| Dave's Thoughts On Investing |
Everyone's talking about investing in single stocks, bonds, fixed annuities—and especially gold, all because mutual funds aren't performing as well as they have been.
Remember that just because something is all the rage doesn't mean it's good.
One of the best investing rules to remember is to only invest in something that has a good long-term track record. Who cares how much money you earn in interest in one year! Focus on the 20- or 50-year track record. Gold's long-term track record is crummy—the average lifetime annual growth of gold is only 2.14%. All of the money made by investing in gold has been since 2001.
In Jeremy Siegel's book Stocks for the Long Run, he reveals what would have happened to a single dollar invested in bonds, stocks and gold since 1801:
One dollar invested in bonds in 1801 would yield $13,975 today.
One dollar invested in stocks in 1801 would be worth $8.8 million today.
One dollar invested in gold in 1801 would be worth $14 today.
"In times of financial stress, in times of inflation, when there is fear for the [currency], gold does well," Siegel said. "Once the fears are past, gold goes back down." Why would you want to buy it at its peak price?
Many people think if the stock market collapses, we will use gold to buy things and survive. This is insane! Remember the aftermath of Hurricane Katrina. People bartered with essential commodities. They could not have cared less about gold.
Gold is a volatile, precious metal—it's flighty and can fluctuate sharply. You're much better off owning mutual funds and paid-for real estate. If you are beyond Baby Step 3 and want some gold, just save up and buy yourself a gold watch!
Just because we're in a bear market doesn't mean the stock market is on its way to collapsing! In order for the stock market to crash, companies like Microsoft, Ford, GM, Home Depot, GE and Whirlpool have to close their doors for good. Can you honestly imagine all of those companies closing? Our stock market operates differently now than in 1929; there are many more safeguards now. The people who predict stuff like this are doomsayers.
The best way to invest is to put your money in growth stock mutual funds that have good long-term track records. This is what I do. The stock market has averaged a growth rate of about 12% per year over the last 70+ years. That doesn't mean a solid growth curve of 12% each year is guaranteed. It means one year the market might grow 7%, the next year 10%, and the next year 19%. That comes out to 12% per year. Since you leave money in an investment for several years or even decades, odds are extremely high that you'll come out a winner!
Learn to invest the right way with a trusted investing professional in your town.
Related:
Forward to a friend I Back
to Top
We’re smack in the middle of prime house-hunting season! More people are looking to buy a home during the summer than any other time of year. That means your house has the greatest potential to sell during the summer. Follow these essential tips to get your home listed for sale and to make the best impression on summer buyers.
1. Don’t move out of your home before you sell it.
Moving out before you sell your home can cost you thousands of dollars. Studies have shown that it is more difficult to sell a home that is vacant because it looks forlorn, forgotten and simply not appealing. If you move, you’re also telling buyers that you have a new home and are probably highly motivated to sell fast. This knowledge will give them the advantage at the negotiating table.
2. Get a real estate agent.
This is a must. Your house is most likely your largest asset. You’d be crazy not to use a professional realtor to help sell your home. Even Dave uses a realtor! A report by the National Association of Realtors shows that the average home in America sold by a realtor sold for $32,000 more than homes sold without a realtor. So unless you want to risk losing thousands of dollars, you need to find a great real estate agent.
3. Improve your home’s appearance.
Seems like common sense, right? You wouldn’t believe how many people forget or don’t think they need to do this.
The decision to buy a home is based on emotion, not logic. Fixing up and cleaning the space generates the greatest emotional response. Doing so allows buyers to imagine themselves living in your home. Leaving your kid’s toys in the floor and closets cluttered with junk makes it difficult for buyers to imagine themselves as owners.
So clean like you’ve never cleaned before! Pick up, straighten, scrub, scour and dust. Fix everything no matter how unimportant it may appear. Present your home to get a “Wow!” response from buyers.
Follow these three tips and you’ll put yourself in a good position to sell your home this summer! And remember, to get the most money for your home, find a local realtor recommended by Dave.
Related:
Forward to a friend I Back
to Top
On the Road with FPU Online!
By Michelle
Imagine attending each Financial Peace University (FPU) session in a different city!
Super Saving in Albuquerque, NM
Cash Flow Planning in Larkspur, CO
Dumping Debt in Berwick, ME
From Fruition To Tuition in Irvine, CA
Working In Your Strengths in Wichita, KS
Well, that's what I did!
I'm an over-the-road truck driver and a grandma in a money crisis. Lonely, on the road and in debt … what a combination.
About a year ago, I purchased an XM radio to help with some of the loneliness. I heard an ad for The Dave Ramsey Show and started listening daily. It was time to learn about all the stupid taxes I had paid!
Then I heard about FPU. However, to attend, I'd have to be in the same place for 13 weeks in a row. That just wouldn't fit into my debt reduction plan! Later I saw a link on daveramsey.com about FPU going online. How perfect is that? I usually get online at truck stops, but I found that I could upgrade my Wi-Fi card and have access nearly everywhere in the country, not just at truck stops. So, I quickly fit a new Wi-Fi card into my budget.
Thanks to great technology, I have now completed FPU, have a written game plan, and will have the IRS paid off eight years ahead of schedule!
Dave, you have to tell all the truckers out there that they can do it! FPU Online is great for people who travel constantly and are always away from home. With the exception of the Big Horn Mountains of Wyoming, I was able to access FPU Online everywhere in the country. I loved the live chat sessions and being able to watch Dave everywhere I went. Plus, the FPU Online support staff was tremendous!
Truck drivers can make a lot of money, and FPU Online gives us the knowledge and tools to make those dollars count for our families back home. My family tree will never be the same!
Thank you so much for FPU Online!
God bless you and your team,
Michelle – trucker, grandma and FPU Online graduate
Get an exclusive FPU Online deal now!
Read other We Did It! stories
Forward to a friend I Back
to Top
Our $12,000 Home Inspection
By Laura in WA
 My husband and I got into an argument over a $25 home inspection for a detached garage.
My husband became angry and stabbed a cutting board with a serrated butter knife, except the knife slipped in his hand and cut a jagged, deep hole in his pinky finger where it attaches to the palm.
We went immediately to an urgent care clinic, then to the emergency room, then to a hand surgeon, who informed us that he severed a tendon in his pinky, which will cost over $12,000 to fix.
Since it was too expensive to add him to my health insurance policy, we are stuck with either going severely into debt from lost wages and the surgery, or my husband never using the tip of his pinky again.
Guess we're not getting that house after all!
Get health insurance now!
Read
other Stupid Tax stories
Forward to a friend I Back
to Top
| Go To College Without Sallie Mae! |
Going to college doesn’t mean you have to go into debt to pay for an education. Yet student loans are becoming more and more the norm instead of the exception. In 2006, the average graduating college senior had more than $19,000 in student loans. Adding to this stat is the scary fact that people under 25 are the fastest growing group filing for bankruptcy.*
Many believe that student loans are just a fact of life. Why settle for that? With some hard work and a bit of intuition, you can pay for college without going into debt. The average tuition for a public four-year college is $6,585. At first glance that may seem like a lot of money, but there are plenty of ways to foot the bill without taking out a loan.
Lifestyle Choice
When you think of the college life, you may picture living in an off-campus apartment and eating at popular restaurants every night with 20 of your newest friends. As cool as that image is, it comes with a high price tag. Instead, a college student can live in the dorms and eat at the campus cafeteria. It may not be as glamorous, but it is definitely more affordable! You go to college to get an education, not to party and hang out.
Get a Job
There’s no reason why a college student can’t pick up a part-time job in the evenings or on the weekends. Whether it’s delivering pizzas, babysitting, or waiting tables, there are plenty of options available to make money and pay for tuition. It may be tough to head to work on Friday nights while your friends are going to the movies, but it will be worth it when you graduate without any debt!
No Pedigree Degrees
An expensive, private education doesn’t guarantee you success any more than an affordable, public college can. If you’re determined to graduate without any loans, check out the public colleges within your state, since out-of-state colleges charge extra if you aren’t a state resident. The average cost for a full-time student to attend an out-of-state public college is $10,867. That’s over a $4,000 difference from the average tuition for an in-state college! Community colleges are also great places to get credit for your basic classes.
Apply for Grants and Scholarships
Once you start looking, there are plenty of grants and scholarships available—and many go unclaimed each year. Did you know that there’s a scholarship for left-handed students? Do a little research and you’ll find grants and scholarships that may allow you to receive financial aid without having to pay it back.
Check Out State Programs
There are several state programs that will assist with tuition costs in exchange for working for them for a certain number of years. This is an excellent way to help out with the cost of college, plus you’ll have a job lined up once you graduate.
If you do your homework, you’ll find plenty of options to help pay for your college tuition. You don’t want to be 22 with a $20,000 pet called Sallie Mae following you everywhere you go!
Learn More!
Dave devotes an entire lesson to planning for college and retirement in his class, Financial Peace University (FPU). He will teach you the best ways to save for college, beat debt, and so much more in the other 12 lessons. For those heading off to college, FPU will teach you how to live within your means and make your money work for you! Parents and loved ones, this is definitely one of the best gifts you can give a college student or graduate.
Cliff in Wisconsin told us:
During college, I managed to rack up around $32k in student loans. When I graduated, I started off Dave’s plan by saving a $1,500 emergency fund. From that point, almost all of my earnings were put toward paying off my loans—about $1,800 a month! My life during that time was boring but so worth it! … I will be forever grateful to my aunt and uncle for introducing me to Dave’s program. I finally get to keep my earnings, and it feels great!
Get a Financial Peace University membership or home study kit right now for 50% off retail for a limited time!
* Stat sources from CardTrack.com, Nellie Mae 2005 study, Courier Post Online, Jump$tart Coalition for Personal Financial Education
Forward to a friend I Back
to Top
| The Total Money Makeover LIVE Event Simulcast |
Every year, Dave Ramsey’s Total Money Makeover LIVE Event visits up to a dozen cities. But, the fact is, the event can’t make it everywhere in the nation—until now!
On September 19, the TMMO LIVE Event in Atlanta will be simulcast across the country. If you can’t make it to Atlanta—or any of the other cities Dave will be visiting this fall—this simulcast is your opportunity to join with thousands of people to soak up Dave Ramsey’s life-changing message of financial peace. Lance Osborne, who is managing the simulcast project for Dave, recently discussed some of the key elements of this massive event:
What made you decide to produce a TMMO simulcast?
Well, after the overwhelming success of the Town Hall for Hope simulcast in April—which was streamed to over 6,000 locations and 1 million viewers—we thought it was the right time to take this approach with the Total Money Makeover LIVE Event. We wanted to make this powerful information available to not just one arena of people, but hundreds of locations around the country—all at the same time.
More than 100,000 people attended one of Dave’s live events last year. That’s an incredible statistic! But the simulcast allows us to reach even more people and change even more lives.
How can an organization host this event?
It’s simple. Anyone can host the Total Money Makeover LIVE Event at their church or business. You just need to meet the technical requirements for the simulcast and register to be a host through our website. If you become a host location, we’ll work with you to make sure the simulcast goes as smoothly as possible.
What can I expect at the Total Money Makeover LIVE Event?
TMMO LIVE is not a boring financial seminar. It’s five hours of action-packed, entertaining teaching from Dave Ramsey on personal finance. Basically, Dave teaches you how to get focused, dump debt, and build wealth for the future. We hear awesome stories all the time from people who completely changed their money habits after attending this event. It’s definitely a life-changing experience I would recommend for anyone!
Learn more about attending or hosting the event now!
Forward to a friend I Back
to Top
 We’re in the thick of summer, and you may be thinking of getting away. Whether you’re headed to the beach, a theme park or the grandparents’ home, there’s definitely a lot of planning that goes into the average summer trip. Make sure to pack enough clothes. Bring batteries for the camera. Have the tickets ready. And we haven’t even mentioned money yet!
Here are some ways to save and track your money while you’re “getting away from it all.”
- Pick places that you can drive to, rather than fly. The vast majority of people live only a few hours away from a vacation spot. Not only will you save on the cost of plane tickets, but it’s a great chance to spend some time with your family.
- Want to go camping? It’s another cheap alternative and it will get you back to nature. You don’t have to worry about crowds, long lines or being on time for a show.
- Don’t wait until the last minute to make your travel plans. If you wait until right before you leave, you’ll face a bunch of problems. Tickets and rooms will be more expensive (and less available), and you may end up buying something that you don’t need, like travel insurance.
- Pay less for flights. If you’re going to fly, pick an off-day of the week to travel (Monday through Thursday). Seats are usually cheaper then.
- Take advantage of travelers checks. They’re just as good as cash and they give you some protection if they are lost or stolen.
- Invite along friends. If you are staying at a rental property or beach house, ask some friends to go with you so you can split the cost.
Above all, make sure to pay cash for everything. No time away from home is worth going into debt! However, if you are in debt, you should not go on vacation! You don’t have extra money, so don’t spend like you do. If you’re dying to go on a vacation with your family or friends, use that as motivation to get out of debt. Once you’re debt-free and have a full emergency fund in place, then celebrate with a big getaway!
Your Help Is Needed!
A new MyTotalMoneyMakeover.com member asked everyone in Dave's online community:
We are currently on Baby Step 2, yet we are also setting aside a few dollars a week to be able to go on vacation. I have a sinking feeling that we aren't supposed to be doing this, but sometimes the budgeting stuff gets confusing. I would love some feedback!
Share your thoughts and read what others advise!
Related:
Forward to a friend I Back
to Top
 There
are plenty of free resources available at daveramsey.com
to help you with everything from setting up a budget that
really works to getting a free annual credit report. Here
are a few highlights:
- Get Dave's answers 24/7
Hundreds of Q&A calls from The Dave Ramsey Show are archived online for you to search by topic. Get your questions answered now!
- Dave's Library
Ever wonder what Dave reads and recommends? We have many titles available in our online store under a variety of topics—business, relationships, money, and spiritual and personal growth, just to name a few. Browse the selection now.
- Free,
High-Interest Checking on CheckingFinder.com
Dave says, "Start making your money work harder right
now on CheckingFinder.com. Enter your ZIP to find and
open a free, high-yield checking account with no minimum
balance. It's easy to do, and you're done in just
minutes. I've never found a better checking account."
Get
more useful tools here
Forward to a friend I Back
to Top
|
Dave Ramsey Updates |
|
Where's Dave? |
Magazines, websites, live events, TV—Dave's everywhere!
Get
all the up-to-date info.
Forward to a friend I Back
to Top
Check out our newest
stations!
There are over 430 affiliates nationwide.
| City & State |
Radio Station |
Air Times |
| Tyler, TX |
KTBB FM 92.1 |
M–F 1–4 p.m. CST |
| Orlando, FL |
WFLF AM 540 |
M–F 3–6 p.m. EST |
| Ashland, OH |
WNCO AM 1340 |
M–F 1–3 p.m. EST |
| Sterling, IL |
WSDR AM 1240 |
M–F 2–4 p.m. CST |
| Blowing Rock, NC |
WXIT AM 1200 |
M–F 9 a.m.–12 p.m. EST |
| Kings Mountain, NC |
WGNC AM 1450 |
M–F 12noon–3 p.m. EST |
| Smethport, PA |
WXMT FM 95.3 |
M–F 3–5 p.m. EST |
| Wenatchee, WA |
KPQ AM 560 |
M–F 2–4 p.m. CST |
| Champaign, IL |
WDWS AM 1400 |
M–F 6–9 p.m. CST |
Forward to a friend I Back
to Top
 Gold is the Snuggie of investments. You buy it on late-night cable, and it makes you look stupid! —Dave Ramsey
Forward to a friend I Back
to Top
|
