Use My Emergency Fund to Pay Off Debt?

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Use My Emergency Fund to Pay Off Debt?
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11 сен 2024

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Комментарии : 346

@TheRamseyShow 3 года назад

Say goodbye to debt forever. Start Ramsey+ for free: bit.ly/35ufR1q

@TonyMaine915 3 года назад

We Love your Show!

@lkj0822g 3 года назад

Something tells me there are a few things this caller didn't mention. $85K income and $14K debt? Stop eating out. Stop the shopping. Stop blowing through money. Throw everything at the debt and be done with it.

@aeromedical6750 3 года назад

Something about this chick tells me she lives like she makes $125K. Why does she even bother to ask for advice. I have a friend who asks my advice about money and then does exactly the opposite. He’s basically looking for me to validate his bad behavior with money, which I will not do. I finally just told him “You don’t need my sanction or permission to spend your money anyway you see fit. However, I won’t advise you to do something stupid that I know is not in your best interest either!”

@blackworldtraveler3711 3 года назад

It’s never the whole story with these videos. That’s why I only watch for entertainment.

@yolo-qr2fq 3 года назад

Its called liberal thinking in Seattle is screwing her over.

@704ab 3 года назад

But i Neeed a new $1500 pair of shoes!

@louib716 3 года назад

This was sort of a silly call. Any debt that can be settled in less than six months shouldn't need a strategy. Just do it, man.

@matty2time 3 года назад

Lol

@Stormy_Dawn 3 года назад

Calls like these are so frustrating.

@Djessjazz 3 года назад

Pfff It was a silly call 🙄 sometines I don't get what these callers don't understand

@Stormy_Dawn 3 года назад

@@Djessjazz I've been there...they understand it, they are stuck in a fear mindset ooooooor they enjoy spending way too much. I teetered between the 2 types for far too long. It was crazy difficult to break away. I was always super open with my sons about money coming in & going out of the household. My oldest son one day was like "why aren't you doing exactly what you are teaching us"...OUCH! It took about a year to get it turned around. Now hearing others that are stuck like that makes me want to shake them. I'm super grateful that my son was there to shake me!!

@wtk6069 3 года назад

@@Stormy_Dawn That's it exactly. Like Dave says, it's not a financial problem.

@DearDebt 3 года назад

I wouldn’t touch my emergency fund to pay of debt right now, If 2020 taught us anything, it’s that life is unpredictable and the worst can happen in a snap.

@rogueskiss3794 3 года назад

Us as well! we stopped at $3000 in savings and only use it for car repair. Tooks us a bit longer to pay off debt but feels good not to worry about those car bill.

@C_HILL_OUT 3 года назад

@@rogueskiss3794 we weren’t comfortable with just $1000 baby emergency fund. We upped ours to $2500. We paid off our debt in 40 months and then fully funded the emergency fund. I think Dave needs to update the baby step 1.

@markplenty2631 3 года назад

I used all of my emergency fund to pay off my car. Now I have nothing, but I don’t have to pay the car anymore

@victoriaskinner8434 3 года назад

Dave has said in other videos that if you feel you could be threatened by the virus i.e. your job could be on the line, ditch the baby steps and just stockpile cash until the storm is over. Also, the 1000 starter emergency fund is supposed to feel "not enough". It's designed to make you feel very uncomfortable so you race through paying off debt faster.

@markplenty2631 3 года назад

@@victoriaskinner8434 my job is a self employed taxi driver, god has seen me through how though I don’t know, I always give to the less fortunate and have been generous throughout many years.. may this is just karma for my good deeds, I’ve been stockpiling cash, I had £11,000 (I’m in the uk) and I’ve just blown the lot on paying off every bit of debt apart from one personal loan, my income dropped to zero when the virus came and then my landlord evicted me because I was sharing the house with him, so I’ve been living in the car and my brothers sofa now and again. I only have the loan to deal with and then I’m debt free... 👍

@PPLIR 3 года назад

Just paid off my student loan debt on Christmas Day and I’m debt free at 25! This year I’ll finish baby step 3 and hopefully save up enough for a down payment on a house before 2022 😊

@wewhoareabouttodiesaluteyo9303 3 года назад

WOOT! Remember, keep females out of your sight. If you need a fix, go to a third world country (preferably Dominican Republic) and have your fun there.

@crazeekids9744 3 года назад

@@wewhoareabouttodiesaluteyo9303 why must you people troll this channel. Just go take all those red pills and slither away already.

@wewhoareabouttodiesaluteyo9303 3 года назад

@@crazeekids9744 There is nothing wrong with informing people. What is wrong is YOU stopping us when you see that the system is unethical and are more worried about us NOT being transparent on these issues.

@amyclark959 3 года назад

Congratulations! You are smarter than I was at that age! My husband and I just started baby step 3 yesterday! I hope the best for you and your future.

@jimroscovius 2 года назад

@@wewhoareabouttodiesaluteyo9303 Why do women-haters troll this channel? My wife has been a great asset to our plans, which is why we have a paid-off house, cars paid for with cash, and a growing retirement plan.

@darkdeminsion 3 года назад

Take my word, do not use emergency fund to pay off debt. Due to the pandemic, I tweaked daves plan and upped my emergency fund from $1,000 to $8,000 and shortly after I was laid off. The piece of mind I have knowing that I don't have to worry about money and don't have to settle for the first offer I get is amazing. I can take my time in my job search and find something I actually want to do.

@rory644 3 года назад

The $1000 isn't your emergency fund, thats baby step three 3 - 6 months of expenses you're getting the steps confused

@darkdeminsion 3 года назад

@@rory644 I'm still on baby step 2

@MCgrease08 3 года назад

Sure. And once you have that new job you can unpause and throw your savings back on the debt. This lady has a stable job and steady income. She doesn't need to pause the baby steps the same way you did (wisely) due to your layoff.

@jay2004r 3 года назад

Yeah see I have the same mindset as you. I have one credit card that I want to pay off and I have more money in my emergency fund then the credit card but I don’t want to use all of it to pay it off for the same exact reason that you just stated in case it happens to me. I do have a steady income but just in case it happens I want to have that peace of mind.....

@BlueDauntless 4 месяца назад

@@darkdeminsionThen you’re working Dark’s plan. Not the Ramsey plan. Which is fine, but she called Ramsey not you.

@tonia2483 3 года назад

I'm not gonna lie I'm doing 2 and 3 at the same time because I dont trust the world right now.

@PI1901 3 года назад

me too

@Mmolesy 3 года назад

I'm in Australia, it's unheard of to borrow for everything. I've never owned a credit card. Never borrowed for a car. Only ever borrowed for a house and that is just over halfway paid off. Kids want college? Work to pay for it yourself kid. Often they'll appreciate it more.

@sapbison Месяц назад

I think they can pay the monthly expense but the upfront fee i dont think so. how do you have that worked out?

@maretesa 3 года назад

Good morning everyone. Happy new year! 🥳 Let’s get at this financial journey! 👏🙏

@NaturalElicia 3 года назад

Morning! Same to you!

@SignorNessuno65 3 года назад

Record unemployment?! What am I doing wrong? Just got back from Target picking up some trivial items. Cars and SUV's filling the parking lot as more roll in! And most, if not all, brand new! A line at the in-store Starbucks, people buying $6 cups of coffee! People roaming the aisles, staring at their $600 iPhones! And here I am walking the two miles to the store, only able to carry home what I can fit in my backpack. Happy to say I have no debt, I'm still employed and receiving a very good salary, and I have mucho savings in the bank. Sometimes I think I should just live it up with no regard for the future, like everyone else seems to be doing. How are they able to live that way? Please tell me the secret!

@athenalovesdance 3 года назад

Those are probably all the ones collecting unemployment living on credit. You're doing a great job.

@dorlisastjean4072 3 года назад

You can live it up once in a while but trust me, these people are acting like rich people but have poor mindsets.

@mattt4183 3 года назад

I know the "gratification" of getting things paid off is important to recovering credit addicts, but the smallest first rule seems a little too rigid for this situation. 6K and 8K are very close and the credit cards are probably charging much higher interest.

@rvh77 3 года назад

Finally outta debt in November 2020. No credit cards. Decent emergency fund, even after Christmas shopping. Never going back!

@jamfamily1930 3 года назад

He said if it ain’t broke don’t fix it!!! I love it!!!

@IzzyMakesMusic 3 года назад

I personally paused baby step 2 to pile up a bigger emergency fund than $1k. Count your blessings if you still receive full pay during these lockdowns.

@michellerichardson3090 3 года назад

Yeah I skipped 2 when the quarantine happened. Just focused on saving more.

@clarifyingquestions 3 года назад

1. never have debt; 2. pay it off all but 1k; - the 1 000 is not meant to be safe it is meant to scare the sh*t out of you to clean up that debt now.

@RelaxAndSmokeMeth 3 года назад

Minimum 5k.

@michellerichardson3090 3 года назад

@@RelaxAndSmokeMeth that really depends on what your expenses are and how much your income is.

@michellerichardson3090 3 года назад

@@clarifyingquestions unfortunately with you needing credit history now to even get your lights turned on, that is really unavoidable

@JERRRY26 3 года назад

Dave, thank you for your years of wisdom that you are sharing. I am a 20 year old student and going to be a financial advisor. Your videos give me a lot of perspective and experience so far! Keep it up

@stevo4535 3 года назад

Get yourself a CFP designation and that will help a ton for you.

@1.5Koreans0.5American 3 года назад

Happy new year everyone!

@Bill-up9xw 3 года назад

Happy new years to you too Jade!

@Mo-bq8lz 3 года назад

Happy new year!

@TheCropCircleQueens 3 года назад

@@saulgoodman2018 You must be fun at parties

@mekhron 3 года назад

130k and 6k in savings? That is insane. But regarding the question: I wouldn’t use my emergency in any circumstances but emergency!

@natethepain 3 года назад

exactly, you never know when the generator will blow or if your car needs a quick $800 repair. I wouldn't want to put that money into paying off debt.

@thecatnextdoor12 3 года назад

Exactly my thought. I’d add more than $6,000 to my savings every month on that income.

@dorlisastjean4072 3 года назад

Then, she should have thought about that before moving in with someone she is not married to. Also, she makes 85k not 130K, which technically if she is not spending her money like crazy, she will be fine if she has to use her emergency fund to pay her debt.

@Dr.C_Stag 3 года назад

Math is hard. You know what else is hard? Playing house and not being legally married.

@drunclecookie216 3 года назад

my wife and I lived together for 4 years before we got married. our 13 year anniversary is coming up in 25 days. those 4 years we lived together I found out about a bunch of her bad habits and I made a choice of whether to break up with her or help her fix those bad habits. I would have never married someone without testing the waters first.

@A_massive_wog 3 года назад

@@drunclecookie216 That's a better way to do it. Most people move in together, have no plan, little commitment and just bumble along.

@nohandlebravo 3 года назад

@Ryan Cook, that’s why they have “dating”. You can get to know someone without playing house or sleeping with that person before marriage..

@drunclecookie216 3 года назад

@@nohandlebravo marriage is becoming outdated anyway. it's more like a religious formality these days. the only reason my wife and I got married is because my parents bribed us. we never wanted kids and never had any and we're still married 13 years later and been together 19 years. plus you don't learn everything about someone just by dating. and waiting until marriage to sleep with someone is just religious drivel

@BlueDauntless 4 месяца назад

@@drunclecookie216The divorce rate is higher for those who play house first.

@Idontknowhoiamanymore 3 года назад

I don’t even know why I still listen to these anymore. What’s wrong with these people

@aligncars10000 3 года назад

Same here. I almost think Dave hires people to call in and ask stupid questions.

@seaneric5753 3 года назад

I think it’s just that some of us are more educated in finance/planning or further along the Ramsey plan. Some of these people just found Dave is my thought.

@Idontknowhoiamanymore 3 года назад

@@seaneric5753 yeah I agree with you. However, it’s a little irksome for me when they don’t want to take Dave’s advice

@TheTurdballs420 3 года назад

It would be nice if Dave took taxes into account every now and then

@Khaltazar 3 года назад

@@TheTurdballs420 - Yeah, I always find it funny when someone says they make x a year and Dave says something along the lines of "So, after tax your net income is ..." where the person makes less money in a year than me, but Dave somehow expects them to net more monthly income than I do and I still owe tax at the end of the year. For example, if someone made $10,000 a year less than me, somehow Dave expects them to be bringing home $500 more a month than I do. I get that Tennessee doesn't have State Income Tax, but most other states do have quite a significant tax. I get taxed for state and local AND school district on top of that in addition to the required SS, Medicare, Federal, etc.

@Zaerki 3 года назад

She's like trying to argue but ask for advice, I don't get it.

@elcheekoful 3 года назад

That's a woman's mindset for ya.

@mxerb5912 3 года назад

Just like the commenters here saying he’s not right... then why do you watch?

@perotal 3 года назад

@@mxerb5912 because unlike sheeps people can still have opinions.

@mxerb5912 3 года назад

@@perotal 😂 anonymous RU-vid commenters

@SVaya2018 3 года назад

She’s doing “daveish”. Baby steps are not that hard. I don’t get why people can’t understand them. Just freakin follow the steps people...

@Daevon97 3 года назад

I liked the advice he gave to one caller more than this one. He said stop saving and pay your debt down to where savings can cover it. Pay your debt down to $6000 and then pay it all off. You’ll be without an emergency fund for a shorter time period.

@jay2004r 3 года назад

Hmm do u remember how long ago this call was ? I want to check it out

@980616 3 года назад

Thanks Dave. I’m debt free on 21st this month. Happy new year

@deadondave9251 3 года назад

I've been listening for only a couple of months and I must tell you .........I feel great already ! I've built up an emergency fund , paying off very small debt and putting more into what's left of my mortgage. I was on the right track , but really didn't know where I was going to end up , to be sure. Now , I'm sure.

@sportsfanatic239 3 года назад

2021 is gonna be amazing. Im gonna be debt free. Buy my house and start a business within the construction industry.

@JorgeRamirezFinance 3 года назад

Getting rid of debt is always the best strategy!

@JayTarsia25 3 года назад

Nah... I wouldn't drain the emergency savings account to pay debt because there might be a emergency.

@h-townsfinest4216 3 года назад

@@JayTarsia25 Exactly. That's what people seem to not get....

@dorlisastjean4072 3 года назад

Well she can use her emergency fund when it is an emergency and then, guess what? More interest on her debt. She can always rebuild her emergency fund if she is smart in her spending. You can't go backwards by focusing only on an emergency when you are in debt that can be paid off in a few months.

@h-townsfinest4216 3 года назад

@@dorlisastjean4072 If she has no emergency savings all in effort to pay off debt, then when she has an emergency, what is she going to do?, likely charge it, and get back into more debt which defeats the entire purpose. Eliminating debt should be a priority only after you have a solid foundation first( emergency savings).

@Sue-ec6un 3 года назад

We’ve been following your plan but.... I was making it work as CEO of family. Now he has figured it out on his own and it’s just great not having to worry about money anymore. 38 years married. What a wild ride life is! 😊

@wewhoareabouttodiesaluteyo9303 3 года назад

Most CEOs are idiots, do not enlighten yourself.

@ThinkBlueAZ 3 года назад

Dave wouldn’t have callers if people just followed the steps. People who don’t know or think they know better is what keeps his show going. He should be grateful for them.

@MastrSmoke 3 года назад

New Years Resolution.... Follow Daves Way!

@JamesJamersonIsAGod 3 года назад

The high credit card debt and “emergency savings” calls always bother me the most. I understand some of the other callers wanting to hold onto some cash even if it’s not Dave’s plan. But on these ones the logic is lost on me. You can always go BACK in CC debt if you’ve wiped out your “savings” to pay down a CC. Why do you want to pay 20% APR to leave the money in a different account? Just do it already! In a worst case scenario if you had to re-spend all of that money in 10 months you’ve at least avoided all of the interest payments and more than likely that’s not going to happen!

@2-old-Forthischet 3 года назад

$85K income with credit card debt? Simple, living above her means.

@jimroscovius 3 года назад

I don't get what's so hard for her to understand. Do it Dave's way or not.

@cryptoflippodcast 3 года назад

*If i was the caller i wouldn't do it...as we've seen life is unpredictable atm* I would get a side hustle to pay off the debt ❤️❤️🎉

@missmarymary6506 3 года назад

I completely agree!! Her job could be gone next month...6k. Savings shpyld be kept as savings...if things change financially will 1k savings cut it?

@Sue-ec6un 3 года назад

I would agree with you on that, especially since her living arrangement is unpredictable also. Ladies, save your “get out” money first. You’ll thank me later 😉

@ThatDoll25 3 года назад

I agree. She makes $85k a year. If she’s diligent about paying these off, she’ll have them both taken care of in

@pizzamagee6220 3 года назад

I think you are wrong. Get out of debt. She has had no indication that her job is on the line.

@mekhron 3 года назад

Maybe she already side hustling and a 85k is a total income. But still she definitely should be able to knock the debt out in just few months.

@ThisLifeUSA 3 года назад

Happy new year to all Ramsey tribe.

@kamgradsr7418 3 года назад

Dave probably disagrees with me. But I "wrote his book" before he became famous. My emergency fund is invested in AT&T, not some lousy savings account at the bank---better interest rate. And instead of an emergency fund for years, I just have a HELOC, just in case. And I do advocate for 1 credit card---THE ZERO INTEREST CARD. The caveat: pay off any thing that will charge you an interest first.

@LibertyFixxxer 3 года назад

She might have a spending problem if she can't pay off $9000 in 3 months with $85k income

@michellerichardson3090 3 года назад

That credit card is the only reason she has no other debt. Taking from Peter to give to Paul as my grandma would say

@LibertyFixxxer 3 года назад

@@michellerichardson3090 She is also playing house, and is living with a BF. God says you should get married to avoid living in sin.

@bres9977 3 года назад

Taxes. $85,000k gross is often $60000-$65000 net (take home). Plus you have bills.

@michellerichardson3090 3 года назад

@@LibertyFixxxer there really is no point of living with your significant other if you're not married. Some people have this idea living together saves them money but it doesn't. You may save on rent but now you're just taking that money and putting it on extra expenses that were created by having another person there. And if you break up, thats it, you're on your own and now have to figure out how to get yourself out of that situation

@ericeandco 3 года назад

We’re not seeing the whole financial picture.

@fufucaney 3 года назад

Just follow the Baby Steps guys, follow the recipe, don't skip, don't shortcut, don't change a thing, the plan works. Happy New Year!

@israelmondragon6195 3 года назад

I'm actually all over the place lol i have 2 debts that i refuse to pay off becuz it doesn't make since one is 1.5k the interest is only $1.80 and its a $350 payment the other one is a little over 3k but my payment is $144 a month with 0 interest so no benefit of paying it off early and I'm investing 1.6k a month and saving $400 a month to build a 8k emergency fund and once grass season starts again I'm going to 2x-3x my currents saving and investment but yes i agree with u with that people should follow the baby steps and not skip around especially if they are new and don't know how to mange money the only reason i don't follow the steps is becuz i have learned so much about finance that i have disciplined and know how to mange my money

@Miamiflow885 Год назад

when she said "were not married" Dave ok nice talking to you lol

@alienresearchlab 3 года назад

$1,000 is a 'rainy day fund'?! That is insane. What does $1,000 do for you? If you live in SoCal, $1,000 gets you nothing. That's a car repair, or a plumber or an electrician coming to your house. $10,000 minimum as an emergency fund is more like it and that's on the low end.

@jimhandler1129 3 года назад

It's just a start. Dave says a 3 to 6 month of expenses saved should your goal emergency fund

@jesusgutierrez9705 3 года назад

Happy new year future millionaires. Stay safe and god bless you.

@Sexy40baby1 3 года назад

Do your own plan. Keep the savings but don't save anymore. Put all extra money to debt

@blueshirttail 3 года назад

That guitar riff intro has blown out about ten of my speakers! Fire your audio engineer!!

@ElMachoNacho193 3 года назад

Blow one speaker shame on them, blow 10 speakers shame on you.

@whatmakesyourday 3 года назад

Buy better speakers.

@andrew1532 3 года назад

What are you doing to your speakers for them to blow? Buy some over $20

@blackworldtraveler3711 3 года назад

I see many of you still watch the videos.

@cocodakilla 3 года назад

I think to keep the emergency fund, then with the future paychecks, try and use most of it to pay off debt whilst saving a little bit. I cannot stick to Dave's way as even 2k isn't enough for big emergencies. Plus you won't be left burnt out.

@dayvidsdays5644 3 года назад

Happy New Year! For her, I think she set up a plan to use her emergency funds to pay off those credit cards since student loans are still on forbearance. It's not the most Dave Ramsey way, I'll admit that.

@andrewlev2011 3 года назад

FBC fund and their algorithm is the best, there is no point in arguing with this

@s.flanders 3 года назад

Let me argue with this.

@tiinaiiceey 3 года назад

1000k emergency fund is unrealistic. It needs to be more

@Essays4College 3 года назад

Dave is mathematically challenged if he would rather pay off the lowest debt rather than paying off the debt with the highest interest.

@jessicacarnes15 3 года назад

Human behavior. Its been proven people pay it off faster when they have those small "wins" paying things off earlier. The kind of people that end up in a mess of consumer debt need that dopemine hit of "paid off" to keep at it. If they cared about interests rate differences of 2% they wouldnt be in the mess.

@Essays4College 3 года назад

@@jessicacarnes15 finance is about numbers...not understanding that is what gets most people I to trouble in the first place.

@CaseyBurnsInvesting 3 года назад

It’ll be over soon, keep growing that income and staying the course with limiting spending.

@multistack1502 3 года назад

Even on New Years you are here to start off leeching off others.

@appleforever6664 3 года назад

Nooooooooo! Casey, be gone!

@appleforever6664 3 года назад

@@multistack1502 - No kidding and well said!

@TheRyanD 3 года назад

I appreciate the general philosophy, but sometimes the lack of nuance is bothersome. I know most people here have drank the Kool-Aid but I can’t help but just question what is the interest rate on the credit card debt (I’m sure it’s significantly higher than the student debt) also aren’t people that owe gov student loans currently not having to make payments with 0% Interest? Couldn’t she easily pay off the credit card debt without touching her emergency fund and then pay off the student loan debt that’s not accruing any interest at the moment? I certainly get the philosophy and tend to agree with the sentiment but I think in some of these cases the one size fits all plan works, but can end up costing you more money.

@alark8903 3 года назад

If people were thinking logically they wouldnt rack up credit card, car debt or general consumer (furniture, payday loans, etc). Debt to get investment properties or school is more tolerable but still risky. This is about racking up small wins and seeing results which will keep you sticking to the plan. Mathematically, you are correct ,but, all of people are terrible at math. Look at the U.S. average debt per person for proof. Unfortunately emotions overrule math for people.

@matthewgardner2144 3 года назад

Ken is so tiresome.

@mscoable 3 года назад

Has anyone noticed that they just repeat the same advice over and over again? lol

@Exciteddelirium1 3 года назад

Do these callers ACTUALLY follow the baby steps plan?

@insideoutsideupsidedown2218 3 года назад

Meh

@CarysCorner 3 года назад

Many callers and commenters think that they have come up with a new plan that Dave just hasn't thought of in 30 years...

@MR3DDev 3 года назад

I’d add one more baby step to the mix: create passive income that you can use today and not wait until you can retire to be wealthy on your investments

@insideoutsideupsidedown2218 3 года назад

If you are out of debt, your income is your investment. You invest time at your job and you get compensated for it. When you have that 15% of that money going into investments in a 401k, budget the rest of your money for other things.

@MR3DDev 3 года назад

@@insideoutsideupsidedown2218 unless you are in a job where you are already making over 200k or your day job gets you a huge raise every year, doing it that way will only make you wealthy by the time you get to cash your 401k, people should not be waiting that long to enjoy their wealth. That's why I think Dave should start encouraging people to figure some passive income that is usable right now.

@michellerichardson3090 3 года назад

An emergency fund is for EMERGENCIES not because you want to get rid of a debt faster. She owes more than her fund, it would be pointless

@dougprentice1363 3 года назад

Why do people say they are doing baby steps, when that aren't following the plan at all?

@michael43567 3 года назад

gotta get rid of the credit card debt first imo. Interest on that is nasty

@EllieofAzeroth 3 года назад

Totally agree. Who cares if the student loan is smaller? When you only have two debts and they're that small, the higher interest one makes more sense

@matthewwilliams9200 3 года назад

dave heard I started baby step 2&3 at the same and he subconsciously used the force to push that mute button.

@j0epark1 3 года назад

This call just doesn’t add up. She makes 85k per year and has 14k in total debt. With that money she’s making, she shouldn’t be carrying any balance on any credit cards. She should be able to pay off any balance every month. That’s why credit cards should be used only by financial smart people. A lot she’s not saying

@insideoutsideupsidedown2218 3 года назад

Financially smart people do not use credit cards...those of use that are everyday millionaires do not use credit cards.

@perotal 3 года назад

@@insideoutsideupsidedown2218 the vast majority of millionaires have a credit card and use it, it is not even close.

@j0epark1 3 года назад

@@insideoutsideupsidedown2218 well then you’re stupid. If credit cards are used correctly, they can be hugely beneficial. But to each their own.

@mariot6531 3 года назад

$85k isn’t what it used to be especially living in Seattle. The baby steps work for some others it does not. There isn’t a one size fits all when it comes to personal finance.

@michellerichardson3090 3 года назад

Shes using the credit cards to pay off other stuff or buy stuff. That's the only thing that makes sense.

@machapubg5779 3 года назад

Thanks i knew about Michael Hill! He was my professor in Oxford and told us FBC fund!

@InvestToLive 3 года назад

It seems like more of these calls are people who want to hear validation of their approach. You 100% do not need to follow the baby steps. Why call in to say you are following them AND then say you are doing a different version. Then right on script the caller will "re-explain" the math that was wrong the first time it was explained. It reminds me of the old call in radio shows where folks just wanted to hear themselves on the radio.

@ericeandco 3 года назад

Jobs can be lost on a dime. Pay off the student debt 1st as it is doable at this point. Student loans are not forgiven even in bankruptcy. Credit cards can be. Obviously she has more than these two debts she pays for. Keep what’s left after you pay the student loan in your savings. A roof over your head is a plus. Have to find a way to make a little more and spend a little less. Throw the extra on the credit card as soon as you have it. You can go online and pay it weekly.

@SignorNessuno65 3 года назад

I despise the phrase "quick question!"

@michaelleahy6848 3 года назад

In this time, removing all your liquid assets (and reducing your emergency fund) to not fully pay off a debt - wouldn't it be wiser to extend the repayment period one or two months further? Not having that extra buffer might mean having to take out more debt to deal with a $2000 repair or other event

@BuckI2Bdad 3 года назад

At least SHE was not using spouse to pay off HER debt

@insideoutsideupsidedown2218 3 года назад

They are not married. That person is not her spouse.

@millsathn 3 года назад

Keep the emergency fund ffs. Dave not living in the real world.

@michellerichardson3090 3 года назад

That's how I feel. Save the fund and pay the debt off with your pay check. Its going to take her longer but she'll still have that 6000 no matter what happens

@sharonfleshman6961 3 года назад

I think given the times a bigger emergency fund might be needed. She needs to look at how secure her job is now. How secure is the relationship? How many months is the $6000? If she has an unmarried SO, her risk is greater. Yes gazelle intense. Do it by the end March..

@ech4949 3 года назад

Did she bother reading the baby steps before calling? Question answered.

@brianafranklin8164 3 года назад

This is a stupid call....

@amandawithlov3908 3 года назад

It’s hard letting go of money saved

@DavidGeorgiaPersonalFinance 3 года назад

If it ain't broke don't fix it. Many people I talk to try to tell me during consults they feel they can tweak the plan to improve or make it easier for their situation. Not true. You want real results, you need real concerted effort without deviating from the program.

@jimhandler1129 3 года назад

If Dave has been recommending $1,000 to start an emergency fund for over 30 years, don't you think that amount should be adjusted for inflation? I realize it is just to start, but it doesn't seem to make sense, if it was the correct amount 30 years ago it has to be adjusted for inflation to make the sense today.

@chrisstaub5880 3 года назад

It was never meant to be all that much in the first place. Part of the reason for it being small is that it's supposed to make you feel a little uncomfortable, so that you are motivated to pay off your debt faster.

@jimhandler1129 3 года назад

@@chrisstaub5880 It just isn't equivalent. $1,000 30 years ago is equal to almost $2,000 today. so if he wants to keep his advice consistent, the starter emergency fund has to change. Can't argue with math.

@skibum6422 3 года назад

Ok Jim, up yours to 2k. It's a guideline mostly. He makes it small enough that most people can hit it without it taking to long. It gives you confidence to move onto the next step and attack it.

@AndrewPL5 3 года назад

I will never understand how someone can make that much and have debt. Saying that, her debt isn't even that bad. How is that not paid off...and now are you struggling to pay that off?! SHEESH! I survive on half that with a large and unfortunate car loan. Some people are beyond help.

@polyglotsjourney 3 года назад

No break even on January 1 😁

@zarekpirkola7095 3 года назад

Sustainable Professional Growth I’m thinking this has to be an old/re-listed video. I swear I watched it before.

@polyglotsjourney 3 года назад

@@zarekpirkola7095 haha, probably 😁 I guess they didn't work on first day of 2021 😂

@kevinmoore9524 6 месяцев назад

Thank You.

@AnnMitt 3 года назад

A low income family of four just received $2,400 from the government. Wonder how many will use the money to pay off debt.

@captainprice502 3 года назад

Guys! Just google: “FBC fund”! You will go nuts!

@abdulrawoof2347 3 года назад

Spammer everywhere

@jaebeablessings1005 3 года назад

He gone say No...

@Girz0r 3 года назад

Sounds like she's still using the cc, frequently.

@carloscastanyeda 2 года назад

Goodmorning JULIA!

@Nobody2day553 Год назад

Making 130 it would take 4-6 months to pay off 9k... not 4-6 weeks.

@greggpurviance7252 3 года назад

He also says if your job is not stable, 1000.00 may not be enough. First question to ask these days

@insideoutsideupsidedown2218 3 года назад

Correct. Time and time again Dave has said when you get an questionable job/ income situation stop the baby steps and pill up cash

@peter2166 3 года назад

What does it mean "you started baby steps two and three"? Thank you.

@carlossaavedra989 3 года назад

Bad advice on this one credit card debt should get paid off first the amount of intrest they charge is 3 times higher.

@oliround 3 года назад

Selective listening

@shola7987 3 года назад

He cut her off fast lol

@shibaanimegameedits2961 3 года назад

No touchy

@Saiyijon 3 года назад

Months down the road, the feeling of being debt free far outweighs any new car or fancy doodads.

@dewildeworld6766 3 года назад

1st.... Happy New year

@johndone8045 3 года назад

9k in 2 month is no way Tax and insurance knocked out a portion

@chriss7552 3 года назад

Hi guys. Happy New Year .

@raiden031 3 года назад

So what do you do if you are in baby step 2 and your furnace goes and you need to replace it in the middle of winter?

@perotal 3 года назад

You go into debt 😂

@michellerichardson3090 3 года назад

Idk the state you're in but in NJ you can call public service and they'll replace it and put you on a payment plan. Our water heater broke, we called them and they put us on a payment plan of 63 bucks a month for 3 years to pay it off. Bill was a little more expensive but way more affordable than coming up with almost 30000 at one time

@raiden031 3 года назад

@@michellerichardson3090 30k for that? Seems absurdly high. Anyways wouldn't that classify as going into debt which Dave is against? Edit: based on your payment plan sounds like you meant $3k

@wewhoareabouttodiesaluteyo9303 3 года назад

@@raiden031 Your original comment did not specify that you were worried about getting into debt. All you asked was what one should do to replace a furnace.

@raiden031 3 года назад

@@wewhoareabouttodiesaluteyo9303 it's a hypothetical showing how easy it is to go into debt while you're supposed to be getting out of debt.

@abark 3 года назад

Now is not the time to be clearing out emergency funds to pay off banks who will just get bailouts anyway-- YOU will not get a bailout. Now, this caller has no excuse for being in debt, but the answer is to just pay it off and start living within her means, not clear out her cash to potentially save a couple hundred in interest.

@StrongBodyandMind33 2 месяца назад

$1000 won’t do anything these days. That should be more like $5000 in 2024

@alexandru5369 3 года назад

13k in debt yet makes 85k herself? Yeah should pay that off within 2 months.

@philipw4849 3 года назад

So if I am hearing and reading everyone's comments she needs to change her behavior to pay this debt.

@mattcollins4550 3 года назад

Once again, Dave is still thinking like it is 30 years ago. $1000 in savings is not enough, even if just temporarily. Same for his advice of buying a $1000 car while getting out of debt. His numbers don't account for inflation. Maybe $3000 for an emergency fund and a $5000 used car would be more realistic numbers.

@MCgrease08 3 года назад

Dave has repeatedly explained why he recommends only $1k in the starter emergency fund. It's not supposed to be enough. It's supposed to make people uncomfortable. It's motivation using fear to spur people into getting serious. It's fine to disagree, but it has nothing to with inflation or Dave being old fashioned.

@mattcollins4550 3 года назад

That is absurd and irresponsible

@MCgrease08 3 года назад

@@mattcollins4550And yet it's a formula that's worked for literally millions of people.

@brockb3692 3 года назад

@@MCgrease08 Agreed, but what Matt is saying is that inflation has eroded the value of $1,000 such that it really should be increased. Dave was recommending $1,000 30 years ago, and $1,000 wasn't enough back then but the idea was to motivate behavior changes. But we've had 30 years of inflation since then such that the value Dave was recommending 30 years ago has HALF the buying power today that it did back then. Therefore, if we want to keep the plan constant, we need to adjust for inflation.

@Buggu3 3 года назад

She wants to be in debt!🙄

@miketheyunggod2534 7 месяцев назад

They are almost identical. For crying out loud. Enough Dave.

@bk_deltor9155 3 года назад

taking on baby step 2 and 3 at the same time, see she's not following it step by step she's trying to multitask. its step 2, then step 3. whatever she saved for step 3, throw it at the debt and finish 2. when the debt is paid restart step 3. Step 1: $1,000 emergency fund step 2: Pay all debt excluding the house using debt snowball step 3: save 3-6 months of expenses emergency fund step 4: invest 15% of your household income

@lacusgreen5556 3 года назад

Hello Everyone. I don't know how to start. I have 6 credit cards in the collection and 3 active credit cards. Is it okay to finish all active credit cards first or do the payment for both? By the way we are planning to have bank financing for housing loan. Thank you.

@RxMTB 3 года назад

If the debts are SO CLOSE in value, why wouldn't you pay the 20% interest one over the the 3-5% one first? That just seems like good math to me.

@jimhandler1129 3 года назад

This is something I don't agree with Dave on. He believes it builds momentum and confidence to tackle the other debts. For me, it is always about math and percentages, I have my own drive, will power and momentum. Math is math and Dave constantly contradicts himself when he answers others problems by saying "It's math." Then advises tackling debt smallest to largest regardless of the interest rate.

@chrisstaub5880 3 года назад

Dave has said before that if you have 2 debts of similar sizes, you should indeed swap their places in the snowball to place the higher-interest one first. He does acknowledge that you should use your brain and adjust the steps as needed for your situation.

@jimhandler1129 3 года назад

@@chrisstaub5880 Okay, I just never heard him stray from his Baby steps when people call in to question the interest rates on larger debts.