Is Dave Ramsey WRONG?

_______________________

▶Resources I use/would use (with discounts/sign-up bonuses):

_______________________

_______________________

_______________________

These are some fun words: Caleb Hammer, financial audit, Graham Stephan, Dave Ramsey, Ramsey Show, George Kammel, Rich Dad Poor Dad, Podcast, Budgeting, Investing, Stock Trading, IRA, Roth IRA, 401k, health savings, HSA, 403b, college costs, student loans, debt, snowball, avalanche, pension, retirement, financial independence retire early.
_______________________

Chapters:

00:00 Avalanch VS Snowball
01:27 Snowball method
03:56 Avalanch method
05:00 Examples of what works
06:12 Which method is best?

▶*Some of the links and other products that appear in this video are from companies for which Caleb Hammer will earn an affiliate commission or referral bonus. Some of the offers mentioned may no longer be available. This is not investment advice.

[centsmakesmoney]

Only a couple more days to get dirty with your money, then the designs go away forever shop.calebhammer.com/dirty

And yes, the pops. We heard you last video. We are ahead of a few videos, so that will be fixed soon :)

[yutuberculosis]

the amount of people who say "eating out is cheaper than groceries" or similar things just shows the irrational thinking people have around money. The snowball method would probably be appropriate for those guests.

[clumpfandango]

Love the channel, have to agree with the pop sound criticism. It feels like I'm paying close attention then randomly getting aggressively slapped in the face.

[pflagler]

Another hybrid approach you could use would be paying off the smallest one or two balances first to reduce the monthly minimum payment, THEN switch to the avalanche method for the rest.

[ttech]

Daves baby steps work for 90% of people. If your consumer debt free, have a fully loaded emergency fund and a stable job with decent income coming in your financially ahead of like 90% of most Americans

[MsExtra-visj]

Hello! These are helpful, but as a heads up I believe the sound effects are a bit too loud, it can be distracting from what is being said.

[kataratak]

Please stop with the generic pop sound effects

[EagleEyeHunts]

Amazing work! Most concise and clear explanations I have heard of snowball versus avalanche methods without emotion or opinion being inserted. I will be sharing this! 🎉

[danielwalker]

So grateful to hear someone talk about a hybrid method. It makes sense especially when part of debt is 0% with intro APR on CC and whatnot. I've paid 10K of debt off using a hybrid approach.

I split my consumer debt into 0-10% interest rates, 10-20% interest rates and 20-30% interest rates. I started with the highest rate bucket but did snowball in each tier of debt.

[OLS]

I am enjoying experiencing Caleb & team experiment with new ideas. I love these videos and am looking forward to seeing this concept evolve.

[morganblankenship]

Really looking forward to the videos on this channel!

[LejunglerenardThejunglefox]

I’m doing a Hybrid approach with my debt. I went from a maxed out Credit Card at 11.25% interest down to 40% usage and still working. Once im done with that I’m gonna Snowball my UnSub Student Loans since I have interest going on even though I don’t have to pay them until I graduate. And then Snowball my Sub Student Loans (with less Intensity since I really don’t have interest until I finish my degree and would rather work on a fully loaded Emergency Fund and other Financial Goals. My goal is to be Debt Free but to also enjoy my 20s . I feel I can do both.

[sarashann]

I'm a Ramsey and Hammer fan. I AM a credit card person but didn't use one while we were aggressively saving/investing and paying off our home. It's just too easy to spend on crap when you don't experience the pain of money immediately leaving your hand or bank account via a debit card.

[dillin]

I really need you guys to make the thumbnails include the little animated Caleb instead of these AI things, I almost always go to block the channel before realizing it’s Caleb “money makes cents” channel bc it looks so much like those scammy channels 😅

[baconcerberus]

My main criticism of dave is he is just anti debt so much to the point where he would tell you to pay off the mortgage even if it was 0% and you had a 5% HYSA.

[Fatally]

The hybrid appach makes more sense in complicated situations. I could see a self-employed person with inconsistent revenue or income benefitting from the avalanche first or something associated with their business before a season ends/comes. I recently came into a bit of money from a family estate. It's not enough to chip much off my car payment, but I am going to use a hybrid approach for finishing off a high interest debt with a monthly minimum of $226. I'll be taking half of that minimum monthly payment to snowball my federal tax debt, and the other half to build savings (currently less than one month's). Personally I feel a bit more psychologically inclined to shove it at my car payment, but the daily compounding interest of federal tax debt is a bigger burden. This content is awesome!

[justinliberman]

Ramsey seems to lack nuance when discussing credit cards. He brings up the example of "you have to spend $1000 to get $20 worth of points" though doesn't factor in that if you do it right, it's $1000 you are spending anyways. 

If I put all my necessary spending for a month (groceries, gas, etc) on my credit card and pay it off, I've built credit (because not everyone can just buy a house outright without a mortgage, especially in a higher COL area), carry no cc debt, and earn the points anyway. If I made those purchase on my debit card, I don't get any additional rewards and it's the exact same amount being spent. Ultimately it comes down to personal responsibility and not exceeding the amount of actual money you have in your checking account in terms of credit card spending.

[emilyholley]

I like these videos but they don’t show up in my feed. I watch financial audits as soon as they post but these don’t come up in my feed like those do. Just a heads up. I had to physically go to the channel to see this one.

[TheIronChainMaster]

Depends on the person and what works for them better hence "Personal " finance

[naception]

If you can manage avalanche. You should do it. After taking out the large debt the smaller ones will feel much less challenging