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YOUR MONEY
JAN. 26, 2024 • 3B
Dave Says...Celebrate and give with a plan in place
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BY DAVE RAMSEY, CEO, Ramsey Solutions, and an eight-time No. 1 national best-selling author, and host of The Ramsey Show
ear Dave, My wife and I have always accepted the fact that we’d have a mountain of debt to pay off after the holidays. Having to deal with it all seemed more frustrating this year than ever before. Can you tell us how to make it through the next Thanksgiving and Christmas without having to pay off so much debt? Brady
Dear Brady, Giving is a wonderful thing if your intentions, and your finances, are in the right place. But generosity isn’t meant to be stressful to you or your bank account. It’s all too easy to try to justify overspending during the holiday season, because so many things you do are for family and friends. Still, you shouldn’t let yourself become trapped by the shopping craze or overspend-
ing just because everyone else is doing it. Give with the right intentions, and give with a financial plan in place ahead of time that doesn’t include debt. Thanksgiving is always on the fourth Thursday of November, right? And Christmas always falls on December 25. The holidays don’t come as a surprise to anyone, so don’t wait until November, then act shocked
that it’s all just around the corner. Jump on things right now, and start setting aside a little in your budget each month throughout the year for the holiday season. Sit down with your wife, and decide together how much you can put aside each month for Thanksgiving and Christmas. Once you agree on an amount, make a list, check it twice and stick to it. It’s easy to find something
in the mall you just have to buy for someone. And that’s where problems start. So, include amounts you’re going to spend on each person, each charity, or each event. It’s all just common sense. But it’s up to you and your wife—together—to decide to live on a budget and give every single dollar a job. You can do this, Brady. Make it happen! —Dave
Stock Market Insights: Red Sea attacks threaten global markets
DR. RICHARD BAKER, AIF®, is the founder of and an executive wealth advisor at Fervent Wealth Management. https://www. facebook.com/Dr.RichardBaker
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s kids, my friends and I rode our bikes from the local store to the pool hall. Usually, I’d go straight from the store to the pool hall unless the crazy guy was in my path. Our town’s crazy guy was mean, foul-mouthed, and really scary to kids. If
I saw him, I’d do like the oil tankers are doing right now; I’d take the long way around to avoid a conflict. As a wealth advisor, I’m watching a few scenarios that could mess up this potentially good election-year market: a recession, a major terrorist attack in the U.S., a large natural disaster in a major U.S. city, and a rise in oil prices. Currently, the most significant market risk is the possibility of oil and gas shipment disruptions in the Red Sea. Shipping routes in the Red Sea are being disrupted by the Houthi terrorist group’s drone and missile attacks on ships. To put pressure on Israel, the Houthis started attacking ships in November in support of the
Hamas terrorists. In response, the U.S. and others have begun launching counterattacks against the Houthi. If the attacks on shipping companies reach a point where there is a significant loss of life and cargo, the global economy could stumble. These events affect the stock market because many international ships (especially oil) sail through the Red Sea and Egypt’s Suez Canal in the north to Europe. At the end of 2023, ship traffic in the Red Sea was down nearly 20% from 2022 because of the Houthi attacks, according to Lloyd’s List Intelligence. This is significant because over nine million barrels of oil per day
(12% of the world’s oil) are usually shipped through this route, according to freight analytics firm Vortexa. The Houthi attacks are starting to impact trade. Several large shipping companies, including oil giants Shell, BP, Qatar Energy, and container shippers Maersk and Mediterranean Shipping Company, have begun rerouting their ships to a much longer, more expensive, and more hazardous route around South Africa. For example, it takes a ship going through the Red Sea and Suez Canal about 25 days to sail from Taiwan to England, but it takes 34 days to make the trip if they must go around Africa. This
extra time and expense cut into company profits. Shockingly, oil prices are $10 per barrel lower today ($73 a barrel) than they were on October 7, 2023 ($83 a barrel) when Hamas attacked Israel. That could change if Middle East tensions become a regional conflict with other countries involved, not just terrorist organizations. The greatest risk I see is if something causes Iran, which produces about 4% of the world’s oil, to stop oil production, and the other Gulf countries can’t or won’t increase their oil production to fill the void. That’s a lot of ifs, but IF that were to happen, it could increase oil prices to over $100-$120 a
barrel, leading to a 60% increase in fuel prices. Many situations could harm the economy, and this is just the latest, which is why I am such a proponent of active investment management. Someone needs to be ready to make moves in your account in response to danger and opportunities. Containers could also be sent from Taiwan to Europe by railroad across Russia, but that would mean trading one crazy for another. The seas off Cape Horn seem easier to deal with than Putin. The world seems full of crazies right now, and not just in my hometown. Have a blessed week! www.FerventWM.com
What you need to know about saving for a home in 2024
BY HEATHER TANKERSLEY, REALTOR®, provides services for residential, commercial, land and lake properties in the Branson Tri-Lakes area.
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f you’re planning to buy a home, knowing what to budget for and how to save may sound intimidating – but it doesn’t have to be. One way to ease those concerns is to make sure you understand some of the costs you may encounter up front. And to do that, always turn to trusted real estate professionals. They can help you set a plan and take a strategic look at your budget and your process before you even get started. Here are just a few things experts say you should be thinking about. 1. Down Payment Saving for your down payment is likely top of mind as you set out to buy a home. But do you know how much you’ll need? While every buyer’s situation is different, there’s a common misconception that putting 20% of the purchase price down is
required. An article from the Mortgage Reports explains why that’s not always the case: “The idea that you have to put 20% down on a house is a myth. The right amount depends on your current savings and your home buying goals.” To understand your options, partner with trusted real estate professionals to go over the various loan types, down payment assistance programs, and what each one requires. The more you know ahead of time, the easier the process will be. 2. Closing Costs Make sure you also budget for closing costs, which are a collection of fees and payments made to the various parties involved in your transaction. Bankrate explains: “Closing costs are the fees you pay when finalizing a real estate transaction, whether you’re refinancing a mortgage or buying a new home. These costs can amount to 2 to 5 percent of the mortgage so it’s im-
portant to be financially prepared for this expense.” The best way to understand what you’ll need at the closing table is to work with a trusted lender. They can provide you with answers to the questions you might have. 3. Earnest Money Deposit If you want to cover all your bases, you can also consider saving for an earnest money deposit (EMD). An EMD is money you pay as a show of good faith when you make an offer on a house. According to Realtor.com, it’s usually between 1% and 2% of the total home price. This deposit works like a credit. It’s not an added expense – it’s paying a portion of your costs upfront. You’re using some of the money you’ve already saved for your purchase to show the seller you’re committed and serious about buying their house. Realtor.
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com describes how it works as part of your sale: “It tells the real estate seller you’re in earnest as a buyer. Assuming that all goes well and the buyer’s good-faith offer is accepted by the seller, the earnest money funds go toward the down payment and closing costs. In effect, earnest money is just paying more of the down payment and closing costs upfront.” Keep in mind, an EMD isn’t required, and it doesn’t guarantee your offer will be
accepted. It’s important to work with a real estate advisor to understand what’s best for your situation and any specific requirements in your local area. They’ll advise you on what moves you should make so you can make the best possible decisions throughout the buying process. Bottom Line When buying a home, being informed about what to save for is key. Let’s connect so you’ll have an expert on your side to answer any
questions you have along the way. It’s Your Move! When you’re ready to buy or sell too, let’s connect. Have you heard of the Temporary Buydowns? Buyers have access to lower mortgage payments by reducing their rates. Call me today and I can introduce you to lenders that are helping buyers with home ownership. Heather Tankersley REALTOR®, ABR® Keller Williams Tri-Lakes D: 417 332.5130 O:417.336.4999
