I needed socks so I bought a package of 20 for $10. My feet sweated like crazy so I developed athlete's foot. The dye would rub off onto the carpets in our rental apartment even after several washings. I then found socks that were 3 for $10, 80%+ cotton, and my feet are happy and they look great after 2 years. Lesson: be very wary of the cheapest option. Second cheapest is usually fine
I once bought a pair of socks that read, guarantee to make your feet sweat 50% less or money back, got home open the package and there was only one sock!!😱 I was really mad and then got over it because my feet did sweat 50% less
It’s true. But when you’re working so hard to get out of debt, a $5 thrift store pair will get you there faster than a pair of yeezys (drastic analogy, but I’m terrible on fashion/brands so....). I think that’s the idea here.
Agreed .. I paid off $107 grand .. running shoes can cost $25 or $250 .. depending on age of the kids, I did this: I’d offer to buy something reasonable like $60 bucks ; if they wanted brand crazy to impress someone it was on them to earn it .. lesson learned for car buying later, and money saved for debt payment .. I got more debt payment money from the second job than by cutting expenses, but I learned how to never get back into debt from cutting expenses
He didn't answer the question at all. People do need things regardless of debt status. She wasn't asking about going in vacation or going out to eat. Just took this as an excuse to rant.
The answer to cheap vs quality product is different in every case, some are worth it others not, maybe in some cases the more expensive may be the more economical option it depends on the scenario. The point is most people do not have a plan when buying something, one must do the homework and consider all related expenses before one purchase and think if it's really necessary and how it will affect the budget, and do a rational decision.
@@Justsayingthat Super easy to do. I was able to do it before it became a thing, without even trying to do it, just happened naturally. Keep the things you use, get rid of the things you don't. Have 14 pairs of shoes, keep 2, get rid of 12. Have 4 tv's? Keep 1, get rid of 3. Bought that treadmill and never used it? Goodbye. Have a living room full of furniture, and don't use hardly any of it? Keep the necessities. Good luck!
I agree to a degree. I no longer have a million pairs of heels, just one set for weddings or other occasions that require something more, and a pretty black dress that works for about anything, no matter the season. But I keep a heck of a pantry and other necessities. It’s my insurance against hard times, and neatly stored and used fifo it doesn’t present a juxtaposition to an otherwise minimalistic approach to life.
@@chartuck I have to laugh, because in general I totally agree with you. But with a husband in uniform (actually, two sets of them) that man has more boots and triple the clothing I have. I like to tease him about it.
I feel like A) This question wasn't answered as well as it could have been, because B) there was some detail lacking from the question. If you're buying things you legitimately need, whether it be for work or home, it's best to buy the best you can AFFORD. If that means $100 for a pair of CAT steel toe boots instead of breaking out the credit card for a $250 pair of Danners, then so be it. Or buying a decent set of store brand wrenches like Stanley, Huskey, Pittsburgh, etc instead of getting Snap-On or Mac for payments. If you need to replace an appliance in your home, go on Craigslist or check to see if the local appliance stores sell used appliances instead of going in debt to a big box store for that super fancy LG dishwasher with wifi. Get the BEST that you can AFFORD.
I agree with buying tools without debt, but you need to understand when quality matters. Sometimes it pays off to wait and save to buy the better brand. Gear wrench/ez red/Irwin/tekton are all superior to the stuff at harbor freight. Some times harbor freight fits the bill, sometimes paying the extra 20% saves you 10 fold in time and losses revenue.
@@dantheautoman3821 that's the point. Dave has such a cult-like religious fervor that he gets tunnel vision when asked questions he sees as a threat to his creed. That sort of approach works when you're working with weak-minded people or when you're trying to hammer in your creed and fire people up. But after your fired up, you're still left with questions on the application of the ideas. the points that Justin and you both brought up are the things that Dave ought to have discussed in his answer to this question rather than going on the same beans and rice rant that we've all heard a million times and has very little to do with the core of the question.
@Dan Theautoman Not just the time and loss revenue is saved. Sometimes the tool breaks. I remember when Craftsman was found only at Sears, and I have been a 2-generation customer - Daddy used them and now so does hubby. There's only been *ONE* broken took in my lifetime that I know of, and upon returning it to Sears walking in off the street the guy took the broken tool, looked at it, went and got us another one off the shelf and handed it to hubby. No receipt, no "sign here", no problem! Like I said, two generations. And my dad took hand tools on vacations every time we went for a drive; they stayed in the trunk except when needed. That came in handy when my mom thought she had accidently washed her brand new 40th anniversary proper-set-of-diamond rings down the sink at our hotel in Las Vegas! (We were on the ground floor of a hotel downtown.) But alas when Daddy returned from the car trunk with the tool bag Mom had already found her rings in the bottom of her purse. They hadn't been sized yet and were too big and slid off too easily so around her neck on a gold chain they went and the tools went back in the trunk without touching hotel plumbing! Thank God! Can you imagine having to explain that on checkout?! But when I got my first car the first thing I did was to buy a decent set of tools to put in the trunk....and a flashlight for the glove box. Habit, I guess....
@@dantheautoman3821 Many brands are all made by Easco and they're all the same. What professional mechanics pay for with Snap-On is the salesman and his truck. Although convenience has value too when you're at work, you don't always have to pay the extra.
agreed. the lady next to him seemed to get it. Dave missed the point. It could be that the questioner is asking whether they should buy cheap wine or quality wine. or something silly like this. But the questioner might very well be asking about something like a tool. Something that you need, not something that you want.
@@blackworldtraveler3711 maybe you can, but maybe you can't. Depends on what the tool is, why you need it, and whether you have anyone who can lend it to you. I'm not saying your wrong. I'm just saying that a tool is an example of something you may need to buy and have to decide between cheap and quality. My definition of tool is probably broader than yours. a tool might be steel toe boots for work.
You have to draw somewhat of a line. My friend was financially and emotionally destroyed by a divorce. I saw him waste away to near nothing, a mummy with dry, cracked, peeling skin because he was eating cup noodles just about every day. Don't be like him. But, you can cut subscriptions, cook every meal, sell stuff, and stop seeing people socially during Baby Step 2. I got so intense I would go nearly 30 days without using money of any kind. Following Dave's plan got me be so financially secure that now we buy quality meats and I spend $500/month just on fruits and vegetables separate from the family grocery budget because I make and drink 2 gallons of fresh juice every week. That whole "live like no one else so you can live like no one else" is truly a wonderful feeling.
@@patrickjohnson5502 I was mostly referring to "going out" as in going for drinks or meals. For sure, healthy social activities like running, hiking, cycling, or outdoor lunches in park are all great ways to socialize without spending (much) money. With socializing, it's also important to pick and choose. Some people, even (especially) close friends and family will try to tempt you or make you feel bad about your new life choices.
@@Ryan_Woods7 If he is smart IT is the best paying field for the cheapest training. Get out and go for a walk or hiking to start. Join a church. Start looking at online training for new skills. CompTia A+ ITIL Fundamentals Cert. Computer customer service job. One punch man workout. Joint CBT Nuggets or IT Pro TV. Security + CCNA, security plus. VCP, CCNP. Online Computer Science Degree. PMP Back to online school for a MBA.... You can get up to a 200K job inside of 7 years
I dont think the question is about buying a new car of vacations. I think they are saying if the hot water heater goes out or the the stove quits working while your trying to get out of debt what is the best option?
That is where the emergency fund comes in. But outside of the 4 main essentials they list no money should be spent. Most peopl (myself included) have a hard tiem breaking this habit.
I’m in agreement here. The question should have been handled seriously (I think it’s a good question; you’re in an “emergency” where the stove, water heater, air conditioner, etc. goes out: is it better to purchase a high-quality item or low-quality item?). My personal opinion on something like this is to opt for a higher-quality product. It doesn’t need to be the best, but I pay attention to user reviews so I don’t get burned (no pun intended).
The same thing as the car advice applies. You buy the cheapest possible that will get you through until you're debt free and have the money together to upgrade. You don't go out and buy a high quality product if that also means high price. That's the point - your only mind-set should be to get out of debt, NOT to set yourself up with quality goods and appliances. You can't afford that, you're broke.
@@DiscoFang Longevity should be a part of your mindset. Do you want to buy a water heater that reportedly breaks in three years for $500 or a water heater that has a several-years warranty and reportedly lasts 10+ years for $1000? To phrase it like Dave: It’s stupid to choose the $500 water heater. I understand the position you’re taking. I do agree that the product itself matters, but there are underlying assumptions that need to be stated to give an accurate answer.
A great question, answered poorly. Cars are not the only things that might be a need. For example. I badly need new boots for this winter, the soles are falling off and my feet are killin me. If I buy $45 payless boots, my feet will still hurt every day AND I'll need new boots again next winter because they fell apart. If I buy $145 Merrill boots, I can get 4 years out of those and walk relatively pain free despite chronic foot problems. Now I also need a new area rug in my home office due to a pet disaster lol. So I went to a discount store and found a simple utilitarian rug for $18 that will fill the room. Yes a rug is a need where I live because of the cold, better to have a cheap rug than have to run a space heater or turn up the thermostat. Do I need jewelry, collectibles, costly hobbies? Nope. Will I buy an occasional second hand book for $3? Heck yes if it has valuable content. Dave's response here is really lacking.
agreed. I like dave (or I wouldn't be here), but Dave gets tunnel vision about questions sometimes. I understand he's fired up with a religious fervor for his philosophy. But there are times when it seems to limit his ability to think. Like any religious, political, philosophical etc. leader who has a cult-like mentality, innocent enough questions are often thrown into the "threat" category without thinking and he goes straight into a tirade. He starts shouting the party line at you like a parent telling a kid to stay out of the street or don't do drugs or don't question the merits of democracy or capitalism (or fascism, communism, socialism, if you're on the other side of the world). Don't even think about it, don't even ask questions like that.. But in this case, it is a legitimate question that deserved more thought.
I would of really liked to hear a real answer to this question. I have watched this channel long enough to know that many peoples are at least a decade into debt. They are not getting out anytime soon. And it is definitely possible that a 10-20K car would be cheaper over the next decade than a string of three thousand dollar cars. Similarly, it might be cheaper to own a washer/dryer* than to go to the laundromats. Thinking long term, many expensive options become the cheapest options. And many people are so far into debt that they are clearly still going to be in debt in a decade. But Ramsey often says that most of getting out of debt is psychological, so choosing the most economical option is not necessarily the right answer.
Right. I think he was just trying to over emphasize that a lot of people trying to get out of debt are still spending unnecessary money and would do better to cut that out, but that's definitely true that some things still need to be purchased. This spring our washing machine quit agitating so I had to do it by hand for a couple months, and this summer the oven quit so we went without for about three months (the stovetop still worked). There are a lot of things we can do without for awhile if necessary, and doing without made me appreciate the replacement appliances so much more when we finally got them. I think that's kind of what Dave was trying to say. Not everything we thought was a necessity really was. I don't think he's saying to go without a working washer or oven but to really think it through before just assuming it's a need.
@@joyfarmergal1222 i know you said you've already replaced your appliances. So this comment is for anyone else who may find themself in a similar situation. When my oven stopped working, I researched online possible remedies I could do myself. My oven had a top element for broil & bottom element for baking. Turned out I could still broil just not bake. So my oven only needed a bottom element replaced. Many people don't realize they can replace a heating element themself. A $30 replacement part. That's all I needed. RU-vid has many videos on how to do it. We live in a disposable society that many do not even think there might be a repair they can do. Hope this helps someone.
@@JessicaHicks If you go to enough garage sales you will notice that a lot of the junk they sell for pennies were purchased with credit cards that they are still paying on. The expression on their face when you bring this up after purchase is priceless
@@jill9606 Dave and his daughter are not only speaking to the person who asked the question, but to all the people who are listening to the broadcast. So she wasn't "grilled"....Dave was just answering in a way to let "everyone" know the right answers. Look at the bigger picture here.
She makes a good point. Once you get into a mode of commitment, you are not as tempted to buy meaningless goods. It is kind of like the saying "nothing tastes as good and being fit feels". No material good gives you the peace of financial independence. Once you see that you can get there, the struggle becomes more tenable.
Try to not think of it as paying off debt but rather buying yourself some security. This will be the first taste you may have ever had of freedom. Going through the process of having no debts and money in the bank has changed me forever. It’s that feeling, which is compelling me to pay off my home, so I can truly become free without the bondage of servitude. Good luck on your journey!
@@denisedupree2080 You will soon realise that the joy was temporary and not all that fulfilling. The freedom of clearing debt let’s you sleep at night. You feel content and happy during the day. It’s great. It’s been a couple of years now for me to clear debt and now I have to deal with a divorce which will set me back a bit but I feel free with no major money worries.
That’s a stupid answer Dave. At least the beginning of it. Life happens even when we want to get out of debt. The washer goes up, car breaks down, etc.
The issue with Dave some times is he deals too much in absolutes. I know there is a reason for this because he deals with for lack of a better term undisciplined financial people. However dealing in absolutes in almost anything is not generally the best way.
Yeah because $1000 in my emergency might get me a cheap washer and dryer and break again two months down the line while still getting out of debt. Or I can use that and get a good quality washer and hang dry while I rebuild my fund and stay getting out of debt. Also, put into the budget for a new quality dryer. When you go to get that you won't need to touch the emergency fund or the money going towards debt. But I rather hang dry my clothes than hand wash.
This episode really rang harder in my head than anything I’ve heard before concerning this subject. I’m on step 3 and struggling a bit - I think this set me back on track 👍
He answered it right after she finished reading the question. Dave's opinion is cheaply handling "emergencies" that come up while working this babystep, and not spending money on ANYTHING other than bare-bones essentials. Period.
@@tanL22 Don’t have to ask. Google owns RU-vid so I’m riding the train too. I understand and see the point while you did not. Appreciate your business.
I think the question was aimed toward things you need. Like tires and shoes for your door dash side job, or toothbrush and razors for your serving 2nd job. Missed opportunity here I personally go top shelf for tires and bottom shelf for shoes.
You wear shoes 40+ hours a week for your entire life. A pair of comfortable shoes is well worth the cost, even if it means cutting spending in some other category.
One thing to NOT skimp out on: Wifi plans. I just upgraded mine and it has been so much better for zoom & work. Also the $1500 touchscreen laptop I got a few years ago has been such a godsend for online tutoring. There are some things you have to get (contrary to dave, I don’t think most people can function without wifi or a laptop) AND its better to get quality.
The value changes Rachel is talking about is REAL. I don’t give a flip about “new and sparkly” things anymore. Once I learned that all that marketing and peer pressure for things and showy stuff was a vapid show of ignorant bliss chaining us to constant stress, I couldn’t unlearn it. Now that we are out of debt (barring mortgage), I can’t really forget that lesson. I buy quality when it makes sense now, but only if it truly makes monetary sense. We live like paupers by most peoples “standards”, but it is paid for up front and when we need something quality we use the funds we put aside for them. We still drive hoopties. But a little bit better hoopties.
Dave Ramsey: "If in BS2 you don't deserve vacation, eating out" Also Dave Ramsey: "It is perfectly fine to pause BS2 to buy a wedding ring, pay for the wedding ceremony, have kids". Makes sense.
Being devil's advocate here, I think Dave's reasoning (at least for the marriage part) is that it's statistically more probable for you to be successful with a partner. I suppose same goes for other things, too, like having a gym partner or something. I have also heard him recommend buying a ring you can afford if you're on BS2, and then once you're out of debt and have some money saved, upgrading it to something nicer.
For me on Cheap vs Quality, If it affects your quality of life that will affects your health, don't cheap out. If it just some you want to enjoy to push through the next grind and stay sane, cheap out. You want to go vacation? Sure, go out to your nearby park and enjoy the nature. It cost nothing. Vacation is not about going where but to relax your body to push through the next grind that is in my point of view.
"You wouldn't be buying anything." Ok Dave... I'm on Babystep 2, but if I need to buy new towels for the bathroom, or silverware, or some small item, I'm going to budget for it and do it. She's not asking about making a 20k purchase while on BS2. I think he just looks for any excuse to rant these days, he didn't even answer the question. This is like the other day when he told the guy and his wife they were HORRIBLE at managing money because they had a mortgage and just got an inheritance, LOL. Uncle Dave has been a bit out of touch lately.
Thanks so much for yelling at me Dave!! I'm on Baby Step #2 and my family is starting to catch on certain things that I'm not spending money on! It does play with your mind when they tell you that its ok to spend the money, but I have a goal in mind!!!
He said to get a hoopty for a car, but the problem with that is you may be incurring more debts in doing so than if you hadn't. I spent $2,200 on my first car as a teenager, and within a year the transmission needed replaced. Over the course of the next few years the car almost killed me a couple times and incurred more costs in repairs than I had initially paid. I'm not saying frugality is wrong at all, but sometimes it is outright necessary to pay a little more for quality. You can't continue paying off your debt if you're dead.
I think it also depends on what it is and how much you use it. I had nice work boots because I wore them every day all day. I also wore $2 shirts and jeans.
Dave always said: Figure out first your monthly income and your monthly expenses, then, your expenses should not be more than with your monthly income. Make a habit to pay yourself first by saving at least 10% to 20% from your monthly income before paying anything else such as paying your bills, mortgage, etc..If you don't have enough cash to budget, you need to do something or exert extra effort to increase your income, avoid first unnecessary expenses such as buying stuff which is not priority, no vacation, cut unnecessary bills such as Netflix or house security alarm until your financial become stable. Once you saving is big enough, slowly put some amount to investment he recommended to generate income. It's easier said than done to others but if you follow this basic principle is very effective, you will feel relax & comfortable. Thanks Dave to enlighten our mind.
I have been married for 25 years and for 10 years we did not have a big holiday. Now my wife is 47 and I am 54 two kids one paid for house and two cars. We can now go anywhere.
Lol I love this channel. I do treat myself to something of high quality of moderate cost with cash only when I do. I'm obsessed with cleaning my debt as I am about keeping the house clean. Literally went from 300 credit score in January to 700+ now only debt I have left is student loans.
That’s odd though cause as I keep paying off debt my credit score is dropping started at 840 down to 750 cause every time I pay someing off it hurts me weird lol
@@TheMechanicj that happens...it happens to me too lol...but....those drops are temporary...your credit score will actually recover very quickly...and...for what it's worth... Mr Ramsey has done a video explaining that he doesn't even have a credit score...and I think that's what we're all actually striving for, because when you pay for everything with cash you won't have a credit score
@@iamthere135 yeah that’s why I don’t believe the lady when her Credit score has went up unless she is cleaning up repos and debt collections then I could see it but not jumping that high lol
I found out that if you cancel a credit card after you pay it off, your credit score drops because of the length of your credit. The longer the age of your credit, the better.
@@iamthere135 It's the opposite actually. Credit utilization refers to the percentage of available credit line one is utilizing. That percentage decreases as the debt is paid down. Credit score increases as utilization percentage decreases. Optimal usage is 1-10%. Hope that helps.
Mr. Dave Ramsey, I have to admit to haven’t spent a dime on any of your books or gone to any seminars. I am broke, and have used RU-vid, friends who HAVE bought your books, and comments in these videos. I am in baby step number 3. Just paid off all my debt. In return, I recommend you to as many people as I can so they can also benefit from your advice. Thank you for giving us access to these type of information.
This is what happens when somebody in the family wakes up and decides to change their family tree. Now that being said, this is where I tend to respect Dave and Chris a bit more because they lived the struggle and can relate based on their actual experiences and events in their lives. Rachel while incredible intelligent probably did not have to struggle so she unfortunately cannot relate to people who are. She can teach it but to me, it is alwasy more meaningful when it comes from somebody who previously lived it.
Yeah. I'm JUST beginning to spend some money. I have a lot more saved for emergencies. And it feels amazing to just be able to pay the 850 dollar mechanic bill to fix something I don't have tools and time for. And not hurt me. I'm not near wealthy, but, I can say, I'm ready for rainy days.
Sometimes you can get cheap + quality combined. Example... I have a 1997 Toyota Corolla that I purchased for $2,000 cash.. only 138,000 miles... gave it a little tune up... Runs and drives everyday, starts up just fine. Haven't had any problems.. goes from " A to B with cold A/C " that's my motto baby!!!
He didn't answer the question. People still need to obtain personal and work essentials, regardless of debt. Maybe this person needed a new pair of work boots and wanted to know if they should spend $50 for cheap or $150 for quality. I'd go for quality if essential, abstain if not.
I think they’re lack of specificity told him what he needed to know about the person. the way the question was posed, I agree this person is looking for rationale to spend money on BS. Some ppl have no sense of economy. Buy the best quality for the lowest price and keep it pushing.
"You have to exert extreme amounts of energy to break through all these barriers in your psyche." Dave underestimates the contrarian in some of us. Some of us are quite good at telling people off. No extreme exertion required.
Changing mindset is important but if getting out of debt is going to take years, you will still probably have to buy some things to replace items that get used up. It just depends on the item when deciding if you're going to buy a brand new quality item, or try to get something as cheap as possible, or as Dave suggests, fix the current item or do without it. Dave acted like the question was about eating out or taking vacations. I thought it was asking about buying something common like a pair of shoes if your current pair is full of holes.
Cheap vs Quality depend on the situation and usage the best product always tend to be the one with the best value to strike a balance is always the key unused quality is the same as a product that cost to much to produce for its usage like having a Ferrari for your highway travel and product that cannot accomplish its intended purpose no matter how cheap is still a waste
@@magumbo7776 same bro. Most, but not all, of the millionaires I know all act and spend pretty much the same way. They know that life is a game, "things" don't make you happy and that money is just an indicator of how you're doing. One multi millionaire I know literally uses the cheapest 2 ply toilet paper from Walmart because it works just as good and costs 69 cents for a 4 pack. 😂 he could literally buy silk napkins for that purpose, but he chooses that option. I do as well. It's a good deal and I'm the one that turned him onto it. 😂
We bought a $20 vacuum cleaner when we were in BS2. We never would have dreamed spending a couple hundred dollars for a better one at that time. A couple years later, after we were out of debt, the vacuum still worked (as well as it had to begin with) and we were able to buy a better one at that point. I love buying quality, but the mindset that we have to have the best, most expensive things often leads people to get in and stay in debt.
Dave is so right. I came to the US couple years ago and I was really upset that my community college costs 8k per semester. I really didn't want to be in debt because then I would be broke. I talked to a friend about it and the answer I got was "welcome to America, the land of debt" lol
@@blackworldtraveler3711 it doesn't cost the same everywhere. It's my county specifically. I wasn't planning to be a nurse before I left. Life just happens man. How could I have known? Don't be so judgemental
I agree with the basis of Dave's plan. But also you need a bit of balance in your life. For a year I worked a second job. And after a year my wife said to me that she would rather take longer to get our of debt so that I could spend more time with her and the kids. Only you and your household can decide these little things. As long as everything is budgeted, and your on a written plan and everything is intentional you should be fine.
Some commenters are missing something here. He DID answer the question. IMMEDIATELY. Then he went on a rant. The answer is "None of the above". In other words, while in debt or building an emergency fund, DON'T BUY ANYTHING. Not the answer y'all were looking for, I know. :)
Which isn't realistic. Your work boots get worn out and you're in BS2. Do you buy Walmart's 4 times a year until you're out of debt. Or just buy some quality boots? I think for essentials, you buy quality.
Not in debt, but when I think of Cheap vs Quality, I always remember how I was with headphones. I’d buy 10-15$ headphones to save money but ended up doing this several times because the headphones broke :( In retrospect I wish I had just saved up a bit more and bought better (but not overpriced) ones.
Hey Jordan, to actually answer your question, buy quality where you can, but the 90-50 rule applies. If something is 90% as good for 50% the price, that's probably the better deal. Get the $4000 Toyota Corolla instead of the $8000 Lexus. Get the $100 CL used stove instead of the $800 new one. Work shoes and other safety gear, spend the money and take care of your body.
I'm seen as the most frugal person of all my friends and family. People wonder why I don't buy fancy cars or fancy things... And Dave you remind me why people think I'm crazy for being frugal. This was the big pick-me-up for the day. I am a better place than 99.9% of people I know. Thank you for your encouragement. And I'll keep being responsible.
Let's say you need to buy a can opener to eat those beans with the rice... don't get the $15 electric opener. Get the $5 all metal manual opener. Or get the beans with the pull tops (or dry beans and soak them yourself if you're not living out of hotels for work).
It depends on your circumstances. Some cheap items are okay while some expensive items can have a cheaper counterpart that will give the same value as the more expensive one. As long as something is essential and needed for a long time, buy something in between, not cheap and not expensive if you can afford it. But if you are too poor and have no other option, of course, go cheap until you have saved enough to buy the better option. Learn to distinguish between what is truly essential and luxury.
Try buying Harbor Freight tools. You'll find out how expensive they REALLY are. But you only buy the tools in the first place if you NEED them vs WANT them.
I just bought a washer and dryer Saturday and I paid 💸 for it, what a awesome feeling 😎 to pay cash for things you need. Yes this is what Emergency funds are for. On Baby Step 3, just gonna take a little bit time to have 6 months of Emergency funds built back up. I am thinking that this will be about 6 weeks longer than I originally anticipated.
That seems so obvious to me- only buy what you can afford in cash even if it’s with a credit card. It’s crazy that most Americans don’t think that way.
@@ashleyholder2218 especially with something that isn’t needed like a washer and dryer. I’ve never needed to buy a washer or dryer (I live in a major city to be fair) but if I didn’t have money to buy one in full- wouldn’t the obvious thing be to go to a laundry mat?
He sort of answers it by saying you want to get something that is reliable, but the rest was the same old rant about not going into debt to get something higher quality which really wasn't the question. My experience so far is it's better to spend a little more for quality rather than looking for the lowest price. Some things you can go cheap on for one time use tools or something. But you don't want to skimp on things like a furnace or refrigerator. Buy cheap, buy twice.
This is us!! Selling all our furniture, selling our 2,000 sq ft home and moving into a 2 bedroom apartment. Scorched earth policy. The profit from the sell of our home should finish baby step 2 and 3. We will be renters on baby step 4. We have been dave-ish for years. We are finally going to be done with debt!! Forever! Our friends and family are freaking out that we are selling our home. "But you've done so much home improvement" "but you're throwing your money away renting". You know what we won't be throwing our money away on anymore? Car payments and credit cards. Hallelujah, God is good!!
Throwing money away is living in a 2000 sq ft home when a 900 sq ft apartment will work. You can also move to be closer to your job if it changes. 30 min a day saved can be spent on professional development.
Although Dave is a mainstream guy in many ways, I appreciate how he views the desire to get out and stay out of debt as going against the grain. That is a keen observation.
I agree with all the comments that this was poorly answered. People WILL have to buy things when they’re paying off debt that are not frivolous purchases. Kids need shoes, necessary household appliances break, you get flat tires... You get the best you can within your means, budget for it, save up, and look for every sale and discount you can find.
Buy quality second hand. We tried to move a cheap particle board entertainment center from one wall to another and it disintegrated. We bought a used solid wood bedroom dresser with a matching nightstand for $130. The nightstand holds all the kids coloring books and art supplies, and the dresser drawers holds the DVD's with our TV and picture frames on it. Both were in pristine condition and are over 40 years old.
Dave's answer was ridiculous. Everyone has to buy stuff. Food? Clothing? I'm a cheap person and I can't tell you how much money I've wasted on buying the cheapest option and it turned out to be junk.
But is a phone really an emergency? Just asking because this could be an item that break during these steps and needs to be replaced which would also fall under the question she is asking. Happened to me and yes I got a reliable phone for a cheap price out of my emergency fund. I don't truly consider this an "emergency" since there is 2 phones in my household. Hmm an opinion...is an opinion. But I do agree.
It depends. If your job requires being accessible at all times and not having your own phone could get you fired, then yes your phone breaking is an emergency. If you just use the phone to talk with your friends and post on facebook, then no your phone breaking is not an emergency.
As for a car, depends. I invested in a new DEPENDABLE vehicle and not be a target for lemon regurgitators, potentially more debt. That car was paid off 4 years ago and I know exactly where I am with this car. Plan to keep it serviced til I can't.
I don’t think this person was talking about a luxury, the nature of the question made it sound like it was referring to an essential kitchen utensil or maybe a pair of shoes. I think it was a great question and it’s a shame it wasn’t answered well. Dave is the wisest person on earth when it comes to finance, but for some reason he spent the whole video talking about cars, going out to dinner and vacations. Not everything is an emergency or a luxury, some things are just basic essentials and basic essentials come in a variety of price ranges and quality levels. Dave could have given some real insight into this question, but unfortunately we didn’t get that this time.
I don't believe price correlates well to quality. Expensive isn't always better, nor do "You get what you pay for." I've bought $200 Redwing workboots before that were incredibly uncomfortable, while "cheap" ones ended so much more comfortable even after 12+ hours on them. I've also used "free" software like Avast that worked much better than paid solutions like Norton or McAffee. There may be cases where expensive is better, but experiences like those make me very willing to explore the "cheap" options.
Dave, you do realize people still need things when they're paying off debt. Right? You can't possibly be THAT far removed from what your listeners are actually going through. Shoes wear out, things break, kids need bigger clothes, etc. Her question was a very good one - it's a question MANY people have - and you absolutely missed the opportunity to actually answer it.
Frugal is not cheap, on bs2 I bought almost every item secondhand. If I needed a clothing item I’d tell myself if I couldn’t get it at the $1 sale at goodwill, then I wasn’t getting it. My whole wardrobe is linen, silk, cashmere, and merino wool, leather handbags and shoes mostly from the $1 sales at thrift stores, have high quality taste, but be an intentional slow-shopper!
I think most people here don't get it, He said cheep, not junk. You buy fresh food, you don't by organic and you do not buy Oreos. You buy the 10 year old Honda Accord LX with the manual transmission and roll up windows. You don't by the Fiat 500. You Don't buy the fancy MacBook Pro, you get the lower spec HP or Dell business laptop.
I would say buy cheap during babystep 2. Then once you get out of debt save up to replace it with a good quality item. Maybe even buy used at first. (Refering to appliances and things around the house)
