Hey Ben, thanks for getting this out to more people! There are tons of perspectives on personal finance but the Ramsey method is infamous. Time to work on my beard tho 😭😭
Pay all your bills with credit cards. Pay them off in full every month. Enjoy cash back, travel points and sign up bonuses. Only a dummy would pay everything with cash. Its called financial responsibility.
@@hockey1freak No, Dave's advice is sound especially if you want to be debt free. As for being dumb or a high schooler- we leave that to your parochial comment...
I think there are many people who cannot handle debt. But after hearing him try to explain how credit scores are calculated trying to say you HAVE TO be in debt, I realize it has been a long time since I've had this much visceral rage. In the tiktok (which apparently was too much information for him to keep up with) the point is specifically made that you DO NOT have to be in debt to build a credit score as long as you pay down the card every month. He listened to what is said, and immediately ignored what was said and started lying about how your credit score is calculated.
There's a reason many people call him Dinosaur Dave. A lot of his advice worked in the 90s, but it needs to be sorely updated for the current economic situation.
Honestly Dave Ramsey has solid advice but I disagree when he talks about credit. Credit Shifu was the first channel I’ve watched before I had my first credit card in 2018. I have 8 different cards, never carried a balance nor missed a payment. My score is 799 as of today
@@Kingwboxing Bragging that you have a bank statement while watching Credit Shifu. You must be a proud sob. I could buy you and your entire family on discount
@@Polostar79 Count on it. I have so many co-workers that are misguided by Dave. The first thing they tell me is that credit cards are awful, avoid them like the plague. No, the card is not the problem, lack of responsibility and denial is. Keep it within your means and pay it off every month and you will have no problem.
I listened to Dave Ramsay when I was making 40-50K and was 30K in CC debt. Following his advice helped me out a lot. Now in days I don't follow much of his advice, I'm earning six figures. I think his advice is for folks who are in a lower tax bracket and are in over their heads with debt. Channels like this, Jeremy, etc have helped me understand that CC's aren't bad as long as they're under control.
I think you made a great point comparing average housing prices to average US incomes. This is the ultimate litmus test for “is this advice good for the average person” which the Ramsey method aims to be.
Wouldn’t be surprised if most of Dave’s audience lives in the South where housing is still cheap. It’s ok advice for now but even in the South that’s becoming impossible.
@@hockey1freak even in the south nobody buys houses cash we don't make bloated new York or California wages here so it dosent happen. Sure 60k can get you a nice house and even property but you need a good credit score Ramsay's way is for people who have no debt and have very small monthly bills.
Thanks for breaking this down. Dave Ramsey's advice IS out of touch. He expects everyone to be rich. Mortgage debt isn't terrible. This is what's going through my mind: what's better? Paying off a house for $2500 each year, or paying rent from $2000, raising by 5% every year? I rather pay more interest upfront to buy a house, and have a fixed payment, WITH a house that has appreciated in value.
I remember this dude making another vid about some lady that put her whole wedding on her card to get cash back. He said that means you will spend more than you actually want because that is not really your money and that the cash back is useless because it is only 2%. They always talk about being frugal and saving money in every place you can, but when you don't do it their way, it is bad.
The way this guy was so condescending with his reactions while watching the TikTok was all I needed to see. He's so out of touch and it just feeds into the idea that "credit cards are bad" which so many people have ingrained from their parents way of thinking. Thanks for breaking this down and setting people straight.
I would first question his and his wife's income before I take his advice. I live in San Diego and yes I do own a house, but his advice is ridiculous and unrealistic for medium to lower income Americans.
His income was garbage and he built his empire following his methods. It WAS realistic. It is very difficult to completely follow it now but still possible for some. Reality is somewhere between both ideologies
@@Spimmick yeah I can see that, and would actually not debate that. I think his ideology is the 1 to 5%. Not sure if his method still applies to today's time. I think it depends where you live because the West Coast is way different from Southern States.
I AM currently debt-free. AND I have a credit score! Gasp!!! I have been off the credit score "grid" for years. I've overpaid on insurance rates, had to pay deposits, and, yes, I paid for my SUV, phones, etc. in cash. Meanwhile, as I saved up the cash to buy things, I could have been investing it for my retirement. My son also had to pay a huge deposit for his 1st apartment, in addition to the usual 1st, last, & damage deposit, because he didn't have a credit score. NOW, I've learned about building my credit & using credit cards, which actually earns me more money & protections I previously didn't have. I wish I had done this years ago!!! Also, in order to save money to buy my SUV in cash, I worked 70+ hrs/wk, which left me exhausted, malnourished, and missing out on spending precious time with family, especially my mom before she died. I missed my grandkids' birthdays & holidays. My house is paid off, so I also didn't have a mortgage or rent to pay. Plus, I have a decent income. They're expecting people to pick up extra jobs to save all this money, but who's raising their kids when they're working so much??? What is it doing to people's physical and mental health? I worked so much because I had to due to nursing shortages. Not because I chose to. Also, with the massive increases in rent, who can actually save money???
It’s for views. It isn’t misinformation, they are appealing to poor people who spend more than they make. You don’t give an addict a syringe and hope he don’t use it.
I got into credit card trouble in my 20s and swore off credit cards when I finally paid it all back. Debit cards for everything until about 5 years ago. Best thing I ever did was use a credit card like a debit card and earn points for what I already spent anyway. Now I'm starting to learn and play the points game thanks to people like you. Things are so expensive so earning airline miles from buying the gas in my medical courier job makes sense. I fill up my tank every day. How many points would I lose using a debit card
You need a credit score for even phone lines nowadays 🥴 when i was 18 my mom tried to get me on my own bill & i coupdnt be able to bc I DIDNT HAVE CREDIT. The last time we were looking for a house TO RENT they asked for a credit check. And the average price of homes where i live is $800k & the average renting price is $2k & up. How am i supposed to save so much to buy?
My rent was $1,200 my mortgage is $711. If I kept paying that high rent I'd never save enough to buy a house. Now I can pay my mortgage just fine and I pay a little more per month to pay my house off in 15 years on a 30 year mortgage. Also a no credit score mortgage is going to be way higher.
Dave Ramsey got wealthy by selling a very simple, yet sub-optimal plan. His show is a conduit to deliver advertisements for his paid advisors, sell his books, and promote his church-based financial education classes. You know why he sells his classes to churches and not direct to the poors? Because the churches have all the money.
He’s a typical Boomer that made the same mistakes young people make today yet because he was able to get wealthy by selling common sense to idiots he believes he’s reinvented the wheel.
Thank you for this video! I've been listening to Dave Ramsey recently and felt it was unrealistic for me at least. I have 4 kids and I'm not married. Most of the people who pay cash for everything seem to be childless and have dual incomes. It left me feeling discouraged. I use credit cards and pay off my balance monthly- self control is key. Thanks for making me feel normal.
This! When I hear financial advice and it starts out “we saved, we payed off we this we that, I click off. The advice doesn’t fit for single people. Especially ones with a kid(s).
I started listening to Ramsey recently and yup... work 9-5 and hit that sweet spot average income of 50-60k but still in trouble? Ramsey: ALL YOUR FAULT get 2 more jobs and stop sleeping!
They are absolutely crazy when it comes to the credit card stuff. Like, so unrealistic. However, it needs to be said that the vast majority of people misuse credit cards. Personal finance is mostly behavior and has very little to do with actual math.
These people are ridiculous. It is no advice at all to tell someone that they should basically increase their income 3 or 4 fold. Like, if you paid off a house in 26 months, even if that house was only 260k, it means that you make enough to pay 10k a month toward your house. That is almost 2.5 times the average income going to only your house. Like, who has that kind of money? Their advice is pretty much....make more money so you can buy everything in cash. It's actually dumb.
Dave's advice literally costs his listeners hundreds of thousands of dollars if not millions in retirement by having them treat home mortgages like high interest reddit card debt.
I could respect what this guy was saying if these were his own beliefs but the problem is all he does is regurgitate everything Dave Ramsey says. It almost makes you question whether he really believes what he’s saying.
No, obviously, he doesn't believe what he is saying. He is paid by Dave Ramsey to think the way Dave Ramsey thinks. The day he gets out of line and uses critical thought and logic is the day Dave will fire him.
The truth is, our generation as millennials was lied to. We were told to go to college, but most of us just ended up in debt. We were told to work harder, even though we can't make enough money against inflation. $400,000 for a house is absolutely impossible to obtain for most of us. Heck, most of us are living month to month. Generations X and boomers have NO idea what it's like to toil at work for 40+hr/week and have nothing to show for it
I got almost half a years of groceries for 10% off because of credit cards if I were to use a debit card that wouldn't of happened. I also was able to get my car towed for almost half off anywhere around me was charging because of my freedom flex so there's plenty of benefits to credit cards that help save money that Dave Ramseys show don't ever talk about.
Dave Ramsey is for simpletons. Hate to say it, but that's his audience. He forgets inflation and investment income exists and tries to convince people who are way underwater on collections to pay those in full while working 2-3 jobs while driving the same used car for 20 years. It's easy to preach that advice while profiting from real estate, including obvious rent payments from tenants, as well as cycling out younger males to appear on his show to make him seem like he's in touch. Most people in debt should either reach out to a debt collection agency or refinance debt,, worse case go bankrupt. Notice he doesn't appear on the show much anymore? To clarify, the guy speaking isn't Dave Ramsey.
Dave Ramsey did a study on 10000 millionaires in America, those who listen to him, and those who’ve never heard of him. In his study he found that most millionaires in America (close to 90%) follow very similar paths: they stay out of debt, have an emergency fund, pay off their house within 7-8 years, and safe aggressively. Btw 95% of them started from nothing, and did not inherit their money. All those things that millionaires have in common are what Dave Ramsey teaches as well. Doesn’t seem like simpleton advice to me. More like winner’s advice.
I might put it a bit differently. Dave’s approach is based on minimizing behavioral risk, in that context simplicity is a virtue. Yes he ignores inflation and I do take issues with a lot of his advice but his goal is to avoid the worst outcome not create the best. Finally his company is obviously doing some succession transition where instead of Dave telling people the same thing every day a group of people do it. Part of it is they are younger and more relatable, part of it is that Dave won’t be at the company forever.
Dave Ramsey and all his Minions live in the middle of nowhere Tennessee. He has no concept of what its like to live in a large city. He doesn't understand those challenges and balances you have to do. What works around Nashville will never work in San Francisco. I think his ideas are fine for people in massive debt, but you out grow his ideas real quick when you have a solid understanding of how to handle money.
they call it the baby steps. great for babies. some people never get past that stage either. but I would hope most adults could do better than what Ramsey assumes they will.
Don't you want to make all of your investments with a Dave Ramsey approved financial provider, buy insurance from a Dave Ramsey approved agent, and generally live your life according to the books of Ramsey?
Great video! Dave needs to learn the concepts of opportunity cost and inflation discounting. You hit the nail when you talked about how the mortgage payment actually reduces over time due to inflation. Imagine how much you can earn on your investment over 15 years if you had 400k in cash. Way more than what you would pay on mortgage interest!
Dave Ramsey puts out a message that SOME people really need to hear and take on board because those types of people are unable to exercise responsibility and self control with finances which is why they got themselves into thousands of dollars of debt in the first place. I used to appreciate his approach and took his approach for a while but I grew out of that and now I use credit cards for everything and I absolutely never carry a balance. His advice is for people that are a few steps behind myself or us who watch your videos and are more financially literate.
I bought my first house at 21 a little over 2 years ago with an fha loan and had I not built my credit up with credit cards as well as an auto loan there is no way I would have gotten approved and and now my house is literally worth double what I payed for it. Huge thanks to guys like you and sebby for teaching young guys like me credit game. If it wasn’t for you guys I definitely wouldn’t be as well off.
During days like these, anyone who talks shade on credit cards rather than teaching responsible methods of handling accounts is outdated with little credibility.
I am an immigrant to this country. After few months of living here I realized that paying with cash is the dumbest idea: 1) You lose pennies in change 2) You don’t get anything in return. Using a debit card eliminates disadvantage number 1 but you still don’t get anything in return. Even if you don’t want to use the credit score for anything, using a simple credit card such as Discover is way better than cash. That guy seems not to be very smart.
Dave Ramsey's stuff is like riding your bike with training wheels. If you're in debt or a complete novice it's good advice. You outgrow his advice once you are out of debt and begin to do your own research. Plus I really don't like how he tries to push his world view on his viewers. If you are a conservative, or a liberal for that matter good for you. I'm not here for that. I look at financial channels and read about personal finance for just that. Personal finance. If you want to preach about your philosophies, write a book or start another channel focused on those things. It's my biggest pet peeve with Ramsey. I don't know why they feel the need to single out people on Tik Tok or any other medium. IMO it's just in poor taste.
Honestly Ramsey is like AA for debt. His audience is comprised largely of people who have fallen into the traps built into credit cards. I wish his company would just point out that you don’t need debt and that it complicated his strict budgeting in an unhelpful way. Now none of this justifies in my opinion telling people to not get a cc. They could put the cell phone bill on it which would make it budget friendly. I was able to get a home mortgage with a single cc in my credit history.
Dave Ramsey and team so out of touch. The only people that are still following his methods are people who are financially irresponsible, and have no idea how to manage money. There’s always going to be those people so that’s why he’s still in business and there will be people who still listen. They think everyone can only buy a house or car one way and that their way is the only correct way. lmao There’s no way an average family’s income can afford to do all these the same year without a mortgage or loan.
That’s because this video lies to you. Dave never says to only pay cash for your first house. (Investment properties are different). Put down 10%-20% (which is reasonable) and don’t let it be more than 25% of your income. The reason why is he doesn’t want people to be living paycheck to paycheck like 61% of Americans are. It really is common sense from his perspective.
I found out about Dave Ramsey in 2015 and followed him for years after that. He taught me a lot and I was able to get out of consumer debt. But he is a little outdated with his beliefs about credit and credit scores. He is completely against credit partly because of his experience of losing all he had when he was younger. Check out his story if you care to😊
Responsible use of credit cards helped me to start taking control of my finances. I now have 7+ months expenses in a high yield account, paid my car off 3 years early, and fully settle my credit card accounts automatically each month. Dave is an extremist who fearmongers his audience when he was, honestly, an idiot with debt in his youth....paying off debts with other debts🙄
It’s funny, around the time you posted this video, I had the Dave Ramsey team reach out to me and try to take down one of my videos. From the look of this, looks like they enjoy dishing it out, but can’t take it. I’m a former Dave Ramsey financial coach and I know his material well. Lots of gaps in his logic. When I dared to call it out, I got contacted by the Ramsey team. Ridiculous.
I would like to thank you for all your videos! You are the only person I watch for my next card on that note I also love daniels videos he’s a bright individual that’s help me with better financial decisions. Dave Ramseys advice is so unrealistic that does not benefit an average American like myself. Thank once again please don’t stop making videos!
Dave Ramsey’s advice is so antiquated and they make their money off of giving advice to those who are in dire situations while playing the “Good Christian” card.
I made $145k last year and in Cali I cannot afford no damn 15 year fixed mortgage with the price of these homes on the Dave Ramsey method! Straight bullshit
The issue is the idea of the 'psychology of money' Ramsey's methods are all about 'reteaching yourself if you are bad with money' and for that audience it's completely on brand, and that audience needs to avoid temptation, it's the "Credit Cards Anonymous" idea of removing yourself. They love to quote stats like 87% of people this, or 2/3 of people this. 4 out of 10 people this The brand doesn't make sense though for that other 13%, that other 1/3, the other 6 out of 10 who can profit CC churning, who can use debt to invest successfully, etc. Dave Ramsey advice boils down to "You're in debt so you're dumb, and if you're dumb you better listen to me, because I used to be dumb, and now I'm not in debt anymore so I'm smart" And guess what that works for the 'dumb', but it's never one size fits all.
A pertinent example: I had an aunt and uncle that were pretty well off, they didn't do credit cards and bought their vehicles in cash. They paid their rent out of checking every month. No problem so far. But when it came time to buy a house, they had major problems because their credit was just garbage. It's not that they had BAD credit, they just had NO credit.
You don't wanna know my reaction to your reaction to his reaction to your friend's reaction... Honestly like alcohol if you're an alcoholic don't drink. I do agree with the Ramseys about spending more when you use plastic (including debit cards). So I only charge utility bills for everything else there cash. That way I don't have to do the archaic manual underwriting.
exactly this. while some people can be excellent at avoiding the increased spending, majority of credit card holders do overspending vs if they paid with a debit card or cash. There’s actual human psychology behind it, and the credit card companies are fully aware of this. They make money off of us whether we carry a balance of pay it off in full.
This is so very frustrating to me. Four years ago I had zero credit history because I grew up in a house where, despite no Dave Ramsey around, we thought that credit and credit cards were the devil. I paid for everything with my debit card, got zero cash back or points and would overdraft regularly because I didn't have a cushion. Then I got my partner to add me as an AU on his card. Then I got the Discover it and the Chase Freedom. A year and a half later, my credit score was in the low 700s and I got a mortgage. That house has appreciated over $200K, I refi'd last year down to 3.25 and my credit score is in the 760s. I have 12 cards now and I've never paid any interest. In Washington State, where I live, if you made even $100K a year, you are never, ever going to save up enough to put like 50% down on a 15-year mortgage. You'll be dead before that happens. These people act like it's the 1950s, when housing cost like one years' salary, not five! Dave Ramsey's advice is ONLY good for people who treat credit card limits like additional income and spend like crazy. Anything above and beyond that, be it investing or building credit, is total BS from him.
No matter what the topic may be...this is another typical example of "show hosts" infighting. You know...my dog is bigger than your dog...blah, blah, blah
You're supposed to rent your whole life and then buy a house in cash at age 65. In other words, do exactly what Dave DIDN'T. Gotta realize, he's better than us and transcends us. That's his idiotic view, I don't endorse it.
Im older just over 50 and i never had a credit card until 4 months ago, and now i have 3 anyway i was raised with the "credit cards are for people who can't buy things with their own money" kind of thinking i own my own house in California and its not a cheap house and it is totally paid for except for property taxes and crap like that. Obviously prices have skyrocketed in the last 10 years in particular the last few years have been nuts. I think the strategy of scraping by is not exactly a glamorous lifestyle i lived in a travel trailer on my friends property for 5 years and made good money so i saved and saved is not for everyone and if i was married it would have been miserable but i bought my house outright so it can be done but its not for everyone and maybe a nightmare if you have a family and aren't down with being a hermit
What’s more feasible? Saving up for buying a home in cash during record high inflation? Or taking out a mortgage with a low interest rate? Having a good credit score is how the middle class is able to afford homes nowadays. Telling people to give the middle finger to their FICO score is such bad advice
It's tough to get car insurance w/o a FICO score. at the very least you severely limit the competition, which could lead to much increased premiums for the same coverage... naturally Dave Ramsey has a paid partner that will provide insurance quotes to people w/o FICO scores. Dave Ramsey has a pattern of behavior of encouraging people to do questionable financial things that will ultimately benefit himself.
Go rewatch some Ramsey stuff about buying a house. He says to put down 10-20%, not buy it outright (reasonable.) The reason why he says no more than 25% of your income is so you aren’t living paycheck to paycheck every month (like 61% of Americans.) if you lower your biggest expense, you’d have more money. Who would have thought?
@@dominickgalinis3210 that all makes sense if you didn't have to pay rent. I'd rather pay a $1500 mortgage payment than a $1500 rent payment, even if it was a 30 year loan. You can always refinance later or pay it off early... at the end of a 30 year mortgage that house payment will look awfully cheap due to inflation. Just because Dave got greedy, leveraged up on properties and then went broke in the bust doesn't mean his advice now is the best. one size fits all advice doesn't fit everyone very well.
@@dominickgalinis3210 except in some market 25% of your income is not realistic, if you want to live in an area where you work and have decent schools for your kids. Otherwise, people are looking at 1 to 2 hour commutes by car each way. That is not a life. Rents are upwards $2800 a month with a good credit score and three months rent pre-paid. I think teaching people not to be fearful of financial instruments but understand them is important and Ramsey may help many in certain parts of the country but he isn’t teaching them about finance.
The only people that should follow Dave Ramsey's advice are people who know that they are not financial disciplined, to keep them out of debt. Paying off a low interest mtg vs investing that money cost you money in the long run as the return on investment should be more than the interest on the mortgage. using cash vs using credit and paying it off with the cash each month costs you money in lost cash back. Credit scores are used for more than housing and debt. Most insurance companies now partially base your payment on your credit score, crazy as that sounds it's true.
Strongly polarizing views gets clicks and grabs eyeballs. I'm pretty sure Dave Ramsey has some sort of course that teaches you to get out of debt, but CHARGES you to do so. A bit contradictory, I'd say.
My net worth went up 30% in the last year because of the home I bought with a 30 year mortgage. I used to follow Dave Ramsay, but if I hadn’t changed my philosophy I wouldn’t be able to afford a home in Austin where I wanted even with a 6 figure salary and no other debt. His plan might work in the middle of nowhere where everything is cheap, not in many places.
Most of Dave Ramsey's advice is 25yrs past its expiration date. In modern era of LOW mortgage rates and high inflation it is DUMB to pay cash for home or pay off a mortgage accelerated. Advice to keep people poor and in rentals all their life. Also dumb to pay cash for any newer over 10k when loan rates are under 5%. One of the best ways to insulate against high inflation is acquiring assets with low rate borrowed money. Thats in complete contrast to Daves bad advice. Btw, ALL Billionaires have TONS of debt it is how they've built their wealth, with DEBT. They need to educate about bad debt vs GOOD debt.
Most people at the same place dave is at financially don’t understand people don’t make livable wages. Credit is key if you need things in modern society
Why the hell would I pay cash for a car when I can get a car loan for for .9% or less and leave that cash invested earning 5% and up. Why the hell would I throw away 4.1% earning.
@Wajz3 It's because we have a good credit score. My car payment is under 250 a month, and the reason it's so low isn't because I put up a large down-payment. It's because of my excellent credit history. Build credit and you can get much lower interest rates and end up saving a lot of money.
I have some mixed feelings on this one, I only somewhat get where he's coming from, it seems like he strongly believes in his methodology but he's a bit aggressive about it though. I think his way of a mortgage is just another option if you're in that situation, if that's what you want to do but he definitely fails to realize our side of the story though as well, more than likely because he's part of Dave Ramsey and that's their brand. As someone who's almost debt free and continuing to make progress while opening more card's myself, that's about all I can give him.
I question many of the debt free scream calls. We paid off 400K in 18 months earning 70K a year. Huh? BTW, reviews say the fees and interest rates at Churchill are a bit higher than other companies which makes sense.
Thats too much for the average family, $2k a month on a 15 year to be 1/4 of your take home pay, they would need $8k after taxes. But before taxes/fica/401k/health insurance/hsa/etc you would need to make $12k a month × 12 months = $144k Gross salary for a family, while the average American family makes half of that.
that's his target audience. I like personal finance books and have read several, including his. His plan is simple, too simple, but I can see that it would appeal to a certain group of people that have trouble making good financial decisions. What really turns me off is his arrogance- he talks like his advice is direct from God and everything else isn't God's plan. That's pretty out there.
I am a credit lover like the next guy in this channel. However, I think the Dave Ramsey method is for the majority of people that cannot control themselves and/or carry month to month balance. Thanks to them we can enjoy great perks from our credit cards. I do believe those people most likely will benefit from his method because not everybody has the common sense of self control to carry a credit card.
What Ramsey says is true you’ll spend more money with credit cards points will not make you rich but I do not want to have to do double work and overpay on many thing just because I refused to used a credit card. To get an apartment you need to call to see who accepts you and get more paperwork or give higher deposit same to rent cars, hotels phone services insurance. And get ready to get a no score mortgage you’ll have to find the receipt of the last underwear you bought.
For all the times I've listened to Dave, I never heard him say that you should save up $400,000 for a house. He talks about mortgages. I do think you should have a credit score because various companies judge you by it and you can get better rates. But too many people use a credit card as it was someone else's money and they wouldn't have to pay it back. And it would be nice if a man could speak without being interrupted by commentary every five words.
Old?! He’s only 34, Ben! Holy moly. I agree that there isn’t or shouldn’t be a one-size fits all method. That said, do you really need 15 cards? Is that really worth it?
Daniel never said anything about being in debt... dave ramsey over leveraged and went bankrupt with housing in early 2000s thats why he hates debt because he made a mistake. Thats why love watching credit shifu and graham with financial videos.
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Hey Ben, thanks for getting this out to more people! There are tons of perspectives on personal finance but the Ramsey method is infamous. Time to work on my beard tho 😭😭
beards are unhygienic just like these hicks’ ignorance
Pay all your bills with credit cards. Pay them off in full every month. Enjoy cash back, travel points and sign up bonuses. Only a dummy would pay everything with cash. Its called financial responsibility.
That’s kinda Dave’s audience though.. dummies or high schoolers
Yea youre right. But as we see in this country most ppl arent responsible with their finances hence why so many ppl are broke.
@@hockey1freak No, Dave's advice is sound especially if you want to be debt free. As for being dumb or a high schooler- we leave that to your parochial comment...
@@oreally8605 dont be mad men, the comment was a litle hard but was the truth
@@oreally8605 In what sense are you not debt free when you pay your credit cards off in full every month?
I think there are many people who cannot handle debt. But after hearing him try to explain how credit scores are calculated trying to say you HAVE TO be in debt, I realize it has been a long time since I've had this much visceral rage. In the tiktok (which apparently was too much information for him to keep up with) the point is specifically made that you DO NOT have to be in debt to build a credit score as long as you pay down the card every month. He listened to what is said, and immediately ignored what was said and started lying about how your credit score is calculated.
There's a reason many people call him Dinosaur Dave. A lot of his advice worked in the 90s, but it needs to be sorely updated for the current economic situation.
Honestly Dave Ramsey has solid advice but I disagree when he talks about credit.
Credit Shifu was the first channel I’ve watched before I had my first credit card in 2018.
I have 8 different cards, never carried a balance nor missed a payment.
My score is 799 as of today
You're poor af, boy
@@911eVoX What's my bank statement looking like? Let me know. 🤡
Wow a 799 credit score, what a winner. Something to be truly proud of. The women must be throwing themselves at you
@@Kingwboxing Bragging that you have a bank statement while watching Credit Shifu. You must be a proud sob. I could buy you and your entire family on discount
@@911eVoX you’re a clown get of thread. 🤡 😂
They always conflate credit card usage with carrying debt. I believe it's intentional.
It absolutely is intentional.
@@Polostar79
Count on it. I have so many co-workers that are misguided by Dave. The first thing they tell me is that credit cards are awful, avoid them like the plague. No, the card is not the problem, lack of responsibility and denial is. Keep it within your means and pay it off every month and you will have no problem.
I listened to Dave Ramsay when I was making 40-50K and was 30K in CC debt. Following his advice helped me out a lot. Now in days I don't follow much of his advice, I'm earning six figures. I think his advice is for folks who are in a lower tax bracket and are in over their heads with debt. Channels like this, Jeremy, etc have helped me understand that CC's aren't bad as long as they're under control.
I think you made a great point comparing average housing prices to average US incomes. This is the ultimate litmus test for “is this advice good for the average person” which the Ramsey method aims to be.
Wouldn’t be surprised if most of Dave’s audience lives in the South where housing is still cheap. It’s ok advice for now but even in the South that’s becoming impossible.
@@hockey1freak even in the south nobody buys houses cash we don't make bloated new York or California wages here so it dosent happen. Sure 60k can get you a nice house and even property but you need a good credit score Ramsay's way is for people who have no debt and have very small monthly bills.
@@MrHooters123 Ask someone in new york how much a studio apartment is? lolol
Previous generations had the privilege to be able to buy houses working 40hr/week
@@blakefinn30Yeah that will never happen again.
I just love how you roasted him, with very smart and straightforward logic you destroyed his biased claims
Thanks for breaking this down. Dave Ramsey's advice IS out of touch. He expects everyone to be rich. Mortgage debt isn't terrible. This is what's going through my mind: what's better? Paying off a house for $2500 each year, or paying rent from $2000, raising by 5% every year? I rather pay more interest upfront to buy a house, and have a fixed payment, WITH a house that has appreciated in value.
It would take the average person 20yrs or more to save up 400k and by the time they did the house they wanted to buy would cost 800k.
I remember this dude making another vid about some lady that put her whole wedding on her card to get cash back. He said that means you will spend more than you actually want because that is not really your money and that the cash back is useless because it is only 2%. They always talk about being frugal and saving money in every place you can, but when you don't do it their way, it is bad.
The way this guy was so condescending with his reactions while watching the TikTok was all I needed to see. He's so out of touch and it just feeds into the idea that "credit cards are bad" which so many people have ingrained from their parents way of thinking. Thanks for breaking this down and setting people straight.
My parents were like that, but they were products of the Great Depression. Events like that tend to distort one’s thinking.
Instead of renting from a landlord, rent from the bank. That’s essentially what mortgage interest is. 🤦🏾♂️
I would first question his and his wife's income before I take his advice. I live in San Diego and yes I do own a house, but his advice is ridiculous and unrealistic for medium to lower income Americans.
His income was garbage and he built his empire following his methods. It WAS realistic. It is very difficult to completely follow it now but still possible for some. Reality is somewhere between both ideologies
@@Spimmick yeah I can see that, and would actually not debate that. I think his ideology is the 1 to 5%. Not sure if his method still applies to today's time. I think it depends where you live because the West Coast is way different from Southern States.
@@1882dmac agreed. People could survive on a single source of income back then. Not the case nowadays
I AM currently debt-free. AND I have a credit score! Gasp!!! I have been off the credit score "grid" for years. I've overpaid on insurance rates, had to pay deposits, and, yes, I paid for my SUV, phones, etc. in cash. Meanwhile, as I saved up the cash to buy things, I could have been investing it for my retirement. My son also had to pay a huge deposit for his 1st apartment, in addition to the usual 1st, last, & damage deposit, because he didn't have a credit score. NOW, I've learned about building my credit & using credit cards, which actually earns me more money & protections I previously didn't have. I wish I had done this years ago!!!
Also, in order to save money to buy my SUV in cash, I worked 70+ hrs/wk, which left me exhausted, malnourished, and missing out on spending precious time with family, especially my mom before she died. I missed my grandkids' birthdays & holidays. My house is paid off, so I also didn't have a mortgage or rent to pay. Plus, I have a decent income. They're expecting people to pick up extra jobs to save all this money, but who's raising their kids when they're working so much??? What is it doing to people's physical and mental health? I worked so much because I had to due to nursing shortages. Not because I chose to. Also, with the massive increases in rent, who can actually save money???
By the time it would take me to save up 400,000 for a house..the houses would be 700,000 minimum! haha wow.
Omg that is so true. I saw a video of a couple saving up for a condo that was 500k. By that time it was 900k.
Ramsey doesn't say buy a house in full with cash. This video is a little misleading. They preach saving 10-15% for a down payment
@@Spimmick go back to Daves show, you are not wanted!
@@docholliday4546 shhh the grown ups are talking
@@Spimmick hahahah!!! Boy I have hair on my ass older than you!!!!
Really liked this video. Actually kinda makes me upset that they called this "misinformation" because its clearly not.
It’s for views. It isn’t misinformation, they are appealing to poor people who spend more than they make. You don’t give an addict a syringe and hope he don’t use it.
I got into credit card trouble in my 20s and swore off credit cards when I finally paid it all back. Debit cards for everything until about 5 years ago. Best thing I ever did was use a credit card like a debit card and earn points for what I already spent anyway. Now I'm starting to learn and play the points game thanks to people like you. Things are so expensive so earning airline miles from buying the gas in my medical courier job makes sense. I fill up my tank every day. How many points would I lose using a debit card
You need a credit score for even phone lines nowadays 🥴 when i was 18 my mom tried to get me on my own bill & i coupdnt be able to bc I DIDNT HAVE CREDIT.
The last time we were looking for a house TO RENT they asked for a credit check.
And the average price of homes where i live is $800k & the average renting price is $2k & up. How am i supposed to save so much to buy?
My rent was $1,200 my mortgage is $711. If I kept paying that high rent I'd never save enough to buy a house. Now I can pay my mortgage just fine and I pay a little more per month to pay my house off in 15 years on a 30 year mortgage.
Also a no credit score mortgage is going to be way higher.
The issue is that the house price seems to appreciate faster than ones ability to save.
Dave Ramsey acts as if he has ALWAYS been wealthy. He has FORGOTTEN the common person's road to home ownership.
Dave Ramsey got wealthy by selling a very simple, yet sub-optimal plan. His show is a conduit to deliver advertisements for his paid advisors, sell his books, and promote his church-based financial education classes. You know why he sells his classes to churches and not direct to the poors? Because the churches have all the money.
He’s a typical Boomer that made the same mistakes young people make today yet because he was able to get wealthy by selling common sense to idiots he believes he’s reinvented the wheel.
@@RealJohnnyDingo You deserve way more likes, that is spot on, pulling away the curtain
Average house price of $375k would be a dream come true. Here in Canada we're fucked. So expensive.
Thank you for this video! I've been listening to Dave Ramsey recently and felt it was unrealistic for me at least. I have 4 kids and I'm not married. Most of the people who pay cash for everything seem to be childless and have dual incomes. It left me feeling discouraged. I use credit cards and pay off my balance monthly- self control is key. Thanks for making me feel normal.
This! When I hear financial advice and it starts out “we saved, we payed off we this we that, I click off. The advice doesn’t fit for single people. Especially ones with a kid(s).
I started listening to Ramsey recently and yup... work 9-5 and hit that sweet spot average income of 50-60k but still in trouble? Ramsey: ALL YOUR FAULT get 2 more jobs and stop sleeping!
They are absolutely crazy when it comes to the credit card stuff. Like, so unrealistic.
However, it needs to be said that the vast majority of people misuse credit cards. Personal finance is mostly behavior and has very little to do with actual math.
These people are ridiculous. It is no advice at all to tell someone that they should basically increase their income 3 or 4 fold.
Like, if you paid off a house in 26 months, even if that house was only 260k, it means that you make enough to pay 10k a month toward your house. That is almost 2.5 times the average income going to only your house. Like, who has that kind of money? Their advice is pretty much....make more money so you can buy everything in cash. It's actually dumb.
Dude, you killed it with this video!! More stuff like this please!! 18 minutes went by so quickly lol. Good job Ben!
Nothing screams I'm with the times like that antique headset that he's wearing. He looks like the type to still pay with check at stores.
LOL. It's like the Dr Evil scene where he's like, "I'm with it. I'm hip."
Not only paying by check, but rudely wasting everyone else’s time by not even starting on the check before the checker gets to them.
That is the head set of Dinosaur Dave.
Maybe that is the reason he is WEALTHY! Just saying.
Dave's advice literally costs his listeners hundreds of thousands of dollars if not millions in retirement by having them treat home mortgages like high interest reddit card debt.
Retirement is for stupid people.
I could respect what this guy was saying if these were his own beliefs but the problem is all he does is regurgitate everything Dave Ramsey says. It almost makes you question whether he really believes what he’s saying.
No, obviously, he doesn't believe what he is saying. He is paid by Dave Ramsey to think the way Dave Ramsey thinks. The day he gets out of line and uses critical thought and logic is the day Dave will fire him.
If you did more Dave Ramsey reaction videos, that’d be cool.
There does need to be a whole Dave Ramsey reaction channel. Call it "OK, Dave Ramsey..."
don't get carried away though, Dave Ramsey is endlessly repetitive so you'd run out of fresh content pretty quick.
The truth is, our generation as millennials was lied to. We were told to go to college, but most of us just ended up in debt. We were told to work harder, even though we can't make enough money against inflation. $400,000 for a house is absolutely impossible to obtain for most of us. Heck, most of us are living month to month. Generations X and boomers have NO idea what it's like to toil at work for 40+hr/week and have nothing to show for it
I got almost half a years of groceries for 10% off because of credit cards if I were to use a debit card that wouldn't of happened. I also was able to get my car towed for almost half off anywhere around me was charging because of my freedom flex so there's plenty of benefits to credit cards that help save money that Dave Ramseys show don't ever talk about.
Yeah me too, with the groceries
While it's true that a lot of people aren't responsible with credit cards, Dave Ramsey's no credit card rule doesn't apply to responsible CC users.
Responsible people do not live in the USA.
Dave Ramsey is for simpletons. Hate to say it, but that's his audience. He forgets inflation and investment income exists and tries to convince people who are way underwater on collections to pay those in full while working 2-3 jobs while driving the same used car for 20 years.
It's easy to preach that advice while profiting from real estate, including obvious rent payments from tenants, as well as cycling out younger males to appear on his show to make him seem like he's in touch. Most people in debt should either reach out to a debt collection agency or refinance debt,, worse case go bankrupt.
Notice he doesn't appear on the show much anymore? To clarify, the guy speaking isn't Dave Ramsey.
Dave Ramsey did a study on 10000 millionaires in America, those who listen to him, and those who’ve never heard of him. In his study he found that most millionaires in America (close to 90%) follow very similar paths: they stay out of debt, have an emergency fund, pay off their house within 7-8 years, and safe aggressively.
Btw 95% of them started from nothing, and did not inherit their money.
All those things that millionaires have in common are what Dave Ramsey teaches as well.
Doesn’t seem like simpleton advice to me. More like winner’s advice.
I might put it a bit differently. Dave’s approach is based on minimizing behavioral risk, in that context simplicity is a virtue. Yes he ignores inflation and I do take issues with a lot of his advice but his goal is to avoid the worst outcome not create the best. Finally his company is obviously doing some succession transition where instead of Dave telling people the same thing every day a group of people do it. Part of it is they are younger and more relatable, part of it is that Dave won’t be at the company forever.
99% of the population is as you call: “simpletons”. Are you saying he is for the vast majority of the population?
You have to be a simpleton in order to live in the USA.
Dave Ramsey and all his Minions live in the middle of nowhere Tennessee. He has no concept of what its like to live in a large city. He doesn't understand those challenges and balances you have to do. What works around Nashville will never work in San Francisco. I think his ideas are fine for people in massive debt, but you out grow his ideas real quick when you have a solid understanding of how to handle money.
they call it the baby steps. great for babies. some people never get past that stage either. but I would hope most adults could do better than what Ramsey assumes they will.
Ransays financial advice should end out of getting out of debt, period. Anything else after that he is waaaay out of touch.
Don't you want to make all of your investments with a Dave Ramsey approved financial provider, buy insurance from a Dave Ramsey approved agent, and generally live your life according to the books of Ramsey?
Of course he's out of touch, he's American.
Great video! Dave needs to learn the concepts of opportunity cost and inflation discounting. You hit the nail when you talked about how the mortgage payment actually reduces over time due to inflation. Imagine how much you can earn on your investment over 15 years if you had 400k in cash. Way more than what you would pay on mortgage interest!
Dave Ramsey puts out a message that SOME people really need to hear and take on board because those types of people are unable to exercise responsibility and self control with finances which is why they got themselves into thousands of dollars of debt in the first place. I used to appreciate his approach and took his approach for a while but I grew out of that and now I use credit cards for everything and I absolutely never carry a balance. His advice is for people that are a few steps behind myself or us who watch your videos and are more financially literate.
Every time i kept seeing dave ramsey billboards in my state i would flip em off.
I bought my first house at 21 a little over 2 years ago with an fha loan and had I not built my credit up with credit cards as well as an auto loan there is no way I would have gotten approved and and now my house is literally worth double what I payed for it. Huge thanks to guys like you and sebby for teaching young guys like me credit game. If it wasn’t for you guys I definitely wouldn’t be as well off.
During days like these, anyone who talks shade on credit cards rather than teaching responsible methods of handling accounts is outdated with little credibility.
I am an immigrant to this country. After few months of living here I realized that paying with cash is the dumbest idea: 1) You lose pennies in change 2) You don’t get anything in return. Using a debit card eliminates disadvantage number 1 but you still don’t get anything in return. Even if you don’t want to use the credit score for anything, using a simple credit card such as Discover is way better than cash. That guy seems not to be very smart.
Dave Ramsey's stuff is like riding your bike with training wheels. If you're in debt or a complete novice it's good advice. You outgrow his advice once you are out of debt and begin to do your own research. Plus I really don't like how he tries to push his world view on his viewers. If you are a conservative, or a liberal for that matter good for you. I'm not here for that. I look at financial channels and read about personal finance for just that. Personal finance. If you want to preach about your philosophies, write a book or start another channel focused on those things. It's my biggest pet peeve with Ramsey. I don't know why they feel the need to single out people on Tik Tok or any other medium. IMO it's just in poor taste.
Honestly Ramsey is like AA for debt. His audience is comprised largely of people who have fallen into the traps built into credit cards. I wish his company would just point out that you don’t need debt and that it complicated his strict budgeting in an unhelpful way. Now none of this justifies in my opinion telling people to not get a cc. They could put the cell phone bill on it which would make it budget friendly. I was able to get a home mortgage with a single cc in my credit history.
It is very true that there are many financial advisors that cannot grow facial hair. My sister is one.
I really like a lot of Dave Ramsay’s advice, but yeah the no credit thing is a bit ridiculous. Credit cards and debt can be used responsibly!
This video is a gem, thanks Ben.
9:34 “Personally, I want to have a good life” 😂🤣😂
"Just save up 400k dollars" sounds pretty effortlessly for someone born with silver spoon in hand.
Dave was born with a silver spoon in his 🍑
Dave Ramsey and team so out of touch. The only people that are still following his methods are people who are financially irresponsible, and have no idea how to manage money. There’s always going to be those people so that’s why he’s still in business and there will be people who still listen. They think everyone can only buy a house or car one way and that their way is the only correct way. lmao There’s no way an average family’s income can afford to do all these the same year without a mortgage or loan.
That’s because this video lies to you. Dave never says to only pay cash for your first house. (Investment properties are different). Put down 10%-20% (which is reasonable) and don’t let it be more than 25% of your income. The reason why is he doesn’t want people to be living paycheck to paycheck like 61% of Americans are. It really is common sense from his perspective.
Of course he's out of touch. He's American.
By the way, 99% of Americans are irresponsible.
Thanks for bringing this. The ramsey guy is totally wrong. Daniel never said that one should go in debt with credit card.
I found out about Dave Ramsey in 2015 and followed him for years after that. He taught me a lot and I was able to get out of consumer debt. But he is a little outdated with his beliefs about credit and credit scores. He is completely against credit partly because of his experience of losing all he had when he was younger. Check out his story if you care to😊
Credit scores only exist in cesspools like the USA.
thank you for this video. its always good to have a 3rd party perspective, hopefully non-biased either way.
Love the American flag in the background Ben. Great to watch videos from fellow country loving patriots! God bless.
I don't trust anyone who wears a headset with a big mic 🤣
Responsible use of credit cards helped me to start taking control of my finances. I now have 7+ months expenses in a high yield account, paid my car off 3 years early, and fully settle my credit card accounts automatically each month. Dave is an extremist who fearmongers his audience when he was, honestly, an idiot with debt in his youth....paying off debts with other debts🙄
It’s funny, around the time you posted this video, I had the Dave Ramsey team reach out to me and try to take down one of my videos. From the look of this, looks like they enjoy dishing it out, but can’t take it. I’m a former Dave Ramsey financial coach and I know his material well. Lots of gaps in his logic. When I dared to call it out, I got contacted by the Ramsey team. Ridiculous.
Yeah i was wondering if they are going to copyright strike me. But if they do, I’ll just make a sensational video out of it and make some money!!
I would like to thank you for all your videos! You are the only person I watch for my next card on that note I also love daniels videos he’s a bright individual that’s help me with better financial decisions. Dave Ramseys advice is so unrealistic that does not benefit an average American like myself. Thank once again please don’t stop making videos!
Dave Ramsey’s advice is so antiquated and they make their money off of giving advice to those who are in dire situations while playing the “Good Christian” card.
I made $145k last year and in Cali I cannot afford no damn 15 year fixed mortgage with the price of these homes on the Dave Ramsey method! Straight bullshit
The issue is the idea of the 'psychology of money'
Ramsey's methods are all about 'reteaching yourself if you are bad with money' and for that audience it's completely on brand, and that audience needs to avoid temptation, it's the "Credit Cards Anonymous" idea of removing yourself. They love to quote stats like 87% of people this, or 2/3 of people this. 4 out of 10 people this
The brand doesn't make sense though for that other 13%, that other 1/3, the other 6 out of 10 who can profit CC churning, who can use debt to invest successfully, etc.
Dave Ramsey advice boils down to "You're in debt so you're dumb, and if you're dumb you better listen to me, because I used to be dumb, and now I'm not in debt anymore so I'm smart"
And guess what that works for the 'dumb', but it's never one size fits all.
exactly! an adult way to get out of debt, as opposed to his "baby steps" works faster.
A pertinent example: I had an aunt and uncle that were pretty well off, they didn't do credit cards and bought their vehicles in cash. They paid their rent out of checking every month. No problem so far. But when it came time to buy a house, they had major problems because their credit was just garbage. It's not that they had BAD credit, they just had NO credit.
There's no such thing as no credit at all. It starts at 300 points. They had low credit.
@@AK-47ISTHEWAY
Yep, that makes sense.
You don't wanna know my reaction to your reaction to his reaction to your friend's reaction...
Honestly like alcohol if you're an alcoholic don't drink.
I do agree with the Ramseys about spending more when you use plastic (including debit cards). So I only charge utility bills for everything else there cash.
That way I don't have to do the archaic manual underwriting.
exactly this. while some people can be excellent at avoiding the increased spending, majority of credit card holders do overspending vs if they paid with a debit card or cash. There’s actual human psychology behind it, and the credit card companies are fully aware of this. They make money off of us whether we carry a balance of pay it off in full.
This is so very frustrating to me. Four years ago I had zero credit history because I grew up in a house where, despite no Dave Ramsey around, we thought that credit and credit cards were the devil. I paid for everything with my debit card, got zero cash back or points and would overdraft regularly because I didn't have a cushion. Then I got my partner to add me as an AU on his card. Then I got the Discover it and the Chase Freedom. A year and a half later, my credit score was in the low 700s and I got a mortgage. That house has appreciated over $200K, I refi'd last year down to 3.25 and my credit score is in the 760s. I have 12 cards now and I've never paid any interest. In Washington State, where I live, if you made even $100K a year, you are never, ever going to save up enough to put like 50% down on a 15-year mortgage. You'll be dead before that happens. These people act like it's the 1950s, when housing cost like one years' salary, not five! Dave Ramsey's advice is ONLY good for people who treat credit card limits like additional income and spend like crazy. Anything above and beyond that, be it investing or building credit, is total BS from him.
Building credit is asinine. Credit only exists in backwards hellholes like the USA.
“Look at this misinformation, these people are crazy and mislead”
*meanwhile sitting behind a desk with a giant D on the front of it*
Dave Ramsey is overrated. It might work for some people, but I don't think his advice for most people is even realistic.
No matter what the topic may be...this is another typical example of "show hosts" infighting.
You know...my dog is bigger than your dog...blah, blah, blah
Dave Ramsey is the AA of personal finance. Amazingly helpful for some people, out not everyone needs him.
You're supposed to rent your whole life and then buy a house in cash at age 65. In other words, do exactly what Dave DIDN'T. Gotta realize, he's better than us and transcends us. That's his idiotic view, I don't endorse it.
Im older just over 50 and i never had a credit card until 4 months ago, and now i have 3 anyway i was raised with the "credit cards are for people who can't buy things with their own money" kind of thinking i own my own house in California and its not a cheap house and it is totally paid for except for property taxes and crap like that. Obviously prices have skyrocketed in the last 10 years in particular the last few years have been nuts. I think the strategy of scraping by is not exactly a glamorous lifestyle i lived in a travel trailer on my friends property for 5 years and made good money so i saved and saved is not for everyone and if i was married it would have been miserable but i bought my house outright so it can be done but its not for everyone and maybe a nightmare if you have a family and aren't down with being a hermit
Even if average house price is $100,000. That is almost impossible for people to cash out the house.
What’s more feasible? Saving up for buying a home in cash during record high inflation? Or taking out a mortgage with a low interest rate? Having a good credit score is how the middle class is able to afford homes nowadays. Telling people to give the middle finger to their FICO score is such bad advice
It's tough to get car insurance w/o a FICO score. at the very least you severely limit the competition, which could lead to much increased premiums for the same coverage... naturally Dave Ramsey has a paid partner that will provide insurance quotes to people w/o FICO scores. Dave Ramsey has a pattern of behavior of encouraging people to do questionable financial things that will ultimately benefit himself.
Go rewatch some Ramsey stuff about buying a house.
He says to put down 10-20%, not buy it outright (reasonable.)
The reason why he says no more than 25% of your income is so you aren’t living paycheck to paycheck every month (like 61% of Americans.) if you lower your biggest expense, you’d have more money. Who would have thought?
@@dominickgalinis3210 that all makes sense if you didn't have to pay rent. I'd rather pay a $1500 mortgage payment than a $1500 rent payment, even if it was a 30 year loan. You can always refinance later or pay it off early... at the end of a 30 year mortgage that house payment will look awfully cheap due to inflation. Just because Dave got greedy, leveraged up on properties and then went broke in the bust doesn't mean his advice now is the best. one size fits all advice doesn't fit everyone very well.
@@dominickgalinis3210 except in some market 25% of your income is not realistic, if you want to live in an area where you work and have decent schools for your kids. Otherwise, people are looking at 1 to 2 hour commutes by car each way. That is not a life. Rents are upwards $2800 a month with a good credit score and three months rent pre-paid. I think teaching people not to be fearful of financial instruments but understand them is important and Ramsey may help many in certain parts of the country but he isn’t teaching them about finance.
The only people that should follow Dave Ramsey's advice are people who know that they are not financial disciplined, to keep them out of debt. Paying off a low interest mtg vs investing that money cost you money in the long run as the return on investment should be more than the interest on the mortgage. using cash vs using credit and paying it off with the cash each month costs you money in lost cash back. Credit scores are used for more than housing and debt. Most insurance companies now partially base your payment on your credit score, crazy as that sounds it's true.
In other words, only 99% of the American population should be following his advice.
The whole thing is THAT isn't Dave Ramsey.. thats one of his parrots spouting the same garbage..
Strongly polarizing views gets clicks and grabs eyeballs. I'm pretty sure Dave Ramsey has some sort of course that teaches you to get out of debt, but CHARGES you to do so. A bit contradictory, I'd say.
Not really.. Paying for a service and going into debt are 2 completely different things.
You just simply can't build generational wealth without debt.
My net worth went up 30% in the last year because of the home I bought with a 30 year mortgage. I used to follow Dave Ramsay, but if I hadn’t changed my philosophy I wouldn’t be able to afford a home in Austin where I wanted even with a 6 figure salary and no other debt. His plan might work in the middle of nowhere where everything is cheap, not in many places.
I’m in one of the hottest real estate markets right now. Working perfectly fine here, and I make average income.
Most of Dave Ramsey's advice is 25yrs past its expiration date. In modern era of LOW mortgage rates and high inflation it is DUMB to pay cash for home or pay off a mortgage accelerated. Advice to keep people poor and in rentals all their life. Also dumb to pay cash for any newer over 10k when loan rates are under 5%. One of the best ways to insulate against high inflation is acquiring assets with low rate borrowed money. Thats in complete contrast to Daves bad advice. Btw, ALL Billionaires have TONS of debt it is how they've built their wealth, with DEBT. They need to educate about bad debt vs GOOD debt.
Billions are terrible role models. Every single one of them is an extreme example of survivorship bias.
Most people at the same place dave is at financially don’t understand people don’t make livable wages. Credit is key if you need things in modern society
Credit is an absurd concept that does not even exist in civilised society. It only exists in backwards hellholes like the USA.
Why the hell would I pay cash for a car when I can get a car loan for for .9% or less and leave that cash invested earning 5% and up. Why the hell would I throw away 4.1% earning.
Does it sound like I have credit issues?
Where are you getting a .9% or less car loan right now? Sounds like a fairytale to me.
@Wajz3 It's because we have a good credit score. My car payment is under 250 a month, and the reason it's so low isn't because I put up a large down-payment. It's because of my excellent credit history. Build credit and you can get much lower interest rates and end up saving a lot of money.
I have some mixed feelings on this one, I only somewhat get where he's coming from, it seems like he strongly believes in his methodology but he's a bit aggressive about it though. I think his way of a mortgage is just another option if you're in that situation, if that's what you want to do but he definitely fails to realize our side of the story though as well, more than likely because he's part of Dave Ramsey and that's their brand. As someone who's almost debt free and continuing to make progress while opening more card's myself, that's about all I can give him.
Ramsey calls is BABY STEPS for a reason. He thinks you are a CHILD and you need a CHILDPROOF system to get through life.
Over $200k credit line., credit is the best thing that ever happened to me.
Business credit or personal credit?
Thank you for making this!
Ramsey's minion has spun out some genuinely reckless advice. This is terrible.
I question many of the debt free scream calls. We paid off 400K in 18 months earning 70K a year. Huh? BTW, reviews say the fees and interest rates at Churchill are a bit higher than other companies which makes sense.
Why would I spend 10 bucks on a debit card and earn nothing when I can spend 10 bucks on a credit card and get a small amount of cash back?
Thats too much for the average family, $2k a month on a 15 year to be 1/4 of your take home pay, they would need $8k after taxes. But before taxes/fica/401k/health insurance/hsa/etc you would need to make $12k a month × 12 months = $144k Gross salary for a family, while the average American family makes half of that.
Some people can live on less than 8k a month while still paying 3k a month on mortgage in a hcol city
Listen to the people that call into his show. Those people are in big credit card debt and need a way out.
that's his target audience. I like personal finance books and have read several, including his. His plan is simple, too simple, but I can see that it would appeal to a certain group of people that have trouble making good financial decisions. What really turns me off is his arrogance- he talks like his advice is direct from God and everything else isn't God's plan. That's pretty out there.
I am a credit lover like the next guy in this channel. However, I think the Dave Ramsey method is for the majority of people that cannot control themselves and/or carry month to month balance. Thanks to them we can enjoy great perks from our credit cards. I do believe those people most likely will benefit from his method because not everybody has the common sense of self control to carry a credit card.
What Ramsey says is true you’ll spend more money with credit cards points will not make you rich but I do not want to have to do double work and overpay on many thing just because I refused to used a credit card. To get an apartment you need to call to see who accepts you and get more paperwork or give higher deposit same to rent cars, hotels phone services insurance. And get ready to get a no score mortgage you’ll have to find the receipt of the last underwear you bought.
They’re coming for you bro 😂 haha I like ya both.
6 months up front?? do they not have housing laws there?
For all the times I've listened to Dave, I never heard him say that you should save up $400,000 for a house. He talks about mortgages. I do think you should have a credit score because various companies judge you by it and you can get better rates. But too many people use a credit card as it was someone else's money and they wouldn't have to pay it back. And it would be nice if a man could speak without being interrupted by commentary every five words.
Old?! He’s only 34, Ben! Holy moly. I agree that there isn’t or shouldn’t be a one-size fits all method. That said, do you really need 15 cards? Is that really worth it?
Daniel never said anything about being in debt... dave ramsey over leveraged and went bankrupt with housing in early 2000s thats why he hates debt because he made a mistake. Thats why love watching credit shifu and graham with financial videos.
I thought he went bankrupt in the 1980's? And then in 1993 wrote his first book?...
Always pay off in full and make that cash back 👍
GREAT VIDEO!!! Just an FYI, another TH-camr who called out Dave was demonetized. So, be careful!