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Yahoo
17-07-2025
- Automotive
- Yahoo
Dave Ramsey Says Don't Buy A New Car Unless You're Worth $1 Million
Renowned financial advisor Dave Ramsey has offered valuable advice to Americans considering buying a new car, highlighting the importance of making a well-informed and financially sound decision. What Happened: Ramsey advises against the pursuit of the perfect car, instead urging buyers to focus on practical needs and financial constraints, reports The Street. He also suggests that buyers ask themselves essential questions such as the type of vehicle needed for daily routines, the number of passengers typically carried, and the importance of fuel economy and storage capacity. Trending: GoSun's Breakthrough Rooftop EV Charger Already Has 2,000+ Units Reserved — He also encourages buyers to be patient and explore various options, both online and in showrooms, before making a decision. Ramsey warns against the rapid acceptance of the first appealing offer, emphasizing the importance of finding the best fit for individual needs. However, Ramsey also offers a sobering reminder about the steep depreciation of new cars, warning that unless your net worth exceeds $1 million, opting for a used vehicle is the wiser financial move. 'Brand-new cars drop in value like a bag of rocks, losing 60% of their value in the first five years,' he said in a post last year. The financial guru also recommends that buyers narrow their options to a handful of vehicles that align with both their budget and daily needs. He asked people to assess key factors like safety ratings, acceleration, fuel efficiency, and overall comfort, urging shoppers to prioritize practicality over simply choosing the cheapest It Matters: The advice from Ramsey comes at a time when the cost of car ownership is a significant concern for many Americans. A January 2025 report from Edmunds reveals a troubling trend in auto financing. In the fourth quarter of 2024, about 24.9% of trade-ins used for new car purchases involved negative equity, up from 20.4% during the same period in 2023. The average amount borrowers owed beyond their vehicle's value hit a record high of $6,838, exceeding the previous record of $6,458 set just a quarter earlier. Alarmingly, nearly a quarter (24.6%) of those with negative equity were more than $10,000 underwater on their auto loans. Ramsey's advice also aligns with his previous stance on car payments, where he advocated for avoiding the middle-class trap of perpetual car payments, stressing the importance of making financially prudent decisions when it comes to car ownership. Meanwhile, legendary investor Warren Buffett once opted to wait on buying a new car for years. The Oracle of Omaha drove his 2006 Cadillac DTS for eight years before finally upgrading — but only after General Motors CEO Mary Barra personally convinced him. After hearing about dozens of improvements during a brief conversation, Buffett agreed to trade it in for a 2014 Cadillac XTS. Read Next: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — And You Can Invest At Just $6.37/Share These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends Photo courtesy: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Dave Ramsey Says Don't Buy A New Car Unless You're Worth $1 Million originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-07-2025
- Business
- Yahoo
Son Wants To Cash Out On Dad's $6 Million Business. Dave Ramsey Brings Up A Teary Man Who Regretted Selling For $400 Million
A 26-year-old business owner called recently into Dave Ramsey's 'EntreLeadership' podcast with a tough decision: sell the family business for millions or keep building what his father started. Dan co-owns a New York-based restaurant cleaning company with his 65-year-old father, who founded the business and is now ready to retire. The company brings in $4.75 million annually and employs 80 cleaners. After years of working together, a big competitor has offered to buy them out for $6 million. The offer includes $4.5 million in cash and $1.5 million in rollover equity, along with a leadership role for Dan to run the acquiring company's New York City operations. Don't Miss: Maximize saving for your retirement and cut down on taxes: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Dan said he and his dad would split the proceeds evenly. 'It's more money than either of us have ever seen,' he admitted. Ramsey told Dan to think beyond the immediate windfall. 'One of the decision-making formulas I use is I get out of the moment and I extrapolate out decades,' he said. 'When you're 56, and you look back on your life, how are you going to feel about the 26-year-old version of you?' Dan said he hadn't considered that. 'I never really thought that far out into the future.' He knows that, invested properly, that chunk of change could be worth several million more down the road. Ramsey agreed the math made sense: 'If you put $2 million in your pocket at 26, it's not a bad day.' Trending: GoSun's Breakthrough Rooftop EV Charger Already Has 2,000+ Units Reserved — Still, he cautioned against chasing a payout just because it looks good on paper. 'I've known people who got hundreds of millions of dollars for selling their business, and the only thing they got other than that was wishing they didn't sell it,' he said. He told the story of a man who sold his company for $400 million but later called it 'the dumbest thing I ever did,' crying because the company lost its soul under new ownership. 'Selling something for a big chunk of change is not always something that is without regret,' Ramsey added. But he didn't think Dan would fall into that trap. 'This is an excellent exit for [your dad] and an excellent on-ramp for something else for you,' he said. 'I think you do this.' Still, he left listeners with a straightforward reminder: 'Just because you get a pile of money doesn't mean automatically we need to do it.' Read Next: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Here's what Americans think you need to be considered 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Son Wants To Cash Out On Dad's $6 Million Business. Dave Ramsey Brings Up A Teary Man Who Regretted Selling For $400 Million originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
02-07-2025
- Business
- Yahoo
'Dave Ramsey' Caller Asks If It's Appropriate To 'Dig Into' An Employee's Personal Finances To Decide Their Pay, And It Gets Complicated Fast
A business owner who recently called into 'The Ramsey Show' found himself in a tricky spot: he wanted to know if it was okay to ask an employee about their personal finances in order to 'dig into it' to decide how much to pay them. The answer, unsurprisingly, was layered. The caller, Joe, from San Diego, explained that he had taken over another business owner's book of business in exchange for offering that person a job. 'We had a document drafted that pretty much gave us the book of business in exchange for their employment guaranteed for six months,' Joe said. The acquisition helped Joe's business grow from $300,000 to over $1 million in revenue. Don't Miss: Maximize saving for your retirement and cut down on taxes: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — However, the employee he took on had run the original business into the ground. Joe described issues ranging from unpaid taxes to a lack of proper insurance coverage. 'He was overpaying himself, taking on debt they didn't need,' Joe said, adding that the employee hadn't paid taxes in three years and owed more than $20,000. Despite all this, Joe wanted to be generous. 'I'm weaning them off being used to be able to live frivolously,' he admitted. But Ramsey co-host George Kamel stepped in with a clear boundary: 'At Ramsey, we never look at someone's personal finances to figure out how much we're going to pay them.' Trending: GoSun's Breakthrough Rooftop EV Charger Already Has 2,000+ Units Reserved — Kamel said the only reason to ask for a budget in the hiring process is to make sure someone can actually live on the salary being offered. It's not about tailoring pay to match someone's debt. 'We don't do it to say, well, they need $10,000 to live, let's pay them $10,000 a month,' he explained. Co-host Ken Coleman jumped in to say: 'You already have a pretty good idea about what's a healthy number, and anything above that is you doing charitable work.' Joe estimated that the going market rate to run a branch like this is around $75,000 to $80,000. At most, $90,000. Coleman pressed him: 'You can't justify a nickel beyond that, true or false?' Joe replied, 'That's true.' Coleman also made it clear that exceeding that amount would only result in problems. 'If you pay him any more than the number you just gave us and he doesn't make any changes at all... you become resentful,' he hosts advised Joe to make a clean offer just like he would to any other candidate. 'Treat him like I would any other person who is applying for this job. Give him that dignity,' Kamel said. If the employee turns down the offer or becomes entitled, that might be a sign it's time to hire someone else. 'In all honesty, business numbers, I'd rather hire someone else, train them,' Joe admitted by the end. Coleman closed with this reminder: 'Be careful trying to be kind that we don't make bad business decisions on a personal decision.' Read Next: Many are using retirement income calculators to check if they're on pace —Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report This article 'Dave Ramsey' Caller Asks If It's Appropriate To 'Dig Into' An Employee's Personal Finances To Decide Their Pay, And It Gets Complicated Fast originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
28-06-2025
- Business
- Yahoo
New To Investing? Vincent Chan Says Low-Cost Index Funds Are the Easiest Way to Get Started
Investing is one of the common paths to long-term wealth, but it can feel complex if you are just getting started. Luckily, financial guru Vincent Chan recently revealed the simplest way to get started. Not only is it easy to start investing based on Chan's advice, but his strategy has a proven track record of multiplying your money in the long run. The Easiest Things To Invest In Are Low-Cost Index Funds' Chan explained in the video. It sounds basic, but that doesn't make it a bad suggestion. Here's why index funds remain one of the most popular ways for people to invest. Don't Miss: GoSun's breakthrough rooftop EV charger already has 2,000+ units reserved — become an investor in this $41.3M clean energy brand today. Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. Index funds offer investors exposure to a basket of companies. Some index funds contain a few dozen companies, while other index funds contain hundreds of publicly traded corporations. A couple of index funds even have well over 1,000 stocks, offering broad exposure to the market. You don't have to get the most diversified index fund to get good results. Some funds with 100 stocks perform better than funds with 500 stocks. The main strength of index funds is that they enable automatic portfolio diversification and streamline investing. You don't have to research a bunch of stocks, know what to look for in a good stock or follow the news every day. A portfolio manager can do all of those things for you as your money grows in an index fund. You can accumulate index funds in any investment account that lets you trade stocks. However, Chan suggests giving preference to tax-advantaged accounts like your 401(k), HSA, and Roth IRA when you make investments. These accounts let you reduce your tax bill as you grow your investments. Traditional retirement accounts let you reduce your taxes right now, while you won't have to pay any taxes on withdrawals from your Roth IRA. Trending: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100. Chan suggests investing any remaining money into a brokerage account once you have maxed out your tax-advantaged accounts. Investors should also monitor any changes the IRS makes to the maximum amount they can contribute to retirement accounts. You also get to make catch-up contributions to your retirement accounts the moment you turn 50. Chan recommends looking for index funds that have low expense ratios. This ratio reflects the cost of holding the fund and having an investment firm manage it on your behalf. Passively managed ETFs that mirror benchmarks like the S&P 500 typically have low expense ratios. It's realistic to find passively managed ETFs that have expense ratios below 0.10%. Investors can further explore index funds by analyzing their total returns. You can look at how much a fund has returned over the past five and ten years to gauge if it's consistent or volatile. It's also good to look at a fund's asset allocation to see if most of the stocks are in the tech sector or another industry. Some investors also look at a fund's yield to see how much cash flow they will receive just by holding on to shares. While most investors shouldn't prioritize a fund based on its yield, receiving passive income from investments becomes more valuable as you get closer to retirement. See Next: $100k in assets? Maximize your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can earn passive income with just $100. Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article New To Investing? Vincent Chan Says Low-Cost Index Funds Are the Easiest Way to Get Started originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
28-06-2025
- Business
- Yahoo
5 Things You May Have In Common With Every Millionaire
Are you on the path to becoming a millionaire? If you want to know for sure, it's good to see what millionaires already have. Even better, see which money habits they all seem to have in common. You can do this research yourself, but why do that when you can get quick access to the five things every millionaire has in common? You might check off all five items on this list. In that case, you're on your way to a seven-figure portfolio. If not, it may be worth seeing how you can align your finances and goals to have these five traits. Don't Miss: GoSun's breakthrough rooftop EV charger already has 2,000+ units reserved — become an investor in this $41.3M clean energy brand today. Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. Millionaires make regular investments in assets like stocks and real estate that gain value over time. Stocks are the easiest asset to enter since they are highly liquid. Cryptocurrencies have the same convenience. You don't have to build or maintain a property to buy stocks and crypto. Real estate is another popular asset since people will always need places to live. Real estate also has unique tax advantages that you won't find with stocks. Most millionaires don't blow through their money, especially people who take decades to reach the seven-figure milestone with steady investments. They look for ways to save money, and one of the best ways to cut your expenses is by purchasing a used car that gets the job done. Used cars have already endured a lot of depreciation. It's better to get a car that has already lost value than it is to drive a new car and watch its value plummet the moment you pick it up from the dealership. Opting for more affordable cars will give you extra money to pour into your investments. Then, your wealth will compound faster and set you up for a seven-figure portfolio. Trending: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100. A college degree is not required to become a millionaire, but many of them have college degrees. It's more common for millionaires to get degrees from public state schools than top-tier private universities. Many people use their college degrees to pursue new career opportunities. It's better to have a college degree than it is to not have one. However, you shouldn't be discouraged if you do not have a college degree. Some people have become millionaires off a high school education. Many millionaires invest to build wealth, and they also tend to use 401(k) plans to boost their wealth. These accounts come with significant tax advantages, and most employers match a portion of your contributions. It's good to max out your 401(k) plan each year. Doing this for 20 years can help you establish a strong nest egg, and if you can max out your 401(k) plan for more than 20 years, that's even better. Plus, when you turn 50, you can make an annual catch-up contribution in addition to your regular contribution. Combine a 401(k) plan with an IRA, and you can contribute even more money to tax-advantaged accounts every year. The last thing most millionaires have in common is that they don't carry credit card balances. While any debt has interest, credit cards are notorious for their high rates. You can end up with an APR that's close to 30% if you don't manage your credit card debt and end up with a low FICO score. The best-case scenario is an APR of about 20% for most cardholders. Millionaires don't spend more than they make each month, making it easy to pay off their credit cards each month. By paying off their credit cards on time, millionaires avoid interest while enjoying all of the perks that come with having a credit card. See Next: $100k in assets? Maximize your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can earn passive income with just $100. Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 5 Things You May Have In Common With Every Millionaire originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
