Dave Ramsey, the host of the highly popular The Ramsey Show, recently published a clip on YouTube called “Pet Insurance Is Not The Problem Here.”
In it, a veterinary technician who is married with three pets called in to express her reluctance to cancel her $350 monthly pet insurance bill. She is a pet lover who is concerned about not having insurance.
Ramsey explained through the call that she is focusing on the wrong money problem. Her joint household income is $125,000 a year, which Dave explains allows her to self-insure her pets.
After learning more about her, Dave pointed out she likely has a spending problem due to her inability to save an initial $1,000 emergency fund quickly.
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It’s common for people to overlook certain money problems and focus on one particular issue or budget item. However, by zooming out and looking at the bigger picture, it can be easier to focus on the areas that need it most.
Here are some more tips on how to identify the right money problem and make financial progress.
Adjust Your Money Mindset
Rachel Cruze, a Ramsey personality and the daughter of Dave Ramsey, wrote an article called “How to Change Your Money Mindset.” She explained a money mindset is what people believe about money and their attitude towards it.
A big part of tackling money problems, she explained, is believing you can. Additionally, Rachel advised her readers to take the time to understand how their money beliefs came to be, whether it’s from childhood conversations, lessons they learned from friends at school, or something else.
When people take the time to look back and discover the root of their money beliefs, it becomes easier to identify money problems and why they have them.
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Look at the Bigger Picture
The woman who called into Dave’s show asking about pet insurance needed to look at the bigger picture. She was focusing on canceling one bill to free up money in her budget.
However, by zooming out and looking at her finances overall, Dave could identify that she and her husband were likely spending too much. Additionally, based on her responses, he pointed out that she needed to get her husband on the same page to manage her budget more effectively.
By pivoting to focus on her overall spending, this caller can find more areas of her budget to cut. This can help her reach her financial goals much faster.
Start Small
After watching Dave’s video or reading Rachel’s article, people may be inspired to make meaningful progress toward their financial goals. The best way to do so is to start small.
The caller Dave spoke to was using the Ramsey Solutions app called Every Dollar to help her categorize her spending.
Remember, progress can be as small as choosing to eat at home instead of going out to eat or saving the first $100 in an emergency fund.
Ultimately, being more aware of spending patterns and tracking a budget and expenses can help people decide whether or not they need to pivot and focus on a different money problem.
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This article originally appeared on GOBankingRates.com: Dave Ramsey: How To Stop Focusing on the Wrong Money Problems
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