I bought my daughter a used Nissan when she turned 16. The car cost me $6,000 and I put another $1,500 into it buying new tires, changing the fluids, adding a backup camera, front and rear dash cameras and misc fixes. She has been driving the car trouble free for four years now. I see so many kids at her school driving around in new or luxury cars. The other students must have wealthy parents. We opened a Roth for my daughter in high school and she has been contributing to it monthly. She already has over $20,000 saved and has increased her contributions to $300 per month. She has a full scholarship in Biotech and will graduate with her Masters and zero debt.

I must say. Dave’s rice and beans recommendation when saving money actually helped me lose 25 lbs in the last 5 months of saving hard and paying off my debt.

Its quiet interesting how we reject the reality of our situation and expect to be able to observe it, control it and even change it. I used to be financially depressed until I read a book that made me realized that the secret to making a million is making better investments.

This is the Dave I missed. Tough and stern, but not overly harsh.

Dave’s calmness at the beginning scarred me…

Dave's so cute 😭 When he softly asked, "Is she working?" ;) so calmly I LOL'd. Right before I knew he was about to really lean into this situation and tell it like it is! ;) Love Dave & this crew so much!

Intellectually exploring and not emotionally engaged!! Words were deeper than a a knife 🔪

She ain't selling no cars 😅

Live like no one else, so later on, you can live like no one else. That advice is priceless. 💯

Wow thank goodness I've taught my son well. He's doing awsome at the age of 26.

&1,068 left! I got this!

When Dave asks someone how they're doing, I'd love for someone to respond with, "Focused and not finished" just to see their reaction.

2 car payments is awful. It definitely starts there.

Where are the $5000 cars? smh

Dave has his math wrong on the amount she can retire with. No way that can get to 3 million. She may get to 1.2 million if she does 15k, 8% annual for 25 years.

I've not had a car payment in 25 ye years and the side effect of that is, I couldn't be paid to ever buy a new car.

She ain’t running like a gazelle yet

"Ur playin footsie" 😂

1. I love Jade! 2. This video was spot on! His and her advice are on point and until you get there, you'll never be debt free. I did it and if I can, anyone can

She should absolutely be putting up to the company match into her 401k. That’s free money. She should also then be putting as much as possible to getting out of debt.

Cars are the stupidest things ever to waste money on. I purchased a prefect condition vehicle 6 years ago for $3,000 that had 90k miles on it. I have driven it from Seattle to LA twice and put on a total of 90 thousand miles. Maybe 2k in maintenance and tires and it has never let me down, does everything I need and I could careless about what the neighbors drive. Cars are the worst things to throw money at. New cars not only cost more per month your car insurance is also more. I own three cars and two motorcycles and my full coverage insurance is less than most pay per month for one new car. Unless you are rich a car should just be a metal box that takes you places and looks decent. No one wants to drive a hooptie, I get it. But paying monthly for something that sits in the drive way 98% of the time looking pretty AND costing you money even while turned off is just plain stupid.

So they're telling her not to invest at least 3% which they can fully match? That's free money. She just needs to concentrate on her debt.

I drove a Colt Vista that I shared with my sister at that age 😂. Then mom took me to the car lot and bought me a used Tercel (when I was in college) . I felt like the most spoiled kid. This lady is bonkers.

id put 3% in thats free money from the company. Can still tackle debt quick

I thought 100% Dave Ramsey was getting ready to say “Sell the Daughter.” At <a href="#" class="seekto" data-time="190">3:10</a>😂😂😂

I read Ramsay's book. We bought my car $5,000 cash. A few months later my wife's car blew a gasket. So we sold it to some mechanic for like $900. We then bought her a $13,000 car. We paid $9,000 cash and her parents paid the other $4,000 cash and we paid them back fast. Dave says that owing your in-laws makes thanksgiving taste different. We don't know about that because we paid them back so fast thanksgiving hadn't arrived yet 😂. But here we are. No car payments years later.

Dave, simply thank you for sharing your gift of helpful knowledge and information. And thank your wife for willingly sharing her gift (you) with all of us. May God continue to bless you both, along with the rest of your family.🙏🏾💜

I'm so glad I prioritized 401k and IRA contributions in my 20s and 30s. At 39, the flood of ever-growing (tax free!) dividends speak for themselves. The caller, at 38, has plenty of time to get going on her next egg, but she also needs to be deliberate and realistic in her expectations; what she could have built with $5k per year deferred starting at age 25, might require $15k per year now, which is not chump change to most people.

Why can’t the 18 year old pay her own car payment???? Am I missing something?

I think it is time for your daughter to start paying her car balance now that's she is 18 and working. This lady makes good money and something isn't adding up.

😂 And then I’ve got the Moneyyyyy @<a href="#" class="seekto" data-time="448">7:28</a> 😂

The way he ask “is she working” scared me lol

this is very true. she should have just kept her car instead of giving it to her daughter she can buy her own she was only 16 so I don't see why you will give her a car payment.

The dream team of Dave + Jade! Two issues with the advice here: 1) to have $3m after 25 years would take a 15% return rate per year, which is not reasonable. More likely is around 8% which gets her $1.2mil. 2) Don't pause your 401k investing - ever. You have to fund retirement. Maybe reduce the %, but don't reduce it below what it takes to get the max employer match (if applicable).

15k for 25 years, is 1.2 million. Nowhere close to 3.

I have seen so many people use 40ks for emergency funds. Sad

We are debt free (including the house, although this time last year we weren’t). When I decided I needed a car that would save me gas money (I drive Uber and Doordash part time), I used some cash I had on hand to buy a $16,000 car. And I set aside the oldest car we owned (a 2005 Honda Pilot) for our then 15-year-old. My husband’s car is also paid for. So we have 3 cars, all paid for. I would never give my daughter (or my sons when they get old enough) a car that has payments. Insurance is high enough for a teenage girl driving a car almost 20 years old. Imagine if she were driving a 2020 car! No thanks! And we could afford that new of a car if we wanted. But our cars run fine; why get something new?

Jade's dramatic reactions are so me! Love her!

It's so hard to not buy a nice car while in debt. Especially when you get a better job, finally making more than enough money. But I watch these vids just to help me stay on track 😆

I watch these videos to remember what not to do!

Giving up a 4 1/2%, 100% company match 🤦🏻‍♂️

It's crazy to see the people that make decent money and are still broke

Never EVER give up company match 401k no matter who told u so Company match is instant 100 % return There is no rush to pay cars off, they are fix rate

75k in 9 months. 35k left. All just being stupid tax.

She should start her retirement, NOW.

Why isn’t the 18-year-old daughter who is working making her own car payments? I’m 56 years old. I’ve never had a car payment. I’ve never had a brand new car right off the line simply because I didn’t want to be burdened by making a monthly payment. A monthly car payment to me is like paying rent. You might as well live in the car. That woman needs to teach her 18-year-old a little responsibility and feel the pinch of the pain. Now I had a relative help me out a little bit to get out of debt in my early 20s but I did earn half of it to get out of my situation. Younger people aren’t gonna learn unless they feel that pinch of pain! You never forget the pain.!

Get out of debt no matter what! Paying it off is liberating. "The borrower is the slave of the lender." Proverbs <a href="#" class="seekto" data-time="1327">22:7</a>.

I love the advice, but my company matches retirement, plus pension benefits. If I stop my retirement, I get cut soooo much in taxes like 1k or more. But if I pay retirement I get cut like 300ish in taxes… it’s simple math for me and my check is actually more when retirement is cut.. I rather pay myself before the government… I am seriously paying everything off. Even while I’m getting out of debt 💸 I still believe in saving for my retirement.

I have a hard time understanding why anyone would pass on a 401K match. That is essentially free money, a 100% return on investment instantly. That's more than even credit card debt. I get it why I am wrong, it is just hard.

Yeah dave! You tell her

An alcoholic cannot sort of quit drinking and expect to sober up.

I have two used Toyotas that are paid for, one of which is over 20 years old. Paid cash for that car and it has been the best blessing for our family! The caller should buy a quality, inexpensive used car and drive it for as long as she needs to get out of debt.

Get a part time job and put the 6% in 401k work 7 days a week till ur debt free then quit the part tine job

I just turned 29, a little behind on my retirement liking, and still have about $40k in debt with no kids and a homeowner. I could never pay down my debt because of my drinking issue but I’m 10 months sober now and went from $50k to $40k the last few months. I make a good salary at my day job and my part time. I am planning to pay off all my debt exactly a year from now or even sooner, but I am investing just 5% at work into 401k & Roth (my job matched 100% up to 9%) and another amount in my HSA. My thing is, I am picking up extra one serving shift a night (extra $200 a week) so I can invest into my retirement but can also pay down my debt as planned. (Most of my debt is interest free, the largest is 10%) as I believe in this concept Dave preaches but I also think if you can strategize to make extra money, take advantage of retirement because you’ll end up having to put in more a month in the future just to catch up on retirement. Everyone’s situation is so different and this isn’t a one size fits all.

She is losing money if she doesn’t put it into her 401k. I get not doing more than that until you get out of debt. But this is losing money.

Please explain me where math is of 15% of 100k. In 10 or 20 years will get you even 1 million. It's no where close. Even with compounding. 20% of 100 k in 20 years is 400k. What are you investing in to triple your money. ???

She lyinnnn,she out there goin wils wit those bonuses

I order a Model Y Performance a month ago. My payment will be $750 a month for 72 months with a 15k down payment. I came to watch your videos so I can convince my self to lose my $250 deposit and move on.

If they don't take the advise to sell those cars, analyze the budget... are there places where 3% can be found by reducing their spending more? I mean $20,000-30,000 bonuses really pays down debt quickly if it's used 100% toward that. Get used to having 3% less disposable income.

I disagree I think they should keep the 10k car bit sell the other 28k car

Thankfully here in Australia our employers have to put 11% of our gross income into Super ( similar to 401k)

Dave's energy during this episode reminds me of Michael Corleone trying not to explode at Kay for having an abortion in Godfather II.

She can wipe out the debt this week and then take advantage of free money for retirement, but it means having to sacrifice a very little amount of lifestyle, and giving her adult daughter a little more adult responsibly. Dave is exactly right that if she took this seriously now she will have millions, but if she doesn't change she is going to have very little.

This is the one area I highly disagree with the baby steps. This lady should be putting on the 6% up to the match and also getting out of debt, both are possible.

Soooo many people swimming in debt. They don't seem to really care.

That's the part dave Needs to explain more ... We no how to pay off debt But how do we do the investment Part .... Do we put the money in a Flowerpot.....water it & it grows into millions!

“Turn down free money for no reason.” -Dave

The giggling happy ones that keep saying "yeah you're right" never learn

$15,000 per year at 10% compounded monthly for 25 years is $1.8M. C'mon man!!

I am on Step 6 but contributing just under 20% to my Roth retirement accounts. I have under $100K left on my house with a rate of 2.7%. While I want to get that house paid off ASAP, I am making more than 2.7% return in my investments right now.

401k match is great but car payments are laaaaame

Never down a 100% on your money. Never not invest in your 401k up to your employer match.

Missing out on the match is throwing about $5,500 a year out the window. The cars are very stupid, but even with the car payments there should be plenty of money on the budget for whatever is needed. This woman isn’t serious or budgeting.

Depending on car loan interest rate, you're better off investing up to employer match limit. Use the rest to pay off cars. Also math is wrong on 3mil with 15% investment rate during 25 yrs.

But a 401k is pre tax . Wouldn’t effect take home that much.

The path to success requires intentional PAIN. There is no doubt about that.

Just get rid of the cars, but you should match your (roth)401k immediately. You're basically getting a 6 percent raise that grows tax-free immediately! That is thousands and thousands of dollars in the long term. My advice would have been to match the 100% immediately and try to sell the vehicles.

That was me 20 years ago. I did cut up the credit cards except for one from Best Buy, which was one nice tech present per year with zero % interest and paid off in 6 months. Took 10 years to get out of debt that way. Then went back into debt for second go round at college.😅 dumb! Then went through he'll thanks to a house fire which the insurance only partially covered. I got darn serious then... and in 2 years paid off everything including the house. Now I'm fully funding my 401k in my mid 40s and just purchased a new home with a 15 year payment of less than 1/4 of my monthly income. It will be paid off in now 6 1/2 years. I did buy a new car with cash 💸 and there is no better feeling than being able to live the way I have earned and worked hard for all these years. When you get serious, you'll achieve results!

Take the match, it’s free money

Caller said she makes 90k + 25-30k in bonuses. She could easily knock out 40k in a year, if there’s not more to the story.

I don’t have any debt that I know of except student loans and approximately $5,000.00 in credit cards due to loss of income

How many people believe the caller will give up her vehicles 🧐?

She's 100% not going to do what Dave said.

I need Mr.Ramsey to post a list of the mutual funds he invests in. I love a lot of what he says but these returns he's throwing out are confusing

Love the advice AND love that shirt too JADE!

How does he get from 15% of 90k invested for 25 years up to several millions? I don't understand those math. Seems unrealistic to me even with compound. Anyone can enlighten me please?

Always get your employer match first. An instant 100% and 50% gain is the best deal you will ever get. With $40K in debt and a ~$115K income, it'll take a year to pay off and not contributing 6% to the 401k for a year will be throwing away $5K in matching funds, and missing a total of $11.5K in contributions. The contributions plus the compound interest for 25 years will grow to $175K (using the same assumptions that Dave used when he said she would have $2M after saving 15% for 25 years), and would cost only 1 or 2 months interest (ballpark $400) on paying off the $40K debt. Take that $400 saved and put it into the 401k with employer match and it'll be worth $11K after 24 years. Big difference. Plus, Dave knows the car market is crazy right now but is suggesting buying cars for $3K and $5K. Poor advice all around. The caller isn't suffocating in debt and there's no indication she's habitual about it. It's too bad Ramsey only pushes the one-size-fits-all "baby steps" plan that's very sub-optimal for people that got into debt because they were ignorant vs. emotional. It works, but it can be like using a sledgehammer on a thumbtack. I was disappointed when Ramsey killed the "Everyday Millionaires" show, but the advise given to millionaires frequently contradicted the baby steps. Imagine that.

You should of gifted her with a copy of the class.

I’m sorry but you gotta get the employer match especially when she has 0

Of course she's divorced. Avoid this woman guys. Especially if you have means. I'm surprised that hasn't crossed her mind.

I know you find it difficult Dave, but saving modest amounts of money and moderate investments are an epiphany to most of us. Never learned this. - Admittedly stupid at 62.

It’s great that parents buy their children cars but is it necessary? I bought my own car at 18 without parental help. I love family but somethings we bring on ourselves.

15k/yr for 25yrs is 375k not 3M what kind of math is this??

Never turn down free money. Smile and take the matching 3 percent.

Not to defend either one but Its crazy that home girl is quick to throw her hands up and moap at <a href="#" class="seekto" data-time="180">3:00</a> for 38k car debt when she herself was over 500k in debt. Look all I’m saying is we are not all the smartest people and we make mistakes. Hope who ever is reading this has woken up and decided enough is enough and you can get out of debt no matter what position you are in. Believe and achieve!

I agree with the idea of waiting on the 401k the employer match is probably less than the interest on the debt.

Lady, get the match! Don’t put investing on hold when there is free money on the table

I love the audible gasp when she says $38K of the $40K was cars

I make about the same as this lady and started putting 15% in retirement 401k at age 40. Believe me she will not have "several million dollars" at age 65 (Im 63 and I laughed out loud). Also good luck selling daughters car.

Damn. I make less than her and cleared over $30K in debt in less than 2 months