Commitment to our readers
The GOBankingRates editorial team is committed to providing you with unbiased reviews and information. We use data-driven methods to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our review methodology for products and services.
20 years
Helping you become richer
trusted by
millions of readers
Money expert Dave Ramsey offers a ton of personal finance advice through his wildly popular radio show, “The Ramsey Show.” A YouTube clip from the show is titled, “Pet insurance is not the problem here,” she spoke to a veterinary technician who was struggling to prioritize her expenses. More specifically, she was reluctant to cancel her $350 pet insurance bill that covered her three beloved pets.
Ramsey explained in that call that the vet tech is focused on the problem of bad money. Including her spouse’s income, her household earned $125,000 a year – more than enough to insure her pets. The real issue was his inability to put $1,000 into an emergency fund, likely due to excessive spending.
This is not a problem unique to this specific caller. It is common for people to ignore certain money problems and focus on a particular issue or budget item. However, by zooming out and seeing the bigger picture, it may be easier to focus on the areas that need it most.
Here are some more tips on how to identify the true money problem and make financial progress.
Adjust your money mindset
Rachel Cruze, a Ramsey personality and daughter of Dave Ramsey, wrote an article titled “How to change your money mindset” In it he explained that money mindset is what people believe about money and their attitude towards it.
He further wrote that a big part of dealing with money problems like excessive spending is believing that you can. Cruz advises his readers to take the time to understand how their beliefs about money were formed, whether it was from childhood conversations, lessons learned from friends in school, or something else.
When people take the time to look back and find the root of their beliefs about money, it becomes easier to identify money problems and why they exist.
see the big picture
The woman who asked about pet insurance on Ramsey’s show needed to see the bigger picture. She was focused on repealing a bill to free up money in her budget. However, by zooming out and looking at her overall finances, Ramsey could recognize that she and her husband were likely spending too much.
Additionally, based on her responses, she revealed that she and her husband needed to get on the same page to manage their budget more efficiently. By focusing on their overall spending, this caller can find more areas to cut in their budget. This can help him reach his financial goals faster.
start small
After watching Ramsey’s video or reading Cruz’s article, people may be inspired to make meaningful progress toward their financial goals. The best way to do this is to start small. Progress can be as small as choosing to eat dinner at home instead of going out or saving the first $100 in an emergency fund.
Ultimately, becoming more aware of spending patterns, keeping a budget, and tracking expenses can help people decide whether they need to focus on a different money problem.
Caitlin Moorehead contributed reporting to this article.