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13 hours ago
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NYC man admits he put $11K engagement ring on a 0% interest credit card — when he has $25K sitting in savings
One New York City man thought he'd gamed the system when he bought an $11,000 engagement ring using a 0% interest credit card offer from Bank of America. With $25,000 sitting in a high-yield savings account earning 4%, Nick figured he could carry the balance for two months, earn a little interest, and make the most of the promo window. 'I have no intention of putting anything else on the credit card,' he explained on The Ramsey Show. 'It's just a cash outflow question as far as managing my monthly payment.' Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) But personal finance guru Dave Ramsey wasn't impressed. 'Write a check today and pay off the card,' he said bluntly. 'You did a sweet, good thing in a dumb, bad way.' Ramsey's point? The math simply doesn't work out. The interest earned over 60 days would barely cover a fast-food lunch. 'You made enough to buy a biscuit,' Ramsey quipped. 'You don't beat Bank of America. The only way to beat them is to stay away.' Nick's hesitation came from the fact that dipping below $25,000 in his savings account would drop his interest rate from 4% to under 1%. But as Ramsey calculated, 4% of $10,000 is just $400 a year, less than $40 a month. 'You can't buy a pizza [with that],' he added. 'You've spent hours screwing with this in your mind,' Ramsey explained. 'It paid you about $1.16 an hour.' The Ramsey Show co-host John Delony chimed in with a dose of real-world forecasting. Once the wedding planning starts there will be unexpected expenses, some of which may require cash deposits, and it'll be all too easy to 'float' just one more month. That's exactly how banks make their money, by getting people comfortable with debt. At the end of the call, Ramsey wasn't sure if Nick was fully convinced. 'You don't want to put that ring on her finger and say, 'Thank you, Bank of America,'" Ramsey said. 'That's gross.' Nick may have had good intentions, but Ramsey's message was clear, when it comes to major life moments, avoid playing games with debt — no matter how sweet the introductory offer sounds. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it While 0% APR (annual percentage rate) offers can seem appealing, they can come with hidden risks. Many of these offers are deferred interest promotions. This means that if the balance isn't paid in full by the end of the promotional period, interest is charged retroactively from the purchase date. So, let's say you make a $4,000 purchase on such a card and only pay $2,000 of it off. Consider that average APR on retail store credit cards, for example, is close to 30%, that's $50 a month simply in interest. You could end up owing hundreds of dollars in interest over time. Relying on 0% APR offers can also encourage overspending. The temptation of 'free' financing might lead consumers to make purchases they can't afford, thinking they have more time to pay. Without a clear repayment plan, this can result in accumulating debt. To be safe, it's critical to read the fine print of any credit card offer. Make sure you understand whether the offer is truly 0% APR or if it's a deferred interest deal. Have a solid repayment plan in mind to pay off the balance before the promotional period ends. And if you can't commit to paying off the full balance in time, it might be better to rethink the purchase or consider other financing options. In Nick's case, Ramsey advised paying off the credit card balance immediately and cutting up the card to avoid future temptations. It's a reminder that even 'free' financing can come with hidden costs. Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
15 hours ago
- Business
- Yahoo
NYC man admits he put $11K engagement ring on a 0% interest credit card — when he has $25K sitting in savings
One New York City man thought he'd gamed the system when he bought an $11,000 engagement ring using a 0% interest credit card offer from Bank of America. With $25,000 sitting in a high-yield savings account earning 4%, Nick figured he could carry the balance for two months, earn a little interest, and make the most of the promo window. 'I have no intention of putting anything else on the credit card,' he explained on The Ramsey Show. 'It's just a cash outflow question as far as managing my monthly payment.' Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) But personal finance guru Dave Ramsey wasn't impressed. 'Write a check today and pay off the card,' he said bluntly. 'You did a sweet, good thing in a dumb, bad way.' Ramsey's point? The math simply doesn't work out. The interest earned over 60 days would barely cover a fast-food lunch. 'You made enough to buy a biscuit,' Ramsey quipped. 'You don't beat Bank of America. The only way to beat them is to stay away.' Nick's hesitation came from the fact that dipping below $25,000 in his savings account would drop his interest rate from 4% to under 1%. But as Ramsey calculated, 4% of $10,000 is just $400 a year, less than $40 a month. 'You can't buy a pizza [with that],' he added. 'You've spent hours screwing with this in your mind,' Ramsey explained. 'It paid you about $1.16 an hour.' The Ramsey Show co-host John Delony chimed in with a dose of real-world forecasting. Once the wedding planning starts there will be unexpected expenses, some of which may require cash deposits, and it'll be all too easy to 'float' just one more month. That's exactly how banks make their money, by getting people comfortable with debt. At the end of the call, Ramsey wasn't sure if Nick was fully convinced. 'You don't want to put that ring on her finger and say, 'Thank you, Bank of America,'" Ramsey said. 'That's gross.' Nick may have had good intentions, but Ramsey's message was clear, when it comes to major life moments, avoid playing games with debt — no matter how sweet the introductory offer sounds. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it While 0% APR (annual percentage rate) offers can seem appealing, they can come with hidden risks. Many of these offers are deferred interest promotions. This means that if the balance isn't paid in full by the end of the promotional period, interest is charged retroactively from the purchase date. So, let's say you make a $4,000 purchase on such a card and only pay $2,000 of it off. Consider that average APR on retail store credit cards, for example, is close to 30%, that's $50 a month simply in interest. You could end up owing hundreds of dollars in interest over time. Relying on 0% APR offers can also encourage overspending. The temptation of 'free' financing might lead consumers to make purchases they can't afford, thinking they have more time to pay. Without a clear repayment plan, this can result in accumulating debt. To be safe, it's critical to read the fine print of any credit card offer. Make sure you understand whether the offer is truly 0% APR or if it's a deferred interest deal. Have a solid repayment plan in mind to pay off the balance before the promotional period ends. And if you can't commit to paying off the full balance in time, it might be better to rethink the purchase or consider other financing options. In Nick's case, Ramsey advised paying off the credit card balance immediately and cutting up the card to avoid future temptations. It's a reminder that even 'free' financing can come with hidden costs. Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. 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
3 days ago
- Business
- Yahoo
Philadelphia woman in ‘tricky situation' after her mom asked for $3,000 — from the grandkids' savings account
Andrea, a wife and mother from Philadelphia, recently found herself in a high-stakes financial and emotional crossroads, caught between family loyalty, cultural expectations and a commitment to financial stability. 'I am in a really tricky situation,' Andrea shared during a recent call to The Ramsey Show. 'My brother and my mom are asking me to [lend] my brother $3,000.' Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) The purpose of the request was to cover her brother's business expenses. But Andrea and her husband have been saving that money to try to pay down debt. Here's what Ramsey had to say to Andrea. Ramsey Show Co-host Jade Warshaw posed an alternative suggestion. 'Why doesn't she lend him the $3,000?' she asked the caller, referring to Andrea's mother. 'Because she doesn't have the money,' Andrea replied. Dave Ramsey's response? 'Neither do you. You're broke and in debt.' But the plot thickened when Andrea revealed her mother's solution: tapping into Andrea's children's savings. 'I talk to my mom sometimes, telling her we save money for the kids, right? So her idea was to take the money from the kid's savings account to give my brother the $3,000,' she said. 'She has a lot of ideas about what you should do with your money,' Warshaw noted, 'Do you feel like you have to listen to what she's asking you to do?' Andrea hesitated, noting her brother once helped her early in her marriage, but that support came in the form of small items for her kids. 'That was not $3,000. That was a hundred dollars,' Ramsey said. 'Because I got to tell you in my world, when grandma asked for the kids' money for the brother, that means grandma needs to be smacked.' Originally from Ecuador, Andrea noted that extended family support is a common expectation in her community. Ramsey responded, 'In your culture, it is more normal to share with extended family … but this is your household. And your household is separate.' Cultural norms can shape financial habits, but limits are limits. Even with that understanding, Andrea expressed hesitation. 'My brother is more … resentful. If you tell him something that he doesn't like … then he's not going to talk to me,' she told the hosts. She feared that saying no would lead to tension or silence. 'There's no consequence here other than adults choosing how they're going to behave next. If your brother gives you the cold shoulder, that's not something you can control,' Warshaw said. 'All you can control is your response.' Andrea admitted that her mom would likely try to persuade her. Ramsey's response was simply, 'No is a complete sentence.' He suggested that Andrea tell her mother, 'Mom, I love you. I love him. That's not in question. But this money is set aside for my children. And the answer is going to be no, no matter how long we talk.' Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Financial experts emphasize the importance of setting clear boundaries in similar scenarios. According to a survey by Ipsos for BMO, 34% of partnered Americans report that money is a source of conflict in their relationships. Money issues with extended family can add to that stress. Here are some tips to navigate tricky situations like these: Start with an open conversation. Schedule time to sit down and talk about your concerns without placing blame. For instance, Andrea could say, "I understand your situation, but I need to prioritize my children's future savings." Establish firm boundaries. Don't be afraid to set your limits and let your family know that they need to respect them. Offer different types of support. Look for other ways to help, such as recommending resources or financial counseling services that may be useful. Finally, if the conversation doesn't seem to be progressing, consider involving a neutral third party, such as a financial advisor, to help facilitate. It can be tough, but by approaching the situation with firm boundaries, it's possible to maintain family relationships while also protecting your financial well-being. Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
3 days ago
- Business
- Yahoo
Philadelphia woman in ‘tricky situation' after her mom asked for $3,000 — from the grandkids' savings account
Andrea, a wife and mother from Philadelphia, recently found herself in a high-stakes financial and emotional crossroads, caught between family loyalty, cultural expectations and a commitment to financial stability. 'I am in a really tricky situation,' Andrea shared during a recent call to The Ramsey Show. 'My brother and my mom are asking me to [lend] my brother $3,000.' Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) The purpose of the request was to cover her brother's business expenses. But Andrea and her husband have been saving that money to try to pay down debt. Here's what Ramsey had to say to Andrea. Ramsey Show Co-host Jade Warshaw posed an alternative suggestion. 'Why doesn't she lend him the $3,000?' she asked the caller, referring to Andrea's mother. 'Because she doesn't have the money,' Andrea replied. Dave Ramsey's response? 'Neither do you. You're broke and in debt.' But the plot thickened when Andrea revealed her mother's solution: tapping into Andrea's children's savings. 'I talk to my mom sometimes, telling her we save money for the kids, right? So her idea was to take the money from the kid's savings account to give my brother the $3,000,' she said. 'She has a lot of ideas about what you should do with your money,' Warshaw noted, 'Do you feel like you have to listen to what she's asking you to do?' Andrea hesitated, noting her brother once helped her early in her marriage, but that support came in the form of small items for her kids. 'That was not $3,000. That was a hundred dollars,' Ramsey said. 'Because I got to tell you in my world, when grandma asked for the kids' money for the brother, that means grandma needs to be smacked.' Originally from Ecuador, Andrea noted that extended family support is a common expectation in her community. Ramsey responded, 'In your culture, it is more normal to share with extended family … but this is your household. And your household is separate.' Cultural norms can shape financial habits, but limits are limits. Even with that understanding, Andrea expressed hesitation. 'My brother is more … resentful. If you tell him something that he doesn't like … then he's not going to talk to me,' she told the hosts. She feared that saying no would lead to tension or silence. 'There's no consequence here other than adults choosing how they're going to behave next. If your brother gives you the cold shoulder, that's not something you can control,' Warshaw said. 'All you can control is your response.' Andrea admitted that her mom would likely try to persuade her. Ramsey's response was simply, 'No is a complete sentence.' He suggested that Andrea tell her mother, 'Mom, I love you. I love him. That's not in question. But this money is set aside for my children. And the answer is going to be no, no matter how long we talk.' Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Financial experts emphasize the importance of setting clear boundaries in similar scenarios. According to a survey by Ipsos for BMO, 34% of partnered Americans report that money is a source of conflict in their relationships. Money issues with extended family can add to that stress. Here are some tips to navigate tricky situations like these: Start with an open conversation. Schedule time to sit down and talk about your concerns without placing blame. For instance, Andrea could say, "I understand your situation, but I need to prioritize my children's future savings." Establish firm boundaries. Don't be afraid to set your limits and let your family know that they need to respect them. Offer different types of support. Look for other ways to help, such as recommending resources or financial counseling services that may be useful. Finally, if the conversation doesn't seem to be progressing, consider involving a neutral third party, such as a financial advisor, to help facilitate. It can be tough, but by approaching the situation with firm boundaries, it's possible to maintain family relationships while also protecting your financial well-being. Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. 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
5 days ago
- Business
- Yahoo
One Time Dave Ramsey and Rachel Cruze Disagree About Money — Expert Shares Who's Right
Father-daughter personal finance team Dave Ramsey and Rachel Cruze agree on most money matters: Paying down debt, building emergency savings and living below your means. But every so often, like any family members, they go head-to-head on what's best when offering advice to viewers of The Ramsey Show. Below is one time they both disagreed with each other on money matters and who may be right. In 2021, when the price of used cars rose and it was difficult to find a new vehicle, a Ramsey Show viewer called in asking if the experts would recommend buying a new car rather than a used car, if the new car was actually cheaper. Jared, age 24, asked, 'Are we in a situation where it might be acceptable to buy new, if you've got the cash for it, rather than buy used?' Cruze agreed that 'math is math' and it makes sense to buy the less expensive car in that economic climate. Looking back on the show in a YouTube video, she acknowledged those were crazy times. Ramsey disagreed on ever buying a new car, for any reason, until you have a net worth exceeding $1 million. 'I don't want you to get in the habit of asking the wrong question,' Ramsey said to the caller. 'The wrong question is: 'How can I figure out a way to violate a proven system towards wealth and still be okay because I want a truck?' The rationalization process is what gets people in trouble. Cars go down in value.' The car market has somewhat stabilized in 2025 and it would be highly unusual to find a used car priced higher than a new vehicle. GOBankingRates asked Elana Feinsmith, certified financial planner (CFP) and certified financial therapist (CFT) with Oak Financial Coaching, if Ramsey was right in that economic climate to stick to his philosophy of never buying a new car. Further, we asked, in today's world, should anyone ever purchase a new car? 'I don't want to make anyone right or wrong in this. What was right at one time may or may not be correct now. If times have changed, they need to look at what made financial sense in that time,' she said, acknowledging that times were different back then. She said many factors come into play when deciding whether to buy a new or used vehicle, such as: 'What are the total costs of this? Will the insurance on the new car be much more than an older car? What's the mileage [on the used vehicle]? What's the estimated repair costs on each car?' Equally important, Feinsmith said, is to consider the emotional component of the purchase. 'You have to ask, how do you feel in the car? If you're going to get in the [used] car each time and be miserable, because you bought X but really wanted Y, you need to look at what it's worth to you. If you love the new car and it's similar financially, then it would make sense to buy the new car,' she said. 'There are times that rules should be broken,' Feinsmith said, agreeing with Cruze. However, it's important to consider all angles and options before jumping into a major purchase. 'As a financial therapist, I want to get people from avoidant to empowered. It's worth asking: Is there another solution that would give you as much joy [as the new car] and doesn't cost as much?' Feinsmith explained. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on One Time Dave Ramsey and Rachel Cruze Disagree About Money — Expert Shares Who's Right 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
