DAVE RAMSEY

Dave Ramsey: Put the money in your own pocket

Jan 30, 2024, 1:00 PM

A mason jar with wads of cash for emergency fund....

Dave Ramsey says to skip those extended warranties. Maintain a 3-6 month emergency fund in an accessible account for unforeseen expenses. (Pexels Photo)

(Pexels Photo)

Dear Dave,

Are home warranties a waste of money if you already have a fully-funded emergency fund containing six months, or even more, of expenses set aside?

Jodie

Dear Jodie,

I don’t do extended warranties, because they’re not a good deal. In my mind, you’re better off to self-insure against damage or things breaking down. That way, you can put what would have been profit and marketing dollars for the extended warranty company in your own pocket. I mean, think about it. If you buy something, but can’t afford to fix it if something goes wrong, it’s not really a smart move to buy it in the first place, is it?

I always recommend an emergency fund of three to six months of expenses to cover the unexpected things that life will throw at you. In most cases, this amount of cash—sitting in a good money market account with check writing privileges—will allow you easy access in the event of unexpected expenses or a financial emergency.

—Dave

ENDORSEMENTS

Dave Ramsey

(Pexels Photo)...

Dave Ramsey

Dave says: If you’re not going all in, stay out

Think twice before diving into that new business venture! Success requires a hefty 40-50 hours a week commitment.

3 days ago

(Pexels Photo)...

Dave Ramsey

Dave says: Seeking mediation with a neutral third-party advisor”

If someone close to you is having financial problems with their spouse, it might be best to refer them to a marriage counselor rather than insert your own advice.

5 days ago

In this week's article, Dave Ramsey talks about when to buckle down and climb out of that financial...

Dave Ramsey

Dave says: Getting out of a big mess doesn’t always feel good, but it’s necessary

Getting yourself out of a financial big mess doesn't always feel good, but sometimes, it's necessary to get back on track.

10 days ago

People sitting at a table, looking upset about bills....

George Kamel

The normalization of debt: How it happened and why it’s keeping you broke

The financial systems we trust benefit from our struggles. Break free from the cycle and rethink your financial game plan.

12 days ago

Person taps to pay or purchase....

Dave Ramsey

Dave Ramsey says: A lesson he’ll remember for the rest of his life

As much as coming in to save the day would feel good, teaching lifelong financial lessons could feel even better in the long-run.

17 days ago

Someone logs their financial progress on a self-made savings tracker....

Dave Ramsey

Dave says: Embracing financial discipline is a sacrifice you won’t regret

If you're determined to increase your savings account, consider using cash-only. Though it might be tedious, it is definitely worth it.

19 days ago

Sponsored Articles

...

Day & Night Air Conditioning, Heating and Plumbing

Day & Night is looking for the oldest AC in the Valley

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

(KTAR News Graphic)...

Boys & Girls Clubs

KTAR launches online holiday auction benefitting Boys & Girls Clubs of the Valley

KTAR is teaming up with The Boys & Girls Clubs of the Valley for a holiday auction benefitting thousands of Valley kids.

...

Day & Night Air Conditioning, Heating and Plumbing

Valley residents should be mindful of plumbing ahead of holidays

With Halloween in the rear-view and more holidays coming up, Day & Night recommends that Valley residents prepare accordingly.

Dave Ramsey: Put the money in your own pocket