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

@JohnnyBfromPeoria

Ай бұрын

And property tax and insurance.

@mitchelldavis5961

Ай бұрын

Cool story bro

@dialac1

Ай бұрын

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

@Soljarag5

Ай бұрын

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

@kbanghart

Ай бұрын

Just got utilities? Are you playing monopoly?

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

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

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

@morbuenogroup3092

Ай бұрын

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

@LovesGrilling

Ай бұрын

Where is this from?

@robinhollenbeck367

Ай бұрын

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

@robinhollenbeck367

Ай бұрын

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

@CreditCrusader

29 күн бұрын

What's bitcoin the money of?

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

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

@Upholstered_

Ай бұрын

Well said.

@Shortballa11

Ай бұрын

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

@paulkaelin6077

Ай бұрын

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

@Fred2-123

Ай бұрын

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

@Shortballa11

Ай бұрын

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

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

@privacyplease1556

28 күн бұрын

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

@SparkeyCox

28 күн бұрын

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

@janeoleary8454

13 күн бұрын

Most people can't do that. Duh

@SparkeyCox

13 күн бұрын

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

@bdeheton6445

12 күн бұрын

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

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

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

@insideoutsideupsidedown2218

Ай бұрын

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

@veramae4098

Ай бұрын

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

@motoryzen

Ай бұрын

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

@BLdontM

Ай бұрын

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

@lolwtnick4362

Ай бұрын

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

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

@JohnLopez-gt6og

26 күн бұрын

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

@SpartonGearz

21 күн бұрын

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

@w_6880

20 күн бұрын

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

@gorkyd7912

7 күн бұрын

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

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

@insideoutsideupsidedown2218

Ай бұрын

Biblical principle

@dansteuer1411

Ай бұрын

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

@daniellineberry8879

Ай бұрын

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

@kenmurray25

Ай бұрын

Slave is a pretty strong word for advice.

@B2blackout

Ай бұрын

Way to be pedantic

Please make a Canadian version of the Every Dollar App

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

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

@szey9488

Ай бұрын

It is a sin in Christanity and Islam

@theadventurousprogrammer6449

Ай бұрын

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

@JohnnyBfromPeoria

Ай бұрын

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

@megalodon1726

Ай бұрын

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

@kaythegardener

Ай бұрын

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

The episode we’ve all been waiting for!

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

@BREEZYM6015

Ай бұрын

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

@dkibler1974

Ай бұрын

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

@MamacitaBonita

Ай бұрын

I’ve started doing the same

@dannyk847

Ай бұрын

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

@davidbrayshaw3529

Ай бұрын

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

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

@lukeforbes2008

Ай бұрын

A 1000 dollar car are you high?

@herbiehusker1889

Ай бұрын

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

@jasonleatherwood2172

Ай бұрын

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

@Angaloth19

Ай бұрын

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

@Shortballa11

Ай бұрын

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

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

@dansteuer1411

Ай бұрын

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

@ToastbackWhale

Ай бұрын

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

@underground9260

Ай бұрын

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

@dansteuer1411

Ай бұрын

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

@RadDadicals

Ай бұрын

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

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

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

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

@GAFB1122

Ай бұрын

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

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

@timkopp2204

28 күн бұрын

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

@santiagolerin

24 күн бұрын

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

@timkopp2204

24 күн бұрын

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

@gorkyd7912

7 күн бұрын

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

@rachelabate2401

7 күн бұрын

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

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

@elizabethallen4353

Ай бұрын

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

@mensb1936

Ай бұрын

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

@spconrad9612

Ай бұрын

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

The caller is a character 🤣

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

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

@gorkyd7912

7 күн бұрын

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

Thank you for providing Every Dollar. Wonderful APP!

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

@MichaelCarrPilot

Ай бұрын

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

@rdmineer1

Ай бұрын

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

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

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

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

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

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

@jimmymcgill6778

Ай бұрын

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

@davidbrayshaw3529

Ай бұрын

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

@user-nx6tr9je6v

Ай бұрын

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

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

@davidbrayshaw3529

Ай бұрын

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

@matthewphillips5483

Ай бұрын

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

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

@jasonleatherwood2172

Ай бұрын

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

@Wall2000x

Ай бұрын

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

@ToastbackWhale

Ай бұрын

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

@christinehopping5040

Ай бұрын

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

@jasonleatherwood2172

Ай бұрын

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

Love this!

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

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

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

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

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

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

As Dave says, cash is king, buying a good home justifies debt, the home goes up in value, and can stabilize your expenses, while still caring for yourself and family.

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

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

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

@mitchelldavis5961

Ай бұрын

Yes. We are not deaf.

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

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

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

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

@tastysnack1

27 күн бұрын

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

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

For some reason, people feel a strong need to defend borrowing. I never borrowed on a car and I never will. But I drive an 18-year-old truck. Well, I do have a 12-year-old Prius as well

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

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

Secretly Ron DeSantis talking? 😂 sounds just like him

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

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

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

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

@JeremyWinkels

27 күн бұрын

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

@xlerb2286

26 күн бұрын

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

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

@matthewphillips5483

Ай бұрын

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

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

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

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

A well thought out home purchase using a mortgage is one of the best ways the average person has to build wealth. I have been pushing my children to buy a home for the last 25 years. Now, at 40 and 41 years of age, they are both still renting and they are both being pushed out of their rental homes because the owners want to sell. Because of the drastic price increases of homes in the area and the price increases in rentals they are priced out of the market. I suppose they can find a bridge to sleep under.

@matthewphillips5483

Ай бұрын

So you are in favor of using debt to build wealth? Cool.

@flower2289

Ай бұрын

@@matthewphillips5483 In limited cases, yes. But debt is a dangerous double edged sword and extreme caution must be exercised when considering using it.

@AnAZPatriot

29 күн бұрын

You're paying rent and flushing that, what would otherwise be your own equity in home ownership, down a toilet. Especially long-term. Short-term I can see the argument for renting. Say 5 years or so. But 15, 20 years? You really should be investing in your own home equity.

@matthewphillips5483

29 күн бұрын

@@AnAZPatriot This is a stupid myth that has been debunked over and over again. Shelter is always going to cost you money whether you buy or rent. In pretty much every major metro now, the cost to buy exceeds the cost to rent by a wide margin. Placing what would be your down payment, closing costs, and difference between mortgage payment and rent into an index fund based on the SP500 will yield you as much or more than any equity you will likely get into your home. Renters don't have to put a new roof on their home, repair the HVAC, replace the water heater, etc. All of that money can go into the market. In California metro areas, the average family only stayed in their home less than 5 years (this trend dates back as least as far as 2019). This means home buyers are literally "throwing money down the drain" with closing costs, etc. Those that stay, many end up with a HELOC or do a cash out refi that cannibalizes equity, raises payments, and sometimes resets the clock on the mortgage. Your counter will likely be "most renters lack the self discipline to invest the difference in the market" which is true. What is also true is that most home buyers don't pay off their home nor stay out of debt either. Most "homeowners" will never see the end of a mortgage in their lifetime due to bad financial decisions. I'm not anti owning a home. I'm anti-mortgage. Rent + invest in the markets until your investments can buy you a home in cash. It doesn't take any longer than (and is actually quicker than) waiting to pay off the mortgage with the bank. Instant gratification culture is destroying everyone.

@AnAZPatriot

29 күн бұрын

@@matthewphillips5483 Provably false. 40% of homeowners pay off their mortgages sometime in their lifetime (citation: Bloomberg, Nasdaq, Axios). What percentage of renters invest in the S&P? I rest my case.

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

@matthewphillips5483

Ай бұрын

Who cares?

@Raegoul

Ай бұрын

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

@matthewphillips5483

Ай бұрын

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

Baby steps were what I was looking for. Our church taught the debt snow ball, but then what? Clear and concise! I get why he teaches a mortgage, wisely set up, is not going to burden you so much. We were a few months shy of buying our house for cash, but didn't want to keep renting while rent was rising. And house prices too... Honestly, we are just in a foul economy.... Not God's way, so we are playing it as little as possible! Now debt free!

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

@LegDayLas

25 күн бұрын

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

Not sure if i fall under this situation or not. My house is paid for i have only one debt i did buy a Tesla last year i put 20K down i was spending $750 a month on gas now i spend $500 on car payment probably the dumbest thing i have done. but i also put %20 into my 401k

YOU PAY YOURSELF FIRST!!!! You absolutely NEVER budget and then leave excess in an account.

Interesting because Larry Burkett (now deceased Christian economical guru) said Christians should not take a mortgage but ask for loans from church members * interest free * That always seemed very idealistic but that’s what he said.

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

@GMan56M

27 күн бұрын

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

Missed my pal Dave Ramsey

The alternatives are worse: Renting or homelessness. A mortgage is the least evil, with paying cash outright being the best option.

Im financing a car and treating it as a utility, not an 'asset'. Its less stressful than the $6,000 car I bought that broke down 5 days after I bought it up...lesson learned.

@nicholasselke5214

Ай бұрын

Here’s what the lesson should be: get a car inspected before deciding to buy it

@civichx24

Ай бұрын

@nicholasselke5214 The part that failed would not have been checked during an inspection. It was an internal seal that cracked from old age ironically...

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

I have also seen him tell off people from getting a loan for a tractor, which the person needed for his job to make any money at all. So it's not just about if you really NEED it (his reason cited was you just got out of debt, why get back into it? The reason? because he needs the tractor to not go back into even more debt). At least he finally recognized that it is a hypocritical stance to be pro mortgage.

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

I mean if you save up the $150K to $250K for a decent house in most areas it might take you 10 to 15 years maybe 5 if you're lucky but then that same house is going yo be $400K and you'll need to save up more for longer and the goal posts will keep getting moved. All while paying rent that builds no equity and keeps going up every year. You get the down payment and get a home for a good price with a payment thats locked at roughly the same price for 15 years like Dave sugests or even 30 its far easier to knock that set number out vs having home prices be double to triple what you've saved once you finally have enough to buy the home with cash.

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

@PabloSanLuca

Ай бұрын

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

@handleyobusiness

Ай бұрын

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

@megalodon1726

Ай бұрын

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

@quietearthMT

Ай бұрын

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

@matthewphillips5483

Ай бұрын

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

I was talking with a good friend yesterday and he told me he is paying half his income in rent. He makes 49k a year.

You MUST have a home and I think it would be the height of irresponsibility for you to try to save money to buy a home and at the same time pay a huge amount of money every month to pay rent on a property where you are currently living and for which you will receive NOTHING in return at the end of however many years you have been living there while saving a home to buy. Also, a home appreciates in value but only if you own the house and it would be ridiculous of you to pay for two homes at the same time and that's basically what you would be doing if you were paying rent to LIVE in a home while saving to BUY a home.

Remember, the most common type of slavery during the Old Testament era was due to debt. People who owed money and couldn't pay it literally became slaves to their lender to pay off their debt. The year of Jubilee helped such people in those situations. I agree wholeheartedly with the application of Scripture today and with Dave's personal choices for his finance and understand why the only debt he permits for others is a mortgage.

Step 1 to save $1k is a training tool. Step 3 to save 3 months is the buffer tool.

@LyonsArcade

27 күн бұрын

Thank you Russ for your well reasoned, helpful comment

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

Debt isn't always a sin issue--it's a wisdom issue.

Debt isnt a sin to be a slave isnt a sin either, but if any debt can be tolerated for some its only 1st mortgage. Why because one its a really large amount, two its because its for a short time, three its for a item that appreciates in value. The slave isnt a sin your sacrifice for the greater is tolerated. Just never get a mortgage or refinance after you pay off your home.

Mortgages are simply the only way to own a home currently unless you start out wealthy. They gain value quickly and are objectively a good investment even with a loan

I find it difficult to believe that a tradesman who eventually became a millionaire didn't at some point have a truck payment.

Debt is a tool/method that can be leveraged to support building wealth and transitioning to a wealthy lifestyle. Managing loans, if done in a certain way, time, and environment, it can lead to a better financial standing. I'll believe there's a religious slant to building wealth when someone can demonstrate a specific religion can show their followers are all (or mostly) wealthy and other religions and non-believers aren't.

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

@insideoutsideupsidedown2218

Ай бұрын

Gold is at $2350. Hard pass.

@motoryzen

Ай бұрын

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

@RBC0405

Ай бұрын

​@motoryzen but it keeps going up?

@motoryzen

Ай бұрын

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

@RusskiCommieBot

Ай бұрын

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

Dude's doing "bank balance budgeting" which is cash flow hell lol

This should be obvious man. You're trying to compare a depreciating asset to a home you get to own that grows in value. You also dont have to worry about a mortgage increase like rent overtime. You can eventually sell the home or rent it out. Its an investment if done right.

If the debt makes you money it's good ❤

The thing is a house is actually an asset that gains value. The reason it’s ok to take out debt on this is because it gains value, this means it is a leveraged investment and not a debt servicing expenditure. If we look at the stock market we can use what are called margin loans to leverage our position to potentially improve our returns. In contrast to what Dave Ramsey says debt isn’t a bad thing but you should analyze your personal position from the perspective of the lender. Saying you’re a slave to the lender is not really true and the scripture within context does not actually mean this. Looking at in context in the original language, in this case I believe it’s Latin, it becomes clear. In either case the lender is performing a risk calculation on whether they will be able to get back their money as well as whether they will get the expected return on investment, because the lender is effectively investing in you as a person on whether you will be able to get it back. So the three things the lender is adjusting to ensure they have a good or low risk investment, are the principle amount (value to loan ratio), the interest rate, and the term length. The shorter the term length the less confidence they have that you will actually repay the balance, the higher the v to L ratio they require the less confident they have that you will be able to repay the loan and that the loaned item will have the value to recoup their costs, the higher the interest rate the less they trust you to make the payments. The bank has many more resources than you when it comes to analyzing all the risk on a loan and by looking at these items you can gauge whether the bank believes in you or not. For the mortgage case they believe you can cover it easily that’s why you can get 5-20x leverage no problem. Credit cards have 30% interest so they don’t trust you

@insideoutsideupsidedown2218

Ай бұрын

Credit cards are 30% because they know the majority of people who have them will not pay them off every month. That is how the banks make money.

@bballplayer5555

Ай бұрын

Not true. They do make money off of it because of that but they are 30% because they cannot repossess food, there is no collateral to cover the debt if it doesn’t get paid. So they require compensation to mitigate that risk. If you have good credit you can get credit cards that remain in the 7-10% range forever because your risk of not paying your cards is low. They literally state this in the terms of the card “with on time payments” you get certain benefits. Obviously they would prefer you just make the minimum monthly but they don’t discriminate from full payoff or not. We cannot blame corporations for the stupidity of people. The terms are laid out clearly and exactly prior to making any purchases, by ignoring them or not taking them seriously it’s the users stupidity that pays the bank. Dave Ramsay may use Bible and other items to support the argument but the reality is the program he has set up is to protect stupid people from their own stupidity. He says it all the time on calls to people who make horrible decisions “that was stupid” is on many videos

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

@janise01

Ай бұрын

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

@motoryzen

Ай бұрын

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

@matthewmchenry9331

Ай бұрын

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

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

@nbdysfool3

Ай бұрын

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

@jeffenriquez9929

Ай бұрын

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

@blackworldtraveler3711

Ай бұрын

I smell a scam/spam bot here.

@nbdysfool3

Ай бұрын

@@blackworldtraveler3711 we’ll see if she answers!

@jeffenriquez9929

Ай бұрын

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

Go easy on yourself Papa Dave. I don't think that's "hypocritical" at all. I think it's the "one exception to the rule." We did the 20% down to avoid PMI but we had to take out a mortgage ( Sorry Dave, it was a 20, we could not the payments on a 15 ) but we paid it off like a 5. We didn't quite make the 5 ( from some unexpected pet surgery ) but we paid it off in 6 years yay! The grass is way cushier now. Blesses.

I like Proverbs 13:7. It prevents one from living beyond their means.

Mort gage, means "death grip" etymologically speaking Speaks volumes on how good it is to take..

Not sure if Dave or someone from his team will see this but curious Dave said no one would save for 10 years to buy a house in cash. I actually thought about doing that and then thought that might be too long. Anyway my question is if I do that should I invest the money in a brokerage account or just a high yield savings account? Thank you!

@LegDayLas

25 күн бұрын

You won't get Daves advise in the comments, but if you want mine- put it in a brokerage. It on average yields more and 10 years is a long time. If you had plans to use the money in like a year, ya invest it as safe as you can in a HSA, given 10 years that's enough time for it to average out to at least the profit of the HSA. Some risk is worth it, just don't go investing into single stocks and playing the market. Statitically you wont win.