The Truth About Dave Ramsey's 7 Baby Steps

[@MoneyGuyShow]

Take Your Finances to the Next Level ➡️ Subscribe Now: kzbin.info

[@justine42050]

What if your Employer doesn't match for your step 2 lol

[@veotisthompson1227]

Car loans is that 8% a year of your salary broken down per month or total cost of the vehicle ?

[@kathypeterson1076]

@@veotisthompson1227 tune in to Dave Ramsey on the radio. You’ll catch the bug.👍🏻😁

[@wwrussell180]

@@italiancapo7 Buy!

[@imatroll2428]

How does retirement investing percentages work for school employees? They have forced retirement plans like CalSTRS. But how do we adjust percentages accordingly?

[@theaccentedguy1505]

2 years ago I was homeless. Thanks to Dave's baby steps I'm on baby step 4. Yes, that's right. Baby step 4 in two year's time. I'm so grateful.

[@Faith-un7ns]

That is awesome! Good job 👏. I follow Dave Ramsey too. I’m almost done baby step 2 but that’s including my house because it is a HELOC account. Pretty soon I’ll start baby step 3 and then I will jump to baby step 7 because kids are grown and house will be paid for already. Keep it up 👍.

[@philossifer6252]

I was homeless 2 years ago too. I never heard of Dave Ramsey, but I cracked his method with a notepad and ever since I've been able to start my wealth building. So in the end, what Dave teaches is based on true principles. Anyone can do, and everyone should do it.

[@theaccentedguy1505]

@@philossifer6252 That's awesome...and now it's just about following the plan you already have got going on. Congratulations 😁🍾

[@snoolee7950]

You had homeless-privilege and nothing to impede or distract you.

[@eddymontiel4153]

@@snoolee7950 if you think living in the street is easier than living with a roof over your head you obviously grew up spoiled and still are, homeless have less opportunities than we do cause no one wants to give them a chance

[@DeedraBoodram]

Baby Step 2 is sooooo much deeper than how you really explained. Its the gazelle intensity during baby step 2 that REALLY makes Dave Ramsey's program different. It sets it apart from other programs. The gazelle intensity during baby step 2 makes you think twice about ever going into debt again. We are now on baby step 4, 5 and 6. Baby Step 2 was a dark time for me. We worked our butts off and sacrificed a lot to get out of debt. It was worth it but dang it was hard.

[@joshhoward1289]

Well said, congrats to you!

[@howieziegler3110]

100% agree… I think the snowball needs a better understanding too. You’re paying minimum payments on all debts to keep them current. Everything you can over the minimums goes to the smallest one. Once that’s paid all of that payment is added to the next smallest debt. The amount your paying increases after each debt paid.

[@budc.8172]

What I like about Dave's approach is he keeps it as simple as possible so even people unfamiliar with money can follow. That is why he calls it the baby steps. Then once people begin to learn more about debt and investing they can begin to move on from those steps. In the Army we called this the crawl, walk, run process. Dave lets people crawl through the process of financial success and when they learned enough people can begin to walk on thier own untill they run to retirement. All the while his advice is just vague enough to keep people on track without holding thier hand the whole time. Just like the adage says teach a man to fish he will eat for a lifetime. Dave teaches you to fish by not being overly specific and allowing you to get out and learn.

[@arizonapapa9453]

Dave teaches you to live like no one else for a season, so that YOU can then live and give like no one else for the rest of your life, AND change your family tree. He's never mad at people that want to do their own plan, just don't say you're working his!

[@sherridonati]

I agree 100%! If I've been mishandling my finances, drowning in debt, and feel like there's no hope or way out, listening to the data, numbers, statistics, etc., these guys are talking about would make me want to jump off a cliff. A simple, proven plan that ANYONE can follow will definitely help more people.

[@arizonapapa9453]

@@sherridonati it's almost too simple for people to grasp. Live on less than you make and if that's not possible, make more! How profound is that? Then to hear people try and argue why it won't work in their case is kind of comical. You can show a person a thought, but you can't MAKE them think! Of course these guys are just using Dave's name for clickbait.

[@MoneyGuyShow]

Sherri, I agree with you. Dave’s Baby Steps are perfect for those stuck in a bad place. This is also why they are so rigid. We know our content will not connect with everyone. We are trying to help those that master the basics and are now at the point wondering “what’s next?” Really appreciate you taking the time to watch and leave a comment.

[@MoneyGuyShow]

“Clickbait” is harsh, but if that is what brought you here... welcome👍. We have been creating awesome free content as part of the Abundance Cycle since 2006. Poke around a few of our shows and I think you will like what you see and hear.

[@dionmcneeley7859]

Money may not buy happiness. But lack of money buys depression stress sadness Divorce Debt Fewer options Loneliness. ...

[@geardrivensmoke1657]

That's fake news. It certainly brings on new problems, but so does alot of money. Check out Jobe, he lost it all, and was blessed once again because he was ok with nothing.

[@arizonapapa9453]

All money, or the lack there of actually does is shine a light that will expose your true character. If you have character flaws, it will expose them quickly, just as it will expose honorable character traits. Money is just a tool, it's what you do with the tool that is either honorable or not.

[@lidyasolomon5557]

Stfu

[@vinniedeluca2188]

Arizona Papa I don’t know you but I can say In confidence that you have had a lot of money in the past and you’ve also been broke at one point because what you said is 100% true, if your a good person at heart then yes money will bring you more happiness but if your a miserable person please don’t think for a second that having a lot of money will change you into a happy person because it won’t happen, for example look at the mega millionaires in Hollywood that take their own lives, more money then they could spend in 10 lifetimes but their hearts were bitter and cold and money only made things worse

[@max_im_um]

Money buys hookers and coke, that's enough for happiness for me

[@cmdny11]

I’ll forever be thankful to finding Dave Ramsey. Completely overhauled my attitude towards money. Now that I’m rounding out Baby Step 3, I’m venturing into other resources and education, including this channel!

[@adamandtinafelibrico4572]

This. Before I couldn't even fathom putting money into investments with our student loans and consumer debt. Now that we're debt free I'm finally allowed to look into investing which was just a dream years ago.

[@nicholasmcgee4630]

That winning feeling when you see a comma in your bank account for the first time is real.

[@HermanWillems]

You mean a dot right? a comma is for numbers below 1 like this: 10.000,00 ten thousand euro's.

[@nicholasmcgee4630]

@@HermanWillems haha no I meant one thousand lol. I was referring to the baby step one. Most people don't have a thousand dollars but when they take that first step and save it up, it makes you feel like success with money is possible for the first time.

[@ben3308]

Aerism Americans use dot for cents, comma for thousands. The opposite of Europe.

[@michaelfenell3602]

@@HermanWillems It is an American based show, so he would mean a comma. I do not know their demographic, but I would bet they get a lot more American viewers then they do European.

[@gtbigdog3507]

@@HermanWillems it’s the opposite in USA

[@lmbarnes3]

My son did Dave Ramsey in high school. The County bought the school package. My son lives by this. It does not include the 7 steps but provides the basic debt principles. He took it in 10th grade.

[@MoneyGuyShow]

Teaching personal finance basics in high school is incredible 👍

[@jbr1952]

Your lucky. Great for him.

[@MrT-uo1ss]

Personal finance should be mandatory in high school. Unfortunately it seems like the government wants ignorant taxpayers. This way they can continue to spend more than collected in taxes.

[@carrettestobbs9206]

@@MoneyGuyShow That is good. The financial education foundation is valuable

[@mkcraycray1316]

I wish my high school had offered financial ed. Or now in 2020, wish my daughters hs offered financial ed even as an elective. There's nothing

[@EmilyLucille523]

I am debt free because of Dave Ramsey’s Baby steps! Thanks Dave!!

[@toymachine]

I'm debt free because I'm an adult and I have self control, not because of a bellend who takes advantage of those of us who are cognitively impaired.

[@Nyfalhem]

@@toymachine Hey I resemble that remark!!!!

[@getreallogic2057]

17 years ago very skeptical about the baby steps but now I'm my 40s also semi retired. Baby steps work! go figure!

[@rjeffers3726]

Did you listen to him back when he was head to head with Rush Limbaugh. Hha

[@AkoDal]

Awesome. Spot on. Most definitely

[@ericcriteser4001]

Me, too. As a matter of fact, off Dave's advice I was able to fully retire at age 36. Now, I'm 44 and I went "back to work" last year for fun as a consultant so I can stay engaged in my industry. Dave's advice is exactly what most people need to follow.

[@EmilGhiurau]

@@ericcriteser4001 what’s your consultant job?

[@ericcriteser4001]

@@EmilGhiurau Logistics/supply chain management

[@YakMotley]

Great show! Man, I did this way different and turned out fine. I cashed horded my entire 20s saving well over 60% of my money while in the military, and investing in the market. Saving $250k during my 20s. The first three houses I bought I never lived in. Now they are rented and im about to buy my fourth cash. I think it depends on if you are willing to "live on nothing" till you are ready to make your assault on the financial world. I think so many people are not willing to give up "stuff" to give them a chance at getting rich!

[@frankiegunnz8066]

How was your dating while "living on nothing"?

[@austinweller8707]

@@frankiegunnz8066 typically that’s the trade off 😭😭

[@tristanhnl]

@@frankiegunnz8066 If people feel the need to spend money in order to make a relationship works, chances are that relationship is not a sound one. Of course you need to spend a bit of money, there's no question about that. But if the relationship suffers because of a lack of spending, I'm not sure the other person likes you for you. Besides there are tons of things people can do on a date that don't cost much - hikes, walks on the beach, picnics, tennis, Bible study.... stuff like that.

[@watwat79]

@@frankiegunnz8066 Have you seen his wife? I think it all worked out fine for Jack.

[@roshunepp]

I feel the 7 baby steps are mostly for people who are already in a bad place or who are not yet ready to live on nothing. The plan gives them the light at the end of the tunnel to know that living on nothing is temporary.

[@andrewclodfelter3782]

Just finished baby step 3 of daves and it feels amazing. The psychological effect of daves plan is amazing. Stopping the 401k sucked but is worth it. Completely debt free in 5 months vs dragging it out and losing sight of the endgame.

[@kylercook-TB]

Your situations is where it would make sense to stop retirement contributions. You were able to know out debt in less than a half of a year. Some people would have to pay 5 years to get out of debt. In that circumstance it doesn’t make sense to quit contributions.

[@andrewclodfelter3782]

Kyler Cook that is true. But man it is motivating to see it go away quickly. I mean I went fire and brimstone on my debt.

[@a.r.hollowayauthor7210]

​@@kylercook-TB Eh, if a person is in that much debt relative to their income, then they have other problems that need to be resolved. Primarily behavioral problems. They're in a debt crisis that needs taken care of now, otherwise one major life crisis or event? And they're looking at bankruptcy. Gizel that crap and kill that debt with fire, then pile cash and invest. Max your investments, max your retirement. Without debt and a crisis looming over you, you will work harder, you will feel healthier, and you will make more money. It's just a truth of human behavior. I'm on the debt snowball right now, and other then student loans (the one thing I disagree with Dave on as long as the degree is in an actual profession and not underwater basket weaving), I'm debt-free in a couple of months. I'm in school, working a side hustle, and going to start a full-time career in a few months once I graduate with my MPA. The career I'm looking at going into (local gov) I can make starting out around 60-80k a year (with the potential to get up to 200k a year). I'll have my student loan debt paid off in approximately 3-5 years (worst case scenario) once I'm working (approximately 120k for both my masters and my undergrad total, and that's me overestimating). At that point, I'll save save save, buy a house outright in approximately 3-5 years, have a home base, then begin buying rental properties and maxing out my retirement and investment matches at whatever city or county or state gov I'm working for at that point. by the time I'm 40 (i'm almost 30 now), I'll have changed the trajectory of my family tree. No more month to month paycheck to paycheck living, no more crisis over a stupid flat tire, despite making 50k a year, no more taking loans out from payday loan sharks. No more being scared that one major medical issue is going to bankrupt me at 30. None of that. My point is, though I understand what these guys are saying and what you are saying with regards to the math behind it (I'll be focused on bond and budget issues when I start working, I know the power of compounding interest and long term investing), personal finance is a different ball game than say a large scale business or a city that is financially healthy, but takes out capital investment bonds. You don't take out capital investment bonds (loans basically) for your personal life if you have the cash to just pay for the thing do you? No, because that would cause unnecessary stress and hassle. Well, those businesses and large scale towns or cities will do that, some times for political reasons, some times for tax or financial reasons. Another thing to think about is if one thing happens like you get sick and have to go to the hospital, or a child dies, or you have an unexpected kid with special needs or whatever it is (life happens, and it will happen to you), if you've done things by cash flowing them you and your family are safe. Other than paying for your monthly bills, things are okay. All you have to worry about at that point is food, keeping the lights on, and your health or the health of your kid, or whatever it is. You don't have to play funny money games to make things work. Anyway, thats my story, and my perspective. Personal finance is fundamentally a different beast then say, business or corporate finance.

[@a.r.hollowayauthor7210]

@@andrewclodfelter3782 Good for you man thats awesome!

[@MrKijana23]

i'm a hardcore Dave fan, but gosh I love these guys!

[@MoneyGuyShow]

We will not tell Dave 😉👍

[@sharonmadan6677]

Same here ❤️

[@BuiltonGODSrock]

Same but i love both. I like this show because they going into more details about specifics of investing

[@thundersnow93]

I think they are a tab bit better and more specific when it comes to the investing portion of life finances. If you're not subject to debt like me (I use credit cards, but ALWAYS pay them off each month), then getting more into details about HSA, investment strategies, etc. is even more helpful than Ramsey's principles.

[@alexg8460]

People say money doesnt buy happiness but i will tell you , when tragedy strikes (your 10k car needs 2k repair) and you have no debt and an emergency fund in place? Guess what its not a tragedy for you its just a problem but for someone living pay check to pay check its the end of the world....

[@benalias5766]

Money can't buy happiness, but it can buy you out of a lot of misery.

[@MarksTournaments]

@@benalias5766 so can debt

[@benalias5766]

@@MarksTournaments ? Did you misread my comment or are you suggesting that taking on debt is a good way to deal with problems? (I mean, debt can be useful but it's not a good general solution for unhappiness).

[@benwhitnell]

Ben Alias might not buy you happiness but it is a hell of a down payment!

[@tobbertire]

Money cant buy happiness, but a lack of it is sure to make you unhappy

[@zacholiver6765]

Woah im really average, 63k a year income 16500 credit card debt... luckily no student loans. But I HATE my debt and am starting a 2nd business to pay it down as fast as possible. Glad I learned my lesson at 26

[@devenmurray3580]

Hey how’s this going?

[@mkcraycray1316]

I used the baby steps with the snowball debt payoff. I'm debt free for the 1st time in my life at 46. Now I need to play catchup on retirement

[@TPG1977]

Nice job. Kudos.

[@Santiasm]

This is exactly where I am. Trying to figure out how to save/invest for a successful retirement.

[@gtbigdog3507]

Keep it up

[@fpsoftdev]

My main problem with “employer match” is that if you lose your job or experience hardship that 401k will not help you but debt collectors will definitely be ringing your phone. Pay off debt. Life gets so much easier when you wake up in the morning knowing you don’t owe anyone a thing.

[@bryanlozano8326]

I listen mostly to Dave but regularly check in with you guys. I appreciate advice from both. I think you oversimplified the Baby Steps as Dave offers additional advice for each step. For example Baby Step 4 15% is just the start. But after college funding is taken care of and the house is paid off he recommends maxing out retirement and even going in to other investing. The step is 15% but it isn’t the end all be all of investing as far as Dave recommends.

[@davidwagner2626]

They really didn't go in to the details of the baby steps. There was no mention of stopping investing at baby step 2 to pay off debt quicker either. The 15% is only until step 6 is complete. Prior to starting the baby steps I was up to 10% retirement contributions and really couldn't do much more than that. 15% at step 4 won't be an issue when I get there and after step 6, we will easily be able to do 30% while still saving for large purchases such as appliances, transportation, furniture as well as giving. Fortunately with my employer I am not missing out on a matching contribution but following the baby steps I may miss out on adding to my retirement for about a year but my ability to contribute later will far outweigh the loss.

[@TB-rx1ue]

That’s a terrible idea to pay off mortgage earlier then invest more. You’d have more compounding doing that in reverse

[@HVDynamo]

@@AaronGrosch29 Yeah, as much as I know I can earn more in the long run by keeping the debt and just making normal payments. I hate the stress of owing money, and possibly losing my job. Knowing that I'll have a house over my head for just tax and insurance is worth a lot in peace of mind.

[@live_unafraid47]

Baby steps 4, 5, and 6. Are supposed to happen simultaneously. After you complete your 3 to 6 month emergency fund you calm down start contributing 15% to retirement, contriute to college funds and throw any extra at the mortgage.

[@lisadawley]

I would still be in debt if it wasn't for Dave Ramsey. His baby steps saved me.

[@gtbigdog3507]

Me too

[@Imhere12345]

Same here. Paid off 68 thousand in 4 years. Thanks Dave

[@fearless798]

You gave me hope cause I've been thinking about filing for bankruptcy

[@eddymontiel4153]

@@Imhere12345 I’m here crying about 20k but I have no college education so no chance at a real career maybe military? I’m only 22 and I feel like a loser and don’t know what to do with my life

[@Recken1]

@@eddymontiel4153 22 is too young to give up. Go to a vocational school. The world needs mechanics, plumbers, handymen. The world is your oyster. College isn't for everyone and I'd be very careful about if you are unsure.

[@chubstuf]

Dave is an amazing person to listen to when starting at ground 0. These guys have my heart these days and I listen to them at least monthly, even when I am on track, to make sure I stay that way and because their energy keeps me excited to meet my goals (and theirs)!

[@ElleH123-w7w]

I think what I like about Dave is he and his hosts instill so much hope into very often dire circumstances. He doesn’t allow for self pity, fear or wallowing yet without shaming. He’s entertaining and yet he’s the old school dad type that our society is missing these days. I’m happy to find the Money Guys though because we’ve been good with money and it does help to go beyond.

[@ericb1317]

This is the best episode yet! i think its the perfect "I graduated Ramsey High school, and now i want to go to Money University". One big thing about this episode is that it really describes who you are as a financial adviser and if i want to keep on listening. After hearing ppl like dave say "Nope cut up all the cards, i dont care if you get cash back and only use it on groceries, nope nope nope nope nope".. it gets hard to listen to him after awhile, since i know i am personally doing something better for me, myself and I.

[@matthewr2361]

No you just flunked out of dave ramsey high and are trying to make it at clown school.

[@Spudy-]

As a Canadian and aspiring Certified Financial Planner, I appreciate this kind of content that you guys are putting out. It may not 100% directly apply to me but there are defiantly great lessons to be taken away. Canadians and Americans have a lot of improving to do when it comes to our finances, and content like this is sure to help. Thanks again and you've got a new listener now.

[@jacobframe8769]

I think what Dave technically hits on is that almost nobody Masters debt management and self-control. I think that is his main point that spending out of control is generally a childish emotional reaction that must be dealt with and a rather strong emotional system

[@lindawer]

Yes he definitely focuses on behavioral change.

[@matthines7832]

How do you navigate the plans when an emergency happens? Say you've got 3 months fully funded e fund but then your homes hvac goes out and you are forced to replace it. Do you use your efund and start bank at step 1? How do you navigate the emergencies within the steps?

[@gregoryguerrier963]

I used Dave Ramsey's baby steps after I purchased Financial Peace University and Total Money Makeover. I was $80,000 in debt. $50,000 was student loan debt and $30,000 was credit card debt. In four years I paid off all of the debt and was able to purchase a two-bedroom condo with cash 2 years later. I just want to thank Dave Ramsey and his team for all that they do to help people.

[@bellmattwebb]

I've been watching Dave for a couple of years. Debt free except for the house at 42. Wish I had found you guys sooner but I'm going to get after it even more now. Thanks guys!

[@benwhitnell]

Dave Ramsey is really the AA of the financial world, especially when it comes to debt. If you’re an alcoholic, you don’t get to drink anymore. Period. If you get your debt situation to a point where you just can’t see another way out, it’s probably for the best you just cut the cards up and don’t use them anymore. But just like booze, if you can leverage credit appropriately, you can enjoy it. As a matter of philosophical preference I tend to agree with him about minimizing debt when I buy rental properties. I’ll use leverage when there is a PERFECT property that I don’t have the liquid cash available for and pay it off as quickly as I can. But for the most part I pay for them in cash, so that they are ALWAYS cash flow positive. Might not be the best ROI in every case but I’m never in the red.

[@dtrout16]

What resources did you use to learn about real estate?

[@benwhitnell]

Daniel Trout I live in real estate and I walk over it almost every day. (Which is a snarky way to say I think most resources out there are pretty overrated. I buy houses I’d want to live in, at prices I think are fair based on what I’d pay to live there or people are paying to live next door.)

[@robertcherry7190]

@@benwhitnell - Excellent metaphor and I like your approach. It makes sense.

[@tipsyflowerpot5188]

I LOVE this "Dave the AA"!

[@jayholiday256]

That's right, I've never had problems with debt, Dave's stuff is for people with debt problems.

[@taramisu1483]

I think you guys and Dave all want to do good and be helpful. I appreciate all the content that you have so generously put out there to the public.

[@MoneyGuyShow]

Thanks so much Tara!

[@willelliott5052]

I am very thankful that I happened to find Dave on the radio nearly 12 years ago. His principles helped me to dramatically improve my financial future.

[@andratoma9834]

I love Dave Ramsey - I listen to him every day.. he helped me tremendously. He is still helping me today by inspiring me to save

[@paulorlando6087]

Dave's plan is waaaaaaaaaay better than these guys' plan. They advocate investing in your 401k to get the match even though you still have debt. They are fundamentally denying the risk that debt is.

[@MoneyGuyShow]

Math is hard 🤷‍♂️

[@mikedeanb]

@@MoneyGuyShow It's not about math. If people were worried about the math, they wouldn't be in debt in the first place. Once you're done with debt, then you can think about math.

[@MagMan4x4]

If you need someone to hold your hand Dave's plan is right, if you can think for yourself then TMG is the way to go..

[@harryallenpearce89]

@@mikedeanb I agree. Dave teaches you to throw financial punches with mean intentions. The snowball makes your financial punches harder and harder, encouraging you to budget, which wasn’t really mentioned as part of baby step 1. The money guys have light jabs that will win a decision by the judges if you follow their plan. But you’re throwing jabs while the credit cards are throwing from the hip at you, it’s quite unnerving. I’d rather be Mike Tyson than Tyrell Biggs. My vehicle payment is $650 and my house was $200. I was sending $1,000 on the vehicle and $500 on the house. Light Jabs After hearing Ramsey, I paid the minimum on the vehicle, stopped my Roth and investing contributions, budgeted for the first time, eliminated some unnecessary bills, like gym membership. At the end, I sent $3,200 on the house. I was shocked I could throw such a check at my debt. Because I can’t do math, I didn’t understand how the mortgage worked. I paid off my house and I didn’t even know it, PLUS I had overpaid $400, which I had placed on the Vehicle debt. Maybe my math is bad, but I look forward to seeing how big a check I can send in. I’m aiming for $4k this month on the vehicle. You can’t put a number on motivation.

[@asiaboinamejin]

I like what you guys are doing, and I am learning a lot. I grow up in the projects (from age 14 to 32), and my family had no money. I am a fresh out of school electrical/computer engineer in Los Angeles area. I am literally a decade behind my peers in term of saving/investing. I am 33. It was a wake up call when my employer asked have I started a 401K? And I answered no because I was working part-time (on average 30 hours a week even while in college) at a minimum wages in my 20s until I graduated last year at the age of 32 with $45K student loan. I paid it off in 2 months. I also listening to Dave Ramsey and his callers. I also learned a lot from those callers. Both Money Guy and Dave Ramsey are awesome! I wished I didn't screw around in my early 20s, and KZbin just started back then. Thank you. Subscribed!

[@dannylengyel5830]

33 is still young. You are on the right path. Good luck!

[@curtisfarley9919]

Ok. You don't use your emergency fund to pay off your house. Step 6 is paying off your house early WHILE keeping your emergency fund intact.

[@NektonicNick]

Baby Steps Time Stamps: 1. 5:50 2. 9:26 3. 22:05 4. 25:46 5. 34:45 6. 41:19 7. 47:33

[@EverydayStuffNow]

Dramatic Reading thank you!

[@alexrudd1510]

.

[@stevelehto7736]

Thank you. This saves the nonsense

[@anniesshenanigans3815]

thanks dont need all the bs before. maybe later..

[@summerk1465]

Mahalo so much

[@debbiefried3533]

Dave Ramsey recommends paying off the house as fast as possible only AFTER all other debts are paid AND you have your 3-6 month emergency fund in place.

[@nbdysfool3]

I like Daves sound approach! Dave approach is based on new learned behaviors and discipline. His methods work and have me 100% debt free with 350k saved and 40% going into my 401k yearly! At 54 I feel I’m on track! I have followed Dave for years!

[@marissareed5790]

My heart goes out to everyone in that 16k credit card debt. That’s a horrible feeling.

[@alexandrinacastillo5364]

I take both Dave Ramsey and The Money Guys approach when it comes to personal finance. It works for me & my family. So, thank you guys!

[@blade643]

Agreed! Discipline is key in order to play both sides and still win

[@jordancollier6716]

Love this show, was just introduced to it a few days ago. Just about to finish Dave's Baby Step 3 in 10 days, and am in my 20s and looking to maximize! Thank you for putting out such awesome content!

[@MoneyGuyShow]

Thanks Jordan 👍

[@abreh622]

Love you guys. I listen to both you and Dave, but my thought process and strategy leans more in your direction. Thank you for all you do and keep it up.

[@iridescent888]

You have to keep in mind that Dave's audience is a completely different segment compared to Money Guy's. Dave's advice is good for people who are in a mess both financially and emotionally. Money Guy show is good for people who are already good with money. The 2 advices should be taken based on individual context. You don't go to a 50lb crack addict and ask him to eat healthy and work out, you have to treat him properly first. Pick the advice that is best for your own situation.

[@devinparker1748]

I work my own plan with help from Dave, the Money Guy, Chris Hogan and others. It works just fine!!

[@MagMan4x4]

too bad Hogan got sacked.

[@devinparker1748]

@@MagMan4x4 yes too bad! Luv my Uncle Hogan!!

[@ttu888didfitrhondavigil8]

We are a Dave Ramsey debt free, mortgage free family. Chris Hogan is the "what's next guy" for Dave Ramsey. My new "what's next guys" are the Money Guys. I appreciate the in depth information, specific next steps. That is where Chris falls short.

[@TheNotSoFakeNews]

Dave is better at reaching out to people who are out of control with their spending. His initial steps are lower, easier and more achievable and very specific. However, I think your steps are better for someone who has already conquored their emotional spending.

[@a-aronpre-sent1447]

What really puts me in Dave’s camp over Money Guys is the simplicity and the focus of changing behavior. Most Everyone trying to change their lives “knows” what to do. But the little wins of the baby steps gets you “gazelle intense” about money and has changed my whole life. Papa Dave gives you that kick in the ass you need to get you going. He tells it like it is. When you do stupid, he makes sure you know it. Live like no one else so that one day you can live and GIVE like no one else. -Dave Ramsey.

[@Larry_M6790]

And that's the basics of most peoples problems with debt. Baby steps 1-3 is all about changing behaviors. Like Dave says, if people were intelligent and disciplined in how they spend their money they wouldn't be in debt to begin with. Now they're in debt up to their ears, their behavior is much more important rather than one credit card has a higher interest rate than the other credit card.

[@greg6909]

We finished the baby steps. Both camps empower people and better lives! But money guys are our next teachers, we learned the behaviors and are looking forward to what's next!

[@garystike6547]

The part that you are missing that sets Dave Ramsey’s plan apart from others is HOPE and CONFIDENCE! The baby steps give you hope as you are working them and by the time you get through baby step 3 there is a confidence that “hey I can win with money I’ve already done all this and the only thing I owe money on is my house, this is amazing” that really just can’t be matched. Being debt free is a peace that no amount of money while still holding debt can match.

[@roadtriptovegas]

I think baby step one is outdated as far as the amount. $1000 used to be enough to cover deductibles, etc. Now $5000 is a much better figure.

[@ThatGuy-mu2rr]

Ssshhhh ….. don’t bring that up to Dave. Him and his acolytes will dog pile you in the comments section. Dave can do no wrong and he is 100 % right about EVERYTHING.

[@stevemcleod4608]

Thanks for the good advice and respectful comments on Dave Ramsey. The chat today was truly helpful.

[@karens5951]

The $1000 is not in case you lose a job, but for a normal emergency like a car repair or a hot water heater so you can cover it and not have to put it on the credit card. If you are paying off debt first and have to put it on the credit card you feel like your work has been for nothing. Psychologically it works.

[@franny2466]

Can you explain how you got the equity risk premium figures for each age group?

[@ReinaV]

I love this analysis! I fall into the Dave Ramsey-ish group. I can't say that I follow everything to the T but I subscribe to his ideas. I enjoy the money guys because they give a better idea on how to invest and what you should start thinking about when it comes to how you want to spread that 15-23% of income that should be saved for retirement. Very good insight guys!

[@CG-zz4nd]

Dave says to do Steps 4, 5, and 6 at the same time. He has said it several times on his shows.

[@justin97410]

Steps 4, 5, and 6 are to take place at the same time for Dave’s baby steps

[@drunclecookie216]

I have steps 2 and 3 take place at the same time... but my job will never be "secure" enough to not have an emergency fund, and the only debt I have is a car payment. Also, I don't have to worry about Step 5 since no kids.

[@killfacebalor2474]

@@drunclecookie216 if your job isn't stable enough thenDave normally recommends having two different phones with one being the emergency fund and the other being basically an income replacement fund or something like that. Obviously you would carry that even through baby step 2, but it would be separate from your fully funded emergency fund and that would be the case even once you were in baby step 7

[@drunclecookie216]

@@killfacebalor2474 well, what I do is I have enough in my bank for 3 to 6 months of bills, groceries, gasoline, car payments, and mortgage payments. what I currently have can cover 5 months alone and that doesn't count what I'd get for unemployment if I was laid off or my company shut down... If I had to keep a separate fund for income replacement I'd need to have almost $75k in the bank total

[@BillKluck]

Oaks Justin yes, these money guys really don’t understand the concept.

[@adamsaldana5462]

@@drunclecookie216 you wont complete anything if you focus on more than one thing at a time. 3 months of expenses should not include any debt except the mortgage.

[@billS560]

I've been contributing to my 401k since I was 16, I'm now 28, and it's only at 53,000. I've added 42,000 of that.

[@juli6497]

Baby Step 2 really gets hit hard when you KNOW that you are missing that employer match. It's about changing behavior. Pain avoidance is a major motivator to change behavior. You guys are only considering numbers and not the behavior that got a person in a bad situation to begin with. Gotta address the mindset!

[@jroysdon]

Found your show about a week ago and have watched just a few. I've enjoyed it immensely. I'm a Ramsey fan in that I had no idea what to do before (but we do rewards credit cards, and other "Dave-ish" things the doesn't agree with), and I'm solidly into Dave's BS4 and investing. I've disagreed with Dave and haven't been doing only 15%, but rather have been maxing out my tax-advantaged accounts since starting, which just happens to be 23% of our gross (and my wife and I are 44 and "behind" on investment other than a work pension). My wife and I are watching together, and when you said 23%, she was like, "I knew it!" Thank you, and we'll be continuing to learn with you!

[@danielclark7293]

I love the logical comparison of all of this with the Baby Steps. I was on Baby Step 3b (an added step to save for a house or add more to your equity and refi) and decided to put 18k additional down with a 2.5% 15 year mortgage instead of 30k I was planning. I couldn't ignore the fact of the 12k might be better use to max out an Roth IRA for Baby Step 4. So that is what we did and today we are so much further ahead because of investing wisely in low fee Fidelity index funds. I really loved the HSA information, I knew most of it, but seeing it on the charts really help see the tax and investing advantages! Great show!

[@Lilazn216]

I just found your channel, but I found dave and dr listeners last year after struggling for 10 years paying just the min. I realized I couldn't follow DR in full but I realized I did a combination between DR and your plan. I had gotten a new job that offered a 6% match and I couldn't NOT take advantage of that especially when they only matched after 3 years. I couldn't let that money go. I also took $100 each check to pad the efund because of covid. I eventually got to the point where I could get one month early in paying at least the minimum to cushion my payments and I'm done next week haha. This was an exhausting journey but after watching this episode I can see I did a mix of both.

[@BassPlayer60134]

I expected debate and got professional respect. Nice to see.

[@chemquests]

Dave’s great for managing debt but Money Guy is much better for investing and wealth building. Use the right tool for the right job

[@saab9251]

Dave says that $1000 is absolutely not enough. He knows that and talks openly on his show. That’s why a fully funded emergency is 3-6 months expenses.

[@jjg8457]

Amen. That’s why it’s baby step 1. Dave talks to many people, it’s a good starting point.

[@gtcam723]

Personally, I’ve concluded that may not even be enough after 2008 and then this covid thing.

[@eddymontiel4153]

@@gtcam723 people got through on unemployment and stimulus checks alone lol, unfortunately I didn’t get any unemployment haha

[@robertsheffer1989]

It also forces people to be urgent about paying off their debt faster

[@robertsheffer1989]

It also forces people to be urgent about paying off their debt faster

[@chaosdragun1608]

People seem to misinterpret in that it's not that Dave's strategy doesn't work its that it's far from optimal. Personally I think as long as you do steps 1 through 3 quickly you're probably fine but steps 4 through 6 are potentially leaving a truckload of money unearned which only a true financial advisor will notice. At the end of the day he's a radio host with a message and isn't beholden to the consequences of his fast shoot from the hip advice. I use both shows to determine what the best way forward is.

[@jacobarmendariz9245]

I follow Dave and just listened to your channel! I am a Business Marketing graduate. You guys are definitely more precise and detailed for people who are a little better with finances and math. Dave's is definitely more simplified and easy for the everyday person but definitely misses out on big money makers that everyday people don't know about (employer match, Roth 401k, etc)

[@JohnSebeny]

Looking forward to this. I followed his advice, it works.

[@JohnSebeny]

Do you offer investment advice on HSAs?

[@richardview1281]

@@JohnSebeny Yes. Max it out. I just learned how great they were and was only putting $1500 a year in, but after some youtube research, it's obvious that you should max it out if you're able to, since it's triple tax deferred.

[@JohnSebeny]

I get that, but I'm able to invest in index funds, mutual funds, etc. Not sure what is best is all :)

[@MrMysticSeer]

John Sebeny Read The Simple Path To Wealth by JL Collins. It will change your life.

[@anonymousswimmer4010]

Really love your graciousness towards Dave, while still pointing out some issues with his approach. Great job!

[@MoneyGuyShow]

Thank you 👍

[@insideoutsideupsidedown2218]

Issues...actually those are opinions, not issues.

[@CamiMarez]

This is AMAZING content, I can't believe it's free! Thanks guys!

[@JETurp]

Dave is the financial equivalent to providing Alcoholics Anonymous to those with a drinking problem. The Money Guys order of operations is the equivalent of a personal trainer helping someone that already diets and exercises get into the best possible shape for the summer. There’s two wildly different audiences: those with bad habits needing an authoritative mandate and those wanting tips on specific financial optimizations.

[@MoneyGuyShow]

Jacob, That is a spectacular analogy! Especially with Bo’s love for the gym and being athletic... don’t be surprised if we use this comparison going forward 👍.

[@dwadholm1]

This analogy only works until you realize the vast majority of people out there have money problems but only a minority have a drinking problem.

[@benwhitnell]

Shit, I just made the same comment before I read yours. Couldn’t agree more!

[@Pngiaca]

Unfortunately for the money guys, and fortunately for Dave, the vast majority of people in this country who need financial advice fall into Dave's demographic, not The Money Guys demographic. That is why Dave is so fantastically successful. And, from what I can tell, the percentage of the population who falls into Daves demo is only increasing with the younger generations who borrow WAY TOO MUCH money for "higher" education, and also rely on easily credit cards to fund purchasing habits that they can't really afford.

[@GarageGymTips]

Also with baby step 3 there is baby step 3b which is saving for a down payment for a house before baby step 4.

[@BleuSkiddew]

36:00 it's also best to save for your own retirement first as well because if you've got a great child determined for college, but you weren't quite able to save up enough, you could still offer to house them and even help them save. For example, my sister was set on going to college, but my parents didn't have the money and encouraged her to get a job and save. Once she graduated highschool, my parents started to charge her $100/week in rent to live at the house (meals/bills included) after 2 years she saved about $20,000 to start college and when she was all signed up, my parents told her they'd been secretly saving her rent money and had it in a CD account, so she ended up with an additional $12,000 for college.

[@coreyhoward8595]

Beginning of 2017 i found Dave. I was 84k in debt. Mostly student debt. No savings. Today I’m 100% non-mortgage debt free. 6 months of expenses in the bank and just put 20% down on a quarter of a million dollar home. And I barely make more than the average national income. I’m now investing 15% into my Roth 401 and eager to pay this house off. More importantly, I’ve found contentment in what I have, for the first time in my life.

[@b4u334]

10:30: In addition to behavior, the debt snowball has to do with putting the monthly payment that was going towards a smaller debt after its paid off towards the next biggest debt thereby "snowballing"

[@paulo5861]

Before Dave Ramsey existed , IRA"s etc. my church taught the three bucket principle. Bucket one was ever day expenses and bucket number two was an emergency fund and bucket number three was for long term savings. The object of this principle was to reduce first bucket expenses and then fill bucket two for emergencies and then start filling bucket three. The interest on bucket three savings eventually replaced the need for the existence of bucket number two. ( the snow ball effect of reducing bucket one expenses). Over the years I have been blind sided by life changing events that were beyond my control ( like losing my defined benefit pension along with over 1,200 people/ health issues/ etc.). The three bucket principle was the start of my education in finances. You tube and documentaries have super charged the information available. Thank you for contributing to that information.

[@nluis3294]

29k autoloan debt? Sheesh. If you need the car loan, you shouldnt be buying such an expensive car to begin with.

[@drunclecookie216]

heck, I bought a $30k prius because I drive approximately 70 miles a day and gas prices are expensive here. I'm set to pay it off end of August, 2 years early on the loan.

[@killfacebalor2474]

Yep. This I think is also a good example of the fact thatdealerships are actually managing to sell people to different products with one being a car in one being a loan, and the average person is apparently happily going along with that :(

[@imperi42]

If you're going to buy the vehicle regardless, you can mathematically get higher investment returns if you take a 4% interest loan and invest it in the stock market at 10% returns. However, this also increases risk since the 10% isn't guaranteed

[@vinniedeluca2188]

I bought a 2017 Ford F-150 with 4K miles on it for $33,000 and I paid cash and walked out with the keys never having to make a single payment, that’s how it’s done! No interest not burden of someone else owning me until I pay off the debt, just pay cash for everything and you’ll feel completely free

[@killfacebalor2474]

@@imperi42 yeah, knowingwhat the spread is in being able to keep track of it is a valuable skill, but in order to accurately do it, you also need to decide if a 6% spread is worth the risk of repossession or lawsuit in your life if things go wrong and also decide if slavery for the duration of the loan is worth 6% of what you're planning to pay for the car as well as the stock market volitility. You probably knew all of that already, but I felt it was worth laying out anyway since a lot of people only run the math on the stock market versatility and don't think about the fact that sometimes the storms come and that the borrower is slave to the lender. Factoring all of that into the math often makes it look different, and sadly, in today's culture, we're not supposed to look at all the factors.

[@rpmen]

Interesting show. I think what is missing is the psychology. If you follow Scott Adams you realize that people are 90% irrational and 10% rational. What happens with money management is that people act irrationally especially with big money purchases. Why there is so much credit card debt. This is where Dave Ramsey gets it right. This show is very analytical and may not move the needle as much

[@ChrisSmith-vc7xs]

Solid Baby Stepper here. BS6 and onward. I'm never looking back. For your reading and evaluation on the Ramsey systems don't forget the next levels taught in Legacy Journey, Hogan's book Retire Inspired (covers how the 15% is the starter for retirement), and Cruze's book Love your Life. In those books are a lot more pieces to help build a better and stronger picture. I see the whole Ramsey content like reading The Richest Man in Babylon: even at 4 times reading through that book it teaches a bit more since I understand a little bit more each time I pick it up. I'm sure I'll glean something new from time to time from your presented information as well like I have done so with the Ramsey crew, Dustin Tibbitts, Josh Scandlen, and Robert Kiyosaki (for examples).

[@_NoHandle_]

I agree with what you're saying. I couldn't follow Dave Ramsey. I wasn't comfortable only having $1000 in emergency savings so I saved more. Additionally, the Snowball Method didn't make sense to me, I paid my debt by the highest interest rate first (paying less money in the long run) and I refused to stop 401K contributions while paying off debt. I also budget, use credit cards for bills and necessities, and pay the credit cards off monthly.

[@tamaraliscia3408]

The Money Guys are correct. The Money Guys can be after DR or in conjunction with. DR is a great resource for those who are drowning in debt, have no savings and still continue spending more than they bring in every month, or can barely afford to buy food or cover housing costs. That was never me, but I needed to learn more. I took Ramsey's FPU because I realized I was financially illiterate after a major life changing event. By far, the most important exercise I learned was how to write a budget every month and that allowed me to retire debts very quickly. I learned what I need to learn and then left the DR ranch. I've never been comfortable with only 1k in an emergency savings account. I've never been comfortable shopping with cash. I have never "tithed" but have always donated to a few NGO's whose causes I support. My house will be paid off in a couple years, cutting a 30 year mortgage in half simply because I learned how to make my money work for me and have no other debt. (I don't consider my credit card bill that is paid off every month to be debt because the money is always there.) It's been years since I would refer to myself as "financially illerate". Through diligent homework, I found my own people (not DR sponsored "experts"). Years ago, Ramsey's FPU was helpful, overall. And, it took awhile for me to gain knowledge and confidence and to remember that I am wise and organized but I did it.

[@calcs001]

Really enjoy when you guys provide the graphics/numbers, makes things more tangible. Keep up the solid work guys :-)

[@legojenn]

I've been working from home since March 2020 with no drop in income. After about six months, I noticed debt starting to drop in a measurable way. I was making payments, but not charging my cards and it helped that a car loan hit the end of term. I started getting a little more conscious about debt repayment which is accelerating it rather that waiting for a promotion to get aggressive on debt reduction. I found Dave and it seems that I was basically doing some of his baby steps, though there was some moving of higher interest debt to lower interest creditors. His religious and political values give me the jibblies which stopped me from going all in, but I think that the value of that $1000 emergency fund is great for deductables, but also preventing NSF and overdraft fees. That being said, your advice seems solid.

[@wigum12]

love this podcast. i followed the baby steps except kept my employer match so did my wife. he have been debt free ( except the 47k mortgage). we are undecided on if we should get “ gazele” intense again and knock this out in the next 15months. we have a 6 month emergency fund and we are each contributing 18% into our traditional 401k. should we save the rest of money at the end of each month or pay our mortgage?? we have no kids. im 30 shes 27. we have cashed flowed things like vacations and house improvements since getting out of debt. appreciate your 2 cents. thanks.

[@erickauffman6155]

wigum12, good for you two. I was in a similar situation at your age and decided to pay off the mortgage at 31 and can say the grass feels better under your feet in your lawn once your home is paid for.

[@LiveLocallyNow]

Great job! This was 5 months ago....what did you decide? I'd say, gazelle pay off your house, except, if you're feeling burnt out, save 1-2 moth's worth of that extra mortgage and instead cash flow a vacation. Then back at it! Wow you both are so ahead of the game. Congrats!

[@hzuiel]

If you are in a financial position to do it, i say gazelle the mortgage. You know why? You have more flexibility when you aren't saddled with a structured payment each month. After the mortgage is paid off, if this is the house you intend to stay on i would go a step further and cash flow making your house more sustainable, get some solar or wind power and be at least partially off grid, insulate, add storm doors, get more energy efficient windows, etc etc. That way no matter what you decide to do in life, or what happens, you can probably be okay financially. If you have low utilities and no debts, if you want to have babies and one of you wants to stay home with them, you can do it. one or even both of you wants to switch to working part time and do some school or training to be able to advance your career or add another revenue stream, you can because of the flexibility your financial situation offers compared to when you are stuck with mandatory payments every month, there is little choice in the matter. Same thing goes for if there is hardship, economic downturn and both lose your jobs. If you have a mortgage, that makes for a white knuckled time even with an emergency fund in place. If your bills are extremely low, and you have an emergency fund, it's no big deal, you could take a job as a fry cook at mcdonalds if you had to and be fine.

[@dannylengyel5830]

@@hzuiel I'd say take advantage of your youth and time and invest in low cost stock index funds while only paying the minimum on your mortgage. Take advantage of the compounding and let your money work for you. Interest rates are at historic lows, so no need to pay off the house so soon. You PROBABLY will net a better return in the market than the ~3% you're paying now. Don't leave money on the table!

[@hzuiel]

@@dannylengyel5830 interest isnt the only kind of opportunity, like i was highlighting in my comment. Also what about if someone loses their job and doesnt find another quickly? Sometimes people get desperate and start selling their stock, dipping into 401k and eat penalties. If you never ever have a financial setback, sure, theoretically invest all your spare money early is the best but in practice i think it is a gamble, if 100 people all did the same thing youd have mixed results.

[@sunnyluyuan]

This is the best entry level financial class on the KZbin! Because it tells you what to do, how to do and when to do step by step. People need to know the exact number such as $19500 for 401K, rather than 15% of your income. And when your household income is higher than 250K annually, then you can think about other advanced tips. Before that, just follow what these pros say, it is the Bible.

[@knottheory79220]

Having done Dave's plan in the past there's an element of the first Baby Step I think is lost on a lot of people who haven't been there done that. When you're so financially lost and upside down and clueless, it's hard to believe that you have the power to change your life because you don't know anything else. When I saved $1000 free and clear, it was like a weight was lifted off of me and I felt a rush like I'd never felt before. I had done something I thought was impossible. It took me 5 months. But when I did that, something in my brain just snapped. It was like the rational part of my brain finally connected with the motivational part of my brain and I realized how much power I really had to change the situation. Within a year I'd gotten rid of $7000 of debt. Within 2.5 years I had cleared $40,000 of debt. Ramsey isn't right about everything, but he's right about the psychology. You need an easy couple of wins to start with it makes all the difference in learning to change your behavior.

[@MoneyGuyShow]

Dave continues to do a ton of good and we fully support his message for the majority of the public. We are for the 20% that are looking to go beyond what Dave shares. There will be a graduation point and our maximization tips will be what takes your assets to the next level 👍

[@stephenspademan5146]

Well said.

[@scottstahley]

In your FOO, where would you stick Daves Babystep 3b? Saving for a down-payment for a home. I am currently a renter, and if i wanted to follow your FOO steps, where would i prioritize and focus on saving for a down payment?

[@MoneyGuyShow]

Saving for a down payment would come after step 4 (emergency reserves) and coincide with maxing out retirement savings

[@scottstahley]

FOO Step 4b. Got it. Haha

[@lovitac]

We got to baby step 7 after taking Financial Peace University at our mid 30's. I do feel like there is more for us out there, that's how I found y'all. I like your views on finances 👌

[@mattcrouch9348]

You describe the "risks (to cash flow) of paying off the house early", but the potential trip-ups you mentioned are exactly what the emergency fund is for. That's why the emergency fund step comes before mortgage paydown.

[@Riverbend1752]

I've been watching Dave Ramsey for a while. His baby steps are mostly about paying off debt. If you're already debt-free and just starting out financially, his baby steps are not very useful. This order of operations is a lot more useful for me because it goes beyond just paying off debt and tells me some stuff I can consider doing once I graduate college (which I should do debt-free because of scholarships and 529 savings) and start my career. I'm glad I found this video, and I'm definitely going to check out more of these shows.

[@Mark-ye9pi]

You should tweak the baby steps as needed but at their core, they work

[@grumpyschnauzer]

Thank you for helping me and America with our financial issues. I’m bummed I’m learning it at 30, making many mistakes I wished someone slapped me over, but the awareness you guys are helping the public with is awesome 👏🏻

[@tippsology903]

The Baby Steps doesn't disagree with your 20-25% of your income investment. The difference is you increase your investment amount after baby 6 (the mortgage is paid). 15% allows you to focus some on the mortgage as well. At that point you can kick into gear outrageous wealth. Also, yes, Dave encourages giving throughout the whole process. Good stuff!

[@marhar2]

Regarding having a house payment vs investing... if somebody had a paid off house, would you recommend taking out a mortgage and investing that amount?

[@dontworrybehappy929]

You guys make so much sense and without the hype and drama of Suze Orman. LOL

[@Neoquaker1]

27:40 Roth IRA contributions give you a "Saver Credit" on your taxes. It's great.

[@Cathy-xi8cb]

Thank you for mentioning the risk of being cash poor AND house rich. Everyone's situation is so different, but liquidity at every stage of life provides essential flexibility. If you are under 30, you probably don't recall how impossible it was to sell a home at a good price in any market during the Great Recession. No one wants to be in that position, but it happens. Don't let it happen to you.

[@MoneyGuyShow]

Oh I remember. It has taken me 4 years to sell my former primary residence in GA. The nicer your house is... the harder it is to sell and nice homes are less than ideal for rental property in low income areas. Respect the value of liquidity... fortunately we practice what we preach and it was an annoyance instead of a financial stress 👍

[@joannerandolph5533]

Love your take on Dave's baby steps. I do have a comment about Dave's take on paying for college. He does make it clear that it's a parents choice and you have no obligation to do so.

[@neilstapley1101]

You are totally missing the point. You trying to bring math into what is a behavioral problem.

[@MoneyGuyShow]

It is a behavioral problem for 80% (Dave has them covered). We create content for the 20% that are looking to maximize and do not struggle with the behavioral and discipline limitations 👍

[@mathewhiscock7986]

WelL said money guy, well said.

[@Grimmlocked]

@@MoneyGuyShow people with money problems typically also have behavioral problems and lack discipline as it is.

[@jordancollier6716]

@@MoneyGuyShow That is exactly why I watch you guys!

[@JKRoth-jh2im]

@coldrunner Either way, if those people had put aside from day one of first job like Dave teaches, they would not have been broken by economy or medical bills. Most people have assets but little cash value. If you spend your first decade in the workforce buying all those things you want instead of stashing the cash, you`re going to have nothing when things happen out of your control even into your 30's. It is what the majority of teens and twenty somethings do instead of saving for the near future much the same way they are reckless about driving or other activities. If I had had Dave Ramsey's mindset on money before I ever married and had kids, I would not have lived paycheck paycheck for years. Like most people that first decade of getting a paycheck, I spent it as fast as I made it. If someone teaches something else that they think is better, then why are they bashing someone else's method if thier's really works? These guys can teach their ideas, but shouldn't attack thier competitors. It only reveals a lack of confidence in thier own teachings.

[@kathryncashner3294]

You addressed all the issues I had with Dave's baby steps. I used to joke that I basically followed Dave's ideas before he ever voiced them, but in reality, it was more like your ideas. I was in my first "real" job the year that IRAs started. I didn't have the $2000 permitted, but I managed $1000 and every year thereafter, fully funded whatever was available to me and have always lived debt free except for home mortgage. Suffice it to say that I'm entering retirement in great shape, kid is educated with no debt, etc. Dave's system provides a starting point for people who have no idea what to do. Your system makes more sense for people who are numbers oriented and perhaps in less trouble than a lot of Dave fans.

[@bullswitz]

You had me thinking until you got to the paying off your house early. "If something happens, where do you get the money if it's not liquid?" With Dave's steps, that's the point of baby step 3, to save for an emergency of that magnitude. But he also says to left off the gas a little. Yes, pay it off early, but you aren't throwing every single penny at the house. If you have no debt and aren't spending it all, then chances are you'd be able to cash flow an emergency outside of losing your job (again, that's what the 3-6 months emergency fund is for).

[@MarincaGheorghe]

A 3 to 6 months does not get you to cover something that could cost you much more than that, e.g. you lose your job and need money for some medical emergency that is very expensive for example. Having by your forties once you have a family years of multiple annual expenditure in securitues, which are liquid, not like a house is definitely an advantage. Let your dollar army make its compounding as they say.

[@e22ddie46]

Ive seen ramsey talk about finance with people that actually understand finances and its clear he does understand it. Its just he got burnt by his risky loans 30 years ago so he pretends all 30 years loans are the same as his 60 day notes. He also is selling a debt free lifestyle to people who are clueless about everything financial But i do think the gist is good. If the average american followed either you or him and did the advice, wed have way less financial problems.

[@angelafarquhar6681]

Dave Ramsey is amazing..helping regular people find success!

[@newtonraymond77]

Lots of great information to unpack here thanks guys. I wish I knew about all of this sooner I'm gonna start binging on your videos.