step 1 emergency fund.

[@cybertoeknee]

That's because they want you to use your emergency fund for emergencies. Then use that margin you mentioned to build it up to $1k again and then you start your snowball back up.

[@nickstark8479]

It doesn't actually create more margin... even though you have less number of payments you are - theoretically - paying off the same amount of debt. Just where the payments are going are spread across more places.

[@nickstark8479]

It's a mathematical "illusion" when we think, "since I knocked ome out and have less payments now, I have more money to pay towards this other debt". It's the same amount of money leaving every month, just now going to a single place instead of two places, and your total debt load is not being paid off any faster.

[@codykoon5520]

@@nickstark8479 The mathematical minimum payment decreases which was my original point. You should keep paying as much as you can toward the debt each month on either plan.

[@tonycrabtree3416]

@@nickstark8479Ramsey clearly says it isn’t a math problem, it’s a behavior problem. Snowball changes behavior.

[@richhenry8004]

The number of people who can't do arithmetic is troubling.

[@mathematician1234]

I can't even count how many people I know who can't do arithmetic. They reach for a calculator to figure 10% of 100.

[@janellemcleod]

😅😅😅The the dancing episode have me in tears!!! I cannot stop laughing lo. I rewind that part about seven times watching it over and over😅😅😅Thank you for this! I needed this laugh😆

[@BrendaColin-v7g]

The avalanche method works when you have just student loan debt. Because they’re multiple loans and monthly payments are usually all lumped together. I pay them off by highest rate.

[@TJrules299]

Lol. Right. His assumption that it was consumer debt was annoying. Also The avalanche method is viable. He should say that instead of disparaging it.

[@biancaolivares1793]

Epic intro 😂the tik tok selection left NO crumbs!

[@Mr.Boring_Man]

Sloppy life. Sloppy outcomes.

[@matthewsawczyn6592]

"Lemme just dance, DAD!" -Jimmy Jr. 🔥

[@MasterKilokk]

The issue with that method of buying cars is that these days, $6k can’t get you a civic anymore.

[@freedomring3022]

I just bought a 2010 ford F150 for $5k. Yes you can get a quality used car for $6k

[@nodsib]

Sure it can, just won’t be the Civic you want.

[@Mandaathome]

The last time me and my husband took a real vacation was in 2021 and that was to Nashville all the way from Arizona We saved money for it and worked extra days and over time for it only thing we put on credit was the hotel but that was 600$ and paid off the following week. Like Caleb hammer said some people are not credit card people.

[@nourishedheiress]

The debt snowball is amazing! The small wins really keep the momentum going. So grateful for you guys

[@AlbatrossWhisper]

I paid my student loan debt from 23k to 16k in six weeks. Im going ham on this

[@InflationProof28]

You know you can get reimbursed for the payments you've already made right?

[@AlbatrossWhisper]

@@InflationProof28 Lmao how? You only get reimbursed for the interest up to $2500 a year. That money i paid is gone forever. And ill pay another 3k before the year is over

[@Frostavid]

Yassss!

[@thepoynt]

Use either the snowball or avalanche method, folks. Just get out of debt. If you're not a very disciplined person and do better with short-term goals (which, if you're in consumer debt, is more likely), the snowball method will probably work better for you. If you are disciplined and motivated by longer-term goals, then the avalanche method is technically better. So do what you think will work best with your personality and just focus on what matters - getting out of debt so that your money can be your money again :)

[@joseveliz218]

That first one is the absolute most important one. People read into social media too much and try to keep up. Think for yourself and don’t keep up with the Jones’.

[@No-sv6mu]

I bought a new midsize in 2013 for $24,000ish. The same model new car with the same features would be $49,000ish now. I'm still driving my 11 year old car. My husband does the oil changes. And I have only had about $1500 of maintenance over the last 10 years and that included new tires. I don't care my car is old. It's safe and gets me to and from work.

[@calebgibson55]

You have become my favorite channel!

[@Krueger444]

Can I see you react to the following statement? "If you're doing debt properly, there shouldn't be a difference between snowball and avalanche"

[@duhbullb]

Chris Kohler hits the nail on the head all the time with his videos. So good

[@TuoDev]

I love the shorts from the guy at 8:55 (Chris Kohler). His sarcasm is amazing, and it's fun watching George react to him.

[@narutoyondaime14]

You killed me at the 'if i had an australian accent id have more subscribers' 😂😂 😂😂😂

[@ihaveadreamformykids4400]

The snowball works for taking tests as well. I usually do the easiest questions first then I tackle the hardest questions last because I will be spending the most time there.

[@Fishman362]

The avalanche method is more effective however takes more discipline so just do the one that you can stick with is what he should have said. Paying off debt is the objective how you do it isn't as important.

[@Joenzinator]

I dislike how different financial advisors split hairs and bicker over these small things. The difference between the 2 methods is going to be insignificant. Same with some advisors wanting to pay off the mortgage early, and others who prioritize investing. The latter is slightly more advantageous, but both methods work just fine towards building wealth. The main message needs to be creating margin in the budget, which allows for wealth building. The only investing strategy I strongly disagree with Ramsay on is using mutual fund managers. You are paying fees to the advisors who then put you in high fee managed products. This might be okay at an older age when less time to compound, but for young people this can result in significantly lower assets at retirement. A 2% fee would result in 40-45% fewer assets if investing consistently for 40 years.

[@tonycrabtree3416]

Nah, people who use avalanche method get distracted or discourage along the way taking longer than they should compared to snowball method approach. If I go avalanche then I don’t free up money as quickly. How you do it is the important part. One approach has the higher success rate than the other.

[@Joenzinator]

@@tonycrabtree3416 Most of the time, the lower limit debts are at higher interest rates anyways.

[@zachjones2346]

My wife's med school debt was broken up into 11 separate loans. For some reason, of course, the highest balance loans had the highest interest. We paid down the balances on the highest ones so that they became the lowest balances and thus turned the avalanche into a snowball method since we are now tackling the lowest balance ones first. lol

[@Whiskey11Gaming]

​@tonycrabtree3416 This is very person dependant though. I'm on an Avalanch journey to where I've paid nearly 18k down in 10 months of my 25k CC and have 12k of a construction loan (replacement windows). I'm so far along that even if I switched to snowball, the current current order is the same for both methods. I'm on track to be CC debt free by the end of the year. How I did it isn't rocket science. For me, I set myself up, stupidly, that my expenses go on the CC.... utilities, phone bill, etc, except the mortgage. In doing so it left me in a position where I couldn't fix that issue because I was nearly maxed out. I HAD to address the CC first to fix everything else.

[@jasondima1411]

I followed the debt snowball method because it works for me. But the avalanche method can work also. Personally to me it doesn’t matter what method you use as long as you pay off your debt.

[@Mike.D.Lindley]

I think George finally made the proper point to make me agree with his favoritism towards "snowball" vs "avalanche." Yes mathematically the "avalanche" method is dollar optimal to minimize total interest paid. And any knowledgeable and responsible person would definitely tackle debt that way. But he absolutely hit the nail on the head when he points out that a knowledgeable and responsible person would never BE in this situation with multiple large consumer debt balances needing tackled by either method. It really IS a behavior problem, not a math problem, that puts people in the situation. Stands to reason a behavior based solution is going to work for the majority of folks. the light bulb came on so bright just now it was blinding!

[@maps630]

When I learned about finance and the rule of 72, you divide your interest-rate into 72 and that’s how long it takes for your investment to double, I did that with my credit card interest rate, and realized that at 18% interest, every 4 years my debt was doubling. That’s when I got serious about getting out of debt.

[@selfridgesforever4399]

Hello from the UK been watching you and the whole ramsey team for months. Gotten me into the momentum to clear my debt ASAP!

[@tubenachos]

I personally can't stand "Talking to yourself" shorts. It gets on my nerves but I get the message

[@gdash4832]

I think that Rachel and Jade would dance with you George, John and Ken might dance but they would mess it up and Dave would just look at you and call you stupid

[@princessl.d.g.]

🤣

[@pnwflipper2089]

They could at least start with matching Ramsey track suits!! No reason why that dream couldn’t manifest!

[@ThatLadKit]

John would join in, but be head banging through most of the routine 😂

[@norconster]

I am fortunate that I grew up with parents who were financially literate who taught me everything about finances. At 22, I have zero debt, and I’ve just passed $60k across my retirement accounts and $40k in my car/house fund. I’m on track to surpass $100k in my retirement accounts by age 25 and house fund by age 26 (if I don’t need to buy a car in that time)

[@oneshot1kill158]

Well done, I want to be you,im doing good but not that good

[@mhodge0890]

I wish I was you at 22 😢

[@JayBeezy93]

Shouts out to your parents G

[@perfectlymprfct]

YOU WILL be so rich!❤

[@TyraWright]

You are jamming!

[@Isaiah41.13]

" A human Xanax" hahahhahaha hillarious

[@phelps078q]

Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in last month 2024. .......

[@SmithNatasha-hc7mq]

This seems like the worst period.Even the market are now very unpredictable. Started investing recently when the market prices were a bit high,today I am more than 60% down!

[@JeffreyScott-zg1wj]

Don’t be confuse buying the dip in a bear market, with guaranteed future returns. Just because that company is down 60%+ from ATH does NOT make it a sound long-term investment. Make sure you’re investing in great companies. kudos to Christen wilburn

[@phelps078q]

Christen wilburn was my hope during the 'bear summer' last year. I did so many mistakes but also learned so much from it, and of course from christen wilburn.

[@JohnsonCory-ym3cr9075]

I'm a born christian but sometimes I feel so down of myself because of low finance but I still believe in God.

[@FrancisJob-it2ty]

She is my family' personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA AGENT in the United States.

[@No-sv6mu]

I have no debt besides $40,000 left on my mortgage which we plan on having paid off in 2-3 years. Just in time to take on massive debt as my children get to college age. 😢 We try to be smart with out money (we don't make a ton). We have taken amazing vacations (Scotland, Caribbean, Iceland, Alaska) that I saved for years to pay for. I don't get my hair or nails done. I don't wear makeup. We don't go out to eat. We don't get coffees. But I'm totally willing to go without so my children can play their travel sports and we can have a nice vacation

[@punkbassandcovers]

I can't imagine the dancing you'd do in federal prison if you didn't pay the IRS. Probably not KZbin appropriate 😂

[@thepoynt]

I'm assuming it was in reference to student loans, not taxes :)

[@joeriveracomedy]

Correctly pronouncing "homage" is charming as heck

[@mrsh2167]

George is my liege lord

[@JFLed]

I'll be dancing all of my problems away from now on...

[@That1SupportiveFriend]

I have about $1600 in cc debt and about $400 car loan. I have about $1,000 to my name, my job recently cut my hours from 20 hrs/wk to 8 hrs/wk. I just got a second job starting tomorrow. Luckily for me, about $1,000 of my cc debt is on a single cc that’s 4 months into an 18 month long 0% interest introductory rate period.

[@4X4ish]

Hey, stop being in debt.

[@4X4ish]

Second, work more.

[@Frostavid]

How’s that second job going? You making enough to pay down that smallest debt now?

[@nightbotmike2388]

0:59 starting off with an actually accurate take? I like it! This lady is pretty funny, I gotta say.

[@JustinFromMD]

Here’s the thing with the debt snowball. It’s fine to get a quick win. But I would be hard pressed to see them actually think it’s wise to focus on a $10,000 debt at 3% interest over a $10,050 debt at 30% interest.

[@jomahawk7488]

If those were your ONLY debts, and were THAT CLOSE to each other, they yes, the avalanche makes more sense than the snowball. But that’s a “grown in a lab” example that isn’t indicative of real life. It’s the kind of manufactured “worst case scenario” used by people who just like being contrarians. Kinda like the people who justify abortions by saying “what about a woman who’s the victim of SA, inc*st, was underage AND delivering the baby will kill her?” I’m not saying it doesn’t happen, but it’s the absolute most EXTREME example you can come up with to justify your view.

[@Frostavid]

This wouldn’t happen. 😂 But if it did, I think George would tell you to make one $51 payment to the second debt, then attack it as the smallest debt. 😄 Stop coming up with silly scenarios… the reason that you don’t focus on the rate is because of how quickly you need to be paying down your first smallest debt. With a vengeance!

[@stevenporter863]

12:00 Not all debt is a choice and a result of irresponsibility. Paid off years ago but I had a few thousand in medical credit card debt. The insurance wouldn't cover it and the doctor's office required payment in full on the spot (I know, never heard of that either until that day).

[@michaelgerhardt7130]

Let’s face it, if you buy into debt is bad and can have the discipline to pay it off it really doesn’t matter whether order as long as you do t fall off the wagon.

[@majormushu]

This video reminded me to pay $200 on my credit card. I'm still trying to get myself to put all my money towards debt but it scares me to see a low checking balance.

[@tressalewis7004]

I always enjoy your videos, George! Keep up the good work! Because of you and the other Ramsey personalities, we have become debt-free, and now are saving more towards retirement. Thank you for your words of wisdom. You guys are awesome ❤❤❤

[@flea4061]

Its not how much you make, its when you bought. I learn this early on when I found out that I make three times what all my boomer neighbors make. Would they all be able to buy their million dollar houses today? I doubt it.

[@TripSoul10]

With today being the end of the third quarter, like to see a video on analyzing your numbers at the end of each quarter and how one can make adjustments after analyzing their data and numbers. I have been doing this the past few years and I am certain many more have done it longer.

[@metaltera86]

5:07 insert Lego yoda death sound here

[@BigJohnM]

8:35 - This 100%. Logic out the window and people just go insane on this stuff.

[@sya286]

Avalanche vs snowball requires you to do the math. Excel has templates where you can copy and mess around with numbers. I did highest interest first as well, but it’s because it was credit debt.

[@milagroelguerayllescas9091]

I have a little less than $2500 in credit card debt and I feel like the world is about to end! No savings and $1700 on taxes from last year. I am working two jobs and so far I am doing some baby steps and I don’t use my credit cards for anything. If I don’t have the money I don’t buy it! My credit cards are not gonna be touched until I pay them off completely.

[@Frostavid]

Literally cut the cards up. They are the very thing that got you to the point of feeling this way. Great job working those 2 jobs and grinding to get out from it! If you keep it up, your situation is going to look completely different in 6mo from now. 👏🏻

[@joannaK187]

I paid off 175k in student loan debt. Final payment was earlier this year. It took me five years.

[@Idratherbewithmydog]

Woohoo! Congratulations! Started with 164k and 3 years later I’m at 67k left, hopefully 2 more years to go!

[@DioDiablo702]

Cant dance your debt away, usually, but you can use that energy to not keep yourself down and to help you become debt free.

[@TheThreatenedSwan]

The # 1 thing that would make people buy fewer cars, need less transportation, and use public transportation more would be slashing crime which is something the government is completely against. Australia doesn't have nearly the crime problem of the US, and they still let criminals run roughshod over their cities

[@MaxandRazzle]

But George I did the snow ball and avalanche method at the same time 😂😂

[@nwj03a]

I prefer the avalanche method. Got rid of 4 different 7.7% interest rate student loans, biggest one left is 6.8 and that’s next… and last. Not interested in paying off my 2.2% mortgage quickly. Once student loans are gone, everything goes to investing.

[@JAlexCarney]

Despite what he said, George also wouldn't recommend paying the mortgage first. The "Ramsey Method" always does mortgage debt last.

[@guccithunder6136]

I’m the same way. I prefer Math. I feel like the problem is they think the same behavior can’t apply to the avalanche method which couldn’t be further from the truth. It’s the method I used as well

[@nwj03a]

@JAlex I think you misunderstood me, and I know it is something Kamel did, although I don’t know what his interest rate was on his mortgage. If I could borrow money at 2.2%, and invest it, I would. I would do it as much as I could and as often as I could. I’m not putting a single dime “extra” on a 2.2% loan, mortgage or otherwise.

[@JewishMusicToronto]

9:00 I love this guy's videos.

[@mariejones7332]

As a Jones, I can tell you all that we are not that fancy... there is really nothing to keep up with 😂😂

[@theadm3747]

HUMAN XANAX KILLED ME

[@snowadams696]

Human Xanax 😂😂

[@hardlife507]

@4:00 thats a moce kitchen yiu got there ma'am.

[@cabsyeah]

seeing george dance to joyce rodelo made me subscribe :)

[@ctconstrictors5193]

Human Xanax 😂

[@mrsh2167]

its been so long I don't remember if I used snowball or avalanche. Debt free including mortgage x 9 years

[@LynSarayan]

You are amazing 🤩

[@cade8986]

Income - Ego = Savings

[@TammyMayCormier]

Just bought a car in cash! No debts ever again.

[@dasherofdoors]

I love Tello! We switched a few months back and havent looked back!

[@Frostavid]

Did you have Verizon before? I’m in an area that has decent coverage of Verizon towers, but AT&T is terrible. I’m wondering which towers Tello uses…

[@dasherofdoors]

@@Frostavid no, I had T-Mobile. Since they run off of the same towers, I still have issues in the same spots that I used to have them in, but for cheaper ;)

[@Frostavid]

@@dasherofdoors Thanks for the info! I don’t know anyone near me that has T-Mobile, so I’m not sure how coverage would be in my area.

[@tessjune88]

George!!!! This video was too short.

[@Frostavid]

Always leaves you wanting more… like a true pro. 💪🏼

[@Shoutinthewind]

$1341 left on a car loan that I should be able to pay off in 2 months and then I’ll be completely debt free! I’m so close I can taste it!

[@Frostavid]

Congrats! 🔥🔥🔥

[@michaelgerhardt7130]

“You have to go to your business bank account”…..well how much is in that account?

[@Veganisbadhunter-wx5nt]

Tik Tok is my #1 resource for solid financial advice.

[@azteca6695]

The last one, they got out of debt. BUT it's still not good enough. It HAS to be done the Ramsey way.

[@toddyoung913]

From a psychological perspective he is right from a fiscal and logical perspective she is 100% right youvwill get rid of all your debt quicker if you start with the highest interest rate first.

[@ToastbackWhale]

“Nobody is going to want to borrow for a depreciating asset” I get that car loans are bad but sometimes my dude a car loan is the difference between a job and no job. I’ve never really gotten this particular line of reasoning. I don’t buy a car hoping that it appreciates, I buy a car because I need to be places.

[@xalin73]

I personally enjoy living paycheck to paycheck. The alternative is to die between paychecks and that would be no fun at all.... Oh that is not what you meant by that term. OOPS!

[@zeesworld3371]

I got news for the First Lady in the reel.. someone of us actully work our ass off 14-16 hr shift to make what we make n spend.. not all are swiping credit have reach parents ..

[@janise01]

She said there are some who are really earning that type of money. That doesn't change the overall message that we don't know what's going on with other people so shouldn't compare nor change the fact most people are going into debt to keep up appearances.

[@cookinthekitchen]

The Jones' certainly don't seem broke but you still don't have to keep up

[@CallsignEskimo-l3o]

Chris Kohler is the son of OG Australian finance journalist Alan Kohler.

[@donaldrichey3318]

Toe the line on the snowball method. I used the avalanche method and am debt free. Snowball method isn’t faster.

[@mcephas6982]

Yeah, they don't care about what's theoretically faster or less expensive. They care about what is more likely to get real world results and keep people motivated to continue. Theoretically if you want to lose weight faster you could just not eat any food at all for a month, but not very many will stick to that kind of a diet.

[@MoneyMadeSimpleForFamilies]

The lack of ability of George to even consider an idea a slightly different than his always surprise me. The guy is in a cult

[@inthedarkwoods2022]

Debt Avalance method does work better mathematically then "debt snowball"

[@tonycrabtree3416]

thank you, captain obvious. The snowball does better at retraining behaviors.

[@arh1234]

Studies show that people are more likely to actually succeed with snowball. Psychology matters.

[@inthedarkwoods2022]

@@arh1234 Show me the actual study

[@4X4ish]

Credit cards should be illegal.

[@Nitrousbird]

If you can get your act together, Avalanche is the smarter way to go. You will be out of debt quicker...assuming you get your act together.

[@Allthecrazythings87]

Honestly in the end I’ve kind of just decided to go with a combination of avalanche and snow ball. Especially when i got two debts that are very similar in value… i’ll pick the one with higher interest. But if its a very large debt with a smaller interest rate, I might just let that one go to the back of the line. Like i just paid off a loan that took a few thousand… with a 9% interest and a monthly payment of $230. I prioritized that over the couple hundred left i got with my son’e medical bill thats on a zero interest payment plan of $30 a month. 100% i took the bigger one off our backs. The interest bleeds us… the zero interest medical bill… not so much. Plus freeing up $230 from the budget vs just $30. I think that works for us. But I 100% get it. Its about getting your head out of that debt frame of mind… but if you’re solid on that… I think its fine to pick and choose so long as you know what you’re doing. Dave ramsay takes a very alcoholics anonymous mentality towards debt. If you were a debtaholic… then not even one. But not everyone who has drank is an alcoholic and not everyone who has stupidly gotten into debt when they were younger is a debtaholic either. You just grow up… and have one at parties maybe. Because you finally understand the consequences. You know your limit. But dave ramsay doesnt say customize it based on how you feel cuz thats really not going to work to push the importance of zero debt. So I get that. Im still going to kind of customize it for myself and my family’s needs. I guess im a rebel like that.

[@janise01]

Becca is right. Yeah bad money habits got people into debt. That's true regardless of the method used to pay it off. It's also true you have to change those bad habits to make progress regardless of the method. So as far as prior lack of discipline and current/future need for discipline snowball and avalanche are equal. Therefore, we have to look at what's left to differentiate and the difference is paying more with snowball vs paying less with avalanche. Also just as an aside I really hate when George, or any Ramsey personality, acts like something is mutually exclusive in order to justify a stance that doesn't totally make sense. I'd get, and got, as much of a sense of momentum (actually more) seeing a high interest debt balance get significantly lower and seeing the finish line as I did with seeing a small debt get paid.

[@suzukiman8964]

I bought my used cars in cash 💸 not the cheap 6 to 7k, I bought bought my mazdas used first was 14k and the cx5 I bought was 25k

[@oboe23able]

What kind of phone case is that?

[@kylewhaley6959]

an 09 civic with 110k miles is like 12k+ now. My wife and I are saving up to buy a new car because it's more cost effective than buying used at the moment. We're still not getting a loan for it but I feel for everyone trying to get out of debt and getting a reliable car right now.

[@bribradt3450]

I haven't bothered to check, but I wonder if car prices vary from state to state in the US? I got an 07 mazda6 with 115k for 5500 (from a used car dealership) not that long ago. But I also live in a pretty low cost of living area compared to the national average

[@Arnold001-1]

The way you guys explain “income - expenses = 0” can be confusing to someone who doesn’t know the baby steps and the budgeting methodology you guys use. It makes it seem you have to spend everything you make to make sure you get to 0. You should explain that the part of “expenses” includes money you allocate/set aside towards saving (once you’re done with baby step 2). You guys should explain that in a better way.

[@arh1234]

At 5:00 he says that every dollar gets a job, and the job should be getting you out of debt. I agree that "income minus expenses = 0" is confusing.

[@arthrodea]

I agree with you. Although I think for many people income - expenses= some negative number that’s debt put on credit card ! So just getting to zero would be a start!

[@Sylvelourie]

Snowball vs avalanche is a matter of situation, if you ask me. If you have lots of little debts or you're having trouble getting started, snowball is a good way to go. If you have giant interest rates slowing down your progress, you're very motivated and/or the idea of paying more interest makes you sick, you might want to consider avalanche. Personally, I used a combination of both. Snowball early on to eliminate smaller student loan debts, then avalanche as I moved to my bigger ones (while still carrying over the snowball, of course). It's an emotional approach vs. a mathematical approach (but it's also very true that debt is usually a very emotionally charged problem).

[@brandonking1737]

Surely the snowball method would cause discouragement towards the end when you're stuck with one huge debt that is barely moving compared to your previous debts. I cannot imagine how that can be less discouraging than seeing the total balance slowly drain down then exponentially speed up as the average interest rate drops

[@Frostavid]

By the time you get to your last debt, as huge as it might be, your motivation from small successes has turned to rage. It’s like the sprint at the end of a long race. You made it this far and there is NO way you’re going to let this thing beat you at this point. On top of having the payments of those smaller debts to put on it, most people are even more motivated, by this point, to sell anything that isn’t bolted down or grind harder on side gigs. Your theory about discouragement misses what actually happens in your brain when you see that light at the end of the tunnel getting closer… source: been there done that. It’s worth it.

[@jcrandall8924]

@@Frostavid Totally agree. Plus, when all you have left is the last big debt, you have no other little nagging debts taking your money every month. So you have more money to be able to fuel that rage with to pay down the big debt even faster. Win-win!

[@hockeyhalod]

Coolrichaunt pretends to be like a normal person that is broke but can casually take money out of a business account.. Sympathy farm?

[@jcmphreek]

Avalanche is mathematically infinitely better than snowball

[@williamcain3074]

True, however his point is few people follow through and still to it. If you got yourself in that position due to poor financial management I can't see the majority sticking to that plan with no wins in between.

[@Trackpad12]

It’s not a math problem… how many times we have to say it?

[@TheRonnieBlueEyes]

It’s very weird to me how Ramsey people are so obsessed with the snowball method. They act like of you don’t do it that way you’ll never get out of debt.

[@mcephas6982]

They really don't. They just find that it works best for keeping people motivated and on track.

[@jonant8317]

statistically avalanche >snowball snowball is for weak willed people who need motivation and encouragement I said it.... come at me.

[@treyedean]

00:05:14 - Jason, 87,000 new IRIS agents would like to have a word with you.