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Here at Dave Ramsey’s place, we keep our finger on the pulse of the culture. You might even call us culture connoisseurs.
Well, not really. But here’s what we can do: We can tell you what will be in and out in 2015 when it comes to money. For some people, these things might just be the current trend. But, if you’re like us, these things are a way of life.
In: Saving for Christmas
Out: Buying for Christmas at the last minute
Wait a minute. Christmas just ended, and we’re telling you to start thinking about Christmas again? Exactly! Put away a little bit of money each month so you’re not scrambling come December. Here’s a well-known fact about Christmas: it falls on December 25 every single year! So stop being surprised by it. Make a plan and save for it all year long. Here are five ways you can prepare for next Christmas now.
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Out: Paying on 30-year mortgages
The longer you have a mortgage, the less you can put away for your golden years. A 30-year note will keep you in debt longer than Jay Leno hosted The Tonight Show. Cut that mortgage down to a 15-year fixed rate loan. Connect with an investment professional in your area that Dave recommends.
In: Getting good life insurance
Out: Having gimmicky or inadequate plans
Nobody likes to talk about life insurance—until you or someone in your family needs it.
Then you have a million questions. But don’t worry, it’s not that complicated. Have a term life policy worth 10 to 12 times your income to replace your earnings and provide for your family if you die. Don’t buy plans that package insurance and savings together like whole life or universal life. Also, don’t purchase gimmicky plans like heart attack insurance or cancer coverage. Those types of policies are good for the salesman’s commission, not your financial plan. Get an instant quote from Zander Insurance.
In: Getting identity theft insurance
Out: Fixing the mess yourself
When your identity is stolen, you are knee-deep in chaos! You have to file a police report, cancel cards, go to the DMV, and call the credit reporting agencies. A better plan is to have identity theft insurance. If you set up this type of insurance through Zander, they will assign a case worker to you who will make the phone calls and do all the legwork to fix everything. That makes 2015 and every year after that a lot easier.
In: Going to college in-state
Out: Going out of state for college
The cost for out-of-state college is typically out of sight for most people! For the 2013–2014 academic year, the average public university’s out-of-state tuition and fees were $22,200. In-state tuition will cost you a lot less out of pocket and usually makes a lot more sense. Check out Rachel Cruze’s blog for college planning advice.
In: Buying used cars
Out: Leasing or buying new cars
When you realize how much you save by buying a two-year-old car instead of a brand-new one, it’ll stop you dead in your tracks. A new car’s value drops like a rock. You should only buy a new vehicle if you can pay cash and have a $1 million net worth so you can absorb the hit. Maybe, just maybe, 2015 is the year America will finally take notice. Read these essential five tips you need to know before buying a car.
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Out: Wingin’ it
Let’s make 2015 the year of the budget. It’s cool to budget—it really is! Wingin’ it might work for you when you’re making dinner plans at night, but it’s a terrible way to plan your money. In with the budget this year! Get started now with free downloadable budgeting forms.
In: Doing work that matters
Out: Working a J-O-B just for the paycheck
Would you rather have a different job? If so, you are in the same boat as 70% of Americans. A recent Gallup poll on the State of the American Workplace finds seven out of 10 people are “disengaged” from their work. Why not make 2015 the year you pursue your calling in life? Do work that matters—to you and to others.
In: Giving money
Out: Borrowing money
You already know that taking out a loan is stupid, right? Of course you do. This year, instead of taking out loans, take out your debt. When you’re debt-free, you’re better able to help other people. What if you could provide $100, $500 or even $1,000 worth of Christmas gifts to needy children next year? That would be one awesome goal to strive for in 2015!
If you know Dave Ramsey, you know all of the above will always be in style. These are not passing fads. They’re a way of life. The sooner you start that way of life, the more you can give, save and spend. Those things never go out of style!
What other money concepts do you think will be in and out in 2015? Tell us in the comments below!