| Butt
Scratching and Bass Fishing |
A
couple of weeks ago, I worked late like I sometimes need
to do to run my business. It was a nice Tennessee summer
evening, and I was enjoying the drive home. About 7:30,
as I pulled to a stop light a few blocks from my office,
I noticed a light on in the corner office of a friend’s
office building. Through the twilight I could make out my
friend’s silhouette as he bent over his desk. Being
a fellow entrepreneur, I knew what he was doing.
 He was pouring over some receivables. Some turkey hadn’t paid him, and
he was trying to make his accounts balance so he would have the cash to make
it another day. In that instant, I had a flashback to some of the ridiculous
statements I’ve been hearing on the talking-head news channels and
from some individuals during this political year. And I’ll be honest—I
instantly felt the heat of anger flow through my body.
Let me tell you why. You see, my friend who I saw working
late—we’ll call him Henry—is a great guy.
He’s who you want your son to grow up to be. He loves
God, his country, his wife, and his kids. He didn’t
have the academic advantage of attending a big-name university.
Instead, he started installing heating and air systems as
a grunt laborer after he graduated from high school. He
was and is a very hard and diligent worker, and before long,
the boss taught him the trade. But when he was 24, after
6 years of service, the company he was working for got into
financial trouble and laid him off.
Henry still had his tools, so he bought an old pickup to haul around his materials
and tools, and suddenly he was in business. He knew about heating and air-conditioning,
but not about business, so he made a lot of mistakes.
He persisted. He took accounting and management at the community college
to learn about business. He started reading books on business, HVAC, marriage,
kids, God, and anything else someone he respected recommended. Today he is
one of the best-read men I know. Soon, because of his fabulous service and
fair prices, he developed a great reputation, and his little business
began to grow.
Henry started 15 years ago, and now he has 17 employees whose families are
fed because he does a great job. He is in church on Sunday and seldom misses
his kids’ Little League games. Sometimes he has to miss a game because
some poor soul has their AC go out in the 96-degree Tennessee summer heat,
but Henry makes sure they are served. He is, by all standards, a good
man. He is, by all standards, what makes America great.
Henry and I are friends, and so he asked me some financial questions last year.
I learned in the process that his personal taxable income last year was $328,000.
I smiled with pride for this 70-hour a week guy because he is living the dream.
At the stop light that evening, I also thought of another guy I know—and
that is where the anger flash came from. We will call him John. While
John does not have the same drive Henry has, I can say that he, too, is a
good man.
John also graduated from high school and did not attend a big-name university.
He went to work at a local factory 15 years ago. When 5:00pm comes around, John
has probably already made it to his car in the parking lot. He comes in 5 minutes
late, takes frequent breaks, and leaves 5 minutes early. However, to his credit,
he is steady and works hard.
Over the years, due to his steadiness and seniority, he
has worked his way up to about $75,000 per year in that
same factory. He seldom misses his kid’s ballgames,
but ... Read
the rest
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The summer travel season is in full swing, so you may already
be packing the car and getting ready for that 500-mile trek
to a theme park or a visit to those relatives 4 states away.
In any case, saving money at the pump is something we are
ALL striving to do these days. Here are some ways to help
do it:
Driving Tips
- Don’t carry a lot of stuff in your trunk.
The more weight you have in the trunk, the harder the
engine has to work to move it and the more gas it uses.
- Don’t make fast turns or sudden stops. Again,
that’s making the engine work harder.
- Leave earlier so you can drive slower. If you
drive 55 miles an hour instead of 65, that can save you
2 miles a gallon. That adds up!
- Combine your errands. Don’t make a special
trip out to the grocery store to get some milk when you
can just pick it up on the way home from work. If you
have errands that are piling up, then write them down
and take care of them when returning from work.
- Keep your left foot off the brake. It will create
drag, make the engine work harder, and wear out the brakes.
Extra Tips for the Car
- Don’t warm your car up for more than 2 minutes.
It will be warm enough by that point to where you can
drive slow and warm it up the rest of the way. Letting
it linger too long will use up gas.
- Keep the tires inflated, the engine tuned up and
the oil changed. A car in good working order does
better on the road.
- It may be tempting, but don’t top off the gas
tank when filling up. It may seep out as you drive
around.
- Use the air conditioner when you are in the highway,
but open the windows when the traffic stops and
goes.
- Join a carpool if you can. Driving with just
one extra person cuts your fuel consumption in half.
- Pay for gas with cash. Some gas stations even
offer discounts if you do this, but it can help you budget
as well. Seeing the cash in a gas envelope go down has
a bigger impact than a needle on a dashboard. It will
remind you to drive more conservatively.
These tips can really help you, but the most important
part is that you take a good look at how you spend money.
Saving at the pump doesn’t mean much if you don’t
combine it with being responsible with money in other areas.
If you commit to living on less and couple that with finding
deals and making your money go farther, then you will really
start to see a difference with your money!
Discuss It!
MyTotalMoneyMakeover members are discussing how they’re
affected by gas prices. Check
out what they’re saying and contribute to the
conversation – it’s FREE!
Source: bankrate.com
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Life Happens When You Least Expect It
By Tosha in MS
"Life happens" is what you always hear from Dave, but
you just never think life will happen to you.
After a bad purchase and having to hire an attorney to help
get us out of the mess, we thought we were seeing the light
at the end of the tunnel. We even thought life hurts, but
it wasn't that bad. Little did we know that life wasn't
finished.
We settled the bad purchase deal, and 4 months later I
was diagnosed with Multiple Sclerosis. Life not only hit
me in the face, but I am reminded daily that you never
know what life has in store. I was scared, and 8 months
into the diagnosis I am still scared. We are in debt and
we have no disability insurance, so if I wake up tomorrow
unable to go to work, we could be facing bankruptcy.
That is enough to scare anyone.
But I am here to tell you that being scared did one thing—IT
MOTIVATED MY US TO GET OUT OF DEBT! We have paid off the
smallest debt and are working on the debt snowball. Fortunately
a relative gave us a car; now we only have one car payment!
We are determined to get out of debt and stay out of debt.
We know that we can't depend on my next check or my ability
to earn an income. Our goal is to get out of debt and then
work on putting everything we can spare into savings. We
are only at the first stage, but it's going to happen,
and I am going to shout from the rooftops when it does!
If you are in debt and think you can handle it,
you are wrong. If you think that life will not happen to
you, YOU ARE WRONG! Life can happen to anyone at any time.
Start now! What
Baby Step are you on?
Read other We did It! stories
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The Debt Didn't Disappear!
By Abby in FL
 I
had over $10,000 in credit cards over 5 years ago. They
all went into default. I thought that after awhile that
old debt would just be erased.
Instead, the credit card companies one by one started taking
me to court for missed payments, including accrued interest.
Luckily, I had been doing the Ramsey plan for 3 months;
therefore, I had money saved and was able to negotiate in
my favor.
Recently I have been able to get a job and financially
recover. I am currently about finished with my old debt.
I am so excited, not because it will improve my credit scores
but because of the self-esteem and self-worth I continue
to gain as a result financial peace.
Related:
Read
other Stupid Tax stories
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|
Give Up Cable & Save Thousands |
We Americans just love our entertainment, don’t we?
We’ll spend thousands of dollars a year on ways to
fill our time but put nothing aside for our future. People,
that’s just plain stupid!
One
of the biggest wastes of our time is cable TV. Am I totally
against it and think it’s evil? Of course not. I even
enjoy an occasional show myself! But we all need to check
our priorities and alter them if cable is near the top of
the list!
The True Cost of Premium Cable
 “Get
our preferred-plus package with movie channels and on-demand
service for just $50!” Offers like these are misleading.
That premium package actually costs you much more.
You see, that $50 price is for promotion only. A good look
at the fine print will tell you that 6 to 12 months
into your subscription—after you’ve become “hooked”—the
cable company will charge you their regular fee. After they
tack on equipment rental, taxes, franchise fees, and other
“applicable charges,” you’ll pay about
$100 a month. That’s $1,200 a year!
Giving Up Cable Saves You Thousands!
What if you devoted the hours you waste in front of the
TV to more productive activities like family time, reading,
or exercising? Do you know how much you would save?
If you put that $100 extra per month in a mutual fund averaging
12%, you’d have over $8,000 in just 5 years! In 10
years it would be over $23,000!
Is it worth giving up $23,000 to have premium cable?
You bet it isn’t. Heck, you probably only watch
5 out of those 100 channels anyway.
If you’re subscribed to a cable service but aren’t
out of debt or contributing to your retirement plan, then
you need a good thump on the head!
What To Do With the Money You Save
If you have any debt (other than your house), throw the
extra money to your debt snowball NOW. If you’re debt
free, invest your savings. Put that money in a growth-stock
mutual fund if you plan to invest more than 5 years. Be
careful when choosing mutual funds; there are a lot of lousy
ones out there. Always use a professional financial advisor
to help determine which funds are best for you.
Related:
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|
Why Dave's Against 30-Year Mortgages |
 We’ve
all heard Dave say NEVER get a 30-year mortgage, but do
you know why?
For starters, you’re basically throwing your money
away. Some people get a 30-year mortgage, thinking they’ll
pay it off in 15 years. Good intentions aside, this rarely
happens. Why? Because life happens instead. You might
decide to keep that extra payment and take a vacation. Or
maybe it’s time to upgrade your kitchen. What about
a new wardrobe? Whatever it is, you’ll find an excuse
to spend that money somewhere else.
Want More Proof?
Let’s check out the difference between the two options.
A 30-year mortgage on a $225,000 home with 6% interest
has a payment of $1,349. On that same house with the
same interest, the payment on a 15-year mortgage would
be $1,899. That’s a $550 difference!
That may not seem like much, but take a look at the bigger
picture. When you pay $1,349 a month for 30 years at 6%
interest, you are actually paying $486,000 for your $225,000
home.
Now how do those numbers work for a 15-year mortgage? A
monthly payment of $1,899 for 15 years at that same interest
rate will equal $342,000. So if you go with the 15-year
mortgage, you’ll save yourself $144,000 over the
life of the loan!
Still Not Convinced?
You’re still in that $225,000 home 10 years later. The
15-year mortgage has been paid down to about $98,000. However,
the balance on a 30-year mortgage is only down to $188,000.
What does this mean exactly?
It means that if you have a 30-year mortgage, you’ve
paid almost $162,000, but you’ve only knocked $36,000
off the loan. So over the past 10 years, you’ve given
the bank $130,000! Wouldn’t it be worth it
to pay a little extra every month so you could avoid that?
If you think you’re getting a better deal with a 30-year
mortgage simply because you save a few hundred bucks each
month, then you’re only thinking short term.
Go over the math again. If you open your eyes, you’ll
see that you’re literally throwing away thousands
of dollars. Don’t fall into the same trap as everyone
else—refuse to go with a 30-year mortgage.
Trust us—you’ll be happy you paid the extra money
each month to save yourself from years of debt.
In Financial
Peace University, Dave draws on over 20 years
of real estate experience to teach you how to win when
buying or selling your home. Plus, he’ll dissect all
of the common mortgage options available today, showing
you what to choose—and what to avoid.
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|
Independence Day Military Salute |
While
we’re cooking out with family and friends, celebrating
the freedom we all enjoy, let’s remember the service
and sacrifice of those who ensure it.
As they are out defending us, some companies actually seek
to take advantage of our heroes. Many servicemembers find
themselves distracted by intentional pressure from
payday loan outfits, rent-to-own stores, title-pawn shops,
and a number of other bad financial products targeted at
them. These lenders also aggressively market to the spouses
of deployed servicemembers who are often left home to handle
the family’s money all alone.
In fact, Military Family Research Institute reports says
that 56% of enlisted personnel report difficulty with
family finances, and almost half feel like they are
“in over their heads.” This affects all of us,
making it much more difficult from them to fully focus
on their mission of protecting our country.
Peace of Mind and Money
 That’s
why we developed Financial
Peace Military Edition. There are now Financial
Peace classes held at installations around the world, everywhere
from Afghanistan to Japan to Iraq.
Just last month, one of our superstar coordinators, Yvonne
Hudson, graduated a group of 160 soldiers at Tillil
Air Base in Iraq. “My biggest class ever!”
she said. “Thank God for this great material!”
Hudson has been a pioneer and champion of the program since
2003. Last year alone, she was instrumental in making the
course available to nearly 1,000 servicemembers. One of
Yvonne’s class members reported, “It has been
a miracle. We’ve paid off almost $20,000 in debt within
the last 4 months!”
On May 2, Hudson and her husband, Robert, celebrated their
10th wedding anniversary by calling into Dave’s show
with a debt-free scream all the way from Iraq! “We’re
100%, Dave Ramsey-style debt free.” she said. Both
Majors in the Army, the Hudsons paid off an astounding $312,000
in 5 years! They sold their house, paid off a car and student
loans, and knocked out $90,000 in credit card debt! Listen
to their call
Yvonne’s not just teaching this stuff. She’s
living it.
Get Involved!
While military leadership is committed to the financial
well-being of servicemembers, the need is greater than
the funds available. Find out how you can supply Financial
Peace materials directly to military installations through
our new nonprofit initiative, Adopt
a Base.
Plus, as a part of our Independence Day salute, for
every Financial Peace University kit you purchase
July 2–6, we will donate a free FPU Online membership
to an installation hosting Financial Peace Military Edition.
The class leader will distribute this gift directly to the
spouse of a deployed servicemember who is enrolled in FPU.
Please help us spread the word about these great opportunities
to impact the lives of our valued servicemembers. But above
all else, be sure to find some way to thank these men and
women who defend our freedom every day!
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 We have been having some fun this past month coming up
with some limericks about those who have experienced a LIVE
event. Enjoy these few we’ve come up with:
There once was a man who spent all his money
And he went into to debt, which was not so funny
By sending all his cash
His accounts went crash
And his days were no longer very sunny.
There once was a couple in debt
And out was where they wanted to get
So they went to see Dave
And learned to make their money behave
It will work for you, too, I bet!
A lady found herself out of cash
So to the ATM she would dash
But she went to see Dave
And to money she is no longer a slave
You better learn too before you crash!
A young couple often fought about money
Each began to think badly of their honey
Dave taught them to talk about money clearly
And now they love each other dearly
So goes the story of Jack and Bunny.
We would love to hear your own limericks! So take
your best shot and send
them our way! The winner will get 2 FREE tickets to
see Dave LIVE this fall!
Check
out the fall event schedule
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|
Dave Ramsey Updates |
|
Where's Dave? |
Magazines, websites, LIVE events, TV - Dave's everywhere!
Get
all the up-to-date info
The Dave Ramsey Show Military
Special
In April, Dave was privileged to visit Fort Carson in Colorado,
where he addressed 1,700 servicemembers. Much of that event
will be featured in "Military Families," a special edition
of The Dave Ramsey Show on The Fox Business Network
re-airing Thursday, July 3 at 7pm CST. Tune in to
see how financial readiness is impacting our military's
mission readiness!
Upcoming LIVE Events
Dave's Total Money Makeover LIVE Event stops in the
coming months:
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Check out our newest
stations!
There are over 350 affiliates nationwide
| City & State |
Radio Station |
Air Times |
| Boston, MA |
WBNW 1120 AM |
6-7:30am, 7-10pm EST |
| Roseburg, OR |
KQEN 1240 AM |
5:30-7pm MF, 7-10pm Sat/Sun
EST |
| Plymouth, MA |
WPLM 1390 AM |
6-7:30am, 7-10pm EST |
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|
Quotes About - Kids & Money |
When my daughter Rachel was in kindergarten, her teacher
asked her what her daddy did for a living. She answered,
"He cuts up credit cards!"—Dave Ramsey
To bring up a child in the way he should go, travel
that way yourself once in a while!
—Josh Billings
 Will
power is the ability to make your heirs behave by threatening
to cut them out of it.
Train up a child in the way he should go;
and when he is old, he will not depart from it. —Proverbs
22:6 (NIV)
Getting a credit card for your teenager is an excellent
way to teach him or her to be financially irresponsible.
—Dave Ramsey
Children have never been very good at listening to their
elders, but they have never failed to imitate them.
—James Arthur Baldwin
Recommend virtue to your children; it alone—not
money—can make them happy. I speak from experience.
—Beethoven
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