During an episode of The Dave Ramsey Show, a concerned caller asked personal finance expert Dave Ramsey what to do after realizing her financial situation was not sustainable. Here’s what Ramsey advised.
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A caller, Olivia from San Diego, revealed to Ramsey that her financial situation was unstable and asked if she, her husband, and their two children should move to a more affordable home and leave everything behind. including their church and family, to build wealth. . Olivia explained to Ramsey that they had just gotten out of debt. Before giving his advice, Ramsey asked the caller to share how much she and her husband make.
Olivia told Ramsey, “My husband made $70,000 last year and I work on his days off.” She added: “I made $30,000 last year.” That puts them at $100,000 in income in San Diego, but the caller mentioned they want to move to Arizona. According to information from Salary.com, the cost of living in San Diego, California, is at least 39.7% higher than in Phoenix, Arizona. The average home cost in San Diego is 101% more expensive than in Phoenix, Arizona. However, Azcentral reported that even in Tucson, the Arizona city with the lowest cost of living, a family of four would need to earn an annual salary of $215,000 to live a comfortable lifestyle. Therefore, a move to Arizona may not make their financial situation more stable and may add more stress, as moving is considered one of life’s most stressful events.
Ramsey responded to the caller by saying, “The way you asked the question, the way you phrased it. You don’t want to leave.” The caller confirmed that he did not want to leave and was only considering it for financial reasons. Olivia explained that she was working hard to keep her daughter in a private Christian school, which was only possible because of the support of their family.
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Ramsey sympathized with Olivia and agreed that “it’s heartbreaking to leave your grandparents,” but added that Olivia has some decisions to make. He explained, “You’re either going to change careers to be able to keep up, or you’re going to make some different choices, like not going to private school.” Because their financial situation is unstable, Ramsey explained that something has to change. Olivia and her family will have to make some tough choices. Ramsey applauded Olivia for recognizing that their financial math isn’t working, saying, “What you realized is that the math isn’t working, and that’s very smart.”
As Ramsey sees it, Olivia has three choices: pull her daughter out of private school, a career change, or move to a whole new state. Ramsey advised Olivia, “One of these three things, and all three are painful. Choose your pain because it will choose you if you don’t.” Olivia and her family must make some decisions before they are forced to do so in a painful way. Ramsey also advised Olivia and viewers that it’s essential to have some type of life insurance to deal with unexpected events when they happen.
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This article Dave Ramsey advises woman to ‘choose your pain, or it will choose you’ when she realizes her financial situation is unstable originally appeared on Benzinga.com
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