Quit Taking Money Advice From Your Broke Friends and Family!

💵 Start eliminating debt for free with EveryDollar - ter.li/jov85s
📱Download your free Ramsey Network app today! - ter.li/cvqzyb
📞 Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET or send us a message - www.ramseysolu...
Explore More Shows from Ramsey Network:
🎙️ The Ramsey Show ⮕ ter.li/rqwdws
🍸 Smart Money Happy Hour ⮕ ter.li/tmj3vq
🧠 The Dr. John Delony Show ⮕ ter.li/s5yazz
💰 George Kamel ⮕ ter.li/dc2gee
💡 The Rachel Cruze Show ⮕ ter.li/a6emrr
💼 The Ken Coleman Show - Highlights ⮕ ter.li/v8n4u8
📈EntrLeadership ⮕ ter.li/g7s9g0
Ramsey Solutions Privacy Policy
www.ramseysolu...

[@JoeyNYSDnomad]

You truly set yourself free when you no longer care what people think.

[@aolvaar8792]

Become a Sociopath

[@Freebirdpr]

amen

[@sn4rl277]

Comparison trap has cost folks so much money and emotional energy.

[@user-tl7mj2bm4m]

I still use a flip-phone and it costs me only $6 a month. I tell everyone to f ...k themselves. I drive an old beater too. I run my cars until they ROT. I"ve NEVER really cared what people think and I and my wife are doing fine financially. I tell ya what though...I see what other fools drive....and all I can say is: Glad I"m NOT paying the insurance or gas for that guzzler. We live in a simple working-man's house where property taxes are reasonable. House was paid OFF many, many years ago....College education for my son was paid for...WITH cash so he'd have no BURDEN.

[@misplacednewyawker]

Exactly, I am smart enough NOT to believe in any childish fantasy and that includes religion. Dave Ramsey is a religious wacko.

[@EricMoore790]

People with no money be looking down on the money savers.

[@EsiriE]

Foreal 😂

[@theprincessdivam7695]

Exactly!

[@lonestarrk9308]

If Covid taught me anything, it’s that when shit hits the fan, nobody cares about you. Not the government, not your employer, nobody. I’m setting myself up so when something like that happens again, my employer can fire me and it won’t be a problem. Technically, I’m already there. Just trying to stack as much away as possible.

[@user-tl7mj2bm4m]

Since when did the GOVT EVER care about you, me, my neighbor, or anyone? Please...elaborate....I'd like to hear of this "magical" time. And yes, prior to COVID, I did get laid off. House was paid off and I had a decent severance. Kid's college money was already saved up and ready to go...and to be tapped into...IF and ONLY IF things got nasty. Bottom line - we sailed through it without issue. We had no car payment EITHER... I took about a year off, drank beer and got fat...it was GREAT. And yes, I did find a job...I took a 6 thousand loss for the 5 years to catch back up..but I"m okay now. What to do ya expect when there's ageism for someone who's 55? I"m 60 now...and shooting to retire at 62 if at all possible.

[@BREEZYM6015]

​@@user-tl7mj2bm4mI was fortunate to remain employed during Covid and even got paid for a month while my place of employment was shut down. I hope you're able to retire at 62.

[@lonestarrk9308]

@@user-tl7mj2bm4m I’m not as old as you so I haven’t seen as much. I was also enlisted for 15 where the Air Force took pretty good care of me and my family until they decided to boot me out 5 years from retirement due to “force shaping” measures. I’ve seen some government incompetence in my time, but Covid was a real eye opener for me and it’s only gotten worse since.

[@IrishMexican]

I’m sorry you had to go through such a difficult time in the past, but your loved ones do care about you and they will when shit hits the fan.

[@johnsyler8580]

Why do people feel the need to tell friends and family about their financial decisions? If I had money to buy a house I wouldn't care what anyone thought.

[@Excalibur2]

Asking for advice is how you learn from others.

[@vickieclark5931]

@@Excalibur2 As long as they aren't broke. Most people seem to ask advice from people that aren't even as financially well as they are. The only people I have ever asked about finances are people that are much better than me. Be selective on who you ask or they will drown you with them.

[@greg_216]

I can think of a few examples where bouncing an idea off of just one person would have saved a family member or friend a LOT of grief later. Yes, there's a lot of bad advice out there, but just because you solicit advice doesn't obligate you to follow it.

[@bobjames6622]

@@Excalibur2 Depends whose advice you're asking. NEVER ask advice from dumb people.

[@Excalibur2]

@@vickieclark5931 you have a point. I just don't like that Dave assumes that asking rich people is always good advice. Asking someone who won the lottery how they did it doesn't mean it is a good plan.

[@HectorSnipes]

Planning to retire in 20 years? With rising inflation, the cost to maintain your current lifestyle could reach $2.6 million or more. The combination of high inflation, lower projected stock market returns, and stagnant wages makes securing an early retirement more challenging than ever

[@grego6278]

A good way to invest during a recession is by buying stocks in sectors like consumer staples, utilities, and healthcare, which usually stay strong. But it's important to consult a financial advisor before making these decisions.

[@VictorBiggerstaff]

These factors definitely play a part when I think about whether to invest in a stock. But I never make a purchase based solely on that. I always consult my financial advisor, who has helped me build a well-diversified portfolio worth $985k, which has seen tremendous growth.

[@BateserJoanne]

How can I reach this advisers of yours? because I'm seeking for a more effective investment approach on my savings?

[@VictorBiggerstaff]

Her name is 'Rebecca Nassar Dunne” Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@crystalcassandra5597]

Insightful... I was curious after reading what you shared, so I Googled her name. I came across her webpage.

[@edhcb9359]

They are “getting pushback from friends and family” because they can’t shut up about their money. Their friends and family don’t need to know their financial position in the first place.

[@Fred2-123]

Right. Your friends & family do not need to know anything about your finances.

[@analyticalchick3064]

Right? Don't. Tell. People. Your. Business.

[@cynthiaborden4209]

Probably bragging about their finances

[@kellster9239]

Don't tell people you're paying cash for a house. The closing costs without a mortgage is minimal! You save a ton.

[@bich-vanle]

I dont know about other states but here in California, you need a pre-approval bank letters w loan amt plus bank statements w money to prove you have money for down payment. In order to put out an offer for the house, you need bank pre-approval or if cash, bank statement. If you don't have neither one, no agent would even bother w you.

[@briankowald6465]

Yes, that’s another plus Dave didn’t mention

[@jjman533]

They will be so green with envy. He should keep his mouth shut about his finances.

[@lovethemflowers]

@@jjman533 Yes, sometimes it's best to keep those things to yourself. You'd think people would be proud of you and admire that you're buying a house that way. Unfortunately, there are always a few that will think they have good advice for you. I've heard Dave say this before, but I still thought it was funny when he told the caller to pay cash for the house, and if he hated it, he could always take out a mortgage.

[@9liveslisa]

To not owe a dime is priceless!

[@Freshly_Gaming]

I wanna say im 15 and im so glad to discover dave so early because i can follow these steps as i get a first real job!

[@Will-jg2zs]

Congratulations. Don't let other people online or irl discourage you from doing the Ramsey plan, it's not for "broke ppl" or "ppl who don't understand finance," it's for everyone. You'll be a millionaire before you're 30 and a multi-millionaire before you are 40 if you do take the advice that Dave and his team recommends. Get a marketable skill, make a money plan (aka budget), and consistently invest in your ROTH IRA and company 401k (after you get the job you want)

[@cnh7262]

Save early and save a lot ! You will thank your younger self.

[@Freshly_Gaming]

@Will-jg2zs I have no clue on what I want to do for a job, but math is a real strong skill that I have, I also like designing/building things, but I also like art. Not sure what job would fit that. I am always asked going into 10th grade, what do I want to be when I become older and I'm not sure I say every time. Any job suggestions?

[@Freshly_Gaming]

@cnh7262 always am told that. I technically could already have done baby step one while I'm 15. I have 5k in the bank and work for my dad cutting wood. Obviously I have no debt. I like how I put myself in he postion I am. Not only that but it is really the faith in God that put me in the position I'm in right now.

[@user-tl7mj2bm4m]

Kid...live and die by what Ramsey says...and you'll be rich. Get out there, cut lawns, shovel driveways, rake leaves...do WHATEVER to earn a buck AND eventually get a real job...and keep your best clients for the yardwork. As soon as you get to say 2500 or 3000, have your parents get you set up with a S&P500 INDEX FUND and keep feeding the thing. You'll retire at 50..... When I went out with my one friend, all that idiot did was feed his stomach and drink Coke....he NEVER had any money....EVER. I always had money for concerts, albums, vid games, etc. and dates with women!

[@EzechuHeadd]

Hallelujah 🙌🏻!!!!! The daily jesus devotional has been a huge part of my transformation, God is good 🙌🏻🙌🏻. I was owing a loan of $49,000 to the bank for my son's brain surgery, Now I'm no longer in debt after I invested $11,000 and got my payout of $290,500 every month…God bless Mrs Susan Jane Christy ❤️

[@Rosario-e2i]

Hello!! how do you make such monthly, I’m a born Christian and sometimes I feel so down of myself 😭 because of low finance but I still believe God

[@Allie-ye8oe]

Hi that's good you have idea &share to those who deserve it that's great god bless🙏🙏

[@AthensPatao]

She's a licensed broker here in the states🇺🇸 and finance advisor.

[@AthensPatao]

After I raised up to 525k trading with her I bought a new House and a car here in the states🇺🇸🇺🇸 also paid for my son's surgery….Glory to God, shalom.

[@CaslerDannels]

Can I also do it??? My life is facing lots of challenges lately

[@rahuliyer7456]

My wife and I bought our current house in Mesa Arizona with cash in 2010. The only person that agreed with us was my father. My mother and sister called us dumb. We are still in the same house. We are fine. We are millionaires. Okay, my sister makes a lot of money, but most of it goes to service her house debt and related. We don't have that. Additionally, we are in the process of closing a cash deal for a house in Vietnam. It is nice. We are going to be moving permanently to Vietnam soon... leaving Arizona. The same people are calling us dumb. NOTE: wife's family is in Vietnam. My wife is originally from Vietnam.

[@davidbrayshaw3529]

You must be my long lost son. It's a much nicer feeling walking up your driveway than it is walking up the bank's driveway. And when you walk up your driveway for the first time, you can do it every day for the rest of your life.

[@JFDSmit-rm6tw]

I had a mortgage. Dave's right. If you hate having no bank breathing down your neck and no debtors or creditors chasing you, get a mortgage. I'd prefer paying cash and knowing, except for the extortion called property tax, it's mine, not the bank's who oh-so-graciously, allow me to live in their property until it's paid.

[@jmfs3497]

My oldest brother is homeless but now in subsidized housing. No job. I get SO MUCH financial advice from him when he comes to my house to do laundry. I'm renovating a old distressed boarding house so that I can rent it out the side I'm not living in. If I say I want to replace the kitchen faucet, he will spend an hour arguing that I'm financially wrong for not putting in granite countertops. I'm fine with granite, but the house has bigger fish to fry and granite countertops are pretty far down the list. Almost every convo on any topic with him turns to how much money I could make. I could talk about disc golf and he'd probably have advice for how I should monetize it. It's exhausting.

[@bellabelle5996]

😂😂😂😂😂😂 people who should really keep their mouth shut are usually the first one to give "advise"

[@analyticalchick3064]

Don't. Tell. People. Your. Business.

[@Bertuzz84]

That sounds like my in laws who constantly give advice based on how things were 40-50 years ago. I'm always wondering why they spend 99% of their effort giving advice, while barely spending 1% actually getting knowledgable on the subjext. It's like these people are addicted to giving advice. And if you disagree they will double down for hours. So convinced of themselves that they forget to bother to actually fact check themselves.

[@lovethemflowers]

You're financially wrong for not putting in granite countertops? What about Mr. Too-Broke-To-Go-To-The-Laundromat?? This cat needs to seek advice on how HE can make more money, so he doesn't have to come to your place to do laundry.

[@MisterNightfish]

Never take advice from people that do not have the results you want. Don't take relationship advice from chronically single people. Don't take financial advice from broke people.

[@tdgdbs1]

Don't take advice from the opposite sex.

[@bellabelle5996]

And don't take workout advise from overweight people

[@frequentlycynical642]

Men shouldn't take dating advice from women. Which is a lot out there.

[@frequentlycynical642]

@@tdgdbs1 Well, that's a broad, sweeping, and very stupid comment.

[@MisterNightfish]

@@bellabelle5996 Yes, that's another good one. It's not exclusive to overweight people, but especially in that case, there is actual sabotage going on. For some reason, fat people don't like other fat people losing weight.

[@wenchyfoodwench4098]

Why are they even discussing how they want to buy their house with random people? Don’t discuss your money stuff with anyone but your spouse!

[@zerafians8145]

I think they were probably just excited and optimistic and wanted to just talk about it with people they knew. It probably turned into a discussion on what to do with all that money because everyone likes to play the "I have a ton of money, what do I do with it now" scenario in their head.

[@cassandrahuete5973]

What your friends didn’t factor in their calculations is X. X is life. That could be a major job loss, early death of a spouse, major medical diagnosis such as cancer. With a paid for house you don’t have to worry about mortgage while navigating a crisis. Their formula makes a lot of assumptions about a future that isn’t guaranteed

[@Nilruin]

What their friends didn't factor in their calculations is interest. Would you rather pay $400k right now for a house, or pay $600k over the course of 30 years? Right now, the mortgage might look attractive, but in 30 years you're gonna wish you had that $200k extra in savings. People who say things like "just get a mortgage, don't buy your house in cash right now" are people who have zero long-term foresight and therefore, zero financial expertise.

[@kendrapratt2098]

“You’re what’s known as wrong “😂 A new Dave-ism

[@alyssacheatham4973]

Known*

[@kendrapratt2098]

@@alyssacheatham4973 Oh goodness, how’d I do that? Coffee hadn’t yet taken effect. Thanks

[@amireallythatgrumpy6508]

A new one that he's been using for decades?

[@AnthonyAntoinetteNwaurugu]

For the Newbie if you are actually trading in the crypto space and you don't have a sound mentor. Then you are certainly going to get liquidated in 90% of your trades. Yeah that's sad truth. I remember when i just got into crypto back in 2019 but later in 2020 i ended up selling it because i have lost alot trading all by myself without a guide. Got back into crypto early in 2024 with $20k and I'm up with $232k in a short period of time

[@DaCk-j6u]

I'm new to cryptocurrency and i don't understand how it really works. How can someone know the right approach to investing and making good profit from cryptocurrency investments?

[@Alfred-pm9ox]

As a beginner, what do i need to do? how can i invest, on which platform If you know any please share.

[@AnthonyAntoinetteNwaurugu]

I started working with devion back in February, and my financial goals have been clearer. It's like having a strategic partner for my money with a solid track record.

[@Francisco-287]

She is really a good investment advisor. I was privileged to attend some of her seminars. That is how i started my crypto investment

[@Daniella-fv6er]

I've seen different people talking about this alice devion she must be very amazing for people to talk this good about her.

[@greyhound-t3k]

Best not to discuss financial decisions with family and friends.

[@user-tl7mj2bm4m]

EVER....you forgot to end your sentence with the word "EVER".

[@donjohnson8131]

Dave’s Wife: Dave what color dress should i wear? Dave: We ran the largest study of millionaires in North America…

[@lepoj]

"And not one of them said they became a millionaire by wearing a dress "

[@Byung-wx9tt]

Thank you Lord Jesus for the gift of life and blessings to me and My family $14,120.47 weekly profit our lord Jesus have lifted up my Life!!!

[@PondeyPranali]

As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.

[@EstaryBonilla]

Investing in crypto/forex is a good idea, a good trading system would put you through many days of success.

[@StariLes-v6r]

Investing $15,000 and received $174,000

[@ByungCraig]

Same, I met Mrs Anna Davis last year for the first time at a conference in Manchester, after then my family changed for good. God bless Mrs Anna

[@ByungCraig]

Same, I met Mrs Anna Davis last year for the first time at a conference in Manchester, after then my family changed for good. God bless Mrs Anna

[@S42069]

I just started watching your show about 2 months ago, and this week I will have paid off over $80k in debt. First time I have been debt free in probably ten years, because I was following the advice of my broke family and friends. I will never borrow money again.

[@Fred2-123]

You paid off $80K in debt is two months? Color me skeptical.

[@S42069]

@@Fred2-123 I sold some things and took on extra work. Be as skeptical as you want.

[@Fred2-123]

@@S42069 Ok, good for you. Not many people can come up with a spare $80K in a year, let alone in 2 months. Congrats. Realize that most people who brag about paying off a huge debt or making a huge amount of money in a short time are just lying.

[@S42069]

@@Fred2-123 You sound quite bitter. Sorry, not sorry. Try not to bring people down to your level, simply because you cannot fathom being able to do something.

[@joannaa.5101]

​@@S42069 Good for you. I just know it's the best feeling.

[@majorlagg9321]

I came into enough money to pay off my mortgage and my friends told me I was stupid. They said I should invest it. I paid my mortgage company and never regretted it. Prior to paying it off, I had to make a claim because of a hurricane. The mortgage company added two months to the process because they had to sign off on the settlement check. By then, I lost the contractors to make the repairs. After paying the mortgage off, I had to make another claim because of Hurricane Ida. The insurance company sent me a check made out to me and the process rolled through quicker and easier.

[@jmfs3497]

And now you could invest all that cash that would have normally went to the monthly mortgage payments.

[@joannaa.5101]

Jealous is all. Do your first idea.

[@funnycartube]

Greetings from one "Ramsey personality" all the way from Bulgaria! Keep strong people and be free! 👌

[@user-kt4zi5nx8j]

I'm favoured, $22K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America.

[@DavidDonald-p8t]

You're correct!! I make a lot of money without relying on the government. Investing in stocks and digital currencies is beneficial at this moment.

[@azmatwassan8857]

I just want to use this opportunity to say a very big thank's to Sonia duke and his Strategy, he changed my life.

[@TylerHynesManagementofficial]

Soina Duke program is widely available online..

[@AllenChristopher-fp3yn]

Started with 5,000$ and Withdrew profits 89,000$

[@AllenChristopher-fp3yn]

Soina gave me the autonomy I need to learn at my own pace and ask questions when I need to she's so accommodating.

[@stevegolacks8731]

Gotta love broke people! My neighbors are deep down jealous that I dont work (retired at 44), and try to find any negative they can. They ask why I drive an old car..lol. I ask them, why they are driving a new car and still working at age 55.... They dont like that

[@Blittsplitt5]

Of course they don't!!

[@joannaa.5101]

😃😃😃😃

[@pickmeisha]

Sounds like my single mom cousins clowning me because I married and we dont want kids…they dont like when I ask where are their baby daddies lol.

[@amireallythatgrumpy6508]

I hope I'm still working when I'm 80. Why the hell would anyone want to retire at 44. That's asinine!

[@stevegolacks8731]

@@amireallythatgrumpy6508 I hope you keep working till 80 too! This world must have poor people and rich people....we rich people need you guys to work until you die so we can keep funding my roads, my police, and my wars. lol

[@ChesterMan-qd3xj]

I’m 39, and my wife and I paid off our 30 year mortgage in 12 years. Of the $1320 per month payment, $560 of it was escrow, so we ended up recouping about $760 a month. It’s a decent financial boost, but not the life altering event it can be made out to be. Still feels good to be debt-free though.

[@Movnhorses]

I have to say Ramsey is completely correct on being debt free. You can always pay yourself back and pay your retirement! Love being debt free!!

[@HelosWorldRailroadReseller]

A few things I give push back that Dave says, this 100 percent correct 😊

[@OurRetireEarlyJourney]

Listening to people's advice from those that live paycheck to paycheck is always a mistake. Most of those people chase "status" rather than financial freedom. Pay your house as soon as possible. Eliminate all debt as soon as possible, your entire life will change once that happens.

[@PublicNuisance2K24]

You’re wrong kid

[@57_Triumph]

⁠@@PublicNuisance2K24you are incorrect. Eliminating all debt as soon as possible works every time it’s tried

[@PublicNuisance2K24]

@@57_Triumph nobody asked you

[@joannaa.5101]

​@@PublicNuisance2K24 Hence the name... .

[@PublicNuisance2K24]

@@joannaa.5101 did u figure that out yourself genius??

[@rosak.9855]

Just think of how much you'll invest in a year from a mortgage payment that you won't be making.

[@earthring]

Usually, the people who have the most opinions aren’t the successful ones

[@JacobPaul-n6p]

One important lesson I’ve learned from millionaires is to always make your money work for you, no matter the amount. Even investing just $100 a month can grow into significant wealth over time through compounding. The key is consistency!

[@JaneBlac-]

I believe every Investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.

[@Elizabethwells-q7f]

You don't need to find the next NVDA to succeed in investing. Just choose top-notch ETFs and partner with a financial advisor like I did. I turned $90k into $54,000 in annual dividends-a significant milestone for me today.

[@Steven-u2u]

How can I consult your advisor? Looking to get some help on retirement planning and portfolio management.

[@Elizabethwells-q7f]

"Jessica Lee Horst" is the licensed advisor I use. Just research the name. You’ll find necessary details to work with to set up an appointment.

[@Jasonshelton-]

Thank you for the recommendation. I'll send her an email and I hope I'm able to connect with her.

[@marcuswashington461]

Most people see a paid off house as unfathomable at least until your 80..most take out Helocs and use equity for home improvements or whatever and in their eyes they will always have a payment..like Dave always says be weird pay it off, I have yet to meet the person miserable because the house is paid off!!

[@boneil321]

The fact that Dave says there were 0 millionaires who invested instead that money shows that the study/survey methodology is flawed. Math is math, investments grow over time more than the cost of 15 year mortgage and once time passes you can not get it back and you can't make up for loss time.

[@Blittsplitt5]

You're what's known as wrong!

[@Blittsplitt5]

I mean, show us the people that did that and reached millionaire status.

[@alvick353]

Where do YOU fall on the millionaire scale?

[@HDY0903]

😂😂😂😂​@@Blittsplitt5

[@user-tl7mj2bm4m]

I'd still rather have a paid off house...which I do. I did both...I always paid more on my principal AND I invested at the same time. Now with the house done...I'm investing even more. At one point, I refinanced so my house payment was only $337...so I could invest more per month.

[@BusArch42]

My step dad is notorious for bad financial judgement. He blew all my and my sisters college money grandma left us on a ponzi scam investment. My father has fantastic judgement. So I call step dad and get his input and then call dad. If the two are 180 apart I do what dad says. It’s never failed me yet in twenty years. The only reason step dad isn’t broke (mom is deceased) is he has a pension he cannot screw up and he’s frugal

[@bmmk12]

I wish they would have asked him how much the house is and how much money they have - that would have been cool to hear

[@DEBTFREEMIKE769]

Why wouldn’t you want to outright own stuff. Makes no sense.

[@bobjames6622]

Because Klaus Schwab, and his chums, won't like it.

[@raiden031]

I would rather have a higher net worth

[@carguyuk7525]

I bought my house for cash. Best thing I ever did. I have since bought a second house for cash, which I rent out. I save £50k per year into my pension. This would not have happened if I had a morgage.

[@oraza66]

Debts and loans have been taught and encouraged for ages in any economics/ accounting school/college syllabus ...

[@DrDoke]

There is a level of peace and satisfaction that is hard to quantify with money when you are debt free and own a fully paid for home. Once you have achieved that you get to keep your full paycheque, your wealth will skyrocket.

[@lauvasquez7198]

I’m broke BUT a paid off house sounds like a HUGE WIN! Why on earth would anyone borrow when they have the actual cash?

[@pickmeisha]

Lol.

[@Joenzinator]

I’m a millionaire and I agree with his friends and family depending on his age, interest rate, and a few other factors.

[@isaacl6402]

Realistically it’s still fine to make the spread if you have like a 2-3% mortgage but yea 6% right now and you’re probs better off just paying it down

[@GAFB1122]

There is a concept in finances called opportunity cost. Actually the concept can be applied in life as well. So if you have $100K cash and can pay off your home or invest it, and you pay off your house you cannot invest that $$ and it may cost you growth on the investment. But if you invest it, you will continue to pay interest on your home and most importantly you will still owe the bank. Neither a debtor or lender be. So as Dave said, you won't be sorry paying off your home and being debt free. There is true freedom to NOT being in debt to the bank! But hey who am I to tell you what to do. If you wish to remain in debt so you can invest, HAVE AT IT AND DO YOU!

[@lepoj]

Why would I care if I owe the bank when I will have more money in the end by not paying it off early?

[@joannaa.5101]

I read every word and totally agree with the longer explanation above.

[@tylersanders2388]

I was being told it was a stupid time to buy a house a year ago because the market is going to crash and the sky will fall. It’s gone up 5% in value since and it didn’t matter anyways because I had 20% down and can comfortably afford the mortgage

[@mikea1973]

.."u don't think anyone cares if u die..then try missing a couple car payments "😅

[@indiaandrews6996]

The friends and family want the caller to do what is “normal,” which is to have a mortgage. Throwing money down the drain in interest payments on a mortgage is going to be a drag on any money gained in the mutual fund.

[@user-tl7mj2bm4m]

Misery LOVES company...and his company wants him to be miserable. Screw those people.... And you are correct...the money lost on the interest drags the gains on the mutual funds. A paid off house allows you so much freedom...and if you get laid off , which I did....it's NO big deal...

[@CatWhiskering]

As Dave pointed out, higher capital gains taxes would eat the difference between the interest rate and the investment return rate anyway. So it really isn't smart. Plus a mortgage means bureaucracy when you want to remodel the home (the mortgage holder owns the house and has to approve your changes!), and it means insurance is always required.

[@lolwtnick4362]

Lmao people here have never Paid cash for a house and it shows. There's no real estate broker fees, no pmi, No closing cost, etc it's just a $15 title fee and a few hundred dollars for a lawyer and inspection if needed.

[@JustinCase780]

Ken is thinking "footlong tuna or meatball?"

[@kendrapratt2098]

Subway has brought them down to $6.99 for a limited time!😂

[@JustinCase780]

​@@kendrapratt2098Rock on! Knowing this Ken may throw in an Italian sub as well.

[@bobmartin4942]

​@@kendrapratt2098but i remember not long ago when they were only $5. Also remember when they were only $3.59 or so.

[@kendrapratt2098]

@@bobmartin4942 I remember the $5 era, but not the $3.59. I remember they had a $3 or $4 6-inch with chips and drink

[@BJSuggs]

It's funny because when I would want to buy something I KNEW I didn't need I would only go to the people who didn't use their money in the right way for validation of the purchase I made. When I started surrounding myself towards better people they would stop and ask me "why" vs approving with "when."

[@nubfishin9152]

Not only friends and family but also broke financial advisors (not talking about Ramsey and crew!!)

[@MillennialTechNick]

There NEEDS to be an AI Dave Ramsey that you can talk to and run financial questions by so he can tell you not to make stupid mistakes in his voice.

[@Raida7]

Dave's certainly right - you can borrow against your home to invest IF you want to. But you certainly don't have the option if you don't HAVE a home, lol

[@cheapcookies]

Most millionaires like me have CCs and like the rewards - cash back, miles, points, etc. While it may not have been what made us a millionaire, it indicates we manage our money from every angle we can - and Dave, I'm not in your study, but I qualify - and I take the cash back. Be brave, tell us something you purposely omit - that the vast majority of us *DO* use CCs and use the rewards to our benefit.

[@alinatamashevich3354]

Nope! WHy would someone with a 7 figure net worth borrow money? That is double stupid.

[@cheapcookies]

@@alinatamashevich3354 Why? Because *using a CC isn't borrowing money* if you pay it off every month in full. If this concept is above you, compare it to paying your electric bill. Do you pay the electric company every day or do you pay them once a month? Or look at how you pay property taxes. The bill certainly can be broken down into a daily cost, yet you only pay them annually.

[@mikeshaw4610]

If you pay off you house just think how quickly you can them build up investments.

[@NorthEastTrailRunner]

We need Dave Ramsey to come to the UK. There are so many people here who are stupid with money.

[@user-fi4gd6ev4s]

ME: Eating beans and rice trying to convince my friends and family that this is the path forward

[@beemonique8466]

Right 😂😂😂

[@dfsas6621]

If i have to adjust for risk, how come i am safe to have an 8% withdrawal rate in retirement? Shouldn’t it be less to adjust for risk?

[@vickieclark5931]

I don't need to have a million dollars in investments to retire, but I do need to be 100% debt free including my home to be retired. Cause when you have a very low cost of living, those investments will last a long time.

[@davidmilhouscarter8198]

5:27 Between Memorial Day and Labor Day 2024, I’ve lost ≈37 pounds and I like it. I’m not getting fat again. As far as my mortgage is concerned, I have prioritized paying it off quickly. I’m not interested in leveraging my home to make a spread.

[@fabbz94]

Id love to have my home paid off 😂 having a mortgage is not fun

[@Blittsplitt5]

Exactly

[@kevinb8881]

It's your money, you do what you want with it!!!

[@reniedavisson8532]

Don't share so much with your family and friends so that you and your wife are never influenced by what the two of you know is right for you.

[@aaronmurphy8796]

Is there somewhere you can read about the study of millionaires what questions were asked and anonymous data on the participants ? I read the white paper that has been referenced on here before but outside the number of people it didn’t say much about the actual methodology .

[@Lamski3]

Interest rate has a major factor. With a 3% rate (2020 purchase or refinance). In 30 years you will have substantially more net worth using the cash making what Dave says is a guaranteed 10% over the long term.

[@toyguy112183]

Borrowing money from the bank to invest is thinking you can make a greater market return better than the bank itself. If that was remotely possible you’d already be hired as a fund manager for merril lych making 7 figures.

[@Fred2-123]

The bank does not make their money by investing. The bank makes their money by lending it out.

[@lepoj]

The bank currently makes 2.85% off of me. I make 10%+ in the stock market. See how that works?

[@sXePunkV2]

I love how Ramsey never mentions that he only surveyed 10,000 of his own listeners. So, people who are already planning to pay their houses off early

[@GrnXnham]

Well, sure, BUT they were millionaires. So they were doing something right with their finances, correct?

[@bvoyelr]

Let's take a real world example: a $300k house, 5% interest, 15 year mortgage. You have two options: pay cash and invest the $2400 per month that the lack of a mortgage saves you or get the mortgage and leave the $300k in the market. If you're a conservative investor and get 5-7% returns, then the two options are actually mathematically similar. At the end of both, you'll have a paid off house and $620k in the bank. However, if you invest more aggressively -- say, in the S&P 500, which gets closer to 10% returns -- investing the $300k will leave you with $1.3 million after 15 years, whereas paying cash for the house will only leave you with $1 million. So how bad do you want that extra $300k? Is it worth the stress of having a $2400 bill for the next 15 years and the marginal risk of market catastrophe eating into those returns you're aiming for? Dave clearly puts a lot of weight on the idea that the stress of a mortgage leads to other financially irresponsible decisions (and seems to produce some Motivated Math to justify being debt free). In my own life, though, I've noticed that the moment I have margin in my bank account, I fill it with something. I'm growing out of that, fortunately, but for me, the mortgage is a bit of a saving grace -- a forced investment, as it were.

[@Bruin2002]

Totally agree. It is a debatable at least. I feel there are many other factors to consider, such as their salary, job situation, other investments and savings, financial behavior, and phase of life they are in. Which result in the risk tolerance. Dave thinks everybody needs to follow 100% of his advice, or they are financially stupid. While I do agree with many of his opinions, I found this pretty offensive.

[@romeoj30]

Agreed!! There are tons of factors like how did they get the money? Was it inherited or did they save? How do you even measure the cost of risk? How long do they plan to stay in the home? Long-term, it makes more sense to invest it. However if they move in 5-10 years like most people do, then just make a huge DP, ride the equity, invest and keep a low mortgage with flexibility!

[@stephenayriss5049]

How much did he save up to pay cash for a home?

[@zerafians8145]

in todays housing market, say on a $500k home, they are looking at around $30k/year interest for the first 10 years. So their friends are saying, dont buy the house out right, youll make $2500/month with investments...they are acting like its a given it will happen. Thats not how real life works. Im hardcore into investing but I would NOT suggest that...get the home out of the way and youll never have to worry about having a place to live. Most people dont get to experience that feeling until their 50s or 60s.

[@Mr_Fairdale]

His friend's advice isn't bad advice... back when interest rates were under 3%. I paid off my primary even though I had a low interest rate and while I kinda regret, I really don't. It feels so good to not have a mortgage.

[@unfairsanic5089]

Still wrong though

[@mwhe3111]

Josh's response tells me he might sort of agree with friends and family.

[@danieljohnson4418]

Honestly, he'll be fine either way. Do what you want.

[@PabloTheThinker]

I would love if they actually published this “study” they keep referring to in a peer-reviewed journal.

[@Excalibur2]

If this was a repost from a few years ago, they were actually right. Record low interest rates were great to get in on.

[@joannaa.5101]

I'd think you are going the right direction.

[@raiden031]

Every millionaire I know has a mortgage

[@kvgolfa]

This logic makes no sense. Then why not have people pay everything they can towards their mortgage rather than invest 15% at the same time?

[@Themoomabides]

Sometimes I wonder if all the millionaires were just Financial Peace grads and of course they didn’t do those things. They did Dave’s program. Haha

[@tc6637]

These so called friends actually want to "borrow" that money from them to play the market.

[@Psuedo-Nim]

If the mortgage interest is 6% for a 15, 7% for a 30, in theory that looks worse than an average 8% return. But that theory is long term. Some view the market as overpriced now. There are still recession worries. Paying cash now, with a mortgage rate of 6% is like a guaranteed return of 6% on an investment. Better than current CD's or money markets. Now, when you could get a mortgage for 2.5 or 2.75%, I would have said invest and take a loan, but now--paying cash isn't bad. If your income is super secure, you could still invest and look at a loan, but I do not fault anyone just paying cash and having breathing room, and instead of a house payment, you now have money to invest and build up. There's only o much you are allowed to contribute to a ROTH IRA anyway, so that big pile of money could only got to a rather small percentage of tax free investments, and even AAA municipals are returning less than the interest on a 15 year fixed mortage. Also, paying cash is so much easier. less worries about what you can buy, expenses, credit checks, and even easier closing costs, avoiding PMIA. That ease of transaction has a value.

[@Fi2037]

Has Dave ever published this research? Or does he just talk about it ad nauseam? All I’ve seen on his website is a 7 page summary, which definitely doesn’t count as in-depth research.

[@crystalstump8537]

Getting a loan sucks! It is terrible to go through that experience when you have the cash! It is so annoying the hoops you have to go through even when the lender sees your net worth! Unbelievable annoying. Be different pay cash for your home! Be done! You should get a better deal by being a cash buyer! Quick closing. Pay cash! 🎉 they cannot understand if they have not been in those shoes. Debt free means freedom!

[@FiOSFellow]

He goes back to that study quite frequently and when rates were different.

[@neutralcommenter7800]

The problem is that you have to pay the mortgage and the stock market can go down. Assuming no issues with the stock market and your income, everything will work out fine. But in the 30 years it takes to pay the mortgage, the stock market will crash about 2-3 times. Also, if you lose your job you can't pay the mortgage. So yeah, you may make more in investment income but there is so much risk that over that 30 year mortgage.

[@lepoj]

Name me one time that the stock market hasn't recovered from a crash. If you lose a job, isn't that what the emergency fund is for?

[@laundrygoddess4]

Dave is ignoring the fact that they didn't ask their millionaires if they paid cash for their house. Kind of an important thing to note. One reason why they have so much in their 401k is because of how long their investments were compounding. Work with a financial planner. Run the numbers. Dave is missing many key statistically relevant points. Btw... I'm a millionaire with a paid for house and I'm not broke

[@The_Food_Police]

Thank you. Yes, he often glazes over this.

[@JustinCase780]

True but the bigger point is to buy a house with cash is 1000% better than not. He goes off in that tangent about the stupid study but the bigger point is they can buy it outright today and should do just that.

[@laundrygoddess4]

@@JustinCase780 Run the numbers in a financial planning software. It doesn't work out better to pay cash. It works out better to put a sizable down payment on the house then do a short term mortgage. This is all depending on interest rates of course. Double digit interest rates, this doesn't work. I've run the numbers in fp software and that's the facts. Time in the market is so important for investments

[@doug6839]

It's the same with his credit card advice, "nobody became a millionaire with airline miles." But in the money guys study it's close to 90% of millionaires they asked had a credit card but almost none ever carried a balance on it. Honestly it comes off as deceitful when he skews info like this.

[@USMC6976]

@@laundrygoddess4 If FP software was so great and accurate, everyone would be using it.

[@stevegolacks8731]

I bought a house in 2021, and took a 2.75 mortgage. I was ready to pay the balance off in 2023, until CDs were paying 6.5%. I usually agree with Dave, but not on this one. The mortgage balance is now in 6.5% CD, not the market...so it wont fluctuate, it pays 6.5 no matter what!

[@angryox3102]

Yeah I’ve seen a few videos where Dave is telling people to pay off mortgages when they’re earning more on investments than the interest on the house.

[@DudeDude491]

Ken is thinking…..I forgot to close the garage door again anddd I forgot my veggie omelette for Lunch

[@JustinCase780]

Yes, and he's also thinking "I should have hit the can before this set time and I'm squeaking out some bad stuff and Papa isn't liking it"

[@DudeDude491]

@@JustinCase780 Hahahahaha Yes!!!👍

[@surajthakur401]

Actually they can tell you what not to do

[@nationsnumber1chump]

but you are going to spend all your money on insurance and other fees to keep a depreciating asset. Not to mention the amount of time it takes to buy a 700k home cash is out of the question for most people and it is an illiquid asset too. Only go with the amount of home you need to survive the coming apocalypse. AND DON'T BUY BEFORE PRICES PLUMMET. What if prices increase? Will you be priced out? Buy within your means.

[@Julian-zc9vm]

With 7% mortgage rates it’s not worth the trouble to keep a mortgage. If mortgage rates were 3%, I would do the mortgage but I understand that for the vast majority of people who don’t know finance, it would still be best to still pay off the home rather than invest.

[@egunter]

This is wrong. Here's an example of a couple I know. Barrowed 300K to buy a house @ 2.5%. 36 months later bought a 10Y treasury at 4.4%. now they're making money. Lucky, sure, but Dave is great for people with bad money management, not great for savvy folks.

[@GrnXnham]

I have to admit that I am surprised that not ONE person out of over 10,000 had invested instead of paying off their house! I mean there is always some yahoo out there who wants to do things differently or thinks they know better but still manage to be successful with their money, right? Just one? Or maybe two?

[@99John99]

Dave did a "bait and switch" here. The caller was considering "investing the mortgage amount". Dave then said (implied) zero of the millionaires surveyed did a cash-out refi of a 100% paid off house for the purpose of investing the equity. A huge percentage of people hold onto substantial investments (equities) while taking out a mortgage on a new home purchase.

[@marianwallen801]

PLEASE, PLEASE,PLEASE STOP TELLING YOUR FAMILY, FRIENDS AND CO WORKERS YOUR FINANCIAL DETAILS. Thank you ❤. Have a glorious day ✨️.

[@blckbldng]

Ok for that case. But I still can't understand why I should pay off now the 40k€ left on the fixed 0.9% loan I took for my second home. I got the money, but that rate was is so tiny, what's the point ?

[@JohnyTerr]

!!!I recently sold some of my long-term position and currently sitting on about 250k, do you think Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks will be appreciated.

[@FederickLeo]

You need an expert. I'm guided by Adviser Bruce Murdock a widely known consuitant.

[@ChanLui]

I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Adviser Bruce Murdock, for his expertise and exposure to different areas of the market.

[@FederickLeo]

My colleagues had a good laugh at me when I told them I started my journey with $50k capital and how I accumulated over 6 figures within a span of 7 months. They never believed me until I pulled out my P&L. I know that learning the ins and outs of the market isn't for everyone, that's why personally, Bruce Murdock oversees my investments.

[@ChanLui]

Without a doubt! Bruce Murdock is a trader who goes above and beyond. he has an exceptional skill for analyzing market movements and spotting profitable opportunities. His strategies are meticulously crafted based on thorough research and years of practical experience.

[@JohnyTerr]

nice! once you hit a big milestone, the next comes easier. How can i reach him, if you don't mind me asking?

[@emoney1231]

At today's interest rates, the spread is far less attractive anyway. At 2-4%, there are PLENTY of people who won't pay it off early, will invest it in ROTH assets, and will come out hundreds of thousands or even millions ahead. I'm 3 years into my mortgage and my investments are up more than my mortgage will cost me in interest over its whole life.

[@Fred2-123]

Yup. Dave has advice for poor people who are drowning in debt, and thinks that same advice applies to non-poor people who have little or no debt and positive net worth.

[@Blittsplitt5]

​@@Fred2-123 LOL. Y'all keep saying this, but the vast vast majority of Americans are broke and in debt. So they should probably shut up their milquetoast criticisms of him and follow the advice. His advice still works for this guy, paying for the house in cash and not having a mortgage is a better idea than putting it into ROTH or brokerage and getting a slow 7 to 10 percent while being in debt to a bank for the house. Peace of mind and immediate addition to his net worth and assets.

[@Fred2-123]

@@Blittsplitt5 No, sorry, the majority of Americans are NOT broke and deeply in debt. Ramsey's advice is great for those who are, but not for the majority who are not. Ramsey says good mutual funds pay 12%, which is a lot more that a mortgage at 7%. So which is it? His advice changes from "invest" to "do not invest" depending on what he wants to say. BTW, the S&P500 is up 19.20% year-to-date, Jan 1 2024 to Aug 23 2024. That is 28.8% annual.

[@glen46823]

I guess I'm soon gonna be Dave's "none of them." I got a 2.25% interest rate in 2020 on my house. I put the bare minimum they made me put down 5%. I will never pay a dime ahead. Instead I invest about 35% of all my earnings in my retirement accounts, which have now skyrocketed to more than I owe on my mortgage, as I've earned about 14% annually there, instead of paying off a 2.25% debt. So technically, I already have the ability to pay off my house, but will not. At the rate I'm going, I'm probably gonna be a millionaire around the end of the decade, where if I followed Dave's plan, it would take much longer. When I pay off my house in 26 years, I will probably be a multimillionaire, yet I still won't pay it off early, because I'd rather make the bank fund my investments thru the extremely low interest rate they gave me, which is effectively free as its below inflation. And in the extremely unlikely event there is a bank willing to give a 2.25% interest rate to a senior citizen 26 years from now, I'll remortgage my loan again to continue this process.

[@torma99]

So you were at the right place at the right time. Good for you, but the guy asking wants to buy now, with maybe 6+%. That is a whole different story.

[@glen46823]

​@@torma99 If I called in, Dave would still tell me to pay it off today, and that's terrible advice, because I've heard him say the exact same to many who have low interest rates. There is essentially zero risk in not paying a 2.25% mortgage, if you invest it instead. Sure there is risk in investments in the short term, but pretty much all risk levels out over a 30 year period. There is basically 0 risk the market wont grow over 2.25% annual average over 26 years. Infact, it will probably average at laest 10% growth as it almost always does over any long period. So its dumb to pay off a 2.25% debt instead of paying the minimum,, and invest it instead, and probably make an average of about 10-12% on it over the next 26 years of the mortgage. Infact, doing that, instead of doing what I'm doing now and flooding my retirement accounts with money would probably cost me hundreds of thousands over my lifetime.

[@chetanjilhewar1669]

I don’t get it. Why are other people telling this person to take out a mortgage when he can pay in full for cash for the house?