Dave Ramsey is wrong. $ 1,400 can change your life

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Financial writer and radio host Dave Ramsey recently stopped by Fox News and tore up the idea of ​​stimulus checks – disregarding and undermining all of us, including the many fans who subscribe to his financial advice.

Some background information: Congress is considering adopting a third round of economic aid, which may include the following $ 1,400 worth of stimulus checks to those who qualify. In response, Ramsey told the anchors on Fox News on February 11th that he doesn’t believe in incentive payments and that “if $ 600 or $ 1,400 changes your life, you’re pretty screwed.” He went on to say that those who value a stimulus check may well have major problems like mental health or relationship problems.

Serious question: does Ramsey know we are at war with a life threatening global pandemic? That COVID-19 killed over 2.4 million people, ruining countless households and business owners in the process? That as a result of this disease, unemployment flooded the country and over 800,000 Americans applied for unemployment benefits in the last week alone?

I give him this: Incentive payments are not a solution. We need well over $ 1,400 checks. To start with, we need more jobs, more vaccinations, a minimum wage that is actually a liveable wage, and schools that are sure to reopen across the country.

But a stimulus check is the government’s minimum should provide. It may be the patch that many people badly need to treat the bleeding. One recently Bankrate survey found that over 70% of incentive payment recipients believe they are something or very important to their short-term financial health.

At the average monthly rent nearly $ 1,400 in the US, that next incentive would be money to help people meet their immediate housing costs. It can also put food on the table. When I had $ 300 worth of groceries delivered to a local family of five a few months ago, they told me it would last for several weeks.

This proposed stimulus is also a decent godsend for boosting someone’s rainy day reserve, which many unemployed or underpaid Americans struggle to create but badly need. And Ramsey can’t deny that saving money is a bad thing. He sermon how important it is to pocket $ 1,000 for a rainy day as step one on the road to financial freedom. So why do we disapprove of a check for $ 1,400 that might do just that?

After all, my parents immigrated to this country from Iran in the late 1970s with only a few hundred dollars in their pockets, which would be worth about $ 1,400 today.

Slowly but surely they were able to save money, buy a house, raise two children and spoil their grandchildren. They gained financial freedom by not taking for granted the little money they had started with – no matter where it came from – and its potential to lead to more wealth.

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