Pastor Asks Dave Why Some Debt Is Okay

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[@Itstmoney_1986]

I got a 15 year mortgage and paid it off in less than 10 years. I’m now debt free. Just got utilities now at 37 years old.

[@JohnnyBfromPeoria]

And property tax and insurance.

[@BeyondTigerMilk]

Cool story bro

[@dialac1]

Bro I’m aiming for where you’re at. 300k house bought in 2023 and I’m now below 200k left. Pray for me.

[@Soljarag5]

I'm sad for you... You are looking to KZbin for approval... 🙄

[@kbanghart]

Just got utilities? Are you playing monopoly?

[@ManuelHernandez-gq1yq]

Following Ramseys steps, I paid off my 30-year mortgage in 5 years.

[@not-even-german4892]

😂😂😂😂

[@jefffuhr2393]

Such a humble, transparent, gracious answer to the Pastor, and kudos to the Pastor too!

[@MrMoonDollar]

Dave doesn't like your mortgage. He just won't yell at you for it.

[@Upholstered_]

Well said.

[@Shortballa11]

Bt the show encourages you to become a home owner first and then pay off the mortgage. It’s not rlly encouraged to save for 10 years and pay cash as Dave said

[@paulkaelin6077]

Unless your mortgage is a large chunk of your income. THEN you will get yelled at.

[@Fred2-123]

@@Shortballa11 You cannot save enough in 10 years to buy a house. A $300,000 house would require you to save $30,000 a year. But in 10 years the same house will cost $400,000.

[@Shortballa11]

@@Fred2-123 don’t argue with me. I am telling you exactly what Dave said in the video. He literally said 10 years, I’m just quoting.

[@AnAZPatriot]

The best thing I ever did to get out of the middle class rat race was when the first car I ever bought was paid off, I kept making myself those car payments and didn't let life creep occurr. I then drove that car for 15 years, and when I needed a new car again, I was able to pay cash for it. I'm still driving that car 15 years later, with no signs of needing a new one any time soon. This has allowed me to pay off my home and invest over all these years, and have become a millionaire over the last 2 decades.

[@johnruehle3166]

We have owned three houses and bought with cash. Our current home is 100% paid for and we have 0 debt.

[@privacyplease1556]

You would be much richer if you invested that money over 30 years.

[@SparkeyCox]

@@privacyplease1556 - LOL - I did better with my house investment than any 401 K - but OK

[@janeoleary8454]

Most people can't do that. Duh

[@SparkeyCox]

@@janeoleary8454 - Lost it all twice and since then have had 4 houses and am mortgage free - DO not say you can't -

[@bdeheton6445]

@@privacyplease1556 Borrowing money to invest is a fools game.

[@user-oe5ey3ex8b]

Gold is the money of kings, silver is the money of gentlemen, bartering is the money of peasants and debt is the money of slaves.

[@morbuenogroup3092]

Very well said…! Is that a quote from the past?

[@LovesGrilling]

Where is this from?

[@robinhollenbeck367]

​@@morbuenogroup3092This is from Norm Franz, author of, 'Money and Wealth in the New Millennium'.

[@robinhollenbeck367]

​@@LovesGrillingThis quote is from Norm Franz. See previous comment.

[@CreditCrusader]

What's bitcoin the money of?

[@PabloSanLuca]

Proverbs 22:7 isn’t a Biblical law, like all the Proverbs. It’s advice that will make your life more fulfilled and God-centric. It doesn’t say borrowing is a sin, but it is saying there are ramifications to borrowing.

[@insideoutsideupsidedown2218]

Biblical principle

[@dansteuer1411]

@@insideoutsideupsidedown2218 doesn’t make it a law. Just like proverbs 15:1 is literally advice on how to turn away wrath. Not a law but you probably should follow it if you want less stress

[@daniellineberry8879]

2 Timothy 3:16 "All scripture is given by inspiration of God, and is profitable for doctrine, for reproof, for correction, for instruction in righteousness:"

[@kenmurray25]

Slave is a pretty strong word for advice.

[@B2blackout]

Way to be pedantic

[@Fred2-123]

You have to live somewhere. You either pay rent or pay a mortgage. In 15 or 30 years the mortgage will be paid off, but the rent will never stop.

[@insideoutsideupsidedown2218]

I personally do not want to live in a shared wall apartment and have the communal knowledge of neighbors

[@veramae4098]

On the other hand, if you rent you don't pay for repairs and improvements.

[@motoryzen]

​@@veramae4098yeah if you truly think that part of your rent doesn't go towards repairing anything involving the place you live in, you are severely mistaken. Renters are going to account for the possibility of repairs every single month in a dwelling you live in

[@BLdontM]

@@veramae4098 Lol how naive. You're right, landlords take care of that out of the kindness of their hearts. It is why rent is NEVER more than the mortgage.

[@lolwtnick4362]

@motoryzen thats funny. as a renter i don't recall having to take out an additional $3000 for a water heater replacement, or $10k for a new roof. my rent doesn't go up anywhere near that much. also i don't need to buy a mower, clean gutters, install fencing, worry about pests, shovel snow before i get a ticket, etc

[@PJ-uu4cp]

Very cool way to end the call with psychological advice from Dave about the behavior for the budget to become a habit takes 90 days. I needed that reminder.

[@Johnwilliams086]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@Lourd-Bab]

Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks

[@Johnwilliams086]

@@Lourd-Bab However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments

[@Lourd-Bab]

@@Johnwilliams086 Oh please I’d love that. Thanks!

[@Johnwilliams086]

@@Lourd-Bab Judith Ann peace is her name

[@Johnwilliams086]

Lookup with her name on the webpage.

[@jacobrodriguez7771]

The $1,000 is a separate emergency fund, not the maximum amount that you can have in your day-to-day checking account.

[@JohnLopez-gt6og]

They still haven't changed this? Imagine your estimated debt payoff date is 2 years aways wtf u going to do with 1k? That's like not even a months worth of groceries these days wtf..

[@SpartonGearz]

@@JohnLopez-gt6og1000$ is “starter” fund. 3-6months of expenses once consumer debt is payed is what they recommend.

[@w_6880]

@@JohnLopez-gt6og, the $1K *starter* emergency fund is specifically to have cash set aside for a new starter, not a whole debt reduction.

[@gorkyd7912]

@@JohnLopez-gt6og The $1000 is solely to prove to non-savers that they CAN in fact save money. It's called a "baby step." You set a small goal in order to get started towards larger goals. If you think it's not enough does that mean you already have MORE saved? Or does it mean you're not even going to try to save $1000 because it's a pointless amount?

[@mmmmmmmmmmmmmmmmnmmmm]

Wait, so how would someone account for emergency situations? What if a tree fell on your car during a storm?

[@theadventurousprogrammer6449]

The verse is correct, the borrow is slave to the lender... It doesn't make it a sin, it's a statement of relation between people. Not a sin.

[@szey9488]

It is a sin in Christanity and Islam

[@theadventurousprogrammer6449]

@@szey9488 it is not a sin in Christianity. Never does it say so. It just says that it is a thing that borrower is slave to a lender.

[@JohnnyBfromPeoria]

@@theadventurousprogrammer6449 therefore, when the debt is paid, the bond is lifted. No debt IS freeing.

[@megalodon1726]

The tenant is also slave to the landlord. But at least with a mortgage there is a schedule for ending that master-slave relationship.

[@kaythegardener]

@@szey9488 Excess interest that is burdensome to the borrower is the sin -- "don't take a man's cloak beyond nightfall"...

[@xdmtoter6739]

Regarding the callers question about a "buffer"; I had the same concern when I started the baby steps, so what we do is make sure that our main checking account has the exact amount that we plan to spend that month on the 1st of the month. Each paycheck I receive during the current month is for Next month's expenses. That way we are always a month ahead instead of being paycheck to paycheck. We also have a separate checking account for our sinking funds for annual or quarterly costs like insurance, school supplies, etc.

[@iseepandas1]

The episode we’ve all been waiting for!

[@LisaPFrampton]

Why did you give your channel this name? It's extremely sus btw

[@chrys77cross]

Please make a Canadian version of the Every Dollar App

[@dkibler1974]

I've been making car payments for the last twenty-eight years. But I don't make them to the bank. I make them to myself. I pay cash for every car I've ever owned because instead of paying a bank (with interest), I put it in a sinking fund. Cars are subject to the second law of thermodynamics- they are moving from order to disorder; they are breaking down and don't last forever, so make payments to yourself, pay cash, and NEVER PAY INTEREST.

[@BREEZYM6015]

What's the average price you've paid cash for a car?

[@dkibler1974]

@@BREEZYM6015 The last two cars have been a 2012 Nissan Maxima and a 2016 Maxima, and I paid $10k and $14k respectively. I save $500/month in a car fund and I drive my cars until I donate them, usually around 200k miles. I keep my cars for an average of eight years.

[@MamacitaBonita]

I’ve started doing the same

[@dannyk847]

​@dkibler1974 25k miles per yr is a bit over the std annual, so you must commute alot. Smart that you don't have a truck or SUV, so you save on gas. Based on your annual mileage, there is no point buying new as you are going to destroy and throw your money, so you buy used, save gas and put that on for the next car.

[@davidbrayshaw3529]

Unfortunately, I'm a high school drop out and not a student of physics. Despite this compromise, I have been able to deduce several things pertaining to cars: When a car is operating it is subject to all of Isaac Newtons principles pertaining to motion and energy. A financed car, however, is subject to not just the same forces that an operating vehicle is, but is subject to forces above and beyond those that are expected by the operator. I call the phenomenon cash entropy.

[@TheAdamballah]

I’ve been listening to seven months. This is a great detail about planning.

[@GAFB1122]

Not really. It is less about planning and more about behavior. Maybe at first it's about planning but as your behavior changes it requires less planning. I mean do you plan to breathe or do you just breathe. When your behavior changes for the better, you won't need as much thought and planning!

[@KC9QII]

You can tell how immediately extra respectful Dave is when he hears the caller is a Pastor

[@herbiehusker1889]

I live in the country too, a car is absolutely necessary. But nobody needs a $1,000 a month truck payment. You can buy a $1,000 car, then save up some money, buy a $3k car, work your way up to a $10k car, etc.

[@lukeforbes2008]

A 1000 dollar car are you high?

[@herbiehusker1889]

@lukeforbes2008 $1k cars do exist. They aren't pretty, but my son just bought a 1998 Cavalier with 150k miles on it for $750. It's not perfect, but it runs well. We threw some cheap tires on it and the total was less than $1k.

[@jasonleatherwood2172]

@@lukeforbes2008lol yeah 3000$ is the 1000$ car 10 years ago

[@Angaloth19]

@@lukeforbes2008I do it all the time, especially out in the country. Used cars. Living rural is actually affordable.

[@Shortballa11]

Actually sounds wasteful considering the $1k and $3k cars will cost you in immediate repairs

[@TShirtAndReeboks]

It's HARD to pay cash for a car when you start out in life with nothing, but it would be nearly IMPOSSIBLE to buy a starter house without a mortgage! Saving for the down payment is enough.

[@dansteuer1411]

Not to mention that the cost of housing is going up so good luck trying to save all that money at once

[@ToastbackWhale]

⁠@@dansteuer1411I’m not convinced that 90% of people could mathematically save for a house fast enough to outpace housing price inflation.

[@underground9260]

Exactly! Most people can’t afford to buy a home in cash. Unless you came from California, sold your home and had 600K of equity money and paid cash for a home in a state like Tennessee. Most people don’t have tens of thousands of dollars floating around. A car is a bit easier to get without a loan but if you’re not getting like a car worth less than 10 grand, than most people will be taking a loan. Like I agree, one thing, you should not be taking out huge loans that you cannot pay off. Like I qualified for a higher mortgage, but I wanted to keep it lower than my means because you never know what might happen.

[@dansteuer1411]

@@ToastbackWhale doubt it in my area. Got our house back in 2021 and the market has increased by another 20-30k with interest rate at 6 to 7 percent. My interest rate is roughly 3.25

[@RadDadicals]

buying a car needs to start small. You can get a vehicle for $2000. Then save a bit more, sell it, and buy a $5000 car, then a $10,000 car, and so on until you have graduated up to whatever you're comfortable in or suits you. Personally I think $10,000-20,000 for a car is a perfectly fine upper limit. I'll never own another brand new vehicle. Buying used from private parties has served me well for nearly 2 decades.

[@mensb1936]

We kept a 1 paycheck buffer in the account for a few months while we were still learning to budget effectively. After dialing in the budget, cash in the accounts allocated for the various budget items and sinking funds effectively serves as the buffer. For example in Everydollar, the sum of the 'remaining' column is equal to the amount of cash in our bank account

[@elizabethallen4353]

that's a great way to do it. We "save up" in a separate savings account for annual and biannual payments like taxes and insurance. Then the cash is ready when the bills are due.

[@mensb1936]

@@elizabethallen4353 yeah same here! Those are all in our budget under a "future due" section

[@spconrad9612]

​@elizabethallen4353 we do the exact same thing. It is nice just to transfer that money into the checking account to pay insurance when it's due every six months to a year.

[@Cathyhins]

*I love the grounded reality of this channel!!!* Retirement took a toll on my finances, but with my involvement in the digital market, $27,000 weekly returns has been life changing. AWESOME GOD😊🎉😊❤

[@ElizabethManassi]

I'm in a similar situation where should I look to increase income? Do you have any advice? What did you do ? Thank you

[@Cathyhins]

Thanks to my co-worker (Alex) who suggested Ms Maria Angelina Alexander.

[@Cathyhins]

She's a licensed broker in the states 🇺🇸

[@Cathyhins]

[@Cathyhins]

United States美国十𝟭𝟱𝟮𝟬𝟯𝟬𝟮𝟰𝟲𝟮𝟵🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸 美国美国美国美国美国" copy "it this way, "KZbin is frustrating."

[@greg_216]

My financial peace came when I didn't have to do regular budgets anymore. I hit a point where I had enough savings and buffer that -- unless it's an unusual purchase -- I don't have to think about it. This doesn't mean I don't have a budget, but it only needs to be updated a few times a year to check that things are still good. As for daily activity, I simply live in a way that my spending is well within my means. (And I do realize that some folks can only stay on course by tracking every dollar, so this might never be for them.)

[@Linglefamily]

Love this!

[@noxproductions6851]

I saved up for 6 years to buy a house. It wasn't a $400k house, but it is a house and its fully paid off and it's MINE. I make $32k a year and bought the house in 2023, so everyone whining about "you cant do that in todays society" are just negative and living above their means.

[@rdmineer1]

Keep my budget on a spreadsheet with columns for each type of purchase, incomes and realtime account balance. Special formulas are used so each entry affects the checking account balance upon entry. It must balance DAILY. Each page is monthly and sums up each column as it happens. At the end of the month I can see what I spent in each category and where I can economize. Don't use actual checks, account # is right on the check! Not handing that out to anyone. Also, no checks are ever "floating" or can be stolen. A money order is cheaper and paid for upon purchase. Paid my mortgage in 4 years. Sold 3 years later, made 20%. But not really, subtract mortgage interest, maintenance and taxes. That's your true sum of capital gains. Don't over purchase to impress anyone, even yourself.

[@MichaelCarrPilot]

I’ve got something similar with month tabs and a running digital “checkbook” so I can see month in advance what a money movement now looks like for my bank account later. It’s always fun to have a spreadsheet do most of the work once it’s set up which is esentially all these money “tracking” apps, even Every Dollar, are doing.

[@rdmineer1]

@@MichaelCarrPilot it's a true fortune teller. Recently added a small module to total all assets and reflect net worth. Update when markets close every Friday. No liabilities included, they don't exist.

[@rachelabate2401]

Pastor was right about the buffer. If you're dirt poor, that buffer keeps your account from overdrafting while you're paying your debts. I'll try that.

[@timkopp2204]

A good accountant knows when he's out of money. A buffer is not "necessary"

[@santiagolerin]

​@timkopp2204 it's still good to have one even if it isn't necessary

[@timkopp2204]

@santiagolerin yes. Thats called an emergency fund/rainy day fund. Otherwise, it just becomes spending money. For "$5 coffees"

[@gorkyd7912]

And the worse you are at budgeting the more the things that should have been predicted and put into the budget are instead taking chunks out of your buffer, means you'll need a bigger buffer, means less of your budget goes to paying debts, means you'll be in debt longer, means you'll pay more total in interest.

[@rachelabate2401]

@@gorkyd7912 reasonable points as well. I'll still try the buffer. It makes me feel more secure, but I see your point.

[@christineboyce988]

Thank you for providing Every Dollar. Wonderful APP!

[@markrevis2667]

We need more like this... "slosh" and more importantly "planned slosh" keeps me from getting through the baby steps. Would love to call the show but haven't been able to get through

[@reggiejenkins6458]

I keep a $20k buffer for my business, and maybe $3k for my personal over and above what I think I need to have in there.

[@dansteuer1411]

A house will make you money in the long run if you take good care of it. If you borrow money for pretty much anything else it would depreciate in value.

[@jimmymcgill6778]

Enjoy it while you can. Don't worry about depreciation. Just ad long as you can afford it.

[@davidbrayshaw3529]

The value of a house is not in its ability to make you money nor serve as a tool to acquire "cheap" finance. That is a very recently adopted economic concept. The value of a house is much more easily defined, especially if you've lived without one.

[@user-nx6tr9je6v]

going into debt to purchase a profitable business or education in a STEM field will bring you more ROI than a house ever will but Dave is only okay with mortgage debt

[@Wall2000x]

Because that debt is necessary to purchase a house. Very few people can afford $200k to $600k to buy a house. If you have the money buy the house without a mortgage. But, you have to be able to afford a mortgage.

[@jasonleatherwood2172]

100000$ is the new downpayment my kids plan to live at home and stack cash they looking at 200000$ down payments cause to afford a house on a 50000$ income requires about 200000$ down to make the payment

[@Wall2000x]

@@jasonleatherwood2172 Is that $50k before or after taxes? You may get a $300,000 mortgage with a $500,000 house but what are you going to drive and what are you going to eat. Tough to live on $50K.

[@ToastbackWhale]

@@Wall2000xExtremely regionally dependent. My *gross* is a hair over 50k and it’s perfectly livable here in Cincinnati.

[@christinehopping5040]

AFTER becoming debt free, I started saving the amount that I used to spend on my mortgage. It was a pleasant surprise to see the amount of dividends and interest payments I was getting from the bank is $1000 monthly!!! I started using the $1000 as spending money and saving 100% of my take home. I used to spend $3000 on mortgage interest, bank fees, and credit card interest. Now the bank pays ME. If you lived only in debt, you will never know what it is like to be FREE

[@jasonleatherwood2172]

In my areaa a new 1600 sq ft house us like 350000-400000 so with 200k down ur payment be like 1700$ or so

[@6.2_vortec]

I keep a $1k buffer in my checking separate from my emergency fund. It’s basically like a secondary emergency fund but I’m lest strict on myself when it comes to spending it.

[@jand147]

You have to either pay a mortgage or pay rent. I’d rather pay a mortgage.

[@davidbrayshaw3529]

Hear, hear. Neither is fun, but in the long run, paying a mortgage is much more likely to leave you with a lot more options.

[@matthewphillips5483]

You would rather be a slave. Cool brah. Get a fetlife account.

[@williambingaman2787]

The problem with saving for 10 years for a house is that the housing prices go up faster than your savings/investments (at least for right now). By the time you save $150k for a house, that house will now cost you 200k.

[@gorkyd7912]

Yep, if I'd been saving for the last 10 years I could now still not afford that $120,000 house that I wanted 10 years ago which now costs $650,000.

[@gofigure84]

A buffer is key for more than money but especially money. My church does it's budget off of previous giving not projected and takes off 10%. So its off 90% of what has already come in.

[@philipanderegg5973]

What worked for me is having an E-Fund in place before tackling debt because stuff happens and if you live somewhere where you need a car, you'll want at least 1k in an account for repairs and car maintenance. Essentially, I did step 3 before step 2, and if I had to go into the E-Fund, I made sure it was back before continuing debt payments. It made the whole process a lot less stressful doing it this way, and if you have variable income, this strategy makes sense because you don't want to end up in a situation where you don't have income for a month and end up stepping backwards and having to put bills on a credit card. That month that that happens could be what causes you to give up being debt-free. We want to avoid this situation!

[@warwagon]

Poor Dave and John, imagine hearing that guy "Directly in your ear".

[@ashayhemy3617]

Did u hear Dave say "Am on my 34th anniversary of my 30th birthday"😂😅😅😅

[@BeyondTigerMilk]

Yes. We are not deaf.

[@jordansanchez9607]

I agree with Zachary on the buffer. While you’re right, people need to budget first, it is important. However there’s always cases of unexpected expenses, I always try to create a buffer when I can. Because I think a savings account is good but even the best savings account can have liquidity problems, so having some money instantly accessible for whatever reason be it impulsive purchases, unexpected expenses, unprocessed transactions, or an investment opportunity always buys you some time until your money from other avenues can come in.

[@bones3258]

😂😂😂😂 the way he guesssed his age was spot on saying “kid, just cause your a pastor, doesn’t mean you know the bible, thank you for asking an elder”😂😂😂

[@xlerb2286]

Living in a rural area with harsh winters (your car dies, you could die) you need a reliable car if you have to drive in the winter. I would much rather see a friend take out a prudent loan to get a solid reliable car than to buy the $1500 clunker they could afford without borrowing. That's an edge case I agree. But there are times beyond a mortgage where prudent use of debt is reasonable.

[@JeremyWinkels]

I’ve had a 900 dollar car go for 3 years with no trouble and my mother was stranded in her $30000 car with a blown head gasket. It’s not about the money you spent on the car. Even cars you took a loan out on break down. It’s just a justification to by a car out of your price range. Bring a lighter and some blankets. Even if you drive a 30000 dollar car.

[@xlerb2286]

@@JeremyWinkels Yup, I've got a nothing fancy but in good shape subaru and in the winter the trunk has a couple blankets, a sleeping bag, some extra warm clothing, a minimal set of tools, and a box of chocolate bars. (Somehow the chocolate is always missing come spring, strange). But from personal experience I can tell you I've rescued a lot more friends, relatives, and total strangers driving $900 cars than I have driving $30000 cars. But I'm not saying you need a $30000 car - I'm saying you need a solid reliable car. If you can get that for $900 good for you. But if it's a $900 car you're not sure about or a $3000 car you do think is reliable move mountains to get that $3000 car.

[@Middle850]

I’ve listen to Dave on and off for many years. What he is saying and what this pastor called in about is true. It does go against biblical principles of money and debt. I will say this and I am a prime example. I work in construction, I drive and wear my truck out. My last truck had 348k miles on it before I got my “new” one. Which clearly was used not a new truck. I am debt free (minus my home) but Dave is 100% correct my truck goes down in value each day I drive it. My home has only gone up. Bought my house for $146k in 2016. Refi to 15 year mortage at 3.1 and now my house appraises for $335k. I have well over $200k in equity. So essentially yes do I owe on my home. I do but it is on 15 years I am paying off aggressively and furthermore I have no other debt and $200k+ in equity so call it “good debt” I guess plus most important aspect of anyone’s life is shelter. If you have a place to sleep, be secure, take a hot shower, most important who cares if dinner is a $1 gas station hotdog you have a place to come to and a place to sleep and rest

[@tylerbinder2340]

Amen mr Ramsey

[@src4409]

He's using harsh words... because they work. Dave is exactly right. If I need more than a 100$ buffer in my account I'm being incompetent with my budgeting.

[@JustinCase780]

He loves a good buffer.

[@laneblount9888]

I finance vehicles because I keep them at least 6-8 years. The depreciation doesn’t affect me at all. Most of the time I do pay them off early though

[@tracym8952]

Good work

[@jnunez247]

Buffer, is necessary, you dont want to see a 0 in the bank account. If you follow the budget correctly (which is not easy) then that $50 buffer is the new $0. But you have to get used to leaving half your mortgage payment because pay day is every 2 weeks and the autopay on the 15th so you have to budget to ensure it is their before that date. The struggle is real.

[@HaroldCollier]

Something else that should be mentioned to all, is to pay your house property tax and insurance on your own and not through your mortgage. I pay my self monthly, and invest it making around 15% on my money and pay taxes every six months.

[@quietearthMT]

It’s virtually impossible to buy a home in cash these days unless you are already wealthy. Home prices are far too high compared to salaries.

[@PabloSanLuca]

Dave has never has said to only buy a home for cash.

[@handleyobusiness]

Yet, more than 50% of home purchases are cash transactions.

[@megalodon1726]

@@handleyobusiness Those home purchases with cash are mostly corporations buying houses and people selling a house they already own, not individuals buying their first home.

[@quietearthMT]

@@PabloSanLuca I didn’t say that he did.

[@matthewphillips5483]

If you cant afford a home in cash with no interest then how do you afford it with 7-8% interest?

[@thewheeldeal8439]

"The borrower is slave to the lender" is not a command, it's a statement/observation/principle. It can't be violated... It's not a sin to be either

[@DMS20231]

The alternative to a mortgage (other than paying cash) is to rent without building any equity at all. For most people a mortgage is the only reasonable choice. Both of mine are paid off (15 year mortgage on one and paid cash for other) and I’ll never have another mortgage if I can help it.

[@rahuliyer7456]

My condo. The one I own. I purchased for cash in 2010. I never had a mortgage on it. Same for the cars my wife and I own. All cash. We have politely told the car salesman when they try to get on a loan. We decline it. They get pissed. We have even walked out of a car negotiation over price, and the fact they didn't know how to do a sale with cash...no loan.

[@tastysnack1]

It is difficult to pay with cash. They want your financing. In order to negotiate you almost have to allow the financing. Just make sure you pay off the loan then next day. I reme bae those days when cash was king.

[@christinehopping5040]

What Dave says started to make sense to me when I started to save money after being debt free. I saw my high yield savings account earning $1000 monthly interest and it nearly blew my mind. I used to pay the bank $3000 interest on my mortgage and debt payments. Now the bank is paying ME $1000 monthly which is what I use to live on, so that 100% of my take home income goes back into savings!!

[@nbdysfool3]

Several questions….where do you bank? What is the interest rate you’re getting? How much do you have in savings? 1 mil? 2 mil? More? Thank you. My bank pays less than 1% interest and even their cd’s are 5%

[@jeffenriquez9929]

Awesome job at saving! $250,000 is probably too much for a savings account. Not just Dave, but nearly all financial advisors recommend 3 to 6 months of expenses. Higher isn’t better, anything beyond that should be invested. Just a heads up, I tried replying to other people’s comments. No matter what I said it was immediately removed by Utube.

[@blackworldtraveler3711]

I smell a scam/spam bot here.

[@nbdysfool3]

@@blackworldtraveler3711 we’ll see if she answers!

[@jeffenriquez9929]

​@@nbdysfool3 You can Google "High Yield Savings". Right now they range from 4-6%. They can change the return rate at any time. They typically change it when the Fed changes the interest rate. If the Fed interest rate is high, then the return is high, and vice-versa. I recommend a good Money Market account instead. On average the return is slightly better than High Yield Savings. It can be done on your own but I'd recommend talking to a financial advisor to help you choose one.

[@dalefrolander3583]

By the time someone saves up enough to buy the house the house has increased in price where they still can't afford it. People would constantly be chasing the price without a mortgage and never actually get there.

[@insideoutsideupsidedown2218]

I do not think so. If you saved up to buy a house and were saving to buy a 300k house and saved the 300k, you are still in a better position than not having that money.

[@motoryzen]

Adding to insideout 's point.... worst case you end up having to agree of a mortgage of around 10 to 20 something thousand dollars. Which unless you live in a third world country yes you'll be able to pay that off pretty damn fast

[@fusionreaper]

That's only a recent phenomenon. Historically prices increase 3% per year. The last couple years are an anomaly

[@motoryzen]

@@fusionreaper I would not call that an anomaly I would call that an idiot who can't even locate his own pants zipper by himself to properly prep to piss nor make up his mind which ghost he wants to shake hands with who can't even read a damn teleprompter

[@marcenelj]

Great question

[@Luv2camp316]

I don’t have a huge home by any means but based on what I pay (mortgage, interest, escrow) I calculate I will save just over $100,000 in 30 years versus the current rent cost in my region for the same period of time. And when it’s time to sell, i have money to show for my diligence

[@RusskiCommieBot]

Why isn't Dave covering this surge in inflation and the record high Gold price?

[@insideoutsideupsidedown2218]

Gold is at $2350. Hard pass.

[@motoryzen]

Over the past 80 plus years the value of gold has had a crappy Roi including silver as well. That is the reason why Dave does not recommend you invest in gold and silver. It's not like this fact is hidden it's probably knowledge

[@RBC0405]

​@motoryzen but it keeps going up?

[@motoryzen]

@RBC0405 and?...you pick a time to lock in a 15 year fixed rate mortgage, then...guess what?... the price of that home no longer increases

[@RusskiCommieBot]

@@motoryzen it went from $35.00 an ounce to $2,350 an ounce. How exactly is that bad return?

[@jmorris023]

So kids, the moral of the story is if you have $100 million dollars, you don't have to borrow anything from anyone!

[@amireallythatgrumpy6508]

Only $1 million...

[@jaysonprice2484]

is there a video that does a deep dive on dave's study of the 10,000 millionaires? Heard him mention it for years but never read details on it or seen a video about it.

[@mikeshaw4610]

We put x amount per month into a budget fund for insurance. Them when the bill is due the money is there.

[@stevenporter863]

Consumer debt is bad.

[@ronsmith7594]

The problem that I have had buying used cars-they all have something wrong. My last one was the transmission went out. Cost me $6000. The used cars are “Crap”. They cost me about $300 to $500 a month to continually maintain them.

[@calvinrogers7901]

What kind of used cars were you buying?

[@motoryzen]

Not a single used car on this planet safe or maybe Mercedes and BMWs will cost you that much a month and maintenance that is pure BS also we're talking about you being lazy enough and complacent enough to take your car to the dealership because you put that many miles because you're needing oil changes and they're going to rape your wallet in the process. When an oil change is something you can do yourself, so no the only thing caution you three and 500 bucks a month is your own complacency and the unwillingness to get your own hands dirty to change your own engine oil

[@motoryzen]

And yes eventually a transmission will go out in a brand new car too because that brand new car one day will become used in fact it's technically use the mom and you drive it off the lot regardless of the miles. You clearly do not understand the concept of a depreciating asset

[@donaldlyons17]

Again your right in 14 years of owning cars the average cost for major and minor repairs (not insurance, not oil changes, not gas) has been around $2,600 per year!!!! So not a new car is the better bet BUT it requires saving thousands for.

[@motoryzen]

@@donaldlyons17 No..a new car is NOT the better bet... You're forgetting INSURANCE and yearly Tag costs. ;) My 05 civic si hatchback 1st's tag was 398 bucks...in Rankin County MS Now it's 30 ish bucks tops Insurance for just liability was over 110 bucks a month back then ( and yes I shopped around with ALL available insurance providers) ...Now it's more like 25 to 28 bucks tops a month Do the math. I'll take a 4 or 5 year old vehicle over a brand new one ..ANY day now

[@jerryf6983]

I have a $2 buffer. I stock pile money for future bills I know I have outside of regular bills.

[@TalyaT922]

A house is generally an appreciating asset. A car generally depreciates (except in this crazy market). Taking out a mortgage looks very different from taking on a car payment.

[@matthewphillips5483]

Structures don't appreciate. The land appreciates. The structure needs maintenance to hold any value which takes money out of your pocket.

[@Themoomabides]

“I’m a small town pastor…so I know more than everyone…as a small town pastor…I like pointing out things I find inconsistent…because as a small town pastor…did I mention I’m a small town pastor…”

[@andrewmarshall7569]

I don't see what's wrong with someone calling in and asking a very legitimate question.

[@jasonrodgers9063]

@@andrewmarshall7569 It's just the REPETITION, as if he wasn't heard the first 4 or 5 times!

[@JustinCase780]

He needs to repeat it over and over because he doesn't believe it either.

[@Raegoul]

Wow. He's a small town pastor? I didn't know. I wish he would have said something! It's too bad he didn't say anything because it's completely relevant to the call!

[@andrewmarshall7569]

@@JustinCase780 I would love to see you call into a radio show so we can pick apart each and every word you have to say. Maybe the pastor was nervous. You are not being kind in this instance, and nothing the pastor said was negative.

[@MikeNapoli1989]

Don’t be in debt.

[@j.elcarnicero9250]

The caller is a character 🤣

[@johnjacobjinglehimerschmid3555]

Wow. I like and his approach to telling me that he doesn't borrow. Period. It's awesome. He states somewhere around 4:20 that it's hard to tell people to save up for 10 years to buy a house with cash. I don't know where he lives but houses near me are now listing for at least 200k. I don't know anybody who has 2000 a month to pay rent which is nearing 1000 a month here for just soso housing and put the 1.6k a month into the bank ( and and not have that house $$$ within that 10 years ).

[@qjc2300]

Church Hill mortgage pays Dave Ramsey millions of dollars a year to advertise getting a mortgage. It's nothing personal people It's JUST BUSINESS!

[@matthewphillips5483]

DR is an uber grifter.

[@djpuplex]

He Should have went into Dave character contradictions that's where the gold is.

[@siva47931]

Dave Says: If you owe it, pay it Dave Does: Declare bankruptcy Days Says: Eagle that doesn't leave the nest is a turkey Dave does: my adult daughter still works for me Dave says: you need to find work outside the home to find purpose and contribute to society Dave does: my wife never had a job even after all 3 kids left home for college

[@djpuplex]

@@siva47931 Also the Golden rule treat people like you wanna be treated. Runs his business like a tyrant. Single moms are heros. Fires a women who wasn't married and got pregnant.

[@TonyCox1351]

@@siva47931bro you’re reaching so hard. Dave declared bankruptcy 30 years ago. And he has always supported the idea of being a stay at home moms when it works financially. Swing and a miss

[@nailatiylluf]

@@siva47931I have to correct you. Sure one daughter is an on air personality/author who uses her dads name to sell books but let’s not forget his other daughter runs his charity, his son runs his business, and his son in law runs his real estate business….but I’m sure it’s a coincidence and they were just the best people for the jobs.

[@Eye_Witness]

Many years ago, my rent was $275 per month. I bought a house on a 30 year mortgage and my payment was $278 per month which included the taxes and insurance. With rent, I would never have had any equity. My $28,000 house is now worth $100,000. Despite taxes and insurance increasing, it would still be less than the $650-900 it would now cost to rent that same little house. I paid $16,500 in rent the five years I lived there with nothing to show for it. By the time I could have saved $28,000 to pay cash for my home, it would have been to expensive for me to buy it outright.

[@maxrice6990]

I like this answer from Dave and it is actually consistent with biblical principles. The Bible is anti-slavery (all humans made in the image of God), but also exists in the real world where the practice is impossible to stamp out in many cultures and so also gives out principles for handling slavery in a more godly way.

[@jabdeeznuts]

What I think the pastor was asking is not a slosh fund, but the idea to get out of "needing credit" to get out of debt paradox. But if you have a monthly budget set, you basically need to not spend ANYTHING other than waiting for the big ticket items to hit by the time you get paid. You budget 300 for groceries, but you can't spend that money until you get paid and rent is taken out for example. I went through the same thing and for about a month or two out, I recommend putting every single day listen and do a cash flow analysis and see what money you have and deduct what HAS to be paid, and you can't spend anymore than what would ever put your cash flow/daily balance under zero. After that and your budgeted, you will inherently gain a buffer for the $5 you didn't spend on gas or something and it will add over time. Then say ok, I don't need more than 200 to cover any normal transaction that I have budgeted. If you have bigger purchases budgeted, have that money saved separate in a savings bucket, that was budgeted from prior months.

[@GMan56M]

I agree with this. Budgeting isn't easy if you've never been taught how to do it effectively, so there is going to be a period of probably several months of iteration and correction after you set your initial baseline. Even then, some months are so variable that over the course of the last several years, I still have to reconfigure our budget every six months or so and create a new baseline. I think it's assumed by people going through the Ramsey program that once you set an initial budget, you just stick to that and it never changes, but I haven't found that to be realistic in our case.

[@jimmymcgill6778]

He also tells people to sometime borrow to pay taxes, or to pay off a car loan, to sell it.

[@jackiechoate6163]

What Dave says to do that it's not like you are borrowing more money you're moving your debt around to where it's easier to pay. If you owe the IRS money then getting a loan from a credit union to cover it makes the IRS off your back but you still owe the same amount of money.

[@thomasdalton1508]

That's converting one type of debt for another rather than going into debt. If you are in debt to the tax man, that's a really bad debt. Converting that to a debt to a credit union is a great improvement. Converting a large car loan and an expensive car into a small credit union loan and a cheap car is also a great improvement.

[@jimmymcgill6778]

@@jackiechoate6163 You can setup a payment plan with the IRS. Interest will still be cheaper then taking a loan. But he hates when people do debt consolidation to move debt around. But to move IRS debt, is OK?

[@jimmymcgill6778]

@@thomasdalton1508 You can set up payment plans with the IRS.

[@JustinCase780]

If you have a $2,500 loan at 3% and a $30,000 loan at 24% pay off the little one first. *sarcasm*

[@shelleyirwin6104]

I don’t think we need a buffer. Ever since we surpassed BS 4 there has been plenty of extra in the checking account. The caller is still in middle class mentality.

[@janise01]

So you have a buffer.

[@kennykichura1874]

What about a business? Is it ok to borrow to open a business, start a business, or investment properties? Thanks

[@LegDayLas]

According to Dave, absolutely not. Statistically start ups fail more times then they succeed, so going into debt to start one is statistically going to end in disaster. Dave would have you looking for an investor that will take on that risk, in exchange for a significant portion of your business's ownership. Basically if you are broke and want to start a business to get out, the "right" way to do it isn't to have one good idea. It's to have two. Your first good idea will have an investor leeching most of the profit, while also giving you enough money to start your second good idea, which you will have full ownership of.

[@katherinewillfong9585]

Please advise where I can get copies of the baby step program

[@marysaltlife1427]

It is on the Ramsey Solutions website.

[@katherinewillfong9585]

@@marysaltlife1427 Thank you. Have a great day! 🌞

[@elainepatterson5587]

Don't play gotcha with Dave.

[@Shortballa11]

Wasnt rlly a gotcha. it was a very respectful question

[@rosskred1160]

​@@Shortballa11 you're not allowed to question Dave 😤 😂

[@stevenporter863]

Dave it like a parent to a little child: because I said so.

[@Shortballa11]

Trust us Zachary, you arent the only one with a problem with the $1,000 emergency fund since the 90s. But we can still agree with majority of the Ramsey principles.

[@GAFB1122]

I like your comment and that's how more people should be. You don't have to agree with everything. I certainly don't, but overall, I find Ramsey's financial principles a good way to live. What bugs me are those people who follow Dave and comment negatively on every video because they clearly disagree with most or all Dave is about. To them I say, you should follow someone you agree with. Shaking my head at these people!

[@Shortballa11]

@@GAFB1122 this is spot on. And rlly this is the problem with societies view on most things in life nowadays

[@pamwilliams6630]

Need about 5000, then start on the 3 months salary savings, then 6 months, but usually something happens and you must pay for it.

[@HelosWorldRailroadReseller]

A minimum of $2500 emergency fund is necessary in 2024. No discussion.

[@Shortballa11]

@@pamwilliams6630 id prob side with the comment below $2kish. That covers car issues or a next day play ticket if there is an emergency.

[@Raegoul]

I spend April's earned income in June. This is separate from having the 6 month emergency fund.

[@matthewphillips5483]

Who cares?

[@Raegoul]

@@matthewphillips5483 if you actually watched to the end of the video you would know why this is relevant.

[@matthewphillips5483]

@@Raegoul You came here looking for validation (which is sad in itself) but no one cares, dude.

[@analogguy5548]

I’m in Dave’s financial church, but I’m the back pew. a) I’m 75 years old. I’m retired. I have net worth of two million dollars. I have a $200,000 30 year fixed rate mortgage at 3.25%. I could pay off the mortgage with money I have in the bank. The money in the bank is earning 5% interest! b) I use credit cards. I get 3% cash back on gas. I get 3% cash back on groceries. I get 5% cash back on Amazon. I pay all my utilities with credit cards and get Amazon points on those payments. I’m very careful with my spending. I always pay my credit card bills in full. Except for the mortgage I have no other debt. I have never had a car loan. For me “saving” money by using credit cards is a game!

[@WhatShallEyeDo4U]

House = equity. Even if you owe and you sell it, you get a significant amount in return.

[@insideoutsideupsidedown2218]

Couple years ago this was a windfall.

[@davidbrayshaw3529]

It also equals a relatively secure environment and one which you can tailor to your own liking. Added bonus is that mortgage repayments fall relative to income whereas rents rise.

[@johnkwhite1984]

Dave Ramsey is rich 🤑 selling you his books and tape sets 😂feeding off the poor people

[@insideoutsideupsidedown2218]

Hey, if you don't want it, don't buy it.

[@johnkwhite1984]

@@insideoutsideupsidedown2218 You keep making him rich buddy lol 😂

[@Art-is-craft]

Ramsey employs over 1000 people and it has nothing to do with books.

[@zachdarr7605]

Oh man. We had a $1k buffer and a $1k emergency fund 😂

[@bonniej0]

So I've had my mortgage for 22 years, I bought it with $20,000 down for $115,000 . I filed bankruptcy in 2017, the balance was 85,000. You tell me how it's possible that I still owe $90,000 on my loan even since October I've been paying on it for 7 months now and it hasn't gone down at all. The first thing I'm behind and since I've got off my forbearance and I've been paying it they've been back dating it a year so I can't even get any credit I can't get an equity loan or anything they're ruining my credit😢. Would you happen to know the best negotiable instruments and you didn't use to pay off the balance and get settled once and for all??

[@raymond_sycamore]

Dave is not a Christian.

[@insideoutsideupsidedown2218]

Next, you will say he is not a sinner...

[@stevew4079]

No; a solid financial plan recommends a buffer. You've got to get to step zero, first. It can take a full year to 'catch up' on the cycle, if you're really starting out broke. What happens: people new to budgeting tally everything up, divide by 12, and that's it. Doesn't work. Not until the second year, and youve saved a buffer. Simple example. You start your furst budget. But now you've got your annual car registration due next month. You have to pay the whole amount...and THEN...add one-twelth of that to your budget from the following month, so that you'll have it saved for the next year. Badically, non-monthly expenses (and where they fall) are what can really derail someone's good intentions when they are new to budgeting, especially in the first year. That's why those who aren't bad with credit cards (broke but not going into cc debt) shouldn't cut them up. Theyre a good tool, used correctly. Unfortunately a lot of people can't do that, and so they should cut them up. But they're going to have to be really judicious, and pay a lot of attention on those first couple years. Getting your budget swinging along correctly, and a reasonable emergency fund are actually my first two step recommendations, BEFORE paying extra on debt (snowball or avalanche methods). Attack debt from a place of strength.

[@jeraldbottcher1588]

I live my life without debt. The only debt I ever felt comfortable was when I bought my house. The trick it to buy a house you can afford and can pay off in a reasonable manner. It is paying for my shelter that I otherwise would pay for rent. I pay for everything else with cash. If I ever took out a loan for a car I always made a sizeable down payment and paid it off way early. Now living worry free!

[@scratch57]

a mortgage is the best of a bad situation, and Dave isn't even a hypocrite on this. if you have the money to buy outright he recommends it. This is consistent with his own life.

[@kariatkinson4121]

The verse he is referencing is the borrower is servant to the lender, not slave.

[@janise01]

Haven't researched it but I suspect it says slave in some versions of the Bible and servant in others

[@motoryzen]

Servant or slave in this context does not matter they're close enough to being the same in that yes they can legally come after you and cause the administration of punishment upon you if you don't pay back the debt And the feeling of slavery in this case is not too far off

[@matthewmchenry9331]

Ol, but I don't want to serve Capital One either.

[@jeremybiar]

Props to Dave for not flexing when the guy thought he had an improvement for the baby steps. I would've been like, wait, so you're a couple months to this and broke, and I've got 30 years of practice with millions of customers and a 600m+ business that was built literally around these 7 baby steps, but you're telling me I did em wrong? 😂

[@CryptoVin]

I bought a house I could afford but didn’t have enough for a down payment. I got owner financing with a lower rate than what the bank could give me and no PMI. Today that house is worth double. If I listened to Dave’s advice I would have never got that home today.

[@ThekillingGoku]

Personally, I never really budget anything at all 'in advance'. I hit up the grocery store and buy what I like that week, no matter whether it's the cheapest piece of chicken or most expensive cut of meat in front of me, depending on that day's selection. So if this month I spend X on groceries and next month it's X + 100, then next X - 100, I'm cool with that. I generally do have a sort of cap to myself on how much I want to allow myself to spend. So while I don't really bother too much with groceries, I will keep myself in check for miscelaneous purchases (ya know, the Amazon type stuff). Usually leaving something on a shopping list for days to sometimes weeks before deciding on it (if I still want/need it after that time). As such, I still never end up with a budget 'deficit' (e.g. I always live on less than I make AND I haven't had a month without 'savings' in a long ass time). I don't have much debt to speak of, so of course that helps.

[@LegDayLas]

Daves advise to assign every dollar a job is more so for people in debt who need to find a way out. If you spend less than you make and don't budget, that's fine. Are you getting the most value out of your income? factually no, but you are not in a situation where you NEED to be. Enjoying your life is far more important than how high you can get the numbers in your account before you die. Moderation is the key to prolonged happiness.

[@AieMem67]

Missed my pal Dave Ramsey

[@random-nz7dy]

1. You will be paying somebody a monthly payment for your living environment. There is no option to pay cash for that in a quick time span, unlike buying an affordable car with cash. 2. A mortgage is unique. Basically, no other form of debt preserves and even eventually increases your net worth, in and of itself. 3. Biblical principles don't always = overarching uniform commands.

[@GuillermoSanchez-Apex]

If the debt makes you money it's good ❤

[@crosswingrobots]

He also recommends credit union loans to get out from under water on a car loan.

[@Bbros_1012]

I agree with the buffer idea.. I find for myself that when I do a budget, it never sticks cause our income varys so much week to week. I usually have to scrap up more money to come up with what I need if my husband didn't get enough hours in. I feel a months worth of bills as a buffer will help me out.