Learn from your elders.
I was listening to the Dave Ramsey Show today, and there was a unique caller that was asking Dave for help. She was a 70-year-old woman being sued by Capital One. Before you begin to boo and hiss Capital One, listen to her story.
She told Dave that she had signed up for one of their cards that came in the mail and started using it. She racked up some charges on it for a while and then stopped using it.
Then she said, “Three years later I get a warrant on my door”.
Three years had gone by, and she had not paid the amount that she had charged on her Capital One credit card. They wanted to know what was in her wallet. She is being sued for $2,500.00.
Why doesn’t she just pay them? She can’t, because she doesn’t not make or have enough. She is on social security, and still receives some alimony.
You might ask, are there any family members? “None that I trust.” Her words, not mine.
Are there any friends that could help her out? “None that I trust.” Her words, not mine.
Does she owe Capital One the money? She sure does.
You could ask, “What will happen next?”
Or, you could ask my question, “How does a 70-year-old get herself in this situation?”
Maybe she had no clue how to handle money, because that is what her husband did? She did admit that she ran a business, but one of her kids did all the accounting. Or maybe she was never exposed to some pretty basic personal finance steps.
I subscribe to a blended method of two sets of steps.
Dave Ramsey Baby Steps
Crown Financial Ministries Money Map Principles
Maybe you have never heard anyone talk to you about personal finances, budgeting, no debt, savings, etc.
Step one: Put $1,000.00 in an emergency fund. This money goes into an account that is not easily accessible. It truly is money for a rainy day.
Step two: Clean up, and get rid of your debt. EVERYTHING! My wife and I used the Debt Snow Ball, we listed our debts smallest to largest and paid them off, one at a time. Once we finished the current smallest debt, we added that amount to what we were paying on the second debt.
These two steps, even though they are just the beginning, can save a lot of headache, heart ache, and money. If you want to know what the rest of the steps are I would recommend reading, “The Total Money Makeover” and “Financial Peace” by Dave Ramsey and/or “Your Money Map” and “Your Money Counts” by Howard Dayton.
Either way, my hope is that you won’t be 70 years old, and making financial mistakes that should have never been made. Start today, so you can change your tomorrow.
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this is such good advice! i didn’t even know there was a dave ramsey show. what rock am i living under?! my grandma was like that after my grandpa died. CLUELESS. my dad had to go to her house EVERY week to pay her bills for her.
The Dave Ramsey Show is on now between 2 and 5. You can also watch his FOX Business show on Hulu.com, if you don’t get the FOX Business channel through your cable provider. I thought that caller was a great teaching moment, to show us that sometimes our elders teach us life lessons while they are still learning them.