We paid on a home for over 18 years. We just paid it off three weeks ago. Had one meager husbands income while raising seven children the entire time. I can totally tell you that 10 percent giving/tithing was an act of faith and somehow everything worked out. Husband was able to make repairs saving money. Would get a side job every now and then. The Lord was with us every step of the way. I wouldn’t even dare go without giving ten percent! We kept within a 25 percent house expense somehow or another. It was tight. We shopped second hand stores for our needs. Drove old cars. Made our own repairs. Stayed conservative with kids and their extra curricular activities. We scrimped and saved but it all worked out and now …. We are debt free!!!
Praise God. I am currently on this journey of getting debt free myself doing a side hussle and trying to follow the plan, and I, too am leaning on the Lord. Thank you for sharing and congratulations 🎉❤
Nowadays, it is really hard to live under 25% for housing. Housing costs are going up at a faster rate than average pay is. While under 25% is ideal, I think a lot of people will just have to figure out how to handle things with a lot less of their income.
When/if we go out to dinner which is rare....I let the kiddos pick one table at the restaurant and we discreetly pay their bill and walk out. That's my "giving".
And, what most people don't realize, is that relative to gross, you have to live on about 33% or less. Taxes can be 20-40% of gross, set aside 15% of gross, or more, for retirement. $$ for giving. Also set aside cash sinking funds for next car, hvac repairs, house repairs, add'l regular dollars to the E-fund to keep up with inflation [real, actual inflation, not the government inflation numbers] or surprise moving if Landlord doesn't renew lease, etc. It's only after I learned to live on 1/3 or less of gross that I had meaningful margin.
Why giving only money is considered? What if one gives 10% of one's time to charity instead? That can also equate to "hourly economical value of that person X 10% of time", right?
Age makes a big difference. The percent you invest for retirement is a lot different if you're age 30 and have decades to benefit from compound interest vs. age 60 and have no savings or assets such as a paid-for home. I'm 63, debt-free with a fully-funded emergency fund and you can be sure I'm allocating a lot more than 15% towards retirement!
I live in a pretty inexpensive area out in the country and I don't even think I could rent a place for 25% of my take home pay! editing to add: This is why my parents and I live together and why others are also re-embracing multi-generational living, which Dave Ramsey seems to frown upon.
I also take issue with the 25% of income housing figure. The average rent in my county is $1676 while the average apartment size is 818 square feet. I can assure you that not all rentals are equal in terms living environment and some neighborhoods are dicey even for young, full bodied males. I will fully agree that "buying" fewer ammendities, less landscaping, and newer places can drastically reduce your rent. Also, that when i was renting i sought older places (bigger rooms and more sq ft for the same or less cost), less pristine places (fewer moving out and cleaning costs, often more opportunity for improvements whether thry or i did it), and often older areas (more value for cost, often more lienent rules) but i didnt have kids nor concerns about drugs, gangs, playbareas, or schools. I could live on the block or two that was ok in a neighborhood and be fine in exchange for less rent and more spending power elsewhere in the budget.
Auwe, dats why get plenny ohana sharing a hale, often get 1 generation upstairs, unfinished downstairs converted for another dwelling, sharing a kitchen, eh? fo try handle cost of living 🤦🏽♀️
I'm paying 40% of my income to house bond...it's not the best in size or area but it's mine. We have utilities Transport Food Slow living We good Sad truth is it's hard to get anything for 25%
Housing for most people os more than double,25percentbof their take-home pay. The wages haven't kept up with rental prices. People have to go to food bsnks in order to est. Most of their income goes on housing.
I understand the 10% tithing but when people are at risk of going homeless, arent eating, are starting a debt free journey and cant/ hardy can't pay thier bills and minimums, or are mid debt free journey and dying a death of interest - I take issue with a full 10% titthing amount. This is not to say that a serious assessment of expenses isnt in order and that a second look at just what constitutes a need versus want isnt in order. I am of the camp that if the 10% giving is important, side hustling some volunteer labor or in-kind donations can fulfill at least part of the cash donations. At the onset, maybe even "charge" some of the tithing in a "take home now, pay later" mentality during what are tremendous finanancial and all the things money buys life style changes are beginning. That $2000 on a $20k/ year to $15000 on a $150k/ year salary paid down on debt in the first year can be an investment into even greater overall tithing amounts over a lifetime. That is, if it actually goes to paying down debt rather than the stereo typical Starbucks coffees, bon-bons, arcyrlic nails for mental health reasons, trips to Disney 'cause the kids need them, etc....
If the average American saves 9% of their salary… suggesting giving away 10% is absolutely insane. 1-2% is fine or volunteer time caring for you Neighbour/ Walk Dogs/ Soup kitchens etc… are just as rewarding
Hi Rachel off topic but I would love to see you with a blunt chin length bob haircut. It would eliminate those split ends and really frame your face nicely and probably give your hair some body and movement. Love the channel.
📖 what does the Bible say about Tithing? The commandment to tithe, or contribute a tenth of one’s belongings, was part of the Law given to the ancient nation of Israel. However, the Bible makes it clear that this Law-including the “commandment to collect tithes”-does not apply to Christians.- Hebrews 7:5, “True, according to the Law, those of the sons of Leʹvia who receive their priestly office have a commandment to collect tithes from the people,b that is, from their brothers, even though these are descendants* of Abraham.” Hebrews 7:18 So, then, the former commandment is set aside because it is weak and ineffective. Colossians 2:13, 14 Furthermore, though you were dead in your trespasses and in the uncircumcised state of your flesh, God made you alive together with him.a He kindly forgave us all our trespassesb 14 and erased the handwritten documentc that consisted of decreesd and was in opposition to us.e He has taken it out of the way by nailing it to the torture stake. 2 Cor 9:7 Let each one do just as he has resolved in his heart, not grudgingly or under compulsion,a for God loves a cheerful giver.
Yes let's just give 100% of our wages over 10 months when in debt, when you are in a good position fair enough I agree with giving but what a joke that statement is.
Giving, charity starts at home. Savings, Americans aren't saving 9% on the average. Homes are now unaffordable for the middle class. More money is going into rent and housing so there's less money for elsewhere. Totally redundant video, nothing new!
We paid on a home for over 18 years. We just paid it off three weeks ago. Had one meager husbands income while raising seven children the entire time. I can totally tell you that 10 percent giving/tithing was an act of faith and somehow everything worked out. Husband was able to make repairs saving money. Would get a side job every now and then. The Lord was with us every step of the way. I wouldn’t even dare go without giving ten percent! We kept within a 25 percent house expense somehow or another. It was tight. We shopped second hand stores for our needs. Drove old cars. Made our own repairs. Stayed conservative with kids and their extra curricular activities. We scrimped and saved but it all worked out and now …. We are debt free!!!
Praise God. I am currently on this journey of getting debt free myself doing a side hussle and trying to follow the plan, and I, too am leaning on the Lord. Thank you for sharing and congratulations 🎉❤
So glad for your success. We lost socializing in the process - did you?
@@jandkhilbert very little social life. But we weren’t too big in it anyways. Mostly just stayed with family and church friends.
I love that your first category is Giving. God has given us so much giving is such an important way to show gratitude for that.
Nowadays, it is really hard to live under 25% for housing. Housing costs are going up at a faster rate than average pay is. While under 25% is ideal, I think a lot of people will just have to figure out how to handle things with a lot less of their income.
I started your program at least 15 years ago... Save for the emergency fun was $1000 back then. It is time to bring it up to date with inflation!
When/if we go out to dinner which is rare....I let the kiddos pick one table at the restaurant and we discreetly pay their bill and walk out. That's my "giving".
I like this way of giving too!
And, what most people don't realize, is that relative to gross, you have to live on about 33% or less. Taxes can be 20-40% of gross, set aside 15% of gross, or more, for retirement. $$ for giving. Also set aside cash sinking funds for next car, hvac repairs, house repairs, add'l regular dollars to the E-fund to keep up with inflation [real, actual inflation, not the government inflation numbers] or surprise moving if Landlord doesn't renew lease, etc. It's only after I learned to live on 1/3 or less of gross that I had meaningful margin.
In Australia it’s impossible to have housing at 25%
Why giving only money is considered? What if one gives 10% of one's time to charity instead?
That can also equate to "hourly economical value of that person X 10% of time", right?
Age makes a big difference. The percent you invest for retirement is a lot different if you're age 30 and have decades to benefit from compound interest vs. age 60 and have no savings or assets such as a paid-for home. I'm 63, debt-free with a fully-funded emergency fund and you can be sure I'm allocating a lot more than 15% towards retirement!
Yes. Max that out over 50 you can put a lot in. 🎉
I live in a pretty inexpensive area out in the country and I don't even think I could rent a place for 25% of my take home pay!
editing to add: This is why my parents and I live together and why others are also re-embracing multi-generational living, which Dave Ramsey seems to frown upon.
I think multi generational living is wonderful for certain seasons and people. Congratulations
I think it works perfectly fine IF you are working together and everyone is WINNING. ❤
i lost it at 1:45
Sharing! So good!
I also take issue with the 25% of income housing figure. The average rent in my county is $1676 while the average apartment size is 818 square feet. I can assure you that not all rentals are equal in terms living environment and some neighborhoods are dicey even for young, full bodied males. I will fully agree that "buying" fewer ammendities, less landscaping, and newer places can drastically reduce your rent. Also, that when i was renting i sought older places (bigger rooms and more sq ft for the same or less cost), less pristine places (fewer moving out and cleaning costs, often more opportunity for improvements whether thry or i did it), and often older areas (more value for cost, often more lienent rules) but i didnt have kids nor concerns about drugs, gangs, playbareas, or schools. I could live on the block or two that was ok in a neighborhood and be fine in exchange for less rent and more spending power elsewhere in the budget.
What do you do if it’s nearly impossible to spend only 25% on “living” - it’s not very realistic with a family in Hawaii.
Auwe, dats why get plenny ohana sharing a hale, often get 1 generation upstairs, unfinished downstairs converted for another dwelling, sharing a kitchen, eh? fo try handle cost of living 🤦🏽♀️
I'm paying 40% of my income to house bond...it's not the best in size or area but it's mine.
We have utilities
Transport
Food
Slow living
We good
Sad truth is it's hard to get anything for 25%
1:46
Put your own mask on first before helping others. Would you want a pilot of a plane you are on to help you before actually flying the plane?
Your comment is a straw man fallacy.
Housing for most people os more than double,25percentbof their take-home pay. The wages haven't kept up with rental prices. People have to go to food bsnks in order to est. Most of their income goes on housing.
I understand the 10% tithing but when people are at risk of going homeless, arent eating, are starting a debt free journey and cant/ hardy can't pay thier bills and minimums, or are mid debt free journey and dying a death of interest - I take issue with a full 10% titthing amount. This is not to say that a serious assessment of expenses isnt in order and that a second look at just what constitutes a need versus want isnt in order. I am of the camp that if the 10% giving is important, side hustling some volunteer labor or in-kind donations can fulfill at least part of the cash donations. At the onset, maybe even "charge" some of the tithing in a "take home now, pay later" mentality during what are tremendous finanancial and all the things money buys life style changes are beginning. That $2000 on a $20k/ year to $15000 on a $150k/ year salary paid down on debt in the first year can be an investment into even greater overall tithing amounts over a lifetime. That is, if it actually goes to paying down debt rather than the stereo typical Starbucks coffees, bon-bons, arcyrlic nails for mental health reasons, trips to Disney 'cause the kids need them, etc....
If the average American saves 9% of their salary… suggesting giving away 10% is absolutely insane.
1-2% is fine or volunteer time caring for you Neighbour/ Walk Dogs/ Soup kitchens etc… are just as rewarding
I agree. 2% is my personal max for giving. I also volunteer time not just giving money.
Great advice
I had to move during this whole COVID thing. So yeah it's going twenty five percent can't get rent for that
You say housing s/b no more than 25% of take home pay. Is that net pay and BEFORE or AFTER you contribute to your employer 401(k)
Giving ten percent is Biblical. With debt, not sure how people do it. What a burden debt is to people.
Giving away borrowed money when you are in debt seems wrong to me. Over your life time you will have less to give that way.
What if you are 63 and no retirement, what percent....
So budgeting isn’t one size fits all, but the giving, housing and investing parameters are non-negotiable. 🙃 Her logic never fails to amaze me.
If you are in debt, especially big debt, you shouldn't be giving 10%
Man, it would be nice if rent and debt didn't make up 90% of my budget.
It just means I have to work more
Hi Rachel off topic but I would love to see you with a blunt chin length bob haircut. It would eliminate those split ends and really frame your face nicely and probably give your hair some body and movement. Love the channel.
She can't. Too busy contributing to someone else's 4 walls and self care.
Yes, follower of Jesus!!!!❤
📖 what does the Bible say about Tithing?
The commandment to tithe, or contribute a tenth of one’s belongings, was part of the Law given to the ancient nation of Israel.
However, the Bible makes it clear that this Law-including the “commandment to collect tithes”-does not apply to Christians.-
Hebrews 7:5,
“True, according to the Law, those of the sons of Leʹvia who receive their priestly office have a commandment to collect tithes from the people,b that is, from their brothers, even though these are descendants* of Abraham.”
Hebrews 7:18
So, then, the former commandment is set aside because it is weak and ineffective.
Colossians 2:13, 14
Furthermore, though you were dead in your trespasses and in the uncircumcised state of your flesh, God made you alive together with him.a He kindly forgave us all our trespassesb 14 and erased the handwritten documentc that consisted of decreesd and was in opposition to us.e He has taken it out of the way by nailing it to the torture stake.
2 Cor 9:7
Let each one do just as he has resolved in his heart, not grudgingly or under compulsion,a for God loves a cheerful giver.
Yes let's just give 100% of our wages over 10 months when in debt, when you are in a good position fair enough I agree with giving but what a joke that statement is.
Giving, charity starts at home. Savings, Americans aren't saving 9% on the average. Homes are now unaffordable for the middle class. More money is going into rent and housing so there's less money for elsewhere. Totally redundant video, nothing new!
Pets
I just subscribed to because ima change my lifestyle. Not because you’re cute!! Lol.. ok jk bit of both