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Miami Herald
8 hours ago
- Automotive
- Miami Herald
Dave Ramsey warns Americans about buying a car
During a recent episode of The Ramsey Show, personal finance author and radio host Dave Ramsey tackled a question from a caller about purchasing a new car, offering insights and a cautionary message to listeners weighing the decision. Ramsey frequently challenges the widespread belief in a "perfect" vehicle, urging buyers to let go of the fantasy. He believes a car should meet real-life demands, not an idealized version of them. Don't miss the move: Subscribe to TheStreet's free daily newsletter When it comes to choosing a vehicle, Ramsey has encouraged people to begin with lifestyle questions: whether a car or truck is better suited, how many passengers they usually drive, fuel efficiency needs, and cargo space. He said that these factors help clarify which models are genuinely useful rather than simply desirable. Ramsey warns that no vehicle satisfies every personal preference. Recognizing the difference between necessities and luxuries - and thinking ahead about long-term use - allows buyers to make smarter choices. Ramsey's advice consistently emphasizes budget discipline. He views paying interest as a financial misstep and firmly recommends buying a dependable used car with cash over financing a brand-new model. Doing so preserves financial stability and prevents unnecessary debt. Related: Dave Ramsey sends major message to Americans on IRAs, Roth IRAs He also suggests taking time with the search for a car. Ramsey urges buyers to investigate both online listings and physical dealerships, reminding them that rushing into the first decent-looking deal could mean missing out on something better. Before any of that, though, Ramsey stresses the importance of deciding whether the current vehicle truly needs replacing. Many people make the leap based on impulse rather than practical need, and he suggests that a realistic evaluation of the car's condition should come first. Ramsey also delivers a warning about common car-buying mistakes. While he acknowledges the emotional draw of a shiny new ride, he reminds people that poor financial decisions in this area can have long-lasting consequences - unless they take a deliberate, informed approach that turns the odds in their favor. In an episode of The Ramsey Show, a 24-year-old caller identifying himself as Micah asked Ramsey about buying a car. "I'm currently debt-free," Micah said. "I make $80,000 a year. I am currently maxing out my 401(k) and IRA. I want to buy a car that costs $30,000. However, I don't want to get rid of my current car. It would just be a play car." "It's a sports car," he continued. "I have $30,000 in cash that I'm prepared to pay for this car. I'm not sure if it's better to put this in a different sort of investment portfolio or if it would be OK to splurge and buy this car." Ramsey then ascertained that the caller's current vehicle is worth $13,000 and the car he is interested in buying is a 2019 Nissan 370Z. More on cars: Dave Ramsey has blunt words for Americans buying a carAlphabet's Waymo flexes on Tesla Robotaxi with latest updateTesla faces its most serious court battle in years "Here's the thing," Ramsey said. "I love cars, I drove here today in my Raptor. I love big engines. I like things that make noise. I'm redneck. I want a loud muffler, all that." "But the stupid things go down in value, like a rock," he emphasized. "That's where Chevy got that. 'Like a rock.' And that includes that sweet Nissan you're talking about. And that includes my sweet Raptor." "They go down in value." Related: Jean Chatzky sends strong message on buying vs. leasing a car Ramsey offered a word of advice about building wealth and how it often relates to car ownership. "If you're going to build wealth, you have to keep as small an amount as possible going into things that go down in value," he said. "So consequently, we find millionaires driving very conservative used cars until they've got substantial money." The Ramsey Show host explained that one of the guidelines he suggests people use is to not have more than half their annual income tied up in vehicles. "So adding up all of your little toys with motors and wheels, does it add up to more than half your annual income?" he asked. "Because if it does, you've probably got too much in things going down in value while you're trying to build wealth." Ramsey noted that with those vehicles, Micah would have about $45,000 in two cars. "You make $80,000 and so you're over half," Ramsey said. "So, sweet car. And you've got the cash. You can do it." "I mean, you can afford it obviously, but the warning is that you're putting money in the wrong places if you want to be wealthy." Related: Dave Ramsey has blunt words for Americans buying a car The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
10 hours ago
- Business
- Yahoo
Dave Ramsey Says 'Almost Every Time It Makes Sense To Take It Early' —Tells 61-Year-Old To Claim Social Security At 62 And Invest 'Every Dollar'
When Tracy from Billings, Montana called into "The Ramsey Show," he was looking for advice. What he got was a full-blown Social Security takedown. "I'm 61 years old, and I keep getting these letters from Social Security wanting to know what I want to do," he said. "I'm still working, I'm on Baby Step 7, I am married — and I don't know when is the best time to take advantage of that fantastic program." Ramsey, catching the sarcasm, smirked: "I sense sarcasm, Tracy." Don't Miss: Accredited Investors: Grab Pre-IPO Shares of the AI Company Powering Hasbro, Sephora & MGM— $100k+ in investable assets? – no cost, no obligation. Tracy clarified that he didn't actually need the money. His plan? Take Social Security early and invest 100% of the checks. But he hesitated after realizing he'd receive a reduced amount before full retirement age. "You don't [get the full amount]," Ramsey confirmed. "The later you start—whether it's 62 all the way up to 70—every year you would get more." But then Ramsey delivered the part he'd been waiting to say: "If you run the numbers out... almost every time you can run the numbers on it by taking every dollar from 62 to 66 that you get and put it in a good investment. The investment returns will give you greater than the difference for the rest of your life — almost every time. So it usually makes sense to take it early if you're going to do what you're going to do, which is invest." Trending: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can Ramsey reinforced his mathematical case, now set against a backdrop where the full retirement age has shifted to 67 for anyone born in 1960 or later. "You can get a better rate of return than they will pay you by waiting," he said. He even brought up the estate factor, adding, "When you die, that money that's in that mutual fund is part of your estate. When you die with Social Security? Nothing. That's what you get." Then he let loose. "You will discover it's about a negative 4% rate of return in your life," Ramsey said. "Only the government can figure out a way to talk everyone into having something removed from their check that they make a negative 4% on — and everybody fights to keep it in place." The rant escalated fast. "I've been paying into it for almost 40 years. You could keep all that — I'll still come out ahead in the next 20 years not putting money in the stupid thing," he said. "Just putting that amount of money — the amount of money you robbed from me in my check — into a mutual fund."And finally: "Your program's so freakin' awesome, you can just keep it." So should you take Social Security early or wait for a bigger check at 70? It's a hotly debated question. Some experts, like Suze Orman, encourage healthy adults to delay as long as possible. Ramsey takes the numbers-first approach: if you're still working and willing to invest every dollar, it "usually makes sense to take it early." There's no one-size-fits-all answer. It depends on your health, financial habits, retirement timeline — and who you ask. But in Ramsey's math, the earlier check plus a smart investment beats the bigger check later — almost every time. Read Next: Can you guess how many retire with a $5,000,000 nest egg? . Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Dave Ramsey Says 'Almost Every Time It Makes Sense To Take It Early' —Tells 61-Year-Old To Claim Social Security At 62 And Invest 'Every Dollar' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
13 hours ago
- Automotive
- Yahoo
Dave Ramsey Caller Discovers Her Boyfriend Hid $80,000 In Credit Card Debt. Now He's Asking Her To Co-Sign A $100,000 Loan On His Home
A woman from Raleigh, North Carolina, called into 'The Ramsey Show' recently with a jaw-dropping financial dilemma. Allie, who has been with her boyfriend for over a decade, recently learned he secretly racked up $80,000 in credit card debt. Now, he wants her to co-sign a $100,000 home equity line of credit on a house she doesn't even own. He Took Care Of Her After A Tragedy, Now She's Paying All The Bills Allie said she only discovered the debt when her boyfriend hit a financial wall. "He hit the end of the rope," she told co-hosts George Kamel and Jade Warshaw. That's when she learned he had maxed out every credit card. He also still owes $40,000 in student loans. Don't Miss: Accredited Investors: Grab Pre-IPO Shares of the AI Company Powering Hasbro, Sephora & MGM— 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can His spending problem? Classic cars. Allie explained that he runs a restoration shop but is terrible at managing the business side. "He sees a car he wants, he gets it. He cycles through like three or four sports cars a year," she said. Despite living with him for the last two years, her name isn't on the mortgage. He recently asked her to co-sign a $100,000 home equity line of credit, or HELOC, so he could pay off the credit card debt. Allie immediately knew that was a bad idea. "If he takes one of those sports cars and wraps her around a telephone pole, I'm stuck with his debt for the rest of my life," she said. Allie admitted she briefly considered helping because of what he did for her in the past. After a devastating car accident left her with spinal injuries and a traumatic brain injury, Allie lost her house, car, job and life savings. Her health insurance company sued her to recover the $500,000 they had spent on her care. With nowhere else to go, she moved in with her boyfriend, who helped her recover. But now, she's the one carrying the financial burden. "I'm currently paying all of our bills," she said. "Because he has nothing to pay them with." Trending: $100k+ in investable assets? – no cost, no obligation. Not Married, No Ring, No Security Kamel and Warshaw were straightforward: she should not feel guilty or obligated to co-sign anything. "If somebody does something out of an act of generosity, they're not looking to be paid back," Warshaw said. They also pointed out how financially risky her situation has become. "You're paying his bills and you're broke," Kamel told her. "You're not really gaining as much as you think." Allie revealed she now earns about $35,000 a year, down from $70,000 before her injuries. Her health limitations keep her from taking more physically demanding jobs. And she said she feels trapped because she doesn't make enough to afford a place of her own. Still, she admitted that if she had more money, she would leave the relationship. Kamel and Warshaw encouraged her to keep searching for a rental or roommate situation. "There's a bunch of great girls out there who would love a great roommate like Allie who can pay her fair share," Kamel said. "He has chosen his obsession over you." Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." The average American couple has saved this much money for retirement —?Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Dave Ramsey Caller Discovers Her Boyfriend Hid $80,000 In Credit Card Debt. Now He's Asking Her To Co-Sign A $100,000 Loan On His Home originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
'Really, really scary': Dave Ramsey urges caller not to join grandma's scheme to deceive IRS about $1 million debt
Sarah and her husband rent a place in Los Angeles and are expecting their first child. But she called into The Ramsey Show because of a tricky situation involving her mother-in-law, homeownership and the IRS — one that caught host Dave Ramsey off guard. Why? Because this caller's situation includes $1 million in debt and potentially deceiving the IRS. 'Sarah, there's just so much going on here that you're not talking about or you don't know,' Ramsey said in a clip posted July 12. 'And it's really, really scary. There's a line of crazy running through this conversation.' Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) You don't have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here's how Here's what was revealed during the exchange. A questionable situation Sarah's mother-in-law currently lives with the couple in their rental home. However, Sarah says her grandmother-in-law has offered to buy her mother-in-law a house in Sarah and her husband's names so her mother-in-law 'is not docked by her unpaid debts from the IRS' — and the three would continue to live together in the new house. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership 'She has a lot of unpaid debts and so grandma is trying to take care of her by providing a home,' Sarah said. Her mother-in-law, 55, is going through a divorce and lost her job in September after a corporate restructuring. Right now she's making DoorDash deliveries to bring in some extra cash. She's also apparently $1 million in debt. When Ramsey asks why her mother-in-law is almost $1 million in debt, Sarah responded: 'I don't ask questions.' Sarah says she adores her mother-in-law, but wants to know if this setup would be a wise decision and, if so, what they need to 'have on paper.' Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Why this is unethical Ramsey answered clearly: 'I would not do this.' He said, by doing so, 'you are tying yourself to people you don't ask questions about, permanently, and you are taking away her reasons for getting back on her own feet. This is not good. It is not healthy.' He said Sarah's mother-in-law needs to recover from the grief that comes from ending a marriage and experience 'what's known as a life — not hiding at her son's house from reality.' Secondly, 'the whole reason to do this is to deceive,' he said. 'Your grandmother-in-law is teaming up with her daughter and using you guys to deceive the people that she owes,' Ramsey said. 'This is deception and I'm not going to participate in that. It's a lack of integrity. It's unethical.' Ramsey guessed the debt belongs to the mother-in-law's ex-husband — perhaps unpaid IRS debt from a failed business venture. It's possible the mother-in-law had nothing to do with it, in which case she could potentially get rid of the debt using innocent spouse relief. Innocent spouse relief can 'relieve you from paying additional taxes if your spouse understated taxes due on your joint tax return and you didn't know about the errors,' according to the IRS. 'I got a feeling she didn't buy purses to get to a million dollars [in debt],' Ramsey said. If the mother-in-law qualifies for relief and grandma wants to give her daughter some money to clean up any debt that's left over, 'I got a feeling it's not going to be that much,' Ramsey said. He also believes this is a better option than buying a house under deceitful circumstances. 'That would be the ethical thing,' he said. 'Try to settle it.' What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here's how Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- General
- Yahoo
Her Mother-In-Law Threatened To Sue, So She Called Dave Ramsey. His Advice? 'Give Somebody 10 Grand And Keep Her Tied Up Till She Dies'
A woman from Tampa, Florida, called into 'The Ramsey Show' recently, looking for help with a family dispute that turned legal, bitter and deeply personal. Jamie explained that her mother-in-law, who lives just feet away in a tiny house built on their property, has threatened to sue her. Decade-Long Tension Over A Gifted Property In 2006, Jamie and her husband were gifted a piece of land by his parents. 'We couldn't afford to build on it at the time, so we saved and ended up building our house in 2012,' she said. Not long after, the in-laws asked if they could build a small home on the back of the same lot, having moved from upstate New York and struggling to keep up with their home and health needs. Don't Miss: Be part of the breakthrough that could replace plastic as we know it— 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can Jamie and her husband agreed. Her in-laws sold their house up north and used the proceeds to build a 900-square-foot, one-bedroom, one-bathroom accessory dwelling on the back acre. However, things went south fast when the family realized the new home was technically built on land Jamie and her husband owned outright. 'We kind of all realized at the same time that technically they did not own it,' she told Dave Ramsey. It caused a huge fight. From there, it spiraled. For the last 10 years, the family has argued over who owns what. Jamie's father-in-law passed away three years ago, and since then, her mother-in-law has only grown more hostile. 'In January, there was a huge fight where she accused us of doing this on purpose for the sole purpose of taking her home. In essence, taking her money,' Jamie said. 'She said, 'You could take me out at any time.'' Trending: $100k+ in investable assets? – no cost, no obligation. The mother-in-law, now 80 and still in good health, has not spoken to the couple since. She recently had an attorney send Jamie a letter accusing them of elder exploitation and demanding a lump-sum payment of $180,000. Ramsey, stunned, asked, 'She's not only not speaking to you — she's in your back window?' 'Oh yeah,' Jamie replied. 'Eight feet away.' Ramsey called the situation 'bizarre' and said, 'She's lost her marbles. And we can't find them. They're somewhere in the backyard near a tiny house.' When Jamie mentioned she was considering paying out of guilt, Ramsey shut that idea down: 'Morally, giving her anything? No. You didn't do anything wrong.' He advised her to hire an attorney and tie the case up in court as long as needed. 'Give somebody 10 grand and keep her tied up till she dies,' he said bluntly. 'That's really all you can do here.' The legal advice Jamie already received backed this up. As one lawyer told her, any value her mother-in-law added to the property has been offset by her living in it for a decade. Ramsey concluded with a warning for listeners: 'For the rest of you listening, don't do this. Ever.' Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Accredited Investors: Grab Pre-IPO Shares of the AI Company Powering Hasbro, Sephora & MGM—UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Her Mother-In-Law Threatened To Sue, So She Called Dave Ramsey. His Advice? 'Give Somebody 10 Grand And Keep Her Tied Up Till She Dies' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
