Intro
In this episode of “The Ramsey Show,” hosts Ken Coleman and George Campbell help listeners win in their life, including their money, work, and relationships. They discuss various topics such as handling significant home repairs, consumer spending during football season, the dangers of going into debt for fandom, and making wise financial decisions. They also provide advice on career choices, debt management, and building a solid financial foundation. Listeners can expect engaging conversations and valuable insights.
Main Takeaways
Handling Home Repairs and Debt
- A caller named Courtney from Raleigh, NC discusses a significant home repair due to fraud, costing $270,000.
- Courtney and her husband cash flowed $150,000 and took out loans to cover the rest.
- They have $54,000 in consumer debt, a $12,000 401k loan, and a $97,000 home equity loan on top of their $350,000 mortgage.
- The realtor believes they can sell the house for $600,000, which would eliminate all their debt and leave them with some extra money.
- Selling the house is option A, not a last-ditch effort.
- The hardest part will be freeing themselves of guilt, shame, sunk cost fallacy, etc.
- The numbers can be dealt with, they can clear their debt and walk away with probably 50 grand.
- The house can no longer give them what they want.
- The fraud happened because flippers did dishonest work on the property.
- Some issues were discovered only during renovations, not visible during inspection.
Consumer Spending during Football Season
- Ken Coleman and George Campbell discuss a survey on consumer spending during football season.
- Football fans expect to spend an average of $743 throughout the 2023 season.
- 12% of fans are likely to go into debt to finance their football fandom.
- 20% of fans are willing to take on $5,000 in debt to see their team play in a championship game.
- 33% of fans would eliminate their outstanding debt if their favorite NFL team doesn’t win a championship for another 20 years.
- Fans are making fanatical decisions that are hurting them financially.
- The love of the game is driving terrible decisions.
- The mental gymnastics used to justify going into debt make sense to fans because they want to be able to say they were at the game.
- Going into debt for $1,000 on your credit card for sports events is financially dumb.
- If you are in debt, you need to prioritize and not sign up for expensive sports packages or throw parties.
Financial Advice and Career Choices
- Ken Coleman and George Campbell are available for free phone calls to discuss work and money-related questions.
- They have been friends for over a decade and have different areas of expertise.
- Cashing out a brokerage account and an employee stock purchase account can help pay off debts faster.
- The momentum of paying off debts beats out the short-term capital gains taxes.
- Caller is considering doing a 401k loan to pay off debt in collections.
- Caller is worried that the debt in collections will prevent him from getting a job.
- Dave advises against taking out a 401k loan and recommends being honest with the employer about the debt.
- Caller has a new job that pays $90,000 and an additional $20,000 after clearance.
- Dave suggests prioritizing paying off the debt in collections and making minimum payments on other consumer debt.
Exploring Passion and Building a Solid Financial Foundation
- The trucking industry needs reliable drivers and offers a massive opportunity for those looking for a well-paying job.
- Getting quality sleep is crucial for physical, emotional, and relational health, and DreamCloud mattresses offer soft, cool, and supportive sleep.
- New listeners can catch up on financial jargon and the baby steps taught by Ramsey Solutions by clicking on the “Get Started” button on their website.
- Being hit by a drunk driver can cause unexpected financial setbacks, but having a solid financial foundation can help in situations like this.
- When buying a car, the parameters for anything with motors should be no more than 50% of your income, including boats, toys, cars, etc.
- Splitting your savings into separate funds with specific names can help you spend without feeling bad.
- Do a test drive and get the inspection done before purchasing a car.
- Research ahead of time and know more about the car than the dealer does.
Summary
Handling Home Repairs and Debt
Courtney from Raleigh, NC shares her story of dealing with significant home repairs due to fraud, which cost her and her husband $270,000. They cash flowed a portion of the repairs and took out loans to cover the rest, leaving them with $54,000 in consumer debt, a $12,000 401k loan, and a $97,000 home equity loan on top of their $350,000 mortgage. The realtor believes they can sell the house for $600,000, which would eliminate all their debt and leave them with some extra money. However, the hardest part for Courtney and her husband will be freeing themselves from guilt, shame, and the sunk cost fallacy associated with the house. Despite the financial challenges, selling the house is seen as a viable option to clear their debt and move forward.
Consumer Spending during Football Season
Ken Coleman and George Campbell discuss the survey findings on consumer spending during football season. They highlight the fanatical decisions fans make, such as going into debt to finance their football fandom or spending significant amounts to attend championship games. The hosts emphasize the importance of prioritizing financial stability and not going into debt for sports events. They encourage listeners to budget for such expenses and make wise financial choices.
Financial Advice and Career Choices
Ken Coleman and George Campbell offer financial advice and career guidance to callers. They discuss options for paying off debts, including cashing out brokerage accounts and employee stock purchase accounts. They also advise against taking out a 401k loan to pay off debt in collections and recommend being honest with employers about financial situations. The hosts emphasize the importance of building a solid financial foundation and making intentional decisions to achieve financial freedom.
Exploring Passion and Building a Solid Financial Foundation
The hosts discuss opportunities in the trucking industry and the importance of getting quality sleep for overall well-being. They also provide tips for buying a car within one’s financial means and suggest splitting savings into separate funds for different purposes. The hosts emphasize the value of research and knowledge when making financial decisions. They highlight the importance of having a solid financial foundation to navigate unexpected situations and pursue passions.
Conclusion
In this episode of “The Ramsey Show,” Ken Coleman and George Campbell address various financial topics, including handling home repairs, consumer spending during football season, financial advice, and building a solid financial foundation. Listeners are encouraged to make wise financial choices, prioritize debt repayment, and pursue their passions while building a solid financial future. The hosts provide valuable insights and practical advice to help listeners achieve financial freedom and success.
