The Ramsey Show - Live Blog

The Ramsey Show is a live podcast. (Photo courtesy of Jonathan Farber)

Unless they pursue a career in finance, most college students are uninformed about money and how to manage it. Our blog has talked about general financial tips before, but now we will be relaying direct advice from Dave Ramsey. Ramsey is a successful financial guru who literally wrote the book on living with financial peace. On weekdays, he hosts The Ramsey Show, where he answers call-in questions live on the air. Not all advice given by Ramsey will be immediately applicable to the student, such as paying off mortgages, but his approach to money is an important mindset to have as students step into a new stage of their lives.

4:01 pm - Paul, Minneapolis, MN: "Should I pull from my retirement fund to pay off our house?"

Dave Ramsey says yes and to have a mortgage-burning party once they've paid it off. George Campbell, the cohost, agrees. Paul needs to pay off the mortgage as soon as possible to avoid holding debt; removing money from a fund is not a loss in this situation.

4:06 pm - Anna, Grand Rapids, MI: "I am debt-free. Should I start investing or save for my wedding that is in a year?"

Both George and Dave immediately said to save for the wedding, you shouldn't start a marriage with debt. They also advised her to make sure to have a detailed budget for managing the cost of the wedding;

4:11 pm - Pam, Los Angeles, CA: "Should I sell my investment property?"

After doing the math, Ramsey said that the rental property needed to be sold, as Pam was barely making any profit from it. Dave believes that you should be making more by investing in a rental property than the stock market.

4:19 pm - Christina, Seattle, WA: "Should I refinance my student loans?"

At a lower interest rate, she will be able to pay it off faster, so both George and Dave agree that she should refinance her loans.

4:21 pm - Scott and Jenna, Orlando, FL, are in the lobby of The Ramsey Studio to announce that they paid off $94,000 in 33 months, making them debt-free. The first thing they did without debt was a 2-week vacation to Hawaii. Scott and Jenna's main piece of advice they had for listeners was the importance of a budget. They then let out a debt-free scream, a tradition on The Ramsey Show for people who have successfully got rid of debt

4:33 pm - Andrew, MN: "Should I transfer my $20k credit card debt?"

Dave Ramsey advised that if you are planning on paying off your credit card in 10 years, you are the problem; you should pay it off in a year. Transferring debt doesn't get rid of 95% of the problem, so he shouldn't get comfortable if he decides to transfer. He told Andrew he has to stop eating out and spending excessively and pay off the debt as soon as possible. He closed off the question by saying that getting there isn't a trick to money management: it's 80% behavior and 20% head knowledge.

4:44 pm - Jennifer: "We've been looking for a house for nine years. We are thinking of buying a $2 Million house with lots of repairs needed."

Ramsey and Campbell proceeded to ask many questions to understand her situation, only to realize that she didn't know what she was talking about. They agreed they she should purchase the property only if she and her husband could afford it, and both agreed to it. Ramsey also noted how she sounded stressed, almost as if she wanted someone to tell her that she could not purchase the property.

4:58 pm - Dave Ramsey went on a rant about various calls he's had in the past, where callers feel forced into two bad decisions when if they instead only opened their options, they could have prevented themselves from making a mistake. For example, some students feel forced into either going into student loan debt or not going to college when, in actuality, they don't have to go into student loan debt to go into college.

5:05 pm - Jeff and Pam from Philadelphia, PA, have paid off 200,00 in 56 months and are in the Ramsey Studio to announce they are debt-free. One of the tricks they used to encourage themselves to pay off their house was to make a chart of their house, coloring in bars inside the chart for every $6k they paid off. They have told their children they are going to Disney World to celebrate being debt-free. The two tips Jeff and Pam had for others trying to get out of debt are to be happy with what you have and to budget. They ended the segment by letting out a debt-free scream with their children.

5:15 pm - Kathy, Columbus, OH: "I have 42k of student loans, and I make 30k a year. What is the next step?"

Kathy went on to say that her degree is in music education, which Dave injected by saying that doesn't provide a strong return on investment. The next step, Ramsey said, is to find a job that provides a higher income until she can find a way to use her degree. In the future, she could start a business that teaches children music.

5:26 pm - Bethani, Philadelphia, PA: "My parents started a coffee business. I quit my job to run it. Should I close the business?"

5:30 pm - She went on to say how she has seen a spike in profits, from $7k to $52k a year, and has been increasing distribution lately. Additionally, her husband has cancer. Ramsey's advice was to either grow the business to not be so involved with the business or to shut it down and get a standard job; both are good options.

5:36 pm - David, Chattanooga, TN: "What should I do with my money in the bank?"

David currently has 200k in the bank and is afraid to purchase a house because of losing money. Dave Ramsey told him bluntly that he is a cheapskate who doesn't want to spend money. Campbell added that he should find a real estate agent who can help push him to buy a house in his price range. Ramsey ended the segment by saying David should purchase a house within the next 18 months.

5:47 pm - Brad from Davenport, IA, is in the Ramsey studio to announce he has paid off $100k in 32 months and now has paid off his house. He admits that it was worth it to commit to living a debt-free life. The next step for him is to upgrade his house because he put off house repairs to pay off his house payment. He let out a debt-free scream and joined the masses who live without debt thanks to The Ramsey Show.

5:58 pm - Kevin, Irvine, CA: "How much should I save in a 529 for my baby?"

Ramsey responded by saying that how people are educated will change exceptionally in the coming years as the student loan crisis unfolds. In Dave's opinion, colleges have been overcharging for education, and it is now coming back to bite them. Due to this, Ramsey advised not to invest too heavily in a 529.

As the clock strikes 6:00 pm, today's broadcast of The Ramsey Show concluded. The financial common sense Dave Ramsey has is impressive, and the debt-free testimonies are inspiring. By listening to The Ramsey Show and following his multi-step program, financial success is almost a guarantee, something I cannot say of all financial gurus.