Dave Ramsey Rails On The Importance Of Investing Right NOW, 'I'm Not Waiting On The Clash Of Old Men, Trump And Biden'
When it comes to investing, many first-time investors put so much pressure on finding the best time to invest, especially with the upcoming elections and the uncertainty surrounding the White House. Financial guru Dave Ramsey of The Dave Ramsey Show tells listeners that he does not wait to invest regardless of what happens in the White House.
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During an episode of ‘All Things Money Show,' financial expert Dave Ramsey discusses investing and why you should not wait to take advantage of compound interest. Ramsey told his listeners, "What is Dave Ramsey doing right now?" and added, "Buying, period. Investing, period." One of the things Ramsey has been known to encourage people to do is to get out of debt as fast as possible and begin investing their money. However, with the current uncertainty in the White House, investors face more risks as they try to predict the market implications of the current political drama.
Since the presidential debate between Donald Trump and Joe Biden, current President Biden is facing calls from several House Democrats for him to resign from his campaign after his worrying performance that saw him stumble over his words. ABC News reported that despite the calls from worried Democrats, Biden vowed to stay in the race, worrying many investors. Kim Wallace, a senior managing director at data firm 22V Research, told ABC News, "The range of possible outcomes is as wide as anyone could’ve imagined," and added, "Let’s face it: markets don’t like uncertainty of any kind."
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However, the uncertainty surrounding Biden's ability to act as president for another four years has not deterred Ramsey from investing his money. He reveals, "I'm not waiting on the clash of the old men, Trump and Biden, to decide what I'm going to do." He also added, "Because who knows, one of them may break a hip." Ramsey advises people to avoid watching news outlets like Fox News and CNN, which will cause you to sit on the sidelines and miss out on investing.
So, how do people do this?
On social media platform X, formerly known as Twitter, Ramsey explained that once you've gotten yourself out of debt, you need to begin investing. He wrote, "When time and compound interest are on your side, huge things happen. No matter what age you begin, you’ll be glad you did when it’s time to retire." Ramsey even makes getting started easy by laying out some tips to start investing.
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Before you even begin investing, Ramsey encourages people to have an emergency fund with at least $1,000 saved, but the goal is to have around 3-6 months of expenses. As tempting as it may be to start investing without an emergency fund, Ramsey advises against it, saying, "You could end up tapping into your retirement investments when an emergency does come along, totally ruining your financial future in the process." How much you need to invest monthly will depend on your income and expenses, but Ramsey's rule of thumb is to invest at least 15% of your income.
Choosing a tax-advantaged retirement account can help you get the most bang for your buck. You should also invest in good growth stock mutual funds because your investment risk is lower when diversified across hundreds of companies. This is what Ramsey calls "not putting all your eggs in one basket."
Many people get discouraged when they first start investing because they often don't see massive returns right away, but according to Ramsey, if you stick with it and stay consistent for the long haul, you'll see your money grow.
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