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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” earlier this year, he called out financial mistakes callers frequently make as \u201cDumb! Really dumb!\u201d<\/p>\n<\/p>\n
He added: \u201cThese things baffle me, that\u2019s why I\u2019m hitting them,\u201d he said. \u201cBecause they\u2019re just illogical.\u201d<\/p>\n
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
Ramsey despises the prospect of buying property with anyone besides a spouse. He advises against this even in long-term relationships.<\/p>\n
This 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
However, the housing crisis has pushed more people to consider co-ownership of property. A report by Co-Buy, a platform that helps multiple buyers share a property, says 26.7% of home purchases in 2023 were co-purchases, while 30% of those co-purchases were completed by unmarried couples.<\/p>\n
If you\u2019re not in a position to purchase a home \u2014 whether on your own or with a spouse \u2014 you can still take advantage of real estate\u2019s income-generating potential.<\/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, 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, 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 quarterly dividends.<\/p>\n Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.<\/a><\/p>\n Investing in your education, Ramsey believes, should yield higher earnings. Otherwise it\u2019s a wasted pursuit.<\/p>\n Story Continues <\/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 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 If you\u2019re in this boat, it is possible to make that debt pile more surmountable by refinancing your student loans. Through Credible<\/a> \u2014 an online marketplace of vetted lenders \u2014 you can browse the best personal loan rates for you and opt to consolidate your student debt.<\/p>\n With interest rates as low as 3.85%<\/a> and repayment schedules ranging from 24 to 84 months, you\u2019ve got time and flexibility.<\/p>\n Ramsey says a totaled car is not a reason to upgrade.<\/p>\n \u201cYou were driving a $6,000 car,\u201d he said. \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 May was $48,389, according to the Kelley Blue Book, while the average used-car listing price was $25,670.<\/p>\n 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<\/a>.<\/p>\n