Costs are rising, as is stress among Americans across the country.
In a new phone interview with FOX Business, David Ramsay, personal finance expert, eight-time #1 national bestselling author and host of “The Ramsey Show,” acknowledged that, yes, “people who are sitting down and doing their budgets right now are shocked at current prices that are completely, in many cases, out of control.”
AMERICANS’ INFLATION FEARS CLOSED NEAR RECORD HIGHS IN APRIL, POLL SHOWS
But there is a sensible way to overcome this, he said.
“Having worked with people in financial distress for 30 years, my team and I have found that there is more anxiety about the unknown than bad news.”
Ramsey said, “What this means right now, in this discussion, is to sit down and budget and look at everything” clearly, no matter how difficult or unpleasant the facts are at the moment, and no matter who caused the problem at hand. .
Gasoline prices are high, Ramsey put it bluntly, “because [President] Biden screwed up the power pipeline.”
DAVE RAMSEY ON HIGH GAS PRICES AND 6 WAYS TO SAVE MONEY
That said, people need to push for a practical solution. It is a way of taking control.
‘Write it, watch it’
“Okay, then gasoline costs more [right now]Ramsey said. “So I’m going to put that in my budget.”
“This is real. And it’s a real problem. But if it’s not quantified, then it’s a much bigger source of anxiety.”
“It’s kind of weird, but when you write things like this,” they no longer have “the power to control your stress level,” he said.
Ramsey said consumers can look at the written article and say, “Okay, I’ll take care of that.”
Similarly, other costs should receive the same treatment and scrutiny, he said.
“Okay, so your rent went up. Write it down. Look at it.” [on the page]. Your grocery bill is going up because of meat or bread or whatever, okay, write it down.”
Added Ramsey, “When [worries like this] they are in your head, they are 10 times heavier than when you write them. It’s like letting the monster out of the closet and discovering that it’s not really a monster. It’s just a stuffed animal with a shadow.”
“‘You could move to another place [to pay less rent].’ And the person will say, ‘Oh, okay. Okay, yes. I guess I could.'”
He said, “But this isn’t a stuffed animal with a shadow, of course. This is reame. And it’s a real problem. But if it’s not quantified, then it’s a much bigger source of anxiety.”
Another example, he said, “and I’ve been doing this on radio for a living for many years, is when someone calls the show and says, ‘I’m completely overwhelmed. I think I need to file for bankruptcy. Here’s what’s going on.’ Well, we started taking it point by point, line by line,” he said.
DAVE RAMSEY’S TIPS FOR GROWING YOUR WEALTH
“And I say to the person, ‘Well, you could sell your car.’ And the person says, ‘Oh, okay. I guess I could’. And then I’ll say, ‘Your rent is too much. you could move to another place [in order to pay less rent].’ And the person will say, ‘Oh, okay. Okay, yes. I guess I could.'”
When “people decide to address their financial problems,” they often take a closer look at their career or job and say, “Oh, wait a minute. I need to make more money.”
And so on, Ramsey said. Basically, “when you start taking it line by line, it knocks the monster’s teeth out,” she said.
‘Develop a plan to attack him’
Sure, “the monster is real, and it’s big, and it’s a problem, and we’re not going to minimize it,” he added. “But the best way to deal with anxiety is to develop a plan to attack it and then the anxiety subsides.”
Ramsey said that when “people decide to address their financial problems,” they often take a closer look at their career or job and say, “Oh, wait a minute. I need to make more money.”
DAVE RAMSEY ON WHY ‘GET RICH QUICK NEVER WORKS’
That’s when they decide to try to get a raise or “change to another job that pays them more.”
“When you write it down and say, ‘I need to get more money,’ that’s when people are looking for more money. You start to address it, and the stress and the math start to come under control.”
‘People can use this to their advantage’
Ramsey also said that until people raise their incomes or some of these current high costs adjust back down, “people may be working an extra job, but there are a lot of really good jobs out there right now,” he said.
“That’s the good news. There is a labor shortage in the United States right now.”
The point is that “people can use this to their advantage to generate more income and offset the reality of inflation.”
6 EMPLOYMENT TIPS FOR REMOTE CAREER EXPERT INTERVIEWS
He said that if “people just sit in the same job, make exactly the same money, and all of their costs go up, then they have real math pressure.”
Recognize ‘the magic wand’ today
Ramsey also noted that “this is the first generation, myself included, that has a magic wand in their hands.”
“You press a button and things appear in your home. Think about it: It’s amazing,” he added, referring to today’s online shopping, of course, and the near-instant gratification of purchases that appear at home after just a few clicks. on a phone or laptop.
And “don’t tell me no,” he added, referring to the way many Americans tend to feel.
No one today, he said, wants to be told, “No, you can’t have that.”
There is frustration at not being able to find the right house or car, he said, or other items. “And while some people are saying, ‘Well, I’m going to wait until prices come down again,’ I’m trying to tell a lot of them, ‘They may not come down the way they think they will.”
Why people feel insecure and what to do about it
Dr. John Delony of Ramsey Solutions has for years offered advice and help to those struggling with stress and anxiety; spent more than two decades responding to the crisis, the firm said.
“Some of the pillars of our mental health are safety and autonomy,” Delony told Fox News Digital in an email exchange. “When the prices of goods and services explode, putting essentials like bread, milk and gasoline out of reach, people feel insecure and out of control.”
“In addition, millions of Americans have taken out loans in recent years to buy expensive vehicles. They took stock out of their homes, started using their credit cards again, and bought homes that sharply squeezed their financial margin. Now the escalation in prices of other assets have made car, home and debt payments, along with any kind of repair, very difficult to manage.
HOUSING AFFORDABILITY WILL REMAIN AN ISSUE, MARKET EXPERT PREDICTS
Delony said, “When people don’t feel stable about their ability to move around, pay for their homes, or make debt payments, they become anxious and scared, and they become disconnected from their friends and loved ones.”
“It’s a daunting spiral.”
Make connections; make lists; take decisions
Delony said it’s important to do three key things in times of anxiety, especially about money.
“First, connect with someone to get an outside perspective. It can be a friend, a mentor, a counselor, a spouse, a financial advisor. When we’re stressed and alone,” he said, “we tend to get sick quickly.” she advised short-term decisions. Our bodies are not designed to handle stress on their own.”
THE BEST MONEY ADVICE FROM A SURPRISING SOURCE
“Second, make a list of the things you can control and the things you can’t control. No amount of worrying will drive down gas prices. No amount of road rage or yelling at spouses or children will lower the cost of the milk or it will make Netflix reconsider a price increase.”
“None of this is fun or enjoyable or desired, but for millions of us it is absolutely necessary.”
“What I may The check,” Delony added, “is if I cancel Netflix, skip milk for a few months (which is what I’ve done at home), start driving a few Uber shifts a week for some extra money, or start to share the car to go to work. “
He also said, “None of this is fun or enjoyable or desired, but for millions of us it is absolutely necessary.”
Dave Ramsey: “When you control controllables, that’s when your hope starts to come back.”
Third, “Chase the things we can control. When we’re upset or nervous, we tend to slow down and freeze. We stay glued to our electronic devices, consuming more information or tuning out and numbing ourselves. Get your news fix instead.” – and unplug and participate in the things you can control.”
Dave Ramsey also said that “when you control controllables, that’s when your hope starts to return.”
How to know when there really is a problem
“Financially speaking, when people talk to a trusted friend or advisor, dig deep into their budget and find themselves unable to cover their four walls: food, housing, utilities and transportation, cutting out the non-essential is a sacrifice we all we can do said John Delony.
“Cutting off electricity or water is a different level of emergency,” he added.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
“If a person is unable to get out of bed in the morning or participate in normal daily activities, is unusually angry, frightened, or seeking numbing agents (such as alcohol, more food than usual, or prolonged time on electronic devices), they need to call or see a mental health professional.