Two cars, paid CASH! Paid off house earlier this year! 61f and 64m let's us RETIRE and still be EDMs!! Get your money working for you. Not the other way around!!
well as a37 year old in wisconsin ive NEVER had a car loan.. but i wa s ac-a- student mosty in my town b student... i get 37 mpg on pure gas car ive met a younger person with 0 kids single with a suv who travles a ton i dont at all... so her gas per month is EASY 2-2.3 time more then me i speed... but i dont break on the highway like ppl do.. 80%of rich ppl are jerks pos or both how can ppl have thousading of videos of overworking when the boss make 30 years of suerp high pay in one year 78 at middle income and about 95 at med income so a entire life
@@aolvaar8792 for me the intangible benefits outweigh any short term math gains. For some it is always a stressful thing in the back of your mind to be in debt.
The thing is that paying off the car/s give you peace of mind. My husband and I talked about how to approach money before we got engaged and we approach it the same. Everyone should date for marriage and discuss this sort of thing.
According to Dave 'no one got rich on 2100 a year' (which is just the spread) but his compound interest theory is 12% a year 2100 over 35 years = 1mil .... so technically I disagree here Dave
But the guy's not investing it. If he was investing it, he would make money. But he's not. It's just sitting in a car, and he's paying the bank. Get rid of the payments, and then invest the car payments.
@@jimroscoviusthat’s not what they are doing at all. They took out a loan on a vehicle. She wants to pay it off quickly. In order to do that you have to redirect cash in hand to the loan issuer. He wants to keep that money because he can earn more in investments. They never stated whether he actually is investing the cash they would use to pay off the car. So it depends if he’s actually following through and if the psychology factor of having zero debt offsets the ability to outgrow the loan interest in other investments.
@@Ryan-di5zothey shouldn’t pay the loan quickly, they should build up the money to pay it off and invest the money quickly. It is the mathematically correct option.
Since he already has the car, yes. Saving the money for the vehicles set aside for investment will statistically yield profit if you’re willing to accept the small risk associated.
Treasury bills and HYSAs are at ~5% right now. After taxes the difference is pretty negligible, but 0% shouldn’t be the equation. Personally I wouldn’t pay them off early I’d put the extra in my Roth instead, but I certainly can’t fault anyone for wanting a paid off car. I paid off all mine and it’s great
Even if he is right,which he is not, this is not a math question. He is wanting to keep the loan for at most < 1,000 per year. He needs to start looking at what it’s worth to have a happy wife. It’s worth much more than what he gets on the interest spread.
Dave compares the difference in interest rates one way when he wants to prove one thing and compares the difference another way when he wants to prove the opposite. Sure, nobody became a millionaire by making $2,100, but $2100 is more that $0. Keep the low interest car loans. Leave the money that you would use to pay off the loans in SPAXX earning 5%.
He definitely speaks out of both sides of his mouth. He discounts little interest earning opportunities but will nail you for eating out once a month. It’s all important.
You can earn much more in the S&P, but I get your point. You can get guaranteed 5% now. It's basically peace of mind having no payment vs math. Sometimes Dave likes math and other times he doesn't.t
I paid off my car early and it was just a 2.5% interest rate. As a nerd it never made sense to me on paper but I had the money and paid it off anyway and now I can see the point of not owning money to anyone. It is a $40k car so not so expensive yet not the cheapest and I could easily trade it in for a nice Porsche or a nice Corvette but I am never again taking a loan for a car.
I got in a debate with my girlfriend's ex-boyfriend over this. He said to never buy a car, get a loan or lease. His reasoning is that he wants the best car to drive RIGHT NOW, and saving up to buy a car later doesn't meet his goals at all. Getting rich in the long run doesn't matter, it's just getting the best stuff right now.
If your goal is truly always to have the best possible new car you are able to make payments on right now, then he’s executing perfectly on that goal. It’s just a very expensive goal that becomes a lot more accessible if you just save up for the first one and then buy with cash from then onwards, continuing to save up for the next one. You only have to drive a cheap car for the first cycle. This guy probably has a constant high monthly payment that he could apply to saving for his next car. Unless he leases, but in that case he gets zero trade-in so it probably evens out.
Why are you even speaking to the ex-boyfriend of your gf? That tells me she’s still speaking to him. You do realize she’s probably still messing around with him don’t you?
@@Kado_Tornado Even with that logic, the math works out better to take the car loan and invest the lump sum you could have spent (though yes, the math is MUCH weaker nowadays with interest rates pushing past 6%). Once you have the cash, it's always better to invest it in something that gains 10% than to avoid the 6% loan. But the secret is to actually have the cash and to actually invest it. If you're not doing that, THAT's when you become Dave's prototypical debt slave.
Hubby won't be convinced no matter how you phrase it. People that take this "but the interest rate is low, so we save" tack DO NOT invest the difference. I don't know ANYONE who actually does that. Whatever they "save" they just eat up in day to day life.
I do. But I'm exceptionally disciplined. There's more people out there that are too. Once I make a choice. No matter what and how long the plan is. I act on it as planned. Doesn't mean I don't pivot some when I learn new things. But for me it's ridiculously easy to switch to a plan and stick with it. I have a hard time envisioning people who can not do that. To me... thats really bazaar. That said.. I do think most loans are terrible ideas. Just saying there are people who can do what the math tells them to do.
We’ve paid off student loans, gotten out of debt, and are getting serious on our investments over the past few years. Essentially the same income, but we refinanced to a 15 year mortgage at 2.5%, along with the student loan payment pause. Saving/investing the spread was life changing for us. I imagine Dave would tell me to pay off the home now. I’m going to continue investing and perhaps be set for life in 12 years.
You may have done this. But the issue is you need to project the outcome of both paths 15 years into the future. You cannot assume the spread will actually make it better. I'm in a similar situation. I have a 2.865% house loan that at full maturity is in 20 years. Which also happens to be my planned retirement time frame (I love my work). However, when I run my numbers it's a complete wash. If I invest early or pat off early than invest. I have basically the exact same net worth. Technically paying it off early ends up about 20-40k better, but that amount over 20 years could be gained or lost by one choice. It's not enough to declare a winner. So I'm doing what your doing and shooting for a 5-10 year payoff while aggressively saving. But my point is I would highly encourage you if you haven't done it to do a break even analysis. You might end up being surprised at the result. The invest spread thing people say.. it's bad math.
@@dec1slh most people i've heard in my life don't want a car note but feel they don't have another option. that's different than what her husband is saying. i've never heard of someone trying to make sense of not paying off a car as soon as possible, as if there's some real benefit to it.
@@expertonmyself a lot of people use the argument that the husband had, they also use the same logic for not paying off a mortgage. Unfortunately, they use it as an argument but never put it into practice.
@@dec1slh Nope. Losers use this argument. Winners know how to do math and know how to maximize their finances. Keep the low interest rate car loan or mortgage and leave your money invested where it will grow. Note that you only have the option of paying it off if you have the money. Losers *wish* they had the money and dream of what they would do if they had it.
Yes, David I happen to agree and I also agree that making that spread is not a bad idea if actually investing the 7% spread. I would not waste too much time on the issue though. Two cars with under 4% rate loans are doable.
*Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*
Good day all👍🏻 from Australia 🇦🇺. I have read a lot of posts that people are very happy with the financial guidance she is giving them ! What way can I get to her exactly ?
Despite all the financial struggles I and my family faced, everything is finally falling into place!$130,000 profit and riches I'll always praise the Lord❤️
Dealership for a new model who just charged you a couple thousand extra just as a tip to the salesman and a tip straight to the dealership. You can have a great rate if you majorly overpay in the first place
Currently have two car loans at 1.5% from 2021. I could have paid cash for those cars 20 times over but never will because my money is making more than three times that just sitting in the bank. I think if you're responsible and you're in a unique situation where you have a debt that's costing less than what you can make with that same amount of money, more power to you.
I've heard a similar argument from car dealers. Instead of paying off the balance of the loan, you just take the cash you would've paid toward the loan and invest it in something that would give you a higher rate of return. In theory, it's not incorrect. It's just that most people who believe in this menthod aren't actually out there aggressively investing. It's the follow-through that we should be focused on.
I've invested instead of paying off the mortgage. Investing HALF my original mortgage balance (over the course of 3 years) has made 90% of the interest I would pay over the entire 15 years. To be fair, I am taxed on that, so it's only about a 7% annual spread after-tax. Thankfully my wife doesn't want to pay off the mortgage either! :)
Hubby has a point you already paid for much of the interest in advance as part of the sale price and dealer retained rebates. It's easier to tell someone they're paying down a $35,000 car at 2.9% than it is to charge them $26,975 for the car and reveal they're gonna end up paying $40,000 after 84 months of market rate interest. That said I would still pay them off, not only is 3-4% about the same return as buying bonds but a paid for car can carry much cheaper insurance and when it breaks down you aren't suddenly obligated to repair it or cover the gap to sell or scrap it. If you don't own the car you may not be able to sell it or repair it right away but you're still obligated to keep tags and insurance on it for the next 6 months while you fine the part to fix it or find an intrepid buyer.
😩 paying off the cars would free up cash, which in turn would leave that money available to invest/save. If he is talking about the interest offset it still doesn’t make sense.
All thay mental gymnastics is just not worth it! Get clean, get peace back to your life, and put your focus on building wealth. Stop messing around with the penies you could “potentially” make
Explain to me why you have to pay taxes on a total market passively managed index fund. His premise is correct, but he needs to be investing the extra money.
How about im your wife and im not comfortable being in debt on these cars. Its not about the math or who is right but does he respect you enough to respect that and be willing to do things that make u feel better.
Oh, he invested the $27,000 alright. He invested it into two vehicles that are depreciating in value. So, he is paying the 3% interest and getting pounded by the depreciation.
I actually made money when I bought my car. Bought it $6,000 under MSRP at the time. Since then, since the model of what I have is rare-ish people are paying even more for them today than when I bought it. Would probably make about $15,000 in profit if I sold today.
It is like a bet that is 52% in your favor. Technically, you should take it. BUT when you are poor, and have $1000 to your name. You definitely don’t throw that money down on the bet.
This may not have been the best answer for their marriage, but it would have made for a real short call. Just tell him to pay the loans off and then have him send the monthly payments to a high yield savings account with around 5% interest instead.
Dave said, "No one ever got rich on $2,100 a year" Umm, Dave, investing $2,100 per year into one of those theoretical 10-12% mutual funds you constantly tout will be worth over $1,000,000 in 36 years (12%) to 41 years (10%).
@@wordsrwind22if you are making money on the spread, it makes sense to not pay off a 3% loan. Notice how banks always carry debt because they are making more than whatever % they are paying you for your savings account or the FFR that they borrowed at. Same with life insurance which invest the money they get paid every month so that they can make money on the spread. Finance is 80% behavior for those that lack impulse control but at the end of the day the numbers tell the full story and paying a 3% loan when you could have made over 20% simply investing in the S&P over the past year is mathematically stupid. However if you are not actually investing the difference then yes you would have been better off paying the debt but not everyone lacks impulse control
@@wordsrwind22 Yes, because $2100 _IS_ the difference after paying the bank interest. I'm not an advocate for debt or leverage, but there's zero indication that Tabitha and her husband are exhibiting bad behaviors. Dave simply didn't ask enough questions. He only made assumptions.
I love it when they both had the same impression of what was going through the man's mind and talked to her the way girlfriends would looking out for her and filling her it in, but just from the man's perspective. It's nice when decent men validate what's up and stick up for her side of things.
With one exception, they lied to her and misrepresented the situation, her husband was actually right that it is wiser to capture the spread, the amount doesn't matter money is money. The only stress in the relationship is the wife being fed b/s by people on tiktok like Dave.
The husband is mathematically correct. His strategy will work better in the majority of cases. I’ve got a 0% interest rate on my car and I’ve made 2,500 on my invested money over the life of the loan. That money will continue to compound for the rest of my career and be worth 165,000$ by the time I retire.
I could pay my car off right now with my savings. But I have a super low interest rate and I am making a few hundred dollars a month off interest. So why give that up?
I keep seeing comments about investing investing investing. Where are you people investing? This is an honest question because every investment I see out there seems to be a scam.
Assuming you do have the cash to pay those loans off yes you could make more in a good high interest saving account I earn over 5% APR in my savings but you have to actually put the money in savings. If your trying to make 10% return you might take a 10% loss
There are other reason to buy a car with cash instead of financing it than what they discussed in this video. The biggest of which is that cars depreciate too quickly. When you have debt on a depreciating asset then you have less each month to invest in appreciating assets and/or a 401k.
Dave literally does straw man arguments every show. Everytime he doesn’t like something, he says “no one ever became a millionaire bc of X” Duh Dave, almost no individual action or decision made someone a millionaire. Can’t believe he doesn’t get called out for this… ever
OK, Dave didn't even ask the question, so how does he know that they aren't aggressively investing instead of aggressively paying off the loans. The husband could be right, but only if they were as gazelle intense at investing as Ramsey suggests people should be at paying off debt.
Dave's premise only works if you can pay off the entire amount owed on the vehicles. Take my situation. I owe $215,000 at 2.5% on my 15 year fixed mortgage. I also maintain a bank account at the same bank that has the mortgage (my bank balance is less than $215,000). The bank account pays 4.91%. It would be stupid of me to use all of the money in my account to pay down my 2.5% mortgage balance while foregoing a 4.91% interest rate. If I had the full $215,000 to pay the mortgage off, the situation might be different. So for every dollar $10,000 I keep in the account, I make about $200 extra after taxes each year by keeping the money in my account and not paying my mortgage early. Additionally, I have autopay setup on this account, so on the first of every month, the bank pulls the mortgage payment out of the bank account and the monthly payment is made!
Because the car depreciates in value, while a house increases in value. In 10 years I've never once heard Dave say to make minimum house payments. He has said to invest 15% from your income and snowball your old debt payments into principal payments on your mortgage. He has on occasion said to pay off the mortgage first before fully investing.
This is an odd conversation. The point is they are in debt with car payments. The interest amount is not relevant. I believe the guy is thinking that the interest rate is so low that over time inflation will overtake it and he will be paying less in real currency value. The problem is their cash flow is going into an "asset" that only goes down. A savvy person gets a crappy used car that they can purchase and uses the rest of their cash flow to invest. As Dave says, car payments are the payday loans of the middle class. I also agree that anything she says wont work because his thinking is irrational and and reasoning wont work with an irrational person.
No, he thinks keeping the $20,000 earning returns in their brokerage account will result in them having more money at the end of whatever the loan term is than using that money to pay off the loan and putting more money into investments would. And he's right. Dave has said it in the past and I'm not sure why he's not saying it now: the math of arbitrage is correct, but it's incomplete. He's brought up the bit about human psychology being a factor, but he's got to acknowledge the math.
Dave is objectively, mathematically wrong. Again. His argument that "it's doesn't make you wealthy" is braindead. Not eating out doesn't make me wealthy and neither shows changing my own oil. Doesn't mean I shouldn't do it.
The videos about cars are always interesting because if you actually look at the math, I’m still trying to figure it out myself. in order to buy Let’s say just to pick a number $30,000 car probably like an average price car these days maybe a little less even, to buy that $30,000 car in cash you would have to still save up money monthly. That’s just going into something like a savings account until you have the money to buy it in cash. Once you spend that 30,000 in cash, you can no longer invest that money because all of the money in one big lump sum chunk is now in a depreciating asset. The vehicle will continue to depreciate to the point it’s worth nothing or is also straddled with repairs. If you invest that 30k into a mutual fund for the same length as a car loan, let’s say 60 months, the 30k you initially put in will now be worth around $53,000. A gain of $23,000. If you spend the 30k up front then invest the money you would have otherwise spent on a car payment over the next 60 months let’s say $500ish dollars, you won’t have anywhere near that because you are making compound interest on the whole 30k the entire time, sure it’s not crazy money and Dave is right that alone won’t make you rich but to say that a car payment is what’s keeping people broke if they do that method is just inaccurate. Even if he’s right and you won’t make that much money doing that method investing the spread, it’s still a negligible amount between the two that one is not gonna make you more broke in the longer and then the other.
You're absolutely correct. You can even look up precise numbers -- just google "car loan calculator" to see what the monthly payment would be (I did the actual math somewhere else in this comment section). At under 4% interest, it's not even close. Keeping the lump sum invested HANDILY beats paying the car off.
Money market funds pay 5%+ right now. Math is math. Put all the money in there and make the payments from it. Other wise you are throwing money down the drain.
He doesn't have the money to put in any investment, mm, t-bills whatever. That is the problem & all the "mathematically" doesn't work because there is no investment
Dave is so full of shit here, if you have 35k to pay off the car loans you have 35k to capture the spread. The sad part is he knows it, but unfortunately it doesn't fit his agenda. Additionally he blames the husband for somehow putting the wife down as if she "doesn't understand math", but does similar with some archaic anecdote " oh she doesn't understand". DISGUSTING!
Its not just most of this but the rate comparison doesn't check out. Its bad math. You cannot compare percent paid vs percent earned and actually come to any conclusion. The math is nonsense. You can take any two numbers and i/you can demonstrate and give example situations where all 3 outcomes are true. Paying it off early. Keeping it & investing early. Or a complete wash and it doesn't matter what you do. You have to project the pattern out to full term. So if the keep the loan path is 5 years and paying it off early is two. You need to project that outcome 5 years in the future. Which you need stable predictable spending patterns. Income patterns. Investment patterns. And it all assumes theres no surprises. Like what if at year 3 your daughter has a major medical problem that insurance doesn't fully cover. Or someone looses a job. And even then.. The actual outcome depends on you acting on that plan. And what you would actually do. Like dave said.. hes probably not actually investing anything. So if you figure out investing while paying off is better but you don't actually invest... then you just made a choice and your using this quote to justify whats probably a bad decision. Now i do disagree on some points with dave. Not every step needs to result in millions in returns. Sometimes you just have to ask the question which path im better off with. I had a recent emergency where my roof and my hvac system gave out. I just happened to have enough in my emergency fund for both. I prefer a higher emergency fund than dave teaches. I also had a financial goal i really wanted to hit. Two things incompatible. I hate loans. So im with dave loans suck. But my rule for loans is they need to leave you better off when they are done or you don't do one. I did a no interest loan. And the reason is because i did invest. And the math checks out. Im almost done with my plan and reality ended up being even better. Ill hit my financial goal and itll all be paid off by the end of the year. If i hadn't. I would have came up several thousand short. Sometimes that actually matters. Dave misses that point.
Obviously counter to the Dave approach, but presumably the guy is thinking that he can make 8-10% investing the money instead of serving the ~3% interest car loan. It's mathematically reasonable, though does come with some risk.
@newsflash7609 The thing is, this would be reasonable if he actually following through and investing. Chances are, he's not. This is more of a thought experiment for this couple
@@The_Food_Policeperhaps but it wouldn't be fair to assume. Dave's approach is more risk adverse but that doesn't make the other guy entirely wrong either
Debt free and ability to be debt free are in the same place for a lot of people that understand opportunity cost and he's correct not the debt crusader wife.
Fox News isn’t a reliable source of information buddy. I have a two story 2800 sq ft house for 450,000. I pay very little in utilities and I actually get paid for power because of my solar panels. Gas is 3.20. It’s not hard to get by in California
@@smithersrob Why? Maybe it upsets him to leave money on the table just to make someone happy when they're behaving irrationally - why shouldn't she be the one to capitulate? Personally I'd be more willing to accommodate her if she understood and conceded that it's the better play, but still communicated that the "peace of mind" or w/e was more important to her. If she makes her argument on the basis of the decision not being sound, then she's wrong and can't expect to convince him.
@@dreyvas2 it’s not a better play, he has absolutely not invested the money he hasn’t put towards the car into an investment, it’s a bullshit delusion. Borrowing money against a car to invest it is utter nonsense that poor people and idiots convince themselves is Warren Buffet level financial savvy
All I'll say is they should divorce!! Clearly their views on finances do not align. People should marry those whose financial, religious, child rearing and other views align. Otherwise the marriage will struggle at best and fail at worst.
well, if you could listen, neither of the payments is 2%. One is 2.94% and 3.49%. Dave explained the math and why its lame. Arbitraging your car is a bonehead move.
Maybe because instead of paying the cars off he's making 8%+ with the money in the markets. So by his logic why would I give up the investments to pay off these debts. Ramsay completely misses this and assumes this guy thinks the cars are investments. Let's say the guy knows they are depreciating assets and let's say he knows the math and has the money in cash in investments.
Nope. He addresses it like he doesn't have the cash to pay the cars off today and isn't making 12% in the market. I'm not saying I agree get into debt, that adds risk. But don't strawman arguments, always attempt to steelman them.
Two cars no car payments. Love every minute of it no stress
@@mhodge0890 Same here. We pay cash for our cars.
Two cars, paid CASH! Paid off house earlier this year! 61f and 64m let's us RETIRE and still be EDMs!! Get your money working for you. Not the other way around!!
Nobody cares
@@mrshorts7167 People who have debt SHOULD care!!
Yup loving it everyday
"Broke people with a car payment and an opinion."
❤ Classic Dave!
well as a37 year old in wisconsin ive NEVER had a car loan.. but i wa s ac-a- student mosty in my town b student... i get 37 mpg on pure gas car ive met a younger person with 0 kids single with a suv who travles a ton i dont at all... so her gas per month is EASY 2-2.3 time more then me i speed... but i dont break on the highway like ppl do.. 80%of rich ppl are jerks pos or both how can ppl have thousading of videos of overworking when the boss make 30 years of suerp high pay in one year 78 at middle income and about 95 at med income so a entire life
Peace of mind because of being debt free goes a long way.
Instead of pulling $50K from brokerage earning 11%
I pay 0% interest for 48 months
@@aolvaar8792 for me the intangible benefits outweigh any short term math gains. For some it is always a stressful thing in the back of your mind to be in debt.
The thing is that paying off the car/s give you peace of mind. My husband and I talked about how to approach money before we got engaged and we approach it the same. Everyone should date for marriage and discuss this sort of thing.
Well, think whatever you want, I sure do sleep well at night with no home, vehicle, cedit card, or student loan payments.
😂😂😂😂
My mind read that wrong. I thought you were making a joke about not having a home, car, etc.
Yes, being debt free is a wonderful way to live!!! Hallelujah, I praise God!!!
@JC-vh2lh how do u do it?😭💔
He is a “I’m always going to have a mortgage and a car payment” person
Don't save him, he don't want to be saved
According to Dave 'no one got rich on 2100 a year' (which is just the spread) but his compound interest theory is 12% a year 2100 over 35 years = 1mil .... so technically I disagree here Dave
But the guy's not investing it. If he was investing it, he would make money. But he's not. It's just sitting in a car, and he's paying the bank. Get rid of the payments, and then invest the car payments.
@@jimroscoviusthat’s not what they are doing at all. They took out a loan on a vehicle. She wants to pay it off quickly. In order to do that you have to redirect cash in hand to the loan issuer. He wants to keep that money because he can earn more in investments.
They never stated whether he actually is investing the cash they would use to pay off the car. So it depends if he’s actually following through and if the psychology factor of having zero debt offsets the ability to outgrow the loan interest in other investments.
"In theory". The people that argue the most about this are keeping low payments so they have more money for consumption.
He isn't investing probably anything. The pretend money is in a loan. Your disagreement with Dave is incorrect
@@Ryan-di5zothey shouldn’t pay the loan quickly, they should build up the money to pay it off and invest the money quickly. It is the mathematically correct option.
Last time I checked... 3.49% and 2.94% are both > 0%. Imagine all the "free money" you'd save with a 0% interest rate. Bro got the dumbest logic 💀
Since he already has the car, yes. Saving the money for the vehicles set aside for investment will statistically yield profit if you’re willing to accept the small risk associated.
Treasury bills and HYSAs are at ~5% right now. After taxes the difference is pretty negligible, but 0% shouldn’t be the equation. Personally I wouldn’t pay them off early I’d put the extra in my Roth instead, but I certainly can’t fault anyone for wanting a paid off car. I paid off all mine and it’s great
I think he just can't take advice from his wife.
5.34% with Raymond James holding account guaranteed. She said they have the money why wouldn’t you assume he invested it ??
@@TonyCox1351would you put a lien against your car so that you could put the money in a Roth?
Even if he is right,which he is not, this is not a math question. He is wanting to keep the loan for at most < 1,000 per year. He needs to start looking at what it’s worth to have a happy wife. It’s worth much more than what he gets on the interest spread.
Dave compares the difference in interest rates one way when he wants to prove one thing and compares the difference another way when he wants to prove the opposite.
Sure, nobody became a millionaire by making $2,100, but $2100 is more that $0. Keep the low interest car loans. Leave the money that you would use to pay off the loans in SPAXX earning 5%.
Millionaires try to optimize everything and take advantage of good deals
Bingo. Dave’s a swindler. People believe him because he speaks with confidence. If you actually look at his words you’ll find the contradictions
He definitely speaks out of both sides of his mouth. He discounts little interest earning opportunities but will nail you for eating out once a month. It’s all important.
You can earn much more in the S&P, but I get your point. You can get guaranteed 5% now. It's basically peace of mind having no payment vs math. Sometimes Dave likes math and other times he doesn't.t
Absolutely, I currently have no debt but would jump to borrow money at 3% and I would take as much of it as they would give me.
I paid off my car early and it was just a 2.5% interest rate. As a nerd it never made sense to me on paper but I had the money and paid it off anyway and now I can see the point of not owning money to anyone. It is a $40k car so not so expensive yet not the cheapest and I could easily trade it in for a nice Porsche or a nice Corvette but I am never again taking a loan for a car.
I got in a debate with my girlfriend's ex-boyfriend over this. He said to never buy a car, get a loan or lease. His reasoning is that he wants the best car to drive RIGHT NOW, and saving up to buy a car later doesn't meet his goals at all. Getting rich in the long run doesn't matter, it's just getting the best stuff right now.
If your goal is truly always to have the best possible new car you are able to make payments on right now, then he’s executing perfectly on that goal. It’s just a very expensive goal that becomes a lot more accessible if you just save up for the first one and then buy with cash from then onwards, continuing to save up for the next one. You only have to drive a cheap car for the first cycle. This guy probably has a constant high monthly payment that he could apply to saving for his next car. Unless he leases, but in that case he gets zero trade-in so it probably evens out.
Your girlfriend’s ex bf? 😂😂
Why are you even speaking to the ex-boyfriend of your gf? That tells me she’s still speaking to him. You do realize she’s probably still messing around with him don’t you?
@@Kado_Tornado Even with that logic, the math works out better to take the car loan and invest the lump sum you could have spent (though yes, the math is MUCH weaker nowadays with interest rates pushing past 6%). Once you have the cash, it's always better to invest it in something that gains 10% than to avoid the 6% loan. But the secret is to actually have the cash and to actually invest it. If you're not doing that, THAT's when you become Dave's prototypical debt slave.
Hubby won't be convinced no matter how you phrase it. People that take this "but the interest rate is low, so we save" tack DO NOT invest the difference. I don't know ANYONE who actually does that. Whatever they "save" they just eat up in day to day life.
I do. But I'm exceptionally disciplined. There's more people out there that are too. Once I make a choice. No matter what and how long the plan is. I act on it as planned. Doesn't mean I don't pivot some when I learn new things. But for me it's ridiculously easy to switch to a plan and stick with it. I have a hard time envisioning people who can not do that. To me... thats really bazaar.
That said.. I do think most loans are terrible ideas. Just saying there are people who can do what the math tells them to do.
Paying off and staying out of debt was the best thing I ever did.
Paying off your loans increases your INCOME.
If you can’t spend all your money Now.
What good is more income?
Actually no, paying off loans doesn't increase income. It does, however, reduce expenses.
For real I got a whole raise by doing that lol
Increase your net worth
Not to mention, the car is a depreciating asset.
A lot of people don't see it that way unfortunately. They just think they will have a car payment forever so why care about such things. 🤢🤮
@@pdxmusl1510 I love not having a car payment. 😆
Paying it off or not doesn’t change the depreciation of the car
@@Playingwithproxies paying interest on a depreciating asset is not good.
No car payment, no house payment and net worth over a million. Life is good!!!
@@goose4284 Same here, but I'm just a hair short of a million. Be there soon, though!!
Rookie numbers- my net worth is over 100 mil. Look how humble I am.
@@jimroscoviuswhat’s it like to be poor? Would you like a donation to pay your bills?
@@0_1_2 a line in animal house comes to mind with you. Fat, drunk and stupid ain’t no way to go through life.
@@0_1_2 Im actually poor Ill take a donation Mr. Moneybags
Kenneth looks pissed…I think it was a wrong Lunch Order again…He got Fried Rice instead of Chow Mein 😂
It’s got to be exhausting to pretend he’s qualified to give financial or career advice. Just sayin’.
We’ve paid off student loans, gotten out of debt, and are getting serious on our investments over the past few years. Essentially the same income, but we refinanced to a 15 year mortgage at 2.5%, along with the student loan payment pause. Saving/investing the spread was life changing for us. I imagine Dave would tell me to pay off the home now. I’m going to continue investing and perhaps be set for life in 12 years.
You may have done this. But the issue is you need to project the outcome of both paths 15 years into the future. You cannot assume the spread will actually make it better.
I'm in a similar situation. I have a 2.865% house loan that at full maturity is in 20 years. Which also happens to be my planned retirement time frame (I love my work). However, when I run my numbers it's a complete wash. If I invest early or pat off early than invest. I have basically the exact same net worth. Technically paying it off early ends up about 20-40k better, but that amount over 20 years could be gained or lost by one choice. It's not enough to declare a winner.
So I'm doing what your doing and shooting for a 5-10 year payoff while aggressively saving. But my point is I would highly encourage you if you haven't done it to do a break even analysis. You might end up being surprised at the result. The invest spread thing people say.. it's bad math.
What do you invest in?
@@pdxmusl1510 and no one ever calculates the tax burden that comes with any money they make.
First time I’ve heard of anybody wanting to keep a car note.
Then you havent been listening to most people
@@dec1slh most people i've heard in my life don't want a car note but feel they don't have another option. that's different than what her husband is saying. i've never heard of someone trying to make sense of not paying off a car as soon as possible, as if there's some real benefit to it.
@@expertonmyself a lot of people use the argument that the husband had, they also use the same logic for not paying off a mortgage. Unfortunately, they use it as an argument but never put it into practice.
I kept my 0% loan for 5 years and invested the difference instead. Could have paid it off at any time but I didn't because I can do math
@@dec1slh Nope. Losers use this argument. Winners know how to do math and know how to maximize their finances. Keep the low interest rate car loan or mortgage and leave your money invested where it will grow. Note that you only have the option of paying it off if you have the money. Losers *wish* they had the money and dream of what they would do if they had it.
The guy has no drive to be debt free.
Yes, David I happen to agree and I also agree that making that spread is not a bad idea if actually investing the 7% spread. I would not waste too much time on the issue though. Two cars with under 4% rate loans are doable.
He does have the money invested. Because this debate only happens WHEN you have the money to pay it off.
*Amazing video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires*
Good day all👍🏻 from Australia 🇦🇺. I have read a lot of posts that people are very happy with the financial guidance she is giving them ! What way can I get to her exactly ?
She's always active on Whats~App... 🎉
Her number down below ✨
If you are not conversant with what you see here you can look upto her on the internet using her full name ❤️
Despite all the financial struggles I and my family faced, everything is finally falling into place!$130,000 profit and riches I'll always praise the Lord❤️
Where on earth do you get a car loan at 2.94%?
Rates were low a few years ago
Dealership for a new model who just charged you a couple thousand extra just as a tip to the salesman and a tip straight to the dealership. You can have a great rate if you majorly overpay in the first place
Dealerships selling new overpriced cars they give you a good rate while stealing 5k out of your pocket
Currently have two car loans at 1.5% from 2021. I could have paid cash for those cars 20 times over but never will because my money is making more than three times that just sitting in the bank. I think if you're responsible and you're in a unique situation where you have a debt that's costing less than what you can make with that same amount of money, more power to you.
There is 0% now for certain car dealer
We have $1565 left on our vehicle, has 46,000 kms, and 6 years of warranty left still, cant wait to have no payment.
I've heard a similar argument from car dealers. Instead of paying off the balance of the loan, you just take the cash you would've paid toward the loan and invest it in something that would give you a higher rate of return. In theory, it's not incorrect. It's just that most people who believe in this menthod aren't actually out there aggressively investing. It's the follow-through that we should be focused on.
This guy is willing to fight his wife and deny her peace of mind for a few bucks. What a jerk.
I've invested instead of paying off the mortgage. Investing HALF my original mortgage balance (over the course of 3 years) has made 90% of the interest I would pay over the entire 15 years. To be fair, I am taxed on that, so it's only about a 7% annual spread after-tax. Thankfully my wife doesn't want to pay off the mortgage either! :)
Hubby has a point you already paid for much of the interest in advance as part of the sale price and dealer retained rebates. It's easier to tell someone they're paying down a $35,000 car at 2.9% than it is to charge them $26,975 for the car and reveal they're gonna end up paying $40,000 after 84 months of market rate interest.
That said I would still pay them off, not only is 3-4% about the same return as buying bonds but a paid for car can carry much cheaper insurance and when it breaks down you aren't suddenly obligated to repair it or cover the gap to sell or scrap it. If you don't own the car you may not be able to sell it or repair it right away but you're still obligated to keep tags and insurance on it for the next 6 months while you fine the part to fix it or find an intrepid buyer.
Actually with extreme self-discipline this could make them some money.
The truth is is they have this kind of discipline and know what they are doing, this call wouldn’t exist 😅
Ha, ha, ha, ha. Have to have the money first.
@@安妮花花AH he could be doing that and she just doesn't care because Ramsey said debt bahhhhhhhhd🐑
😩 paying off the cars would free up cash, which in turn would leave that money available to invest/save. If he is talking about the interest offset it still doesn’t make sense.
Mr. Ramsey has beautiful eyes.
All thay mental gymnastics is just not worth it! Get clean, get peace back to your life, and put your focus on building wealth. Stop messing around with the penies you could “potentially” make
Trying to save a few points on 20k is futile.
Our education system has horribly failed.
Poverty mindset, this how the wealth divide exists. This is how the 1% have wealth, 99% pay us
Paying interest IS giving away money.
Explain to me why you have to pay taxes on a total market passively managed index fund. His premise is correct, but he needs to be investing the extra money.
Does this guy know that cars usually depreciate in value regardless of how low the interest rate is?
If you’re not going to sell,
Then why do you care about Value?
I bought my 1972 Chevy Truck, new.
I don’t look up its value.
How about im your wife and im not comfortable being in debt on these cars. Its not about the math or who is right but does he respect you enough to respect that and be willing to do things that make u feel better.
Oh, he invested the $27,000 alright. He invested it into two vehicles that are depreciating in value. So, he is paying the 3% interest and getting pounded by the depreciation.
I actually made money when I bought my car. Bought it $6,000 under MSRP at the time. Since then, since the model of what I have is rare-ish people are paying even more for them today than when I bought it. Would probably make about $15,000 in profit if I sold today.
@@firefly9838 Excellent! Wonderful outcome. Buying below MSRP is a great place to start. Well done.
It is like a bet that is 52% in your favor. Technically, you should take it. BUT when you are poor, and have $1000 to your name. You definitely don’t throw that money down on the bet.
Not to mention if he was investing with the money from the loan then he is investing in a vehicle that is a depreciating asset.
This may not have been the best answer for their marriage, but it would have made for a real short call. Just tell him to pay the loans off and then have him send the monthly payments to a high yield savings account with around 5% interest instead.
Dave said, "No one ever got rich on $2,100 a year" Umm, Dave, investing $2,100 per year into one of those theoretical 10-12% mutual funds you constantly tout will be worth over $1,000,000 in 36 years (12%) to 41 years (10%).
Not if you’re paying interest to banks instead of receiving interest from your debt-free investments. 🙄 Finance is 80% behavior, not just math.
@@wordsrwind22if you are making money on the spread, it makes sense to not pay off a 3% loan. Notice how banks always carry debt because they are making more than whatever % they are paying you for your savings account or the FFR that they borrowed at. Same with life insurance which invest the money they get paid every month so that they can make money on the spread.
Finance is 80% behavior for those that lack impulse control but at the end of the day the numbers tell the full story and paying a 3% loan when you could have made over 20% simply investing in the S&P over the past year is mathematically stupid. However if you are not actually investing the difference then yes you would have been better off paying the debt but not everyone lacks impulse control
@@wordsrwind22the $2100 in Dave’s calculation is after interest. Dave is saying 10% returns minus 3% interest on the loan equals $2100 a year.
@@wordsrwind22 Yes, because $2100 _IS_ the difference after paying the bank interest. I'm not an advocate for debt or leverage, but there's zero indication that Tabitha and her husband are exhibiting bad behaviors. Dave simply didn't ask enough questions. He only made assumptions.
@@BrianW211 lol of course you’d think there’s no bad behaviors if you believe paying interest on a depreciating asset is a smart idea. Good luck!
I love it when they both had the same impression of what was going through the man's mind and talked to her the way girlfriends would looking out for her and filling her it in, but just from the man's perspective. It's nice when decent men validate what's up and stick up for her side of things.
With one exception, they lied to her and misrepresented the situation, her husband was actually right that it is wiser to capture the spread, the amount doesn't matter money is money. The only stress in the relationship is the wife being fed b/s by people on tiktok like Dave.
This is what happen when your significant other don't understand about money 😭
The husband is mathematically correct. His strategy will work better in the majority of cases. I’ve got a 0% interest rate on my car and I’ve made 2,500 on my invested money over the life of the loan. That money will continue to compound for the rest of my career and be worth 165,000$ by the time I retire.
I could pay my car off right now with my savings. But I have a super low interest rate and I am making a few hundred dollars a month off interest. So why give that up?
I assume those are dealership rates on two brand new cars so they already started 25k in the hole when they bought them 😂😂😂
Probably $50k cars
I wonder if he'd rather pay for something ELSE first where the interest is higher.
I keep seeing comments about investing investing investing. Where are you people investing? This is an honest question because every investment I see out there seems to be a scam.
First minute; husband says free money because low interest rate… low interest doesn’t mean zero interest rate.
Assuming you do have the cash to pay those loans off yes you could make more in a good high interest saving account I earn over 5% APR in my savings but you have to actually put the money in savings. If your trying to make 10% return you might take a 10% loss
I looked at paying off my car early. The loan was 1.9% I would have saved less than $400. I chose to keep the flexibility of holding on to my cash.
Exactly
Woman is just a control freak for that stupid 27k
Agreed and Dave saying no one got rich off $2k a year, isn't that the whole point of retirement saving?
I assume they have a great rate cause these were two brand new cars. He probably lost 25k over the purchase of them already 😂
There are other reason to buy a car with cash instead of financing it than what they discussed in this video. The biggest of which is that cars depreciate too quickly. When you have debt on a depreciating asset then you have less each month to invest in appreciating assets and/or a 401k.
@@rrrealitycheck it doesnt matter about the depreciation, u spend the money to buy a car thats it, who cares about depreciatiob
Thanks Uncle Dave
Lack of respect? Where did that come from? If she had her own money there wouldn't be a problem.
Dave literally does straw man arguments every show. Everytime he doesn’t like something, he says “no one ever became a millionaire bc of X”
Duh Dave, almost no individual action or decision made someone a millionaire.
Can’t believe he doesn’t get called out for this… ever
He gets called out on it all the time. He just calls people stupid when they do. 😂😂😂
If he wants to really use cars to help make money buy 3k cars and invest payment. Making payments on a loosing asset is dumb
OK, Dave didn't even ask the question, so how does he know that they aren't aggressively investing instead of aggressively paying off the loans. The husband could be right, but only if they were as gazelle intense at investing as Ramsey suggests people should be at paying off debt.
Dave has an agenda to push his system. Absolutely 0 questions asked by him on income, any debt, net worth.
How much can you save in interest when you pay off your car loan? Duh and duh.
Women’s intuition? Good grief
Dave's premise only works if you can pay off the entire amount owed on the vehicles. Take my situation. I owe $215,000 at 2.5% on my 15 year fixed mortgage. I also maintain a bank account at the same bank that has the mortgage (my bank balance is less than $215,000). The bank account pays 4.91%. It would be stupid of me to use all of the money in my account to pay down my 2.5% mortgage balance while foregoing a 4.91% interest rate. If I had the full $215,000 to pay the mortgage off, the situation might be different. So for every dollar $10,000 I keep in the account, I make about $200 extra after taxes each year by keeping the money in my account and not paying my mortgage early. Additionally, I have autopay setup on this account, so on the first of every month, the bank pulls the mortgage payment out of the bank account and the monthly payment is made!
Tabitha probably knows more about football then Dave ever has. I'm appalled at how dismissive he was!
I’m still trying to figure out what Ken adds to the show
@@Trenton.D Lol
I hear you, but when Ken is manic he's a riot lol
@@sitcomchristian6886 haha, True that
Dumb advice as usual. Then why do they advise to invest while paying the minimum on a mortgage? Same logic
Because the car depreciates in value, while a house increases in value. In 10 years I've never once heard Dave say to make minimum house payments. He has said to invest 15% from your income and snowball your old debt payments into principal payments on your mortgage. He has on occasion said to pay off the mortgage first before fully investing.
Her husband is right. LOL. But seriously don’t call Dave about a debt question and expect an honest, efficient answer.
This is an odd conversation. The point is they are in debt with car payments. The interest amount is not relevant. I believe the guy is thinking that the interest rate is so low that over time inflation will overtake it and he will be paying less in real currency value. The problem is their cash flow is going into an "asset" that only goes down. A savvy person gets a crappy used car that they can purchase and uses the rest of their cash flow to invest. As Dave says, car payments are the payday loans of the middle class. I also agree that anything she says wont work because his thinking is irrational and and reasoning wont work with an irrational person.
No, he thinks keeping the $20,000 earning returns in their brokerage account will result in them having more money at the end of whatever the loan term is than using that money to pay off the loan and putting more money into investments would.
And he's right. Dave has said it in the past and I'm not sure why he's not saying it now: the math of arbitrage is correct, but it's incomplete. He's brought up the bit about human psychology being a factor, but he's got to acknowledge the math.
Dave is objectively, mathematically wrong. Again. His argument that "it's doesn't make you wealthy" is braindead. Not eating out doesn't make me wealthy and neither shows changing my own oil. Doesn't mean I shouldn't do it.
Maybe not, but every time you save money and do it yourself you are heading toward more wealth.
No, not really. Most of the "Dave is wrong" experts have major car loans & look for a convenient "mathematically" excuse. Problem - it never works out
The videos about cars are always interesting because if you actually look at the math, I’m still trying to figure it out myself. in order to buy Let’s say just to pick a number $30,000 car probably like an average price car these days maybe a little less even, to buy that $30,000 car in cash you would have to still save up money monthly. That’s just going into something like a savings account until you have the money to buy it in cash. Once you spend that 30,000 in cash, you can no longer invest that money because all of the money in one big lump sum chunk is now in a depreciating asset. The vehicle will continue to depreciate to the point it’s worth nothing or is also straddled with repairs. If you invest that 30k into a mutual fund for the same length as a car loan, let’s say 60 months, the 30k you initially put in will now be worth around $53,000. A gain of $23,000. If you spend the 30k up front then invest the money you would have otherwise spent on a car payment over the next 60 months let’s say $500ish dollars, you won’t have anywhere near that because you are making compound interest on the whole 30k the entire time, sure it’s not crazy money and Dave is right that alone won’t make you rich but to say that a car payment is what’s keeping people broke if they do that method is just inaccurate. Even if he’s right and you won’t make that much money doing that method investing the spread, it’s still a negligible amount between the two that one is not gonna make you more broke in the longer and then the other.
You're absolutely correct. You can even look up precise numbers -- just google "car loan calculator" to see what the monthly payment would be (I did the actual math somewhere else in this comment section). At under 4% interest, it's not even close. Keeping the lump sum invested HANDILY beats paying the car off.
You earn faster when Investing good Money rather than Spend it on LOW LOW Credit
6% Earn is better than pay 2%
Money market funds pay 5%+ right now. Math is math. Put all the money in there and make the payments from it. Other wise you are throwing money down the drain.
He doesn't have the money to put in any investment, mm, t-bills whatever. That is the problem & all the "mathematically" doesn't work because there is no investment
@@greggpurviance7252 that's not what Dave is saying though
I want help just not your help. 😂
Dave is so full of shit here, if you have 35k to pay off the car loans you have 35k to capture the spread. The sad part is he knows it, but unfortunately it doesn't fit his agenda. Additionally he blames the husband for somehow putting the wife down as if she "doesn't understand math", but does similar with some archaic anecdote " oh she doesn't understand". DISGUSTING!
Its not just most of this but the rate comparison doesn't check out. Its bad math. You cannot compare percent paid vs percent earned and actually come to any conclusion. The math is nonsense. You can take any two numbers and i/you can demonstrate and give example situations where all 3 outcomes are true. Paying it off early. Keeping it & investing early. Or a complete wash and it doesn't matter what you do. You have to project the pattern out to full term. So if the keep the loan path is 5 years and paying it off early is two. You need to project that outcome 5 years in the future. Which you need stable predictable spending patterns. Income patterns. Investment patterns. And it all assumes theres no surprises. Like what if at year 3 your daughter has a major medical problem that insurance doesn't fully cover. Or someone looses a job.
And even then.. The actual outcome depends on you acting on that plan. And what you would actually do. Like dave said.. hes probably not actually investing anything. So if you figure out investing while paying off is better but you don't actually invest... then you just made a choice and your using this quote to justify whats probably a bad decision.
Now i do disagree on some points with dave. Not every step needs to result in millions in returns. Sometimes you just have to ask the question which path im better off with. I had a recent emergency where my roof and my hvac system gave out. I just happened to have enough in my emergency fund for both. I prefer a higher emergency fund than dave teaches. I also had a financial goal i really wanted to hit. Two things incompatible. I hate loans. So im with dave loans suck. But my rule for loans is they need to leave you better off when they are done or you don't do one. I did a no interest loan. And the reason is because i did invest. And the math checks out. Im almost done with my plan and reality ended up being even better. Ill hit my financial goal and itll all be paid off by the end of the year. If i hadn't. I would have came up several thousand short. Sometimes that actually matters. Dave misses that point.
Ramsey needs to to a new study cause now days there a lot of crypto millionaires
Putting your money in a high yield savings account would be better than paying off these cars.
Which high yield savings account do you suggest?
@@marioharris0680 as long as it's FDIC insured and has a yield of 5%+ than it's a good one
How is he making money when HE'S paying the interest?!!
Obviously counter to the Dave approach, but presumably the guy is thinking that he can make 8-10% investing the money instead of serving the ~3% interest car loan. It's mathematically reasonable, though does come with some risk.
@newsflash7609 The thing is, this would be reasonable if he actually following through and investing. Chances are, he's not. This is more of a thought experiment for this couple
@@The_Food_Policeperhaps but it wouldn't be fair to assume. Dave's approach is more risk adverse but that doesn't make the other guy entirely wrong either
Because u FAIL at math
@@newsflash7609 that's assume that guy HAS the 27k invested somewhere.
No you build wealth by getting out of debt and piling every penny you have into crypto if you want any chance of retiring with dignity.😃
Marriage is a tuff job once the honeymoon is over so it's not meant for everyone people are plug in different different strokes for different folks
Dave doesnt think women can be sports fans lol.
Debt free and ability to be debt free are in the same place for a lot of people that understand opportunity cost and he's correct not the debt crusader wife.
I understand they making 5.5 on money in the bank but ugh its not worth the 1.5% spread he making like 350$ a year
and ha to pay taxes on any money he "makes". that's where people mess up. they never think about the tax burden.
You still can’t afford crap if you have $1million in CA.
Fox News isn’t a reliable source of information buddy. I have a two story 2800 sq ft house for 450,000. I pay very little in utilities and I actually get paid for power because of my solar panels. Gas is 3.20. It’s not hard to get by in California
I agree with her boyfriend
😀
Husband is mathmatically correct assuming there is a corresponding investment. The math doesn't lie. He does in fact win the argument.
There almost certainly is NOT a corresponding investment.
There's not a corresponding investment, and you pay taxes on what you earn.
Not having a car loan will increase your available money to invest.
Well he already borrowed on the cars. MIGHT AS WELL invest the difference
He's a fool
It's a lack of respect on her part not his
if you have a financial scheme that nets you
@@smithersrob ok then why don't they pay off their mortgage before investing as well? That's probably at a high interest rate than these cars
@@smithersrob Why? Maybe it upsets him to leave money on the table just to make someone happy when they're behaving irrationally - why shouldn't she be the one to capitulate? Personally I'd be more willing to accommodate her if she understood and conceded that it's the better play, but still communicated that the "peace of mind" or w/e was more important to her. If she makes her argument on the basis of the decision not being sound, then she's wrong and can't expect to convince him.
@@dreyvas2 it’s not a better play, he has absolutely not invested the money he hasn’t put towards the car into an investment, it’s a bullshit delusion. Borrowing money against a car to invest it is utter nonsense that poor people and idiots convince themselves is Warren Buffet level financial savvy
You can’t convince him bc he is correct. I wouldn’t pay my car off either.
It isn't your car if it isn't paid off.
All I'll say is they should divorce!! Clearly their views on finances do not align.
People should marry those whose financial, religious, child rearing and other views align. Otherwise the marriage will struggle at best and fail at worst.
Divorce is sinful and should never be done for trivial things like this
@@thedopplereffect00 Your religion means nothing to me. My advice stands.
She just wants to manipulate him to doing something he doesn't want to do. And according to Dave magical mutual funds the spread makes sense.
Honestly 2% on a car why would u pay it off? Dave cant do math
well, if you could listen, neither of the payments is 2%. One is 2.94% and 3.49%.
Dave explained the math and why its lame. Arbitraging your car is a bonehead move.
Maybe because instead of paying the cars off he's making 8%+ with the money in the markets. So by his logic why would I give up the investments to pay off these debts. Ramsay completely misses this and assumes this guy thinks the cars are investments. Let's say the guy knows they are depreciating assets and let's say he knows the math and has the money in cash in investments.
he addresses this point directly and calls you an idiot. watch before commenting
Nope. He addresses it like he doesn't have the cash to pay the cars off today and isn't making 12% in the market. I'm not saying I agree get into debt, that adds risk. But don't strawman arguments, always attempt to steelman them.