"You're Burning A Lot Of Brain Calories To Only Make $1,000"

[@cocogemini6623]

I am obsessed with your podcast. I stopped spending on my credit card but I still have it. Baby steps. I am paying down my student loans from 50k now at 3k.

[@rangequeen]

Great work! Happy for you!

[@shes_setapart]

Congratulations! That's awesome. How long did it take to get down to 3k?

[@TheSoulCrisis]

Great work on stepping up and being accountable!!

[@cocogemini6623]

@@shes_setapart well I had already been saving money prior just was just paying the minimum. I was always deferring it and waiting on Biden to come and save me. So I just dipped into my savings and paid it off in a several rounds.

[@whitney9844]

Congratulations! You are almost there! Final lap!

[@rangequeen]

Dude has some brass balls saying the words “healthy debt” to Dave Ramsey…😅

[@barnabusdoyle4930]

And then saying that the healthy debt is a car payment If it was that condo he was renting out, I could see the argument, but a car loan, seriously???

[@Haymaker-t5n]

Isn’t a mortgage healthy debt?

[@rangequeen]

@@Haymaker-t5n Dave doesn’t think so 🤭

[@tonyxtrotter]

@@rangequeen I dont think Dave thinks mortgages are healthy or unhealthy debt. I think he's realistic on that and knows houses cost 150-300k or something and not everyone can just go pay cash for that. From what I've gathered, he believes if you should have any debt at all, it better be on your house.

[@rangequeen]

@@tonyxtrotter yes BUT he still wants it paid off ASAP

[@lukeharris2622]

Asking Dave Ramsey about “Healthy Debt” is like asking the doctor about a “healthy level of obesity”

[@lolololo3726]

😂😂

[@aolvaar8792]

My doctor told me, "I would rather see you obese than anorexic." You are further from death at 200 pounds than 95 pounds.

[@naomirachel9161]

@@aolvaar8792 200 is not the type of obesity most people are talking about. 350+ is definitely just as bad

[@lukeharris2622]

@@aolvaar8792 but he didn’t tell you being obese was healthy

[@nikolaig1]

Obesity has nothing to do with health. The same weight can be healthy for someone else. Nice try on the false equivalent. Debt id reallity. Itz not healthy or unhealthy its just debt. This show has been amazing at convincing people they are the problem vs politicians who have screwed over middle class. We need politicians who will save the middle class. So ill wait for the govt to help me. Itll be faster than working 10 jobs.

[@AM-bm2xw]

I love that Dave advocates for the simplest, most straightforward approach.

[@DeliverUsFromEvie]

i can't believe how patient he is with some callers, like this one lol

[@jwlsngold5026]

Agree, but I do think some of his facial expressions say he was boiling inside..."healthy debt"...really!! 🤔

[@snoer8]

Lol😂 im trying to get through the short version of the video.

[@CarnivoreStork]

Don’t you love it when new callers listen to only one video; and then call in?

[@tugboat2030]

Batting practice for DR

[@defaultname7685]

Don’t be a holier than thou ass and look at the bigger picture. These videos help tons of new people get started on their journey that may not be as “experienced” as you.

[@mellocello7563]

I love how all of these basically boil down to "just pay off your debt"

[@valiantthor_]

Trying to get my family to do that seems impossible 😂, They're wealthy enough but they always finance everything and have had payments their whole life, I'd hate to calculate how much money they've wasted

[@TonyCox1351]

The funny part is that people know that, call in anyway, and still struggle with the concept

[@MrJimmy3459]

Just like "just lose the weight" meanwhile majority of the population is overweight.

[@turtleanton6539]

Sell the car. Beans and Rice

[@begrateful8934]

Most would never have anything then lol

[@randybuyers]

The dudes biggest problem is the $4,900 monthly expenses beyond his auto costs. He is wasting money on way more things than the car. I would tighten up on that first.

[@XennialGuy]

Yeah, making $100k a year, he should be saving bank. If I didn't save at least $20k a year from that, I would be crying.

[@cabayern9416]

Wonder what his fiancée is contributing. Bet he ears all responsibility while she plays.

[@randybuyers]

@@cabayern9416 I’m hoping she will stay at home and raise children. We need more to do this.

[@TheVikramJoshi]

At 100k salary, he must be getting only around 6k in hand each month post tax so not much room for savings

[@randybuyers]

Listening back to this a 2nd time, I am overly astounded. Selling everything to buy a home and get married can work, but it’s statistically worse than a coin toss these days. I would rethink that philosophy and have solid assurances in place. I’m sure there are other layers of information that may guide this conversation quite differently.

[@rbraxton00]

I really love this show, so glad I found Ramsey in 2018. Living debt free, and loving it.

[@Androth12]

You altering your family tree! Keep up the good work! My family and I are debt free too!

[@PreeminentbrandsNet]

Great work

[@kara2162]

Also debt+mortage free since 2021. Life is good. Would never go back!

[@pyditcpjbmohufy]

Also debt and mortgage free since 2019 and my husband and I bought an investment property this year, have a great tenant ❤

[@michaeldoran4367]

DADFART! MOMFART! DOGFART! HUGE KOK! OUTLINE OF KOK SEEN THROUGH BASEBALL PANTS!

[@elchapojr6219]

I loved how Dave Ramsey summarize his solution in 10 secs 😂 dude make your life better and easier don’t complicate things

[@A_Class]

For seasoned Dave listeners when callers start out like this we sit back and wait for the train wreck

[@chicanoazteca8614]

selling the condo is horrible advice in his situation. He is saving 25% of his income in his current situation. He should sell the car if anything and get a cheaper one to free up some monthly margin.

[@bailey-k6b]

Exactly what I said

[@blakeharrison3972]

I’d sell it and see if you can pay off his fiancé’s condo and then rent it out, but that’s me

[@dudeorduuude5211]

I would do that too. Sell the car, get a cheaper one.

[@roundhousedyourmom]

I would sell the beans & rice

[@TheSoulCrisis]

lol@@roundhousedyourmom

[@tjpatton8562]

Bro really described a $36,000 car loan as healthy debt...

[@plumbingHVAC_sports]

God bless this old man 👴, thanks goodness for this KZbin channel 🙏🏽

[@grayandgray]

People let their car loans hang around because writing a check for $30K+ for that thing in the driveway hurts like hell. They feel the waste if they drained their savings. So, they put blinders on and make car payments for life. It's tragic when someone gets close to actually finishing their car loan and then gets the itch for a new vehicle... I'm waiting for dealers to bring back the "0% loan" to "help us all during these times".. Just inflate the prices and people will fall for that Deal.

[@NiceOCGuy1981]

Anyone paying 30k for a car is ridiculous, unless it's like a bigger car needed as a family car, that's it. A regular car shouldn't even be more then $15k.

[@rrrealitycheck]

@@NiceOCGuy1981 not sure where you’re gonna find a quality used car for only $15k in this economy.

[@Sexy40baby1]

It hurts when my savings is drained of $2k to pay insurance so I know it will hurt like hell to see it drained of $20k 😢

[@RJWaynerium]

​@@NiceOCGuy1981it would be if it's used....which is what most people should be buying anyway

[@crashtestdummy1972]

​@rrrealitycheck 15k for a quality used car is 100% no problem bro. Hop on car gurus! I can find you one with a factory warranty still

[@Steven-xf8mz]

I don't think selling condo makes sense. Seller pays a lot of fees and commission when closing the deal, and property value seems to be going higher based on what we have heard so far. Given that he has nearly $50K in saving and $36 in loan, and he's manage to save about 25% of his wage? it's not like his fiancee is broke, so why does he have to sell the condo? it sounds like they're better off just combine their saving and get a new place, pay as they go, and that condo he currently owns will be paid off by the tenants eventually.

[@evr0.904]

No. He's leveraged hard and is well below the median income for the area.

[@richardle7469]

I lived whole adult life in debt😢 joined army, paid off, then ETS went back in debt, back in forth.. i am sick and tired, of being sick of tired. No more cycle, this time next year, i will be free of my master! On my word!

[@beaniemac]

No one has 6-11% return on any savings instrument

[@raedorin979]

My sister had a cd account with 25 grand at 11 percent about 15 years ago.... it was a LOT of money. I couldn't believe it when she decided to shut it down so she could spend money at WALMART!

[@andreathompson-bg4hl]

My dad died 2 years ago and he had a life insurance that he left me. If the numbers are what I think they are I am going to go from baby step 2 to 6. And I have already paid off all debt except one student loan. I am watching these videos to keep me focused on my long term goals. I have been working on this for 6 years and kept all new debt from occurring. Ah God it will be such a relief. This is the one thing I asked Santa for this year. Hey Christmas in September. I'll take it. Before my daddy died he told me we don't fool around with debt. This will fullfill the circle.

[@luisfernando5998]

U kill him?

[@billrandall9704]

why has the insurance company not paid the death benefit after 2 years?

[@keithbellair9508]

Some people arent so lucky to fall ass backwards into money like that

[@freeindeed8416]

🙏🏾🙏🏾🙏🏾🙏🏾🙏🏾

[@jking5772]

I’ve had the same argument with so many people regarding “good debt“I wish I could argue as eloquently as Dave

[@merrileemcdonald448]

Dave's had lots of practice

[@josmith4531]

Unless they asked for advice, they don't care about your "view" of the issue.

[@ecan913]

I had no idea about Dave Ramsey. I paid off $175,000 student debt in 3 years. I learned very wise principles reading various finance books and treated myself as a business. The best principles are paying off debt as soon as possible and don’t spend more than what you earn. Invest regularly and heavily when market conditions go down. Keep a reserve for emergencies.

[@i.d.6492]

Congrats to bake a cake and pat your self on the back

[@i.d.6492]

Invest when market is down? You invest in index funds and roth ira and 401K and leave it alone

[@eddiekulp1241]

Cracks me up , people make literally 5 times what I make on S.S. and they say have only 3 months income saved . I have about 18 on fraction of his income

[@chicanoazteca8614]

You're probably a lot older and had more time to build it I would assume?

[@eddiekulp1241]

No , added most since went on S.S. just save 10 % or more

[@defaultname7685]

You literally grew up and worked during the most prosperous time in American history where plenty of your peers were able to buy a home and raise a family on a single salary blue collar job. Instead of that misplaced arrogance for something completely attributed to luck, you should instead be extremely grateful & keep your mouth shut when judging people that didn’t have the same privilege. No shit you’re able to have more saved than him, you’re literally twice as old.

[@kiranrao4375]

Big fan from India. Suggestion : please consider putting numbers on screen for all calls

[@coopernecole7962]

Great idea. Some of us learn numbers that way

[@tubenachos]

"Healthy debt" get ready to be roasted son 🔥 😂😂😂

[@panzaverde20]

Mortgage is not a healthy debt?

[@colegreene2153]

I agree one of the things that helps me the most is looking at the end $$$ amount. Realizing one missed payment hurts a lot more than 12 months of 2X points 😂

[@LifeBindeR222]

I used to disagree with Dave about "healthy debt" but he's right, after running the numbers and all of the money shuffling. It's really not worth the hassle unless it's a multimillion dollar investment or something... It ads so much stress and time wasted to do math just to make a laughable amount of money that you can make for example with doing food delivery with DoorDash in less than one month 😑

[@barnabusdoyle4930]

The example given here is not healthy debt. A rental property would be healthy debt. I own a rental house with a $73k balance on the loan, $900/month mortgage. I rent the house for $1500/month which is a $600 positive cash flow from the property. That is healthy debt. What this guy is doing is not healthy debt.

[@erikrohr4396]

idk, I'd take a few weeks of Doordash money each year for free. It's a $1,000 bonus each year! I have a rental house too - $180k balance, mortgage is $1,400/month, and it rents for $2,400/month. A mortgage is a way to make a good return on more money than you might even have in your bank account.

[@charlesw1973]

i just put some savings into a CDs that's like 5%. I'm so smart. until I realize it's only making a few hundred dollars

[@Force5_Eye_Dev]

He isn’t even 100% against debt. He had a call recently about someone financing a business purchase. It just had to be valued correctly and the note structured fairly. It’s the personal debt. Heck he open says mortgage for a home. Let’s be real. He’s talking about people borrowing money to buy wants.

[@barnabusdoyle4930]

@@Force5_Eye_Dev But Dave is 100% against getting something like a rental property unless you are paying cash for it which is nearly impossible for most people. Debt can be leveraged to add a great return on money you don’t have, you just have to be smart and not go overboard with it while keeping a slush fund for what ifs.

[@veeo987]

The problem with his situation is that when you overleverage yourself into buying a house while keeping all kinds of loans, you're one leaking roof away from financial disaster. Also, his car loan and current mortgage eat up on his debt to income ratio, which reduces how much he can qualify for a mortgage. It's not worth the $1000 of returns to take on all that stress and risk failing to qualify for a mortgage on a house.

[@TonyCox1351]

Imagine if this guy was driving a paid off beater instead of throwing off $750 every month on car payments.

[@andrewsnyder9262]

If you have a renter they can deduct that mortgage payment from your debt to income ratio.

[@wldktz1]

Unless you buy a trash house you should be okay.

[@Frost-tb9qs]

230k condo in Boston? Probably western mass or metro west . A condo in Boston starts at 600k for 500 sq ft

[@TheOriginalLugnuts]

Or a bad neighborhood in a crappy town like Lawrence or Lynn etc. but even that seams cheap.

[@Chet_24]

At some point, these calls seem more like they're 'trolls' from people who read Dave's book and just want to see what he'll say to them.

[@LouisasKnitKnacks]

As a Bostonian, so many of these numbers are suspicious, starting with the price of the condo he supposedly owns. The only way I could see him getting something at that price would be in an affordable housing lottery where units are offered at slightly lower prices for people who meet income requirements. The issue is that they all come with the restriction that they must be used as a primary residence and you absolutely can’t rent them out.

[@MT-yx5cu]

There are plenty of places with condos or homes for that price. Do you know where he lives?

[@CC-ru8pi]

The numbers line up if he bought the condo in around 2009-2013. Given his age and life situation I imagine that's what happened.

[@hnaser36]

In 2020 Daytona Beach FL, you could buy a condo near the water for $30,000-80,000. Now they are 300,000 and up.

[@michaelpalumbo4880]

Suspicious, as on Dave's bullshit 10% to 12% in "good mutual funds" year after year. That's suspicious.

[@mle011]

He probably doesn’t live in Boston- when they screen the calls to the show, they assign your location to the nearest major metro area.

[@constitutionalstacker5701]

Pay off the car for sure, today. Keep the condo simply because since you're renting it, it is not a liablitlity. It is a cash flowing asset.

[@michaelday6987]

having a $750 car payment hurts more in buying a home (Debt to income ratio) then it would help saving the money. ESPECIALLY in Boston.

[@kaitlinparsons6556]

I am bracing myself for this guy the more he talks 😂

[@paulstrauss9146]

Over the course of their marriage, that condo is going to do an awful lot of heavy lifting-- it already has produced 80% of one year's income that he didn't have to get out of bed and go work for. Dave also didn't ask about depreciation and possible recapture- or the taxes due on that $80K in equity if he cashes out. This is real money- it can't just be ignored because he has debt. Not to mention- someone else is currently paying off that mortgage while the depreciation offsets the taxable $100K. This isn't some guy with $50K on MasterCard. The car is a little excessive- but you don't sell assets to pay off debt

[@vibesaddickentertainment9777]

Bingo

[@vibesaddickentertainment9777]

I say don't buy a second home keep living frugal continue stock that money cause obviously it's working and even his car with a 1.9 interest in unreal car probably value more than what he buy it for based on that interest rate...

[@trollslayer8828]

I couldn't follow how we went from talking about the car to needing to sell off the condo which he seems to be successfully renting out...?

[@annai157]

Calling someone "Laughable" isn't the most respectful or gracious way to help a caller.

[@RJWaynerium]

He didn't call the caller laughable, he said the caller's good debt comment is laughable

[@TG-to3dv]

Shocked people call in and have these conversations with DR. He’s pretty straight forward aniut debt.

[@curiouscat3384]

uh oh - his first mistake was using the "I" word with Dave (interest) I was watching for the twitch and sure enough it happened. I was proud of Dave for not interrupting and going straight into a rant, lol

[@TheSoulCrisis]

lol

[@andreathompson-bg4hl]

0 is less than 1.99

[@curiouscat3384]

Not sure what your point is but Dave's theory is that the biggest challenge in getting out of debt is not math - it's psychological/emotional @@andreathompson-bg4hl

[@drn13355]

36K on car he refers to as "healthy debt" . I would love to know what he considers unhealthy debt.

[@commonsense-og1gz]

without a vehicle, there is no showing to work, unless you hitch a ride somewhere. no show, no employment, no $100k. it's healthy, because he can get to his job with it.

[@scroogemcduckismyspiritanimal]

​@@commonsense-og1gzI'd consider 5k to be "healthier" if this is your definition of healthy, but you do you

[@eddie3500]

​​@@commonsense-og1gzwho the hell needs a 36k car though, he can get one for a third of the price with cash and it does the same thing😂

[@aolvaar8792]

My $35K car is at 0%, Smart people tell me to take $35K out of my 11% earning accounts. and pay it off. ~$4000/yr lost for what? There is no interest.

[@aolvaar8792]

@@eddie3500 Re-buying cars? I bought a 1972 Chevy truck NEW, still drive it. Buy what you want and never buy again.

[@Jack-pd4ps]

I wouldn’t sell property and I’d keep that 1.9 interest rate car. More then likely that Condo is being paid with a low interest as well. There’s nothing wrong with buying a home with debt. I bought a home in 2020 with 2 auto loans and with unreliable Railroad income. Had I waited to pay off my 2 loans, I would have had a harder time buying a home and would have been paying more. I eventually paid off those loans. He probably could rent the condo out but selling it is a step back.

[@youtubescroller350]

Nobody is talking about becoming a millionaire keeping low interest loans but you can get a hundred or two extra grand if it's a house

[@dawnt5587]

Great advice Dave.

[@thomasgeorge3427]

There is a good chance he regrets selling a condo a few years down the road…

[@bigcahuna42366]

This guy needs more than a three month emergency fund if he's a landlord

[@gorkememir6122]

With annual inflation at 5%, the money I pay today is more valuable than the money I'll pay in the future. Why would I pay off my car earlier then?

[@Whatiwant101]

“$1,000 is nothing” someone is disconnected at this point, it’s $1,000 for no work at all and you call that nothing. Shows the quality of the advice here.

[@janedoe9895]

How many million dollars do you have in the bank? Just curious.

[@Whatiwant101]

@@janedoe9895 if I had millions then $1,000 may be nothing, my point is that saying that is disconnected from the reality that for people trying to save to get there, $1,000 matters. @janedoe9895 think before you comment.

[@calcustom5026]

@@janedoe9895 I'm sitting at about $14M. Dave's calculation of it being a 5%/2% is a gross simplification as it is 5% compounding on a growing account and 2% compounding on a shrinking account. That isn't a trivial difference. It is mathematically better for him to keep the car loan and invest the difference. That said, it would be even better if he didn't have the debt at all - but people need cars in our car-centric infrastructure. All that said, he would be at the exact same return with no risk if he bought a $9k car in cash and invested the $11k. Is the better car worth the risk, however minimal? That all depends on if he has the psychological fortitude to manage that risk. He's doing well, so it seems like he does. Dave gives among the best advice for people who don't have the psychological fortitude to use debt in a positive way. This guy is doing just fine. Properly leveraging debt is mathematically the fastest way to achieve wealth. I made it to $14M by doing exactly that. However, Dave is 100% correct in his philosophy that avoiding debt like the plague is objectively the most reliable way to achieve wealth specifically because the majority of people can't manage debt properly.

[@JeremyBelter]

very well said ​@@calcustom5026

[@tessaoshea5697]

The guy makes 100,000 a year. 1k is nothing and not worth the effort of he could make more somewhere else.

[@adamseidel9780]

You’re already saving 25% a month, this isn’t a hard question. Just redirect some percentage of the money you’re saving into your down payment account. The money on that account is exposed to a little extra risk due to the condo rental situation, but you’re gonna have a big pile of cash around anyway, so the risk is highly managed. I wouldn’t change a thing. That’s presuming his mortgage rate on the condo is low and there isn’t a good reason to pay that off more rapidly.

[@KVW110]

"Dude, I dare you to call Dave Ramsey and ask him about (fill in the blank)..." I've been listening for years and I forget others haven't. However, I knew after a day or two what his thoughts are on debt. Some people I wonder about...

[@TheForresterOD]

Only thing I'd change is keep the condo.

[@Nissan-hz8zh]

He is definitely not getting 6% to 11% on cash. Closest hes getting is 5%😊

[@orobosa27]

I got my student loans forgiven $180,000.I have no car payment. No credit card. Saving of $70,000. RENT $1760.Thank God.I am grateful.

[@penguin12902]

Don't thank God, thank the taxpayers like myself that now get the privilege of paying off your moronic student loan for you. Seems like you could have easily paid it yourself instead of making the rest of us do it for you.

[@bewarmeho3820]

I think the sell your condo is a horrible idea. This man has a decent priced condo and someone paying his rent for him currently. And the condo can bring money in for him for a very long time but he should get rid of it? Not sure if that's the right advice there.

[@harpldlewis7764]

A loan on a depreciating asset (car) is a healthy debt? No one could make up this stuff! Where do you find these people!

[@stevencole7331]

You could say his condo is good debt if it has a positive cash flow . The car at 2 percent doesn't really matter as usually it's a depreciating consumer item that you get no tax deduction unless for a business .

[@rrrealitycheck]

How would it have a positive cash flow when there’s a bank note attached to it? The only way to have a positive cash flow it by owning it outright first.

[@rrrealitycheck]

The car loan prevents you from investing that money and getting the compound interest. That’s his whole point. When you have debt, your money has to go to the debtor rather than to your retirement.

[@stevencole7331]

@@rrrealitycheck If you can charge more than what you pay a month then that's positive cash flow . How do you think banks make money on a mortgage ? The money that they loan is borrowed by it's depositors . They charge an interest rate that makes a positive cash flow on the loan . Most who have rental properties have mortgages . If you can make 2 or 3 percent of 30 years your in good shape and by the end of the loan somebody paid your mortgage for you and then you own the house free and clear . Hopefully you made some equity also . Then you sell and enjoy your investment . Now many bad things can happen also . It's not a walk in the park as with anything . Yes it would be best to own outright but most can't do that and why Dave allows mortgage debt (as long as you can afford ) as part of his program . If the guy can afford the car payment he is ok . Would I do that . Probably not . I drive 20 year old vehicles

[@blackworldtraveler3711]

That good debt went bad pretty quickly in 2020. When I bought my first home with 30yr mortgage I already had five times what I paid for home in net worth. I could pay it off at any time. Decided to pay it off in nine years. I guess I would consider this good debt.

[@rrrealitycheck]

@@stevencole7331 Sorry, but you're wrong. This is Dave's whole point and the exact reason why he does what he does. He went into debt for "cash flow positive" properties but the banks called his notes and he had to go bankrupt b/c he couldn't cover the debt. Debt is ALWAYS risky b/c the bank owns the property not you. Even if you're "positive cash flow" each month, the bank technically owns that not you. It's not possible to be "cash flow positive" when you have debt. Those two things are diametrically opposed to one another. You can't have debt and be cash flow positive at the same time. Those are in opposition to each other. The only way to truly be cash flow positive is to own the property and have no debt. Add to all that the risk around repairs. If the property needs a major repair and you can't pay cash for it, then you need to take out another loan to cover the repair. Now you have 2 debts.

[@Manihsi]

Selling a Condo is Absolutely wrong .

[@samcurto4793]

Mabye sell the car, get a cheaper car and then get the house and keep the rental

[@DSLightning21]

0:55 - My reaction exactly waiting to hear what the "healthy debt" is... 🙄

[@jay-rus4437]

“I owe 36k on my car” Ramsey literally wanted to say “didnt this chucklehead just say healthy debt” 😂

[@rebeccaartgallary]

my primary concern is how to grow my reserve of $300k which has been sitting duck since forever with zero to no gains, sure I know the risks of short term gains are much greater but if well managed one'd make a killing, am I wrong?

[@roberttaylor662]

These strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off

[@Bobhenry-c7z]

In both end of the spectrum, I was investing on my own for about 3years, did my own study and analysis before actually buying, things became rather difficult after the pandemic which was right about when I reached out to a portfolio-advisor for guidance, It’s been over 2 years and I’ve scaled up a stagnant reserve of $280K to $700k in just about 24months.

[@Andreallln]

@@Bobhenry-c7z that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.

[@Bobhenry-c7z]

My advisor is Monica Amanda McClure You can easily look her up, she has years of financial market experience.

[@Andreallln]

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.

[@sliver108]

Yes... sell the asset that is netting 20% to 25% annually to pay off a liability (car loan) that's only costing you 1.5% 🤦‍♂️. Most people that CAN do math don't hate debt enough to do this.

[@LukeofAllTrades.]

No one mentions that he has to pay tax on the 5% interest he's making in savings. At $100k, his marginal rate is probably around 20%, so really it's like 4%, which is even less of a gain on that 2% interest.

[@tonyahenry4167]

36k for a car… why is people doing this to themselves

[@jml9550]

Wrote a $52k in April on my wife’s car. But we have the cash and that cash is only 20% of our liquid, so it is ok to spend money when you are spending way below your means.

[@jimmymcgill6778]

On his salary, he can afford it.

[@Samuels691]

Because he has the money...

[@jml9550]

He doesn’t have the total $36k to pay it off NOW though, that means he can’t afford it IMO. If i can’t afford a item triple its price, I can’t afford it.

[@lukeiskandar1208]

@@jml9550he does have 36k thought. That’s the point. He’d rather let the money sit cause he was making a higher Apr there he was losing on the car loan.

[@toughbowtietruck]

Dave's reaction @1:30 😂

[@fauxbro1983]

Yeah when folks start chasing yield they tend to forget the principal balance lol

[@AlexT2048]

Dave is soo true I bought a 65,000 car with a loan of $1309 a month and with 65k cash in bank I bought a business which cash flows around $3200 a month, I risk side is truly not analyzed by the people when carrying a debt and risk involved in parlaying the spread, its too much risk, I takes away your peace of mind and now you have to be fully present in what ever you invested that money in to generate that spread. you sometime win with debt but its still a loss in most situation.

[@born2win262]

Even at $100k with the rental and the car he’s not getting a house. DTI is too high and no way lenders are letting him get another mortgage.

[@RJWaynerium]

Especially at today's inflated interest rates, it's like 7+%

[@born2win262]

@@RJWaynerium I was able to get a house with 6% at $445k. But that is with 0 debt and nothing but the house.

[@RJWaynerium]

@@born2win262 that's pretty decent, I'm working on getting one at 290 @7%, I can live with that

[@chadfungus]

Dave logic... sell your car, sell the condo, get a mobile home and put the rest in mutual funds

[@spinningbackkick6021]

Better than paying $200,000 in bills than only having $25K in savings and $1,000 in investments.

[@spinningbackkick6021]

If him and his wife made $100,000 that's 1 million in 5 years. You won't need any debt at that point.

[@bailey-k6b]

Trade in car for a much cheaper one, keep condo rental!

[@RandomHandle120]

That spread gets even smaller when accounting for taxes. He's in the 24% tax bracket, so that 5% really translates into a 3.8% return, shrinking those $1,000 to around $650. When accounting for state income taxes, that spread gets even smaller.

[@umtozzi]

$1000 is nothing to sneeze at.

[@evr0.904]

It's less than $1000.

[@RC94332]

1:34 both of them go “AND? Wtf does that have to do with anything?!”

[@thisguy7201]

Lives with fiancée and is talking about healthy debt......this guy's risk meter is through the roof 😂😂😂

[@paulreynolds2569]

BTW, if he is in a credit union CD, there likely is going to be cost in cashing out of it.

[@MBergyman]

$1000 is a $1000. The dude is not wrong.

[@georgeide2337]

He might not be wrong but you got to account for how much time and brainpower was spent on managing it all. And as Dave said the car is going to drop in value, and by the time you have 'made' 5000$ which is 5 years that car is worth half of what he loaned. In the end you might even end up both earning and losing 5k doing this for 5 years and end up with nothing.

[@MBergyman]

@@georgeide2337 Eh, these types of calculations are not difficult. It is, most of the time, a set-it-and-forget-it set of decisions, as most of these debts/assets are fixed interest calculations. Obviously if you are living on the edge without any margin, there is potentially a lot of anxiety tied up in the debt. If that is the case, then the right move is to pay off the debt ASAP.

[@evr0.904]

He is wrong. It's far less than $1,000. Dave was being generous with the numbers.

[@jeremiahsmith450]

Over an entire year when you make over $100k is really negligible. If your company came up and offered you a 0.8% raise you would laugh at them 😆

[@MBergyman]

@@jeremiahsmith450 If you are doing literally zero additional effort for that $1000, then the extra $1000 is worth the cost. I make over $100k a year, and can tell you that $1000 extra to my wife to pay for extra-curricular activities with my kids is not negligible. Or, from another point of view, it's 50-100 lunches for me per year. It is not nothing, and little choices like this over the years add up.

[@nestormauriciomiranda3815]

If he pays off the car then he has no money saved to buy the home. Its not like borrowed the money off a payed off car. He financed the purchase of the car, and has his savings in the credit Union. The condo is rented and is giving him additional income. 🤦🏻‍♂️

[@beckyscott9380]

I'm at the 1 minute 40 second mark, and I can already tell Dave is about to rip this guy a new one. Poor dude. 🤣 Calling Dave to tell him about his "healthy car payment" of over $700 . Now here comes the ruckus! 😆

[@lampsonnguyen9425]

Why sell the condo?

[@Neddie2k]

Imagine if his fiancée made 1/2 his income, household income 150k, car paid off and new home.

[@evr0.904]

That's literally nothing in Boston. Especially for 2 people.

[@yu-sl7vb]

Every dollar towards retirement is crucial and counts for average person

[@4runner262]

Truthfully, the part at that starts @9:07 is not something Dave talks about enough when the context is with low interest rate loans. The difference between keeping X amount of money in your savings, versus just paying off your car is really, in the big picture, not much to worry about, versus just not having the debt to worry about anymore.

[@calebdoner]

Same math for credit card rewards. When you actually run the math for someone who games the system perfectly, you're barely making peanuts.

[@macdenise3203]

The future belongs to those who believe in the beauty of their dreams. Success is a state of mind. I think I'm blessed because if not I wouldn't have met someone who is as spectacular as Expert Mrs Lucy Mary Liam.

[@harrysouttar704]

I'm glad I was introduced to forex trading and got the best teacher and mentor who helped me understand the financial market I'm grateful to Mrs Liam🙏

[@leonbailey8980]

It's a miracle and I would testify, 110k bucks. every 4 weeks! I now have a big mansion and can now afford anything and also support God's work and the church.

[@mollyphee36]

Quite encourage seeing Mrs Liam Lucy Mary been talked about here, I started off with 2000 Bucks...now with good returns . highly recommended..

[@jordanmorris9663]

I have made more than 90K USD God bless Lucy Mary Liam God bless United Kingdom 🇬🇧

[@watson244]

Thanks for continuing updates I'd rather trade the stock market as it's more profitable. I make an average of $34,500 per week even though I barely trade myself

[@gjmbarusha6999]

Dave Ramsey’s wisdom is a way, but not the way. If this gentleman has a $900 monthly mortgage in this day and age, something tells me his rate is no more than 3.5%. Selling a home with such rate in this economy is unwise especially when you don’t have to. What he needs to do is to raise the rent to market rate and dump the car for a paid off one. God bless 🇺🇸

[@davidmilhouscarter8198]

Walks into doctors office: “It’s just a little bit of cancer. It’s okay. It’s a good tumor.”

[@nitin198in]

I was going to make a similar mistake. Paying off my car next month

[@smokinhalf]

If you had 100k mortgage interest 2.8%.. and had an investment of 100k at 10% ...well math said keep the money invested

[@5trace]

Exactly 1.99 % is a very good intrest rate..I think the car is too expensive though. I would not take Dave's advice at all.

[@Sondan1988]

I disagree with them on this one. Why would you sell the condo if it is an asset actually bringing in income ? I get the car part but disagree with the condo.

[@Vazcov1609]

It does not have to be a Wall Street play. $1000 is more than $0. Paying off a car at 1.99%? Really?

[@XennialGuy]

Those of us that know, know. $1,000 return over a remaining 60-month loan, that's $5000. Didn't require any brain cells, you just kept the money in a high yield savings account or CD. But this is the Dave Ramsey show, so, we have to follow his rules.

[@evr0.904]

@@XennialGuy I love the irony. Your argument falls flat on its face and you can't even recognize it, let alone do some pretty basic math. Do everyone a favor and stop talking.

[@XennialGuy]

@@evr0.904 What are you talking about? The math does add up. I don't see a McLaren in your driveway so how's your math been working for ya?

[@evr0.904]

@@XennialGuy If you think the math adds up then you're bad at math. The reason you can't see my McLaren is because it's parked behind my Ferrari.

[@XennialGuy]

@@evr0.904 Ok, whatever little SpongeBob boy.

[@amandahsu2704]

😂 I love watching their expressions hahahaha

[@tracygaluszynski1868]

$1K is better than a kick in the nuts.

[@defaultname7685]

speak for yourself

[@kenedylima2268]

I really like this videos. Helpful information. Thank you

[@cabayern9416]

As usual, the "independent" woman does not appear to be contributing to the purchase of the primary residence. Guy is getting played.

[@doutheo8399]

The 5% interest income is taxable so it’ s about 3.5% after tax.

[@jimmymcgill6778]

No bank is giving out 10%. 1k is 1k. 1k is toilet paper to millionaires. DO NOT sell the condo. He is making money on it. The mortgage in $900 a month. He's probably bringing double that.

[@Serinty_now]

Dave’s look, biting his tongue when he says he owes 36k on his car 🤣🤣🤣

[@JasperOFlanigan-fb5lv]

They blew over it because his math was weird: but the REAL concern for me was how financially tied this man is with his “girlfriend”. He already lives with her and they are going to buy a house? What happens if they break up? Now he owns a house (one worth 100s of thousands on debt) with an ex girlfriend).

[@dbaker0226]

I enjoy his show but find it hard sometimes to relate as a single parent in Canada. I struggle to find info on single parents calling in.

[@evr0.904]

Don't be a single parent. Don't live in Canada. Problem solved.

[@Chele-nm4qx]

Why does Dave always tell people to get married asap?? 🤔

[@breecedjpancake8565]

Dude would make a 300 bps spread off of his cash on a 5% money market vis a vis his car payment. Makes no mathematical sense for him to pay it all off now.