Yep

Oh ya she is

we all ( o.o)

Yep... her body language says it all

She keeps arguing with him. She should be a lawyer.

Yes it is

There comes a point when is business is starting to get successful, that you might think you can just instantly scale it up. It’s not that simple. You need to grow your wealth first, so you can weather the ups and downs and have enough savings to buy equip in cash

@@charlesg7926 And what happens when your business profit exceeds any other gain-seeking earnings available to you, but in order to sustain your business which is your primary source of income, you have to come up with money to make an asset purchase? If you don’t borrow to purchase that asset you have to close shop and if you close shop you can’t pay bills? I suppose your question will be how does someone not have savings and have this situation if their biz was so profitable before this emergency purchase… and the answer to that is poor money management of personal finances during the early period . I think there’s exceptions to never borrow money , one being renting a house to live and mortgage after down payment , one being paying to maintain a license you need for a job if you can’t cash afford it you charge that so you can keep your job… certain continuing education and for medical school students and medical residents it’s also a different game

Same. Our partner’s business was being supplemented by our W-2 work. We were paying his clients for the privilege to do work for them. Dumb. Separate your personal finances.

It helps taxes. It can be very helpful.

Always! Basic accounting 101

YES!!!

Yes it should

Exactly, that where she is getting it wrong for example if she didn't follow Dave Advice, she couldn't be even phoning Dave should teach people that at the beginning you are going to be stealing from your business by Funding your lifestyle (In the event that you don't have a lifestyle you are going to be finding your previous lifestyle **Debt**) in actual fact you were stealing from your business. So this lady should be aware that Now she is starting a business Now I hate Personal Debt more than anything because it can hold you back even if you have a lucrative business because there is a certain level of maturity that is required when you are running a business. This goes back to Ratios we mess up with Ratios that what get us in Trouble both personally and in Business.

Says no business person ever who has truck fever ever! 😅

Well, she is a woman.

Why is the spambot flipping us off?🤣

I just wanted her to shut up already.

Yeah she knows the answer before calling. So dumb.

People think they can outsmart a system. If you don't want to follow Daves system, fine. Go do your own thing.

>Why would you ever call Dave Ramsey asking him about your plan to go into debt? I consider it a hobby ( o.o)

They want validation for behavior he’s not going to validate. What kills me is when they start with “We’ve been listening to you and following your plan for years..”. Then they proceed to ask him about taking a car loan.

They think they can get him to change his mind

Yes. My parents are in a bind looking for a car now and prices are nuts.

It won't be like it is now forever

He legit said that lmao

I was thinking the same thing. She went on for two minutes talking about how great they're doing.

It's a pretty common problem in the entrepreneurial world. It's easy to imagine in retailing, but the principle works the same way in other industries. Suppose you're growing really fast and expect to sell five times as much next month as this month. You have to get the inventory, hire workers, rent space, etc. now, but you won't have the money from the sales until next month. With a really fast growing business, that just multiplies with each month and quarter. It's the best business problem to have, but it's still a problem.

@ Christopher Enge.... Agree

That's what I was thinking

He was very critical of her, for some strange reason

@@HisLove4You you’re not allowed to talk about vehicle prices to Dave. Apparently you can always find a car for under $10k

@@ZoomerAdvice He lives in 1988 in his head.

@@matthewgardner2144 I have a 1988 Astro Van that I'm willing to sell to the lady.

But it's a red herring - they can't afford the truck either way.

List price doesn’t mean sale price, there are a lot of dreamers out there right now “I’ll put my old pos up for a huge price and see what happens”

well those are reaching classic status so good condition originals are going up in price

Dave seems a little out of touch

Dave’s been living large for so long he doesn’t know what’s happening in the real world when it comes to cars.

@@crazyjlp7 Definitely a factor and this particular one is a pretty clean truck, which is getting harder to find. Crazy to think the dime a dozen trucks from when I was a kid are becoming classics now. K5 Blazer and squarebody values are skyrocketing too.

"PLEASE don't do this!" I have never heard Dave's voice go so high before. I'm used to his angry screams, not his desperate fearful ones. I hope they took his advice.

As someone who has done it twice, you are absolutely correct.

I sold my house and finished off my debt so I didn't really have to claw my way out. But I did grow up broke so I will do everything to avoid this mistake again

Yup, no different than all the people saying "why should I pay off my mortgage if I can earn more on the investment market?". I've been in debt only once and not even by that much (if you don't count the mortgage), I HATE DEBT, I don't care how you can leverage it, I just don't want it. I don't care if that extra vehicle can earn itself back three times over, I don't care if the money I spend extra on the mortgage can bring up even more, I just want my stuff to be mine.

Ain't no danger in a Ranger.

@@m.c.58 Ain't no stranger to the ranger. ( Bought an 03 xlt and loved it. )

@@m.c.58 Can buy a Tacoma cheaper!

I have a 91 ranger and loved that truck.

Get you a tacoma

You must be deaf

My guess is that they took the profits from the business as their salary and that's how they paid down so much debt so quickly. Nothing wrong with using your profit to pay off debt, but it might have been wiser to put 10% of profit aside toward growing the business. Then, they might have had the money to buy the van.

@@TeodorSpiridon Your revolution is over. Condolences. The bums lost. My advice is to do what your parents did; get a job, sir. The bums will always lose. Do you hear me? The bums will always lose.

What I'm trying to figure out is how they bring in that much profit (I assume that's after paying everyone, including themselves) yet the business has no cash reserves, no money to reinvest in itself.

@@aaronsacks470 Your revolution is over. Condolences. The bums lost. My advice is to do what your parents did; get a job, sir. The bums will always lose. Do you hear me? The bums will always lose.

​@@mattmiles9779 Classic

She’s mixing business funds with personal funds so she likely has no idea what the numbers actually were. But in commingling funds like that the profits just get spent in your personal money. If my theory is right (mostly going on how she was floating the emergency fund as the money to buy vehicle) then their profits are just going into their account and essentially the couples income as owners draw equivalent. None of how she spoke of the money of the business made it seem like it’s kept separate with proper books kept to even keep track of retained earnings for the business. If the tax man ever comes and it’s all mixed that’s gonna be a nightmare

He really has shown a ignorance in this area

@@vincentniedoliwka2092 I think he showed skepticism with what the caller said while also be open to being proven wrong. I certainly thought she must be mistaken. That part is besides the point that somehow they bring in all of this profit as a business yet have nothing set aside to reinvest.

It's also hitting different parts of the country worse than others. I'm in Dallas and our inflation is double what it is in most of the country. Not sure how this impacts car prices, though certainly it must somewhat.

@@BA-rt9dp Orlando here, they are adding $3-5k to MSRP off the bat. When all said and done, you’re paying $8-10k more than what it would usually cost. Dealerships know they can do it too.

Yeah, things are getting really bad and it's actually better to go into debt to buy things now because things are gonna get even worse.

I own my own business, my ignorance and lack of knowledge, plus first generation been self-employed, we did a bunch of mistakes. Finally I got an account that is helping me out, I had a mess around, almost $300k on debt including equipment, tools, cc, etc. I started the snowball 3yrs ago and I am just $50k to go. Is been a hard way, but never give up and always look for help and if you have questions don't be scare to ask. Good luck!!

@@mariorta5017 That is an issue I see with a lot of first timers. They buy the hype of leverage and borrow up to their eyeballs and have no idea how to handle that. And yes, a lot of them do go bust. The issue with debt is that when you don't get enough business, you are in the hole. There is a reason why it's hard to get an apartment or mortgage if you put self-employed on your application.

I'm glad to hear you had an "aha" moment. This happened to me years ago. I am so glad I made the changes I did.

Nah bro please stash a whole bunch of money I’m the business account. It gives you so much more power in different situations and makes growth sustainable. Also a separate business account is a must, so you can start look at the business as it’s own eco system

@@martylts It's easy to slip into lazy mode when things are going smooth. Can't take anything for granted these days. US gov't is only making things harder on entrepreneurs.

Bingo I tell lawn care people this all the time! I'm actually surprised people in remodeling/home repairs are still staying afloat with the prices of everything going up.

I did. Didn't buy the truck. 👍🏼

@@Clairebear617 please, provide follow up

Is it just me or does that emoji look more like '700'?

dave is wrong. what else is new. he can not adapt

The first time it has happened in HISTORY. When the supply chain comes back that will probably change

@@georgewagner7787 this was done by design. New cars were sitting on the shelves not being sold.

@@JohnDoe-gc1kt No John there's just to many people consuming finite resources.

@@andrewsmith8715 i disagree!! What happened to all the cars sitting on the shelves in 2019??

yeah. vans and trucks have in fact doubled in price

he acknowledges this later in the video

Yeah he’s wrong on what’s possible with cars pretty frequently. But that wasn’t going to change his answer becsuse she wanted to expand by borrowing for it. He’d have said the same thing if it was a $25K car.

LOL "go back down" yeah right

Same in the UK

Wow that's bad advice

That's bad advice. The way you do it, you do the basic with money you already have, not borrowed. Then you plan out your growth is smaller phases and once one brings in more money, you add the next, etc. Start small, grow it steadily and incrementally. If something happens and you don't have enough income for a month or two, you won't have late fees and banks foreclosing on you.

@@allenpriest8985 oh, I know. Their idea is that by owing money it will motivate you more. However , cant control every aspect in life and could end up similar to Kobe bryant(?) The ball player who him and daughter died unexpectedly in helicopter crash and ,unlike Kobe, leave family in desperate situation financially and grieving which is a bad combo for making mistakes

@@sblijheid @Allen Priest oh, I know. Their idea is that by owing money it will motivate you more. However , cant control every aspect in life and could end up similar to Kobe bryant(?) The ball player who him and daughter died unexpectedly in helicopter crash and ,unlike Kobe, leave family in desperate situation financially and grieving which is a bad combo for making mistakes

She was hoping Dave would say, "yeah, go ahead, you deserve it. It's just a little useless debt."

100% correct

I think she wanted to brag to the world about how well she was doing

Not that it matters but I'm the person who called and... We actually cancelled the deal and didn't buy the truck. Dave saying "you don't have any money" really struck a chord with me because we make good money but just because we make good money doesn't mean we can afford to buy certain things. Knocked me back a couple steps. But good ones 🙂

This is great advice, hope she reads it.

For sure. $140k net/year and they have NO money saved other than their personal emergency fund? Sounds like they need to slow way down.

@@MichaelAnderson-wk1no Your revolution is over. Condolences. The bums lost. My advice is to do what your parents did; get a job, sir. The bums will always lose. Do you hear me? The bums will always lose.

She's really sharp but is dead set on taking the easy way out instead of the financially safe/slow way