It's a fact... people who are wealthy live in ways that make them that way. They don't believe in car loans, wasteful spending or "easy" payments. Even though most people will never have the wealth of Bill Gates or Donald Trump, that doesn't mean you can't be wealthy if you work at it. In 2004, the number of households worth $1 million (not including not including primary residences) grew 21% to 7.5 million.
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I Am A Debt Killer!
By Tina Gallagher
I am a debt killer!
Over the years I have gotten out of debt then back into it many times. Adopting the attitude of "killing" a debt means that credit cards and such will not rise again or be reopened in my life!
I work from my budget, and as each debt dies, I list it on a victory board, which is a sheet of notebook paper with the date of the payoff, name of the debt, and the total of the original debt. I also sing and dance for victory! Any time I feel the slightest tinge of "poor me," I look at the board and see that I have power over my money and the power to kill my debts, NOT the other way around.
It's fun being a debt killer!
Have power over your money! Find out how.
Read other We did It! stories
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My Cost of Being Stupid
By Kelvin Kerst
We have paid Stupid Tax a few times!
We moved to Northern Virginia over 7 years ago with a newborn baby, a $275 car payment and about $1,000 in credit card debt. When we found out we were pregnant again, we knew right away that our perfectly good car would not be big enough. Oh yes, we needed a shiny new Dodge Durango. We drooled over it when they first rolled off the assembly line in 1998 and bought a 2000 model in December 1999. Our Saturn would have been paid off in about 3 months. We traded it in for the Durango and took on a $620 monthly payment for 6 years. Cost of being stupid? About $44,640.
Shortly after that, we financed 100% of the cost of a home we couldn't afford and struggled to make the $1100 payment for 2 years. The stupid part? We sold the house and moved about 80 miles west and rented a house for $1100 a month (WHAT?!?). When we moved back to Northern Virginia 2 years later, we discovered that the house we sold was worth nearly 3 times what we paid for it 4 years earlier. Cost of being stupid? About $200,000.
Oh, it just gets better, people.
While we were still in West Virginia, I almost totaled the Durango. The insurance company wrote us a check for about $8,500 for repairs. The truck had about 97,000 miles on it, and we didn't want it anymore. We sold it for about $3,000 to the repair shop and took the remaining $11,000 to a dealer because they would roll over the $19,000 of negative equity into the payment for our new Toyota Sienna. A $25,000 sticker price financed for $39,000. When all was said and done, we were so proud that we got a 5-year-loan for $783 a month. The van is only worth about $14,000 now. Cost of being stupid? About $33,000.
What's that total? $277,640.
Related: Why shouldn't I buy a new car?
Read other Stupid Tax stories
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Helpful Articles and Company Updates |
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Health Insurance - Beat the Confusion! |
Have you noticed all the different health insurance options floating around out there? PPO, HMO, and HSA, just to name a few. Have you ever wondered what they all do, how much you need, or better yet, what all the abbreviations stand for? Probably so! Well, we want to help you understand what types of insurance are best for you. Today we will focus on the Health Savings Account (HSA). We will explain more of these health plans in future newsletters.
Do I Really Need Health Insurance?
If you are alive and breathing (and we assume you are if you are reading this!), you NEED health insurance. Not a maybe, not a "Oh, I'll wait and see." You definitely need it! Why? Well, if you don't have health insurance and something happens, you could easily accumulate several hundred thousand dollars in medical debt...and medical bills are the number one cause of bankruptcy! On top of that, if your illness or injury is serious enough, you'll be out of work, which means you will have a huge debt to pay and no money coming in. Insurance is an absolutely vital part of any sound financial plan. We want you to be prepared.
One great type of health insurance is the Health Savings Account (HSA). Some major points to know about HSAs are:
- It is a major medical policy with a large deductible and a low premium.
- An excellent way to control your monthly premiums while saving for any future costs you may have.
- You can save up to about 70% on your premium as you are saving money that can be used tax-free on medical expenses.
- The amount saved in your HSA rolls over from year to year, allowing that savings to gain interest or investment earnings.
- You can take money out of this account tax- and penalty-free whenever needed for medical expenses. If it's used for anything else, you pay taxes and a BIG penalty.
- This money must be used for medical, dental and vision care; however, dental and vision payments don't count toward your deductible.
Source: Bankrate.com
Dave has a network of health insurance Endorsed Local Providers (ELPs) all over the country to assist your needs and teach you about the types of insurance BEFORE you buy it. They can show you lots of great plans that will fit any size budget. If you need insurance or just want to check for lower rates or other options, get connected with the ELP in your area today!
My Experience with the ELP Program:
"Ricky Credille, a health insurance ELP, could have easily written me a new policy this month and gotten himself a new commission. Instead, when he learned we had met our family deductible for this year, he advised me to wait until the first of the year and pointed out that any covered medical expenses would now be paid 100% with our current plan. It had not even occurred to me. What a blessing!" - Angie from Mississippi
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Terry Loughridge
and Dave in Houston.As a single mother with 3 teenagers, Terry paid off $12,000 on a $15,000 income, thanks to a persistent co-worker who shared Financial Peace with her! Now Terry's passing on that help and hope to her whole community.
"It's not what you make. It's how you budget it."
That's what Texan Terry Loughridge, a struggling, single mother of 3 teenagers, had to say. Terry was able to pay off $12,000 of debt in
18 months by saving her pennies, getting a tax return and using other resourceful ways of making her money work for her. The truly amazing part is that her salary is a mere $15,000 a year. If you don't believe in the power of hard work and motivation, you definitely will after reading Terry's story!
Rewind to February 2005. Terry was discussing her financial troubles with a co-worker. Once her co-worker recommended Dave's Financial Peace University (FPU) program, Terry's immediate thought was "I'm doing fine. Debt is not a real issue with me because I only owed $12,000 on my car and some credit purchases on my Capital One No Hassle card." It took her co-worker several attempts to finally convince Terry that FPU was the way to go. She even called the class coordinator and told him Terry would be joining!
Well, that persistence finally paid off! "The hardest step was making the commitment, but after arriving and completing the first lesson, I could not imagine missing a single week," Terry said.
While struggling to make payments, Terry received assistance from Interfaith of The Woodlands. Because she desires to help others struggling with similar situations, she's working with the organization to implement FPU. "That place helped me get back on my feet again, and I want to give back," she declared.
And get this - A year and a half later, Terry has facilitated two Financial Peace classes and is debt free!
The story doesn't stop there! Because of a gracious anonymous donation, Terry was able to fly to Nashville and participate in Dave's Certified Counselor Training last month. When Terry told us about her training experience, she had a twinkle in her eyes and a large grin on her lips. "It was the best week of my entire life! I just had a blast. I would love to pay for another single mom to go through it. It was such an experience," she said.
She plans to use her training to minister at her church and Interfaith of The Woodlands. Additionally, she is trying to implement the Financial Peace program in the schools. She would love to see everyone affiliated with the school system go through Financial Peace. "You see all the great things that this program does for people. It makes you want to reach out and do more and more," she commented.
Interested in making a difference in someone's life that is struggling with money? Learn more about Certified Counselor Training or Financial Peace University.
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GAZELLE INTENSITY!
So what does this this classic Dave phrase mean? Well, wonder no more because here's the story...
Gazelles are gentle creatures hunted by the fastest animal on earth, the cheetah. With the cheetah being so fast, you would think the gazelle would be extinct. However they've learned that the cheetah is only the fastest animal on earth while running in a straight line. So when being chased, the gazelle bobs and weaves and runs in circles until the cheetah gets tired and gives up.
It's time to think like a gazelle. If you are a gazelle and the marketing and credit card companies are cheetahs, bob and weave and run; do whatever it takes to get away. When you get that new credit card application in the mail - you know, the one that promises low introductory interest rates and lots of bonuses - scream CHEETAH! and destroy it as quickly as you can!
You do not build wealth with credit cards. Use common sense. When you play with a multi-billion dollar industry and you think you're going to win at their game, you are naive. The only way you can beat the credit card companies is to RUN and not get caught up in their tricky and deceptive games!
"Give no sleep to your eyes, nor slumber to your eyelids. Deliver yourself like a gazelle from the hand of the hunter, and like a bird from the hand of the fowler." Proverbs 6:4-5
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Helping Employees For Years to Come |
Bruce Begley, CEO Methodist Hospital"You're not only helping them on the job; you're going to help them for years to come in their personal lives."
- Bruce Begley, CEO Methodist Hospital
Who would have thought that listening to the radio on the way home from work would be encouragement to change tons of lives?
Just ask Bruce Begley, CEO of Methodist Hospital in Henderson, Kentucky. While driving home from work one day, he ran across "The Dave Ramsey Show" and was captivated by Dave's upfront and matter-of-fact way of helping callers with various money questions. But Bruce didn't just sit back and listen. He took a proactive stance, and so many people have been blessed as a result!
After inquiring about Dave's Financial Peace program, Bruce received several tickets to a LIVE event in a nearby town. He passed out the tickets to hospital employees and encouraged them to attend the event. The employees returned from the event excited and fired up, one thing led to another and the hospital decided to offer Financial Peace as a benefit to its employees.
"There are employees who have their wages garnished every week. We know that there are employees that are in financial difficulties," commented Karen Freeman, Human Resources manager for Methodist.
This program has not just been a benefit written on paper; it has been an active, life-changing program for the employees of Methodist Hospital and attracts potential employees their way!
"I've just heard incredible stories from individuals that have shared with me what they've done," Bruce said. So what has been done? These families have cut up credit cards, started emergency funds, gotten excited about saving for their kids' college funds AND gotten out of debt! WOW!
"As a hospital, we are not only concerned about giving them a job, but we're also trying to make a difference in their lives," declared Karen. "It certainly is worth the money that we spent to bring Financial Peace to the hospital because it's given us loyalty. It's given excitement all through our staff."
Way to go, Methodist Hospital!
Do you want to make a significant difference in your workplace? Find out how to bring this life-changing program and excitement to your workplace!
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Spreading the Message to the Next Generation |
Middle TN Electric reps, Dave,
Financial Peace for the Next Generation reps.Have you ever thought, "Man, I wish someone had taught me about money when I was younger! I might be in a different place financially now!" Most of us probably have. That's why we are committed to developing and spreading ways to educate high school students about how money works and how to handle it properly!
To help spread this message, Middle Tennessee Electric's Customers Care program recently donated money from their "Operation Round Up" funds to provide financial literacy educational materials to 12 high schools in 3 counties throughout middle Tennessee! These Middle Tennessee schools join more than 900 high schools nation-wide teaching students how to begin building wealth at an early age and how to avoid the pitfalls that lead to debt and even bankruptcy.
"To graduate from high school, you have to know what an amoeba is but not how to balance your checkbook," Dave said. "After years of listening to parents tell me their financial woes on the radio, it made sense to develop a program that would teach teenagers how to avoid their parents' mistakes."
Aggressive marketing, joined with students' lack of financial experience or education, leads many students into serious debt. Teens and students have a lot of money to spend but little knowledge of basic financial information. They spend more than they can repay and the debt increases quickly.
THANKS to Middle Tennessee Electric and everyone else who is joining us in providing a quality financial literacy program to the next generation! Bring this program to your area.
Related: Should I get my teenager a credit card?
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National Appearances
CBS' "The Early Show"
Dave returns to "The Early Show" on Tuesday, September 19. Check your local listings for more details.
Success Magazine
Dave is highlighted in the October issue of Success magazine.
Regional Appearances
KXAS-TV's "NBC 5 News"
An interview with Dave will be featured on KXAS-TV's "NBC 5 News" in Dallas/Fort Worth later in September as part of a series on debt.
More up-to-date information about Dave's appearances.
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Check out The Dave
Ramsey Show's Newest Radio Affiliates
There are over 280 affiliates Nationwide
| City & State |
Radio Station |
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| Altoona, PA |
WFBG AM 1290 |
2-4pm EST M-F |
| Colorado Springs, CO |
KSKX FM 105.5 |
9am-12pm MST M-F |
| Colorado Springs, CO |
KRDO AM 1240 |
9am-12pm MST M-F |
| Douglas, GA |
WDMG AM 860 |
5-6am MST M-F/3-4pm Sat/9-10pm Sun |
| Enid, OK |
KGWA AM 960 |
2-4pm CST M-F |
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KJAA AM 1240 |
10pm-1am MST M-F |
| Huntingdon, PA |
WHUN AM 1150 |
2-4pm EST M-F |
| Johnstown, PA |
WNTJ AM 1490 |
2-4pm EST M-F |
| Jonesboro, AR |
KBTM AM 1230 |
9pm-12am CST M-F |
| Kearney, NE |
KGFW AM 1340 |
8-11pm CST M-F |
| Lakeland, FL |
WLKF AM 1430 |
7-10pm EST M-F |
| Louisville, KY |
WKJK AM 1080 |
12-3pm EST M-F |
| Mobile, AL |
WPMI AM 710 |
7-10pm CST M-F |
| Omaha, NE |
KKAR AM 1290 |
12-4am CST Monday |
| Omaha, NE |
KHUB AM 1340 |
1-3 CST M-F/3-6pm Sat/6-9pm Sun |
| Portland, OR |
KEX AM 1190 |
7-10pm PST M-F |
| Savannah, GA |
WTKS AM 1290 |
6-9pm EST M-F |
| Somerset, PA |
WNTW AM 990 |
2-4pm EST M-F |
| State College, PA |
WRSC AM 1390 |
2-4pm EST M-F |
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