69.2 F
Waurika
Thursday, April 25, 2024
Advertisement
Home Dave Ramsey Says Page 3

Dave Ramsey Says

Most popular

Dave Ramsey Says June 18 2018

By
Dave Ramsey
-
0

Stop playing with silver and gold and pay off that debt!

Dear Dave,

I make about $240,000 annually, and I will be maxing out my 401(k) contributions this year. I have $60,000 in student loan debt I’m trying to pay off, a small amount left on my home mortgage, plus I’ve been investing in a lot of gold and silver. Those investments are worth about $30,000 right now. In addition to this, I’ve got $10,000 in cash just sitting in a savings account for emergencies. Should I stop the gold and silver investing, and focus on paying off the loans, or keep splitting my money between them?

Adam

Dear Adam,

I’d stop investing in gold and silver completely. I don’t put money in precious metals at all, because they have a lousy long-term track record.

My advice would be to cash out every bit of your gold and silver, and put the money toward paying off your student loans. That would instantly cut your student loan debt in half. Then, with your salary, you should be able to pay off the rest in just a few months.

The key will be to start living on a very strict budget. Don’t spend on anything that’s not absolutely necessary. I also want you to temporarily stop contributing to your 401(k). Do this just until you get the student loan debt wiped out, then pick it up again like before. If you want to put even more toward retirement, you could check with a quality investment professional — one with the heart of a teacher — to see if you’re eligible for a back-door Roth IRA. When it’s all said and done, Adam, I want you to have 15 percent of your yearly income going toward retirement.

You already know the value of saving and investing. With your income, once you knock out your debt and begin investing again, you have the very real potential to become a millionaire in just a few years!

—Dave

* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 14 million listeners each week on 585 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.S

5 ways to hit reset on your financial goals

By
Dave Ramsey
-
0

By Rachel Cruz

Summer is coming to an end, which means we are more than halfway through the year. What about those resolutions you made for 2018? If you’re like most people, they probably went out the window during summer vacations. We’ve all been there!

With the holidays right around the corner, now is the perfect time to hit reset on your financial goals. Before you know it, you’ll be busy booking holiday travel plans, buying gifts for loved ones and enjoying other festivities.

No matter how you’re doing, you have plenty of time to get back on track. Here are a few ways to reach your financial goals before 2018 comes to an end:

Make some adjustments

Maybe your New Year’s resolutions weren’t realistic, or you had something pop up that drained your emergency fund and slowed you down. Life happens, and it’s okay to adjust your goals. Look at where you are financially today and decide where you want to be by the end of the year. Don’t be afraid to set new goals for yourself, too. You can start making progress toward your future today. Just make sure you factor in the amount of time left in the year as you reset your goals to ensure they’re attainable.

Get back to budgeting

A budget is the most important thing when it comes to winning with money. If you don’t tell your money where to go, you’ll wonder where it went! Assess how you’ve spent your money over the past few months. Look for areas where you can cut back (dining out, groceries, new clothes), and put that money toward your goals. Trust me, you’ll feel less stressed.

Plan ahead

It’s September, which means we’ll be decking the halls before you know it. At this point, you can count how many paychecks you have left until the holidays. The last thing you want to do is spend money you don’t have. In 2017, roughly 74 percent of Americans said they failed to budget properly for the holidays and racked up an average of $1,054 in debt. Plan ahead by adding a line item to your budget for holiday spending. Aside from gifts, don’t forget to factor in travel expenses, charitable giving, and parties. Start setting this money aside now so you can enjoy the holiday season guilt-free.

Stay motivated by tracking your progress

You’ve got your budget, so now you just have to make sure that you stick to it and stay motivated. Tracking your progress can be one of the most helpful ways to do this. When you can visualize your progress, you’ll be excited by those quick wins, you’ll be less tempted to spend what you don’t have, and you’ll be motivated to keep going. I’ve created a free goal tracker that you can download at www.rachelcruze.com to make this part easy and fun!

Focus on what matters

Sometimes we want things so badly they start to feel more like needs. Do you really need the newest iPhone? Do you really need to replace your outdated computer? These things are nice to have, but they’re not must-haves. With social media today, keeping up with the Joneses is harder than ever. And who would want to anyway? Don’t compare your life to someone else’s highlight reel. Focus on your goals and the things that really matter in life.

You don’t have to wait for a new year to set new goals, or make progress toward the goals you’ve already set. In order to win with your money later, you must be intentional today!

 

 

About Rachel Cruze:

As a #1 New York Times best-selling author and host of The Rachel Cruze Show, Rachel helps people learn the proper ways to handle money and stay out of debt. She’s authored three best-selling books, including Love Your Life, Not Theirs and Smart Money Smart Kids, which she co-wrote with her father, Dave Ramsey. You can follow Cruze on Twitter and Instagram at @RachelCruze and online at rachelcruze.com,youtube.com/rachelcruze or facebook.com/rachelramseycruze.

Dave Ramsey Says November 8 2018

By
Dave Ramsey
-
0

Wait on the honeymoon?

Dear Dave,

My fiancé and I are getting married in three weeks, but he lost his job as an experienced HVAC technician at a hospital a few days ago. Do you think we should still go on a honeymoon, or wait until things are more stable? I’m on Baby Step 3 of your plan, and I make $56,000 a year. I also have $7,000 in an emergency fund. He was making $64,000 a year, and he’s on Baby Step 2 with about $10,000 in car debt remaining. We have $3,000 already set aside for the trip, plus another $2,000 we were planning to put toward fixing up his place.

Corina

Dear Corina,

First, congratulations on your upcoming wedding! I hope you two will have long and happy lives together.

Usually, I’m not a big fan of spending when someone loses a job. But I think your situation is a little different than most. You’re both serious about dumping debt and getting control of your finances. Plus, you’re working together, and you’ve already got a nice chunk of cash parked in the bank. That tells me you’re both wise enough to know the importance of saving.

Your guy can find another job in a couple of weeks, considering his field and experience. Companies everywhere are hiring people right now, and the economy is booming! If he gets out there and really busts it looking for another position leading up to the wedding, I think you two will be fine. He might even be able to work it out to start right after the honeymoon.

You two have some financial padding, his job is an easy one to replace, and his income will be restored soon if he’ll just get out there and make it happen. Go on the honeymoon, and have a wonderful time. God bless you both!

—Dave

 

Dental insurance for the kids?

Dear Dave,

Should I keep buying dental insurance for my kids, or is it just a gimmick?

Brenda,

Dear Brenda,

Dental insurance is one of those things where it’s easy to see that the payout is greater than the return. We’ve had dental insurance proposed to us at my company several times as an employee benefit, but when you add up what you pay for it you’ll find you rarely spend that much on dentistry. In many cases, I advise self-insuring for dental care.

Now, there is a dental discount company I highly recommend called 1Dental.com. This kind of thing is worth it. As a member, you get discounted rates on dental work when you visit an in-network provider. I’ve gotten to know the folks behind this organization, too, and they’re great people.

Hope this helps, Brenda!

* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 14 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

Dave Says October 18 2018

By
Dave Ramsey
-
0

Pay it off!

Dear Dave,

I can’t decide what to do about my car. I owe $8,000 on it, and I have the cash to pay it off with plenty left over. One of my co-workers said I shouldn’t pay it off, because I have a very low interest rate on the loan. What do you think?

Derricka

Dear Derricka,

What do I think? I think your co-worker is broke. Taking financial advice from broke people is like taking dieting advice from fat people. In other words, it’s dumb.

Pay off your car, and never borrow money to buy a car again for the rest of your life. If you want to win with money, you have to get out of the land of car payments. The idea that you’re stuck with car payments — that you’re always going to have one — is the mantra of those who’ve given up hope. You are in charge of your life. You are in charge of your financial situation. Don’t be like all those folks out there who whine about stuff like stagnant wages and are unwilling to get up off their stagnant butts to make their lives better.

Derricka, pay off your car today. And please, don’t take any more financial advice from broke people!

—Dave

Emergency fund in cash?

Dear Dave,

My wife and I are completely debt-free. We would like to have part of our emergency fund in cash inside a heavy duty safe at home. How should we document this cash in the event of fire or theft? Also, would our homeowners insurance policy cover cash?

Will

Dear Will,

Typically, homeowners insurance policies have a limit as to how much cash they will cover. I’d advise re-reading your policy, and double checking with your insurance agent just to be sure. When it comes to documenting valuables, I’d suggest making a video or taking photographs. Just to be extra cautious, you could store these in a safe deposit box at your local credit union or bank.

Having some cash on hand is never a bad thing. When it comes to the portion of your emergency fund you keep at home, I’d recommend just being reasonable. If you’ve got $10,000 set aside for emergencies, I’m okay with you keeping $5,000 at home in a quality safe. I wouldn’t put all, or even most of it, in a safe, though.

Again, just make sure your homeowners policy covers anything you might put in there. A strong, fireproof safe is a must!

—Dave

* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 14 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

Dave Says October 11 2018

By
Dave Ramsey
-
0

Spending money in the budget?

Dear Dave,

We are debt-free except for our home, and we have six months of expenses set aside in our emergency fund. Every time we do our monthly budget, we set aside a small amount of personal spending money for us both. Do you see anything wrong with this?

DeAnna

Dear DeAnna,

There’s absolutely nothing wrong with having a little fun money calculated into your monthly budget when you’re in good financial shape. The problems start when couples don’t agree on these kinds of things — or worse — when they start hiding stuff and lying to each other about where the money’s going.

People either grow together or they grow apart when they get married. When you start hiding things from your spouse you’re essentially keeping separate lives. That’s a bad sign in any marriage, and in many cases, this kind of thing leads to divorce.

Having an agreed-upon budget isn’t just telling your money what to do. It’s also an important part of a healthy sharing and communication process between husband and wife!

—Dave

 

Close up small business?

Dear Dave,

I have a small business, and I love what I do. Unfortunately, things haven’t been going well the last several months. On top of that, I’ve committed a lot of money to advertising in the coming year. Recently, I got a great job offer from a company that would pay me twice what I’m making now. What do you think I should do?

Hugh

Dear Hugh,

If it were me, I’d want to keep my options open. Closing your business would mean giving up all your customers. I’m not sure that’s a good idea when the offer has just been made, and you know so little about the actual job.

If you think this new job is something you might like, why not accept the offer and see if you can continue your other work on the weekends? That would help cover some, if not all, of your advertising commitment. Plus, it would keep some money rolling in if the new job doesn’t work out.

If you find you like this new job, then you’ve got a great income and something you like doing on weekends that pays. If you keep your business open — even on a small scale — there’s always a chance it will begin to grow again. Who knows? It might give you the opportunity to jump back into it full-time somewhere down the road!

—Dave

* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 14 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

Dave Says November 1 2018

By
Dave Ramsey
-
0

Strained relationship over borrowed money?

Dear Dave,

I borrowed some money from my parents in January, and it took a few months longer to pay them back than originally planned. Since then, I’ve noticed our relationship seems to be strained. They will sometimes make remarks about money when I’m around, and it’s obvious the things they say are aimed at me. I don’t want things to be like this between us during the holidays. I have taken steps to become more financially responsible, like watching my spending and living on a budget, so how can I address this issue with them?

Robbie

Dear Robbie,

I’m sorry you’re going through this, but I hope everyone has learned a valuable lesson. It’s okay to give money sometimes, as long as you’re not enabling irresponsible behavior in the process. But loaning money to or borrowing from friends and relatives will often lead to bruised feelings.

If you paid them back, especially if it took longer than expected or agreed upon, there’s not much you can do if they choose to hold a grudge. With some folks, it just takes a little while for those kinds of things to heal. And considering it’s your parents, my guess is they’ll become more and more forgiving with time.

Until then, maybe you could look for opportunities during conversations with them to mention your new approach to finances. Something as simple as referring your budget, or getting excited about how much you were able to put into savings from your last paycheck, might get their attention. A few subtle hints that you’re actively working to gain control of your finances might go a long way with your parents.

If they realize you’re starting to handle your money more wisely, I’ll bet you’d start to notice a real difference in their attitudes!

—Dave

* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 14 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

Dave Says September 18 2018

By
Dave Ramsey
-
0

Sell personal car to help pay business debt?

Dear Dave,

My husband started his own one-man, small business as a handyman a little less than a year ago. He has netted $17,000 in that time, but the business has about $13,000 worth of debt. We’ve always kept personal finances and business separate, but what would you think about us selling one of our paid-for cars to help with the business debt?

Robin

Dear Robin,

There’s nothing wrong with small beginnings. On top of that, you should always keep your business and personal finances separate. Aside from the debt, it sounds like he’s off to a good start.

I think you’ll be able to pay off the debt from your future income. If your husband started his business less than a year ago, he has spent that time trying to get things off the ground and working with very little name recognition. If he’s good at what he does, and he continues to work hard and market himself properly, he should be able to double what he made in the last year.

To do that, however, he’s going to have to spend some time in accountant mode. He needs to figure out the types of jobs he makes the most money on for the time he puts into them. I know a guy in our area who made more than $100,000 as a handyman in the last year. I’m talking about $100,000 in profit! His prices are higher than most in that line of work, but he’s the best. He provides superb quality work, and he’s always polite, on time, and on schedule.

If your husband does the research and crunches some numbers, I think he can dial it in and make a lot more moneythan he’s making now. Find that sweet spot, and he’ll continue to grow the business!

—Dave

Forgive the debt?

Dear Dave,

Recently, I loaned some money to a good friend. He’s going to help me with a big home project over the next few weekends, so do you think I should pay him for the work or forgive the debt?

Marvin

Dear Marvin,

First, I don’t recommend loaning money to friends or family. Once in a while, things may work out and everyone ends up happy. But in most cases, it changes the dynamic of the relationship. The Bible says the borrower is a slave to the lender, and there’s a lot of truth in that — financially and emotionally.

The big question is whether you’ve already agreed to pay him for the work. Another consideration is how he views the situation. He may be looking at this as just helping a buddy, and he still owes the money.

Ask him what his expectations are before you guys start the job. Just talk to him, and figure out what seems fair to you both. If you’ve already agreed on a certain amount, and the value of the work is close to what you loaned him, you might discuss the idea of paying back the debt that way.

But in the future, if someone close to you really needs financial help — and you’re not enabling bad behavior in the process — just make the money a gift.

—Dave

* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 14 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

Dave Says May 2 2019

By
Dave Ramsey
-
0

When to start the process?

Dear Dave,

My husband and I are debt-free, and we have an emergency fund of six months of expenses saved. We’d like to buy a home in the $250,000 to $275,000 price range in the near future, and we plan on saving $60,000 for a down payment. It should take a little less than two years to save that much money. When should we begin the search for a good real estate agent and start the underwriting process?

Sarah

Dear Sarah,

I’m really proud of you two. You’re being very intentional and goal-oriented about getting control of your finances and the home buying process.

I’d advise starting a conversation with a quality mortgage company when you’re about five or six months away from your savings goal date. There’s “pre-approval,” but there’s also something called “certified.” That’s a step beyond pre-approved, and it basically puts you in a position to make an offer when you’re ready for the purchase. So, getting certified as a buyer is very helpful. After that, sit down and talk with a few agents. Interview them, and decide on someone you like and trust. Find an experienced agent you’re comfortable with to guide you through the real estateworld, and then start outlining your search and buying strategy.

What I would not do is jump from agent to agent. There’s a tremendous benefit in finding someone you trust and feel good about. I’m talking about a buyer’s agent who’s going to fight foryou. This means someone who will show you several different properties, keep your wants and needs foremost in their mind, and help you get the best possible buy on your new home!

—Dave

A home shouldn’t leave you house poor

Dear Dave,

My husband and I were listening to your radio show the other day. In it, you were speaking to a lady about buying a home. When you talk about mortgage payments being 25 percent or less of your take-home pay, does this figure include taxes and insurance or just principal and interest?

Ann

Dear Ann,

That figure includes taxes and insurance, too. The whole idea is to make sure your house payment is manageable. You don’t want to have so much money going toward your mortgage every month, what I call being “house poor,” that you can’t take care of your other financial responsibilities or enjoy life.

It’s simple. You have more money when you don’t have debt. If you want to build wealth, you have to get out of the payment business. When one-third to one-half of everything you bring home is going to creditors, you have less money for other stuff—other important stuff.

Trust me, I get it. A home is a huge expense that very few people, especially those just starting out, can afford to pay for in cash. That’s why I don’t beat people up for getting a 15-year, fixed-rate mortgage. But that’s the only kind of mortgage I recommend. 

And yes, make sure the monthly payments are just 25 percent, or less, of your take-home pay!

—Dave

* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, includingThe Total Money Makeover. The Dave Ramsey Show is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

Dave Ramsey Says

By
Dave Ramsey
-
0

Evaluating insurance needs

Dear Dave,

Last year I got a divorce. I’m 32, a teacher and a single mom. I’m on Baby Step 2 right now, and I was wondering about life insurance. My son is only two, and if something happened to me, he would go to his father. His dad is in good shape financially and responsible with money, so how much life insurance should I have?

Christian

Dear Christian,

Well, you probably don’t need the full 10 to 12 times your income like I recommend for most people. The only dependent you have is also dependent upon his dad. And from what you said, his father seems perfectly able to take care of him.

I’d get a good term life policy equal to the amount that you’d like to supplement your son’s care. The good news is you can get a couple hundred thousand in life insurance at your age for practically nothing.

If you get life insurance, make sure his dad—your ex—is not the beneficiary. The beneficiary should be a family trust, formed upon your death, and the money would go into that trust for the benefit of your child. You set the terms of the trust. It should not be controlled by your ex. In a divorce situation, I would never name someone I’m not willing to be married to the trustee of my money on behalf of my child. 

I’m so glad you’re thinking about these things, Christian. It shows you’re an intentional lady, a fine mom, and a good planner. Those traits will serve you and your son well!  

—Dave

Are utilities included?

Dear Dave,

I just received a formal job offer in law enforcement. I’m debt-free, single, and I’d like to move out of a roommate situation and into my own apartment. I’ll be starting out at $34,000 a year, then moving up to $38,000 after my probationary period. You have a rule that says to make sure rent or house payments are 25% or less of your take home pay. If I can find a place where utilities are included, do they figure into that amount? 

Josh

Dear Josh,

It’s really more of a guideline than a rule. The point of not letting your housing cost eat up more than 25% of your take home pay is to make sure you have money left over for other important things. It’s hard to save and invest for the future when a huge chunk of your money is eaten up by rent or a mortgage payment each month. But no, utilities are not part of the one-fourth of your take home pay guideline.

At this point, it doesn’t sound like you need anything fancy. Try to find a safe, quiet place to call home—somewhere you can relax and decompress when you’re off duty. And thanks for entering law enforcement. A lot of folks are leaving your line of work, and we need good men and women in that profession right now.

—Dave

* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

Dave Says February 4, 2020

By
Dave Ramsey
-
0

Tighten up!

Dear Dave,

I’m beginning to think we got in over our heads with our house. My wife and I make about $125,000 a year combined, but we’ve never been able to put anything aside for an emergency fund. Our mortgage payment is 35 percent of our take home pay each month. We have two young children, so we eat out a lot, but we have no debt other than our house. Do you think we should refinance our home?

Jeff

Dear Jeff,

You two are making good money, and you’re debt-free except for your home. You can’t tighten up your budget enough to save up an emergency fund? Stay out of restaurants, dude! There’s no law stating you have to eat out a lot just because there are kids in the house. I mean, you’ve got no emergency fund. That’s a pretty basic thing.

You guys need to get on a written, detailed plan, and start hitting your goals. I’m talking about a strict, monthly budget. Now, I’ll admit your mortgage payment isn’t exactly what I would’ve signed you up for. Your house payments, or rent, should be no more than 25 percent of your monthly take home pay. But your house payment isn’t what’s holding you two back. What’s holding you two back is the fact that you haven’t been willing to tighten up the finances in other areas of your life to offset biting off more than you could chew in terms of a home.

No, I wouldn’t refinance. You’re fairly close where the mortgage payments are concerned, so I think you can make it through this by looking at ways to increase your income and selling stuff you don’t need to build an emergency fund. You two have been smarter than some, but you’re really going to have to buckle down and rearrange your priorities to make this happen!

—Dave

Cash out my Roth IRA?

Dear Dave,

I have around $15,000 in a Roth IRA. I just recently started studying your advice, and I was wondering if it would be a good idea to cash it out and put the money toward debt.

Sarah

Dear Sarah,

I teach people to stop investing temporarily while they attack their debt. So, I wouldn’t add anything to it at this point, but the worst thing you could do is cash it out. If you do, taxes and penalties will steal a huge chunk of that cash. The only time I take money out of a retirement account to pay off debt is to avoid bankruptcy or foreclosure. 

Start working the Baby Steps from the beginning. Baby Step 1 is saving up $1,000 for a starter emergency fund. Baby Step 2 is paying off all debts from smallest to largest, except for your home, using the debt snowball method. This will free up a ton of money! Then you’re ready for Baby Step 3, which is increasing your beginner emergency fund to a fully-loaded emergency fund of three to six months of expenses.

Now you’re ready for Baby Step 4, which is 15 percent of your income going into retirement!

—Dave

* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover.The Dave Ramsey Show is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

12345Page 3 of 5

FOLLOW US

2,900FansLike
630FollowersFollow
264FollowersFollow
66SubscribersSubscribe
- Advertisement -

RECENT POSTS

The Waurika News Journal
Serving the citizens of Jefferson County, Oklahoma, and readers around the world.
Contact us: waurikanewsjournal@gmail.com
© Copyright 2017-2023 Waurika News Journal & The Ryan Leader