🎆Yes! People laugh at my older car, and I don't have the brand new tech...I smile to myself knowing "I don't have to worry about repo man, and nasty calls and letters from collections." 😁
The Air fryer pays for itself quickly. It's cheaper to buy wings at the grocery store, and air fry them at home, then it is to get them as part of Pizza night delivery. Tastier too!
1) Student Loans 2) Auto loans 3) Buying too much house 4) Trying to Game the credit card system 5) Get rich quick traps 6) Keeping up with the joneses
Exactly! I did some stupid stuff with money because my parents never showed me what goes in saving and keeping money. When I got in trouble they bailed me out instead of teaching me how to get out of it. I always thought they were successful because they could spend large amounts of money, ran their own business, could help me out anytime if needed... until I realised they were just lucky financial idiots. If they'll live long (now in their 70s) they will run out of money despite having low monthly costs and living more frugal than people their age with their business history should have to... Yet they tell me I am doing things wrong for paying off my mortgage and investing, because they always kept their loans until the end and kept their money rotting away in savings accounts. They don't even realise how close to being broke they are, they even think I'm after their money whenever I bring up the subject and say I'll be rich when they die because I will inherit their house (a 1958 energy hog in a part of town that hasn't been fancy since the 1980s anymore, which I'll have to sell to pay the inheritance taxes and their funerals).
I got caught up in payday loans and nearly ruined my life. I was stupid to think you paid them back in parts and not on the next payday so was stuck in a loop. Thankfully I'm out of that and I have an emergency fund so will never need them again.
Being house poor for about 5 years in the beginning was the best "mistake" I ever made. Everyone tried talking me out of buying a house at 20 years old too, but again, it worked out exceedingly well for me. I now own a 800K home outright at 45 and just bought the house next door.
@@jacobstrouble6631 jokes on me how? I have two paid off homes and one pays $2400 hundred a month in income and is appreciating. I could sell both and do a 1031 exchange for a 1.5 million dollar home and not pay any taxes. Get bent.
Honestly, I'm so used to being frugal now it's becoming a way of life. It's ok to buy nice things! Gives me time to think if i really want them. I think that's a good thing! Gives me peace to pay in cash and not rely on debt. Be in the driver's seat. ☺️
Very clear and helpful. thanks! I'm working extra to keep my ROI flowing into my mortgage payment. it's the last piece of debt i have and i'm a bit overeager to see it gone. Any index fund or stock tips to help that get done?
I think stocks will plummet further before actually experiencing steady growth and there are still quite a few stocks that makes for a good buy this season, you just have to do your research, but to be on the safer side and not second guess your market decisions, I’d suggest you reach out to a proper investment manager for guidance, they’re better equipped at understanding market patterns/movements and adjusting portfolio to match up with these market trends.
my portfolio is down over 23% j and It’s been that way fsince 2022 and I really could use professional help, I’m close to retirement. have you worked with an asset manager before and could recommend any?
She's known as ’SONYA LEE MITCHELL. One of the finest portfolio managers in the field also widely recognized. Just research the name. You’d find necessary details to work with and set up an appointment.
I just got my student loan forgiven because I worked in public service for years. If I had to do it again, would go to community college instead. Student loans are not worth it anymore.
George is so talented and is giving such good advice. My wife and I have been debt free for 2 years (house and all) and we spent 4.5 years on the Ramsey plan and beans and rice. You can do it and the peace of mind is worth all the blood, sweat, and tears it took to rip off the chains of debt. You can do it!
I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.
When people have money, they spend it. And some people spend more money when they have more of it. If you want to improve your financial management, you should consult with a financial advisor.
@@user-3456rtu Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.
Air fryer is legit! I use it daily. The housing is definitely hard to overcome with the comparison trap. Praying God daily to keep focus in alignment of His will.
There is merit to getting a 30 year mortgage and then sending in payments for a 15 year payoff. That gives you a little bit of extra flexibility in case something big happens like loss of job or work hours.
Absolutely. Locking in a 15-year mortgage means you have to make those payments, at a minimum, for the next 15 years. That will absolutely make you house poor. Doing a 30-year gives you flexibility when life throws a curveball, and if you make the same payments as a 15-year, you accrue no additional interest. The idea of renting for 3-5 additional years to get a bigger down payment to make the 15-year mortgage work is actually horrible advice, since it keeps you out of the mortgage for longer and means more money is getting dumped into rent. And nowadays, rent will cost you the same, if not more, than the mortgage, making it even harder to save for the down payment.
This what we have been doing for the last 10 years. We do one extra payment a year at a min. 4 years to go and that’s living in California and in a very expensive area. The baby steps work.
A 3-6 month emergency will give you flexibility in case something big happens like loss of job or work hours. A 15 year fixed mortgage will save you hundreds of thousands of dollars in interest
I know someone who withdrew $14k from her 401k to get weight loss surgery in Mexico a few years ago. She got the surgery but then gained all the weight back🤦🏻♀️
Sooo we bought a house last year and at the time it was about 30% of our takehome pay. Then I got pregnant with our third. Long story short I’m not going back to work until the baby is older and our mortgage is now 50% of our takehome BUT we have no other debt, we own three dependable vehicles, and I’m staying home and budgeting and making it work! We’ve been following Dave’s advice for 12 years and wouldn’t look back. It’s not easy, it’s not what everyone else is doing, but you’ll be so glad when you look back and realize you made some life changing decisions.
One financial trap I see is "unlimited spending" on anything "for the kid(s)". Outrageous childcare choices, the best of everything with no reasonable limits. Always the newest electronic gadgets, fashions, all the extravagant "wants" fulfilled, new cars purchased for each child, high cost out of state college choice for average run-of-the-mill degree, etc. The entitlement is assumed when there is no effort/contribution from the child expected, no wait and save approach, instant gratification for unnecessary things. Example, I knew a girl who got a new prom dress but the prom was canceled due to covid so that new dress was never worn, then the next year purchasing another new prom dress happened! The old one just wouldn't do.
George, while I am a big fan of your angle on modernizing and simplifying the Ramsey message for a younger generation, I do feel that some of your advice is a bit tone deaf to what the majority of folks are feeling and experiencing right now. Instead of sitting down and doing the modern math, it seems Dave and friends just say “work harder…” which is easier to say when you are already a millionaire and all of your anecdotal feelings and data is from an era decades passed. Let’s paint an example, and I will even use above average salary numbers to make an even stronger point: pretend a couple makes 115k per year gross (more than the average). They follow Dave’s advice and invest 15% of their income for retirement (which many experts say is not even enough anymore), have no debt, and after insurance, 401k/benefits and taxes let’s say they take home 5,600 a month… using your 25% rule of thumb, they would only be able to afford a $1,400 a month mortgage (including property taxes and insurance) on a 15 year fixed… EVEN at a 30 year fixed, they would basically have to put over 50% down to afford even a 320k home… and the median home price is 388k or so… Furthermore, there are very few starter homes in the US near anywhere that pays a decent wage that have homes priced at 320k without basically being a knockdown shack. Dave’s advice would be to move to another state or area, but then the jobs in those areas pay less which basically makes it a wash, OR you are commuting 2 hours each way making your car costs eat up the savings difference… again a wash. Also, Dave is against remote work, so the idea of “just move somewhere affordable” seems to run counter to what he preaches as you would need a new job, which pays less since it’s a lower cost of living area. Is it Dave’s contention that every single person must be a doctor or entrepreneur or engineer in order to afford a 2 bed 1 bath and maybe be able to retire one day? I would like to see more acknowledgement of this from you, as you are the future of Ramsey and I think acknowledging these challenges from folks like yourself is the first step in being able to bring about change.
#7 - Eating out half of your meals instead of eating at home. Most middle class can afford to eat out every now and then, but not frequently. Middle class people in the 50s and 60s did not eat out anywhere near as much as the middle class does now. Put that air fryer to good use!
Eating out is the biggest tax Americans pay, compared to most other nations in the world, who barely go to restaurants, unless it’s cheap fast foods or special occasions.
Money Trap of the Middle Class: Using, or utilizing financial gifts poorly. My wife and I are on baby step 4. I'd like to think we achieved this all on our own, and entirely without help, but part of what got us there, is that we were given a moderate sum... not huge, but a chunk of change as a Christmas gift several years ago. We could have just gone and bought a new TV, new furniture, etc. and blown through all that $ on 'stuff' we didn't need. Instead, it went towards paying off our car, putting a larger down payment on our home, and expanding an emergency fund when the debt snowball was finished. Years later, we received another gift as part of an estate settlement... but because we were smarter then, we can then use that $ to expand savings goals, to invest, to give some, and maybe to have a little fun.
I'm in baby steps 4 and 6, and still make a car payment - I just pay it to a separate "vehicle" account at my bank. Maintenance, repairs, and replacement vehicles come out of that account.
Your videos should be part of a mandatory class for high schoolers. It is sad that we don't teach kids how to do basic budgets, etc. It's left to the parents many times who are totally clueless as well. I love your videos, even though I'm in good financial shape and have done a lot of the things you talk about, I frequently pick up a tip here and there that is useful.
Enjoy your segments, George. Although I have heard the same material a thousand times, you have a unique funny creative way of presenting financial topics that keeps me wanting more. Keep up the great work!
Guilty of a car loan. We just got a new family car. We currently only have our house mortgage and car loan for debt. No credit card, solid emergency fund, building up our retirement fund, saving up for the kids' college funds (we have a 7 yr old and a 1 yr old). On our mid-30s and I can't wait to get out of debt (we're expecting to be done witb the house in 5 yrs) so we can max out our retirement.
One of the reasons that car loans have increased besides inflation is the vehicle's that most folks are buying and the dealers are pushing are the High trim level models, yes the cooled seats are great especially if you live in Florida or Arizona although to get the cooled seats you have to purchase the top 2 trim levels in most cases, which are packaged with a lot of options most folks don't care about at a premium of $5,000 or more, hope you enjoy the cooled seats!
I still remember your words when you said “credit score /cards are debt managing tools. They are not a wealth building tools “. Instantly became your fan. Now I am debt free and saving for my house & daughter’s education 😊
3:30 My PITI is $1,446 per month. I like to pay $1,900-2,000 per month. My take-home pay fluctuates, but is usually $3,600 per month. (This seems slightly off as I make $31 per hour.) Anyway, I don’t feel pinched house poor. I have intentionally decided to spend as little money as possible and put as much money as possible on my mortgage.
Last year save $ 4,000 on a vacation from rewards. I got a signed up bonus of $1,000 and 5% back on first quarter. Paid all my insurance for year for three cars, house insurance, life insurance and umbrella in that quarter. Total cost was $ 5,000. Use our sinking fund to paid all the insurance on the credit card. Travel credit for this transaction was $250.00 cash back for 5 minutes of my time.
Credit card is a bonus if you pay it on time and if you use it for necessities only. In our case, our credit card rewards us with free flight tickets. A credit card is not for everyone.
Yeah but they can sell more by ignoring the overall tread and just focusing on what they can control. They are not trying to be honest they want other to buy a solution from them....
@@donaldlyons17 the point I was making was that as time goes on, the term “middle class” in itself doesn’t make sense/ doesn’t exist/ is quickly going away. In regards to this video, sure, average people can follow these steps to avoid getting into debt but to say these are “middle class traps” doesn’t make sense.
These traps are exactly why the government can play the people by making everything loan based, further increasing prices for everyone because of an artificial purchasing power that is inflated by debt. The more people are willing to take debts the easier it is for universities to keep tuition high. People voting Democrat also make the problem worse, as democrats love giving public money away to universities who already make a profit.
The get rich quick traps are a parasite to middle class, with so many people taking advantage of folks on social media. Solid advice, bullet proof. Some other traps are subscription services (how many do you need to watch something?), and constantly eating out.
I know I've been fortunate. Not through any great wisdom but I had frugal parents that set a good example and I didn't totally not listen to what they said. I've screwed up a few times but never so bad I couldn't recover. When we bought our house it was crazy how much we'd have qualified for. We bought a house that was less than 2/5 of what we could have bought, and even that I was concerned may have been stretching it too far. I remember the banker saying we where the first people in many months that weren't trying to stretch how much house we could buy to the limit. I also remember her saying that most of those people were one missed paycheck away from disaster. We've been debt free, including the mortgage, for years now. That doesn't make us immune to financial rough times but it's one whopping big worry off the list.
Thank you, George. I am currently renting and also wanting my own home. It is good to be reminded that home ownership does have costs that I simply could not afford right now and to hear that renting is a good option, for someone in my particular case.
Sorry, but I'm still trying to figure out how you're supposed to find a decent home, in a decent neighborhood, within an hour of your work in any proper major city with a mortgage(INCLUDING Taxes, insurance, and HOA) at no more than 25% of take-home pay, on a 15-year mortgage, at current interest rates. The math ain't mathing.
Love it, always! Next time you say “no” you have to show Grogu in his protection droid, IG-12 slamming the no button over and over 😂 Great job to your team too-killing it all around!
Scarface movie Hey, Tony. Remember when I told you when you first started working for me, the guys that last in this business, are the guys who fly straight. Low-key, quiet. But the guys who want it all, chicas, champagne, flash... they don't last." It's the same concept. Those who win the lottery, make quick money, have a hard time keeping it due to a lack of discipline.
Why not approve of househacking? It seems to follow the "Live like no one else so you can live like no one else" rule. Sacrifice today by living with roommates or renting out to tenants to significantly increase your income so in the future you can better afford your own place. If it's the fear of them not paying then don't get a place that you can't afford or do your due diligence on your tenant/roommates.
What state are you in? 2.35% is great. How did you get that? Our interest rates on our houses are 2.99% and 3%. We are in CA. We are also not paying the houses off early.
Using actual cash to buy a car from a car dealer was one of the funniest and most satisfying transactions ever. Just walked in and laid down a fat envelope full of 20's and said "don't ask". Is the turtle still trying to eat that strawberry???
We got a 30 year mortgage 2 years ago before we knew better. But based on the large payments we've made, we got it down to only 16 years left now. Goal is to have much less than that soon.
Credit and debt get people into trouble. Too much house for too long on payments. What you make in a year is about what you can afford in a house. Bought current tax sale house and acreage up north cash. I keep my utility and insurance bills under 1000$ a month. Our 2 daily drivers and 2 4x4 winter beaters plus old wagoneer paid for. I like gold and silver, and tax sale houses. I have construction skills so tax sale houses are a store of value to me. I vacation 3 times a year 9-14 days at camp and building cottage out of pocket.
Find a good mechanic. Totally worth it. I been fixing up my beater car for years and saved a boat load of money. Many say if it costs more to fix than it's worth you should get a new car. NO!!!! KEEP YOUR BEATER!!!! If it breaks then FIX IT!!!!! Yeah it's a pain to fix it but it's also a pain to live broke.
5:26 those arcade fun tickets is worth about 0.01. If you going try to win a Nintendo switch from fun factory. It costs about 5 to 10 time more try to winning it by play game. Just save your money and buy it from the store.
I graduated straight into the moratorium. Even though I do have hope, it’s very cautious. I have been dumping so much into them since even with $10k forgiveness, I’d still have some left to pay anyway. Might as well pay it up now.
Regarding the mortgage - go with the 30 year fixed, but pay it off on the 15 year schedule. If hard times come you can always fall back on the lower payment of the 30 year, then get back to the accelerated payments when things stabilize.
I'll send this to someone I don't like. Just to trigger them... Also, did all those things. Didn't work guys. 7 baby steps got us further than all of those things I've done combined. So yes, tried and proved.
Also, ending the “millionaire” section with tips that /they/ (a millionaire) follow, by saying, “it’s not that hard,” you are correct; for a millionaire it’s not hard to invest, pay off debt and live on less than you make. Solid advice….if you’re a millionaire.
Hey George, thanks for the in depth videos! I hope you’re doing well. I just watched your wealth killer video on car loans for new vehicles. Could you do one for leasing vehicles? I have never leased a vehicle but was curious how that worked. I am driving a 2006 Ford F-150 with 194,000 miles on it. Runs great and hope to have it for a lot longer. Have a great day!
Every one I know has a car lease and they say they don't want to deal with repairs. I am mystified yet they truly believe this is the way to live. I am guilty of this and will never go back, I buy a car and keep until I can no longer drive it. I also know they want to drive new cars and I get it but I would rather save some cash.
4:20 Opportunity cost. The interest rate for a home loan is way lower than what you'd make from the stock market. Better off investing the money you would've spent paying off your home into stocks.
