Personal finance guru Dave Ramsey says that people need an emergency fund of $ 1,000. It also says that if a $ 600 or $ 1,400 stimulus check were a lifesaver for you during the current pandemic state of emergency, “I was pretty screwed up.” The radio host and author objected to President Joe Biden‘s proposed round of stimulus checks while speaking on Fox News Thursday, telling “America’s Newsroom” that he “don’t believe in a stimulus check.”
“’If $ 600 or $ 1,400 changes your life, you were pretty screwed. You have other problems. ‘ “- Dave Ramsey
“You have a professional problem. You have a debt problem. You have a relationship problem. You have a mental health problem, ”he continued. “Something else is happening if $ 600 changes your life.” Check it out here: He was quick to say that he was not “talking scornfully to people” as he has been bankrupt himself and helps people who are suffering financially every day. But he argued that the government‘s stimulus controls are only throwing money at one problem, rather than fixing the underlying problems. Or, as he put it in bright colors, this is “peeing in a forest fire. It’s absolutely ridiculous. “A video clip of his encouragement comments went viral on Twitter TWTR, + 1.17% Thursday afternoon, with many people taking offense at the” contempt and disdain “he seemed to show for people who are struggling. Others accused him of ignoring systemic inequalities across the country that were already widening the wealth gap and keeping minorities, women, and low-income Americans in poverty before anyone ever heard of COVID-19, and that only have been exacerbated by a deadly pandemic that continues to see more than a million applications for unemployment benefits each week. Before the pandemic, many Americans were already in a precarious financial position; A Reserve Board Economic Welfare report Federal 2018 found that four in 10 Americans could not cover an emergency expense of $ 400, and a CNN report that same year found that one in four e Americans had no emergency fund. The coronavirus pandemic has only compounded that problem. In fact, Ramsey’s most prolific personal finance tip – that those who pay off debt keep a starting emergency fund of $ 1,000 – has become obsolete. Many people struggling to make ends meet have commented on Reddit that essential expenses worth three to six months in an emergency were long gone, and stimulus checks and unemployment benefits have been key to stay afloat. Read more: The pandemic has thrown this treasure trove of financial wisdom out the window Opinion: White men are mostly fine with no further economic relief from Washington, but almost everyone else is suffering Many people on Twitter compared Ramsey’s message: “ you were pretty screwed up already ”in response to denying food or water to a dying person, since they were already dead. “If you’re already struggling, just get rid of the whole person,” wrote one reviewer. Ramsey’s supporters argue that he has a point: that the country’s underlying financial weaknesses cannot be solved simply with a couple of stimulus checks. Meanwhile, millions of Americans are waiting with great anticipation to see if they will receive $ 1,400 stimulus checks as part of President Biden’s proposed $ 1.9 trillion COVID-19 relief package. Most of the people who received a direct payment of $ 1,200 last year as part of the $ 2.2 trillion CARES Act spent those first stimulus checks to pay bills, according to a YouGov survey. “It is alarming to see how many Americans used these funds to keep a roof over their head and pay for their necessities,” the report said.