Dave Ramsey Show

The Dave Ramsey Show

 

I have an unusual way of looking at the world. My wife, Sharon, says I’m weird, and truthfully I am weird. But there’s a reason. Starting from nothing, by the time I was 26 I had a net worth of a little over a million dollars. I was making $250,000 a year. That’s more than $20,000 a month net taxable income. I was really having fun. But 98 percent truth is a lie. That two percent can cause big problems, especially with $4 million in real estate. I had a lot of debt — a lot of short-term debt — and I’mthe idiot who signed up for the trip.

The short version of the story is that debt caused us, over the course of two and a half years of fighting it, to lose everything. We didn’t tell anyone what was going on, but if we had to do it again, we would learn from the wisdom of others who have been through it. We soon learned that we were not the only ones at the bottom. Barbie and Ken (you know, the couple who appearto be perfect—perfect clothes, perfect car, perfect house) are broke, and I don’t take financial advice from broke people anymore.

After losing everything, I went on a quest to find out how money really works, how I could get control of it and how I could have confidence in handling it. I read everything I could get my hands on. I interviewed older rich people, people who made money and kept it. That quest led me to a really, really uncomfortable place: my mirror. I came to realize that my money problems, worries and shortages largely began and ended with the person in my mirror. I also realized that if I could learn to manage the character I shaved with every morning, I would win with money.

I went back to my first love, real estate, to eat and to get out of debt. Along the way, I began another path—the path of helping others, literally millions of others, take the same quest to the mirror.

I formed The Lampo Group in 1992 to counsel folks hurting from the results of financial stress. I’ve paid the “stupid tax” (mistakes with dollar signs on the end) so hopefully some of you won’t have to. I wrote the book, Financial Peace, based on all that Sharon and I had learned, and I began selling it out of my car. With a friend of mine, I started a local radio call-in show called The Money Game, now nationally syndicated as The Dave Ramsey Show.

Our company history is full of landmarks including 6 best-sellers on the New York Times, Wall Street Journal and Publishers Weekly lists —and we’re not slowing down. The Lampo Group now has more than 400 team members and a variety of products and services to help you reach your financial goals.

Many companies define success based on the dollars coming in, but at The Lampo Group we define our success by the number of lives changed: listeners getting out of debt, readers taking their first Baby Step and saving $1,000, FPU graduates investing for their future. We learned early on that if we help enough people, the money will come. Our mission statement isn’t just lip service—it’s our mantra:

“The Lampo Group provides biblically based, common-sense education and empowerment that gives HOPE to everyone in every walk of life.”

Thank you for visiting our website! Wherever you are in the process — making the quest to your mirror, struggling to get your budget to work, paying off that last debt or debt-free and looking for places to give — let us know how we can help you take that next step in your money makeover. That’s what we’re here for!

Dave Ramsey
Dave Ramsey1 hour ago

The next big thing or just a passing fad?
Let's find out.

Passing pad
Maybe just a little 😉
Too easily hacked and manipulated.
All I need to know is the headlines that tell me that someone got rich quick then were broke really fast. Too risky.
Blockchain tech will change the world.
The danger with any crypto currency is that the federal government could release “fedcoin” at any time and pass a law that it is the only crypto currency that can be used to buy and sell goods in the United States.
Better to have some then not...
I am going to get some and start lending it out with interest :)
Cashless society
internet 2.0, don't sleep on the blockchain. It's going to change the world.
Two most important factors of crypto #DYOR and don’t invest more than you’re willing to lose! And #HODL
Im dabbleling, just dont invest any more than you can lose. Its crypto wild west right now.
Second that emotion. Not giving all my money to an “advisor” to make money on my gains and loses.
Blockchain technology isn’t new, it’s been used by banks for a while. The main benefit of crypto currency will be as a store of value while society becomes increasingly technology dependent and traditional fiat accelerates ever faster toward the math wall.
I guy tired to sell 50,000 Bitcoins back in 2010 for like $50 on eBay . I wish I would have bought those.
Hope this fad passes.
Hey Coe—- I thought this was an interesting article since we were talking about this a few weeks ago
No thank you.
Good read. I dabble in mining Ethereum, but I would invest little to no money directly in any crypto currency at this point. Block chain tech is going to change many things in the coming years, and one reason I play with ether is the way it can use the block chain to do other things than execute and verify transactions.
Such a wise, old elf.
This would be a don't!
Will definitely read this
Interesting.
Mainor Josh Bonilla look bro, you were asking about this.
What a scam
Dave Ramsey
Dave Ramsey4 hours ago

It’s about the marriage, NOT the ring.

Don't know why anyone would go into debt to buy a ring. That's like taking out a mortgage on your wife.
Don’t buy one. Diamond are not rare stones and the value is artificially determined. Buy a cheaper kind of stone for way less if you must. A lot of things such as rings and huge weddings were invented to make people spend money.
I don't remember what my husband spent on my rings. But I love them, and even all these years later, when I look at them I smile.
Or don't get married at all... Save a ton of money
When we started ring shopping we decided to check out reputable pawn shops. After months of looking we found a beautiful set for $1,000. A few months later I walked into Kay to have them clean my ring real quick and saw them advertising my exact ring for $7,500 and the matching band was $2,500 😲
Simple, buy what you can afford, and if it's not much, upgrade later. We did that, and my wife says she likes her smaller ring better, it doesn't get caught on as much stuff, LOL!
When my husband and I got married 44 years ago, he was in college. We purchased used wedding bands. I didn't have an engagement ring. It wasn't necessary. Stuff can't take the place of love and commitment!
Wanted to share our story; we took $60 to the craps tables in Shreveport LA, playing only the field with my fiance all night, we scored a significant winning (>$500) and we went straight to the jewelers. Been a wonderful marriage everyday since, and didn't cost us any debt. I guess its all how life lines it up for you. Truth be told, Ive tried to go back and win again, and it has never worked, some things are meant to be.
My wife, Heather Jeanne, and I had a fairly unconventional wedding. We didn’t do wedding rings. The ceremony and reception weren’t cheap, but it was a fraction of the average cost.
My future husband is taking great strides on getting out of debt and knew I would not want to hinder that just so I can have something shiny to show off. I’m very thankful to show off the beautiful ceramic ring he got me (and the fiancial savvy man who got it for me)!
We got our ring from an estate sale, paid $500 for it. It's dated from the 1950s and I absolutely love it. We're so glad we didn't spend several thousand dollars on a ring and started our marriage out without financial stress.
I designed the ring on the bottom but we couldn’t quite afford it before we got married so we opted for $15 tungsten bands to exchange at our wedding, pictured on top. I didn’t want diamonds and am allergic to gold. The black onyx palladium ring was not expensive at just over $1,000 just couldn’t pay cash for it before we got married. Our wedding was beautiful and intimate with just closest of friends. Total wedding costs: $250 we purchased my black onyx solitaire for our 3rd anniversary without a loan. I love both rings. The Tungsten is indestructible and great for when we are hiking camping or traveling.
My son bought a silver ring off of Amazon, and we put a diamond in it from his “inheritance from great grandma” stash. Cost of the ring casing and insertion of stone? About 55 bucks.
Skipped it. If my husband wanted a sure fire way for me NOT to marry him, showing up with a ring (or any jewelry) would have been it. Jewelry is a complete waste on me. I don't wear it. We did pay off a $20k student loan in our first 10 months of marriage though. Him being on board with that meant way more (to me).
When someone says their engagement ring is equivalent to a house deposit in front of everyone in the room... go figure 😆
6K for a ring!?! Mine was $1,500 and I honestly felt nervous wearing something that expensive on my finger. We now just wear the simple matching tungsten wedding bands we bought for $20 off Amazon.
Watch out for the sales people. They'll tell you that $5,000 is only entry level for as engagement ring and then go into their "excellent" financing plans.
$25 gold(en) band at the chapel, then spent $110 for a platinum-plated, cz eternity band from QVC - which I still wear 14 years later.
My husband bought my engagement ring for the American equivalent of 46 cents. And my wedding ring for under a thousand. I loved my 46 cent ring and wore it till it broke. 10 years. His cost me $100 with engravement. We just bought him a new one for $2, that fits better. Marriage is more than any ring.
My hubby insisted on at least one carat for my engagement ring and I thought it was silly. Now that I work in a bank I get nervous that if we get robbed my ring will go along with whatever cash I have to hand over.
I literally told my husband to spend enough money on a ring that just won't stain my finger green! I do not like jewelry and don't wear anything but my rings. My wedding set cost around $1,000 (more than what I wanted him to spend). His tungsten ring was $20. When I got pregnant I was nervous about swelling and didn't want my wedding rings to get stuck so we ordered a fake wedding set off Amazon for under $20. Been wearing the $20 set for 2 years now! Mostly because I got pregnant back to back and they are comfortable and I get complements on the fake set all the time :)
I'm wearing a $10 silicone ring and I wear my $200 tungsten ring on my necklace. Soon we will be paying cash for a replacement ring for my wife. First ring might have been 500, this one will probably be between one and two grand. No reason to pay more than what you can afford
Actually, the mark-up percentage on jewelry is much less than most consumer goods, and on loose diamonds it's razor-thin. Other than that, I'm mostly in line with the article. Estate pieces can definitely help with those working a tighter budget. Make sure that you ask about care for the ring and take your lifestyle activities into account. Take it from an appraiser/Graduate Gemologist. 😉
I was given a beautiful ring it wasnt a hardship but i dont even wear it anymore nor can i even find it at this point. its a shame really, it just got in the way too often, i couldnt reach in my pockets or wear gloves without messing with them to fit with out hurting. I dont know how many times i ended up scratching my kids with it (It wasnt even that big just the cut of the diamond just stuck out too far for me ) so i bought a 20 sterling silver band on amazon been wearing it almost 5 years now perfectly perfect i would have honestly been happy with nothing im not a fan of wearing jewelry to begin with.
I had mine made with gifts I accumulated throughout my life. I ended up with A $2,200 ring for the cost of labor.
Dave Ramsey
Dave Ramsey was live.7 hours ago

It's your life. It's your money. Get advice about BOTH live now on The Dave Ramsey Show!

Dave Ramsey
Here's some great advice: Credit cards are actually great when used responsibly. More consumer protections, more rewards, extended warranties, price protection, etc.
We paid off one of our vehicles today! I have the title in hand! Our other will be paid off in May. We are seeing the freedom in our future.
Opinions please. got approved for life insurance @$42 a month for $150k. Premium is high because im overweight. I’m losing weight, so should I accept it or wait the rest of the year and reapply?
Heather, I was in the same boat. We finally went to a Dave Ramsey simulcast in October or November. When he saw that, he was ready to do it. We are now attending FPU together.
Mark may I ask how much was your snowball payment the last few months of bs2? Whatever it was 1,200, 1,500, 2,000, use that to save efund. Should go fast.
I know people who have died because of distracted drivers. It's extremely ignorant to do blogging while driving. You're constantly taking your eyes, attention, and hands off the wheel.
Dave, How can I get my wife involved? She was all about paying off our car so we could stop my second job, but now she doesn't want to keep going. Any tips?
Thanks Rebekah! We are starting with baby step 1 and looks like we will be moving on to step 2 by the end of next month! Is there an "average" timeframe calc for amount of debt with your income?
i plan on starting a photography business, debt free. i want to know, is there any reason that starting a small business be a bad idea? Other than costing more than you are bringing in, for example.
Sierra. We have been paying off my husband's dental school loans. We had 17 "separate" loans from the same lender. We listed the loans out smallest to largest and are paying them off that way.
BBS 3 can take a year of more, and once achieved, the other steps do fall in line easier because the cash flow is available. They are separate steps, stay with them in order. :)
Erin- I would tell them they can issue him a card or he won’t travel or something. Tell them you don’t borrow money even if it gets reimbursed. That’s crazy they “won’t” issue him a card.
Sheneeta Blu Tunnel....I'm not sure Dave is real keen on groups recruiting here when they put "twists" on he plan he has worked hard to establish. You might call Dave and ask him about it.
Sell our house that is paid for to pay off student loans and back taxes? Or just make the payments on the loan/taxes? Stressed about this decision. The paid off mortgage was a gift from my parents.
Natalie Dave says no. But my friend is debt free except the house. Her husband doesn’t fight her but just lets her do what she want. She’s paying on house aggressively.
Crystal we were spending about 1000 a year in repairs keeping our older car on the road but still cheaper than say 6000 yr in car payments. Allowed us to save for better car.
Amanda, you aren't going to invest anything in that time. I would take the money and bank it and then apply it to your down payment. Do you have cash to pay for the house? What baby step are you on?
Kristi, how can he retire them? You still have debt to pay and 3-6 months of living expenses to save. He will need to wait to retire until he has completed the baby steps to get there.
I have stopped my own contributions, however I want to make sure what I do have in there currently is in my right investments. Currently in Large cap, small cap, midcap, international at 25% each.
You must call companies to close your credit card accounts. You don’t need a debt score (credit score) to buy a house. It is possible to get a mortgage by having it manually underwritten.
I was thinking of purchasing a home I cant rent in a few years to have it as additional income.... work on paying the rest of my debt during that time, then buy my dream home. What do you all think??
Lisa, you aren't finished with baby step 1. However, you will owe the IRS money and if you have the money in savings, yes pay it and whatever is left apply it toward your 1000k EF in baby step 1.
Amy yes, they are both subsidized and unsubidized, ones over 5K, 3k, 2k and lowest is 500. Monthly payment in 166 and I have 300 now to pay towards them since all my credit cards are gone.
Drillers come in to process the minerals (oil, gas), but you would still have rights to it. She has a percentage of ownership divided out with other sibblings, family.
Amanda, the baby steps work. If you will have no debt when you pay it off with your tax refund, then start baby step 3, and save 3-6 months of living expenses. How much do you make annually?
Dave Ramsey
Dave Ramsey10 hours ago

It's time to make a change.

Dave Ramsey Financial Peace University is the perfect place to start: https://goo.gl/WXd2eF
I am proud to say I paid off my mortgage last week at age 47!
Because 78% of households are under paid and over worked. In 1995 base income was $3k a month and rent was $ 800.00. Fast forward to 2018 base pay is $ 2000 a month and rent is $1500 on average. Gas was a $1.50 Fast forward today gas is $3.45. The cost of goods have gone up 75% while income has gone down 20%.
Mostly because the definition of necessity has changed. No one "needs" cable tv, cell phones, eating out, wifi etc.
Spend less than you make. Only buy what you have cash for and put 25% into stocks. 10% into crypto and you will be set no matter your income
While republicans fight against high wages and paying less taxes for their rich friends ... why Dave Ramsey , defend your beloved Trump plan on fuel tax on The common ppl while your friends pay less in taxes !!!! Extra money on my check while paying more for fuel doesn't work!!! Republicans not good for America only millinars
I don't see a problem. My bills are paid, I have $$ left over every month. So what of I'm not getting rich, I'm living and happy.
I had a talk with people about this, they say “I want to buy what I want when I want it.” “End of story” another said “I am horrible with money” so saving is just not something they want to do. As for us, we plan on going to Paris this July all paid for cash. I also have a change jar that will cash in too by the time we leave for extra money for whatever. Probably be about 200.00. I am very proud that I have planned and save for this trip that I have been dreaming of since I was a kid. Ahhh Paris eeek so excited ☺️😁 Thank you Mr Ramsey for all your memes for keeping me focused.
That was me 15 years ago, but now I actually have a retirement portfolio that doesn't even factor in Social Security! There isn't a better feeling in life than not worrying about money, and you don't have to be a millionaire to live like that either! The weirdest thing that happened to me over the last 15 years is now that I can pay cash for any car I want I don't want to part with my cash! Back when I couldn't afford a car payment I wanted every car I saw. I guess the key to financial security is not giving away all your money!
Throwing all our extra money at debt is really hard. Not going out for food with friends is hard But man, paying $2,100 a month towards college every month, when the minimum is $400, feels goooooooooood!!!!!
30 years old and our only debt is the house. Working on baby step 3 now. Just increased my retirement percentage a tad as well.
Dave, love you. Listened for years. You're one of the most entertaining people on radio of all time but...... some of the assertions can be off. Good growth stock mutual fund @ 8-10% consistently, I just don't see it. Buy & hold. Another misnomer to me. Say we have $10,000 in stocks, it goes down 80% I'd have $2000 left. Now when it goes up 80% I'd gain $1600 or have $3600. Seems like a loss of $6400 to me. Selling cars private party can be rife with disaster & seldom as easy as claimed (I would suggest very smart shopping/awesome purchase price to offset some of the enormous losses I've heard on your show!) You're a great guy & the world is a better place for those of us blessed to have listened to you. I just think of our situation. We are a family of 4 earning 30% over the median national income living in a spendy place (Helena, MT). We have no debt but there's no way I want to touch a house here. We have enough trouble saving with rent, electric ($250 a month & we keep it 58-63 in here!), retirement, medical, dental, groceries, clothes (shop at Goodwill, Dollar Tree or Wal-Mart exclusively) rental/car/life insurance, other misc bills (nothing extravagant no cable tv just broadband, netflix, hulu, cell bill @ $100/month), etc. It just seems there is very little left to try & "get ahead". I hate gambling & have very little faith in the stock market. I'm not sure what we do with the savings we have? We've lived in 11 states over the years (Mountain City, TN included!) & listened for years & years. A mountain of good advice & laughs in there. I do cringe when I think of the nothing we'd have without listening to you & my other financial favorite Clark Howard. Our family's "dynamic duo" of economics. Thank you Dave, God Bless you & family.
How can you afford $129 when you live pay check to pay check? My budget is so tight right now. I am going to work on my own to pay down cards...need a better car soon too.
I have applied your methods before, and I will again. Any tips on additional steps when a family tragedy changed your finances right a long with other things?
It’s because most people buy stuff they don’t need or pay with credit cards. A lot of people also buy houses that are out of their price range. Just because you get approved for do much doesn’t mean you need to spend that amount. I’m proud to say my husband and I at age 43 are retired and 100% debt free!!
I tell you what. Biblical principles of stewardship work. I took FPU in Jan 2016 with almost 23k in total debt. It's now Feb 2018 and I am debt free AND have a savings for the first time in my life. My checking plus savings equals $20k. It's amazing how the Lord can bless you when you properly steward HIS resources. It all belongs to Him.
The biggest change needed is drastic wage increases and better cost controls on tax driven public/private investments. So long as you are paying a private corporation that is beholden to investors and profit motives, we are screwed so long as there is no competition. Too many "free market" advocates don't get this; that the market is already controlled through synergy of the remaining players after M&As. Adam Smith made it clear to all early in Capitalism: The interest of the dealers [referring to stock owners, manufacturers, and merchants], however, in any particular branch of trade or manufacture, is always in some respects different from, and even opposite to, that of the public. To widen the market and to narrow the competition, is always the interest of the dealers. To widen the market may frequently be agreeable enough to the interest of the public; but to narrow the competition must always be against it, and can serve only to enable the dealers, by raising their profits above what they naturally would be, to levy, for their own benefit, and absurd tax upon the rest of their fellow-citizens.
today is the day i pay off my car loan in debt free, dave you been a great help. I watch and listen as much i can, thank you and god bless you
This is a dangerous way to sustain life, seriously. Those who save diligently while our economy is on cloud 9 will have an easier time surviving the next recession - when it arrives. "You can tell who's been skinny dipping when the tide goes out" - Warren Buffet
All it took for us was a few months of eating rice and beans. Ok we are other things but making a monthly menu, using what we had laying around the house and staying out of the stores really helped.
We have always paid cash for everything. Never had a credit card. We save up until we have enough for the item. We bought a new 2002 Trooper at 0% that was offered. We paid for it and started saving for a new car for the next 15 years. My husband is retired NAVY CHIEF. 22 YRS. SERVED. I was ARMY 3 YRS. Then married my NAVY husband. We saved our money. My parents paid cash for everything. No credit cards for them either.
We took FPU in March of 17 it has changed our lives. We are on the debt snowball but we have set an 8 year goal debt free, no mortgage, and fully funded emergency fund.
And I would be willing to bet (if I were a betting man) that they figure if they can afford the payment, they can afford the car, student loan, boat, house, etc. in which the bank is sucking up all their disposable income.
Technically we do. But it’s not in the sense Dave means here. We budget to zero every week, and when our envelopes are empty that’s it. The way my sinking funds, savings and auto payments (utilities) are set up we live paycheck to paycheck on purpose!
My husband and I lived on one salary for many years while our kids were young. We managed to pay off our house before I was forty. Last year, I graduated from college, and we decided to try saving my husband's salary and live on my teacher's salary. Both my husband and I drive high milage cars which are well over 10 years old. Sure, we could buy newer cars , but why? We are totally debt free and all five of our kids will graduate college debt free. The sacrifices we have made to get to this point were so worth it. While our friends were taking trips and buying new cars, we were living a Dave Ramsey life style. We now have kids that are following in our footsteps. My advice for people who are struggling is to be proud of all the baby steps they accomplish.
Dave Ramsey
Dave Ramsey1 day ago

It's easy to get caught up in the excitement before asking the most important question of all.

You can't afford any of it if you can't pay cash house cars boats motorcycles race cars etc etc
Higher Thinking Youniversity Investing a small amount into financial literacy up front can save thousands and thousands of dollars through well made decisions down the road! 🙌
This article doesn't mention taxes. Based on our income and where we live, if we bought the house this article says we can afford, we'd be broke once we figured in taxes etc. Your total monthly housing expense (mortgage principle, mortgage interest, taxes, homeowners insurance and HOA) should not exceed 25%, in my opinion. Beware the numbers in this article.
According to this no one in California that I know can afford their own home!😬
52k/year and I can’t afford a house... that’s the average take home pay of Americans.
So ridiculous. So I can only afford a $600 mortgage, yet I can qualify for an apartment and pay $1,200 a month, not including water and insurance. 😡
The house that can be paid for monthly on the lesser of two incomes. We kept our house because the mortgage could be met on a teacher pay.
2001. Land bought in 1999 and paid for. Plans drawn up and builder contacted to build the house of our dreams. Now it is bank approval time. Went to 3 different banks. All approved us for a $278,000 loan with no money down, land as collateral. We both had great jobs. Could afford it (or should we). A few days later we are out driving around, see a house being built. We investigate. It has everything we need. 1,800 Sq ft., 3 BR / 2 1/2 Baths, nice yard, great location. Over $100K less. It didn't take us 24 HRS to meet with the realtor. Made an offer. Sealed the deal. Still in the house happily, and still own our vacant land. Win! Win! Don't be house poor.
Getting pre-approved for our last house: Banker: You can afford to get twice this much for a house. Us: Um. Nope. Our current house: Us: Here's a check. (Only bank was the one our check was cut from!) 55K/year.
Do like we did!!! My first wife and i bought our first home for 64500 and kept it for 12 yrs !!! Remodeled it and sold it enough to pay off the loan and put 20 percent down on the next home!!! Dont over spend on a first home if your starting a family!!! Build the equity up and move up if need be!!!
One of the few financially smart decisions we've ever done. I did my research before we went to the bank to know how much we could afford. Of course, the bank tried to talk us into a loan for more. But, I knew what kind of monthly payment we were looking at if they talked us into what they wanted. It would have been 3X what we pay now in a mortgage. I told them we wanted to pay only as much in our mortgage as we had been in rent. Then, we were blessed to choose a house that had been on the market for a year. Our agent made sure the sellers paid for EVERY repair the house needed to the tune of $10000. Meaning they lost money on the sale. Their loss was our gain, and we have the house wanted. We also only put 2% down. That was 20 years ago. Have a good agent , do your homework and lower your standards.
How little of a home will meet your needs. Less is the way to more of what matters
There's no way a house in my area with that money!
Rich Wightman good read for when the time comes.
Emily Miller-Milne this might help finding how much you can afford.
Randy Rowland just a good read
Chandlar Birns good to know for the future!!
Taylor Cousin READ THIS!!!! ESP the checklist
Desirae Fulmer use the calculator to see what we can afford...
Lexi Hansen Matt Meuwissen
Jeni Behymer
Amanda
Jonathan Chowansky
Nick James
Matthew Bible