The Ramsey Show

My Fiancé Broke Off Our Engagement Because Of My Money Habits

February 5, 2026

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  • Healing from a relationship breakup caused by money habits requires rebuilding self-trust and focusing on creating new, healthy financial behaviors. 
  • Impulsive spending, such as buying a new car out of frustration, is a sign of delayed gratification failure, which must be addressed to achieve financial maturity. 
  • When facing divorce, a stay-at-home spouse is legally entitled to marital assets, and focusing on legal facts is crucial to counter gaslighting and maintain peace amidst the chaos. 
  • For those in Baby Step Seven, investing in non-retirement taxable brokerage accounts should follow a diversified strategy across four types of mutual funds: growth and income, growth, aggressive growth, and international funds. 
  • When facing unexpected debt like a co-signed repo bill while expecting a baby, prioritize securing the expected medical out-of-pocket maximum, then aggressively attack debt using the debt snowball method. 
  • Financial predictions for 2026 included expectations for slowly decreasing mortgage rates, a stagnant job market characterized by 'low hire, low fire,' and continued negative impacts from sports betting and the expansion of 'buy now, pay later' options. 
  • Draining an emergency fund to pay off debt creates a false sense of security because the net worth remains negative until the debt is cleared. 
  • Buying a new, nicer car can raise one's financial baseline, making it difficult to accept driving an older, less-featured vehicle later, even if necessary for financial goals. 
  • For older couples with substantial retirement savings ($2.3 million), self-insuring against long-term care costs might be a viable option if the annual insurance premiums ($6,800+) feel too steep relative to current income. 

Segments

Healing from Breakup Over Money
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(00:00:38)
  • Key Takeaway: Healing from a breakup due to money habits involves rebuilding self-trust and creating new habits to change the family financial tree.
  • Summary: The caller experienced a breakup after her engagement due to her significant student loan and credit card debt, which stemmed from caregiving responsibilities after her father’s death. The ex-fiancé was concerned with her money behavior, not just the debt amount. Healing requires separating personal identity from money mistakes and focusing on counseling and new budgeting habits.
Car Purchase Regret and Debt
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(00:10:31)
  • Key Takeaway: Impulsive new car purchases while carrying significant credit card debt prevent financial progress and should be immediately reversed by selling the vehicle for cash.
  • Summary: A 60-year-old caller bought a new Bronco Sport emotionally while owing $20,000 in credit card debt, leading to regret over the high payment. The host advised selling the new car to recover cash, even if it means buying a cheaper, older vehicle like a Honda Element temporarily. The goal is to eliminate the car payment and redirect that cash flow toward eliminating the existing credit card debt.
Divorce Financial Abuse Concerns
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(00:22:37)
  • Key Takeaway: In emotionally and financially abusive divorces, the non-provider spouse must secure legal facts regarding asset division and access joint funds immediately.
  • Summary: A stay-at-home mother of three is facing divorce from a financially abusive husband who is threatening to cut off financial support and legal fees. She must consult her lawyer to understand her rights concerning alimony, child support, and marital assets like the 401k and pension. She was advised to immediately access the joint checking account in person, as the husband cannot legally restrict her access as an account owner.
Emergency Fund Usage Guidelines
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(00:33:02)
  • Key Takeaway: The emergency fund is intended for urgent, necessary, and unexpected events, such as a car being totaled by a city bus, and should be replenished immediately after use.
  • Summary: A caller who was hit by a city bus while driving his older car needs to use his emergency fund to replace the totaled vehicle, as insurance coverage was minimal. The hosts advised using $5,000 from the $15,000 fund to purchase a reliable, used car with cash, leaving $10,000 remaining. The priority then shifts to rebuilding the emergency fund rather than incurring high-interest credit card debt for the replacement vehicle.
Term Life Insurance vs. Whole Life
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(00:39:16)
  • Key Takeaway: Term life insurance covering 10 to 12 times annual income for 15 to 20 years is the correct choice to replace income until a family becomes self-insured through debt freedom and retirement savings.
  • Summary: The caller was paying $315 monthly for a whole life policy and found a 20-year, $1 million term policy for $104 through Zander Insurance. The hosts confirmed that term life is superior for income replacement, suggesting a 15-year term based on their children’s ages and future financial security goals. The purpose of the coverage is to replace income so that the surviving spouse can invest the benefit and become financially independent.
Paying Off Student Loan Debt
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(00:44:40)
  • Key Takeaway: Aggressively attacking $100,000 in student loan debt requires living like a broke law student despite a high combined income to achieve payoff in under two years.
  • Summary: A couple with $100,000 in student loan debt must live on a highly restricted budget, similar to a broke law student, to pay it off quickly, especially since a promised payoff from a family member is no longer available. They should investigate penalties for breaking a two-year CD containing $75,000 to apply that lump sum toward the debt immediately. The goal is to gain financial intentionality and freedom within two years, allowing them to control their future housing plans.
Baby Step Seven Investment Strategy
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(00:54:47)
  • Key Takeaway: After achieving debt freedom (Baby Step 7), focus shifts to maximizing tax-advantaged retirement accounts (IRA/Roth IRA) before investing in taxable brokerage accounts.
  • Summary: A 65-year-old caller, debt-free with a paid-off house, needs to replenish his emergency fund ($25k saved toward a $50k goal) and optimize investments. He should keep his emergency fund in a high-yield savings account, like the one offered by Fairwinds Credit Union. The investment strategy involves maximizing IRA contributions and diversifying taxable brokerage funds across growth, growth and income, and international mutual funds to de-risk the portfolio.
Investing Beyond Retirement Accounts
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(00:58:36)
  • Key Takeaway: Taxable brokerage accounts should be diversified across four specific mutual fund types for de-risking.
  • Summary: After maxing out retirement options, the next investment move is a taxable brokerage account using mutual funds. Ramsey principles recommend diversifying across four types: growth and income (high cap), growth, aggressive growth (low), and international funds. This diversification helps balance the portfolio, as seen when the U.S. market dipped between 2000 and 2010 while international markets balanced it out.
Baby Step Seven and Retirement Planning
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(00:59:37)
  • Key Takeaway: Baby Step Seven involves living like no one else to build wealth, allowing for options like paying cash for real estate.
  • Summary: At Baby Step Seven, individuals can max out all available accounts and have significant financial freedom. The strategy supports working as long as desired, allowing retirement nest eggs to grow via compound growth. Delaying Social Security until age 70 maximizes the benefit amount, and individuals over 50 can utilize catch-up contributions for retirement accounts.
Handling Unexpected Repo Debt
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(01:01:14)
  • Key Takeaway: When facing unexpected debt while expecting a baby, secure the estimated medical out-of-pocket costs first, then resume the debt snowball.
  • Summary: A couple facing a $15,000 deficit from a co-signed, repossessed car must first ensure their emergency fund covers the expected out-of-pocket maximum for the upcoming baby. After securing that baseline, they should immediately resume the debt snowball, attacking debts from smallest to largest balance. The couple, earning over $100,000 combined, has the income capacity to aggressively tackle their $40,000 in debt quickly.
Casper Mattress Advertisement Read
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(01:04:36)
  • Key Takeaway: Casper mattresses are top-ranked by Consumer Reports and offer deep, cool, comfortable sleep.
  • Summary: Experts design Casper mattresses to promote deeper, cooler, and more comfortable sleep, earning top rankings in both foam and inner spring categories from Consumer Reports. Listeners can use promo code RAMSEY at casper.com/slash Ramsey for 25% off mattresses and 10% off everything else.
2026 Financial Predictions Segment
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(01:05:50)
  • Key Takeaway: Predictions included mortgage rates settling in the low fives/high fours, a ’low hire, low fire’ job market, and continued negative impact from sports betting.
  • Summary: Predictions for 2026 suggested mortgage rates would slowly creep down into the low fives or high fours, while the job market would remain stagnant with companies reluctant to hire or fire talent. Rachel Cruze strongly predicted that socialized gambling via sports betting would continue sabotaging young men’s finances. Ken Coleman predicted the stock market would remain relatively consistent, ending the year at a similar level due to strong U.S. economy fundamentals driven by AI and tech.
Airbnb Market Shift Prediction
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(01:09:07)
  • Key Takeaway: The Airbnb market is bifurcating, with luxury listings remaining strong while cheaper, over-saturated listings face decline.
  • Summary: The Airbnb market is undergoing a complex shift where cheaper, smaller listings in saturated areas will see a continual decline in demand. Luxury listings, however, are expected to maintain strong demand as wealthier consumers remain price-confident. Owners who over-leveraged themselves in the cheaper market should consider selling before 2026, as a rebound is not anticipated.
EveryDollar App Promotion
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(01:15:37)
  • Key Takeaway: The EveryDollar app facilitates budgeting and eliminates money fights through full transparency between spouses.
  • Summary: The EveryDollar app is promoted as the tactical way for people to gain control over their money goals. A user testimonial highlighted that implementing the budgeting practice since their wedding day resulted in zero money fights due to full transparency. Listeners can download the app for free in the App Store or Google Play to start budgeting.
Navigating Foreign Medical Crisis
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(01:16:15)
  • Key Takeaway: In a foreign medical crisis, parents’ savings should be used first, and the daughter should cover only her own travel expenses.
  • Summary: When a father suffers a cardiac arrest overseas, the immediate priority is his health, utilizing the parents’ $71,000 emergency fund before incurring new debt. The 25-year-old daughter, who has no debt, should cover her $5,000 travel costs separately. Before paying large hospital deposits, the family must verify insurance claims and ensure all medical bills are properly accounted for to limit financial damage.
Concern Over Elderly Father’s Home Purchase
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(01:25:46)
  • Key Takeaway: An 87-year-old father buying a $425,000 home with a VA loan while his daughter lives in his paid-off $400,000 home creates a potential estate nightmare.
  • Summary: The executor of an 87-year-old father’s estate is concerned because he is using a VA loan for a $425,000 house to be near his financially unstable 88-year-old girlfriend, while his daughter lives in his paid-off home. The father is creating a potential financial nightmare for his four children by potentially commingling assets before marriage. The recommended action is to immediately involve an estate attorney to update wills and beneficiaries to protect the existing assets.
Question of the Day: Point of Marriage
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(01:35:46)
  • Key Takeaway: Legally marrying provides essential financial protection and commitment that cohabitation lacks, despite avoiding a traditional ceremony.
  • Summary: From a non-spiritual perspective, legal marriage offers crucial financial protection and a system to safeguard both parties, especially if children are involved in the future. Cohabitation often leads to resentment when one partner desires the next level of commitment that marriage provides. While skipping the ceremony is acceptable, the couple should formalize the union legally, as they are currently operating as ‘roommates with benefits.’
Rapid Debt Attack Plan for High Earner
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(01:39:19)
  • Key Takeaway: A 29-year-old truck driver earning $120K-$140K annually can eliminate $40K in debt and fully fund an emergency fund within about ten months.
  • Summary: The caller, who has low monthly expenses of $1,500, should aggressively attack his $40,000 debt load using the debt snowball method, prioritizing the $17,000 credit card debt after paying off the smaller car loan. By throwing approximately $5,000 monthly at the debt, he can be debt-free in about seven months, followed by three to four months to build a fully funded emergency fund. Consistently investing 15% of his income ($20,000 annually) from age 29 to 60 could result in over $4.3 million by retirement.
Regret Over New Car Purchase
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(01:46:56)
  • Key Takeaway: A family with a fully funded emergency fund should prioritize eliminating the debt on a new car that causes mental distress, even if it means draining savings temporarily.
  • Summary: The caller regrets buying a new $37,000 Palisade, which resulted in an $805 monthly payment and $41,000 total interest paid, despite being able to afford it. Since the family has a $20,000 three-month emergency fund, they have two options: aggressively pay off the car in a few months or drain the emergency fund to eliminate the debt immediately. The hosts advise getting rid of the car because the debt creates a false sense of security and mental burden, even if they can afford the payment.
Emergency Fund vs. Debt
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(01:52:03)
  • Key Takeaway: Holding debt while maintaining a large cash reserve creates a negative net worth illusion that should be resolved by debt payoff.
  • Summary: Draining the emergency fund to pay off a large car loan is presented as a necessary step because having $20,000 saved against a $40,000 debt leaves one in a negative net worth position on paper. The speaker advises against the false security of having cash while owing significant debt. The caller must choose between selling the car or draining the emergency fund to aggressively pay down the $40,000 obligation.
Car Depreciation and Lifestyle Creep
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(01:53:34)
  • Key Takeaway: Newer vehicles quickly become the mental baseline, making downgrading feel like a significant regression in lifestyle.
  • Summary: Children and pets rapidly deteriorate vehicle interiors, making temporary justifications for a new car less practical over time. Jumping too far ahead in vehicle quality (e.g., from an older model to a very new one) establishes a high baseline that makes returning to an older car feel like going backward in time. Features like heated steering wheels can become perceived necessities, illustrating lifestyle creep.
New Year Motivation vs. Planning
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(01:55:39)
  • Key Takeaway: New Year motivation is insufficient for financial goals; an actionable, personalized budget plan is required for success.
  • Summary: New Year’s financial resolutions often fail because motivation alone is temporary. The EveryDollar app provides a personalized plan that coaches users to stick with their budget. The average user finds $3,015 in hidden money within the first 15 minutes of using the budgeting tool.
Long-Term Care Insurance Viability
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(01:56:47)
  • Key Takeaway: Couples with significant retirement assets ($2.3M) and low current expenses may be financially capable of self-insuring against long-term care needs.
  • Summary: A quote for long-term care insurance was $6,800 annually, increasing by 15% every seven years, which the caller found steep given their $4,000 monthly part-time income. Since 70% of people turning 65 need long-term care, the risk transfer is valuable, but the caller’s growing investment portfolio might negate the need. The decision hinges on projected retirement expenses and accepting that self-insuring means potentially leaving less inheritance.
Gift with Stipulations Dilemma
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(02:02:56)
  • Key Takeaway: A large, specific gift (a $100k Ford Raptor) offered while actively pursuing debt payoff creates marital tension regarding financial control and priorities.
  • Summary: Jared’s mother offered to buy him his dream vehicle (a new Ford Raptor, valued around $100,000) while he and his wife are in Baby Step Two with $86,000 in debt. The wife prefers the cash equivalent to eliminate debt, viewing the specific gift as another instance of the mother crossing financial boundaries. The hosts suggest delaying the gift until the debt is cleared, provided the couple can afford the higher insurance and maintenance costs of the new vehicle in the interim.