I've been following Dave Ramsey's philosophy siince 2001. Been debt free since 2004. I learned to live on half of what I make and invest a good part of the rest. I am retired now at 70 years old and still debt free. I am remodeling my house and enjoying life. I vacation where I want and eat what I want, just enjoying life. Thanks Dave.
@@lukebancroft9326 In the very beginning I was listening to the Dave Ramsey show on conservative radio. I was only making $8.50 an hour and it seemed like it would be impossible to save $1000. I had just bought into vending business as my side hussle. I maxed out 6 credit cards and was paying it back a quarter at a time. It was the hardest thing I ever did. Actually believing that I could do it was the hardest thing. The second hardest thing was adjusting my life style to live on half of what I made. I drove a 98 Saturn wagon until 2015. When I finally traded it, it had 245K miles on it. I still didn't buy a new car. Paid cash for it and still driving it. I hope this bit of info helps you succeed with your journey.
That’s amazing. You should be proud of yourself. There are people who don’t have the proper discipline for credit cards and that’s ok . However there are many that can and that’s great too
George is so humble and relatable for the average American. It's so refreshing how passionate and content he is about keeping the course and doing the right thing by being successful in the most average, standard way.
Well he has a solid point, the amount of people that would make it by investing and such is low and it requires a lot of luck, knowledge, confidence, perseverance and probably more characteristics that 90% of people don't have, so his way is more correct in the sense that most people who try it would succeed, but the fact that he's content with his current finances is a good thing, it means that he's happier than someone who's richer and upset because he wants more and feels like he's missing out FOMO
I work for a cash positive company. No debt. All real estate is paid for. It was so amazing to see the benefits of this for the entire company during COVID. I wish more people could have the peace of mind knowing their employment isn’t solely contingent on the stock market.
I work for a company where whenever they're getting ready to buy land/construct the new building, they write a check. One example a few years ago was a 35 million dollar check, so if it failed, then nobody is owed
I was worried by the title that this was going to be a Ramsey bash but was pleased to be introduced to the three of you. My children have been raised to be debt free and we cash-flowed our daughter’s college education. I wish they would reintroduce home economics in high school and require “financial peace” as a graduation requirement. Thank you for the enjoyable conversation.
8:17 Where George gets this wrong is he compares the average credit card user (Dave does too) with people that have never carried a balance. If you studied just the brain activity of the people who never carry a balance, I'm sure you'll find they don't care at all about debit or credit. Because they always think it's their money they are spending, not someone else's They're never thinking I'll buy this today and can pay it off in 3 months. I completely agree that the "average" CC user will spend more. But comparing spending habits between someone who pays it off every month with the "average" is nonsense. I'm sure George doesn't understand this at all because he had terrible debt and thinks everyone thinks the same.
Exactly they are so focused on this ONE stupid study. Does this work for a lot of people yes. However if you have the mentality using your credit card like you would do with a debit card you will find that they are just mind savvy and people using cash. Let’s make this clear ONE study does not make this factual
@michaels3205 Since then, I actually read the whole study, and it's not credit vs. debit. It's credit vs. cash in your wallet. That even makes it more absurd to compare it to debit cards.
People like you are NOT Dave’s audience!!! You already have deep knowledge of what Dave and Ramsey personalities are preaching. As smart as you are, can’t you see this ?
George is a great speaker and presenter but ultimately he is one of Dave’s puppets because Dave is looking to retire soonish and he needs personalities to carry the brand forward…and Dave signs his paycheck. Tons of people have built tremendous wealth using debt. Dave has built his wealth because he has a great business that generates significant cash flow over a long period of time.
This is true. When Dave says the greatest wealth building tool is your income, he almost never mentions that if you have a ton of disposable cash flow from a high income you can invest and get rich.
@@jarvinator94nah these advises work on any income. I am a single mom and went from debt to over 650k networth in a few years with Dave s advises. You just have to go all in. I have seen it happen to many other people in our Ramsey Facebook group. It legit works.
9:48 Yes! There are more protections with a credit card vs debit card. Its more difficult to get your money back when the money was taken directly from your checking account!
Giving random bonuses as "thank you" to my employees makes me incredibly happy 😊 Gratitude on their faces is priceless! He is absolutely right when comes to Giving. More you give , more you receive in return 🙌
I called Dave Ramsey once, asked my question, answered one question from Dave and he immediately put me on hold and went on a long rant… I was HUMILIATED. This was 12+ yrs ago. NEVER AGAIN.
We did the "manual" underwriting. It was called a "Portfolio Loan" meaning it was kept in house and no plan to sell the loan so it didn't have to meet Fannie Mae / Freddy Mac lending requirements. Plenty of income, i.e. we were "Well Qualified Buyers", with a decent down payment. I can't remember 10-20% They are hard to find. Just pick up the phone and start dialing lenders and ask if they do Portfolio mortgage lending? Not Financial Advise ;)
1:04:20 Housing doubling in the past year is great for you... I don't understand why this is great, if you are not planning on selling the house or using it to gain credit towards another purchase, then doesn't an inflated value just amount to a larger amount x levy rate = greater taxes and escalating insurance premiums?? (Please understand that this in not meant to be jabbing at anything, but probably because I'm short-sighted on the benefit)
What about retirement accounts or brokerage accounts? I'd hate to have millions just sitting in checking or savings. But I agree otherwise...I prefer "liquid" net worth over total net worth to include hard assets or primary real estate.
George thanks for being so genuine it comes through when you speak…. I admire you and see how far you have come….and see you flying to the moon..continue being you😊
They do not get paid to sell funds. They don't promote any single funds at Ramsey. Active funds have a history of our performing index funds because that's HOW they work. You pay 1% of your earnings but the fund beats the index by 2-3% it's kind of a no brainer
Yes, unless you have a fully funded 6 months emergency fund, paying your 15% Gross income into retirement and your mortgage is well on its way to paid off. If not, sell the financed golf cart, clubs, your essential vehicle, your bicycle, skateboard, the dog...and maybe a kid.
What? Every small restaurant owner I worked for still owes me and many of us money. One didn't pay at all, just tips. One paid when he felt like paying. One didn't pay me for two years resulting in $0/$0 easily see in my social security statement. He went on to open second restaurant right into economic downturn which went bankrupt in two years. All applauded as great business owners taking risks that many don't care to take.
The weird thing about Dave Ramsey is if you apply to work there, even before hiring you, they will ask for access to your bank information and your spouses if you have one. THey will also want to do the interview over dinner....with your spouse. I noped the hell out of there. Ended up getting a job with another company paying 40k more too.
@@briana3544 They didn't want to run a credit check. They wanted me to print out detailed information about my finances. I work at Microsoft now, no one asked for my financials and no one asked to have my wife with me for my interview. It's weird and crosses waaaaay too many boundaries. Essentially, you have to buy into the Ramsay cult. I like my reward cards, I wouldn't ahve gotten hired anyways. I also leverage my wealth...again...they don't like that.
1:12:00 - I would agree, but Dave did not learn from the critique on 8% that came flooding in from the whole financial community. Is there a strong counter argument to disprove historical back checks and statistics on sequence of returns risks? 8% seems to largely considered dangerous and unrealistic as a safe withdrawal rate by the whole community of financial professionals.
@@Corpsecreate I think I finally figured out the two main motivations behind his position. 1) Dave really thinks that 4% +/- 1% SWRs are hope stealing and that the mathematical reality of them is preventing people from investing at all. 2) Dave is anti-debt by principle. Conservative SWRs are required due to sequence of returns risks. Sequence of returns risks are conventionally quelled with diversifying into bond heavy assets. Bonds are based on debt, and Dave avoids them on principle. If bonds are to be denied a place, then sequence of returns risk must be denied. Asset allocation must be diminished as only theory in the Ramsey camp. If that is the case, conservative safe withdrawal rates become hope stealing and irrelevant. I think this is how he got here. This came to me first when I was on Lane Sebring's show. I have since mentioned it elsewhere. To proclaim the 8% to even 10% is provably incompatible with reality. I would have hoped that the danger there in would help Dave restructure his position above. I have hope that Dave giving followers false hope that becomes either hope crushing or a financial hazard pressures Ramsey Solutions into pivoting on this dangerous recommendation.
I was a bit surprised they didn't directly talk about that 4% vs 8% controversy that you (HopeFF) and George were part of. That it didn't come up makes me think George must have told them it was off limits. It seems George isn't willing to stand behind his 4% advice after being smacked down on air by Ramsey. I'm doubtful he now agrees with Ramsey but he knows not to rock his employer's boat.
@@rossmacintosh5652 George did answer some questions directly on The Iced Coffee Hour podcast. Graham and Jack asked George some good questions about the controversy, and George's answers seemed to avoid firmly picking sides while also disregarding healthy arguments against 8% SWR. I would characterize that interaction as very political with good, bad, and ugly parts. I ran a poll. Some see George's answer embodies an unwillingness to change from 8% for Ramsey solutions. Others saw it as further straw-manning financial professionals with a poor light. Very few saw George's answer as helpful in clarifying the issue and the concern of danger. I came to this interview hoping that George would give further answers on the topic. I had hope that he had something more to say. I also hoped that he wouldn't call my intentions malicious again.
You can't convince me that it's safer to use a debit card online or at gas stations. I will not use a debit card. I pay my credit cards off, in full, 3 times a month. I use cash for most in-person transactions.
They still hold deposits with credit cards and one of the rental car companies now accepts debit cards. It might be Budget. You can confirm on Ramsey’s website.
George answers all of these questions in the book. You can still do all of these things with a debit card, just slightly different processes, that are not any worse or inconvenient
165k paid off in 26 months means roughly 7.3k monthly payments if interest is 5%. Even if you make 125k gross annually this would be quite tight and represent nearly 80% of take home going to living. I think it's pretty safe to say that for the majority of families this is not a realistic time line. The message is great but people should be focusing on cutting down their time by several years instead of these extreme outliers.
A lot couples can make that amount and they sacrificed temporarily for just over two years. That is definitely possible and since they put down 45%, a lot of their payments went right to the principle.
They’ve addressed this on multiple podcast that have interviewed George recently ….I want to say the iced coffee podcast that has George on addressed this recent video of Dave’s 8% withdrawal
@@saulmarquez8989 Correct. George was asked about the 8% controversy point blank on The Iced Coffee Hour Podcast. IMO, George's answer was politically structured to neither disagree with Dave nor address the concerns behind 8% logically. George at least was able to recognize elements of arguments against the 8% SWR by name. I think that means the logic has at least reached the personalities and they can be truly aware of how dangerous an 8% SWR recommendation is. George also called my intentions malicious in that interview, and I am seeking mutual forgiveness so potential future defamation of myself is not continued. I take the accusation of malice very seriously when it is on such a popular podcast.
If everyone actually gets 12% per year you could definitely take 8 percent but nobody just owns voo or sp 500 to get that they usually have bonds and other funds that don't get that. Most people only get 8 percent if they are lucky. So 4 percent rule is good.
@@extremecarpetcleaning-wvwi86s&p500 doesn't return 12% every year. That's an average. That's why you can't withdraw 8% or you could go broke when there is a bad year in the market.
Hey, does George understand what you sign when you rent space for a business...a lease...and no one is going to lease to someone without credit, or you can pay in cash for the length of the lease...but don't borrow that $$ No guys, the issue with Dave is that he talks averages, which are basically irrelevant, and never talks about sequence of returns. Dave is the guy who's 6ft tall but drowns in the river that's an average of 5 ft deep.
I don't know these guys, just popped in to see what george is up to. So who's house are they sitting in? George is talking eschewing granite counter tops and indicates the guy to the right of him is a "financial minimalist" ???? Meanwhile they're sitting on a giant, presumably expensive cushy sofa with a backdrop of wall-to-wall, floor-to-ceiling windows .... That's fine if he can afford it without credit but it is hardly "minimalism"
The one thing I don't like is how he reacts about the mutual fund vs index fund. Anyone as money tuned in as we are knows exactly what the fees are. And it saddens me that the partnership with Smartvestor pros and the financial gains of them recommending them is still more important to them. The studies show that Financial pros rarely out perform the S&P500. It doesn't say that it's worth paying financial advisors because many out perform the market by even 1%. We've been debt free since 2015 thanks to Dave and his team, but you can tell George's speech pattern changed slightly during that small portion of the convo. In my opinion, It makes him feel uncomfortable talking about it. Just my opinion. Still tons of love for George, Dave and all the personalities. Fun interview. #indexfundandchill
Yes totally shut down and was embarrassed. He can’t act like an expert in every category and then all of a sudden I don’t know anything about investments and just let the pro do it for me and he will beat the market for me. All of us including him know better. Money talks and he is being paid for his terrible response and he knows it.
Always amazing information, I am about 2 years away from the mortgage being paid off and then it's all into investing and living my best life. Within the next 5-6 years retire and just do whatever I want!
Nobody talks about the expenses with a 401(k) versus just doing your own retirement funding. I am like 35% or 40% total in funds with expense ratios of .4% the other two funds have expense ratios below .06%, yet my total expenses were .76% of my portfolio! Someone explain that!
I doubt that the brain of the person who pays their cards in full every billing cycle lights up with dopamine the same way as someone who swipes and doesn’t know when he will pay his card. Not a convincing argument in my opinion. Especially for the financially literate people, $200-300 sign up bonus plus 12-18 months interest free is basically free money.
It’s weird that having no credit debt makes an indeterminable credit score especially with how they calculate the score. Debt utilization is a large part of your score. Having no debt means you have 0% utilization which should give you max points for that category.
Studies are great for overall trends and I get on average a credit caffeine might make one spend more bit he seems to say it's impossible for someone to genuinely maintain the same habits which just isn't true. With yhe right mindset someone can use CCs properly and have no changes to spending
He's just parroting Dave Ramsey's stated beliefs, for obvious reasons, probably. I've used ccs for decades,but make sure to pay them off each month. (Why not get the 2% reward off as an automatic credit? Makes no sense not to!)
Always loved your content, but can I politely ask a question? I do understand that the purpose of a title is to attract clicks, but I also think that, by definition, it should summarise what the actual content of the video is... will there ever be a point where you guys (content creators are all in the same boat 😊) will decide that "ok, this thing of putting a bull#@it title that does NOT align to the actual content has gone a bit too far"? Again, I am saying this with all the possible respect and politeness 😊
I love it, so it is so bad to buy late, take credit etc, but it’s okay to throw money out by having an actively managed fund, which cost sooooo much more on the amounts that George have… -.-
Credit cards are fine if you pay off the balance each month. But some people don't have the financial discipline, particularly if they're making less than $75K a year.
Using a credit card releases the brakes on spending, even accelerates it. If you had a $100 in your pocket, you feel the sting of spending it. That's not the case with a credit card. It feels like you are spending other people's money.
@@Newtrail100 Not everyone thinks that way. Once it’s out of the ATM it’s spent in my mind. When I use credit I definitely feel the pinch more because I see the balance daily.
Brilliant analogies because SLOW, STEADY, and SIMPLE is not only PRUDENT but it wins the race. Nobody needs to race from one point to another, and they waste more opportunity and money than necessary.
Step 1 Get a good enough paid job, preferable several or with overtime options, where have no student loan. Step 2 Get a partner that have step 1. Assume avoid getting kids until much later. Step 3 Get a loan together to buy an affordable house where the job and house are the main security. Step 4 Live cheap together until no house mortgage. Assume cheap car or other ways to move around. Step 5 Do something that makes you a millionaire. Like writing a book telling how lucky you have been and do good paid sessions. So yet another BS adviser.
I enjoy having a paid off home myself, but I believe that you have had a guest on that thinks that he can always invest his money and get a better return than property can. I would rather have the piece of mind even though I don’t have immediate liquidity.
George, Andre, One philosophy that exists is …. A person is only going to earn a certain amount of income, dividend, royalties, etc etc in life or intake of money in life. So how much of that intake do you want to go “out” forever gone in the form of interest. Excellent content as always!!!
@@bradzeigler Yes I would. I want proof that they have been responsible paying bills on time. Credit score gives me the proof I need. My rental, my decision.
@@williamjackson4922 no, that just makes me wonder if they are too irresponsible to own and properly manage a credit card. I would not rent to them, and I’m not alone.
Renting an apartment isn't so much about trying to find the right person to give this limited amazing gift to (like selling a house to someone). Renting an apartment is more about avoiding getting involved with the wrong person who can cause huge amount of damages that you will be liable for some of no matter what, and they could literally have no income to garnish even if a court demands they pay for some of the damages.
Maybe somebody has the answer to this, but I've always had a problem with the baby steps to pay off the mortgage. Especially with today's home prices. If you need to buckle down and pay off a mortgage, depending on income of course, this could take years and years and years of your life while waiting to get to step 7 on more wealth building. Sure they are doing a 15% rule into retirement, but retirement is not wealth building for more near use (save for car, vacation, real estate, xmas). In other words, you will have a retirement fund, even a college fund for kids, and an emergency fund. But where is your normal savings accounts for various goals, brokerage, investing? If it's going to take someone 10 years to pay off a mortgage, they could have been building at least *some* portfolio that whole time, and now the opportunity cost is wasted. You took a decade dumping cash into a 3 or 4 or 5% loan balance instead of dumping that cash into the market giving you 8 or 10 or 12% or more for the same decade compounding over time. Sure, you would pay less on mortgage interest, so that factors in. But no matter how much cash you dump into your mortgage, your home is still worth the SAME amount. If you have $100,000 in the bank and a $100,000 balance left on the mortgage and the house is worth $300,000, then you have $300,000 in assets with $100k liquid. If you take the $100k cash and pay off the house, you still only have $300k in assets and no liquid cash! You just "bought equity" which pays a 0% dividend. Paying off the mortgage does not change how much it's worth, nor does it change how it appreciates over time. If your $300k house becomes $320k next year, it isn't because you paid down the balance. You just "invested" $100k into a 0% deal (or some small percent in interest saving). That $100k dump into equity could have cost you 2x had you put it in the market for a decade instead. At 8% annual compound for 10 years it would be $215,000, but at least you saved $20 or $30k interest? Obviously there is a "peace of mind" argument here, and that is fine. But are you ok with your peace of mind potentially costing you over $100k to get? There is peace of mind in doubling that $100k balance in the market too. The only people to shove all the cash they have at getting rid of mortgage payment are those who don't seem to know how much better those extra payments would be if invested instead. And heck, if you still want to pay off the balance at some point, you could do it with the investment profit and didn't even have to touch the original $100k cash. Your details will vary. Do the math!
If your on vacation and they take all the money from your debit card your screwed. Credit card money paid back immediately. I will never give up my credit card. I pay it off each month and don't pay interest. People need to change their mindset and I only use my debit card at ATM machine.
(No debt) …”is part of my values”. Or (hear me out) he works for a company that touts no debt. Cmon, guys. Don’t let the cow convince you milk is the best beverage.
Doesn't it mean also that if American dollar will increase its value then you can get more materials which can be cheaper or u can manufacture with lower cost because ur money has higher value? So if u have lower cost, then you can lower the price of the product making it easier to market abroad? Im not an expert but I think it is more logical to have lesser debt for a country than having weaker dollar...so it will make sense to make a dollar the reserve once you have no debt at all. But hey, what do I know, I just want to view other persepective. I am with George that being debt free is an advantage.
wrong--medical debt is number one in consumer debt and student loans--no one cares bc our healthcare is broken, at least u can control student loans--DO NOT USE them, u can't with medical@@amireallythatgrumpy6508
It's fairly simple...your debit card is tied directly to your bank account and your credit card is not. Exposing your bank account multiple times per month is more risky than a credit card so it's about whether you care about that or not. If you're a responsible spender following a budget than you're not spending any money not on the budget so behavior shouldn't play a part in the conversation. You're either following the budget and therefore what form of payment doesn't matter or you're not following the budget and it doesn't matter either. The studies I've seen compare cards to cash not credit cards to debit cards but unfortunately it's 2024 so cash isn't always the option.
The only card I use is my Costco card. I pay it off every month, it's convenient, and I get hundreds back every February. There's just no downside to it.
All of these guys are amazing and great role models but the first statement that george became a networth millionaire without debt and how rare that was is not true. He litterally explained that he had student loan debt and then took out a mortgage. Those are debts. Still, he doesnt have debt now which is great! Good job George!
@dorotheaanderson9482 It makes sense to become a millionaire after paying off debts. Then, there are no liabilities to offset the assets. In fact, that is how most millionaires are made. The less debt you have, the less payments you have, and the faster you are able to accumulate wealth.
@@stevenbeach748 but it “can” take up to that long and I’m sure wells Fargo would take longer since they can’t even post most of my transactions for like a week. Lol but yeah I’m sure a lot of banks do better.
Funny… in Belgium, manual underwriting is the standard for mortgages. That credit score might just be the source of all evil and why consumer debt is skyrocketing so much in the US. I feel that the trend is coming to the EU too (you can finance just about anything these days), but there’s still some common sense here that you should only be in debt for houses and cars… However, we’re also slowly slipping down the slope of mounting consumer debt.
I lost all respect for Dave Ramsey recently when I heard his rant about ppl, who thought the $600 stimulus changed their lives, were morons and stupid. My husband almost died from Covid and was out of work for three months. I was out of work with Covid myself and then taking care of him. That stimulus money did change lives. It helped us more than you'd think $600 could. It saved us. Also, he fired a pregnant woman for having sex before marriage. He is out of touch with ppl. He has lived in his self-righteous holier than thou world so long he can not relate anymore.
Most lenders still do something very similar to manual underwriting. Checking income/debt rstio, verifying income, checking bank accounts. That’s the normal process of getting approved for a loan. It’s not as automated as most people would think.
When people should be investing in themselves in order to borrow money from…whole life policies that can be drawn from for personal loans…the payments u make back to ur own life insurance policy isn’t going towards making a bank wealthy…it’s investing into urself..
Is that Andei Jikh? Omg, i didn't recognize him, he's wearing glasses and looks like he gained weight from the New Years holiday feasts, LoL. Anyway, that's cool.
My bank told me that I would have to pay back the credit they gave me if they didn’t recover the money that was stolen from me by fraudulent use of my debit card.
A normal person not making hundreds of thousands cant afford it, a normal person can afford there 30yr and maybe a few hundred extra on top, but thats it,
Well a lot of things that the "Ramsey Clan" preaches isn't bad on the surface, especially when scripted; their call in show is full of horrible advice. It feels a lot like reality TV, similar to Gordon Ramsey or Simon Cowell. The lack of ability to nuance is unfortunate and separates their "financial expert" from a "fiduciary". Edit: Also, most of the time, actively managed funds underperform their respective index....
@@amireallythatgrumpy6508 I would imagine more than 1% can handle it. It is highly likely that I am not in the 1% and I understand there is nuance to finances. And to keep it basic, answer a few questions and that generates a specific response. - Close to a real example: caller, currently retired, has 170k debt left on house with 1 million in retirement account (claims remainder of net worth is home equity). - Asking for no additional context, The Ramsey Show suggests he write a check to pay off the mortgage now. - That is horrible advice. - What if the funds are in a traditional account? - That could be paying tax on 170k + typical living expenses. - And within the first year? (caller didn't specifically say when they retired) they are drawing down more than 17% of their account - wildly dangerous. - They also don't ask interest rate on mortgage, how much the caller needs to live on, can they work (p/t or f/t) for a couple years to pay it off then retire - nothing. - I can link the exact clip if you want it. Also, the 8% withdrawal rate is quite risky, about a 46% chance of working out for 30 years.
You're too smart to live in America. So why do you restrict yourself? Find somewhere better to live, because your country is just holding you back.@@miked412
That's not the definition of leverage George. Also, saying "factorial" instead of factor doesn't make sense. You shouldn't use words you dont understand.
No the argument is not overblown! Most people are not check the accounts daily because they don’t have the time and it’s no 60 days check again it’s 2! If you report debit card fraud after two business days, but less than 60 calendar days after receiving your account statement, you could be liable for up to $500. If you don't report the fraud within 60 calendar days of receiving your statement, you could be liable for any amount stolen from your account
My teens like to play VR for about an hour at a time... The goggles are heavy enough to hurt your neck and shoulders after a while. And they like the games... But still play more hours on PCs and Steamdeck than on VR.
Man, just wait til someone like George figures out that all of the principles from Ramsey’s philosophies about personal accountability and responsibility go hand in hand with the first-principles of absolute scarcity that comes from Bitcoin. I don’t expect Dave to ever figure it out, his ego is such that his early hot takes have cemented into an inability to see how it works. That’s fine, but I’ll choose to be hopeful that those who carry his torch after he’s not running the ship will be able to figure it out.
I don’t follow Dave Ramsay’s advice but I’m technically on baby step 6 at 22 lol. the only reason why I’m paying my house yearly is because my rate is 7.8% because I bought recently in these high rates.
