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DAVE RAMSEY is America’s personal finance guru par excellence. He is also the host of The Dave Ramsey Show and author of national best-sellers such as The Total Money Makeover, and was recently asked how to fight inflation from home.
According to the Bureau of Labor Statistics, year-over-year inflation was 8.5% in July. Although the figure was down from the previous month, the fact is that the inertial component of inflation helped some segments to continue to rise.
Faced with this scenario, Ramsey was consulted by Fox Business on the resources that people can implement to cope with the aforementioned monetary phenomenon.
“We’ve seen decades since we’ve been in this bad position. And people are going to fix the inflationary problems, the pressures with the wrong tool,” the businessman commented.
He specifically targeted a particular tool: the credit card. “And the credit card is the wrong tool. It’s going to cause them problems later. It comes home to roost. It’s really sad.” he assured.
The financial guru affirms that excessive reliance on this type of payment method, added to the lack of self-control, can be a devastating combination in times of economic fluctuations.
In turn, according to the Federal Reserve Bank of New York, total household debt increased by $312 billion during the second quarter of 2022 reaching $16.2 trillion. To top it off, credit card balances saw their largest year-over-year percentage increase in more than 20 years.
In response to these statistics, Ramsey suggested increasing financial discipline. “Whatever you’re doing, look out there into the future and say, ‘Where’s that going to? Where’s that going to take me?’ Then that kind of critical thinking will lead you back to doing a budget,” he said.
“What happens in your house … is way more important than what happens in the White House. So don’t let these outside variables destroy your future by you not controlling you,” he finished.
Joaquín Núñez es licenciado en comunicación periodística por la Universidad Católica Argentina. Se especializa en el escenario internacional y en la política nacional norteamericana. Confeso hincha de Racing Club de Avellaneda. Contacto: [email protected] // Joaquín Núñez has a degree in journalistic communication from the Universidad Católica Argentina. He specializes in the international scene and national American politics. Confessed fan of Racing Club of Avellaneda. Contact: [email protected]