Afraid To Use Savings To Pay Debt!

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@TheRamseyShow 5 лет назад

How can we help you better? Give us your feedback! goo.gl/forms/s4N0A1GdHqRzEZNd2

@melanieroofe8807 5 лет назад

Hi Dave!! new to your channel and LOVE it!! I need your advice....I am married (husband has stable job for over 23 years) and self employed personal trainer (low income but high flexibilty as my mother is halfway across country struggling with cancer complications for past 6 years and with flying back and forth dozens& dozens of times to help her and roller coaster ups and downs with my income (last year i had the worst of my 23 year career and lost nearly 70% of my clients/income for over a year. I am building my clients back up (since last summer i am back upto about 80%) I have some savings (finally able to build emergency fund of 6 months of my own personal /business expenses as my husband cannot support all of my monthly expenses). I have my final credit card down to 2K, and about to transfer last business loan debt to 0% APR for 18 months (4,700)so i can be debt free and then begin stashing more money away for retirement. My savings is about 21K, should i just pay off the 6700 (even though all it is on 0% interest for another 18 months?) or whack at it slowly while i continue to stockpile cash (i feel more secure having upto one year of expenses saved since i do not have a steady paycheck where i know exactly how much gaurenteed income i have coming in every month. If i had a regular job, i would pay it off without blinking. But after the severe financial hit in past 5 years and severe income hit last year, my income is not stable and the only way i see ever finally get out of the roller coaster cycle of going into debt , paying it down, then income drops, and i go back into debt again, is to save enough so it will not happen again. My fears are getting in the way of me seeing this clearly. Your thoughts?

@ghiaferrari7585 5 лет назад

Is there a way to pay cc bills without the interest? Do cc companies have hardship type of program you can avail? Thank you Dave.

@simpletongeek 5 лет назад

@@ghiaferrari7585 depends on the company, but yes there is. Ask the cc company directly.

@MW-sv1dp 5 лет назад

I want to call in but I don't want to sound like an idiot 😂

@WelcomeToOzzy 5 лет назад

You already helped me so much! Im debt free thanks to your videos!

@thefall3551 5 лет назад

Just took 43,000 put of my savings and paid off my debt. Left with $3000 in my account, following the program and trusting that we will survive.

@TheThrivingLady 5 лет назад

Wow! That's amazing! Congrats!

@BombBoy96 5 лет назад

Congrats man!

@Dan007UT 5 лет назад

Nice. Its way easy to save money fast when you're not paying any debt!

@ladyd900 5 лет назад

That’s awesome!!

@rosasantana725 5 лет назад

You will survive..and life will be better without debt

@Jeter350 4 года назад

I paid my car loan an hour after seeing this video. This young lady was literally in the same situation I was in. Dave finally gave me the stones to pull the trigger.

@JesusIsLord7773 4 месяца назад

Congratulations! 🙏🏼

@Ethiodawg 5 лет назад

I had $48k student loan debt in September 2018 when I learned about Dave Ramsey and his baby step method. It took me almost 6 months to decide and use my savings to pay off. As of February 15, I’m 100% debt free and I sleep well at night.

@Hello-mh4pj 5 лет назад

Zqueen congratulations

@ChrisInvests 5 лет назад

You're on the way to becoming wealthy!!

@TheThrivingLady 5 лет назад

Congratulations!!

@BombBoy96 5 лет назад

Congrats man!

@samh2023 5 лет назад

You went to college right? So you probably know math and interest rates. I just don't understand why people wouldn't use their savings to pay off debt!! Even more, how can you save while racking up debt???? Just use your savings each month to pay of debt each month, that way you don't pay interest. Why do you need Dave for that VERY simple equation.

@chassiddywilliams3309 3 года назад

“If you have a negative net worth, YOU’RE BROKE”..... Yikes!

@InvestingHustler 5 лет назад

The worst feeling ever is working hard for your money seeing your account grow then having to use that money to pay off debts. But it’s totally worth it when you’re debt free 🙏

@RizalBoon 5 лет назад

Yeah. I have that same feeling recently when I used my savings to clear my credit card debt. It felt refreshing though after being freed from that debt.

@freedomworks3976 5 лет назад

No sir ... I must disagree. There are much more worse feelings then that. You are experiencing the dizziness of Freedom. Freedom scares more people then the possibility of pain.

@Kevin_Roche 5 лет назад

@@freedomworks3976 Well, I am free and happy. I don't live in the nicest place or drive the nicest car, but it's nice to have more money to know what to do with it.

@samh2023 5 лет назад

@@RizalBoon That just doesn't make sense to me. How can you save while creating credit card debt??? Why don't just use the money that goes to savings each month to pay of the credit card each month? That way you're not paying interest. People are weird and stupid sometimes I guess.

@kufudokungfu 5 лет назад

I feel the same same

@mattcrouch9348 5 лет назад

I think she has a correct instinct: Dave's $1k emergency fund really isnt enough in 2019; I feel like 3k is a better minimum for safety

@anazuosalihu9712 5 лет назад

I was going to type this same thing. The funny thing is that I am not even American. I live in a 3rd world country with a far less cost of living and $1000 isn't substantial for an emergency stash for me.

@Lady.Luck. 5 лет назад

Agree. I tend to think of it as a months worth of basic needs is a good way to look at it. IF you were to lose a job, you would have your rent and food covered and have a few weeks to find new employment.

@kaylee660 5 лет назад

I feel like $6000 is sufficient if you have rent, old car and perhaps can be out of a job for 3 months.

@kalon1100 5 лет назад

I like to aim for the amount of your expenses for 3 months as an emergency fund if God forbid something happens.

@travisdejong2354 5 лет назад

The $1000 is just sort of a random number which is what I don't like about it. I'd say have a bare minimum of 10% of your annual net income saved in order to meet at least some emergencies. $1000 just isn't going to cut it for most people.

@ladypink3473 5 лет назад

Wow Dave gave her some really great advice!! *Takes mental notes for future self*

@macturtle4904 5 лет назад

👍🏿🇺🇸

@raulgolfs 5 лет назад

Ahh I was right here in the beginning of paying down my debt on my debt free journey in baby step 2. But once you do it. A total other relief happens! 🙌🏽👍🏽

@feduppatriot7647 2 года назад

It’s just so scary not having that stash because you’ve been down that road of not having it and that’s when everything decides to brake down , needs replaced ect. then you don’t have that extra little stash . That’s my fear as well.

@4EVEREDST 5 лет назад

Thank you Monique and Dave - this is almost my exact situation. My savings is my "mancoat" and security, and it is extremely frightening to use these funds to pay off debt. I am listening and following Dave's suggestion.

@formula112967 5 лет назад

You don't have $26k In the bank if you owe $48k.... You have negative $22k

@jonathancabrera1935 5 лет назад

Exactly!

@capnskiddies 5 лет назад

Yeah but she could throw twenty at the debt and still have a safety net of sorts.

@downburst1 5 лет назад

She’s on the right track. The student loan was an investment. Well done to her. She has a great future if she carries on with this behavior,

@RainbowManification 4 года назад

A good way to look at it.

@Semiam1 4 года назад

This is one of Dave’s best calls. Simple but very deep commentary about the correct mindset.

@eso1666 3 года назад

That’s what I exactly did ... I paid off my 26k car loan with all my savings and I have 3k left after all. THANK you Dave!!! You changed my life💪👍

@lookingforsure 5 лет назад

Loved that call. I know the stress of not having anymore savings. My emergency fund is 8k (including a 5k car sinking fund) and i still have 18k in student loans.

@stephaniedingle9061 3 года назад

This call made me put my savings toward my CC especially since I just calculated my interest for the year and it made me furious.

@TyWerks 5 лет назад

I don't think I could ever use all my savings to pay off a debt

@JSkillz2315 5 лет назад

She basically asked the same question I had. I can pay all my debt now but would only be left with a few grand after.

@joyebriggs 5 лет назад

Think of your situation this way: if you have enough in savings, you can pay off your debt. But if you pay all debt off. How much a month could you save if you had no debt? You would be able to regain that loss within a few months.

@jimhandler1129 3 года назад

Saving money in case anything happens. Hello, something has happened. You're in debt.

@Jamesettaspeaks 5 лет назад

Pay your debt! ❤️

@GrapplingIgnorance 8 месяцев назад

I recently did something similar by throwing about 25K of savings at the principle of my mortgage. I still have a few months of expenses saved, but I can tell you I do NOT regret it one bit. I was worried losing that sense of security, but it actually feels SO much better seeing my mortgage that much smaller and knowing that much less of every payment I make on on it is going toward interest.

@cityofjoy8830 3 года назад

Trust me when you keep on making debt payments you feel like being owned by someone else. Better to have a years worth money as a safety net and payoff loans.

@BrianaBudgets 3 года назад

I’m in the same boat!! Except I make $50,000 less😂

@alpinismutilitar3886 4 года назад

Sincere thanks from Romania. The problems of the people of the USA are like looking into the future of Romania. We learn a lot from your discussions about debt, savings and useful investments for those without an entrepreneurial mindset or business. Discussions are great for people - employees - and how they can evolve having a decent living in society. So in the shortest time he can put his head on the pillow quietly without fear of tomorrow.

@1111_Millionaire 7 месяцев назад

I’m the same way as her. I think it’s fear from growing up with lack scares me to take all my raining day money to a car debt. Dave made good sense of saying how you really broke

@kevintalley1158 3 года назад

Ur right Dave if you owe the money it’s basically not even yours

@memags 5 лет назад

I’m in a similar situation. I’m 47, have no debt but a remaining mortgage of 85k. I feel I have two choices. 1. Limit my investing and go crazy on the mortgage and I could pay it off in about 2-1/2 years. 2. I have 108k in my savings and pay the mortgage off today. Touching that hard earned savings is very hard to do. I like having that cushion.

@NeoAndersonReloaded 5 лет назад

Mike Mags you only losing money on interst and inflation. Pay the house off now.

@thomasreedy4751 5 лет назад

If your investments make more money than interest and taxes, why worry about a mortgage you can pay off at anytime? Unless you are living month to month because of your mortgage, I wouldn't put invested money into it. If your 100k is just sitting in a low interest savings account ... then you have to start learning to invest it.

@newkirk7591 5 лет назад

I have a similar situation and I feel the same way. My only debt is my mortgage which I owe 82k, and I have a little over 130k saved up.

@TB-ev2hg 5 лет назад

What would Uncle Dave say?......Do that😊

@santoniop5618 5 лет назад

This is great. Very well said by painting the picture for her how she's broke because of a negative net worth but softening the blow by admitting she's smart (which she is). I would have even added how paying off the car will put that much money back in her pocket every month to make it an even easier decision, because now it seems like just throwing 26k away but that's not entirely true since she's freeing up whatever her car payment is.

@summersea78 Год назад

Just paid off my car after watching several of your videos all day! I was so nervous to move that money out of savings but now I'm so relieved to not be in debt for a car!! Thanks, Dave! 😁

@devellwilson7099 2 года назад

Appreciate the knowledge Dave, I swear you make a lot of sense.

@ntmn8444 4 года назад

I like Dave, I like a lot of his advice. Not all of it, but I do like it. His advice is overall very good advice. More people should listen to what he has to say.

@minimad8793 Год назад

this video is 4 years old but had given me the push to pay off my credit cards. I am now credit free (other than the mortgage) and yes, was scary to use savings. onto baby step 3 I go...

@xendarcodm Год назад

Not to mention all the interest you are paying every month with those payments.

@juliet2756 11 месяцев назад

You also save on interest charges.

@primmyacc 5 лет назад

So true.. people don’t pay off the debt and leave money in the bank because they afraid to accept that their network is negative

@ericworthington7299 5 лет назад

Saved $26k in savings Income $71k year $48k total debt Student loan $34k Auto loan $14k. I would at least pay the car off n full 1st with the money n savings & the car payment I'd do half n savings to reup & half on the student loan debt... That would b my security comfort...

@adamguymon7096 5 лет назад

One Get Rid Of The CAR & Ride the BUS! You live in LA! Using Public Transit would help since their is way too much car traffic and this wold take an extera car off of the over crowded roadways in LA whic would help that problem at the same time as help you not to have to pay for those other bills.

@marcopervo 2 года назад

I’d keep a big chunk of cash in the bank and pay off the rest over time.

@RizzlyricistGaming 5 лет назад

Student Loan debt of $49k victim here. Should I open a CD / Credit Union account? Everyone's been telling me that my money will grow from the interest if untouched, and I basically love the idea of having my money "work for me" as they say. Has anyone tried Robin Hood? I am a Sagittarius, and we love to travel by nature. With this debt, it stifles my ability to "live free" so-to-speak.

@Kevin_Roche 5 лет назад

Your money can't work for you if you have debts working against you. Debts work against you much faster than your money can work for you.

@TB-ev2hg 5 лет назад

You have to follow the baby steps. Do a different thing.

@TheJonOrtiz 4 года назад

I would’ve told her to use the money towards the student loan Because her auto loan is protected by the insurance company. So if she got into and accident or her car was totaled she wouldn’t have to pay off the car or much of it (If she has gap insurance). Or Pay off the car, keep the rest in savings (serving As the security blanket that she likes), Save until she can pay off her student loan debt in full and even with maybe a couple of thousand to start her 3-6 month expense savings.

@lizcedillo4602 4 года назад

Good for her on her savings and it'll be awesome to pay that debt off as quick as she's going to or did. It's now 1 yr later.

@micky6739 3 года назад

I was wondering about doing the same thing I just medically retired from the military and I have 20,000 In my IRA Roth. I was thinking about moving it into a mutual fund, so if need be I can continue to invest while in school and touch it if I needed to. To also use about $5000 of it to pay off my student loans to be completely debt free. I am also buying a house with the VA loan. I have more money saved up other places.

@batirtzeurkiaga4973 4 года назад

Fantastic advice. Thanks boss.

@danieladams4561 4 года назад

Always pay debt before you save. ALWAYS!!

@iPervy 5 лет назад

Personally would sell the car, buy a decent used one, and use the rest on the debt.

@JosephQPublic 5 лет назад

Depends on if you bought the new car brand new... I’m not selling my car that I babied for a used one that was probably dogged out and trashed. Nope.

@eunicec.chinabackupchannel863 5 лет назад

@@JosephQPublic Oh I see.

@mrfred1000 4 года назад

@spirals 73 IF repairs are an issue yes. But we aren't even sure if she NEEDS a car. If she doesn't she could sell the car and tough it out using public transit and flip all the money on the Student loan instead which is quicker then doing both. Sure she would then have to buy a new car BUT the woman on the call is in the comment section and she says she saves about $18,000 a year so she can drop $6k-$8k on a good used car instead of a junker or even $10,000 on a great one and be fine as she will be debt free zero payments.

@pimpballer3 5 лет назад

Dave should say sell the car and pay off all the loan

@pimpballer3 5 лет назад

Melinda Francis and.... she is still in debt. Earning a lot has nothing to do with being debt free

@Sergio-e5y Месяц назад

I disagree. If it took so long save 26k and an extra 500 a month which is 125 a week will not help you save any quicker, especially with utility bills and mortgage. Keep the money and just use your current weekly checks to pay your loans until you drop them to 2-3k then use your savings to pay in full.

@justymedia3527 4 года назад

She should have paid off the student debt first, can always liquidate the car to pay off that loan and buy a cheaper car... I get the snowball rules though.

@chrismccaffrey8256 2 года назад

If its difficult to pay it off all at once, why not pay off half of it so you have some savings still but get rid of a large chuck plus its interest. Its a halfway mark if you dont feel confident paying all those savings for debt in one go.

@altheabeckford2578 4 года назад

You don’t have any money if you have debt it’s a scary thing but do it hun

@BigHomieLNRD 4 года назад

Hey Dave, I have the bubble guts Dave: “how much is your house hold income”

@Malitubee 3 года назад

😂😂😂😂

@frankrobinson5453 6 месяцев назад

Not saying his advice was bad, but I think she should retain at least $5K and move it out of savings into a brokerage account and start investing; at least in mutual funds to begin that process. Then aggressively bring down the remaining loans to zero. At the end of that, she's debt free and has a leg up on her retirement/house plans for future. One key point missing here are the interest rates on her loans.

@scitch34 3 года назад

Great advice Dave!

@LydiaMoodyinFlorida 4 года назад

I feel like this lady does I have money saved, but I don't want to use it to pay debt. I realize I'm holding myself back from progress. I'm being silly.

@kennybequiet8596 5 лет назад

buying a house in 2019 is one of the worst financial decisions you can make.

@leeroyjenkins5208 3 года назад

If you're in debt how do you have savings? Lol

@Manatti06 4 года назад

What if you have 1,000 Emergency Fund and a 1,000 credit debt. Do you use the 1,000 to clear off the debt...? I'm of the understanding that you have to keep 1,000 in your Emergency Fund no matter what. So essentially build the Emergency Fund to 2,000 then use 1,000 to clear the debt. Someone correct me.

@SimplyZBest2000 5 лет назад

God Bless Dave Ramsey!!!

@chillenev1445 3 года назад

I have $18,000 in my savings and I need to pay off a $3900 motorcycle debt. I have the money in my savings and I'm panicking over it.

@uriel-heavensguardian8949 2 года назад

Thanks for the awesome videos

@chrisbaker2669 5 лет назад

If you have $26,000 in savings and $46,000 in debt you are negative $20,000.

@HereIsWisdom1318 4 года назад

It just seems like if she pays off the car, and puts the payment of that on the sachool loan, she pay at least $1,000

@teambenjamin1 11 месяцев назад

If you have debt, you don’t have savings

@mccoyji 5 лет назад

Great advise

@lauremckinney7111 5 лет назад

So riddle me this, she pays off her debt and has $1000 left in her emergency fund....and then the car needs a $2000 repair. Where is the best place for that to come from if her monthly cash flow can't absorb the car repair? Life continues to throw debt at you.

@adambuysyuckyhouses 5 лет назад

My student loans are like 2 and 3% interests I'll never get a house loan for that even

@aeromedical6750 4 года назад

I know the feeling. I had to pull $6000 out of savings to pay off my car. At first I was very uneasy about it. Once I did it, I felt like a huge weight had been lifted off my shoulders. I knew it was the correct decision after I did it. I just had to make the decision and not second guess myself.

@emresenturer 5 лет назад

I don't pay off my low-interest debt in order to built wealth. A diversified portfolio's Market return is consistently higher than loan/mortgage interest rates. Why Dave never advise anyone to compare options on the table before tackling down debt? The big goal should be a very low-interest debt which you can leverage a larger financial asset(liability until paid off) which you can generate higher financial gains over time.. Noone is gonna become rich with a monthly salary. This is stupid! In other words, why the heck would I pay my 1.99% apr car loan while I can use my savings to get higher market returns with moderate to low risk?! Can Dave or someone advice?

@emresenturer 5 лет назад

@Johnny FiveFive congratulations on your achievements. Really impressive! I do agree that paying interest is stupid on anything especially if it's a car that depreciates.. I always compare my investment options and try to choose ones that make the most financial sense. If I need a car, I finance a used one instead of pulling out $$$ from my portfolio which makes me every year more than the loan's interest rate with managed risk. It is just simply financially more advantageous. (y) I look at my spent money as "not invested" oppty cost.. I feel bad when handing a whole chunk of my hard earned money on something that depreciates. This is why a very low apr car loan is my way to go.. :)

@ramonaalba1175 4 года назад

I want to go back to school to further my career. I have a savings of about 30k. I am stuck on a 3 year lease that’s 21k and only worth 12k. Financing the lease will lower my $463 payment to $289. My mother offered me her spare car that’s paid off. I know that would be ideal but what can I do with this lease I’m spending $600 on with insurance. Financing company will lower payment to $289 but for 72 months w/ 5.74 APR. My income will decrease significantly since I will be working at least part-time while I’m school full time. Any advice would be greatly appreciated :)

@swavekbu4959 3 года назад

The goal isn't to "retire with dignity." The goal is to life each day by the lifestyle you most desire. If you aim too far into the future, you're missing out on today. When I'm 65, I want to be broke, not rich.

@randy944 3 года назад

So I guess you're lifestyle choice will be homeless.

@carlosgutierrez2789 5 лет назад

murphy's law...

@macywilson8127 4 года назад

How do you make a call?! I have a question!

@jmosley4915 4 года назад

Macy Wilson Contact Dave On Air Weekdays 2-5 PM ET Call 888.825.5225 Email Dave Post on Dave's Facebook Tweet @RamseyShow

@pihla01 5 лет назад

How much does she make a year? I didn't understand

@mentalhealingwithelaine 5 лет назад

pihla01 I make 71k

@pihla01 5 лет назад

Monique Harris Thanks!

@killamatrix1 5 лет назад

@@mentalhealingwithelaine I heard this on the radio when I was driving. You must be an adjunct

@123cutieputtie 4 года назад

This my current problem. Between my checking and savings I have just enough to pay off all my debit except my car. But I'm scared to make that leap

@capnskiddies 5 лет назад

I've plenty of debt, but the only debt with interest on it is the mortgage. Car and furniture on 0%.

@fukcserbia 3 года назад

Should I pay my student loans as fast as possible? I live in Sweden and on student loans we barely have interest in student loans. Should I focus on paying my mortgage and pay my student loans as planned and not as fast as possible?

@RitaOwens94456 Месяц назад

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

@BarbaraHarper-c1p Месяц назад

Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks

@RitaOwens94456 Месяц назад

@@BarbaraHarper-c1p However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments

@BarbaraHarper-c1p Месяц назад

@@RitaOwens94456 Oh please I’d love that. Thanks!

@RitaOwens94456 Месяц назад

@@BarbaraHarper-c1p Clementina Abate Russo is her name

@RitaOwens94456 Месяц назад

Lookup with her name on the webpage.

@coachbahman 5 лет назад

Pay your debts, i learned the hard way. It will eat at you.

@callamcodes 3 года назад

I'm tyring to get debt free at the moment. As annoying as it is to see my money go to it every month, I know the end result will be worth it.

@t193u 3 года назад

@@callamcodes keep up the good work & stay focused!

@johto 2 месяца назад

Yep. I've foolishly kepth my room mate (student loan) for almost 20 years paying it slowly. Then i get focused and it was GONE !

@IamtheGL 5 лет назад

Be afraid of having payments.

@tracywalker244 5 лет назад

G L So True! Who wants to live with shackles in this world?

@cerebralmindgame9818 5 лет назад

The sad truth is that the majority of people look at living with a life full of payments as a normal lifestyle 😔🤦🏾‍♂️. Smdh...

@kentrobinson7479 5 лет назад

So you don't pay GAS...ELECTRIC...CABLE...TRASH...WATER...SEWER...RENT/MORTGAGE...NETFLIX...ETC every month???

@GoogleAccount00 5 лет назад

KENT ROBINSON it’s not DEBT!!!

@kentrobinson7479 5 лет назад

@@GoogleAccount00 So you paid all your utility bills for next year so you have no debt???

@mentalhealingwithelaine 5 лет назад

This is my call and to answer questions. I am 27 years old. I graduated my masters program two years ago. I was a teacher for a year before becoming a counselor. Before this call I had more saved but payed off $12,500 in debt. On average I save 18-19k a year. But have been paying other things down. Thanks Update: sorry for the long wait but,... I am debt free and now am fixing up my property so it can become a rental property ❤️

@okorolina 5 лет назад

That's awesome Monique, I am same I have two kids and a spouse, we have an emergency fund and this is a tough situation to be in. My hubby doesn't want to touch the savings but I still have student loans left and can't really move forward on goals until its paid off or at least wayyy down. Kudos to you for calling in!

@mentalhealingwithelaine 5 лет назад

ThatNATLife the reason I felt that way is because if I spend the money and the bill isn’t paid off and an emergency comes up. Like unemployment or whatever. Then I will have none extra cash and still have a balance on my student loans

@AllCurledUp 5 лет назад

Great job Monique! Please take his advice and knock out your student loan before the end of 2019! You can do it! If you wanted to get real aggressive you could sell your car...buy a 5000 dollar car and use the rest to pay off your debt!

@MsDEV89 5 лет назад

You got this, Monique! The first time I made a four-figure payment on my student debt, my chest got tight. Paying it down frees up your future money so much though.

@killamatrix1 5 лет назад

@@mentalhealingwithelaine I feel the same way. Has it worked

@dukeduke7569 3 года назад

I’m in the same situation.... I have $15,000 saved and owe $4,000 on a vehicle,and scared to pay it off.... I feel more comfortable putting $1,000 a month towards it every month until it’s paid off........it’s hard to save money and I don’t ever want to be broke again or live check to check.....

@shannonland1137 3 года назад

Just pay it and than monthly put it bak it will be like the snap of a finger that u never touched it with so little dent I mean I rather see u pay urself monthly than to pay someone else monthly

@Musicienne-DAB1995 3 года назад

So you have a good instinct, but it can be difficult to see that it's holding you back.

@d_t_8__102 2 года назад

So true.

@bnepaul9268 2 года назад

It's always good and a peace of mind to have money in your savings, I dont care what DR said ,when u use all your savings to pay off all your debts, it's never good to leave yourself broke, what if u loose your job, what if u get sick or what if your job downsize, anything can happen and to have some money as your safety net, for your peace of mind, if u put 1000 on your bills, u put 1000 in your savings, then u will be 1000 going down on your dept and 1000 going up on your savings, never leave yourself broke, I listen to Dave Ramsay, not every thing I will agree with , he makes a lot of sense but still u have to follow what works for you.

@jeanethazcue7500 5 лет назад

I just paid off my student loan because of this call, thanks Monique and above all Mr Ramsey :)

@mentalhealingwithelaine 5 лет назад

Jeaneth Azcué I’m glad to help

@juanmedina2323 5 лет назад

@@mentalhealingwithelaine how were you able to get a phone call with him?

@ericworthington7299 5 лет назад

@@mentalhealingwithelaine Saved $26k in savings Income $71k yr $48k total debt Student loan $34k Auto loan $14k. I would at least pay the car off n full 1st with the money n savings & the car payment I'd do half n savings to reup & half on the student loan debt..

@dsinformation6640 5 лет назад

Congratulations!

@anthonyn.3575 5 лет назад

Did you pay off that car of yours, and maybe some into your other debt ?!?!

@jculver1674 5 лет назад

I've never related to one of these calls more. I'm a natural saver, to the point that I drive my wife nuts with my stinginess. We're doing okay on income and savings, and I want to pay our debts off, but I have this irrational fear that it will wipe out our savings and we'll end up broke. I grew up broke, and as a dad I'm determined to never do that to my family. Very glad I heard this call. EDIT: Thanks for the thoughtful and encouraging responses, everyone! We have since paid off our home and are debt-free! It was scary but worth it to do.

@shachede6828 5 лет назад

either way your net worth is still, money you have minus your debt. that money isnt really your cause you have debts. and if your debt is greater than what you have you're broke! just pay it of. and start saving. and loosing the purse strings a bit. you can do it!

@stjackso17 5 лет назад

Chewable Jim I’m in the exact same boat. Decided that it needs to be paid off but keep dragging my feet because of be fear.

@chinita1pr 5 лет назад

Same

@mikejackson7881 5 лет назад

Pay the debt off then focus on saving🙈

@blakeker 4 года назад

Jim you sound just like me. I think I’m going to just pay off some debt from my savings

@yamamancha 5 лет назад

I used to have this fear until I took the plunge. I then immediately realized how STUPID I'd been for valuing a savings balance over the reality that I was paying interest on something.

@clementineslaughter6904 9 месяцев назад

Interest is the devil to me. If I'm hesitant to pay off the principal, I'm definitely not when it comes to interest. Gotta get rid of that immediately. I'm still in school and already making payments to get rid of interest because I don't want none of it.

@franciscortez205 5 лет назад

I like the idea of keeping $12,000 in cash and pay off the loans until you have a $12,000 balance left . . .then pay it all off and be instantly debt free. This keeps you with a safety net.

@mr.speyside5240 4 года назад

No debt is the # 1 priority. Get there. You can truly start saving after that.

@vadimnobel7199 3 года назад

I have to say a $1000 emergency fund might not be sufficient though for some families in HCOL areas.

@nicolettehare3322 3 года назад

@@vadimnobel7199 that number is pretty low now a days but nice first amount to get into savings

@cakedupkevin 3 года назад

But if I want to use my 401k to do that and I'm not making enough to pay off my debts fast enough, I get told I'm wrong!

@tonywasikhongo7510 3 года назад

@@nicolettehare3322 you will be surprised alot of people cant even do that

@blackhatves1075 3 года назад

@@cakedupkevin depends. If your 401K isn't using PMCC's id recommend you do that as 7% a year vs paying 30% apy you see the mathematical issue. If your investment strategy is theta gang and using poor man covered calls you're probably making close to 30% a year if not more.

@kylerider7125 5 лет назад

I get how she feels I had a similar situation but after I wrote the check and cleared the debt and had hardly no money left I actually felt much better. Because I knew everything I saved going forward was mine mine mine

@TheThrivingLady 5 лет назад

I can relate to her so, so much. This was me just a few months ago. I struggled so much with letting the money go. But, I did. Making a five figure debt payment took my breath away. But, I'm still breathing. And, I'm also debt free. She can do it.

@lageneice 5 лет назад

Malika TheThrivingLady i just did and felt the same way wow still a little jittery

@dsinformation6640 5 лет назад

wow! That's awesome! Congratulations!

@stjackso17 5 лет назад

The more I read comments like this, the more I am building up the confidence to let the savings go and trust the process. Thanks for your comment.

@TheLethalIntrospectionCrew 4 года назад

Yess!

@habibah2702 4 года назад

@@stjackso17 Amen! I agree 100%! I am at the very beginning of my journey and my nerves are a wreck! Thank you for sharing

@roxannenompmoht4037 5 лет назад

The interest you are paying on debts is much higher than what you will make in a savings account. That's what pushed me to pay of my debt using savings. Now it's easier to save when you have no payments

@mentalhealingwithelaine 5 лет назад

Roxanne Nompmoht for my student loan yes but my car no. My car is 1.8% while my savings rate is 3.8

@Wajz3 4 года назад

Really depends on the interest rate....

@xyzsame4081 4 года назад

@@mentalhealingwithelaine Did you factor in other fees ? like for the account etc. ?

@anilu3021 5 лет назад

Good clip - I just took $5k from savings and paid off the parent plus loan!! $100k in 25 months🥂🌈💪🏻

@brsugarbabe 5 лет назад

Ana Castilla Congrats! You paid off 100,000 in 25 months?

@dsinformation6640 5 лет назад

wow! Congratulations!

@mentalhealingwithelaine 3 года назад

You’re amazing

@VanessaSanchez 3 года назад

Biggest thing that stuck with me was Dave saying “you feel like you’re not broke right now but you’re broke” y’all I was holding on my savings up until earlier this week. I went ahead and kept the $1k recommendation but he’s right. When I had a “safety” net I didn’t feel broke but now I feel super broke and have a super aggressive plan to get debt free

@shanaythornton4718 5 лет назад

Paid my truck off today! Thank you Dave!

@Jorgerauhltorres 5 лет назад

This is exactly how I felt last week, I payed all of my debt, about 10k with what I had in my savings account and now I’m just focused to building my saving back up again.

@BombBoy96 5 лет назад

Good job man!

@thanagitlow939 Год назад

Man you motivate me !!!

@FunandBudget 5 лет назад

This used to be me...when I started the dave ramsey plan I had about 13k in debt and had the money in savings but did not want to put the bulk of my savings on the debt...I eventually did it, but whew it took some convincing (which I did by continuing to watch dave ramsey debt free screams and other videos from people paying off debt).

@racpatrice 5 лет назад

You were left with no savings after? That would terrify me so I understand where the caller is coming from

@surplusdivision2461 5 лет назад

When I started listening to him I was 28 and almost a millionaire. Don't stop learning just because you are well off!

@thomasbooker3829 4 года назад

Congratulations

@judyjohnson9207 3 года назад

Congratulations! Any updates?

@jamesb93612 5 лет назад

Was in this situation last year. We took out ~$175k and paid off all the student loans and consumer debt. It was the best decision we have made. Now a year later and we are only about 3 months out from paying off our house! We are looking forward to being completely debt free!!

@nawill9209 5 лет назад

jamesb93612 how did u come to the decision to do that? I have 70k cc debit. Lawd. And I don’t know what I spent it on. I have been going back and fourth with using my savings to pay this off but I am sick about doing it. What made u bite the bullet

@xyzsame4081 4 года назад

+ james - that comment aged well. Corona crisis hit - but if push comes to shove you can stay afloat with a reduced income. Stay save stay frugal ;)

@joshford7828 5 лет назад

I love Dave's point. Your broke but you dont know it. Having debt gives you a negative net worth. So much wisdom there.

@annwilliams6438 5 лет назад

There is also an interest rate question.... you get, say, 2% interest on the cash from your savings. However, you are sitting with from 5% to 20% of interest on your debt. Do I need to say more?

@stevedrake380 3 года назад

This man is incredibly motivating. It was clever how he used her own professional training as a counselor to inspire her. Dave 2024!

@randomkid7390 5 лет назад

Think about it like this. Don't be afraid to pay off your debt even if it means you are low on cash. The only reason why you want cash is to avoid debt. Guess what, paying off your debt avoids debt. If you pay off your debt, then an emergency comes up, then go into debt if you have to. But don't not pay off your debt just to avoid debt. It makes no sense when you think about it.

@lenas5613 5 лет назад

That's the rational way. You're right. Most fear is irrational. I could pay off my mortgage, but have very little left. Putting those payments back into savings would take me a couple of years to build it back. I'm retired. So, yeah fear...🙂

@carlynicoletownes2274 5 лет назад

Credit card debt would be much worse than the debt she was talking about. Student loan and car debt usually don’t carry a 19% interest rate.

@finallybeingfrank9149 3 года назад

I love the way you worded that. Wow.

@linahmahlangu7367 Год назад

That’s why the first step it’s an emergency fund

@pangkue3276 3 года назад

This lady sounds like someone I want to be. You can tell that she is highly intelligent and sophisticated. She's successful but she also has her struggles.