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 Ramsey8 hours ago

Do the math and make a SMART decision.

If you're ready to buy or need to refinance, get in touch with the only company I trust to walk alongside you through the process: https://goo.gl/tT7dLj

We had a 30 yr mortgage, and it's a good thing because we were a one income homeschooling family and my husband was laid off twice while we were paying it off. It was good to have the lower min payments when he was on unemployment. And the rest of the time we paid double payments, plus put a good part of our tax return towards it, and it was paid off in less than 15 years with never a missed payment.
If you have a 30year with a decent interest rate just pay on it like it's a 15 year and save the refinance cost.
15 year fixed all the way! Our was-to-be lender (the lender of our new construction home) tried to bully us 2 weeks until closing into a 30 year loan. Told us there was no way. My husband was so close to giving in, in fear of losing the house. I said NO WAY. Our #1 was a 15 year fixed. We found another lender and closed in 2 weeks. We pay extra and will have it paid off in 8 years... Half way there. Difference between a 15 and 30 year mortgage was $400 for us.
I did a 30 year but had it amortized on 15 yrs so if something hapens (job loss, etc)i can pay the 30 payment for a few months until i get back on my feet)
Except the $600/month less per month with the 30yr you invested in the market making 12% a year compounded for 15 years Heavily outweighs your pitch
Why not just take a 30yr and every 4th payment make an extra payment. Wouldn’t it almost work out to be the same? The difference is if a life changing event happens you have $550 less a month payment you owe. Just a thought?
This expects that you have a fully funded emergency fund so you can’t come up with lame excuses like oh I went with a 30 year to avoid a lay off or some other lazy crappy excuse. This in a vacuum creates questions but when you follow Daves plan the 15 year fixed rate mortgage is the only applicable and correct answer.
The monthly payment is over 500 so one would had to buy a less expensive house! We did 15 year and purchased a home less than our budget.. do not get in a mortgage poor situation
This does not apply to everyone. Sure if you are making millions every year telling people how they should manage their money it works. When we came across the perfect home for our family we jumped on it. We had 2 children and a 3rd on the way. I had also just started a new job and my wife worked part time. I went with a 30yr mortgage to ensure I would be able to make the payments. Fast forward 8 years and now my yearly salary has doubled. I now pay extra every time I make a payment and our home should be paid off in about the same time as a 15 year mortgage.
Lol Dave's advice is awesome for rednecks, but $250k USD won't get you much outside of the Bible Belt. Still good principles though.
I read in a book to use the 30 year mortgage as a base and pay off extra then that way if you get unemployed or something happens you can pay the minimum without getting into trouble with the banks.
Well, you could potentially become a millionaire if you went with 30-year. Let me explain. Mr. Dave Ramsey, if I'm wrong, please comment. Otherwise, I can only assume my theory below is correct. Let's say you can afford $1871.85/month but you've decided to go with 30-year. That means each month you have $566.22 in your pocket. Instead of spending that money on a new car, invest it through an investment firm, like etrade.com or vanguard.com. After 15 years with 10.12% annual return rate, you will have $217,947.32. That is $88,000 more than $130,000. If you factor in mortgage interest deductibles for the extra 15 years, you'll get even more than $88,000. Take that and contribute it to your investment account also to speed it up if you want. If you continue to contribute $566.22/month to your investment account for a total of 30 years, you will have $1,143,370.43. Furthermore, by keeping up the contribution until you retire or for a total of 40 years, you'll have $3.1 million in your investment account. In summary, if you go with 30-year and are disciplined, you will become a millionaire and completely own your house after 30 years. Some information below for reference: Average annual return rate: https://petetheplanner.com/what-rate-of-return-should-you-expect-on-your-investments/ Compound Interest Calculator: https://www.investor.gov/additional-resources/free-financial-planning-tools/compound-interest-calculator
We have a 15 year mortgage and set up biweekly payments, which knocked 20 months off our loan, essentially turning it into a 13 year mortgage. We’re living on one income until our children are school aged so we can only toss an extra $50 or so a month on there right now, but our intention is to knock it out as fast as we can once our kids are in school and I go back to work. The house is our only debt and we are dying to get that payment out of our monthly budget!
For me, living in a good safe neighborhood in a house that is in least good shape (if not excellent shape) outweighs the terms of a loan. If I was going for a 15 year loan with my payments no more than 25% of my take home pay, I probably wouldn't be living in the type of house I want, and the neighborhood may not be so good. Sometimes your perfect place isn't always the cheapest, but it needs to be something you LOVE and can afford without much strain on your monthly budget.
Well, we locked into a 20-yr mortgage about 8 yrs ago, so it's probably not worth the closing costs and fees to refinance to a 15-yr.
Wow. It’s the biggest scam in history. And people keep doing it. Imagine $800,000 mortgage. I always tell people a 30 year mortgage doubles the price of home. 1/2 to home 1/2 to bank. So how it that a INVESTMENT. LOL
So is this math putting 20% down and financing $250k or is it putting $50k down and financing $200k with payments around $1500? It does pay doing a 15 but most average Americans these days can't really do a 15 with high costs of just living.
Just pay off the loan early. You also have the flexibility if you need the extra cash one month to pay the normal payment. And other months you may be able to pay more.
I'd like to see side by side numbers of the 30 year, but paid off in 15 years. I would budget for 15 years but want a little cushion since my pay is inconsistent in my field.
So if you are already in a 30 year is it better to refinance or just pay the extra towards principal?
What if you bought the house on a 30 year fixed knowing it would end up as a rental property using OPM to pay down the mortgage; would you still recommend a 15 year fixed?
I literally used your mortgage calculator for that amount today. Though the interest rates were below 4%.
What are your thoughts if you take the 30 year note, to take advantage of that lower monthly payment...BUT do extra payments monthly and pay if off on 15 or less years?
Who in their right mind wants to pay all that interest over the life of the loan. Get rid of this financial cancer!
Only two things i disagree with Dave on. This is one of them. I prefer to get 30 year with a good interest rate and pay on it like a 15 year. If a large unforeseen expense comes up then it gives you the flexibility to make a lower mortgage payment that month. In areas like where i live, the property taxes are getting out of control, and many people are losing their homes simply because they cannot afford the property, especially on a 15 year payment.
Dave Ramsey
Dave Ramsey14 hours ago

A person with an experience is not at the mercy of someone with an opinion.

Yep. Its why I don't take financial advice from those with debt. Marriage advice from those divorced. Nor Parenting advice from people with no kids.
Nor is a person with experience infallible against those with an opinion.
So a person who has never been in debt... can not say debt is bad.. got it.
True, but in this world the person with experience can't get a job interview without an education as well.
Until politicians enter the equation.
You may have your own opinion but not your own facts.
“The best experience is someone else’s.” - Mark Twain
Except, the person w/ an opinion may also have experience. This statement is flawed in that if a person feels they are at the "mercy" of another, that is their problem. You control how you react to any situation or life event.
I have experience and opinions, opinions of experiences, and experiences of opinions. I have no mercy on myself.
This is way to heavy for me. 🤪
Would love to know the story behind this post. I’m on the fence. 🙂
unless you count working for someone else
Unless you're a teacher.
Correct. My opinions show no mercy.
Except for a teacher. 😞
Deep
My favorite saying!!!!
True
Love this!!
Amen!
Hallelujah
Well said!
True
Amen!
That's good.
Dave Ramsey
Dave Ramsey18 hours ago

What's Dave got to say about used car warranties?

Find out: https://goo.gl/3R938y

It really depends. Modern cars are mostly electrical with upgrades and conveniences and those in the automotive industry know that electrical is the first thing to go on a car. I lucked out when I ultimately decided to purchase an extended warranty on my used car. Almost all of the electronics went bad, the electric power steering rack and steering ecu in particular(It broke twice). The bill(s) without insurance was over 6k each time. The warranty covered everything. It even covered the navigation system when it went out and the water pump, all repairs over 1k. Not to mention all the other miscellaneous things that broke and were covered. Nothing came out of pocket for over 15k in repairs. I'm sure the dealer that sold me the warranty was kicking themselves in the butt. 🤣😂 I can't say everyone will have this happen, but I'm glad I made the decision to purchase the warranty. I'm sure if nothing had broken, it would be a money waster for sure.
Unfortunately we have already made this mistake and are now paying on a warranty for the life of the loan that is doing is no good. It saves you money momentarily but in the long run will cost you a lot. We will never make this mistake again!! Thanks Dave for all of your wonderful advice. Because of you we are doing much better financially. I wish someone had pointed me towards your radio program a long time ago when I was younger. Fortunately I am only 33 and, God willing, still have plenty of time to turn things around for a better future. #livingandlearning
Sorry, but that picture is of a VW. Anyone would be crazy to drive a VW without a warranty. I have 14 years of experience on that subject unfortunately. VW ownership is what drove me to Dave Ramsey's teachings in the first place!
We went against Dave on our last purchase and so glad we did! It was a couple thousand on top of our purchase price and as it turns out we used it 3-4 times in the time frame it was extended for. We paid the loan off in 18 months too (started heavy in the baby steps just after purchase) and those repairs would have set up back thousands of dollars more than our warranty cost.
Multiple cars in my lifetime and only $1200 in repairs. Warranty extensions would have cost me well over that in 25 years time.
We bought a 2 yr old Jeep Grand Cherokee early in our marriage. We were so glad we bought the extended warranty! It paid for itself twice over. When we dumped the piece of junk the transmission was going out (80k miles). We decided it wasn’t worth the fight with the company to get it covered and replaced it with a Toyota (cash paid). I had to threaten to take them to court twice since they denied valid claims. The last repair they claimed they had no record of our warranty paperwork and tried to get me to send the original back to them! 😂. I sent them a notorized copy via registered US mail. At one point I had to write the parent corporation to complain (Daimler Chrysler). Amazingly the claim was honored after they stated they couldn’t do anything about individual dealerships. Our final interaction was when the dealership claimed that the warranty was a mistake and shouldn’t have been written for the length of time and mileage on the contract! I offered to return the car and they could refund the purchase price if they wanted to negate the contract. They declined the offer. Lesson learned - no more jeeps for us!
I got a great extended warranty on my 2017 Nissan Rogue with my credit union 8 years or 125k miles ..covers pretty much everything no deductible and it ony cost just under $1800 ...i paid cash for it separately .I did not roll it into my monthly payment..I think it's a great deal ...I don't have to worry about repairs ... each to their own but I don't see an issue with extended warranties anything can happen and it can be very costly when it comes to car repairs...I prefer paying for piece of mind
All my vehicles have an extended warranty. It’s says that if something goes wrong the money I’ve saved over the years with no payments that I can fix it for way less than what years of payments would have cost. 😁
I have been needing an answer to this question, I am skeptical.. but my husband has a 06 Nissan Titan and a warranty was offered to him for 3k to be paid in 24 monthly payments..
Even better, don't buy a car you lazy people. Get out and walk, or if you can't, then get a donkey that you can feed with grass alongside the road instead of buying fuel.
Extended warranties are only for the benefit of the dealership. I thought everyone knew that? I guess not.
I like to get the warranty for about 30 days, can usually tell if something is wrong in that time frame, then cancel the warranty and get the money back.
Got one two cars back, talked into by dealer on used car, paid cash. Waste of money. It depends on the car.
Guess it all depends... gotta do your homeowork. I've had my CV joints and a turbo fixed on Buick Regal paying only a 100 deductable. saved me 4 grand in repairs
I highly recommend a CarMax extended warranty. It’s been useful in every possible way! It’s the only extended warranty I’d ever buy again.
we just bought a used car cash, and the dealership tried to sell us nearly $7000 worth of warranties on a $15000 car. haha nope!
Most of the time I would agree with Dave on this except for the Mopar care plan. Bought a 2012 grand Cherokee and bought the Max Care plan 1500$. Within 7 years ice had over 4k dollars in repairs. Covered with a free rental care each time. On my next jeep, I will get another plan.
Buy ether a Honda or Toyota because parts are cheap on eBay new or used everyday.
Assuming you have a used VW as pictured I would spring for the warranty, not so much on other cars.
If you buy a Chevy expect many recalls and repairs.
Clark Howard says if you have to, buy the manufacturer's own extended warranty.
Extended warranty’s are not for your favor. If that were true they would be losing money on you.
It’s your own fault if you’re not asking for the longest term and mileage warranty. They can pay themselves off in as little as one repair in the shop or 2. Do you want a fixed payment or variable?
As a mechanic I can tell you there a huge rip off. They don't cover wear items and alot of them have a dollar limit to how much they cover if you do your research and make an educated purchase of a car you shouldn't be paying much for repairs. Now if you buy a new car and you purchase a manufacturer extended warranty thats way different.
Seriously? Have you MET Dave? 😀😀
Dave Ramsey
Dave Ramsey shared The Rachel Cruze Show's video.1 day ago

If you want to cut down on spending and still have a life you enjoy, check out this EXCELLENT advice from Rachel Cruze.

Dave Ramsey
The Rachel Cruze Show
A few small financial decisions can help you start spending less and saving more, while still loving your life!
Dave Ramsey Details on everything mentioned in this episode: https://goo.gl/ht8dFj
Higher Thinking Youniversity Don’t compare your lifestyle to that of others. Chances are they can’t even afford their own lifestyle. Compare your lifestyle to your means and base your decisions there. There will always be people who do well on less than 30k income and there will always be those who still do poorly despite a 250k+ income - you just need to decide which way you would like to live! 💥
It would be more believable if the decor matched someone who was on a budget.
WOW LONG WINDED, the point would be nice
Given rising interest rates (which will keep rising) it might make better sense just to pay ahead a 30 year depending upon the spread between one's current rate and a refi especially taking into account the front end cost of a new loan. 2.5% is close to inflation. One could get a better return investing that extra money.
Just an idea: Maybe you can do a segment on how to save money in the "pet" budget. #askrachel
Great episode!
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Dave Ramsey
Dave Ramsey1 day ago

"You can’t throw caution to the wind and hope it all works out by the time you retire. It’s time to get real with your goals." – Chris Hogan

25 years? That too long.
I’d like to see and learn about a 5 year plan.
I wish I read this when I was born...lol!
My 18 year old daughter just started her 401k yesterday at work!!
Estreya Fernandez this is it.
Yeah an d what if the employer doesn't do a match with retirement?? I see a lot of articles that talk about an employer match...
If your self employed I’d recommend sep before your profits are taxed can put up to 25% in or a maximum of $275,000 for 2018, then after the profits are taxed maximizing Roth IRA. Hope this helps other entrepreneurs building their dreams
I got 5 years to get my income up 37,000 to be at “peak” level lol
Life saving acts to give you real life savings. Love it!
Bury you w your money😉
Kendra, how are you planning for retirement? 😉
Patbusickhodges
F
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Hannah Krout your young enough for this 😉
Bailey :)
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Breanne Baker. This is what I was talking about
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