I wouldn't worry about friends, they might ask to borrow but you can easily say no. Family is a big hassle, they will make you feel guilty if you don't help. I don't let my family and in-laws know how much we have. Some of my siblings make way more money than us but because they are so bad at finance and they are always broke then they will ask for help. I told everyone if they make more money than me that means they are not poor and if I can make it that means they can as well.
People are so lucky to have inheritance. Me and my husband both of us paid for our own college courses, parents didn't save any college fund. When we had full time jobs, just jobs, nothing else with a little better pay, suddenly we were the ones should pay for all. So whenever family member asked how much did I make this year I told them none of their business.
I’m not sure where “luck” plays a part in this. A lot of people who receive an inheritance lose somebody in the process. I also don’t come from money, but maybe watch your words next time as many people lose their family (mom, dad, grandparent) to get this “lucky inheritance”. Congrats on your success nevertheless.
your comment is disgusting. nobody's denying death is not a tragedy and that's a benefit. The benefit is luck because you're born in the right place and the right time. That someone did all the work for you and then benefit big time because they decided to will it to you. they didn't have to do any of that.
Helped my ex spend her $100,000 inheritance. We were young and dumb, her mom watched us walk for high school graduation and passed a week later. Retail therapy is terrible and money will NEVER buy you happiness. I have been there don't try to argue until you have spent $100,000 like I have contributed too. Act like it is not there and build a life for yourself before you do anything emotional. 5 years later I built a life for myself, asked for forgiveness, and learned the value of a dollar earned.
I know I have a large sum of inheritance coming my way when my grandparents pass, and my gameplan is the same as they discussed here. When i first learned about it many years ago i had no financial skills and I am glad I didn't get it then.
NO! Do not invest "immediately". Take some time to learn about investing first _then_ take a small portion of the money and invest it. Focus mostly on school, monitor that small investment AND DO NOT SWING FOR THE FENCES. Keep moving forward.
My recommendations: All he has to do is pay for the rest of his college debt free. When he graduates first find a job. Make sure you are at the job long term and have stable employment. (1 to 2 years). The 3rd year place a down payment on the home. Do not tell anyone about your money, make sure they get the sense that you only got money from working. Keep the money in savings and build retirement. I wouldn't splurge on anything after graduation. It can take some time to find a job you both like and will be stable at.
I can relate to this. I inherited under 200K at 14. Haven’t touched it until recently because I’ve been educating myself on investing and the long term game. I invested during March lows.
Bro kickass I saw it drop I watched it saw the bottom then watched that opportunity pass me by man oh man your awesome bro just maybe pull out soon because it's way overvalued
@@austintomkewitz7206 There's only one reason to sell assets you got a good price, and that is if you need cash to cover expenses. Getting back into US dollars, I am bound to lose money due to inflation - QE
When I got one I spent $50 on one of my best friends. That was it on other people. No one can force you to give it up without your permission. And money advice - I didn't do what DR would have done but that was okay. In the end I wound up in a WAY better financial place. But finding out your options is the best. But in the end make your own decision.
This was good advice. My other thought is that if he needs money to live on while in school, put himself on an "allowance" where he gets a monthly transfer to his checking account and doesn't even see the "big money." This money is enough to be a great start in life, but not enough to live on ultimately. If he is working while in school, keep working (assuming he can handle work and school.).
This kid will be set for life if he plays it correctly. Even $50k in a decent fund that starts before he's even 20 will be a very nice start. He'll graduate debt free with an emergency fund, paid for car, and a huge start on retirement 🍻
yep, 50k at 9% average growth for 40 years is 1.57m. he will be set pretty good even if he never put any extra into retirement, but ofc he should add more.
@@Jacorriee how do you figure? 60 isnt too old to enjoy money lol. my uncle is 60 and he climbs mountains, goes on international vacations, shoots guns, rides atv's and dirt bikes, rides jetskis etc. he does anything a young person can do. also its not as if the guy isnt going to work and make money to enjoy while he is young. most people live to 60 and its smart to plan for retirement at a young age. that is the key to becoming an everyday millionaire like so many of the millionaires featured on daves show
I have an opinion: only invest your money into things if you know how those things work. For example, if you don't know how the stock market works, don't invest your money there. If you do understand how it works, then go ahead. I don't think there's anything wrong with putting the money in a bank account or a CD and taking your time to learn how to invest. I also think it's OK if you don't invest all of your money in the stock market. Does anyone agree or disagree with that? I'm open to suggestions.
Yes, BEST thing I did was pay off my school debt w/ my first month salary & starting bonus from my first job out of college. It was the only thing I owed and it let me enjoy and invest my money at 23!
I mean it's always nice when Ramsey give things away. It's not like it costs a lot of money to begin with. It's very affordable and people are more likely to take it seriously if they pay for it
Same boat, inheriting a large sum from my grandpa who worked his whole life to make sure we'd be taken car of after he died, it's so much responsibility it's scary.
I would pay off my student loans - The rest, I would immediately lock into a 3-month GIC (I'm in Canadian, American's would do "money market"). This isn't a wealth-building option and I'd miss out on a bit of compounding but that's fine. Chris Hogan recommended this the other day and I entirely agree. If you have access to the money right away you'll likely blow it. I'd need to give my brain time to adjust so I could make wise decisions.
Put all 100k in an index fund. Make 8% on it. You will have 3.2 Million after 45 years. If you spend 20k of it on college, then it will only be 2.55 Million. That is $650,000 he is missing out. The student loans, as long as they are Stafford government loans, are 5.05%. Pay off the 20k in loans over 3 years with your new marketing job. That is the more profitable decision.
One of the best Dave advises. Amount of wisdom and how he span this situation from purely mathematical and common sense (what Anthony said) and into a deeper psychological realm. Dam!
Great advice! Other big advice is: Don't tell people about it!! People can get uncomfortable or expect you to pay if you have way more money than them.
1. Change your degree to finance, engineering or IT.. marketing is tough industry. They laid off so many people in marketing teams and the remaining don’t make decent money and are stressed! 2. Keep a 6 month emergency fund 3. Put the rest in VOO. Max out IRA. Don’t you touch until you retire. Then, when you get a job put in more as you go. You can easily be a multimillionaire like this. Compound interest is your bff. Congrats! 🎉
My uncle was in this exact situation. He went to college but took out student loans so he’s taking out the max 10,000 a year to pay it. That’s all he used it for and keeps it in the stock account it was in
This was EXACTLY me three years ago. Same age and amount of money. I spent some of it on education and the rest is in mutual funds until I am ready to buy a home in the next 2-3 years. Just pretend it doesn’t exist except for education or purchasing a home, you’ll be good.
I went to HS with a girl who inherited a substantial amount from her GM her senior year. She lived with her dad only and immediately bought a new Nissan 240SX...she was dead within 4 years of graduation due to drugs and alcohol
At the end of the call when Anthony makes a final comment about going ahead and buying something even like a five or $10,000 car Dave looks away to his left like didn't I just say to do nothing but pay off your college first and then go from there? And Dave made no comment supporting what Anthony said he just reiterated that it was a good question from the caller.
Wow this question is extremely relatable. I inherited $96,000 at age 19. Now I am 21 years old, have no degree, and have $25,000+ in student loans. I spent $20k+ on a car. I also spent around $10k on personal computers (I got two custom built desktops, a $3000 Macbook Pro, a $1400 iPhone 10s Max, 2 pairs of headphones, airpods, and an apple watch.) I also got more expensive housing and unnecessary home goods such as a robot vacuum, expensive trash can, among other items. I probably spent a little over half of my inheritance on College expenses but the rest I just seem to have wasted. Plus student loans give the excess funds to your checking account making it seem like I can spend more money than I actually have. It really is no surprise to me that Americans struggle so badly with debt because no one teaches them about investing, paying off debt, living below your means, etc. In addition to the $25k+ in student loans I also have 4 credit cards with a total credit limit of around $30,000 so it is very easy for my spending to go out of wack and constantly be in debt. Plus most of the credit cards I own have a 20+% interest rate. I am more aware of what I have done now, but still make mistakes, and wish that I knew more about finances sooner.
@@DriftyJayy that's a great goal to have!! I'm 27 years old and man oh man do I wish I could go back sometimes lol I would have started saving much earlier. Stopped chasing boys, and read more books.
I suggested this in Chris Hogan’s millionaires Facebook group and got banned for a week. Chris and Dave hate hate index fund and only suggest mutual funds.
Faith They made money by referring people to investment professionals that handle mutual funds. Therefore they do not suggest people investing into index funds.
Tan Pham Yep, Mutual funds are the worse way to invest your money because is actively managed, I follow the advice of Warren Buffet to just put money in a passive Index Funds that track the SP500, I use FXAIX personally because it has low turnover and the expense ratio is dirt cheap.
You know.. Anthony was giving him solid advice.. Dave though... there is difference between arrogance and confidence. “Remain scared”, “Best program on money on the planet”, “don’t be stupid”.. I mean.. Dave has one mode and most of the time it’s not especially helpful. He should spend the same energy updating his material for his program.
Terrible advice, actually. Putting the 100k immediately in the market generates statistically better returns than the interest in loans. Taking out student loans is better.
Once all debt is taken care of I feel it is important to find a good investment advisor that takes you seriously even if you only have a little money left to invest.
He should find another way of paying off the student loan and place the 100k in a trust fund to invest later on in blue chip stocks or mutual funds. Treat the money like a windfall, pretending that it isn't there.
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Tell me about it. My 401k? Practically useless right now. I’ve got over $500k in there, but with everything going on, I’m wondering if I should just cash out and figure something else out. I’m getting closer to retirement, and the idea of relying on that fund is stressing me out.
Keep it simple, buy things you understand, take some risk but don't try to shoot the lights out. I currently have 75% SCHD and 25% ROTH IRA. Brokerage account is 40% VOO, 35% SCHD, 25% XLK. Combine balance ~$3.3m Less than 3 years until retirement.... I have about 400k in cash. My portfolio has yielded far more than I expected for my retirement. Kudos to my advisor. I could leave you a lead if you need help...
invest the 100k and dont touch it for 40 years and you could have 4.5m... sure 100k doesnt sound like much, but if he leaves it invested until retirement then his retirement is already funded.
This is why you don't listen to Dave Ramsey. 60k initial investment is 2.7 million over 40 years. 100k is like you said around 4.5. The interest rate on the student loans is irrelevant.
@@BadMannerKorea I agree, no reason to pay off the loans with lower %. However, the increase in networth at 10% compounded annually does not take inflation into consideration which is why I usually calculate with 6-7%
Get into the habit of living well below your means - pay off high interest debt first, and stick a big chunk of it in a roth IRA, then savings account. Keep emergency buffer.
Technically he can’t use inheritance for a Roth IRA though right? Although if he has a part time job he can prob show he has a few thousand in income to use. Just thinking about 5 decades of compound interest on say $25k is mind boggling. He could turn that into a million dollars and never contribute another dime after age 19...
I don't like it when Dave takes over the discussion from Anthony when he was providing excellent advice. Dave needs to do a better job of letting his team provide advice and then when they are done add a few new comments. Dave's advice was excellent, but Anthony was doing great, and it looked like Dave just wanted to take over.
If I had this money (19yr old here too) I would pay school off to be debt free,max out my Roth each year and match a 401k, put the rest in a high yield savings account
Your life is nowhere near over either! I wish I were 21 again, even being nowhere near moving out you have options. Devise a plan and stick to it. Save your money and vow to yourself that when you're 31 you will still have some of the money you made when you were 21,22,23...etc. It's not what you make, it's what you KEEP. Your life has only just begun.
@@ThePricklyash Yeah you are right he could have said 35k right away for college 35k at graduation and rest 30k at 30 years old. You are right about people blowing it.
I really enjoy all of your content, can’t wait till more! U inspired me to make my own channel about finance, stocks, business, real estate and more! I’m 13 with about $1700 in stocks
1. Pay off all your loans 2. Finish school debt free 3. Save a chunk for your emergency fund 4. Dump all the rest in the s&p 500 index 5. ????? 6. PROFIT!
I went to Dave Ramsey website under tools and checked the investment calculator. If this young man makes an investment of $65k and gets 12% at retirement he will have $20 million dollars.
pay for college, 3 mouth emergency funds, invest the rest, and then start putting money form you job into your 401l and i 7 years if he add to it, he could have a HUGE down payment on a house, and money for retirement
Definitely good money, but like Dave said you could blow that easily with a couple nice cars. If it were me, I'd be taking cash dividends every month from it - roll it back in if you can, $400 - $500 a month is great passive income for basically zero work.
i would say maybe $100 a month, but if i was him i would just invest it all for 40 years and have 4.5m at retirement age. sure there is the argument hat he could die before 60, but most people dont. id rather have 4.5m at retirement rather than having an extra $500 a month for 16 years or so.
@@Scorpiomaj27889 yep, id prefer to just leave it all invested and make my own success but know that my retirement is already funded if i messed up somewhere along the way.
Huh, I was in the same position 10 years ago when my mom passed in 8th grade. Good thing I did what he said. I graduated debt free from college with 30k left in savings this year. Now idk what to do next besides growing my net worth! Maybe I should max out a Ross IRA each year?
JoeAceJR because usually it’s gonna be transferred by bank account.. and it’s all tracked and reported at that amount....unless he’s leaving you 100k in cash. That’s a different story.
without even watching im gonna say you pay off any debts, invest the rest and act like youre still broke. because you are, 100k is hardly a drop of piss in the bucket these days
Please don’t tell anyone! People know you inherited money and suddenly you are the one buying things for your friends. Seen it happen.
Yup.
Been there, done that. Never again.
Just deny them, true friends would never ask for things they don't control your life decisions.
Good advice. A relative got a settlement for an accident and she had so many friends! Once it was all gone she suddenly had no friends!
I wouldn't worry about friends, they might ask to borrow but you can easily say no. Family is a big hassle, they will make you feel guilty if you don't help. I don't let my family and in-laws know how much we have. Some of my siblings make way more money than us but because they are so bad at finance and they are always broke then they will ask for help. I told everyone if they make more money than me that means they are not poor and if I can make it that means they can as well.
Sooooo glad he called Dave before doing ANYTHING
One of the smartest things the 19 yr old could do... ask how to deal with sudden wealth and not blow it.
And 3 years later, I hope he made that right decisions with it.
That's the oldest sounding 19 year old I have ever heard
welcome to south carolina
Same thing I thought.
Go listen to Chocolate Rain...his voice will blow your mind! Lol
My son is 17 and his voice has been deeper than this young man’s since he was about 15. No one ever believes he’s as young as he is.
My 13 year old will sound like this. He already has a pretty deep voice, it's crazy.
People are so lucky to have inheritance. Me and my husband both of us paid for our own college courses, parents didn't save any college fund. When we had full time jobs, just jobs, nothing else with a little better pay, suddenly we were the ones should pay for all. So whenever family member asked how much did I make this year I told them none of their business.
I’m not sure where “luck” plays a part in this. A lot of people who receive an inheritance lose somebody in the process. I also don’t come from money, but maybe watch your words next time as many people lose their family (mom, dad, grandparent) to get this “lucky inheritance”. Congrats on your success nevertheless.
your comment is disgusting. nobody's denying death is not a tragedy and that's a benefit. The benefit is luck because you're born in the right place and the right time. That someone did all the work for you and then benefit big time because they decided to will it to you. they didn't have to do any of that.
Helped my ex spend her $100,000 inheritance. We were young and dumb, her mom watched us walk for high school graduation and passed a week later. Retail therapy is terrible and money will NEVER buy you happiness. I have been there don't try to argue until you have spent $100,000 like I have contributed too. Act like it is not there and build a life for yourself before you do anything emotional. 5 years later I built a life for myself, asked for forgiveness, and learned the value of a dollar earned.
Shame on you
Love how Dave and Anthony always say buy a car 10k at most very true!!
A honda gets you to the same place as a Mercedes
I love how he's papa Dave ❤ he talks to you like you're family
I applaud this young man on seeking wise counsel first.
I know I have a large sum of inheritance coming my way when my grandparents pass, and my gameplan is the same as they discussed here. When i first learned about it many years ago i had no financial skills and I am glad I didn't get it then.
Lol I wish I had this problem. Wipe that debt and Invest immediately man.
This will be my sons problem and what he went through to get it isn't worth having this problem.
@dachicagoan Bad play. The twist in your story is that housing prices will go up 15% before it crashes 10%, and you'll convince yourself it's a deal.
I mean, it’s great to have the money but his Grandfather just passed away...
NO! Do not invest "immediately". Take some time to learn about investing first _then_ take a small portion of the money and invest it. Focus mostly on school, monitor that small investment AND DO NOT SWING FOR THE FENCES. Keep moving forward.
“Too many people spend money they haven't earned, to buy things they don't want, to impress people that they don't like.”
― Will Rogers
My recommendations: All he has to do is pay for the rest of his college debt free. When he graduates first find a job. Make sure you are at the job long term and have stable employment. (1 to 2 years). The 3rd year place a down payment on the home. Do not tell anyone about your money, make sure they get the sense that you only got money from working. Keep the money in savings and build retirement. I wouldn't splurge on anything after graduation. It can take some time to find a job you both like and will be stable at.
I can relate to this. I inherited under 200K at 14. Haven’t touched it until recently because I’ve been educating myself on investing and the long term game.
I invested during March lows.
wow, congrats man. 40% gains in a few months must be nice.
@@HermannTheGreat ;)
Leave your children enough so that they can do anything. Not so much that they can do nothing.
Bro kickass I saw it drop I watched it saw the bottom then watched that opportunity pass me by man oh man your awesome bro just maybe pull out soon because it's way overvalued
@@austintomkewitz7206 There's only one reason to sell assets you got a good price, and that is if you need cash to cover expenses. Getting back into US dollars, I am bound to lose money due to inflation - QE
When I got one I spent $50 on one of my best friends. That was it on other people. No one can force you to give it up without your permission. And money advice - I didn't do what DR would have done but that was okay. In the end I wound up in a WAY better financial place. But finding out your options is the best. But in the end make your own decision.
This was good advice. My other thought is that if he needs money to live on while in school, put himself on an "allowance" where he gets a monthly transfer to his checking account and doesn't even see the "big money." This money is enough to be a great start in life, but not enough to live on ultimately. If he is working while in school, keep working (assuming he can handle work and school.).
This kid will be set for life if he plays it correctly. Even $50k in a decent fund that starts before he's even 20 will be a very nice start. He'll graduate debt free with an emergency fund, paid for car, and a huge start on retirement 🍻
yep, 50k at 9% average growth for 40 years is 1.57m. he will be set pretty good even if he never put any extra into retirement, but ofc he should add more.
lol not set for life but ya it can help
That’s gonna take ssssoooo long by the time he gets the money he’s going to be to old to enjoy it
@@TheShahZAAM that 50k could easily be 748k-1.57m if it got anywhere from 7-9% average growth. not set for life, but certainly set for retirement.
@@Jacorriee how do you figure? 60 isnt too old to enjoy money lol. my uncle is 60 and he climbs mountains, goes on international vacations, shoots guns, rides atv's and dirt bikes, rides jetskis etc. he does anything a young person can do. also its not as if the guy isnt going to work and make money to enjoy while he is young.
most people live to 60 and its smart to plan for retirement at a young age. that is the key to becoming an everyday millionaire like so many of the millionaires featured on daves show
I have an opinion: only invest your money into things if you know how those things work. For example, if you don't know how the stock market works, don't invest your money there. If you do understand how it works, then go ahead. I don't think there's anything wrong with putting the money in a bank account or a CD and taking your time to learn how to invest. I also think it's OK if you don't invest all of your money in the stock market.
Does anyone agree or disagree with that? I'm open to suggestions.
Lol don't spend it! But I agree that finishing off school debt free is the best move.
Foreal
Agree. Pay off school and be debt free. Save some and invest in some.
Yes, the timing is perfect to use it for his education. And such a smart lad to be asking for an expert opinion on not pissing it away.
Agreed. Take care of whatever
Is needed and then go from there.
Yes, BEST thing I did was pay off my school debt w/ my first month salary & starting bonus from my first job out of college. It was the only thing I owed and it let me enjoy and invest my money at 23!
Kudos to Ramsey for giving away Ramsey+ to this student! This could have changed John's life forever
I mean it's always nice when Ramsey give things away. It's not like it costs a lot of money to begin with. It's very affordable and people are more likely to take it seriously if they pay for it
Thats a reall good answer dave make your grand father proud
Same boat, inheriting a large sum from my grandpa who worked his whole life to make sure we'd be taken car of after he died, it's so much responsibility it's scary.
I would pay off my student loans - The rest, I would immediately lock into a 3-month GIC (I'm in Canadian, American's would do "money market"). This isn't a wealth-building option and I'd miss out on a bit of compounding but that's fine. Chris Hogan recommended this the other day and I entirely agree. If you have access to the money right away you'll likely blow it. I'd need to give my brain time to adjust so I could make wise decisions.
Americans*
Holy, so glad you commented this. Without this form of clarification i would have gone my whole life thinking otherwise.
Cheers to all the people who were too poor to get student loans. What a blessing that has been!
Put all 100k in an index fund. Make 8% on it. You will have 3.2 Million after 45 years. If you spend 20k of it on college, then it will only be 2.55 Million. That is $650,000 he is missing out. The student loans, as long as they are Stafford government loans, are 5.05%. Pay off the 20k in loans over 3 years with your new marketing job. That is the more profitable decision.
One of the best Dave advises. Amount of wisdom and how he span this situation from purely mathematical and common sense (what Anthony said) and into a deeper psychological realm. Dam!
Kudos for him for seeking advice and guidance!! 👏🏾👏🏾👏🏾 Esp. at 19!!!
Great advice! Other big advice is: Don't tell people about it!! People can get uncomfortable or expect you to pay if you have way more money than them.
So true. Loser friends come out of the woodworks. "Act like its not there". Good advice but easier said then done.
I know of a few people who absolutely blew inheritances !!
Their parents were the tightest people on the planet . They did not follow suit .
Dave should introduce him to WallstreetBets🤣
OTM TSLA calls!
I wish I had a grandparent that left me money. So I have a plan to be that aunty to my niece.
Same. I don't have kids of my own so it'll go to her. Even if I have kids, I wouldn't cut her out unless something major between us happened
Have your own children.
Good kid, accepted that he doesn't know best and sought advice from someone who does, even accepted his own shortcomings. He can really go far
1. Change your degree to finance, engineering or IT.. marketing is tough industry. They laid off so many people in marketing teams and the remaining don’t make decent money and are stressed!
2. Keep a 6 month emergency fund
3. Put the rest in VOO. Max out IRA. Don’t you touch until you retire. Then, when you get a job put in more as you go. You can easily be a multimillionaire like this. Compound interest is your bff.
Congrats! 🎉
My uncle was in this exact situation. He went to college but took out student loans so he’s taking out the max 10,000 a year to pay it. That’s all he used it for and keeps it in the stock account it was in
My friend took 6 yrs to finish her bachelor's by paying cash at 19 there shoul be no rush. Glad that he have common to ask for advise.
This was EXACTLY me three years ago. Same age and amount of money. I spent some of it on education and the rest is in mutual funds until I am ready to buy a home in the next 2-3 years. Just pretend it doesn’t exist except for education or purchasing a home, you’ll be good.
Sell those mutual funds and get into ETFs. They have the same benefits with lower fees.
Also, should probably stop listening to Dave Ramsey.
I went to HS with a girl who inherited a substantial amount from her GM her senior year. She lived with her dad only and immediately bought a new Nissan 240SX...she was dead within 4 years of graduation due to drugs and alcohol
:( sad
I have a 240sx but I don’t drink or do drugs
Sounds like a made-up story
The fact that this kid is asking this question shows good responsibility at his age.
The most 19 years old are going out party and spending money like crazy.
Do not care about their financial is like dave said YOLO is for kid.
At the end of the call when Anthony makes a final comment about going ahead and buying something even like a five or $10,000 car Dave looks away to his left like didn't I just say to do nothing but pay off your college first and then go from there? And Dave made no comment supporting what Anthony said he just reiterated that it was a good question from the caller.
Yeah, I caught that too. I feel that their personalities are too much together.
He could finish school debt-free and set the rest on fire and will still be in a better position than 90% of people his age
are there any "updates" episodes? like, I listened to ramsey and here i am now 5 years later?
Lucky kid. Be thankful that you lucked into this money. Pay off your debt. Put $10,000 into savings. Put the rest into VTSAX.
Not VTSAX put it into VGT
Wow this question is extremely relatable. I inherited $96,000 at age 19. Now I am 21 years old, have no degree, and have $25,000+ in student loans. I spent $20k+ on a car. I also spent around $10k on personal computers (I got two custom built desktops, a $3000 Macbook Pro, a $1400 iPhone 10s Max, 2 pairs of headphones, airpods, and an apple watch.) I also got more expensive housing and unnecessary home goods such as a robot vacuum, expensive trash can, among other items. I probably spent a little over half of my inheritance on College expenses but the rest I just seem to have wasted. Plus student loans give the excess funds to your checking account making it seem like I can spend more money than I actually have. It really is no surprise to me that Americans struggle so badly with debt because no one teaches them about investing, paying off debt, living below your means, etc. In addition to the $25k+ in student loans I also have 4 credit cards with a total credit limit of around $30,000 so it is very easy for my spending to go out of wack and constantly be in debt. Plus most of the credit cards I own have a 20+% interest rate. I am more aware of what I have done now, but still make mistakes, and wish that I knew more about finances sooner.
bruh
My God I hope you figured out how to be not so stupid with your money. How are you doing now?
My man maxed out on CLEP, AP, and Dual Credit classes to be a junior at 19
Or he was born in sep- dec. Ill be 19 as a junior as well
I remember those times.
Hard to see beyond 19.
Hope he stays focused for at least ten years...’til that feeling of _______passes
Im 19 and my goal is to be as wise as possible before 32
@@DriftyJayy that's a great goal to have!! I'm 27 years old and man oh man do I wish I could go back sometimes lol I would have started saving much earlier. Stopped chasing boys, and read more books.
This is some solid advice.
Wow challenging experience but I hope they can learn from this so they can built it back up again
I’ll put 50k in a SP500 index fund or in QQQ ETF, and pay school for with the rest.
I suggested this in Chris Hogan’s millionaires Facebook group and got banned for a week. Chris and Dave hate hate index fund and only suggest mutual funds.
@@tanpham7411 Yes, they don't get their cut if people buy index
@@perotal What do you mean by they don't get their cut?
Faith They made money by referring people to investment professionals that handle mutual funds. Therefore they do not suggest people investing into index funds.
Tan Pham Yep, Mutual funds are the worse way to invest your money because is actively managed, I follow the advice of Warren Buffet to just put money in a passive Index Funds that track the SP500, I use FXAIX personally because it has low turnover and the expense ratio is dirt cheap.
You know.. Anthony was giving him solid advice.. Dave though... there is difference between arrogance and confidence. “Remain scared”, “Best program on money on the planet”, “don’t be stupid”.. I mean.. Dave has one mode and most of the time it’s not especially helpful. He should spend the same energy updating his material for his program.
This is some great advice.
Terrible advice, actually. Putting the 100k immediately in the market generates statistically better returns than the interest in loans. Taking out student loans is better.
Once all debt is taken care of I feel it is important to find a good investment advisor that takes you seriously even if you only have a little money left to invest.
Out of sight out of mind. Lock it up and put a plan in place
He should find another way of paying off the student loan and place the 100k in a trust fund to invest later on in blue chip stocks or mutual funds. Treat the money like a windfall, pretending that it isn't there.
I wish you were around when I got a workers comp pay out. I was not 100% smart with the money. Invested nothing & I still kick myself over it.
I feel most of these type of calls will end up fine if you have 100k and you’re scared of it it won’t go anywhere
Really good for him. Fair to say most 19 year olds would blow it.
Probably the worst time to get an inheritance... For most its going to completely sap their motivation to work
My inheritance made me mature almost over night, realizing I had my dads legacy at stake.
Maybe if he got millions of dollars or something.
@normanreeves3536 my man!! 🤝
First rule about getting any monetary windfall. Keep your lips zipped.
Findca way to use it to acquire a high income skill, then you'll be making that 100,000 per year or half- year or month
With copytrading, you could be sipping coffee on a balcony overlooking a bustling city skyline or lounging on a pristine beach, all while your investments work for you. Picture the freedom to pursue your passions, travel the world, and create lasting memories with your loved ones, all because you took the initiative to harness the power of copytrading and build the life you've always dreamed of
Tell me about it. My 401k? Practically useless right now. I’ve got over $500k in there, but with everything going on, I’m wondering if I should just cash out and figure something else out. I’m getting closer to retirement, and the idea of relying on that fund is stressing me out.
Keep it simple, buy things you understand, take some risk but don't try to shoot the lights out. I currently have 75% SCHD and 25% ROTH IRA. Brokerage account is 40% VOO, 35% SCHD, 25% XLK. Combine balance ~$3.3m Less than 3 years until retirement.... I have about 400k in cash. My portfolio has yielded far more than I expected for my retirement. Kudos to my advisor. I could leave you a lead if you need help...
@@ReginaldsKeiths I will be glad if you do . Thanks!
*CATHERINE PELICAN DIANE* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
@@ReginaldsKeiths
Great , I will do that now . Thanks for sharing
What a great advice !!
By not spending it invest and save for the future
As a, 20 year old, father of 4 baby girls, I love you Dave
Invest in condoms.
Josue Ordaz The babies were intentional lol
Pray we get a boy next
@@giovannicortez4448 Sorry to be nosy but what do you do to be able to have 4 kids intentionally at 20?
Wow great advice!
invest the 100k and dont touch it for 40 years and you could have 4.5m...
sure 100k doesnt sound like much, but if he leaves it invested until retirement then his retirement is already funded.
This is why you don't listen to Dave Ramsey. 60k initial investment is 2.7 million over 40 years. 100k is like you said around 4.5. The interest rate on the student loans is irrelevant.
@@BadMannerKorea yep, i 100% agree. he should just get a job and pay off the student loan with that income and invest the full 100k
It wont be nowhere near 4.5M in 40 years. That would be 10% increase each year. 1.5M is more realistic with 7%. Still a good headstart though.
Rouhunaattori The average over decades is 10%. Even 7% there’s still no reason to pay off the loans.
@@BadMannerKorea I agree, no reason to pay off the loans with lower %. However, the increase in networth at 10% compounded annually does not take inflation into consideration which is why I usually calculate with 6-7%
1. pay off 11k student loan; 2. 3-6 month emergency. 3. cash flow college 4. max out your retirement. 5 invest,
Make sure to max out your Roth with that tax-free inheritance. No tax in; no tax out.
Im 25 inherited over 400k at 18 and I only spent 50k living life .
Don't tell anyone.
Get into the habit of living well below your means - pay off high interest debt first, and stick a big chunk of it in a roth IRA, then savings account. Keep emergency buffer.
Technically he can’t use inheritance for a Roth IRA though right? Although if he has a part time job he can prob show he has a few thousand in income to use. Just thinking about 5 decades of compound interest on say $25k is mind boggling. He could turn that into a million dollars and never contribute another dime after age 19...
I don't like it when Dave takes over the discussion from Anthony when he was providing excellent advice. Dave needs to do a better job of letting his team provide advice and then when they are done add a few new comments. Dave's advice was excellent, but Anthony was doing great, and it looked like Dave just wanted to take over.
If I had this money (19yr old here too) I would pay school off to be debt free,max out my Roth each year and match a 401k, put the rest in a high yield savings account
Makes me feel like a failure im almost 21 and no where near able to move out
If you're 20 and listening to Ramsey just start putting money into a roth. Look up a calculator you'd be amazed. Plus it builds character.
Then stop being a failure and do something about it
Your life is nowhere near over either! I wish I were 21 again, even being nowhere near moving out you have options. Devise a plan and stick to it. Save your money and vow to yourself that when you're 31 you will still have some of the money you made when you were 21,22,23...etc. It's not what you make, it's what you KEEP. Your life has only just begun.
people who have everything handed to them blow it plenty of times dont worry about anybody else
I don’t think I would ever pass down that amount of money without first putting it into a trust
It might not have been a lot to the grandfather he could have a 10 million net worth.
K S I know, but a kid can be their own worst enemy with that amount of money. He might not get another chance
@@ThePricklyash Yeah you are right he could have said 35k right away for college 35k at graduation and rest 30k at 30 years old. You are right about people blowing it.
I really enjoy all of your content, can’t wait till more! U inspired me to make my own channel about finance, stocks, business, real estate and more! I’m 13 with about $1700 in stocks
Can you not join Ramsey+ if you live in Australia? Is it just a USA program?
Great advice and also very helpful! Maybe I should have that in my next VIDS 👍
INVEST IN YOUR SELF MY DEAR
1. Pay off all your loans
2. Finish school debt free
3. Save a chunk for your emergency fund
4. Dump all the rest in the s&p 500 index
5. ?????
6. PROFIT!
Just don't be a simp. You will blow your money fast for next to nothing. NO SIMP SEPTEMBER.
Remember when we were 19?
@@tdgdbs1 I was the biggest simp in my neighborhood. Would be a very rich man now if I wasn't simping so much.
@@untouchable360x Simping as in, giving your money away to women because you think that gets you something?
BadMannerKorea not even that you would get something if your simping you probably already got some and got stuck 😂😂
He is gonna spend it on only fans guaranteed.
AND get yourself together before getting into a serious relationship. Don’t be telling people you have this money.
Go Anthony!
Nice to see that not all trust fund babies are completely detached from the real world.
I went to Dave Ramsey website under tools and checked the investment calculator. If this young man makes an investment of $65k and gets 12% at retirement he will have $20 million dollars.
pay for college, 3 mouth emergency funds, invest the rest, and then start putting money form you job into your 401l and i 7 years if he add to it, he could have a HUGE down payment on a house, and money for retirement
Pay for college, set up emergency fund, invest the rest. You will be way ahead of everyone else when you enter the working world.
Anthony was 100% on the money. Id also set aside 10k for car expenses and possible replacement and invest the rest.
Definitely good money, but like Dave said you could blow that easily with a couple nice cars. If it were me, I'd be taking cash dividends every month from it - roll it back in if you can, $400 - $500 a month is great passive income for basically zero work.
i would say maybe $100 a month, but if i was him i would just invest it all for 40 years and have 4.5m at retirement age. sure there is the argument hat he could die before 60, but most people dont. id rather have 4.5m at retirement rather than having an extra $500 a month for 16 years or so.
@@Big-Government-Is-The-Problem
$80,000*0.06 = $4800 a year, minus taxes of course, and it's not hard to bear 6% with some good income ETFs.
@@Scorpiomaj27889 yep, id prefer to just leave it all invested and make my own success but know that my retirement is already funded if i messed up somewhere along the way.
Huh, I was in the same position 10 years ago when my mom passed in 8th grade. Good thing I did what he said. I graduated debt free from college with 30k left in savings this year. Now idk what to do next besides growing my net worth! Maybe I should max out a Ross IRA each year?
Yes max it out and just start investing in index fund , etc
Number 1 rule don’t spend if u don’t need to!
how can I get those classes in similar situation
I wish I had that opportunity 😭
I would invest in a duplex rental property
set at least 5k to 10k to play with lol he's young so he should enjoy some of it at least. just don't overdue it. you're only young once
That’s a lot of money to throw away
@@bonsaikiss not compared to 100k. as I said in another comment he should start up a business and or buy property to rent out
Antonio ok that’s not realllllly playing with it. Good choice
The kid needs to read rich dad poor dad
concur
that is total opposite of dave ramsey
LOL
Or a Business School Degree at Yale
Robert uses debt as a tool, Dave doesn't
Get a job, work maybe 15-25 hours a week, and use that money first to cover debt & living expenses, anything else, then you use the $100k
Buy a 911 Turbo S. used of course. Dave would approve.
I hope it is $100,000 flat after taxes.
A Security Guard that money has already been taxed so it’s 100,000 flat
@@kellys3515 ok cool cool
I didn't think inherited money was taxable.
JoeAceJR well good for you but the irs is gonna have some questions regardless
JoeAceJR because usually it’s gonna be transferred by bank account.. and it’s all tracked and reported at that amount....unless he’s leaving you 100k in cash. That’s a different story.
$100k in South Carolina. One lucky kid..
without even watching im gonna say you pay off any debts, invest the rest and act like youre still broke. because you are, 100k is hardly a drop of piss in the bucket these days
I read the title and thought *just don't spend it* hahah