The Mistake the Financial World Makes About Money 

We did what Dave is saying. I put $3000-$5000 a month on our home/land. It was paid off in 2 1/2 years. I tracked our spending on a spreadsheet I created and as we got closed we paid more. Our vehicles were already paid off and our CC were paid off every month. I am now retired from 23 years of teaching, and we are totally debt free. Both 71yo and enjoying peace at home.

The financial system has been artificially pumped for over a decade to ensure big pockets were lined; and now those same hands will make a fortune in the largest transfer of wealth in human history by shorting it on the way down. Inflation does have a roll, but that's to keep everyone panicked, and focused on their bills and expenses, rather than focus on the capital crimes of politicians and corporations,I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market??

Cuddos to you Dave. I was introduced to your baby steps back in 2006. In 2005 I was pushed into filing for bankruptcy and had nothing. I was living paycheck to paycheck. I posted your principles up on my office bullitenboard. Lived by these principles daily. Today I have amassed over $3.5+ million. You've changed my mindset for the better... 👍👍👍

Never give up your employer match

I’m fortunate to have started investing at 22 in my 401k. At 41 it’s at 700k. Depending on how much debt, don’t pause the investing. Time is the only resource that you never get back

"Don't solve a behavior based problem with a math based solution." Brilliant.

From experience having tried both the Avalanche method and the Baby Steps. It was the baby steps that gave me a sense of accomplishment early- which gave me the drive to continue and BELIEVE I Could do this! It's 💯% behavior over math. Dave is 100% right on this. It was behavior and temporary feelings that got everyone into debt.

'mmmmmhhhhh mmmhhhhh. This lady just kills it for me every time 😂.

6 percent is a good match.

When helping people out of addiction there is a 12 step program so you can stay focused with some easy wins to stay motivated. Dave is saying you can't get financially well until you end your addiction to spending and to stay motivated in the process you need some easy wins.

We ended up doing these things without putting it in words or knowing it. Was taught if you cannot pay for it today, you can't have it. So the only debt we ever had was a house which we paid off in 14 years. Taking the money we were not giving to banks in payments and interest and putting it in savings and investments for 25+ years has now more than secured our lives and future. It's great to be able to do anything we want, give generously, and travel the world without worrying about the cost. Retiring in our 50s. Such a tremendous feeling of peace and contentedness. We don't worry about what the economy is doing. It does not affect us.

I purchased a lake lot and planned to build, paying cash. We make $160,000 total per year and live in Wisconsin. When building we will double our current home value and triple our current taxes. Is this going too far knowing we make $160,000. We are 40 & 48 and plan to retire at 65.

With regards to Rachel's childrens book im glad for what i have, i believe grown ups can set this tone in life if we relish our homes and not speak into them as an investment only....relishing our shelter is truly a sign of contentment!

Yeah, Dave flip flops on math on a daily basis. One caller, he uses math to prove a point. Next caller, he discounts math when it doesn't jive with "muh baybee steps". The only time I would forego a company match is when you are so far under water you cannot pay for your essentials (housing, food, transportation).

There's no "wrong" plan between the snowball method vs the avalanche method. The best plan really does depend on the person as Dave mentioned

I think this is where it’s important to know yourself and how disciplined you are. I think Dave is right for the vast majority of the population.

I used the snowball before I even knew it had a name . My thought was if I could just pay off one it would mean less payout a month. Before I knew it, I had 2 , 3 and 4 paid off.

Yes. It’s behaviour versus maths. But this guy would benefit from the FOO from The Money Guy on RU-vid. Get the employer match. And then debt snowball, not avalanche. That’s the behaviour there

It so depends on the person. Dave is right: 75% of folks shd pay debt first. But if you’re by nature v controlled/disciplined, and you have a plan, you can do 2 things at once (pay debt and leverage valuable investment opps eg sharesave and pension matching)

Wrong. Numbers and math don't lie! Emotions make you take chances. Dave just said that it was not about math while explaining it with math. Pay off debt to increase free income to invest more. It's just math.

When you are 65 i doubt you will realize or even care what the amount you "lost" was when you were in your 30s and paused any retirement You wont even know what that amount would have yielded. You'll only know you got out of debt

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 HAUNTING THEM IN THE NEAR FUTURE. PUTTING OUR TIME AND EFFORT IN ACTIVITIES AND INVESTMENTS THAT WILL YIELD A PROFITABLE RETURN IN THE FUTURE IS WHAT WE SHOULD BE AIMING FOR.

I love the energy between these two they complement each other well. New school paired with the old school and it meshes well.

This country runs on people who are bad with money, bailed out by those who are good with money.

Finally out of all debt .. but saving for a home nowadays is another story 😅

Gonna pay off 15k loan next month 1st, then payoff 10k loan next month and a half then pay off 15k truck over next 2 months, working 70 to 84 hours a week.

The question is whether you need constant positive reinforcement of seeing 10 monthly payments turn into 9 rather than seeing "i owed $100K and now I owe $80K will speak to you if accomplished in the same time period. Leaving a 6% match on the table makes sense if you are using the money to pay off 24% credit card debt AND can accomplish it quickly. But realize that it is costing you the gains on 12% compounded over years. Paying off the highest interest first will get the job done fastest IF you can stick to it, and leaving an employer match on the table is usually a mistake. And once you are debt free, seriously consider whether those 401K investments should be in a Roth or a traditional account. That traditional looks really good with the logic that "you're in your highest earning years, blah blah,: but when you reach retirement age, the picture may look a lot different to you...particularly if one of your goals is to leave money to your kids. Being able to leave that money to them tax free may be even more important and you won't have to take dictates from Uncle Sam about how much you must withdraw. It sort of amounts to whether $100 taxed now is better or worse than having taxes on $600 or more at retirement.

I never paused my 401K contributions. The result of that was it took me 1.5 years to get out of debt instead of just 6 months. The last 6 months of trying to pay off my last non mortgage debt was difficult...def wanted to quit.

Where is the study of millionaires Dave keeps referring to?

Lit ep

People in their early 20s need to pay attention and avoid the debt ..You don’t need that expensive car and fancy restaurants. That can come later.

My bf told me he didn’t have money for rent this month then went out to eat and brought home a case of beer.

Uh huh, that’s right, you tell ‘em Dave, uhuh, right, yeah, ah hah.. that’s all I heard the first 7 minutes 😅

Wow love your answer here! This is a question I’ve been asking myself and refusing to accept your advice on (I’m an Accountant) But your right, it’s not a math problem! So math won’t get you out of it!

This really just depends on how well you know yourself.

LOL Ill never forget the blump blump at the car dealership boy is that true ill use that one as a quote for sure i love it

He keeps saying, "becoming a millionaire" but as I had to tell my grandson, "Ben, a million dollars isn't all that much money".

I see this all the time with amongst my MBA colleagues. They will show you mathematical equation after equation on a white board why it’s better to invest in the market than pay off a mortgage. But, no one can point to a single person that has successfully invested the extra monthly mortgage payments over the entire 30 year mortgage period the calculations assume. No one does it. No one has the tenacity to follow through for 30+ years. All of them would have just been better paying off the damn mortgage. But math won’t tell you that. It doesn’t factor in human nature.

Austin, just do it the Ramsey way. From someone who tried to do everything in the beginning and the lack of focus is not that effective as I found myself. Now I’m out of debt and maxing everything out is no problem. With a spouse, it’s even faster with two accounts. You will catch up in no time!

I love sports analogies. Thanks, Jade 🏈

What he is saying here is using emotion over math. That is fine, it's a way to do it, but you can't assume it will leave you ahead financially. Example, I'm debt free except my home. My home is at 3%. Math says i make minimum payments until it is paid off and invest the extra for returns. Emotionally, i want my home to be mine free and clear because of the risk involved in having a loan on it should something happen financially. Making an emotional decision is fine if that is what you want to do, but in the match example, you will never beat the market.

Compound interest is amazing id take the match. The match isnt going to take alot of money away from paying off the debt.

Today finally Mr. Ramsey has validated my point. I like him now more. Yes you can pay debt with logic and invest too and come up ahead but as he mentioned that requires discipline to the core and those are less than 1% of people like Erica he mentioned in the call. But kudos to pointing that. I am the same way because I am in no rush to pay my mortgage because of my XYZ reasons. But I am also very very disciplined with all I do. But majority of ppl should 100% follow what Ramsey teaches. Good people he is. Love this channel !!! 😊

Oh I’m just here for my typical much needed Dave rant. 😂

Dave misses his own wisdom here: debt is risk and removing it frees your mind and lowers the probability that a calamity causes hardship.

Of course Dave's way pays off debt quicker. It also magnifies the opportunity cost of free employee match money - which could be worth tens of thousands by the end of your career.

Really like how he phrased the car depreciation as $10,000 leaving your net worth. I've never thought of it that way. But how many times do you buy something in life and immediately lose that much value? You had $40,000 in cash, spent it, now own something that is essentially immediately worth $30,000 if you tried to turn around and sell it. Losing $10,000 in net worth for privilege of owning a car. As an investment vehicles really are truly dreadful. Makes sense why so many wealthy people I know personally and have seen online drive such basic cars. It's an awful way to retain wealth.

I don't purchase a car as an investment. It is for transportation for 12-15 years.

Bifurcate doesn't mean spread out. It means separate into two. That's why it starts with the prefix "bi."

Does the co host (can’t remember her name) ever disagree?

Shout out to the Money guy show, get the match!!!!!

Love the football field analogy

Run it straight up the middle. Stop zigzagging. Man when you put it like that, it makes alot of sense. I get a little lost/overwhelmed listening/watching this channel but putting some of this in terms that people can understand completely is awesome

Not sure if my math brain could ever give up a 100% return to pay down a debt at 10%.

How about instead of not getting a match on your 401k you work harder to make the difference so you can apply the extra work to debt. Now you have both problem solved

We are debt free by following these steps. However we always lived below our means and bought things at what we could comfortably afford. Both retired and enjoying life.😊

This was one of his best videos to date. This is when I really like Dave

I’d be more motivated to clear the debt to get the reward of investing 15% plus 6%.

Investing can be a very powerful way to grow your money and secure wealth for the future and for your children as well. Imagine making a profit of 10,000 dollars with my little capital of $2,000 with the help of Stacey Meredith.

Same academic background? Does that include your bankruptcy Dave? What classes did you take to learn how to steal?

This guy is more of a money guy person than a Dave Ramsey person. The reality is he’s too financially put together for the Dave Ramsey plan to be his optimal plan. He’s getting a 100% return on that 6% contribution. Unless he has a debt with an insane interest rate, in no world does it make sense to forego that match.

Dave is all about recommending what will help the MOST people, not what is best for an individual. Do with that what you will.

Jade offering nothing except silly agreement noises all the time

It will depend how big your match is and how big your debt is. If u make 50k and If they match 100%. If you put in 15% of salary, that's a free $7500 a year. However if you have debt, if the interest your paying on the debt is more than what you're getting from the match, then it's not worth it.

Love, love, love how they explained this with some new ways to say the thing they've been saying for years...."Run it up the middle"...."The financial world has been getting it wrong forever."...Great job again, folks. Thanks.

Don’t ever pass up a guaranteed 100% ROI

These are very valuable info for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the knowledge embedded in it. 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've got $110k set aside to put in the market.

Never foregoe a company match.

Just can’t reconcile this in my mind, but then again I’ve never had debt other than my mortgage.

You cannot solve a moral problem with technology

I want to know daves opinion on chikfila

Avalanche all day every day, suits you sir!

If I was in the position to get an employer match on my retirement fund then contributing enough to max it out becomes my number one fiscal goal for me to be laser focussed on. Unless I had credit card debt but regardless of other debt. It's a good way to 1) pay yourself first 2) get free money 3) have my wealth growing. The reason is, if your employer offers a retirement benefit they likely also offer a high enough salary for you to have a big enough shovel to get well along the baby steps.

One of the things I completely don’t agree with Dave on is using a HELOC or 0% transfer offers to pay of large amounts of CC debt. Behavior does not counter the $250 a month you are paying in interest on a $10k credit card. If you have $20k in credit card debt and a moderately low income, you will be paying more in interest then the max you likely will be able to put against the cards each month. That is trying to walk forward while on a treadmill moving in the other direction.

The math tracks though. Interest hurting you almost always is higher than interest working for you, so if you kill the debt, the absence of interest will help you with the interest that helps you.

✝️

Financial side of it is the goal. Know how is the actual strategy and activities that get you there. Goal without plan and action is a wish.

Dave is wrong. Always take the company match. Suppose the company match = $1,500 annually. If you wanted to, you could take it out, pay the 10% penalty ($150.00), pay the tax (say another 20% of $300.00), you still have $1,150.00 to put on your debts. Also, it is better to pay off your high interest debt first. Yea, Dave is pretty much full of shit most of the time.

I love the people that justify new cars with “I needed something safe for the kids” or something about having a warranty

If you make 100k and have a 6% match just pretend you make 94k. Problem solved.

Just like losing weight. The math is eat less, exercise more equals weight loss. But the Behavioral based problems are what we struggle with

First Step: Don't get into debt. Second Step: Don't buy expensive. Third Step: Be happy with your blessings. Nobody can tell how long your life will be. Save something for a rainy day. 🤫🤫🤫🤫❤🇺🇸❤

Let’s stay away from the sports analogies… 😂

As has been pointed out here, the finance world is doing math, advanced math called actuarial science. It's just designed to ensure that the customer never motors up to the yacht club in a Hatteras.

Comon Dave, it's dumb to not get a match when it's 100% match

and AGAIN DAVE IS WRONG... IMHO, nothing is more important then your retirement... it is more important then home ownership. If Dave says forgo the 6% retirement so you can get a 6% match and instead put that money towards student loans... I think is WRONG.. .DEAD WRONG. I personally would put away 15% then tackle your debt with what is left... or AT LEAST put in the 6%.

Didn't make sense to me. Ability to pay off debt is based on your after tax income. If you contribute 6% to pretax retirement account like a 401k, you will not see any difference in your take home pay. So why would you leave money on the table if there will be no difference in your shovel (shovel= take home pay)

I don’t agree with Dave here never give up the company match it literally free money… you can still have your main focus paying off debt… there are many things you can do go on a diet no restaurants no Starbucks… rice and beans…beans and rice … you get the point… great topic 😊😊😊

Dave, just say "dumb ass". It's okay, we can handle it. Some of us need it. Some of us need to be called a dumb ass to wake up because "dumb butt" just doesn't cut it. It doesn't carry the same weight. It doesn't connect to that same part of our brain that feels the emotional impact of having been called a dumb ass in our past

Fiat debt is not money. Debt doesn’t represent real wealth, it takes it.

This sounds like a staged call but appreciate the advice regardless…😄

We dont need the background verbal affirmations "uhhuh, mmhmm, yeah, mmmm". Its distracting, unnecessary. Wait for an opportunity to contribute.

Jades just there kissing Dave’s behind She needs the Boot 🥾

2:35 laser is not focused light dave!!! REEEEEEEEEEEEEEE ( oДo)

"its not the leather, its the carcinogens... you're getting cancer right now" lmaoo

Jade is GOOD.

The answer is: you shouldn’t do what Dave says. It costs you money.

Does Jade say anything else other than “Yeah”, “That’s right”, “I agree”, “Mhmmm”? How embarrassing that she can never formulate an opinion of her own

1st

One of the three things I disagree with from this show. 1) Stop your 401k when paying down your debt The other two: 2) Don't live together before marriage (not a purchase, just living as in rent) 3) You can expect 10-12% returns in mutuall funds