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Dave Ramsey

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Ryan calls in from Cleveland, Ohio; he has a car that’s not doing so well. The car no longer meets the environment check set by Ohio apparently because the computer is failing. Dave suggests he go ahead and get a second opinion on that it seems fishy. But, unfortunately, it’s rather expensive to get the part fixed, and the mechanic didn’t even guarantee that it would work afterward. So Dave doubles down on his stance of getting a second opinion before you waste the money. But, of course, this goes for all of life. He further adds you shouldn’t be spending more than the car worth to fix a car. When you look at what Ryan is making they would be safe to buy a mother comparable car without slowing their debt snowball, states Dave.

Ryan and his wife are currently in Baby Step 2, which is to clear all debt. They currently have over $110,000 in student loan debt, but that is all. Thankfully they make over $150,000 a year, so clearing it shouldn’t be a problem. Based on his savings from Baby Step 1 you should be well enough off to fix any minor emergency that comes your way. As you are working your way through Babystep 2, you have your emergency fund, a lifeline if needed. If you deplete it take some time to rebuild while still focusing on Step 2. There is no reason to move backward in the process. This is because when you reach Baby Step 3 you will be putting away 3-6 months’ worth of savings. This is meant to protect you from car emergencies or others of its nature.


Catch The Dave Ramsey Show weekdays from 1 to 3 pm on Money Talk 1010
Dave Ramsey is America’s trusted voice on money. 23 million get guidance from Dave’s radio show on Money Talk 1010, his podcasts, and videos. He’s a national best-selling author and has changed over 6 million lives with his guided money plan.

Dave Ramsey’s 7 Babysteps For Success


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