Why Dave Ramsey's 7 Baby Steps Work

[@WhiteBoardFinance]

*Do you follow the 7 baby steps? Why or why not?*

[@BrentHartleyTravel]

529's are only advantageous depending if there is any tax benefit correct? That would depend on what state you live in and which state's 529 you invest in (you can pick others that are not your own, some seem better managed than others and each has their only level of fees).

[@DrakonR]

I'll be following the steps now! Thanks!

[@RealLifeMoney]

It’s pretty straightforward and people are against him sometimes for some reason 😝

[@Garrycamden]

Not yet. But current struggles and stumbling across your videos have motivated me to do so. I love your videos. Thanks for everything

[@DavidJao]

No I don't exactly follow the baby steps. I use leverage for investing in stocks. But I agree with you that your primary home should be paid off first.

[@Billclint-i8f]

The continuously changing economic conditions in our society have made it necessary for people to find additional sources of income, thus I am looking at the stock market to fuel my retirement goal of $3m, my only concern is the recent market crash.

[@randettawolf]

For majority, the solution to their problem can be found in specialized knowledge, so can as well seek guidance from a well experienced advisor.

[@CheriFanizza]

Agreed, a lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.

[@franklyn-z1k]

Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?

[@CheriFanizza]

'Grace Adams Cook' , is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@franklyn-z1k]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@Scallopway]

I saved almost 20k for 3 years and lost 18k due to health issues in 6 months. Now I'm back on the game ready for step 4, more frugal. Thanks step 3!

[@MrBrettaxe]

Hi just read your comment very admirable you saved almost 20k. When you were ill for six months how did you find the will after losing 18k?

[@robloxvids2233]

You need to enroll in a High Deductible Health Plan. Max annual out of pocket (in network) is like 13K. Most people don't because copay is cheaper for little stuff but the big expense is what you need to be wary of. Always go HDHP+HSA. Life losers go the other route.

[@mandypdx]

Nuts! My annual max out of pocket is $1200/yr. I hope you changed insurance, and I hope you’re feeling better :)

[@robloxvids2233]

@@mandypdx Are you talking about deductible or max out of pocket?

[@mandypdx]

@@robloxvids2233 max out of pocket, my deductible is $500

[@bryannagreen9075]

I personally would swap 6 and 5. You should pay off your house before you invest for your or someone elses children's college. The amount of interest you pay over the full loan term is 10s to 100s of thousand in interest. Trying to save any of that interest by paying off early should be the goal and that savings is only realized by paying the loan off early. It also eliminates your most expensive recurring payment and once it's gone gives you that much less to pay monthly and that much more to invest monthly. The 1st goal is to pay off your debts and your house is a debt. I have 2 children by the way.

[@mrLuckasman]

Just found your channel I’m from northeast Ohio too! Heck yeah!

[@WhiteBoardFinance]

cool spread the word :)

[@sandrapenrod7927]

I'm just starting out but already had completed steps 1 and 3 before starting. Thanks to Covid, I spend very little on extras already and my income hasn't changed. I'm retired and my children are done with college. Both had scholarships so I can finish step 5 too. I'll be able to save more earlier since I don't have a lot of debt to start with.

[@Miloun]

Hey Marco, thanks for the videos. Good stuff. Where in Eastern Europe is your family from? Im from czechia, living in Switzerland now.

[@matthewsawczyn6592]

Congrats you and your wife!!

[@Lasharella]

Liked and subscribed, liked your video just found your channel, just one question where you parents from what part of Eastern Europe I’m also Eastern European

[@ilanbouchenino1067]

Hi Marko A little question 🙋‍♂️ How do you with buying car on credit for years. Do you deal with it like regular debts?

[@dalephillips8250]

Would you advise paying off a vehicle debt if it charges you a 5% penalty to pay off early? I didn't know this when I used this finance option and last month I was going to pay off the remaining $7000.00 but they told me there was a penalty to pay off early instead of making the last 14 payments at regular intervals.

[@21Matt5]

How much you put in for college funding? Percentage? Everything other step is pretty clear.

[@InvestToLive]

I think Dave recommends a 529 plan and those will have limits attached(often).

[@christophermitial1767]

Does step 2 include student loans?

[@HectorSnipes]

A wise individual understands that building wealth involves making smart investments, strategic tax planning, and informed financial decisions. While the stock market presents opportunities for growth, successfully capitalizing on them requires both skill and expertise.

[@lolitashaniel2342]

Yes, stock investments have potential, but it's important to be cautious. That's why I recommend working with a financial advisor who can guide you on the best times to enter and exit the market.

[@BateserJoanne]

Having an investment advisor is the best way to go about the stock market right now. I used to depend on KZbin videos but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.

[@grego6278]

Mind if I ask you to recommend this particular advisor you using their service?

[@BateserJoanne]

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

[@crystalcassandra5597]

I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you

[@ChristopherAbelman]

I am currently burning through my late 40s and This is no time to taper retirement savings. I want to max out my retirement funding and I also have another $200k in a savings account that i want to invest in a non-retirement account.Would it be better going to housing? Maybe own property and let it till im ready to move in at 65.

[@HildaBennet]

Research dividend aristocrats and choose six to ten firms with over 25 years of dividend payments. Also consider working with an asset-manager to build a strong portfolio.

[@FinnBraylon]

A good percentage of people do not invest in the stock market because of lack of guidance. Every year you don't invest, you are falling behind. I’m hitting numbers in the stock market I used to dream of… now my dreams are getting bigger. Going from ($50k to $600k) is surreal all thanks to insights from a professional.

[@PennyBergeron-os4ch]

I thought gains like that are nothing but a pipe dream! mind sharing details of yourmanager please?

[@FinnBraylon]

She goes by ‘’.Sonya Lee Mitchell’ I say you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

[@PennyBergeron-os4ch]

Thank you! I entered her full name into my browser, and her website came out on top. I filled her form and i hope she gets back to me soon.

[@ozarked2363]

There is also a lot of anecdotal evidence that it works. I'm 58. Mortgage is paid in full. No loans or debt. Both kids have Masters Degrees without student loans. Wife and I have about 600K in retirement savings. We are just beginning the giving part. I can't explain how much fun it is to leave a $22 tip in cash on an $8 lunch bill, or write a $300 check to the church for new shoes for elementary school kids. Full disclosure though, we aren't nearly as intentional with budgeting as we were while we were working our way up to step 7.

[@WhiteBoardFinance]

You are the person that I'm describing in this video. CONGRATS!!

[@JorgeSilvestrini]

Ozark Ed That’s who I want to be! Can’t wait to get to it...

[@andyschrack4466]

I did my best to save, just didn't have that much. I'm 48, not 58, so there is time to make it happen, but not much. I assume you both made excellent money as well. You don't have $600K in savings unless you make enough to save, I assume these were retirement investment accounts as well. Good job, I'm hoping to achieve the same.

[@lavender111]

Feel to free to help me out with the remodeling of my bathroom..it’s much needed. Haha but seriously congratulations!

[@f.-j.j.5738]

Never understood what people meant that giving feels better than receiving. But yes, yes it does...

[@jamipierce2526]

I listen to Dave every day on KZbin. I am a single mom and working his program has gotten me out of debt and I'm working on steps 4, 5, and 6 now.

[@WhiteBoardFinance]

Very inspiring, keep it up Jami

[@scholzdigital]

Way to go Jami!

[@ThatGuyyyyy]

Great job. Jealous of you. :p I’m trying my best for step 2. Trying to pay off the last 50k in student loans in the next 2 years. Can’t wait to get to your steps.

[@WhiteBoardFinance]

Keep it up

[@TheProDdigy]

@Sir Alfred Lawrence Not really a good question to ask a single mom. I was raised by a single mom, and it was an amazing way to grow up. You're just trolling "4 the lulz" but take a look at yourself and that comment. You should find baby steps to talk nicely.

[@sneakershowcase3992]

I’m 14 and I’m watching financial advice videos 🙃

[@luckyducky224]

Good for you! I hope you put it to good use.

[@sneakershowcase3992]

luckyducky224 Thanks!

[@daltonbrasier5491]

Best time to start

[@mrkwns24]

Good luck, kid! Take this advice to heart and you'll be all right. Sure wish I could go back in time and guide my 14-year old self to a better financial life.

[@1yk1965]

Mike Marroquin you are in a great place to start working on your future. Good luck to you and stick to the plan. Most 14 year olds I know aren't even thinking like you or there financial future. Don't let anyone distract you stay the ccourse and stay focused.

[@veramonique1724]

This is a Great video, Everyone needs more than there basic salary to be financially secured. The best thing to do with your money is to invest. Money left in savings always end up used with no returns ..

[@randydl4238]

The decision to invest is an acknowledgement that it comes with certain risks. Not all investments will do well and some may lose money. However, without risk, there would be no opportunity to potentially earn the higher returns that can help you grow your wealth.

[@danieljamal3709]

To manage investment risk, consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal.

[@veramonique1724]

Remember, diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline. Because investing can be complicated, consider working with a financial professional to help guide you on your wealth-building journey.

[@devdaniel3225]

I've been in the shadows for too long, who would you endorse ?

[@veramonique1724]

you should probably seek guidance, I do have an Expert Tamara Diane Hagan who does the heavy lifting for me, she makes research on stocks, and adds my portfolio with stocks for monthly and yearly earnings.

[@derek8742]

That $1000 cushion comes in handy when you screw up the math in the first month and overpay something too. I won't be confirming where that nugget of wisdom came from in this forum though.

[@SPQR7117]

Absolutely true- can confirm.

[@ucyberwolf]

You know Dave suggests you skip step 5 if you don’t have children. Funding someone else’s college would be a step 7 action.

[@kenmasters8885]

Melvin Scott save it under the 5 rule but use it under 7!

[@user-zd9fc4vs4q]

@@kenmasters8885 why would you do that? It would only slow you down if your diverting money into savings & not investing it. Wait until step 7 to actually give stuff away.

[@AJGT350]

Funding someone else's college would be Bernie Sanders' step

[@shayslay3416]

@@AJGT350 and not helping someone you love/in need succeed when you actually can afford to do so is a douchebag step.

[@ErwinSchrodinger64]

@@AJGT350 I'm not a Bernie Sanders supporter and I loathe and I'm completely disgusted with socialism on so many fronts simply based on economic numbers and moral grounds. However, funding someone else's education is not socialism. It's socialism when you're forced to fund someone else's education. When you chose to, however, it's anything but socialism.

[@fatiic4841]

I dont even live in the US, but i am following the DAVE RAMSEY baby steps! it makes a lot of sense no matter where in the world you live!!!

[@WhiteBoardFinance]

Agreed!

[@Ssookawai]

Same for me, I'm from Morocco, my income is much lower than the US average (like.. muuuch lower lol) but I'm preparing for an action plan for the upcoming year (2020) while adjusting to my own country (for the rates and taxes etc) . I'm fed up with my crazy spending habits especially after visiting apartments on sale… I realised that if I keep the same habits, I won't be able to afford an apartment, let alone facing an emergency (sickness, being laid off for some Reason,etc), I'll be totally ruined so… the whole concept seems logic, I hope that I'll be disciplined enough to commit to it.

[@janezagarella676]

@@Ssookawai my family lives in Morocco too the day I immigrate to America they were living in apartment with a very cheap rent I signed 12 checks for them to allow me at least to start my life here and see if really I want to live in America. They took the money from my bank, buy a chertla. Then started milking me like a cow, never gave a chance to think about my own life, and each time I mention marriage they get nervous and talk about how much they want me to brihg my brothers which is why in the first place I immigrate. After they moved to rich area they want me to buy an expensive VILLA my sisters and my father refuse to buy an apartment. Well I get my brothers and one of my sisters here with me. Now I end up getting married at a very late age my only dauther is 12 years old I have a house thet I paid 1/2 it's price have 65000 in 401k have good saving. My family never satisfied because they ask for too much that I couldn't effort since I came here already old, went to school because I'm really smart get my RN certificate while working and sending crazy money to Morocco. I'm still buying love of my family. I'm sorry that's was very long but really I want people to be a little selfish If you want to be happy and fulfill your dreams.

[@Mukation]

Yeah, just translate the equivalent of the currency and buying power of the nation you live in. I'm swedish and 1K dollars is about 10K swedish crows and the living standard is roughly the same. We just earn 10 times "more" and and everything "costs" about 10 times more (so basically the same). But the US has lower income taxes though, but Daves teachings still work.

[@mitooquerer]

@@Ssookawai I hope you are doing well during the pandemic.

[@rayjgold]

7 Baby Steps list: 1. Save 1,000 starter emergency fund 2. Pay off all debt except for mortgage 3. Save 3-6 month of living expenses (emergency fund, liquid) 4. Invest 15% of income into retirement fund (401k/Ira) 5. Save for Kids College fund (529 plan) 6. Pay off Home early 7. Live and give. 8. Like this post to bring it to the top.

[@maddytcb6072]

Step 8. Don't loan to family and friends especially family.

[@WhiteBoardFinance]

Friends and money are like oil and water

[@DavidMiller-du9dy]

Investing in Nfts, and particularly the crypto market is one important step I’ll be taking this year, I’m new to it a basically been doing lots of research. There’s so much opportunity to earn.

[@noelstout3056]

The market is looking a little bit relief, I anticipate a short bull. It is reasonable to open some sport positions from here and of course with tight stop loss.

[@donaldshoemaker9347]

I wish i started these steps 20 years ago.

[@WhiteBoardFinance]

Better late than never

[@cattsmahal1005]

Me too. But it’s only too late when you’re dead and your family is stuck with your debt.

[@gabrielle2dream559]

Me too

[@jerel42]

Sure, but you didn't know about them, so don't kick yourself! Start now. :)

[@christiandavis7924]

Best time to plant a tree was 20 years ago. The second best time, is today.

[@opinionatedape5895]

Pay off debt. Then pay cash for everything.

[@JustifyJustin]

@@NicoRockatansky Weeeell... combined wealth is better than individual wealth - all the stats prove it. Maybe you should modify it to "marry the right person".

[@JustifyJustin]

@@NicoRockatansky Been on both sides of the coin... still stand by it :)... oh and dont marry in communion of property.

[@Monster33336]

That's equivalent to saying get a better job.

[@loscontreras4511]

Opinionated Ape If you want to go faster go alone, but if you want to go further go with someone (your spouse). I choose the later. It’s a blessing being married.

[@edwiser3547]

I agree. The freedom and security of such a lifestyle cannot be imagined by wage slaves in debt.

[@BonnieHalfElven]

I would fund relatives' kids college only in baby step 7. I will pay off my own house before worrying about that. I am 100% on board with DR, including paying cash only for everything. No "good" debt. I'm buying a car this week with cash. So glad not to have a car payment ever again!

[@Arteolike]

If you had investments averaging 10% return for the past 20+ years and someone’s offered you a 100k cash loan at a rate of 3%, would you not even consider taking the full loan and investing it? Debt is bad, agreed, but the reasons behind debt may be profitable if you have good management and investment skills.

[@WhiteBoardFinance]

Agreed, most people aren't disciplined however

[@RCXDerp]

@D If I have enough cash to pay it off does it even matter

[@branfooy]

@@RCXDerp I think having the cash to pay off your home (without actually) doing it gives you the same peace of mind. The down side is paying the mortgage interest.

[@jerel42]

@@Arteolike You are completely right ..........................IF THINGS GO WELL. You are not considering risk, and you are not considering human psychology. People who use leverage to invest are taking a very big risk. You are a grownup, you can do what you choose with your money, but just don't fool yourself that what you are doing is without substantial risk. Also, paying off your home that has a 3.5% interest rate is analogous, right? Well, getting 3.5% return on a risk-free investment would be a fabulous rate of return, would it not? CD's are paying 2.05% as of today. So you get a *great* rate on a risk free investment, and complete peace of mind! What a deal! Then, the money you used to pay on your mortgage can be used to invest in stocks, real estate, or whatever.

[@joseguilarte87]

Dave Ramsey principals without the yelling. I love it.

[@WhiteBoardFinance]

thank you Jose

[@dany6711]

Ramsey is motivating and getting his point across......his intent is good

[@justadudeintheworldman.120]

Dude DR rants are the best part

[@rogerwilliams4742]

Exactly. The yelling and calling people stupid is just juvenile.

[@rogerwilliams4742]

@@dany6711 If you are motivated by screaming and being called stupid. Most people, including myself are NOT resisting the message and information. It's his immature delivery method. Immature imo.

[@KP-hi1om]

I followed Dave's advice. I got a second job and went from $70k in debt to $30k in the bank and maxing out investments. I only wish I had known about this in my 20s.

[@wealthwise247]

Same here. But now is the best time to start if you hadn't started. Keep going 👏👏

[@jenniferkern1502]

I really liked your take about paying for college for somebody, even if you don’t have children. I like the kindness in your approach.

[@zacharychoate5428]

Dave’s the man. His podcast is inspiring and keeps my wife and me focused. The debt snowball is absolutely the way to go.

[@WhiteBoardFinance]

agreed!

[@kevinlue4756]

Avalanche is mathematically better/quicker if you can make your mind follow the math.

[@DrakonR]

I believe you are empowering a lot of followers. Great job!

[@WhiteBoardFinance]

Thank you Kyle. I'm a big believer in karma and that it all comes back around :)

[@ncdawn1]

Wish I had found him when I was younger but it works and feels amazing to be debt free!

[@WhiteBoardFinance]

great job!

[@elizabethpalu2447]

Love that you fully endorse baby step 7 - I think many people don't understand how amazing it is to be able to be at a place that you are not just stressed about yourself and your family but you can give back (significantly) to society. Love it!

[@nakho3550]

Why do you think you understand but many other don't?

[@RyanContreras72]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

[@brittanynicolette9473]

Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.

[@Franklin00974]

This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?

[@RyanContreras72]

Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $483k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.

[@KatherineAnderson-lm8bw]

Wow, that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.

[@AlinaWinkler233]

I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?

[@tommymodec]

I am a financial advisor and so I am always skeptical going into videos like these on KZbin, but I was very impressed by your overview of Ramsey’s approach and your own input. Only thing missing to me is having life and disability insurance in place for both spouses. Great job!

[@tommymodec]

@CS If you were to study to take your CFP (certified financial planner) examination, the first thing they talk about is risk management i.e. life insurance, disability insurance, emergency fund, and having a handle on your debt. It is too often overlooked because debt has a major emotional component to it (why Dave Ramsey is literally crazy about it) and investing is the sexy thing that everyone wants to talk about. Risk management is the foundation to all of good and thorough planning

[@soarabove337]

And if I were to follow the academic approach to my CFA (CFA, not CPA, not CFP), I’d likely not be running a $000M annual operation; that’s a toss-up; however, what I DO KNOW is if I’d have done things by the academic book or field manual, I assure you my military butt wouldn’t be here today. There’s everyone else’s knowledge (eg academia) and then there’s yours; plus a dose of reality thrown in for the ~spice~ of life lol. 😎👍

[@lindakranak8717]

I agree but Dave doesn't believein in life insurance from what I have listened to.

[@zachhawkins5005]

@@lindakranak8717 he doesn't like whole life insurance, but says you should have term life.

[@lindakranak8717]

@@zachhawkins5005 I would agree as I have sold life policies too and classes taught me a lot including to have disability and accident policies. We personally have used our accident policy.

[@TheGoat-qw6jb]

Im 18 and im on step 6! Going in the Marines this august! Cant wait to build wealth and give !

[@cattyghostly7414]

Do you live alone, plan to go to ccolleg/uni and have a car? Because otherwise this might be very easy lol

[@TheGoat-qw6jb]

Jasper Ghostly I plan to live with my girl, I have a paid off car 🔥 and I plan to become an uneducated millionaire lol my Marine sergeants make 100k a year with no degrees or debt 😎

[@soarabove337]

First of all - from one grunt to another - Oorah, devil dog. 👍 Second of all, dm me if you’d like a rl story of a Soldier that enlisted & had a personal goal of being a millionaire before his 20 years. Great story imo. Until then, Semper mf Fidelis, you. Sincerely, Army

[@johnkmartin]

Simper Fi

[@PInk77W1]

If u are in the Marines and do a 6 month ship deployment You can save a lot !!!!

[@r4ym1n13]

I read his book, it changed my finances around for the better. Highly recommended

[@WhiteBoardFinance]

Agreed

[@couchwarrior7207]

Giving to charity is great. However don't neglect long term care. My mothers nursing home which is not covered by Medicare is $8000 a month. So she is my charity. And I have to make sure I'm saving for my turn. Nothing left so sorry.

[@JaredGrenfellMusic]

Dave’s baby steps work because they are just as much psychological as they are mathematical. They take into account the fact that winning with money is more about discipline than it is tactics. The debt snowball is a path to getting your brain towards the “gazelle intense” mentality, which ultimately gives you the momentum needed to kill off your debt and start making your money work for you. Like Marko says, it’s like working out. You can come up with the best plan on paper, but it‘s useless if you can’t actually get yourself to do it…

[@ChrisInvests]

Dave Ramsey has helped countless people and I hope I can help even 1% of the people he's helped with my channel

[@PenniesNotPerfection]

Great video! As much as people grumble about Dave Ramsey, the baby steps really do work for a lot of people.

[@WhiteBoardFinance]

Agreed! Thanks for watching

[@soarabove337]

Who grumbles lol?!? I don’t get this. What am I missing?? (After flipping through the comments, I plan to post my own & ask why his better half “curses Dave” lol.

[@zvezdapadalica15]

Thanks so much for your videos, I made poor financial decisions in my early 20’s and now at 27 I am working towards financial freedom. Veliki pozdrav Marko! 😊

[@nguyenminhduc1993]

easily understood for English as a second language speaker, thank you, Marko.

[@WhiteBoardFinance]

My pleasure thanks for watching

[@27pugsly]

These days you need a $3000 emergency fund 😂

[@WhiteBoardFinance]

Lol!

[@Oboro911]

Make it $10000

[@TetelestaiontheCross]

Mike Guitar Player these are examples and goals. If you want to increase a number do it! It gets increased by step 3 anyways.

[@WhiteBoardFinance]

Exactly

[@rsarahi14]

Especially in California lol

[@dee.mrtinez]

23 year old here :) I’m going to be following these steps as of today! Any bank recommendations you suggest for the emergency fund? I currently bank with BOA. Thank you for this video by the way 👏🏽

[@MilesCobbett]

I like my local credit union team

[@etiancontreras3820]

The step that Mr. Ramsey talks about all the time, and probably the most important, is the one that comes before Step 1. The first thing that he has you do is to sit down with your spouse and get organized. Getting on a strict budget first is absolutely essential to do the Baby Steps. Ramsey's book was excellent. I recommend it to everyone. Thank you very much for your videos.

[@KaileiPaige]

etian contreras He also asks that you get current on all of your debt as you work on your budget and if you can’t then you need to reassess your job or expenses to enable yourself to pay minimums on all debt and I love that too!

[@jerel42]

Well, making a budget, and getting your spouse on board if you have one, is *part* of step 1, and the rest of the program. It's the *way* that you can save that first $1000, pay off your debt, etc.

[@bibaoreo4355]

What book exactly?

[@etiancontreras3820]

Biba Oreo Total Money Makeover

[@aeksinsang932]

I like Ramsey and his approach to $ but listening to you is easier than a shouting preacher

[@sylvagracialumbayi3924]

These days you need a 5000$ emergency fund 🤦🏾‍♀️

[@dkradiant]

Agreed $1000 is not a lot of money

[@TheGerm24]

That was step 3. I think step 1 was just supposed to be a temporary one to get people in the right direction.

[@tentenonmymind1387]

I agree that it's just a step in the right direction. I'm 22 and you'd be amazed how many people i know who can't save $1,000. Not because they're so consumed in bills but because they're dumb with money.

[@aaronhooper4803]

$1000 does a lot more than just help towards protecting yourself. It seems small, but builds confidence when you get it up fast, getting it fast shows a light at the end of the tunnel and gives you confidence to attack your smallest debt, which drives you more and more until you knock it all out, then build up your 3-6 months.

[@anniesshenanigans3815]

Dave said this small amount is suppose to make you scared, so you go gazelle through step 2. I too had trouble with that, I saved 15K before I started really hammering onto debt, and it was a good thing, because I recently had a serious injury resulting in over 5K in deductible/copays/medical equipment and expenses that had to be paid up front. I am so glad that I didn't have to go into credit card debt! And yes I have credit cards. All with zero balances. I cut one up. Nobody said this was a perfect way to do it!! But it has worked for me and being in my mid 50's I would say us old dogs can learn new tricks, we just have to tweak it to fit our life a little differently.

[@TheLakeShow323]

Tim Tebow, u doing this now?

[@WhiteBoardFinance]

Yeah man my baseball/football days are over

[@avatargoat1514]

🤣

[@famom9198]

He Appeals to all masses and groups of people... Much love from South Africa brother... 👌

[@JMCNYC79]

Pay Off All Debt? How is that a baby step?? 😳

[@laurab4570]

Thank you for explaining the steps in such a clear manner. It was super informative and helpful!

[@imyourfarmer9215]

...and remember, there's only one way to financial peace....and thats to walk DAILY with the prince of peace...

[@WhiteBoardFinance]

True true

[@happygirl7258]

Amen

[@Tubalcain422]

If you do that you don’t need lots of money.

[@1a1r]

@@Tubalcain422 said no one ever 😂

[@adamcochran7950]

Student loans are so daunting. I feel like they hold me back from ever building wealth, and I'm late to the game with trying to do that anyway. I'll be stuck on step 2 for a LONG time.

[@WhiteBoardFinance]

I'll make a video about this soon

[@Guyfromtha619]

U gotta look at the long term. The potential of what you can make will cancel out debt fast. Of course it depends on the career choice and how much debt is built up.

[@TheMajesticFamily]

we totally understand!! keep pushing don't give up! We are still pushing through ours!

[@AboutIssa]

I feel ya with that! I just graduated with a VERY high student loan debt, I’m talking six figures BUT with my medical degree I’m about to earn six figures on my first year as well. So I don’t feel TOO scared with paying back my loan just because that’s my only big responsibility besides small bills like a gym membership. So it really depends on the field you go into too!

[@empresslonnie1love391]

Aww that’s sweet planning to send someone else child to college.

[@MarlonAndGabriela]

Love Dave Ramsey! His debt snowball ball method is super simple and it works! Credit cards are the new cigarettes. Throw the credit cards away and stop being stupid and a slave to these companies cause cash is always king! “But what about my points and cash back and frequent flyer miles?” What about having no debt and paying everything in cash! Love DR!

[@WhiteBoardFinance]

Agreed!

[@yankeedoodle6293]

Folks. If you’re still getting out of debt and building your financial life, DO NOT PAY ANYONES COLLEGE FUND. pay into your own damn fund. PS: I’m a decker millionaire, made my money buying bank foreclosures renovating them and selling/renting them..

[@WhiteBoardFinance]

decker or deca LOL

[@yankeedoodle6293]

Marko - WhiteBoard Finance Marko, you’re a smart guy. I hope you have an actual job or business and do KZbin ON THE SIDE. Your advice is good and I’m sure helpful to the common folk..

[@WhiteBoardFinance]

Thank you. KZbin is my full time income. I have friends making $50,000/month from KZbin

[@yankeedoodle6293]

Marko - WhiteBoard Finance Wow. If that’s the case, go for it..

[@WhiteBoardFinance]

I'm nowhere near that, but definitely earning a livable wage. For the amount of people I've helped I'm underpaid but I'm doing something I like :)

[@tim_t]

Me while watching the video: 🧐 Me after he recommends Alpo: 🤣

[@ZacharyLaid]

I would skip step 5 college fund entirely and throw that money into more investing, and step 7 is probably the most satisfying step of all, which I think everyone should partake in if they are able to.

[@WhiteBoardFinance]

100% and it's the most rewarding

[@DavidJao]

The only problem is that tax-advantaged college savings plans such as 529 plans have annual contribution limits. So if you throw all your money into generic investing, you lose the tax advantages of the 529 plan since you'll be paying tax on your investment income as you go, and you can't catch up on the tax savings later.

[@FloydofOz]

529 funds are invested so they grow, and there are no taxes.

[@DavidJao]

@@FloydofOz right, but if you don't invest every year, you can't easily catch up later, because of contribution limits.

[@wheel-man5319]

Unless you know you can cash flow your kids college, I think that it is a good idea to save money in order to assist them to overcome the barrier that govt funding is putting up for actually paying for college without looking like you think that you're Edward Kennedy on a binge.

[@bevoburn]

I think step 1 should be increased to 2K or 3K. Bad luck seems to begat more bad luck into a bad luck snowball of doom.

[@outdoorsnevada4138]

Its about changing ones mindset and habits. You chip away at your debts and you get an emergency fund. In doing so you have financial freedom/breathing room. Then you actually have money to invest towards retirement. A lot of people cant utilize credit cards responsibility. A lot of people take on large amounts of debt... Then you have an event like covid that happened and you have no income. Well now you lost most of what you had.

[@blackjaminboy]

I like your comment on baby step 6, just bought our first home and just after a few payments it stinks to have that payment around. Peace of mind is huge!

[@joeyshallow261]

“This way you don’t have to eat dog food all your life... if you do I prefer alpo”😂

[@alfienykabutler5919]

The peace of mind that comes from owning your abode is unmatched.

[@3056398]

I’m in my mid twenties and I use baby step 5 to find/save for my master’s degree, as I am a new teacher and getting my masters is very important for my salary.

[@snehharvi7698]

Same

[@monicabocanegra3237]

You speak so beautifully of your father. I have no doubts you have MADE HIM PROUD!!! 😊

[@jameswyatt1304]

I'd add: get a reliable used car first. Then make a car payment to yourself (separate account) so you have the budget set and can pay for repairs until you've saved enough to buy another car *outright*. You save a lot on collision/comprehensive insurance and hideous car loan interest. Also, never have a car loan longer than your car's warranty. Outside of that, another solid video I'm glad to share w/others. Thank you.

[@CodyDunlap]

James Wyatt I like that a lot James

[@4dscdriver]

Dave wants everyone to drive $1000 beaters; That does not work for everyone though.

[@warcamp70]

Why not lease a new car with zero down at $169.00 a month. Start a home business and write off 100% of that lease each year. That's a $2,028 a year tax deduction and it's a brand new car under warranty. If $169.00 a month disrupts your finances then you're in a pretty bad situation to begin with.

[@BonnieHalfElven]

@@warcamp70there are plenty of videos on Dave Ramsey's site that talk about car "fleeces." It's better not to have car payments of any kind.

[@warcamp70]

@bonnie half-elven Why? Because Dave said so. You are obsequious for sure. I'm a real estate investor that has cash flowing properties. I live in one of my duplexes and my tenants rent next door pays the mortgage in full. My other properties pay my bills and vacations. Under construction now on a 5 unit multifamily with a bill cost of $950,000 and when completed will be worth $1,850,000. I will net over $800,000 when all units (townhouses) are sold. I can drive a Bentley if I want to but I LEASE a 2019 Toyota camry for $375 a month. Dave's baby steps are for people with jobs and limited income not business owners. Step your game up sweetie and a car payment wouldn't mean shit to you. Or you could just go back to listening to dear ol' Dave that'll have you living a paupers life until you're 65 and near death.

[@carlcochrane2030]

Two things. First, i agree that paying off your home early is greater peace of mind. It also lowers your living expenses in regards to the emergency fund, making the same amount of money go longer. Second, i also agree ramsey's investment strategies are not the best. My take is that his system is a lowest common denominator take on finance. Anyone can understand it with little knowledge but you can do better with more financial education. You will never be broke on his system but will also miss out on certain types of opportunities.

[@WhiteBoardFinance]

Well said

[@BigEvan96]

What financial education can you reccomend for people who want to know more?

[@criscringle6627]

Thumbs up for the dog food recommendation for my retirement. Haha

[@RealLifeMoney]

Dave Ramsey is the man, he has helped many people for a long time. It’s proven to work. His investing style I might differ from but personal finance is basically spot on. Can’t really argue with him 🤷🏻‍♂️

[@WhiteBoardFinance]

100%. Those who deny his philosophy are usually looking for excuses to be quite honest...

[@LaughingAtLiberals]

I've watched a few of your videos, and I find them quite captivating. I'd love to get started with some of this, except I can't even scrounge up an extra $5 to put away or invest in anything. Every single penny goes toward basic survival. Any advice would be great. I guarantee you have never heard a story like mine: I became partially disabled a few years ago when I had two video cameras stolen from me and I was body slammed onto the pavement, shattering my arm and requiring multiple surgeries, months of being decked out on oxycodones, summer of physical therapy... This injury prevents me from going back to my previous line of work, as I am now physically incapable of doing it. So I turned to my hobby of video production to make that my next career. Then a year later, I was out filming a protest downtown in my capacity as a video news journalist, when a mob of masking antifa thugs attacked me. Despite my efforts to retreat and de-escalate, they continued to bear down on me. Not wanting to be beaten and robbed again, and with no police anywhere to be seen, I was left with no choice but to draw down on them. I had been through several firearms training courses and was a legal CHL holder. Fortunately they all stopped and/or backed away when I drew, I didn't have to fire a shot, and I reholstered after the threats had been neutralized. The police eventually showed up, and arrested me. I was eventually found guilty of 21 counts, including 10 felonies of "unlawful use of a weapon" while the violent thugs who started it all are considered to be the innocent victims. This falls under "aggravated assault" even though I didn't put my hands on anyone, and I was the one harmed and whom further harm was intended against. I am now banned by the judge from doing video news journalism. The case is plodding through the appeals process, because my actions were solely in self defense against what I perceived as unlawful force being used against me. Being a convicted felon means that pretty much no one will rent to me (got kicked out of my previous place). The only place I can find that will rent to me is $1300 a month for a crappy one bedroom apartment. This also means things like car insurance double because I'm considered high risk now, so that goes from about $50/month to about $100/month, just for liability. I am also forced to pay $45/month to the probation office. I keep every other cost minimal. I have a $30/month phone plan, $40/month internet plan, I don't drive anywhere unless I have to, I eat from food banks and homeless shelters. No alcohol, no cigarettes, no TV, no furniture (except a bed and a computer desk that I got for free off craigslist), no video games. I will splurge on a burger about every 2 or 3 weeks in the rare instance that I find myself with a few days of work. Being "low income" I'm able to at least not have to pay health insurance and I qualify for aid for my electricity bill. I have little in the way of debt, because I can't afford anything in the first place. Unfortunately, this means I have a 0 credit rating because I've never wanted to get a credit card or make car payments. Everyone does credit checks for everything these days. So not wanting to be in debt has harmed me because I have no credit history. I don't qualify for any home loan because I have 0 credit and little income. Being banned by the courts from working, being incapable of doing physical labor, unable to pass basic background checks, and with living expenses doubled, you can imagine I've had to get quite creative on how to generate any income at all just to survive. I've been selling off guitar and music gear that I don't use anymore, been doing what video work I can find that the judge allows me to do (weddings, corporate events, segments for TV), and picking up random short term stuff off craigslist. I haven't made poverty level income in 4 years. I am looking for work every day. I feel like I live for the primary purpose of giving the landlord my money. I can't even get started with step 1 because I always have to plan a couple months out. Minimal of $1500 just to survive each month. I am always calculating my money, and there will come a time sooner rather than later when I will not be able to pay rent. Because I'm always projecting my money and calculating it vs expenses, I will at least be able to give a 30 day notice here at the day where I know I'll only be able to cover a prorated X days out of the following month, so I will not have to be evicted or just ditch with still owning money, so that will hopefully save my rental history. I've been trying to go to college at the local community college, where I qualify for basic grants and whatnot. I only take the grant money, no loans. The problem is whenever I get work I have to take it, so this has harmed my grades and I have had to drop 3 classes over the last year in the middle of the term because I just get too far behind from missing too many days. So what in the heck am I supposed to do? Should I just be homeless for a year or so while I save up money and try to build credit, while only having to pay for car expenses, phone, and a storage unit? I'm always worrying about being able to pay rent, or scared that my car will break down at some point. When the car breaks down, that's it, it's over. Any advice would be great.

[@WhiteBoardFinance]

Thanks for the kind words. That's a hell of a story. I'm not sure I'm the right person to give feedback to be honest. Best of luck to you!

[@KH-vv5dq]

That's rough man... good luck to you! I'm not sure if a Go Fund Me page would be allowed, since I think you would need to be careful not to inadvertently slander your attackers or put the court system on blast, but I know there are organizations out there that will help with your legal defenses at least.

[@sensiblewheels]

It's disheartening to see someone stuck in an endless loop of issues. Going from having a decent life to loosing it is hard. I'm not sure where you live and what's the aid you're receiving but I sure hope college will help you get out of this, once your done. But until then, please hang in there! It's amazing that you do not owe any money and unfortunate I'm no in a position to help you myself. Please seek help from family/friends to pull you out of this and also hope you come by a steady job real quick.

[@LaughingAtLiberals]

@@KH-vv5dq I've posted several videos, including uncut videos of the attack, a long form commentary video narrating the incident, several videos involving the antics of the people involved, police officers lying on the witness stand, DA's lying to judges.... All in their own words, with the proof to counter what they are saying.

[@cattsmahal1005]

While I’m on baby step 2, I am also investing in my emergency fund. 🥴

[@ForgeofSouls]

Bottom line, don't take a mortgage into retirement.

[@BillFinger27]

I am happy I did Steps 1 to 3 years ago. Because of the pandemic, both of my emergency funds are now gone. Just imagine if I don't have any of those in the first place. Now that I have a job again. I am saving up for Step 1 again. And I learned it all from this channel. Thank you!

[@shellyortiz1977]

Truly wish i had this information when i was 18 yrs but is better late then never highschool should teach the importance of saving money to kids ...it would help them tremendously in the future

[@WhiteBoardFinance]

Agreed thanks for watching Shelly

[@BigEvan96]

There wouldn't be any schools then.

[@BecksArmory]

So I've had my steps out of order. I've been prioritizing in the following order 1,2,3,6,9,4,5 with step four only at 8% I hadn't heard about steps 4-7. I'm in the process of increasing my step 4. This video is perfectly timed for me. You've really motivated me to tackle step four more aggressively over your last couple videos. Thanks.

[@WhiteBoardFinance]

Thank you for watching sir!

[@SC-gp7kt]

How about finding MY OWN college fund? (no kids)

[@cypresscitycomics1185]

I told my mom about Dave Ramsey about 17 years ago, because a customer at a store told me about him. We both did financial peace and read the book. My mom is debt free and retired now. I have no credit card debt and working with my wife on hers. His steps definatley work. But you do need to adjust some for your own lifestyles. Q.

[@WhiteBoardFinance]

That's awesome!

[@TheMajesticFamily]

congrats!!

[@sarajohnson504]

Just recently started watching Marko's video and I must say he's hilarious. Love the content and his smart alac personality.

[@rachelspohn]

Love Dave Ramsey but all of our emergencies were always over $1000, which put us back into debt. Now we do our own modified approach… Our baby step one is $4000 minimum. We drive older vehicles, repairs are expensive, healthcare is expensive, kids are expensive, literally… $1000 would do nothing if we were kicked out of our rental home and had to find a new place to live. I realize it’s not supposed to be forever, but it wasn’t enough for us to make any headway because we kept having to use our credit cards when we tried to keep such a small emergency fund. So we paused our debt snowball to build our baby step one to $4000 and then we will resume.

[@TheMajesticFamily]

good job on making it fit your situation.

[@LanaClarkLC]

I was done with number 2 then i bought a new car. Now im back to square one. Lol

[@nebbleful]

Why do Americans pay for their children’s college?

[@Solidsnake999]

The problem is that you don’t have a savings problem you have income problem .

[@WhiteBoardFinance]

agreed. I have other videos talking about how to earn extra income

[@hails_m88]

I agree. I don't make much money as a teacher. But my husband makes twice as much as I do. We spend our money stupid & we've gotten ourselves in debt. Which we aren't as bad as some people thank God. But I am ready to be out of it. We are 25 years old. I also have been babysitting almost every single weekend for families at my school. Which has helped me personally a lot. Because I have a problem saving back. So I totally get what you're saying.

[@andrewpycke3255]

Not always. Lots of people have low incomes yet live in a way that lets them save a ton. The biggest issue is behavior. Personal finance is 20% head knowledge and 80% behavior.

[@RC-fh2lk]

Brilliant....thanks for the financial reboot!! Your videos are starting to change my way of thinking.

[@WhiteBoardFinance]

Thanks Ron!

[@COB694]

Marko, I live in northeast Ohio too!! Just got into your videos and they’re quite helpful.

[@Mike-cb7gt]

You are spot on. The Cleveland metroparks is amazing. Everything they touch turns to gold. A great place to donate money.

[@satchiebabe6052]

Great! I can skip #1 and start my snow ball list 🖐🏾

[@gwillis01]

Reminder: College is not the only thing that a person can do after high school even if it is the most prestigious. The world still needs plumbers, auto mechanics, and electricians. Please do not force someone who enjoys working with their hands and fixing things to go get a Bachelor of Arts at a four year college just so you the parent can brag that your child is studying liberal arts at a prestigious school. I treasure and appreciate the fact that there are those that like fixing things. I would rather pay an electrician than be an electrician.

[@Noremac2310]

529 can go to trade schools too

[@robertmay7674]

I think investing in a college fund for your children can even be something like investing in their opportunities for scholarships. I've invested time and money in multiple opportunities for my children, and I'm starting to see ROI now that the oldest is graduating this year. It's not as sure of a bet as a college fund, but it can certainly work if you and your children are dedicated to the same plan.

[@dunnock343]

Scholarships are definitely the smartest way to go, but let’s assume the kid has the worst luck and never got any. College is fairly cheap if you stay away from private college and do you get Gen ed’s at community college (or high school if the kid is excelling) and then doing their Junior and Senior year at a University. Of course this is just for a bachelor’s. Unless you’re becoming a lawyer or a Doctor in medicine, you should work in your field with a Bacheors before deciding to get a Master or a doctorates. By then you should be money smart and can obtain those degrees with little to no debt.

[@joemo51]

Great channel, love the visual aid (whiteboard). It truly helps to have it all laid out.

[@WhiteBoardFinance]

Thanks Joey

[@erickpacheco9951]

I see how useless most of my friends college degrees are right now I can’t imagine how useless they will be when I have kids and they get to that age

[@WhiteBoardFinance]

Picking a wrong college major is one of the worst financial mistakes you can make

[@tkkirkland3971]

@@Black-Circle degree keeps you out the warehouse

[@tkkirkland3971]

@@Black-Circle True but if you're not an entrepreneur youll be in a warehouse and if youre in California youll be in poverty.

[@tkkirkland3971]

@@Black-Circle No I was saying UNLESS YOU ARE an entrepreneur, not having a degree in big cities can be rough.

[@tkkirkland3971]

@@Black-Circle Do you have bad comprehension? Im saying you dont need a degree to be an entrepreneur but if you arent an entrepreneur a degree is a good tool to have.

[@t-rexngatokorua8733]

I love step 7 and hope I can one day get to that point. Unfortunately, a couple years ago, young, single, living with my parents and having no bills, I ticked up a lot of things on my credit card and even financed a nice big truck on a 5 year plan. Fast forward to 2019 and I'm paying for it..while I'm years ahead on my credit card payments, I now have a partner, a mortgage and a baby on the way so these bills especially my truck finance is really killing my budget. I am currently working 1-2 days over time, having no weekends to try pay my credit card off before my baby comes and build up some sort of savings with what little I can... moral of the story... Just cause you have it good right now, doesn't mean you should buy things you might not be able to afford in a year or 2. So here I am learning from you to hopefully get out of my situation 🤣😔 thank you for your videos man! Liked and Subscribed 😊

[@Wickedtingzz]

I would recommend getting rid of your truck bro . What are your payments , like 350-475 ish bi-weekly ? I know it’s hard because I had a car that I could afford to pay for but just the headlight alone was 2,000 .. it’s not worth it in the end . And your gas alone is probably 150 ish to fill up full . It’s more harm then good brother . I live in Canada where it gets negative 30 degrees Celsius and snow and ice everywhere . And we have people driving smart cars and tiny little cars and myself I drive a rear wheel drive 2 Door that is horrible in the winter , but with good tires it works if you drive slow . Point being especially with a kid on the way your going to have to make the sacrifice . Trust me you don’t need a huge lifted up big ass truck . Anyways just some friendly Advice . Get rid of the truck and get an a small suv or a decent car / van for the kid . As Dave Ramsey says , stop caring about what people think , make the sacrifice and it will pay off . Anyways peace man god bless

[@t-rexngatokorua8733]

@@Wickedtingzz thanks for the advice man! well this comment was 2 years ago. And what I ended up doing was actually trading in my truck for a holden commodore. Nice fast car with a tow bar for my towing needs yet still a nice, safe family car for my now, 2yo daughter. The best thing is I'm no longer paying $220nzd a week for finance or $40 a week for road user charges and another $40 for diesel. Now it's just $60 a week for petrol . I definitely don't regret my finance on the truck though! I had a lot of fun with it and it came in handy when we bought a new house and had to move things there. But the best part was the lesson on how financial circumstances can change in 'just 5yrs'. 😅

[@Wickedtingzz]

@@t-rexngatokorua8733 nice bro good to hear , glad everything is working out . Cheers god bless

[@Beenz75]

I'm now on baby step 6 and have just £25K to go. All your videos have been really helpful thanks!

[@WhiteBoardFinance]

that's awesome, thank you!

[@georgiapeach2020]

I'm not paying for my kids college funds. They better get scholarships or find a job that will pay for their tuition. I know lots of people who've fine it that way.

[@thevisitor5249]

Be a good parent help them out. Besides isn't that what parents do help their children

[@WhiteBoardFinance]

I'm sorry you feel this way

[@jessicarobison2536]

Im trying to buy a house. Why would I put money into someone's college fund before having a house? Yeah Im not gonna do that

[@doright8355]

Step 2. Pay of your debts or mortgage. That mean, you buy the house first before you start step #5.

[@balreadysaid]

Dave Ramsey... your more than trying to help people. Like him.

lol Dave Ramsey is behind the curve and his net worth proves this when compared to kiyosaki, Cardone, Robbins, John ... because these people understand how to utilize credit as a tool for greater gains instead of a burden to reduce upon

[@balreadysaid]

@ He is a basic consultant for the majority of the people. Net worth has nothing to do with what you want in life. Many people who are happy stay small and happy. If you desire to have more, Biggie said it best...

[@007phokus]

Man, you are like a great personal friend...

[@WhiteBoardFinance]

Thank you

[@blink56k]

Great breakdown. I'll be in step 2 for a while since I have health practitioner debt lol. Recently upped my income by starting my own practice and am somewhat doing step 4 in order to reduce my tax liability (I read contributions to a SEP IRA for the self-employed knocks off your tax bill a good chunk)

[@WhiteBoardFinance]

Thanks for watching :)