I did DAVE RAMSEY for 6 months. THIS happened.

hey guys it's Nina and I'm back with another video so in this video I'm gonna talk about the infamous Dave Ramsey and the fact that I've followed his plan for six months this year so yeah I'm gonna talk about how that went what the experience was like I'm gonna talk about day's philosophy and why ultimately decided not to follow his plan to the T I'm still doing some things from this plan but I have kind of altered a few things just for my own sanity so if you're interested it keep watching so growing up I had a very common idea about debt a very American philosophy of debt which is basically you turn 18 you get a credit card it's a rite of passage adulthood equals death and I felt like whenever you've got a credit card and you paid it off that meant that it was time to upgrade to you know a higher credit limit because your credit score would go up I always saw that as something that was just inevitable you're gonna have it you need it you need a good credit score all that kind of stuff and so I kind of heard of Dave Ramsey just kind of in passing but I always thought he was like a get-rich-quick type of guy and like I like money money is good but I've never been like I want to be rich I've never been like that I've always just wanted to be comfortable so people selling the whole get-rich-quick idea was just it wasn't really enticing to me the one night I was with my brother and we were looking for an engagement ring for his now fiance and he mentioned something about Dave Ramsey and I was like really you know Dave Ramsey and it kind of surprised me because my brother's really sensible just it really like even cured kind of guy so I figured okay my brother knows him like maybe I should check this guy out if you don't know who David is he is a financial teacher I want to say guru but he's a very well-known financial teacher coach all of that he has a huge platform he has a radio show he has a YouTube channel he has podcasts and they're all like baseball in the radio show this is huge debt free platform cash is king dead is bondage that is his whole philosophy in a nutshell most people look good and they're broke and so I started watching the YouTube videos in the first time just watching for entertainment and actually it kind of felt good because it was like well I don't have four hundred thousand dollars in student loan debt songs I went okay right and then the more I listened I was like well you might not have that much student loan debt but you do have student loan debt you do have a credit card debt and baby you need to look in the mirror and stop taking pleasure in other people's suffering and figure out your own stuff so basically I sat down I looked at my finances and I got a pretty big wake-up call just about how I was spending my money one month I had spent $600 when food between uber eats and eating out and just and I realized that I just accepted that to read so there are people who blow on the show and they do these debt-free screams which is basically where they tell their story how much debt they had how they found a ramsey of what they did to paid off and there were a lot of young people a lot of people my age of Millennials who were paying off massive amounts of - thousands tens of thousands of dollars let's hear a debt free screen let's do it three two one that I really got inspired and I felt like okay that can be me so then I decided to just start the play let me give you a quick overview of Dave Ramsey's what he calls the baby steps these are all part of the Total Money Makeover so step one is you save up a thousand dollars step two is you pay off all your debt with the debt snowball which is basically paying your debts smallest to largest step three is build a three to six month emergency fund step four is to put 15% in retirement step 5 it's the same for kids college step 6 is to pay off your house and step 7 is to just live and give enjoy your wealth and continue to just thrive essentially if you're really following day was planned you are vowing to never go back into debt again this means you would never use credit cards again that she'll never take out a car loan the one thing he does allow you to do is to have a mortgage because let's be honest it's very expensive to own homes in certain parts of the country I'm in the DC area ain't nobody paying no $500,000 to buy a house in cash okay it's basically you're not going to go into debt you are going to cash flow your life I started the planning earners in April 20 19 and the first thing I did was go through my apartment and look for all the things that I had that I wasn't using I had like rugs rolled up in corners a loveseat that I bought which like I was kind of using when guests came but I didn't really need it necessarily I had other chairs that people could sit in so I sold that I saw the rugs I sold a bed that I had like back in the corner for like a year basically I sold that and I made close to $500 and that was just like in a week or so and that got the fire under me once I started making money from selling stuff and that's his whole thing selling things it's all so much stuff that the kids think they're next and so the next thing that he wants you to do is set a strict budget which means only the necessities cut everything down to the bare bones he calls it a scorched earth lifestyle you don't go out you don't have a life you don't do anything except pay your bills food lights and water and he has this app called every dollar that I actually use I actually really like this app that I use it every single day you want you to go in there and track every single dollar it's called a zero based budget which means that you take all of your income and you allocate four things down to zero so once you've done the budget everything is accounted for you're not just sitting on a pile of money you have to give every dollar a name base so one of his famous sayings is rice and beans beans and rice which basically means you're not going out to eat okay he says that you will not see the inside of a restaurant unless you work there and yeah he just really wants you to just take everything down to the bare minimum and so some nights I literally did eat just rice and beans because I actually like rice and beans I always keep in my house but he doesn't literally mean just eat only that but it's just the philosophy of just very simple living in addition is selling everything he also wants you to work as many jobs as you can possibly work so I actually started delivering ubereats nights and weekends in addition to my full-time jobs so probably working about maybe like 60 plus hours a week so getting into the plan and really just going the full course was actually not that difficult for me because when I get convicted and there's something I really want I just I charged forward so I went into complete warrior mode I used to just be someone that kind of just got up and did whatever she wanted to do any time gonna take a random trip here and there go to a show unplanned I would just get up and do things like that being on Dave Ramsey's plan all of that guy cancelled everything was planned and regimented it was all about me working working working to try to pay off debt and family and friends knew what I was doing and in general everybody respected it and everybody was saying man I wish I could do something like that and I was like well you can and I'm doing it so with cutting things in my budget doing the reeds and income from YouTube and then selling things in beginning I ended up getting an extra thousand dollars a month and I threw all of that at the dead and it was really dope to see that I could make extra money on top of my career so in five months I paid off IRS bill I paid off a MacBook Pro and then I paid off some furniture from West Elm which all came up to five thousand dollars so I made an extra five thousand dollars in five months hustling grinding taking whatever extra money I could hear and time I just got an entirely new mindset on my money the idea that I could budget and that I could actually plan ahead for the month it was just completely unheard of something I had never done in my life all I would do essentially was in my notes I would write down here's what I spent thirty five dollars at Sephora 40 dollars at Target just writing things down after the fact but it's like okay this is where the money's going but it's not really a plan for the money in the six months budgeting and just planning for my money really became a reflex and it's not a situation where I'm looking at this lump sum in my bank account and I'm like oh well I can go to dinner with someone so I can buy a ticket for this show over here I can take a little day trip to New York like No so with the IRS bill the MacBook and the Western furniture I freed up about two hundred and forty dollars a month I was still in a no interest phase on the MacBook him it was very low and the goal was knock that bad boy out before the interest kicks in and then when it came to things that I wanted work was the credit for example I really wanted this new vacuum cleaner that's how you know you're getting old when you get eat about a vacuum so hour one of this vacuum it was on sale and I said well I didn't put it in the budget this month so I'm just gonna do a bunch of ovary's deliveries and that is gonna get me the vacuum I'm gonna pay cash I'm gonna pay one time I'm gonna be good work replaced credit cards and really that's kind of how it should be right we work for our money we don't just get free money unless you're super rich I felt more in control of my finances I felt more like an adult and there was a lot of shame that I felt making good money but not having a plan for that money a real plan there's a difference between never being taught something and never learning something I took the learning into my own hands that's what we have to do a lot of the time and I changed things and then I got to the point where I started to just feel that I could have more because I would be paying cash for it and it wouldn't follow me you know down the line so those are some of the pros of Dave Ramsey's plan for me so some of the cons Dave is really serious about you having no life while you're doing this plan okay and he can be very intimidating he's a church-going man he has his thick southern accent he's an expert on his opinion for sure and he will quickly tell somebody you know you can do what you want to do but you called my show so here's what I would do like he has a lot of fire I like that fire idiom because that's what really made me get up and do something different cuz he's always talking about how you're out of control this stupid why are you doing this but sometimes it can be a little bit over the top and a little demanding Dave Ramsey is not for the faint of heart he will rip your new one he always talks about saying no like not going on any vacations so I went to New York for a cousin's party and I did feel guilty and that was just kind of a recurring theme in the six months where whenever there was something that I wanted to do I just felt a lot of guilt it was like oh Dave's won't be sitting in the seat next to me when I go in a plane it's a very fire-and-brimstone there is no room for discussion not this is what the plan is if you really get into Dave you you can't see anything any other way it can be very daunting if you're doing it for years so my complete payoff plan would be two years and that's two years of no life two years of just hustle and grind and pay off everything and then it just brought a lot of questions to mine like well should we really focus this much I'm paying off dead yes I want to build well yes I want to be free I don't want to be beholden to the bank's because of debt but I also want to live and enjoy my life because life is short so why isn't there any room in this plan so one of his sayings is adults devise a plan and follow it children do what feels good and I really love that saying I've used that saying to talk myself out of the home bakeware aisle at Target well yeah like there's so control is a huge part of the plan but it also just I don't know I feel like you have to live just a little bit you have to enjoy a little bit of life should not feel guilty about wanting to buy yourself a new sweater you know buy yourself a plant things like that I don't know just little simple things and I feel like you need those little rewards to help you keep going on the planet I really do get where he's coming from with the payments mindset because so many Americans have that where it's like the only thing about can we afford the payment we don't think about the fact that this is a $30,000 car that you know could have been a down payment on a home could have turn into a million dollars in our retirement account we don't think about that so I do understand what he's saying but I just don't know if deprivation is the answer necessarily I feel like there has to be like a middle ground somewhere so as I was doing the plan for the six months it just got to the point where I just you know I just felt like there were more important things in my life than paying off the debt the debt is very important but my relationships with people are important there are ways to maintain relationships with people you don't always have to go to brunch if you're hanging out I mean you go to the park and I don't know go bring some fruit and sandwiches so there are things you can do but I just felt like in general I wanted just a slightly different approach to paying off my debt but after six months I treated myself to an all-cash trip to New Orleans and that's when I was like I just need to have these moments of decompression I need to have this time where I you know focus on myself focus on living and so where I am today is that I am still 100% using me every dollar app I am still doing my budget I'm still planning for the month that is crucial to me that has been a life saver that is how I want to live my life for sure I actually got a really nice raise in October and because of Dave's principles I know what to do with that extra money now it's going towards debt payment credit cards for me are still off the table as a primary form of payment I've actually gotten to the point where I use them as a tool in my budget meaning that I budget $100 for groceries every two weeks which I feel like I need to add more because I just keep it always seems like I need more than that but just for example I know I'm spending $100 so I have gotten to the point where I sometimes will put that on my credit card because I know I have the cash and I instantly pay it off I get the cash back from that on my credit card and Dave always talks about how no millionaire ever got rich from points in cash bag airline miles all that stuff I totally get it I just kind of had to like test the waters and just see if I could do it and it's still something that makes me itchy every time I use my credit card even though I know I have the cash oh it's a credit card but it's really just being able to have the discipline and so my discipline with money has increased exponentially I'm grateful for that but really Dave Ramsey gave me a major reality check about my finances he would scream at people telling them that they're out of control I'm sitting back and I'm looking at other people and I'm not realizing how certain things apply to me so I can only be grateful for that they opened my eyes about a lot of things changed my mindset changed my whole philosophy on money so yeah I can only be grateful for that but one thing that I don't really like about these approaches that it's all very fear-based he has a saying about ghazal intensity which is basically imagine that you're a gazelle running from the lion the lion is dead you know you're just running and running and running for your life and in step two when you're paying off all your debt that's how you're supposed to go and it does work I paid things off using gazelle intensity but I also felt like I was just too focused on the debt too focused on the money and just not live it like not just letting the wheels come off but just like not being so afraid and not being so single-minded slowly I began to just consider other perspectives consider ways that I could take my newfound philosophy around debt and just make it a little more livable and approachable in a way if that makes sense I think Dave Ramsey is an excellent teacher there are some things that he has that you know will probably stick with me for years to come his whole idea is live like no one else so later you can live and give like no one else which is basically you do all of this hard work and sacrifice in this deprivation basically so that way later on you can just enjoy the fruits of your labor you can give and be generous and you can just have a good free light and that is beautiful that is wonderful that's what I want but I'm gonna be somewhere like in the Middle where I'm paying off debt but I'm also enjoying some things in life I'm not taking on any new debt and really the reality is like so many things in life you have to do who works for you that's like the answer for almost everything in life so if you feel like you can do a scorched earth lifestyle and not have anything do that if you need more balance do that I'm not going to advocate for debt but ultimately it is about what you need to do for yourself so that is all for this video I hope you enjoyed it let me know if you have any questions I am prepared to hear some rebuttals all of that is fine this is my life this is my money I'm just talking about what I'm doing if you like this video please give it thumbs up please subscribe if you haven't already and I will see you next time

Channel: Nina G.

Views: 670,997

Keywords: ninalocs, the girlbook by nina, dave ramsey, dave ramsey baby steps, does dave ramsey work, dave ramsey plan, total money makeover, dave ramsey show, dave ramsey budgeting, everydollar budget, everydollar, debt free scream, debt free journey, debt free degree, dave ramsey debt, dave ramsey credit cards

Id: RRd8SZjKaJk

Length: 17min 57sec (1077 seconds)

Published: Sun Dec 22 2019