The Ramsey Show – Stop Losing Battles And Win The War With Your Budget

Intro

In this episode of “The Ramsey Show,” Dave Ramsey provides financial advice and guidance to callers on various topics, including building a house, investing, overcoming debt, and navigating divorce. He also shares success stories of individuals who have achieved financial freedom using his principles. Join Dave as he helps listeners take control of their finances and create a path to wealth and freedom.

Main Takeaways

Building a House

• Brian and his wife are discussing how much they should save ahead of time.
• Disagreement: Brian wants to save $100k, while his wife wants to start with $40k.
• Ramsey’s advice: Don’t build your house on family land without a plat that is deeded to you and the right to sell it someday if you all don’t want to live there anymore.
• Building a house will take close to a year.
• Watch out for scope creep as the numbers may change and the cost may double.
• Home starts on specs are down, but it’s a good time for Brian to find a builder and subs who will be available.
• Churchill Mortgage can help with construction loans and permanent mortgages.

Investing and Retirement

• Starting a financial plan and taking action is key to winning financially.
• Having a paid off house means most of your income can go toward investing.
• Investing for retirement as aggressively as possible is crucial.
• A Roth IRA is recommended over a 403B.
• Saving and investing $1,000 a month for 15 years can result in around $500,000 at retirement.
• Running different investment scenarios can help determine how much to invest.
• Roth IRA has better mutual fund options than a 403B.
• Investing $2,000 a month for 15 years can result in over a million dollars.

Personal Finance Education

• The Foundations in Personal Finance high school curriculum has been adopted by 48% of high schools and has been completed by 6 million students.
• More and more states are making personal finance mandatory, including Texas and Florida.
• Ramsey’s personal finance curriculum was adopted in Florida and is one of the approved curricula for high schools.
• Andrew completed the Dave Ramsey class and paid off all his debt, inspiring high school students that it can be done.
• Dave Ramsey’s financial education program is now being taught in many states and has been successful for almost 20 years.

Divorce and Financial Recovery

• Isaac, a caller on the Ramsey show, is going through his first divorce and seeking advice on starting over financially.
• Ramsey advises Isaac to create a game plan to save enough money to move out of his parents’ house and get an apartment.
• Temporary situation, make choices that will set us up for next 10 years.
• Financial picture: child support, alimony, house debt.
• Card swap: paying off debt, amicable agreement.
• Concerns about house payment and credit.
• Seeking legal advice and working with a lawyer is important during divorce proceedings.

Irregular Income and Budgeting

• Irregular income can be predictable over the course of a year or six months, but not over the course of one week.
• A prioritize spending plan can be created for irregular expenses.
• Set a fixed food budget that easily fits within the lowest expected income month.
• Coffee can be a budget line item, but it shouldn’t prevent achieving overall financial goals.
• Creating a budget and throwing extra money at the debt snowball is an easy fix.
• Separating business and personal finances is important.
• Running a business budget and giving oneself a weekly paycheck can help with organization.
• Paycheck planning can work well for irregular income.

Summary

Building a House

Brian and his wife are considering building a house and are discussing their budget. While Brian wants to save $100k before starting, his wife suggests starting with $40k. Ramsey advises against building on family land without proper documentation and warns about scope creep and changing costs. He recommends finding a builder and exploring construction loans through Churchill Mortgage.

Investing and Retirement

Ramsey emphasizes the importance of starting a financial plan and aggressively investing for retirement. He recommends a Roth IRA over a 403B and provides examples of how saving and investing $1,000 or $2,000 a month for 15 years can lead to significant returns. Ramsey highlights the benefits of having a paid-off house, which allows for more income to be directed towards investments.

Personal Finance Education

Ramsey discusses the success of his personal finance curriculum, which has been adopted by many high schools and has empowered millions of students to take control of their finances. He shares stories of individuals who have completed his program and achieved debt freedom, inspiring others to follow suit. Ramsey highlights the increasing trend of making personal finance education mandatory in various states.

Divorce and Financial Recovery

Ramsey provides advice to Isaac, who is going through a divorce. He encourages Isaac to create a game plan to save money and establish financial stability. Ramsey emphasizes the importance of seeking legal advice and working with a lawyer during divorce proceedings. He addresses concerns about child support, alimony, and house debt, offering guidance on managing finances during this challenging time.

Irregular Income and Budgeting

Ramsey discusses the challenges of managing irregular income and provides strategies for budgeting. He recommends creating a prioritize spending plan and setting a fixed food budget based on the lowest expected income month. Ramsey emphasizes the importance of separating business and personal finances, running a business budget, and utilizing paycheck planning for irregular income.

Conclusion

On “The Ramsey Show,” Dave Ramsey provides valuable financial advice on topics ranging from building a house and investing to divorce and irregular income. He emphasizes the importance of taking control of one’s finances, seeking professional guidance when needed, and making intentional choices to achieve financial freedom. By following Ramsey’s principles, individuals can create a path to wealth, overcome debt, and build a secure future.