Why Pay Off Debt If I Can Invest at a Higher Interest Rate?

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[RyanSmith-vjck]

Hi everyone, I am the man behind the phone call. I was cut off and didn't have a chance to thank Dave for his advice, time and setting me straight! It was very much appreciated. I sold all of my positions today and will be paying my car off this week! Only 15k in student loans debt left to pay off!!!! I am so excited to own my life again! I would like to state that working 80+ hours a week is far from ideal. I am investing in my future self with the hopes that it pays dividends. I love each and every one of you and wish every one peace, positivity and happiness :)

[orlandow]

“What you concentrate on is what you win at...” I think this will stick with me for the rest of my life

[theGrayArea]

This guy isn’t gonna do what was recommended, I’d bet my money on it.

(Slams $233.64 on the table)

[tampabayrodeo]

In light of the current volatility of the stock market, I believe investors should concentrate on undervalued companies. Currently, 35% of my $270k portfolio is made up of declining but formerly regarded corporations, and I'm not sure what to do with them.

[Lourd-Bab]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274, 800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[dugfriendly]

25yo making 130k/year? Wish I had those problems.

[leonidas]

Including recessions and bear markets, the S&P 500 averages between 9 and 10 percent annually. Letting market risk scare you out of investing in an index is thinking short term.

[andreyv]

When Dave asks them how they’re doing and they steal his line... lol

[andrewjschuler]

I think most people in the comments section have missed the point Ramesy was a making. When you have zero debt, you have more flexibility to deal with emergency situations. This increases your chances of actually succeeding in increasing your net worth. Yes - on paper it looks like more sense to invest, but thats assuming that over the next 20 -30 years there will be no changes in your life situation. So if you think that in the next 20-30 years your car will not break down, you wont get married or divorced, you wont experience unexpected medical bills, or anything that changes your expenses or income negatively then yeh go ahead and make investing a priority.

[mogumede]

5:42 "stop your 401k..."
That's where I disagree. Always contribute *at the very least, * the minimum that your company matches.

[MrNeedleslikesskate]

me: watches hours of dave ramsey
also me: ignores debt and buys up crypto

[asterisk]

The funny thing is that DR is always telling people to invest in stock mutual funds, and pretty much every successful company stock held inside those mutual funds... borrows money in order to grow the business. So he tells us not to borrow to invest, but to invest in companies that borrow to invest.

[sandrabalan]

"that little stock market game you're playing" LOL

[illlDCllli]

Dave is wrong here. Not only is the interest better on the investment than on the debt, but also the timing of starting the investing as early as possible is so important. The gains with more time add more to your wealth in the long run than paying off that debt first does. The only good argument against this is peace of mind.

[zaidchalabi]

He doesnt need to sto0 401k
He can pay that 30k or so in few months. No need to do any life changes.
He has a strong income

[TheTurdballs]

Not paying off my 3% mortgage and investing the money in the S&P has been an excellent decision. Over the length of the mortgage I’m coming out so far ahead. I still can’t believe the bank was dumb enough to loan me the money for basically the price of inflation. No way I’m giving them the money back early.

[naterdawg]

You can get a house with a 3% interest rate + an inflationary environment... house value will rise and the debt will be worth less. It's great to limit debt, but the type of it matters too.

[fallguy]

Why can’t these callers tell their salaries right away? They always sigh and sound confused

[royhoco]

having no debt is a wonderful feeling and it opens many opportunities to invest and build wealth.

[freshfreshh]

25 years old making 130k a year? God bless him! Good for him! What a great example and inspiration!