12 Things to Do Differently with Money in 2023 with Dave Ramsey

foreign hey you guys Happy New Year it's 2023 I can't believe it and welcome to this episode of the Rachel Cruz show and today's episode I have my dad Dave Ramsey back with us thanks for being back good to be back time to kick off the year I know and we do this video every year you may not remember but we've done this three years in a row I think it's been three and it's one of the highest viewed episodes that we do probably because everybody wants to know what to do with the first of the year that's true too so we love to talk about okay what are things that you can do different differently this coming year than maybe you did in the past according to Trends and what's going on in the world so we're going to walk through 12 things that you guys can do different this year and last year specifically 2022 was nuts with just the markets were up and down inflation like all this stuff the housing market it just felt like a why it felt like a wild year financially it did these things there's a couple of reasons you need to look at these 12 things number number one is the old thing if you keep doing the same thing over and over again and expect a different result that is the definition of insanity so if you don't like where you are you gotta change something yeah number two there's a lot of stuff out there right now that you can't control but there are some things you can control and if you control and make the changes in the areas that you control the controllables you're going to see a real positive response in the math in your numbers but also on your anxiety level going down absolutely okay so let's kick it off 12 things number one first and foremost the budget that's right we always talk about budgeting on the show but really being intentional with your money if you've not been doing this it's one of the keys if not the key to really Building Wealth and winning financially you know it's an old thing that's been out there forever in the sense that you know like you go to an old sales school back in the 70s or an 80s that I would have gone to okay and they say okay five percent of the people set goals and five percent are inordinately six more successful in their lives than the other 95 percent well guess what five percent of people do a budget 95 don't well and and five percent are inordinately successful right with their money and so this is not something you go oh you know it's just a Ramsay thing or it's just my grandma said to do a budget or it's kind of common sense to do a budget but it actually is financial goal setting for the month and it is what the people that win do it's what winners do if you want to win with money and you don't really have a choice on this one you've got to put it on paper on purpose before the month begins get your every dollar app out do that exact same thing where you're giving your money in an assignment because 95 percent of the public wanders around has no idea where their money went and they get to the end of the month and they have too much month left at the end of the money and stress and anxiety and they are victims of all the outside influences and problems that we have right now more so than those who control it totally and we hear all the time you guys that when you actually live on purpose with your money and you do a budget and you know where it's going it does not feel like this restrictive like oh my gosh I have to live cheap and it's not fun and all this that's that's how it's painted to feel but after a while when it becomes a habit in your life it's actually such freedom because you're like okay I'm controlling what I can control which is my income and I have the ability to like have a say over my life versus everything just happening to me like what you were saying it's like no you actually have a plan and you're putting actions to your money to your hard-earned money as well so quickly a zero-based budget is what we teach it's your income for the month minus all of your expenses including giving and saving should equal zero so go down It Go download every dollar it's like he said because there's great tutorials on that but honestly make it a habit of being intentional with where your money's going it gives you peace and it is your choice no one tells you what you have to put on the paper you decide and you are now in control it's an old 90s word you are empowered the budget empowers you it's overworked overused word but you know we want to empower people we want to but that's that's what the budget does it gives you power you are empowered over the subject that is such a debilitating shame-inducing subject absolutely but give such peace and Clarity all right number two budget for inflation so inflation is something that we've experienced a lot in 2022 we're experiencing now and so budgeting is going to help you period in your life like what we're talking about number one because it's actually going to give you uh margin we we find that people will say when I budget I actually feel like I got a raise so that in turn is going to help you combat inflation but there probably are going to be things that you're going to have to cut you know I feel like we're so used to in our world today these things that we think are needs that are actually wants that I'm not talking about just going in like splurging on a new pair of shoes but I mean it's everything from like subscriptions if there's like delivery services like these things that we have in the rhythm of Our Lives that there's times it's like okay if if the budget is tight there are things that you will have to cut in order to make the math work and specifically magnify because of inflation so inflation's something that we've talked about a lot this past year but it's it's affected people's budgets and you feel in so you do have to adjust for it I think the way to get your mind around it is uh the easiest way for me is this when we first started helping people with their money we were primarily working with people in extreme distress they're almost in foreclosure there's five pounds payments behind there are two car payments behind there have lost a job you know they've got extreme Financial stress okay how do you fix that budget what do you do with that well your budget becomes the on and off switch between needs and wants and you have to take care of your needs first food shelter clothing transportation and utilities we always call it keep the four walls of your house up right if you take care of those needs and you go okay I'm warm I'm fed I have shelter the car has gas in it but it does have gas in it right um you know all of that I can kind of relax because I'm not going to be homeless I'm not going to be then then I can look at the once and go well this is a Monopoly game and it's not going so well on the ones yeah I got to cut some stuff out so but you if you try to just Pile in there you know food as opposed to Netflix one's a necessity and one's a want you know and then you go ah your brain just starts to explode with anxiety with stress and you start to be overwhelmed and then you start screaming at the TV and at the politicians to get this fixed because you're now a victim of the thing but when you take control of the Necessities it allows your body as Dr John deloney would say to relax yep absolutely and your shoulders to drop and then the rest of it is like well this sucks but I can still work it through yep all right speaking of people not uh waiting or waiting on the governments to fix everything number three do not wait on student loan forgiveness you guys if you have student loans be paying on them okay and this is kind of a controversial subject because we talk about all the time we're answering we want you to be debt free but we don't want you waiting on someone else to do it because let's be honest when you wait on Washington and you're waiting on everything to happen you're not probably not could not happen but 100 sure if you pay off your debt that will happen and so this is something that a lot of people I mean I've talked to a lot of people and they're it's like I'm gonna just wait and see but here's another thing too if you do pay it off and you want to get in the system and they pass it and it actually goes through and everything you can get a refund you can apply for that maybe um but this idea of of waiting because it sounds good right if you are forty thousand dollars in student loan debt and they're like yeah we're gonna pay some of that off for you it's like well that sounds great instead of me going getting an extra job cutting expenses that sounds a whole lot better but the hard thing is those promises are not usually kept that's what's hard well they either couldn't keep them or had no intention of keeping them from the start depending on your political view and your view of the uh you know the the people in office and uh so you know why are why are you being played by this subject why are you being you know for what four years we've been talking about this and now it has come down to it as an unkept political promise at this stage well you I understand understand it's still in the air everybody's still talking about it but that's all they're doing is talking and again back to our earlier thing how do you fix your life you fix your life you don't wait on someone else to fix it it's the best formula oh and by the way you signed paper that said you were going to pay it back there's that too there's that too all right number four pay off your debts we're talking about student loan debt but we're going to talk about all the debts so being debt free I feel like that's one of the the cornerstones of Ramsey Solutions it's one of the things I feel like we're known for the most but but you guys when you have the ability to pay off your debts when you work the plan and you don't have payments we say it on the show all the time but the freedom that comes with that not just the financial freedom but also the emotional Freedom the spiritual Freedom there is so much that is that is Unleashed when you don't owe anyone anything and it is a powerful powerful Financial principle that goes against the grain because a lot of people are actually saying money's cheap so why would you not why would you not borrow and leverage and use money to make money you know all of that's the culture and always has been that's nothing new but there is something about this deeper meaning of of being debt-free if you want to follow your broke Financial friends Financial advice you're going to be just like your broke Financial friends I mean that's what it comes down to uh it's um look at who you're listening to and try to find some data points that are actual facts not mathematical theory that you discussed while having one too many glasses of wine with someone you know it's economic theory but try to find someone who actually used that theory and became wealthy you just can't find it you can't find it and we've got piles of data of 30 years and millions and millions of people that have figured out that when you don't have any payments you have control of your most powerful wealth building tool you are much more likely and much it's much easier to build wealth when you stay out of giving everybody else your money that's right so we always talk about getting out of debt using the debt snowball so simply that's where you list out all of your debts smallest to largest regardless of the interest rate pay minimal payments on everything and start with that small debt first and again there's so much content on this channel as well as we talked about on the Ramsey show all the time so make sure to check it out if you are new to that all right number five beware of buy now pay later this is everywhere I did my all my Black Friday shopping I usually use Black Friday and Cyber Monday to do my Christmas shopping because it's just good deal so I'm like all right I make my list and I do it and every every single time I checked out it was like you could actually only pay this a fourth of what it was and I'm like oh my gosh so it it is wild though the psychology that they use being able to show you a number because it's even where they place it when you check out you're like oh I see what you're doing after pay I see what you're doing comparing your bill to that and how it's like oh yeah well that's that's so easy that's so easy and people are doing it buy now pay later users have increased by 56 just in the last year so people love the four payment method versus the 100 payment method and it's for an old guy like mantle Boomer it's kind of humorous that people act like this is something new you know we were your mom and I were moving as you know we sold our house and we're cleaning out a whole bunch of junk and I found the newspaper uh from the early 1970s when Richard Nixon resigned oh wow look at you keeping archives yeah who knew oh my God but what was very interesting was not the article on that but was flipping through and these ancient ads for cars ancient ads for you know clothing at castronauts which was a store that's been gone for a thousand years right this kind of thing and it's the exact same verbiage easy payments quick easy payments just come down we'll take care of you no down payment we're gonna it's the exact they're still it's the exact same thing yeah you're like klarna is not new it's just got a weird name it's just not new and 78 of Millennials who use afterpay missed a payment and it's everywhere you guys and it's kind of really it's absurd really when you look at it if you kind of back up from it you go this is just very childish I mean like I bought a little T-shirt with a funny saying about golf on it was nine dollars this pops up do you want four payments on a 9 dollar shirt oh my gosh you probably don't need to buy a golf shirt oh my gosh it's not any payments on nine dollars four easy payments oh God it's everywhere it's everywhere and that just tells you the absurdity of how these come how far these companies have gone and how far they've lost their mind yeah so be aware you guys because what ends up happening is you and to get that lower payment and then you feel like well I can more now because I can spend that and then I'll just have to make it so the whole thing it's debt it causes you to spend more not a good plan so avoid after pay all right number six along those same lines just pay attention this year to your online spending habits mine are not great let's be honest you know things like Amazon and being able to get to things quickly it creates an environment where I'm like oh it's so easy there's no friction right so if you need something it's like oh I can I can just get it on Amazon now this is how I am now and I'm I'm good where if I had to wait two or three days to go to Target or Walgreens or actually go to the store to buy it I may have forgotten about it or not even needed it three days later but in the moment when you feel like you need something how quickly it is and it's fascinating because studies show that between 8 p.m and 9 p.m are the peak times for online purchases after a long day different kind of Doom scroll you're laying in bed and you're just buying some stuff buying some stuff so you have to pay attention this is again this is my weak spot that I have to be really diligent on because it's the convenience for me and then I end up spending more and I'm like why did I do that why did I do that again if you pan back and get out of the the daily Rhythm that this is that has become our lives and you look at stuff like klarna or you look at the thing the the way we purchase things now it is kind of bizarre in the scope of history I mean I remember that movie that was out when you were a little kid The Aladdin movie Robin Williams Robin Williams was the genie right you you know the genie would give you three wishes you rub the lamp right and now you walk around with a Genie in your hand who just gives you every wish and it's unlimited wishes by the way unlimited stupidity you can just go on for days and buy things and buy things and it's like you have this it's like we've given children a magic wand and no judgment with it and so don't be a child with a magic wand I mean that's the thing I know it is so true I I sometimes I'm like I'll go through something like on my phone and I'm doing something and I will have that moment where I'm like this is crazy like I bought pizza from the Papa John's app literally you go you click the app you click the pizza order and then it's Apple pay so I just double click on my face and the pizza shows up like 45 minutes later I was like this is It's like a magic the convenience can be great but also can make you spend more so it's nuts all right number seven make sure your emergency fund is fully funded so once you are out of debt we talk about bumping up your starter emergency fund of a thousand dollars that you get before you get out of debt and then you bump that up once you're debt free to three to six months of expenses and you want to make sure this continues to stay full because some of you which is great that you had the emergency fund dipped into it then this past year if something came up but you just always want to make sure that it's full so if you went into your emergency fund then make sure all of your efforts are going to refund it because just having that that that Safety Net in life gives you such peace and such Comfort just knowing okay I have cash in the bank yeah things are more expensive and I want to keep spending at a level that is not sustainable is not an emergency buying things that you want to buy and just yelling at inflation and going it's it's inflation's fault no it's your fault um you you have to stay within your budget and you know it's not an emergency now you're heating and air going out it's an emergency your tire going flat could be you know or it could be an emergency but um things are now tight so I'm using my savings to not adjust my behaviors to reflect an inflationary economy is not an emergency that's a choice and it's a bad one so stay out of your emergency fund unless it's an emergency that's right yep and like we talked about earlier getting out of debt that's part of that is cutting up your credit card so don't use your credit card as an emergency fund there needs to be cash that's your emergency all right number eight don't stop investing so if you're on baby step four which means you're out of debt you have a fully funded emergency fund that's when you invest 15 of your income into retirements and a lot of people would take calls on the Ramsay show or I feel like I do a lot where they're like should I still be putting money in you know the market is down it's going crazy I don't feel comfortable doing it and a lot of people are cautious around it and we're like no that's the time to do it like that's the time to do it I was watching a video on Instagram hold your breath uh and actually her advice was great this girl because she was like you know wealthy people you know Warren Buffett said it too you know when people get fearful that's when you need to get greedy greedy's not a great word but it's like okay I'm gonna jump in because when you when you invest when it's low and you put your money in you get more right for it because it's on sale and then as it rides up you get to ride that wave and make more and more money in your Investments where people that say no I'm fearful so I'm going to pull out and then just say I don't want to do anything then they try to get in when it's going up and then they don't make as much money so there is this like kind of that science of continue to invest continue to invest up or down because you're going to ride all the waves for the good and the bad but also for the good because we believe in investing enough and the economy enough to believe that it is all going to come back and it's been doing this a lot but um but it's powerful when you do it when it's low and people are fearful I haven't stopped my investment don't stop your investing the only one that gets hurt on the roller coaster is the one that jumps off in the middle of the ride and I'm 62. so you know I'm that retirement age type of a thing I'm not going to retire but um but you know you see the point I mean I'm in that same age bracket and so and even I haven't stopped investing I don't in other words I don't have as long a window to invest that money as like you would right right and so but even in that situation I'm still investing because it's on sale y'all Rachel's exactly right yep so things like your 401K Roth IRA all great places to invest all right number nine don't sit on the sidelines if you're ready to buy a home people have been talking about real estate a lot and you may not know this but one of your voiceovers someone took a voiceover review from I guess the Ramsay show and put it on Instagram and it became a trending like real it became a trending audio clip that people then started putting everywhere on their stuff it was a lot of realtors that were like yeah this is what Dave Ramsey says buy the house buy the house and if you're scared about interest rates and they go back down then you can refinance yeah but it uh but it was trending so you may not have known that but no it was I don't keep up with that stuff but yeah I know you don't but yeah you're welcome but you're welcome yeah the point is though whether it's on Instagram or not it's the point the point is is that real estate you know we've seen some price adjustments because some of them were overpriced because they still the some of the sellers asking prices were uh kind of still had the mentality of a white hot crazy post-covered market and that's no longer here we've got a very calm almost sedate market right now it's really kind of a everybody's like if they buy a house you're kind of sneaking around to do it you know kind of a thing and so it slowed down the volume of slowed down and so you're still going to see these these prices maintain they're not going to see them go down and the supply demand curve is there so we're not going to see this you're not going to see it go away uh the prices have a prices have come down values have not come down and so uh in some markets in some markets it's just sitting there steady and it's just not cray-cray like 83 offers in one weekend thing all of that stuff's gone thank goodness it needed to go away but but this is a great time to sell a house and it's a great time because there's a lot of buyers there's more buyers than there is houses it's a great time to buy a house and it's a great time to sell a house we did that real estate uh reality check that you and I and we did it and you know millions of people watched that thing on the stream and the stuff the data that we have in there and our predictions have proven months and months later to been completely accurate what it is all right number 10 if you are married have a joint checking accounts so this is something that we talk about a lot that we get a lot of pushback for but listen here's the deal when you are married you become one in every aspect of your life including your money and the couples that say we're a team we're doing this together it's not yours and mine and we play this whole game but we are in this whole thing together and we are working towards the same goal we're on the same team those are the ones you guys that honestly they they financially win faster and even greater because they end up doing more and more and more because of that connectedness that they have and then to the marriage side which I always think is fascinating their marriage deepens I mean there's this this level of intimacy that's created when you say to your partner uh it's everything like when we were married what's mine is yours like we are in this together and it does something to to the level of your marriage as well and so it's huge but we get a lot of pushback on it we get a lot of pushback on a lot of things because the culture's lost its mind but the um but but the truth is this um your Treasures where your heart is it says in the Bible so where you spend your money says what's important to you and when you combine your spending and you combine your investing and you combine your financial decision making you are agreeing on and it requires a lot of communication and a little bit of friction and a little bit of give and take but we're agreeing on our values we're agreeing on our fears we're agreeing on our dreams and and when you just have your little thing he has his little thing or she you know back and forth then you don't have combined dreams and then look up later in your divorce and you wonder why well you didn't have combined dreams you didn't have a we weren't going to the same place you can't it's much more efficient to get to the same place if you're both in agreement on what's the same place it's pretty simple stuff but it's the way that this thing works and again it's data based meaning that of the ten thousand one hundred sixty seven millionaires that we interviewed high percentage of them 79 said they work very very closely with their spouse not I became wealthy in spite of my spouse yeah or without my spouse's knowledge and I just went over here and did it over here to the side and they did their thing we never hear that from millionaires I mean never it never comes up the number of people that stand on the stage upstairs here at Ramsey Solutions and do their debt free scream right outside the Ramses show Studios and they say you know I brought my spouse with me to scream but I really did it all by myself it's precisely zero that just does not happen yep that's right so is something powerful you guys on a marriage aspect but also a financial aspect so work together all right number 11 have a bigger why for your money so when you are getting out of debt and it's exhausting and you're tired and you're working the debt snowball having that why continues to motivate you when you start to build wealth and you're thinking okay what am I going to do with this how are we going to handle this that why is still going to motivate you so having a big why is going to help you through this entire process I think the thing to think about is what is money good for and that'll give you your why because money just to have money is is useless it's just a tool though it's a tool that God gave you you're supposed to manage it for him and and for your family okay so now what are we going to do with this tool this thing that allows me to lift this thing that allows me to move things what's the tool for and then that'll start to give you your why you go gosh if I had a big pile of money what would be the benefit of that well I would have margin I would have choices I could help others and be generous I could change my family tree my kids wouldn't have to worry about going to college or anything I mean you know my my relationships I'd be a lot less stress and so money it's what money does that matters the money itself is not important right it's so good all right last but not least have hope for your money in 2023 so listen it's been hard when we've talked to so many of you and it's been it's been a struggle uh some of you have faced things in the last two two and a half years that you never thought you'd have to face and it's all come to fruition and so there's some of you out there that are thriving and you're doing great you're doing the plan you're feeling the traction and it's awesome and there's those of you that are thinking I don't know if I can keep going I don't know if I can keep going but I just want to tell you if you're discouraged I want you to have hope hope that you can do it and you guys we've seen every story you can imagine from every debt level every income level every background of a person everything but one characteristic that continues to be consistent in people that we see that win is they believe they can and that doesn't mean that life is going to do this it's going to do the kind of the stock market it goes up and down up and down and down so you're gonna have good times you're gonna have bad times but the belief though that you have the ability to change your life and your money that hope and and that intentionality is the thing that separates people from actually winning and those that don't so again if you're having a hard time um just know just know that this is a season and continue to press forward I was talking to a lady I was traveling and she came up in just tears tears here's tears and she just said you know I listen to you guys every day and she was like it's been the worst year of my life and I just don't feel like I can keep going but seeing you right now this is giving me like this is the Grace from God she gave me a hug and we had to keep passing so I was traveling but you know I'm like you know there's just it's hard it's hard and people are in different parts of their stories and so if that's you that's kind of had that moment or that year where you're thinking man it's it is tough just know that there's people a building here in Nashville that we work day in and day out to help you and that believe in you and support you and that hope is something that is so crucial to have in your money and in your life the weight of all the bizarre things that have happened in the last 24 to 36 months politically racially pandemics quarantines inflation the weight of all of that is soul eating it's it's discouraging for anyone and it is interesting to me having sat in this seat for 30 years that you can simultaneously acknowledge that there's a reality to that weight there's a reality to the anxiety and the stress and the mental Wellness effect of all of that and simultaneously say and yet there's a reality that says hope hope deferred makes the heart sick it'll kill you but when desire comes it is the tree of life and so you know hope comes from believing that this is not all this stuff that's out there and that the weight of all this stuff and you know you may have to change your inputs you may be watching too much TV you may be Doom scrolling too many uh horrible negative websites about whatever the subject is that you're obsessed with that's causing that you can't do anything about and but if you sit down and say you know what as for me and my house we're going to live we're going to live and we're not only going to live we're going to live in abundance and in spite of all of these things that are there and in spite of this weight I feel in my soul I also have simultaneously and it's not unintelligent this positive thing that's abundant mentality this idea that hope is there that I can really get there and you can I promise you can I've walked with people individually out of situations and I've walked with America through all kinds of different crises over the 30 years I've been doing this everything from The Towers falling after 9-1-1 to 2008 to other things you know all kinds of things have come at us this latest round of stuff is really heavy and dark and black but you know what you're going to be okay all right you guys I hope that gives you some encouragement I hope I gave you some insight and some direction on looking at your money and your life for 20 23. so winning with money it's not a big secret it's not you just have to devote yourself to basic Common Sense money habits and remain patient and diligent and that's one reason that Financial Peace University continues continues to be a tool that we use all the time and we tell people about all the time because it is the thing that's going to allow you to actually be educated you're going to start to learn and encourage you through those money habits so if you want to check out Financial Peace University it's nine courses and again you're going to learn everything from insurance and investing to budgeting so make sure to go to ramseysolutions.com and click Financial Peace University or click the link in the show notes Dave thanks so much for being on good to be here once we had a little cheers to the New Year 2023 it's here an homage to Smart money happy hour this year I know that too that's you all right make sure to share this video with a friend who's looking forward to what's coming up in 2023 and remember to take control of your money and create a life you love

Channel: The Rachel Cruze Show

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Keywords: the rachel cruze show, the rachel cruze show youtube, money, budget, how to save money, budgeting, personal finance, rachel cruze, save money, how to budget, debt, saving money, save, how to make money, ramsey, finance, how to get out of debt, debt free, 12 Things to Do Differently with Money in 2023 with Dave Ramsey

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Length: 31min 43sec (1903 seconds)

Published: Mon Jan 02 2023