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Across 32 years of giving people financial advice on the airwaves, Dave Ramsey has probably seen it all. But on an episode of “The Ramsey Show” he once called out the financial mistakes callers frequently make as \u201cDumb! Really dumb!\u201d<\/p>\n
He added: \u201cThese things baffle me, that\u2019s why I\u2019m hitting them,\u201d Ramsey said (1). \u201cBecause they\u2019re just illogical.\u201d<\/p>\n
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However, some argue that economic and social trends may have made some of these mistakes unavoidable. Here\u2019s a closer look at three of Ramsey\u2019s top \u201cdumb\u201d money mistakes and why they\u2019re so common.<\/p>\n
1. Buying property together before marriage <\/p>\n
Ramsey despises the prospect of buying property with anyone besides a spouse. He advises against this even in long-term relationships of five years or more.<\/p>\n
His advice is rooted in the fact that separating assets between an unmarried couple can be complicated. They do not always share the same property rights as married couples.<\/p>\n
\u201cIf you\u2019re shacking up, don\u2019t buy a house with your roommate,\u201d Ramsey said. \u201cYou\u2019re going to screw up the relationships. You\u2019re going to end up in legal and financial trouble.\u201d<\/p>\n
That said, Ramsey isn\u2019t against investing in real estate as an individual. In fact, he owns $850 million in property, according to an interview with The School of Hard Knocks on YouTube (2). Besides, if you can\u2019t afford a home outright \u2014 and co-buying before marriage sounds like a liability \u2014 there are other ways to get into real estate.<\/p>\n
You can tap into this market by investing in shares of vacation homes or rental properties through Arrived<\/a>.<\/p>\n Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties<\/a>, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.<\/p>\n To get started, simply browse through their selection of vetted properties<\/a>, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100<\/a>, potentially earning monthly dividends.<\/p>\n Read More: Robert Kiyosaki warned of a ‘Greater Depression’ \u2014 with millions of Americans going poor. Was he right?<\/a><\/strong><\/p>\n 2. Wasteful spending on education <\/p>\n Investing in your education, Ramsey believes, should yield higher earnings. Otherwise it\u2019s a wasted pursuit.<\/p>\n “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.<\/p>\n He believes students should realistically consider their career prospects and future earnings before going into debt for college.<\/p>\n You can also minimize the impact of paying for education by saving up for it ahead of time \u2014 whether for yourself or for your children \u2014 by using a high interest savings vehicle such as a certificate of deposit or other high-yield savings account.<\/p>\n 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.<\/p>\n But since this is a long-term savings play for your or your kid\u2019s education, they are a strong option you\u2019ll be less tempted to dip into.<\/p>\n For those seeking predictable, reliable growth, a platform like CD Valet<\/a> can help you find higher-yield options that work for you, whether you\u2019re saving for something soon or building a cushion for the long haul.<\/p>\n CD Valet tracks over 40,000 verified rates from FDIC-insured banks and NCUA-insured credit unions nationwide<\/a>. Unlike other websites, they show every publicly available rate, ensuring you have a comprehensive view of the market.<\/p>\n Plus, their CD rates are updated continuously, so you can shop, compare and open CDs with ease<\/a>.<\/p>\n One thing to note about CDs: If you withdraw the money before the end of the term, you\u2019re likely to face penalty fees.<\/p>\n 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.<\/p>\n Consolidating all your debts into a personal loan through Credible<\/a> is an effective way to get rid of your debt faster. Instead of juggling multiple monthly payments, you\u2019ll have one predictable payment to manage each month.<\/p>\n Through Credible’s online marketplace, finding the right loan becomes much simpler. Credible lets you comparison-shop for the lowest interest rates<\/a> with just a few clicks.<\/p>\n In less than three minutes, you\u2019ll see all the lenders willing to help pay off your credit cards or other debts with a single personal loan.<\/p>\n If you owe a substantial amount, you may also want to see if you qualify for a debt relief program<\/a> to help clear a significant portion of your debt.<\/p>\n With Freedom Debt Relief, you can speak with a certified debt relief consultant for free<\/a>, who can show you how much you can save by partnering with them.<\/p>\n If you\u2019re eligible, they can negotiate settlements with your creditors until all of your enrolled debt is resolved.<\/p>\n 3. Upgrading cars after a crash <\/p>\n Ramsey says that not even a totaled car is good enough reason to upgrade. One of his long standing pieces of advice is to buy used if possible.<\/p>\n \u201cYou were driving a $6,000 car,\u201d he said, referring to a caller\u2019s situation. \u201cYour car gets totaled, you get a check for $6,000 and, suddenly, $6,000 cars aren\u2019t good enough for you. That\u2019s dumb!\u201d<\/p>\n However, the high cost of vehicles could make this financial error difficult to avoid. The average cost of a new car in April was $49,614, according to the Kelley Blue Book (3). And that\u2019s before you get to monthly essential like insurance.<\/p>\n If you really do need to buy a new car \u2014 whether for work or family \u2014 it could pay to shop around for the best rates. After all, long after your car is paid off you\u2019ll still be shelling out for insurance on a monthly basis.<\/p>\n By using a comparison platform like Insurify, you can instantly view quotes from top-rated providers<\/a> to ensure you aren’t paying a hidden \u2018loyalty tax\u2019 to your current insurer.<\/p>\n Just answer a few basic questions<\/a>, and Insurify will show you the most affordable deals in as little as 3 minutes.<\/p>\n Not only is the process 100% free, but you could also save up to 15% by bundling your car and home insurance.<\/p>\n You May Also Like <\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/strong><\/p>\n Article Sources<\/strong><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n The Ramsey Show Highlights\/ YouTube (1<\/a>); The School of Hard Knocks\/ YouTube (2<\/a>); Kelley Blue Book (3<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Across 32…\n","protected":false},"author":2,"featured_media":484578,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[177],"tags":[79,180632,1400,18,6777,19,211908,17,9791,234,235,121],"class_list":{"0":"post-484577","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-buying-property","10":"tag-dave-ramsey","11":"tag-eire","12":"tag-financial-advice","13":"tag-ie","14":"tag-investing-in-shares","15":"tag-ireland","16":"tag-jeff-bezos","17":"tag-personal-finance","18":"tag-personalfinance","19":"tag-youtube"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116573893080233367","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/484577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=484577"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/484577\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/484578"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=484577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=484577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=484577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}