Why You Should Stop Investing if You’re in Debt

You work for a 40yrs to have $1m in your retirement, meanwhile some people are putting just $10k in a bitcion coin for just fe months and now they are multimillionaires thanks to Charlotte Grace Miller

“Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.” - Robert Kiyosaki

2023 was a challenging year, but I managed to make $100,000 before taxes as the sole breadwinner and head of household. It's a good starting point, but I'm always looking ahead on how to improve. I have 2 autoloans and hoping for a miracle to offset them as refinancing is more expensive in the long run.

Dave’s steps helped us get to where we are today. The power of focus is real. While we were in steps 1-3, we still got our company matches and still got out of debt. The free money plus compounding is too powerful to leave on the table. Looking back on the process I’m glad we made the choice to continue with getting the matches. Had we stopped investing as Dave says to do we would have only shortened steps 1-3b by 6-8 months but would have lost out on 3 ish years of compounding in our 20s, which precisely the time when compounding is most powerful. Personal finance is personal and nuanced. Do your math. Learn all you can. Winning with money is possible. Be patient and work hard. You got this.

Never, never give up the company matches, NEVER

I encourage everyone to look into the math before they stop their retirement. I stopped mine because Dave said I should do so, but I eventually sat down and did the math and found out that it was making virtually no difference in my average paycheck, so I cost myself a year of company match and growth. Not everyone will have the same experience but it’s worth looking into.

Dave's advice is typically sound but his 401k company match stance is something that I can't get on board with. If the company matches, you take it every time and then you adjust your budget from there. He most likely has a spending problem and doesn't stick to a budget hence why the CC debt. No reason why you can't invest while still paying off debt.

Sell the cars, keep the match. Next caller.

No way would I give up a 6% match

That credit card debt and the car repayment debt is so frustrating! His family could be in a far better financial position if those debts were not there. It's far better to get a reliable, cheaper car until you're in a better financial position.

No CC has a 100% interest rate. You invest the amount it takes to get the company match no matter how much CC debt you have!!!! The CC debt is second to getting your full company match.

I invest in a lottery ticket occasionally

Palantir stock is stuck in a debilitating downtrend and looks just attractive for a long-term investment once the short-term volatility and smoke settle. Right now i'd appreciate suggestions short-term opportunities that could fetch $50k or less..

I made a similar video on why this kind of thing doesn't make sense. Whether its making money on tax savings or wanting growth through positive compounding on savings and investments, you can't do this until you remove the negative compounding from your life

It's not a math problem, it's a behavioral problem - a me problem. Among my favorite Ramsey quotes.

Good point Jade, yet simple.

Do not stop retirement. You are robbing your future. It's called compounding. Like Dave love's to say, you are jumping over a dollar to pick up a penny. So what if it takes 3 years to pay off instead of 2?

Thanks to the “nightmare-ish” calls that this show gets and the financial mentality of the Ramsey team I have officially paid off my students loans. It’s a great feeling, $17,000 in 7 months, I could have done it faster, but went at my own pace. Dave’s advice to many where “you don’t have an expense problem you have an income problem” was exactly where I was, I got a new job but didn’t live outside of my means, my wife and I can now save up to build our future together, thank you Dave & the team!! 😊

I don't understand how Amercians get 60 k in cars ? I bought my first used car recently, 4 years old with 60000 miles for about 10k. Why on earth would you pay triple that when you've got massive student debt already ? Is it some sort of social pressure thing ?

I drive a $4000 2004 Honda CRV after my 2007 dodge avenger that I paid off was totaled and my bargain $1800 2011 Chevy Equinox with 130k miles engine died after 3 months. You dont need a "newer" car until you get rid of then debt and can afford it.