This Is Why You're Still A Poor Person 

People are facing a tough retirement. and it's even harder for workers to save due to low-paying jobs, inflation, and high rents. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire in.

Financial management is a vital subject that many avoid, often leading to future regrets.

My wife and I just finished paying off $94,673.35 this morning. Praise God and thank you Dave for these teachings! I’m 22 and she’s 23 so we are excited to start young.

Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.

Dividends are dope. Personally, I sometimes use my dividends to buy other dividend and growth stocks for diversification instead of reinvesting in the same stock. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important. Salute for the content!

No purchase is better than the peace of mind of having no debt.

"Rich people don't ask how much down and how much monthly, they ask how much " Love it ❤ .. very true!

I’m 63 years old and I can’t tell you how refreshing it is to see a brilliant young lady on the show. Hopefully that will help you reach a broader audience. It shouldn’t just be us older guys talking about money! Thank you ma’am for your intelligence and your insight! It is a pleasure watching you

“If you want to level up; you change your behavior, you change your habits , you change your views . Where there is no vision the people perish”

For those of us who are older, we remember when the banks encouraged farmers to take out loans for new equipment and mortgaged their farms. Then they called in the loans and farmers lost their land. This was in the 70s. My dad kept his old equipment and we were OK. But it was tragic for a lot of farmers. Don't trust bankers, lawyers or preachers. They all want your money.

Sep 2023 just did my last home payment!!! Like papa dave said before, I feel and smile differently now. Thank you, Mr. Dave.

My FIL had moderate income, invested well, denied himself nice cars and vacations, had tremendous income when he retired at 65...then...three months after retirement he was diagnosed with stage 4 pancreatic cancer and passed two months later. Live you life in moderation but enjoy yourself.

My final federal student loan payment went out this month! $20K I will never owe again. I made payments during the pandemic and I’m so proud to be part of the 1% who did. Thank you Dave and everyone at Ramsey Solutions. Next snowball is my car! 😊 Trying to get out of middle class 🤞

My wife grew up very poor, it was incredibly difficult to get her out of the mindset of "why don't we finance the ____?" phones, fridge, washer/dryer, bed, game system, house repairs, tools, etc. For me it's "ABSOLUTELY NOT" and since we have been together we have had $0 debt besides a 15-year mortgage that we will pay off in 10. Financially we are set. We may buy a Car in the next 2 years or so, but trust me it will be paid at least 50% in cash, but hopefully 100%. People do not understand the horrible implications of what financing/loans does to your monthly income long-term.

Simple answer. Do not finish your basement if you are moving in 2 years. I don't care if you use cash or borrow. Save your money. Move in 2 years.

The reason lottery tickets sell SO well in lower income areas isn't because they don't understand the odds, it's because they truly feel that they would rather have a razor-thin chance of "making it" instead of "ZERO" chance, which is what they are utterly convinced of. How do I know? It used to be ME.

I am from South Africa. Thanks to you Dave i am at peace No credit card debt No car payment- bought it as a second hand car No personal loan Only home loan payment. Im in a much better financial state. All thanks to you.

Dave, "forever and ever, Amen" 😂 I loooove Dave, his realness, bluntness, and no nonelsenseness ❤❤. He cares! Thank you for this DR! The Finance Doctor!

At 42, I've come to realize that money is a tool. I’ve worked so hard over the years to realize that if you don’t make money work for you, you can’t experience true freedom. I’m glad I found that out although it was later in life, but that marked the turning point in my finances.

We paid off our home in 2017 at 15 years, three months. Once you pay off your mortgage you have tons of money. We are debt free and power saved for years after that so Covid was nothing but a nice vacation. Thanks, Dave!

No car payment No credit card No house payment Almost debt free. Emergency fund saved Railroad and military retirement! 401k and stocks. Let's go! My ex wife said I love Dave Ramsey more than her. Yup!👍🏾

Living within our means still a tough concept to absorb for most Americans in our consumer society.

Apparently there is a cost of living crisis, not in my debt free house! No debt, no mortgage! Thanks Dave from Scotland!!!

Yes I agree. Im a single 30yo and I live alone in a decent 2 bedroom condo in CA( garage, inside laundry room, fireplace, walk-in closets, and other amenities) even though I only make $55,000 annually. Most people either live with their partners/so or roommates (sometimes total strangers). I drive a 2015 Mercedes-Benz which I own, I don’t make monthly payments. That’s primarily the reason why I am able to afford living alone. I don’t have ANY debt. Paid off all my CC and also my car. Most of us don’t consider this a debt when in fact it is the most common type and usually the highest! If I had continued to make my monthly payments there is NO WAY I could afford my current lifestyle . I advice people (like me) who plan to keep their car for 10+ years to PAY IT OFF QUICK, IN FULL!! Even if (like me) you financed for 5 yrs, I paid off mine in a little over 18 months. Saved thousands on interest and gained freedom, SPECIALLY financially.

We were dirt poor as a family of 4 making $17,000 a year and $11,000 in debt. We followed Dave for years. Now we own a beautiful home with $265,000 in equity so far. My husband and I each have a retirement account. Our kids are grown. We'll be selling this home and purchasing a smaller home with no mortgage.

This question is a pefect example of how financially ignorant this country is. "What is the benefit to having all this equity?" Wow, just wow. They prioritize teaching so much nonsense in school these days. Yet so many schools refuse to teach basic finacial literacy.

The US economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

The problem we have is because Most people always taught that " you only need a good job to become rich " . These billionaires are operating on a whole other playbook that many don't even know exists.

So true, all you both said. You really don't need the newest and nicest stuff to be happy. Happiness can be sleeping at night not worrying that the bank is gonna come take back everything you have!

For the past 4 weeks, I have been viewing this channel, and I feel amazing, like I have wise and rich friends that are teaching me how to become wealthy, during this time I have paid 4k in debt and I have my Emergency Fund saved. I am working with the everydollar budget, and project to be debt free in about 6 months if not less than that. Baby Steps, one step at a time.

I retired with 6 figure pension. Zero debt. Except one thing. 52k equity line on a property in the mountains. I couldn't sleep at night. Didn't want to pull money from investments. Went back to work at something I love. Paid off the loan. Freedom!

If you ever say you want to borrow money, you’re making the wrong decision.

Yeah I LOVE this checklist. I don’t want to be “normal” like other broke people Don’t lease a car Don’t take out a second mortgage Don’t finance a vacation Paying off my student loans, listening to Dave every day

I treated myself to a new car . 20 years later I still have it with less than 70, 000 miles. I am debt free and blessed. BUT for me I realize that if was diagnosed with a serious health condition I would be screwed because of healthcare costs despite having insurance. I am also starting to believe the saying "There is nothing more stupid than a person living poor in order to die rich."

100% agree. When I was 26 I bought my 1st apartment (2016), so instead of upgrading to a new iPhone I was paying my mortgage! Since than I have bought and sold 2 more apartments (instead of buying clothes and spending on stupid stuff). Which after selling last year left me with one 100% paid flat and 50k euro cash! It's all about the money habits! Btw I did this following Robert Kiyosaki adviced since I started it all with 10 euro in my pocket! However, I absolutely love Dave advices too, so now that I am 33 years old I follow both of their advices to some extend. Also one of my fave books is the "Millionaire next door"

Guess what folks…if you still have a mortgage on a home or loan on a car….YOU DON’T OWN IT. The bank does

I'm 31 years old, making 28k a year and trying to find a way to get out of my poverty. I started to read books about finance to see if I could make a plan to get out of the situation. I hope it work while I watch your videos as well

This is one of the best shows I've seen by Dave and I've listened to 100's. This is basically everything you should and shouldn't do in a nutshell.

my car is 21... i love it... i own a house... i am debtfree... i love it. not much money, but happy....

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 haunting them in the near future.., I pray that anyone who reads this will be successful in life!!

I am seeking some investment guidance. It seems like I am never able to identify trends, options always go against me, and I can't utilize scanners efficiently. I am looking for a simple reproducible passive income strategy that supplements my income and eventually replace my wage income.

Another middle-class mistake that I have observed is charging consumables, especially dining out.

I strongly suspect that the person offered interest-only for 10 years thinks they don't have to pay back the principal. Not understanding the value of the equity in the home bespeaks someone who really needs something like Financial Peace University.

My tenants can't pay the rent,but they have 2 brand new cars in the driveway.

I was with you until the airbag thing. I feel like airbags are a perfectly reasonable thing to want in a car 😂

Dave is a Genius for Hiring Her!!!! That Damn Ramsey Wins Again!!!

My ex does stupid 💩 like this. I’m 10 years into my “new” marriage now and so ridiculously happy I can’t stand it. Being on the same page (the DR page) with someone is amazing. Being with an idiot child-man obsessed with status symbols and wasting money to impress strangers was horrible and stressful.

2022 was a hell of a year, I have made $150,000 before taxes as the sole breadwinner and head of household. This is a great starting point and I’m very aware how blessed we are to be in this position, but I’m always looking ahead on how to improve. I currently have $88K left in student loans (originally close to $150K) and very little credit card debt (less than $2K with more than $25K available). I have two auto loans totaling $100K for two electric vehicles at 5% interest. I will appreciate suggestions from anyone who has been in same shoes on how to go about them

No debt aside from medical bills but they only added up to less than 5 grand. Drive old cars , live in a trailer, for now, not by choice. At 57 trying to find my way back to middle class. We've been through alot but well come out of it by Gods help and the decision i make. I don't care to be rich, just to be ok. But you guys are right about what we do with our money puts us in a bad place. Im prime example. Hopefully ive learned from my bad choices and can look forward from here. Thanks for your channel.

We just started reading your books. My husband and I have 35000 in debt. We don't own our own house, we rent and our debt is our car and credit card combined. The card is the highest APR, so we are paying that off quickly, once the card is paid off and closed, we are funneling the extra money to our car balance of 28000. So exciting!

LOVE THIS! Smart in a nutshell. I love how Jade and Dave have developed this rhythm like they read each other's minds! Jade is the most articulate with fast thinking on her feet of all Dave's sidekicks (even Rachel - she's hard to listen to as she stammers around and has trouble finishing her sentences_)

Not having an airbag is a real problem, but that doesn't mean that you need a $40,000+ car. I bought a 7-year old Honda Accord 5 years ago my senior year of college for $9,500 and it is still driving great.

I love Dave and Jade and the whole team!!! God bless you guys!!

We had an interest only home equity loan on our previous home but we made a point of paying extra on it every month towards the principal. At the end of 10 years, ours then automatically defaulted to a traditional installment loan with principal and interest amortized with the balance. Fortunately, we paid it off before it reached that point. It's all about discipline! Agree completely with Dave about banks. I used to work for one many years ago and it's all about making money and it's gotten way worse over the years.

I screwed up and took out a home equity loan and it went from 4.5 percent to 10 percent. We are dying financially now.

These 2 are a force. Great matchup

I’m a millionaire and I still drive a “pre-graduation” car. 😅 I hate car payments 😂

This is not what "poor people" do. This is what broke people do. The larger the house, the harder it is to sell because you have a greatly reduced buyer base and the buyers have much higher expectations. You never improve your house beyond the neighborhood its in.

The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.

I love what you have to say. I was fortunate to have many financial teachers when I was just starting out. They told me to put money into my 403B (I worked in a hospital) and gradually increase it. My boyfriend/future husband did the same with his 401K. When we got engaged/married, we NEVER used credit cards unless we could pay off the debt. We bought our 1st house after a failed 1st condo, but it was at a lower price point than what they told us "we could afford". We paid off our mortgage in 2016, and then put those "payments" into investments, which enabled us to retire early. It used to drive me CRAZY when my younger co-workers complained about living "paycheck to paycheck" and yet their 3 year old had an iPad, and I knew they had nice cars. OMG!!! What the heck! Live within your means, for crying out loud! Okay, I'll get off my soapbox, lol!

Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.

Why!! Honestly!!! Why would you call Dave Ramsey and ask him about taking out a loan? Are you new to this planet?

Those of us elders who were raised by Great Depression parents already knew all this. Never trust the banks. Borrow no money unless you have to for a small mortgage. Pay that mortgage off within 5 years or less. Pay cash for cars. Save every penny you can. Sadly, those lessons have died out and have to be relearned again.

The big question is if they are planning to move within two years, will the renovations increase the price of the house in excess of the cost of the renovations. Personally, if I were planning to move, I wouldn't go through the hassle of a major renovation unless I was going to realize a significant return on investment.

It is very important to help your community to stop the poverty.

Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues well above the Fed's 2% objective. I'm trying to build a portfolio of at least $850k by the time I'm 60, therefore I need suggestions on what investments to make.

When I got out of college, i had roughly $30,000 debt. I did not own a car at all during high school or college (parents couldnt afford to give me theirs or get one for me). I lived off of the bus system my college and the town used. It sucked but I did it. When i graduated and moved back in with my parents, there was not much of a bus system in my area. The job I got required I be available pretty much whenever needed. I had to get a car. This is what I did: I knew in college I would need a car at some point, so I took out max loans allowed (govt loans/pell) and saved as much of those as I could in back that was not necessary to survive and be educated. So when I got out of college, I was able to take $13000 and outright buy a used 2014 nissan sedan. Nothing fancy, looked to be in good condition and still drove decently, only 14000 miles on it. Had it for about 6 years now and still my only car. Not sure if this was the wisest plan given the ehole situation could have gone sideways, but might be a plan if you need a car after college and want to avoid debt. Note: I worked at a GAS STATION for $10/hr after college full time (40 hours) and picked up a min wage side job to pay off loans faster. So if you can get ANYTHING that pays more for 40 hours regularly than I did, you will be on the same path are far better off than I was - excluding living alone expenses since I lived with family. Note 2: unless you want to teach or do research, avoid psychology as a major. Huge waste of time.

In light of the impending recession and the fact that inflation remains above the federal reserve 2% target, several leading market analysts have expressed their views on how dire they believe the economy will be, next recession and how far stocks may go. I need advice on what investment to make because i want to build a portfolio for my children that will be worth at least 800,000 dollars

We need more of Dave on the mic telling it how it is 🙏🙏🙏

Preach it! Loved the commentary on class behaviors.

There are a few changes I would like to make to my home. Nothing "needs" to be done though. I am focusing on paying the house off, which should be about four years. ONLY THEN will I look at making any cosmetic upgrades.

The problem with so many people is they constantly have the urge to sell and buy a bigger house every 5 years, always in debt, because they feel the need to keep up with the Jones. I bought my first and only house in 1987, and am still living in that house. I am now a multi millionaire investing all that extra money for all those years.

*I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.*

Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680k savings vanish after putting in so much effort to accumulate them.

I put $150 weekly towards taxes since we paid off the house. It irritates me that I have to do this. The rest is invested and saved. We live under our means so we can live like nobody else. We have no debt.We went out to dinner, and I left a huge tip for our waiter. The next time we ate at the restaurant, he greeted us. He's paying for his own college education and raising 3 children. He needed the break. I'd do it again in a heartbeat.

I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains with months, I'm really just confused at this point.

From the UK , Dave saved my life Thanks for all you do , I wish you could get phone calls from The UK aswell

Praise be and blessings to Dave. My wife and I are both 19 and just paid off our university tuition in advance totaling $387,536.29. We are sophomores and are now debt free and saving up to buy a data center for our AI business Baby Steps LFG!!

Paid off all my credit cards and felt as if I am no longer living paycheck to paycheck. What a relief.

Watching these videos keep me on my toes for real . Like Aht…Aht…. don’t you go get a new car & you don’t need one. Even though I’m good at staying on track & not doing foolish things I love watching these type of videos.

Watching this at a point of really needing a miracle. Thanks for this teaching. 🙏

I can't tell you how much your podcast has and is teaching me. I'm a new listener and am so grateful to God that even at the age of 50 that I started to. I Praise God as I sit in my 2007 Toyota that I bought from a college student, happy as can be because I truly own it. All the best to you and your team.

Back in 2007 most everyone was using their home as an atm. I had a hard, personal rule never take an equity loan for anything. My friends and family refinanced and took equity loans and were driving nicer cars and taking better vacations than me. When the financial crisis came most of them went broke and bankrupt. I wasn't even underwater. Their Escalade was a burden. My Honda Accord was paid for and I had money in the bank.

You forgot a few big ones for middle class - 1. Endless monthly subscriptions (Netflix, Prime, etc.), 2. Going to Tenbucks, I mean Starbucks, daily because you feel you "deserve it." If you cannot immediately raise your income, you can definitely lower your outgo! BAM!

I owe 2 more months on my car. The payment is due on the 29th, I've tried to pay it, at least by the 10th of every month. Why? Because it's "interest compounded daily" just like a mortgage, and if you can pay it off earlier in the month, or even make 2 motrgage payments (the equivalant of 13 total house payments per year) then it will be paid off years early! This is my last thing to pay off. By Nov I will be debt free.

I'm 28. I'm poor and unsuccessful, because I didn't learn and follow Dave Ramsey's advice at 8 years old. It was to late for me to learn at 18. But finally at 28 I think I have all his advice in a nutshell. The moral of my story is, if you wait to prepare when opportunities are presented, it's too late. You must start preparing well in advance of opportunities.

In my opinion, enjoy the house and enjoy what you have. The equity will build over time, it’s about time in the market not timing the market.

“Pay for it or don’t buy it” ✅

THIS is what Ramsey Solutions needs to keep doing more of. In another RS video where someone asks about her college loans - the comment section is filled with people who *still* don’t get it, they don’t even sound like they *listen* to Dave. When I described that we paid off $145k in debt in 6.5 years, on a single income that went incrementally from a gross yearly of $42k to $52k - people actually called me a “liar”. Nope - we have always had cash-bought old cars, when mine died we remained at one car, we don’t pay for childcare since I’m home, we don’t eat out because that’s my job. No vacations, every tax return and “covid stimulus check” went as lump-sum payments towards debt principles. And $13k from the profit of selling our home went towards debt as well. We were debt-free, then bought my fathers house for him (he stayed!), and are on schedule to pay that mortgage off within only 5 years. We *literally* “live like no one else”... yet Dave Ramsey views still think it cannot be done. More content like this!

I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Charlotte Miller.

Amen Dave! Live within your means and save…..only took me 43 years to figure it out.

Hey everyone! Since i started following The Ramsey show I've been a member of this amazing society of investors for a while now, and I can't articulate how much it has transformed my life. We're not just here to earn money; we're here to uphold one another, grow collectively, and rejoice in every stride toward our financial aspirations.

"Poor people do what poor people do." Thanks for all your advice Dave.

What a video. Not one lie told especially about the actions of Poor People.

Why would they do any “remodeling” when they have so much equity and they’re planning to move anyway? Wtf?!

3:00 “We know, having studied wealthy people, that one of the primary things people do: there’s two things that cause people to get their first $1M-$5M in net worth, 2 primary things. They invest steadily in their retirement plans (growth-stock mutual funds, like 401k’s/Roth IRA’s AND pay off their home.”

I started with nothing, have a decent career but not super high income, and I’m a millionaire now at age 44 by just doing what Dave preaches. I didn’t know about this Dave Ramsey show before. I bought my 2008 Pontiac Vibe 4 years ago with $2400 cash. I’m still driving it everyday now and it’s still running great. It’s not a pretty car that people would dream of having but it serves me day in and day out. I never had a car loan before and probably never will. I see car as wealth destroyer for middle class people. A college car works for me just fine. I rather drive a college car and have money to invest than drive a good looking car with a car loan.

I get where he is coming from, but wonder why anyone would send in a question when they get responses like this. I was raised lower middle class and my parents drilled into me many life lessons. The ones about money were to avoid debt. Save for what you want. Live below your means. Even when I was out on my own and barely making more than minimum wage I quickly had 6 months of take home in the bank.

He had me until he said you can be a rich person by making $40,000 a year. Dave himself always says your income is the most important driver of wealth. He cant have it both ways

holy crap .. an interest only loan?!?! good grief