On the episode of “The Ramsey Show,” personal finance expert Dave Ramsey shared his advice on handling money in unpredictable times.
One of his key points? Keep a small stash of emergency cash at home or in your wallet.
“I’m a redneck,” Ramsey said. “I always keep a thousand bucks in my pocket. That’s my redneck emergency fund.”
Ramsey’s comment came in response to a caller who asked whether he should start storing cash at home after experiencing a banking glitch.
Ramsey made it clear: the bigger issue isn’t whether you should stash bills under your mattress, but whether you’re banking with the right institution.
“Well, the problem is not whether you have cash at home,” Ramsey said.
“The problem is you’re dealing with the world’s worst bank. Bank of America sucks, as you have discovered, my friend. So, yeah, you need to get with a small town local bank or a good credit union like Fairwinds Credit Union, and um then somebody will actually answer the freaking phone on the other end.”
Don’t Go Overboard With Cash
While Ramsey supported keeping a modest amount of physical cash on hand, he warned against going too far.
“You can’t keep enough cash at home to sustain life if the entire banking system collapsed and you could never access your money again, right? I mean, so there’s not enough cash for that,” he said.
“Besides that, cash probably won’t work if that’s happened because there’s probably something else going on, too. You’ll probably just need bullets and water, and gasoline at that point.”
Co-host Dr. John Delony agreed that some cash at home can ease anxiety, especially during emergencies like power outages or frozen bank accounts.
“The placebo effect. The fact that you took this and you feel better is actually a net benefit. it. So, I’m going to tell you to keep doing it because there’s no harm to it,” Delony added.
Bad Banks, Good Advice
Ramsey didn’t hold back when criticizing big banks. He called out Bank of America and Wells Fargo by name, saying they’re too massive to care about individual customers.
“This whole call points out is you need to change banks, that’s what the whole thing’s about, really. I mean, at the end of the day, honestly, that’s the kind of experience people have had with the Wells Fargos and the Fifth Thirds and the Bank of Americas and so forth.”
For those worried about accessing their money during a crisis, Ramsey’s solution is simple: keep a little cash, but put most of your energy into choosing a bank you trust.
Boundaries, Budgets, and Big Mistakes
The episode also touched on several real-life financial dilemmas. One caller asked whether it was a good idea to live in a guest house behind his parents’ home for $250 a month after getting married.
Ramsey and Delony agreed it could work, but only with strict boundaries.
“I think it’s really important that you and your fiancé sit down and say, “Okay, when we move in, we’re only going to do one meal a week and we’re only going to do this for six months. We’re only going to do this,” Delony said.
He added, “So, it’s not the proximity, it’s not having boundaries, and the proximity could be no issue if we set those boundaries and are firm with them.”
Avoid Mixing Love and Loans
Ramsey gave a strong warning to a woman who bought a house with her boyfriend and now wanted to get her money back.
“Molly, get married by Saturday, and stop this shacking up crap because you’re doing things backward, or sell the house. Those are the only two ways you will survive this.”
He emphasized that couples who aren’t married should never make major financial commitments together, like buying property.
If something goes wrong, the legal mess can be worse than a breakup.
Final Word
Ramsey’s overall message was simple: pay attention to your money, have a small cushion for unexpected events, and avoid making choices based on impulse or comfort.
He ended the discussion by reminding listeners that poor money decisions often have lasting effects, even if the damage isn’t obvious right away.
If you’re not sure how much emergency cash to keep on hand, his example of carrying around a thousand dollars shows it’s about being prepared without going overboard.
IMAGE CREDIT: ”Dave Ramsey” by Gage Skidmore, via Flickr. Licensed under CC BY-SA 2.0. Image adjusted for layout.