Intro
In this episode of “The Ramsey Show,” Megan seeks advice on a new job opportunity, while the hosts discuss the benefits of self-checkout and career decision-making. They also provide guidance on managing sporadic income, investing, and paying off debt. Tune in to learn valuable insights on money management and personal finance.
Main Takeaways
Managing Debt and Job Opportunities
- Megan is considering a new job opportunity with a salary increase but is apprehensive due to a new leader and fear of the unknown.
- Ken Coleman advises Megan to trust her gut and consider the ROI of the change before making a decision.
- Megan’s current household income is $148k, and they have $135k in consumer debt.
- George suggests that Megan and her husband would be better off selling stuff and making side hustle money to pay off debt rather than taking the new job opportunity.
- Megan has a large amount of debt, mainly from student loans.
- Ken suggests that Megan should get a second job and sell her cars to pay off the debt in 18 months.
- George and Ken agree that behavior change is necessary to get out of debt.
- The hosts encourage Megan to make sacrifices now while her kids are young, so she can be financially stable in the future.
- The hosts discuss Megan’s decision to turn down a promotion that would have added $14,000 to her salary.
- Cash value life insurance is a high-cost product with little to no return on investment, and term life insurance is a better option.
The Rise of Self-Checkout and Changing Retail Landscape
- A Kroger store in Franklin, Tennessee, has converted entirely to self-checkout, which is being touted as a new and fast-friendly experience.
- The hosts discuss their own experiences with self-checkout and the changing language used to describe retail workers.
- Customers prefer self-checkout for convenience and to avoid bagging.
- Staff will still be available for those who don’t want to or can’t use self-checkout.
- No one is being eliminated from their job due to self-checkout implementation.
- AI will eliminate certain types of jobs, but new jobs will also be created.
- The fear over AI is often exaggerated, and self-checkout implementation is not always consistent across stores.
- Some people want to avoid people, but there are those who like being taken care of and pampered.
- Self-checkout screens are now starting to ask for tips, which is getting out of control.
- Americans need to unite and stop tipping anybody other than a waiter or waitress, delivery person, or barber.
Career Decision-Making and Financial Planning
- When paying off debt, set an aggressive goal and try to beat that goal while still living your life.
- If selling an investment property, use the proceeds to pay off other debts and potentially have a savings plan.
- When considering multiple professional opportunities, always look at the long term first.
- Most people make professional decisions based on short-term benefits like pay bumps and titles.
- Short-term decisions can lead to positions that aren’t a good fit and don’t position for long-term success.
- Evaluate each opportunity and choose the one that best positions for long-term success and aligns with personal goals.
- Don’t make decisions based solely on short-term benefits.
- Long-term goals should be considered when making career decisions.
- Short-term benefits should not be the sole factor in decision making.
- Consider the potential for growth and advancement in each position.
- Money can wear off as a motivator; it’s important to enjoy the job and have purpose.
- Prioritize what is most important for your career goals and personal fulfillment.
- Progressing in your career requires digging into leadership roles and finding out if it’s what you really want.
- Natural progression doesn’t mean it’s the right progression.
- Don’t step into a leadership role just for the bigger paycheck; make sure you love it.
Managing Sporadic Income and Investing
- Create a prioritize spending plan based on the lowest estimate to manage sporadic income and pay off debts.
- Isaac is an 18-year-old college freshman who has taken a personal finance course and is following the Ramsey plan.
- He has a paid internship that will earn him $40,000 and will be working part-time while attending college with scholarships and a 529 plan.
- Isaac asks if he should start investing in a 401k while he is still in college and if he needs to include taxes in his budget.
- He plans to open a retirement plan with a financial advisor but is unsure if it is a 401k or an IRA.
- It is important to prioritize spending based on the lowest estimate to manage sporadic income and pay off debts.
- IRA is an individual retirement arrangement outside of an employer, with lower contribution limits but great for college students with income to contribute to a Roth IRA.
- Diversify and spread investments across four different types of mutual funds with the help of a financial advisor.
- Set aside 25% of income in a savings account for taxes if the employer doesn’t take out taxes, and consider quarterly estimated payments to the IRS for consistent side income.
- Singular focus should be paying off debt, sell items, get a side job, and stop going out to eat to clean up debt quickly.
- Prioritize spending based on the lowest estimate to manage sporadic income and pay off debts.
- Following the Ramsey plan is the best path to a peaceful financial life.
- Baby step one: $1,000 in a savings account, everything else goes towards consumer debt.
- Knock out the car loan by putting $9,500 towards it, then stack 3-6 months of expenses for an emergency fund.
- Rent somewhere else if needed; don’t jump into buying a house just because the lease is ending.
- Freeing up money from paying off debt will help reduce expenses and move forward towards saving for a house.
Summary
Managing Debt and Job Opportunities
Megan seeks guidance on whether to take a new job opportunity with a salary increase. Ken Coleman advises her to trust her gut and consider the ROI of the change. With a large amount of debt, Megan is advised to sell items, make side hustle money, and get a second job to pay it off. The hosts emphasize the importance of behavior change and making sacrifices now for future financial stability.
The Rise of Self-Checkout and Changing Retail Landscape
The hosts discuss the increasing popularity of self-checkout and its convenience for customers. While some fear job elimination due to AI, the hosts clarify that new jobs will also be created. They highlight the changing language used to describe retail workers and the need for Americans to rethink tipping practices. The hosts emphasize the varying preferences of individuals when it comes to self-checkout and the potential misuse of tipping screens.
Career Decision-Making and Financial Planning
The hosts stress the importance of considering long-term goals and personal fulfillment when making career decisions. They caution against solely focusing on short-term benefits like pay bumps and titles. Evaluating opportunities for growth and alignment with personal goals is essential. Progressing into leadership roles should be based on genuine interest rather than solely for financial gain.
Managing Sporadic Income and Investing
Isaac seeks advice on managing sporadic income while in college. The hosts recommend prioritizing spending based on the lowest estimate and focusing on paying off debts. They provide insights on investing in retirement plans like a 401k or an IRA, emphasizing the importance of diversification and seeking guidance from a financial advisor. The hosts also stress the need to set aside money for taxes and prioritize debt repayment using the Ramsey plan.
Conclusion
On “The Ramsey Show,” listeners gain valuable insights into managing debt, navigating job opportunities, embracing self-checkout, making career decisions, and handling sporadic income. The hosts emphasize the importance of behavior change, long-term planning, and prioritizing financial stability. By following the Ramsey plan, individuals can achieve a peaceful and prosperous financial life.
