A.B. Ridgeway addresses the common financial pitfalls associated with vacation spending. He emphasizes the importance of planning and budgeting for vacations to avoid long-term debt. Ridgeway shares personal insights and professional advice on how to enjoy a well-deserved break without compromising financial health. He advocates for a proactive approach to financial planning and mental well-being, ensuring that vacations enhance life rather than serve as temporary escapes from stress.

5 Key Takeaways:

1. Understand the Cost of Debt:
   • Many Americans are still paying off vacation-related credit card debt months after their trips. For instance, a $2,000 vacation with a 27% interest rate could end up costing an additional $300. This highlights the importance of considering the true cost of borrowing money for leisure activities.
2. Address the "I Deserve It" Mentality:
   • The belief that one deserves a vacation due to stress can lead to impulsive financial decisions. Instead of using vacations as a temporary escape, it's crucial to address the underlying issues causing stress. This way, vacations become a reward for resolving problems rather than a way to avoid them.
3. Plan and Budget Thoroughly:
   • Proper planning and budgeting are essential for a stress-free vacation. This includes researching costs, adding a 20% buffer for unforeseen expenses, and ensuring all current debts are paid off before incurring new ones. This method helps prevent post-vacation financial strain.
4. Prioritize Financial Health:
   • Before planning a vacation, focus on paying off existing debts and building a savings buffer. Ridgeway recommends accumulating three to six months' worth of expenses to protect against financial emergencies. This approach ensures that vacations do not compromise long-term financial stability.
5. Choose Affordable Vacation Options:
   • It's important to plan a vacation that fits within your financial means. Whether it's a luxurious international trip or a simple staycation, the key is to enjoy a break without incurring debt. Ridgeway emphasizes the value of aligning vacation choices with what one has genuinely earned and can afford.

Quotes:

1. "Think about this, what could you do with an extra $300 besides give it to a credit card company?"
2. "We want vacation to be a proactive response to a happy life, not a reactive response to a bad one."
3. "You need to get away from the 'I deserve it' myth and focus more on the 'I've earned it' reality."

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*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.

Breaking news! Trump was just injured by what seems to be bullets. Here is the audio.

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*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.

A.B. Ridgeway explores the phenomenon of supersavers—individuals who contribute significantly to their retirement savings. He discusses the historical context of supersavers, their financial habits, and practical strategies for listeners to become supersavers themselves. Ridgeway emphasizes the importance of consistent saving, the power of living below one’s means voluntarily, and the benefits of making saving as automatic as bill payments.

Key Takeaways:

1. Historical Context of Supersavers: Financial crises, such as the Great Depression, the 1980s stock market crash, the dot-com bubble, and the 2020 global events, have led to generations adopting conservative saving habits. These periods of economic uncertainty have underscored the importance of financial preparedness and the role of supersavers in weathering financial storms.
2. Understanding Supersavers: Supersavers are defined by their ability to save more than 10% of their income, often prioritizing their financial future over immediate consumption. This disciplined approach allows them to build substantial nest eggs, ensuring financial security and the ability to maintain their lifestyle in retirement.
3. The Discipline of Saving: Ridgeway emphasizes that saving is a challenging yet rewarding discipline. Choosing to save means choosing a different kind of hardship—one that brings long-term benefits. Voluntarily living below one’s means is preferable to being forced into financial constraints due to lack of preparation.
4. Automating Savings: Just as many people automate bill payments, supersavers automate their savings. By setting up automatic contributions to their retirement accounts, they ensure consistent and disciplined saving without the need for constant decision-making. This method leverages the same convenience that leads many into debt, turning it into a powerful savings tool.
5. Community and Support: Engaging with a community that values saving can reinforce good financial habits. Discussing savings goals with peers, joining financial literacy groups, and attending webinars can provide valuable insights and motivation. Seeing others succeed financially can inspire and guide one’s own journey toward becoming a supersaver.

Quotes:

1. "Every financial tragedy has created a generation of supersavers."
2. "You have to choose your hard. Savings is hard, but living in debt is also hard."
3. "There are no microwave millionaires. Consistent contributions at a high rate over many years are key to building wealth."

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*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.

A.B. Ridgeway speaks about the growing trend of personal finance education in high schools. With 26 states now mandating a personal finance course for graduation, this shift could significantly enhance financial literacy among young Americans. A.B. Ridgeway explores the recently passed bill in California as a case study, examining its potential impact on future generations and discussing the broader implications for financial education in the U.S.

1. Growing Emphasis on Financial Literacy in Schools: The number of states requiring a personal finance course for high school graduation has surged from 8 to 26 in just four years. This rapid change reflects a nationwide recognition of the importance of financial education in preparing students for adult life.
2. Details of the California Personal Finance Bill: California’s new law mandates a standalone personal finance course for high school graduation starting with the 2030-31 school year. This course cannot be combined with other subjects, ensuring that students receive dedicated financial education.
3. Global and Historical Context of Literacy: While literacy rates have improved globally over the centuries, A.B. Ridgeway notes that financial literacy remains a critical area of growth. Historically, many societies had low literacy rates, but today’s challenge is to equip students with the financial knowledge necessary for modern economic participation.
4. Parental Involvement in Financial Education: Parents play a crucial role in reinforcing financial lessons learned in school. A.B. Ridgeway emphasizes that parental engagement can help bridge gaps in financial knowledge and provide practical insights that complement formal education.
5. Beyond Basic Financial Concepts: A single semester of personal finance education can introduce students to essential concepts like budgeting and savings. However, A.B. Ridgeway stresses that ongoing education and real-world experience are vital for achieving financial fluency and stability.

Quotes:

1. “There seems to be a nationwide outcry for personal finance education in the schools.” – A.B. Ridgeway
2. “This one semester is not going to skyrocket your child into some type of financial guru. It’s just going to be an introduction.” – A.B. Ridgeway
3. “Parents still need to get involved, especially if you're financially illiterate yourself. You have more experience and can help reinforce these lessons.” – A.B. Ridgeway

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*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.

A.B. Ridgeway talks about the retirement crisis facing many Americans. Despite having checking and savings accounts, many people find themselves unprepared for retirement. Ridgeway discusses why high-yield savings accounts aren't sufficient and emphasizes the importance of early and strategic financial planning to avoid the harsh reality of working during retirement years.

Key Takeaways

1. Traditional Savings are Not Enough Traditional savings accounts, even high-yield ones, do not provide sufficient returns to sustain retirees. Historically, savings accounts offered about 8% interest, but modern rates have plummeted to around 0.06%. This decline has made it almost impossible for savings alone to support a comfortable retirement, making alternative investment strategies essential.
2. Rising Costs and Insufficient Social Security Rising living costs, including housing and medical expenses, coupled with insufficient social security benefits, have made retirement unaffordable for many. The cost of living adjustments (COLA) for social security are not keeping pace with inflation, putting retirees at risk of financial instability and forcing some to return to work.
3. The Reality of the Retirement Crisis Many older Americans are facing a grim reality where they cannot afford to retire. Research shows that only 10% of Americans aged 62 to 70 are financially stable in retirement. This crisis forces many to continue working or rely on family, significantly diminishing their quality of life.
4. Generational Wealth and Financial Planning Starting financial planning early is crucial. Saving and managing money effectively from a young age can lead to generational wealth. By preparing now, individuals can ensure a more secure future for themselves and their descendants, avoiding the pitfalls of late-stage financial planning.
5. Personal Stories Highlighting the Crisis The episode shares poignant stories, like that of Jane, who had to come out of retirement due to insufficient savings and mounting medical expenses. Despite a successful career, deteriorating health and inadequate financial planning led her to bankruptcy and reliance on family for housing, illustrating the widespread nature of the retirement crisis.

Quotes

1. "Retirement is increasingly becoming a luxury many American workers cannot afford, with rising housing costs and medical expenses."
2. "Historically, savings accounts used to yield about 8%, but now we're seeing interest rates at 0.06%. What kind of savings rate is that?"
3. "To live on social security alone nowadays is an absolute joke, especially with the rising cost of living."

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*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.

A.B. Ridgeway tackles the conventional wisdom of saving more and spending less as a surefire strategy for retirement. Through historical analysis and personal anecdotes, he underscores how modern financial challenges—such as high inflation, increased debt, and lower savings interest rates—demand a more nuanced approach. Ridgeway explores the pitfalls of relying solely on savings accounts and offers actionable advice on smarter investment strategies that can help secure a more stable financial future.

1. Historical Context of Savings: Ridgeway explains how the high-interest savings accounts of the 1980s are a thing of the past. With modern savings rates often below 0.1%, the money saved is effectively losing value due to inflation, making it critical to find better investment opportunities.
2. Impact of Inflation: Inflation erodes purchasing power over time. For example, candy costing $20 in 1997 would now cost $39.10. Ridgeway highlights that the same principle applies to money saved for the long term, urging listeners to consider investments that can outpace inflation.
3. Debt and Financial Health: The average American debt is over $104,000, which adds another layer of financial burden. High debt levels mean paying more over time due to interest, which further diminishes the effectiveness of savings as a wealth-building strategy.
4. Limitations of Savings Accounts: While savings accounts are useful for short-term goals and emergency funds, they are inadequate for long-term financial planning. Ridgeway recommends limiting savings to 6-9 months of expenses and using other vehicles like brokerage accounts and IRAs for long-term growth.
5. Importance of Strategic Investing: To combat the adverse effects of inflation and ensure sufficient funds for retirement, Ridgeway advises diversifying investments. He suggests setting up retirement accounts and brokerage accounts online, taking advantage of higher potential returns compared to traditional savings accounts.Quotes:
   1. "Even when you are saving, you are losing. Saving money in a savings account was prime advice back then, but now could be the downfall of your family's legacy."
   2. "A savings account is great for short-term purchases and emergency funds, but when it comes to your long-term money, you're going to have to be a lot smarter than that."
   3. "Retirement accounts are easier than ever to set up. You can do it from the convenience of your own home, and there are many online options that offer better returns than savings accounts."

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*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.

AB Ridgeway delves into the recent news of Bronny James, son of NBA legend LeBron James, being drafted by the Los Angeles Lakers. This episode explores the implications of this high-profile draft pick, the potential for LeBron James' free agency decision, and the broader themes of family legacy and influence within professional sports. Ridgeway connects these themes to Christian values, emphasizing the importance of guiding and preparing the next generation.

Key Takeaways:

1. The Significance of Bronny James' Draft: The drafting of Bronny James by the Los Angeles Lakers is not just a sports story but a narrative of family legacy and strategic planning. LeBron James has expressed his desire to play with his son, and this draft selection could be a culmination of that dream. It’s a unique moment in sports history that highlights the blending of personal and professional aspirations.
2. LeBron's Influence on Team Decisions: LeBron James has a well-documented history of influencing team compositions to suit his goals. His ability to generate significant revenue and his stature in the league provide him with a unique form of power. This situation with his son being drafted by the Lakers showcases his continuing influence on NBA dynamics, reinforcing the idea that financial and personal interests often intersect in professional sports.
3. The Role of Nepotism in Professional Sports: Ridgeway discusses the controversial aspect of nepotism, suggesting that Bronny's draft by the Lakers might be more about family ties than merit alone. This scenario opens up a broader conversation about the ethical implications of nepotism in sports and other professional fields, encouraging listeners to think critically about fairness and privilege.
4. The Importance of Family Guidance: Drawing on Proverbs 22:6, Ridgeway emphasizes the importance of parents guiding their children’s paths. LeBron’s involvement in Bronny’s career is a modern-day example of this biblical principle. It showcases how parents can instill values and skills that help their children succeed in their chosen fields, blending professional mentorship with familial love.
5. Financial and Career Planning for the Next Generation: Ridgeway uses the James family's story to highlight the importance of preparing the next generation for future challenges. He encourages listeners to integrate their children into their work life, teaching them financial literacy and professional skills early on. This proactive approach ensures that children are well-equipped to navigate the complexities of adult life.

Quotes:

1. "When you control the money, you control the power, and you get to make those decisions."
2. "Train up a child in the way he should go and when he's old, he will not depart from it." - Proverbs 22:6
3. "This is going to be one of the most monumental and biggest draws in history to see LeBron James and his son play together."

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*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.

A.B. Ridgeway discusses the highly anticipated debate between President Joe Biden and former President Donald Trump. Ridgeway explores the implications of their economic policies, particularly on Christian financial health. He highlights the significant issue of debt plaguing many Christians and delves into practical solutions for debt management and financial literacy.

Key Takeaways:

1. High-Stakes Political Debate: The episode begins by setting the stage for the first in-person debate of the 2024 election cycle between President Biden and former President Trump. This debate is significant due to its unique rules and high stakes, with candidates addressing crucial issues like immigration and the economy. The format includes strict regulations such as muted microphones and no props, ensuring a focused discussion on policy.
2. Impact of Debt on Christians: Ridgeway emphasizes the substantial impact of debt on the Christian community. He notes that a significant portion of Christians struggle with non-mortgage debt, with some carrying burdens as high as $100,000. This financial strain affects their families, jobs, and communities, highlighting the need for better debt management and financial literacy.
3. Financial Literacy and Debt Management: The episode stresses the importance of financial literacy in tackling debt. Ridgeway points out that while reducing credit card fees may seem beneficial, it often leads to higher interest rates, ultimately harming consumers. He advocates for comprehensive debt reduction strategies, including paying down high-interest debts with low-yield assets to achieve a net positive financial position.
4. Long-Term Financial Planning: Ridgeway discusses the significance of long-term financial planning, particularly in the context of high-interest loans. He shares an example of helping a client reduce interest payments on an RV loan by reallocating assets. This approach underscores the need for a strategic plan to minimize debt and maximize financial health.
5. Call for Financial Education: The episode concludes with a call to action for increased financial education. Ridgeway urges listeners to prioritize understanding their finances and to seek resources, such as his blog on financial stress, to improve their financial literacy. He highlights the necessity of informed decision-making to combat the pervasive issue of debt in the Christian community.

Quotes:

1. "Our country is run on a democracy, not a dictatorship. So whoever is in office, there is still what they call checks and balances."
2. "Debt is like holding a 10-pound weight over your head. The longer we hold this debt, the harder it is to manage, and the more pain it causes in our life."
3. "Financial literacy is at an all-time low in this country. When you're paying $400 for something that only costs $200, it's clear that we need to understand our finances better."

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*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.