A father of 4-year-old triplets told "The Ramsey Show" that repeated overdrafts left his $3,600 monthly take-home pay stretched too thin to cover basic needs. Travis, calling from Toledo, Ohio, said his bank account goes negative almost every week. He supports a family of five on one income while attending trade school at night, and said grocery spending is what most often pushes his balance into overdraft. When the discussion turned to which bills should be paid first when money is limited, personal fi ...

When you think of a millionaire, you might picture an entrepreneur who got creative, took big risks and hustled hard to make big money. However, the Ramsey Solutions National Study of Millionaires found that many millionaires had worked as teachers, engineers, accountants and in other traditional careers, and they usually took a slower approach to building their wealth. Personal finance expert George Kamel is a good example since he grew his wealth on a W-2 employee salary. In a recent YouTube video, he ...

Personal finance expert Dave Ramsey says most people run into financial trouble because they fail to do basic math before making purchases and end up paying for those mistakes later. Discussing common financial mistakes on "The Ramsey Show," he said not doing basic math before major financial decisions leads to trouble regardless of age, income, race, or where you live. "We get ourselves in trouble when we don’t bother and do the math before we do the transaction," Ramsey said. "Adults devise a plan and ...

Rick Diamond/Getty Images) Key Points in This Article: Withdrawing from a 401(k) before age 59.5 can cost up to 40% in taxes and penalties. $35,000 left in a 401(k) at 5% annual return grows to $57,000 in 10 years. Ramsey advises eliminating car loans and credit card debt before considering home purchase. If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more her ...

Personal finance expert Dave Ramsey says cutting all monthly debt and credit card payments lets you save more and gives you the freedom to leave a job you dislike. Discussing how debt and credit card payments trap people on "The Ramsey Show," he urged his audience to picture a life without loans, credit card bills, or a mortgage. Ramsey said that when your salary is only spent on groceries and utility bills, you can live on your own terms and invest your money to build long-term wealth. Don't Miss: The ...

Consider a couple that has half a million dollars in savings — they must both be making six figures, right? Or, they’ve been saving for decades and are nearing retirement. Or they got a windfall. None of the above are true for Lauren Perraut and her husband, Dylan. Lauren is only 32 years old, and while she earns $122,000 a year, her husband makes $60,000. The couple has managed to amass about $524,000 in savings with a relatively simple plan — and some timeless advice from Lauren’s dad. “Never spend mo ...

Core Insights - A couple faced financial difficulties after selling their home for a profit and mismanaging the proceeds by purchasing cars instead of addressing existing debts [1][2]. Financial Situation - The couple bought a home for $315,000 and sold it for $415,000, resulting in a gain of approximately $100,000 [1]. - After fees, they received about $77,000 but had $10,000 in credit card debt from home updates [2][4]. - They had no down payment and a mortgage with a 6.25% interest rate, leading to a paycheck-to-paycheck lifestyle [3]. Tax Implications - The profit from the home sale does not qualify for capital gains treatment due to the short holding period, and it is considered ordinary income [5]. - The estimated tax bill from the sale could be around $20,000 after accounting for sales expenses and allowable improvements [5]. Financial Advice - Financial expert Dave Ramsey advised the couple to refrain from making significant financial decisions until they consult a tax professional [6]. - Ramsey criticized the decision to purchase a car before settling tax obligations, emphasizing the need for better financial management [6][7].

Group 1 - Simone, a 22-year-old graduating with a computer science degree, has accepted a job with a salary of $100,000 and a signing bonus of $10,000, but her parents are pushing her to take on a $30,000 car loan [1][2] - Personal finance expert Dave Ramsey emphasizes that Simone's income level allows her to make her own financial decisions, indicating a shift in the influence of parental advice as she enters adulthood [3][4] - Ramsey supports Simone's plan to buy a less expensive car with cash instead of financing a more expensive vehicle, highlighting that taking on a large auto loan early in her career could reduce her financial flexibility [6][7] Group 2 - The discussion reflects a broader theme of changing parental dynamics as children become adults, with Ramsey advising Simone to remain respectful while asserting her independence [4][5] - Ramsey's advice aligns with the notion that financial stability can be achieved without immediately driving an expensive vehicle, reinforcing the importance of long-term financial planning [7]

Group 1 - The core issue revolves around financial tensions in a long-term relationship, where one partner is focused on budgeting and debt reduction while the other is more spontaneous with money [2][3]. - The couple has accumulated approximately $60,000 in debt and earns around $10,000 monthly combined, highlighting the financial strain they are under [1]. - The lack of a shared legal or financial structure due to their unmarried status complicates their financial discussions, leading to repeated arguments [3][4]. Group 2 - The financial dynamic is characterized by separate legal responsibilities and income, which means that lenders and creditors view them as individuals rather than a unified entity [4][5]. - The relationship has lasted eight years without a clear decision on moving forward, which Ramsey suggests is essential for financial and relational prosperity [6]. - Premarital counseling is recommended to address differing financial styles and to establish a common direction and expectations if marriage is intended [7].

Core Insights - Personal finance expert Dave Ramsey emphasizes that many individuals fail to track their spending or create a monthly budget, leading to insufficient savings despite earning higher incomes than previous generations [1][2] - Ramsey highlights that average Americans work hard but often end up financially short because they spend all their income without saving or investing [2][3] - He advocates for the power of consistent small savings, suggesting that investing $100 a month from age 25 to 65 can result in over a million dollars by retirement [2][3] Spending and Saving Behavior - Ramsey describes the checking account as a "sieve," indicating that people are unaware of their spending habits, which leads to financial struggles despite earning more than their parents or peers [2] - He criticizes the tendency to spend impulsively on non-essential items, which detracts from the ability to save for retirement [4][5] - The expert argues that many individuals distract themselves with entertainment and impulse purchases instead of managing their finances effectively [4] Financial Responsibility - Ramsey asserts that individuals under 40 who do not retire as millionaires are primarily responsible for their financial situation [3] - He calls for a renaissance in personal finance, urging people to take control of their financial lives and make informed decisions [4] - The message stresses the importance of recognizing the value of small, consistent savings and the impact of impulsive spending on long-term financial health [5]