DAVE RAMSEY

Dave Ramsey says: Take control of your mind and money

Mar 5, 2024, 2:00 PM

Person holding a lot of cash....

Starting a budget may be tough initially, but it typically takes newcomers about three to four months of practice to see results. (Pexels Photo)

(Pexels Photo)

Dear Dave,

I’m trying to work my way out of debt, but it seems like something always happens to stall things or knock me backwards. I make $55,000 a year, I’m single and I have $15,000 in debt, along with a mortgage payment of $1,224 a month. I’ve been trying to live on a budget, but I’m still not sure where all my money goes. Can you help?

Lindley

Dear Lindley,

I know living on a budget can be hard at first. And honestly, it usually takes folks who are new to doing it about three or four months of practice before they start getting it right and seeing the results.

For starters, your house payment is a little heavy for someone making $55,000 a year. I generally recommend keeping your mortgage or rent payment at about 25% of your take-home pay. Sometimes you can slide by paying a little more, but in those cases, you’d really have to be on top of your finances. So, the biggest thing you can do right now is take control of your money, instead of letting it—or a lack of it—control you. And the best way to make all this happen is by consistently living on a realistic, written monthly budget.

Once you start doing this, you’ve taken your first big step toward having a real gameplan for your money. At that point, the idea of trying to live on a budget ends, and the fact that you are living on a budget, and telling your money what to do—instead of a lack of it dictating what you can do—becomes more of a reality.

Remember the Star Wars movie “The Empire Strikes Back”? At one point during Luke’s training, Yoda tells him, “Do, or do not. There is no try.” In a larger sense, Yoda is urging Luke to focus and work harder, instead of continuing with half-hearted attempts and giving up easily. If you want to accomplish a difficult task, Lindley, you have to throw yourself into it completely. You must fully commit, and stop making excuses. You have to focus, and fight to make it happen.

It’s no fun waking up broke at the end of every pay period. We both know this. So, put your head down and get your mind in gear. Make. This. Happen.

You can do it!

—Dave

ENDORSEMENTS

Dave Ramsey

Living with roommates can quickly become difficult if one person doesn't live up to their financial...

Dave Ramsey

Dave says: It isn’t easy addressing late payments with your roommate

Living with roommates can quickly become difficult if one person doesn't live up to their financial promises. Here are best tips from Dave Ramsey.

3 days ago

A small business owner wants his company to have more passionate leaders. (File photo: Tim Douglas/...

Dave Ramsey

Dave Ramsey says: Should a small business owner plug in or promote from within?

A man who owns a small business with around 20 employees tells Dave Ramsey he wants to promote two people to the next level.

6 days ago

what to do when rent increases and parents offer to let you live with them...

Dave Ramsey

Dave Ramsey says: Parents of adults should provide a safety net, not a hammock

Should a woman and her husband who are $80,000 in debt move in with her parents? Here's what Dave Ramsay says.

10 days ago

Learn how to wisely invest and enjoy the inheritance while securing a financially stable future. (P...

Dave Ramsey

Dave says: As the older sibling, you can teach your younger sibling a lot

In this heartfelt letter, Dave Ramsey offers indispensable advice to Davis on guiding his teenage sister through a substantial inheritance.

17 days ago

This week's article discusses what could happen if you accept a loan from a family member. (Pexels ...

Dave Ramsey

Dave says: Should you accept your in-law’s offer to pay off your mortgage?

This week's article delves into the pros and cons of repaying family loans. While it may seem convenient, it's often advisable to avoid owing money to family members.

24 days ago

In this week's article, Dave talks about how to tackle a difficult family situation while not getti...

Dave Ramsey

Dave says: How to navigate tough times with love and understanding

In this week's article, Dave talks about how to tackle a difficult family situation while not getting on anyone's bad side.

1 month ago

Sponsored Articles

...

COLLINS COMFORT MASTERS

Here are 5 things Arizona residents need to know about their HVAC system

It's warming back up in the Valley, which means it's time to think about your air conditioning system's preparedness for summer.

...

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.

...

Collins Comfort Masters

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

Dave Ramsey says: Take control of your mind and money