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In this episode, we review the video from Dave Ramsey about The 3 Basic Money Skills You Need To Know Review. He talks about spending, saving and giving.
Here is the transcript for this episode:
There’s really three basic money skills, so giving saving and spending, okay
So in this video, we’re going to review Dave Ramsey’s video on
the three basic money skills that everybody needs to know and so
You know just saw the clip there where he’s introducing it. And so we just wanted to kind of give our thoughts on it
So he’s sort of outlined it so it’s the the saving while the spending I guess
he says first spending saving and giving so kind of those three areas and
At the beginning of the video. Basically it’s prompted by a caller who is
Wanting to buy a new car he saved up enough to where he can afford to pay for it in cash
He’s got you know emergency reserved saved up and all that
so he’s doing fine financially beats having a hard time, you know parting with the money, so
so it’s it’s one of those things that I think we we do see as financial planners, you know sometimes
Somebody is just kind of out of balance in one of those areas and it can kind of wreak havoc on their financial situation
well, or you get used to a certain lifestyle, I mean
I remember even personally just being in school and not spending anything or being in in
you know out of the country and just had minimal resources and it’s hard to adjust sometimes to
Spending quite a bit or I mean they could work with sizing
Yeah, you know you can be somebody who yeah, you know who’s used to spending a lot of money?
Maybe you have a change in your financial situation
And now you got to put the brakes on it that can be a tough situation the saving, you know
Some people are just kind of natural savers, you know
they they’re happy to put money away and some people it’s it’s a real chore and then giving I mean
That’s one of those things that I think
Kind of really adds purpose to your your life in general
You know, what what you do with you know, what you have is a big part of it
Yeah, I agree in giving is I mean it might be giving to charities and supporting organizations
but where I see it with clients more is giving to
kids or giving to family members and and there is
Limits or if you want to be conscious of that and it feels good
Supporting someone but you also don’t want to enable them or there’s balances with that as well
Okay
So I guess next we’ll watch another a little bit of this video where he kind of explains the the three different skills
Learning to enjoy money falls under spending learning to enjoy life with your money
Which is kind of what your questions about the second one saving?
And learn to save money for emergencies for college for retirement to change your family tree to build wealth
and learn to invest
You learn to ride the investment waves like we’ve had in the stock market in the last couple weeks
right and
giving
the power of generosity to completely change you when you learn to give as
The natural rhythm of your life it changes everything
Alright, so overall I would say it sounds like pretty good advice
It’s it’s very general and maybe a little bit of an oversimplification of some, you know, kind of more complex
internal thoughts and emotions that you know, we all have but I mean
It’s a good way to kind of look at it and balancing different different things and that that’s you know
Certainly part of what we try to do as financial planners. Just help people find that right balance
so, you know, we we certainly have clients where they
Have more than enough money to spend on splurge as if they want to or you know
Take a trip or whatever it is, and they have a really hard time of letting that go
There’s there’s always kind of that fear of, you know, can I can I afford to do this?
What if some you know something comes up?
So, you know being able to kind of balance that and then something else you talked about in the video is how giving can sometimes
Help you
Justify the spending a little bit more
So, you know, if you know, you’re all set you’re taking care of you don’t really have to worry about money
being able to give to somebody else kind of
emotionally helps a lot of people
You know have permission to enjoy their money a little bit more. Once they they get to that stage where they’re not financially
Sure, I mean
I think it’s important to make an impact and I always think of it as either
Either financially if you’re in that position or with your time, if you don’t have time and you’re financially in a good position, that’s great
Donating and if you’re not giving through volunteering is very fulfilling as well. Yeah, I was thinking of other issues. I mean spending saving and
giving I mean there’s also
Investing or planning or paying down debt, you know, it’s a little more complicated in each of those areas
but but it is the immediate reward of
Spending versus savings, you know
There’s a balance to that and the giving to I mean you want to be able to give within your means within your budget that
Makes sense and you know, of course different people are gonna have different goals
So it’s not always gonna be the same balance for everyone right right and different concerns cuz that’s true
We do see people that are very concerned about the the one-in-a-million terrible situation of needing
Long-term care for 30 years or something and and they want to keep a lot of money and not release it to either
donations or to spending and I mean, yeah, I mean you can live in fear or
Kind of come up with a reasonable balance of you know, reasonable probability of what will happen
and then there’s the other extreme people who are happy to spend as much as they can and
You kind of have to you know convince them a little bit
Alright, you got to maybe put the brakes on a little you know, let’s let’s take a look at you know
What’s what’s gonna happen?
If you get to a point where you’re out living your money or you know
Something comes up that you’re not prepared for you guys. Oh, yeah, it’s just it is it’s it’s balanced
So yeah, I think that’s it’s yeah, it’s good advice in general. So
Alright. Yeah, and there’s no right or wrong cuz everyone has a different comfort level
Yeah, hopefully you enjoyed this and it gave you one more insight and we’ll be doing more videos like this
And so if you have any questions or comments, please let us know and we’ll get back to you personally
Thank you
You