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The Best Calls of the Year So Far (Part 3)

The Ramsey Show

Thu Sep 28 2023



The Best Calls of the Year So Far (Part 3):

  • Caller is considering allowing finances to stop their wedding plans due to increased expenses, particularly health coverage, after getting married.
  • The couple's household income is $62,000 a year.
  • Dave and John advise against letting finances be a reason to not get married, emphasizing the importance of emotional and relational commitment in marriage.
  • They discuss the benefits of being fully committed in a marriage and how it can lead to financial success and overall well-being.
  • They mention that research shows statistically that married couples have a higher probability of building wealth compared to singles or cohabitating couples.
  • Dave shares personal experiences from his years of helping people with money management and highlights the positive outcomes he has observed in fully committed marriages.
  • They also touch on the impact of past experiences, such as divorce in one's parents' relationship, on one's view of marriage and finances.

Should I Cancel Extended Warranty on My Car?:

  • Caller asks if they should cancel the extended warranty and service contract on their car to use the refund towards paying off debt.
  • Dave advises canceling the extended warranty since statistically most of what it covers is marketing fees and commissions rather than actual breakdowns. He mentions that only about 12% covers potential repairs while the rest goes toward profit for the warranty company.
  • He also recommends canceling the service contract since it follows similar principles as an extended warranty.

Debt and Credit Scores:

  • The podcast episode discusses the idea that society encourages people to go into debt in order to build credit scores.
  • It is mentioned that in order to get a credit score, one must go into debt, which can create a cycle of borrowing more money.
  • First-generation immigrants are specifically mentioned as being affected by this belief that going into debt is necessary for success in America.
  • Some immigrants do not trust banks due to their experiences in their home countries, so they choose to be cash users instead.
  • However, it is noted that some immigrants do fall into other types of debt such as title pawn loans.

Financial Responsibility in the US:

  • The podcast discusses how financial responsibility has been equated with borrowing and repaying money repeatedly until retirement.
  • The host argues against this perspective and emphasizes the importance of avoiding debt and building wealth through other means.
  • It is mentioned that U.S. household debt exceeds $17 trillion, while the European Union has less than half of that amount despite having more households.

Trust Fund Disclosure:

  • A listener's question about whether or not they should disclose their hidden trust fund to their spouse is discussed.
  • The hosts emphasize the importance of open communication and honesty within a marriage regarding finances.
  • They express support for revealing the truth about the trust fund and addressing any potential issues or concerns it may raise.

Paying Off Mortgage Early:

  • A caller asks if they should use their CDs and investments to pay off their mortgage early.
  • The hosts recommend paying off the mortgage using available funds and highlight the benefits of being mortgage-free.
  • They suggest considering future plans such as adding onto the current property or purchasing a new home after becoming debt-free.

New Job Salary Increase:

  • A caller shares that they recently got hired for a job with almost double their previous salary after being laid off.
  • The hosts encourage the caller to prioritize paying off their debts aggressively, starting with the smallest balance first.
  • They emphasize the importance of focusing on debt elimination and making sacrifices in order to achieve financial freedom.

Building Wealth:

  • A caller expresses a desire to build wealth similar to Dave Ramsey's reported net worth of $600 million.
  • The hosts discuss how most billionaires have achieved their wealth through starting businesses or investing in enterprises.
  • They recommend studying successful entrepreneurs and business leaders for inspiration and guidance on building significant wealth.

Paying Off Debts:

  • A caller seeks advice on whether they should pay off their mortgage using funds from CDs and investments.
  • The hosts suggest paying off the mortgage as soon as possible and then deciding future plans such as adding onto the property or purchasing a new home later.
  • They highlight that being debt-free provides peace of mind and opens up opportunities for building wealth.

Sharon's Land and Gold Issue:

  • Sharon is having a conversation with someone about her land and gold.
  • The person suggests that Sharon asks why the person doesn't just sell the gold and pay her in cash.
  • The person advises Sharon to approach the situation by explaining that she is a 75-year-old widow who needs help since she doesn't know how to handle the gold.
  • There is no tax consequence for selling the land, but there might be if she sells the gold.
  • However, the person advises against accepting the gold as payment because it would require dealing with it, which Sharon doesn't want to do.

Valerie's Student Loans:

  • Valerie has $11,000 in student loans that she hoped would be forgiven but now realizes they won't be.
  • Her dad suggests paying only the minimum payment on them since they have a low interest rate of 2.75%.
  • Dave disagrees and tells Valerie that since it's her educational savings account, she gets to choose what to do with it.
  • Dave recommends using the money from her education savings account to pay off her student loans as quickly as possible.
  • Dave encourages Valerie to move out and become independent, even though she wants to wait until she figures out where she wants to live and finds roommates.

Dave's Final Thoughts:

  • Dave advises Valerie not to go along with her dad's plan of giving the money meant for her education to her brother, as resentment could arise.
  • He encourages Valerie to stand up for herself and use the money for its intended purpose: paying off her student loans.
  • Dave acknowledges that it may be difficult for Valerie to confront her dad but believes it would ultimately benefit both of them.