As you should be until your wealth is enough that you're satisfied. For me, i'm not stopping until the growth off my indexes give me 6 figures or more per year. Even then, I'll keep investing.
6 figure PENSION? And people wonder why young people are broke and have no work benefits. If I had a FIVE figure pension I would have no need to budget because I would be filthy stinkin' rich! Let alone a paid off house!
Unfortunately, that ain't happening. He's gonna get the "I make six figures" starter kit. 60k+ car, 500k+ house. He'll call back in a year or two talking about, "Im making 130k and I'm drowning".
Doubt he will. I was laughed at by coworkers for doing that with my mortgage and regular and retirement savings during my career. Works extremely well especially after buying a home you can truly afford.
I was renting the whole time I was paying off debt. It was a 2b2b apartment with 975 sq ft. That was SECURITY while I was attacking the debt. Renting = no house repairs.
Probably not 😂. But on another note. The guy said his salary is 130K, i assume pretax. So that is what barely 100K after taxes, and Dave wants this guy to put 70K in debt? I highly doubt he can just live off of 30K. His rent is probably that much to begin with, not including other expenses. He can still get this done in like 3 or 4 years, but not 70K a year.
@@andidede3653depends where he’s living. Where I was in college rent was 600 bucks where I am now rents are 1200 and up (30 mins outside of Chicago). Also depends how bad he wants it can get roommates, can work weekends on DoorDash etc.
Dave is right. My whole attitude changed when I paid off my student loans. My wife and I cleared $96k in 2 years and now we travel more with no worries about whose president
I had to pay tens of thousands over the years to get my U.S. citizenship, that put me behind. Almost died, shot in the stomach by a criminal. That put me WAYY behind, with extra surgeries. I was fraudulently handed 10-99's instead of W4's for taxes, that set me behind. My face got broken and needed surgery at a religious chicken restaurant event, they swept it under the rug. That set me back and lost that job. I always worked really hard and did my best, Somehow, I have managed to keep ZERO debt, own a car, and yes, unfortunately still rent. But I am working on a plan to change all this. Wish me luck!!
My wife and I run FPU classes and we just LOVE it when people with six figures of debt tell us why they're doing great, they have a plan, they have ideas, and they effectively want us to "approve" their plan and acknowledge that the baby steps are wrong. Always entertaining.
Not going to lie, but we are actually really proud to have an employee like you as part of the team. The job is done so gracefully and neatly. Very well done, dear MYSTICFLIP . First of all. Thank you for making the work environment so friendly and taking your responsibility seriously and completing the work gracefully! You deserve so much.
Wish I would of found DR when I was 28! I was living on the hog on the outside and broke inside. What Jade said about skinny fat was me. Im finally on track and got a lot to catch up on financially. Being debt free feels like I can do anything now. Everyday I wake up knowing I owe No-one it’s such a great feeling.
I think a guy who was just recently laid off has reason to feel as if he NEEDS an emergency fund just in case he gets laid off again. He can “follow” Dave’s plan & still keep a 2 or 3 month emergency fund handy while attacking his debt. The reason he called in though was to ask about how to buy a house but after Dave heard the amount of debt the guy had he never got a chance to ask his house question. 😂
Well when Dave was talking over him he started to say his rent is $3000. That's a ridiculous amount for a single person to throw away every month. But if I were the caller I'd be looking for cheaper rent - a room above a garage if nothing else.
I do agree that the psychology of freeing one's self from debt and the discipline it takes to focus on it for 2 years is valuable. But I do have self-control and focus so I will never agree with Dave that it's okay to run for 2 years with only $1000 emergency fund. I would split payments between the debt and saving. Maybe it will take 3 yrs instead of just 2 to get out of debt but at least I've got living expenses if I get laid off or injured or otherwise unemployed again.
Precisely. It's just far too risky to dump almost all your cash towards a vehicle loan, especially when doing so won't result in owning it 'free & clear.' Extremely unwise.
The instant he gets his higher paying job he forgets all the stress and anxiety he was just facing and immediately tries to lifestyle up, lol. He didn't sound at all like he was onboard with the debt elimination plan, he was sounding like he wants to borrow as much as possible for a mortgage and go full fledged ish for the next 25 years.
I finally got funded yesterday!!! It took almost 2 weeks to go through this process! I just want to say it was because of you that I continued the process! I wanted to give up but I didn't you helped me navigate through all the red tape! Praise God and thank you MYSTICFLIP
So you enjoy your life though? I know super cheap people and they live super boring lives. Make sure you enjoy it! My dad had tons of money too but all he did was work and regretted it once he was close to death.
It’s nice that Dave spent a bit more time trying to convince him to follow the plan, lately he just hangs up and says well if you don’t want to do it then don’t
I love this! Most people will never take the first step to get a better job and look the caller DOUBLED his salary! Find the courage take the step and improve your life. No one is going to do it for you! Amazing to hear the stories!
There can be legitimate reasons to be a Renter… you don’t always stay in one country, let alone place forever… sometimes when you take on new challenges e.g. new graduate programme, new job in a different country. You can find yourself Renting! In which case I choose to put my lump sums into solid investments rather than a massive physical asset with entry and exit costs. Of course property is a great asset. But it’s not always the right choice for everyone situation.
I have a hard time with liquidating his emergency fund to pay off, what, 1/3 of the car loan? If he could pay the whole thing off, maybe. I'd rather see him go "scorched earth" for 1-2 years and pay all the debt off, without pausing retirement and without draining his savings.
We are moving out of state for my wife's work. We both make 6 figures. We chose to rent rather than buy into the looney toons housing market we are moving to. Houses are more than double the cost they were 2 years ago. A run down shack in the woods goes for over 300k right now. I'm an Engineer and used to work construction. I budgeted stuff out. I can buy land, prep it, and build a house for 1/3rd of what they are selling for. Instead of buying a crappy $300k house I'll build a really nice $250k house that will be worth over $500k. We might be able to cash flow most of it vs getting a high interest Mortgage on a house we don't want.
@@wilson8378 I have a friend who got a Civil Engineering degree and work with construction or landscaping. He said he could build anything. I think he meant that he has the license to build in his area. Work done by contract. Probably with better materials, etc. too.
Dave kinda said it at around 5:00 about the callers concern of not having an emergency fund. The small emergency fund is there for a small buffer and to MAKE you uncomfortable to keep paying this debt off quicker so you can move on to step 3. Let’s be real here, this caller is a single man, doesn’t sound like he has kids, and is in his 30s. I’d be hard pressed to see him have an emergency that’ll cost more than $1000 within a 2 year span. 🤷🏽♂️
Already having the experience of being laid off for months certainly cost him more than $1000 and is the reason he is scared to let go of his savings at this point. Let's be real - he COULD get laid off again or have a serious injury or illness. It's a cavalier attitude that nothing bad will happen to us for two years is how so many people are devastated financially.
@curiouscat3384 thats also why i dont agree with dave when he tells people to sell their current car on loan and buy an $1000 - $2000 vehicle, considering most people dont know how to work on cars, anything from brakes, belts, engines, and transmissions would destroy that emergency fund and some more putting them back into debt much better to keep that car thats under warranty and you know all the work being done to it
@@condog209 Yep I had that argument with someone in another video. I drive a 20 yr old beater (VW station wagon - very functional and I love it :) But I've averaged my repairs and maintenance cost per year is $1000 per year. I have a wonderful neighborhood mechanic and I know where the tow companies are near my regular travel patterns. I never know when I'm going to have a $700 or $2000 repair so if I had no savings I'd be without transportation. It's still cheaper than buying anything new or used at this point but I wouldn't advise it for people who are too busy to spend time in repair shops or doing their own or even keep track of a preventive maintenance schedule. Unless of course, it's a ridiculously high priced new car that's eating up their budget.
@@curiouscat3384 had the same argument on George's channel. And had a bunch of blind believers tell how I'm wrong, just because they watch Dave Ramsey and Scotty Kilmer all day
MYSTICFLIP! I am so glad I discovered you on TH-cam. You are a brilliant person and I just got funded for my business. Saying thanks & for sharing your knowledge doesn't come close to express how much I appreciate you.
He can't get a house. His debt to income ratio is too high and he had a gap in income within the past two years. No underwriter in their senile mind would give him a loan.
first of all.Thank you for making the work environment so friendly and taking your responsibility seriously and completing the work gracefully!You deserve so much.He does what he says he is going to do and his ethics are of the highest quality.MYSTICFLIP
I agree with Jonathan actually… his extra savings helped him survive the layoff. $1000 in 2023 is like…nothing. You can’t even pay 1 month rent with that. You can’t buy tires. You can’t pay for a transmission. You can’t pay your deductible on a car accident or if your in the ER. It literally cover nothing of an actual emergency. Why even have it if that low?
When the broke renter said “other than that I don’t have debt”, I dam nearly fell off my chair. Sir, you are broke! The delusion. I would run away so fast from this male.
I'm also a renter. I haven't been broke a day in my life since turning 18, and according to the statistics, I am WAY ahead of the national average in terms of savings for my age group. I could have bought a house years ago, but I don't want to. I rent because I want to rent. Dave doesn't seem to understand this because he is apparently too beholden to the real estate/finance cartels.
@@CarnivoreStorkthe kids 18, and there’s this thing called opportunity cost. Yeah, he could buy a shithole money pit for 100g at 18, or wait til he’s 25 with a bigger income, and he can qualify and logistically set up a proper house hack. Learn some nuance for once
Man these folks be buying houses and becoming house poor . I have plenty of money to buy a house and still rent . They never talk about the random repairs , fees, taxes and maintenance. Buy a house when u ready , this guy is a fool . Every home is not an asset.
About 12 years ago, were approved for a loan by a direct lender and almost bought a condo where we lived in So Cal. We had some credit card debt and didn't have much of a down payment, and then we discovered Ramsey and decided to wait and signed another 14 month lease. The condo we were originally looking at shot up within that year almost 100k! Just kept getting worse and we couldn't catch up. Most of our debt was gone, but needed the emergency fund and bigger down payment. Another year, another 100K up. After a few more years of this game, we gave up. The original condo we almost pulled the trigger on would have been a 1200 dollar payment including tax and and a not too bad homeowners association. The rent kept going up on our 1 bedroom apartment and in the end we were paying 1900 dollars. When it jumped up to 2100 for the next lease, we decided to bail. Hubby asked to go remote and his boss was well aware of how expensive Ca. was getting and didn't want to lose him as an employee so we moved (this was before the pandemic) We went to a place where the rent was almost half the cost and no income tax. My husband has the professional job and I'm a waitress, and can work anywhere. Anyway, we finally got out from behind the 8 ball, have a 6 month EF, and will have a huge down payment for a place as long as we stay out of So. California. The downside is we miss all our friends and family who are still there. I'm not great at making new friends, and the pandemic didn't help matters to try and socialize. Sometimes I really regret not buying that condo when we had the chance. We would have been locked into that payment and my husbands raises would have counted for something instead of a lot of it going to rent raises, plus we would have still had our community. In the end though, I'm glad I found Ramsey. The steps really do work, just found them at a stupid time in life after making our foolish mistakes. Ramsey should be taught as young as possible!!!! 🙂
In high housing market areas DR's "advice" is disastrous. You'd have had 100K in equity after only a yr. as well as locked in affordable housing payments for the next 15-30yrs. Meanwhile, your rent shot up so high you were totally priced out of the housing market in an area you truly wanted to live. Becoming "debt free" was, unfortunately, one of the most expensive & costly choices you've ever made. Being overextended is never a good idea. Neither is a lot of credit card debt - any beyond what you can pay off w/in the month, really. But the blind one-size-fits-all zealotry isn't healthy, either.
@@caseymarion2494 Yup, learned that one the hard way. :( I feel bad for the younger couples who were trying to save up as well. Lot's of young families moving out of California leaving grandparents behind.
@@caseymarion2494 I made the same mistake. Waited way too long to buy a house thinking saving more would be the responsible thing to do. In the end, it cost me $100K more in mortgage debt.
puting 7k out of your 8k emergency saved is such horrible advice in todays time. And I get Dave wanting him to pay off his debt but I will never agree with not enjoying your life to some extent. Tommorows not promised. You will die miserable. There has to be a balance
No house? He is only 30 and tired of renting? When, in a previous llife? Sell the car and get a cheap transportation one then work on getting on stable financial ground.
Exactly. When you have $80k in student loans, you should not be looking at a house at all, especially after coming off being laid off. They want to see continuous employment for 2 years anyway before you're going to get approved for a mortgage.
@@drtij_dzienz I get you're point but it stated "that's why you're still a renter!" My bff and I are still renters even if we are fine finacially. It assumes all renters have no options.
Dave didn’t say people are broke because they rent. He said this guy is a renter because he’s broke, ie buying a house while he has these debts isn’t a good financial option. No-one is having a go at renters.
What lifestyle? Six figures is not that much in this day and age. People need to raise their standards and stop accepting the numbers they were conditioned to think is "living high off the hog" when they were children, before inflation ate away at more than half a six figure salary value.
If we take his gross pay into account, he has a debt to income ratio of $114,000/$130,000 = 87.6%. If we take his assumed net pay of $91,000, then his DTI is $114,000/$91,000 = 125% He didn't work for months either. That puts a gap in his two year income. Why does he think about buying a house? No lender will give him a penny. And all this $130,000 pay talk is for a job he hasn't started yet.
If you make $130,000 a year living in the region of North Carolina, USA, you will be taxed $37,841. That means that your net pay will be $92,160 per year, or $7,680 per month. Please tell me how you are going to pay off $70K per year!!! And live off of $22,160? Good lord.
I just found your content this week. I should be able to start baby step two next month. I also started my business launching this month with no debt to start.
Yeah after being laid off I'm not dropping my savings to 1k dollars. I'm a Ramsey fan but that's stupid. If he gets laid off or something else happens he's homeless
0:20 - Yeah, I had a lot of "thank God I got laid off" moments (including recently). 🙂 In hindsight, layoff means that the company/team is diminishing and the work gets loaded onto the folks still there without a new incentive to work harder. So getting rehired means the new team is growing (hence they're hiring), and work gets spread out amongst the growing team. 👍
Monthly mortgage payments for buyers of new homes has DOUBLED in the last 4 years. Interest rates have DOUBLED as well over that same time frame. Buying a house ain’t the walk in the park that it used to be, Dave. You’re out of touch.
In all honesty...his advice is good. But had i listened to Dave exactly as the baby steps...buying a house now would be more difficult with the interest rates and prices. I purchased a home while going to grad school. Paid off all my consumer debt last month and am now on baby step 3. But buying a house now vs 5 years ago would be impossible. We also purchased a home that was affordable...which was a huuuge factor in actually being able to pay off the consumer debt.
My husband was laid off in December, just started back working May 1st, we never skipped a beat, he did get severance and unemployment but there towards the end it was gametying a bit scary. We have since paid down our mortgage to just under $48k from a refi last year and a $137k balance BS6, it can be done!!
Zero rush in his situation, just pay the car as planned and just pay off the student loan in 4 year, no eating out and no partying my ass, 130k is more than enough to enjoy his life reasonably
For each his own, but I'd rather be debt free in two years as recommended by Dave. The feeling of being debt-free is incredible once you are there. The two years after, enjoy it debt-free!
Thank you so much MYSTICFLIP for my SBA approval. I understand the terms and conditions of the loan disbursal and will make sure that I return the loan amount in the stipulated timeline. As I have already taken insurance for my new Business that I am planning to open in California LA. My business details and owner details have been submitted in the bank and I will be submitting the further details as well as and when the times comes.
He could change nothing about his lifestyle from before his layoff and pay off roughly $50k a year. Lifestyle creep is the biggest danger, when he sees those paychecks come in and he sees his account balance go up so much.
He makes a living off renting out property and doing his show, so naturally he doesn't want future homeowners. However, this guy is not ready for a mortgage...
@@lombardo141 but if he buys a house and then pays off his debt, he'll be house rich, wouldn't he? If he pays it all off while he's still renting, he'll just be another broke renter. Not only that, with his DTI freed up, he would be more likely to overdo it on a house...in other words be house poor. Think about what advice you'd give.
Not following Dave's advice is an excellent way to ensure your future includes foreclosure. Oh and by the way, if you have debt you simply don't DESERVE to own a home.
Whyd this guy even bother calling in? Agree or disagree with Dave he knew exactly what Dave was gonna say. Then he has the nerve to start having an attitude when Dave said the things he already knew Dave was gonna say. Some people are weird.
The only thing I'm not sure of in the strategy is pausing retirement savings. I don't know the caller's situation but if there's a good employer match leaving that money on the table can be expensive. A couple places I've been at did a 100% match and it was immediately vested. Taking $1000 out of that pool to pay of debt is costing you $2000. And if your argument is that the paid off loan reduces interest payment I agree, it will, but the money in your 401k will be earning interest too, and it's got that $1000 head start on day 1. If there's no employer match, or it's a low percentage, then it's a clearer decision to pay off the debt. That's what I did with a chunk of money that I could have invested instead of using it to pay off my last debt (mortgage). Never regretted that once.
“Punch the thing in the freaking face until it dies” 😅 Dave referring to student loans. That’s how I feel about my student loans. It gets me angrier than other debt….it’s not like we will actually get debt forgiveness. So let’s get done with this.
So… with 130k salary his take home is 91k Dave wants him to put 70k a year towards debt…. So this guy is supposed to live off 22% of his take home pay…. Seriously? That’s the plan. His rent is probably more than 20k in a year
Dave said put 65k towards it. The guy has 7k he needs to put on it. He only owes 107k. So really he only needs 54k a year towards it and he's done. Dave is correct, this is a two year endeavor...at his current pay. Even after taxes he's netting 90k. He'll have 45k to live on after paying debt.
There is not enough information for Dave to tell him how much to put towards his debt a month. Reminds me of the school math word problems. Dave is not a financial planner only an advisor and you can definitely tell!
I appreciate the tough love mentality. I'm working on my last $9500 in debt (down from $80k). My husband and I are trying to save for a house in a very expensive area. Thanks for all the info Ramsey team!
@@joshallison2966 I paid off a bunch of the debt when my condo sold before we got married. That hurt to see my equity gone over night.The rest I'm paying off at about $1k/month. I'm saving small amounts every month just because it helps me stay motivated seeing both savings and debt going in the right direction. We won't be able to buy for a couple of years. I was a total bonehead with money. Never again.
I'm single for lifer, and at this point, I don't think buying a house will ever be better than renting. $700 for rent and an 800 sf house in the area is $200-$250k. Even with aggressive inflation assumptions, itd still take 20 years to break even.
I love people with 6+ figures who can not manage their money to save their life and are up at night crying and worrying about money. Here I am clearing 35K a year with more cash assets, zero student debt and more money in Retirment than they do.
I wonder what Ramsey thinks of Van-Lifers. They definitely save a LOT on rent/mortgage, utilities, property tax, etc. I have a feeling more people will begin to live this way. Of course, it'll be ideal if you outright OWN the vehicle you'll be living in, so you don't risk losing it to a repo man. The streets are free, and if you have a job, you'll get to keep A LOT MORE of your money that would otherwise go to some stupid bills.
@@jodylarson4697If you're employed and live in a city where you know the areas and neighborhoods well, it will be a lot easier than if you're ever-moving, let alone unemployed. You can use your van to commute to work, and when you're done, you can find a neighborhood where there's lots of cars on the side of the road or is sparsely populated. You can also pull into urban prairies with dense cover or pull over in a place where no one will question why you're there.
At 2.40 That "Okay . . ." Was me lol I'm exactly in this guys position. Just got a good paying job after literally four years of looking and making peanuts. And now I want to do EVERYTHING ALL AT ONCE! But . . . I need to take a breath, and start working the baby steps. XD TOTALLY Sympathize with the guy though.
Can’t blame someone for being nervous about a $1k emergency fund after experiencing a layoff. Would’ve been helpful to point out that the caller should be just as nervous about adding a mortgage to the existing debt - too high of a DTI ratio.
$1000 IS NOT ENOUGH OF AN EMERGENCY FUND FOR THE AVERAGE PERSON!!! It needs to be, at minimum for a starter fund of 1-2 months. Also, DO NOT stop adding to your retirment. Add the minimum to get your full match. That 100% returns beats any interest you will pay.
I'm 60. House paid off. Piece of land paid off. 30k in emergency fund. 250k stashed. No debt and 6 figure pension. I'm still on a budget
As you should be until your wealth is enough that you're satisfied.
For me, i'm not stopping until the growth off my indexes give me 6 figures or more per year. Even then, I'll keep investing.
Totally awesome! Keep it up!
When you say u have a 6 figure pension does that mean you don't work and still get 6 figures a year? What job was that from?
6 figure PENSION? And people wonder why young people are broke and have no work benefits.
If I had a FIVE figure pension I would have no need to budget because I would be filthy stinkin' rich! Let alone a paid off house!
What career path was that?
Don’t you just love when callers say I have 87,000 in student loans and 20,000 in a car otherwise I HAVE NO DEBT 🤯🤯🤯 and what was that then?? 😆
Other than that, Mrs Lincoln, did you enjoy the play?
@@vicepresidentmikepence889haha wow, if that doesn't say it all!
@CindyGuzman-xl5uiI know this company and I’m happy to say the admin of this company has helped me so much
Lmaooo facts
@@vicepresidentmikepence889😂😂😂
"I don't care what you want. You're broke." Gotta love Dave!!
No you don't.
@CindyGuzman-xl5ui If you teach crypto or single stocks, then your teachings are garbage and a scam. I'm doing just fine with my mutual funds.
"...arguing with a trainer and he's got a 6-pack and you've got a keg.."😂
He needs to pretend he still makes his old income and throw half his salary right onto the loans every month.
Unfortunately, that ain't happening. He's gonna get the "I make six figures" starter kit. 60k+ car, 500k+ house. He'll call back in a year or two talking about, "Im making 130k and I'm drowning".
Doubt he will.
I was laughed at by coworkers for doing that with my mortgage and regular and retirement savings during my career. Works extremely well especially after buying a home you can truly afford.
@@herbertscott9575😂
No hell no, pay the car within his loan term and pay the student loan in 4, no rush like dave
@herbertscott9575 this is 100% right. You could even hear in the callers tone when dave said to pay those things off he was just blowing it off
Just punched my student loans in the face and they are dead! THANK GOD!
I was renting the whole time I was paying off debt. It was a 2b2b apartment with 975 sq ft. That was SECURITY while I was attacking the debt. Renting = no house repairs.
Just do van life. No rent, no mortgage, no utilities, no property taxes, etc.
@@PrimericanIdol and park it down by the river.
Also no rising HOA fees, property taxes and home insurance.
@@santafilipina9020 With the van, it's all the same in addition to no rent or utilities.
Exactly cant go shopping ie buy a house when you are in the hole.
This guy is not gonna follow the advice. He is gonna do what he wants. 😂😂😂😂😂😂😂😂😂
😂😂😂😂 lol
Probably not 😂. But on another note. The guy said his salary is 130K, i assume pretax. So that is what barely 100K after taxes, and Dave wants this guy to put 70K in debt? I highly doubt he can just live off of 30K. His rent is probably that much to begin with, not including other expenses. He can still get this done in like 3 or 4 years, but not 70K a year.
@@andidede3653depends where he’s living. Where I was in college rent was 600 bucks where I am now rents are 1200 and up (30 mins outside of Chicago). Also depends how bad he wants it can get roommates, can work weekends on DoorDash etc.
@@andidede3653You can easily live off $25k a year in Charlotte, NC.
Dave is right. My whole attitude changed when I paid off my student loans. My wife and I cleared $96k in 2 years and now we travel more with no worries about whose president
Also we were able to save $20k in 6 months after having no more debt
🎉🎉🎉🎉🎉 yes, congratulations.
Who’s** smh
Next step: Sell your house (if you own one), and begin living in an RV (that you outright own, of course).
@CindyGuzman-xl5uiSure scammer.
He wanted Dave to tell him that it is okay for him go buy a house now 😂😂😂
Yep…he was definitely fishing for permission to go out and buy a house
Agree haha. Dave was getting fired up and the guy was like "uh huh" when he told him he was broke and needed to pay off debt.
You know this guy is just going to continue doing what he was doing.
hell yeah! 30 years old with social media its time to flex! not save
Yea living his life.
@@tracygaluszynski1868 Yea living his life by working until he drops dead at a job he hated, doing things he hated, for most of his life
Yes ,he wants to buy a house and certainly won’t be waiting 2 yrs lol
You think so?
I had to pay tens of thousands over the years to get my U.S. citizenship, that put me behind. Almost died, shot in the stomach by a criminal. That put me WAYY behind, with extra surgeries. I was fraudulently handed 10-99's instead of W4's for taxes, that set me behind. My face got broken and needed surgery at a religious chicken restaurant event, they swept it under the rug. That set me back and lost that job. I always worked really hard and did my best, Somehow, I have managed to keep ZERO debt, own a car, and yes, unfortunately still rent. But I am working on a plan to change all this. Wish me luck!!
I'm sorry to hear you've endured so much wow. Best of luck to you.
I hope you’re doing well. You sound like a good person!
My wife and I run FPU classes and we just LOVE it when people with six figures of debt tell us why they're doing great, they have a plan, they have ideas, and they effectively want us to "approve" their plan and acknowledge that the baby steps are wrong. Always entertaining.
I can only imagine.
0:51
Caller:. I have $87,000 of student loan debt and owe $27,000 on my car. Otherwise I have no debt.
Isn't that enough? $114,000!
I think he meant no “other” debt
So many of these people are living in a dream world.
Not going to lie, but we are actually really proud to have an employee like you as part of the team. The job is done so gracefully and neatly. Very well done, dear MYSTICFLIP . First of all. Thank you for making the work environment so friendly and taking your responsibility seriously and completing the work gracefully! You deserve so much.
Wish I would of found DR when I was 28! I was living on the hog on the outside and broke inside. What Jade said about skinny fat was me. Im finally on track and got a lot to catch up on financially. Being debt free feels like I can do anything now. Everyday I wake up knowing I owe No-one it’s such a great feeling.
I think a guy who was just recently laid off has reason to feel as if he NEEDS an emergency fund just in case he gets laid off again. He can “follow” Dave’s plan & still keep a 2 or 3 month emergency fund handy while attacking his debt. The reason he called in though was to ask about how to buy a house but after Dave heard the amount of debt the guy had he never got a chance to ask his house question. 😂
Yes, he has good reason to want an emergency plan.
He can't get a mortgage with that much debt
He doesn't need to be buying a house.
100% agree. It's irresponsible. He should go for 3months expenses then attach the debt
@@georgewagner7787He absolutely can. Hahaha
I can tell from his “um hums” that he doesn’t really want to get serious about attacking his debt
Agreed.
Um hum
Well, I’m tired of renting…. “YOU’RE BROKE!”
This dude is complaining about renting when he still has over 100k in debt. lol
Well when Dave was talking over him he started to say his rent is $3000. That's a ridiculous amount for a single person to throw away every month. But if I were the caller I'd be looking for cheaper rent - a room above a garage if nothing else.
I still believe $1000 is not NEARLY ENOUGH for an emergency fund. That’s literally not even one month of my rent.
It really isn’t
@@Burgy945 That would barely cover one month of expenses. I think $5k is a more proper emergency fund but that’s just my opinion!
@@ayo_k32 5k is definitely good! More would make you feel more comfortable and less worried if something happens.
Yeah. Every time they say $1000 I get nervous. I had to replace a water heater and it was $1600. $1000 is NOT enough!
It's called a "starter" for a reason.
He won’t do any of this. He’s gonna go buy a house
And watch the house value to go down in the next couple years and he will be complaining that it’s the banks fault
He said he was tired of Renting and got doubled his income 😂😂😂
I do agree that the psychology of freeing one's self from debt and the discipline it takes to focus on it for 2 years is valuable. But I do have self-control and focus so I will never agree with Dave that it's okay to run for 2 years with only $1000 emergency fund. I would split payments between the debt and saving. Maybe it will take 3 yrs instead of just 2 to get out of debt but at least I've got living expenses if I get laid off or injured or otherwise unemployed again.
Precisely. It's just far too risky to dump almost all your cash towards a vehicle loan, especially when doing so won't result in owning it 'free & clear.' Extremely unwise.
I thought the same thing.. the guy makes more than enough money in income to use to pay off his debt without having to use his $8k emergency fund.
The instant he gets his higher paying job he forgets all the stress and anxiety he was just facing and immediately tries to lifestyle up, lol. He didn't sound at all like he was onboard with the debt elimination plan, he was sounding like he wants to borrow as much as possible for a mortgage and go full fledged ish for the next 25 years.
I finally got funded yesterday!!! It took almost 2 weeks to go through this process! I just want to say it was because of you that I continued the process! I wanted to give up but I didn't you helped me navigate through all the red tape! Praise God and thank you MYSTICFLIP
Had a blessed year. Paid off my house. $215k household income. $350k in savings. Debt free. 36 years old.
So much in savings in bank?
So you enjoy your life though? I know super cheap people and they live super boring lives. Make sure you enjoy it! My dad had tons of money too but all he did was work and regretted it once he was close to death.
@@lionheart93I hope they meant brokerage acct or least money market.
Good point. Need to work on enjoying more.
6 month’s emergency fund for now. Threw it all at the principle.
It’s nice that Dave spent a bit more time trying to convince him to follow the plan, lately he just hangs up and says well if you don’t want to do it then don’t
😄
Why i laugh at some of these caller and their situation is almost an exact replica of my life? I'm tired of renting too 😭
I love this! Most people will never take the first step to get a better job and look the caller DOUBLED his salary! Find the courage take the step and improve your life. No one is going to do it for you! Amazing to hear the stories!
"i had my rainy day fund because I didn't attack the debt". This guy is screwed. He wants to rationalize not paying off his debt for any reason
There can be legitimate reasons to be a Renter… you don’t always stay in one country, let alone place forever… sometimes when you take on new challenges e.g. new graduate programme, new job in a different country. You can find yourself Renting! In which case I choose to put my lump sums into solid investments rather than a massive physical asset with entry and exit costs. Of course property is a great asset. But it’s not always the right choice for everyone situation.
Agreed. There are comparisons done, renters vs owners and as long as you invest, it works out about the same.
I have a hard time with liquidating his emergency fund to pay off, what, 1/3 of the car loan? If he could pay the whole thing off, maybe. I'd rather see him go "scorched earth" for 1-2 years and pay all the debt off, without pausing retirement and without draining his savings.
Precisely.
We are moving out of state for my wife's work.
We both make 6 figures.
We chose to rent rather than buy into the looney toons housing market we are moving to.
Houses are more than double the cost they were 2 years ago. A run down shack in the woods goes for over 300k right now.
I'm an Engineer and used to work construction.
I budgeted stuff out. I can buy land, prep it, and build a house for 1/3rd of what they are selling for.
Instead of buying a crappy $300k house I'll build a really nice $250k house that will be worth over $500k. We might be able to cash flow most of it vs getting a high interest Mortgage on a house we don't want.
@@wilson8378 I have a friend who got a Civil Engineering degree and work with construction or landscaping. He said he could build anything. I think he meant that he has the license to build in his area. Work done by contract. Probably with better materials, etc. too.
Dave kinda said it at around 5:00 about the callers concern of not having an emergency fund. The small emergency fund is there for a small buffer and to MAKE you uncomfortable to keep paying this debt off quicker so you can move on to step 3. Let’s be real here, this caller is a single man, doesn’t sound like he has kids, and is in his 30s. I’d be hard pressed to see him have an emergency that’ll cost more than $1000 within a 2 year span. 🤷🏽♂️
Already having the experience of being laid off for months certainly cost him more than $1000 and is the reason he is scared to let go of his savings at this point. Let's be real - he COULD get laid off again or have a serious injury or illness. It's a cavalier attitude that nothing bad will happen to us for two years is how so many people are devastated financially.
@curiouscat3384 thats also why i dont agree with dave when he tells people to sell their current car on loan and buy an $1000 - $2000 vehicle, considering most people dont know how to work on cars, anything from brakes, belts, engines, and transmissions would destroy that emergency fund and some more putting them back into debt
much better to keep that car thats under warranty and you know all the work being done to it
@@condog209 Yep I had that argument with someone in another video. I drive a 20 yr old beater (VW station wagon - very functional and I love it :) But I've averaged my repairs and maintenance cost per year is $1000 per year. I have a wonderful neighborhood mechanic and I know where the tow companies are near my regular travel patterns. I never know when I'm going to have a $700 or $2000 repair so if I had no savings I'd be without transportation. It's still cheaper than buying anything new or used at this point but I wouldn't advise it for people who are too busy to spend time in repair shops or doing their own or even keep track of a preventive maintenance schedule. Unless of course, it's a ridiculously high priced new car that's eating up their budget.
@@curiouscat3384 had the same argument on George's channel. And had a bunch of blind believers tell how I'm wrong, just because they watch Dave Ramsey and Scotty Kilmer all day
MYSTICFLIP! I am so glad I discovered you on TH-cam. You are a brilliant person and I just got funded for my business. Saying thanks & for sharing your knowledge doesn't come close to express how much I appreciate you.
I have a vague sense from him, trying to ask if he should get a house to avoid paying rent. Dave already shuts him down. Lol
He can't get a house. His debt to income ratio is too high and he had a gap in income within the past two years. No underwriter in their senile mind would give him a loan.
Callers try to get this permission all the time.
@@sblijheidHe can get a house. They’re throwing loans just to foreclose on people
Why do people like this bother calling the show just to argue and not listen?
first of all.Thank you for making the work environment so friendly and taking your responsibility seriously and completing the work gracefully!You deserve so much.He does what he says he is going to do and his ethics are of the highest quality.MYSTICFLIP
I agree with Jonathan actually… his extra savings helped him survive the layoff. $1000 in 2023 is like…nothing. You can’t even pay 1 month rent with that. You can’t buy tires. You can’t pay for a transmission. You can’t pay your deductible on a car accident or if your in the ER. It literally cover nothing of an actual emergency. Why even have it if that low?
When the broke renter said “other than that I don’t have debt”, I dam nearly fell off my chair. Sir, you are broke! The delusion. I would run away so fast from this male.
Lemme pay for ya debt boo
I love how Dave always uses gross figures and conveniently ignores taxes, health insurance, etc that is taken out before you even see your pay check
I'm also a renter. I haven't been broke a day in my life since turning 18, and according to the statistics, I am WAY ahead of the national average in terms of savings for my age group. I could have bought a house years ago, but I don't want to. I rent because I want to rent. Dave doesn't seem to understand this because he is apparently too beholden to the real estate/finance cartels.
If you don’t become your own landlord & pay off a mortgage,
You’ll be paying 3X the rent when you retire in your 60’s.
It’s called INFLATION.
@@CarnivoreStork not if you live outside the us..
What is the reason you would rent when you could buy other than being a stupid moron?
@@CarnivoreStorkthe kids 18, and there’s this thing called opportunity cost. Yeah, he could buy a shithole money pit for 100g at 18, or wait til he’s 25 with a bigger income, and he can qualify and logistically set up a proper house hack. Learn some nuance for once
Man these folks be buying houses and becoming house poor . I have plenty of money to buy a house and still rent . They never talk about the random repairs , fees, taxes and maintenance. Buy a house when u ready , this guy is a fool . Every home is not an asset.
Hearing these stories let know my situation is a single rain 💧.
I really struggle with how Dave disregards taxes…..😮💨
I love Dave! He done told Johnathon how it is. I hope he listens. This plan works.
I love that Dave called renters “broke” while living off their rent payments.
He’s not wrong though. Just benefiting from it.
He didn’t call renters broke. He called this man broke! Y’all love to reach 😂
@@shachede6828exactly, such a reach. Also, I believe the goal is to benefit over others stupidity/mistakes.
About 12 years ago, were approved for a loan by a direct lender and almost bought a condo where we lived in So Cal. We had some credit card debt and didn't have much of a down payment, and then we discovered Ramsey and decided to wait and signed another 14 month lease. The condo we were originally looking at shot up within that year almost 100k! Just kept getting worse and we couldn't catch up. Most of our debt was gone, but needed the emergency fund and bigger down payment. Another year, another 100K up. After a few more years of this game, we gave up. The original condo we almost pulled the trigger on would have been a 1200 dollar payment including tax and and a not too bad homeowners association. The rent kept going up on our 1 bedroom apartment and in the end we were paying 1900 dollars. When it jumped up to 2100 for the next lease, we decided to bail. Hubby asked to go remote and his boss was well aware of how expensive Ca. was getting and didn't want to lose him as an employee so we moved (this was before the pandemic) We went to a place where the rent was almost half the cost and no income tax. My husband has the professional job and I'm a waitress, and can work anywhere. Anyway, we finally got out from behind the 8 ball, have a 6 month EF, and will have a huge down payment for a place as long as we stay out of So. California. The downside is we miss all our friends and family who are still there. I'm not great at making new friends, and the pandemic didn't help matters to try and socialize.
Sometimes I really regret not buying that condo when we had the chance. We would have been locked into that payment and my husbands raises would have counted for something instead of a lot of it going to rent raises, plus we would have still had our community. In the end though, I'm glad I found Ramsey. The steps really do work, just found them at a stupid time in life after making our foolish mistakes. Ramsey should be taught as young as possible!!!! 🙂
In high housing market areas DR's "advice" is disastrous. You'd have had 100K in equity after only a yr. as well as locked in affordable housing payments for the next 15-30yrs.
Meanwhile, your rent shot up so high you were totally priced out of the housing market in an area you truly wanted to live. Becoming "debt free" was, unfortunately, one of the most expensive & costly choices you've ever made.
Being overextended is never a good idea. Neither is a lot of credit card debt - any beyond what you can pay off w/in the month, really. But the blind one-size-fits-all zealotry isn't healthy, either.
@@caseymarion2494 Yup, learned that one the hard way. :( I feel bad for the younger couples who were trying to save up as well. Lot's of young families moving out of California leaving grandparents behind.
@@caseymarion2494 I made the same mistake. Waited way too long to buy a house thinking saving more would be the responsible thing to do. In the end, it cost me $100K more in mortgage debt.
puting 7k out of your 8k emergency saved is such horrible advice in todays time. And I get Dave wanting him to pay off his debt but I will never agree with not enjoying your life to some extent. Tommorows not promised. You will die miserable. There has to be a balance
You don't need money to be happy. If you need to spend money to be happy you don't know what happiness is.
Exactly split the difference and roll on
Why in the world is he even thinking about buying a house, right now?????
He said he's tired of renting. Basically sounds like a girl.
No house? He is only 30 and tired of renting? When, in a previous llife? Sell the car and get a cheap transportation one then work on getting on stable financial ground.
Exactly. When you have $80k in student loans, you should not be looking at a house at all, especially after coming off being laid off. They want to see continuous employment for 2 years anyway before you're going to get approved for a mortgage.
Last thing he should be thinking about.
That’s actually false. If it’s the same industry, as long as he has 2 years experience… doesn’t have to be continuous.. he’s fine
A 1k emergency fund is so freaking risky, especially in a poor job market.
Almost as risky as having debt
I'm a renter and definitely not broke. My best buddy is a millionaire and a renter as well. So much for your theory, Dave.
Dave’s calling him broke because he has lots of debts. He should keep renting until he pays off his debts, then save up for a house
I actually know several multimillionaires that rent. Some do own rentals, and some do not.
@@drtij_dzienz I get you're point but it stated "that's why you're still a renter!" My bff and I are still renters even if we are fine finacially. It assumes all renters have no options.
Dave didn’t say people are broke because they rent. He said this guy is a renter because he’s broke, ie buying a house while he has these debts isn’t a good financial option. No-one is having a go at renters.
Kill that debt! Once he feels the pain of paying on it he'll realize he truly is in debt
Very true! You need to feel the discomfort and sacrifice to truly understand and change.
Keep the 8k in case of emergency and pay off the car.
He is not going to do it. He has been knowing what to do this whole time and didn’t do it.
exactly he is going to go on with life
Hes got that 6 figure salary now, sounds like hes gonna be living that lifestyle now. I hope im wrong though 😂
What lifestyle? Six figures is not that much in this day and age. People need to raise their standards and stop accepting the numbers they were conditioned to think is "living high off the hog" when they were children, before inflation ate away at more than half a six figure salary value.
@@avamasqueradeGoodluck with that mindset. Come to Cali
You’ll be humble really quick if your not already living here.
If we take his gross pay into account, he has a debt to income ratio of $114,000/$130,000 = 87.6%.
If we take his assumed net pay of $91,000, then his DTI is $114,000/$91,000 = 125%
He didn't work for months either. That puts a gap in his two year income.
Why does he think about buying a house? No lender will give him a penny. And all this $130,000 pay talk is for a job he hasn't started yet.
"Two words that don't go together, like 'airline service.'" Genuinely laughed out loud at that!
If you make $130,000 a year living in the region of North Carolina, USA, you will be taxed $37,841. That means that your net pay will be $92,160 per year, or $7,680 per month.
Please tell me how you are going to pay off $70K per year!!! And live off of $22,160? Good lord.
Taxes don't exist in the Ramsey world
We should work to make taxes not exist in the real world too
As a single person, it is possible to live off 22k a year. But you have to be extremely frugal. And maybe live with someone to share expenses.
@@goodolchris4173 $100K- $30K std. deduction = $70K
$8K tax- $8K CTC (4 kids) = $0 Taxes
@@aolvaar8792 except the caller fits none of that equation. Std deduction is $13,850. What are you smoking?
I just have to say what a novel idea this is. Thsnks Dave i don't know why no one tried to not be broke!
He’s not gonna get out of debt. He want to spend money.
DO NOT empty you account to 1k.
DO NOT stop retirement.
All it takes is a broken leg. Your 1k will not do anything.
Isn't that what insurance is for?
I do kind of agree with this caller's logic. Keep the $8k, but start throwing everything else on the loans from this day forward.
You are a troll Jimmy. You come to the comments section here knowing damn well you are just coming to argue against the ramsey plan.
@@KatieBellino And sell the car. $5k is a good starter emergency fund.
@@Primitive_Code Yes, if his car is worth enough to pay the car off and buy something cheaper, that would be a good plan.
I just found your content this week. I should be able to start baby step two next month. I also started my business launching this month with no debt to start.
Some of these people think that when they drink a glass of water dry, that it’s going to fill itself up again!
Yeah after being laid off I'm not dropping my savings to 1k dollars. I'm a Ramsey fan but that's stupid. If he gets laid off or something else happens he's homeless
Yup
Only having one job is stupid.
0:20 - Yeah, I had a lot of "thank God I got laid off" moments (including recently). 🙂
In hindsight, layoff means that the company/team is diminishing and the work gets loaded onto the folks still there without a new incentive to work harder. So getting rehired means the new team is growing (hence they're hiring), and work gets spread out amongst the growing team. 👍
Always have 3 months. 1k is not enough. Pay off the debt definitely but shit happens
Not sure why people call but don't want to listen.
Monthly mortgage payments for buyers of new homes has DOUBLED in the last 4 years. Interest rates have DOUBLED as well over that same time frame. Buying a house ain’t the walk in the park that it used to be, Dave. You’re out of touch.
In all honesty...his advice is good. But had i listened to Dave exactly as the baby steps...buying a house now would be more difficult with the interest rates and prices. I purchased a home while going to grad school. Paid off all my consumer debt last month and am now on baby step 3. But buying a house now vs 5 years ago would be impossible. We also purchased a home that was affordable...which was a huuuge factor in actually being able to pay off the consumer debt.
It's already been said many times (even by Dave) that $1,000 saved is not nearly enough in 2023. I think it's time to update that number.
Its only purpose is to show you that you can actually save $1000.
My husband was laid off in December, just started back working May 1st, we never skipped a beat, he did get severance and unemployment but there towards the end it was gametying a bit scary. We have since paid down our mortgage to just under $48k from a refi last year and a $137k balance BS6, it can be done!!
Zero rush in his situation, just pay the car as planned and just pay off the student loan in 4 year, no eating out and no partying my ass, 130k is more than enough to enjoy his life reasonably
For each his own, but I'd rather be debt free in two years as recommended by Dave. The feeling of being debt-free is incredible once you are there. The two years after, enjoy it debt-free!
Thank you so much MYSTICFLIP for my SBA approval. I understand the terms and conditions of the loan disbursal and will make sure that I return the loan amount in the stipulated timeline. As I have already taken insurance for my new Business that I am planning to open in California LA. My business details and owner details have been submitted in the bank and I will be submitting the further details as well as and when the times comes.
He not going to follow the plan. 0% chance.
He could change nothing about his lifestyle from before his layoff and pay off roughly $50k a year. Lifestyle creep is the biggest danger, when he sees those paychecks come in and he sees his account balance go up so much.
I disagree with Dave on telling him he shouldn’t have that 3 month cushion. It’s a need he just got laid off.
He should have had three jobs not one.
When I pay over on my loans they just apply the overpayment to the next month invoice. That is a problem!
Following Dave's advice is an excellent way to stay a renter forever.
He makes a living off renting out property and doing his show, so naturally he doesn't want future homeowners. However, this guy is not ready for a mortgage...
Or not following his advice is a way to stay house poor.
@@lombardo141 but if he buys a house and then pays off his debt, he'll be house rich, wouldn't he?
If he pays it all off while he's still renting, he'll just be another broke renter. Not only that, with his DTI freed up, he would be more likely to overdo it on a house...in other words be house poor.
Think about what advice you'd give.
@@braceyourselvesfortruth2492 are you saying he is better off getting the house before paying off his current debt ?
Not following Dave's advice is an excellent way to ensure your future includes foreclosure.
Oh and by the way, if you have debt you simply don't DESERVE to own a home.
Whyd this guy even bother calling in? Agree or disagree with Dave he knew exactly what Dave was gonna say. Then he has the nerve to start having an attitude when Dave said the things he already knew Dave was gonna say. Some people are weird.
Great advice....I live in the UK and watch a lot of DR'S videos great advice. I do however suspect this guy will not follow DR'S advice! 🤦♂️
Not what the caller wanted to hear. He had other plans for the new doubled salary.
Most people do.
Agree, he didn't sound like he was planning to make any good financial decisions.
George made a good point. Only thing that helped him was the fact the loans have been in pause.
"Hey dave, I paid of all my debt like you told me to but now I have no savings and bills are due for $4,000, what should I do? "
Get another job
Sell the kids . Lol
You have to do what makes you more comfortable. Keep your 6monts emergency and start paying off debt. Just stay focused!
The only thing I'm not sure of in the strategy is pausing retirement savings. I don't know the caller's situation but if there's a good employer match leaving that money on the table can be expensive. A couple places I've been at did a 100% match and it was immediately vested. Taking $1000 out of that pool to pay of debt is costing you $2000. And if your argument is that the paid off loan reduces interest payment I agree, it will, but the money in your 401k will be earning interest too, and it's got that $1000 head start on day 1.
If there's no employer match, or it's a low percentage, then it's a clearer decision to pay off the debt. That's what I did with a chunk of money that I could have invested instead of using it to pay off my last debt (mortgage). Never regretted that once.
“Punch the thing in the freaking face until it dies” 😅 Dave referring to student loans.
That’s how I feel about my student loans. It gets me angrier than other debt….it’s not like we will actually get debt forgiveness. So let’s get done with this.
You can tell by his tone saying mmm hmmm he fully expected his student loans to be forgiven 😒
That's an assumption. Dave hardly gave him a chance to get a word in edgewise.
Glad to hear Dave's apprentice chime in about student loans interest resuming soon. Caller probably forgot all about that.
Reminds me the shark attack video I watched yesterday sally Mae had a hold of that dude’s leg and it feels like he’s kicking a building
So… with 130k salary his take home is 91k Dave wants him to put 70k a year towards debt…. So this guy is supposed to live off 22% of his take home pay…. Seriously? That’s the plan. His rent is probably more than 20k in a year
Tons of people live on 24k a year... he can do it for just 1.
@SpoonHurler
Depends on where he lives.
Dave said put 65k towards it. The guy has 7k he needs to put on it. He only owes 107k. So really he only needs 54k a year towards it and he's done. Dave is correct, this is a two year endeavor...at his current pay. Even after taxes he's netting 90k. He'll have 45k to live on after paying debt.
It's certainly doable, but you will be living on nothing more than the bare necessities.
There is not enough information for Dave to tell him how much to put towards his debt a month. Reminds me of the school math word problems. Dave is not a financial planner only an advisor and you can definitely tell!
I appreciate the tough love mentality. I'm working on my last $9500 in debt (down from $80k). My husband and I are trying to save for a house in a very expensive area. Thanks for all the info Ramsey team!
Are you saving whilst paying off the debt? I Am in a similar situation to you and confused how to do both.
@@joshallison2966 I paid off a bunch of the debt when my condo sold before we got married. That hurt to see my equity gone over night.The rest I'm paying off at about $1k/month. I'm saving small amounts every month just because it helps me stay motivated seeing both savings and debt going in the right direction. We won't be able to buy for a couple of years. I was a total bonehead with money. Never again.
Follow the baby steps to the letter. Full stop.
Clear those nickel out that sofa …. Today
I'm single for lifer, and at this point, I don't think buying a house will ever be better than renting. $700 for rent and an 800 sf house in the area is $200-$250k. Even with aggressive inflation assumptions, itd still take 20 years to break even.
go for it !!!!! good advise , you can do it !
where are all these jobs paying $130k? all these callers make it sound like it's a typical salary or something.
I love people with 6+ figures who can not manage their money to save their life and are up at night crying and worrying about money. Here I am clearing 35K a year with more cash assets, zero student debt and more money in Retirment than they do.
I wonder what Ramsey thinks of Van-Lifers. They definitely save a LOT on rent/mortgage, utilities, property tax, etc.
I have a feeling more people will begin to live this way.
Of course, it'll be ideal if you outright OWN the vehicle you'll be living in, so you don't risk losing it to a repo man.
The streets are free, and if you have a job, you'll get to keep A LOT MORE of your money that would otherwise go to some stupid bills.
You go live in a van. Come back in a year and tell us how it worked out.
@@jodylarson4697If you're employed and live in a city where you know the areas and neighborhoods well, it will be a lot easier than if you're ever-moving, let alone unemployed. You can use your van to commute to work, and when you're done, you can find a neighborhood where there's lots of cars on the side of the road or is sparsely populated. You can also pull into urban prairies with dense cover or pull over in a place where no one will question why you're there.
At 2.40 That "Okay . . ." Was me lol I'm exactly in this guys position. Just got a good paying job after literally four years of looking and making peanuts. And now I want to do EVERYTHING ALL AT ONCE! But . . . I need to take a breath, and start working the baby steps. XD
TOTALLY Sympathize with the guy though.
They have the wrong title to this video. It should accurately say "That's why yera renter"
Can’t blame someone for being nervous about a $1k emergency fund after experiencing a layoff. Would’ve been helpful to point out that the caller should be just as nervous about adding a mortgage to the existing debt - too high of a DTI ratio.
$1000 IS NOT ENOUGH OF AN EMERGENCY FUND FOR THE AVERAGE PERSON!!! It needs to be, at minimum for a starter fund of 1-2 months. Also, DO NOT stop adding to your retirment. Add the minimum to get your full match. That 100% returns beats any interest you will pay.
The most precious commodity is time. Don't waste it chasing the dollar.