One lesson I've learnt from billionaires is to always put your money to work, and diversifying your investments. I'm planning to invest about $30k of my savings in stocks this year, and I hope I make profits.
You are right. The best approach I feel is to diversify investments- by spreading investments across different asset classes like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.
That makes sense. I’ve been using a financial market expert for two years now and I own a six-figure diversified portfolio from investing in stocks. I want to diversify more this year, though.
I really want to get in with a financial advisor this year, especially as all markets are hitting highs. I don't want to be too optimistic and end up losing everything.
Rebecca Nassar Dunne has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
This highlights why I follow The Money Guy Show and not Dave Ramsey. Dave's methods work. But, his hard nosed approach and stubbornness are not for me. - Case and point: I increase my returns with credit cards. He has a solid no on them. - I only use them for items that I would buy with cash, if I had cash in hand. I also pay them off every month. - There are definitely people who use them incorrectly and should stop using them. - They recommend debit cards (or cash). Debit cards have fewer protections, no rewards and banks track their spending similar to credit cards.... - I do agree with using cash when the business offers a discount or they are a small/very small business to help. - In summary, there is no allowance for responsible use and no acknowledgment of (slightly) increased returns when using them responsibly. - I make 1-15% (rarely more) in cash back, again, only on items I would have purchased with cash in hand, and that (slightly) increase my total return annually. - I average about 2-3% return on "my cash" for necessary payments. Will it make me wealthy? Absolutely not. Will it help (slightly) increasing and protecting my wealth? Yes.
Please keep this kind of content coming. This and graham Stephan shows were amazing together. Love hearing Dave asked some harder questions by other successful people and listening to him break down the difference in opinions in such a mature way. This is awesome.
Dave is filled with the spirit of maturity and Godly principles. His ability to really show his advanced principles was really brought out by having other experts on air. Please continue to work with the money guy show and other experts so we can see this side of Dave Ramsey
Nice insight! Big fan of your channel, I Retired with a seven-figure portfolio and i'm receiving around $169,500 in dividends yearly. I've been investing in stocks for nearly ten years. Passive income is likely one of the most essential and central ways millionaires accumulate wealth. I started putting money into ETFs and other stocks last year, 2k weekly to be precise and my ETF portfolio has risen to 190k since i started last year. I'm grateful for my broker Dianne Sarah Olson, who handles all of my investments and ensures I stay above the market.
It's impossible for someone to become wealthy suddenly. A valuable lesson I've picked up from billionaires is to always invest in a diverse range of securities and to put in background effort, even if we usually just see the final product. I intend to profit from approximately $200k that I want to put in stocks this year.
@@PapiChulo-t1sHaving an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
*Jennifer Leigh Hickman* has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
I would be retiring or working less in 5 years and I just want to know best how people split their pay, how much of it goes into savings, spendings or investments. I earn around $165K per year but nothing to show for it yet.
you're not alone, i'm part of the High Earners, Not Rich Yet (HENRY) not having much left after taxes, housing, and family costs.. not to mention saving for an affluent retirement.
Don't be a marketing strategy for luxury brands like Louis Vuitton and Tag Heuer without having your money give birth to more money (I recommend ''The Richest Man In Babylon'') Rather, you can move to wealth by reducing expenses and increasing savings or investments. As far as I'm concerned, its ideal to consult a reliable financial advisor for such objectives.
@@skydiving81 I totally agree, the end worries of handling my finance came in the person of a license advisor from CHARLES SCHWAB, and in less than 5 years, I've made it into a staggering $10M after subsequent investments. In my experience, fear can take control if waiting too long to set investment goals, but that should go away once you set the plan into motion.
@@jordan56678 wow! I'm 58. 75,000 USD pension, and only began this stock thing few months ago. Oh, and I live in the Great White North, Canada. I'm ramping up my savings for next year, while the economy and the feds play silly buggers. My goal is to see 2030 in good health and finish up my home payment by next year. Mind if I look up the advisor that aids you?
@@castlerock4207 My FA is "Ashley Breanne Haley'' watched her on a CNBC interview where she was featured and reached out to her afterwards. She has since provided entry and exit points on the securities I focus on. You can look up her name online if you care supervision. I basically copy her trades.
There is potential for considerable wealth increase with the correct strategy. I want to know; How can one take advantage of compound interest and potentially grow your retirement savings/net-worth to about $3M over time?
I searched for her complete name on the internet and located her page. I then sent an email and scheduled a meeting to converse with her; now, I'm awaiting her response.
getting into Investing to create a passive income should be priority of every financially literate person...I made my first million from having a secured diversified portfolio that spread across stocks, grade bonds, coins and etfs.. ever grateful to Lisa Rosa Cavanagh my CFA handling my portfolio. smart investing is key
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 $450k. before I turn 60, I would appreciate any advice on potential investments.
Focus on two main goals. First, protect yourself by knowing when to enter the market to limit losses and maximize profits. Second, get ready to benefit from market changes. I recommend asking a professional for advice.
Yes true, I have been in touch with a financial advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
There are many independent financial advisėr that you might consider. But I've worked with "Theresa Dana Peek" for almost four years and she's proficient. You could proceed with her if she satisfies your discretion.
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunt ing them in the near future.., I pray that anyone who reads this will be successful in life!!
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life beause I invested early ahead this time .
I have been investing in stocks for over 10 years now and I have made a lot of money. My port_folio has grown exponentially and I can't thank stocks and Kate Elizabeth Amdall enough for such an amazing way to make money!
My portfolio is drastically declining, I've lost roughly $320k in a short period of time, and I no longer feel secure in choosing stocks. Do I truly have no alternative ways to profit from the stock market?
@AlexanderWebber Very true. Despite having no prior investing knowledge, I started investing before the pandemic and pulled in a profit of approximately $950k that same year. In reality, all I was doing was getting professional advice.
@Nick-iu9hg There are a lot of independent advisors you might look into. But i work with Stacie Kristal Weber, and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her
These are very valuable rules for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $89k now to put in the market.
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2020, and I return at least $30k ROI, and this does not include capital gain.
I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance wealth managers you could check out. I have been working with “Vivian Carol Gioia” for about four years now, and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.
So how exactly can we guard against the coming financial reset for 2024? Like what are really the best strategies to make our portfolio recession proof, against the incoming financial rest? I'm very worried about my $460k stock account because I've heard that the next market fall will ruin the financial sector.
Knowledgeable Investors know where and how to put money during a crisis in order to reduce risk and maximize returns. See a market strategist with experience if you are unable to manage these market conditions
I stopped following Dave Ramsey because I am serious about my financial future. I chose to manage my money in a much more sensible and efficient way than the Baby Steps. I chose to invest in a way that is supported by academic research instead of paying commissions for expensive actively managed mutual funds that are likely to underperform their benchmarks. I use reasonable rate of return assumptions instead of the absurd and dangerous 12% average Dave likes to throw around. Because I stopped following Dave Ramsey, I am likely to have much more in retirement than I would if I had continued to implement his terrible advice.
@@thynnus2422 so u are still carrying your house note? Not trying to be funny. Just asking. I do get your point. I weighted this out too and I would pay for my house 2 and 1/2 times. So I am two yrs into paying off my house and should be done in 2 more yrs. Then I can throw cash into my investment well I am doing both now throwing a pile at my note principal and a chunk in my mutual funds monthly. To pay off a 237k house in 4 yrs is a big deal for me. And I am 65 so I don’t want to be 93 when the 30 yrs note is paid. So hope u see my point too.
@@cherylbroadenax1006, Brian and Bo did a few shows demonstrating how you come out MUCH, MUCH better in the long run if you pay down your low-interest debt (like a mortgage) over a longer period of time, while investing in index funds for that whole time, than paying off your mortgage and THEN beginning to invest. The opportunity cost there is TREMENDOUS.
Great Content in your channel!We choose to invest over paying off our mortgage because we still have 30 or more years of working left to do and because it only consumes 15% of our income. We might be more concerned about paying off our mortgage if it were larger (or if our jobs weren't as secure), but right now, investing offers a better return. Bloomberg and other finance media have been documenting stories of people making over $250k in a couple months.
Invest if you actually want to be wealthy. However, you should get guidance from a financial advisor if you want to create a successful long-term plan...
@@freedomisEexpensive-08 At less than 3% interest, it makes no sense to lean into the house. Over the long run my investments will make anywhere from 7-15% interest. Compound interest only works if you're investing regularly. You're wasting valuable time when you're trying to clear your mortgage. I'm not the only one who realizes this, it's a very common mindset when it comes to investments. My FA has really helped me on my decisions and since then I’m not looking back
@@NotyourBusiness-urto6 Sure. NICOLE DESIREE SIMON, a well-known person in her field, is my advisor. I got to know her through my wife. It's my wife that has her number, but you could further investigate her credentials and contact her yourself.
I'm curious because I saw breakdowns on how you are paying for two houses pretty much. From interest, it seems like you would have to make sure your investment profit is pretty much triple to make it make sense. I'm not sure, so any explanation would help me.🥲
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
That is why I work with *Camille Alicia Garcia* , who introduced me to a better Financial community, a verified agency where I learned how money works and how to create it, as well as free books, courses, and daily lectures. You also get to meet new people, which was the best decision I ever made.
Very much appreciated, your response suggests a person of benevolence.. just inputted her full name on my browser, and came across her site, top-notch qualifications! she seems well-qualified
This reference seems valid.. Just looked up her full name on my browser and found her webpage without sweat, over 15 years of experience is certainly striking! very much appreciate this.
Bought a good Cross section of an economy, built a diverse portfolio that I am attached to and keeps me motivated not following the crowd emotionally, speed up the process where possible. I use an FA, side hustle, reinvest, I do etf's bonds, coins and stocks. After my millions I realized that when a stock starts booming chances of you finding out means you are quite late to the party, for this I make sure my CFA handle that, ever grateful to REBECCA MARTIN WATSON. it's like turning your notification to earn more more millions.
financiaI success is assured to anyone who seeks the help of a financiaI consuItant. I engage into a lot with the ldeas of my consuItant, I have acquired so much already
It's finally happening! I initially got serious about money with Dave then began supplementing and growing my knowledge with Brian and Bo. Thank you guys for making this collaboration happen. I can't wait!
I literally just found these guys today. I found Dave about 18 months ago right before I finished nursing school. I have been trying to get debt free and paying my student loan off. I plan on checking these guys out now too
My dad gave me Dave’s book when I was 18, changed the course of my life for the better. Love Dave, The Money Guys, Caleb Hammer. I find it helpful to keep this stuff top of mind.
I watch all of them too! There’s definitely some stuff I have learned! I’ve always been good with money, but I’ve gotten better. Only thing I’m doing a little different.. is I’m only doing 7% retirement right now, and putting a TON extra towards my mortgage to pay it off. I bought it when I turned 21, and it’ll be paid off when I turn 31-32. (Any extra money I get goes towards mortgage etc) Once it’s paid off I’ll add more to retirement! I’m on the right track with my retirement currently with what I have in there, plus I’m still young to add a lot more to retirement.
Having Cryptocurrency as an Asset and not been able to profit from them can be very frustrating. Is this the right time to invest? Before I jump to the conclusion, I think you should take a look at things first
This could be interesting as Dave has been doing other collabs recently, but hope they don't fawn over Dave Ramsey. I think that the Money Guy Show does a much better job in many ways than Dave does. No trash talking random people. No making claims that aren't backed by anything. No offering generic advice that may not really be applicable to the question. No random tangents.
Dave is arguably bigger than the money guys. His advice can be helpful for people who don’t know anything at all or “financially illiterate” people. But Dave doesn’t have any nuance to what he does.
@@amoraacho6181 arguably? Dude Dave has his own platform with millions of listeners to every show, everything his company puts out is best selling, he has thousands of products and curriculum in half of americas schools. Money guy has 10’s of thousands of viewers and a mid size accounting firm. It’s not even close. Not that it’s not respectable but You’re seriously fan boying hard.
@@AV-iw3xc 1. if you can't tell by my name i'm a women thank you for assuming we love to see it... 2 I already said they dave is bigger never and has a bigger reach. 3. I am not a "fan" of either of them by l do consume both but dave is very old school in his way of thinking. Not saying that he is not helpful because he is to people who are stupid with money. for example he preaches not to ever buy or lease a car and to just buy beat up older ones. yes this works for a lot of people but its not one size fit all. I bought a new car cash because my old car that i bought used had a bunch of problems and was basically a money pit. The car l bought was 1/4th of my income l paid it off in a year. also since it was a hybrid car l got tax credit for it. I plan to have it for 6 or 7 years if not longer. which if would be the same as if l got a used car but it only lasted 3 years. but dave would never bring things up. my general rule of thumb is if l can't buy this thing 5 times right now...I can't afford it. l could afford a new car 5x so l got a new car. but thats just not a concept Dave is behind The only one fan boying/fan girling is you here.
I’ve been wanting a video like this for a while. I found both the Money Guys and Ramsey around the same time near end 2022 and I was like “something needs to change, I need to take control of my financial life”…. I’m 28 and my wife and I are about to start a family. I want to wake up knowing my family is taken care of financially. Thank you both for the content you create.
As a Gen Z, I love Dave's words at 18:26 about maturity. I "grew up" fairly quickly compared to my friends because my dad taught me early that to get things I want, I have to work hard. I saved money by living with my parents for a year after college and kept living frugally until I was ready to get my own apartment. Because my parents paid for my 4-year degree, I felt like I couldn't just spend money recklessly. I owe it to them to invest in my earnings because they saved and invested in me. I hope to do the same for my future family.
The problem with Ramsey is that he has painted himself into a corner with "muh baybee steps" to the point where he and his amen corner give horrible financial advice that will cost people tens of thousands of dollars in unnecessary taxes and hundreds of thousands of dollars in lost opportunities. I prefer the Money Guys approach as they realize interest rates matter, math matters, and that the advice you give a twenty year old may be different than the advice you give a forty year old which may be different than the advice you give a sixty year old. They also don't share Dave's pathological obsession with credit cards and credit scores.
They are talking to different types of people. Dave gets people out of debt. People with lack of financial control. The money guys speak to the people that are not in debt and looking at ways to invest for retirement.
@@kennethwers That's probably true. I've often commented that once someone moves past Baby Step #2, they need to get their financial advice somewhere else besides Ramsey. There may be non-financial reasons why you choose one course of action over another, but if you ignore math, ignore interest rates, and ignore tax implications, you are going to make a bad financial decision. Ramsey often ignores all three if they do not conform to his ideology.
I've come to realize that the key to amassing wealth lies in making sound investments. I purchased my first home at the age of 21 for $87,000 and sold it for $197,000. My second home, acquired for $170,000, was later sold for $320,000, and my third property, purchased at $300,000, fetched $589,000, with buyers covering all closing costs and expenses. Not reaching a million before retirement feels like an unfulfilled goal.-
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@@angstfree2008most people get out of their debt in 18-24 months if they focus hard, and then getting to your first million depends on how much you can earn and being diligent about saving.
On review...while I appreciate the advice from Dave's team, there's something a bit cantankerous about Dave's approach. You don't have to put folks down in your delivery. That's why I personally prefer the MoneyGuy team and their approach to wealth-building. Personal preference.
I must have missed the part where they "put people down". However, if you equate speaking facts to hurt feelings, then you have more issues than just money.
I was one of the 10,000 millionaires in the Ramsey study, I did it my own way which was pretty similar to Dave and the millionaire next door. I learned this from my parents in the 1980's and on my own.
8 Yeats ago I heard Dave Ramsey say, "You don't get a pass on math." I was trying to justify buying a house where I couldn't afford it. I moved out of the area instead. Best decision I made.
Different ideologies, Moneyguy versus Ramsey. But both solid provide solid advice. Really great to see them come together and talk about all the middle ground. Great collaboration
@@markusstaheli9512 Anyone can look back at historical data and find funds that have done very well in the past. No one can predict which funds will do very well in the future. You can guess and you might be right sometimes, but it is still just a guess.
Wish the book and author of this topic was given the proper credit!!! His name, Chris Hogan!! The book title, "Everyday Millionaire's"! I still have my personally signed copy when Chris was at Ramsey solutions.
I think part of the reason Ramsey says 15 percent and the money guy says save 25 percent is client income bias. The Money Guys probably see folks who make more money, thus able to save more
That may be true. Dave’s plan pays off the house early in the steps and invests less. The money guy plan pays off the house later on in the last steps.
@@kenschneider7786 another good point. It’s likely both camps “invest” 25-30 percent. With Dave it’s 15 in mutual funds and another 10-15 in the house. With Money Guy it’s all in mutual funds until at least age 45
I was with him and still he started quoting the Bible. You don’t need to be a believer to be a millionaire. I’m sure there are a lot of atheist or people that don’t believe in the Bible that are rich.
Great collab, but I missed the stuff you disagree on. For example, I was hoping for a discussion about whether people should use creditcards. Sure, you can meet in the middle at the end and we know Dave's audience is mostly different than that of TMG, but it would be nice to see the discussion.
I know when Graham Stephan did a collab with him the topic came up although Ramsey was surprisingly calm about it compared to on his show where he typically dismisses that it is even possible to come out ahead using credit cards. We'll see if the topic comes up, but I am skeptical that they'll get too deep into the topic if it comes up.
Been using my credit card to pay for everything except mortgage payments. I pay off the balance every month, don't pay any interest, get a tax write off for my real estate rentals expenses & get cash back on it all every year.
Nice to see Brian and Bo to be on the same platform with Dave Ramsey. However, while Dave has changed the financial outlook for many, he often is so full of himself and his ideology it becomes a turnoff. As you become financial literate, you'll notice that Dave repeats the same mantra that everybody is dumb and broke if you don't do it the Ramsey way.
Let's stop talking about millionaires like they are Royalty. Yes, if you aren't one, it's a lot of money. But, they're not taking private jets to Paris for dinner. There's at least one on most suburban streets in America. If you're in your twenties or thirties you'd better plan to be there when you retire. Although, for most, it will take decades and a lot of planning.
After watching this, I very much appreciate that the Brian and Bo don't refer to their viewers as dummies and as stupid as a rock. (At least, not on the air!)
This. I think the contrast is pretty stark. Dave Ramsey mocked a few people in this video, but he is pretty tame compared to his regular show where he can't avoid criticizing people that don't praise his advice. Even when the evidence clearly paints Dave's advice in a bad light Preston and Bo are pretty tame in their criticism. The difference in professionalism is pretty stark.
Exactly. I mentioned this on Twitter years ago and I was blocked. He talks down to his listeners whereas the Money Guys truly show empathy and understanding.
In the conversation you also can notice that Dave never asks Brian and Bo a question, even if it is out of interest like "how did you build your audience" or something, his comments are mostly pats on the back like "You have done nice for yourselves, good for you". Yes, Dave is a greater finance guru than Brian and Bo, but he also never lets you forget that fact.
That was a very encouraging video. I loved the close. We want you to succeed. Go do it! My husband and I met leading an FPU discussion group. We've been walking this road for over a decade. In recent years, we've gone through Money Guy courses and have been blessed by you guys to take more steps. It was so great to see you guys chatting together and showing how you are on the same team of trying to help people. Loved it.
Absolutely, it was also on a video like this where they recommended an FA ,Donald Ben Taylor, I reached out to him last year and he helped me achieve my first million through digital assets
Would be helpful to hear from a minority who grew up with nothing and was able to build wealth or maybe a single mom. Hearing that four white men could build wealth isn't surprising.
When Bo started out at 30:41, I thought he was about to recommend Ramsey Solutions takes their relationship to the next level and enter the abundance cycle. 😂 missed opportunity guys
Never really thought about the fact that Dave recommends about 40% savings rate for a large portion of your career. He said 7-8 years to pay off the house on average. After that, you still do the 15%, plus the 25% for housing can go toward savings.
Huge! Sitting at the big desk! Learned tons from Dave beginning in 2004. Got to BS7. What a blessing to be Debt Free! Learning tons from the Money Guys now (still listen to the Ramsey Show too)! Glad to see the coming together!
Its the Ramsey Guy show! Adress your debts with an army of dollar bills. Be a financial mutant with gazelle intensity. Live like no one else to build abundance. Thanks for this gem of an episode.
I hope they pressed him on his horrible investing advice, the conflict of interest regarding that advice, the dangerous 12% return assumption, and huge opertinity cost of giving up the employer match and not investing at all until after paying off low interest debt.
I'm not Dave, but he would say something like the following - having debt isn't a math problem, if it was you wouldn't be in debt at all. The point of paying off the smallest debt balance first while pausing everything else is to build up emotional momentum and get those small wins so that you can tackle the bigger ones knowing that you can do it. While it mathematically makes sense to pay down the higher cost debt first (and maybe do the match), the point is to build the habit not be 100% effective. He says this on like every show. With regard to the 12% mutual fund returns, he routinely says that he is fine with just index investing if you're more comfortable with that...
You take off your shoes when you enter someone's house. We all agree his investing advice is terrible, but if I have an hour with Dave I'm not spending my time disagreeing with him when neither party is going to be moved.
@@endyy6671 I think Dave (and maybe you) are severely underestimating the importance and benefit of the employer match. Even if you want to emphasize commitment emotionally and spiritually to the debt freedom process, you would often be better off taking the employer match, paying the taxes and penalties to withdraw early, and put that towards the debt. Debt may not be primarily a math problem, but that doesn't mean it's prudent not to do the math. Almost all employer matches are between a 50 and 100% return on your money invested (3% match on 6% of pay or 4% match on 4% of pay for example), and almost all people would be in a tax bracket where if they withdrew that money before retirement, they would pay 10-24% federal income tax, 0-6% state income tax, and a 10% early withdrawal penalty. This means your returns on that investment immediately are between 60% (2 * (1 - 0.1 - 0.1)) on the high end and -10% (yes that's negative) (1.5 * (1 - 0.24 - 0.06 - 0.1)) on the low end ... which means in many cases that is more money you can put toward clearing your debt immediately. Unlike Dave's other comparisons like choosing to hold real estate debt in order to maximize market returns, you are not comparing a (potentially) 3-5% interest rate on the debt to a 7% market return to try to squeeze out that small difference while disregarding the short term risk of the market (and the fact that you might not be investing wisely). No, in this case you are comparing a typical interest of 15-30% on credit card debt or 4-12% on an auto loan to the up to 56% guaranteed return from the employer match (and that's assuming that you can't withdraw the money in time to pay the debt before it accrues interest again). In some cases then, you may not want to take the match if this is your strategy, but as we can see, in many cases where Dave would suggest pausing investment to focus on the debt, the debt interest rate would be much lower than the return from employer match, by up to around 50%. All of this assumes also, that you cannot get to the money fast enough to avoid an extra interest payment on the debt for the money you'd be withdrawing, which would only be true some of the time. TLDR: You can be intense and focused on debt BY taking an employer match. In addition, all of that is mostly made a bit irrelevant by the fact that there is a psychological and spiritual limit to the effectiveness of Dave's strategy, and it's probably wise not to focus ALL of your attention on one goal. People can and do in fact have multiple important goals in mind at once and pursue them well, and the correct allocation of resources is not usually all of your commitment to one earthly thing (people do have spouses, families, jobs, hobbies, etc. all at once after all). Each bit of your income that you devote to even a beneficial goal like debt freedom has diminishing returns beyond a certain point, as almost all things do. This doesn't mean you shouldn't be "intense" and put maybe 90 percent, or even more of your resources into debt freedom, but 100 percent is probably the wrong number. So perhaps you should consider taking the 7% market return on your matched retirement funds instead, which then all combines for a 30-104% return after tax is paid in retirement when combined with the return from matching, and this return no longer has the same risk associated with it as the mortgage debt vs market situation, as you are generally holding the assets for a longer time (at least until 59 1/2). TLDR2: You can be more effective at building finances by putting almost all, rather than all of your resources toward your debt freedom journey.
Refreshing to see y’all come together and talk about the goal of reaching people who are hurting, not just financially. Like you said, we’re on the same team. I think a lot of people want to place everyone in a box and it doesn’t have to be that way! Can’t wait to see more collaboration!
Did you ask him how he thinks his God will accept his using the market as an excuse for raising his rents as soon as the pandemic controls were loosened? Something something camel eye of needle,
I follow both, the Money Guy Show and the Dave Ramsey show and when I saw this video pop up I thought this was going to be the equivalent of The Green Hornet and Kato, vs Batman and Robbin!, debating the baby steps vs the financial order of operations… But, what I got to see was a dream team, sort of the Avengers working together to save the financially distressed. What a banquet, I just sat for almost an hour watching this without blinking. We need more collaborations like this with like minded people, doing things to help others and making an impact without just trying to sell you something, For me, the main take away was, It doesn’t matter which program you follow, just do something and do it now!!! Purely educational. 🎉
Lol... I caught that too. His RU-vid videos are frequently comedy gold and while he has sincere fans a *lot* of people poke fun at some of his goofy comments. Some are just mistakes, but some are him just not listening.
At the heart of it, the advice shared by both teams has more similarities than differences. If you are here because you are a fan of both, or a fan of just one of them, you are ahead of the curve. You'll do fine.
the day you stop living to impress others is the same day you start getting ahead. The book Millionare next door is a fabulous source of knowledge. I have given dozens of these to books to people with promise.
As an agnostic, I really can bypass the religious remarks. This content is SO necessary nowadays. Building wealth takes time, discipline and effort. Nothing worth having comes immediately. Thank you for sharing. Big fan of Dave Ramsey!
I've been giggling and fangirling the whole time! Wonderful show! Look how much they overlap. Not sure what all the hate is about. I lean more on Money Guy and the FOO for investing and using credit cards, but got my start with Dave & Baby Steps. Don't be close-minded! Gasp - is it actually possible to love BOTH?!#*@😜
