Now, I'm right there with you of course. But here are my thoughts on the idea that Dave's plan is "logical" because we do hear that a lot: While it certainly does follow its own internal logic (based on financial principles that Dave made up), it doesn't logically follow from a financial well being or risk management perspective. The logical thing to do is to get to a 3 month e-fund asap to minimize financial risk, then get the 401k match because its a 100% return, then pay down the highest interest debts first.--Tasha
@@LifeSoDevine Don't forget - Dave Ramsey doesn't have any certification or degree lending him room to claim expertise in the personal finance field. Tasha on the other hand....has a DAMN impressive resume.
Have you ever discussed how to improve your "money confidence" if you make little money, as in really close to the poverty line? I acknowledge that you guys are not in that bracket, but I also know that different perspectives can improve the learning experience. Great myth-debunking video, you two!
Hi Jasmine, I don't think we've talked about it but we definitely should. Once upon a time I was a pregnant teen making just $14,000 a year so I definitely understand what it's like. One of the big things we advocate is to take advantage of online learning to grow a new skill and market yourself online. For example, virtual assistants can make $20+ an hour.--Tasha
@@OneBigHappyLife I'm very happy with how you advocate for online learning. After researching more about money and retirement (and finding your channel), I began to freelance my writing, language and research skills last month as a side hustle. Thanks for answering my question!
Hi Tasha and Joseph, most people that choose to get out of debt usually do so to feel more financially secure. Part of that comes from having a 3-6 month emergency fund and having less financial obligations. So in all fairness you should compare apples to apples in the first myth. Compare someone living with debt having a healthy EF and also a person without debt having that same healthy EF. Who of those two assuming everything else is equal has a better financial footing? The assumption that someone living without debt has no emergency fund is not fair. Waiting for the next video and thanks for educating and adding your voice to this topic of financial literacy.
Thanks for your comment Amanda. Great questions. While it's true that people may "feel" that paying off debt makes them more financially secure, we've talked about how there are better ways to ACTUALLY use your money to increase financial security (instead of making a financial decision based on feelings). You say that an apples to apples comparison is a family with debt + e-fund compared to a family with debt and no e-fund. That is not an apples to apples comparison at all. Apples to apples is two families with the exact same amount of debt and the exact same amount of available cash every month. One uses all available cash to pay off debt. The other uses all available cash to build a six month emergency fund. In that case, who has the better financial footing? The couple with the e-fund because they have the ability to withstand financial shocks and could also pay off their debt if they want to. We don't assume that someone living without debt has no emergency fund. We didn't talk about people who are debt free at all. The specific myth that we are busting is that paying off debt is the best way to increase your financial stability. It's not.--Tasha
I love this channel!! You guys really know how to explain finances to the average person. Things I definitely would have been ignorant to or things I wouldn’t have known how to navigate, you guys explain so well. Thank you for educating me👏🏽👏🏽
I so agree with number one. I just bought an air conditioner on a 12 month no interest. I could of paid cash for it, but I was not going to wipe out my savings!!!
Glad that you touched on the bankruptcy aspect as well. Bankruptcy seems to get such a bad rep. As a bankruptcy attorney, I've had so many clients come in expressing that they are ashamed that they have to file bankruptcy. But that's what it's there for lol! Most people do not understand that bankruptcy can be that one solution that can help you escape debt turmoil. The other thing, in addition to those type of accounts you mentioned being exempt, is that even though you have assets that have equity, the bankruptcy code also affords you certain amounts of exemptions on those assets. So, sometimes the full amount of the equity can be exempted from creditors. Great video!
Any plans to make a video or series of videos on financial literacy directed to college students? (like advice you'd give to Alexa) I'd love some content to share with my young cousins and mentees since you both are so so great at explaining finances and how to build wealth.
I’m a relatively new subscriber to your channel and have been going thru most of your videos . This is hands down y one of your best videos. This should have more views than it does.
Funny story: so a couple weeks I was recalculating our budget. I wrote everything down in a chaotic environment (kids and mom wanting my attention as well). Well I had my husband go over my budget to let me know if I was missing anything because I noticed we were really tight on budget. Well a few days later I checked and realized I missed an entire paycheck (we get paid weekly), and I was so confused on why my husband didn’t catch it. So much for second pair of eyes.
I am also someone who uses credit cards for the perks, but always sticking to my budget. It also helps me because I can download a report of everything anytime I want to check up how I am doing in my expenses.
These are really really useful! I was thinking about paying off all my student loans before saving money. Now I see how that’s not a great idea. Thanks guys!
I’m confused as to how this logic doesn’t make sense...I got into Dave Ramsey and instantly knew, as a single mom who just graduated nursing school, that his plan wouldn’t work for me, I’m all for building an emergency fund AND paying off debt vs allocating all of my finances into debt first 🤷🏾♀️
Really interesting point on the protected accounts by bankruptcy. Here in Canada RRSP's can be treated similiarly, except contributions in the last 12 months may not be exempt.
A couple of years ago I bought a new (to me) car. The payment was more than manageable and easily incorporated into my monthly budget. I COULD have paid cash for the car -- I had enough in savings that would allow me to do so and still have about 3 to 4 months of an emergency fund left over. About a month later, my job was downsized and I found myself unemployed. Not really sure how I would have been better off with a paid-for car and only 3 to 4 months' expenses saved up than I was with a manageable payment (that was accounted for in calculating my emergency fund) with 9 to 10 months' expenses saved up. I had so much more freedom to spend time looking for the right job for me while getting enough freelance work to keep me going without having to worry about the end of the EF coming too soon.
I use YNAB and the fact that they automatically transfer purchase amounts from a budget category to the credit card payment category has helped a lot in terms of staying conscious about my spending while using credit cards. Great tips!
I have a question. 😁 on the topic of resumes, when you say keep it updated.... Ihave been with the dame company for over 12 yesrs... What would I update?
S12180G Accomplishment... new position... im pretty sure your company have goal to meet and big projects..reach out to supervisor and see what you did to meet those goal with them... quality, saving, production... you should always have a master resume and list of eveything... and once you need or ready to apply at other company.. you use those list to break it down to write a separate resume to apply for that position you think you fit in... hope this help...
If you could accomplish both in just one month, awesome! But otherwise, emergency fund first. Plus there's also the fact that the real goal is financial freedom. So after e-fund, then the next question is what's going to build your millions the fastest? Because the ultimate goal is financial freedom. And you don't have to be debt free to get there. --Tasha
Of course it takes more than one month! But most can't build a sizeable emergency fund in one month, either. So you work at what's most important to you as you go, but if you can get to the point where you have both done, awesome!
I didn't say it would only take one month. My point was that if you could accomplish both in less than 30 days great, do both. If not, you are far better off building true financial stability by focusing on your emergency fund first.--Tasha
i say celebrate with close family and/or friends who are genuinely happy for you getting a job. take your spouse and or friends out to a nice dinner. me and my wife get fancy dinner everytime a big bonus or large sum of money comes in. and we put almost all of it into savings.
I overall agree with you. For good or bad, I'm paying off all of my debt right now, which is just student loans. And, I should have it paid off sometime in spring or early summer of next year! YAY! However, I am setting aside money for my emergency fund with my husband and it is close to $3,000. But the reason why I can't invest right now in any retirement funds or investments is because I live in and teach English in South Korea. While my husband files our US taxes every year we are not taxed (we don't make enough to be taxed in the US) and so it complicates things. I guess when my husband and I move back home we'll heavily invest. Unless, I've been told wrong and someone can show me sources on why I'm wrong, I'm going to continue about going this route.
You did not read what I said, I'm legally not allowed to invest because I live and work abroad because my income is not taxed in the US. I don't make enough. And right now I'm not only focousing on my student loans, I'm putting money away for my emergency fund. So unless I've been told wrong please provide me sources that tell me that I'm wrong.
Lots of people choose to not believe facts. Remember when people didn't believe that the earth was round? The thing is that facts are true whether or not you choose to believe them.
It's about to go down! Our free LIVE money class is right around the corner. We'd love to see you there! onebighappylife.com/masterclass
One Big Happy Life if you can’t make the live
class can you email a replay if you’ve signed up?
Tasha's 👏 hair 👏stays👏 on👏 poooooint👏
Thank you! Check out our instastories for my full hair care routine. --Tasha
I love your plan! Dave Ramsey is definitely logical but I’d rather enjoy every day while becoming debt free.
Now, I'm right there with you of course. But here are my thoughts on the idea that Dave's plan is "logical" because we do hear that a lot:
While it certainly does follow its own internal logic (based on financial principles that Dave made up), it doesn't logically follow from a financial well being or risk management perspective. The logical thing to do is to get to a 3 month e-fund asap to minimize financial risk, then get the 401k match because its a 100% return, then pay down the highest interest debts first.--Tasha
One Big Happy Life oh no i TOTALLY agree with that, i say logical as i can see how one would take that route.
Thanks for responding LOVE YALL!
@@LifeSoDevine Don't forget - Dave Ramsey doesn't have any certification or degree lending him room to claim expertise in the personal finance field. Tasha on the other hand....has a DAMN impressive resume.
Have you ever discussed how to improve your "money confidence" if you make little money, as in really close to the poverty line? I acknowledge that you guys are not in that bracket, but I also know that different perspectives can improve the learning experience. Great myth-debunking video, you two!
Hi Jasmine, I don't think we've talked about it but we definitely should. Once upon a time I was a pregnant teen making just $14,000 a year so I definitely understand what it's like. One of the big things we advocate is to take advantage of online learning to grow a new skill and market yourself online. For example, virtual assistants can make $20+ an hour.--Tasha
@@OneBigHappyLife I'm very happy with how you advocate for online learning. After researching more about money and retirement (and finding your channel), I began to freelance my writing, language and research skills last month as a side hustle. Thanks for answering my question!
Hi Tasha and Joseph, most people that choose to get out of debt usually do so to feel more financially secure. Part of that comes from having a 3-6 month emergency fund and having less financial obligations.
So in all fairness you should compare apples to apples in the first myth. Compare someone living with debt having a healthy EF and also a person without debt having that same healthy EF.
Who of those two assuming everything else is equal has a better financial footing?
The assumption that someone living without debt has no emergency fund is not fair.
Waiting for the next video and thanks for educating and adding your voice to this topic of financial literacy.
Thanks for your comment Amanda. Great questions. While it's true that people may "feel" that paying off debt makes them more financially secure, we've talked about how there are better ways to ACTUALLY use your money to increase financial security (instead of making a financial decision based on feelings).
You say that an apples to apples comparison is a family with debt + e-fund compared to a family with debt and no e-fund. That is not an apples to apples comparison at all. Apples to apples is two families with the exact same amount of debt and the exact same amount of available cash every month.
One uses all available cash to pay off debt. The other uses all available cash to build a six month emergency fund. In that case, who has the better financial footing? The couple with the e-fund because they have the ability to withstand financial shocks and could also pay off their debt if they want to.
We don't assume that someone living without debt has no emergency fund. We didn't talk about people who are debt free at all. The specific myth that we are busting is that paying off debt is the best way to increase your financial stability. It's not.--Tasha
I love this channel!! You guys really know how to explain finances to the average person. Things I definitely would have been ignorant to or things I wouldn’t have known how to navigate, you guys explain so well. Thank you for educating me👏🏽👏🏽
You are so welcome Dalila! Thanks for watching!--Tasha
I so agree with number one. I just bought an air conditioner on a 12 month no interest. I could of paid cash for it, but I was not going to wipe out my savings!!!
Make sense to me! As long as you have a sound debt repayment strategy in place, it's perfectly valid to want to maintain your liquidity!--Tasha
I paid half down. I like you both because you think outside the box. Where may I send requests for videos?
i never buy anything under $1k without buying in full. if i don't have enough to cover it, i will hold off.
But you can still have a discount on your purchase if you pay in cash than paying with credit card w/ 0%interest
Glad that you touched on the bankruptcy aspect as well. Bankruptcy seems to get such a bad rep. As a bankruptcy attorney, I've had so many clients come in expressing that they are ashamed that they have to file bankruptcy. But that's what it's there for lol! Most people do not understand that bankruptcy can be that one solution that can help you escape debt turmoil. The other thing, in addition to those type of accounts you mentioned being exempt, is that even though you have assets that have equity, the bankruptcy code also affords you certain amounts of exemptions on those assets. So, sometimes the full amount of the equity can be exempted from creditors. Great video!
Any plans to make a video or series of videos on financial literacy directed to college students? (like advice you'd give to Alexa) I'd love some content to share with my young cousins and mentees since you both are so so great at explaining finances and how to build wealth.
I’m a relatively new subscriber to your channel and have been going thru most of your videos . This is hands down y
one of your best videos. This should have more views than it does.
Funny story: so a couple weeks I was recalculating our budget. I wrote everything down in a chaotic environment (kids and mom wanting my attention as well). Well I had my husband go over my budget to let me know if I was missing anything because I noticed we were really tight on budget. Well a few days later I checked and realized I missed an entire paycheck (we get paid weekly), and I was so confused on why my husband didn’t catch it. So much for second pair of eyes.
It happens! But it's great that you guys work as a team.--Tasha
I am also someone who uses credit cards for the perks, but always sticking to my budget. It also helps me because I can download a report of everything anytime I want to check up how I am doing in my expenses.
These are really really useful! I was thinking about paying off all my student loans before saving money. Now I see how that’s not a great idea. Thanks guys!
I’m confused as to how this logic doesn’t make sense...I got into Dave Ramsey and instantly knew, as a single mom who just graduated nursing school, that his plan wouldn’t work for me, I’m all for building an emergency fund AND paying off debt vs allocating all of my finances into debt first 🤷🏾♀️
Really interesting point on the protected accounts by bankruptcy. Here in Canada RRSP's can be treated similiarly, except contributions in the last 12 months may not be exempt.
A couple of years ago I bought a new (to me) car. The payment was more than manageable and easily incorporated into my monthly budget. I COULD have paid cash for the car -- I had enough in savings that would allow me to do so and still have about 3 to 4 months of an emergency fund left over. About a month later, my job was downsized and I found myself unemployed. Not really sure how I would have been better off with a paid-for car and only 3 to 4 months' expenses saved up than I was with a manageable payment (that was accounted for in calculating my emergency fund) with 9 to 10 months' expenses saved up. I had so much more freedom to spend time looking for the right job for me while getting enough freelance work to keep me going without having to worry about the end of the EF coming too soon.
I use YNAB and the fact that they automatically transfer purchase amounts from a budget category to the credit card payment category has helped a lot in terms of staying conscious about my spending while using credit cards. Great tips!
Oooh, that'd handy.--Tasha
I regret being pressured to pay off my medical debts so quickly, while I avoided bankruptcy, I have so much less to build for the future on.
I love everything about this video!!! I am here for this kind of content. Thanks for another great video
I'm happy to hear it! And you are so welcome!--Tasha
You guys are a Power Couple! Great advice and videos! LOVE IT!
I've signed up for Wednesday night and one of my colleagues signed up at my suggestion, too!!!
Awesome Caryn! Looking forward to it!--Tasha
Great tips as usual! I especially like the advice to invest your wealth in TAX EXEMPT accounts! Genius!
Amazing information about bankruptcy and exempt accounts, I had no idea!
Not many people do! That's what we're here for!--Tasha
Joseph needs his own channel, trynna live a better dad lifestyle!
I love your balanced view of family finance - thank you
Do you know of affordable good life insurance for young people with heart disease?
Tasha, you are so joyful in the last videos, I love it 💙
Great job!!!
I have a question. 😁 on the topic of resumes, when you say keep it updated.... Ihave been with the dame company for over 12 yesrs... What would I update?
S12180G different positions, maybe big projects
Extra certificates, maybe even paid by your employer
S12180G Accomplishment... new position... im pretty sure your company have goal to meet and big projects..reach out to supervisor and see what you did to meet those goal with them... quality, saving, production... you should always have a master resume and list of eveything... and once you need or ready to apply at other company.. you use those list to break it down to write a separate resume to apply for that position you think you fit in... hope this help...
How about be debt free AND have a healthy emergency fund for the WIN?
If you could accomplish both in just one month, awesome! But otherwise, emergency fund first. Plus there's also the fact that the real goal is financial freedom. So after e-fund, then the next question is what's going to build your millions the fastest? Because the ultimate goal is financial freedom. And you don't have to be debt free to get there. --Tasha
Of course it takes more than one month! But most can't build a sizeable emergency fund in one month, either. So you work at what's most important to you as you go, but if you can get to the point where you have both done, awesome!
I didn't say it would only take one month. My point was that if you could accomplish both in less than 30 days great, do both. If not, you are far better off building true financial stability by focusing on your emergency fund first.--Tasha
What should you do with your first salary from your first full-time job?
Madhu M B where I’m from it’s kind of a saying that you should spend it all for good luck ☺️
i say celebrate with close family and/or friends who are genuinely happy for you getting a job. take your spouse and or friends out to a nice dinner. me and my wife get fancy dinner everytime a big bonus or large sum of money comes in. and we put almost all of it into savings.
Do you recommend the robinhood app for those who are new to investing?
We don't currently recommend any particular robo adviser. It's something we're looking into though. Stay tuned.--Tasha
loved this video!
Thanks!--Tasha
I overall agree with you. For good or bad, I'm paying off all of my debt right now, which is just student loans. And, I should have it paid off sometime in spring or early summer of next year! YAY! However, I am setting aside money for my emergency fund with my husband and it is close to $3,000. But the reason why I can't invest right now in any retirement funds or investments is because I live in and teach English in South Korea. While my husband files our US taxes every year we are not taxed (we don't make enough to be taxed in the US) and so it complicates things. I guess when my husband and I move back home we'll heavily invest. Unless, I've been told wrong and someone can show me sources on why I'm wrong, I'm going to continue about going this route.
You did not read what I said, I'm legally not allowed to invest because I live and work abroad because my income is not taxed in the US. I don't make enough. And right now I'm not only focousing on my student loans, I'm putting money away for my emergency fund. So unless I've been told wrong please provide me sources that tell me that I'm wrong.
"special snowflakes" LMAO too funny
I would rather believe in someone who built his wealth using cash and being debt free than someone who says debt is good but has negative net worth.
Are you talking about Dave Ramsey? If so, he totally build his real estate empire using debt--even after filing for bankruptcy. So...yeah.
Joseph still sound a bit sick. Great video guys.
He is still sick. Poor thing.--Tasha
One Big Happy Life hope he gets well soon
Heyy
Heeeyyy!
I don’t believe your 1st debunk on money myths.
I dont believe your 1st money myth debunk.
Lots of people choose to not believe facts. Remember when people didn't believe that the earth was round? The thing is that facts are true whether or not you choose to believe them.