My 6 Biggest (Controversial) Financial Mistakes

[@raisingwildflowers]

What has been your biggest financial mistake?

[@harmony6702]

Student loans!

[@kimsmith6469]

Having kids..

[@omodara6542]

Having a retail pharmacy

[@frugaled5187]

Buying a timeshare

[@raisingwildflowers]

@kimsmith6469 You're not wrong lol

[@maltesemom9750]

We paid off our mortgage in 10 years, and now have over 3,000 more in our pocket every month. This was the second house we paid off, with NO REGRETS

[@MP77USA]

What she’s talking about is what my father used to call “cheap money”. If you noticed, she said she could have had that money MAKING money instead of tied up in her home value. Not that she was living paycheck to paycheck scraping out money for a mortgage and could’ve done that. She BOUGHT her house with cash. She noted if she’d kept that money out and invested in a 6% earning acct - and only been paying 3% on borrowing cheap money on a mortgage - she’d have MADE money. If you’re not able to invest in say, index funds for at least 10 years, you’re not getting what she’s suggesting. She HAD the money - tied up in her home vs earning 3%! Very simple but you have to HAVE the money initially. You’re talking apples and oranges. Yes it’s nice to pay off a low interest mortgage. She never said not to 😂 - she said don’t pay cash outright IF INTEREST RATES ARE LOW. Better to put down big downpayment and in est remaining in more liquid higher yielding investment.

[@MrsRight2020]

Exactly, having a mortgage will put you in a situation where you need much higher home insurance and other things. If you cash out you can manage on your own. Especially in Florida a lot of home owners don't have insurance it's useless. Natural disasters are not covered by insurance and if anything happens seriously, then the government helps from tax money for people in affected areas. So I can't agree on this video

[@MP77USA]

@@MrsRight2020that right there. “Manage on your own.” And how will you manage on your own when the majority of your assets go up in smoke and splinters from an act of God? Then you’re in even even worse financial straits than if you had some invested and tucked away. Diversification people. Y’all are never gonna get out of your slums because of the way you think about money; you need to read some books on psychology of money. Do you really think that YOU’RE the one that’s going to reinvent the wheel and you don’t need home insurance? That no one else with more financial education, smarts, and experience considered paying off their home? You don’t think there’s a reason they don’t do that? 🙄😑😒 you’re gonna do what you want but you’re not even listening to what this lady is saying. Put all your eggs in one basket. Don’t have your money make money. Don’t diversify! Don’t carry homeowners insurance (where it’s possibly feasible). Go on with your bad self.🍿🍿🍿

[@MrsRight2020]

@@MP77USA ok so remember few years ago huge fire in California, there is no insurance willing to jump and help. The government helps people in situations like that. That being said people lived without insurance many years ago and they will still live. Everything you see now is about to collapse my friend.

[@Mark-if1yu]

Very good it's managing your money she could have invested the money she would have paid in mortgage payments per month. While getting 8%-12% return is nice. It's kind of the same thing buying your home cash and investing the monthly mortgage payment you get the stock appreciation and home appreciation.

[@esteeb42]

My son went to Community College and got certification in aircraft fabrication...the cost was very minimal and he now works as a supervisor for a well known company, Northropp Grumman making good money. My daughter did the same, went to Community College and with minimal fees and certifications has a great job.

[@raisingwildflowers]

Community college is definitely the way to go if you decide college is the best plan!

[@Besotted85]

And did the dude who created college go to college?

[@greenerpastures1000]

@@Besotted85 Good point..probably not

[@notyet2345]

My cousin was a plumber.....made over 100k which included money he made from side jobs. Having a trade such as plumbing, electrical etc are skills that will always make you money and never get replaced.

[@thequeenofwitches7943]

​@@raisingwildflowersIm a vegan as well. Just found your channel. From Sarasota Florida❤

[@heathergardner5001]

Downsizing and paying for our home cash was the wisest thing we ever did. You NEVER know what life may throw your way that may make paying a mortgage difficult. That peace of mind is PRICELESS.

[@MP77USA]

I’ll repost what I said above: she’s talking about MAKING money with your money people. You can’t be in dire financial straits and work with money as she’s trying to teach you: What she’s talking about out is what my father used to call “cheap money”. If you noticed, she said she could have had that money MAKING money instead of tied up in her home value. Not that she was living paycheck to paycheck scraping out money for a mortgage and could’ve done that. She BOUGHT her house with cash. She noted if she’d kept that money out and invested in a 6% earning acct - and only been paying 3% on borrowing cheap money on a mortgage - she’d have MADE money. If you’re not able to invest in say, index funds for at least 10 years, you’re not getting what she’s suggesting. She HAD the money - tied up in her home vs earning 3%! Very simple but you have to HAVE the money initially. You’re talking apples and oranges. Yes it’s nice to pay off a low interest mortgage. She never said not to 😂 - she said don’t pay cash outright IF INTEREST RATES ARE LOW. Better to put down big downpayment and invest remaining in more liquid higher yielding investment. Another note: if something were to happen to you that is an emergency and you’re unable to pay for your home - you’re also likely unable to care for it, make utilities and tax payments, annnd another point she makes is it extremely illiquid! It is very difficult to liquidate a house if you are in an emergency and your money is all tied up in that. I don’t get how you people aren’t seeing what she’s saying. 🤷‍♀️

[@BumpNrun69]

@@MP77USA " IF INTEREST RATES ARE LOW.." 😂😂😂🤣

[@MP77USA]

@@BumpNrun69yes, dear. If your good credit allows you to get a better qualifying rate on a mortgage, and your liquid money invested makes more than you’re paying for borrowing... 💡 Pretty basic math. You people that are so bad with money get so caught up in what you perceive to be the snootiness and unattainability of it. Keep thinking that way. Keep thinking poor. Keep thinking you’re different. Keep thinking it’s all unfair. No skin off my back. 😉

[@NeilFinicum]

I have 2 adult sons. 1 got a full ride in college and is doing cool stuff like writing a program for nasa satellites. The other became a plumber and makes WAY more.

[@GrannyLinn]

Good job!

[@DrLusEnglish]

😂

[@maryalbert6138]

The trades are a great way to make a great income!

[@gettingjamieback1888]

Yes. Trade schools are the way to go right now

[@rachelcrossen8136]

As long as they both like what they are doing then great

[@Frannieville]

Paying off house 2-3 years after I bought it was the best thing I ever did. It gave me a lot more money from my paycheck to save/invest. When I moved I had a property manager and the rental from the house gave me a bit more monthly income. I’m not considering my house an investment but a place to live when I’m down and out.

[@Wewereneveryoung]

I LOVE THIS!! Just bought a home and I plan to pay it off in 5 years! And do the same as you 🙂

[@Batirtze-b6x]

A single mother with a paid off house???? You are amazing. 🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉

[@terriann3031]

Isn't she married?

[@maltesemom9750]

We grew up with my mother drilling into our heads, if and when you use a credit card, you make purchases with the knowledge that you know you will have the ENTIRE balance paid off when the statement comes, and that's what I've always done. Also, my mom told all us girls to make sure to get a Credit card in your name only. Even when your married, always have a Credit card in just your name. So, we did!!

[@elterrifico9522]

No one cares

[@chellebelle1970]

that confuses me: if you have the $ to pay off the whole thing then you have the $ to pay cash for it-what’s the purpose of putting on a credit card

[@maltesemom9750]

@RyG0213 To establish credit, not to mention it is averaged into your FICO score. You pay off your cards monthly, and the higher your FICO score is. You need a history of credit. Also, with most credit cards, you get cash back on purchases you would have made anyway, i.e., bills, food, and gas.

[@vallang4832]

Smart mother.

[@MP77USA]

I wish more people knew what my brother recently found out and I can’t believe he didn’t know: when you’re married unless you have a very legally filed, formal prenuptial agreement, all debt, no matter how big or small is equally shared. It doesn’t matter if it’s in just your name or not if your spouse bows out on that it will affect your credit, and you will be responsible for it. please share that with more people.

[@mightystorm9688]

My degree was the best financial decision I ever made. It was not only a requirement for my profession, but it gave me a very broad area of knowledge that is useful in my daily life. You should check if the University has a placement service and work with the counselors there to see where both the current and future career demand may be. A degree is a foot in the door, once in, you have to work and prove your worth. Congrats to you for owning your home.

[@budgetwithfatima6530]

I never went to college neither did my 5 kids we have made sooo much money 💴 I have a small business and my younger sons are doing the same business to all my kids are doing well thank god . This man Dave Ramsey is crazy without credit you can’t do anything in life .

[@Snappypantsdance]

I have to offer a different perspective on the house point. You could have also lost money on an investment that you made instead of putting the money in the house. Also, the 3% interest on your loan isn’t a flat 3% fee over time. It is most likely front loaded at the beginning of the loan. You’d have to have looked at your terms and used an amortization schedule to figure out what your real % rate you would have been paying was. I just think it isn’t as cut and dried as you think it was and you may have actually done better doing what you did. It’s somewhat individual on this one.

[@carolinagirlhair948]

Remember that when you take a mortgage you pay the bank first the biggest portion goes to the bank in the beginning and then later down the road you pay toward the principal later...so you did make right decision...all you need to do now is go get an equity line not a loan and that will get you all through until the house sells

[@Ejthomp63]

This is completely wrong. You don’t understand mortgages and interest calculations.

[@carolinagirlhair948]

Well I don't have to understand it...all I have to do is look at my .mortgage statement every month and see that for the first five years at least the bank gets the biggest portion and the principal gets the smallest portion which is me and you can't debate that because it's true. I paid off two houses in my lifetime on my schedule not the banks schedule.

[@desertfamilyhomestead3127]

@@Ejthomp63any time you get a loan the first few years(depending on the term of the loan) your payments apply to the interest first(largest portion) and you will see a smaller amount applied to the principal(amount you actually borrowed) on each statement. It isn’t until later in the loan that you actually start to see a difference in your balance because you aren’t paying much in interest any longer because the bank has already collected it. The bank makes sure they get the extra first and foremost. Any financial advisor who knows what they are doing will tell you the exact same thing. This is why you don’t really start building equity in a house until year 5-6 unless the housing market goes up.

[@desertfamilyhomestead3127]

@@carolinagirlhair948you understand it just fine.

[@carolinagirlhair948]

Thank you desert family homestead...I do understand it I just thought he wanted to seem smarter than anyone else.

[@carolined3058]

Buying cheap doesn't equal beeing frugal. Beeing carefull with your money and make good quality purchases are frugal habits.

[@delphinehamilton8118]

Being frugal is buying quality. You get things that is going to last. It is not the same as cheap. I am a frugal person. I have so much by being frugal. ❤❤

[@barbarahughes6009]

My degree was in Philosophy which was not helpful in getting a job but it changed my way of thinking entirely and I believe enabled me to be very successful.I’ve never regretted it for a moment.

[@raisingwildflowers]

Oh, Philosophy is nice! I appreciate my Developmental Psych degree, just not from a financial aspect 😅 It makes me a better parent 100% … and helps me understand humans a bit better 😂

[@rachelcrossen8136]

@@raisingwildflowersbut it was your choice not to use your degree. You could definitely have earned more money had you make different career choices.

[@raisingwildflowers]

@@rachelcrossen8136 I didn’t use my degree so I shouldn’t have gotten one. That is why it was a financial mistake.

[@PInk77W1]

I’ve heard a lot of people mock philosophy degree. I think is the coolest thing ever. But I’m a high school dropout. LoL

[@treatzfortruckerz3913]

Like her advice.

[@Deva-no3dn]

Paying off a house is never a mistake. Being debt free across the board is never a mistake. Debt is a ball and chain that takes away your freedom and your choices. Taking out a school loan if you have a specific career in mind and plan to pursue that with a degree is the only reason to go into debt. If you're just going to college to wander on through and get any old degree, save your money.

[@MP77USA]

I’ll repost what I said above: she’s talking about MAKING money with your money people. You can’t be in dire financial straits and work with money as she’s trying to teach you: What she’s talking about out is what my father used to call “cheap money”. If you noticed, she said she could have had that money MAKING money instead of tied up in her home value. Not that she was living paycheck to paycheck scraping out money for a mortgage and could’ve done that. She BOUGHT her house with cash. She noted if she’d kept that money out and invested in a 6% earning acct - and only been paying 3% on borrowing cheap money on a mortgage - she’d have MADE money. If you’re not able to invest in say, index funds for at least 10 years, you’re not getting what she’s suggesting. She HAD the money - tied up in her home vs earning 3%! Very simple but you have to HAVE the money initially. You’re talking apples and oranges. Yes it’s nice to pay off a low interest mortgage. She never said not to 😂 - she said don’t pay cash outright IF INTEREST RATES ARE LOW. Better to put down big downpayment and invest remaining in more liquid higher yielding investment. Another note: if something were to happen to you that is an emergency and you’re unable to pay for your home - you’re also likely unable to care for it, make utilities and tax payments, annnd another point she makes is it extremely illiquid! It is very difficult to liquidate a house if you are in an emergency and your money is all tied up in that. I don’t get how you people aren’t seeing what she’s saying. 🤷‍♀️

[@MP77USA]

AGAIN she never said keep debt forever she said she wish she’d earned more money ON her money with smart investing. 🙄🙄🙄🙄🙄 do you people not understand that she was saying she would keep the investment money liquid in case something did happen. She could’ve paid off that mortgage in a snap. Ugh.

[@larryohagan3322]

No position iin all situations is always 100% correct .In 1982 yr I had foolishly paid off my 8 3/4 mortgage which represented more than half the properties value.Than I decided to worsen the outcome by listing the property to sell when the current mortgages were at 12%. So there was my apt condo for sale competing with 5 others in the same building that had 8 3/4 assumable mortgages. I was forced to substantially lower the sale price to obtain any interest and sell.

[@blackbart5803]

The big thing about owning a house outright is that it's very hard to lose it in economic downturns. So long as you can pay the taxes and upkeep, you have a place to live. And when you get older, you can reverse mortgage and make it pay you.

[@notyet2345]

Exactly.

[@1981lashlarue]

Reverse mortgages are a terrible idea. It's a debt and it uses up the equity in your home.

[@notyet2345]

@@1981lashlarue reverse mortgages have their place. They are perfect for someone like me who doesn’t have kids and won’t be leaving the house to anyone. A reverse mortgage is my nuclear option in the event I outlive my retirement accounts. Although it is a loan, you don’t have to make monthly payments on the loan except property taxes until you leave the home. In my case if I died, the bank would just take the home as I do not plan on leaving it to any heirs.

[@FourHuskyHomestead]

I don’t recommend reverse mortgages.

[@FourHuskyHomestead]

@@notyet2345could you leave it to a church or charity of your choice. I know the church in general would care for an aging member and see after her and the home if you would leave it to a church. If I didn’t have any relatives to leave it to I would definitely look at making it a gift to a church. And maybe in return you could work out a deal where the church could pay the taxes and maybe get you to dr appointment. Or bring you meals. A sweet deal between a home owner to a church I see if a good option. The government takes enough from us as it is.

[@eattherich9215]

I would advise your children to get vocational training in the manual trades - plumber/electrician/construction. They are always in demand and can set their own rates of pay.

[@mtngrl5859]

About 6 years ago, I needed to upgrade my electrical panel since I had bought a top of the line hot tub. Electrician came out and within about 3 hours, I cut him a check for $700. Recently a client hired an electrician, its $350/hr for the first 2 hours, then its $150/hr for each hour after that. Yes, one does have an apprenticeship but one can make serious money

[@kathybailey1821]

Love the video and your thoughts. I purchased way too much stuff over the years before realizing it was robbing my peace. Thank you.

[@sallyprzybil2404]

My biggest mistake was not saving enough for myself for retirement when I was younger. I spent most of the money I earned on my children and grandchildren. Yes, I want to help them succeed, and that’s a good thing. But now that retirement is here my finances for my own retirement are very tight. The kids are off having their own lives, which is natural at their age, but now I’m going to have a less than desirable retirement. And because I worked so hard, and so many stressful hours, my health has been adversely affected. Also have been a single mom most of my life

[@anoodono1841]

Lesson learned and shld b passed on t other single moms that read this i hope!

[@desertfamilyhomestead3127]

Look at it as an investment in your children and grandchildren

[@Nopeagsin]

Yikes. Taking this advice.

[@annsaeli7583]

My biggest financial mistake was going from one paid-off house to a more expensive one that needed another mortgage and I did it TWICE.

[@MP77USA]

In my experience in the real estate and interior design world, it is only intelligent to upgrade into a more expensive home if when you’ve lived there for a few years, the mortgage, sweat equity, and labor and materials costs will be amplified into a greater amount. Beware though - cheaper, smaller homes can actually lose value depending on their location and upkeep. So for some, it may be a big mistake, but if you play your cards right, it’s actually one of the most solid investments and financial improvements you can make. Without a lot of risk. And and we can all attest that for most people we spend a lot of time in our homes, and the quality and house proud factor can change our lives. To each his own.

[@WhatDadIsUpTo]

Can Opener 😂 I'm autistic and have always been enamored by rotating mechanical contrivences. When I was about 4 years old, I loved to watch my grandfather use a wall-mounted canopener to open cans of cat food to feed his barn cats. I loved it so much, he (?) Someone at least, bought one for me. I'm 75 and that same can opener hangs in my kitchen to this very day and I'm still enamored by its rotating cutter wheels and crank.

[@ragdollpreppers2648]

@@WhatDadIsUpTo 💗💗💗

[@sha2596]

I hate 2 degrees, use both for my job, and my employer paid for the second one. No regrets. I’ve paid off my student loans and have definitely benefited from my degrees.

[@sergioblanco4504]

Paying off the house was the best decision. You not only reduced risk but freed up cash flow. CF alone will allow you to save up that same money fast and not have to worry about anyone taking away your home. The 1k emergency fund that Ramsey teaches is to get your foot in the door, it’s psychological, not that you’re going to be able to cover all your expenses with the 1k. Good luck!

[@allthingsnu4673]

I've made many mistakes over the years but they've all made me who I am today. If I had to pick something, it would be that I should been more serious about my potential as I was graduating high school and picked a field of college study that I probably would have done very well in like civil engineering. Instead, I was unfocused, uninterested, and followed my older sister into office work. After years of doing that, at the age of 40 I went to college and got a bachelors in business administration just so I could move into a different position at my then job. I really didn't like business much and eventually retired early but I am still paying off the student loans.

[@sandrabryan9106]

When my grand daughter wanted to go to New York or Paris to attend University, I suggested she do an online free course first through Coursera. Even though I love my grand children, I suggested this because I didn't think she had the discipline to complete it...she did not. This way she tested the water before spending money. In Canada, even applying for a rental unit they will do a credit check and bad debt can impact certain employment such as being a paralegal. Sometimes I will buy an annual city attraction passport book that allows me to get into local venues or provide transportation for free or heavily discounted. Most major cities have them. Good video!

[@cherylT321]

What did your granddaughter end up doing after that?

[@lauradalenberg3755]

About paying cash for your house, maybe you could have earned more depending how you invested it but only if you did everything right. The temptation is if you have funds liquid they’re much easier to spend. So having all your equity in the house is good in some ways but hopefully it will sell soon.

[@frankrusso2093]

The biggest mistake is chasing 5 star school districts for your kids. There is no difference between high rated schools and low rated schools for most part as long as the district is safe. I would venture to say that those 5 star districts are worse! Those high rated districts will bleed your wallet from high taxes, high housing costs, and your kids and yourself will have to keep up with the Jones'. Everything else is just simple discipline; always live below your means and use common sense when making purchases, always asking yourself, do I need this or do I want this.

[@teresawilson1850]

I agree that $1k is not enough. I think the bare minimum fora starter emergency fund should be 1 month worth of expenses.

[@Spot4art]

6 months to 1 year is an essential emergency fund today.

[@summerjoy247]

I think the $1k EF is a great way to get people who’ve never saved to see that it’s possible. My parents (and most people I knew) did not save a penny growing up so that was a foreign concept to me as a young adult. One year I finally saved up $500 while working PT in college and it felt so good. I do like the idea of saving 1 months of expenses though. DR should definitely consider updating Baby Step 1 to that 😊

[@megalodon1726]

The $1000 is a big one-size-fits-all myth. $1000 for a 22 year old living rent-free with parents, and the same $1000 for a family of 6 with a big mortgage? Ramsey is alone with this $1000 thing. Other financial experts will say something like 1 month of expenses, not a blanket $1000 for everybody.

[@1981lashlarue]

@@megalodon1726 It's just a starter emergency fund. It's so you have something for emergencies while you get other areas of your finances under control. Ramsey teaches to have a fully stocked emergency fund of six months of expenses.

[@megalodon1726]

@@1981lashlarue it's not a starter fund, it's a stopper fund. Because he says you're supposed to *stop* adding to the $1000 until all debt is paid off (except the mortgage). It doesn't work, because most people will deviate from it by saving more than $1000 before paying off all their debt, or using credit cards or other borrowing for emergencies that cost more than $1000.

[@maryrenaud6732]

I think the paid off house issue depends to a great extent on your age and life cycle phase. We are retired and paid cash for our condo. No mortgage gives us a lower base cost to our housing overhead and we can actually save/invest money or travel. We were in our late 50’s still working when we bought the vacation condo, then in a couple of years my husband had an unexpected serious illness; we moved to the low cost/low overhead condo which saved our family when we had huge medical bills. We never worried about foreclosure or becoming homeless, unlike many seniors. I also know seniors in their 80’s here who still have a mortgage and a car loan…definitely not for us. A good goal is to have housing fully paid off by age 55.

[@annhopkin5079]

Excellent point about saving 3 months of expenses and then tackling debt!!!

[@katiekateshomestead]

Great video and I live within my means also. I think it's good to have paid cash for your house bc although you don't have liquid access, you saved tens of thousands of dollars in interest I suspect. I paid $20+K interest every year on a $300K mortgage from 2007. When I sold, I paid cash for my new property and I don't regret it, especially considering the crazy interest rates right now! PS also a single mom!

[@travelnurseadventures3225]

exactly--the interest alone one could have 2 homes 😵‍💫

[@notyet2345]

People don't factor in the interest. If I had taken the entire 30 yrs to pay my mortgage even with a low interest rate, I would of pay back close to 200k in interest. Imagine if all that money had been invested instead. In addition people seem to think the only way to pay off a mortgage is to stop investing. There are so many ways to pay off a mortgage and still invest at the same time.

[@notyet2345]

I paid cash for a new home as well. The absolute best decision I ever made. I was able to retire early because of it.

[@summerjoy247]

Oh so you’re saying the interest you pay over the 30 year mortgage would’ve been higher than what you could’ve made by investing that money in stocks/mutual funds. It would be interesting to see a cost analysis on this lol i imagine there are other factors like inflation and taxes etc idk

[@katiekateshomestead]

@@summerjoy247 Yes. Also, I like not being in the risk pool with mortgage rates! Inflation can derail investments and a home is an asset you can count on. When I do the math I paid an average of $20K in interest over 15 years. That's $300K gone in interest!

[@darleneatkinson3906]

Raising Wildflowers, This is one of my first time watching your video, I am 66 years of age, and once you realize each individual really have different financial situations you only listen to what best for you and what you need in your life I started out in the 1970's did not know about any financial advice so I bought a house with zero down the owner loan me the money I had 2 credit cards no children never married and I owed on a vehicle but it was only me so I did my life so different than what I listen to on KZbin but there usually away provided just from living life I use to have 6 credit cards they sent them to my house I had loan on with owner and I fill out application and in 10 business days a new card show up I charge stuff on it I used bank cards to pay for my life it all turn out for me today I got everything paid off and have between 760 to 805 credit score and I keep getting credit card approval but I do not need the cards so much at my age so, no matter what people choice it seems to turn out. Hope things go super great for you, and I think you are brave to upload videos. Thanks for sharing.

[@michellem8284]

Years ago, I pulled a significant amount from my 401K for a down payment on a car. This put my income over the threshold for receiving federal aid for my college-aged daughter. If I had known, I would have waited for the car.

[@theropesofrenovation9352]

I had to go to college if a wanted a BS in Nursing but can agree college is not for everyone. We need more apprenticeships and vocational schools!!

[@judimantos904]

I recently saw a video about the German school system. Apparently by the time a child reaches high school, the school system dictates who goes to college and who will go to trade school. College is free! I agree with you that more trade schools are needed as the cost of college has been prohibitive.

[@travelnurseadventures3225]

nope, you can get an associates RN-NO BSN required and you can start working asap

[@EmmaHope88]

@@judimantos904 In Germany, it is a lot more flexible now, then when I graduated school. Nowadays, you can still attend college later if you want to, even if you didn't attend the type of school that leads straight to university. You just have to fulfill some requirements, usually finished trade school and maybe a year of full-time work. (That's what my brother-in-law did.) That used to be much harder to accomplish ten plus years ago, because they didn't just let you do that after trade school unless you went back to (adult) school to finish some extra years of regular schooling first, and then they'd let you attend college after. In the US, all kids attend the same school. In Germany, we are divided up after fourth or sixth grade, depending on the state you live in. If you work hard enough and your grades improve, you can switch from one school to the other after tenth grade. (The school that leads to trade school ends after tenth grade.) You have AP glasses and such I suppose - for those students who do better. We just have different schools altogether. Did the video also mention that trade school takes an average of three years to complete? It takes about as much times as your average Bachelor's degree. You don't save time, unless you attended the type of school that leads straight to university then you can often, but not always, shorten your three year apprenticeship down to two. That's what my brother did. You don't pay for trade school, unless it's a private one, you usually do get paid, not a regular wage, mind you. It's an apprentice wage.

[@joculp-yq3qh]

My daughter acquired her ADN in 1999. She has worked for the same employer for 25 years, and just acquired her BSN after her sons were grown. This doesn’t include several certifications that she has earned. So proud of her!

[@theropesofrenovation9352]

@@joculp-yq3qh Awesome!!

[@WalkingandTalkingAussieGirl]

don't forget the prices of US college/university degrees is astronomical compared to a lot of other countries across the world!

[@kathyann9643]

I agree with all of your points. Life is more than the sum of the money you can accumulate.

[@siobhanod]

Biggest mistake is not thinking about finances until late 20s and playing catch up now

[@danafox233]

You comment on your regret for getting your college degree is interesting. While I do agree they are expensive, choosing instate colleges can help control costs. The earlier in life you get your degree will also give you more options later in life and no one can take it away from you. I love your channel; it’s amazing what you and your family achieve on such limited income. It’s really opening my eyes and giving me a great perspective. Keep it up!

[@BrentsTreehouse]

Owning your home outright, you don't have to be scammed by exorbitant home insurance costs. I own outright and self-insure in Florida, and that saves thousands. I agree that with hindsight, getting a 30-year 2% mortgage would have been a good move, but hindsight is 20/20. Can never know the future. Also, if rates get really low again, you can mortgage a fully paid house.

[@ClairenParkerontheRoad]

My biggest financial mistake was going to grad school. Even though I don't have debt I lost time and earnings from the experience.

[@johnk5825]

College is the biggest scam going on right now. I have a degree, and it did open doors that were shut. I learned everything about my job from on the job training. Should be more of that and less college.

[@cruise799]

My college degree was the best financial decision I ever made hands down.

[@angiewolf8189]

Same here. I didn't go into debt, cash flowed my schooling. My choice to use my education has rewarded me greatly.

[@Kittylunacat]

Same! I’ll never trade my college experience for anything else. It made me a much well rounded person and allowed me to make so many friends from different backgrounds. But I guess also it depends on the area that you study, to become therapist, a master’s degree is a must in the US, so I think it’s worth it for me.

[@judyholliday217]

I totally agree. I am now retired with a pension because I went to college. I worked full time and went to school full time to be able to not have debt.

[@abiyah3176]

Mine too, however degrees aren’t paying for themselves anymore, and a degree is crazy expensive now. It’s $100k+ for state schools. Some of these kids are leaving college with $200k+ in debt.

[@notyet2345]

My degree was in Information Technology.......it definitely paid off. I worked in IT and retired early.

[@juststoppingby390]

My kids did vocational college. My son an electrician my daughter an office admin manager. Neither owe a penny to anyone

[@nt6719]

I agree that many college degrees aren't worth it now. I'm older than you are and I have a dual degree. I've used both of them. One of them I didn't need for what I did but it helped me understand things better. The other one I needed to get my foot in the door and get promotions and later other jobs.

[@bobroberts2217]

100%. I think it should be necessary for colleges to divulge what the average pay of the college degree will be. If you’re paying more than you are receiving down the road, then it’s not worth it.

[@rachelcrossen8136]

@@bobroberts2217you can and should research this

[@Fact-Files-Politics-Unpacked]

my biggest financial mistake was buying a new car. It was well-researched, economy model Toyota, but with a fair credit score, a low end of moderate income, student loans, other debt, increasing cost of living and the crazy cost of car insurance now, I am paying more for car and insurance than I am for housing. It took me 2.5 years to find housing that I could afford, while I lived with a friend. I just moved into a 2 room apartment. I bought the Toyota corolla because my 21 year old honda accord finally gave out. Love your videos-just discovered them.

[@Sauron110]

Thank you 4 the advise. Bless you.

[@laurab7379]

Great tips! Having a credit card for emergencies is a good idea as you mentioned just to have to use where they don't want cash, hotels and rental cars as your example is very true! You never know when you may have an emergency and need one. My mistake was paying my house off and then being hit with taxes on the money I took from an IRA to do it. It was about $20,000 but if you work it becomes part of your yearly income reported on taxes. I end up paying $4000 to the IRS. I should have waited it out or paid more each month to get it paid off.

[@summerjoy247]

I just use my emergency fund for emergencies. The only time we have issues without having a credit card is getting a rental car. The only company that works w us is Enterprise 😩

[@Boringcountrylife]

100% agree about credit cards. I prefer the security of having our home paid off (since 2016) rather than earning a small bit of interest elsewhere. Now that we are debt free we put 15% toward retirement savings every month.

[@annhopkin5079]

I wouldn't regret getting my degree I'd regret not using it

[@rachelcrossen8136]

Exactly! She had a degree but had always had a low income. That’s a choice

[@pamlaborde105]

I agree with you totally!!!!! I never agreed with some of the things Dave Ramsay says.

[@nancya8201]

For my husband and I going to college is the best financial decision we ever made. Without our degrees we will never be where we are today.

[@elterrifico9522]

And where are you? 🤡

[@seasonalliving2881]

I would assume most substantial jobs require a degree if some sort. I think being smart about getting it…community college, scholarships, etc…can make it worth the investment. I joined the military and got a huge college fund. I basically got paid to go to college. Got to serve my country, have veteran on my resume, and money for college - win, win, win!

[@mim6472]

LOVING YOUR CONTENT! More please

[@shantitakemoto1058]

I agree with the credit score-it really can limit your freedom, and it’s not something that can be quickly and easily fixed a lot of the times. I’ve heard advice saying it’s not important but I’ve personally faced challenges that could have not happened if my score had been higher. I also agree with the credit cards, as long as you don’t let the balance build up. You’re very realistic, great video 😊👍🏼

[@tessramos8828]

Hi Katie 🌻 Sure do miss your blogs and postings . . Hope you’re all doing well 🌟 Merry 🎄 Christmas 🎅

[@lindc1070]

Going to College- depends where you are and what you study. In my part of the world, Singapore, it opened / opens doors to lots more opportunitues and we make a lot more provided you pick the right degree . Also it helps grow your mind, which then helps you do better in many areas of life . My parents paid for my college education so perhaps my situation is different from those who get into debt.

[@ImHavinaHoot]

My adult son took carpentry in high school and now has a nice job with our state parks department with good benefits, a pension, and NO DEBT! Don't sleep on the trades! Thank goodness I own my home - taxes and utilities keep rising, and I wouldn't be able to swing it if I had a mortgage as well. I'm working on my savings and retirement now... 🙏🏼

[@houseonthehill8485]

Money that would be a mortgage becomes savings… Front loaded interest payments for a mortgage is literally burned money never to be seen/realized again… Buy less house for cash to retain sufficient money for cash flowing life and emergencies…. NEVER EVER REGRET keeping your family out of the bondage of debt…. Be blessed and debt free😊

[@thomaschew2191]

I have made literally every financial mistake known to man and recovered but lately I have been making the mistake of watching personal finance youtubes.

[@debbieframpton3857]

Have you considered lowering the price of your house in Florida to get it sold?

[@lettyg964]

Thank you so much for TIP#5-6. I enjoy your videos.

[@hollyroecker9019]

How are things going with fixing up your travel trailer?

[@debt2none]

Everything you said makes total sense to me. 💯 I probably will never pay cash for my house only because I hate the idea of tying up such a large chunk of funds all at once. Paying off a mortgage early is a completely different story.

[@rdavism1]

I started college when our youngest started kindergarten. I completed my Ph.D when she graduated 8th grade without ever taking a student loan, became a university professor and loved my career. It can be done. Student loans are a trap best to avoid. College can be a wonderful opportunity but one has to make wise choices not only about loans but career choices. We also paid cash for our last three homes with no regrets.

[@sagenozko9317]

This is a great video! Thank you so much for being honest and trying to help other. Our biggest financial mistake was buying our ‘dream home’ first. Yes we could afford the mortgage but what we could not afford and did not realize it was all the money we would have to spend maintaining the home. It was awful and we learned a hard lesson when we ended up selling it. Also how expensive kids are. I love my children Ofcourse but we never thought that piece through. Not when they are little bit the big expenses that come with big kids. Thanks for all you do!!

[@fourdayhomestead2839]

Wasted years for college (paid for as I went, but didn't use the degree). Credit card paid off as I use it (keeps track of my work expenses). Always paid cash for land/house. Current inhereted house has renovations to do & a mortgage😞.

[@dtr579]

I keep around $100K plus in my emergency fund because I was laid off for 18 Months and company's are very hesitant to hire people mid 50s or older. So finding an new job is very difficult at this stage in life. I just need 8 more years, then I'm off the hamster wheel.

[@puggychu]

One of the common financial mistake adult makes is not paying off their home mortgage while they are working with more disposable income. I know retired people struggling with their mortgage payment on retirement income which affects their lifestyle. They should be living the life now retired but instead struggling with smaller income having to cut back on basic needs to make ends meet.

[@b00bala64]

I didn’t go to college but I started working in a bank then xfrd to auto insurance. I worked with tons of ppl with college debt that made more in insurance. Next my daughter didn’t go n she works hard in a warehouse job. Son did 2 yrs jr coll got assoc degree but wanted to live at college for 2 yrs. He had 0 debt, went to a university and ran up $40k… and left w/o finishing. But I pushed him online to get tech certifications and now make 6+ figures. I would say don’t let kids take cosmetology, nail tech or ANY beauty tech. It requires structure and that’s not how that industry rolls. Only those own the business make money. Manners, respect for people, integrity, friendliness and good communication skills will go sooooo far financially in this world.

[@moniquearnold1916]

I wouldn't necessarily count out the beauty industry. I know someone who works in a salon and makes 100k. Another person I know does esthetics and spa services and she made enough money to buy her own building.

[@DorianTrader]

I love your six. Thanks for sharing.

[@Drew-l3r]

We are in a better position to own our houses outright. Ours is $310 a month for taxes and insurance. To rent it would be $2800 a month, so we are ahead $30000 a year and house has appreciated at 9% a year since purchase. If we lose a job you’re better off😮we love our 0% interest. Times are going to get rough be grateful you’re house is paid off.😊

[@juststoppingby390]

We own our house outright. It isn't fancy but it's ours every brick. No one can take it from us even if we lose our income and that makes me sleep better😊

[@miketheyunggod2534]

Stop paying the taxes. Then, you'll know who owns it.

[@travelnurseadventures3225]

lol exactly@@miketheyunggod2534

[@1981lashlarue]

You'll never regret a paid off house. 🙂

[@ingridmarsden8866]

💕 take heart. Some comments are harsh. You were just sharing thoughts and opening a conversation. Best wishes.

[@myrrhamstar2490]

Great video. I’d say college (in some regard)though it helped me get into other fields (my major was Visual Art). Secondly, I’d say a new car. Buying a used one would have freed me up to save more (monthly, but it wasn’t safe, as a young girl to be traveling in an unreliable car at the time). If you’re going to have Debt make sure it’s something you love/like/enjoy doing.

[@weaverwagon6084]

Great insight! I agree with $1000 not being enough for an emergency savings and peace of mind.

[@TheKatyMadison]

I think if you live with parents or are a renter and don't own a car, then $1000 may be enough. If you own a car that you depend on, add another $1000. If you own a house, add another $1000. If you have kids, add another $1000. Contrary to Dave's advice, I would say that once you have a baby emergency fund of $1000, then start throwing extra toward debt, but also consider your emergency fund one of your debts until it is fully funded. Murphy will happen.

[@greenerpastures1000]

Six months savings is more realistic

[@summerjoy247]

If someone told me when I was broke and overextended that I had to save up 6 months of expenses before I could work on paying off my debt (that was steadily increasing), I probably wouldn’t have tried bc it sounded impossible 😞

[@1981lashlarue]

@@summerjoy247 Exactly. That's why the $1k is just a baby or starter emergency fund while you get other areas of your finances under control. The idea is to have at least six months of expenses saved up for emergencies eventually.

[@InspirationLed]

I definitely appreciate your perspective on the Dave Ramsey method as I have been following him just over the last 6 months or so. I agree with you about keeping my credit score up and not letting it go to zero as a single parent, but I do see the value in getting rid of the smallest debts first and snowballing to just get off the treadmill of servicing debts every month. I do think the emergency find is so important and beefing up too! I think I’m going to take a balanced approach but am so glad for his guidance about “how much house” I can afford and giving me the confidence to pay off student loans etc instead of kicking the can down the road 😅 it’s tough as a single person though, and as long as we are in control of our money and not spending like crazy, I think keeping credit cards on hand and maintaining a healthy score is important.

[@rdmineer1]

Find a balance between planning for retirement and living life while you're young.

[@shirleysparks1148]

Haven't seen a new upload in a while . Hope you and your family are doing well !

[@seaneustace9838]

She’s right about the time issue that’s why you need to have your teenagers doing this when they are homeschooled or still in high school. My 15-year-old already has nine college credits.

[@raemaxey3401]

Great content and very informative! Thank you ❤

[@juliet2756]

Wow!! These are great tips!!!👍

[@StephanDavisson]

If you felt sorry for paying cash for your house, the easy solution would have been to just go and get a mortgage on the house you own and invest the loan proceeds. Interest rates aside, even if they were still under 3%, the reason you would not do this is the same reason it’s illogical to look in the rear view mirror with regret now. It’s because nobody knows what investment returns will be for the next 15-30 years. Paying off your house provides a guaranteed rate of return. Even today, when you could earn 5% on cash, that 5% is still subject to income tax and I would still pay off a 3% loan over saving cash at 5% (assuming my emergency fund is fully funded.) Paying off the house lowers risk as well as providing a guaranteed rate of return.

[@marlenearocho3680]

And she'd be having to make a mortgage payment now PLUS all the Air B &B's they are staying at. .

[@NomadJane]

Real estate doesn't always go up.

[@mamat1213]

I disagree on several of these but you made excellent points. I know from experience that getting a 4 year degree can be an entry barrier for jobs you are WELL qualified for. It’s much harder to go back to school and get a degree as an adult l who needs to work full time. I have teens and have also let them know this, they plan to go to community college then transfer and finish in 3 years if possible. I also don’t fully agree with the mortgage point… I don’t know how much the monthly payment would be but I’d rather SAVE that each month than to pay out of my earnings (and owe interest on the balance😮)

[@blueleafevirosvc.inc.2796]

You are right!

[@Beth_Agnes_Casey]

What degrees did you get? That tells a lot that was left out 🤷‍♀️

[@nicoleg7194]

Above in a comment I saw her mention a psych degree.

[@kcdrapes]

Yes great advice ! On the tin opener front we bought one an electric quality one from a gift card when we got married 20 years ago it was £10 and it’s still going

[@JD-tn5tb]

I always thought you worked less paying jobs to home school and have freedom. That is fine if that is what you want but you could also use your college degree(s) by working for a company. Doesnt matter what your major was. Most companies just want to hire someone with a degree. You could get more out of your degree if you chose to apply for jobs that require a degree.I never had glamorous jobs but my degree helped me to get a steady job with benefits and work till retirement. I agree that degrees cost more now and not always worth it but kids could go to jr college for a couple of years and save to finish at a 4 year college. I'm so annoyed at Dave Ramsey's advice. I would be leery of taking advice from someone who has no will power to control his credit card spending. So stupid. I charge everything, I never carry cash but I always pay my cards off at the end of the month. And yes, a good credit score can get you so many things, insurance, job, house. When your house sells, you will be glad that you paid cash because all the money will be yours. Don't forget to get all your receipts together to avoid paying capital gains tax. Wishing your house sells soon.

[@oesso]

This woman right here is the definition of a HARD Worker. 😂

[@JaniceHylton]

As parents, I think we should encourage our children to pursue their gifts and callings. So if your kids want to be a lawyer or engineer,are you still going to encourage them NOT to go to college?? Also,.as parents, we should SAVE for college or trade school and their future and whatever they want to do. I 8ate that we want to limit our kids. And sure, college is not for everyone, but I think college should be an option if they WANT TO!

[@charlesjacksoniii8787]

I dont understand why people overlook community college they are cheaper than 4 year college and most of the time you can go for free.

[@deborahmontano6848]

I don’t have a degree and it’s allowed doors slammed in my face my whole life. Im smarter then most but not having that degree Has stopped me from getting through the screening tool “gatekeeper “. I made sure my kids got degrees.

[@mey7579]

I have a BA, an MA, and an additional 45 undergraduate credits for two teaching certifications. Today I am a single retired 71 year old woman who has two retirement accounts, a very nice monthly pension, and a generous SS check every month. None of that would have been possible if I did not have my degrees. I finished my BA by the time I was 20 but I didn’t use my degree until I was 40. That BA was like money in my pocket, giving me a ticket to a professional career.

[@kimsmith6469]

You are right about some jobs checking your credit score...i don't know what type of job would do that, but either way.its pissies me Off that some places do that...

[@autobotdiva9268]

shouldve started saving in my 20's but i was caught in consummerism, which is heavily taught.

[@beckyshell4649]

I put almost every thing on a credit card and pay the balance off every month.I go through my statements with different colored highlighters to monitor my spending.

[@Frank-nh9fe]

Whatch out looking back and saying I should have done x. Hindsight is 20/20. Mortgage and invest the rest sounds great knowing what you know now. But the market could have fallen, interest rates stayed at 3%, etc. Especially given your short timeframe.

[@PInk77W1]

I paid cash for my home. Best thing I ever did by far

[@beckypetersen2680]

I think the benefits of college are not always able to put your finger on. Some people want a bachelor's degree - as evidence to show that you have the ability to stick to something. The thing is you don't know what you would have done without going to college. You will never know since you went.

[@cathiek8028]

Oh, wow! College enriches your whole life and so informs all the decisions you make throughout your life, both financial and not, including in ways that aren't always quantifiable. College expands and informs your perspective on life in so many ways. And thankfully, there are many ways to reduce the costs!

[@richardahlstrom9694]

Pick your degree wisely. However, I graduated in biology and ended up being a cop and then juvenile probation officer for 24 years. The degree opened doors for me that would have been closed.