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Dave Says Archives for 2022-06

Doesn't Sound Like Fun To Me!

 

 

Dear Dave,

 

Sometimes on vacation trips I like to check out casinos. I always account for the money I wager in my budget, and I never spend more than I’ve allotted. How do you feel about gambling at a casino, as long as you limit your spending this way?

 

Carson

 

 

Dear Carson,

 

Ok, I’m going to be honest about this. When someone tells me they gamble for fun or recreation, my first thought is they’re crazy—crazy enough to think they’ll actually come out ahead. I mean, you might see a news story once in a while about someone winning big money in a casino, but that almost never happens. Think, too, about how much cash those folks flushed down the toilet previously while gambling. In reality, there’s a strong chance they didn’t really “win” anything. They probably just recouped a small portion of their previous, substantial losses.

 

I know, all this probably makes me sound old and out of touch. But I just don’t get the concept of gambling “for fun.” I don’t find it thrilling or exciting to lose money I’ve worked hard to earn, even if there’s flashing lights and a party going on. Don’t get me wrong, my wife and I include “fun money” in our budget every month and do things we enjoy. But, to each his own, I guess.

 

Still, my advice would be don’t waste your time and money on that stuff. One way or another, the house always wins. It’s your money, and you can what you want with it, Carson. But think about this: Why do most of the folks sitting at slot machines and card tables look like they can’t afford to lose money? The majority look desperate, some even angry, and that’s sad. I don’t know, maybe it’s the lighting or some other strange coincidence.

 

Yeah, I don’t think so.

 

— Dave

 

  Dave Ramsey is a seven-time #1 national best-selling author, personal finance expert, and host of The Ramsey Show, heard by more than 18 million listeners each week. He has appeared on Good Morning America, CBS This Morning, Today Show, Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth and enhance their lives. He also serves as CEO for Ramsey Solutions.

 

Be Vigilant About Insurance

 

 

Dear Dave,

 

My wife and I are on Baby Step 3, and we were talking the other day about how our home, travel trailer and cars have appreciated recently. Everything is paid for except the home, but we were wondering if we should increase the amount of insurance coverage on these items since they have skyrocketed in value.

 

Dale

 

 

Dear Dale,

 

Yes! And you should make it a habit to review all your insurance coverage once a year.

 

With most homeowners insurance policies you have a stated amount of coverage. Some policies have a “cheat” that allows you an extra five or 10 percent, maybe even 20 percent in some cases. But if you’ve got a $300,000 policy on a house you bought five years ago, and it has appreciated to $450,000 then burns to the ground, you’re screwed. The only thing dumber than not having enough insurance to replace belongings like that is having no insurance at all.

 

Lots of times, in the old days, if you bought a car or homeowners policy, it covered your car or home regardless—even if they had gone up in value. Then, when some insurance companies got absolutely hammered after some events like Hurricane Katrina, they stopped doing that. They stopped covering actual replacement value, and started covering only the specified amount on the policy. Today, it can be tough to even find replacement value coverage on houses. And if you do, it’s crazy expensive.

 

When it comes to your home especially, you need to have a policy equal to the value of the home, and you should revisit your coverage and your home’s value every single year. You have to be vigilant about things like that, Dale, because your insurance company won’t be!

 

— Dave

  * Dave Ramsey is a eight-time #1 national best-selling author, personal finance expert, and host of The Ramsey Show, heard by more than 18 million listeners each week. He has appeared on Good Morning America, CBS This Morning, Today Show, Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people take control of their money, build wealth and enhance their lives. He also serves as CEO for Ramsey Solutions.

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