Why I Don't Follow Dave Ramsey Anymore
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- เผยแพร่เมื่อ 11 ก.ย. 2024
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Why I Don't Follow Dave Ramsey Anymore
Today I'm sharing why I don't follow Dave Ramsey anymore....
I learned about Dave Ramsey about 5 years ago, it was actually an old mentor of mine that introduced me to him, she was moving and gave me her workbook and DVD series from YEARS prior.
At this time I was living paycheck to paycheck, most months I was in the red but I didn’t know how in the red I was because I wasn’t tracking my spending. My student loans were in default and I was just a mess financially. Most of my friends were doing really fun things, going out to eat a lot, camping, and Disney trips. I was embarrassed and tried to live that same lifestyle.
When I found Dave Ramsey, I went HARD. 100% all-in. He is the one that taught me how to budget, how to pay off debt and get right with my money.
Now that I am debt free I’ve learned how to manage our money and I’ve also learned other forms of budgeting and ways to build wealth.
Am I at the point of saying Cancel Dave Ramsey? We shall find out!
I followed Dave Ramsey for several years, I’ve been to his studio, I’ve met him twice but today we are talking about why I don’t follow Dave Ramsey anymore!
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I am not a financial advisor. The ideas presented in this video are personal opinions and for entertainment purposes only.
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After receiving many comments, this video came across harsher than I intended. I created a follow-up video where I dug in a little deeper as to why I feel this way about the Dave Ramsey Plan as well as gave my PROS to the plan. Check out the video here: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
I don’t think you came across too harsh at all. Money management is not a one size fits all and people need to understand that. Many people have followed Dave’s plan exactly and have had great success so good for them but others have not. It’s ok to take bits and pieces from multiple ideas of financial “gurus”. The point is making the plan work for YOUR own finances. I think this was a great video and I would advise the viewers to pick and choose what will work for them just like I did with Dave.
You are bad at money and trying to blame ramsey because you have no discipline...
Also i think something is wrong with that credit score my husband and I have been debt free for some years now no debt what so ever thanks to God and the credit scores we did have ( excellent ones) have stayed put ... but again you can always underwritr
@Josalind watch my other videos before determining if I'm bad at money or not. I cash flowed my wedding, dream car and Alaskan Cruise Vacation since becoming debt free. I can have a different opinion than Dave and still win with money.
@Ashley Thank you so much! That is SO true!!
Dave caters to those who are bad with money. They have to be very strict, or they will get in trouble again. I think once you are disciplined in your spending and savings habit you no longer need Dave
Very True! Brad Finn describes Dave as like an undergraduate degree and FIRE as the Masters degree!
I featured your comment in my follow up video! I'd love for you to check it out and let me know your thoughts! th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
@@freedominabudget I definitely will! Love the content.
Agreed
That’s why my great grandfather who lived during the Great Depression lived everything Dave preaches but way before Dave and was a multi millionaire as a school teacher.
I think everything you said makes sense practically and makes sense mathematically. The issue is human nature. What I love about Dave Ramsey is he prioritizes behavior, not the numbers. Cause at the end of the day, it does not matter how much sense a plan makes if it doesn't get the fire burning in people's hearts.
Yes!
Agreed. 👍👍
Perfectly put!
YESSS
@@NathanLabish I don't think you know how "quotes work."
Great stocks and I just bought in on them, but I'm interested in making short term profit, let say turn a $150K to $500k in 6months, I'd appreciate tips on how what stocks to buy to make this much profit.
@maria sandra That sounds great and how do i connect with her ?
@maria sandra Okay i just found her website and left a message for her. thanks.
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Triple your money in 6 months? You need to take on a large amount of risk to do that, do ALOT of research
@@Zachery_ This is a scam. Same person, two accounts.
I had 10k in credit card debt and because of dave he has motivated me to pay them off dave has changed my life
That's awesome!!! Have you watched my follow up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Me too!
Jeez she never said Dave was WRONG she just modified his baby steps for what she found worked for her. I totally agree with her advice! Stop being so sensitive.
@@teekaybe4016 They're Christian followers. They BLINDLY believe anything their gods say so stop trying to reason with them. Let the wolf lead them to the slaughter house
@@kwamebushman606 I feel so bad for you Bush man. You must be ugly and lonely bc just look at how you stated your point. That's a very mean and hurtful thing to say about others when you don't even know that. If you're angry please seek help otherwise you'll suffer being lonely for the rest of your life.
The 1000 dollar emergency fund isn't all that he says to have it's just an early step. He says to have 3-6 months of an emergency fund.
Right but what about the people that have high amounts of debt and won't be in baby step 3 for several years?
@@freedominabudget I think he'd say get another job if you can or just wait until it's paid off.
@@freedominabudget The 1k starter emerg fund is there for you while you are in BS 2.... paying off the debt.... It helps to keep you from sliding back into old habits - i.e. using the Credit card - spending money you don't yet have - i.e. borrowing against your future income. I've been working BS 2 since January 2020 - a few times Murphy came to visit - and each time - that 1k emerg fund was my saving grace......... DR is more than just getting rid of debt and dumping the debt score - it is about changing your habits which got you into DEBT in the first place..... Living beyond your means = LIVING /SPENDING WITHOUT A BUDGET......
@@queenb9572
You are quite fortunate to have had 3 "emergencies" that were each less than $1k. In 2020, almost any income-preventing emergency (like a broken-down car, or *any* injury requiring medical services) will be 2-3 times that.
I totally agree with the $1000 is gets you in gear .. plus you can stop the snowball !! His plan works
I followed Dave's advice and got debt-free in 2011 and have remained that way ever since. I'm not a loyal sycophant 100%, but my behaviors are what got me there. Behavior is most of the battle.
I continued to invest during the Pandemic and paying off my old credit card debt, I got a 50% return on my investment over a year and I just became debt free last week. 🙂
Wooohoooo!! Awesome job!!
@@freedominabudget Thank you. 🤗
Been following Dave Ramsey for over 2 years. I don’t regret one thing he’s told me to do.
Have you watched my follow up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Kelly Anne Smith - Freedom In A Budget I haven’t watched it yet 👍🏼
I'm sure he's loving it too. He's making money with his nonsense. NOTHING Cost less than 1000 in emergency. I worked for an agency who holds his policy. He's making $$ but not much sense.
Happiness On Purpose the $1000 emergency fund isn’t all he suggests to keep in an emergency fund. After you pay off your debt in baby step two, then you build that emergency fund up to 3-6 months. I’m doing exactly what he says and I’ve had zero problems financially. I’m on track to be an EDM and I’m not stopping with the baby steps.
I regret a few things. I live frugally thanks to Dave Ramsey but his other advise is so out dated. Dave went broke doing 90 day loans decades ago. Thats is the dumbest/riskiest thing anyone could do and he never tells people how he went broke the first time.. ill keep using my credit cards and paying them off each month while having an awesome credit score.
1. $1000 emergency fund is a starting point. You're going to need to add to that. He actually teaches 3-6 months of household expenses.
2. If you're in debt really bad,you're too broke to invest.
3. He teaches that you do steps 3-7 simultaneously.
4. I suggest investing in gold and real estate. Most 401ks are in mutual funds.
Yes, Dave teaches $1,000 for baby step 1 and then baby step 3 is 3-6 months of expenses, this shouldn't take years to save. What I was referring to in this video is this isn't one size fits all like he states, what about the doctors and lawyers that have over 6 figures worth or student loan debt. For them it would make more sense to have baby step 1 be one month's worth of expenses rather than $1,000. That is what I personally recommend for people to do. Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
We are really getting dumb. To be successful, you simply need to spend significantly below your means while you significantly and aggressively increase your income, invest the leftover and you will be financially independent before the age of 40 if you start very early.
Have you watched my follow up video? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Yup, worked minimum wage and was able to save up enough in the span of 10 months for a car + a years worth of living without having to work. People just don't have discipline nowadays. But look around, almost everyone doesnt even take care of their own bodies. Can't expect them to take care of their bank accounts either. I dislike almost everything Dave Ramsey preaches but one thing I do agree with is "Be weird or be broke".
I agree
I lived in my parents house till I was 70 and bought 900 properties
@@sideshow00 let me guess you live with you parents or roommates....
Dave doesn't believe in having a credit score of 0 he believes in having a credit score that is undeterminable meaning that you haven't had credit in the last 2 years which you can then get manual underwriting and you can still get a decent interest rate. The only problem some people encounter with this method is they have to be a little more selective with which banks they get loans from because not all banks will do the manual underwriting.
getting to undeterminable often means your credit is dropping, so if you have to do something while you are on the road to undeterminable with credit then they pull it and it shows you have a poor score - reality is you need a 0 (or non existing score) or a really good score - that gray space in between just costs you
You guys in the comments section taught me a lot about what I didn't understand with credit scores and I made a follow up video: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html Thank you for watching!
FICA scores are a joke. All you have to do is watch your net worth go up, with less borrowing, and your FICA score going down. I think its rigged to try and keep you in debt, which I admit is a very good business model for lenders.
@@ralphholiman7401
I mean.. If you don't know that it's FICO (rather than FICA), I feel safe in assuming you're not actually an expert in this.
@@freedominabudget
Good video and you have an open, inquisitive mind. Worth a sub.
I got a home mortgage without a credit score! I actually got it through church hill mortgage! You can get a mortgage that is fully underwritten with manual underwriting!
That is good to hear. I have closed all my credit cards and just became debit free on May 10 but I am concerned about getting a mortgage when we get there. I am thinking that Churchill certified preapproval is the way we are going.
I got a quote from Churchhill mortgage, but then I checked with some other local lenders, and told them to check with their superiors about doing manual underwriting, after they told me that they couldn’t do it. And they came back and gave me an even better rate then Churchhill mortgage. So even if people say you can’t do things, push them and they will discover that they can do things that they’ve never done before. Dave’s plan works 100%! It’s all about intentionality and motivation. If you don’t have a fire under your buns, you will never build the wealth that you will need to truly help others.
Put it in context, please! When you are in debt it is a 1,000 dollar emergency fund. it is intended to push you forward to get out of debt faster. Then you are supposed to have 3 to 6 months.
Thank you for watching! :)
Exactly and if you followed Dave Ramsey's for so long you would have known that. Instead you are putting out a misleading information
I think it's easy to forget that coming from a place of financial illiteracy, $1000 is an attainable goal that can provide a life-changing confidence boost. I could not cash flow an emergency that was less than a $1000 before I started my financial journey. Saving up a month's expenses right off the bat would have been an overwhelming goal at my income. Saving that first $1000 then tackling my debt is what gave me the momentum to start the real emergency fund.
Have you watched my follow up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
and thats just it !! he says it so many times !! people know what to do its getting them to do it !!
Start off by 1000 and now you're on a roll for more !!
Like he says your supposed to feel the squeeze of only having that $1000 so that you get gazelle intense to get out of debt. Once your done with baby step two you bump it up to three to six months of expenses.
@@Blindy_The_Bat Exactly. And people obviously have to be halfway intelligent about it. If you live in an expensive area like Cali, New York, parts of Texas, Seattle, Denver whatever and your rent / mortgage is 2-4-8k dollars a month and like in Cali gas is 4-5 dollars a gallon then yeah $1,000 probably isn't gonna be enough for you, but you're also probably making over the average national wage because you live in a place that's expensive. So you may be making 50k-100k a year. But on the same note there's people that live in the South like Dave does, lets says Kentucky for example in the middle of no where you can rent a double wide for 300-400 a month, gas is usually cheap, groceries are usually cheap. So 1k dollars for that person is probably a lot of money to them and will work just fine for an emergency.
But really that emergency fund is more for if you get a flat tire, or you have car troubles, or if you have to pay your car insurance copay or your health insurance copay or something. It's not really to protect you from getting laid off or having a major wage cut or something. That's what unemployment is for and stuff like food stamps or whatever.
Most people have zero emergency fund, getting that first $1,000 leads to another and another! 👍👍
Dave’s advice is gold to people with no self control. For average Joe, do it your way.
If you’re average you’re broke
@@BridgeStamford No. that’s the concept dave try to sell you. Most average folks are just OK. Remember, the bottom line is that Dave is a businessman.
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
@WorldFlex where do people like you pluck percentages like that 🤣🤣🤣
@@nicolathonathan770 so all the debt is just a concept?
Dave Ramsey has said in the past stoping your 401k depends on how long it will take to pay off debt. After 5 years he starts to get nervous. The idea is that stopping contributions to the 401k is suppose to make you uncomfortable and encourage you to pay off your debt faster. Same with the 1,000 emergency fund it’s suppose to make you nervous. Dave Ramsey’s third babystep after paying off debt is to save 3-6 months of expenses.
Makes sense! Have you watched my Dave Ramsey Pros and Cons video? Here is the link if you'd like to watch it! th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
100%
Exactly I am 2:48 in and cannot watch more. Her ‘advice’ seems more reactionary and immature.
Now I don’t love everything about Dave as a person, but I think his plan is pretty rock solid with an extremely solid foundation.
@@lijohnyoutube101 this woman should be be allowed to give financial advice.
@@toeknee5565 Yep agreed, just in the same that I can feel that her mindset is more immature.
Dave got me on the right track, but I did tweak it a lil
Watch my follow up video The Pros and Cons of Dave Ramsey th-cam.com/video/KFRJtFRKeIM/w-d-xo.html for a deeper dive into the reasons WHY I don't agree with Dave. As always this is my personal journey and just sharing why I stopped following Dave Ramsey. I still contribute paying off all my debt and getting me on the right financial path to Dave. :) Thank you for watching!
Ok. I see what’s goin on. 😂😅😅
Followed Dave. He changed our mindset. Debt free for 10 years, emergency of 1 year expenses. I am grateful for Him.
That's awesome! Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
The truth is that whenever we borrow money to buy anything, by definition we cannot afforded period. The problem now days is that we are spoiled & want what we want & we wanted now because we rationalize that we deserve it. The truth is We only deserve what we earn first. Debt adds risk & it turns us into a slaves, you are only postponing paying it plus interest later. When we have no debt we remove financial stress & a larger portion of our income can go to buying assets & growing our wealth.
Have you watched my follow up video? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Yeah, I have no car and a cheap phone and everyone thinks I'm poor, but I have a lot more than 1k in savings and investments, so I'm most likely better off than a lot of the people paying off their cars and phones.
Wrong. If you want a $30k car you’re supposed to just buy it? Finance it. Down payment some. Invest the rest. You’ll be up ahead. Otherwise you’ll buy the car outright and lose money to depreciation. If you have a million in the bank, buying a $50k car outright would still be the wrong move.
@@tipsy09 - You can save for a good used car while investing. It doesn't have to be one or the other. Also, if you're worried about losing money to depreciation, you probably cannot afford the car anyways. Under those circumstances, buy something cheaper.
Once again, someone criticizes the $1000 emergency fund in BS1 saying that it is insufficient, and completely misses the point.
Why does Dave recommend $1000? Because its a nice round number to shoot for and will cause most people in debt to have make the behavioral changes and sacrifices necessary to accomplish BS2 (paying off all debt except mortgages) & BS3 (establishing a full 3-6 month emergency fund). If one can't make these changes to save $1000, then how are they going to save the money needed for those larger commitments? Its about mindset, not math.
Very interesting point!! Thank you for watching!! ☺️
I completely agree with everything you said. I followed his guidelines at arms length. I used the debt snowball, and it really helped me focus on paying off debt. I did not cut up my credit cards after. I have 3 air conditioners on my house that are 16 years old. $1K isn't going to do a thing if one goes out. I still went out to eat, and I took one vacation while paying off debt. I still contributed 10% to my employer matched 401K. It took me 23 months to clear my debt, and I'm satisfied with my focused approach. Your alcohol analogy is spot on, and I think that is really who he is preaching too.
Yes, the $1000 is not your *real* emergency fund, thats actually 3-6 months of expenses (actually baby step 3!)...it's just to get you started being *serious*!
Have you watched my follow up video? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
I credit Dave Ramsey's 7 Baby Steps to my success. I took a logical customized approach. For those who are serious and ready it's a great start.
Well said! Dave is the one that got me on track with my finances as well!
I disagree with you on #2 when you are saying that Dave says to only have 1K emergency fund. but don't forget, he suggests that only until you payoff your debts. then the baby step 3 Dave says to build 3 to 6 months of monthly expenses. so don't turn upside down what Dave teaches. he has millions of people that follow his plan and are now successful financially.
Yes, Dave teaches $1,000 for baby step 1 and then baby step 3 is 3-6 months of expenses, this shouldn't take years to save. What I was referring to in this video is this isn't one size fits all like he states, what about the doctors and lawyers that have over 6 figures worth or student loan debt. For them it would make more sense to have baby step 1 be one month's worth of expenses rather than $1,000. That is what I personally recommend for people to do. Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Dave wants people to be content & financially secure. I have many friends who have debts which override their investments but they indulge in luxuries because "they're an Investor now" and their "Investments will take care of things in the long run".
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Personal finance is personal. You gotta do what’s best for you.
So true!! Thank you for watching!!
Hi , hi Josh. Well said. You should call Dave and let him know.
@@go5582 Dave should already know that
The reality is that most people don't do what is best for them. They do what is best for banks, life insurance companies, and time share companies. Not themselves!
😆
The credit score system is rigged. It’s basically an “I love debt” score. It’s a shame you get punished for doing the right thing by paying off your debt. That’s the fault of the banks.
Yeah, I honestly quit paying attention to that scam of a 3 digit number. If I want something, I save up by whatever I choose to make it there and then I buy it. Oh, with no interest attached lol. If it takes me a little longer to put me in buying position that's the way it is, but I'll get it regardless, and cheaper
I can agree to disagree! How I use my credit is this. Pay fir my gas with my credit card, get my airline point or money back from the company, then once the bill comes at the end of the month I pay it off to a 0 balance monthly. I don’t think the system is rigged, I just think that most Americans don’t know how to use OPM to there advantage! Doing this helped me to build wealth! And now I don’t need to utilize my credit as much! It was good fir a means to a end to get where I needs to go. It more about educationa JD how to use it to get to your end financial girl for yourself and family to grow wealth responsibly. The wealthy in this nation DOES NOT follow Dave Ramsey.
DAVE RAMSEY IS THE MAN! AND I'M DEBT FREE!
That's awesome!! Have you watched my follow up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
I will check it out, thanks Kelly!
Exactly, you don't need to be "rich" to not have credit. But if you're poor, you're most likely going to need credit.
He’s breaking up families. The road to hell is paved with good intentions.
Honestly, before Dave, I would never have been able to cash flow even a $200 emergency, let alone $1000. $1000 was a lifesaver and has saved me more than once.
Have you watched my follow up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
@@freedominabudget why would they watch another video? If you comprehended what they said then you should be able to extrapolate that funding your lifestyle by watching another one of your pointless videos is a waste of time🤦♀️🤦🤦♀️🤦
Ramsey has help more people than you will ever will stop 🛑 hating
You said you followed Dave for years but you sound like you read his baby steps and made this video. One thing to think about is you are preaching instant gratification where Dave is saying not to use instant gratification because the average American wants it now.
I have over 700 videos on my channel, go back and watch my older videos when I was paying off my debt and following and teaching his baby steps. Not preaching instant gratification at all, I am all about the hard work!
Sam... think for yourself for once dumby
You relate drinking to credit or just buying.... "Once you sober up....." If you have to sober up or you went on a binge shopping trip, something is not right. I do get it, I just need new cloths, new car (Because I deserved it!)
If I'm hearing it wrong, you need to talk a little slower when your trying to get a point across.
@@mjflinn5007 if you have one drink you are still fine, sober everything under the control that doesnt mean you are alcoholic, addicted...etc.
If you have money but you use credit card and pay amount by due date that doesnt mean you are depending on credit card. Alcohol and credit card have bad negative name but if you are disciplined its totally fine.
@@freedominabudget - You followed him all that time and still got things wrong insofar as having to create a follow up video?
Im sorry but you have your information wrong on the emergency fund dave ramsey says start with 1000 dollars but eventually your emergency fund should be 3 to 6 months of rent and living expenses i think you need to double check what ever baby steps you were following
She did say that when she talking about Dave. You must not have been paying attention.
I'm sorry it wasn't clear in the video but yes, I fully understand both baby steps 1 & 3. Check out my video that I just released where I dig in a little deeper into the WHY of why I no longer follow Dave Ramsey: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Quit freaking spamming her videos loser!!
Hmm I'm 45, paid off well over 100,000 in debt in a couple years. Now I put away over $5,000 a month into savings, everything I own is paid for. I work, I save. I don't ever plan to use debt again, I plan to use common sense and living within my means
The $1000 is baby step 1, baby step 3 is three to six months emergency fund. If you actually followed Dave ramsey you'd know that.
Have you watched my follow up video? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
I agree. 1k is to keep people focused. If you need more than that get creative and cash flow it. Daves program is for those who are determined.
@@richsr.7589
No, Dave's program is for people whom are stupid. Rich Dad Poor Dad is for people whom are determined. I was homeless a little over a decade ago. I now run a Real Estate micro empire. (Used 570ck trading to get there.) I took massive risks and even defaulted on debt early on in the career, but eventually, I acquired the skillset to make consistent profits. Dave would have just called it gambling, just like any other moronic boomer. But I saw what the average boomer had left after all those decades of work. I would have rather died than become a wage slave. So, I persisted. Riches or death. No compromises.
That is determination. When everyone in your life thinks you're a degenerate gambler that'll never amount to anything, but you keep going, because you know in your heart that you are right and they are wrong. That their path leads to a life of slavery and yours either leads to death, or glory. Boomers are cowards. They are risk-averse. And they are poor. For a reason. I'm probably worth more than Ramsey, despite being on the planet for a fraction of the time.
Screw his program. Screw hoarding USD. You think the gov is going to pay off 28 trillion dollars of debt? They'll dilute it into the ground! And with it, any suckers that thought "cash is king". Cash is just a tool for servicing debt and acquiring things. Some people use it to acquire worthless crap like cars and electronics. Some people use it to acquire appreciating assets.
And some people hoard it, which is probably even worse than the cars and electronics. At least the lower class will have spinners and sound systems when the "great reset" sweeps through. What will Ramsey worshippers have? A bunch of pieces of cloth?
I am a millionaire thanks to Dave's teachings. Hey, to each his/her own.
You clearly didn't listen to the video
Dave never said stop at a $1,000 emergency fund. He said if you have NONE...NOTHING set aside...at least scrape together $1000 as quickly as you can.
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
I did Dave Ramsey's system for years and was saving for my next car. Then....My car was 7 years old with about 75K miles and the transmission blew. The cost of repairs would have depleted my savings completely and I would have had to go into my emergency fund to cover the rest. I had enough to pay about half of a "new" preowned car and had to take out a loan for the rest. I didn't want to buy a junker because I am absolutely terrified of being stranded someplace without any help. So because of having zero credit for being debt free for 10 years, my interest on the loan was almost 10% (after being declined by 4 other loan companies). Luckily it was my only debt so I paid it off within a year but still irritates me that my zero credit score really hurt me because of following that advice. My perspective has definitely changed and will be working on bettering my credit going forward.
Lol you’re not supposed to go get into more debt 🤦♂️ 🤣 duh
Why are you blaming him. You were supposed to spend the emergency fund to fix the transmission, not to get approved for a new car. You can't blame him and not follow his advice all the way. Fixing the transmission would've been cheaper.
If you were debt free for 10!!!! Years!!!! Why didn't you have enough money for a replacement car???? It's not like you didn't know your car was aging!
A Thousand emergency fund is just to get started. After you get a handle on your debt get six months into an emergency fund.
You can do both save and pay off debt the choice is still yours.
Have you watched my follow up video? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
@@freedominabudget aka i had to make another video cause everyone was calling me out lol
Interesting that you find Dave Ramsey so lacking or outdated but you made sure to use his name in not one but at least 2 of your titles for click bait and to align the algorithms so your video shows up somewhere near his platform.
I followed Dave Ramsey for over 2 years and taught a few FPU classes, I've had multiple people ask me why I no longer follow him. I am simply sharing my journey and why I no longer follow him. I have no control over the algorithm and where they place my videos. To be honest, it probably hurts my videos more putting them next to Dave's videos because those are typically watched by die hard Dave Ramsey fans who won't watch and/or click off immediately.
Another person that completely misunderstood the Ramsey plan. The plan isn’t a get rich quick scheme, it’s learning to be disciplined with your money and make smart decisions. Too many people overthink their finances, it’s all about behavior.
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
His discipline has led to a lot of financial freedom. A lot of points can be argued/discussed. But for many, if not most people struggling in debt, he is a great resource to flip the tables on your existing lifestyle and get you to think differently.
Absolutely! Dave is the one that helped teach me about money and get out of debt. I think he is awesome for beginners getting their life in order but it gets to a point where you dig deeper and build wealth in different ways. Thank you for watching!
Kelly Anne Smith - Freedom In A Budget I have to say I don’t believe wealth is built by credit cards. You can make the argument debt can be attributed to building wealth, such as in real estate or even maybe taking a business loan for a new business (which is still risky). I don’t think one credit card will kill someone though, people need to learn discipline ultimately. It may not be related, but like with food or alcohol, if you’re going to use something, don’t go over, don’t cross the line. In a lot of cases though, credit card debt keeps people below water or with their head barely above it. I make $65K/year and I’m only $10K in credit card debt with no other debt or loans. I haven’t gone “gazelle intense,” but I have a plan. So I’m not panicking. Now people with debt near 50% or more of their total annual income...ouch.
I think its important to look at the interest rate of the debt. To be honest, I personally would work a lot harder to get that credit card debt gone than I would for a student loan. I don't like either debt but credit card debt holds a very high interest rate. Just my two cents. :)
@@doompod you have 10,000 in credit card debt and you make 65,000 a year..... lmaoooo... u need Dave... 20% of your net income for the entire year will go to the credit card companies and thats not even calculating the interest.....
LIKE I SAID BEFORE : Dont take financial advise from someone who is without finances...
@@freedominabudget Student loan services can garnish your wages, take your tax refund and you can't even dismiss it bankruptcy unless it's a hardship which would be hard to prove and cost a lot of money to do so. Not so with credit card debt.
1000 emergency fund is only step one. You build on that later but it’s important because it keeps you from having to use credit again to get out of trouble for small things like your dryer going out or small repairs. Most people don’t even have that for an emergency. I agree you should always be matching the 401k no matter what happens. It’s the compounding of that money over time while your paying off your debt that will really add up.
Have you watched my follow up video? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
You should never agree with anyone 1000%, that’s called idolizing. Dave gives a good foundation for people that aren’t financially educated and for people with bad financial habit or both. This doesn’t mean you should agree with him on everything and doesn’t mean you should stop following him if you don’t, use what’s helpful discard what isn’t.
So true!! Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
I don't know why all the thumbs down. I think you made a lot of sense. Especially about the Emergency fund and maintaining a good credit score.
A good credit score just means you qualify for more debt, which is the opposite of building wealth.
@@luminous6969 So, someone who borrows to buy a fixer upper and clears a nice profit is not building wealth?
@@angelmission If you want to go six figures in the hole on something that carries a substantial risk of not gaining any money or maybe even losing money, go for it. 👍
Before watching this I want to say I’m going to agree with you. And Dave Ramsey is there for people who need to get the start in changing their financial lives. He basically helps get people out of the hole. A deep hole they gave been in for a while. He gives them tough love advice. And most of these people are either not financially educated and are not responsible with their money. Dave is like a “5-Hour Energy Shot” but on steroids. He has to get you focused on the most important, yet, basic thing to change in your life to start the path of becoming financially stable. Then these people can move on from Dave, to gather more information and learn about other financial topics. (Been there)
You're saying incorrect information, he doesn't believe in a credit score of zero. In fact he has said many times you don't want to hurt your credit score. He just doesn't believe in borrowing and going into debt to raise it. He has said he's not against people getting mortgages either but he wouldn't do it himself.
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Dave's advice is for messed-up people. If you are disciplined, you can use your credit cards to improve your score. Just be disciplined to pay everything off after purchases.
I like Dave. He's very good guidance for people who have no clues of living life.
I am very good at math, so money management is no problem for me. But there is nothing wrong with opening up my mind to learn from others.
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
I agree. He's absolutely great for people who are so far in debt they don't know where to go. Most people get confused on the $1000 dollars and what it's purpose is for. It's not to live off of. It's to cover the GOK (god only knows) expenses that come up. Flat tire happened on car? Use the money from the $1000 to get a new tire so you can get back to work. That's not for a job loss and sustainment.
@@jusaverage6347 except that the GOK expenses tend to come in batches of $2K to $5K.
Then you need a new roof and all you can do is pray a tree falls on your house and insurance will cover it
Dave's advice is for everyone. I love hearing people who grew up as Financial Peace babies with their success stories at 20 or 25 years old, talking about having a pile of money. If you want to use a credit card, fine. It would just be nice if people didn't denigrate his audience.
If 75% of people in the US live paycheck to paycheck, that's 75% messed-up people. If you think you're not one of them, that makes you a minority. Dave's advice is for that sizable 75%.
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I've been trading with her for months now too and all my trades have been going well.
Be thankful he got you in the right track…. I don’t think it’s right to discredit him… He has helped me so much with my finances. I was getting into debt and after listening to him I made so many changes into my finances and I’m so thankful. I have peace of mind because I’m not living paycheck to paycheck. What he gives It’s a start, and each person builds its own balance and wealth…. Something I really learned It’s the importance of having in mind your budget and not over spend and live over your means. So, Either you didn’t really get what he was saying or you are just trying to gain fame from making a video like this with a way more knowledgeable person. I don’t understand the point you are trying to make….
I think you need to dig deeper into the topics you are bringing up. Dave has addressed exactly the detailed questions and issues you bring up in the this video, and has given the valid reasons on "why". Bottom line is don't buy or spend money on "stuff" you don't have money for, (house, car, clothes, etc.) I've followed Dave for almost 14 years, and haven't regretted one thing he suggested.
Have you watched my follow up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
@@freedominabudget Nope because this one twisted what he say so much I have no desire to waste any more time on you or your videos.
@@jenallen5202 - I'm finding that the people who don't even listen to the show are the ones with a ton of opinions on why he's wrong. It's quite fascinating to hear all the misinformation that is otherwise easily verifiable.
First of all, I think you're very brave for giving your opinion on someone as well-known as Dave Ramsey. However, I disagree with you regarding the Emergency fund. The Emergency fund has saved us many times and has given me peace of mind. Of course having a months worth of expenses saved up would be great, but we haven't gotten that far yet. The emergency fund is WAY better than nothing.
Have you watched my follow up video? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
the 1,000 emergency fund is only when paying off debt lol is 3-6 months of expenses later
401k stop is because if you get in bad times you will pull out of your 401k anyways so what invest if you don't got the back up
You are entitled to your opinion. As Dave says "You have the right to be wrong".
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
You don’t invest until you paid off your debt because you’re paying interest on your debt. For example if you have a car loan and can put an extra $300 towards it instead of in a 401k then you’ll be done with that loan early and save on interest. So if you pay the car loan 12 months early and it’s $50 month interest that’s $600 you saved.And you can catch up on retirement when you’re out of debt because you’ll be able to invest more. Another way to look at it is if you do invest while in debt let’s say $300 month and your employer matches $150 month. But all the interest you pay on debt total each month adds up to over $150 month, then you’re not really winning. that’s the reason behind it.
Watch my follow up video The Pros and Cons of Dave Ramsey th-cam.com/video/KFRJtFRKeIM/w-d-xo.html for a deeper dive into the reasons WHY I don't agree with Dave. As always this is my personal journey and just sharing why I stopped following Dave Ramsey. I still contribute paying off all my debt and getting me on the right financial path to Dave. :) Thank you for watching!
Ok but if you give up 100% employer match you come out losing the 100% match plus the hain far out weights the 8-10 percent interest
@@dacr0708 exactly what you said
@@dacr0708 - Investment rate matters. If you invest 3% of your $40,000 salary, that would be $1,200 per year. If your employer offered a 3% match, you be up to investing a total of $2,400 per year. If that's all you're investing bc you have debt, then you're missing out on investing the 15% he recommends. Let's assume you have an initial investment of $10,000 and invested $2,400 for three years at a rate of 10%. Your principle would be $17,200 and your gross return would be roughly $22,000. You essentially made $4,800 by not foregoing the match. But you would still have to offset this amount by how much you would pay in debt interest payments as well as what you're losing out on by not getting out of debt and investing a full 15%. I'm sure there's an argument to be made about how much you could've made by letting it further compound, but hopefully you get what I'm saying. Under these circumstances, it may be a better idea to just follow his plan.
The $1000.00 emergency fund is to get you started saving. Its for instance if you need a tire. Its for small emergencies. Not house hold expenses. When your building your 3 to 6 months of household expenses, your emergency fund should be included. Also, Dave is talking to people who have found themselves in debt and trying to get out of debt.He's not a financial advisor. People use pieces of Dave's advise that benefit their lives. I don't understand how your credit score got lowered unless you weren't paying your bills. I've been debt free for 2 years and haven't used any CC since then and my score has not gone down at all.
Have you watched my follow up video? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Baby step 1 is to save $1000 but after you pay off debt. He says you should have 3-6 months expenses for emergency fund
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Yeah it seems you’ve completely misunderstood some of Dave’s core ideas like number 1 and 2. I’d recommend giving him another chance. The other reasons remind me of exactly why people are such poor money managements and in debt in the first place - you’re convincing yourself that carrying debt isn’t that bad. There’s a reason the majority of people in the US are in crippling debt and Dave’s ideas speak to those most in need with lives most ravaged by money problems. You ideas may be good for someone that isn’t in tough shape, ready handles their finances pretty good.
I don't think she's misunderstanding. She was deep in the DR program. Even visited his studio. You don't get to that level if you 'misunderstand' his principals. What she is saying is that she saw some flaws in his principals. There is nothing wrong with that.
Beto da Silva true and valid thank uou
Check out my video that I just released where I dig in a little deeper into the WHY of why I no longer follow Dave Ramsey: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
The only debt that we carry is our mortgage. :)
Credit card, oh no! I'm 45 and have not ever had one! 401k, increase 1% every year at your job. I'm at 19% +6% company match. 19 years with this company! Best wishes ❤
That's awesome!!! Thank you for watching!!
The banks want you to keep a credit score so you give them all your money. I closed my cards and froze my credit so I don't qualify for loans.
I myself have taken the Ramsey course, didn’t work for me at all, worse off than prior. However I have adopted his emergency funds, snowballing my debts but I’m doing it in reverse.
As far as buying beater with heater for now until you can save enough for newer car, noppers I got burned and lost thousands buying them immediately break down and spending money to fix em up.
As far as Modular’s goes I own one free and clear on my quarter acre lot, paid $70,000 for it new, now worth around $90,,000-$100,000.
So if you wanna affordable homes consider Modular's, I own some land free and clear in TN, my next home will be a modular by Schuller modular manufacturing.
I think his principles are a decent starting place for someone who is in a deep deep hole but the idea that he is the end all be all is laughable. I like the idea of looking at your own situation once you are out of trouble ad determining your own priorities. Like you said...most people can't just cash flow everything forever.
Very good points!! Thank you so much for watching!
@@freedominabudget this was a great video. It was.good for me to remember learning about saving and learning about paying bills...ON TIME EVERY MONTH! lol I still only use.my CC to pay my cell phone bill and I pay that off on the same day I pay the phone bill. My credit score has any rocketed.
Yesss!! I love it!
His strategies and sequence of steps make complete sense. He simplified everything... something you won’t often get from a financial planner.
@@screaminpotato I also can absolutely agree with this sentiment. Aside from the money he makes from his books and classes, his financial investment in keeping you coming back to his office is minimal so IMHO that also makes it easier to trust his advice. Especially in the early stages if you are in a deep hole or don't know how to start.
After watching this, I a so glad I found Dave and not this channel...
Have you watched my follow up video? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Well, Dave listeners lost 80% of their wealth in '08 because the stock market crashed wiped out, well, the stock market. Now, he is advocating for the same things that caused the last crash, but people do tend to do the same thing over and over to their detriment.
@@traviswall1982 they only lost money if they pulled out of the market at the drop, which he tells you not to do.
@@reba2876 No, not Dave Ramsey listeners. Y'all are so obedient that he tells you to leave it in, and you do. Businesses went under (and their stock went to $0), so those stock went to $0 as well.
If he would have done what his listener did in January '08, and put dollars in gold, their value would have went from $700 and ounce to $1100 an ounce, just in 2 years. But Dave Ramsey listeners do not understand markets (not just the stock market).
You do not just lose money (currency, the dollar is NOT money because it is NOT a store of value) from pulling it out, you lose it if stocks crash.
Dave speaks to the people who are so bad with money, he has to make them look like victims of credit cards. Those of us with even a tiny bit of discipline don’t need that. There is no playing with a snake. Just living responsibly while getting rewards and great credit score.
But you can get a better interest rate on a mortgage with manual underwriting and a 20% downpayment than you would with a credit score and 20% down
Very interesting! I've had friends look into manual underwriting (3-5 years ago) and they said that they found the manual underwriting interest rates to be much higher than conventional loans.
Wow that is weird. Not including points, the manual underwriting was lower? I have never seen that offer and I have been looking.
If you pay your house off in 7-10 years, who cares...
No one ever tells us how much higher the interest rate is with someone who has no credit score.
I agree that Dave has a lot of flaws, but to contradict some of the hate he gets from most people, his main audience are people that have deep rooted finance problems. I'm sure he knows that credit cards can be good but he knows most people will make a late payment or something and end up in a bad spot. Also, I'm pretty sure the lowest CC score you can get is 300 but get your point
Very true! Dave is the one that helped me get my finances in order but now that I've learned so much about personal finances these past 5 years I'm learning that the plan has a lot of flaws. That's really interesting about the credit score, I'll have to do some research! :)
@@freedominabudget I think thats a FICO score - the lowest is 300. The lowest score varies depending on which scoring system is used. I think there's a Vantage score that actually goes to zero - but most don't. I've heard Dave Ramsey reference a "zero" credit score, but when pressed he will say that he registers as not having a credit score - it can't be calculated - because he has none of the factors that go into creating a credit score like number of years having a credit card, balance on a credit card, available credit, amount of loans, etc.
@arthrodea Ahhhh yes, that makes sense!
Agreed, most people that follow him strictly are people who arent coming from a financial background. But having a $1k emergency fund, yeah I knew then I'd never be on board. $1k does not get you far, at all.
I featured your comment in my follow up video! I'd love for you to check it out and let me know your thoughts! th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
I’ve always been Dave-ish, but I didn’t have that much debt outside of mortgage - it was less than $10k. So I kept contributing to 401(k) up to match and I kept my credit cards and just hid them. Now I put groceries and gas on that card. I have kept getting points and kept my credit card score over 820.
Once you’ve created your budget and actual know where your money goes then set up your automatic deductions to different sinking funds and investments - it’s like being on autopilot. I still owe $88k on my mortgage. I flip back and forth on tearing that down with everything I got or just making one extra payment a month. Still can’t decide.
That's awesome!! Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Ramsey is in firm grasp of the obvious. His callers are ridiculous. "Ohhhhhhhh Dave.....Help ! I own my home outright , $200K in my IRA..... but owe $5K on my visa....I only make $125K per year. Help me Dave !" Dave :
"Rice & Beans, Beans & Rice." LOLOLOL
I've noticed all of his "Debt Free Scream!" people make over 150k household and are amazed they payed off 100k of debt in two years.. lol
It's all a fake show
Dave teaches the basics to get out of debt, most people can’t deal with credit cards and other types of debt, I watch them all and grab a little bit of each one.
1000$ emergency fund isn’t supposed to feel comfortable. It’s supposed make you feel like I need to get this debt gone so I can have more of a cushion
Yes, Dave teaches $1,000 for baby step 1 and then baby step 3 is 3-6 months of expenses, this shouldn't take years to save. What I was referring to in this video is this isn't one size fits all like he states, what about the doctors and lawyers that have over 6 figures worth or student loan debt. For them it would make more sense to have baby step 1 be one month's worth of expenses rather than $1,000. That is what I personally recommend for people to do. Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
I listen to Dave Ramsey all the time, but I agree with you on the credit score, the emergency fund being more then 1k is a good one, I needed new tires a few months back, I was expecting it but had I not, I spend almost $600 on tires, that would mean I would only have $400 left.
If you know you need something, place money in a sinking fund for it. No need to touch emergency fund for all of the cost of the item.
Dave isn’t perfect, but for this scenario he teaches to build your emergency fund back up to 1,000 then go back to your debt. I agree with the poster that more than 1,000 for emergencies is better. I think he teaches that because 1,000 is manageable for people, then complete it then get to go onto the next task ie. Snowball type behavior
All sorts of way to handle finances. If it was down to just two, and had followed either Ramsey or your way, people would have a far better survival rate during times like now in this “pandemic” with Ramsey. People with no job and facing reality who overreached with credit and losing homes from mortgages that they could barely afford to begin with are finding that reality come true now. Respect your view but reality has a way of finding out the truth in applications.
Thank you so much! Have you watched my follow up video? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Chasing a credit score is poor people thinking. Credit scores were created by the insurance industry to maximize profits and then leveraged by other businesses like lending institutions, also to maximize profits - Not evaluate your credit worthiness. The general rule is to have people pay you interest and you should fight to never have to pay anyone else interest. That is the game of wealth in a nutshell (along with great legal and tax council)
I build my credit score without paying a penny of interest. Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Yeah I think I'll pass on your plan. Dave's plan is working flawlessly for us.
Have you watched my follow up video? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Dave has helped me payoff my personal debt and get my finances together. He has helped me out so much with all the advice he gives on his show.
There's not just one way to do things. Dave Ramsey has some fantastic concepts that are very beneficial but ultimately everyone has to make their own decisions and think for themselves based on good information.
What Dave teaches HELPS people, but what HURTS people is when they switch off their brains and blindly follow one person's advice without thinking through things.
You say that you followed Dave Ramsey, but you certainly weren't paying attention. The thousand dollar emergency fund, is a temporary fund until you get out of debt. Stopping your retirement savings, until you get out of debt is to speed up the process. Does the term gazelle intensity ring a bell? And three to ten years to save up three to six months of living expenses, for a full funded emergency fund? Wow! Dave has been counseling people financially for 30 years. You would be known as non-compliant.
Thank you for watching and taking the time to comment! I really appreciate it!! ☺️
Even an emergency fund can make money. We have our emergency fund, about $60,00 in an investment fund, that returned about 7.5 per cent last year, and where we can withdraw it with three days notice. Not many financial emergencies are going to require less than three days.
As a former financial advisor you make some valid points. The biggest thing i hated about Dave was he never told anyone how to leverage their cash/investments. I taught multiple clients how to finance large purchases and use their spare cash and investments to pay for it over time. Now they have an asset AND their cash rather than just an asset and NO cash.
So true!! Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Please start a you tube show.
Yea ive seen alot of people pissed off how daves program actually lost them money and all the dave cultists are like WELL YOU NEED TO PERSONALIZE IT TO YOURSELF DAVES HELPED SO MANY OTHER PEOPLE. Like yea and dave also calls you stupid if you devitate at all from the baby steps
Youre a broke financial advisor, exactly what Dave said. How can people trust on finacial advisors who are broke themselves? How can you possibly justify that.
I wish I could find a financial advisor like you! All the one's I have talked to just want to sell me something.
Dave is great for people that have no clue about money and basic saving. I don't blame them. I grew up in a household in which car payments and credit card debt was considered normal. I learned on my own that it's better to not finance things when possible. I use my credit card for every purchase and pay it off each month. I disagree with Dave on credit card use, but I have self control with it.
I agree with most of your opinions...1k emergency fund is for someone that start the process. You have to keep in mind most people can't save 1k.
Having a good credit score to me is very important, especially when you can leverage the lenders money to enrich yourself.
I agree with you. My husband and I have worked hard to get our credit scores into the excellent range. We are in the process of refinancing our house and having the credit scores we do have made things so much better for us. We’ll be able to decrease the term of our loan, lower the interest rate, and only increased our payment by about $27/month.
Agreed! Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
No, what ended up costing you a lot of money was the fact that you borrowed a lot of money. I have an insanely low interest rate on my home and it’s still going to cost me 100k in interest (assuming no principle payments at all). It’s not the interest rate, it’s the behavior.
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
I love what you have to say about Dave's method, it is truthful. I also followed Dave's method until it wasn't useful anymore. But his method helped me get on track with finance and I really appreciated.
Thank you! Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
I wish TH-cam got a tag 🏷 just tag Dave Ramsey If he gotta smile or concentrate
LOL! Thank you for watching!
I am Debt Free, I own my home, fully funded 529 for my child and over $750K in the bank. I have worked my entire life and never made more than $100K in my entire life. You are wrong, Dave Ramsey is right. Have a great day.
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
I totally agree with everything you said! I used to facilitate FPU but could no longer do it with integrity as I became more knowledgeable about these very same things. Great video!
Dave is simply trying to help you build wealth and be more independent. Dave system works only if you stay focused. I use credit cards for only work related travel. I am reimbursed each month from my employer. I get all the perks at my employer's expense. 😎
Thats awesome!! Thank you for watching!!
When you purchase a house, with no credit score, you speak verbally with the manual underwriter of the loan. He, will then make the decision. There is no need for fico score. Your Job is your credit history.
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
There is no denying you’ll pay soo much more in interest with a lower or no score over someone with a higher credit score. That part of Dave’s advise is absolute nonsense in todays world. Do you want to pay 100k more in interest because you can’t have a high credit score?!
Dave lit the debt payoff fire for me but moving to my own way has kept it burning.
Same here!! Thank you for watching!!
This makes me feel better about the "liberal approach" we took while on the Dave Ramsey plan. We questioned the same items you talked about, and changed them up to fit where we were in life at the time. All in all though, I AM grateful for all the things I've learned from Dave Ramsey and FPU. It 10000% changed our thinking and our future!
For sure!! Same exact here! He is who got me on track for my finances and will always have my respect. These are just the ways that I don't follow anymore. :)
I featured your comment in my follow up video! I'd love for you to check it out and let me know your thoughts! th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
I agree with you 100%. I like Dave Ramsey but he gives some good advice but he also gives some bad advice. It all depends on the person, the risk tolerance and what they set as goals. If you cannot set up a bank account or legally cannot, Dave gives great advice to keep your cash from being tracked by the government. If you have a good job and a retirement plan, especially a employer matching plan, you throw away hundreds of thousands to millions of dollars you could retire with by not investing in long term high gain funds or stocks. Get Long Term Care insurance first since you are ten times more likely to need it than life insurance, get some life to cover your family if needed, obviously you need health, dental and vision insurance, then follow Dave's advice at that point. Starting out by paying off "TWO" credit cards you use EVERY 5-6 months for ONE charge and pay it off the next week builds a credit score for buying a home. Try to live cheap, pay cash for an old car, cheap or free rent, eat beans and rice is also good till you can build up one to six months cash IN A CREDIT UNION with interest. Dave is great, but only take the points you need from him as you need them. DO NOT GO INTO CREDIT CARD DEBT, you will NEVER pay it off without Dave's advice. Dave is there for people that made all the wrong choices in life and need to fix it.
This is great insight. I follow DR because he is motivational for getting out of debt. But beyond that, using your judgement is important. I believe that saving for retirement should never cease. And that credit cards are fine if you can pay them off each month. DR is a good coach though.
That's awesome!! Have you watched my follow-up video sharing the pros and cons of Dave Ramsey? I think you would enjoy it! Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
Spot on! I became an everyday millionaire by doing a plan like The Automatic Millionaire by David Bach. It is far superior to the Total Money Makeover for all the reasons you mentioned. P.S. This video was fantastic, and you are smarter than Dave Ramsey. He is stuck in ways that are not realistic or even beneficial to the average person wanting to obtain millionaire status. I think his arrogance gets in the way of changing his views. Actually I'm pretty sure of that. A true leader has no problem admitting they may have been wrong, I can never see someone like him doing that. A few years ago, he had a very intelligent writer from a money magazine trying to show him why index funds were a great way to invest because statistically they have done better after you pay the high fees of managed funds. Well Dave didn't take the high road and berated and bullied this guy. It was horrible and that's when I saw Dave for who he truly was. I don't remember the gentlemen's name, but he took the high road throughout, he was a real class act and Dave looked like a school yard bully because this man had the audacity to show him another view point.
Yes! I absolutely love that book. Best financial book for my type of lifestyle. Thank you for your comment.
Wow thats awesome!! Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
If it takes more than 1-2 years to gather 3-6 months of expenses, that means that your expenses are too high.
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
@@freedominabudget i’ll check it out! thx!
This a very long conversation, so hard to sum up. Dave provides a framework for people to change behavior. And it works for well for fixed income, or income that will increase with inflation. Basically clock in, clock out people. If your a business person who does large deals, you have to leverage yourself. Sometimes uncomfortably. But without Dave, I wouldnt have been able to get to the point where a bank would start lending me money for deals. He really changed my life and lots of my behavior. Its a solid base to build your financial home.
Leverage is risk not requirement. Patience is rewarded with increased likelihood of success and reduced chance of failure.
1:44 how can you follow dave for years yet you havent even understood baby step 1 properly?
Just because I don't agree with something doesn't mean I don't understand it properly.
So how about $3,000.00 dollars instead?
This is just dishonest. Dave doesn't say you should have a $1000 emergency fund, he says you should have a $1000 rainy day fund as a starting point UNTIL you are done paying off your debt, then increase your emergency fund to 3-6 months worth of your expenses.
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
@@freedominabudget you should delete this one
Couldn’t agree more! I call myself Dave Ramsey-ish. His principles taught me a lot of discipline and I was able to make huge strides financially but personal finance is personal and we have to do what works best for us. I use credit cards and am disciplined enough to pay them off every month. The investing for 401k match was another big one for me as well. Kudos to you though!
That is exactly how I feel! Dave is the one that taught me about personal finances and how to get my money in order. Now that I'm more educated I'm able to pick and choose what I do. :)
Dave has been doing it for decades, so I think I’ll follow his advice.
Unfortunately, he has not changed his plan in decades. That really is the main problem.. aside from focusing on psychology and not math.
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
So has Satan. This analogy could be twisted in many different directions of course. 🥸
Your credit score does not drop after you pay off debt. Nor does it fall off your credit score right away. I've been debt free for over 5 years outside of my mortgage and my credit score is still over 800. You are not telling the full story.
“Let’s be honest, what emergency is less than 1,000 dollars?” Answer: New tire(s) and most vehicle repairs. Any kitchen appliance can be replaced for less than 1000. A washer or dryer could be repaired or replaced. Even a roof patch would be less than a thousand bucks in most cases.
Have you watched my follow up video? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html
New tires are not an emergency, that’s an expected cost that you know you need after x amount of miles.
I'm with you 100%. I like MOST of what Dave says but he's also stuck in the 90s maybe earlier. Not everything he says makes sense nowadays. Also his steps are cookie cutter and don't work for everyone.
Basically you're just contradicting everything Dave Ramsey teaches, and RECOMMENDING AGAINST his teachings/process, which is ironic (and hypocritical) if you used it to get out of debt.
Have you watched my follow-up video sharing the pros and cons of Dave Ramsey and a deeper dive into why I said what I said? Here is the link: th-cam.com/video/KFRJtFRKeIM/w-d-xo.html