She’s absolutely correct $1000 isn’t enough for a family of five in an emergency fund even a starter emergency fund. It’s one part of the Ramsey plan that hasn’t been updated in decades probably should take a look at that.

I didn't go down to 1k in savings either. I figured out what amount I was comfortable going down to, calculated how much longer it was going to take me to pay off debts by maintaining that savings level, and calculated how much more interest it as going to cost me. Then I made an informed decision to keep the higher savings level, stay in debt a couple more months, and pay a few hundred bucks more in interest, in exchange for maintaining the bigger safety net. 100% would do it that way again.

She's going to do her own thing. Her husband is on long-term disability and she's talking about going into more debt to buy a bigger home. That's a woman who has not had that very real, grown-up discussion with herself about what it takes to be financially responsible. If she persists in the attitude she conveyed on this call, she and her family are going to struggle.

I am not in debt but if I were I would not be comfortable with only $1000.The magic number has always been 1000 but $1000 today is not the same as $1000 20 years ago.

I love that these ladies are taking turns and not interrupting one another. Both have so much to contribute and we enjoy hearing both point of views. Hey Rachel and Jade.👋🏼. You ladies look refreshed and beautiful.

She ain’t wanna hear none of what they was talkin bout. She was like “soooo what about mortgage”😂

The caller is absolutely right on this one

having kids if you're not in a financial situation to be able to support them is a terrible idea.

Caller & hubby seriously need to "back burner" having more kids until they get things turned around. INSANE to have more kids until you can afford them! IT'S NOT JUST THE SIZE OF THE HOUSE! Kids are "Black Holes" of expenses!

It's more of an emergency to have only a 1k than a car loan lol the caller is absolutely right

The $1000 should probably be updated to, "$1000 for every member of the household that you are responsible for." I think that's a little more reasonable if you think about it. Or something along that line.

Money is 100% a valid reason to not grow your family. If you cant afford kids, do not have them.

Keep the 4k Courtney! You don't have much debt so throwing 3k in addition is not doing much. You can pay off your car easily as well. They won't pay your medical expenses or emergencies for you :)

Have to say, Jade sounds like a salesperson on this call.

I got a 30yr mortgage. Gave extra payment as I could. Paid it off in 19yrs

A $1000 is not enough. Save the amount that makes you feel comfortable.

I think adding another baby while your husband is on half pay is a massively bad idea. Hospital bills, diapers, and all the other requirements of newborn babies add up to a lot of money, more than people think. And that's with a healthy mom and baby. It can get much worse if there are complications, God forbid.

If you’re not in a place to finically support a baby you shouldn’t have one. Probably an unpopular opinion.

Dave needs to UPDATE the starter emergency fund seriously! It's been the same for years, let's be real people - $1000 is nothing.

Nobody on this call is living in reality. Why do you want a bigger home if your only income provider is on a temporary disability. Encouraging her to reduce her emergency fun in this situation is bad. I wouldn’t discourage someone increasing their family but some planing is in order .

So, the husband has health issues, but they want a bigger house and other baby? 🤦‍♀️ and then they will call complaining about their financial situation, losing the house, having no savings bla bla bla

I would never advice someone to have more kids while they’re struggling. A child is a major liability. I would always recommend they fix finances first then they can have as many kids as they want.

Okay her husband is on disability and she wants more kids and a bigger house??? And she doesn’t work lol keep dreaming

I was uncomfortable with the baby steps too. So I saved the 3-6 months emergency fund first. I would be debt free now, but I had been layed off right before I found Dave Ramsey and ran through my saving in 2 1/2 months. It's hard to give up the little you do have even after 1000 emergency fund when you have job insecurity.

This is not about an emergency fund it’s about her justifying taking on about 700 a month more buying a new house even if he is working full time again there heading for house poor don’t do it people 🛑✋

The moderators are very strict about an emergency fund until expending the family and having a baby is added to the equation. Yes, personal decision but the taxpayers are left to clean up a mess if the 'personal decision'' doesn't work out as dreamed.

The caller is right here... 1000 might be ok if you're a single person still on mom and dad's health insurance, but it's NOTHING if you have others depending on you. Dave will never change his mind about it though.

Pretty bad advice right here lol. 1000 for an emergency fund doesn't cut it. Also no don't have another baby if you can't afford.

People have to stop taking the baby steps so seriously. The baby steps are just a guide to keep you financially disciplined and to get you in the habit of saving money and working toward your goals. it’s okay if you have more than 1K stashed away for emergency funds.

im a huge fan of the baby steps and everything Dave Ramsey, but seriously with how expensive gas, eggs, bread and pretty much everything, $1000 its not even half of a started emergency fund these days.

Money should DEFINITELY be a thing that slows you down from growing your family. Who is going to pay for your kids? Dave and his family tells everybody has kids and then whines about the taxes he pays that pay for it. Can’t have it both ways.

People feel uncomfortable with the 1k E fund. That’s the point. You should feel uncomfortable if you’re broke.

My personal opinion on the $1000 emergency fund is to get a person to behaviorly tackle debt with an intensity. $1000 isn't that much it just kicks you into gear

are we allowed to tell ourselves that maybe having another baby is not the most responsible thing right now?

Cutting through the fog... Total household debt $13K (car) plus $146K (home) total $160K. Income issues but even of a good day $70K/year. The question: can we buy a bigger home? The answer: no

If you don’t wanna do the baby steps, lady, then why did you call in?😂

The 1000 IS TEMPORARY people! It’s about the whole program/process. Don’t get hung up on the one step

70K income isn't much to upgrade to larger home in a lot of locations. Maybe she needs to get some income.

Babies don't need much space. My daughter had half a bedroom sharing with my office space in a 2 bedroom apartment. We lived simply, knocked out our debts, saved and upgraded a year later.

If they go to $1K they’re going straight into debt at the first emergency

The husband can watch the kids while he receives 50% income and the wife can work to use the additional income to pay off all the debt.

Husband makes $70k in Colorado, add more debt, shrink savings and thats a hold plan? Thats absolutely insane and is putting this family in great risk. Just hold off, pay the debt, tell the husband to get more income and then try it

Thank you for sharing your experience.

Single income with kids and the working spouse has health issues, idk why they felt the need to fight her over having a larger than normal emergency fund during the debt pay down stage. The only problem here is that they’re already in a house worth 4.5x their annual income. Upgrading anymore would put an outsized portion of their net worth into a house.

The first thing Dave would have asked is the nature of medical issue in order to give advice on what to do. I'm sorry, these stand in hosts are just way too inexperienced in life to do any justice for callers.

The smoke might not clear on the husband's medical issue. You don't even know what it is!

People think they need more space when reality they just need less stuff

If you look at their facial expressions and body language you can tell that they both secretly agree with her on the 1k not being enough.

Sounded more like she's in storm mode at the moment. I'm just one of the internet people, but until the husband gets back to work, stockpile that cash. But once the first steady paycheck comes in, it's game on.

If she doesn't feel comfortable with only 1k, then so what. It's call personal finance for a reason. SO what if most people don't have 1k. That have nothing to do with her

I think a feasible modification to the emergency fund could be the following: Single/married and no kids = $1K Single/married and w/kids = $1K and 500 extra per kid.

Why on God's green earth are so many people (mostly women) in such a rush to start a family and have children especially when they're broke, then complain about it? It's beyond me why people put themselves and their children into such a stressful situation...

1,000 in 2023 is more like 100 bucks.

She should wait on the baby till she has completed the baby steps

Nice that you were willing to backtrack at the end.

The thing about having a smaller emergency fund is that it limits your spending at a time when you are the most vulnerable or under stress which is also when you would are the most likely to choose costly solutions like staying in a hotel for a week in case of emergency as she mentions. You would find another way cause you have to. And then you also have your monthly income. It isn't just a practical thing, it is about adopting the right mindset, being all-in to reducing debt. Which she is not because she is thinking about adding to it for a bigger house with small children... It's a deeper issue actually.

Your mortgage loan should never be more than 2x your annual household income. If husband makes $70k, you should not borrow more than $140k.

Family is the excuse. She just feels entitled to a bigger house to show off to her more attractive friends.

70k single income for a family of five already and she wants to add another child. This isn't a baby step problem this is a bad planning problem.

She got baby rabbies and of course she needs a bigger house. Of course she doesn't work. Ramsey should immediately say "Do you wanna work on the weekends" to the stay at home moms silence.. Husband gets hurt and of course she doesn't roll up her sleeves and pitch in.

$1000 is not enough emergency fund

Sorry, not sorry but Jade said a whole lot of nothing! 4k in savings with 1/2 an income and telling her to go ahead and pay 3k towards debt and leaving them with 1k in savings is irresponsible. No other to explain that. I think the wife needs to get a job outside or remote(from home) and help supplement the loss of income they’re experiencing. An extra few thousand minus child care would really help them

Sometimes I find it frustrating how they just repeat the same approach without any flexibility. One way approach can't and wouldn't work for everyone, the main thing is the principle which is abiding debt, and if already in debt being diligent to pay it off and live below your means.

Lol her EXCUSES keep her right where she is!! Lol lol!!

I agree with the caller. 1000 is way too low as emergency money they didn’t really seem to get that. She should keep that 4000 as emergency and throw the rest of the income at the car and pay that off if they were to have an emergency that cost more than 1000, that could potentially put them in debt. I never understood the thousand dollar emergency fund they propose.

her husband does not make enough money to afford a bigger house, more kids, and take care of her...and they have other debt shes delusional

How are they going to crush a car loan and a new mortgage if her husband can't work and there's no additional income ? 🙃

Some of y'all complaining about the 1,000 probably don't even have $1,000+ in your savings account.

This was a call that Dave needed to take. The ladies were way to nice to her. The lady is gonna force getting a bigger house when it's not the right time financially to do it.

As soon as Dave retires and is outside of the business with minimal influence, I'm sure that's when the next leadership team will raise the $1k to at least $2k. You get the sense that everyone except Dave knows that step is no longer valid.

1000 is NOT enough!!

This lady is not serious about getting out of debt. When people call in, you can feel it in their voice. I HAVE HAD IT. I am not hearing this intensity. Like a gazelle wondering mindlessly in the tundra waiting for the cheetah to show up.

Perfect advice. Nice to have, not need to have.

Let’s just be honest here. The 25% of your take home pay on a 15 year mortgage is just ridiculous.

Worry about more space after you get your debt paid off. We had two kids in a small house, and we survived. We also both worked. Quit whining and get it done!!

Why do people want kids they can’t afford!

Why would you grow your family and then try to become financially stable. Shouldn’t it be the other way around?

Holy cow. 300k for a 2 bed/1 bath house. Crazy expensive area, especially for only 70k household income

Isn't the 1k just supposed to get you over road blocks? I always figured it was supposed to be small because it lit a fire under you to get out of debt and get your 6- 12 month saved. 1k won't replace an income, and it isn't supposed to.

Im totally going to agree with the caller here. i get Ramsey is trying to put pressure on you so you pay off your debt. But the issue i have is there one size fits all plan. Its trash. Its a good starting point, but you need to be considerate to the needs of your caller. If they actually give good reasons other than "i don't think its enough," You should reply with "you're right. what do you think is enough?" And go from there. Talk them down a little, sure. But the caller has already discussed health issues & job situations. They are on shaky ground. You don't blow away your savings when you don't have a solid foundation. That's how you go back into debt. If i were them i would ignore the 1k thing until employment & health are stabilized. Then, dump the money on debt. Its only going to affect things for a couple of months and you'll have the peace of mind. For the record i completely understand why Ramsey picks 1k. Its not just that most Americans don't have it handy. Its making you feel uncomfortable so you act. Hes attempting to teach good behavior. Also of your bills are 5k a month you need 30k for an emergency fund. Which would take a long time and you should be paying your bills instead. So its a compromise. Get your bills paid amd maybe that 5k turns to 2.5k. Thats a whole lot less needed for an emergency fund. But i completely reject you cannot be disciplined with out his plan. If you can not be disciplined your never going to act no matter the plan.

In this case I side with the caller on wanting to keep the 4k. Long ago I was a SAHM and there is a fear about losing/reducing that one income. The small house is hard but not the end of the world.

How about the $1000 emergency in 2050, What kind of emergency will that cover?

Here is my beef 🥩! Stay at home moms should be on the phone with the husband because he makes the money 💰

Sounds like rather than a bigger house these people need to have a garage sale or make a drop off at the local thrift store. In my experience "need more room" really means "we have too much stuff and no where left to put it".

Just because other ppl don’t have $400 for an emergency, doesn’t mean you that you have to keep only $1k. She keeps saying trust the plan. Please don’t! Do not trust the plan - no one else is coming to pay for the emergency if it’s more than &1k

A 15 year mortgage on the price of houses these days would likely be a pretty pricey monthly payment. I'd think taking out a 30 year would be better...you can always pay extra on your mortgage, but if you lose your job or have an emergency, you can just pay the minimum again.

The $1000 is a starter emergency fund. It’s fine to get a larger fund in place but recognize that it will slow you down. A slow down means you may lose momentum. The baby steps work, period.

Didn't go down to "1k", I am listening from South Africa , so I had to use my interpretation . My formula is 1 month a head on living expenses , and enough to cover an emergency.

It has become evident that Americans have a real fascination with cars and obviously are okay with going into tens of thousands of dollars in debt for a car. Is it me, or are cars really expensive in USA? As a kiwi, I find the amount spent on a car so exorbitant, it’s borderline gross

Get that bread get that head and leave✌🏾🏃‍♂️

I love Jade

I can not watch this new woman almost makes you want to completely quit watching Dave Ramsey personalities altogether she's not adding anything up and asking her how much is the price of the new house you're looking for she's just spitting off stuff she remembers from whatever Dave ramsey's course taught her makes no sense she's not given the caller any type of solid information

I don’t get why people want more and more kids. Literally why. Your house isn’t big enough. You’re in debt. Your savings is small. Your husband isn’t working. Yet you want to expand your family. Look at the bigger picture, people.

TRUST THE PROCESS! It works

Dont listen to Ramsey. Keep more then 1k in the bank

Great explanations on that situation

Jade is so freaking beautiful and I love the way she has her hair in this video.

Jade totally matches Dave's Energy

lady is keeping the $4k, selling the house, using the equity to pay the car and buying a $500k house

Shoot, I have no mortgage or car pymt. But I have way more than $1000 inan emergency fund