Dave Ramsey ranted about 3 ‘illogical’ money mistakes Americans make that ‘baffle’ him — here’s how you can avoid them

“Don’t spend $250,000 getting a master’s degree in sociology so you can be a caseworker for the state making $38,000,” he said.

He believes students should realistically consider their career prospects and future earnings before going into debt for college.

You can also minimize the impact of paying for education by saving up for it ahead of time — whether for yourself or for your children — by using a high interest savings vehicle such as a certificate of deposit or other high-yield savings account.

A certificate of deposit (CD) pays a fixed interest rate on money held for a set period of time. CD rates are usually higher than other savings accounts, but if you withdraw your CD funds early, you’ll be charged a penalty fee.

But since this is a long-term savings play for your or your kid’s education, they are a strong option you’ll be less tempted to dip into.

One thing to note about CDs: If you withdraw the money before the end of the term, you’re likely to face penalty fees.

For those who already have student debt, it can be a daunting task to tackle it. Americans are collectively sitting on $1.6 trillion in student loan debt.

If you’re in this boat, it is possible to make that debt pile more surmountable by refinancing your student loans. Through Credible — an online marketplace of vetted lenders — you can browse the best personal loan rates for you and opt to consolidate your student debt.

With interest rates as low as 3.85% and repayment schedules ranging from 24 to 84 months, you’ve got time and flexibility.

Ramsey says a totaled car is not a reason to upgrade.

“You were driving a $6,000 car,” he said. “Your car gets totaled, you get a check for $6,000 and, suddenly, $6,000 cars aren’t good enough for you. That’s dumb!”

However, the high cost of vehicles could make this financial error difficult to avoid. The average cost of a new car in May was $48,389, according to the Kelley Blue Book, while the average used-car listing price was $25,670.

If the cost of a new or used car has you worried, you can save on auto expenses by finding better car insurance rates using OfficialCarInsurance.

Simply fill in a bit of information about yourself and OfficialCarInsurance will generate a list of the most affordable car insurance options near you so you can ensure you’re getting the lowest price for the coverage you need.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.