I’ve been debt free since at least 2010. I refuse to borrow anything. I went years where I put a wad of cash in my wallet at the beginning of the week, and would only spend that. And I only used the credit card to buy gas. Now I’ve lightened up and regularly use the credit card. But I always pay off the balance during the month. I paid cash for my most recent vehicle purchase.
Becoming a minimalist made a huge difference for me. I culled and gave away what I really didn't use/need and learned to really really really appreciate what I already own.
I was born a minimalist. Truly, I hate junk, I hate excessive. It's such a freeing way to exist. Oddly, I'm an independent housekeeper of 20 years. Let me tell ya America's got junk and a lot of it. The unessessary garbage people buy and hang onto boggles me However it gave me a job and a means of support😊
There is no feeling like going to work knowing if you got laid off, you are not a slave to car notes, mortgages, student loans and credit cards. You are at Unicorn status of life when you are without obligations -- to any form of loans out here. To me, being debt free to those things i mentioned, allows to enjoy walking through life instead of running through it. You can enjoy pure time that is an obligation to yourself instead of someone else.
What you said at the 2:30 mark is right on- you have to WANT to be debt free. You have to make it a priority every day. I made this decision back in 2020. I bought a car and my goal was to pay off by 12/31/21. I met that goal. We our currently working on our last debt, our mortgage which will be paid of May 2024. We are making 4 payments per month and we are able to do that because we have no other debt.
You know, your honesty about not achieving your goal and not giving up is so helpful. It is such a blessing to have the flexibility to adjust a goal date. Eventually you will achieve it.
This was just suggested to me by good ol' RU-vid, and I must say that I love how you calmly share the message...not yelling or judging people. Thank you
the best thing I ever did was follow a budget. It allowed me to see where all of my money was going and then the left over money after bills could be redirected towards savings, investments, debt etc. It took a good 3 to 4 months to have a solid foundation of a budget for me, but now about 10 years later I am rolling and things are running smoothly. You MUST know where every dollar you earn goes.
I walked the steps by Dave Ramsey long before I knew him - somehow it seemed the most logical way of doing it. Debt extracts so much value, it’s unbelievable. I’m now at step seven and working to create a passive income stream from investments that will cover most of my fixed costs. Many people criticise and mock Ramsey as “outdated” however common sense is never outdated. It worked for millions of people so I don’t care about the critics.
Thank you for this video. I follow Dave Ramsey and we are about to move from our large house to a smaller place. We want to be out of debt and our goal is to do it within 3 years and 10 months. The funny thing about making such a decision is I feel God has opened so many doors for us because we are willing to let go of what we do not deserve at this moment, which is this big beautiful house. I also want to start a RU-vid channel like you. I appreciate sharing your journey and helping others. Sending you blessings.
Why don’t you deserve a nice house? If it is because it’s out of your budget, I get that. But, if it is you thinking you are not good enough, you need to think better of yourself!
This is an interesting comment...how people prioritize and justify their spending is revealing on many levels...and what you choose to deny yourself, especially if it is something you could afford, is an opaque window into your psyche.
Rob - Excellent video. As a boomer I remember what my father told me after I bought a Schwinn Sting Ray bicycle witth the banana seat with my paper route savings. He congratulated me and said that I earned it but remember one thing "nothing is a good deal if you cant afford it" (I bought on sale). His defination of affording something is still having savings in the bank and paying cash for what you buy. I never forgot that wisdom my father passed on. Retired at 60 with no debt. Unfortunately too much tempatation to buy too much "stuff". Like you also have one car and do just fine. Keep cars for 10-15 years and take good care of them is a fantastic way to control/get out of debt. Keep doing what you are doing - helping a lot of folks out there!!!😊
I'm so glad you said increase your income. If that wasn't in this video i was going to blast off! You have to increase your income in all of this. You can't be lazy.
I'm still paying off my college debt 10 years later. From 30k to 3k.... now is the hardest since my bills are higher than ever before due to inflation and raised rent and less hours of pay.
Hang in there man, so close! But also if things are that bad you might need to find a cheaper place to live and also a job that gives you full time hours with adult pay. You know the cost of groceries and gas isn’t the real problem brotha 🖤 (even if it sucks)
Stay the course you're almost there. I have 3,500 left to pay on 23,000 truck. I have that in savings fs but it's all I have so I gotta just keep plugging away at it. We'll get there
Thankfully I was never in an unmanageable amount of debt. We were able to use the stimulus checks to pay off all debt (except mortgage). The feeling of being debt free is awesome
We're in a good spot. We haven't taken on any new debts and we are are close to 4 months in an emergency fund. I've also started funding a sinking fund for big purchases like cars.
We love Ramsey and his team! We followed the baby steps to get out of debt and build wealth. On average people who follow the baby steps can get out of debt and reach baby step millionaire in less than a decade.
I became debt free last year and it's the best feeling ever. I avoided students loans and I think that's the best decision I've made in my life. Seems a large amount of people's debt comes from student loans. Now I'm working on saving for a house, that is if I decide to buy one. Still debating on whether it's worth it.
I have about 7k in debt right now.... This is easy to said than done for those with a low income..... I have money and can afford to have debt too many are suffering from destitution.....
Avoid taking on student loan debt, either for yourself or for your children. So many of my peers, flush with pride that Junior got into a good college, are signing away their financial stability and retirement right now. The interest payments can be crushing. Look at some alternate routes to a college degree, such as doing two years at community college and transferring to a state university. Private schools with large endowments might actually give better financial aid than public schools, so comparison shop carefully, considering the value and not just the prestige of the degree. Also -- tough love here -- some 18-year-olds are not mature enough for college, and a year or two of CC or work before going off to school will help ensure you get value for your tuition, rather than squandering your retirement savings on keg parties and incompletes. Also question whether a tuition-based Master's degree is a good investment, or just a source of oppressive debt.
Jennifer. If someone would have told me or explained to me the amount of students loans that I would have to pay back.................I WOULD NEVER EVER WOULD GONE TO COLLEGE.........................
I agree! I tell people this all the time.I don't understand how all these people think its ok to take on so much debt.It's so normalized.They push 4 year schools in high school and really don't give a lot of options to the students.This was how it was at my daughters school.
Yeah, it's usually very shocking to me how much I hear people have in student loan...its just too sad that yound people are trained to start off their life with so much debt. However, depending on how the Masters degree is planned, I beleive that in many cases, it's helpful-but has to be very well planned
financial aid depts at schools prey on kids to take out huge loans they dont understand. happened to me. it sucks. cant buy a house at that age but u can get a loan for the same amount for school. make that make sense 🤦🏼♀️
People have to SEE the problem before they can want to get out of debt. There is a shopping/spending addiction going on that has to be addressed. I have had $23k in debt ( with minimal overhead expenses) and I was in full denial. I got counseling for it. I had to take a look at why I didn't want to be debt free..it was a black cloud over me. It was shame disguised as debt. It is also a punitive parent substitute. My parents could no longer nag and hassle me with their authority, but creditors and legal situations had the same punch. I just switched the appearance of my parents. I had to be under their thumb and had to stay in their good graces. Those days are almost over..
This was actually helpful I appreciate the specific steps . Most experts and I saw that loosely just want you to sign up with them and never give any info or how to’s
Rob, a few years ago I did just what you're talking about I was so sick of all the credit cards that's how they were draining. I did start with my biggest one that had 22% interest. And took the extra money that I had when I paid it off to pay off the next bill and it went so much faster than I had imagined. Now I'm taking that extra money and puting into a Roth ;)
I did this Dave Ramsey course back in the early 90's and got out of debt and stayed out for many years! Today, I'm back in debt due my business, which is a little different... but I want to get out of That, as well. I Hate debt, but they say without debt, we have no economy.
Thank you for such a great video! You have a calming presence which really helps the anxious nerves as I'm going through tabs of spreadsheets, statements, and RU-vid videos about debt. This has been my favourite!
Rob has a lot of great advice here. I think the most important is the first step of understanding the details of your situation and track progress monthly.
I started following Dave Ramsey in 2014. I have paid off over $154k in student loan debt, have a hefty emergency fund and have money in a high yield savings account. I do still have debit but I feel so free with having an emergency fund in cash and money in savings. I would be totally out of debt but my husband still hasn’t gotten on board with saving and not spending.
I so appreciate your great tips but with a gentle manner, I think it’s important with the guilt attached to money issues. Feeling self compassion is vital for me to feel I can tackle it, otherwise I get stuck in a cycle of feeling bad about my spending, putting my head in the sand and making the same mistakes again.
We are debt free with a payed home, two cars and two kids and much more at 40, we have never had any kind of help. Just don’t buy things you don’t really need, and live in a way where you can put away half or at least a third of your income. Don’t take credits unless it’s your home.
I am thankful that I've never experienced this so far in my life. I am grateful to God that I didn't have student loans from BSc-MSc-PhD, as I received full scholarships at all three levels with additional funding and support from research grants and other opportunities. I've always been a saver, so that makes it easier. I feel for folks who are in debt and hope you all can turn it around. ❤
This was so helpful Rob! It gave me hope haha. You explained everything perfectly and in a way that didn't sound overwhelming.Thanks for making this video!
I've always had a £500 car. I've never had a streaming service or purchased any nice things. Sold anything good on ebay. It's living hand to mouth waiting for a pay cheque that makes it hard. Interest racks up!
Stop buying stuff to impress other people. Live within your means. Also Stay home - every time you leave your house - you’ll be spending money somewhere. Stop giving your adult children money for anything ! Their young - they need to go out & get a 2nd job - they have more years ahead of them to make money !!! This I see happening all the time ! In the end … start saying NO to yourself & everyone else ! Real good video tho !
Your minimum payments are set. You can't not pay any. They simply all have to be paid at the set amount regardless of loan size, credit car or interest. I've never missed a payment!,
You CAN get out of debt even on a low income. One strategy that has helped me is every time you get paid, take minimum 10% and move it to savings which will be used to pay down debts. You start to see how easy 10% is and then on many pay periods you will be able to do maybe 20%. When you get out of debt, continue to take that same 10-20+% and put in savings which is there for you in the future.
Excellent presentation I totally agree with you , working on lowering the interest has really worked on me for a long time . Thank you for those excellent inputs.
Somewhat I did that, great advice, it works: sold my motorcycle, moved out to a smaller place so lower bills (it takes less to heat and cool our house now), the new place is out of a gated community so no more mantainance fee, changed one of the cars to a hybrid so less gas (looking forward to do the same with my wife's car), cheaper vacations, installed solar panels so no more gas bill and little to none electricity bill, cooked more, no more monday through thursday dine outs, no more gym membership but bought a cardio machine and dumbells and walked more my dog :) (I already recover the investment vs gym), I took a nigth school job as a teacher (pays for the monthly gas of a hybrid car, and 2 weeks grocery)... no more debt and we live a confortable life.
I am working on 4% monthly interest rate now. whenever it will finish, I will go with Ramsey rule but right now I must pay off this monster. whatever you say on credit cards, I consider it as a gateway of hell. I have already closed two. Still three to go. within this month one will go. next month another one and in December the last one.
Thank you. I'm learning. New with these credit cards. By choices, but I need to bring these cards down to zero! No longer uses them and paying them off SLOWLY!!!
Thank you for sharing. I didn't like you're wording, "we failed." You should have said that by that date, you had made great progress but it did take 2 more years to reach the goal and another few years to wipe out your mortgage.
Thank so much for sharing this video, this was perfect timing because I just came across it. This very is very knowledgeable and very interesting of the breakdown to become debt free which I'm thriving for .
Other things you can do it cut out unnecessary entertainment and leisure expenses. For example going out to socialize, concerts, movies and dinners. Do them on a budget or only if it is necessary. You be amazed how much you will save just by not going out to socialize on a daily or weekly basis. Just saving 20 on tips from eating out 4 to 6 times a month which is 80 to 120 just in tipping makes a difference.
In one of his books Robert Kiyosaki had a system for getting out of debt also. Similar to yours. He said start by finding $120 extra a month, use that to pay down your smallest debt first, then snowball (like your method) into other debts--every time you pay something off add that payment to the amount you are paying to the next debt. He said by this method in about 4 years you can pay off all your debts. He said some other things about it too, very interesting. I'm not even sure which book it was, I've read several of the Rich Dad series of books. Hope this helps someone God bless. His books are worth reading, don't remember which one it was though.
120 a month is 4 a day. i like that idea, could be cut out the daily coffee, or start a sideline and make a profit of 4 a day. or look at all expenses and try to cut the total by 120/month. a lot of food for thought there. thanks.
Hi Rob: Can you give advice for someone who doesn't have a mortgage but is trying to save for a down payment on a house? Should the Down payment be "considered" your first "bill" to be paid? Otherwise how do you get out of renting? (Owe Student loans and a car loan, no credit cards) Thanks
Having a house is a lot of expense. Payments are mortgage, insurance, home repairs, taxes, etc. If you'll own a home, find ways for the home to help you pay it like renting a room, renting basement, etc. If still renting, you can minimize cost while saving for a house by having roommates if it's possible or getting a cheaper apartment.
Hmm to me it depends. People talk about Insurace, taxes, repairs but there's nothing like owning your own home If you're paying rent you're covering the owners taxes, insurance and mortgage. I'm blessed I bought a fixer upper 19 years ago. It was cheap because it was a dump Husband and me remodeled it over a 9 year period. It could have taken less time, but we did all the work and paid as we went The mortgage Is down to 52,000 and our low interest rate affords us a... Ready? 359.00 a month payment and that's including taxes 4 bedroom, 2 full baths You can't refinance rent Good luck I hope you get a house
I tried to do a zero balance transfer. No one wanted to play ball with me for more than a few thousand. My Fico score was in the low 700s. My credit union would not consider a loan because I had too much debt at $15k. I got it under $10k. I was able to turn revolving cc debt into a straight loan at 10% not 15%. The debt could only go down, not up with revolving debt.
I've noticed almost everyone that has a RU-vid video on how to be debt free has a high paying job. People that live on a low income feel like it's impossible or you have to get a second job. The debt snow ball method is the best way if you can be patient trust the process and give yourself credit for making such a great and sensible decision.
Thank you for this video, very clearly explained and step by step. Question: I have a credit card debt of $3,000 and I got a new credit card with a balance transfer 0% apr for $1,000. do you think is worthy to take it and pay this to my cc debt? thanks for your response.
Kelsey you’re not the only one- not by a long way. We ALL make mistakes. They do not define us as people however. You are not your mistakes. You are so much more than that Bigger, brighter, stronger, more beautiful, intelligent, loving, resourceful, creative, kind and compassionate. As are all of us in Debt for whatever reason. So hold your head high, smile, take lots of deep healing breaths and tackle the problem day by day, bit by bit. Never give up Much love Rae xx
Thank you for sharing. Still on step 2. Geeze. I'm still afloat. My only car for work died (I'm required to drive). Garage & plant sale this spring will pay that replacement off.
