We Did Something Stupid, Now How Do We Get Out?

[@TheRamseyShow]

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[@Kimbopolo]

You can tell that this is a solid hard working guy. Good for him for taking steps to fix these issues. Best of luck to him!

[@johnnyestrada6993]

This could be the title to 90% of Dave Ramsey’s calls.

[@r3d_ti3_guy]

So much comfort in savings. I totally get the callers hesitation. Pay it off, man. You’ll be fine.

[@jayrider2726]

I just met a 67 year old man who has 156k in student loans and still attending school with more loans. I asked him "what was his major in" he told me that it doesn't matter because the doctor told him he has about 6 months left to live. He notified FASA and they didn't care about him borrowing money either knowing that it won't be paid back "because other students who borrow FASA "pick up the tab" through their long term repayment plans with interest. I'm not trying to be rude or disrespectful but "I don't understand the system anymore."

[@bsolutions525]

these loans are not in your interest, or its students best interests. Its in the banker's interest. There, so simple

[@aFeverishFiend]

@@bsolutions525 Exactly.

[@socratesphilosophies2459]

Anyone saying anything; Dave: SELL THE CAR...TA-DAY!!

[@andyw6996]

..and..."BEANS AND RICE!"....

[@TylerCinema]

@@andyw6996 "YOU ARENT GONNA SET FOOT IN A RESTAURANT UNLESS ITS FOR A SECOND JOB!"

[@socratesphilosophies2459]

😂😂 I love Dave

[@alifeinrealestate1230]

I met Dave nearly 20 years ago. Always great advice. Always prioritize you debts and investments. Thanks Dave!

[@SteveRam]

Have to say I agree. Pay off that 401k ASAP. Good luck to you! And congrats on the addition to the family!

[@raccoonz8526]

I hate the fact that the money in the 401k is just wasting away.

[@darrylhutchings1698]

I'm Canadian, I wish I could speak with Dave in Canada, Cause he's awesome and I love listening to his financial advice. Plus he's honest and too the point. No sugar coating either.

[@hurt1704]

Darryl Hutchings umm you can speak to Dave in Canada..

[@JAMANIJAMANI]

@@hurt1704 not really, I've been trying for months, no one gets back! I thinks its because they have call back on int'l number

[@hurt1704]

JAMANI I have heard a Canadian caller call in on one before. We'll just talk on the phone and I can put you on speaker with Dave on another phone lol

[@JAMANIJAMANI]

@@hurt1704 lol! neat idea! I'm up for it! This was some months ago though, I've since gone back home to London.

[@hurt1704]

JAMANI haha London huh? I have been to London several times. My ex lives in north London, On. I Thought it sounded like a good idea 😆. How I miss a salad from farm boy

[@ChrisMFlorida]

Well props for being smart and selling the 65k truck.. that's just insane to buy a vehicle like that when you're making an average income and have debt. When you see the depreciation on that it makes no logical sense to save for retirement while have a huge truck loan. Any gains in your 401k are offset by the stupid truck depreciation.

[@justinacase2623]

Good grief, another six figure income and in financial trouble. Upside he can clean this up pretty quick. That's a man, to take a lump on his truck and support his wife and kids. Ladies, that's a keeper!

[@twilde3754]

Agree: NEVER borrow from a 401!!!

[@katrinaumana2127]

That's okay I got a degree in stupid. I bought my house when I had a car payment. The car is paid off & I'm working the debt snowball.

[@blackworldtraveler3711]

Katrina Umana But did you do it with two kids knowing you were having another and going to lose your income? Was your car $60k?

[@katrinaumana2127]

@@blackworldtraveler3711 We had just had our 2nd. I went back to work & the car was 30K and we made 90K. Our mortgage loan was 85K.

[@ed4253]

I worked for a 401 (k) TPA in a call center. 95% of calls were loans.

[@nrashmi8646]

How sad.

[@keepitsimpleydb6151]

I was just discussing with my Mom. With your 1st job teach your child(dren) to save for things. Basic foundation trait to have.

[@BreadChasers]

Debt holds so many people back. It's so much easier to get in, then to get out. Just better to avoid all together in the first place!

[@philmarsh7723]

And others' stupid debts harms the economics for all of us.

[@elizabethbaxter7417]

Dave, can you make a video about negotiating with the student loan companies to settle debts? It would really be helpful if you have any tips to help negotiating.

[@aligncars10000]

Pay you bill. You took out the LOAN

[@yiliu5909]

Pay your bill, it doesn’t make any sense for them to settle for us. Cause they can take money from your wages or retirement if you don’t pay. So just pay it, you have no leverage.

[@elizabethbaxter7417]

Y’all attacking me without knowing anything about me or my situation 🤔 Lol but I have thick skin so I’ll just pray for you all and hope nobody treats you the way you treat other people.

[@yamamancha]

@@elizabethbaxter7417 I don't think they were "attacking" you. Just being blunt. You have little to no leverage with student loans and the physical emotional strain of negotiating a settlement may outweigh the benefit because of legal measurements available to creditors (private and government).

[@aligncars10000]

@@elizabethbaxter7417 It's a LOAN that YOU signed for. No one is attacking you we are telling you the truth.

[@Julianna76]

My husband and I have TSP. TSP Is a totally different ballgame. I borrowed $5500 from mine 5 years ago when our HVAC died. I paid little interest and paid it all back in less than 2 years. I am still working for Uncle Sam. Since I was paying myself back, there was no income tax penalty. I will be retiring at the end of the year. I am not taking a death benefit for my husband, he has one for me as he retired CSRS and I am FERS. The mortgage will be paid off in June of this year. We haven't had a credit card in over 10 years. I am going to have monthly withdrawals of my TSP for 4 years, maybe 3 because I'm going to buy car. (Used) Yes, I know about the 20% tax, that will be accounted for. Not paying over 30K for one either, price is firm. I haven't had a car payment since 2009, and husband since 2010. My husband retired 8 years ago and there is enough in his TSP to bury us both. We are selling our house in a few years and will roll the proceeds from sale into a smaller condo/patio home with outside and yard maintenance in the form of an HOA, so we only insure what is "inside" the home. We have 2 months at this point living expenses in savings. We have always got a refund at tax time and sorry Dave, that comes in handy, or we will spend it otherwise. Our millennial children do not want the house or anything in it. So we will sell off a lot of it and build our savings living expenses. We are blessed that we are civil service employees and have budgeted and planned to make our retirement comfortable. My kids didnt go to Disney World, and seem to be doing fine.

[@inorbit5701]

65,000 pick up truck 🤨

[@AJ-ek7ht]

they even go to 80k a year in some companies

[@GR-uc1gq]

Ford Raptors can go for more

[@jdmac157]

Wonder if it ever got used as a truck.

[@bettysmith7045]

Crazy!!! I bought a new truck with decent enough features for 36K, no reason anyone needs to pay 65K for a new truck!!

[@wpgangi1]

Unless I heard wrong, it sounds like he only got 55 for it. He had to borrow 10 to make up the difference. :(

[@kentrelhayes5982]

Someone on the phone:... Dave: I’m going to send you my book

[@KrystalToddCPA]

No sense in having the money to paid off the 401k loan and not pay it. If the money is in a savings it’s making tops 2%. The penalty is 10%

[@mrfunkybassist]

Sir We Are About to Die except since shes no longer working so they’re coming for it at the end of march so there’s no “keeping it at bay” but rather incurring the penalty and taxes for early withdrawal...

[@thensh1tguy]

Sorry Dave I did it and now lost my job there 🤦‍♂️ never again will I do it

[@blackworldtraveler3711]

Big Dave What happened to you was explained in your 401k documents when you started your 401k so I hope you’re not surprised.

[@dedios03]

@@blackworldtraveler3711 have some compassion man. Big dave just don't do it again do whats right man learn your lesson

[@Cryptogally]

We borrowed from our 401K to pay off student loans and paid it back already and we are far better off now than if we had kept the student loan which was adding $600 a month in interest!

[@autiger621]

Did you take a smaller loss with the taxes/fees from the early withdrawal than you would have paid in student loan interest for x number of months/years?

[@heididiego3719]

I've had a TSP account in the G Fund for over 27yrs. My job does match it. But let me tell you something I've withdrawed from this account approximately 8 times but I have never requested it as a loan but a hardship financial withdrawal and I am aware I do have to pay taxes over it. So Everytime I withdraw was cause i really I really need it . I used it to pay off my house cause I was behind on my mortgage it was going to get repoed. I'm sorry ☹️😞 but I did it

[@Julianna76]

TSP Is a totally different ballgame. I borrowed $5500 from mine 5 years ago when our HVAC died. I paid little interest and paid it all back in less than 2 years. I am still working for Uncle Sam. Since I was paying myself back, there was no income tax penalty. I will be retiring at the end of the year. I am not taking a death benefit for my husband, he has one for me as he retired CSRS and I am FERS. The mortgage will be paid off in June of this year. We haven't had a credit card in over 10 years. I am going to have monthly withdrawals of my TSP for 4 years, maybe 3 because I'm going to buy car. (Used) Yes, I know about the 20% tax, that will be accounted for. Not paying over 30K for one either, price is firm. I haven't had a car payment since 2009, and husband since 2010. My husband retired 8 years ago and there is enough in his TSP to bury us both. We are selling our house in a few years and will roll the proceeds from sale into a smaller condo/patio home with outside and yard maintenance in the form of an HOA, so we only insure what is "inside" the home. We have 2 months at this point living expenses in savings. We have always got a refund at tax time and sorry Dave, that comes in handy, or we will spend it otherwise. Our millennial children do not want the house or anything in it. So we will sell off a lot of it and build our savings living expenses. We are blessed that we are civil service employees and have budgeted and planned to make our retirement comfortable. My kids didnt go to Disney World, and seem to be doing fine.

[@martinparmer]

I have one minor disagreement with Dave, I think one should continue to invest in the 401k up to the % that you get a company match. That's free money. In my case it was 6%. Then, I got an additional 3% company match for free. 6% is not going to prolong you getting out of debt all that long and in the meantime, you're putting money away for retirement. BTW, I retired debt free at 59.5 years.

[@GardenerEarthGuy]

He's going to deliver pizza a few hours each night to pull in that sweet $75k a month in extra cash, plus tips. Out of debt completely in 30 days.

[@PassiveIncomeTom]

*Pay off the 401K. Baby steps...* 😉

[@uptoyouThailand]

I thought this was going to be about the federal reserve and the government.

[@randy944]

NEVER borrow money to pay off a debt. just make arrangements and make payments on the original debt.

[@unclestinky6388]

Question: Is it OK to borrow on my 401(k)? Asking for a friend.

[@villafontananorte]

Yes, it is okay depending of the amount!! I borrow $1000 approx every year from my 401k, $20 every week for 12 months. Borrowing a lot of money is stupid!

[@conureron3792]

Man, over the years, I think I’ve violated every one of Dave’s cardinal rules.

[@russsherwood5978]

i dont have any debt, and have my emergency fund done, now what do i do as i,m on a dis-abilty, where do i go from here? please help,, be blessed and safe

[@blackworldtraveler3711]

russ sherwood Better keep adding to it and never stop.

[@raccoonz8526]

How old and where do you live?

[@raccoonz8526]

1) the Federal reserve has been doing quantitative easing since 2008 to bail out the banks. 2) the federal reserve has been helping in the repo market since September of 2019 to save the banks. 3) the Federal reserve lowered the interest rates to try and save the stock market. When this bubble pops it’s game over.

[@raccoonz8526]

2 days / 2,000 years If Jesus’s was raised after 2 days, so shall the body of Christ. Christ was raised on the 3rd day, so shall the body of Christ. John 2 19. Jesus answered and said unto them, Destroy this temple, and in three days I will raise it up. Hosea 6 1Come, and let us return unto the LORD: for he hath torn, and he will heal us; he hath smitten, and he will bind us up. 2. After two days will he revive us: in the third day he will raise us up, and we shall live in his sight. 3. Then shall we know, if we follow on to know the LORD: his going forth is prepared as the morning; and he shall come unto us as the rain, as the latter and former rain unto the earth. 2 Peter 3 8. But, beloved, be not ignorant of this one thing, that one day is with the Lord as a thousand years, and a thousand years as one day. Day 1 / 1-1,000 / 3,072-2,072 Day 2 / 1,000-2,000 / 2,072-1,072 Day 3 / 2,000-3,000 / 1,072-972 Day 4 / 3,000-4,000 / 972BC-28AD Day 5 / 4,000-5,000 / 28AD-1,028 Day 6 / 5,000-6,000 / 1,028-2,028 Day 7 / 6,000-7,000 / 2028-3,028 Christ body raised on the feast of firstfruits in 28AD. The body of Christ raised on the feast of Trumpets in 2028AD.

[@ligerllama]

Rac Coonz All your talk points are missing are the dots. Dig a little deeper on this topic so you can start thinking for yourself and not sound like a squawking parrot. 🦜

[@GR-uc1gq]

My 401k with my is only 600 bucks and I've stopped adding to it. I'm leaving the job soon and want to use it to pay off baby step 2. Will I get hit with fees and taxes if I don't roll it into a ira?

[@joeb1522]

Yes

[@Enemji]

Why is Dave Ramsey always doing better than he deserves? We need to fix that.

[@bettysmith7045]

I think it's about being humble.

[@Enemji]

Betty Smith - One would think that, but I am sure Dave has done things that he has not been punished for. That is why he cannot refrain from saying this.

[@ZacharyLaid]

Pay off the 401k

[@ProSkillGuides]

The only thing stupid is buying iced coffee from Starbucks everyday.. and if you’re wondering if I do it. You’re dang right I do.

[@MsPants1632]

Alex Zim Finance go to Dunkin, it’s $3 cheaper per iced coffee and tastes better in my opinion :)) I will admit, Starbucks hot lattes are way better than Dunkin:)

[@ProSkillGuides]

Ms. Pants it’s hard to quit haha

[@MsPants1632]

Alex Zim Finance I hear that lol

[@bettysmith7045]

@@MsPants1632 Dunking Donuts taste like what I can only imagine toilet water tasting like.

[@Kimmy0007]

Do you invest in start ups Mr. Ramsey?

[@miguelfloriano9039]

Theres more in life than just saving money and building wealth you as a Christian should know this and more .

[@sami-9233]

Building wealth and collecting material should be some of lowest priority

[@leadnsteel1428]

I always like these videos but don't agree with keeping only 1000.00 for an emergency... 1000 doesn't go far these days. Example is if someone needed to sell a vehicle they will need more than 1000 to make the difference

[@autiger621]

leadnsteel $1k absolutely doesn’t go far but it is just a “mini” emergency fund until all debts other than mortgage are paid off. After the debt is gone it is 3-6 months of expenses, which for me is $12k.

[@IamtheGL]

Asking Dave is a good primer paso

[@rokagreddy8766]

Pay down the 401k loan and problem solved. I took 401k loan twice to buy cars with and always pay it back within 3 years.

[@aolvaar8792]

She left the job, payment in full required, or taxes + penalty

[@bettysmith7045]

Roka, I would not withdraw from your retirement to buy a depreciating asset! Not a good idea at all, as you are loosing money in your retirement account.

[@DisabilityExams]

Today's stay at home moms can work over the internet. This isn't 1990.

[@blackworldtraveler3711]

JDave Foster Wouldn’t make a difference what year if she choose not to.

[@DisabilityExams]

@@blackworldtraveler3711 Thanks for stating the obvious.

[@blackworldtraveler3711]

JDave Foster Just stating the obvious with the obvious. Also the husband can’t do a thing about it.

[@byronbranch4645]

He's really not doing too bad.

[@lynsolorzanoaguilar623]

How do you adjust your W4s?

[@bettysmith7045]

Instead of claiming zero, claim 1, 2 , or 3 depending on how much you want to retain. Just keep in mind if you do it wrong you will owe at the end of the year.

[@ThinkMoneyBenny]

$10k emergency fund? lets 5-10X that for some real security!

[@LegacyFarmandHomestead]

Depends on your income.. 50k to 100k would cover all my expenses for 3-6 years. 3-6 years in an emergency fund is insane.

[@LegacyFarmandHomestead]

@Mr. Wick 100k is liquid cash is dumb imo. Should be invested.

[@blackworldtraveler3711]

LIFE STARTS NOW Not really. Your way of thinking is insane. My emergency fund is close to $400k and will keep growing. Will keep adding to it during retirement as well. Also completely debt free. Even though I’ve never really had an emergency I don’t know about the future where emergency can go beyond just living expenses. So it stays.

[@zacd7094]

How can i speak with you, or just ask you my question.

[@autiger621]

Zac d uhh call his show?

[@zacd7094]

@@autiger621 Awesome what is the number?

[@debftlee9990]

She should of stayed employed and pay off that loan

[@privateprivate8366]

I thought that the advice had been to have some money liquid in the event the baby gets sick. Is that me?

[@faribaparvinjah9188]

I have 21 k debt student loan of my daughter ,rent 1k ,shared with her,along with my expenses no car in California! Total of$1400 expenses !is it wise to buy a car !or save up to buy a condo score of677..

[@mrfunkybassist]

Dave will tell u to pay off the debt before u buy a condo

[@bettysmith7045]

Pay off any debt, and get your credit score up! Save money to put down on a condo and the rest will follow.

[@Traps_Trades]

Dave 2020

[@raccoonz8526]

Return of Christ, Feast of trumpets 2028

[@dks13827]

Tax refund. Not return.

[@ransom182]

Again with the 10-12% ...

[@joncon4746]

👍🏼

[@gwillis01]

hello dude

[@dks13827]

Birth contol.

[@l.ls.8890]

This sounds a little disingenuous to me.

[@aligncars10000]

Have another kid that will fix it

[@pseudorealityisreal]

Some people have this obsession with popping out kids. That doesn't require any creativity, imagination...or a degree.

[@mosesyang4222]

Tell her to get back to work

[@bettysmith7045]

I was thinking that too, but maybe daycare with essentially wipe out her earnings.

[@jmoney6652]

Mutual funds, really..? 🤮

[@duplicateparadox7268]

Why not?

[@HamiltonRb]

Duplicate Paradox Just buy the index. Most mutual funds don’t beat the index after fees

[@duplicateparadox7268]

@@HamiltonRb what about individual stocks via robinhood?

[@HamiltonRb]

Duplicate Paradox Depending on the size of your portfolio because you want diversification into several sectors, and preferably several countries. Even though I am Canadian, for example I don’t want all my money invested in just Canada because it only represents about 4% of the world economy and some sectors are not represented well. The American economy is 50% of the world, but you would be missing out on the growth of some up and coming areas of the world such as India with a massive population. With an index you get better diversification and etfs such as VTI give you the full US economy while VT gives you the entire world with the US represented by about 50% of the index. Hope this helps

[@duplicateparadox7268]

@@HamiltonRb thank you! this was insightful