Pro tip: Every time I feel like spending money on stuff I don't need, I watch 2-3 episodes of Dave Ramsey and I am cured for the day. Just today I told myself I "need" a new $600 guitar...watched this episode and I'm glad those 600 bucks are still in my account.
I am debt free. I have a good savings and investments. I make about 115K a year. When I think about buying cars I watch Dave Ramsey videos. No joke. It works.
You're encouraging me. I'm very interested in a new vehicle but I see the price and hear Dave in my head saying loudly "you're stupid!" In a loving way.
Dave Ramsey is not against buying cars. He likes cars himself. It's buying cars you cannot afford which is the problem. If you pay cash and you get your money's worth, you can buy.
The way I reversed my thinking about spending... when I paid off all of my debt and I started seeing my savings account increase, it made me think longer about my purchases. And eventually, I was conditioned to love the numbers on my bank statement much more than the things in the store.
Exactly! Everyday, I hear broke people say I can afford that much monthly on a car, yet still owe another 50 months. I’m not sure what part of “afford” applies.
Solid answers from both AO and KC. Love, love, love the "spending to feel good instead of acting to be good" statement. Applies to so much of life, not just finances: hitting the snooze button, eating that little bit more than is healthy, not exercising, not doing the things that will move you forward as to who you are. Act today in a way your future self will thank you for.
Ken absolutely nailed it for me. I'm 21, now pretty deep in credit card debt, living 1400 miles away from home, and recently just realizing how stupid a lot of my decisions were. Now I'm reading the Bible more, going back to college, and finding a full time job and moving back to my home state. I'll be out of this mess in 4 years.
My son switched to drinking only water (gave up favorites like milkshakes, slurpees and sodas) when he was 11 because he wanted to...at age 16 he’s still going strong. If you want to do something, do it.
I like spending money too but I love being debt free even more. I also budgeted for and funded a guilt free account that’s separate from everything else. Will power isn’t enough and habits take time to build and live by.
That’s the problem that I see with most young people, they should be paying rent once they turn 18. It doesn’t matter if you live at home, pull your own weight.
Yeah...I only got 2 months rent free once I got my first job and started paying $350 for a shared room, eventually up to $650 for my own room. I used to hear some people in my circle paying $100-250 for their own room for years...and not going to lie, it made me jealous since I was paying at least double for a *shared* room for like 4+ years lol. Looking back though, it was something that pushed me into budgeting/being more financially mindful. So in a way, i'm also grateful that I paid the amount I did.
I know they don’t pay rent or any bills and he only has $900 in his checking account 😂 I have rent and bills and I have a pretty good sized checking account.
If you have a problem with self-control, just don't go places or do things that would tempt you to spend money. Don't go to amazon to browse, don't go to malls to hang out with friends, for gods sake don't go to a freaking car lot "just to look around". Spend all your time at work, at home, or out with friends doing things that don't involve spending money.
This was me about a year ago. Very relatable income and spending habbits. My advice? I literally just buckled down and stop buying stuff. Everytime i got an urge i put on a video of Dave yelling at people haha. After a few months, amazon packages stopped show up everyday.
My dude has an impulse control issue, most likely caused by some sort of dopamine imbalance. Could be that he has anxiety or depression, or feels loss of his parents (whatever happened in that situation). “Just do it” may not work for him. Sounds great on paper but he needs to see a shrink and dig a little deeper.
100% this. Not saying this is his issue, but I went to a shrink, and apparently, impulse spending is a symptom of ADD/ADHD (a dopamine imbalance). Now treated and medicated, it's not an issue for me anymore. The only downside is that I have to pick up all the pieces from those bad decisions now.
@@nick-ish I will tell you, the first time I ever took Adderall, everything stopped. I could think without trying to find micro rewards in everything. Unfortunately, I can’t take it because I have an underlying arrhythmia that showed itself on taking it, but it gave me a window into what is and isn’t rational thought and I use that as a gauge for impulse control in everything I do. It’s made my relationships 100% better.
@@akwinas_a_o you know, that's an idea I haven't really thought about! using the experience as a guide is pretty smart. if you get lost in the woods and don't have a GPS, then a compass is 10x better than nothing (and definitely cheaper!)
The best tip based on my own experience is to tell yourself that you have to wait a week or month (the more expensive the more you sleep on it). If you still "need" it after that time then it will still be available then and you can buy it without having to feel you rushed it. Most of the time you will realise you didnt want it as bad as you initially thought. This has been my best saving method personally by far. Also in this particular sitatuion you have to ask yourself if having the thing now is worth staying in debt longer, which its seldom is.
This is just a matter of maturity, the ability to think long term. You have to recognize that delayed gratification generally leads to greater gratification.
True.. Grant Cardone has been firing off at Dave and it's insane. He preaches the need for debt and tries to flex on Dave lol. I think Dave handles it professionally and let's his portfolio and lifestyle do the talking.
I have no issues in delaying instant gratification with purchases and working more but I need to push myself everyday to engage in productive habits that will potentially change my future like studying exams into a new field, getting adequate sleep, exercising daily, limit phone usage and etc. It all comes down to how much you want to change, no one can help you except for yourself.
How do you know? I've watched a bunch of videos from the so called 'gurus' who all trash what Dave teaches in favor of the borrow game. They all ignore the issue that most people have no discipline and no financial background to manage what they're advertising and thus setting them up for failure.
They made this more complicated than it needs to be. Dave answer: BUDGET MAN! Children do what feels good. Have $250 in fun money each week. Get on every dollar (for me MINT) and make sure each dollar has a purpose. Love all these personalities but no one can replace dave Ramsey.
I like that, block social media and visual temptations .. this is so true, I am like this, I don't look at the paper flyers because it will make me think I need stuff which I don't but I have trained myself in the most part only to buy stuff I need. When I buy stuff, I say to myself, do I really need this or do I want this. And if it is a want, then I don't buy it. It's a process, sampling your life. I love tools, so some things still make it thru
You are not focused on a goal it seems. Think about where you want to be and then make steps to go in that direction. For me when young it was buying a house. Stuff buying it wont really make you happy in the longterm. These two gave good advice.
Some people may not like AO's simple answer, but that truly is the best answer. JUST DO IT! It is literally that simple. With that being said though, a fail proof way to not overspend is to physically have the cash set aside for discretionary spending. Once you run out of cash, you obviously can't overspend with money you don't have.
Budget, prioritize, and be deliberate. If you pay off your debt and then allocate some money for "fun," you won't feel guilty spending it. Don't underestimate the relaxation and joy associated with spending some on yourself because it can keep you relaxed and motivated. It's okay to spend some money on fun, but it's not okay to spend money you don't have.
Oh man, I have been debt-free for more than a year now and I mean I can not imagine I do not have a monthly car payment. This is compared to having a 250-300 car payment was a norm for me for over a decade. But I am loving it so much that the only major bill I have is the mortgage (phone & internet is paid by work), it keeps finances clean and simple. Now that I am used to it, I don't think I would ever go back to making car payments or big payments of any sort for that matter.
Motivation comes and goes. Being DRIVEN is what will get you through these situations. Focus on the goal and know that anything that gets in the way of that is not helping you. I also think about the fact that $1 now is worth $110 in retirement (40 years at 12%). So a $200 purchase is taking away $22,000 of my retirement nest egg. If you spend $200 a month every month on something you don't need that's taking away $2.3 MILLION from your retirement. Also ask yourself. "Is this helping me emotionally or financially". Every purchase you make should have this question asked about it. Yes, including groceries. Are these cupcakes helping me emotionally or financially? Is this salad kit helping me emotionally or financially? And it's ok if the answer is emotionally. I make emotional purchases too. But knowing the basis of the purchase can help you avoid the volume of bad purchases. Not every emotional purchase is bad to be clear. But taking some perspective before the purchase helped me.
I start by denying and delaying any non basic primary purchase. I also think in terms of minimalism. Do I have space?, It will need insurance?, Does it need maintenance?, What is the salvage value in case that I don't like it after a couple of weeks? How do I need to dispose the item? Toys like cars, bikes, jet skis, boats, RV s, RC toys, Legos, surfboards, etc are almost impossible for me to buy.
Way to zero in on matters of the heart on this one. Commend the young guy for recognizing it, he will go far for asking for advice and being willing to make changes. I WISH I heard info like this when I was 21. Go and go well young guy. 💪🏽
If you have self awareness about an emotional trigger, use your internal power to heal and release the trigger so it doesn't effect your current state pf consciousness.
I don’t necessarily think that “he who shall not be named” is wrong. I just think he plays a different game that works for him. I think we all have to decide what game we play in this life, and what is good for one person may not be the best option for another. I will say, though. I watched “he who shall not be named” first, and because of that, my thoughts on who I perceived Dave to be was completely unfounded. Not necessarily that it was a bad image, just a wrong one. Gotta love Dave Ramsey.
I love watches, and I always tell myself I "need" a new one pretty much every week, but every time I manage to convince myself otherwise, but it's becoming increasingly difficult.
He isn't really in dire need to sell the car. His expenses are low, his debt is relatively small compared to his income, and he's going through the program. I'd just pay off the car and loan in the debt snowball and aggressively build the emergency fund.
I think better advice would be to motivate him to get out of debt so instead of paying payments on stuff he can start budgeting fun money and then work towards increasing his income so his fun money budget can also increase.
To help control spending it’s important to have an accountability partner. If you are married or have a partner you can use them. If you are single then it can be a friend or family member
Nice video, really impressive. But in my opinion the decision to make now is to keep investing in Crypto currencies but invest smartly. I have been going a bit more aggressive for a few months now and my one year old portfolio has smashed over $800,000 in value from an initial allocation of $200,000. learn to diversify and DIY or get affiliated with a professional. However investing has one to it. Thanks for collaboration.
@@ondramarek2715 @Norman S Gilbert It is very possible to retire big time from the current market condition, the market might seem volatile, but most professionals look up to the volatility, I reached out to a consultant that helped me make the right market decisions and I was able to grow my portfolio from an initial value of about $100k to $5,000k on my first investment with her, so first step is discovering loopholes to generate profits during volatility. It's all about finding the right moment to take advantage of and generate colossal profits.
@@stefanmuller4903No doubt investing will be the best decision to take now, I have heard a lots of good and bad things about the market but I think it's worth the risk, been tryna reach out for a consultant to guide me through. Can I get in touch?
Sure, I invest with Mrs Patricia Jones, Under her guidance I have been able to navigate the market properly, She manages my investment with accurate signals which make her consistent in profit making. She also helped me understand the pro and cons of every decision I choose to take. So glad I met her and I would keep working with her for years to come. You can easily look her up on Telegraph @ Mrspatricia or get in touch with her directly on Insta-gram @ mrs_patricia_jones.
I go all in on every decent size purchase. If I can’t entrench myself in whatever item or experience I purchased and not just line up the next then it wasn’t something I wanted that much to begin with and a waste of $$$.
Sometimes I catch myself doing this and when I get home I don't open it and I figure if I haven't opened it in 2 weeks then I didn't really need it, so then I return it.
It sounds like he wants to, but in the moment he is tempted. A good idea would be to increase the emotional friction of a purchase: review your transactions at the end of each month. In the moment maybe it sounds cool to go out for a $200 meal on a whim, and you're paying with card not cash so you feel fine; however, once you have already eaten the meal you see that it was probably a wasteful purchase. If you discipline yourself to look at everything at the end of the month, it not only makes you realize it was a dumb decision again, but it also creates this feeling of "will the me at the end of the month think this is smart? or would I rather have that $200 to invest." Everything about consumerist society is attempting to reduce the emotional friction of transactions, so you have to play for your own team and fight against it. The guy sounds like he's on the right track though.
Love this call. Brandon, surround yourself with people you want to be like. My favorite saying is... You can't soar with the eagles if you hang with the pigeons.
Always ask yourself the one question “do I need it or do I just want it”. I guarantee you will know the answer to that question !! 99.9% percent of people know the answer to that question whether they CHOOSE to admit it or not is a different story !! We live in a society where we feel we are all ENTITLED to buying whatever we want and there is no consequences to our actions until it’s too late and you have to call into these types of talk shows !! Enough said !!
I think the should have talked to him about being and adult and with the maturity level that should come with it. Kids want and want because they do not know how to I delay gratification.
He is keeping too much of a safety net of cash, drop that emergency fund to $1000, put everything else on the debt. I think you'll find the excessive spending a lot more difficult to rationalize as you see $1000 drop to three little figures.
I don't really like Anthony's answer. This dude may have an addiction and addictions are very difficult to get through. He may need to find what his trigger is and find what he can substitute for his spending.
If you like spending money, and don't want to avoid debt? Simple. Replace the word "debt", with "death". And repeat it till your brain condition a fight and flight response into an aversion to "spending" money much.
The only people I trust is a show that people not to go in debt and someone that makes his own ice coffe for like 14 cents and tell us not to go to Starbucks. I think we all know how makes his own ice coffee.
