Great content; I build 1k emergency fund first then attacked my 3k credit debit. Debit free is priceless and you’re in control of your destiny.

@WakingUpDreams

2 ай бұрын

It's quite amazing that so many things change when you get debt free. Congrats on your journey to getting debt free!

I always looked at cards as an emergency fund. I never racked up insane credit card debt but I did get up to like 5k when I wasn't making much. I was very nonchalant about how much I was paying in interest, but I always made payments. I still have some CC debt but I've made substantial payments the more I continue to get my life together.

@WakingUpDreams

3 ай бұрын

Thanks for sharing your story! I'm rooting for you to get that debt cleared as soon as possible. Each time I got out of credit card debt, it really felt like a weight was taken off my shoulders physically. I couldn't believe what a toll it was taking on me. Keep at it and best of luck to you!

Love Dave Ramsey but I use credit cards and pay in full each month. I'm not putting debit card purchases on the Internet.

@WakingUpDreams

2 ай бұрын

Im exactly in the same camp as you. I love Dave Ramsey too, but would also never use a debit card for internet purchases where my bank account could get drained. Credit cards are dangerous for those who are not able to stay out of debt and very costly, but if a person is able to pay them off every month, there are a ton of benefits to take advantage of. My wife and I are going to Japan and her ticket was free due to points. Last year I flew there for free and we also got over $1200 in cash back from credit cards and never carry a balance on them. Not to mention some of the protection you get with some cards offer great peace of mind. Thanks for taking the time to watch and comment!

I more agree with you than some of Dave Ramsey. I've concluded that Ramsey's $1000 Emergency Fund first strategy is to get folks used to living within thier means within a budget as it is anything else. Ive done this and am coming to conclude over time that a smaller, Unplanned Expense Fund is pretty important and all the more so as folks begin to budget for the first time and/ or in a long time; especially if they are cutting things close and don't have much cushion. At the onset, many people forget something and most people need to determine if the budgeted amounts are at all realistic; this is where the Unplanned Expense Fund comes in. I prefer Unplanmed Expense because the intention is not to buy that cute or handsome top littering a main walking aisle in the store which you might use a Miscelaneous Fund for. Ive seen folks struggle to get to $1000 dollars of savings while dying a death of too many minimum payments both in number and also in cost. You only return dollars to the budget by reducing and eliminating minimum payments or elsewise reducing your expenses. In part the better or best answer includes consideration of the debt profile at hand and the amount of available cash flow .

@WakingUpDreams

3 ай бұрын

100% Agree... Thank you so much for taking the time to comment! I will need to do a full budget plan guide one day that has a few most common scenarios people are in today. I've pretty much lived all the different scenarios from poor (or no) money management to aggressive paydowns with "gazelle" like intensity and all the in between.

@terryhenderson424

3 ай бұрын

@@WakingUpDreamsFor those who are disciplined out of will or also due to circumstances .... Please address the concept of a "puddle of money" versus 100 million different cash envelopes each with an inadequate sum, and too many sinking funds to be functional. Three related but different concepts are budgeted cash envelopes, caps on cash envelopes, and phased sinking funds. An example of a budgeted cash envelope would be Christmas or gifts. You begin with a list of what and/ or who to buy for, assign a dollar amount to each line item, tally it up; and all too often adjust those numbers. Car maintenance would be similar with a costed listing of should be oil changes, tune ups, tires, brakes, etc.... A cap then would be the amount needed to cover the budgeted items. A phased sinking fund could be the Emergency Fund in which you go for the $1000 with one level of emphasis, add an additional $500 with an different level of emphasis, etc... Or you begin with a general Emergency Fund with a cap; say that $1000 amount. Then you figure the most likely , costly emergency need like say an honest vehicle repair, medical bills, home appliance replacement. Once the priority is established you begin saving for a targeted emergency one by one with each being a phased emergency fund or independent funds. Of course this must be juxtaposed against debt pay down if debt is an issue.

Took that Dave Ramsey course and got out of debt. Been out since then. Good program! I still use credit cards though :)

@WakingUpDreams

3 ай бұрын

Same...While taking the Dave Ramsey Financial Peace Course, I did cut up and shut off cards to get focused. Once that was done though, I realized that we could use them wisely and really take advantage of the perks cards give without going into debt. Plus, it's so much easier to track our spending and organize our finances with credit cards.

Ramsey's Baby Step is build your $1000 Emergency Fund then Pay off your Debt lowest to highest. Keeping $1000 to the side isn't a bad thing or something that's detrimental to your payments. When you eliminate the "$1000 Emergency" and your car needs repairs or you run out of GAS and payday isn't until Friday and it's Monday, then you have no buffer. I agree with the principal of what you are saying, I just don't think "MOST" people can go bare bones at 0 and not run into any trouble. If you have to use the credit card to get you out of the JAM, it defeats the purpose of doing this. Just my thought.

I see the Venture X I referred you to!!!

@WakingUpDreams

Ай бұрын

Best referral ever. I got a free trip to Japan last year, and my wife got one this year when she got a card too! Thanks so much for the referral!

What's worked for me is having a $2500 emergency savings in place first. I tried to do it with just the $1000 and something would always come up and I'd have to use the debt I was trying to pay off cuz I didn't have enough saved. That's just the right amount for me it's different for everyone, only having $1000 is putting yourself at risk to get back into debt.

Hello from Oregon, this topic has been on my mind for months now. There's no right answer either for each individual. However, I agree w/you. I had to use a card last month for car service, not shopping but to fix my car LOL. I'm pretty good w/my AMEX card. I use it once a month to go out to dinner, then pay it off. I like this approach to pay off the cards first, it really does make sense to knock them out. Another topic I learned was to save for a vacation a year in advance. I had to learn the hard way, but $1600 is not that bad. Thank you for the video, NEW SUB!!

@WakingUpDreams

3 ай бұрын

Thank you for watching and taking the time to comment. Car services are always the big unexpected expenses that bite us every few months or so. I totally feel you. We feel vacations are a necessity for sanity and we do tend to go without budgeting properly but we’ve done well to still not go into debt over them. I definitely need to make sure there’s a comfortable budget for the next trips. Thanks for the Sub and keep it up!

@73ocampo

3 ай бұрын

@@WakingUpDreams Thank you!

Thanks for Sharing!👍

@WakingUpDreams

3 ай бұрын

You bet! Thank you for watching and commenting! I really appreciate it.

Great advice!

@WakingUpDreams

Ай бұрын

Thanks for watching and taking the time to comment!

Save y'all 10 minutes of your life... simple answer: CC charges compound interest of ~25%... Can't think of any investment that will give you that type of returns, let alone a bank account with the Emergency Fund.

@WakingUpDreams

2 ай бұрын

LOL!😂 Perfect summary! Too true.

I love this idea

@WakingUpDreams

Ай бұрын

Mathematically it makes sense and can save a lot of money if you avoid using the credit cards at all costs. Some people who are not able to control their spending habits need to be careful not to end up in the same debt with no emergency fund. Best of luck and thanks for taking the time to comment.

Not if the cc company randomly lowers your limit after you pay off or down the balance based on no fault of your own, ie economy, company internal finances etc. Then you've paid down a credit card with money you will no longer have access to. Save first. That money will always be there for an emergency if it's in a liquid savings account. No one can take your savings away like they can your credit limit. Be smart and don't pay credit cards before having something logical in a savings account.

@WakingUpDreams

Ай бұрын

No argument here. I know that can happen and it's definitely a risk to use the only liquid funds available to pay off the debt and have nothing for emergencies if the CCC companies decide to cut you off after paying the debt down. It is unlikely, but it can happen so it will have to be a calculated risk for anyone who may decide to do what I did. Thanks for sharing!

Great job!!!

@WakingUpDreams

3 ай бұрын

Thank you!! I appreciate you taking the time to watch AND comment!

What happens if they cut your limit or close your card?

@WakingUpDreams

3 ай бұрын

That is definitely a risk. If that’s a possibility, then you’d definitely have to make an emergency fund first. In my experience, they’ve never cut my limits or closed my cards even with balances in the tens of thousands, but I have heard it can happen, especially if you start falling behind on payments so be sure to use common sense and weigh the risks.

Debt Cures? The scam artist book? That guy went to jail. And you don't have to pay debt in prison 😂

@WakingUpDreams

Ай бұрын

Funny thing. I studied 2 of his products (debt cures and his memory course) when he was legit and they were both useful and 1 worked well. I think he had a health book on natural cures too, but I didn’t get too far into that one. The debt cures book content worked out exactly as he said for me and the strategy helped me out of drowning in tens of thousands of dollars of credit card debt back in late 90s. His memory course was very educational but took a ton of work. It definitely improved certain aspects of my thinking process and help me understand better how the brain worked, but my memory still sucks since I didn’t put in the necessary work. All that being said, you’re right. He ended up getting too greedy and made products and claims that led to him getting locked up for almost 10 years. I wonder what happened when he got out of jail if he still owed the money he was ordered to pay?

No lies told here, great video good Sir 🫡

@WakingUpDreams

3 ай бұрын

Much appreciated! Thanks so much!