Completely debt free as of last week-mortgage paid off! Car is paid for. No loans, no credit card debt and we have a 6 month emergency fund. 😊👍 It’s such a good feeling!
I am 100 percent debt free. ( no house payment either) To remain debt free, it takes a lot of work. I have to save a lot of money and keep living expenses low.
Not having debt gives you so much freedom. People thinking buying stuff on credit gives them the freedom to get what they want when they want it, but it's the opposite. Without debt you are free and have so many more choices in life.
So I don't have a story about debt because I've actually never been in debt. I was extremely fortunate to have been exposed to Dave Ramsey while I was still in high school. In a Career and Vocational Studies class I took as a sophomore, the teacher showed us some Dave Ramsey videos. I was interested in what he was saying so I told my parents about it and we took the Financial Peace University class together at our church the following semester. My dad had always been wise with money - in particular, we lived a very frugal lifestyle - but he told me about 1/3 of what Dave said was still new to him. He made some changes and my parents got out of debt within the next couple/few years. Since then, every car is paid for out-of-pocket, and the only debt my parents have is their house. However, my dad has just recently significantly increased his payments toward the house as that is the next big goal for them. As for me, I actually graduated from college with money in the bank. My dad helped me out a ton with this. He ended up paying for my entire tuition though I didn't ask or expect him to. All the while, I secured many scholarships and lived with my grandparents while keeping to the frugal way of living my parents taught me. I had a unique college experience. I actually got a year's worth in Australia (we lived there for a couple years), and then finished back in the States over the course of another 4 years. Back when we were in Aus, I was just starting college and was clueless about loans and financial aid. For a single year, my dad paid $20,000 for me. I didn't like that at all, so when I moved to New Mexico to go live with my grandparents I did things differently. Being out of the country for over a year meant there was no in-state tuition I could get anywhere. So what I did was enroll in the community college right on the campus of the state school for a year. At the same time, I could take up to 6 credits at the state school so it worked out really well for me to get the classes I needed. After a year, I transferred over to the state school, but had a problem. Since I was out-of-state (and wasn't going to become a resident for my dad's tax purposes in which he saved a lot of money), I was going to be charged an insane amount of money. I emailed the school's financial aid department explaining my situation and how I would have to leave as I could not afford to pay that amount. Seeing my GPA which was a 4.0 at the time, they gave me a scholarship for in-state tuition that very day. I did that calculation once after I graduated. It saved me over $50,000. In addition, I won many other scholarships here and there, everything from $300 for filling out a form in less than a hour, to $2,000 each semester for 4 semesters by participating in on-campus research. That scholarship alone helped me pay for almost all of my tuition for 2 years. However, since my dad paid this cost, I got to use my scholarship money to pay for living expenses. All in all, for 4 years it ended up costing $20,000 in tuition - the same amount it cost for a year in Australia. Thanks to my dad's help, I did not have to work and could focus instead on doing research, keeping my grades up, and taking on a leadership role in arguably the most active and successful organization on campus. Now, after a while of traveling since graduating last year thanks to an amazing opportunity, I am looking for my first degree-specific job. For me, that's in engineering. I just got my first job offer a couple weeks ago, but did not take it because I am very confident there is something better out there that will come up. The freedom to make that choice because I am not tied down in a web of debt should not be understated. I have options, like Dana says. I don't have to take the first thing that comes along. Because of this, I will be able to set myself up in a better position with salary and total compensation from the get-go. I feel that the path to financial freedom and success is paved with intentionality, planning, and setting oneself up to be able to make wiser decisions.
Thank you for addressing being in debt and faced with cancer. My husband fought cancer for 2 years. It included 2 major colorectal surgeries, taking several rounds of different chemo treatments, and then radiospheres injected after it spread to the liver. We were told a round of chemo was about $60,000. Radiospheres in one section of the liver was $30,000. My husband wanted desperately to live. Fortunately for us we had excellent employer self-insured insurance coverage with a low copay and an unlimited lifetime limit. It is important to know what insurance covers on cancer treatment and the policy's lifetime limit. I think most insurance has a limit on lifetime coverage for all types of medical payments. Cancer treatment alone can greatly reduce that limit. A $1 million dollar lifetime limit looks large on paper, but isn't large at all when fighting cancer that can reoccur.
@Bri A True. Most insurance companies have a yearly out of pocket expense limit the covered has to pay. Even though treatment is that expensive, of those amounts, we had a yearly out of pocket limit around $2,500 that we had to pay. Once we met that, they covered the rest. From our experience, I would say find out how the insurance companies pay on chemo treatments. My husband's treatments were done in an office environment, not at the hospital. His treatments were considered sick visits. Our insurance had unlimited sick visits with $20 co-pays. If done in the hospital, we would have had to pay 10% of the bill. I think most insurance limits the number of sick visits. Chemo treatment can surpass limited visits. It is critical to find out how insurance pays on chemo treatments, yearly out of pocket limit the covered has to meet, and the lifetime amount of coverage the insurance provides. Cancer also takes the person's ability to work. In my husband's case, it did not give him the quality of life he fought to get back. It was a very costly bandaid. I pray for a cure for all.
Hi Dana, Todd and I have went through the Dave Ramsey course twice. Once to learn and a second time as a refresher. We are out of all debt except for the house. I guess we've kind of slowed down but just watching this makes me think we need to ramp back up and start paying more on our house every month :-) I love watching the Dave Ramsey show, I ALWAYS learn something when I do. Thanks for this video, I know it's 3 months old but for some reason it popped up in my feed today. Guess I needed it :-) Anyway, love your videos. ~Carla
I agree with you. There is no such thing as good debt. Student loans are bad because there is no guarantee that you will get that job that will justify what you paid in student loans. I hear calls on Dave Ramsey's show all of time about women that go 100,000 into debt and decide to be a stay at home mom. They took away their options of staying at home with their kids when they signed on the dotted line. Not to mention people go into a huge amount of debt to become counselors and never make any more 40K. You can make 40K a year without getting a high school diploma. It just doesn't make any sense. Don't waste the money on college if you can't get over a 6 figure income within a few years. And definitely don't go into debt for it. Another great video.
That’s the key -trying to impress people, trying to keep up with the Jones, etc This mindset causes so much unnecessary debt especially in small places where everyone knows everyone.
Im proudly can say over years and years been in debt that my family right now is debt free. You are completely right on every single way. I loved watching Dave Ramsey.
Thank you for sharing your experiences with debt. Saw another TH-camr give every excuse as to why she is stopping her debt snowball to take on more debt to satisfy her want in owning a house. Thankfully you’re following a plan and sticking to it.
18 years ago I couldn't afford a funeral for my first son. (I've lost two more sons after him as well.) That was so heartbreaking I went through the first two losses alone. Thank GOD my now husband was there for me when we lost our first son together (my third). Thank GOD we now have a Rainbow Baby that's loved so much and healthy. "DEBT IS EVIL". We paid CASH for our vehicle. We are currently saving up for a downpayment of hopefully 50% for a mortgage. Other than that that's the only debt we would have. We consider that an investment not a debt.
When my MIL talks about what's going to happen when my FIL passes, I ask her, "have u made a financial plan?" Her answer is always "no, I don't know what I'm going to do about that". So I feel like we have to be financially stable above a normal standard because I know that when he passes, and ultimately when she passes, we will have a lot of extra debt to take care of, and I save and try not to spend because I have 3 kids and I don't want them to feel the burden we feel because of our parents bad financial decisions. Thankfully I am only 26 and didn't wait until late in my life to make this choice because not only will we be able to get out of debt well before our deaths(as long as nothing horrible happens) but we should be able to retire early and save for our children to have an inheritance.
Hi, I just found your channel and subscribed. You mentioned being from the Philadelphia area. I have never been there, but will be staying for about a week this summer. Any suggestions on must-sees or things to do in the area? Enjoying your channel.
In Sweden everybody can afford medial care because you only pay SEK 200 which is approx. USD 20. So if you get sick you dont have to get stressed about money
Can u tell if u dont mind.. R u debt free now and how long did it take to clear all ur debt...? Coz i am in baby step 2 and it is seeming like it will never end. I think ur story will me a much needed motivation. Thanks... And keep uploading these videos... U r doin a great job. Ur follower from India 😊
I paused my debt snowball for adoption but I hate that I have any debt. Even with my minimum payments it's so much money. My adoption failed in December and I had to start all over. If I had zero debt it would have been so much less stress. Instead I'm trying to come up with more agency fees on time. Can't wait to have this over with and can get rid of my debt.
Perhaps you should pause your adoption for the debt snowball instead...it will be difficult raising a child on limited cash flow. ..medical care..education..schooling.. clothing..food..extracurricular. ..etc..taking care of kids is by no means inexpensive
@@hilaryjoseph9706 my medical care and education is completely free, food and clothing do not need to be expensive. Kids do not need to be as expensive as people make them to be. Dave Ramsey even supports pausing your debt snowball to focus on building a family. I've been on this journey over six years, no way I'm pausing and waiting longer just to pay off some debt. My cash flow won't be limited, I make a very good income, I just won't be able to pay my debt down as fast as if I didn't have a child. Since I'm still making my payments and I'm not taking on more debt, my debt is still decreasing, just not as fast as when snowballing. If you've never experienced infertility you will never know what it's like to endlessly wait for something you want so badly. And with laws changing, requirements changing, waiting until I'm debt free could mean that by the time I start the process all over again (which I would have to do since my current paperwork would no longer be valid if I paused right now) I could no longer qualify. Nope, not worth it.
@@SimplyMicheleLynn you do you..only you can know your particular situation...I feel your frustration..I've struggled with infertility so I know what you are going thru..now that God has blessed me with my kids my new decision is whether to pay down debt or allow my children to to experience the joy vacationing abroad..going to dance and karate and music .get a quality education ...it's a tough decision
Jobs that require moving often, sick parents, in-laws and kids!!!!!! My hubbies job has caused us to move to move 8 times in 13 years. Both my kids were continually sick until I decided to homeschool. My youngest could not make a full week of Kindergarten until February bcs he was sick so much. And I’m not talking a little cough. I’m talking the tested flu, strep throat, MRSA, norovirus , tonsils, tubes adenoids (yes they regrow), eye therapy, physical therapy. They were sent home from school with fevers, vomiting, diarrhea. Anything minor my kids have had it multiple times. My hubby and I have had to sacrifice to keep me at home in order to take care of the kids. We are not out of debt, but living very tight on one income. My mom found out she wasn’t able to work anymore due to her physical disabilities, so we had to help out. Also, I have needed to care for my mother and father-in-law due to sickness for extended periods of time.
Can you talk more about building wealth. As a single person I have money to invest but I am a bit nervous about what to do. I do currently have a 401k with my employer which will match in another year at 100%. I was recently divorced and at 52 i feel like i am starting over. No debt btw.
If your employer matches 100% of your 401k, then change your contribution to as high as you can tolerate. That is up to 20% of your gross paycheck or a lot more. Do that since you say your employer matches 100%. Say your gross paycheck every month is $2,000. 20% to your 401k is $400 before taxes that they cut from your gross paycheck and put into your 401k. Then your employer matches with another $400. So, you are saving a total of $800 every paycheck into your 401k. That is amazing.
Here in Canada I can take 35 weeks off for parental leave with less than half my income or 61 weeks with very low income. If I didn't have debt I could easily take the 61 weeks off with my daughter. Instead I'm probably only going to be able to do the 35 weeks. Which is better than some other countries but it would have been so nice to have more time to bond with her.
No debt whatsoever. Going to be cremated and that is $2,500 and in Canada we get a cheque from the government for that amount. There is enough money for a plaque for my resting place. Live within my means. Have a small savings account. Plans in place for my possessions when I go. My husband passed away from four types of cancer. Health care in Canada is great, but travel is expensive. So we adjusted our living to accommodate our travel. Having family close helps.
Great vid thank you. Are you saying its best to avoid college completely in order to avoid student loans? I know people who have been very successful who didnt go to college.
So I'm a little conflicted. I hear your take of how "evil" debt can be. I'd like your opinion on my take on these situations. When we bought our car we had a choice of buying 2 small economy cars and paying $40,000 in cash. Or a family car that can carry more stuff like for Mommy carpools, soccor practice/games, etc, etc. The only thing point for us tho was, we were offered 0% interest if we bought the family car. So now, here's the debate do we: a) pay in full in all cash, or b) do we take the interest free (also added our son as a co-signer to start building his non-existent credit). So the mindset was, pay it off or take this opportunity to build credit and put the money into an interest bearing account. So we decided to take the latter. Everything's great. But now after listening to you and how any borrowing is bad I'm super conflicted. Cuz on 1 side: we're earning interest and teaching our college bound son how to build credit (so maybe he can buy a house someday) and the flip side: now we look at that car budget sitting the account and start thinking; well since we have paid off 3 years of it already so maybe we can take 1/2 of that money and spend it on a new roof or a bigger bathroom with a tub instead of only a shower. So in your opinion did I do wrong? Cuz you believe all debt is bad. But in real life you will never get good housing (rentals) if you have zero or low credit, your interest rate will always be higher when you do buy a house, and you will never see an offer of 0% interest on anything you purchase. Here's another example. During super bowl, we went to shop for a big screen TV (all money experts say that's when the deals were for TV's). I could of bought the TV in cash. But because our credit is strong I decided to put it on me and my son's credit (again) with 0% interest for a year, plus they paid me 10% cash back on top. Not only did we qualify for more than the asking price (they gave us 3 times more credit than needed. I think they wanted us to spend more.). But we got $400 back on top, as cashbacks. I then paid it off the very next week. So now my son has like really good credit, because of the debt pay off. But is all that still bad, if I hurt no body (not even myself) and helped out my son in building his credit portfolio? Then for them to give me back an additional $400 that I wasn't expecting. That was cherry on top. But i'd like your opinion on that. Cuz your a financial person by trade. I watch your videos every week. And you said: "ALL debt is bad."
Here's a question... If you owe on a car that has 0% interest and you have equal amount of money in the bank earning interest - do you really consider that you have debt? To me debt is when you owe money that you don't have....
Teresa S My confusion comes when I have already paid off 1/2 of the car. If I spend that 1/2 in the bank for a different purpose. Did I defeat the purpose of budgeting that money? Did I assume bad debt by not paying it off straight out? So Dana says, monthly payments robs you of income, peace, etc, etc. So I'm conflicted.
@@jncchang176 Hi, if you pay off 1/2 the car, in my opinion, yes you can spend that same amount from the bank and still not be 'in debt'. My thought -Debt is when you owe money, if you owe 1/2 the price of the car and you have 1/2 the price of the car in the bank - you are not in debt. Actually you are getting interest on the money in the bank and paying 0 interest on the car, so you are ahead. The problem for majority of people (not all) is that they would end up spending the bank money prior to having the car paid off and yes then you will be in debt. But if you have the control not to do that then you will be fine. As an aside, sometimes it's even better to do it this way because you will probably pay the car payment out of your pay cheque each month but would you actually put that same amount in a savings account if you didn't have any payment to make?
Teresa S Yes. That was the thinking. Make interest on the money since the financing cost me nothing. But both Bri & you are right on both counts. a) I don't owe the pink slip of ownership on the car so if I suddenly die the car can be in question. However, I won't care anymore cuz I'm gone. b) that discipline that Teresa spoke of to resist spending that excess money in the account. That desire to spend it is very strong and tempting. You're both right. I simply heard Dana say that I'm robbing myself by having a monthly payment, etc, etc. And I grew concerned that I did something wrong. One thing nobody mentioned was that it costs my car insurance more when I owe a car because I'm required to carry low deductible comprehensive and collision than if I own the car/title to the car. I can even opt to carry none should I desire. But I still carry full coverage regardless just for the peace of mind of not worrying about buying another car when I know nothing about car maintenance. But I'm glad for all your input. Keep it up. 👍😁
Completely debt free as of last week-mortgage paid off! Car is paid for. No loans, no credit card debt and we have a 6 month emergency fund. 😊👍
It’s such a good feeling!
Congratulations
Congratulations!. .I want to be where you are now....it is so difficult. .but with God all things are possible
The stress of being in debt is enormous. The security of NOT being in debt is liberating. Keeping that mindset of staying debt free is important.
I am 100 percent debt free. ( no house payment either) To remain debt free, it takes a lot of work. I have to save a lot of money and keep living expenses low.
Not having debt gives you so much freedom. People thinking buying stuff on credit gives them the freedom to get what they want when they want it, but it's the opposite. Without debt you are free and have so many more choices in life.
Dana always helping me stay humble and away from debt lol
So I don't have a story about debt because I've actually never been in debt. I was extremely fortunate to have been exposed to Dave Ramsey while I was still in high school. In a Career and Vocational Studies class I took as a sophomore, the teacher showed us some Dave Ramsey videos. I was interested in what he was saying so I told my parents about it and we took the Financial Peace University class together at our church the following semester. My dad had always been wise with money - in particular, we lived a very frugal lifestyle - but he told me about 1/3 of what Dave said was still new to him. He made some changes and my parents got out of debt within the next couple/few years. Since then, every car is paid for out-of-pocket, and the only debt my parents have is their house. However, my dad has just recently significantly increased his payments toward the house as that is the next big goal for them.
As for me, I actually graduated from college with money in the bank. My dad helped me out a ton with this. He ended up paying for my entire tuition though I didn't ask or expect him to. All the while, I secured many scholarships and lived with my grandparents while keeping to the frugal way of living my parents taught me. I had a unique college experience. I actually got a year's worth in Australia (we lived there for a couple years), and then finished back in the States over the course of another 4 years. Back when we were in Aus, I was just starting college and was clueless about loans and financial aid. For a single year, my dad paid $20,000 for me. I didn't like that at all, so when I moved to New Mexico to go live with my grandparents I did things differently. Being out of the country for over a year meant there was no in-state tuition I could get anywhere. So what I did was enroll in the community college right on the campus of the state school for a year. At the same time, I could take up to 6 credits at the state school so it worked out really well for me to get the classes I needed. After a year, I transferred over to the state school, but had a problem. Since I was out-of-state (and wasn't going to become a resident for my dad's tax purposes in which he saved a lot of money), I was going to be charged an insane amount of money. I emailed the school's financial aid department explaining my situation and how I would have to leave as I could not afford to pay that amount. Seeing my GPA which was a 4.0 at the time, they gave me a scholarship for in-state tuition that very day. I did that calculation once after I graduated. It saved me over $50,000. In addition, I won many other scholarships here and there, everything from $300 for filling out a form in less than a hour, to $2,000 each semester for 4 semesters by participating in on-campus research. That scholarship alone helped me pay for almost all of my tuition for 2 years. However, since my dad paid this cost, I got to use my scholarship money to pay for living expenses. All in all, for 4 years it ended up costing $20,000 in tuition - the same amount it cost for a year in Australia. Thanks to my dad's help, I did not have to work and could focus instead on doing research, keeping my grades up, and taking on a leadership role in arguably the most active and successful organization on campus.
Now, after a while of traveling since graduating last year thanks to an amazing opportunity, I am looking for my first degree-specific job. For me, that's in engineering. I just got my first job offer a couple weeks ago, but did not take it because I am very confident there is something better out there that will come up. The freedom to make that choice because I am not tied down in a web of debt should not be understated. I have options, like Dana says. I don't have to take the first thing that comes along. Because of this, I will be able to set myself up in a better position with salary and total compensation from the get-go. I feel that the path to financial freedom and success is paved with intentionality, planning, and setting oneself up to be able to make wiser decisions.
Wow..amazing story...for some of us too late but we will make better decisions going forward
Thank you for addressing being in debt and faced with cancer. My husband fought cancer for 2 years. It included 2 major colorectal surgeries, taking several rounds of different chemo treatments, and then radiospheres injected after it spread to the liver. We were told a round of chemo was about $60,000. Radiospheres in one section of the liver was $30,000. My husband wanted desperately to live. Fortunately for us we had excellent employer self-insured insurance coverage with a low copay and an unlimited lifetime limit. It is important to know what insurance covers on cancer treatment and the policy's lifetime limit. I think most insurance has a limit on lifetime coverage for all types of medical payments. Cancer treatment alone can greatly reduce that limit. A $1 million dollar lifetime limit looks large on paper, but isn't large at all when fighting cancer that can reoccur.
@Bri A True. Most insurance companies have a yearly out of pocket expense limit the covered has to pay. Even though treatment is that expensive, of those amounts, we had a yearly out of pocket limit around $2,500 that we had to pay. Once we met that, they covered the rest. From our experience, I would say find out how the insurance companies pay on chemo treatments. My husband's treatments were done in an office environment, not at the hospital. His treatments were considered sick visits. Our insurance had unlimited sick visits with $20 co-pays. If done in the hospital, we would have had to pay 10% of the bill. I think most insurance limits the number of sick visits. Chemo treatment can surpass limited visits. It is critical to find out how insurance pays on chemo treatments, yearly out of pocket limit the covered has to meet, and the lifetime amount of coverage the insurance provides. Cancer also takes the person's ability to work. In my husband's case, it did not give him the quality of life he fought to get back. It was a very costly bandaid. I pray for a cure for all.
I have been following you a long time and look forward to your videos!! Can't wait to see you become debt free!! Are you getting close?
Hi Dana, Todd and I have went through the Dave Ramsey course twice. Once to learn and a second time as a refresher. We are out of all debt except for the house. I guess we've kind of slowed down but just watching this makes me think we need to ramp back up and start paying more on our house every month :-) I love watching the Dave Ramsey show, I ALWAYS learn something when I do. Thanks for this video, I know it's 3 months old but for some reason it popped up in my feed today. Guess I needed it :-) Anyway, love your videos. ~Carla
Hi Carla!!!!! So exciting to see a comment from you! Love your channel. ❤️💕 Thanks for watching!
I agree with you. There is no such thing as good debt. Student loans are bad because there is no guarantee that you will get that job that will justify what you paid in student loans. I hear calls on Dave Ramsey's show all of time about women that go 100,000 into debt and decide to be a stay at home mom. They took away their options of staying at home with their kids when they signed on the dotted line. Not to mention people go into a huge amount of debt to become counselors and never make any more 40K. You can make 40K a year without getting a high school diploma. It just doesn't make any sense. Don't waste the money on college if you can't get over a 6 figure income within a few years. And definitely don't go into debt for it. Another great video.
Peace of mind is so huge!!
That’s the key -trying to impress people, trying to keep up with the Jones, etc This mindset causes so much unnecessary debt especially in small places where everyone knows everyone.
Choices are so very important! Also, your hair looks lovely in this video. Happy Tuesday!
You are a great encouragement to me. I love your authenticity, thanks for bringing your A game.
You (and your channel) are just stellar!
Point on point on point! Much love...xo
Im proudly can say over years and years been in debt that my family right now is debt free. You are completely right on every single way. I loved watching Dave Ramsey.
I don’t like debt myself as well the day only debt I have is my car and I’m working really hard to get that payed off
Jeremy Shearer just think of how much more money you'll have to invest 🤑
Bri A I will check that out as well. I have a video on that topic.
The best car is the one that's paid for!
Great video as usual!!! ♥️ It's so sad how expensive funerals cost. It shouldn't be that way.
I think this is one of your best videos. So true.
Listening to this on the way to my Dave job!!
Thank you for sharing your experiences with debt. Saw another TH-camr give every excuse as to why she is stopping her debt snowball to take on more debt to satisfy her want in owning a house. Thankfully you’re following a plan and sticking to it.
I love this video. I really needed to hear this today. Thank you!
Worked several jobs in high school and college and paid off all my loans three months after graduating college😊
18 years ago I couldn't afford a funeral for my first son. (I've lost two more sons after him as well.) That was so heartbreaking I went through the first two losses alone. Thank GOD my now husband was there for me when we lost our first son together (my third). Thank GOD we now have a Rainbow Baby that's loved so much and healthy. "DEBT IS EVIL". We paid CASH for our vehicle. We are currently saving up for a downpayment of hopefully 50% for a mortgage. Other than that that's the only debt we would have. We consider that an investment not a debt.
@Bri A Thank You very much for your kind words. I hope things go beautifully for you as well!
When my MIL talks about what's going to happen when my FIL passes, I ask her, "have u made a financial plan?" Her answer is always "no, I don't know what I'm going to do about that". So I feel like we have to be financially stable above a normal standard because I know that when he passes, and ultimately when she passes, we will have a lot of extra debt to take care of, and I save and try not to spend because I have 3 kids and I don't want them to feel the burden we feel because of our parents bad financial decisions. Thankfully I am only 26 and didn't wait until late in my life to make this choice because not only will we be able to get out of debt well before our deaths(as long as nothing horrible happens) but we should be able to retire early and save for our children to have an inheritance.
Hi, I just found your channel and subscribed. You mentioned being from the Philadelphia area. I have never been there, but will be staying for about a week this summer. Any suggestions on must-sees or things to do in the area? Enjoying your channel.
Soo Dana are you debt free? I dont think I've seen a video about that... I agree with you and look forward to all your videos thanks
She calls herself Debt free Dana. So, she is debt free!
Thank You Dana!! Eye opening!!
Your hair looks great btw!
I just love your videos. Hope you have a great day!
It is difficult to get a job because debt causes bad credit and bad credit makes getting a good job difficult!
In Sweden everybody can afford medial care because you only pay SEK 200 which is approx. USD 20. So if you get sick you dont have to get stressed about money
Can u tell if u dont mind.. R u debt free now and how long did it take to clear all ur debt...? Coz i am in baby step 2 and it is seeming like it will never end. I think ur story will me a much needed motivation. Thanks... And keep uploading these videos... U r doin a great job. Ur follower from India 😊
I paused my debt snowball for adoption but I hate that I have any debt. Even with my minimum payments it's so much money. My adoption failed in December and I had to start all over. If I had zero debt it would have been so much less stress. Instead I'm trying to come up with more agency fees on time. Can't wait to have this over with and can get rid of my debt.
Perhaps you should pause your adoption for the debt snowball instead...it will be difficult raising a child on limited cash flow. ..medical care..education..schooling.. clothing..food..extracurricular. ..etc..taking care of kids is by no means inexpensive
@@hilaryjoseph9706 my medical care and education is completely free, food and clothing do not need to be expensive. Kids do not need to be as expensive as people make them to be. Dave Ramsey even supports pausing your debt snowball to focus on building a family. I've been on this journey over six years, no way I'm pausing and waiting longer just to pay off some debt. My cash flow won't be limited, I make a very good income, I just won't be able to pay my debt down as fast as if I didn't have a child. Since I'm still making my payments and I'm not taking on more debt, my debt is still decreasing, just not as fast as when snowballing. If you've never experienced infertility you will never know what it's like to endlessly wait for something you want so badly. And with laws changing, requirements changing, waiting until I'm debt free could mean that by the time I start the process all over again (which I would have to do since my current paperwork would no longer be valid if I paused right now) I could no longer qualify. Nope, not worth it.
@@SimplyMicheleLynn you do you..only you can know your particular situation...I feel your frustration..I've struggled with infertility so I know what you are going thru..now that God has blessed me with my kids my new decision is whether to pay down debt or allow my children to to experience the joy vacationing abroad..going to dance and karate and music .get a quality education ...it's a tough decision
I am barely making it pay check to pay check. What is a good free website that I can use to set up a budget?
Jobs that require moving often, sick parents, in-laws and kids!!!!!!
My hubbies job has caused us to move to move 8 times in 13 years.
Both my kids were continually sick until I decided to homeschool. My youngest could not make a full week of Kindergarten until February bcs he was sick so much. And I’m not talking a little cough. I’m talking the tested flu, strep throat, MRSA, norovirus , tonsils, tubes adenoids (yes they regrow), eye therapy, physical therapy. They were sent home from school with fevers, vomiting, diarrhea. Anything minor my kids have had it multiple times.
My hubby and I have had to sacrifice to keep me at home in order to take care of the kids. We are not out of debt, but living very tight on one income.
My mom found out she wasn’t able to work anymore due to her physical disabilities, so we had to help out. Also, I have needed to care for my mother and father-in-law due to sickness for extended periods of time.
Hang in there! Stay calm and call for strength and healing from Jesus
Can you talk more about building wealth. As a single person I have money to invest but I am a bit nervous about what to do. I do currently have a 401k with my employer which will match in another year at 100%. I was recently divorced and at 52 i feel like i am starting over. No debt btw.
If your employer matches 100% of your 401k, then change your contribution to as high as you can tolerate. That is up to 20% of your gross paycheck or a lot more. Do that since you say your employer matches 100%.
Say your gross paycheck every month is $2,000. 20% to your 401k is $400 before taxes that they cut from your gross paycheck and put into your 401k. Then your employer matches with another $400. So, you are saving a total of $800 every paycheck into your 401k. That is amazing.
Here in Canada I can take 35 weeks off for parental leave with less than half my income or 61 weeks with very low income. If I didn't have debt I could easily take the 61 weeks off with my daughter. Instead I'm probably only going to be able to do the 35 weeks. Which is better than some other countries but it would have been so nice to have more time to bond with her.
The Choice of Motherhood In Sweden you get a year and a half with 80% of your income. It was fantastic to be able to stay at home for so long
No debt whatsoever. Going to be cremated and that is $2,500 and in Canada we get a cheque from the government for that amount. There is enough money for a plaque for my resting place. Live within my means. Have a small savings account. Plans in place for my possessions when I go. My husband passed away from four types of cancer. Health care in Canada is great, but travel is expensive. So we adjusted our living to accommodate our travel. Having family close helps.
What is a 401k ?
Great vid thank you. Are you saying its best to avoid college completely in order to avoid student loans? I know people who have been very successful who didnt go to college.
No ..she's saying cash flow it if you can...save and work your way through..but avoid student loans at all cost
Thank you
5:15am video!
So I'm a little conflicted. I hear your take of how "evil" debt can be. I'd like your opinion on my take on these situations. When we bought our car we had a choice of buying 2 small economy cars and paying $40,000 in cash. Or a family car that can carry more stuff like for Mommy carpools, soccor practice/games, etc, etc. The only thing point for us tho was, we were offered 0% interest if we bought the family car. So now, here's the debate do we: a) pay in full in all cash, or b) do we take the interest free (also added our son as a co-signer to start building his non-existent credit). So the mindset was, pay it off or take this opportunity to build credit and put the money into an interest bearing account. So we decided to take the latter. Everything's great. But now after listening to you and how any borrowing is bad I'm super conflicted. Cuz on 1 side: we're earning interest and teaching our college bound son how to build credit (so maybe he can buy a house someday) and the flip side: now we look at that car budget sitting the account and start thinking; well since we have paid off 3 years of it already so maybe we can take 1/2 of that money and spend it on a new roof or a bigger bathroom with a tub instead of only a shower. So in your opinion did I do wrong? Cuz you believe all debt is bad. But in real life you will never get good housing (rentals) if you have zero or low credit, your interest rate will always be higher when you do buy a house, and you will never see an offer of 0% interest on anything you purchase. Here's another example. During super bowl, we went to shop for a big screen TV (all money experts say that's when the deals were for TV's). I could of bought the TV in cash. But because our credit is strong I decided to put it on me and my son's credit (again) with 0% interest for a year, plus they paid me 10% cash back on top. Not only did we qualify for more than the asking price (they gave us 3 times more credit than needed. I think they wanted us to spend more.). But we got $400 back on top, as cashbacks. I then paid it off the very next week. So now my son has like really good credit, because of the debt pay off. But is all that still bad, if I hurt no body (not even myself) and helped out my son in building his credit portfolio? Then for them to give me back an additional $400 that I wasn't expecting. That was cherry on top. But i'd like your opinion on that. Cuz your a financial person by trade. I watch your videos every week. And you said: "ALL debt is bad."
Here's a question...
If you owe on a car that has 0% interest and you have equal amount of money in the bank earning interest - do you really consider that you have debt?
To me debt is when you owe money that you don't have....
So yes ALL debt is bad but I wouldn't think what you describe above is 'true' debt.
Teresa S My confusion comes when I have already paid off 1/2 of the car. If I spend that 1/2 in the bank for a different purpose. Did I defeat the purpose of budgeting that money? Did I assume bad debt by not paying it off straight out? So Dana says, monthly payments robs you of income, peace, etc, etc. So I'm conflicted.
@@jncchang176 Hi, if you pay off 1/2 the car, in my opinion, yes you can spend that same amount from the bank and still not be 'in debt'.
My thought -Debt is when you owe money, if you owe 1/2 the price of the car and you have 1/2 the price of the car in the bank - you are not in debt.
Actually you are getting interest on the money in the bank and paying 0 interest on the car, so you are ahead.
The problem for majority of people (not all) is that they would end up spending the bank money prior to having the car paid off and yes then you will be in debt. But if you have the control not to do that then you will be fine.
As an aside, sometimes it's even better to do it this way because you will probably pay the car payment out of your pay cheque each month but would you actually put that same amount in a savings account if you didn't have any payment to make?
Teresa S Yes. That was the thinking. Make interest on the money since the financing cost me nothing. But both Bri & you are right on both counts. a) I don't owe the pink slip of ownership on the car so if I suddenly die the car can be in question. However, I won't care anymore cuz I'm gone. b) that discipline that Teresa spoke of to resist spending that excess money in the account. That desire to spend it is very strong and tempting.
You're both right. I simply heard Dana say that I'm robbing myself by having a monthly payment, etc, etc. And I grew concerned that I did something wrong. One thing nobody mentioned was that it costs my car insurance more when I owe a car because I'm required to carry low deductible comprehensive and collision than if I own the car/title to the car. I can even opt to carry none should I desire. But I still carry full coverage regardless just for the peace of mind of not worrying about buying another car when I know nothing about car maintenance. But I'm glad for all your input. Keep it up. 👍😁
Please put the link to your debt free scream.
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Yes all debt is bad because it reduces cash flow.