The Mistake the Financial World Makes About Money

[@Jordan-4-Him-NM]

We did what Dave is saying. I put $3000-$5000 a month on our home/land. It was paid off in 2 1/2 years. I tracked our spending on a spreadsheet I created and as we got closed we paid more. Our vehicles were already paid off and our CC were paid off every month. I am now retired from 23 years of teaching, and we are totally debt free. Both 71yo and enjoying peace at home.

[@JonathanIvy221]

As a teacher you were able to pay 3000-5000 a month on top of paying other bills? Pretty sure teachers don’t make that much

[@dudeorduuude5211]

​@@JonathanIvy221but he indicates 2 people.

[@Jordan-4-Him-NM]

Married- not the only income.

[@jeremiahthompson4909]

Q

[@adamseidel9780]

Dave does not advocate doing that with your primary residence

[@rednoseplaya]

Cuddos to you Dave. I was introduced to your baby steps back in 2006. In 2005 I was pushed into filing for bankruptcy and had nothing. I was living paycheck to paycheck. I posted your principles up on my office bullitenboard. Lived by these principles daily. Today I have amassed over $3.5+ million. You've changed my mindset for the better... 👍👍👍

[@inthebooks3947]

Never give up your employer match

[@mxerb5912]

I’m fortunate to have started investing at 22 in my 401k. At 41 it’s at 700k. Depending on how much debt, don’t pause the investing. Time is the only resource that you never get back

[@LittleMopeHead]

Very nice! I invest late at 31. $150k at 38 thanks to profit sharing at my company.

[@taraanthony6326]

Wow, you must've maxed out early on.

[@mxerb5912]

@@taraanthony6326 not at all. Probably an average of 12k a year. Only the past 2 years has it been maxed out. The power of compound interest.

[@rsimmons1980]

​@taraanthony6326 no, he has so much because of time. He could have just invested $300 a month of so and it's now worth $700k.

[@sktim4109]

You discovered and followed the path least traveled! Brilliant! I started 401k at 26 and I regret those 4 years that I missed out on the match and more importantly, time in the market.

[@truthseeker6370]

From experience having tried both the Avalanche method and the Baby Steps. It was the baby steps that gave me a sense of accomplishment early- which gave me the drive to continue and BELIEVE I Could do this! It's 💯% behavior over math. Dave is 100% right on this. It was behavior and temporary feelings that got everyone into debt.

[@200284floridaboy]

Run it straight up the middle. Stop zigzagging. Man when you put it like that, it makes alot of sense. I get a little lost/overwhelmed listening/watching this channel but putting some of this in terms that people can understand completely is awesome

[@genglandoh]

When helping people out of addiction there is a 12 step program so you can stay focused with some easy wins to stay motivated. Dave is saying you can't get financially well until you end your addiction to spending and to stay motivated in the process you need some easy wins.

[@genglandoh]

I did not mean that this guy an addict. I am saying that to win with money you need to address the spending habit not just the money side. Having small wins keeps you motivated in money, loosing weight and additions. Dave's baby steps takes this into account.

[@BrianW211]

The issue is that Dave's method doesn't check if a person actually has an "addiction" (i.e. a behavioral spending problem), it just assumes they do.

[@wurstbrot1772]

@@BrianW211 If you work for an addiction help line, it is okay to assume that callers have an addiction.

[@joseCalderon1976]

'mmmmmhhhhh mmmhhhhh. This lady just kills it for me every time 😂.

[@Bob-yh7ir]

We ended up doing these things without putting it in words or knowing it. Was taught if you cannot pay for it today, you can't have it. So the only debt we ever had was a house which we paid off in 14 years. Taking the money we were not giving to banks in payments and interest and putting it in savings and investments for 25+ years has now more than secured our lives and future. It's great to be able to do anything we want, give generously, and travel the world without worrying about the cost. Retiring in our 50s. Such a tremendous feeling of peace and contentedness. We don't worry about what the economy is doing. It does not affect us.

[@aolvaar8792]

@SouthernLife7772 At 25, I took a 3 year Vacation in the 1980, I saved and had savings to check off my "Bucket list". My Father told me the Best time to not work is in your 20's. In my 30's, I worked 20 years took the Pension and retired with lifetime family healthcare.

[@Joce123]

What was the purpose of your comment? Pat on your back? You are living in the past. Not relevant for most people, ok for rural living or married people in a different age group.

[@jeanpauloverton]

"Don't solve a behavior based problem with a math based solution." Brilliant.

[@SerinaGliues]

The financial system has been artificially pumped for over a decade to ensure big pockets were lined; and now those same hands will make a fortune in the largest transfer of wealth in human history by shorting it on the way down. Inflation does have a roll, but that's to keep everyone panicked, and focused on their bills and expenses, rather than focus on the capital crimes of politicians and corporations,I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market??

[@JaneBlac-]

Find stocks with yields that exceed the market and stocks that, at the very least, follow the long-term market trend. However, you should get guidance from a financial advisor if you want to create a successful long-term plan...

[@Brodin-id8re]

I agree, I've been in constant touch with an Investment advisor for approximately 17 months. These days, it's really easy to buy into trending stocks, but the task is determining when to sell or hold. That's where my advisor comes in, to help me with entry and exit points , I've accrued over $337k from an initially stagnant reserve of $148K all within 18 months...

[@Eric_Dennis]

I need a guide so i can salvage my port-folio due to the massive dips and come up with better strategies. How can one reach this advisor??

[@Brodin-id8re]

Having an advisor is essential for portfolio diversification. My advisor is Stacie Lynn Winson who is easily searchable and has extensive knowledge of the financial markets.

[@JacobPaula]

thanks for sharing, i did a quick web search and found Stacie, she has a good profile and i hope to get a response soon

[@alfieburgess-z2e]

BUILDING WEALTH INVOLVES DEVELOPING GOOD HABITS LIKE REGULARLY PUTTING MONEY AWAY IN INTERVALS FOR SOLID INVESTMENTS. FINANCIAL MANAGEMENT IS A CRUCIAL TOPIC THAT MOST TEND TO SHY AWAY FROM, AND ENDS UP HAUNTING THEM IN THE NEAR FUTURE. PUTTING OUR TIME AND EFFORT IN ACTIVITIES AND INVESTMENTS THAT WILL YIELD A PROFITABLE RETURN IN THE FUTURE IS WHAT WE SHOULD BE AIMING FOR.

[@gwenhartwig]

Assets that can make one successful in life

[@gwenhartwig]

1... forex 2... stocks 3... shares

[@kierandavidson-r2t]

But i don't know why people remain poor due to ignorance

[@kierandavidson-r2t]

Forex is profitable and lucrative investment online

[@sheenahoran]

Natural, there's a lot of math involved in forex trading. but this is often presented in forms of daunting technical charts, indicators, patterns.

[@thomasfrederick71]

I think this is where it’s important to know yourself and how disciplined you are. I think Dave is right for the vast majority of the population.

[@bigscores7237]

Right. Dave and some of his cohosts are militantly anti-gambling. I am one of the .1% who have the character traits necessary to make a great living gambling. That doesn't mean Dave and Co are wrong.

[@aboutwhat1930]

​@@bigscores7237 Quite, yet the odds are heavily against gamblers. Even if you can beat the house enough to make a living, most houses have a lifetime limit and cutoff the biggest winners. Tourneys are generally far better as the publicity and buy-in vs total pot make it worthwhile for the casinos (and the total pot is the total for their risk, so you're not getting thrown out unless you're cheating).

[@amireallythatgrumpy6508]

There are no character traits necessary. To make a great living gambling, you must be devoid of all character traits.@@bigscores7237

[@AeroHilJL]

Austin, just do it the Ramsey way. From someone who tried to do everything in the beginning and the lack of focus is not that effective as I found myself. Now I’m out of debt and maxing everything out is no problem. With a spouse, it’s even faster with two accounts. You will catch up in no time!

[@imveryhungry112]

6 percent is a good match.

[@krobdawg]

There's no "wrong" plan between the snowball method vs the avalanche method. The best plan really does depend on the person as Dave mentioned

[@jimroscovius]

Neither is wrong, but one is definitely better than the other, and that's the snowball. Situation doesn't matter.

[@pey7777]

@@jimroscovius I used the avalanche method to get out of debt 4 months faster and saved over $8000 in interest I would've otherwised paid via the snowball, so the snowball is definitely not objectively better than the avalanche method

[@jimmymcgill6778]

@@jimroscovius One is not better then the other.

[@LittleMopeHead]

I went with the avalanche method for my student loan debt of $45k. I'm one of those, and was debt-free after 6 years, could have been sooner if I focused more.

[@jimroscovius]

@@jimmymcgill6778 Paying off debt quicker is ALWAYS better!!

[@Wilky2526]

This country runs on people who are bad with money, bailed out by those who are good with money.

[@indianatime]

It does go the other way: banks getting credit card interest, overdraft fees etc., being distributed to other more responsible via cash-back / points, employee wages, and shareholder dividends.

[@G360LIVE]

Not really. Back in 2008, the big banks showed that they're bad with money, and those banks were bailed out with taxpayer money. And today, the banks are still showing they're bad with money and still getting bailed out for it. America isn't only a capitalist society; we're very much into corporate socialism.

[@indianatime]

@@G360LIVE some details matter to your broad conclusions: In 08, only selective institutions were saved; others (ex Lehman B) were not. Earlier this year, depositors @ SVB had their FDIC coverage extended - which are generally supported through bank fees, not general taxpayer - while bank shareholders/bondholders themselves were wiped out, as they should have been. Based on that, I would offer, it is selective, occasional corporate socialism, vs "very much", and while not perfect, '23 had improvements over '08.

[@BrianaBudgets]

My bf told me he didn’t have money for rent this month then went out to eat and brought home a case of beer.

[@AuAdventures]

Time for a new BF..

[@Codscoldthunder]

I love the energy between these two they complement each other well. New school paired with the old school and it meshes well.

[@susan5661]

Just like losing weight. The math is eat less, exercise more equals weight loss. But the Behavioral based problems are what we struggle with

[@barbchumbley9142]

We are debt free by following these steps. However we always lived below our means and bought things at what we could comfortably afford. Both retired and enjoying life.😊

[@AT-hs9nf]

Today finally Mr. Ramsey has validated my point. I like him now more. Yes you can pay debt with logic and invest too and come up ahead but as he mentioned that requires discipline to the core and those are less than 1% of people like Erica he mentioned in the call. But kudos to pointing that. I am the same way because I am in no rush to pay my mortgage because of my XYZ reasons. But I am also very very disciplined with all I do. But majority of ppl should 100% follow what Ramsey teaches. Good people he is. Love this channel !!! 😊

[@Tanyagggggggg]

I purchased a lake lot and planned to build, paying cash. We make $160,000 total per year and live in Wisconsin. When building we will double our current home value and triple our current taxes. Is this going too far knowing we make $160,000. We are 40 & 48 and plan to retire at 65.

[@lucybell1487]

With regards to Rachel's childrens book im glad for what i have, i believe grown ups can set this tone in life if we relish our homes and not speak into them as an investment only....relishing our shelter is truly a sign of contentment!

[@jsolt143]

LOL Ill never forget the blump blump at the car dealership boy is that true ill use that one as a quote for sure i love it

[@markg999]

Compound interest is amazing id take the match. The match isnt going to take alot of money away from paying off the debt.

[@lkj0822g]

Yeah, Dave flip flops on math on a daily basis. One caller, he uses math to prove a point. Next caller, he discounts math when it doesn't jive with "muh baybee steps". The only time I would forego a company match is when you are so far under water you cannot pay for your essentials (housing, food, transportation).

[@bryandelcid4065]

Oh I’m just here for my typical much needed Dave rant. 😂

[@dcashgotem1]

Finally out of all debt .. but saving for a home nowadays is another story 😅

[@Dan16673]

Houses are dirt cheap

[@jimroscovius]

​@@Dan16673Now you can save up faster!!

[@iseepandas1]

@@Dan16673houses not in desirable locations are cheap*

[@Shortballa11]

@@Dan16673LIES

[@kiemtienomy]

@@Dan16673what planet are u living in ?

[@ianashton1226]

It so depends on the person. Dave is right: 75% of folks shd pay debt first. But if you’re by nature v controlled/disciplined, and you have a plan, you can do 2 things at once (pay debt and leverage valuable investment opps eg sharesave and pension matching)

[@jimroscovius]

Yes, you can do two things at once, but you get to your goals faster if you get out of debt first. I learned that after the fact. I would have been better off following Dave's plan exactly.

[@JustinCase780]

​@@jimroscoviusSo you are in the previous suggested 75% bucket so it made sense

[@dlogs9778]

If someone is 'controlled and disciplined' by nature, then more than likely they won't have debt.

[@jimroscovius]

@johnSmith-uz8nl That's right, after you're out of debt. Take the match, get out of debt except for the mortgage, then invest 15% while throwing everything else at the house, then invest like crazy after the house is paid off. It's not rocket science.

[@NoRegertsHere]

1/ Starter emergency fund 2/ Get the match 3/ debt snowball. This is where behaviour is located, instead of mathematically correct avalanche. 4/ invest min 15%/save for a home then invest 15% 5/ up investing to 25% (decide if paying off house asap is more important than having an extra $500k+ in investments in 20 years if excess is invested) 7/ pay off home

[@justinlawson3493]

I love the people that justify new cars with “I needed something safe for the kids” or something about having a warranty

[@rsimmons1980]

Never foregoe a company match.

[@heathervenkat1414]

Love the football field analogy

[@diahill1945]

I used the snowball before I even knew it had a name . My thought was if I could just pay off one it would mean less payout a month. Before I knew it, I had 2 , 3 and 4 paid off.

[@jmeboil]

This was one of his best videos to date. This is when I really like Dave

[@steelcastle5616]

Where is the study of millionaires Dave keeps referring to?

[@robloxvids2233]

You can't find it. Wonder why.

[@noahblacklock9811]

Really like how he phrased the car depreciation as $10,000 leaving your net worth. I've never thought of it that way. But how many times do you buy something in life and immediately lose that much value? You had $40,000 in cash, spent it, now own something that is essentially immediately worth $30,000 if you tried to turn around and sell it. Losing $10,000 in net worth for privilege of owning a car. As an investment vehicles really are truly dreadful. Makes sense why so many wealthy people I know personally and have seen online drive such basic cars. It's an awful way to retain wealth.

[@michaelwoods4495]

I have over thirty years of detailed financial records in Quicken--every nickel. I don't carry cars as assets, I expense them when bought. They're consumption, after all.

[@robloxvids2233]

​@@michaelwoods4495Then you don't know the first thing about accounting. Congrats on doing inaccurate accounting for 30 years.

[@NoRegertsHere]

Yes. It’s behaviour versus maths. But this guy would benefit from the FOO from The Money Guy on KZbin. Get the employer match. And then debt snowball, not avalanche. That’s the behaviour there

[@bigscores7237]

As has been pointed out here, the finance world is doing math, advanced math called actuarial science. It's just designed to ensure that the customer never motors up to the yacht club in a Hatteras.

[@randocrypto1678]

This guy is more of a money guy person than a Dave Ramsey person. The reality is he’s too financially put together for the Dave Ramsey plan to be his optimal plan. He’s getting a 100% return on that 6% contribution. Unless he has a debt with an insane interest rate, in no world does it make sense to forego that match.

[@noraazzi4673]

You obviously don't believe in the Dave plan either.

[@JustinCase780]

@@noraazzi4673 One can follow Dave and benefit a ton but it doesn't mean one must "believe" or not. The caller is correct in keeping his plan running while paying down his debt.

[@alexm260]

@@noraazzi4673Some people are capable of independent thought and don’t need to be cultishly devoted to an online guru’s way of doing things.

[@rsimmons1980]

Well Suze Orman says never miss out on an employer match.

[@noraazzi4673]

I'm pretty sure Suze Orman, who is a very wealthy woman, expects you to not be hip deep in debt when putting funds into a 401k.@@rsimmons1980

[@jasonk446]

I never paused my 401K contributions. The result of that was it took me 1.5 years to get out of debt instead of just 6 months. The last 6 months of trying to pay off my last non mortgage debt was difficult...def wanted to quit.

[@jimroscovius]

Just think if you would have gotten out of debt in 6 months. You could have invested so much more. The math nuts don't see that.

[@AP-uk4di]

That literally makes no sense. Nice try!

[@jimroscovius]

@AP-uk4di Makes perfect sense. Why spend 1.5 years getting put of debt when you can do it in 6 months??

[@Jumperman12mac]

Should've pause

[@jimroscovius]

@Jumperman12mac Or at least just do the match and invest more later.

[@chrisforker7487]

Just can’t reconcile this in my mind, but then again I’ve never had debt other than my mortgage.

[@ketterhs]

Love, love, love how they explained this with some new ways to say the thing they've been saying for years...."Run it up the middle"...."The financial world has been getting it wrong forever."...Great job again, folks. Thanks.

[@kathryncashner3294]

The question is whether you need constant positive reinforcement of seeing 10 monthly payments turn into 9 rather than seeing "i owed $100K and now I owe $80K will speak to you if accomplished in the same time period. Leaving a 6% match on the table makes sense if you are using the money to pay off 24% credit card debt AND can accomplish it quickly. But realize that it is costing you the gains on 12% compounded over years. Paying off the highest interest first will get the job done fastest IF you can stick to it, and leaving an employer match on the table is usually a mistake. And once you are debt free, seriously consider whether those 401K investments should be in a Roth or a traditional account. That traditional looks really good with the logic that "you're in your highest earning years, blah blah,: but when you reach retirement age, the picture may look a lot different to you...particularly if one of your goals is to leave money to your kids. Being able to leave that money to them tax free may be even more important and you won't have to take dictates from Uncle Sam about how much you must withdraw. It sort of amounts to whether $100 taxed now is better or worse than having taxes on $600 or more at retirement.

[@christopherpaige406]

Wrong. Numbers and math don't lie! Emotions make you take chances. Dave just said that it was not about math while explaining it with math. Pay off debt to increase free income to invest more. It's just math.

[@markspark7347]

Uh huh, that’s right, you tell ‘em Dave, uhuh, right, yeah, ah hah.. that’s all I heard the first 7 minutes 😅

[@Castheknotted]

I want to know daves opinion on chikfila

[@emoney1231]

Dave is all about recommending what will help the MOST people, not what is best for an individual. Do with that what you will.

[@annapatton4544]

Agree. When my husband said why we don't pay out the car completely, our balance is a joke, I said I'd rather put that extra money into mortgage since our interest on the car is $30 a month but the house is $550 a month. Every extra thousand we put into mortgage saves us almost 2 months worth of mortgage payments.

[@emoney1231]

@@annapatton4544 What are the interest rates on your car and mortgage?

[@330_Crew]

I see this all the time with amongst my MBA colleagues. They will show you mathematical equation after equation on a white board why it’s better to invest in the market than pay off a mortgage. But, no one can point to a single person that has successfully invested the extra monthly mortgage payments over the entire 30 year mortgage period the calculations assume. No one does it. No one has the tenacity to follow through for 30+ years. All of them would have just been better paying off the damn mortgage. But math won’t tell you that. It doesn’t factor in human nature.

[@cody5596]

This really just depends on how well you know yourself.

[@gilbertbrien2280]

These are very valuable info for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the knowledge embedded in it. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I've got $110k set aside to put in the market.

[@AmandaKatherineLeff-j9f]

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. I know someone who made over $350k in this recession-influenced market, but to the best of my knowledge, it was through an F.A

[@rineleff2009]

Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of investors raking in 6 to 7 digits in a space of months. So, I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2020, and the least I returned was $180k ROI, and this does not include capital gain.

[@maxwelltroy2375]

Mind if I ask you to point at how to reach this particular person assisting you? Seems you've figured it all out unlike the rest of us.

[@rineleff2009]

Camille Anne Hector, is my adviser, she is a consultation-free expert. She has her clients best interest at heart. I have been working with her since covid period. Though she's a very busy woman but she can offer you guide if you reach out.

[@KarenLynnOlsen]

Wow I know Camille. Her platform maintains a unique perspective and is very transparent with their investors. Regardless of whether or not she outperforms i will always stay invested as her methods alone with keeping investors in touch with their strategies and outlooks are something that so few managers are capable of and they should follow suit

[@Michelle-z6e7u]

Investing can be a very powerful way to grow your money and secure wealth for the future and for your children as well. Imagine making a profit of 10,000 dollars with my little capital of $2,000 with the help of Stacey Meredith.

[@Hubert_Bauer]

Amazing to see another trade with Ms. Stacey, I am currently on my 5th trade with her and my portfolio has grown tremendously. Their weekly signals are highly profitable

[@aleighholden8462]

Glad to see Ms Stacey mentioned here, my husband recommended her to me when I was in Spain during covid and she has been good ever since

[@davidmoore106]

This is not the first time I have heard of Miss Stacey and her exploits in the business world, but I have no idea how to contact her.

[@Michelle-z6e7u]

On

[@Michelle-z6e7u]

Telegram

[@jimmylegs06]

When you are 65 i doubt you will realize or even care what the amount you "lost" was when you were in your 30s and paused any retirement You wont even know what that amount would have yielded. You'll only know you got out of debt

[@MrWookie1981]

Not sure if my math brain could ever give up a 100% return to pay down a debt at 10%.

[@blackspiderman1887]

Depends how big the debt is and how big the return is.

[@MrWookie1981]

@@blackspiderman1887 percentages are percentages. Size does not matter. 100% return vs. 10% is all that matters.

[@alexm260]

The return is 100%... its match.

[@blackspiderman1887]

@@MrWookie1981 it matters. 100% match on $100 is only another $100. But if you're paying 10% interest on $100,000. Then you're paying $10,000. So the amount matters

[@MrWookie1981]

@@blackspiderman1887this is so wrong and why maybe you should just stick to Dave’s thinking. That $100 put against the debt would only save you $10. Putting it on the matching 401k would give you $100 which is $90 more than putting it in your debt. This is simple math but goes to show Dave attracts people with bad behaviours and average IQ.

[@stevenporter863]

Of course Dave's way pays off debt quicker. It also magnifies the opportunity cost of free employee match money - which could be worth tens of thousands by the end of your career.

[@amireallythatgrumpy6508]

Over the cause of a career, tens of thousands of dollars is absolutely nothing.

[@lkj0822g]

Let's use the nemisis of the Ramsey plan, a bit of math... A couple 25 years old making $100k per year with a 5% 401k match. Using Dave's mythical 10% return, forgoing that investment for three years is a lost opportunity of almost $3.5 million by age 65. The longer the time horizon, the greater the impact - simple math.

[@amireallythatgrumpy6508]

You mean the nemesis of all Americans. @@lkj0822g

[@RPMcMurphy33]

I love sports analogies. Thanks, Jade 🏈

[@StephenIC]

"its not the leather, its the carcinogens... you're getting cancer right now" lmaoo

[@captainkrunch6372]

Gonna pay off 15k loan next month 1st, then payoff 10k loan next month and a half then pay off 15k truck over next 2 months, working 70 to 84 hours a week.

[@captainkrunch6372]

Good thing company pays 10% 401k on base salary w/o match I've stopped 401 from my check.

[@joeyr1996]

Let’s stay away from the sports analogies… 😂

[@JustinCase780]

So true! It doesn't help as people need to just FOCUS on getting rid of the debt with a full court press and stop trying a hail mary.

[@coldflu]

Fiat debt is not money. Debt doesn’t represent real wealth, it takes it.

[@philipgerry5228]

People in their early 20s need to pay attention and avoid the debt ..You don’t need that expensive car and fancy restaurants. That can come later.

[@steelcastle5616]

Hey...I'm a boomer in my 60's and found out I don't need it now.

[@robloxvids2233]

Bifurcate doesn't mean spread out. It means separate into two. That's why it starts with the prefix "bi."

[@JasonGroom]

What he is saying here is using emotion over math. That is fine, it's a way to do it, but you can't assume it will leave you ahead financially. Example, I'm debt free except my home. My home is at 3%. Math says i make minimum payments until it is paid off and invest the extra for returns. Emotionally, i want my home to be mine free and clear because of the risk involved in having a loan on it should something happen financially. Making an emotional decision is fine if that is what you want to do, but in the match example, you will never beat the market.

[@benzmane7564]

Dave, just say "dumb ass". It's okay, we can handle it. Some of us need it. Some of us need to be called a dumb ass to wake up because "dumb butt" just doesn't cut it. It doesn't carry the same weight. It doesn't connect to that same part of our brain that feels the emotional impact of having been called a dumb ass in our past

[@alexm260]

A dumbass is someone who gives up 100% return on 6% of their salary because they have no grasp of basic finance.

[@richardgomez5008]

First Step: Don't get into debt. Second Step: Don't buy expensive. Third Step: Be happy with your blessings. Nobody can tell how long your life will be. Save something for a rainy day. 🤫🤫🤫🤫❤🇺🇸❤

[@cabayern9416]

I don't purchase a car as an investment. It is for transportation for 12-15 years.

[@Nick-gk6hj]

We dont need the background verbal affirmations "uhhuh, mmhmm, yeah, mmmm". Its distracting, unnecessary. Wait for an opportunity to contribute.

[@countdown2xstacy]

😂

[@huntershoemake2721]

Does the co host (can’t remember her name) ever disagree?

[@TharsanJeyachandran]

Lit ep

[@Lon1001]

If I was in the position to get an employer match on my retirement fund then contributing enough to max it out becomes my number one fiscal goal for me to be laser focussed on. Unless I had credit card debt but regardless of other debt. It's a good way to 1) pay yourself first 2) get free money 3) have my wealth growing. The reason is, if your employer offers a retirement benefit they likely also offer a high enough salary for you to have a big enough shovel to get well along the baby steps.

[@michaelpalumbo4880]

Dave is wrong. Always take the company match. Suppose the company match = $1,500 annually. If you wanted to, you could take it out, pay the 10% penalty ($150.00), pay the tax (say another 20% of $300.00), you still have $1,150.00 to put on your debts. Also, it is better to pay off your high interest debt first. Yea, Dave is pretty much full of shit most of the time.

[@amireallythatgrumpy6508]

If you have more than one debt, it's over, you have already failed. Too late to start using math at that point.

[@michaelpalumbo4880]

@@amireallythatgrumpy6508 That's ridiculous.

[@amireallythatgrumpy6508]

No. What's ridiculous is having debt. @@michaelpalumbo4880

[@jeffreywhitaker5154]

Jade is GOOD.

[@calebamyot2623]

Same academic background? Does that include your bankruptcy Dave? What classes did you take to learn how to steal?

[@amireallythatgrumpy6508]

Sorry honey but Dave never filed bankruptcy. He just WANTS you to believe he did.

[@EuroEnthusiast1990]

How about instead of not getting a match on your 401k you work harder to make the difference so you can apply the extra work to debt. Now you have both problem solved

[@michaelmcpherson915]

The math tracks though. Interest hurting you almost always is higher than interest working for you, so if you kill the debt, the absence of interest will help you with the interest that helps you.

[@alexm260]

You do not understand what a match is. It is a 100% return.

[@michaelmcpherson915]

I understand what a match is. My employer matches my HSA contributions. But in the context of bandwidth in a budget. Progress can go a lot faster without debt in the way

[@alexm260]

@@michaelmcpherson915You don’t understand, as your statement about the interest on debt shows. A match is a 100% return, which blows away the interest on any debt. So no, paying down debt, even 25% credit card debt does not put you ahead of a 100% match.

[@robloxvids2233]

​@@michaelmcpherson915Your employer matches your HSA contributions? I've used an HSA for 15 years and never heard of that.

[@marabethcarrington7525]

Wow love your answer here! This is a question I’ve been asking myself and refusing to accept your advice on (I’m an Accountant) But your right, it’s not a math problem! So math won’t get you out of it!

[@rednoseplaya]

True but, an overall life strategy move ???

[@Returnofthejedi2000]

I don’t agree with Dave here never give up the company match it literally free money… you can still have your main focus paying off debt… there are many things you can do go on a diet no restaurants no Starbucks… rice and beans…beans and rice … you get the point… great topic 😊😊😊

[@sk8r4life92188]

I’d be more motivated to clear the debt to get the reward of investing 15% plus 6%.

[@barryisa7353]

Shout out to the Money guy show, get the match!!!!!

[@blackspiderman1887]

It will depend how big your match is and how big your debt is. If u make 50k and If they match 100%. If you put in 15% of salary, that's a free $7500 a year. However if you have debt, if the interest your paying on the debt is more than what you're getting from the match, then it's not worth it.

[@Schwartz421]

Don’t ever pass up a guaranteed 100% ROI

[@ryankiel4895]

You cannot solve a moral problem with technology

[@nataliepope3286]

This sounds like a staged call but appreciate the advice regardless…😄

[@JustinCase780]

Could be! 😂 Dave hates being wrong and this seemed like the format to beat this one into the ground again like he does with the student debt loans. Either way the caller is correct in keeping his plan running while paying off his debt.

[@michaelwoods4495]

He keeps saying, "becoming a millionaire" but as I had to tell my grandson, "Ben, a million dollars isn't all that much money".

[@amireallythatgrumpy6508]

Whether it's a much money or not is irrelevant sweetheart. In order to have more than a million dollars, at some point you must cross the million dollar mark. In order to drive 100 miles, you must first drive 1 mile. Millionaire status is simply a milestone. Being a millionaire should be a goal that everyone who does not yet have a million dollars has. Once you reach that goal, you then aim higher. That's the way it has always been and the way it always will be.

[@michaelwoods4495]

Well said! Thanks for the response. @@amireallythatgrumpy6508

[@edwinroyal9734]

Most people couldn't dream of having a million dollars so even though it's purchasing power has gone down doesn't mean it shouldn't be a noble goal, especially when it's more attainable than ever!

[@luisman007]

I wish she didn't interrupt Dave so often, and reduce the laughing a little.

[@blashokowski8794]

Does Jade say anything else other than “Yeah”, “That’s right”, “I agree”, “Mhmmm”? How embarrassing that she can never formulate an opinion of her own

[@guccithunder6136]

Ikr lol

[@dr_pinna543]

He won't let her complete a sentence anyways

[@ScottishJazzman]

No, she’s useless.

[@CroisMoi]

She seems like a nice person, but I have not seen her add to the conversation. She detracts from it. She ticks the boxes though. It is sad that people get a job because they ticked the boxes. It brings down the quality of our work. No standards.

[@ScottishJazzman]

@@CroisMoi I don’t agree. I honestly don’t think she’s “ticking boxes”, unless it’s the only non-money box that Ramsey is interested in ticking (religion). I think she has achieved something incredible in paying down the amount of debt the she and her husband did, and I think that this was remarkable enough to get a shot on the show… However… she has only surface level understanding of personal finance, like black and white Baby Steps or nothing kind of understanding. She has very little understanding beyond that. You can tell that even Dave get frustrated when she (often) misses the mark when they share a session. That’s when you find him either interrupting her, or just correcting her when she stops parroting shallow “advice”. There are a few personalities who quietly disappeared from these shows, I do hope that Jade goes the same way sooner than later.

[@aqm8470]

Jade offering nothing except silly agreement noises all the time

[@JustinCase780]

One of the three things I disagree with from this show. 1) Stop your 401k when paying down your debt The other two: 2) Don't live together before marriage (not a purchase, just living as in rent) 3) You can expect 10-12% returns in mutuall funds

[@brianmcg321]

Wow, you’re wrong on all three.

[@JustinCase780]

@@brianmcg321 You "baaa" 😂

[@steveo601]

It’s more like 8-10 average over say 20 years. Some 15 some 6

[@JustinCase780]

@@steveo601 Yep!

[@5280Roadrunner]

Financial side of it is the goal. Know how is the actual strategy and activities that get you there. Goal without plan and action is a wish.

[@donaldlyons17]

But the math might say it is impossible to do?

[@huskyhooligans999]

Avalanche all day every day, suits you sir!

[@amireallythatgrumpy6508]

Avoiding debt all day every day.

[@barnabusdoyle4930]

One of the things I completely don’t agree with Dave on is using a HELOC or 0% transfer offers to pay of large amounts of CC debt. Behavior does not counter the $250 a month you are paying in interest on a $10k credit card. If you have $20k in credit card debt and a moderately low income, you will be paying more in interest then the max you likely will be able to put against the cards each month. That is trying to walk forward while on a treadmill moving in the other direction.

[@jimroscovius]

HELOCs are WAY too much of a risk. You could lose your house over a stupid card!! Dumb idea!!

[@barnabusdoyle4930]

@@jimroscovius Are you planning on not paying the card off at all? There are strategies for that too. But that’s a really dumb argument. Yes you could possibly lose the house if you don’t make the payment, but guess what. If you aren’t able to make the HELOC payments, you have a whole lot more problems that need to be addressed and if you can’t make the HELOC payment, then you probably can’t make the largest monthly payment you have either which means you’re going to lose the house anyway.

[@jimroscovius]

@barnabusdoyle4930 The problem is most people think the HELOC is the answer to debt. You actually aren't solving anything. You're just moving money around. Just pay off the cards as fast as possible. Nothing else - just pay off debt.

[@cryptkeeper5027]

Didn't make sense to me. Ability to pay off debt is based on your after tax income. If you contribute 6% to pretax retirement account like a 401k, you will not see any difference in your take home pay. So why would you leave money on the table if there will be no difference in your shovel (shovel= take home pay)

[@sdl2320]

Contributing to pre-tax retirement will lower your take-home pay…it doesn’t lower it as much as contributing to Roth/after-tax, but it’s still going to lower your take-home. Did you mean the employer’s additional 6% match? That’s not showing up in your take-home, it’s basically free money you are leaving behind if you don’t contribute your own 6%.

[@aolvaar8792]

I make $100K, 4 kids CTC>> I don't pay taxes. 6%= $6K There is a box on the W4: I did not incur a tax liability last year. and will not incur one this year. 0% withholding

[@lukeharris2622]

✝️

[@jimmymcgill6778]

The debt avalanche works. But Dave think his way is the only way. He is not always right. But narcists cannot say that they are wrong.

[@stratosfire1943]

Dave's method is applied more as a broadly used system that works best for people without control over their spending. He even says here that a short burst of focus is more helpful which insinuates he's working with people that may not be able to keep a very long term plan. Your capability to practice self control is one of the biggest factors when it comes to how you should approach handling debt, investments, risk and so far and so forth.

[@Tank-vi2dv]

WHEN did he say his way was the only way? You are such a liar.

[@jimmymcgill6778]

@@stratosfire1943 But he applies the same thing to everyone. Even for people that have self control.

[@amireallythatgrumpy6508]

How's life in the cult, Jimmy? By the way, the number of Americans with self control is exactly zero.

[@georgecottell6616]

​@@jimmymcgill6778if people had self control they wouldn't have tens of thousands of dollars in consumer debt to pay off. 😂

[@antoniocamargo6580]

Comon Dave, it's dumb to not get a match when it's 100% match

[@fsmoura]

2:35 laser is not focused light dave!!! REEEEEEEEEEEEEEE ( oДo)

[@lepoj]

Taking the match is NOT stepping over dimes to pick up pennies. That is completely false and the math backs that up. Dave: Finance is about changing your mindset and behavior. Also Dave: You can't focus on two things at once. Yes you can...if you change your mindset and behavior 🤦

[@tcgtpl]

Dave: Great job. You're being very thoughtful about this topic. Now let me tell you why you can't possibly be thoughtful about your money decisions.

[@JustinCase780]

@@tcgtpl Yes, that sounded so sales guy goofy.

[@adamseidel9780]

The answer is: you shouldn’t do what Dave says. It costs you money.

[@UtotheJ]

Uh...no...Ramsey is just really, really bad at Math...

[@amireallythatgrumpy6508]

As are 100% of Americans.

[@commonsenseisntcommon1776]

1st