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.

I want to invest in tax advantaged accounts. I just saved up $100,000 this last quarter, and i plan to invest in the stock market and other other retirement accounts

Don't be afraid to be debt free... It is awesome....... You will build wealth so quickly when the debt is gone

I had 18k in cc debt. After binge listening to Dave for no reason at all, i decided to just take the money from savings and pay off that debt. Feels good.

I know the feeling. I was uneasy paying of my 20k car loan while having 25k in the bank. But once I did I can say that commiting to being debt free is one of the best life choices I have made

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too.

I went through this last November. It was the best decision I made!!! My income feels like its really mine for the first time 😂

You're used to living on $30k. Just pay off the stupid car.

I was homeless in 2003 bought a home in 2007 - paid off in 2014 bought a bigger home in 2017 - paying off this home in 20 days. That is my only debt.

I’d suggest paying it off over 2-3 months. Protect yourself by maintaining the savings or even building it up, and take care of debt. Nobody thinks about the fact you could lose your job tomorrow. You’d be debt free but be strapped and panicking

Being debt free is the best

I became debt free at 60!!! I finally feel rich( peace of mind)

I’m single and have no dependents. I earn just over $100k/yr. Paid my house off 2 years ago and drive a 2 year old car that is paid for. I own 1 rental property and have a small mortgage on that house that the rent income more than covers. Have no other debts. I’m investing close to $35k per year and not having a house or car payment is how I’m able to grow my wealth so quickly. I feel very blessed. I am borderline obsessed with investing.

I saw Rachel in a fb reel and started following her but I had no idea she was Ramsey’s daughter. I asked God to help me in my finances and I believe he led me to y’all.

$155k income and their debt is $20k? I’ve heard worse situations than this!

BS6 and husband was laid off in December, it scares me to think where we'd be if we had any debt besides our mortgage. Thank goodness we were aggressively paying it off up until the lay off!!

I’m 57 and became debt free in my early 40s. I’ve paid cash for everything since then and that includes houses and cars. While I live below my means and save, I found that the best incentive to save aggressively was when I had debt because there was a clear goal of reducing that quantum. It was always a no brainer to me to deal with debt first and save later for other things including retirement. Since becoming debt free, there has been less incentive to save hard and had I the same discipline that I had when younger, I could probably have retired by now.

I love how Dave has the humility to always repeat the same fundamental story that built the essentials to the baby steps despite having done it for 20 years.

I didn't drain my savings to get out of debt, but I also didn't call Dave Ramsey and ask him to bend the rules just for special lil ole me. I figured out what savings level I was comfortable going down to, crunched the numbers on how much more interest I was going to pay by not putting that money towards debt, and how much longer it was going to take me to get out of debt by doing so, and with that info I made an informed decision to take a couple extra months and spend a few hundred more in interest to maintain the safety net.

It's astonishing that people call in with the exact same questions every day.

Don’t be afraid to be debt free, if you don’t like it you can go back into debt! 😉

I would keep the savings account intact. With their income they should be able to put several thousand dollars a month into the car loan and pay it off in a relatively short period of time.

investing requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myself May I ask which investments are good?......

Wonder if this guy really called in and expected to be the exception to Dave’s plan?

Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.

$155k gross combined income. That should be around 9k/month net. Even with generous expenses, they should easily have a surplus of around $4k/month. If they don't have at least a 4k/surplus per month, they need to seriously examine their expenses.

This is my favorite duo! Father daughter vibes is good with these two!

I know the feeling. Having cash in the bank gives you a bigger sense of security. Where as you can pay off the debt, but then you have nothing in the bank in the off chance that something happens. Let’s say a medical bill comes up or you need to be outta work for a week or two, now you have no security in the bank for the “in case” factor...

He can always pay half and see how he feels about it afterwards. That way you’re super motivated to save much more and faster to replenish what you used as payment.

So many people are simply incapable of sacrificing momentary gratification.. Keeps SO MANY from truly leveling up

On 150K how is he not paying the debt faster there’s something going on

If only there was someone on this side of the pond like you, glad I found your show on KZfaq 😊

Breathe, Kevin, breathe, you're going to be fine!

When debt feels like security the banks own you. 🤷

As smart as this caller is he still needs help. Never be afraid to ask for help.

I can't help but go along with Dave Ramsey when he says "Better than I deserve." around 0:15. It always puts a smile on my face because everybody & their mother knows it's gonna happen.

Being debt free in these scary economic times gives you peace of mind. We skipped vacations etc. and paid off our home in 9 years 3 months. My expenses are utilities, internet, some streaming services, insurance, and property tax. Do I have a budget now? Of course and I track my spending. I just retired at 62 and now is the time to start enjoying time with my family, working out more, playing drums etc. Debt is your enemy, believe it!

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.

Debt is draining your future savings.

I do the same thing. But for me, I rather have a cushion in case things go bad than be debt free and have nothing. To each their own.

Don't worry too much about money. Your final destination is six feet down.

He could get a car that doesn't cost as much. Problem is most people are scared of what people think of the car they drive.

Buying a 60k car is stupid period.

Mr. Ramsey, great advice and by the way, I love that green jacket!!

I know the feeling. I have the same problem

Ive been sitting on the fence with something similiar. Was glad to hear this call!

What is the best way to profit from the current market, meanwhile I'm still undecided about investing $400k in my stock portfolio to get some dvidends and minimize risk

pay that loan off, it feels sooooooooo good knowing you no longer are paying monthly payments!!!!!!!

I’d rather pay off all my debt and have $0 than have a whole lot of debt with interest piling up on me and have money sitting in the bank.

I pay my CC off in full within 30 days of putting in on- never want to pay a penny in interest and be in debt I also get rewards and cash back on purchases (which is why I put it on the Credit Card!) I have savings and it feels great paying everything off and being debt free Less stress aswell

I like have a nice cash balance too - when I got my mortgage knocked down we did it a few months so we could keep our savings at a decent level (what felt decent for us). it took time, but taking decent bites out of the debt worked out nicely over a year. but then we had no other debt so it was easier... now - I"m building my cash savings faster having gotten rid of my mortgage and other debt...

"I got a question." Proceeds to tell a story before asking question.

How is $5k a 4-5 month emergency fund?! Especially with a 1 year old!

Currently doing the same thing. Obviously was nervous to start paying off the car. But then I decided that I could let the money keep sitting there doing nothing while I make big car payments, or pay off the car within a couple months and be done with it. Then all that money goes right back into my pocket.

Ok so guy said they're able to live on 30K a year. Add 20 as a very generous reserve due to the toddler or whatnot, they should be putting away 8K a month ie 100K in a year with a household income of 150K! There must be something that the guy's not telling or otherwise he'd have that car paid off in 2-3 months! Especially being "aggressive" about debt as he puts it.

I have 1600 left on my car. I get paid this week from my part time job and next week from my full time job, I know if I close my eyes I can clear it this month. But the thought of using 2 pay cheques to pay off something is bothering me LOL

They can pay it off in three months. He didn't need to call up. He don't good. I would not drain the bank account. He can easily be fired tomorrow.

Love this show .

I'm not going to lie i lost my way with my finances after I had kidney failure and had a transplant . I've had mental issues with depression and anxiety . I'm going to be debt free and wealthy . Thanks for realigning me with my goal of becoming wealthy

Pay off the $60k car, sell it, buy a $25k car with cash and bank the difference. Out of debt with savings to spare for your fully funded 3-6 month emergency fund.

What’s the interest rate? I’d be very unlikely to drain all the savings unless the interest rate is terrible, which I doubt it is. Just pay it off on the next few months of you really want to, or don’t bother if it’s an old pre rate increase manufacturers rate.

I ve always had a safety net. Was nervous about only having 1000 in emergency fund but thats just me.

I always love, how dave keeps it strictly numbers

Having debt is like investing in stocks with negative returns. If you pay off a debt with 20% interest you are gaining 20% on your investments

Don’t be afraid, your money is doing absolutely nothing for you sitting in a savings account. It’s actually losing value right now every day it’s sitting in your account. Keep a little for an emergency fund and get your car paid off. Car dept is going to cause you a lot more stress than a temporary stall in savings.

So many variables to unique financial situations.

This helped me with my decision of waiting 2 more years or clearing my car debt now. Thanks.

If he has good health insurance, as long as he can make the out of pocket max he is good. Right now we are focusing almost everything on paying off our mortgage since that's our only debt.

If I were making 150K a year, I would not have taken out the car loan at all. I do not understand why this guy is not paying off the car?

With a 1 yr old baby, this caller needs an emergency fund!

I’m glad I put my 2k in paying off both my 1k credit cards. Now the two credit cards will roll over to my personal loan. Since I make tips ima throw most of the tips in the loan too. Tbh I would love to have 2k in my savings but I know I need to get rid of the cards so I can start really making a difference to my loan then my car loan. Should be done in a year or 2. Thanks for the advice Dave

😂 Dave face after reading the numbers 😂😂😂😂😂😂 before that face he said did you graduate 😂😂😂😂😂 but then Dave gave him grace ❤

don't pay it all at once....take 1/2 now....then build a couple of months then pay another bigger chunk......will be in the same spot by year end......but DO NOT drain your savings.....

Understandable in these times.

Dave DROPPED THE BALL ON THIS ONE. The guy bought a $60k car, made 2-3x payments so there is equity in the car, sell the car take the equity and buy a cheaper car free and clear and never touch the $20k in savings. Sad Dave sad Ruff ruff woof woof

In a similar situation. I have $60K liquid and $37K in student loans. Need to pay it off but I keep waiting.

Question whats the best way to find someone to take over payment of a SUV. Dealer says if give it back it will show voluntary repo. I want to get 1,000 or 3,000 car or minivan.

Dave needs to understand that 120k is gross and not net take home pay

Saving on interest as well and freeing up 900-1100 dollars a month in payments

I feel like there is more to this story. He is able to pay the car off quickly with or without using the money he has in savings. Or he could even use half and pay the rest off agressively. So why doesn't he? Rachel is right. It is a mindset shift. Sounds like he hasn't made that shift yet.

Keeping $21k in debt like it’s a pet 🤣 that had me laughing out loud!

Maybe I missed it but I didn't hear Dave once ask the guy what interest rate he was paying on the car. I think any decision to pay it off should at least partly be informed by the rate of interest. If he is paying in the 2-4% range, arguably he should take whatever extra payments he might put into the car and invest it instead where he could be pulling between 5-10%. On the other hand, there is a psychological value to being debt-free that may be overridden by whatever benefit one might get from paying it off early.

He simply couldn't hear Rachel say "pay the car off."

Look over all your CC statements, pay special attention to the interest rates you are paying. That should cure your fears, you will pay any CC off in a hurry. Credit card interest is now about 24%, wow.

Buying a new car has to be one of the worst uses of money. It depreciates so fast, it'll be worth half what you paid for in a year. Get a used one with low miles on it. That's if you aren't already pretty wealthy. If your rich but whatever you want

TLDR: You got to where you are because of who you are and that part isn't going to change. Erase the debt and start your new life as soon as possible.

My car is 1.8% interest. I could pay it off now. Or keep it it in a 4% high yield account. Dave's advice would have me pay off the 1.8% loan. I'm not going to do that.

Just imagine the house they are going to buy😮

I guess they haven't had that enviable high income for very long? If I were they I wouldn't have that car loan very long!

I have enough in savings to pay off low and no-interest debt, but having the security of that money in the bank to cover my expenses should anything happen is a really good feeling. My loans aren’t high interest though, so I feel that makes a big difference. My payments are high, so a part of me wants to pay them off just to have that extra cash flow each month, however I know that all of that extra cash flow would just have to go to savings for like a year to build it back up to where it is now, which I feel might tempt me to spend more and not save enough. Whereas having a healthy savings account and high monthly debt payments (with low to no interest) actually gets me to spend less. Again, would be a different story if the debt were high interest.

Paying off my debt was the most exhilaratingly relieving thing I’ve ever done The weight of having multiple loans leaching on your income is a weight that’s feels so good to let go.

I pulled some money from my savings and pay off all my crrfit cards.... And stop using them...just use cash or my debit card.

So i would agree you could begin paying off debt if you have nothing and save your $1000 (although I'd save more than that). But i would not drain my savings down to that just to pay off a car debt. It will have no effect on wealth building other than increasing immediate risk of having to go into high interest debt. For instance my car just needed a $3k repair to keep it running safely. If i had only $1k, how am i going to cover that?

I paid off my car, by draining my savings now I'm saving on car payment and insurance combined about 600$ a month.

the issue is People, too often lie to themselves of what a “reliable car” is. A 10k 8year old Honda CRV is a reliable car.

Depends if the savings interest rate is more or less than the rate on the debt

I don't like debt but you must dip your toes in once in a while to keep your credit score up. I use my CC once in a while and pay in full just to keep my score up.

Dave is all over the place with his advice. One clip he preaches the importance of having an emergency safety net, and then here he tells the guy that there "probably" wont be an emergency? Like what??

Why would you pay off any debt with an interest rate that is lower than the rate of inflation? Debt passes the effects of inflation to the lender. They never mention the interest rate on the car loan.

21k in debt is nothing man. Just get organized, live below your means. Beans and rice, you can do it.