I bought my daughter a used Nissan when she turned 16. The car cost me $6,000 and I put another $1,500 into it buying new tires, changing the fluids, adding a backup camera, front and rear dash cameras and misc fixes. She has been driving the car trouble free for four years now. I see so many kids at her school driving around in new or luxury cars. The other students must have wealthy parents. We opened a Roth for my daughter in high school and she has been contributing to it monthly. She already has over $20,000 saved and has increased her contributions to $300 per month. She has a full scholarship in Biotech and will graduate with her Masters and zero debt.
I must say. Dave’s rice and beans recommendation when saving money actually helped me lose 25 lbs in the last 5 months of saving hard and paying off my debt.
Nice, congratulations! I agree. Being “gazelle intense” is actually saving me money in buying excess food or pantry items that end up going bad. Simpler meals are usually healthier and easier to make balanced.
I agree! It’s no wonder third world populations tend to be much healthier than Western countries: they eat way more “raw” and healthy than Westerners. They focus their diets on rice, beans, potatoes, and vegetables which are all dirt cheap…very little meat and dairy!! Not to mention they walk more and drive less. I actually walk 5 miles to work now instead of driving (but not for long since snow is coming soon :(
Dave's so cute 😭 When he softly asked, "Is she working?" ;) so calmly I LOL'd. Right before I knew he was about to really lean into this situation and tell it like it is! ;) Love Dave & this crew so much!
I'd love to hear someone say. "Well Dave, thanks for asking, I'm making $200k a year, my house is paid for, cars are paid for, I've got zero debt, I've got about $200k in liquid assets, and another $3m in investments, with $4m in a Roth IRA. I have no dependents other than my dog. I do put most of living expenses on a credit card that I've had since I was 18, and while I'm 45 now, I still haven't paid a dime in interest. And I've never read your books. Anyway... I'm thinking of buying a new Ford Raptor as I'm going through a mid-life crisis, do you think that's doable.?
1. I love Jade! 2. This video was spot on! His and her advice are on point and until you get there, you'll never be debt free. I did it and if I can, anyone can
Dave has his math wrong on the amount she can retire with. No way that can get to 3 million. She may get to 1.2 million if she does 15k, 8% annual for 25 years.
Totally agree, there is no way in hell she's getting anywhere close to $3M. This 10% per year is not accurate. Sure, maybe averaging over the last 80-100 years. But "average" is extremely misleading and way too broad. Your personal timeline can be very very different. Typically during YOUR investing timeline you see years of negative returns, followed by a few years of great returns, some years of maybe barely growing, followed by another 30% drop. That 30% drop happens in about 6 months and takes five years to recoup. Your average ends up being about 3% over any 10-year sample. $1.2-1.5M max is more realistic. Also pay down your house and either be mortgage free or use the equity to buy a smaller retirement place for cash in a low cost state and bank what's left.
Cars are the stupidest things ever to waste money on. I purchased a prefect condition vehicle 6 years ago for $3,000 that had 90k miles on it. I have driven it from Seattle to LA twice and put on a total of 90 thousand miles. Maybe 2k in maintenance and tires and it has never let me down, does everything I need and I could careless about what the neighbors drive. Cars are the worst things to throw money at. New cars not only cost more per month your car insurance is also more. I own three cars and two motorcycles and my full coverage insurance is less than most pay per month for one new car. Unless you are rich a car should just be a metal box that takes you places and looks decent. No one wants to drive a hooptie, I get it. But paying monthly for something that sits in the drive way 98% of the time looking pretty AND costing you money even while turned off is just plain stupid.
What type of vehicle if I may ask? I hear all these people call in with repair horror stories and they say "Ford Fusion" "Chevy Cruze" etc and rarely "Honda Civic/Accord" or "Toyota Corolla/Camry"
I think it is time for your daughter to start paying her car balance now that's she is 18 and working. This lady makes good money and something isn't adding up.
Its quiet interesting how we reject the reality of our situation and expect to be able to observe it, control it and even change it. I used to be financially depressed until I read a book that made me realized that the secret to making a million is making better investments.
What I think everyone need is an adviser, who can help you get in and out of any investment at any time and you'd sure be in Profit. With this I feel anyone can basically achieve financial freedom
This woman's case is a bit different. Like 95% of her debt is just those two cars. And the total debt is around 1/3 of her annual income. I feel like this is fairly easy situation to get out of. Dave's taken plenty of calls from people in way ,way worse situations than this. She could probably get this knocked in a year, two years tops and not have to sell either car. Of course if she sells the cars, she could be out of debt in a couple months, basically just however long it takes to sell the cars.
@@forresthodge1024It’s going to depend on how soon she wants to contribute to her retirement. If she wants to start immediately, then she’s selling the cars.
I read Ramsay's book. We bought my car $5,000 cash. A few months later my wife's car blew a gasket. So we sold it to some mechanic for like $900. We then bought her a $13,000 car. We paid $9,000 cash and her parents paid the other $4,000 cash and we paid them back fast. Dave says that owing your in-laws makes thanksgiving taste different. We don't know about that because we paid them back so fast thanksgiving hadn't arrived yet 😂. But here we are. No car payments years later.
@@Excalibur2 that's a pretty big false equivalency. You can take your used car to a mechanic before you buy and get it checked out, and you can buy used cars at trusted dealerships that offer full warranties. New cars can have problems too, problems that could leave you without transportation for weeks at a time. The additional risk of buying used does not outweigh the risk of taking on debt to buy a car that a) could have an issue anyway despite being new and which b) depreciates quicker than you can say depreciate.
@@DiponDasgupta it's a pretty fair comparison. There is risk with driving unreliable vehicles and as a car gets older that risk goes up. They just wear down. It doesn't really matter if you take it to a mechanic, even if it's sound in the moment, it can break down at time. You can end up paying a grand per month in repairs, meanwhile, a newer used or even brand new might be under $500, maybe $300 if used. My own father spends more on repairs than I do car payments.
@@Excalibur2 it can break down sure, but it's not just a matter of luck. you can do the research on most reliable vehicles, the maintanance they will likely need at each milestone, and look up the maintenance history. You can have a mechanic check the vehicle over and make sure there are no obvious flaws. if you do all that and you still get a bad one that's pretty bad luck- but even if you have to do it twice you'd still be miles ahead of a new car payment.of all the vehicles my family has owned by far the most reliable was my 27 year old truck that i bought for $1200. My sisters brand new suv needed a new transmission not but 2 years into ownership and she was just lucky that she was within the warranty window. if i buy a 5k car that needs a new transmission im out 5k, if i buy a 35k car that needs a new transmission im out 35k.
@@DiponDasgupta all I'm saying is that, all else being equal, older cars that are cheap are so for a reason. You get what you pay for and they all start having more frequent problems as they age. If you're broke, you don't have much choice but to take the gamble, but if you're making decent money it quickly becomes a risk to your job to not have reliable transportation.
She should absolutely be putting up to the company match into her 401k. That’s free money. She should also then be putting as much as possible to getting out of debt.
The baby steps are there for a reason. People try and Olay the yield game. Debt is physiological more than mathematical. Visa and Mastercard employ ad agencies, have market focus groups all to make you believe the debt peddlers are there for you
Daves helped MILLIONS become millionaires and you have helped how many with your broke ass advice? lol. Go push your snake oil somewhere else. His plan has been PROVEN to work. Good day.
@@donjohnson1416 ….Dude we’ve done Dave. Not ISH either, so you’re preaching to the choir. I was just saying it DOES make sense (not behavior wise) for her to start getting the match now & selling the cars. She’d only have like $100 that she could knock out within a month.
The dream team of Dave + Jade! Two issues with the advice here: 1) to have $3m after 25 years would take a 15% return rate per year, which is not reasonable. More likely is around 8% which gets her $1.2mil. 2) Don't pause your 401k investing - ever. You have to fund retirement. Maybe reduce the %, but don't reduce it below what it takes to get the max employer match (if applicable).
I paused my 401k contributions for about 3 years. Luckily I'm only 30 and left my dead end job for something much higher paying. I hate thinking about the growth I missed, but I'm also proud of myself for being diligent and disciplined about investing as opposed to using my pay increase on things I don't need.
A reason to pause on #2 is that when you have debt, you have risk, you have unnecessary payments cutting into what you are able to do with your income. Until you have a proper emergency fund, same problem; you can't handle life if life happens. The idea is that you have to be handling the short-term well before you can prepare for the long-term.
@Kia828 Well the rate she's going it "should" be approximately 7 months but I seriously doubt it. She will not be selling her new car and continue to buy stuff she can't afford.
@@Anthrax57And she’ll probably get the math and continue to be in debt forever because she’s not ready to change her lifestyle. If she was, she’d sell the cars. That frees up more income to pay down the rest of the debt. Then she can build a savings. Then she can contribute to retirement. Which can be done quickly if she wanted to. But she doesn’t. So she’ll keep doing what’s she’s doing.
I'm so glad I prioritized 401k and IRA contributions in my 20s and 30s. At 39, the flood of ever-growing (tax free!) dividends speak for themselves. The caller, at 38, has plenty of time to get going on her next egg, but she also needs to be deliberate and realistic in her expectations; what she could have built with $5k per year deferred starting at age 25, might require $15k per year now, which is not chump change to most people.
@@venkkandadai6042 Um, yes, I understand that, and I am referring to the tax free growth until withdrawal in a traditional IRA, or tax free growth and withdrawal in a Roth.
Dave, simply thank you for sharing your gift of helpful knowledge and information. And thank your wife for willingly sharing her gift (you) with all of us. May God continue to bless you both, along with the rest of your family.🙏🏾💜
this is very true. she should have just kept her car instead of giving it to her daughter she can buy her own she was only 16 so I don't see why you will give her a car payment.
375,000. What math are you people using. Or am I missing something.? I know there is compounding. But it's not gonna triple ur money. Writing calls and dividends will.... Risk free. Not sure why that stuff is not being talked about. And maybe 10% in options trading. That's how you get rich. Not this BS
$15k plus her 6% match compounded for 25 years with around a 6-9% return would be right around only 1 million. Could be a little more or even a little less
@@jimmymcgill6778 The car wasn’t paid off. She’s in debt. She’s calling freaking out because she’s in debt; 7/8 of her debt is these 2 cars…1 of which her 18 year old, employed, fully capable daughter now drives. The daughter can still have the car with the car payment. Mom is in 40k of debt…over half is her car. Do I need to break it down any further?
I love the advice, but my company matches retirement, plus pension benefits. If I stop my retirement, I get cut soooo much in taxes like 1k or more. But if I pay retirement I get cut like 300ish in taxes… it’s simple math for me and my check is actually more when retirement is cut.. I rather pay myself before the government… I am seriously paying everything off. Even while I’m getting out of debt 💸 I still believe in saving for my retirement.
I drove a Colt Vista that I shared with my sister at that age 😂. Then mom took me to the car lot and bought me a used Tercel (when I was in college) . I felt like the most spoiled kid. This lady is bonkers.
I have two used Toyotas that are paid for, one of which is over 20 years old. Paid cash for that car and it has been the best blessing for our family! The caller should buy a quality, inexpensive used car and drive it for as long as she needs to get out of debt.
Never EVER give up company match 401k no matter who told u so Company match is instant 100 % return There is no rush to pay cars off, they are fix rate
Depends on how much you are in debt. In her case she should sell both cars the next day and buy 2 cheap cars and she’s pretty much out of debt. It wouldn’t take long at all to pay the rest off so might as well do that first than start investing.
We did everything exactly as the baby steps say, except stopping 401k. It is inexcusable to stop your retirement for anything... especially since Ramsey himself has shown countless times how starting early is so much better. I paid off debt just the same. No reason to not improve future you while improving present you.
We are debt free (including the house, although this time last year we weren’t). When I decided I needed a car that would save me gas money (I drive Uber and Doordash part time), I used some cash I had on hand to buy a $16,000 car. And I set aside the oldest car we owned (a 2005 Honda Pilot) for our then 15-year-old. My husband’s car is also paid for. So we have 3 cars, all paid for. I would never give my daughter (or my sons when they get old enough) a car that has payments. Insurance is high enough for a teenage girl driving a car almost 20 years old. Imagine if she were driving a 2020 car! No thanks! And we could afford that new of a car if we wanted. But our cars run fine; why get something new?
Yes. Ugh... Most of Dave's videos that pop up on my feed are from people with houses, cars, good salaries, etc. and are still clueless. Just once I want to hear from someone who works hard but makes little money, has no debt, and doesn't make frivolous purchases, yet is concerned about saving enough for retirement years. I'd love to hear what advice Dave has for that.
I just turned 29, a little behind on my retirement liking, and still have about $40k in debt with no kids and a homeowner. I could never pay down my debt because of my drinking issue but I’m 10 months sober now and went from $50k to $40k the last few months. I make a good salary at my day job and my part time. I am planning to pay off all my debt exactly a year from now or even sooner, but I am investing just 5% at work into 401k & Roth (my job matched 100% up to 9%) and another amount in my HSA. My thing is, I am picking up extra one serving shift a night (extra $200 a week) so I can invest into my retirement but can also pay down my debt as planned. (Most of my debt is interest free, the largest is 10%) as I believe in this concept Dave preaches but I also think if you can strategize to make extra money, take advantage of retirement because you’ll end up having to put in more a month in the future just to catch up on retirement. Everyone’s situation is so different and this isn’t a one size fits all.
I have a hard time understanding why anyone would pass on a 401K match. That is essentially free money, a 100% return on investment instantly. That's more than even credit card debt. I get it why I am wrong, it is just hard.
Missing out on the match is throwing about $5,500 a year out the window. The cars are very stupid, but even with the car payments there should be plenty of money on the budget for whatever is needed. This woman isn’t serious or budgeting.
Bruv did you not watch the video, she cant because shes in lots of debt and has no spare money. She has to clean up the debt first and fix her spending habits.
She can wipe out the debt this week and then take advantage of free money for retirement, but it means having to sacrifice a very little amount of lifestyle, and giving her adult daughter a little more adult responsibly. Dave is exactly right that if she took this seriously now she will have millions, but if she doesn't change she is going to have very little.
It's so hard to not buy a nice car while in debt. Especially when you get a better job, finally making more than enough money. But I watch these vids just to help me stay on track 😆
I am on Step 6 but contributing just under 20% to my Roth retirement accounts. I have under $100K left on my house with a rate of 2.7%. While I want to get that house paid off ASAP, I am making more than 2.7% return in my investments right now.
Just let the 18yo assume payments and expenses because she's an adult. Sell her car and get it done. Dave never asked or mentioned the fact that she was having fun with a percentage of her income because she was receiving child support and alimony or such, which is totally unfair to the husband. Man goes through a divorce that was filed by his wife and lose half of his stuff because of her "feelings".
That's the part dave Needs to explain more ... We no how to pay off debt But how do we do the investment Part .... Do we put the money in a Flowerpot.....water it & it grows into millions!
If they don't take the advise to sell those cars, analyze the budget... are there places where 3% can be found by reducing their spending more? I mean $20,000-30,000 bonuses really pays down debt quickly if it's used 100% toward that. Get used to having 3% less disposable income.
Please don't shame someone who has called for advice. Also don't interrupt the caller. I am not referring to Dave Ramsey as interrupting. So, she spends too much and realizes that. The reaction is one of the reasons I don't typically watch this show.
Always get your employer match first. An instant 100% and 50% gain is the best deal you will ever get. With $40K in debt and a ~$115K income, it'll take a year to pay off and not contributing 6% to the 401k for a year will be throwing away $5K in matching funds, and missing a total of $11.5K in contributions. The contributions plus the compound interest for 25 years will grow to $175K (using the same assumptions that Dave used when he said she would have $2M after saving 15% for 25 years), and would cost only 1 or 2 months interest (ballpark $400) on paying off the $40K debt. Take that $400 saved and put it into the 401k with employer match and it'll be worth $11K after 24 years. Big difference. Plus, Dave knows the car market is crazy right now but is suggesting buying cars for $3K and $5K. Poor advice all around. The caller isn't suffocating in debt and there's no indication she's habitual about it. It's too bad Ramsey only pushes the one-size-fits-all "baby steps" plan that's very sub-optimal for people that got into debt because they were ignorant vs. emotional. It works, but it can be like using a sledgehammer on a thumbtack. I was disappointed when Ramsey killed the "Everyday Millionaires" show, but the advise given to millionaires frequently contradicted the baby steps. Imagine that.
I think the hard part is this advice is broadcast. So Dave and crew give the same message all the time since it is good advice for everyone but maybe not the best advice for every situation. Jade made a good point. If something happens and she needs the money locked in the 401k, she's going to lose the match in penalties. That probably won't happen, but that's the point. Good isn't always best.... but its still good.
This is the one area I highly disagree with the baby steps. This lady should be putting on the 6% up to the match and also getting out of debt, both are possible.
She should sell the expensive car, get another cheap one. Paying for all that is crazy. I can't imagine driving around a nearly $40k car on 90k income.
Depending on car loan interest rate, you're better off investing up to employer match limit. Use the rest to pay off cars. Also math is wrong on 3mil with 15% investment rate during 25 yrs.
Please explain me where math is of 15% of 100k. In 10 or 20 years will get you even 1 million. It's no where close. Even with compounding. 20% of 100 k in 20 years is 400k. What are you investing in to triple your money. ???
Not to defend either one but Its crazy that home girl is quick to throw her hands up and moap at 3:00 for 38k car debt when she herself was over 500k in debt. Look all I’m saying is we are not all the smartest people and we make mistakes. Hope who ever is reading this has woken up and decided enough is enough and you can get out of debt no matter what position you are in. Believe and achieve!
You calling her "Home girl" is very passive aggressive in a manner that I will not name. Be careful with the words you're using and you're wrong here. Why does how much debt she was in have anything to do with this situation? It doesn't.
Just get rid of the cars, but you should match your (roth)401k immediately. You're basically getting a 6 percent raise that grows tax-free immediately! That is thousands and thousands of dollars in the long term. My advice would have been to match the 100% immediately and try to sell the vehicles.
How does he get from 15% of 90k invested for 25 years up to several millions? I don't understand those math. Seems unrealistic to me even with compound. Anyone can enlighten me please?
I know you find it difficult Dave, but saving modest amounts of money and moderate investments are an epiphany to most of us. Never learned this. - Admittedly stupid at 62.
Man, the same shit doesn't apply to everyone. She earns 120k dollars. She doesn't need to sell anything and can easily pay the loan in under a year with some discipline.
I order a Model Y Performance a month ago. My payment will be $750 a month for 72 months with a 15k down payment. I came to watch your videos so I can convince my self to lose my $250 deposit and move on.
LOL Dave Math... 3 Mil in 25 years? What kind of returns you getting there? 8% gets you like 1.2M... and that's IF she's disciplined enough to save 15%
I bought my daughter a used Nissan when she turned 16. The car cost me $6,000 and I put another $1,500 into it buying new tires, changing the fluids, adding a backup camera, front and rear dash cameras and misc fixes. She has been driving the car trouble free for four years now. I see so many kids at her school driving around in new or luxury cars. The other students must have wealthy parents. We opened a Roth for my daughter in high school and she has been contributing to it monthly. She already has over $20,000 saved and has increased her contributions to $300 per month. She has a full scholarship in Biotech and will graduate with her Masters and zero debt.
THATS AMAZINGG
I bought my daughter a red merc SL sport it cost 270,000. Her Graduation gift.
@@HollyB-b3tsend me some money 😭
@@HollyB-b3tno one asked
@@HollyB-b3tLegend
I must say. Dave’s rice and beans recommendation when saving money actually helped me lose 25 lbs in the last 5 months of saving hard and paying off my debt.
Nice, congratulations!
I agree. Being “gazelle intense” is actually saving me money in buying excess food or pantry items that end up going bad. Simpler meals are usually healthier and easier to make balanced.
I save so much when not buying chips, ice cream, soda, etc! Being money smart has been so healthy for me!
I agree! It’s no wonder third world populations tend to be much healthier than Western countries: they eat way more “raw” and healthy than Westerners. They focus their diets on rice, beans, potatoes, and vegetables which are all dirt cheap…very little meat and dairy!! Not to mention they walk more and drive less. I actually walk 5 miles to work now instead of driving (but not for long since snow is coming soon :(
He speaks metaphorically when he says that, but I'm glad it helped you lose weight.
@@katyedwards3935 I took it literally and glad I did because I’ve never saved more money or felt healthier than now :)
This is the Dave I missed. Tough and stern, but not overly harsh.
What is he now? Soft , nice and sugarcoating?
Dave’s calmness at the beginning scarred me…
I love hearing Dave’s wisdom. This is why I keep coming back to this channel.
Dave's so cute 😭 When he softly asked, "Is she working?" ;) so calmly I LOL'd. Right before I knew he was about to really lean into this situation and tell it like it is! ;) Love Dave & this crew so much!
Intellectually exploring and not emotionally engaged!! Words were deeper than a a knife 🔪
id put 3% in thats free money from the company. Can still tackle debt quick
When Dave asks someone how they're doing, I'd love for someone to respond with, "Focused and not finished" just to see their reaction.
Or they could try the correct "Focused BUT not finished"...
@@amireallythatgrumpy6508 Yes that also works.
Nah, would be better if Chris Hoggan called in himself and said he was behind on the electric since Dave kicked him off payrole 😂😂😂
Or they could say, "Better than I deserve."
I'd love to hear someone say. "Well Dave, thanks for asking, I'm making $200k a year, my house is paid for, cars are paid for, I've got zero debt, I've got about $200k in liquid assets, and another $3m in investments, with $4m in a Roth IRA. I have no dependents other than my dog. I do put most of living expenses on a credit card that I've had since I was 18, and while I'm 45 now, I still haven't paid a dime in interest. And I've never read your books. Anyway... I'm thinking of buying a new Ford Raptor as I'm going through a mid-life crisis, do you think that's doable.?
Live like no one else, so later on, you can live like no one else. That advice is priceless. 💯
You forgot the give part lol
1. I love Jade! 2. This video was spot on! His and her advice are on point and until you get there, you'll never be debt free. I did it and if I can, anyone can
I love Jade
Dave has his math wrong on the amount she can retire with. No way that can get to 3 million. She may get to 1.2 million if she does 15k, 8% annual for 25 years.
Your forgetting the company match
There are company caps & even without the cap there is no way she would get to $3MM.
Dave uses 11-12%. He's said it several times on the show. Yes, it's too optimistic.
Totally agree, there is no way in hell she's getting anywhere close to $3M. This 10% per year is not accurate. Sure, maybe averaging over the last 80-100 years. But "average" is extremely misleading and way too broad. Your personal timeline can be very very different. Typically during YOUR investing timeline you see years of negative returns, followed by a few years of great returns, some years of maybe barely growing, followed by another 30% drop. That 30% drop happens in about 6 months and takes five years to recoup. Your average ends up being about 3% over any 10-year sample. $1.2-1.5M max is more realistic. Also pay down your house and either be mortgage free or use the equity to buy a smaller retirement place for cash in a low cost state and bank what's left.
He's also usually counting the house as well as company match, plus raises
She ain't selling no cars 😅
Nope.
I thought the same thing after Dave said that. 😂😂
Nope, she is not 🤦🏽♀️🤦🏽♀️
Could image her telling her daughter that she had to give up her car and drive a junker?
Broke people do broke stuff
Cars are the stupidest things ever to waste money on. I purchased a prefect condition vehicle 6 years ago for $3,000 that had 90k miles on it. I have driven it from Seattle to LA twice and put on a total of 90 thousand miles. Maybe 2k in maintenance and tires and it has never let me down, does everything I need and I could careless about what the neighbors drive. Cars are the worst things to throw money at. New cars not only cost more per month your car insurance is also more. I own three cars and two motorcycles and my full coverage insurance is less than most pay per month for one new car. Unless you are rich a car should just be a metal box that takes you places and looks decent. No one wants to drive a hooptie, I get it. But paying monthly for something that sits in the drive way 98% of the time looking pretty AND costing you money even while turned off is just plain stupid.
What type of vehicle if I may ask? I hear all these people call in with repair horror stories and they say "Ford Fusion" "Chevy Cruze" etc and rarely "Honda Civic/Accord" or "Toyota Corolla/Camry"
@@ryand7713 I purchased a 2000 Plymouth Grand Voyager for $2500 plus tax in mid 2017 with 90k on it. Was like new really.
Unless it's a Nissan GT-R 😊😅
I think it is time for your daughter to start paying her car balance now that's she is 18 and working. This lady makes good money and something isn't adding up.
Its quiet interesting how we reject the reality of our situation and expect to be able to observe it, control it and even change it. I used to be financially depressed until I read a book that made me realized that the secret to making a million is making better investments.
May I ask which investments are good? I've been looking at a few different ones but want others' opinions as well
What I think everyone need is an adviser, who can help you get in and out of any investment at any time and you'd sure be in Profit. With this I feel anyone can basically achieve financial freedom
*STEPHANIE KOPP MEEKS* , That's whom i work with
You can glance her name up on the internet and verify her yourself. she has years of financial market experience
Thanks so much I was able to find her page and I already leave her a message
This just kicked me in the pants so badly. Like I needed this more than you. And today is the day I become serious.
&1,068 left! I got this!
Way to go Evan!
❤🎉❤
2 car payments is awful. It definitely starts there.
This keeps you broke
One car payment is bad enough lol 2 car payments will drain you.
This woman's case is a bit different. Like 95% of her debt is just those two cars. And the total debt is around 1/3 of her annual income. I feel like this is fairly easy situation to get out of. Dave's taken plenty of calls from people in way ,way worse situations than this. She could probably get this knocked in a year, two years tops and not have to sell either car. Of course if she sells the cars, she could be out of debt in a couple months, basically just however long it takes to sell the cars.
@@forresthodge1024It’s going to depend on how soon she wants to contribute to her retirement. If she wants to start immediately, then she’s selling the cars.
Wow thank goodness I've taught my son well. He's doing awsome at the age of 26.
I read Ramsay's book. We bought my car $5,000 cash. A few months later my wife's car blew a gasket. So we sold it to some mechanic for like $900. We then bought her a $13,000 car. We paid $9,000 cash and her parents paid the other $4,000 cash and we paid them back fast. Dave says that owing your in-laws makes thanksgiving taste different. We don't know about that because we paid them back so fast thanksgiving hadn't arrived yet 😂. But here we are. No car payments years later.
I always thought cheap cars were too risky. Dave says to just gamble and risk it, which is how he got into bankruptcy.
@@Excalibur2 that's a pretty big false equivalency. You can take your used car to a mechanic before you buy and get it checked out, and you can buy used cars at trusted dealerships that offer full warranties. New cars can have problems too, problems that could leave you without transportation for weeks at a time. The additional risk of buying used does not outweigh the risk of taking on debt to buy a car that a) could have an issue anyway despite being new and which b) depreciates quicker than you can say depreciate.
@@DiponDasgupta it's a pretty fair comparison. There is risk with driving unreliable vehicles and as a car gets older that risk goes up. They just wear down.
It doesn't really matter if you take it to a mechanic, even if it's sound in the moment, it can break down at time. You can end up paying a grand per month in repairs, meanwhile, a newer used or even brand new might be under $500, maybe $300 if used. My own father spends more on repairs than I do car payments.
@@Excalibur2 it can break down sure, but it's not just a matter of luck. you can do the research on most reliable vehicles, the maintanance they will likely need at each milestone, and look up the maintenance history. You can have a mechanic check the vehicle over and make sure there are no obvious flaws. if you do all that and you still get a bad one that's pretty bad luck- but even if you have to do it twice you'd still be miles ahead of a new car payment.of all the vehicles my family has owned by far the most reliable was my 27 year old truck that i bought for $1200. My sisters brand new suv needed a new transmission not but 2 years into ownership and she was just lucky that she was within the warranty window. if i buy a 5k car that needs a new transmission im out 5k, if i buy a 35k car that needs a new transmission im out 35k.
@@DiponDasgupta all I'm saying is that, all else being equal, older cars that are cheap are so for a reason. You get what you pay for and they all start having more frequent problems as they age.
If you're broke, you don't have much choice but to take the gamble, but if you're making decent money it quickly becomes a risk to your job to not have reliable transportation.
Get out of debt no matter what! Paying it off is liberating. "The borrower is the slave of the lender." Proverbs 22:7.
She should absolutely be putting up to the company match into her 401k. That’s free money. She should also then be putting as much as possible to getting out of debt.
This makes the most sense! Get rid of the cars & start investing, but it’s outside of the baby steps so Dave won’t recommend it
The baby steps are there for a reason. People try and Olay the yield game. Debt is physiological more than mathematical. Visa and Mastercard employ ad agencies, have market focus groups all to make you believe the debt peddlers are there for you
Daves helped MILLIONS become millionaires and you have helped how many with your broke ass advice? lol. Go push your snake oil somewhere else. His plan has been PROVEN to work. Good day.
@@OopThereItIs77777 Your plan has been proven how many times compared to his? no one cares what YOU think this is the forum to get Daves advice lol.
@@donjohnson1416 ….Dude we’ve done Dave. Not ISH either, so you’re preaching to the choir. I was just saying it DOES make sense (not behavior wise) for her to start getting the match now & selling the cars. She’d only have like $100 that she could knock out within a month.
The dream team of Dave + Jade! Two issues with the advice here: 1) to have $3m after 25 years would take a 15% return rate per year, which is not reasonable. More likely is around 8% which gets her $1.2mil. 2) Don't pause your 401k investing - ever. You have to fund retirement. Maybe reduce the %, but don't reduce it below what it takes to get the max employer match (if applicable).
Your portfolio is subpar, I do 12% rate of return
I paused my 401k contributions for about 3 years. Luckily I'm only 30 and left my dead end job for something much higher paying. I hate thinking about the growth I missed, but I'm also proud of myself for being diligent and disciplined about investing as opposed to using my pay increase on things I don't need.
A reason to pause on #2 is that when you have debt, you have risk, you have unnecessary payments cutting into what you are able to do with your income. Until you have a proper emergency fund, same problem; you can't handle life if life happens. The idea is that you have to be handling the short-term well before you can prepare for the long-term.
So they're telling her not to invest at least 3% which they can fully match? That's free money. She just needs to concentrate on her debt.
Only for a little while, once she’s out of debt, she’s going to be able to invest and it not be such a burden.
@Kia828
Well the rate she's going it "should" be approximately 7 months but I seriously doubt it. She will not be selling her new car and continue to buy stuff she can't afford.
@@Anthrax57And she’ll probably get the math and continue to be in debt forever because she’s not ready to change her lifestyle.
If she was, she’d sell the cars. That frees up more income to pay down the rest of the debt. Then she can build a savings. Then she can contribute to retirement. Which can be done quickly if she wanted to. But she doesn’t. So she’ll keep doing what’s she’s doing.
I'm so glad I prioritized 401k and IRA contributions in my 20s and 30s. At 39, the flood of ever-growing (tax free!) dividends speak for themselves. The caller, at 38, has plenty of time to get going on her next egg, but she also needs to be deliberate and realistic in her expectations; what she could have built with $5k per year deferred starting at age 25, might require $15k per year now, which is not chump change to most people.
You mean tax deferred. 401k and IRA are tax deferred unless you are using the Roth equivalents
@@venkkandadai6042 Um, yes, I understand that, and I am referring to the tax free growth until withdrawal in a traditional IRA, or tax free growth and withdrawal in a Roth.
Dave, simply thank you for sharing your gift of helpful knowledge and information. And thank your wife for willingly sharing her gift (you) with all of us. May God continue to bless you both, along with the rest of your family.🙏🏾💜
this is very true. she should have just kept her car instead of giving it to her daughter she can buy her own she was only 16 so I don't see why you will give her a car payment.
Where are the $5000 cars? smh
She ain’t running like a gazelle yet
More like a chicken with its head cut off
15k for 25 years, is 1.2 million.
Nowhere close to 3.
That assumes you do a 6% and comoany matches 50% and she has more than $3000 in the bank. Idk where dave thinks you can have 3 million in retirement
Are you accounting for compounded gains?
375,000. What math are you people using. Or am I missing something.? I know there is compounding. But it's not gonna triple ur money. Writing calls and dividends will.... Risk free. Not sure why that stuff is not being talked about. And maybe 10% in options trading. That's how you get rich. Not this BS
@@Dan16673 its not even a million🤣🤣🤣
$15k plus her 6% match compounded for 25 years with around a 6-9% return would be right around only 1 million. Could be a little more or even a little less
Why can’t the 18 year old pay her own car payment???? Am I missing something?
She gave her the car.
@@jimmymcgill6778 The car wasn’t paid off. She’s in debt. She’s calling freaking out because she’s in debt; 7/8 of her debt is these 2 cars…1 of which her 18 year old, employed, fully capable daughter now drives. The daughter can still have the car with the car payment. Mom is in 40k of debt…over half is her car. Do I need to break it down any further?
I love the advice, but my company matches retirement, plus pension benefits. If I stop my retirement, I get cut soooo much in taxes like 1k or more. But if I pay retirement I get cut like 300ish in taxes… it’s simple math for me and my check is actually more when retirement is cut.. I rather pay myself before the government… I am seriously paying everything off. Even while I’m getting out of debt 💸 I still believe in saving for my retirement.
I drove a Colt Vista that I shared with my sister at that age 😂. Then mom took me to the car lot and bought me a used Tercel (when I was in college) . I felt like the most spoiled kid. This lady is bonkers.
I have two used Toyotas that are paid for, one of which is over 20 years old. Paid cash for that car and it has been the best blessing for our family! The caller should buy a quality, inexpensive used car and drive it for as long as she needs to get out of debt.
toyotas run forever. I have a 01 tundra that I have had since 02. daily driver
Jade's dramatic reactions are so me! Love her!
Never EVER give up company match 401k no matter who told u so
Company match is instant 100 % return
There is no rush to pay cars off, they are fix rate
Depends on how much you are in debt. In her case she should sell both cars the next day and buy 2 cheap cars and she’s pretty much out of debt. It wouldn’t take long at all to pay the rest off so might as well do that first than start investing.
Its for 2 years you drama queen lol. Daves plan has made millions of millionaires lol lol. Go spam someone else.
why wouldn’t you rush to pay off those cars? What’s the interest of $40k?
@@wbae1340Exactly!
@@BlueDauntless unless they signed up for stupid rate, anything under 3% can be ignored
We did everything exactly as the baby steps say, except stopping 401k. It is inexcusable to stop your retirement for anything... especially since Ramsey himself has shown countless times how starting early is so much better. I paid off debt just the same. No reason to not improve future you while improving present you.
Soooo many people swimming in debt. They don't seem to really care.
Giving up a 4 1/2%, 100% company match 🤦🏻♂️
She’s not giving it up. She’s delaying it.
@@BlueDauntlessword it however you want. Either way she's not taking advantage of free money
Not 3 million she won’t have anywhere near that.
Exactly
We are debt free (including the house, although this time last year we weren’t). When I decided I needed a car that would save me gas money (I drive Uber and Doordash part time), I used some cash I had on hand to buy a $16,000 car. And I set aside the oldest car we owned (a 2005 Honda Pilot) for our then 15-year-old. My husband’s car is also paid for. So we have 3 cars, all paid for. I would never give my daughter (or my sons when they get old enough) a car that has payments. Insurance is high enough for a teenage girl driving a car almost 20 years old. Imagine if she were driving a 2020 car! No thanks! And we could afford that new of a car if we wanted. But our cars run fine; why get something new?
It's crazy to see the people that make decent money and are still broke
Yes. Ugh... Most of Dave's videos that pop up on my feed are from people with houses, cars, good salaries, etc. and are still clueless. Just once I want to hear from someone who works hard but makes little money, has no debt, and doesn't make frivolous purchases, yet is concerned about saving enough for retirement years. I'd love to hear what advice Dave has for that.
75k in 9 months. 35k left. All just being stupid tax.
I have seen so many people use 40ks for emergency funds. Sad
15% of $90K for 24 yeats at 10% APY is only $1.2MM not several million
I just turned 29, a little behind on my retirement liking, and still have about $40k in debt with no kids and a homeowner. I could never pay down my debt because of my drinking issue but I’m 10 months sober now and went from $50k to $40k the last few months. I make a good salary at my day job and my part time. I am planning to pay off all my debt exactly a year from now or even sooner, but I am investing just 5% at work into 401k & Roth (my job matched 100% up to 9%) and another amount in my HSA. My thing is, I am picking up extra one serving shift a night (extra $200 a week) so I can invest into my retirement but can also pay down my debt as planned. (Most of my debt is interest free, the largest is 10%) as I believe in this concept Dave preaches but I also think if you can strategize to make extra money, take advantage of retirement because you’ll end up having to put in more a month in the future just to catch up on retirement. Everyone’s situation is so different and this isn’t a one size fits all.
You obviously did not hear what he told the caller. They do not teach to invest while in debt, rather pay off your debt then start investing.
Dave’s Baby Steps are a one size fits all.
If you’re not following them, that’s fine. But don’t call them his Baby Steps.
Get a part time job and put the 6% in 401k work 7 days a week till ur debt free then quit the part tine job
People get so excited about a 3% match. That is not going to get you "rich," at all. High consistent income well above the bills will get you rich.
Lol especially with the fees and limited options w no derivatives
Next time you are offered a 3% raise say no, because it is not going to get you rich
@@perotal IKR? Even a $1/hr raise is easily over $1k extra by the end of the year.
I have a hard time understanding why anyone would pass on a 401K match. That is essentially free money, a 100% return on investment instantly. That's more than even credit card debt. I get it why I am wrong, it is just hard.
They’re going to end up using the $ for emergency if they remain in debt, and get penalized for doing so
I disagree I think they should keep the 10k car bit sell the other 28k car
😂 And then I’ve got the Moneyyyyy @7:28 😂
An alcoholic cannot sort of quit drinking and expect to sober up.
She is losing money if she doesn’t put it into her 401k. I get not doing more than that until you get out of debt. But this is losing money.
What about the interest rate on her debt? Being comfortable with debt is Dave’s main issue. I have that same problem for sure
For such a short period of time It’s inconsequential
Missing out on the match is throwing about $5,500 a year out the window. The cars are very stupid, but even with the car payments there should be plenty of money on the budget for whatever is needed. This woman isn’t serious or budgeting.
She should start her retirement, NOW.
Bruv did you not watch the video, she cant because shes in lots of debt and has no spare money. She has to clean up the debt first and fix her spending habits.
@@thesig301 No. Saving for retirement (only at the level of an employer match) is more important than paying off debt
@@joecross1561 No. She needs to make peace with the fact that she will be retiring at the age of 80, just like everyone should.
And your plan has been proven for how many years and made how many millionaires? lol. Get out of here your OPINION doesnt matter.
@@thesig301 She can still do both. It's not an either or.
But a 401k is pre tax . Wouldn’t effect take home that much.
She can wipe out the debt this week and then take advantage of free money for retirement, but it means having to sacrifice a very little amount of lifestyle, and giving her adult daughter a little more adult responsibly.
Dave is exactly right that if she took this seriously now she will have millions, but if she doesn't change she is going to have very little.
It's so hard to not buy a nice car while in debt. Especially when you get a better job, finally making more than enough money. But I watch these vids just to help me stay on track 😆
I started a new career where I’m required to travel and it has been so tempting to buy a new car but that debt and these videos keeps me going
@BeautyInk&BodyBliss so what are you driving? A hoopty?
15k/yr for 25yrs is 375k not 3M
what kind of math is this??
“interest”
ok fine lets do 4% ….. now $600k
still not even close to $3M
oh and: where tf does he think you buy a car for $4000 in 2023
That is why I cringe every time I hear Dave say "It's not a math problem.". When your math is as off as this, it's definitely a math problem.
This woman will not do ANYTHING Dave says.
i agree
All these women have the same voice. You can tell they only call in to get approval and/or hear themselves broadcast.
Caller said she makes 90k + 25-30k in bonuses. She could easily knock out 40k in a year, if there’s not more to the story.
I am on Step 6 but contributing just under 20% to my Roth retirement accounts. I have under $100K left on my house with a rate of 2.7%. While I want to get that house paid off ASAP, I am making more than 2.7% return in my investments right now.
I thought 100% Dave Ramsey was getting ready to say “Sell the Daughter.” At 3:10😂😂😂
Can’t say it didn’t cross my mind…
@@woodside4life It was edited out 😛
Just let the 18yo assume payments and expenses because she's an adult. Sell her car and get it done. Dave never asked or mentioned the fact that she was having fun with a percentage of her income because she was receiving child support and alimony or such, which is totally unfair to the husband. Man goes through a divorce that was filed by his wife and lose half of his stuff because of her "feelings".
She's 100% not going to do what Dave said.
That's the part dave
Needs to explain more ...
We no how to pay off debt
But how do we do the investment
Part ....
Do we put the money in a
Flowerpot.....water it
& it grows into millions!
If they don't take the advise to sell those cars, analyze the budget... are there places where 3% can be found by reducing their spending more? I mean $20,000-30,000 bonuses really pays down debt quickly if it's used 100% toward that. Get used to having 3% less disposable income.
Please don't shame someone who has called for advice. Also don't interrupt the caller. I am not referring to Dave Ramsey as interrupting. So, she spends too much and realizes that. The reaction is one of the reasons I don't typically watch this show.
Always get your employer match first. An instant 100% and 50% gain is the best deal you will ever get. With $40K in debt and a ~$115K income, it'll take a year to pay off and not contributing 6% to the 401k for a year will be throwing away $5K in matching funds, and missing a total of $11.5K in contributions. The contributions plus the compound interest for 25 years will grow to $175K (using the same assumptions that Dave used when he said she would have $2M after saving 15% for 25 years), and would cost only 1 or 2 months interest (ballpark $400) on paying off the $40K debt. Take that $400 saved and put it into the 401k with employer match and it'll be worth $11K after 24 years. Big difference. Plus, Dave knows the car market is crazy right now but is suggesting buying cars for $3K and $5K. Poor advice all around.
The caller isn't suffocating in debt and there's no indication she's habitual about it. It's too bad Ramsey only pushes the one-size-fits-all "baby steps" plan that's very sub-optimal for people that got into debt because they were ignorant vs. emotional. It works, but it can be like using a sledgehammer on a thumbtack. I was disappointed when Ramsey killed the "Everyday Millionaires" show, but the advise given to millionaires frequently contradicted the baby steps. Imagine that.
I think the hard part is this advice is broadcast. So Dave and crew give the same message all the time since it is good advice for everyone but maybe not the best advice for every situation. Jade made a good point. If something happens and she needs the money locked in the 401k, she's going to lose the match in penalties. That probably won't happen, but that's the point. Good isn't always best.... but its still good.
This is the one area I highly disagree with the baby steps. This lady should be putting on the 6% up to the match and also getting out of debt, both are possible.
She should sell the expensive car, get another cheap one. Paying for all that is crazy. I can't imagine driving around a nearly $40k car on 90k income.
I don’t have any debt that I know of except student loans and approximately $5,000.00 in credit cards due to loss of income
😂 that’s still debt what do you mean
I don’t have debt except I owe like 4 people money 😂
I don't have any debt but I just have the $400,000 mortgage, $40,000 auto loan, $20,000 student loan, and $5,000 credit card loan 😂
I don't have any debts except I owe my sister $2000
You have debt 😂😂
Depending on car loan interest rate, you're better off investing up to employer match limit. Use the rest to pay off cars. Also math is wrong on 3mil with 15% investment rate during 25 yrs.
The path to success requires intentional PAIN. There is no doubt about that.
Yeah dave! You tell her
Please explain me where math is of 15% of 100k. In 10 or 20 years will get you even 1 million. It's no where close. Even with compounding. 20% of 100 k in 20 years is 400k. What are you investing in to triple your money. ???
@@TheAck201 just to make money. He is overselling his ridiculous ideas. Getting out of debt. Makes sense. That's all
She lyinnnn,she out there goin wils wit those bonuses
Thankfully here in Australia our employers have to put 11% of our gross income into Super ( similar to 401k)
Does Australia also have something like social security?
The way he ask “is she working” scared me lol
Not to defend either one but Its crazy that home girl is quick to throw her hands up and moap at 3:00 for 38k car debt when she herself was over 500k in debt. Look all I’m saying is we are not all the smartest people and we make mistakes. Hope who ever is reading this has woken up and decided enough is enough and you can get out of debt no matter what position you are in. Believe and achieve!
Jade threw up her hands because it turns out this is as easy a debt as there is to get out of.
You calling her "Home girl" is very passive aggressive in a manner that I will not name. Be careful with the words you're using and you're wrong here. Why does how much debt she was in have anything to do with this situation? It doesn't.
Just get rid of the cars, but you should match your (roth)401k immediately. You're basically getting a 6 percent raise that grows tax-free immediately! That is thousands and thousands of dollars in the long term. My advice would have been to match the 100% immediately and try to sell the vehicles.
Of course she's divorced. Avoid this woman guys. Especially if you have means. I'm surprised that hasn't crossed her mind.
I don't want to just drag this woman, but I suspect she might watch a lot of TV and social media influencers that feature a lot of designer shopping
I watch these videos to remember what not to do!
Never turn down free money. Smile and take the matching 3 percent.
Banks dont give free money, they freely take ya mony
“Turn down free money for no reason.” -Dave
How does he get from 15% of 90k invested for 25 years up to several millions? I don't understand those math. Seems unrealistic to me even with compound. Anyone can enlighten me please?
If everything goes as planned. Will be free in December 🎉
“Please don’t talk to me about a new purse “😂😂
I know you find it difficult Dave, but saving modest amounts of money and moderate investments are an epiphany to most of us. Never learned this. -
Admittedly stupid at 62.
Dave's energy during this episode reminds me of Michael Corleone trying not to explode at Kay for having an abortion in Godfather II.
I like when Michael slowly closed the front door on her while staring at her with the kids behind him..
How many people believe the caller will give up her vehicles 🧐?
Not me
The giggling happy ones that keep saying "yeah you're right" never learn
Man, the same shit doesn't apply to everyone. She earns 120k dollars. She doesn't need to sell anything and can easily pay the loan in under a year with some discipline.
Never down a 100% on your money. Never not invest in your 401k up to your employer match.
I order a Model Y Performance a month ago. My payment will be $750 a month for 72 months with a 15k down payment. I came to watch your videos so I can convince my self to lose my $250 deposit and move on.
Yup.
"Lose".
Just let that sink in for a minute..insanity.
I’m sorry but you gotta get the employer match especially when she has 0
All just scaremongering. Even successful business borrow money. As long as you are disiplined tactical with borrowing then do it
LOL Dave Math... 3 Mil in 25 years? What kind of returns you getting there? 8% gets you like 1.2M... and that's IF she's disciplined enough to save 15%
$15,000 per year at 10% compounded monthly for 25 years is $1.8M. C'mon man!!
As always, he's's assuming 15%, which isn't totally reasonable.
@@Kalvain14 No, he often cites 12% but even 12 doesn't get to that number.