Why I Stopped Listening To Dave Ramsey
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- čas přidán 3. 05. 2024
- Stop Listening To Dave Ramsey.. Why I Don't Follow Dave Ramsey Anymore
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Your name is Babe Guilt
You guys are not listening to him at all, sad!
I saw somewhere that Dave Ramsey’s advice is great for people who are bad with money and not so great for people who are good with money. I feel like that rings true and is why he is able to help so many people with his methods.
For sure… though I like Dave and credit my hunger to be better because of him, his method deals way more with the psychology and getting out of habits rather than being mathematically logical, to your point.
Agreed. Dave's method is suitable for people who need to be hand-held and get out of debt, then build up reserves SLOWLY. Frankly, some of his advice is a bit simplistic. As Gabe pointed out, his one-size solutions does not fit all.
Ramsey is a terrible person.
Exactly, I might be wrong, but for me this was obvious : Dave Ramsey is trying to help people who may not want (or may not want yet) to be extraordinary with money, but just be good enough/kinda good at it.
I thought it was obvious in his book, too (at least the one I read).
P.-s : And for me he also made clear that the goal is not to be "mathematically correct" with your money when your struggling with it, but rather "motivated" (which I think is true)
That seems true it's great for a ton of people especially when they are getting started
This was such a fun video for my husband and me to watch together. We paused it several times throughout so we could talk over certain points. He is more strategically minded like you, and I tend to appreciate the peace of mind that Ramsey’s plan offers. We’re finding the right balance as we go along. Great points - well done! 👍
I'm with you. There is absolutely no better plan or feeling knowing you are completely debt free. The Ramsey plan works! People just think their plan is better. That is until it isn't. And then they're the next caller on his show.
Great point about the differences between men and women (general statement, I know, but mostly true). My wife also likes the peace of mind so as long as I write out "the plan" and potential options if things hit the fan, she's totally on board with taking some calculated risks.
That's awesome! There is no perfect plan for everyone it's great to look at different ideas and find the best plan for you
@@ONLY1KUDWE Most people are true believers in at least something.
I am investing 67% to hit freedom in 2029! Can’t wait. I got there by following Dave’s baby steps so it works to get out of debt but then it’s flawed.
Good video. We've been debt free for over 15 yrs and I will say that knowing you owe no one is freeing and liberating. Not to mention way less stress so that's worth a whole lot in my eyes.
Except when they be like you owe us $6000 in annual property taxes
@@raiden031 right you are! It's ridiculous what's happening w prop taxes😱
@@floridanativelh568 I think people who reach 65 or retirement should not have to pay property tax :)
@@Brad-uu3xm That would be fantastic and you'd think there would be some sort of relief at some point!
@@Brad-uu3xmWell that sounds great but let's go for only have to pay half cuz they/government would never let that happen which wouldn't happen either. Nice to dream though.
I've whittled down many expenses, focused on needs vs wants, removed debt (other than 4% mortgage), paid for a cheap car in cash, cook my own food and much more. I am now able to save & invest 86.14% of my income. I live way below my means. After making these adjustments, I was able to save 50k for an HYSA emergency fund, max out 401k, max HSA and ROTH IRA. Most importantly I took on another job and increased income. It took some time & adjustments but I did it and not stopping. I'm tired.
Are you at least happy? Seems like that should be a focus rather than having your world center on your net worth.
@@TheSwedishSousChef very happy. In 2020 I was diagnosed with a brain tumor and recovered after surgery. I am grateful to survive and happy with life overall. Health is wealth.
Great job, can I ask what your income is and how you arrived here?
Ditch the 401k if you are able. If not, stop contributions. Converting it to a Roth? Good option [maybe best], if available - try to avoid AMT during conversion(s). The required minimum distributions in a 401k force taxable income events on you with no controls. Markets swing, and as we all know... selling on bottom locks in losses. Government locks you out of proper investor behaviors on the back end. This will happen, and there is no recovery from such event in retirement. Maybe you can serve expenses with 1% the first 8 years of retirement to extend your nest eggs value? Tough: 4% is coming across the table whether you like it or not - and they will lump social insecurity into the mix to make sure you pay extra taxes to boot.
Absolute worst case scenario I think is this: next big financial crisis, congress will do alot of rule changing. A "qualified" plan just might be required to be in 30% bonds [or some such]. They might call it the Retirement Stabilization Act or some such, and basically... its a type of bail in specific to a currency implosion: Uncle Sam gets a giant ball of cash to operate, and anyone with a 401k gets stuck with worthless government paper, and the brokerages get their usual commissions. The instant dump of securities to make room for bonds drives those prices lower, but the scenario is a crash in the first place, so its camoflauged - and extended pain, much like the Great Depression.
Wonderful, congratulations! I used to be tired like you from working 70 hours a week and more, many 12 and 16 hour days in a row at a really hard job. I take it easier now because it started to affect my body too much, and basically took away most of my life from me besides sleeping. I will never earn that much that fast without working that hard, but I likely won't wind up in the hospital or completely drained of enjoyment and the ability to even modestly enjoy my life again, either. Kudos to you, but if health is indeed wealth, remember the organism needs more than money to thrive and survive.
In defense of paying off debt early: If you choose to pay off debt early then you are for sure saving that much money. If you choose to invest, it's speculation that you will make more money, but it's not a given.
I agree. You save much more money than you realise because you don’t have to pay someone else, and - something which Gabe completely ignores - is the sleeping better aspect of having no debt.
True, if you want to set it and forget it without taking any risk whatsoever. Then pay the house early, with some risk tolerance and seldom education on the market. You can dollar cost average into safer index funds or some stocks and yield more money.
@@akiramiyazono Tax isn't ever mentioned in these calculations though - gains in the market are taxed, the interest you save on your mortgage isn't. If you're locked in at COVID level interest rates for 30 years then it might work out, but if not and you're paying 6.5% on your mortgage then you need a pretty solid return from the market to beat the guaranteed return of paying down your mortgage by the time you factor tax into your calculations.
Here me out: i say to the "invest is better" ok, pay off ur home/condo...and live rent/mortgage free for min 2 yrs, and even change jobs in that time if possible. if u dont❣the feeling, then sell or mortgage it and (i.e., get ur $ back) invest those funds. Cause bruh, its a great feeling, even after 6 yrs paying off my house.🤑
It's still opportunity cost. With investing, time in the market means more than timing the market. Someone who starts investing sooner will have higher returns than someone who starts later and invests more (unless it's a a really high factor, more than your added mortgage payment more than likely).
If it takes more than ~8 years to pay off your home, you couldn't really make up for the lost time in your worst case scenario of making less money, so it would be even more important to invest early in that case.
I need to rewatch it. I'm a HUGE Dave fan, but I am always open to different perspectives. I appreciate how you were not disparaging; you were respectful but honest and true to yourself. You gave me much to think about.
In case you are able to edit your posted video, you are missing an "e" in "averag mortgage" in the video. Just the English teacher poking through.
Love your videos and your insight! Happy Saturday!
If you’re open to different perspectives then I would suggest “Rich Dad Poor Dad” by Robert Kiyosaki.
@@Silverman96 I'm going to put it on my reading list for the summer. I like Gabe's advice to dive deeply into one topic and to read a lot about it from different perspectives. I am making a list of financial books to read in my deep dive. Thanks for the suggestion!
Dave gets people thinking. Once you become aware of your money habits, you can tailor your money mind for you.
Dave Ramsey’s method is about human behavior, not math. Most people won’t keep up the math part. They will stay miserable because of the psychology of money. You are right, math-wise, if they do it your way, they would be better off financially. However, that is a very small percentage of the actual population that will do that. Most of these people need the boundaries in place.
Yes but come on, not most people, unless you are a sheep.
Trillions in credit card debt? That sounds like most people.
@@fleurelise997 Sometimes, one can't help the terminally stupid.
Dave ramseys how thing is facts not feelings he’s way into math i dont know who you think you are but maybe do some research before you say something bozo.
@@scottstempmail9045 Yes, one way to help would be to advise the terminally stupid that CC spending be avoided. Trillions in CC debt points to a high number of math challenged people who'd best avoid spending money that's lent to them.
You're spot on about college. I got a degree i used for 3 months for a temporary job position then i decided quite quickly that it wasnt the job for me and that college did not prepare me for it nearly as well as it should have. I did not go into debt though because my parents did have money saved for me. My husband got a degree in history and political science and he NEVER used it. He finished college with $50,000 worth of debt, got a job as a semi truck driver for an oil rig and paid off all of his debt in 2 years. He now manages a large grain farm, which he did not go to college to learn to do, we are debt free, own our house and have plenty invested. We are in our early 30's, and we have investments for our kids but the investments dont have a title such has "college" on them. There are SO many degrees out there that are quite usless and so many that people never get a job in once they are done school. Yes, some careers such as doctor, pilot, or engineering do require schooling, for sure! But so many do not. *Edited to correct typos :)
college*
Haha you're right. Auto correct and rushing to type my messages gets me every time 🤣
I'm getting Serf vibes from your response.
I have no idea what you are talking about.
Your husband's degree probably taught him a lot about managing, making decisions, evaluating. Education does teach skills that we use in our jobs but it shouldn't cost an arm and a leg.
Great to hear that I'm not the only one who ever thought Dave is not a guru in every way.
He wrecked everyone that wanted to buy a home when interest rates were at 3 percent. He told them to wait until they could afford a large down payment and now these ppl will never be able to afford a home.
Any man encouraging men to get married today, while simultaneously declaring themselves a financial expert isn't paying attention
Great vidoe but if ur watching this and don't budget, dont already invest, dont have 3-6 months of savings, and have more debt what to do with. I suggest listening to ramsey and once u get a good understanding u can become better. U be surprised how easy it is to get into debt and how hard it is. I just had to say i think a lot of peopel think they are smarter than they really are because they watch these video and dont apply. I know i was and many others as well. Please save, live below ur means, budget, and invest early. And once u get good at that u can use credit cards, take out loans and have a seat at the big boy table. If u havent done so, he is not talking to you!
Mathematically, speaking, I agree with you in this video. That said, what I like a bait Dave Ramsey is that he conquers a lot of the psychology of why people buy and people spend.
I think once people have their spending under control, this video helps them a lot.
Same! I think Dave is great for baby steps 1-3. Once it comes to investing and retiring I think there’s better advice.
I liked he key point you mentioned here, you don't have to follow exactly what they do, you build your own strategy out of different pieces of advice from different people, some things might not work for you or you prefer a different path, you-we have to do what works best for us, our circumstances and surroundings are different. Dave Ramsey is very oldschool and his advice is great, but things have changed and there's new information and resources right now, and so there will be new resources eventually.
Weird, been following Dave for 20 plus years and have no debt, right at a million dollars net worth while making 45-70k. As Dave says, watching videos like this they never calculate risk.
Can you say more?
Hi Gabe,
Great video as always. Hope you're well. Have a great weekend. 🌟
Love your comments about college. I didn't even finish high school but educated myself and now am better off than every single one of my friends and family who did formal study.
100% agree on your view about not going to college. I've needed farmers, plumbers, mechanics, truck drivers etc. a WHOLE more often than I need someone with a degree in human resources.
Somewhat depends on what you want. Also how you go about gaining the education, eg…my plumbing service offers zero to master plumbing…while working and getting paid. I chose to invest 1000.00 in my education. I went to CNA class and began working…was 15.00/ hr then. Once I had 10 month’s experience I transferred to a local hospital for $12.00/hr But free ( hospital paid) LPN, I took the deal, worked at that hospital for 4 years ( agreed upon for them to pay tuition). Moved to another facility for a 6 thou sign on and free LPN to RN…took it and worked 3 years for tuition pay back…Another move, another 5 thou sign on…they paid RN to BSN…in one more year I will have finished “ pay back” time, I am a BSN, I owe no money. I am able to pick up OT shifts while in school…either at sponsor facility or other places. I will be 29 just after I become a BSN…I have money saved, no debt, a great education and am thinking of a masters ( APRN)…got to look into getting that sponsorship.
just because you don't directly need someone who works in HR doesn't mean they have no reason to exist.....
@@Jane-rh7tc HR??? As in Human Resources? Who hire people according to their ethnicity rather than their qualifications? That's worked real well in the airline industry, hasn't it. A normal person who has mechanical skills and experience get's overlooked to hire the required quota of whatever race is next on their list. Those kind of HR employees are not really needed. Sorry, not sorry.
I buy everything with cash back rewards credit cards and pay it off immediately. When the rewards accrue I transfer to a savings account.
Love my 2% cash back and yes I am a credit card person😂
While I agree with you about Dave, you do not take into account the cost of "Peace of mind" regarding being completely debt free (both good and bad debt). As far as college I'm a better person and it's opened opportunities that I would not have had otherwise. Overall, great video.
Great video! Thanks for the information!! The ending of the video had me cracking up😂
I was completely oblivious to an investing strategy until I happened upon Ramsey. I've since moved on to folks like Gabe for different perspectives, but Dave opened my eyes to opportunity, and for that I'll be forever appreciative.
I enjoy your practical advice. I recommend proofreading the video captions for correct spelling especially.
Love the emphasis on individual financial assessment! Index funds and strategic credit card use can definitely be valuable tools when managed well. 📊
Great video
Expect some push back. But so much common sense and facts presented here. Appreciate your insight!
I think Dave is great for people getting out of debt but beyond that, he is not realistic. If I did everything Dave said, we'd never have credit card points to travel and create a lifetime of memories. My mortgage is 2.5%, why would I ever pay it off when I can make more money investing than paying it off. Besides, I live in an area where it is a statistical improbability of paying cash for a house.
Exactly. Dave is good for specific situation and personalities.
yes he speaks to the majority of people that are in debt. I have no debt other than my 3.3% mortgage. I could pay it off but why? I use CCs with cash back that I am already gonna spend money on like gas and groceries and pay it off every month. Get about a thousand back a year. I know im in the minority that learned this growing up. My grandfather actually mortgaged his fully paid off house to leverage the money, I would not advise that unless you really know what your doing.
Money Guys did the math on Ramsey’s allocation. They basically proved that even with the best options, they couldn’t math their way to 13% returns like he claims
Ramsey's rule for 15% of income into retirement is for people who have a mortgage; available money beyond that 15% is for paying off the mortgage early. Then after the mortgage is paid off the 15% can be increased.
yes, most ppl increase the $$ they put into retirement account as they get close to retirement age, no need to do it so early on in life
Do you know what you're saying? You are challenging one of the biggest financial advisors in the world...and YOU are spot on Right! You are Amazing and belong in the top 30 most influential people. Well Done!
his plan only works when world is smooth lol. one little thing and you are 10x time worse. He is wrong.
Nice video.
Totally agree 👍🏻Great advise 👍🏻
Dave is a great stepping stone for people to become financially free. I'm more a fan of ETFs rather than mutual funds, I also would bump up the savings rate. And pay off the highest debts first. But in general I think he is a force of good for the financial community and more people would retire with money if they took his advice. I also invest like 35-to 45 percent of my money instead of 15 percent. 15 percent is pretty low imo
Same here.. I invest 37% of my income into ETFs 401K IRAs and health savings accounts😂
Also CDs and high yield accounts
What you call "Good" debt, Dave Ramsey calls "Risk" ... Not "Bad" debt. There is a difference. No matter how good you are. Using leverage is adding risk.
I put all of my bills on a 2% cashback card. Pay that off at the end of the month. The cash back rewards equal to about 2 extra mortgage payments a year. That's what I try to use it for.
Dave’s method putted money in my pocket, I respect what you think, but I stay with his knowledge.
Also I like some of your ideas.
6:25 I see this "brick" wall in many of your videos and I love the look. Is it possible to provide the name and link on where to get the product?
I know it's not the point of the video, but I'd like to apply it to some projects in mind.
Amazing points made in the video. I'm so glad I'm not the only one who isn't completely for a college fund for kids. I have savings accounts for my children to help with anything that may better their life (house downpayment, business, investing, etc).
Some really awesome advice here!
Thank you sir!
You mentioned that the gains on property is lower than stocks. Is the gains on property also including the rent that now goes into your equity? Or just housing value going up?
Great advice until the renters stop paying and you must cover all expenses (mortgage, taxes, insurace & maintenance). Rental properties take time to turn into cash. And by the way, if you keep the capital gain, expect to pay significant taxes the next year from your deep cash position. There aren't alot of people that can afford large tax payments in the tens of thousands. Paper equity is not as flexible and resilient as liquid equity (cash). Slamming a few points about Dave Ramsey's methods and providing some additional wisdom is a great way to generate more income for yourself. Everybody believes they have a better way. But only a few people have helped millions in a proven way. Best of luck. By the way, I am speaking from experience.
I’m going to need to watch this a couple more times.
Most people would probably be better off following Dave Ramsey than what they have been doing up til now. But if given the option of following Dave Ramsey or one that puts higher priority on investing, i think most would be better off putting more emphasis on investing. What's the common denominator? Both strategies for wealth building involve restraint on spending, and avoiding high interest debt.
Im with you up onto the point of paying off the house first. Most people dont maintain "steady income" for 30 years straight. Paying off your house is a HEDGE against LIFE, forget the stock markets 😂😂😂
Great video! Where does the leftover money go for retirement if you max out your ROTH and 401(k) if you want to retire early for people under the age of 50?
For the 277k in the stock market calculation, it's good to consider the potential tax rate you'd have if you realized the long term gains, which would bring the income down much closer to the home payoff savings. That being said, it is still more lucrative to invest the difference. Psychologically, having your paid for house can be much more powerful for some.
Love it 😀
When calculating opportunity cost of paying off the house, are you using your actual returns, or just the theoretical max earnings if you could somehow invest with no fees and total consistency?
What is the box at the end? No links for anything.
Thank you. In my gut, I couldn't fully commit to Baby Steps and you explained it so well. My husband and I had someone tell us to live only on one income when we married and save the rest. It has helped our family in so many ways.
We are on the verge of "college" accounts for our kids but can't fully commit bc of costs. I'd be curious to hear about the type of account(s) you use to save for your kids. Thanks again!
I’m like you, started out with Dave Ramsey, a lot of his stuff helped me. But if we had listened to his advice, we wouldn’t have bought our first house when we did, which since it was the bottom of the market, really set us up financially. We’d be nowhere close to where we are now without that.
Spot on!
Live simply, save tons. I clean windows on my bike, 14 years in. Paid off home, investing in real estate and index funds, live on a beach all winter. Could retire tomorrow but I love what I do.
Scribed!
Thank you.
What kind of credit card would you use?
what is that retirement calculator you were using at 6:13?
google: networthify early retirement calculator 🤓
Networthify
I’ve enjoyed many of your videos however I think this is by far the best video you have made.
Totally agree. The man have most things right but still live in the past.
Using credit card is o.k. as long as you pay it off every month. 😮
Well really good. In fact maybe Davey Ramsey shows advices for people that had crossed the line in several decisions about their finances due himself was broken before obtain his 600 million dollars, but anyway i enjoy watching your videos also because they show a different lifestyle than the average. Thanks
If you follow Ramsey, you will get out of debt and begin to build wealth. Whether or not his plan is optimal for you is an entirely different story. You have to remember that if everyone understood the nuances where his guidance is not ideal, then that person probably wouldn't be in debt to begin with. I did not follow Ramsey, but my path was very much Ramsey inspired.
agreed. I think Dave Ramsey is good for people who are starting out learning about personal finance. I think a home mortgage is for everyone as long as you can afford it. no one gets rich by using credit cards but if you are responsible about paying them off monthly then its a nice perk to get rewarded for it.
Mutual funds can be index funds
Same with ETFs.
They are wrappers that hold active or passive funds
"The Total Money Makeover" should be everyone's first book to financial freedom. "Rich Dad Poor Dad" should be the next book in someone's financial literacy journey.
Not to mention he’s hella condescending. I guess some people need a hardass to tell them they’re being dumb but watching his videos makes me feel so icky. Even when his advice is sound
Absolutely. Really big turn off. His books are ok but I truly can't watch DR. He usually just ticks me off because of his judgemental attitude. I get that he is trying to help but putting someone down because they weren't raised or taught money management is just smarmy to me.
@@lilypudd Yeah, kinda culty to me...
Ive always strive to watch the show but i do not watch when Dave is on it. You can see his co hosts shut down and defer to him. I will watch and listen to any but him
Interesting I don't like the co hosts. Find them boring. Dave is interesting to listen to.
You have to pay tax in investments and not when paying off mortgage. That hasn't been taken into consideration.
I found about him a couple months ago. I’ve learned some and I didn’t like some as well. In some instances it was too much. I’m working to get free and safe money too , I’m learning the system as well. I discovered this channel and I like it. I’m organizing my stuff and it helped me.
Dave Ramsey's advice is for the general public - it pretty much "works" for everyone, but its not for everyone.
I don’t agree with Dave on everything, but you are playing a dangerous game by not factoring in risk. Life is full of unexpected events that can affect your finances in a negative way.
What is the name of the site at 6:13 ?
Dave doesn't say people should put money in any mutual fund, but in those with a track record of at least 10 years and where you can see they outperform the S&P500. Also, when he talks about paying cash, he doesn't mean you should go and pay with paper bills, literally, but that one should not go in debt to buy stuff. Buy what you can pay for, that is the meaning of cash.
You can take some of his advice and mold it to fit your lifestyle he’s big on ppl avoiding making stupid choices with debt and living above their means
He's about making good choices ALL WHILE telling men to get married today??
@@fredstriker2042I mean, men do live longer while married. It's married women who's health tanks and who disproportionately die from stress related diseases.
@@mjs4663 then women shouldn't get married either
How can you say Dave Ramsey’s plan is wrong? He doesn’t say stick with 15% into retirement forever. He says 15% until your house is paid off and then invest as much as you can.
Hey Gabe great video I agree with a lot of your points especially with your take on his credit card generalization however, i do disagree with you slightly in regards to investing over paying off your mortgage! In principle I agree with what your saying however Your comments in the video made it seem like you were assuming that the S &P index fund always goes up. And that is where your argument gets sidelined because it doesn’t. There was a five year period in this century that regularly saw double digit losses of course I am referring to 2009-2014. I just wanted to put this out there because no matter your age you should always factor risk into the equation. Otherwise great video keep up the good work
The investing still works out math wise if you have a long enough time frame to recover from a downswing. If you are approaching retirement then you need to crush debt more than invest
Gabe--Had to make an off-topic comment here, because I saw something PRICELESS in this video! There's a quick shot of you in your living room which shows your bookcase, and in the bookcase are sets of NANCY DREW and HARDY BOYS books! I have NEVER seen that in ANYONE's bookcase, outside of my own, and I can't tell you how much I loved it. It made EVERYTHING in your video that much smarter, because I kept reminding myself I was hearing it from a guy who had NANCY DREW in his bookcase! Don't know who in your family reads NANCY (your kids are clearly too young), but kudos to whoever it is; that's FANTASTIC! Oh, and I liked and agreed with the video, too.
They’re my wife’s 🙂
I was the 1st in my family to have a college degree, and never regret attending college, I learned plenty and had a great time as well. It was definitely a growing experience where I acquired an education. Of course, you can always educate yourself, but for a 18 year old college was great. Also, met my husband there. 😅
On Baby Step 6. Happy to say that it's not about the score anymore, just a certain level of peace and freedom. None of these convince me to change, even if the added risk was worth $1 million.
To be fair, when Dave says “use only cash” he means don’t pay with credit. He doesn’t mean strictly paper money, but money you have in your account. Debit cards for example.
Completely agree about college. Not something I will push my kids into unless they want to be a doctor, lawyer, etc…
There is at least one issue you don't address: paying mortgage is guaranteed earned money whilst investing poses risk that is not taken into consideration. Following this logic, nobody should pay any principal of the mortgage ...
😮Dave has a brand. He has to follow it. Mutual funds give up voting rights on individual stocks just like index funds. If you choose to have someone else manage your funds, make sure that their values align with yours. Fund managers who are more concerned with DEI and ESG than concerned with sound money making investments. Agree with you on credit cards. Solid video. Thank you.
Totally agree
Hi! Really grateful for all your precious advices, I follow you since mainly a month, it was enough to make sense! I am from Algeria, north Africa, here mainly 70% of your advices can't be applied but they're still precious, no possiblity to trade stocks markets, no credit card... long story short a completely closed market, a Real challenge for me, wen I will succeed to get were I want, I will text back to tell my story, that will be useful perhaps for people like me, thanks 😊
Great video with great advice! 👍👍👍❤️❤️❤️ The name of this video should be “The first step of improving your finances: listen to Dave Ramsey. The second step: Listen to me!” 😊😊😊
The reason why you prioritize to pay your debt instead of investing is because:
Debt is guaranteed that you owe moving into the future.
Investment are NOT guaranteed profit, they are just "hypothetical" moving into the future.
20 years from now, your debt will still be your debt.
20 years of hindsight bias that 9% growth is not a guarantee that it will be the same in the future.
*** Past performance/prices are not indicative of future performance/prices ***
Anything can happen to an investment (Risks).
While your debt is not going to go away, even in catastrophic events.
What's the saying, "Don't count your chickens until the eggs are hatched." You're counting unrealized hypothetical profits over guaranteed debt.
Velocity banking seems kinda intriguing. Wonder if you can do velocity investing or if thats just considered margin
I agree with everything except the credit cards. I have learned I am not responsible enough to be a credit card person. Paying in cash or using my debit card has been much easier for me. Much props to those who are more responsible and intentional with credit cards than I am ❤
Theres a lot of points i totally agree with. Bad debt. Credit cards. Things like that. I think there's a few things you said that maybe you missed from Ramsey. Or maybe he's changed since you stopped watching him.
Dave wants you to save AT LEAST 15%. Meaning he wants you to do more. His plan says don't do more than that until you have a paid for house. After that "enjoy your money". Save it. Spend it. Give it. He just doesn't advocate you have to go higher. But really he thinks you should. Also.. he does mention mutual funds, but he's talking about indexes.
There's a few things I disagree. You stated at one point mutual managed funds are worse because nobody can predict the market. Which is true. Most managed funds are bad. Guess what you managing your own stocks are.. a managed fund that your not likely to beat the market longe term. I do think having stocks is OK. Dave advocates for indexes instead because most people aren't going to go in there and try to understand the market. It's safer for a hands off approach. He doesn't beat you up for taking risks in the stock market.
Also... you have to look at the long game too in regards to your house. For my situation. I could pay it off in 5 years. At the 5 year mark it is true I would have earned more at that point. However after 20 years. If I put my house payment into my investments. I would have about 400k MORE by paying off the house early. Plus 15 years of litterly owing nothing. Which is a huge feeling. You have to look at the long game. If your not Realisticly going to invest it. Then yeah. Fine. Don't pay off your house. But I'd suggest people do the math before they make a decision. And I have a low interest rate. For me to retire. I want my house paid for. That's a requirement. Not because I won't afford it. But because I want to owe nothing in retirement. But I have about 20 years left for my projected retirement date. My concern about going to aggressive and paying off the house in 5 years is that it robs me of 5 years if the 15 don't go as planned.. ill miss my date. If I go the full 20 years making payments, I'll be fine pretty much no matter what. These next five for me are really critical..
Buy yeah I agree with a lot. I see Dave more as entertainment and less about actually learning anything from him. Good video!
Dave is best for financially inept people. He's also stumbled into a huge lawsuit that could bankrupt him with the timeshare fiasco.
How could it bankrupt him when it's only 20% of his net worth?
Also, 99.9% of Americans are inept at all areas of life.
Can u make a video explaining the s&p 500?.
Omg. Your baby is so beautiful. She seems so happy. ❤
after he said capital 1 im done, that is the worst CC company known to man
Valid points discussed here, but unfortunately there's no mention of the amazing feeling you get being mortgage free and not owing any money to the bank. The amount of interest you save is quite incredible and with paying off your house early you're able to save more and invest more.
What made me pay off my house early was just that, but also being aware of all the scammers and hackers nowadays online that could potentially hack my account and steal all my hard earned money from my investment account. Is it likely? Not really, but its possible. At least with my home being paid off, I can rest easy knowing my money isn't sitting online with that risk.
The thing with Dave Ramsey is, even though some of his advice might not be the most optimal financially, it could be easier for people to stick to., and the plan that people stick to is going to return the best results.
Very good advice. Wish I knew these things when I was young and clueless about money! All you young folk, please listen to Gabe...and believe me, its A LOT easier to make brutal-level sacrifices when young, not old. I am 60 now...started doing these things when was 42 and penniless, now am in decent shape financially but it sure would have been easier if I had started earlier. Before there was internet or yt in the bad dark ages of information exchange...
For credit cards I made a rule that I had to pay it off within a day of using it. So every morning I check all account balances and pay any balance however small. So to me it literally is just cash.
The sponsor choice is capital one shopping on a finance/ minimalist channel…. That’s not a good look.
Risk - u got to factor in risk to that. Mortgage equation. But, I’m old , so mortgage payoff it is! I would worry about a Japan type situation coming up, yikes! Hopefully, average will continue in next 20-30 years , but who knows. So,I think in Dave’s mind, the mortgage interest pay down is a “ sure thing, .”
i just came here to comment: can you make a video where you recommend podcasts you like?? (or at least respond to this comment with them?) i wanna get into podcasts that are useful/informative but idk which ones are the best
I don't listen to a ton of podcasts anymore but bigger pockets money podcast is pretty good.
It really depends what you're looking for I mostly listen to books and have done a bunch of book recommendations on my channel if you just type in keep and have done a bunch of book recommendations on my channel if you just type in Gabe bult books
(1) Residential rental property does not always guarantee high returns. Sometimes a residential rental becomes a nightmare.
(2) You don't have to carry wads of cash around. Debit cards are fine. Dave's point is that you don't go into debt---you pay with what you have already.
(3) The interest paid on a mortgage loan decreases or eliminates the interest earned on a high-yield savings account. The sooner the mortgage is gone, the better.
(4) "Do what's best for you" isn't the best guidance, since most people already think that's what they are doing!
I'm one of the oddballs that spends less with a credit card. Cash in my hand is money I clearly have and I have to fight the urge to spend it. A credit card however is not tied to money I have and represents potential debt and (shudder) interest payments. I do NOT want to buy anything when I'm using a credit card.
Fwiw I'm willing to pay an opportunity costs to pay off our house earlier. I crunched the numbers and in our case the cost was much less (smaller mortgage). Yup, I gave up some profits. but the stock market is bumpy in the shorter term and if times got bad I didn't want to be laid off with a mortgage payment and be forced into selling in a down market. The security of having the home free and clear is worth that lost profit to me. And we were still investing plenty. I've never regretted paying off the mortgage.
Where do you hold the investment for your kids? I’ve been looking into other options that aren’t a 529.
We funded a Roth IRA. We knew we wouldn't save more than the max contribution each year but it would be enough for 4 year state school. You can withdraw contributions at any time, even under age 59.5. If it wasn't used, keep as part of retirement savings
I am a graduate of the Dave Ramsey Financial Freedom course, so was quite familiar with the guidelines. I do believe it was written for a specific point in time, which has perhaps not kept up with current trends. I appreciate your honest review. Finances are not cookbook. They must be individualized.
“By definition, mutual funds are actively managed funds”.
That’s incorrect. A mutual fund is just a collection of investments packaged in a specific way that are pooled together for investors to buy. Index funds are mutual funds. Actively managed funds are mutual funds. Bond funds are mutual funds.
Exchange traded funds are also funds, but packaged differently making them more tax efficient.