On The Ramsey Show – Highlights YouTube channel, American personal finance personality. Dave Ramsey suggested what Steve could do with his saved cash.
Following his advice, Steve, 48, managed to pay off his credit card, the overdraft on his debit card and refinance his house.
He was on a 30-year five percent fixed rate, however, he refinanced to a 15 year 2.5 percent fixed rate instead.
Steve said: “This saved me a ton of money.
“I wouldn’t have ever known to have done that unless I was listening to you guys.”
READ MORE: Universal Credit rule change set to affect 114,000 Britons – will your payment change?
The only debt he now has is house payment and truck payment.
His annual income is around $80,000 (around £70,000).
Steve has $22,000 (around £19,000) in a safety deposit box and $20,000 (around £17,500) in his savings account that he did not know what to do with it.
He said: “What do you suggest I do with that?
“You have to start saving for retirement,” he said.
Mr Ramsey explained to his co-host that Steve has not used the power of his income to get out of debt and point it to something other than just piling up in a cash safe deposit box.
He suggested that Steve points his money towards wealth building.
He said: “As inflation sits over nine percent in the US, that means every $10,000 (around £8,000) that is in there is losing around $900 (around £800) a year.
“In two years that is $2,000 (around £1,700) you have lost sitting in a. She deposit box in purchasing power.
“You can’t let money just sit in a stack as it goes down in value.”