Hey fam, thanks for tuning in! Congratulations to Vanessa Akeredolu on winning the Clever Fox Budget Planner (You'll hear from me soon)!! So what are your thoughts on this video?
With ya on this completely! Good friend of mine always said "Eat the chicken and toss the bones!" DR has some good strategies... but we have to be careful not to take what he says as gospel... NOT gospel. Have a great week! (I LOVE the blue blouse with your hair!!). ~k
Exactly! It's easy to fell in the trap of taking someone's viewpoints/system as infallible when the truth is, there's more than one way that works for pretty much everything.
Yes! I feel like I can't say anything against him because people think I'm putting down a fellow Christian when I'm just trying to point out that his very public behaviour is not a good look for Christians and that some of his advice is not considered smart by many other finance people.
I really dislike when Dave would take calls from other countries, like Canada's financial system is not the same as America so I would hate it when he would give his Dave advice and the financial legal specifics in another country have other options. i.e student loans in Canada can be included in bankruptcy if you've been out of school for 7 years.
I totally agree with you! No financial person can be an expert in every country, so it is our responsibility to stay in our lane (i.e. in our country) when it comes to giving financial advice.
One of the things that I don't agree with is to stop all investment until you're debt free. Compound interest is the BEST and depending on the amount of debt one has it could take 5+ years to pay it off. Also, if one work in government then it's mandatory to contribute to the retirement account. I work for a local government and we have a pension and the City contributes 27% of my gross income per pay while I put in 6% and can't choose to opt-out of this but why would I. Also, while following his first 2 steps one car emergency cost me almost $2,000 which was double what my starter emergency fund was. So after that I was like yeah naw $1,000 is not enough.
Yes, a lot of people find that $1,000 is not be enough for them. Even when I was first starting, I never told people they had to STOP at $1,000 be life be life-ing. We actually started with $3k then moved up to $5k because that made my husband more comfortable.
Oh yeah, the advice is universal 95% of the time, but Christian women leaders and entrepreneurs are simply who I am called to - and I'm not embarrassed by that truth.
in Canada there are two registered investment account types that give you a government match, they are the RESP registered education savings plan and the RDSP - registered disability savings plan. For 2021 I deposit $3,500 and got a government match of $11,500.00, for 2022 I deposit $4,800 and I'm waiting on my government match of $10,500. if I followed Dave Ramsey being in Canada. I would lose out on that government match. So Dave Ramsey advice hurts a lot family situations with pause investing.
Absolutely! I understand that he's trying to use a psychological trick to make the pain of being in debt feel so bad that you're willing to live miserably to get out of that debt, but I've learned that this only works on people for a few months. After a few months, they will sit down, do the math and realize that there is a less miserable option to achieving the same goal (even though it will take more time).
@@selahmoney and Gail teaches, It can be done in 3 years or less, after 5 years she recommends other options like maybe bankruptcy or a consumer proposal and you don't have to sacrifice eating beans and rice. If you spend all your cash on take out, you have to figure it out is her approach.
Minnie you seem to suggesting more generous matches than what they are. The Canadian government matches 20% on the first $2,500 contributed annually to an RESP, to a maximum of $500 per beneficiary per year. The lifetime maximum per beneficiary is $7,200, up to age 18. For a RDSP, one may contribute the amount required to receive the maximum Canada Disability Savings Grants (CDSG) every year. Depending on the family net income of the beneficiary and contribution amount, the yearly maximum CDSG could range between $1,000 to $3,500. Generally, if you contribute up to $1,000 each year to the RDSP , the government will deposit $1 for every $1 you contribute. To get the maximum amount of grant you are eligible to receive for the year, you need to contribute $1,000 in the year. Care should be taken with both RESPs and RDSPs as they have specific purposes and are subject to strong anti-avoidance (tax evasion) rules if used improperly. My family used an RESP to save for our sons' educations and it worked out well. Both graduated university without student loans. Through all the years we saved to the RESP, we needed to be aware the money would not come out tax free if the boys didn't pursue post-secondary education. It would have been real shitty to have to take it out and have to pay tax on the proceeds of all the grants & their growth simply because the kids couldn't use it for educational expenses.
I have the RDSP and I document my financial journey using the RDSP on my channel, I'm well aware of how the RDSP works I don't need YOU an outsider explaining to me what financial responsibilities I have with my government. @@rossmacintosh5652
I'm following what is required of me for holding the RDSP based on the RDSP statement of entitlement did you find them when you were copying and pasting this. @@rossmacintosh5652
They act like people are so simple minded, we cant possibly do more than one thing at a time. How in the world could i possibly pay off a credit card AND investing in a 401k?! 😱
Check out clark howard. He is the real deal. I used to like dave... and then I started to listen to clark... and I realized how limited and almost dishonest ramsey is
Hi I am so glad you mentioned your concern about only a $1,000 emergency fund. Most emergencies probably are less than $1,000 but unexpected car problems/ repairs and medical bills can be way higher than $1,000.
They absolutely can and I've seen how having only $1,000 saved wasn't enough for some people because of health history, where they live and vehicle needs. So based on that experience helping my clients, I had to change that mindset.
Maybe, I am old schooled. I lowered my 401K to focus on getting out of debt. Debt is a NIGHTMARE!!! “You’re NOT bashing and you’re NOT hating” Funny! You said $1000.00 wasn’t enough, but did you say what was a good amount. I am yet to hear Dave bash anyone.
It a psychological trick. Works for some to put a 🔥 under their buns, but for many people, it doesn't add enough to their budget to make a worthwhile difference.
There are more technical things you can do that deviate from the Ramsey program/ baby steps program to maximize your returns in the growth on your money, sure, I wouldn't argue that. Having said that, they do not argue that stopping the 401k match and focusing instead on the debt is a technical or mathematically optimal decision. You have to recognize that the whole point of the Ramsey program is a response to being in debt and feeling like a slave to money or the lender. The whole point of the Ramsey program isn't just a balance of budget, it still live in financial peace. To a lot of people, financial peace does not mean you are maximizing the return on your money or building your future wealth as high as it can possibly go. To many, including myself, financial peace means you do not live with any stress related to money, you do not feel like you can lose something due to a lack of money, you do not fear the future from a financial perspective. Financial perspective. In order to do this, you need to not owe money to anyone and you need to have the security of knowing that what you have is yours and that no one can take it away from you due to a lack of funds. A lot of people live not just paycheck to paycheck but with a lot of debt. And because of this, many people do not take advantage of the 401k match in the first place or at least they are not maximizing it. It also doesn't take into account the time frames involved in a person's particular circumstances. Such as how much debt, how much money is going into your 401k and the company match, how long will it take you to pay off the debt you have, how stressed by the concept of debt are you and how much is it robbing your life if it is at all? Things like that.. If you are the type of person who will calculate how long it will take you to pay off debt, and you don't put a higher priority in financial security and being debt free versus building your wealth as high as it can go, venture there are better things that you can do and you might get more optimal returns on your money. But if you were able to do that and change the plan around to make better investments/ get better returns on your money, then those are discretionary funds and it's not really applicable to the Ramsey programs primary demographic. The Ramsey program does not claim to be the best possible way to invest/ grow money. It doesn't even claim to be the best way to build wealth. It claims to be the fastest and most easy to follow away to become financially free and to live in financial peace. It is focused most on the people who are crushed by financial stress, debt, fear, anxiety that come from being in debt and giving all your power away to money. Money. And I think the value of a psychological trick that gets someone motivated to complete that stuff is very valuable. For the type of person who is not insanely motivated right off the bat, removing the idea of the 401k match, assuming they were even maximizing it in the first place, will motivate them to get the debt paid off as fast as possible so that they can move on past that and give more to the 401k than they were. Were. That right? There is the whole basis of the baby steps being in the order that they are. I think the big thing to pay attention to is the fact that the Ramsey program is not really aiming at the type of person who has discretionary money that they can use to make better investments who are seeking higher returns and who are actively managing those returns in a way that would produce higher yields. And instead, the type of person who really needs the Ramsey program is someone who needs something that is easy to follow, where it's primary goal is to just get out of debt and stop the bleeding so that you can live in financial peace, remember, these are the type of people who are not managing their money and have no financial education to begin with which is why it can actually be dangerous to suggest for this type of person that they deviate from that plan because they are just not disciplined or educated enough to deal with their money in the first place. At the end of the day, for someone who has the primary focus/ goal of simply getting out of debt and not being financially insecure, the Dave Ramsey program is great. We can't forget that there is great value in things that are easy to follow. While some of us are disciplined, many people simply are not and need something that is easy to follow, easy to execute, and that is statistically likely to work for them. For them. There is no doubt that the baby steps work for those goals. Anyone who is disagreeing with the baby steps due to the fact that they can produce higher returns by managing their money in different and more intentional ways. I say, that's really great that you are there at that point in your life and I think people who are beginning the Dave Ramsey program should look up to people like you and they should seek to get to that point themselves. But this is more about behavior. And conditioning and the best possible thing that people can do is to live a life that is peaceful and free of financial stress. Once they're in that place they can begin looking for ways to maximize the return on their money so they can build that nest egg up and put as much towards there 401ks as possible because they won't have all that debt and interest eating up all their money and robbing their quality of life.
I disagree with you on the Emergency Plan. Having a Thousand Dollars, is a start. Dave said pay off the debts? Can you sleep if you have debts and watch the charges of interest every month on your statement! That’s a ball of anxiety. I like the Avalanche method better. However, I totally understand the rationale for the SNOW BALL method, which makes sense to the psychological effect on seeing the bills vanished. I personally do NOT believe in the 401K. I don’t like it. I do have it.
I’m not a fan of Dave Ramsey but his baby steps are common sense with a great marketing package so I see why people buzz about it. My issue with paying into a 401k even when there is a match vs. paying back debt is purely ethical in nature because I am a Christian and for me Christian principles will always trump employer matches. When you have debt, it is because you spent money that belongs to someone else. As humbling as it is, as a Christian, I have a moral obligation to pay that person/entity back before I pay myself. I am 50 and just now investing money toward retirement because I spent 15 years paying off medical and living expense debt in addition to student loans I needed to start a new career after coming off permanent disability. I know that I won’t retire with the same nest egg that other people will but I did right by God.
My honest opinion! I think we should allow people to encounter their views and what might be their perception of problem. You said Dave’s Channel helped you. Right?! I fell in that trap once before and it’s just not good. I don’t need to hear anything about what Dave does to shape my mind on the view of “Christians.”
He spends way too much time talking to and about his imaginairy friend. He also brandished a handgun at a board meeting, sacked a woman for being pregnant out of wedlock.
After almost 10 years following, I get there some gray areas, but principles work.. if you have some other risks in your life, it is ok to add to your emergency fund because you already know it is a possibility. Dave mentioned that. is up to you. When he suggest to stop 401k is in a really bad scenario where you need cash available, considering is a temporarily.. On the 12% reference.. he also mentioned that only half is true.. you still end in a very good place...
If I remember correctly, he's basing that on the 12% returns assumption. However, since most people aren't seeing that level of return on their investments, you're right... 10% is too aggressive for most people.
I believe that’s the main issue. It’s the “this is the only right way” attitude that is a turn off. My family some of his advice years ago. I think he has good advice, but there are also many other ways to get debt-free.
This is bad advice too ,paying taxes on your 401klater on when taxes are higher and you’re in a higher tax bracket just wipes away that company match …401k is a scam
Being debt free is a psycilogical thing . I agree with him , because if f it was a math issue , then you probably would not be in debt in the 1st place . I disagree wiith the anount hhat he says to have withheld for income taxes . Because if there is ever a need for an extension , the interest and penalties probably won't be a factor .
Hey fam, thanks for tuning in! Congratulations to Vanessa Akeredolu on winning the Clever Fox Budget Planner (You'll hear from me soon)!! So what are your thoughts on this video?
With ya on this completely! Good friend of mine always said "Eat the chicken and toss the bones!" DR has some good strategies... but we have to be careful not to take what he says as gospel... NOT gospel. Have a great week! (I LOVE the blue blouse with your hair!!). ~k
Exactly! It's easy to fell in the trap of taking someone's viewpoints/system as infallible when the truth is, there's more than one way that works for pretty much everything.
Yes! I feel like I can't say anything against him because people think I'm putting down a fellow Christian when I'm just trying to point out that his very public behaviour is not a good look for Christians and that some of his advice is not considered smart by many other finance people.
I really dislike when Dave would take calls from other countries, like Canada's financial system is not the same as America so I would hate it when he would give his Dave advice and the financial legal specifics in another country have other options. i.e student loans in Canada can be included in bankruptcy if you've been out of school for 7 years.
I totally agree with you! No financial person can be an expert in every country, so it is our responsibility to stay in our lane (i.e. in our country) when it comes to giving financial advice.
One of the things that I don't agree with is to stop all investment until you're debt free. Compound interest is the BEST and depending on the amount of debt one has it could take 5+ years to pay it off. Also, if one work in government then it's mandatory to contribute to the retirement account. I work for a local government and we have a pension and the City contributes 27% of my gross income per pay while I put in 6% and can't choose to opt-out of this but why would I. Also, while following his first 2 steps one car emergency cost me almost $2,000 which was double what my starter emergency fund was. So after that I was like yeah naw $1,000 is not enough.
Yes, a lot of people find that $1,000 is not be enough for them. Even when I was first starting, I never told people they had to STOP at $1,000 be life be life-ing. We actually started with $3k then moved up to $5k because that made my husband more comfortable.
Your insight is wonderful. It's a blessing for everyone, not just Christian women.
Oh yeah, the advice is universal 95% of the time, but Christian women leaders and entrepreneurs are simply who I am called to - and I'm not embarrassed by that truth.
@@selahmoneywow. She didn’t say you should be…..
in Canada there are two registered investment account types that give you a government match, they are the RESP registered education savings plan and the RDSP - registered disability savings plan.
For 2021 I deposit $3,500 and got a government match of $11,500.00, for 2022 I deposit $4,800 and I'm waiting on my government match of $10,500. if I followed Dave Ramsey being in Canada. I would lose out on that government match. So Dave Ramsey advice hurts a lot family situations with pause investing.
Absolutely! I understand that he's trying to use a psychological trick to make the pain of being in debt feel so bad that you're willing to live miserably to get out of that debt, but I've learned that this only works on people for a few months. After a few months, they will sit down, do the math and realize that there is a less miserable option to achieving the same goal (even though it will take more time).
@@selahmoney and Gail teaches, It can be done in 3 years or less, after 5 years she recommends other options like maybe bankruptcy or a consumer proposal and you don't have to sacrifice eating beans and rice. If you spend all your cash on take out, you have to figure it out is her approach.
Minnie you seem to suggesting more generous matches than what they are. The Canadian government matches 20% on the first $2,500 contributed annually to an RESP, to a maximum of $500 per beneficiary per year. The lifetime maximum per beneficiary is $7,200, up to age 18. For a RDSP, one may contribute the amount required to receive the maximum Canada Disability Savings Grants (CDSG) every year. Depending on the family net income of the beneficiary and contribution amount, the yearly maximum CDSG could range between $1,000 to $3,500. Generally, if you contribute up to $1,000 each year to the RDSP , the government will deposit $1 for every $1 you contribute. To get the maximum amount of grant you are eligible to receive for the year, you need to contribute $1,000 in the year.
Care should be taken with both RESPs and RDSPs as they have specific purposes and are subject to strong anti-avoidance (tax evasion) rules if used improperly. My family used an RESP to save for our sons' educations and it worked out well. Both graduated university without student loans. Through all the years we saved to the RESP, we needed to be aware the money would not come out tax free if the boys didn't pursue post-secondary education. It would have been real shitty to have to take it out and have to pay tax on the proceeds of all the grants & their growth simply because the kids couldn't use it for educational expenses.
I have the RDSP and I document my financial journey using the RDSP on my channel, I'm well aware of how the RDSP works I don't need YOU an outsider explaining to me what financial responsibilities I have with my government. @@rossmacintosh5652
I'm following what is required of me for holding the RDSP based on the RDSP statement of entitlement did you find them when you were copying and pasting this. @@rossmacintosh5652
They act like people are so simple minded, we cant possibly do more than one thing at a time. How in the world could i possibly pay off a credit card AND investing in a 401k?! 😱
Check out clark howard. He is the real deal. I used to like dave... and then I started to listen to clark... and I realized how limited and almost dishonest ramsey is
Will do! I love listening to other financial people!!
Hi I am so glad you mentioned your concern about only a $1,000 emergency fund. Most emergencies probably are less than $1,000 but unexpected car problems/ repairs and medical bills can be way higher than $1,000.
They absolutely can and I've seen how having only $1,000 saved wasn't enough for some people because of health history, where they live and vehicle needs. So based on that experience helping my clients, I had to change that mindset.
Maybe, I am old schooled. I lowered my 401K to focus on getting out of debt. Debt is a NIGHTMARE!!!
“You’re NOT bashing and you’re NOT hating” Funny!
You said $1000.00 wasn’t enough, but did you say what was a good amount.
I am yet to hear Dave bash anyone.
Starts at 5:00
Thank you 🤝
Sorry about that - I've learned to shorten my intros for this very reason.
I love clever fox budget planner. It has helped get on track with my finances. 💕
Absolutely! It's worth every penny!! Welcome to the channel, BTW!!
The stopping the 401k match is the reason I never took his baby steps seriously.
It a psychological trick. Works for some to put a 🔥 under their buns, but for many people, it doesn't add enough to their budget to make a worthwhile difference.
There are more technical things you can do that deviate from the Ramsey program/ baby steps program to maximize your returns in the growth on your money, sure, I wouldn't argue that.
Having said that, they do not argue that stopping the 401k match and focusing instead on the debt is a technical or mathematically optimal decision. You have to recognize that the whole point of the Ramsey program is a response to being in debt and feeling like a slave to money or the lender. The whole point of the Ramsey program isn't just a balance of budget, it still live in financial peace. To a lot of people, financial peace does not mean you are maximizing the return on your money or building your future wealth as high as it can possibly go. To many, including myself, financial peace means you do not live with any stress related to money, you do not feel like you can lose something due to a lack of money, you do not fear the future from a financial perspective. Financial perspective. In order to do this, you need to not owe money to anyone and you need to have the security of knowing that what you have is yours and that no one can take it away from you due to a lack of funds. A lot of people live not just paycheck to paycheck but with a lot of debt. And because of this, many people do not take advantage of the 401k match in the first place or at least they are not maximizing it. It also doesn't take into account the time frames involved in a person's particular circumstances. Such as how much debt, how much money is going into your 401k and the company match, how long will it take you to pay off the debt you have, how stressed by the concept of debt are you and how much is it robbing your life if it is at all? Things like that..
If you are the type of person who will calculate how long it will take you to pay off debt, and you don't put a higher priority in financial security and being debt free versus building your wealth as high as it can go, venture there are better things that you can do and you might get more optimal returns on your money. But if you were able to do that and change the plan around to make better investments/ get better returns on your money, then those are discretionary funds and it's not really applicable to the Ramsey programs primary demographic. The Ramsey program does not claim to be the best possible way to invest/ grow money. It doesn't even claim to be the best way to build wealth. It claims to be the fastest and most easy to follow away to become financially free and to live in financial peace. It is focused most on the people who are crushed by financial stress, debt, fear, anxiety that come from being in debt and giving all your power away to money. Money. And I think the value of a psychological trick that gets someone motivated to complete that stuff is very valuable. For the type of person who is not insanely motivated right off the bat, removing the idea of the 401k match, assuming they were even maximizing it in the first place, will motivate them to get the debt paid off as fast as possible so that they can move on past that and give more to the 401k than they were. Were. That right? There is the whole basis of the baby steps being in the order that they are. I think the big thing to pay attention to is the fact that the Ramsey program is not really aiming at the type of person who has discretionary money that they can use to make better investments who are seeking higher returns and who are actively managing those returns in a way that would produce higher yields. And instead, the type of person who really needs the Ramsey program is someone who needs something that is easy to follow, where it's primary goal is to just get out of debt and stop the bleeding so that you can live in financial peace, remember, these are the type of people who are not managing their money and have no financial education to begin with which is why it can actually be dangerous to suggest for this type of person that they deviate from that plan because they are just not disciplined or educated enough to deal with their money in the first place.
At the end of the day, for someone who has the primary focus/ goal of simply getting out of debt and not being financially insecure, the Dave Ramsey program is great. We can't forget that there is great value in things that are easy to follow. While some of us are disciplined, many people simply are not and need something that is easy to follow, easy to execute, and that is statistically likely to work for them. For them. There is no doubt that the baby steps work for those goals.
Anyone who is disagreeing with the baby steps due to the fact that they can produce higher returns by managing their money in different and more intentional ways. I say, that's really great that you are there at that point in your life and I think people who are beginning the Dave Ramsey program should look up to people like you and they should seek to get to that point themselves. But this is more about behavior. And conditioning and the best possible thing that people can do is to live a life that is peaceful and free of financial stress. Once they're in that place they can begin looking for ways to maximize the return on their money so they can build that nest egg up and put as much towards there 401ks as possible because they won't have all that debt and interest eating up all their money and robbing their quality of life.
I disagree with you on the Emergency Plan. Having a Thousand Dollars, is a start. Dave said pay off the debts? Can you sleep if you have debts and watch the charges of interest every month on your statement! That’s a ball of anxiety. I like the Avalanche method better. However, I totally understand the rationale for the SNOW BALL method, which makes sense to the psychological effect on seeing the bills vanished.
I personally do NOT believe in the 401K. I don’t like it. I do have it.
Skip to substance @5:45
I’m not a fan of Dave Ramsey but his baby steps are common sense with a great marketing package so I see why people buzz about it.
My issue with paying into a 401k even when there is a match vs. paying back debt is purely ethical in nature because I am a Christian and for me Christian principles will always trump employer matches.
When you have debt, it is because you spent money that belongs to someone else. As humbling as it is, as a Christian, I have a moral obligation to pay that person/entity back before I pay myself.
I am 50 and just now investing money toward retirement because I spent 15 years paying off medical and living expense debt in addition to student loans I needed to start a new career after coming off permanent disability. I know that I won’t retire with the same nest egg that other people will but I did right by God.
My honest opinion!
I think we should allow people to encounter their views and what might be their perception of problem. You said Dave’s Channel helped you. Right?!
I fell in that trap once before and it’s just not good.
I don’t need to hear anything about what Dave does to shape my mind on the view of “Christians.”
He spends way too much time talking to and about his imaginairy friend. He also brandished a handgun at a board meeting, sacked a woman for being pregnant out of wedlock.
@@em7937 No-brandishing a handgun at a borad metting is not acceptable.
Didn't she sue? And the pig Hogan got the boot. Too dangerous for their brand.
Your hair color is very nice, very warm.
Congratulations Venessa
After almost 10 years following, I get there some gray areas, but principles work.. if you have some other risks in your life, it is ok to add to your emergency fund because you already know it is a possibility. Dave mentioned that. is up to you. When he suggest to stop 401k is in a really bad scenario where you need cash available, considering is a temporarily.. On the 12% reference.. he also mentioned that only half is true.. you still end in a very good place...
I do agree with paying off the mtg asap the payment to the lender is yours now added with peace of mind , then pay that same payment to your self
I think his 10% withdrawal rate in retirement is too aggressive
If I remember correctly, he's basing that on the 12% returns assumption. However, since most people aren't seeing that level of return on their investments, you're right... 10% is too aggressive for most people.
I’m finding Ramsey followers to be highly judgemental. Like dogmatic and mean. That’s turning me off even though I follow some of his plan.
I believe that’s the main issue. It’s the “this is the only right way” attitude that is a turn off.
My family some of his advice years ago. I think he has good advice, but there are also many other ways to get debt-free.
Yes, I found him very toxic.
I'd love to see him get kicked out of a restaurant. "Sorry, I don't approve of your lifestyle, get out."
This is bad advice too ,paying taxes on your 401klater on when taxes are higher and you’re in a higher tax bracket just wipes away that company match …401k is a scam
Being debt free is a psycilogical thing . I agree with him , because if f it was a math issue , then you probably would not be in debt in the 1st place .
I disagree wiith the anount hhat he says to have withheld for income taxes . Because if there is ever a need for an extension , the interest and penalties probably won't be a factor .
The employer match contributions on 401 k actually a thing of the past almost non existent actually
Dave Ramsey is maga Elon Musk maga.
Whew - that's a whole 'nother conversation!
Exactly, total turn off and he’s rude af