I'M 70 And Only Have $900 To My Name

Sandi, a 70-year-old retiree from Ocean Shores, Washington, called into the Dave Ramsey show with a dream. She wanted to build a detached garage on her property, but she needed to refinance her house and take out equity to make it happen. With only $900 in savings and an annual income of around $30,000 from Social Security and teacher retirement, Sandi was seeking advice on whether this move would be wise.

A Frugal Common-Sense Lady

Dave Ramsey, known for his no-nonsense approach to personal finance, immediately recognized that Sandi was living carefully within her means. He commended her for being a frugal common-sense lady and acknowledged her desire for a garage as a case of "garage fever." Despite the appeal of having a garage, Ramsey emphasized the importance of not taking on more debt at this stage in Sandi's life.

The Cold Shower of Financial Reality

Ramsey's advice to Sandi was clear: going further into debt was not the solution. He highlighted the fact that Sandi already had a manageable mortgage and cautioned against risking her financial stability by increasing her debt burden. Instead of encouraging her to pursue the garage at all costs, Ramsey chose to send her three copies of his book as a gift and thanked her for being a new listener.

The Value of Financial Wisdom

In this exchange, we see the value of financial wisdom and prudence. Sandi's desire for a detached garage is understandable, but it's essential to consider the long-term implications of taking on additional debt at this stage in life. Ramsey's approach serves as a reminder that financial decisions should be made with careful consideration of one's current circumstances and future goals. Sandi's call to the Dave Ramsey show highlights the importance of seeking sound financial advice and making informed choices when it comes to managing personal finances.