I finally went full Dave instead of Davish Feb. 2020. Stopping the 401k match was tough, but I was debt free in a year, now my emergency fund is fully funded and I am investing 15% and working on paying off the house.

@MCgrease08

3 жыл бұрын

Good job.

@dipsomaniac124

3 жыл бұрын

You are headed to millionaire next door. The plan has worked for millions of Americans. Keep going

Dave really dressed like an everyday millionaire 😂

@CPMom83

3 жыл бұрын

I like his shirt today! :)

This is one of the only places I deviate. I’m getting that match

@perotal

3 жыл бұрын

Just basic math

@rbellamy804

3 жыл бұрын

Same here.

@front331

3 жыл бұрын

I'm a mathematics major but emotions, behavior and philosophy > math. The roots of math come from philosophy. Rene Descartes and Blaise Pascal were natural philosophers and not mathematicians.

@eatpigsnot

3 жыл бұрын

@@perotal Dave teaches financial peace, and there is so much more to money and financial peace than just basic math

@jimroscovius

3 жыл бұрын

I agree. I would get the match, but that's it. The rest goes to debt.

Dave wanted to tell this guy to continue investing in his 401k. But he can’t. Because it goes against his basic, blanket principle’s that he preaches to the masses. Finance isn’t one size fits all.

@SoggyBagelz

3 жыл бұрын

or abiding by the principle that owing people money is bad, but interpret as you wish

@asymptomatic84

3 жыл бұрын

You should try listening. He literally told him he would be fine either way.

@justicegaming1412

3 жыл бұрын

Yeah, pretty much. He doesn't want to deviate from his basic message on the radio show with everyone listening but I wouldn't be surprised if in a 1-on-1 consultation he'd tell this couple to max out the 401(k) no matter what. The math is just so overwhelmingly in favor of doing so.

@edwinl423

3 жыл бұрын

You can't bend your rules for an exceptional case which is high income. He still admitted that he is gonna be fine either way.

@eatpigsnot

3 жыл бұрын

debt being an anchor and not allowing someone to have financial peace is one size fits all

i would venture to guess he could pay off his debt today

We completed baby step 1-3 all while continuing to contribute to our 401k. No doubt it was the best plan.

@RRK1

3 жыл бұрын

While I agree, I understand his logic. Paying more interest in long run as it takes you longer to get out of debt while still contributing. I just do what they match and will increase it when I’m out of debt.

@hzuiel

3 жыл бұрын

Do you want a trophy or something?

One thing I will never agree with Dave on. It's literally turning down free money if your company matches it.

@stevenporter863

3 жыл бұрын

Agreed, unless the debt is 100% interest it doesn't make sense to stop and lose the match.

@hzuiel

3 жыл бұрын

So here is the thing.....you're a big boy, you can choose to pay off your debt and do 401k up to match at the same time. Nobody is stopping you. You don't have to do what dave says, or you can follow some of his advice but not all of it. Dave's advice is generalized for people who lack self control and make bad choices, so his advice is designed to give those kind of people the best chance of getting out of debt and staying out of it. The psychological approach he is attempting, is similar to some weight loss programs. You don't design a weight loss program for someone who has no problems losing weight and maintaining a healthy body weight, you design it for people who have no self control and that's how they got to 2-3x their healthy body weight. So they try to fix the broken thinking or at least adjust for it. Dave's audience clearly isn't helping multi millionaires manage their money, which for some reason seems to be the kind of advice people expect him to give. A lot of people also seem to think in absolutes as if it's all dave or all something else. You can just watch someone who gives advice, and pick and choose which advice to take, and which advice not to take.

@stevenporter863

3 жыл бұрын

@@hzuiel 😆

@eatpigsnot

3 жыл бұрын

you need to listen again. or KZread search "Dave Ramsey why give up 401K match" and listen to those

@blackworldtraveler3711

3 жыл бұрын

It’s not free money. It will be taxed. I have over $450k from years of company matches that proves this and I’m not even 60 yet.

I truly believe even without stopping funding their 401ks they can still get out of debt in 6months to a year.

@ew2645

3 жыл бұрын

Agreed. They probably have a budget issue.

@TheDjcarter1966

3 жыл бұрын

NO....people don't realize unless you are there what that $400K actually means it means he takes home $275K after taxes minus health care and the 401K and he is down to about $230K take home if he is lucky

@roolyfe

3 жыл бұрын

Fake news I am 💯 k in debt 💸

@deanalbertson7203

3 жыл бұрын

Probably not. Apparently he went into debt to buy an RV and a car. He could easily continue to spend more money than he is earning, and continue to go more and more in debt. Dave's advice to get out of debt is a change in mindset.

@ErinWilke

3 жыл бұрын

​@@TheDjcarter1966 And they can't live on

At 400k, that guy has a lot of money to do both. There are limits to how much he can contribute to his 401k. The rest is to pay off debt.

If I stopped investing for a year, I’d lose out on a ish ton of money.

@chriscrawl3732

3 жыл бұрын

@@saulgoodman2018 Multi millionaire financial guru, that has written books and had a radio show for 30 years, vs. some random pseudonym on youtube....hahaha

@hzuiel

3 жыл бұрын

@@saulgoodman2018 He literally said it's mathematically wrong. You aren't making any great revelations.

@untouchable360x

3 жыл бұрын

@@saulgoodman2018 You are correct. Math is wrong. Dave even admits it. It's a behavior problem. Not a number problem.

@TheValiantLion

3 жыл бұрын

@@untouchable360x spot on. Dave teaches that adjusting behavior impacts the math more than math impacts the math. The Dave-ish crowd can do what they want, but if everyone in trouble with money went Dave-ish, then the majority wouldn't make it.

@EDUAROSOLAS

3 жыл бұрын

@@chriscrawl3732 Instead of investigating to find the truth of a claim, you look for substantiation in the persons wealth, status, and how many books they've written? You need to learn about epistemology. You probably have a lot of bad opinions.

It's a behavior thing not a math thing. I loved that Dave acknowledged that the caller would be alright either way, but could be even better off if there is sacrifice, and shifting comfort.

@edwinl423

3 жыл бұрын

As a man from Asia watching the western part of the world through Internet I have never seen anyone who is sticking to his principles as Dave. Salute to him.

I wished he would have asked them where the rest of their money is going! Must be an insane mortgage.

@davidcox3076

3 жыл бұрын

I'd like to see their budget. It does seem like a lot of cash is leaking out somewhere.

@Sable1837

3 жыл бұрын

@Csab what are you yelling about? Nowhere in the call does it indicate they’re being wiped out in taxes.

@justicegaming1412

3 жыл бұрын

@@davidcox3076 They mentioned a vehicle and an RV, that's probably the bulk of it (on top of the mortgage).

@blackworldtraveler3711

3 жыл бұрын

@Csab No. Even at $160k/year I didn’t worry about taxes.

@marktheshark2569

3 жыл бұрын

@@blackworldtraveler3711 what was your take home on that

If you are earning 400K a year you dont have to alter your behavior that much.

Dave's like it doesn't really matter but I can't say that lol 😂

Dave’s face when he said he wasn’t completely following the steps 😭

@Mr.Rogers91

3 жыл бұрын

🤣🤣🤣🤣🤣🤣

@edwinl423

3 жыл бұрын

He doesn't need to he's making stinking money that he can retire in 10 years even with screwing up things. We can say high income doesn't matter but it really is..

What about SELLING THE RV AND THE CAR?!?!

At least get the match.

@appleforever6664

3 жыл бұрын

Casey the Spammer!

@victoriafhicks

3 жыл бұрын

I agree completely! If you don’t contribute what your company is matching, you’re just turning down free money.

if you make 400k a year why do you even have debt? I make 50k and manage to stay debt free and still contribute to my retirement.

@ChrisMFlorida

3 жыл бұрын

@J W thanks Dad

@Mikey90210

Жыл бұрын

I make 60k. A I've got into some debt. I'm stopping mine for maybe a year. But boy have I learned a vital lesson.... After I'll never go into debt lord will'n

It's 100% mathematically impossible to save for retirement while in debt.

I would never stop investing in your retirement. I'd rather cut out vacations, going to restaurants and buying gifts. Fund your retirement and pay off debt.

@blackworldtraveler3711

3 жыл бұрын

If people would just live within means, avoid debt,less kids,buy home and used car they could afford,etc..they wouldn’t need to cut those things and even retire early.

They make $400k, they can do lots of things. The debt is not ruining their lifestyle or impeding their living situation.

@eatpigsnot

3 жыл бұрын

it's still bad to have debt

@droolalot5795

3 жыл бұрын

@@eatpigsnot it's bad to have debt when you're broke. They make enough to pay off pretty much any debt any time. $35k a month will do that

@eatpigsnot

3 жыл бұрын

@@droolalot5795 it is always bad to have debt. it is just worse when you are broke

@blackworldtraveler3711

3 жыл бұрын

@@droolalot5795 The more many people make the more spending and debt. Never enough money for some.

As others have said, and as I have said in previous calls on this subject, I would never drop below the company match to 401k. Over 20,30 years, that amounts to a lot of money.

@blackworldtraveler3711

3 жыл бұрын

It amounts to a lot of taxable money.

Love the plaid shirt. Hope it’s pearl snaps

This is mind blowing advice. Wow.

Wow....I honestly wouldn't have never thought about it myself

@user-zi9td7uc8p

3 жыл бұрын

Thanks for your comment, will introduce you to something totally different and quite profitable .......... H...M....U.... +(1) (2) (4) (8) (9) (8) (3) (2) (0) (0) (5)....

I will always be thankful to Dave for helping me to win. However, I did not follow this one point. When we were at this crossroads, we were not earning $400k, but we nonetheless had a high enough top marginal tax rate to warrant continued tax-deferred investing. Then consider the company matches and the math is just overwhelmingly in that favor.

It’s not even about his income, it’s his income to debt ratio

Ya there are financially savvy ppl who will take the match, I certainly will. I just watch the show for the entertainment I get his concepts But if someone is a “poor dad” thinker then Dave’s advice is good, it’s about breaking the pattern that keeps you poor

investing while in debt is like brushing your teeth while eating

@blackworldtraveler3711

3 жыл бұрын

Not with just a mortgage.

It does not make any sense at all; how much does it put in the 401k?

TBH is not 400k, they probably get much less after taxes, that being said they can pay that pretty quick

One of the worst parts of his plan

A rising tide lifts all boats.

well 400k, minus taxes on someone that high income, probably 250k net, people who make 400k usually buy expensive houses, so their mortgage could be 3k a month.

@blackworldtraveler3711

3 жыл бұрын

@Lone Wolf You must be getting scammed. Can get around $1500/mo. mortgage on up to $450k home there. Even new homes.

Legend says that the Romans kept investing in their 401K (Caesar Romulus matched their contributions) right up to the collapse of the Roman Empire. It’s about compounding interest after all.

What about the taxes?

How can I listen to the show live?

@VideoClipsNow-

3 жыл бұрын

Search Ramsey show - full episodes

@macneoh7418

3 жыл бұрын

Amazon music

@flexusanm

3 жыл бұрын

@@macneoh7418 sounds lik a paid subscription

@macneoh7418

3 жыл бұрын

@@flexusanm it is

@macneoh7418

3 жыл бұрын

@@flexusanm idk, maybe you can listen to podcasts for free.

I wonder how often and where this couple eats out for meals, how often they are buying new clothes and what brands they are shopping. A look at their budget would likely find quick win solutions for them.

Questions not asked: Do you get a company match on your 401k contributions? What are the interest rates on your debt? How much are you contributing to your 401k? Most likely, interest rate on the vehicle is low (0% - 2.5%). S&P is up about 17% year-to-date. A company match is 50% - 100%. You do the math. Dave is joined at the hip to his "baby steps" and anti-debt dogma. He twists himself into a pretzel trying to come up with a reason to discontinue the 401k contributions and finally comes up with "you need to experience pain". LOLOLOLOL

I spent years paying off debt while NOT investing. I wish I would've continued to invest. Now I'm behind in my retirement. I disagree with Dave on this.

If they don't want to sell some of their expensive toys to cover this debt, then maybe they can get a PT job driving Uber or Lyft, delivering pizzas, dog walking or baby sitting. What they should not do is stop contributing to their retirement accounts.

No. I'm going to get my match Dave.

The baby steps work!

What do they do for a living? WOW!

400k a year, my goodness bro

Dave 🙄the shirt …

Welcome to the Maybe Steps. Dude should just get the heck out of debt and be done with it.

He needs to eat beans and rice and deliver pizza. He should not be eating in a restaurant he should be working in one. 😂😂😂😂😂😂😂

My question is, why does this guy have debt with such a high salary, does not make sense.

@edwinl423

3 жыл бұрын

I guess just to make call to Dave for bragging about his high income in radio.

Sell the RV.

@hzuiel

3 жыл бұрын

Definitely, unless it's already so old it's done all it's depreciating.

400k? Dude what are you doing, well you're cars and house go drive for uber or deliver pizzas :D

He just called to flex,...

@steve99912

3 жыл бұрын

Lol exactly.

@crystalhull1677

3 жыл бұрын

What makes you say that

@steve99912

3 жыл бұрын

@@crystalhull1677 grossing 8000 a week and calling in talking about a car payment. Come on.

@todd2456

3 жыл бұрын

People who say that all the time are just jealous. It was a legitimate question.

@johndone8045

3 жыл бұрын

@@todd2456 its a legit stupid question

This was a tough one for me but when I saw how much more I could save into my 401 without debt, I was on board.

@TheDjcarter1966

3 жыл бұрын

but opportunity cost of money says you lost hundreds of thousands of dollars at retirement....even Dave admits the math doesn't work out

What’s a 401K ?

You can tell Dave really wants to tell him to keep funding the 401k but it doesnt match the formula he tells ppl to follow. I appreciate his consistency but dang...

Ramsey advice is kind of stupid, his question should be: what the rate of interest on car and rate of interest on heloc, which one has higher interest paid that one first aggressively. His saying to stop putting in 401K, that’s not good. There’s are way better option than 401K but in this case, keep investing in 401K, and pay min on lower apr and paid way more on higher interest item.

@justicegaming1412

3 жыл бұрын

At that income level they're actually past the maximum income level for contributing to an IRA.

@blackworldtraveler3711

3 жыл бұрын

My 401k gave me 1.6 million Roth to retire with at 50 that will keep reinvesting interests/dividends until it’s needed. Seem like “way” better option to me with zero debt.

Nope, can't stop wont stop

This dude a joke

@eatpigsnot

3 жыл бұрын

Dave or the caller?