Dear Dave,
Can you please define “necessities” in today’s world while trying to get out of debt and live on a budget?
Matthew

Dear Matthew,
Whether you’re talking about the world today or 50 years ago, necessities haven’t changed. Necessities are still food, shelter, clothing, transportation and utilities. We’re talking about needs versus wants. The problem is that many people were never taught that there’s a difference between the two—a big difference.

Most people have enough food to eat and a decent place to live. Those are necessities. I’m not talking about eating out or having a big, fancy house. Those are wants. Most people also have enough clothes in the closet and a way to get around town. They may not have designer clothes or a fancy foreign sports car, but again, those are wants, not needs. Keeping the lights on and the house warm in winter and cool during the summer? Utilities are a need. But no one needs a $300 super-deluxe cable television package.

Now, there are some important wants. I want you to have life insurance to protect your family. I also want you to have a will and health insurance. I want you to have some other nice things, too, like a better car or a nicer house. There’s nothing wrong, at some point, with having a few toys or eating at a good restaurant once in a while. But again, these things are wants, not needs.

Believe it or not, very few Americans struggle with basic necessities. Sure, there are hungry people and homeless people in America. Those of us who have been financially blessed should want to help the less fortunate in ways that allow them to get back on their feet and start providing for themselves again. But most folks in this country have nothing to whine about. There’s nothing wrong with having a few wants, but you should define them correctly—and never, ever put them ahead of your needs!
—Dave

Dave Ramsey is a personal money management expert, an extremely popular national radio personality and best-selling author of The Total Money Makeover. In his latest book, a follow-up of his enormously successful New York Times best-sellers Financial Peace and More Than Enough, Ramsey exemplifies his life’s work of teaching others how to be financially responsible, so they can acquire enough wealth to take care of loved ones, live prosperously into old age, and give generously to others.

Ramsey knows first-hand what financial peace means in his own life - living a true rags to riches to rags to riches story. By age 26 he had established a $4 million real estate portfolio, only to lose it by age 30. He has since rebuilt his financial life and now devotes himself full-time to helping ordinary people understand the forces behind their financial distress and how to set things right - financially, emotionally and spiritually.

Ramsey offers life-changing financial advice as host of a nationally syndicated radio program, "The Dave Ramsey Show," which is heard by more than 3 million listeners each week on more than 300 radio stations throughout the United States.

Ramsey is the creator of Financial Peace University (FPU), a 13-week program that helps people dump their debt, get control of their money, and learn new behaviors around money that are founded on commitment and accountability. More than 450,000 families have attended FPU classes at their workplace, church, military base, local nonprofit organization, Spanish organization, or community group. The average family pays off $5,300 in debt and saves $2,700 in the first 91 days after beginning FPU and is completely out of debt, except for the mortgage, in 18 to 24 months.

Ramsey created a group of products in an effort to teach children about money before they have a chance to make mistakes. Financial Peace for the Next Generation is an all-inclusive school curriculum that is currently in more than 1,800 schools across the country. Financial Peace Jr. is an instructional kit designed to help parents teach their young children about working, saving and giving their money. Through Ramsey's entertaining children's book series, The Super Red Racer, Careless at the Carnival, The Big Birthday Surprise, My Fantastic Fieldtrip, A Special Thank You and Battle of the Chores, children learn about working, saving, giving and spending money.

Ramsey earned his Bachelor of Science degree in Finance and Real Estate from the University of Tennessee. A frequent speaker around the country at large-scale live events, Ramsey is a passionate and inspiring presenter who is at ease on both sides of the mic. More than 450,000 people have attended Ramsey's LIVE events.

He resides with his wife, Sharon, and their three children, Denise, Rachel, and Daniel, in Nashville, Tennessee.

Nationally syndicated radio talk show host and best-selling author, Dave Ramsey, can add television to his resume. Dave is on Fox Business Network. Contact the local cable or satellite provider for FBN. DirecTV will carry the network nationwide on channel 359.