You Can't Get Out Of Debt By Doing THIS!
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- čas přidán 15. 03. 2022
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I paid my student loans today!
Congrats!👍
Thank you!
That's awesome!! Good job!! ❤️
Good job👍
Awesomeness 👍🏽👍🏽👍🏽
“You can’t intellect your way out of a behavior problem.” That’s exactly what I needed to hear, thank you.
Same!
He forgot to say "we're not going inside of a restaurant unless we're working there." And BEANS AND RICE.
Rice and beans. Beans and rice.
I know she will be glad when that debt is gone. That's quite a salary.
Agree
It's in NY. Which is nothing just like in bay area.. 160k and you only "get by"
It doesn't matter if she's making 1M if she DOESN'T know how to manage it!
@@NaNa-lt1po it’s expensive but that’s an exaggeration. I made $75k-100k in NYC and was fine.
@@euenfheiejrj Lol, because YOU know what you're doing! Irresponsible, CARELESS people can't make it on 500K, NO MATTER WHERE THEY LIVE!
Her after tax income is probably around 110k/year or 9k/month. Her debts are high but if she lives modestly she will pay it off so fast.
160k a year? She’s got this 💪🏽
That's a good salary
0:45 "Thank you for being a listener and a new listener at that." Dat was a subtle start fo Uncle Dave 😜
This isn't BETV..." THAT". .... " FOR"..
I paid highest interest first; but I was more motivated by spite and the idea of making the people who were using debt to proffit off me to make as little as possible.
Same here.
I did the same with my student loan debt. You have to be mad at debt to get intentional.
I've heard Dave say before that the reason he doesn't normally worry about which debt has higher interest is because paying off the smaller debt first gives you traction....then moving on up to paying off the next smallest etc. You see some easier wins first which is encouraging, rather than say taking on a much larger debt first (regardless of interest rate) and it taking a lot longer to see results, especially when you are first starting out to get debt free. That makes good sense to me. But as long as people get out of debt, that's the main thing...whether you decide to take on a high interest rate loan first or not.
Depends on how much debt you have. If you have hundreds of thousands? Having small "wins" is better than grinding away at a huge high interest debt
@@orphanedhanyou um, no, the more debt you have, the smarter it is to pay off higher interest first. You literally will pay it off faster and keep more. It's math. Once you know this, you don't need 'traction' or any other nonsense Dave utters.
Caller: I make 160k
Dave: BEANS AND RICE, RICE AND BEANS
Lol, right
With a side of...rice and beans.
160k in NYC = beans & rice
@@zouayang6972
I make $50k in the middle of Texas and I feel rich.
LoL
This show makes me realize how minimal my debt is. I’m 27 and have less than 5,000 in debt
Debt can build.
Still attack it.
@@PInk77W1 Oh trust me I am. I plan on paying it off by September
@@missjackson_ nice.
@6:00 - The study Mr Ramsey is referencing is in the August 2012 issue of the Journal of Marketing Research. The paper is by David Gal & Blakelely McShane & titled: Can Small Victories Help Win the War? Evidence from Consumer Debt Management. It's behind a paywall but you can read the abstract online & there are some third-party articles summarizing its results.
So what's the conclusion? Did it say that Ramsey's method is the best way to go?
Speaker Pelosi said increased spending reduces debt!
Although I agree that the snowball method works, the avalanche method also works (and better since you're actually tackling higher interest rates) if you're disciplined. If not, then definitely tackle the lowest debt even if the interests are also low.
Exactly, the avalanche method is actually, mathematically, the best method to pay off debt. It is also hard to do for most people, unless they are faced with several debts of comparable size with very different interest rates
New intro melody throwing me off lol
I thought it was just me. Lol
Dave ❤'s pounding himself on the back.
If you are paying smallest to largest and aggressive enough to tackle the problem, then the interest difference in the fast time you act is negligible compared to the psychology. Achieving the first milestone faster occurs when you pay smallest to largest and that reward timing matters more in success of getting out of debt
Nobody screams down the phone like Dave does! Haha
Great advice
She sounds like a Trini 🇹🇹❤
Imagine making 160k and having bills
No, lol.
It is very hard to convince high income folks to live beneath their means, even if only temporary.
You got this girl! Work the baby steps and you’re going to be debt free so quickly with that fabulous income. 😁
with great intensity ahhhjjhhhhhhjh😂😂😂😂
I believe Dave says pay the smallest debt first, then you need to add that payment to your next debt, effectively paying more now means you are winning the interest game by applying additional funds to the principal. Just like you would do to pay off your home faster.
You cant win the interest game by paying debt smallest to largest, it doesnt matter that you have more cashflow for the next biggest debt after paying the smallest,mathematically paying debt largest interest to smallest will ALWAYS be the FASTEST AS LONG AS YOU STICK THE PLAN so thats how you win at the interest game. You may win in the psychological game with smallest the largest but that doesnt chance the FACT that you DID NOT win the interest game and I believe many people are psychologically strong enough to do by interest instead of amount. Not everyone,but many. Dave Ramsey's baby step is NOT for everyone, its just a good guideline to follow but you can tweak it as long as you are DETERMINED to get out of debt and that is what REALLY MATTERS.
@@kelvinpang438 it isn't about winning against an interest game.
Making ACTUAL progress is the most critical thing...and you're more likely to beat debt by knocking out multiple quantity of debts faster by killing the smallest debts firsts.
It's not rocket science...it's a behavioral problem that gets people deep in debt to begin with...not a math problem
@@motoryzen Very good point.
@@kelvinpang438 there's no "winning the interest game." The borrower has already lost. An emotionless robot should pay off debt by by highest interest rate, but the emotionless robot wouldn't be in debt in the first place. People who find themselves in more debt than they intended did not get that way by carefully calculating the interest rates and fees. The data show you will pay off debt faster smallest debt to largest. That effectively does mean paying less interest.
@drewfliesbikes Fair enough, I'm not saying the debt avalanche is better than the debt snowball for most people with debt,just for some people. Yes,usually the debt snowball would be better but there definitely is a minority who can pay off debt faster using the avalanche so blanket statements like the debt snowball is better than the debt avalanche for EVERYONE with debt,which is dave's view,is just factually false. Yes,it is better for the majority of people but not all.
Did they change the intro tune? I preferred the old one.
5:57 pen fail
I'm debt free.
Why would direct debits be on a credit card, this is insane
Please, no clickbait titles
Sorry if some of my posts show up twice. I was confused a while back trying to figure out why that was happening, and ended up finding out it's some type of youtube glitch that happens to people sometimes.
Dave really likes to forget about taxes lol, the $20k bonus will be roughly about $13k after taxes so the $5k left on family loan is not correct.
Yeah glad I'm not the only one too catch that. Absolutely asinine bonus' are taxed but that's a whole other issue
Every bonus I’ve received, taxes are withheld.
He can ONLY go by what the caller tells him, and for a five-minute clip, he's speaking in generalizations. Also, if she's making 160K and CAN'T manage her money, SHAME ON HER! Whether or not Dave includes her taxes in any equation doesn't affect her bottom line, literally AND figuratively!
Plenty of companies withhold taxes ahead so you get the amount stated
When I talk about the bonus I got from work I talk about what I received in my account, not the amount before taxes so chances are she was doing the same thing
You need a credit card for online purchases.
Nothings arks me more than seeing "THIS" in the title....
*irks
Then your scores go down after all the closed accts
Ish it???? lol
I got my student loans forgiven!
Personal favor from J Dawg!
Buy and make your own food
dont buy things you don't need
save
I’ve used alll my retirement (79k) and got out of debt I only owe on my home which I should have gotten BEFORE retiring instead of 3yrs prior to retiring 🤦🏾♀️ but it’s a habitat for humanity home so payments are low which includes my hi/pi and my pension is only $200 short of what I was bringing home mthly anyway 🥴 so I’m blessed to not HAVE TO go back to work but I’d love to have a lil more cash so maybe I will pick up something 🤷🏾♀️🙌🏿
I'm 34, what would be your best advice for me?
Bill, depends on your goal and situation. In general, follow Dave Ramsey's baby steps.
Umm you are $200 short each month and retired? Where does the 200 come from? What happens in 5-10 years when inflation makes you $800/month behind?
@@jpg7616 🤔 didn’t think of that 😳 I actually feel like we are in the end days and won’t be here much longer but I think I will try to find a lil part time something…so glad I don’t have any unnecessary extraneous bills, Woww 🤭🤭😵💫😵💫
The emotional aspect they speak of is the secret sauce. Forget about finance and look at fitness goals. People purchase exercise equipment and gym memberships and never use them. Why? Same emotional response factor in this video. When you have the "no more" moment, you change. Btw, now I have both money and muscles, so hate us all for being right! Peace
She sounds Trinidadian .
LOL
What type of job does she have?
Probably lawyer.
Arrrgggghhhhh, Sam Kinston has entered chat.
*Kinison
Jeeeeesus, this lady's household income is 160k and she can't or won't figure it out. Live well beneath ur means and u r a baby steps millionaire. People can get by on beans and rice. She can most definitely live on 65-75k and use the rest for her debts.
Woww 😳
I make $150k and still stupid ..it’s amazing
LOL, yep!
Not really much good info on this one
sell pizzas
She sounds like she is from the caribbean
Did he say, "pay MINIMUM payments"? Does that sound like a mistake?
The key is to pay minimum on all debts other than the smallest debt. With the smallest debt you put any extra money in your budget towards that to pay it off as fast as possible
Well they can't pay huge amounts to every source of debt every month.....so, yes, you pay the minumum payments to all the accounts (to avoid other charges like overdue fees) while you focus hardcore on one of the debts. Then when that one is paid off you move to another debt and focus on that one while paying the minimum payments on all the other remaining ones.
@@neolithic3 But that's NOT what Dave preaches, and that was my point. He mistakenly, or otherwise, advised this caller to pay the minimum payments, and that's what I'm questioning, for clarification.
@@stellarocquie7957 Huh? It's exactly what he teaches. Minimum on everything except the one with the smallest balance. KILL THAT ONE WITH FIRE. Then throw all that at next smallest balance.
@@stellarocquie7957 he advised the caller to make minimum payments on all but her smallest debt
You must make minimum payments on any debt to avoid defaulting or getting the repo men knocking at your door
Getting out of debt without paying the highest interest debt first is for people who don’t know math.
I’ve found that paying off one card with another I’ve never had to make a payment.
I always thought that adressing your biggest debt first is much more satisfying that your smallest debt. But that's just me.
Me too but I just paid off a$400 debt from my IRS Fund and it feels. I am now going after the other small debt.
@@bovnycccoperalover3579 I think it's more motivating when the biggest chunk of your debt is paid.
Both are ways people can find success. The snowball method/Dave’s recommendation can give people that spark of hope and add to their fire when they’ve never paid off a debt before they see how it feels and that it's manageable. They also see that they can add that amount to the next debt to pay off instead of starting to slack because their next debt is so small.
If you pay off smaller first you then apply the money to the largest. Your motivation is to stay in debt longer? Puzzling.
@@sherrylingenfelter8991 No idea what you're rambling about.
Johns going to talk to you about the psychology of this "john bumbling through trying to summarize what dave already said" dave then talks about the psychology...... john is the worst co host lol
The yes-men gotta earn their paycheck
Third
1st
First
not first
She makes over 100k a year and have debts... give me a 100k income, I would never be broke or in debt
Waiting for a strawman argument claim or something ingenious from Saul Goodman. He knows what he's talking about way over Dave. I don't even watch these videos anymore because Saul's advice is better.
LOL, of course!
Obviously. That's why you're here, writing comments😂
So let me guess..Saul talks about using debt to become rich.... right?
If so...NO that is asinine advice and hooks sucker fish people all the time.
@@motoryzen No actually he was saying to invest in single stocks as much as my 401k. That sounded like I could make a lot of money really quick so thought what have I got to lose?