The Ramsey Show – I Dare You To Put Your Credit Card Away for 90 Days (Hour 3)

Intro

In this episode of “The Ramsey Show,” Dave Ramsey discusses the importance of living a debt-free life and the potential dangers of using credit cards. He also provides advice on making financial decisions, finding stability in a job, and dealing with big life changes. The episode also features a discussion on buying burial plots during a traumatic time and the challenges of grieving while facing financial difficulties. Additionally, George Kamel shares insights on pursuing a PhD and finding the right career path.

Main Takeaways

Dave Ramsey’s Debt-Free Living Strategy

• Dave Ramsey’s debt-free living strategy recommends not having a credit card at all.
• Using a credit card almost daily breaks this rule.

Credit Card Usage and Financial Impact

• The Motley Fool recently published an article titled “I Break This Dave Ramsey Rule Every Day, and I’m Starting to Rethink It,” discussing the author’s habit of using a credit card for nearly all expenses and the potential dangers of not paying attention to credit card balances.
• The article also includes a pitch for a credit card with a 0% intro APR and high cash back rates, which some may find contradictory.
• Spending more on Amazon doesn’t make you financially better off.
• Credit card rewards are not as lucrative as they seem.
• Credit card companies benefit from the less educated, poor, and minority areas.
• Credit card companies make most of their revenue from interest fees.
• Retailers pass on swipe fees to consumers, making products more expensive.

Financial Decision-Making and Job Stability

• Building a business that helps customers win is key for longevity.
• Credit card usage can change how people spend money.
• Consider other options before making a decision.
• Look for stability and integrity in a job.
• Hold on to money and consider saving for the future.
• Relocating for a job offer can result in big life changes, including selling a home and moving away from family.
• The cost of living in the new location may be higher than the pay increase, and relocation expenses are unclear.
• It’s important to carefully consider the job offer and not feel pressured or bullied into making a decision.
• Have a clear deadline for making a decision and consider saving for the future, but not for an indefinite amount of time.
• Be cautious of big companies that may not fully disclose the situation and may use pressure tactics to make employees resign.
• Corporate culture in the US is destroying families, workers, and companies for the sake of a quarterly stock price.
• Big companies may pressure employees to resign without fully disclosing the situation.
• Self-doubt is common in these situations, but it’s important to have a support system and not blame oneself.

Dealing with Grief and Financial Difficulties

• A couple is looking to buy burial plots for their youngest son who recently passed away.
• The burial plots are expensive and they are currently in baby step three.
• The financial advisor advises against making big financial decisions during traumatic times.
• The advisor reminds the father that their son is at peace and with them in their hearts.
• The advisor suggests considering family legacy but also urges caution in making emotional decisions.
• The funeral home cannot hold plots, but if one is bought, they can hold the other one for a short period of time.
• Each plot costs $1000, and the total cost for both plots is $2000.
• It is recommended to buy the plots now if they have the funds available in their emergency fund.
• It is important to balance emotional decisions with financial stability and security.
• A suggestion is made to channel the energy and angst into refilling the emergency fund in honor of their little boy.
• The speaker is grieving the loss of their child and facing financial difficulties.
• They have two other children and are worried about not being able to provide for them.
• The speaker’s friends suggest taking time before making any big financial decisions.
• A suggestion is made to channel the energy and angst into refilling the emergency fund in honor of their little boy.

Pursuing a PhD and Career Path

• George Kamel hosts a podcast where he simplifies complex financial topics, busts viral money myths, and talks with real-life millionaires.
• Doctoral degrees can pay you, but it’s not a guarantee you’ll get sponsorship.
• Finding a house in a neighborhood analogy: don’t buy more than you can afford.
• Consider getting work experience before pursuing a PhD.
• An extra year on your dissertation may not matter in the long run.
• Cashflowing a PhD is possible if you have an employer who will help pay for it.
• Starting salary for a PhD graduate in a big company is around $350k.
• Quantum computing is a field with high earning potential.
• Taking out loans for a PhD is not recommended, but using emergency funds or cash on hand is okay.
• Getting creative and taking a pause may help in finding the best path towards a debt-free PhD.
• Consider other career options that may pay well and align with your skills and interests.
• Don’t fall into the sunk cost fallacy and feel like you have to stick with your current path.
• It’s okay to pivot your career multiple times before finding the right fit.
• Talk to people who are in the career you want to be in to gain insights and advice.

Summary

Living a Debt-Free Life and Credit Card Usage

Dave Ramsey’s debt-free living strategy emphasizes avoiding credit cards altogether, as using them regularly goes against this rule. The Motley Fool article challenges this strategy, discussing the author’s reliance on credit cards for daily expenses and the potential dangers of not keeping track of credit card balances. It also highlights the contradictory nature of the article, which promotes a credit card with attractive rewards. The discussion sheds light on the financial impact of credit card usage, including the higher costs borne by less educated, poor, and minority areas. Credit card companies primarily generate revenue from interest fees, and retailers pass on swipe fees to consumers, increasing product prices. It becomes clear that credit card rewards may not be as lucrative as they seem, and spending more on platforms like Amazon doesn’t lead to improved financial well-being.

Financial Decision-Making and Job Stability

Dave Ramsey emphasizes the importance of building a business that prioritizes customer success to ensure long-term viability. Credit card usage can influence spending habits, making it crucial to consider alternative options before making financial decisions. When it comes to job offers, stability and integrity should be key considerations, as relocating for a new job can bring significant life changes and uncertainties. It’s essential to carefully evaluate the cost of living in the new location, ensuring that any pay increase compensates for potential higher expenses. Employees should not feel pressured or bullied into making decisions and should have clear deadlines for making choices. Dave Ramsey also cautions against big companies that may not fully disclose the situation and resort to pressure tactics to make employees resign. The negative impact of corporate culture on families, workers, and companies is highlighted, emphasizing the need for a supportive environment and avoiding self-blame in challenging situations.

Dealing with Grief and Financial Difficulties

During a difficult time of grieving the loss of a child, a couple seeks advice on buying burial plots. The financial advisor advises against making significant financial decisions during traumatic times. While considering the emotional aspect of preserving family legacy, caution is urged to prevent impulsive and potentially detrimental choices. The cost of the burial plots is $2000, and it is recommended to buy them if the funds are available in the couple’s emergency fund. Balancing emotional decisions with financial stability is crucial, and the suggestion to channel energy into refilling the emergency fund in honor of their child provides a constructive approach. The speaker’s worries about providing for their other children are addressed, with friends suggesting taking time before making any major financial decisions.

Pursuing a PhD and Career Path

George Kamel’s podcast delves into financial topics, including pursuing a PhD and finding the right career path. While doctoral degrees can lead to higher earnings, sponsorship is not guaranteed. The analogy of finding a house in a neighborhood emphasizes the importance of not exceeding one’s financial means. Gaining work experience before pursuing a PhD is recommended, and the additional year spent on a dissertation may not significantly impact long-term outcomes. Cash-flowing a PhD is possible with employer support, and certain fields like quantum computing offer high earning potential. Taking out loans for a PhD is discouraged, but using emergency funds or available cash is acceptable. Getting creative and exploring various career options that align with skills and interests is encouraged, without succumbing to the sunk cost fallacy. Seeking advice from professionals in desired career paths can provide valuable insights.

Conclusion

In this episode of “The Ramsey Show,” Dave Ramsey provides valuable insights on living a debt-free life, the impact of credit card usage, making sound financial decisions, finding job stability, dealing with grief and financial difficulties, and pursuing a PhD and career path. Listeners are encouraged to prioritize financial stability, consider the long-term consequences of credit card usage, and make informed decisions. It is crucial to strike a balance between emotional and financial considerations, seek support during challenging times, and explore various career options to find the right fit. By following these principles, individuals can navigate their financial journeys with confidence and achieve long-term success.