I just got out of debt yesterday! I now have all 7 credit cards paid, my home is paid and my mustang is paid. I’m starting to save now. I’m just happy that I have my big ticket items paid. I’ve invested a little and I do have a retirement plan at work. I’m going to be 54 this month. My daughter lives out of State and is finished with college. I’m just being thankful right now!
Awesome! I did the opposite but it's working out. I focused on my 401K but I didn't start til 40. Im now 67 and have debt but have over $100k so its nice to know i could write a check for debt except house which is half paid off. Go after that 401K or Roth! They let you increase you deposits after 50 and it will drop your taxable income.. Time is your friend and we both started late. Better late than never!
Your thoughts of Dave Ramsey are the same as mine. One tweak on credit cards...if we put it on a credit card we immediately pay it off. If I don’t have the “cash” in the bank to pay off the credit card immediately, we don’t buy it. It was a psychological shift that I made in order to use credit cards wisely.
You are my Dave Ramsey. When the pandemic hit, I found you through Jens channel. Then I realized the way you live was the way I mentally wanted to live I just had a few pieces missing. Now.. I do EVERYTHING you do that works for our family’s lifestyle. It feels like guidance I never received and there’s so many of us who lack this. THANK YOU CHRISTINE!!!! You have no idea. The impact you have made in my life in 2020 & now 2021 ❤️
I agree, I found this channel due to the pandemic’s extra time. I have been watching videos to save on food, and I think that’s probably the best impact. Still working on being consistent, but I have really appreciated this channel helping me think outside the box.
I am debt free including my house, thanks to the Dave Ramsey baby steps. I did modify them since I still own a credit card but I too use it for gas so I can earn free money back. I am 47 years old and it feels good to be able to breathe a little without debt hanging over me.
A lot of his tips are not what's smartest financially but what works psychologically. Like he says, if people knew what was smart most of them wouldn't be in such a huge mess in the first place. I take his baby steps as a rough guide and adjust it to my liking. 😊
I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
Catherine Morrison Evans is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Benevolence, this reference seems valid.. Just inputted her full name on my browser and found her site without sweat, 20 years of experience is certainly striking! very much appreciate it
I think there’s definitely a generational difference in terms of cash vs. card. With my card, I can pull up my balance on my phone and see exactly what I’ve spent, but cash feels like free money that I don’t keep track of.
I agree, I spend cash like there's no other, when it comes to my card I'm much less likely to swipe my card. For need to swipe that card it has to be a need or a strong want. When I was in college I was a server in bartender and I would never spend my check but the cash tips that I got I couldn't tell you where the money went two hours later. for me it was more of a mental thing cuz I knew I was going to walk away from work every night with at least $$100 cash and I use that exclusively for fun.
@@smallfamilysmallbudget1817 I agree with you. Swiping a card is the same as using a credit card to me and I don't have to constantly watch my account to keep track of what I have spent. Cash keeps me focused on how much I spend. It really does depends on the person.
I think that Dave Ramsey's baby steps are good for a particular type of person, but as an unmarried, childless 27 year old living in a major city, they don't all make sense for me. Also, re: credit cards, I put nearly everything on a cash rewards credit card, and then use the saved up cash for Christmas gifts at the end of the year. I also pay down my CC weekly and check it often so that I am never surprised by the balance. Paying it that often hurts in much the same way that cash out the door does.
At this point, the "no credit cards" bit is more about brand and marketing. I am sure that Dave recognizes that some people are perfectly okay with credit cards. However, since everyone thinks they are the exception, it is easier - and possibly more helpful overall - to go with the blanket statement to everyone. Better for the brand to say "No credit cards" than have a bunch of people saying "I tried Dave's 'Sometimes credit cards are okay' and it ruined my life."
I haven't had a credit card in more than 20 years, putting everything on my visa debit card instead, so I don't have a score anymore. I found myself in heavy debt due to credit cards back in the '90's and I swore that I'd never fall into that trap again.
I do the same. Credit cards can be great if used responsibility. I read this somewhere and it makes good sense to me: "credit cards are just deferred spending." It's not debt unless you can't pay it by the due date. His big thing is also that you tend to spend more on credit cards, and that might be true, but as long as you can pay it off, it's probably not going to be much more than if you used cash only.
Also, I put some of my recurring monthly bills on autopay on different cards, and then I pay the card instead of the bill. This keeps them active so my credit doesn't take a hit from them being closed.
I’m a 21 year old fresh out of foster care and Dave Ramsey’s system has been incredible. I’ve followed it for 2-3 years. The math does work even for 2021 especially if you listen and read the current podcasts and books which do speak on current events and what to do. It’s a lifesaver and I do think everyone should use it.
My husband and I decided that our kids would need to pay for their own school. We did tell them they can live with us if they want to as long as they’re doing something like college or a trade school. We want to support them but we can’t afford college tuition on four kids.
Save for your own retirement first!!!!! Student loans suck but they exist. And college is not inevitable. Growing old is. Don't burden your children with wondering how they are going to support you in your old age. Do it yourself.
💯 My mom paid for my older siblings college before she paid for her retirement. Then I come a surprise baby at 45 and everything changed, she ended up with a college student at retirement age. I ended up paying for my own college completely. and she got older and needed more help it was up to us and it created a lot of resentment. I was putting in a larger portion than my siblings were even though they are 20+ years older than I am and they got their college paid for. you can't fund retirement while you're in retirement. you can fund college while you're in college
@@TheMuirite I agree completely. It is a tough situation for family. My grandparents struggle to pay for both medicine and living expenses. My mother, and my siblings help as much as possible but it is hard even with so many helping. There's no resentment for us, but my grandmother feels like a complete burden because she needs our help now, when she had been so very independent throughout her life.
We didn't save for college and I so glad. One joined the military, one had no intention of going at all and the last one has a company that pays for it. I paid for my own college and it made me appreciate my grades. I think more kids need to know that their education is their responsibility.
If you can’t afford it then you shouldn’t pay for it however if you look at very poor first generation immigrants somehow fund their kids college and usually their kids end up succeeding well beyond their parents level because there is a respect for education snd it’s taught at a young age. Families where they can’t afford college yet give no guidance to their kids starting as babies about education and college, those are usually the people that graduate with debt way beyond what their degree would pay.
There was no way my college education was going to be paid for me. We were struggling every month to make ends meet when I was growing up. I joined the Army when I turned 18. Served 8 years, then got out because I got married and we didn't want for us both to be Soldiers when we had kids. My service entitled me to a full college education, which I accomplished eventually. Where there is a will, there is a way!
Same here....and made a system: One semester no classes but worked full time. Next semester took 3 classes and worked part time. It took longer than 4 years but NO LOAN DEBIT!😁
One area I vehemently disagree with him- he says stop ALL investing until you're out of debt (except the house), even if you get an employer match. I think it's better to take longer to pay off your debts and contribute the amount required to get the maximum match. An employer match is FREE money that can really add up and compound over time, and I think it's foolish to leave free money on the table!
@@tisharodriguez9541 I understand. But in this case, I would find the small risk of staying in debt a little bit longer for free money in the form of an employer match to be acceptable trade off. We all have to find and follow our own comfort level with such things.
It all depends on how you manage your debt while you are paying it off. In my 20s, I had cc debt (I know - stupid). I consolidated it all on a 0% interest card and only had to pay the actual principal off. I should have been doing my employer match on my 401K to get that compound interest (way better return), but I didn't because I didn't understand $ and just followed Dave's advice (which is better for those who have Huge interest rates on their debt). I lost a lot of years of compound interest, and you can never get those years back.
My parents did not pay for any of my college. The deal they gave me was living at home for free while in school. For tuition, I worked and earned scholarships or grants. My husband did the same. We are saving for our kids' college, but not to the extent that we are financially unsound. I don't think we will pay for all their college. Going to school is a priveledge they need to earn in part on their own. Plus, there are plenty of careers that don't involve an expensive degree that will support a good livlyhood so I wouldn'tond my child picking that path. Also, I sorta feel retirement is more important than my kids college because we can't go back and re-earn that money whereas my kids can attend/pay for college at least in part on their own. My parents have fully funded retirements and it is comforting knowing they are taken care of and my sister and I won't have to try and financially care for both our families.
I'm so greatful for they way my parent's handled tuition. They loaned me a small amount of money, 7k, which I worked to pay off as I was going through school. It was only after I graduated and worked my butt off to pay for nearly all of it during college, that they told me it was a gift and not a loan. The loan motivated me to get scholarships and work my way through. It was just living expenses in the last year that weren't covered. My course load was just too heavy for me to hold down a job at that point.
Going to school is a human right and should be free all over the world. If a country wants to have a good future it has to invest in education and health. Both have to be affordable for any citizen
I came to the comments to say this... especially for someone over 40, saving for retirement is so much more important than saving for kids college funds. I would much rather retire at a reasonable time than have my kids go to college on my dime. I paid for my own college and my hubby is doing a paid apprentice and I think we both have learned a lot by doing this on our own. 🤷🏻♀️
Agree. Neither my parents nor my husband's paid for college for any of their children, and we will not be paying for ours either. They know this, they've always known this, and they'll have to earn their way via academic/music scholarships, their savings bonds from their uncles, by working a job, and loans. My late father always said, "They can get a loan for their education, but you can't get a loan for your retirement."
I agree with you. In Jan 2020, I realized that I was drowning in debt. I have been HARDCORE following Dave and am about 2 months away from being debt free! But, I am realizing (like you said) things aren't the way they used to be. If I don't have a credit score and decide to upgrade my home and need a small mortgage, they'll laugh in my face. I will continue to use my credit card responsibility
I’m so glad you’re addressing this. We have never been big Dave Ramsey fans in this household. I see the value in it as a beginner plan for people who are just starting out in personal finance. But we have always thought he throws the baby out with the bath water where credit and credit cards are concerned.
I just started the baby steps last month and your points are definitely interesting. Thank you for sharing and for your perspective! I'm just so glad to take charge of my finances & pay off my student loan debt!
Yes, he always says if you are facing any emergency, or a pregnancy, a job loss, anything like that, you temporarily stop paying off debt, and stockpile money. When the emergency is past, you reallocate that money.
@@traviswall1982 I'm confident inflation will rise, but not ridiculously in the US. Lucky for you, you have a sizeable economy, most of your closest partners are tied to your economy and would tank together with you, so in the end, you wouldn't feel hyperinflation as much as say Venezuela, who has to buy most overseas. I'm European, using the euro, so it's pretty similar, our internal market is big enough for inflation to be bearable, even if it increases. Heck, they are trying to increase inflation, here, because they are afraid of deflation even more (even with the German collective trauma of the Inter-War hyperinflation in Germany). Still, keeping money in a sock, or even a general bank account, is like watching it fade away slowly.
@@barvdw China has already started to lessen their hold on our treasuries and the only thing holding our Economy together is China letting us buy stuff with U.S. dollars. So the shipping containers come full of products, and leave empty. Our deficit is ridiculous since we are overregulated, thus we cannot make products here in the U.S. If China sells all our treasuries at once, and no one else buys them, that leaves the FED, and everyone living in the U.S. in '08 knows how that ended with Fannie Mae and Freddie Mac. We are toast.
Honestly I feel like Dave is a great place to start for people who are just starting and need a strong hand to guide them. The goal is to graduate from needing someone to guide you every step of the way to being able to wisely and confidently manage your money.
I've been doing the Dave Ramsey plan since August and I've gotten everything paid off except one consolidation loan and my mortgage. His books and podcast really opened my eyes to how frivolous I was being and how unprepared for the future I was.
We have four kids as well. Two college age and two in high school. Our oldest did two years of community college and then transferred. Our second oldest is on the same path. It is so much cheaper to get those general education classes out of the way at community college. Obviously, you have to make sure the credits will transfer. Also, our kids work to pay for college. We have money saved and are continuing to save to help them as needed, but our two oldest have paid so far with their own money. I also think they take their education more seriously if they are contributing to the cost.
Major Dave Ramsey Family here, To the point where my 6 year old will want something but ask if it is the budget first! We have done the steps for the first day of marriage and have never had a problem that we couldn’t tackle. Now a 10 years later we are o. House number two, with the first we had paid off in 4 years. We had NO credit score when we went to buy our second house!! I don’t agree with your idea on credit score just because 9 months ago we moved with no credit score. We came in with the total selling price of the first house and and put it towards the new loan. It spoke more than anything a credit score could have. It’s all about discipline. Credit cards to us are a “gotta have it now” mentality. As far as you thoughts on the emergency fund I agree. There are a lot of problems that are more inflated now but I think it’s more of the mentality to have a fund in place that you believe is right for you and then start the snowball. I think he says $1,000 because he understands the statistics and realizes $5,000 emergency fund is unobtainable to a lot. He wants you to start on the snowball as quickly as possible that is more than likely to happen when someone can save $1,000. Goes back to the mental win you were talking about.
He has addressed the $1000 emergency fund multiple times and said he still stands behind it for most people. Simply because it lights a fire under you to get your act together! Besides, most of these people didn’t have any savings and a pile of debt, so $1000 is already a massive improvement.
@@EmeryShae I completely agree! I think in his eyes a $1000 is more realistic to obtain and isn’t such a deterrent that people don’t even try. It is a kind boost for sure. On the other hand I can agree with Christine for what she says. If you can save a little more and you feel better than go for it. Then tackle the debt. I kinda go both ways on that!
@@SirenaSpades I agree with that. We have followed to the T and have passed MAJOR milestones. I specially for a 33 and 34 year old. We save cash for all projects or just don’t do things that seem fun that we don’t have the cash for. When I agreed with her in the saving thing, I don’t agree with putting money into savings ha and never start baby step two. I was just agreeing that if you have every intention, and $2,000 would make you feel better to go to baby step two, then do so. It’s all about starting!!
It’s like your reading my mind . We are in in the midst of Dave Ramsey BAby step 2 . Should be done with it in a few months . We are At the stage you guys were back in your first year . Since my husband is in education and I stay at home the struggles you had at the higher steps are totally relatable . I appreciate hearing your Thoughts. Your frugal tips are helping us tackle Baby step 2! Thanks Christine .
I have been *sort of* following Dave Ramsey since I got my first real job in 2018. I’m on the Save 15% For Retirement step, although I think between my required pension payments and trying to max out my Roth IRA, I’m doing more like 21% right now. It helps not to have any kids who need tuition 😂 I like the baby steps because they gave me a good starting direction when I didn’t know what my savings goals should look like, and I also like having a checklist of “steps” to work toward and mark off. The emergency fund and mini emergency fund have really helped me out through car repairs, moving, a career change and more. But I do find myself making a lot of alterations, and I definitely put the work in to maintain a good credit score. Speaking of alterations, THANK YOU SO MUCH for this video. Hearing a balanced critique of the Baby Steps from someone whose advice I respect felt like I was being given permission. I think it is time to make some adjustments that otherwise would have brought me a lot of anxiety (like re-balancing my spending and saving priorities and just generally not feeling like I’m failing if I don’t follow the plan to the letter)
Thanks for your transparency! We didn't do all the steps in the order. We figured out what made sense and works for us. And we'll be debt free by September and will focus on tackling our mortgage.
We just paid off our school debt last week. I didn’t even realize I we’ve basically been following his baby steps! We just did what felt smart 😂😂 pretty comforting knowing we were in the same track as the most famous financial expert. I definitely agree with the credit card thing though! I want some free travel myself.
What I realized is that even if I don't follow his program to a T, it educated me enough to make tweaks or changes in my finances that work for my life. "Teach a man to fish" kind of thing. Without that education, I would probably be worse off.
Huge Dave Ramsey fan here. I also listen to the Money Guy on TH-cam. They have a FOOO Financial Order of Operation. Lots of great information. We used the baby steps to get debt free and mortgage free. Now we are stacking up retirement savings, cash savings, etc crazy fast. We will retire early because Dave opened our eyes to "Debt is dumb. Cash is king. "
@@SirenaSpades Only BS 1 & 2 are for people in debt. I like to refer to Dave’s approach as basic personal finance. It will get the job done, and it’s “challenging” enough that some people will never attempt it, while others will do really well with it even if they don’t advance to other approaches.
Dave Ramsey helped me get started with budgeting. After some time I made some changes to his plan. I began saving to my 401k plan again when some of the debt was paid off. I just didn't feel right about stopping it. I have a credit card with cash back rewards. Mostly buy groceries on it, and pay it off each paycheck.
Here in the UK, Credit Cards offer you additional cover if something is lost, stolen or damaged. If I buy a big item or make purchases online I always pay with my credit card and then immediately pay it off. Have just started the steps but adjusting them to work in the UK. Credit Scores are a big deal here and you can't get away without having one. Really enjoying your videos on this new channel.
I cracked open my Diet Coke right before you opened your DP. 😉 I just finished Kimmy's video on building your food storage through caselot sales. Now watching your financial advice. So glad for ladies like you who are helping so many people. Such valuable info for these times. 🤗
Love your edits to the plan since I did customize DR plan too (very similarly to you too!) Bc it needs updating. side note for those interested in Ramsey's plan: Baby step 4, 5, and 6 happen at the same time 😁 (fully vested in retirement, saving for kid's college while paying off the house. ) U Don't go 'gazelle intense' on those final three 🥰
I am a Dave Ramsey fan. I did go through financial peace University, and do agree with most of his principles. That being said, I think a little update is necessary to his program. Thank you so much for making this video. I loved it!
I just finished Financial Peace last week. I love your take on having a larger emergency fund and using credit cards for the perks. I'm definitely saving money by eating at home and bringing my coffee to work.
For me, I am about to follow Dave's program to a T! The reason I say this so emphatically is most people who challenge this steps are missing a huge thing... RISK. You did touch on this when discussing why you feel the baby emergency fund is too low, but then totally dis regard it when talking about credit cards and debt. I have had a hell of a roller coaster ride since 9/19, including a car accident, cheating spouse, and a business collapse so I have had it hammered home how risk is a huge part of life
I started out doing the Dave Ramsey method, and made it to debt free. Depression does weird things, so even though I knew the steps and how to be disciplined, I spent myself into debt again. I think that not only do you need to take control of your finances, but also figure out underlying causes for your "normal" spending habits that are easy to fall back into if not addressed. I'm single, and the accountability partner that he recommends wasn't really something I did, as discussing my finances with my parents or friends isn't really part of my personality. I do think parts of his program need updating with figures more in line with today's needs. I am currently mixing his steps with YNAB, so that
So that I have a bigger emergency fund and am actually saving for things I know I'll need (like a rear brake job) while also paying off debt. This helps me get accustomed to planning out purchases so I don't end up using the emergency fund or putting it on a credit card. I firmly believe that credit cards are for online use, helping to keep your checking and savings accounts safer from the various ways that hackers and identify thieves get your information.
@@dragonsgrrrl I completely agree. Credit cards are for your protection only. Online purchases and gas stations where hackers have been known to steal so frequently. Make sure you don't spend on them more than the budget already has accounted for, and pay them off at the end of the month. I use a very high interest online checking account and get a great return each month instead of credit card points (I'm talking consistent rates that rival the stock market -way more than the measly
After the screwup I made with my first credit card, and my grandmother having to bail me out of the credit swamp I had mired myself in, I vowed never to have a credit card again. It's a relief to pay things outright as I have the money and to always make sure I budget enough for necessities
Most people don't realize a person will never be out of debt because there is always an upcoming bill. A person is only on time or ahead of their debit. Example twice a year there will always be a property tax bill if you bought a home. Example #2 you will never know how much your income tax bill will be until after the year ends. You only have an educated estimate if your income, investment profits and tax laws had no changes.
I paid for the Dave Ramsey program this year. However, I think you're right about the emergency fund amount. I will be moving into another apartment next year, and I've found that I do need to maintain my credit score in order to rent from anyone! I am adjusting the program to meet my needs now.
Hiii I found you because I’m following Dave Ramsey program. I’m on baby step 3. And actually loved what you said about the emergency fund. I think a month of expenses is really more realistic than $1000 dollars today. I live in California and I’m single mom. A thousand dollars here it does not cover my gas hahahhaha Loving your channel
Love him and his plan. However, I needed a little more so I followed The Budget Mom and working her plan. And last year with the two plans I was able to pay off 11k even with my hours cut in half.
To be fair, you don't really need the program (or his books) at this point. Listen to five of his episodes and Google his baby steps and that's all the knowledge you need. The rest is just for motivation or for people that are completely financially illiterate
You don't need the course, everything on youtube. Also,why not chsrge for the course? He came up with a method ,spent time marketing it, why not profit from those who want the extra motivation? Also he gives it away for free almost daily it seems to certain callers.
Paying for it puts some “skin in the game”. It makes people be more serious about it. Also, he came up with his method, from a business perspective why would he give it away for free?
I think Dave’s program is simple and a great teaching tool for people who really need help figuring out what a budget is and for helping people in difficult situations to have a way out. However I completely agree with your added methods. I have used credit cards for years for points and rewards and pay them off every month. I save points now for new tires. Years ago I would take out new cards with 0% interest for a few months and transfer debt from card to card and pay off a remodel project quickly with very little interest. Work the system as much as possible because the system is designed to work you. Love your videos 😊❤️
My fave! Lunch with Christine again today. I used Dave Ramsey to crawl out of 50 grand of divorce debt. The credit score has always been a sticking point for me also. I use my Discover for the cash back bonus. Super disciplined with it. It helps my credit score since my house is already paid for.
Great video! I've been Dave-ish for about 7 years now. It has helped me a lot but I agree that you should do what works best for you and your family. I want my kids to have some skin in the game when it comes to college. I like the idea of using credit cards for discounts and miles. Also, house interest rates are super low.
I couldn't agree more! I use credit cards, have an emergency fun, and I am trying to pay off the house! I want to invest more, but were in the same boat as you were. We are investing 15%, but we could be doing more, but don't make enough to do that! So were splitting between house, and investing. Thank you for your insight!
Cute sweater and the inserts were pretty cute too. I don't comment often (on other channel) but IMO you did a great job explaining everything. I was curious as to where you stood on the Ramsey plan. I think he has some great ideas but differ on a few. We were debt free (including house) before I retired in 2010 at the age of 55 (with a full pension) before I even knew about Dave Ramsey. The pandemic made everything strange. Shoot - at one point stores weren't taken cash! Have a wonderful week.
10000% agree with you here. Currently working the baby steps and would never dream of not having a great credit score. As someone who works in finance I can confirm companies definitely look at your score and report during the hiring process.
You have awesome tips-thank you for your channel! I am a big Dave Ramsey fan. I like your tweeks but I definitely could not have handled a credit card 10 years ago like I can now. It can be very hard to control spending with it, as you mentioned. One safety measure for it could be having a baby-step minimum to go along with credit card usage just to be sure you have the funds in the bank to pay it off :) .
I agree Christine; Dave Ramsey does have a great program, but I also believe you have to 'Play the Game' with regards to your credit score. You have to use the 'Tools' provided to get ahead and grow and have an enjoyable live at the same time. Thanks for your videos - very motivating!
I do like Dave Ramsey’s book and system. You seem to have a lot of self control regarding money and I can only speak for myself but I need help to stay on track and his book saved my financial life and I was able to start my own business and quit my thankless job. Your channel is very informative and much needed. I would guess but do not know that like me if people are in financial trouble and able to pay off debt and save any money $1000 is a huge deal and then once I was on a roll was able to save much more than the $1000. I love your channel and I love Dave Ramsey he has helped a lot of people.
I think it is best to read his book to understand the steps and then watch/listen the radio show everyday (it’s on TH-cam every afternoon). On the show, he has addressed changes to the steps due to the pandemic 😷
I love Dave Ramsey, he has helped so many people overcome their debt and to remove the weight of that debt from their lives. I think as far as tweaking it would depend on if you can handle having a credit card or whatever else you'd like to change. We use credit cards and are debt free and own our home out right and are retired living our dream.
Great advice! I agree with you that Dave has a great foundation if you don’t know where to start or if you have trouble with managing money. I do agree that some steps need a little tweaking and also that if you’re investing/ paying off your mortgage/ saving for college all at the same time, that’s great too. Also I personally think giving back can be done at the same time, if you’re able to. Thanks for you clear and thorough advice.
Thank you for discussing such a relevant topic! I think his plan is great when you don't know where to start, with baby steps. We have used his advice as a guide and tailored "steps 4,5,6" to our family situation and goals. We were also able to make adjustments for 2020. Everyone should use their best judgement when following advice but, having a guide and setting goals is helpful. Thanks for great advice!
I agree with the credit card points. My wife and I do the same thing to travel for free. Also, good point about the paying off your mortgage. I haven’t bought a home yet. But we’re looking to buy a duplex and rent the other out. Dave’s system is great for the vast majority. However, you can make changes that will ultimately make it better
Thanks for the video! It made me check the steps and I realized we just got to Baby Step 6 on the 1st! I think the overall premise of the baby steps is smart and I did them with some personal tweaks. I definitely needed the guidance so DR is appreciated in this house
I used the program to get out of debt and start saving. I followed the program aside from the credit card usage. I just made sure to stick to my budget and pay off my card completely at least twice a month. It worked great for me! I'm with you on the credit score though. It's hard to get around without having one, and the cards are much easier (and sanitary) to carry and use.
My name is Aimee...I went to a Dave Ramsey class through my church once as a couple~getting out of the Military, once as Parents bringing our daughter, & we have 2 more kids. :) In October, we paid off 3 of our houses, & sold one of them! It was extremely hard living paycheck to paycheck, & we invested our money in houses way before we heard about Dave...so we dealt with hard knocks. Dave has a pretty good program! I am gonna give him 2 Thumbs Up!!
I appreciate the common sense advice of Dave Ramsey. Although in practice the baby steps might be difficult, it’s simple. I think Dave gave us a good foundation to adapt from.
My family started DR a year ago. We’ve paid of $35k of debt. We have $4500 left. It’s helped us tremendously. I don’t like how he talks, I think he’s kind of an ass and incredibly old fashioned and behind the times, but I didn’t realize how we needed to be more responsible with money until we listened to his callers.
Love Dave Ramsey but also completely agree with you Christine. My husband and I did financial peace university when we were dating and have always been debt free. However, 7 years later and wanting to a buy a house the only mortgage company that will work with us is offering a significantly higher interest rate than friends with good credit received from other lenders. So now at 27 & 30 years old we just opened our first credit card to start playing the credit game😔
I basically agree with you on everything. We have to rent a car when we visit family because they don’t have a big enough car. I’m not going to waste my time hunting for a company that takes debit. I just want to get to my destination. We also move a lot and it costs so much to not have a credit score. Utilities, cell phones, renting, etc. all look at credit score now. Some won’t even accept an application no matter how much cash you have.
I agree the $1k baby emergency fund advice is antiquated. I understand the idea that it's supposed to be a small amount that won't cover everything so you get that tush in gear, but $1k when he first taught it 20 or 25 years ago is not the same as $1k now! I think it should be more like $2500 or so.
Totally agree with your 2 no no's of Daves. My husband and myself have completed all the step and we have credit cards and I do like that I still have a good credit score even thought I don't use it anymore.
I agree with the issues around step 4- we're in the same boat. I agree with the credit cards too- I have to pay to use my debit card but I get paid to use my credit card so it makes more sense.
Just started Dave's plan (for the 3rd time) and qualify as an "ish". Definitely agree with you! One more thing im waiting til I'm more successful til I call in to debate is that I have driven a Mercedes Benz or BMW for years BUT I buy the "fleece" when it's turned in and put 50% down. 1) it's already depreciated 2) with 50% down you're never upside down and can get out of it 3) my payments are rarely over $250 and 4) I NEVER HAVE TO DRIVE A HOOPTIE. You need an emergency fund or an extended warranty but with current interest rates it's not too expensive and you can usually sell it to cover most of the 50% on your next car.
I will say that the debt snowball doesn't work when you just have one debt. We have one debt, our car and our finances are basically zeroed out, it's really hard to knock out that debt. We jumped ahead and bought a house 12 months ago and I'm so glad we did. Right now due to utah housing market we couldn't afford to buy our house today and paying the rent increase would be $500 more than our house payment. We live on a zero based budget and it's tight but we are hopeful for the future. We are doing all the right things there just isn't much wiggle room which can feel demoralising.
2020 was a whacky year... I'm 23 years old and I was supposed to get married surrounded by family, but instead took those deposit refunds and extra savings from not going anywhere and decided to buy a house. We actually had our offer accepted on what should've been our wedding day. Our interest rate is 2.625% and even the bank was shocked by how low it was, and told us we would virtually never have to consider refinancing because rates are currently the lowest they've ever seen. Our financial goals were shifted out of order thanks to the pandemic but we're so grateful to be living on our own sooner than we'd expected.
First of all, I love Dr. Pepper so you have gained a fan from just that. Second, I'm a bid Dave Ramsey fan. Enough so that I got training from Ramsey Solutions to become a financial coach. I certainly see the somewhat outdated nature of some of the numbers. And I certainly see the argument for using credit cards if you can pay it off every month. My wife and I personally don't use credit cards. And we got our mortgage from a company that does manual underwriting. But I won't judge people for their decisions with their finances. I personally think that DR isn't for everyone, but I like the simplicity of his system and the fact that he's got a long track record of helping people. Great video and I'll look forward to more videos!
The best thing about Dave Ramsey is that he works with people how they are. The obvious example is how he advocates for debt snowball instead of debt avalanche method. Avalanche makes more mathematical sense but humans aren't robots and it turns out that since snowball creates more motivation, it actually works faster. I agree that there can be reasons to deviate from the exact baby steps if you want to really do some research and understand slightly more complicated concepts, but the baby steps are great for people who are overwhelmed or just don't want to have to think about it. Christine is obviously a smarter than average person, but not everyone wants to or can think about the more complicated aspects of personal finance. I like how Dave Ramsey talks about financial dignity as something everyone deserves, and I think his system is a good balance between being simple enough for everyone to follow and working pretty well in every economy.
I so agree with you and the credit card usage! I get 2% cash back so I use my credit card for everything. I pay it off every month. At the end of the year that reward is my Christmas money.
I like Dave Ramsey’s as a beginner plan to taking control of your finances without overwhelming yourself. Specially if you are entirely new to it. However, I agree with you that once you have control over your finances you should reassess the emergency fund amount for your family, credit card control and depending on your situation investing vs paying off a mortgage.
I’ve tried to listen to his radio program and I can’t stand his tone with people calling in for advice making them sound stupid when he had to file bankruptcy himself and he is also making a lot of money from those who are trying to get out of debt.
He does come across very harsh at times. That is part of his brand. He is trying to get people to change bad habits, overnight, cold-turkey. A lot of people need the "drill sergeant" type coach when doing that.
I listen to his youtube channel sometimes. His tone is hard at times, when he's that way I just click off of that. I don't think he tries to make people sound stupid. He doesn't hide the fact he filed bankruptcy. Yes he is making money from those people but it's no different than giving the money to another person for advice, just saying. I like him and what he stands for.
So the fact that he had a bankruptcy and then built his way up to a millionaire should be more motivating. He knows stupid because he’s been there. People don’t like to hear the truth
I’ve used some of Dave Ramsey tips but I’m with you on the credit card. I have a Walmart credit card that I use for my grocery pick ups. I turn around and pay it off out of our grocery money budget and I get reward points! I have gotten a lot of free stuff. I let the points accumulate and then shop for free 😊 my daughter is 26 and has no debt and no credit cards. I probably scared her toooo much of credit cards 🤣 she won’t get one! LOL great video!
I love the Baby Steps. But I agree with your differences of opinion to Dave. Personally, I no longer have a credit card because although I never carried a balance, I still find I spend less now. Also, our rewards system here in Australia isn’t nearly as lucrative as yours in the States. Also, our credit scores aren’t calculated like yours. You don’t have to have debt to have a good score because things like paying your utility bills on time count towards your score. Great video 💜
Wow. This video just made me feel a whole lot better. I went through his program several years ago with a church group. I could see where some of it was good, but there were things I didn't agree with. I ended up feeling bad because I thought the reason I didn't agree was because I had a rebellious spirit (I'm not a fan of feeling like I'm being told what to do.) I'm glad to get your take. It makes me feel more justified in my rebellion lol!
Years ago I gave each of my kids a Dave Ramsey book for Christmas. It was funny to see the different reactions! One had read it, one looked interested in reading it and another said, "You gave me a book??" I feel the same way you feel about credit cards and credit scores as well. But I think he is looking at the majority population and thinking it would be better to do away with them because they offer big temptations and can get people in a lot of financial trouble. I put every expense I can on a credit card each month and pay it off each month as well.
The general public (myself included) is woefully undereducated on the topic of finances. I ❤️ Dave. The only area I waffle on is the credit (debt) card/ score. I like ur idea of putting only one area of spending on one.
I'm a fan but still a believer in doing what is best for you and your family. So I like the core ideals and think that can help build your foundation. But at the end of the day I still do me with that built foundation. 😊
Great video. I think a lot of people are thinking the same thing about Dave Ramsey's program, but are too afraid to say it because he will call you stupid. It is his way or the highway. You have to know yourself and figure out what works best for you. If you are just starting out or have a spending problem, do it his way. If you are able to budget and have self control, adjust to meet your needs. It is more stressful to me to pay cash for gas when my Costco credit card gives me 4% cash back. I see that as actually wasting money.
I just got out of debt yesterday! I now have all 7 credit cards paid, my home is paid and my mustang is paid. I’m starting to save now. I’m just happy that I have my big ticket items paid. I’ve invested a little and I do have a retirement plan at work. I’m going to be 54 this month. My daughter lives out of State and is finished with college. I’m just being thankful right now!
Congratulations! Fantastic work! Keep it up!
Huge CONGRATULATIONS!!! That is truly amazing and inspiring. Good for you - you must feel AMAZING!!
Awesome! I did the opposite but it's working out. I focused on my 401K but I didn't start til 40. Im now 67 and have debt but have over $100k so its nice to know i could write a check for debt except house which is half paid off. Go after that 401K or Roth! They let you increase you deposits after 50 and it will drop your taxable income.. Time is your friend and we both started late. Better late than never!
Congratulations !!!
Way to go!!
Your thoughts of Dave Ramsey are the same as mine. One tweak on credit cards...if we put it on a credit card we immediately pay it off. If I don’t have the “cash” in the bank to pay off the credit card immediately, we don’t buy it. It was a psychological shift that I made in order to use credit cards wisely.
You are my Dave Ramsey.
When the pandemic hit, I found you through Jens channel. Then I realized the way you live was the way I mentally wanted to live I just had a few pieces missing. Now.. I do EVERYTHING you do that works for our family’s lifestyle. It feels like guidance I never received and there’s so many of us who lack this. THANK YOU CHRISTINE!!!! You have no idea. The impact you have made in my life in 2020 & now 2021 ❤️
I agree, I found this channel due to the pandemic’s extra time. I have been watching videos to save on food, and I think that’s probably the best impact. Still working on being consistent, but I have really appreciated this channel helping me think outside the box.
I am debt free including my house, thanks to the Dave Ramsey baby steps. I did modify them since I still own a credit card but I too use it for gas so I can earn free money back. I am 47 years old and it feels good to be able to breathe a little without debt hanging over me.
A lot of his tips are not what's smartest financially but what works psychologically. Like he says, if people knew what was smart most of them wouldn't be in such a huge mess in the first place. I take his baby steps as a rough guide and adjust it to my liking. 😊
I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
That is so amazing, I’m trying to get onto the investing ladder at 40. I wish at 55 I will be testifying to similar success..
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
Catherine Morrison Evans is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Benevolence, this reference seems valid.. Just inputted her full name on my browser and found her site without sweat, 20 years of experience is certainly striking! very much appreciate it
I think there’s definitely a generational difference in terms of cash vs. card. With my card, I can pull up my balance on my phone and see exactly what I’ve spent, but cash feels like free money that I don’t keep track of.
That's a great point! Sometimes I don't even know where that $20 in my wallet went!
I agree, I spend cash like there's no other, when it comes to my card I'm much less likely to swipe my card. For need to swipe that card it has to be a need or a strong want.
When I was in college I was a server in bartender and I would never spend my check but the cash tips that I got I couldn't tell you where the money went two hours later. for me it was more of a mental thing cuz I knew I was going to walk away from work every night with at least $$100 cash and I use that exclusively for fun.
See I'm the other way around. I spend way more swiping my card, and pay more attention to how much cash I have. So I think it depends on the person.
@@christineunfiltered same!
@@smallfamilysmallbudget1817 I agree with you. Swiping a card is the same as using a credit card to me and I don't have to constantly watch my account to keep track of what I have spent. Cash keeps me focused on how much I spend. It really does depends on the person.
I think that Dave Ramsey's baby steps are good for a particular type of person, but as an unmarried, childless 27 year old living in a major city, they don't all make sense for me. Also, re: credit cards, I put nearly everything on a cash rewards credit card, and then use the saved up cash for Christmas gifts at the end of the year. I also pay down my CC weekly and check it often so that I am never surprised by the balance. Paying it that often hurts in much the same way that cash out the door does.
At this point, the "no credit cards" bit is more about brand and marketing. I am sure that Dave recognizes that some people are perfectly okay with credit cards. However, since everyone thinks they are the exception, it is easier - and possibly more helpful overall - to go with the blanket statement to everyone. Better for the brand to say "No credit cards" than have a bunch of people saying "I tried Dave's 'Sometimes credit cards are okay' and it ruined my life."
I haven't had a credit card in more than 20 years, putting everything on my visa debit card instead, so I don't have a score anymore. I found myself in heavy debt due to credit cards back in the '90's and I swore that I'd never fall into that trap again.
That's exactly what I do! Pay them off 2-4 times a month. For me I treat them as a debit card now
I do the same. Credit cards can be great if used responsibility. I read this somewhere and it makes good sense to me: "credit cards are just deferred spending." It's not debt unless you can't pay it by the due date.
His big thing is also that you tend to spend more on credit cards, and that might be true, but as long as you can pay it off, it's probably not going to be much more than if you used cash only.
Also, I put some of my recurring monthly bills on autopay on different cards, and then I pay the card instead of the bill. This keeps them active so my credit doesn't take a hit from them being closed.
I’m a 21 year old fresh out of foster care and Dave Ramsey’s system has been incredible. I’ve followed it for 2-3 years. The math does work even for 2021 especially if you listen and read the current podcasts and books which do speak on current events and what to do. It’s a lifesaver and I do think everyone should use it.
I am so proud of you. You are going to go far and you are amazing.
Way to go Sierra. You have a lot on the ball! ❤️
Congratulations!!! Im so happy this worked for you
at your age with no other obligations its perfect.
Good job and keep it up. Your age has nothing to do with it, everyone needs to follow Dave's basic principles if not his plan exactly
My husband and I decided that our kids would need to pay for their own school. We did tell them they can live with us if they want to as long as they’re doing something like college or a trade school. We want to support them but we can’t afford college tuition on four kids.
Save for your own retirement first!!!!! Student loans suck but they exist. And college is not inevitable. Growing old is. Don't burden your children with wondering how they are going to support you in your old age. Do it yourself.
This is the exact same advice that my financial advisor gave me and it makes so much sense.
💯
My mom paid for my older siblings college before she paid for her retirement. Then I come a surprise baby at 45 and everything changed, she ended up with a college student at retirement age. I ended up paying for my own college completely.
and she got older and needed more help it was up to us and it created a lot of resentment. I was putting in a larger portion than my siblings were even though they are 20+ years older than I am and they got their college paid for.
you can't fund retirement while you're in retirement.
you can fund college while you're in college
@@TheMuirite I agree completely. It is a tough situation for family. My grandparents struggle to pay for both medicine and living expenses. My mother, and my siblings help as much as possible but it is hard even with so many helping. There's no resentment for us, but my grandmother feels like a complete burden because she needs our help now, when she had been so very independent throughout her life.
We didn't save for college and I so glad. One joined the military, one had no intention of going at all and the last one has a company that pays for it. I paid for my own college and it made me appreciate my grades. I think more kids need to know that their education is their responsibility.
Agree!
My parents believed us kids should pay our own way through college...
We applied for grants and got jobs.
Mine did as well!
If you can’t afford it then you shouldn’t pay for it however if you look at very poor first generation immigrants somehow fund their kids college and usually their kids end up succeeding well beyond their parents level because there is a respect for education snd it’s taught at a young age. Families where they can’t afford college yet give no guidance to their kids starting as babies about education and college, those are usually the people that graduate with debt way beyond what their degree would pay.
@@gunnikr My parents did not pay for college for me or my siblings. We got grants. We were dirt poor, but did not graduate with debt up to our noses.
There was no way my college education was going to be paid for me. We were struggling every month to make ends meet when I was growing up. I joined the Army when I turned 18. Served 8 years, then got out because I got married and we didn't want for us both to be Soldiers when we had kids. My service entitled me to a full college education, which I accomplished eventually. Where there is a will, there is a way!
Same here....and made a system: One semester no classes but worked full time. Next semester took 3 classes and worked part time. It took longer than 4 years but NO LOAN DEBIT!😁
One area I vehemently disagree with him- he says stop ALL investing until you're out of debt (except the house), even if you get an employer match. I think it's better to take longer to pay off your debts and contribute the amount required to get the maximum match. An employer match is FREE money that can really add up and compound over time, and I think it's foolish to leave free money on the table!
I agree 100%!!
You haven’t calculated risk with remaining in debt.
Completely agree also.
@@tisharodriguez9541 I understand. But in this case, I would find the small risk of staying in debt a little bit longer for free money in the form of an employer match to be acceptable trade off. We all have to find and follow our own comfort level with such things.
It all depends on how you manage your debt while you are paying it off. In my 20s, I had cc debt (I know - stupid). I consolidated it all on a 0% interest card and only had to pay the actual principal off. I should have been doing my employer match on my 401K to get that compound interest (way better return), but I didn't because I didn't understand $ and just followed Dave's advice (which is better for those who have Huge interest rates on their debt).
I lost a lot of years of compound interest, and you can never get those years back.
My parents did not pay for any of my college. The deal they gave me was living at home for free while in school. For tuition, I worked and earned scholarships or grants. My husband did the same. We are saving for our kids' college, but not to the extent that we are financially unsound. I don't think we will pay for all their college. Going to school is a priveledge they need to earn in part on their own. Plus, there are plenty of careers that don't involve an expensive degree that will support a good livlyhood so I wouldn'tond my child picking that path. Also, I sorta feel retirement is more important than my kids college because we can't go back and re-earn that money whereas my kids can attend/pay for college at least in part on their own. My parents have fully funded retirements and it is comforting knowing they are taken care of and my sister and I won't have to try and financially care for both our families.
I'm so greatful for they way my parent's handled tuition. They loaned me a small amount of money, 7k, which I worked to pay off as I was going through school. It was only after I graduated and worked my butt off to pay for nearly all of it during college, that they told me it was a gift and not a loan. The loan motivated me to get scholarships and work my way through. It was just living expenses in the last year that weren't covered. My course load was just too heavy for me to hold down a job at that point.
Going to school is a human right and should be free all over the world. If a country wants to have a good future it has to invest in education and health. Both have to be affordable for any citizen
@@ancabaias8535I agree. In France it's free. Even university. Except private schools. They're s so expensive in the US.
I came to the comments to say this... especially for someone over 40, saving for retirement is so much more important than saving for kids college funds. I would much rather retire at a reasonable time than have my kids go to college on my dime. I paid for my own college and my hubby is doing a paid apprentice and I think we both have learned a lot by doing this on our own. 🤷🏻♀️
Agree. Neither my parents nor my husband's paid for college for any of their children, and we will not be paying for ours either. They know this, they've always known this, and they'll have to earn their way via academic/music scholarships, their savings bonds from their uncles, by working a job, and loans. My late father always said, "They can get a loan for their education, but you can't get a loan for your retirement."
Christine, could you do a whole episode on how you score airline miles? All your tips, tricks, and tools would be GREATLY appreciate!
I agree with you. In Jan 2020, I realized that I was drowning in debt. I have been HARDCORE following Dave and am about 2 months away from being debt free! But, I am realizing (like you said) things aren't the way they used to be. If I don't have a credit score and decide to upgrade my home and need a small mortgage, they'll laugh in my face. I will continue to use my credit card responsibility
I’m so glad you’re addressing this. We have never been big Dave Ramsey fans in this household. I see the value in it as a beginner plan for people who are just starting out in personal finance. But we have always thought he throws the baby out with the bath water where credit and credit cards are concerned.
I don’t believe in paying for my kids college. However I do believe in helping them.
I just started the baby steps last month and your points are definitely interesting. Thank you for sharing and for your perspective! I'm just so glad to take charge of my finances & pay off my student loan debt!
He calls the $1000, A starter emergency fund. On his radio show, he was telling everyone at risk to stop paying off debt and stockpile savings.
Yes, he always says if you are facing any emergency, or a pregnancy, a job loss, anything like that, you temporarily stop paying off debt, and stockpile money. When the emergency is past, you reallocate that money.
Nah, but food. Hyperinflation is around the corner and the dollar will likely have no value in the near future.
@@traviswall1982 I'm confident inflation will rise, but not ridiculously in the US. Lucky for you, you have a sizeable economy, most of your closest partners are tied to your economy and would tank together with you, so in the end, you wouldn't feel hyperinflation as much as say Venezuela, who has to buy most overseas. I'm European, using the euro, so it's pretty similar, our internal market is big enough for inflation to be bearable, even if it increases. Heck, they are trying to increase inflation, here, because they are afraid of deflation even more (even with the German collective trauma of the Inter-War hyperinflation in Germany). Still, keeping money in a sock, or even a general bank account, is like watching it fade away slowly.
@@barvdw China has already started to lessen their hold on our treasuries and the only thing holding our Economy together is China letting us buy stuff with U.S. dollars. So the shipping containers come full of products, and leave empty. Our deficit is ridiculous since we are overregulated, thus we cannot make products here in the U.S.
If China sells all our treasuries at once, and no one else buys them, that leaves the FED, and everyone living in the U.S. in '08 knows how that ended with Fannie Mae and Freddie Mac.
We are toast.
@@traviswall1982 I'm not as worried, but we'll have to see. I am a stickler for diversification anyways.
Honestly I feel like Dave is a great place to start for people who are just starting and need a strong hand to guide them. The goal is to graduate from needing someone to guide you every step of the way to being able to wisely and confidently manage your money.
I've been doing the Dave Ramsey plan since August and I've gotten everything paid off except one consolidation loan and my mortgage. His books and podcast really opened my eyes to how frivolous I was being and how unprepared for the future I was.
We have four kids as well. Two college age and two in high school. Our oldest did two years of community college and then transferred. Our second oldest is on the same path. It is so much cheaper to get those general education classes out of the way at community college. Obviously, you have to make sure the credits will transfer. Also, our kids work to pay for college. We have money saved and are continuing to save to help them as needed, but our two oldest have paid so far with their own money. I also think they take their education more seriously if they are contributing to the cost.
Major Dave Ramsey Family here, To the point where my 6 year old will want something but ask if it is the budget first! We have done the steps for the first day of marriage and have never had a problem that we couldn’t tackle. Now a 10 years later we are o. House number two, with the first we had paid off in 4 years. We had NO credit score when we went to buy our second house!! I don’t agree with your idea on credit score just because 9 months ago we moved with no credit score. We came in with the total selling price of the first house and and put it towards the new loan. It spoke more than anything a credit score could have. It’s all about discipline. Credit cards to us are a “gotta have it now” mentality. As far as you thoughts on the emergency fund I agree. There are a lot of problems that are more inflated now but I think it’s more of the mentality to have a fund in place that you believe is right for you and then start the snowball. I think he says $1,000 because he understands the statistics and realizes $5,000 emergency fund is unobtainable to a lot. He wants you to start on the snowball as quickly as possible that is more than likely to happen when someone can save $1,000. Goes back to the mental win you were talking about.
He has addressed the $1000 emergency fund multiple times and said he still stands behind it for most people. Simply because it lights a fire under you to get your act together! Besides, most of these people didn’t have any savings and a pile of debt, so $1000 is already a massive improvement.
@@EmeryShae I completely agree! I think in his eyes a $1000 is more realistic to obtain and isn’t such a deterrent that people don’t even try. It is a kind boost for sure. On the other hand I can agree with Christine for what she says. If you can save a little more and you feel better than go for it. Then tackle the debt. I kinda go both ways on that!
There is no Dave-ISH!
@@SirenaSpades I agree with that. We have followed to the T and have passed MAJOR milestones. I specially for a 33 and 34 year old. We save cash for all projects or just don’t do things that seem fun that we don’t have the cash for. When I agreed with her in the saving thing, I don’t agree with putting money into savings ha and never start baby step two. I was just agreeing that if you have every intention, and $2,000 would make you feel better to go to baby step two, then do so. It’s all about starting!!
It’s like your reading my mind . We are in in the midst of Dave Ramsey BAby step 2 . Should be done with it in a few months . We are At the stage you guys were back in your first year . Since my husband is in education and I stay at home the struggles you had at the higher steps are totally relatable . I appreciate hearing your Thoughts. Your frugal tips are helping us tackle Baby step 2! Thanks Christine .
I have been *sort of* following Dave Ramsey since I got my first real job in 2018. I’m on the Save 15% For Retirement step, although I think between my required pension payments and trying to max out my Roth IRA, I’m doing more like 21% right now. It helps not to have any kids who need tuition 😂
I like the baby steps because they gave me a good starting direction when I didn’t know what my savings goals should look like, and I also like having a checklist of “steps” to work toward and mark off. The emergency fund and mini emergency fund have really helped me out through car repairs, moving, a career change and more. But I do find myself making a lot of alterations, and I definitely put the work in to maintain a good credit score.
Speaking of alterations, THANK YOU SO MUCH for this video. Hearing a balanced critique of the Baby Steps from someone whose advice I respect felt like I was being given permission. I think it is time to make some adjustments that otherwise would have brought me a lot of anxiety (like re-balancing my spending and saving priorities and just generally not feeling like I’m failing if I don’t follow the plan to the letter)
Love your channel! I go to the Dominican on a mission trip every year and I recognized the Monkey Jungle in your video. Love that place!
I'm in baby step 7 and can honestly say he changed our life. I do agree that he needs to revise for a new generation.
It worked for me, too. But it still makes sense for me. Since paychecks haven't risen, there's no need to increase anything.
I like Dave's plan and I'm on baby step 2. It has changed my life.
Thanks for your transparency! We didn't do all the steps in the order. We figured out what made sense and works for us. And we'll be debt free by September and will focus on tackling our mortgage.
We just paid off our school debt last week. I didn’t even realize I we’ve basically been following his baby steps! We just did what felt smart 😂😂 pretty comforting knowing we were in the same track as the most famous financial expert.
I definitely agree with the credit card thing though! I want some free travel myself.
What I realized is that even if I don't follow his program to a T, it educated me enough to make tweaks or changes in my finances that work for my life. "Teach a man to fish" kind of thing. Without that education, I would probably be worse off.
Found your other channel through your always pan review and this popped up. Love PF and LOVE your haircut.
Huge Dave Ramsey fan here.
I also listen to the Money Guy on TH-cam. They have a FOOO Financial Order of Operation.
Lots of great information.
We used the baby steps to get debt free and mortgage free.
Now we are stacking up retirement savings, cash savings, etc crazy fast.
We will retire early because Dave opened our eyes to "Debt is dumb. Cash is king. "
I listen to the Money Guy too. Dave Ramsey is for people in debt. It's a different program.
I’m a huge Dave fan! we are debt free and will have our house paid off this year! Then we will be able to invest soooo much money it’s insane!
@@SirenaSpades Only BS 1 & 2 are for people in debt. I like to refer to Dave’s approach as basic personal finance. It will get the job done, and it’s “challenging” enough that some people will never attempt it, while others will do really well with it even if they don’t advance to other approaches.
Dave Ramsey helped me get started with budgeting. After some time I made some changes to his plan. I began saving to my 401k plan again when some of the debt was paid off. I just didn't feel right about stopping it. I have a credit card with cash back rewards. Mostly buy groceries on it, and pay it off each paycheck.
Here in the UK, Credit Cards offer you additional cover if something is lost, stolen or damaged. If I buy a big item or make purchases online I always pay with my credit card and then immediately pay it off. Have just started the steps but adjusting them to work in the UK. Credit Scores are a big deal here and you can't get away without having one. Really enjoying your videos on this new channel.
He has no problem with setting pause if life issues arise...i have had to do Dave-ish...but he changed my life for the better
I cracked open my Diet Coke right before you opened your DP. 😉 I just finished Kimmy's video on building your food storage through caselot sales. Now watching your financial advice. So glad for ladies like you who are helping so many people. Such valuable info for these times. 🤗
Love your edits to the plan since I did customize DR plan too (very similarly to you too!) Bc it needs updating.
side note for those interested in Ramsey's plan: Baby step 4, 5, and 6 happen at the same time 😁 (fully vested in retirement, saving for kid's college while paying off the house. ) U Don't go 'gazelle intense' on those final three 🥰
I am a Dave Ramsey fan. I did go through financial peace University, and do agree with most of his principles. That being said, I think a little update is necessary to his program. Thank you so much for making this video. I loved it!
I loved what you shared. I'm working on being more disciplined with my budget, for like the bizzillianth time but I refuse to give up, 😇
I just finished Financial Peace last week. I love your take on having a larger emergency fund and using credit cards for the perks. I'm definitely saving money by eating at home and bringing my coffee to work.
For me, I am about to follow Dave's program to a T! The reason I say this so emphatically is most people who challenge this steps are missing a huge thing... RISK. You did touch on this when discussing why you feel the baby emergency fund is too low, but then totally dis regard it when talking about credit cards and debt. I have had a hell of a roller coaster ride since 9/19, including a car accident, cheating spouse, and a business collapse so I have had it hammered home how risk is a huge part of life
I started out doing the Dave Ramsey method, and made it to debt free. Depression does weird things, so even though I knew the steps and how to be disciplined, I spent myself into debt again. I think that not only do you need to take control of your finances, but also figure out underlying causes for your "normal" spending habits that are easy to fall back into if not addressed.
I'm single, and the accountability partner that he recommends wasn't really something I did, as discussing my finances with my parents or friends isn't really part of my personality. I do think parts of his program need updating with figures more in line with today's needs. I am currently mixing his steps with YNAB, so that
So that I have a bigger emergency fund and am actually saving for things I know I'll need (like a rear brake job) while also paying off debt. This helps me get accustomed to planning out purchases so I don't end up using the emergency fund or putting it on a credit card.
I firmly believe that credit cards are for online use, helping to keep your checking and savings accounts safer from the various ways that hackers and identify thieves get your information.
@@dragonsgrrrl I completely agree. Credit cards are for your protection only. Online purchases and gas stations where hackers have been known to steal so frequently. Make sure you don't spend on them more than the budget already has accounted for, and pay them off at the end of the month. I use a very high interest online checking account and get a great return each month instead of credit card points (I'm talking consistent rates that rival the stock market -way more than the measly
After the screwup I made with my first credit card, and my grandmother having to bail me out of the credit swamp I had mired myself in, I vowed never to have a credit card again. It's a relief to pay things outright as I have the money and to always make sure I budget enough for necessities
I’m binge-watching Dave Ramsey. I think he’s right to not change the baby steps. I guess if we knew how to manage our money we wouldn’t be in debt.
Agree.
Most people don't realize a person will never be out of debt because there is always an upcoming bill. A person is only on time or ahead of their debit. Example twice a year there will always be a property tax bill if you bought a home. Example #2 you will never know how much your income tax bill will be until after the year ends. You only have an educated estimate if your income, investment profits and tax laws had no changes.
@@sherlynpatterson4304 YNAB
I paid for the Dave Ramsey program this year. However, I think you're right about the emergency fund amount. I will be moving into another apartment next year, and I've found that I do need to maintain my credit score in order to rent from anyone! I am adjusting the program to meet my needs now.
You're more disciplined than most people who don't have any self control.
that’s because she knows what she wants and she goes and gets it
I agree you are incredibly motivated /disciplined
Yes, so many people say ‘How do I stop my self spending money?’ Self discipline is THE only answer. No one can help if you don’t use self control.
Hiii
I found you because I’m following Dave Ramsey program. I’m on baby step 3. And actually loved what you said about the emergency fund. I think a month of expenses is really more realistic than $1000 dollars today.
I live in California and I’m single mom. A thousand dollars here it does not cover my gas hahahhaha
Loving your channel
Love him and his plan. However, I needed a little more so I followed The Budget Mom and working her plan. And last year with the two plans I was able to pay off 11k even with my hours cut in half.
I always thought it was weird that Dave offered basic information on how people could get out of debt, but he made them pay for the program.
To be fair, you don't really need the program (or his books) at this point. Listen to five of his episodes and Google his baby steps and that's all the knowledge you need. The rest is just for motivation or for people that are completely financially illiterate
The paying also gives a psychological ownership to the program.
You don't need the course, everything on youtube. Also,why not chsrge for the course? He came up with a method ,spent time marketing it, why not profit from those who want the extra motivation? Also he gives it away for free almost daily it seems to certain callers.
Paying for it puts some “skin in the game”. It makes people be more serious about it. Also, he came up with his method, from a business perspective why would he give it away for free?
Every dollar is free the podcast is free, and the Baby Steps Millionaire Audio Book is free on podcast apps,
I agree with you and I only look at him as a guide. Basically when he starts paying my bills I will listen to him 100 percent.
I think Dave’s program is simple and a great teaching tool for people who really need help figuring out what a budget is and for helping people in difficult situations to have a way out. However I completely agree with your added methods. I have used credit cards for years for points and rewards and pay them off every month. I save points now for new tires. Years ago I would take out new cards with 0% interest for a few months and transfer debt from card to card and pay off a remodel project quickly with very little interest. Work the system as much as possible because the system is designed to work you. Love your videos 😊❤️
I love the approach by The Budget Mom instead....makes you enjoy life as you save!
I agree with your updates! But really I left Ramsey and use The Budget Moms method
My fave! Lunch with Christine again today. I used Dave Ramsey to crawl out of 50 grand of divorce debt. The credit score has always been a sticking point for me also. I use my Discover for the cash back bonus. Super disciplined with it. It helps my credit score since my house is already paid for.
Great video! I've been Dave-ish for about 7 years now. It has helped me a lot but I agree that you should do what works best for you and your family. I want my kids to have some skin in the game when it comes to college. I like the idea of using credit cards for discounts and miles. Also, house interest rates are super low.
I couldn't agree more! I use credit cards, have an emergency fun, and I am trying to pay off the house! I want to invest more, but were in the same boat as you were. We are investing 15%, but we could be doing more, but don't make enough to do that! So were splitting between house, and investing. Thank you for your insight!
Cute sweater and the inserts were pretty cute too. I don't comment often (on other channel) but IMO you did a great job explaining everything. I was curious as to where you stood on the Ramsey plan. I think he has some great ideas but differ on a few. We were debt free (including house) before I retired in 2010 at the age of 55 (with a full pension) before I even knew about Dave Ramsey. The pandemic made everything strange. Shoot - at one point stores weren't taken cash! Have a wonderful week.
10000% agree with you here. Currently working the baby steps and would never dream of not having a great credit score. As someone who works in finance I can confirm companies definitely look at your score and report during the hiring process.
You have awesome tips-thank you for your channel! I am a big Dave Ramsey fan. I like your tweeks but I definitely could not have handled a credit card 10 years ago like I can now. It can be very hard to control spending with it, as you mentioned. One safety measure for it could be having a baby-step minimum to go along with credit card usage just to be sure you have the funds in the bank to pay it off :) .
I agree Christine; Dave Ramsey does have a great program, but I also believe you have to 'Play the Game' with regards to your credit score. You have to use the 'Tools' provided to get ahead and grow and have an enjoyable live at the same time. Thanks for your videos - very motivating!
I do like Dave Ramsey’s book and system. You seem to have a lot of self control regarding money and I can only speak for myself but I need help to stay on track and his book saved my financial life and I was able to start my own business and quit my thankless job. Your channel is very informative and much needed. I would guess but do not know that like me if people are in financial trouble and able to pay off debt and save any money $1000 is a huge deal and then once I was on a roll was able to save much more than the $1000. I love your channel and I love Dave Ramsey he has helped a lot of people.
I think it is best to read his book to understand the steps and then watch/listen the radio show everyday (it’s on TH-cam every afternoon). On the show, he has addressed changes to the steps due to the pandemic 😷
I love Dave Ramsey, he has helped so many people overcome their debt and to remove the weight of that debt from their lives. I think as far as tweaking it would depend on if you can handle having a credit card or whatever else you'd like to change. We use credit cards and are debt free and own our home out right and are retired living our dream.
Great advice! I agree with you that Dave has a great foundation if you don’t know where to start or if you have trouble with managing money. I do agree that some steps need a little tweaking and also that if you’re investing/ paying off your mortgage/ saving for college all at the same time, that’s great too. Also I personally think giving back can be done at the same time, if you’re able to. Thanks for you clear and thorough advice.
Thank you for discussing such a relevant topic! I think his plan is great when you don't know where to start, with baby steps. We have used his advice as a guide and tailored "steps 4,5,6" to our family situation and goals. We were also able to make adjustments for 2020. Everyone should use their best judgement when following advice but, having a guide and setting goals is helpful. Thanks for great advice!
I agree with the credit card points. My wife and I do the same thing to travel for free. Also, good point about the paying off your mortgage. I haven’t bought a home yet. But we’re looking to buy a duplex and rent the other out. Dave’s system is great for the vast majority. However, you can make changes that will ultimately make it better
Thanks for the video! It made me check the steps and I realized we just got to Baby Step 6 on the 1st! I think the overall premise of the baby steps is smart and I did them with some personal tweaks. I definitely needed the guidance so DR is appreciated in this house
Great job!
I do like Dave's advice (work in progress for us!). Agree with changes!! Great info.
I used the program to get out of debt and start saving. I followed the program aside from the credit card usage. I just made sure to stick to my budget and pay off my card completely at least twice a month. It worked great for me! I'm with you on the credit score though. It's hard to get around without having one, and the cards are much easier (and sanitary) to carry and use.
My name is Aimee...I went to a Dave Ramsey class through my church once as a couple~getting out of the Military, once as Parents bringing our daughter, & we have 2 more kids. :) In October, we paid off 3 of our houses, & sold one of them! It was extremely hard living paycheck to paycheck, & we invested our money in houses way before we heard about Dave...so we dealt with hard knocks. Dave has a pretty good program! I am gonna give him 2 Thumbs Up!!
LOVE Dave Ramsey. We've paid off 60k (not the house) since December 2017. Long way to go, but his program has been a lifesaver for us.
I appreciate the common sense advice of Dave Ramsey. Although in practice the baby steps might be difficult, it’s simple. I think Dave gave us a good foundation to adapt from.
My family started DR a year ago. We’ve paid of $35k of debt. We have $4500 left. It’s helped us tremendously. I don’t like how he talks, I think he’s kind of an ass and incredibly old fashioned and behind the times, but I didn’t realize how we needed to be more responsible with money until we listened to his callers.
Love Dave Ramsey but also completely agree with you Christine. My husband and I did financial peace university when we were dating and have always been debt free. However, 7 years later and wanting to a buy a house the only mortgage company that will work with us is offering a significantly higher interest rate than friends with good credit received from other lenders. So now at 27 & 30 years old we just opened our first credit card to start playing the credit game😔
I basically agree with you on everything. We have to rent a car when we visit family because they don’t have a big enough car. I’m not going to waste my time hunting for a company that takes debit. I just want to get to my destination. We also move a lot and it costs so much to not have a credit score. Utilities, cell phones, renting, etc. all look at credit score now. Some won’t even accept an application no matter how much cash you have.
I agree the $1k baby emergency fund advice is antiquated. I understand the idea that it's supposed to be a small amount that won't cover everything so you get that tush in gear, but $1k when he first taught it 20 or 25 years ago is not the same as $1k now! I think it should be more like $2500 or so.
Totally agree with your 2 no no's of Daves. My husband and myself have completed all the step and we have credit cards and I do like that I still have a good credit score even thought I don't use it anymore.
I agree with the issues around step 4- we're in the same boat. I agree with the credit cards too- I have to pay to use my debit card but I get paid to use my credit card so it makes more sense.
Dave knows the $1000.00 is low. He said it to have a some to help you but it also to motivate you to get out of debt sooner.
Just started Dave's plan (for the 3rd time) and qualify as an "ish". Definitely agree with you! One more thing im waiting til I'm more successful til I call in to debate is that I have driven a Mercedes Benz or BMW for years BUT I buy the "fleece" when it's turned in and put 50% down. 1) it's already depreciated 2) with 50% down you're never upside down and can get out of it 3) my payments are rarely over $250 and 4) I NEVER HAVE TO DRIVE A HOOPTIE. You need an emergency fund or an extended warranty but with current interest rates it's not too expensive and you can usually sell it to cover most of the 50% on your next car.
I will say that the debt snowball doesn't work when you just have one debt. We have one debt, our car and our finances are basically zeroed out, it's really hard to knock out that debt. We jumped ahead and bought a house 12 months ago and I'm so glad we did. Right now due to utah housing market we couldn't afford to buy our house today and paying the rent increase would be $500 more than our house payment. We live on a zero based budget and it's tight but we are hopeful for the future. We are doing all the right things there just isn't much wiggle room which can feel demoralising.
2020 was a whacky year... I'm 23 years old and I was supposed to get married surrounded by family, but instead took those deposit refunds and extra savings from not going anywhere and decided to buy a house. We actually had our offer accepted on what should've been our wedding day.
Our interest rate is 2.625% and even the bank was shocked by how low it was, and told us we would virtually never have to consider refinancing because rates are currently the lowest they've ever seen. Our financial goals were shifted out of order thanks to the pandemic but we're so grateful to be living on our own sooner than we'd expected.
I’m currently doing the baby steps. We’re on step 2 right now. Love Dave Ramsey
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Great information I’m glad to found your new channel.
First of all, I love Dr. Pepper so you have gained a fan from just that.
Second, I'm a bid Dave Ramsey fan. Enough so that I got training from Ramsey Solutions to become a financial coach. I certainly see the somewhat outdated nature of some of the numbers. And I certainly see the argument for using credit cards if you can pay it off every month. My wife and I personally don't use credit cards. And we got our mortgage from a company that does manual underwriting. But I won't judge people for their decisions with their finances. I personally think that DR isn't for everyone, but I like the simplicity of his system and the fact that he's got a long track record of helping people.
Great video and I'll look forward to more videos!
The best thing about Dave Ramsey is that he works with people how they are. The obvious example is how he advocates for debt snowball instead of debt avalanche method. Avalanche makes more mathematical sense but humans aren't robots and it turns out that since snowball creates more motivation, it actually works faster. I agree that there can be reasons to deviate from the exact baby steps if you want to really do some research and understand slightly more complicated concepts, but the baby steps are great for people who are overwhelmed or just don't want to have to think about it. Christine is obviously a smarter than average person, but not everyone wants to or can think about the more complicated aspects of personal finance. I like how Dave Ramsey talks about financial dignity as something everyone deserves, and I think his system is a good balance between being simple enough for everyone to follow and working pretty well in every economy.
Well said!
@@christineunfiltered Thank you! ❤️ I'm loving the variety on this channel!
I so agree with you and the credit card usage! I get 2% cash back so I use my credit card for everything. I pay it off every month.
At the end of the year that reward is my Christmas money.
Dave Ramsey might be "wrong" about some things, but the people who are need of his help are even "wrong-er".
YES❤
I like Dave Ramsey’s as a beginner plan to taking control of your finances without overwhelming yourself. Specially if you are entirely new to it.
However, I agree with you that once you have control over your finances you should reassess the emergency fund amount for your family, credit card control and depending on your situation investing vs paying off a mortgage.
I’ve tried to listen to his radio program and I can’t stand his tone with people calling in for advice making them sound stupid when he had to file bankruptcy himself and he is also making a lot of money from those who are trying to get out of debt.
I agree with this 💯
I totally agree, the system is a good base point to work from. Daves attitude is awful!!
He does come across very harsh at times. That is part of his brand. He is trying to get people to change bad habits, overnight, cold-turkey. A lot of people need the "drill sergeant" type coach when doing that.
I listen to his youtube channel sometimes. His tone is hard at times, when he's that way I just click off of that. I don't think he tries to make people sound stupid. He doesn't hide the fact he filed bankruptcy. Yes he is making money from those people but it's no different than giving the money to another person for advice, just saying. I like him and what he stands for.
So the fact that he had a bankruptcy and then built his way up to a millionaire should be more motivating. He knows stupid because he’s been there. People don’t like to hear the truth
I’ve used some of Dave Ramsey tips but I’m with you on the credit card. I have a Walmart credit card that I use for my grocery pick ups. I turn around and pay it off out of our grocery money budget and I get reward points! I have gotten a lot of free stuff. I let the points accumulate and then shop for free 😊 my daughter is 26 and has no debt and no credit cards. I probably scared her toooo much of credit cards 🤣 she won’t get one! LOL great video!
I love the Baby Steps. But I agree with your differences of opinion to Dave. Personally, I no longer have a credit card because although I never carried a balance, I still find I spend less now. Also, our rewards system here in Australia isn’t nearly as lucrative as yours in the States. Also, our credit scores aren’t calculated like yours. You don’t have to have debt to have a good score because things like paying your utility bills on time count towards your score. Great video 💜
Wow. This video just made me feel a whole lot better. I went through his program several years ago with a church group. I could see where some of it was good, but there were things I didn't agree with. I ended up feeling bad because I thought the reason I didn't agree was because I had a rebellious spirit (I'm not a fan of feeling like I'm being told what to do.) I'm glad to get your take. It makes me feel more justified in my rebellion lol!
Christine nails it again! Wonderful advise.
Years ago I gave each of my kids a Dave Ramsey book for Christmas. It was funny to see the different reactions! One had read it, one looked interested in reading it and another said, "You gave me a book??" I feel the same way you feel about credit cards and credit scores as well. But I think he is looking at the majority population and thinking it would be better to do away with them because they offer big temptations and can get people in a lot of financial trouble. I put every expense I can on a credit card each month and pay it off each month as well.
The general public (myself included) is woefully undereducated on the topic of finances. I ❤️ Dave. The only area I waffle on is the credit (debt) card/ score. I like ur idea of putting only one area of spending on one.
I'm a fan but still a believer in doing what is best for you and your family. So I like the core ideals and think that can help build your foundation. But at the end of the day I still do me with that built foundation. 😊
Great video. I think a lot of people are thinking the same thing about Dave Ramsey's program, but are too afraid to say it because he will call you stupid. It is his way or the highway. You have to know yourself and figure out what works best for you. If you are just starting out or have a spending problem, do it his way. If you are able to budget and have self control, adjust to meet your needs. It is more stressful to me to pay cash for gas when my Costco credit card gives me 4% cash back. I see that as actually wasting money.