They Make Too Much Money To Still Be in Debt
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- เผยแพร่เมื่อ 5 ก.ค. 2024
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My outlook on money changed when I realized someone making $300,000 can retire broke & someone making $80,000 can retire a multi-millionaire. Living within your means and living a frugal lifestyle is the first step to financial independence. I just hit the one million mark last year, cheers to everyone striving to get there someday.
Wow! Congrats on that. Is it preferable for me to save money or allocate a significant amount of my salary to stocks in order to accomplish this goal?
Varied sources of income is wise and especially living within your means. My net worth is over $1M and I can pay my bills with no stress, but I don't live like I have that. I have no complaints.
Although financial advice is arbitrary and what works for one person may not work for another, planning is always preferable. I consider myself fortunate to have been introduced to personal finance at a young age. I started working at the age of 19, purchased my first house at the age of 28, was laid off at the age of 36 during the COVID-19 pandemic, and immediately sought advice from an advisor to manage the expansion of my finances. After further investments, as of right now, I'm only 25% short of my $1 million target.
This intrigues me. I've looked up financial advisors online, but finding one to connect with is a bit difficult. Do you mind if I ask for your recommendation?
Well, I chose Kristin Amber Landis as my advisor after her interview on CNBC In 2020. She is SEC regulated with offices in the US and quite frankly a genius with portfolio diversification. You should look her up
He's not keeping up with the Joneses. He is the Joneses.
You sound jealous
@@19hundoc47 You sound gay.
No, he's stating facts.
Couple more years ill be the joneses paid off house in december 22 saving up cash to buy my first rental cabin in pigeon forge definately not gonna finance a rental cabin at 7% lol
not really, think about how dumb he is making 20k and wastes 20k+ a month. if i was his boss i will be judging him now on his work performance. thinking im probably paying this guy way to much.
The secret is to live below your means, but this caller refuses to do that.
Calm down. A roof loan that can be paid off in a year isn't a big deal
@@Thurgor_Supreme No responsible adult should need a roof loan 🤣
@@Thurgor_Supreme, the roof is just a symptom. If this young person ever wants to be wealthy/comfortable they must make some sacrifices TODAY. He certainly makes enough money to make it happen.
@@tristan2332Do you have the cash on hand to replace a roof? Probably not. 😂
Oh thanks for the tip Bob. You’re a really smart guy
Imagine making 1/4 million a year and having to take out a heloc
Imagine making that much and thinking selling a paid off truck to pay debt is a good idea.
They probably have one of those huge impeccable kitchens because they never use it.
I wonder how big the roof is.
You're wrong, they use the kitchen. But the maid and butler keep it spotless! Lol
@@charlesandrews2513 Are you serious?? In Bidens 2024 American, $250K is just barely above what middle class used to be. My wife and I make around $300k or slighly more a year.....We have no maid or butler and use our kitchen 2-3 time a day, 7 days a week. We also grow much of our own food and freeze/can a lot of it. Grow up man.
"We try to follow the Ramsey solution best as we can." Uh oh 😂 prepare to be blasted 😂
I agree, "As Best We Can" was definitely the trigger point! Ha, ha. 🤣
I paused the video to make a cup of coffee😂I knew this would be good 😆
Dave-ish 😂
"We follow the babysteps except that we took out debt and we are doing babysteps 3 and 4 before babystep 2"
How you make 200k and only have 15k save up. That’s crazy work
That is the only liquid investment they have. Their 401ks are probably great.
A maxed out 401k contribution is $69k per individual with a maximum of $13.8k for an employer match; so about $56k out of pocket. I'm guessing that the $275k a year is both of them combined. So, with both of them maxed out for their 401k's, about $112k of their $275k income is going to retirement; about 40% of their total income.
@@MrHeavy466they are probably talking about tax-advantaged contributions
@@MrHeavy46669k? Uh no
@@MrHeavy466But if maxing out their 401k is causing them to go into debt by taking a loan on the roof then they either need to budget the rest of their money better or scale back the 401k a bit.
If you read this I hope you become successful ☀️
Arigato !
@@mbank3832Couldn't translate it to English.
@@BREEZYM6015 then dont worry about it
Thanks
"...Fool me, can't get fooled again" 🤣
“Hello?!”🤣🤣🤣🤣🤣
Had Dave so upset where he’s like, “I know I’m not talking to myself.” 😂
Imagine making that much money and not being able to figure out something so simple
People are saying this guy is broke? He is putting huge sums in a 401k , equity in a house and paid off vehicles. He Will be worth millions in just a few more years without even changing anything.
It's only 15% of income will take way more than a few years. But he should retire with millions if he keeps away from debt and stays on track.
They are putting nearly 50 grand a year in 401ks and paying off their house. They make 270k a year and people are critiquing and criticizing them in the comments. They are better off than 95% if not better than everyone here. People sure love their cope though. @@tristan2332
??? he has 15 grand
Well, he did have to take out a HELOC. Why didn't he pay in cash? He had to BORROW
Thing is there’s limits to the 401k. Dude should be swimming in money. I don’t make $100k and I’m fine because I’m disciplined.
We make 120k and we paid off a 40k home renovation in about 1 year.
Hate to tell you George, but Pres Bush wasn’t the only George who fumbled that quote! 😅
😂
😂
The irony...
Came to the comments looking for this
Caller just called to brag about his income.
He just needed someone to tell him it's stupid to sell his paid off truck to pay off a debt they'll be done with in less than a year.
Sometimes people do call to brag but I didn’t hear that in this caller. Usually those people start listing every asset they have and will share their income unprompted. This guy didn’t do that. Only shared numbers when Dave asked for them
Why would someone brag anonymously?
I see a lot of this. Or else everyone in America is on huge salaries. Even people who can barely string a sentence together is on over 100k dollars.
@@raiden031makes them feel good to get the positive response about their income level. Why do attractive people call themselves ugly?
After 401k and taxes liklely 14k a month...but still. No reason you couldn't have done roof cash at all.
People always assume Dave will tell them to sell the truck LOL! Not when you don't need to :-)
With these shared numbers in mind, I went to school with a gal who is over $275,000 in student loan debt. Money is certainly not a math issue, it's behavior.
Is she a doctor or lawyer?
@@IrishMexican neither.
They are stupid
@@dougcharles6845Well what the hell was she doing??
@@UTP504 ignoring her debt, read the post very sslloowwllyy?
George, you said it backwards. Fool me once, shame on YOU. Fool me twice, shame on ME.
This guy is trying hard to stay broke even with crazy income
Exactly. I know people who make more than me but because they refuse to live within their means, they are more broke with more debt than me.
@@littlesongbird1 it’s more common than you would believe. I have a comfortable income and what I do to manage my spending is run 2 checking accounts:
-1 where I receive my paycheck and contribute to savings/retirement from
-1 spending account that I transfer my monthly budget into
I want a Swedish version of this. Wish I had encountered it 40 years ago.. All the best to you and your friends
Behavioral sink. "Everyone else is in debt so I must be". Amazing how people are like lemmings.
Monkey see, monkey do. 😂
How much was the new roof if they still owe $38,000 on it? WTF?
I don't know why I thought he said $3800! 😮 What size is this house and what kind of roof is this???
Imported Italian tiles? 😂
I'll bet anything that the house is extravagant.
They have high end roofs that can cost that much.
Our roof estimate in CA for a very small house was $20,000. Someone making $275,000 a year likely has a house at least twice our size. Unlike this family, we saved up and will be getting more bids.
Baby Steps work for rich people too.
If you think 275k a year is rich, you’re out of touch
@@19hundoc47if you think it’s not doing well, you’re in denial. I can only dream of making an income like that 😂
@19hundoc47 it’s insane how much these incomes be over valued
@@19hundoc47yes and no. That income puts them on the path to wealth. My wife and I make similar money and don't consider ourselves rich, especially as we finish the last year of large student loan payments. But we are young with 401k balances north of $1m. We are on pace to have a $15m retirement account when we plan to retire at 60. That amount is likely to double over a 20 or 30 year retirement. At what point to we call ourselves rich? We are happy and doing well but still struggle and work on personal finance on a regular basis. Our society is set up to separate you from the money you earn in the easiest way possible. You can have $100 million but you're poor in the eyes of an Elon Musk or Bill Gates.
@19hundoc47 Not being in debt is how you turn 275k a year into the upper class. It isn't rocket science, just common sense, dont spend thousands of dollars in interest payments a year and instead invest it, and it doesn't take long to move up in economic status. You're the one who is out of touch.
Good Afternoon from sunny South Africa
How is life over there?
@@BREEZYM6015 Pretty good actually. I personally cannot complain
@@njabulombuyazi5132hell yeah. Hello from California!
I honestly can’t imagine or relate to a guy who makes quarter million and has a HELOC loan😂
it really depends on what the interest rate is on the loan.....we have a mortgage at just under 3%....Why pay that off when we can make 8% easily investing....thats a net positive return of 5%
combined income is $275k....both are working
"til you get your sh...your crap together"
Hallelujah!!!! The daily jesus devotional has been a huge part of my transformation, God is good 🙌🏻🙌🏻🙌🏻🙌🏻🙌🏻was owning a loan of $47,000 to the bank for my son's brain surgery (David), Now I'm no longer in debt after I invested $8,000 and got my payout of $270,500 every months,God bless Christy Fiore 🇺🇸🇺🇸🇺🇸..
Hello!! how do you make such monthly, I’m a born Christian and sometimes I feel so down of myself 😭 because of low finance but I still believe God
Thanks to my co-worker (Carson ) who suggested Ms Christy Fiore
She's a licensed broker here in the states🇺🇸 and finance advisor.
After I raised up to 525k trading with her I bought a new House and a car here in the states🇺🇸🇺🇸 also paid for my son's surgery….Glory to God, shalom.
Can I also do it??? My life is facing lots of challenges lately
Caller slow down talking I thought Eminem called in
its all the miami coke
He could rap his call. 😂
1:23 shut up on the nine months that’s great the way you said it Dave. 😂
George talking about bush messing up the saying right after messing up the saying 😂😂
It blows me away the amount of money some people make and they're still in debt! It's absolutely nauseating! Like I've heard Dave say before, it's like they spend like Congress!
His net worth is tied up in assets and he can easily cash flow other expenses. This guy is killing it in life. The cope and jealousness of you ramsey people is sickening.
Cause they want to live a lifestyle
“We and try to follow the plan, but we also don’t really..”
I love Dave! He keeps it real🙏🙏❤️❤️
1:28 - 1:42: This caller has Dave’s voice cracking and like “I know I’m not talking to myself.” 🤣
How can someone has the ability to make money but no ability to manage it?
There are plenty of bad managers. You have probably had them all your life. They make great money but are garbage people and even worse with money.
Good luck and bad judgement
A lot of hate in the comments about this guy, stating he's keeping it up with the Joneses and living beyond his means. Yes, $275k a year income is well above average but living in Miami FL is quite expensive.
So for someone that is essentially debt free minus the mortgage. $15k savings and 2 vehicles completely paid off. Maxing out both 401k at $23k each every year. All he did was take a HELOC loan for a roof replacement, its not he blew this money on some toys and boats. This guy is doing just fine compared to most people who call into the DR show. He just needs re-evaluate his budgeting and keep on building that savings. That $38k HELOC can easily be paid off with some decent budgeting.
This guy is in the top 5% of the world. Haters just wanna hate.
There is no reason he could not have saved up and paid in cash. You know for years when your roof needs replacing
Cut to the chase Dave!
If you make over 150,000 and you are calling in this show I can’t take you seriously. I just can’t. You make 275,000, how the hell do you need advice from Dave when you make 275,000 ???
$150k really ain’t a lot of money
@@reese85it's more than enough to live comfortably within means in like 90% of the country.
@@reese85it is if you live frugally. Average household income is what like $80k? $150k is a lot more than $80k if ya didn't know
Mo money mo problems
@@anthonyanderson9303 it’s really not. Y’all be over valuing these 100k incomes or household incomes I should say
Wonder if he could lower the amount he’s putting in his 401(k) for two or three months because the amount he’s putting in was not disclosed
He said he was maxing it out. He could easily slow down what he puts in, and cut back on spending and wha la!
We make half of what they make, and we've had no debt for years, plus a paid-off house!!
Tiny homes dont count😂
Morning! San Jose, CA
Cool! Fresno, CA here. It’s BLISTERING HOT HERE!!!
Vallejo California it's hella Hot today 😅
@@jeffreywhitaker5154 yes, it is!!
Sacramento! Originally from Walnut Creek!
Good morning from Florida!
You got it backwards, George. It is "Fool me once, shame on you. Fool me twice, shame on me." The first time you're fooled, you were fooled by a devious person, who should be ashamed for being a devious person. The second time you get fooled, you should be ashamed of yourself for not learning from being fooled the first time.
Papa dave goin off!
They should have delved more into what this guy's monthly expenses are.
Morning! From PA
They probably have a cocaine habit.
this is why I love YT comments 🤣
They probably eat out and go on vacation every few times
Something is not adding up
"Fool me once shame on you, fool me twice a shame on me"
This is the kind of caller who wears a Rolex and bespoke suits but cant save a dime to save his life.
If you max out your 401(k) contributions, that's a whomping $2,000 a month unless you are older and are able to make "catch up" contributions. When you pull in $22,000/mo, that $2,000 is insignificant.
Household income of $275,000 and they take out a HELOC? WTAF?
Dave: "You're making over a quarter-million per year! Maybe you should try living below your means to knock this thing out?!"
Caller: "Nah. I called just to let you know."
$38k on a HELOC to replace the roof? What kind of roof is $38k???
Taxes and High Cost of Living Areas cause inflated salaries to be rendered less effective than a "small" salary in a LCOL area. I wonder where this guy was to spend over 38K on fixing/replacing the roof for their house. It makes me think that 270K is more like 90K in reality regarding buying power.
at their income level, and their likely personal cost of living, I wouldn't deplete the $15k liquid down to $1k in this instance, and instead just pinch the budget more. If a water heater goes out or some other big ticket item and they only have the $1k in cash, theyre right back where they started.
Good evening from south east asia
Must have been one hell of a roof
*Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*
Waking up every 14th of each month to $210,000 it’s a blessing to I and my family… Big gratitude to Andrew Stella 🙌
Hello , I am very interested. As you know, there are tons of investments out there and without solid knowledge, I can't decide what is best. Can you explain further how you invest and earn?
Same, I operate a wide- range of Investments with help from My Financial Adviser. My advice is to get a professional who will help you, plan and enhance your management skills. For the record, working with Andrew Louis Stella, has been an amazing experience.
Hello how do you make such monthly?? I'm a born Christian and sometimes I feel so down 🤦♀️of myself because of low finance but I still
believe in God
I'm favoured, $90K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America,, all thanks to Ms Louis Stella 😊🎉
NO. don't pause their 401k. Take make enough to pay it off without doing that.
He does not have to change anything.
Agree... can't believe ramsey would recommend throwing away free money. Very strange.
Also they didn't ask what the first mortgage payment was. If they have a $2M house then the mortgage could eat all the income. And further, where is his spouse at in terms of cutting lifestyle? I mean he called but maybe she wants to keep living the lifestyle?
He told him not to pause his 401k…. Do you just comment on videos without actually watching?
@@kenerwin5716he told him not to stop his 401k…. Did you watch the video or you just felt the need to comment something that is wrong?
@@alexlarsen372in this scenario he did not recommend pausing the 401k but most of his recommendation is to pause it even if it means not taking the match
Do not go down to $1000. Worst advice. If anything happens at all you’re screwed
You're also screwed if you have debt by the way.
@@amireallythatgrumpy6508 correct. But if you only have $1000 if an emergency happens they’ll have to go further into debt. They make enough
How do you MAX out your 401K??? Serious question.
He just call to brag about his salary and his life styles 😂
Only insecure snowflakes think like this. Just because he makes more doesn’t mean he’s bragging
Unreal.
I can't take people like this caller seriously.
@@DC-cd5tv right! Why is he even calling? "Should I sell my truck to pay off the loan 5 months earlier" doesn't sound like he needs to change anything except maybe figure out if maybe he's spending too much but he doesn't seem to be over extending
I wish Dave had asked what their monthly expenses were being spent on.
9 months?!?!?! 😆I make 90 a year and I could do it in less time than that. this guys unbelievable.
Daves funny lmao
The most bizarre call Dave's ever had.
lol he makes 275k, has 38k of debt (literally only 14% of his annual income) and wants to sell his truck? Sounds like he has buyer's remorse on that truck, or wants to sell it so he can finance a new vehicle.
Idk how big is house is, but I put a roof on my house cost 10k out of pocket and saved that in 6 weeks. And I make less than this guy.
We were quoted $20,000 for a small house in CA. Someone making $275,000 likely has a house twice our size. Labor costs are crazy here. Not sure about Miami.
Type of roof. I have a 50 year roof. Would cost 50k plus
Why on earth would you stop your 401K, that’s 4% March down the drain. That’s like saying, no thank you I don’t need $2K-$4K in free money!
He could reduce his 401K contributions though. He's maxing out at $23K/year each, and the employer probably isn't matching that much. He could probably cut it to $15K/year or $12K/year and still get the max employer match.
What’s the monthly take home?
Just wait for a bad storm and thiers a new roof. Learn the game😅
Do many people from Different countries & continents in the comments section. Dave works within an American context but the core principles he teaches are universal. 🥂 🍻 Cheers to improving our finances, becoming money savvy & debt free & living a joy filled life ☺️
I didn’t know Dave could bring them back from room 101.
Live below your means.
They are maxing their 401k and they only have 38K HELOC debt. Not's not much given their income. They can pay it off in a few months. I don't think they are doing badly. I don't think I heard how old they are and how much their 401K savings are but I would guess that it's a decent amount. I wouldn't deplete their savings to 1K. I would maybe bring down the 401k contribution to 15% each or down to just get the match, maybe cut down on some of their expenses and pay off the HELOC as soon as possible. Now, if they really don't need the truck, then sell it and use some of the proceeds to pay down the HELOC.
275k a year and had to borrow? thats messed. Get this dialed in and youll be truly, above the jones'
You’ll be the Hiltons.
This caller is bragging. Waste of time to hear him.
Jealous
He should be ashamed, ridiculous, he makes enough to be freaking broke.
I live in Northern Virginia and guess how many people own a full size pickup truck or SUV just to take the kids to soccer practice 3x a week?
Of all the things wrong with NOVA, that's what you take issue with? Let them have their big vehicles. Give the government workers their bottle lol
@@sitcomchristian6886 who the fuck asked you
This didnt make any sense. 38k in debt with 50k in the bank and your solution is “sell the truck”? It doesn’t make and sense
He said 15 thousand in savings
Dave figured it out in less than 30 seconds. He wanted a new truck, probably pitching to his wife the self-sacrifice of him giving up their truck to get them out of debt
They aint broke, just cash poor
Makes 275k a year, and had to borrow to put a new roof on. Only in America.
Relax Dave
Damn i have more money saved than this guy making over 200k annually
All valid points, but here's what would be BETTER practical advice.
Dial back your 401k contribution to just enough to earn the company match.
Dedicate yourselves to pay off the HELOC within 2 or 3 months.
Only then dial up your 401k contributions to max out the 23k (each) total for the year.
Don't reach that your max too soon or you'll miss out on the company match for the last month(s).
$ for $ match up to 5% of gross
In 3 months it’s all me
Fool me once, shame on you. Fool me twice, shame on me. George got it backwards. Means that after being fooled once, you should learn from your mistakes.
$38k for a roof how big is this house 🥴🥴
Sounds out like there's alot more going into this HELOC.
George messed up the saying. He said it backwards 😅
$38 K for a roof? I call BS.
I know people that spent 50k+ on a roof so yea it's possible.
Americans making 300K dollars complaining about their debt :)
Me who made 10K euros last year in Greece and still managed to go on vacations and save money.
Europe: Work to live.
US: Live to work.
$38k heloc for a new roof? Gods be good!
I make 80k, and am debt free. Put money into 401k and still have money going into savinga
$38k roof? Must have a very nice house.
I’m in the same position as him only remaining with mortgage & car note. The reason I max out 401K & 457 is because it reduces the gross income for taxes.
You'll just pay more tax later
@@Dan16673 The aim is for the future generation to inherit it. I plan to convert it into a Roth. Once I reach the required minimum distribution age it’s what I will withdraw, because I will be living in a country with a very low cost of living, I don’t think I will need all of it.
It’s fool me once shame on YOU, fool me twice shame on ME
401k until the match then nail down debt. A match is 100% roi. Beats the interest paid