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You’ve Gotta Wake Up and Pay Attention to Your Money!

The Ramsey Show

Mon Sep 11 2023



Real Estate Market:

  • Supply of housing is below demand, causing prices to go up.
  • High interest rates have led to homeowners staying put instead of buying new homes, resulting in low inventory for sale.

Personal Finance:

  • Caller received a sum of $20,000 from a family member with the intention of using it for wedding expenses or a down payment on a house.
  • She is unsure of how best to invest the money since it was given with the expectation that it would be used wisely.
  • Suggested putting the money into basic mutual funds as a down payment fund for a future home purchase.

Debt Management:

  • Caller has $100,000 of debt owed to her ex-husband and the IRS due to unfiled taxes during their marriage.
  • The divorce decree stipulates that she is responsible for 40% of the debt while her ex-husband is responsible for 60%. However, the IRS holds both parties jointly and severally liable for the full amount owed.:

Debt Repayment:

  • Paid off $200,000 in debt
  • Took them 5 years and 4 months to become debt-free

Types of Debt:

  • $40,000 in student loans
  • Rest of the debt was their house mortgage

Income Increase:

  • Income ranged from $82,000 to $124,000 during that time period
  • Matt took a promotion at work to become a sales rep

Budgeting:

  • Created a monthly budget and had regular meetings to review it
  • Cut back on expenses and found ways to save money

Frugality:

  • Found ways to save money by taking online tests for extra income
  • Started their woodworking/crafting business to generate additional income

Impact on Relationships:

  • Family played crucial role in supporting and encouraging them throughout process
  • Their pastor's guidance during premarital counseling helped set solid financial foundation

Future Plans: – Planning for future trips and experiences once they adjust to living on one income while Sarah stays at home with their child:

  • Teaching Financial Peace University classes starting next week

Investing in Mutual Funds and Ethics:

  • Caller, Lazer, asks about efficacy of investing in mutual funds in stock market when many people buying from those companies are using debt.
  • Dave explains that there are different perspectives on ethics, such as religious and pure ethics.
  • From a religious perspective, usury (interest) is forbidden for Muslims but not necessarily for Jews or Christians.
  • Dave clarifies that while he doesn't believe in debt and does not promote it at Ramsey Solutions, he cannot control other people's behaviors/actions.
  • He gives example of someone buying his book with credit card; he cannot control their choice to use debt to make purchase.
  • Dave emphasizes if there is ethical issue for caller regarding investing in companies profiting from debt, then he should adhere to own ethics and make decisions accordingly.

Ethical Quandaries in Investing:

  • The discussion delves into whether profiting from investments linked to industries involved in "sin" activities (e.g., liquor stocks)is also an ethical concern for some investors.
  • It becomes difficult to parse out all the nuances and keep up with every company's involvement in various unethical practices.
  • Jay mentions trading stocks involves transactions between individuals rather than directly supporting company or its profits.
  • Although profitability can be influenced by people going into debt(such as banks making money off interest), this connection is several layers removed from individual investors' actions.
  • Botj Jay and Dave reiterate personal conscience plays significant role when making investment choices .
  • they warn against getting caught up in legalism or scrutinizing every aspect of society ,emphasize need maintain balance&avoid picking unnecessary battles .

Concluding Thoughts:

  • The episode concludes with reminder walking daily with Christ Jesus as ultimate path financial peace.
  • Listeners directed to visit RamseySolutions.com for further guidance on starting their journey with Ramsey Baby Steps.