Guest George Kamel, personal finance expert, discusses topics such as getting out of debt, the normalization of debt, intentional purchases, and attending a live event with Dave Ramsey. They also touch on strategies for safe withdrawal rates in retirement and the decision to drink coffee instead of craft beer during the episode.
Having a spouse with a similar financial vision is crucial for building wealth and eliminating financial stress.
Following a simple plan and staying focused, like investing 15% of household income and paying off a mortgage, can slowly build wealth over time.
Determining the safe withdrawal rate for retirement is a personalized decision based on individual circumstances and goals, considering factors like nest egg size and expenses.
Deep dives
The importance of being on the same page about money in a relationship
Having a spouse with a similar vision for their finances is crucial for building wealth. It allows for exponential growth and eliminates financial stress. Couples should have open and honest conversations about money, sharing their goals and working together to achieve them. The Ramsey plan focuses on one thing at a time, like debt payoff and emergency funds, before moving on to investing. Marrying the right person who shares your values and goals is considered the biggest wealth hack.
The simplicity of building wealth with intentionality
Building wealth doesn't have to be complicated. Following a simple plan and staying focused is key. Investing 15% of household income into retirement accounts and diversifying investments across mutual funds can slowly build wealth. Paying off a mortgage and appreciating home values also contribute to building wealth. The process may not be flashy or quick, but it is effective.
Understanding withdrawal rates and retirement planning
Determining the safe withdrawal rate for retirement is a personalized decision based on individual circumstances. While the traditional 4% withdrawal rate may be considered safe, the actual rate may vary depending on factors like nest egg size and expenses. It is important to consider one's own financial situation and goals when deciding on a withdrawal rate. Additionally, it is important to remember that retirement savings don't need to last forever and drawing down on the principal balance is acceptable.
The Importance of Simplicity in Personal Finance
George emphasizes the importance of simplicity in personal finance. He explains that focusing on a few key actions, such as paying off debt and investing 15% in retirement accounts, can lead to significant progress over time.
Balancing Emotion and Analysis in Financial Decision-Making
George discusses the importance of balancing emotion and analysis in financial decision-making. He suggests that individuals should lean towards the opposite of their natural tendency, whether it's being more analytical or connecting with the emotional impact of their financial choices, to make more effective decisions and achieve financial goals.
Today’s episode is all about getting out of debt as we talk with our new friend George Kamel! And it’s a good time to have this discussion as well since consumer debt, in particular credit card debt, has been on a tear over the past several years- we’re over the $1 trillion mark folks! And we’re lucky to be joined by George because not only has he personally climbed from a negative net worth himself, but he’s also a personal finance expert at Ramsey Solutions! George co-hosts the Ramsey Show as well as the Smart Money Happy Hour podcast in addition to over 16 million views on his YouTube channel. And to prove that he knows how to rock more than a microphone, George has a new book “Breaking Free From Broke” that came out earlier this month. We’re excited to get to know George and his story, how he got started at Ramsey, the normalization of debt, keeping tabs on lifestyle creep, his biggest wealth hack, and plenty more during this episode.
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