George Kamel
Appearances
The Ramsey Show
Be the Tortoise Not the Hare
Especially when you're sitting on all these student loans, which tells me if you had the money to pay off your student loans, most people go, yeah, I'd love to pay them off. But you said, nope, I'm going to hold because of really what it is at the end of the day is it's a greed. There's a level of pride and greed that goes everywhere. Nah, I'm going to keep riding this ride. Well, it's arrogance.
The Ramsey Show
Be the Tortoise Not the Hare
I have too much anxiety for these 24-7 cryptos. I mean, you could pull up at 3 a.m. and it's going up, down, up, down, up, down. Okay, now it's here, now it's there.
The Ramsey Show
Be the Tortoise Not the Hare
This is stuff people go, well, we've heard all of it on the show. No, you haven't. Not this stuff. This guy's pulling out formulas that I think even mathematicians are astounded by.
The Ramsey Show
Be the Tortoise Not the Hare
Especially real estate. Exactly. So night two, we're focusing on real estate, real estate investing, buying investment property. And Dave pulls up real properties that he owns, showing you exact calculations of how he gets their cash on cash returns. And there's APODs. John, it's amazing.
The Ramsey Show
Be the Tortoise Not the Hare
You have the pleasure of sitting next to Dave and on a break you're like, hey Dave, can you tell me about this?
The Ramsey Show
Be the Tortoise Not the Hare
My favorite is that Dave says, who's going to care about this? They don't want to go that deep. And then people were like, please, we want to go deeper. Tell us more. Yeah, exactly. Dave calls it nerdville. because it really is, we kind of nerd out. We obviously cover the basics. We're going to tell you how to invest, how to pick mutual funds, retirement plans.
The Ramsey Show
Be the Tortoise Not the Hare
We cover all that, but then we go deeper into what about beyond that? What's beyond the baby steps?
The Ramsey Show
Be the Tortoise Not the Hare
We got you. George loves pickles. I specialize in brined cucumbers. Yes. Let's do this.
The Ramsey Show
Be the Tortoise Not the Hare
Decided that I wasn't going to be... Were you also called into 200 grand of student loan debt?
The Ramsey Show
Be the Tortoise Not the Hare
Sell it right now. Yeah. How much could you sell it for?
The Ramsey Show
Be the Tortoise Not the Hare
And here's how you go car shopping from now on. You have $9,000. That's your new car budget. Not $10,000, not $12,000 because the salesman was like, oh, you could upgrade to this model if you just put it. The one you can afford in cash is the one you drive right now.
The Ramsey Show
Be the Tortoise Not the Hare
And then with more savings, you're going to be able to save up with no debt to upgrade that over time to where it's not crushing your life and hurting your relationships.
The Ramsey Show
Be the Tortoise Not the Hare
You make $130,000. You've taken the step. Are you in crippling debt? Not at all. I have zero debt. Oh, my goodness. Dude, you're making more than double the average income in the United States.
The Ramsey Show
Be the Tortoise Not the Hare
I want to be an eagle. Because as Dave says, if you stay, you become a turkey if you never leave the eagle's nest.
The Ramsey Show
Be the Tortoise Not the Hare
That's awesome. Less than 25% of take-home pay. That's the angle.
The Ramsey Show
Be the Tortoise Not the Hare
No, it's not something that we recommend. Did you hear that you need it from someone else?
The Ramsey Show
Be the Tortoise Not the Hare
Yeah. Well, the only time we'd recommend something like that is if you don't qualify for term life insurance.
The Ramsey Show
Be the Tortoise Not the Hare
My brain couldn't even fathom when you said he makes $300,000. How much money do you all have in retirement savings?
The Ramsey Show
Be the Tortoise Not the Hare
Okay. So I'm confused where this $300,000 is going because it's not going to retirement. It's not going to cash flow because you're going to debt. So where is $300,000 disappearing into?
The Ramsey Show
Be the Tortoise Not the Hare
And if you want some encouragement, go check out our friend Jade Warshaw's story. Her and her husband were making, what, 30 grand when they started paying off almost half a million in debt? So we've seen worse. And what they did was they got their income way up. By the end, they were making over 200 grand. And you guys will be too once you're married. Let's set a plan.
The Ramsey Show
Be the Tortoise Not the Hare
I think you guys are aligned in knowledge, but we're not aligned on a plan. That's right. How much does he pay himself every year out of this business?
The Ramsey Show
Be the Tortoise Not the Hare
Because you said you have expenses, there's people you're paying, so you guys need to sit down and figure out what is our income going to be for 2025 And if it's $200,000, we need to be throwing the majority of that at our debt. We've got to cover the bills, the four walls, food, utilities, housing, transportation.
The Ramsey Show
Be the Tortoise Not the Hare
But beyond that, we're not going to let this money disappear because we've been doing that for four decades now, and we're going to have to retire one day. What was your revenue last year that you reported with the IRS?
The Ramsey Show
Be the Tortoise Not the Hare
So that would be your gross income for the year, meaning you're probably taking home closer to $120,000, so $10,000 a month take-home pay. You know that money's going.
The Ramsey Show
Be the Tortoise Not the Hare
You know what I mean? It's heartbreaking, especially when you get into your 60s and you're going, hey, we'd like to retire next year. And I go, the math says you can't. I'm the bearer of bad news now because I broke your heart, but it's not a decision you get to make. The math does that for you. Otherwise, you're going to just carry debt until you die of stress and anxiety.
The Ramsey Show
Be the Tortoise Not the Hare
And so in a situation like this, they can clean it up, but they need to be aligned on the plan of, all right, we got to throw five grand a month of this debt. That's 60 grand a year. We'll be done with the 120 in two years. Then we can start tackling the mortgage. Then we can retire.
The Ramsey Show
Be the Tortoise Not the Hare
We're going to say, all right, we're going to throw five grand of this debt every month. That's 60 grand a year. It's done in this amount of time. And bada bing, bada boom, you're out of debt in less than three years.
The Ramsey Show
Be the Tortoise Not the Hare
So it's not as, I don't want you to think this is like, oh my gosh, everything's on fire. It's bad. Let's not, you know, mince words, but it's not the end of the world. I need to file bankruptcy and start over. And can I challenge you with something?
The Ramsey Show
Be the Tortoise Not the Hare
I feel like fair is that that word is stuck with me. I'm like, is it fair? It's the wrong answer. It's the wrong question. It's more like what is necessary to keep the roof over our heads and keep the kids fed and keep the basics here. I wouldn't use it as a punishment. And I don't think you are. You sound like a lovely person.
The Ramsey Show
Be the Tortoise Not the Hare
My gut says if you, the attorney, the courts, they're going to say, hey, this is a last ditch thing that we would need to approve in order to garnish his retirement to make this happen. They're going to explore every other option and they may end up where you are going. This is all this guy has. And here's how much we're going to garnish to make this work. But he's broke.
The Ramsey Show
Be the Tortoise Not the Hare
And so we can't just rob his entire retirement and just give it to you. They might have a different option.
The Ramsey Show
Be the Tortoise Not the Hare
Yeah, that, if I'm you. That's the best solution based on what you told us. And I think if you went to the courts and an attorney, they'd probably tell you something similar. Is let's explore that before we garnish his retirement. But that doesn't put cash in your pocket.
The Ramsey Show
Be the Tortoise Not the Hare
I think we need to figure out how to make Kathleen's life sustainable without the outside help. And that might take some sacrifice in the short term. You might need to pause going to school.
The Ramsey Show
Be the Tortoise Not the Hare
And I imagine when something traumatic happens in your grieving, a piece of that grieving often looks like trying to find a villain, trying to find a shortcut to fix this, someone that can take this on.
The Ramsey Show
Be the Tortoise Not the Hare
That's part of the show. We don't always have magic answers. No. When we do, it is magic.
The Ramsey Show
Be the Tortoise Not the Hare
But I heard on the Internet that it's best to have separate accounts. And here you are telling me. Yeah. OK, I'm joking with you because this is the hate we get when we tell people combine finances for this reason, for transparency, accountability, because it's real hard to make financial mistakes when your partner is locked in arms with you.
The Ramsey Show
Be the Tortoise Not the Hare
You have someone else to say, hey, maybe we shouldn't take out that line of credit. So did you know he was doing this and agree to it? Did you tell him stop? Did he do it behind your back?
The Ramsey Show
Be the Tortoise Not the Hare
So let me answer your question simply. Should you help your husband pay off his debt? No. Should you guys pay off your debts? Yes. So there's a different piece of language that's going to require some hard conversations, some reset, some alignment to go. We're doing everything together and that means no more debt. We're paying this off once and for all.
The Ramsey Show
Be the Tortoise Not the Hare
And you're not going to make any decisions behind my back. I'm not going to make any decisions behind your back.
The Ramsey Show
Be the Tortoise Not the Hare
Why are you going with Webull? Why go with any singular app that you can get on your phone?
The Ramsey Show
Be the Tortoise Not the Hare
Or we use our workplace 401k. And maybe get on and do an index fund or something. Webull was designed for day traders, which if you heard on that last call, that's the kind of people who are using Webull. It's not to say you can't find some decent funds on there and invest in an index fund.
The Ramsey Show
Be the Tortoise Not the Hare
What I'm telling you is if you use one of those apps, it's going to psychologically get you to do something dumb. Because they're going to give you notifications.
The Ramsey Show
Be the Tortoise Not the Hare
Yeah. So, Victor, if you want to do – I have no problem with DIY investing. If you know what you're doing, you're comfortable with it, you've already built a foundation. But most people going on here are in crippling debt trying to get rich off a stock trade. And that's not how building wealth works.
The Ramsey Show
Be the Tortoise Not the Hare
And these people are not doing retirement investing in Webull. So I would start there. You want tax advantaged investing in a retirement account. Go with that with your employer, a Roth IRA. You can go with one of the big three if you want to do that. Vanguard, Schwab, Fidelity. But I would not mess with these bells and whistles apps that try to get you, lure you back in for another trade.
The Ramsey Show
Be the Tortoise Not the Hare
I still remember 10 years ago, 23 years old, I was frustrated, anxious, and flat broke. I had followed all the ways that toxic money culture had led me down from well-meaning parents and misguided guidance counselors, and it left me with a pile of debt. But I'm telling you, it doesn't have to stay that way. Over a decade, I went from broke to millionaire.
The Ramsey Show
Be the Tortoise Not the Hare
and I break it all down in my new book, Breaking Free from Broke. I'm going to show you just how toxic this money system is and how you can break free from credit scores and credit cards and student loans and auto loans and investing traps and finally live a life that you're not exhausted by, a life with more margin, more options, and more peace.
The Ramsey Show
Be the Tortoise Not the Hare
If you want to check out the book, go to ramsaysolutions.com to get your copy of Breaking Free from Broke. That's ramsaysolutions.com.
The Ramsey Show
Be the Tortoise Not the Hare
Today's question comes from Kurt in Florida. I'm a 30 year old business professional making six figures with a car payment and a mortgage. I bought a home in Florida, mainly for my mom, who now lives with me. I cover all the household expenses, including food and bills.
The Ramsey Show
Be the Tortoise Not the Hare
She receives a thousand in Social Security every month, which she doesn't touch, even though I ask her to at least contribute to the cost of groceries. My mom also pressures me to send money to relatives in another country, even though I've explained that I don't have much left after my financial priorities.
The Ramsey Show
Be the Tortoise Not the Hare
Am I wrong for asking her to contribute financially even though I can technically afford it? How do I set boundaries without feeling guilty or jeopardizing my financial goals? My father passed away three years ago, so it's just me and her.
The Ramsey Show
Be the Tortoise Not the Hare
Well, it sounds like he's, by the way, this is all phrased. He's resentful that he even is in this position. I bought a home in Florida mainly for my mom. She gets this money. I ask her to contribute and she's not doing it. She's asking me to do this for relatives in the other country. So he's fed up with this whole situation that he's put himself in.
The Ramsey Show
Be the Tortoise Not the Hare
The richest irony is that your name is Grace and you have none for yourself.
The Ramsey Show
Be the Tortoise Not the Hare
And you want to be an honorable son, which I think is what has caused a lot of this, of saying, well, mom didn't prepare for retirement. She makes $1,000 a month, which, by the way, is below poverty level.
The Ramsey Show
Be the Tortoise Not the Hare
And now I need to float her bills. Oh, and by the way, dad passed away, so now I'm the man of the house needing to provide for her.
The Ramsey Show
Be the Tortoise Not the Hare
So, Grace, there's two parts of this. One, there's the emotional healing that John's talking about. And then number two is the tactical, I got to work my butt off doing three side hustles. And guess what? You guys are going to get married. It's going to get paid off. If it's two years or four years, whatever it takes, it's going to happen.
The Ramsey Show
Be the Tortoise Not the Hare
I'm thinking about if you get rid of this car payment, that's kind of like what mom would have given you for groceries. So you can kind of create that income for yourself by getting rid of this car that you couldn't afford. And choose to not be miserable.
The Ramsey Show
Be the Tortoise Not the Hare
My favorite part of this question is the fact that he referenced himself as a business professional. I've just never heard that in real life, and I appreciate that, Kurt. I'm going to refer to myself as a business professional.
The Ramsey Show
Be the Tortoise Not the Hare
Most people are like, I'm doing so great. We're like, what's going on? You're like, well, I'm in crippling debt and super stressed. All right. What's up?
The Ramsey Show
Be the Tortoise Not the Hare
You give the payments to them instead, which tanks your credit. Collectors come after you, and then they go, we'll help you settle, and it'll all work out, right?
The Ramsey Show
Be the Tortoise Not the Hare
And so I think right now it feels like it's never going to happen. Therefore, I need a shortcut.
The Ramsey Show
Be the Tortoise Not the Hare
You do, and you'll have to cancel the contract with them. So you'll need to check the document you signed for a cancellation clause, see if there's any fees or penalties for getting out of this.
The Ramsey Show
Be the Tortoise Not the Hare
Amazing. Which tells me you guys on that budget can get out of this on your own. And so I would figure out what the fees are and calculate it and go, all right, we're going to be out of this debt faster on our own instead of hoping, wishing, waiting on someone else to do it while screwing us over.
The Ramsey Show
Be the Tortoise Not the Hare
Maybe a sunk cost fallacy. Ooh, I like that. That's a fancy word for it.
The Ramsey Show
Be the Tortoise Not the Hare
Okay, picture this. You sit down to do your taxes, but instead of stressing out, you're actually ahead of the game and filing with an affordable software that makes your computer shoot confetti when you're done. Okay, not that last part, but Ramsey Smart Tax does make filing easy and doesn't make your bank account cry.
The Ramsey Show
Be the Tortoise Not the Hare
Ramsey Smart Tax is a 100% accurate software that's honest about its pricing and is backed by a company who's been in the business for over 50 years. So go to ramseysolutions.com slash smart tax to take advantage of early bird pricing and stress-free filing. That's RamseySolutions.com slash SmartTax. Welcome back to The Ramsey Show. I'm George Camel here with Dr. John Deloney.
The Ramsey Show
Be the Tortoise Not the Hare
If you've been listening to the show for any amount of time, you may have heard us do a Baby Steps Millionaire theme hour. And so from time to time, we like to hear from real life millionaires, not the ones you see on Instagram and private jets. Those are not millionaires. They're either faking it or they're billionaires. Real life people like you and me. There's only two, John.
The Ramsey Show
Be the Tortoise Not the Hare
There's only two types. The one that rent it by the hour and the people who own it. There you go. And so we're going to hear from Kirk in Las Vegas and see how he did it. How did he actually create a million-dollar net worth? Kirk, what's going on, my man? How you doing? I'm doing great. How are you doing, guys? Great, great. So tell us your story. How old are you, and what is your net worth?
The Ramsey Show
Be the Tortoise Not the Hare
All right. Love it. And did you get a degree, I assume?
The Ramsey Show
Be the Tortoise Not the Hare
So that's a solid mix. And so the majority here, you said how much in the IRA and 401k total?
The Ramsey Show
Be the Tortoise Not the Hare
Okay. So that makes up the majority. And then the next, you know, biggest chunk would be real estate. Correct. Way to go.
The Ramsey Show
Be the Tortoise Not the Hare
Okay. So that proves our point. A lot of people think, well, a lot of these people inherited their money, so it's easy for Kirk to say. But you already did the hard work, and then you got a pile of money from Mom's Legacy. Correct. Amazing. Okay, so what do you attribute this to?
The Ramsey Show
Be the Tortoise Not the Hare
Okay. So when did you sort of get your finances together? I mean, you're obviously in the accounting world. You understand basic mathematics. If I put money away, I'll have some. If I spend it all on stupid crap and pay interest, I'll lose it. So did you get this early on?
The Ramsey Show
Be the Tortoise Not the Hare
And you've maintained them well? You kind of drive them until the wheels fall off, and then you'll buy something else with cash?
The Ramsey Show
Be the Tortoise Not the Hare
You know you're driving like a ticking time bomb, Kirk.
The Ramsey Show
Be the Tortoise Not the Hare
How long have you been married? I guess it would be 16 years. Amazing. Can I ask how your, I guess, financial freedom, your wealth, how has that affected your marriage? Has there been less money fights over those 16 years? What do you guys fight about now?
The Ramsey Show
Be the Tortoise Not the Hare
Are you tight-fisted going, no, we got to just, why would we do that? You're the frugal one and she's sort of trying to get you to let go?
The Ramsey Show
Be the Tortoise Not the Hare
Because you guys will have, by the time you're at retirement age, 10 years from now, your net worth will be, my guess is probably closer to 6 million. And that's if you do nothing else.
The Ramsey Show
Be the Tortoise Not the Hare
Congratulations, brother. So just talk to the 23-year-old out there who might be listening going, I'm going to either listen to this TikTok I found on how to get rich quick or Kirk. What advice would you give that 23-year-old?
The Ramsey Show
Be the Tortoise Not the Hare
Just delayed gratification. Be a crockpot in a world full of microwaves. You're an inspiration, Kirk.
The Ramsey Show
Be the Tortoise Not the Hare
I'm sure it's Googleable. George P. Camel. I'd like the mystique. You know? As public figures, we've got to have a little mystique, John. I regret that entire sentence. I don't have any mystique. Do I? No.
The Ramsey Show
Be the Tortoise Not the Hare
Are you talking about all of your money? Do you have an actual savings account? Do you have money in the bank?
The Ramsey Show
Be the Tortoise Not the Hare
Does your social media profile include the word Bitcoin? No. Okay. No, you're not. I just want to know how far on the spectrum you are. Okay. Bitcoin bro 27. That would be awesome, Anthony. You've done really well. And the truth is when you put your money into any single item, a single stock, a single cryptocurrency, you're putting yourself at risk.
The Ramsey Show
Be the Tortoise Not the Hare
And it may not feel that way because for the last, you know, the Bitcoin bros will tell you it's just been going to the moon forever. We don't know what the future holds. We just saw, I mean, chat GPT this week. China comes out with deep seek and all of a sudden it tanks the stock market because everyone's freaking out.
The Ramsey Show
Be the Tortoise Not the Hare
And so all it takes is one thing to happen in the news or everyone starting to dump their crypto for you to lose big. And so I would, if you were in Vegas right now, I'd be like, dude, cash out and go home. And so that's what I'm telling you to do. Cash out, pay off your debt, get an actual emergency fund in place. And then you can still invest. I can't call it investing.
The Ramsey Show
Be the Tortoise Not the Hare
You can still speculate in crypto and put some money there. But I wouldn't do it until after you've taken some prerequisite steps, which is pay off your debt, get an emergency fund in place and liquid cash in a high yield savings account. Then begin investing 15 percent of your income into retirement accounts. Then any money beyond that, some fun money, you can put it into Bitcoin.
The Ramsey Show
Be the Tortoise Not the Hare
And here's the deal. Don't think you're going to do that. I'm just telling you I'm going to sleep well at night knowing I told you that.
The Ramsey Show
Be the Tortoise Not the Hare
But you were zoomed into a very particular spot in history, and I'm trying to help you zoom out and look at the big picture and go, it may continue to go up, or like we saw in 2022, Bitcoin took a 50% hit. even the housing crash of 2008 didn't take a 50% hit in the stock market. And so it's way more volatile than the traditional stock market.
The Ramsey Show
Be the Tortoise Not the Hare
You can handle that risk right now as a young single guy, but we're telling you as married guys who have seen a thing or two, that it's not a good long-term play.
The Ramsey Show
Go Slow: Never Invest in What You Don’t Understand
Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
The Ramsey Show
Go Slow: Never Invest in What You Don’t Understand
And that's why we recommend Delete.me. They help with that.
The Ramsey Show
Go Slow: Never Invest in What You Don’t Understand
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
The Ramsey Show
Go Slow: Never Invest in What You Don’t Understand
I love these reports. So far, get this, they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites, and saved me 77 hours of time. It's incredible.
The Ramsey Show
Go Slow: Never Invest in What You Don’t Understand
I love it. So you got to be sure to check them out. Ramsey fans get 20% off their annual plans. Just go to joindeleteme.com slash Ramsey. That comes out to less than nine bucks a month. Super affordable.
The Ramsey Show
Go Slow: Never Invest in What You Don’t Understand
I hate to admit this, but I don't always eat right. I know I need to eat more fruits and veggies, but sometimes I just have to pound some chips because they taste so good. That's why I love my Field of Greens. It helps me eat healthy when I don't have much time. And each fruit and vegetable in Field of Greens was doctor selected for a specific health benefit.
The Ramsey Show
Go Slow: Never Invest in What You Don’t Understand
Heart, lungs, kidney, metabolism, even healthy weight. And folks, I ain't getting any younger. It's super easy to mix with water. And here is the great part of it. I thought it might taste like grass, but it tastes great. And only Field of Greens makes this promise. Your doctor will notice your improved health or your money back.
The Ramsey Show
Go Slow: Never Invest in What You Don’t Understand
So go to fieldofgreens.com slash Ramsey for 20% off your first order. That's fieldofgreens.com slash Ramsey to save 20% on your first order.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Hey, George Camel here with a not-so-fun fact. Every American social security number, including our children's, has been hacked and is now on the dark web. And this is not a scare tactic. This isn't fear-mongering. It's a reality that could turn into a nightmare for a lot of people. And believe me, I've been a victim of identity theft, and I would prefer it never happen again.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Because once the bad guys have your social, it's the lifeblood for all of their activity. Think of all the places you use your social. Your banking, your employer, government offices, utilities, cell phone companies, everywhere. And once they've got it, thieves can open new accounts, drain existing ones, steal payroll, and wreak havoc all in your name. Not cool.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
And to be real, it's not a matter of if, but when. So you've got to protect yourself with Zander's ID theft protection. Zander has all the cyber tools to help, including home title monitoring, full recovery services if you do become a victim, and stolen funds protection. Not to mention, it's the best value on the market.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
They've been protecting my family for over a decade, and I trust them to protect yours, too. So get enrolled today by calling 800-356-4282 or just visit Zander.com. That's Z-A-N-D-E-R.com.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Have you gotten one of those texts recently claiming to be the USPS with some sketchy link to update your address? It's annoying and a little terrifying. And you probably think to yourself, I should do something about this. But where do you even start? Well, as your nerdy friend who does the research for you, I found the solution. They're called Delete Me.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
And here's the reason they come in the clutch. The internet is packed with data brokers, which are these shady companies whose sole purpose is to collect your personal info and sell it for a profit. Enter Delete Me. Delete Me swoops in, finds your info on these sites, and removes it on your behalf. They even send you a report with all the details.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
And so far, for me personally, they have reviewed 27,000 listings, removed my info from 240 data brokers, and saved me 66 hours in the process. I trust Delete Me to help protect my family, and I trust them to help you too. You're going to get fewer spam texts, fewer phishing emails, and fewer creepy robocalls. And Delete Me also makes a great gift for other people in your life that you care about.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Individual plans start at just $9 a month, so take an easy step to protect yourself and your loved ones today. And as a Ramsey fan, you'll get an extra 20% off any of their plans at joindeleteme.com slash Ramsey. That's joindeleteme.com slash Ramsey.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Hey guys, George Camel here. Let's be real. If I had a dollar for every time Ramsey Solutions gave away free money, I'd probably be rich enough to give out my own cash prizes. And here's another one for you. We're giving away $20,000 at the Take Control of Your Money livestream on January 23rd. I don't know about you, but I'm definitely signing up for this event.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Plus, my friends Dave Ramsey, Jade Warshaw, and Rachel Cruz will be there too. We'll be talking about how you can make real progress on your money goals. Maybe you're wanting to knock out some debt. Maybe you're ready to start saving for a house. Maybe you want to build for the future. Or maybe you just want to stop cringing every time you need to buy eggs. This live stream is for you.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
It's your time to ask us whatever you want about money. It'll be kind of like a New Year's party, money pep talk, and a live Q&A all rolled into one amazing event. Plus, if we're lucky, a little comedy on the side. And no, I will not be charging for my dad jokes. So listen, if you're ready to take back control of your money or you just want a chance to win some extra cash, join us.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Go sign up now at ramseysolutions.com slash livestream. That's ramseysolutions.com slash livestream.
The Ramsey Show
It’s Our 2024 Annual Giving Show!
She's been playing and smiling this whole time, totally ignoring mom, just being a rock star on the stage, which is how it should be.
The Ramsey Show
It’s Our 2024 Annual Giving Show!
If you're watching on the Ramsey Network app or on YouTube. Oh, cute, cute, cute.
The Ramsey Show
It’s Our 2024 Annual Giving Show!
And now an ambassador. What a cool title at four years old.
The Ramsey Show
It’s Our 2024 Annual Giving Show!
Yeah, generosity in times of good, that's fun. But generosity in times of grief and trauma, that will change you forever.
The Ramsey Show
It’s Our 2024 Annual Giving Show!
And in honor of our giving show, we're going to do a giving story instead of a question of the day. So today's giving story comes from Morgan in North Carolina. An older couple came into the small bank where I worked to open a checking account. The husband mentioned he was expecting a wire of over $1 million. Immediately, my alarm bells went off.
The Ramsey Show
It’s Our 2024 Annual Giving Show!
Someone had contacted him claiming to be the executor of a cousin's estate with documents and a website to create legitimacy. When I pointed out the flaws in the documents, the customer was devastated. He had no car and had planned to get one with his newfound wealth so that he could provide for his family. Every year, I collect money and donate items in my papa's honor.
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I called a friend who has an auto repair shop and asked him for help. God was working behind the scenes and he knew someone who was selling a reliable van. The lady who owned it... lowered the price to the exact amount we had to spend. We called the couple to let them know we had a surprise for them and were heading to their home. The man and his wife broke down in tears when they saw the van.
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He had just gotten home after walking in the freezing cold to get a loaf of bread. I'll never forget squeezing the keys in his hand and saying that he would finally be able to provide for his family again. Wow.
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She turned it from grift to grace. Oh, there's the book. They're going to make a movie about it. That title's free.
The Ramsey Show
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That's a really cool story, though. That is fun. And again, you have to be able to look up and see the opportunity. When you're so focused on your own situation, your own money problems, it hurts your ability to give.
The Ramsey Show
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That's cool to think about. Put that on your bucket list of generosity.
The Ramsey Show
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Yeah, if your car doesn't work or you don't have one, a $2,000 car might as well be a $100,000 car.
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It’s Our 2024 Annual Giving Show!
Seeing a theme here. Legacy. Paying it forward. Contagious generosity. Special.
The Ramsey Show
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That's impressive. So I want to speak to the person out there who wants to give their they may, you know, go, I don't know if this is trustworthy organization. How do you get someone who has not given to go? All right, I'm going to jump into this cause. What is the target demo there? What gets them to give?
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How do you even choose when the world is your oyster? What college did you end up going to? What did you study?
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Wow. He was waiting a long time for some payback, and he got the idea. Talking to Grandma, I went, I know exactly what to do. I really like this guy.
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Yeah, now I'm wondering, do they need college at this point? There's some budding entrepreneurs right there.
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Are you determined to get out of debt and build wealth this new year? Then don't leave out an important step, which is having the right insurance. Don't make the mistake of thinking you can get by with minimal coverage or no coverage at all.
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The Ramsey Show
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And wishing you the best with the rest of college. And forgive my ignorance, I didn't know Xander did that. So that's a really cool program they have.
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You'll have to ask Jeff Zander about that next time you guys hang out.
The Ramsey Show
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Well, it's cool to see the other side, because when you're Zander, you give out the scholarship. You may not hear from them, so it's cool to see the progress and momentum and how she's changed her life because of this, going to school debt-free.
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Well, and that checked off about four boxes on the Ramsey plan. We're talking about, number one, generosity. The kids are going to college debt-free, and they started and launched this debt-free business and grew it. That's entree leadership right there. I mean, you got your start mowing lawns way back in the day, didn't you?
The Ramsey Show
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I'm proud of you. Listen to this story. What a great reminder. You don't have to give a lot personally, but Danielle was bold and said, I'm going to start this thing, and the community rallied around it and made it happen.
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I wouldn't call it a feature, but there it is. That's fun.
The Ramsey Show
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Can you imagine if someone did that for you? You might have a lawn care business right now.
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If you just start listening and start looking, you will find so many opportunities to give. It's amazing.
The Ramsey Show
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Well, and just the surprise element of kindness is just so shocking in today's culture that it really does change a person's day, their week, maybe even their year.
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Oh yeah, this one's from Carl in Knoxville, Tennessee. Here's what he had to say. A week or so later, we found a better pair of tickets for $1,100. We decided to purchase the second set and turn around and sell the first to recoup our money. To make a long story short, we tried for over a month and could not sell our tickets.
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We drove to Knoxville the night before the concert, and the day of the concert, we decided to eat at one of our favorite restaurants in Knoxville, and it was about three or four hours before showtime, and we still had the two extra tickets. Whoa. Whoa.
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There was no entitlement here. The kids worked hard.
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It took us about an hour working with her phone and hours to transfer the tickets on Ticketmaster, but we did get it taken care of and even gave her a big tip on top of that to cover her parking. The concert was fantastic, but my wife and I enjoyed blessing her and her husband even more than the concert itself. It was the first concert she had ever been to.
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She texted us after the concert and told us she and her husband had a wonderful time and thanked us again. Best $1,200 my wife and I have ever spent.
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That's the truth. And I know, Dave, you're a big Eagles fan. And, you know, being a Knoxville fan... It's all there. This is a very Dave story. If I had to make one up.
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If I said chat GPT, give me a generosity story that Dave will love. It's going to involve the Eagles and Knoxville.
The Ramsey Show
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Yeah, these kids are not going to be the Grinch when they grow up. They're going to remember this for the rest of their life.
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And you know their kids are going to go to college debt-free. And so the ripple effect of this thing is massive.
The Ramsey Show
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Well, I was just thinking I should have brought some tissues because usually these stories make my eyes leak.
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And I bet the people that aren't giving would like to give more, and that's the power of the budget is you've got to find the margin to be able to give, to be able to look up and see those opportunities. And so that's the best part about it. That's why we put the giving line item first, not every dollar budget.
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So, Christy, my first question is why are you paying 40% in taxes and deductions? Because you told me you're making $19 an hour. It's about $40,000 a year, but you're only taking home $24,000 a year. Are you investing right now?
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So when you said take-home pay, this was after all of those other expenses were paid? Your debt payment for the phone? Okay, got it. That makes a lot more sense. Yep. So you actually have more margin than you think. But you're saying, after all that's paid, I have $100 extra I could throw at the debt. It's not going to make a dent. And that's where Ken's advice comes into play.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Think about it this way. For every extra dollar an hour you can go make, that's $2,000 a year. At 40 hours a week. So if you can go make 25 an hour, you're going to get a $10,000 raise. Can you get out of debt a little easier if you had an extra 10 grand a year laying around?
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Draw a Line in the Sand and Say “I’m Done!”
Yeah, you might do your 40 hours and then do another 10 hours doing this. I don't know your family life, and I want to respect that, but this is going to be some sacrifice and hustle.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
But to Ken's point, if we can get you out of the student loan debt, free up a payment, get you an emergency fund so you never have to go into debt again, now we have a foundation to where we can step forward from a place of strength into that next piece of education. And then once you're a nurse, goodness gracious, sky's the limit. Yeah, and now you're going to cash flow the master's degree.
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Draw a Line in the Sand and Say “I’m Done!”
That's your next goal. So car and house, love that for you. That's going to have to be on the back burner. Down the line. I wish we could do it all at once, Christy.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Then let's pause everything and stack up money for this car, and then we'll push play on the debt snowball. This is The Ramsey Show.
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Draw a Line in the Sand and Say “I’m Done!”
Welcome back to The Ramsey Show. I'm Ramsey personality, George Campbell, joined by best-selling author, Ken Coleman.
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Draw a Line in the Sand and Say “I’m Done!”
We are here, Ken. We're live. We're doing it. Call us up, 888-825-5225, and you'll be blessed to talk to Ken today.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Well, in a perfect world, if Dave was on air, he'd say, well, I wouldn't want you going back into debt. But also, it's not a sin to revert back to baby step six for a few years and knock out the mortgage. And so as long as you're doing it, you know, 15-year fixed rate, the payment's no more than a quarter of your take-home pay.
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Draw a Line in the Sand and Say “I’m Done!”
And with all the 100% equity you have in the house, roll that into the next one plus any savings and try to minimize the mortgage and then knock it out quickly. So what are we talking? What would it take for you guys to upgrade to a home that's like, all right, we got room for all eight of us with room to spare?
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Draw a Line in the Sand and Say “I’m Done!”
But do you need five bedrooms, six bedrooms? No. Well, you got multiple boys.
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Draw a Line in the Sand and Say “I’m Done!”
Oh, yeah. But I think you're still going, all right, for the house that we would want, what's your current house worth?
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Draw a Line in the Sand and Say “I’m Done!”
And let's say the next house was 450, right? And let's say you want to do that. How long do you have it? Is this a year from now? What's the urgency?
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Draw a Line in the Sand and Say “I’m Done!”
Live from Ramsey Network, it's The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by my good friend, Mr. Ken Coleman, and we're here to serve you in whatever's going on in your life. Maybe it's the job that you want to quit. Maybe it's that side hustle thing that you want to go do.
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Draw a Line in the Sand and Say “I’m Done!”
God bless the Catholics. There we go. Whoa. I'm kidding. I'm kidding. Wow. Thank you, Grant, for that. You just dropped Catholicism on him. I just thought maybe, you know, they're like, let's have more babies. More and more. But I'm happy for you guys. He's living his best life.
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Draw a Line in the Sand and Say “I’m Done!”
Ken will give you advice off-air for that one.
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Draw a Line in the Sand and Say “I’m Done!”
Thank you for that. All right, Grant. He's not willing to give it up. Let's talk facts.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
You're in Baby Step 7. Do you guys have a bunch of money in savings outside of your emergency fund?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
How much could you save up in 12 months for, you know, as a kind of a down payment plus your equity?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
So you could save up, you're saying 15 grand in the next 12 months?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay. So just set a goal and you're married. You have a wife. I am. Okay.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
You never know. Thought we had covered that earlier. But I would set a goal with her and say, hey, here's what we're wanting to do. We want to upgrade about a year from now. Here's how much I think we can save. We're going to take all of our equity plus the savings and throw it at the next one. And then there likely will be a gap of, let's say, $50,000 to $100,000.
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Draw a Line in the Sand and Say “I’m Done!”
And here's how we're going to tackle that. Mm-hmm. We're going to attack that for two years or three years, whatever it is. Just set a goal and don't let this linger and don't do a 30-year with as little payment as possible. Get aggressive and get rid of it and get back to baby step seven in no time.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
But you have Ken and I's blessing that you're not, you know, it's not going against the Ramsey plan to get another mortgage and to be temporarily in baby step six. You guys have done such a great job. You sound like you're a young family. You've got a 10-month-old. How old are you two? Yeah, so I'm 36. Amazing.
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Draw a Line in the Sand and Say “I’m Done!”
And so if we say, hey, by 40, we're going to be debt-free again, back in Baby Step 7, the house will appreciate. And so I would go down that path. That's a lot of kids to bunk in an 1,800-square-foot home.
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Draw a Line in the Sand and Say “I’m Done!”
Good for you, man. That's great. So what's your question?
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Draw a Line in the Sand and Say “I’m Done!”
Bro, there's the answer. Without hurting the revenue for the business?
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Draw a Line in the Sand and Say “I’m Done!”
You could. I don't think it's going to be that much of a game-changer. I mean, and if you did that in a Roth IRA, you wouldn't be able to get a deduction on your taxes because you've already paid taxes. It's going to grow tax deferred and you can withdraw it tax free and all that. So I don't think it's worth doing it for the tax deduction.
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Draw a Line in the Sand and Say “I’m Done!”
I would do it because of where you're at in the baby steps, which is if you're debt free with an emergency fund, invest 15% of your income. And because you don't have a traditional retirement plan, the Roth IRA would be a great place to do that.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
And I'm saying if I were you, I'd do Roth side. I wouldn't do it for the taxes. I'd pay whatever taxes are owed. And I'd rather be tax free. At your age, man, that's all going to grow tax free till retirement. So that's what I would do personally. But it's a great point. You can still max out your Roth IRA for 2024, people, until tax day. So get to it. This is The Ramsey Show.
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Yeah. To your point, Ken, the initial number is less important to me. It's more about how quality is the leadership at this company? What does a growth track look like in the role that I'm in? That's what I'm more interested in versus what am I making day one when I just got my license? Right. And she knows these folks.
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Draw a Line in the Sand and Say “I’m Done!”
Yeah. But I think having a range in your mind is good. It's not going to be $30,000. It's not going to be $300,000. So having a range is good. I wouldn't plant on one specific number. And if it's a dollar less, I'm going to leave. That feels unhealthy.
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Draw a Line in the Sand and Say “I’m Done!”
All right. Let's go out to the phones. Thomas is in Sacramento up next. What's going on, Thomas?
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Draw a Line in the Sand and Say “I’m Done!”
Now, you said you were using it for business expenses. So your business wasn't profitable and you were artificially propping it up with debt?
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Draw a Line in the Sand and Say “I’m Done!”
Um, I think we just found our answer, man. There's the answer. I think this baby Trump's having an investment property. Are you guys going to be financially okay? Losing the rental income?
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Draw a Line in the Sand and Say “I’m Done!”
And is there any income that will still come in?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Was it profitable now? Where does it stand?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Just to not be a long-distance landlord and be done with it. So... We have one thing solved. Sell it, take all the profits, and use it to fund this surrogacy. You've already got $40,000 in the bank.
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Draw a Line in the Sand and Say “I’m Done!”
I mean, I take Zillow with a grain of salt. It could be way more than that.
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Draw a Line in the Sand and Say “I’m Done!”
Which on top of your $40,000 is more than enough to cover this.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Yeah, I think that'll give you a lot of peace during this chaotic time is just control what you can control. Control your spending, control your income. And we're wishing you guys the best with the surrogacy. And I mean, what a blessing to have this house that we can just sell to fix this problem. You know, it's a beautiful problem to have.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
So and I again, I think this baby trumps the investment property, especially when you're essentially losing money on the deal. that baby will trump it all. So wishing you guys the best with that. Thank you so much for the call. That puts this hour of The Ramsey Show in the books.
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Draw a Line in the Sand and Say “I’m Done!”
Thank you to my co-host, Ken Coleman, everyone in the booth keeping the show afloat, and you, America, will be back before you know it.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay. So how do we get this business to where you can pay yourself 60? What must be true?
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Draw a Line in the Sand and Say “I’m Done!”
From Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by Ken Coleman, and the number to call is 888-825-5225. Ken is the man. If you need help getting that income up, he's the man when it comes to getting your income up. We say your income is your greatest wealth building tool.
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Draw a Line in the Sand and Say “I’m Done!”
A lot of people are going, I got to make more. Ken is so good at guiding you through, coaching you through. How do you make more for your current state in the short term and in the long term? And I'll be alongside to answer all of your money questions and whatever else is on your mind.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay. And you're wondering, hey, if I cash this out, I'll get $96,000 that I could invest minus some surrender fees?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay. $78,000 that you can do what you want with. Or you go, I'm just going to keep paying this monthly premium and I'll have $150,000 death benefit, the face value of the policy.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Do you have $10 million in the bank? What's the nest egg?
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Draw a Line in the Sand and Say “I’m Done!”
So you're self-insured. You don't need life insurance.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
How many hours are you working right now in the business?
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Draw a Line in the Sand and Say “I’m Done!”
You're right. Okay. So when you think about the purpose of life insurance, which, by the way, we only recommend term life insurance instead of these whole life policies because of how expensive they are and because of a whole host of other issues, the goal is to replace your income if something should happen to you so that your loved ones won't have to grieve financially.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
And so are there people in your life who rely on your income today? No. Okay. Okay. Just my wife and I. And on top of that, you're self-insured. If something happened, she's got $3.7 million sitting there, right? Correct. So the $150,000, that's cute compared to the nest egg you've been able to build up. And so that's the point and the goal of having that term life for 15 or 25 years.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Over that time, you follow the baby steps, you pay off your house, you've been investing consistently for decades, and here you are with this policy. So if I was in your shoes, just because it would pain me to keep making this payment... and this crappy product, I would be done with it. I'd take my 78, invest it, go on vacation, do what you want with it, but I wouldn't continue paying it.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Now, if you were destitute financially, you had no nest egg, this was all the money to your name, and you were in ailing health, I'd go, okay, I'd probably just keep paying the policy because it's going to be more helpful than it is harmful. But man, you've done such a great job regardless of this crappy product that it's impressive.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
There's a 25-year-old listening who says, I'd like to have $3.8 million. What do you tell that person? What was the key to your success?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
That simple. Live on less than you make, get rid of your debt.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Fund the kids or grandkids college fund. Go on a nice vacation.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Maximize that money. That's living like no one else. All right, Aaron is in Youngstown, Ohio. Up next, what's going on, Aaron?
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Draw a Line in the Sand and Say “I’m Done!”
So are you investing 15% of your gross income regardless of match?
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Draw a Line in the Sand and Say “I’m Done!”
Okay. So you've got a Roth IRA that you're contributing to?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Do they have a Roth 401k option through your employer?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay. I would check in on that, but here's the strategy. Match beats Roth beats traditional. So you're investing, you got the match, it's 100% return. Next, do all the Roth you can. For you, that might just be the Roth IRA. And if you still have money beyond that, in that 15%, go back to your traditional options in the 401k. And as far as diversifying, what are you invested in right now?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
What funds did you choose inside of your retirement plan?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
I would avoid single stocks because of the risk and volatility. I would stick to those funds that you mentioned, mutual funds, index funds. And there's four types you want to diversify across. And it basically is like a large cap, mid cap, small cap, and international. Because that'll diversify even amongst those funds.
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Draw a Line in the Sand and Say “I’m Done!”
And to help you do a deep dive on this, jump on to ramseysolutions.com slash guide. We have a free investing guide where we walk through exactly how to choose those funds. Appreciate that.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
And join us for the Investing Essentials live stream. The ticket is on me, Aaron. So hang on the line. It's on us today. Thank you so much for the call. He may have planted that to get a free ticket. I don't know. I'd like that move. Appreciate that. Smart move. This is The Ramsey Show.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
This is The Ramsey Show. I'm George Campbell, joined by Ken Coleman. The number to call is 888-825-5225. Andrew's up next in Pittsburgh. How can we help, Andrew?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay. Are you like a financial power of attorney? Can you make financial decisions on their behalf?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay. And you and her are working in tandem to figure this out?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay. All right, so as you dug into the numbers, what do you mean parts of it may not be liquid?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Was this an advisor? Was this the one who got them into all this?
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Draw a Line in the Sand and Say “I’m Done!”
They've been selling them crappy products for a long time.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
All I heard was ka-ching, ka-ching, ka-ching, more commission for me, more commission for me. Here's a whole life. Here's an annuity. These are some of the most complicated and expensive products that your parents honestly didn't need with this level of wealth.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Neither here nor there. But here's what I would do is figure out which of these has the least impact tax-wise. So think through some of that tax strategy because the traditional IRAs, they haven't paid taxes on the funds. So if you just withdrew $250, no, you're going to have to pay taxes on that as they file their taxes. So I would sell whatever else, like the gold.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Again, you're going to have taxes probably with anything that's not just straight liquid cash in a checking account. The cash value on the whole life, that's $31,000 worth of cash value.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
I might get rid of that before I dip into the retirement accounts. You're going to need to dip into the retirement accounts anyways with a project this big. Right. And you guys need them living on the same property with you?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay. But you're still thinking 250 grand is what this might cost?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay. So you've done your homework. It sounds like this is not a wet finger in the air.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
So if that's the case, I'm going to go strategically through a prioritized list of what I would liquidate first. And I would honestly get a second opinion. And if you want one, you can jump on ramsaysolutions.com and click on Trusted Pros. And you'll see a network of investment pros that we trust to help you out in this situation. And they're not going to sell you garbage products.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Yeah, TaxPro as well would really help going, here's what's going to have the minimal tax impact based on what you sold, what the cost basis was, what the capital gains tax, all the NerdTron stuff as you dig into this. But it sounds like your sister's going to have to be very involved too.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Because she's making all these moves happen on your parents' behalf. But the good news is the money's there. It's not going to decimate. You're probably talking about liquidating a quarter of their nest egg to make this happen. And then what's the ongoing cost to take care of them? They need 24-hour private care?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Maybe it's how do I move up in my career. Maybe it's the job that you want to quit. How do I get out of debt? We're here to answer those questions and help you take the right next step. The number to call is 888-825-5225. Dante is going to kick us off in Chicago. What's going on, Dante?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
And then going forward, we're going to cut up these cards. We're not going to put a dime on credit for this business or in our personal life. Can you draw a line in the sand today and say, I'm done?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
So you're having to fight that and go, no, this is something. This is exactly why we got long-term care insurance, so that if it got to this point, they could have care. That was covered.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
I would get together with all three of them and go, okay, here's where we're going to lay this all out. Here's how we're going to fund this project. Here's what the ongoing care is going to look like. Here's the priority in which we'll spend this money. And that way everyone's on the same page. Because this is the kind of stuff that will destroy relationships. That's right.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
When there's surprises, things weren't communicated, I expected this, I was supposed to get this, and I want to at least savor these relationships.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
I still remember 10 years ago, 23 years old, I was frustrated, anxious, and flat broke. I had followed all the ways that toxic money culture had led me down from well-meaning parents and misguided guidance counselors, and it left me with a pile of debt. But I'm telling you, it doesn't have to stay that way. Over a decade, I went from broke to millionaire.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
And I break it all down in my new book, Breaking Free from Broke. I'm going to show you just how toxic this money system is and how you can break free from credit scores and credit cards and student loans and auto loans and investing traps and finally live a life that you're not exhausted by. A life with more margin, more options, and more peace.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
If you want to check out the book, go to ramsaysolutions.com slash store to get your copy of Breaking Free from Broke. That's ramsaysolutions.com slash store. Welcome back to The Ramsey Show. I'm George Campbell, joined by Ken Coleman. Hey, if you're ready to get your finances in order once and for all in 2025, you've got to join us for our free live stream. It's on January the 23rd.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Take control of your money. It's hosted by Dave Ramsey and Jade Warshaw. And you're going to learn how to stop living paycheck to paycheck, how to free up more breathing room so you can pay off debt fast, finally get ahead with money. Plus, Rachel Cruz and I will join at the end for a Q&A where you can ask your money questions live. And if that didn't sell you... Here we go.
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Draw a Line in the Sand and Say “I’m Done!”
When you sign up, you'll be entered to win into our cash giveaway. Five people will win four grand each.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
And again, this is a free live stream. So go sign up, ramsaysolutions.com slash live stream, or click the link in the description if you're listening on podcast or YouTube. You know, I was thinking about that when you said that. That means four people or five people? There will be five people who win four grand each. So 20 grand total will be given away.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Worst case, you get information and motivation to help you get out of that. Best case, you might get a little cash to speed it up. I'll take the odds on that one. All right. Judy is up next in Tampa. How can we help, Judy?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Yeah, we say, you know, you can't save your way to wealth.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay. He's been two months sober. That's good. Yeah. Okay.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
I get it, and you're broke. But he's saying it puts you in a precarious situation financially because you don't have any legal financial protections. So you need to treat your finances... No, I do own a home.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
And in your personal life and in your business life, here's the number you want to focus on is margin. It's the gap between what you're taking in and what's going out. So in your personal life today, what are your monthly expenses?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
So what happens if you guys split and you wanted to sell it?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
I'm just wondering what's it like when you ask for a raise from your boyfriend? That's got to be awkward.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
You can't save and invest until you make more. So here's the deal. There's a foundational savings you need before you ever put a dime into investments, and that's an emergency fund. So you need three to six months of expenses. She doesn't have any expenses. Let's pretend like you do have expenses. So what would it be?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Well, you just told me you're making $40,000 a year, which means you're in the hole by $8,000.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay. That's not enough for you to retire on. So our game plan is, hey, when and if Judy can't work anymore, how is she going to survive if sugar daddy's not in the picture?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
See? Do you see how this gets messy and complicated? And you say, no, the house is in my name.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Get your own savings in place, then you can begin investing, and all of that is going to take more income because you don't have a ton to throw at any of this right now.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Yeah, I would say $10,000 minimum, and then you can begin investing. And we'll send you our investing guide. Go to ramsaysolutions.com slash guide. And we have a whole guide showing you the right way to invest, what to invest in. You don't need to be risky. I got that.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
So here's one lesson. We got to go, what is causing us to spend $4,000 a month? If that's cost of living, we need to find a different place to live. We need to get a roommate. If it's eating out, we need to cut off that whole piece and go, we're going to meal prep. It's going to be rice and beans for the next few months, maybe a year or two. So you're going to do an audit.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Join us March 4th and 5th, Judy. You can watch with your boyfriend. I don't know if he's going to like it, but he can be there and hang out. But he can make that voice the whole time. It'll be great. Best impression I've heard today. This is The Ramsey Show. Okay, picture this.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
You sit down to do your taxes, but instead of stressing out, you're actually ahead of the game and filing with an affordable software that makes your computer shoot confetti when you're done. Okay, not that last part. But Ramsey Smart Tax does make filing easy and doesn't make your bank account cry.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Ramsey Smart Tax is a 100% accurate software that's honest about its pricing and is backed by a company who's been in the business for over 50 years. So go to ramseysolutions.com slash smart tax to take advantage of early bird pricing and stress-free filing. That's RamseySolutions.com slash SmartTax. Welcome back to The Ramsey Show. The moment you've all been waiting for. It's here, guys. What is?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
The Ramsey Show Annual Listener Survey is now live. Ken can stop texting me every day wondering when it's going to drop. When's it going to drop?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
No, really, this is our biggest survey of the year. And we want to know your favorite parts of the show, what you like, what you don't, what you want to hear more about, whatever it is. We want to hear from you. And we actually, our team pours through this data and uses it to craft what happens on this show. And to tell us what to stop doing. Exactly. They go, Ken, don't do that.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
They don't like it. It's usually a long list. So there you go. Enough with the YouTube comments. Let us know in the survey and we'll take it to heart.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Two ways to participate. You can just text the word survey to the number 33-789 or go to ramsaysolutions.com slash survey. And if you're listening on podcast or YouTube. Show notes. Just go to the show notes. It's Ken's favorite place to hang out.
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Draw a Line in the Sand and Say “I’m Done!”
I could get through a record amount of calls. I'm impressed. And here's the deal. If you sign up for this survey and you actually complete it, you'll be entered to win a $500 gift card. As a little thank you. Enter to win. You're not guaranteed, but there's a chance. Nothing says I appreciate you more than cash. Exactly.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
I don't know where the gift card's to, but I'm excited to find out. Where would you like a gift card to, George?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
I'm going to help you with this by giving you our budgeting app called EveryDollar, and you're going to list out your income for the month, list out every single expense, and then see where you actually stand. And if you don't like what you see, change it. I got to spend less. I got to make more. Because here's the math on this.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
My practical says Amazon or Costco. Love it. Because Costco, that one $500 gift card, that's one trip to Costco if you're lucky.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
But I would be barking up that tree to see what that's going to cost. Well, the question is, you put $4,000 into this thing. At that point, what is it worth?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
So it's worth $4,000 right now, but if you did this repair and put $4,000 into it, what would it be worth?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay. That changes my answer, I guess. And how much money do you have saved right now?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay, we're not going to touch retirement. So you're down to, in liquid cash, you got $600?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay, so you don't even have the money to do this repair.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
And your solution is to go finance a $25,000 car?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Instead of filing bankruptcy, what if you made a goal to say, I'm going to be debt-free in two years? I'm going to sell 20 grand worth of equipment. That'll get me out, right? Now we're down to 48 grand in debt.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay, so let's play the scenario out. Let's say they cover it, and they cover all $4,000 of the repair. Now you have a drivable $4,000 car?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Okay, and we'll drive that while continuing to save up.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
How long have you been living paycheck to paycheck, Raymond?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
You want to try another way? Would you be open to that?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
You're calling me asking if you can finance a $20,000 car. I don't know what system you've found out.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
If we have to make the repair to get by, we make it happen. We pause all the baby steps. We save up aggressively, sell anything we can to avoid debt. So that would be the game plan for you. And the question is, how can I build a habit where you learn how to save up $500 or $1,000 a month to pay cash for things versus turning to payments to solve problems? Do you see the difference? I hear you.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Right. So that's where, if they can't fix it and you need to get rid of this, if it's undriveable, then we need to go, we'll sell it for what we can, plus use any savings we can to buy a car from Facebook Marketplace. And whatever car we can afford in cash, that's what we drive for the time being. And the goal is that you're not doing this for very long. It might be five months.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
It might be a year. So what is your income?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Well, you're going to need to settle eventually, right, with the creditors?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Well... You get married, kick mom out, but she's still on the mortgage and has to pay?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
So they're going to be coming for you. I'd be proactive and saying, hey, I'm trying to figure out a way to get this paid off. It's going to go into your debt snowball. And maybe a year from now, they're willing to settle for, you know, 30 grand instead of 50. We don't know. It may not be new enough. You may need to pay the full 50. But this is not going to go away.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
I think I'm the only person thinking about Raymond's future. I am. I'm just enjoying your version of it.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
So I'm with you. Anyways, I'm kind of role-playing here, Raymond, to go, we've got to make different decisions. This house was a mistake. I'm not telling you you need to go sell it tomorrow, but this is a glaring problem in your life as you try to get out of this paycheck-to-paycheck cycle. And this car is one symptom. This is one Jenga piece in this mess.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Can you make more money? What are you doing full-time right now?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
I'd be working a lot if I were you. And my car's in the shop and I'm desperate for a better car. Dude, I'd be working as much as I can selling anything in that house that's not tied down to get out of the situation. You have no other debt other than the mortgage?
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
I mean, why does the 13-year-old need to be watched? I think we might need to figure out a child care situation where you both can work at once. Man, that's messy. Hang on the line. I'm going to send you a copy of my book, Breaking Free from Broke. And hey, if you want to catch the rest of The Ramsey Show, we got more where that came from. Head over to the Ramsey Network app.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Just search that in your app store or click the link in the show notes. If you're on radio, stick around. The show will continue.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
This is going to take you busting your butt two grand a month toward the debt. You're debt free in two years. That's the math on it if you do what Ken and I said. So bankruptcy is not the only option. You've got a ways to go. Call us back if you need help. Hang on the line. We'll send you every dollar. This is The Ramsey Show.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Welcome back to The Ramsey Show. Exciting day around here because we are launching our Investing Essentials event. It's a two-night virtual event hosted by Dave Ramsey and yours truly, George Camel. We know investing can be overwhelming and confusing. It's not something that you can pick up in a 60-second social media post.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
So at this virtual event, Dave Ramsey and I will walk you through how to maximize your retirement plans, how to pick mutual funds, how to invest with confidence. And it's the only place to get Dave's personal playbook on real estate investing. And Dave will explain how he made hundreds of millions in property investing debt free. And he's going to go, this is nerdville. All right.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
We're going to be, we've got charts and graphs and formulas. It's going to blow your mind. Stuff we have never covered here on the show. So join us. Investing Essentials. It's happening virtually March 4th and 5th. And you can watch from the comfort of your own home, wherever you are. Tickets start at 199 bucks.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Get yours today at ramsaysolutions.com slash events, or click the link in the show notes if you're on podcast or YouTube. What's a recommended snack for that? Since people can watch that in the comfort of their own home.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
the content we went we went deep into the cookie jar at the event and so i'm feeling it's going to be a cookie kind of evening yeah you know kind of a comfort food yeah okay that's in march you're kind of just like get me to spring already yeah so yeah get your favorite snack and uh post up and watch for two you are famously gluten-free i think america would love to know what is your favorite go-to gluten-free cookie
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
Oh, well, you know, you got Tate's. That's a standard if you like a crispy cookie. Okay. Chips Ahoy did come out with one recently that hits.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
I love it. Well, let's be men of the people and let's go out to Christy and see if we can be of service in Grand Junction, Colorado. What's going on, Christy? Hey. Hey.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
None of that. And here's why. Number one, you're not actually going to change any of the habits that got you here. So we got to dig into that part of what caused me to go $68,000 into debt with money I don't have. And the other piece is it will destroy your financial life for the foreseeable future.
The Ramsey Show
Draw a Line in the Sand and Say “I’m Done!”
So what I'd rather see you do is go, what do I need to do with my income and my spending in order to climb out of this thing in the next 18 to 24 months? If that was the only option, then you'd start getting creative. You'd go, all right, what can I do with my work? You know, what are you making right now, Dante?
The Ramsey Show
This Is How You Take Control of Your Own Life
I think you need to talk to the landlord and explain what's going on and see how quickly you can get out of this lease. Because it's going to continue to bleed money for the foreseeable future.
The Ramsey Show
This Is How You Take Control of Your Own Life
You need to sell all the assets you can on the equipment, get out of the lease with as little damage as possible, and then go get full-time jobs, both making six figures and clean up the debt of the failed business. Yeah.
The Ramsey Show
This Is How You Take Control of Your Own Life
Welcome back to The Ramsey Show. I'm George Campbell and joined by Dr. John Deloney. And we have a special guest for this segment on the debt-free stage. We have Jawanda. How you doing?
The Ramsey Show
This Is How You Take Control of Your Own Life
Thanks for coming to celebrate with us for a debt-free scream.
The Ramsey Show
This Is How You Take Control of Your Own Life
Can we say that? Were the playground you spent most of your days?
The Ramsey Show
This Is How You Take Control of Your Own Life
That's fantastic. I love it. Okay, how much debt did you pay off?
The Ramsey Show
This Is How You Take Control of Your Own Life
Wow. And what was your range of income during that time?
The Ramsey Show
This Is How You Take Control of Your Own Life
Very cool. And what was this $86,000 in debt?
The Ramsey Show
This Is How You Take Control of Your Own Life
Wow. And what were the student loans about? What was the degree?
The Ramsey Show
This Is How You Take Control of Your Own Life
Awesome. And you're putting it to good use now. I am. Okay. So 48 months ago, you look down and you're like, okay, I owe a car lender some money. I owe the government a bunch of money. I got the student loan over here. What made you get on this Ramsey plan and go, I'm going to clean this up fast?
The Ramsey Show
This Is How You Take Control of Your Own Life
Wow. And so you just made a decision. There was no like rock bottom thing that happened. You just decided, I'm done with this. What am I doing? I worked too hard to be this broke. Okay, hold on.
The Ramsey Show
This Is How You Take Control of Your Own Life
Okay. And then what is your sister's involvement in all of this?
The Ramsey Show
This Is How You Take Control of Your Own Life
Wow. That takes a lot of emotional maturity to put down the instant gratification and go, you know what? I'm going to make some sacrifices now so I can have the best later on. And the future is looking bright for Jawando. I'll tell you that much right now. What was the hardest part of the journey for you over those four years?
The Ramsey Show
This Is How You Take Control of Your Own Life
Was it a lot of regret and guilt and even some shame?
The Ramsey Show
This Is How You Take Control of Your Own Life
You're just trying to beat yourself up a little bit.
The Ramsey Show
This Is How You Take Control of Your Own Life
Well, here you are now. I mean, you got a lot of life ahead of you. Four years of sacrifice. Was it worth it?
The Ramsey Show
This Is How You Take Control of Your Own Life
How do you describe the feeling to someone who is where you were? They're sitting with a big pile of debt and now you're debt free. How would you say this is what it's going to feel like if you're willing to make that sacrifice?
The Ramsey Show
This Is How You Take Control of Your Own Life
You're building for your future instead of some lenders. You're done paying for the past.
The Ramsey Show
This Is How You Take Control of Your Own Life
It's amazing. We've got a parting gift for you. We've got two every dollar one-year subscriptions for you. You can use that. You can pass it on to someone else who maybe encouraged you, maybe doubted you. Give it to the haters and say, hey, this is for you. Check this out.
The Ramsey Show
This Is How You Take Control of Your Own Life
We're so proud of you. We're happy to celebrate with you. Let's get to the moment we've all been waiting for. It's Jowanda from Philadelphia. $86,613 and not a penny less. Car loan, unemployment, back taxes, city back taxes, the student loans. It's all gone in 48 months, making $70,000 to $84,000. Count it down. Let's hear a debt-free scream.
The Ramsey Show
This Is How You Take Control of Your Own Life
That was cathartic. From her chest, man. Oh, my goodness. If that doesn't light you up, doesn't put a little fire in your belly, you're not living. Check your pulse, man. Jawan does an inspiration. This is The Ramsey Show.
The Ramsey Show
This Is How You Take Control of Your Own Life
Welcome back to The Ramsey Show. George Campbell here with Dr. John Deloney. The number to call is 888-825-5225. John, I don't like to hit the news very often, but there's one thing that applies to people's personal finances, if I can connect some dots for you.
The Ramsey Show
This Is How You Take Control of Your Own Life
So much we could talk about. But this is the one. Trump's IRS layoffs have some people asking, why bother filing taxes this year? So a couple of weeks ago, the Trump administration, they started to lay off almost 7,000 IRS employees. Commerce Secretary told the media that Trump's goal is to, quote, abolish the IRS. This has a lot of people confused whether they should hold off on filing.
The Ramsey Show
This Is How You Take Control of Your Own Life
Like, is this a government shutdown? We're like, we're good. We don't have to file. Yay. Some people are taking this as an opportunity to just ignore it and not file. So whether you agree with, believe, or put stock into anything politicians say, it takes a long time for anything big to happen in the government. So layoffs do not mean a shutdown.
The Ramsey Show
This Is How You Take Control of Your Own Life
The IRS is still very much alive and well, ready to make sure you file your return. So if the IRS were being closed, Trump would let us know. You still need to file like usual. And the earlier, the better. In fact, John and I were just talking about how we got ours done. We like to get ours done as soon as possible. As soon as possible. Yeah. So that we know. Yeah.
The Ramsey Show
This Is How You Take Control of Your Own Life
I just want to know, am I going to owe? Am I going to get a refund? Let me not let it live in my head rent free until April 15th.
The Ramsey Show
This Is How You Take Control of Your Own Life
Now, here's what could happen. The layoffs will likely slow down refund processing time, support phone lines, and the longer you wait, the worse it could get if you do need help down the line. So tax collectors are still on the job. They're not going to stop just because of the layoffs. And the IRS penalty for you not paying your taxes is a half a percent of your tax bill every single month.
The Ramsey Show
This Is How You Take Control of Your Own Life
The failure to file penalty is 5% of your tax bill per month, and it spikes to 25% after five months.
The Ramsey Show
This Is How You Take Control of Your Own Life
That's it. And you won't go to jail for not paying your tax bill all at once, but you could go to jail for not filing at all. So that's the key is you got to file regardless of if you can pay it all up front or not. You can work on a payment plan. You can get that extended, but you got to file by April 15th.
The Ramsey Show
This Is How You Take Control of Your Own Life
So if you're holding off on filing because you may not be able to afford your tax bill, you have options. File as soon as possible, even if you can't pay. Pay as much as you can over the next month.
The Ramsey Show
This Is How You Take Control of Your Own Life
If paying is going to take longer than a month, you can set up that payment plan and then make adjustments like you were doing the debt snowball to cut everything in your budget so you don't have this problem again. And we tell people IRS debt goes to the very top of the debt snowball. It's the first thing you pay because they can destroy your life.
The Ramsey Show
This Is How You Take Control of Your Own Life
And we can help you make it easy. If you have a simple tax situation, you haven't had any major life changes, big investments, check out Ramsey SmartTax. This is tax software that Dave and the Ramsey team approves of. We've partnered with TaxSlayer on this. It's powered by TaxSlayer. They've been in the business for 50 years.
The Ramsey Show
This Is How You Take Control of Your Own Life
This is 100% accurate tax software, saves you up to 80% compared to the other guys. So get started, RamseySolutions.com slash SmartTax, and get it out of your life. Stop letting it live in your head rent-free.
The Ramsey Show
This Is How You Take Control of Your Own Life
Because I was able to do it on my own.
The Ramsey Show
This Is How You Take Control of Your Own Life
If it can handle the chaos of John Deloney's life- You're going to be fine, guys. That's right. You're going to be fine.
The Ramsey Show
This Is How You Take Control of Your Own Life
ramsaysolutions.com slash smart tax. All right, let's go to Renee in Akron, Ohio. What's going on, Renee?
The Ramsey Show
This Is How You Take Control of Your Own Life
Sure. So you have a mortgage right now?
The Ramsey Show
This Is How You Take Control of Your Own Life
Yes. Wow. Most people's car payments are higher than that.
The Ramsey Show
This Is How You Take Control of Your Own Life
Well, everyone's mad at you right now. You've lost all empathy with the people listening. Forget this lady.
The Ramsey Show
This Is How You Take Control of Your Own Life
I would agree. Ignoring your debt and saying, well, I'll just die with it. That's a terrible financial plan. And I can't speak to all of the ramifications of, you know, if it's an unsecured debt, they might write it off when you send a death certificate. If it's a scared debt, it's going to get paid from the estate. So any assets she has will be used to pay it off.
The Ramsey Show
This Is How You Take Control of Your Own Life
And what are your monthly bills to cover all your expenses?
The Ramsey Show
This Is How You Take Control of Your Own Life
Okay. So a six-month emergency fund, let's call it $20,000 to round up, to be conservative. Okay. That's what you'd be looking at for a six-month emergency fund. And you could take your income down and still survive. But again, you have other goals. I want you to retire with dignity when you want to and not work because you have to. I want you to be able to pay off that house one day.
The Ramsey Show
This Is How You Take Control of Your Own Life
And so cutting your income down to like a ministry income of $30,000, I don't like that plan. I'm with John on that, that I would keep your full-time job or take another job full-time that still offers flexibility for you to do this vocational ministry part-time.
The Ramsey Show
This Is How You Take Control of Your Own Life
And so I'm not sure how all that's going to shake down. Is your mother in good health? Is she able to work?
The Ramsey Show
This Is How You Take Control of Your Own Life
Love it. Hey, Renee, we're going to send you a copy of our friend Ken Coleman's book, Find the Work You're Wired to Do. It has a Get Clear Career Assessment in there. I think that's going to really help you create some clarity around this next chapter of your life. We're excited for you. This is The Ramsey Show.
The Ramsey Show
This Is How You Take Control of Your Own Life
Live from Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by the host of The Dr. John Deloney Show, Dr. John Deloney. Open phones to 888-825-5225. Jason is going to kick us off this hour in Columbus, Ohio. What's going on, Jason?
The Ramsey Show
This Is How You Take Control of Your Own Life
Okay. The good news is you can sell that truck. You might be a little underwater on it. Do you know how much it's worth if you sold it private party? Uh, I don't through KDD. I haven't looked. That's going to be part of your homework. You got to figure out exactly what it's worth if you sold it for top dollar and you owe 35. So there's going to be, there may be a gap. Let's say it's only worth 30.
The Ramsey Show
This Is How You Take Control of Your Own Life
Was she unable to pay all of her bills, including her minimum debt payments?
The Ramsey Show
This Is How You Take Control of Your Own Life
You would need to come up with the extra $5,000 either through saving it up or going to your local credit union and getting a loan for the difference and then getting enough to get a little beater car on top of that. Is this your only vehicle? Yeah. Okay. So that's the good news. Think about that. I could free you today by selling that car down to $25,000 total in debt.
The Ramsey Show
This Is How You Take Control of Your Own Life
Can you breathe a little bit easier now? A little bit. And now we go, okay, what's a plan to pay off 25 grand? Well, easy math says if I was able to throw two grand a month, this debt, it would be gone in a year, right? Yeah. And how much do you make every month? What's your take-home pay?
The Ramsey Show
This Is How You Take Control of Your Own Life
Great. So let's say 4,000. Are you doing any investing right now at all? Is there a company 401k? Is there a match or anything you're doing?
The Ramsey Show
This Is How You Take Control of Your Own Life
Okay. So you make 4k. Now we look at, okay, what are your monthly expenses? What does it take for you to live? We're not eating out. We're not doing anything exciting. No frivolous spending here. But how much do you need to live? Pay rent, bills, food, all that. Probably at the most $2,000. Jason, do you see what we just unlocked? Done.
The Ramsey Show
This Is How You Take Control of Your Own Life
I just told you if you put $2,000 a month toward your debt, you're debt-free in a year, and you said you make four, your expenses are two. That looks oddly like $2,000 left over to throw at the debt, doesn't it?
The Ramsey Show
This Is How You Take Control of Your Own Life
They'd say, dude, this isn't even a problem. You're going to be done with this debt in a year. And so then you do the debt snowball method where you pay off the smallest balance first. So what is the smallest balance you currently owe?
The Ramsey Show
This Is How You Take Control of Your Own Life
Okay. So two and a half months, you're done with that first debt. Now we're down to 20,000 and we free up that payment. What's the payment on that $5,000 debt?
The Ramsey Show
This Is How You Take Control of Your Own Life
So now you freed up another 300 to throw at your next smallest debt. Do you see the momentum that gets built with the debt snowball?
The Ramsey Show
This Is How You Take Control of Your Own Life
So I just showed you the math. And again, there's, there's two parts to this. There's all the emotion. There's a psychological aspect that John can talk to you about, but I just showed you on paper how easy this is to fix. While all your other friends said, dude, it's too bad. You just got to file bankruptcy, man. That's America. What can you do?
The Ramsey Show
This Is How You Take Control of Your Own Life
And I just showed Jason how to take control of his life with the guy in the mirror. Tell me about this job.
The Ramsey Show
This Is How You Take Control of Your Own Life
But why did your sister moving in add all of these extra expenses to where now your mom can't stay afloat?
The Ramsey Show
This Is How You Take Control of Your Own Life
Live from Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by number one bestselling author and all-around good guy, Dr. John Deloney. Taking your calls at 888-825-5225. Jump in. We'll talk about your life, your money, and try to help you take the right next step.
The Ramsey Show
This Is How You Take Control of Your Own Life
Bankruptcy is not in your future, my friend.
The Ramsey Show
This Is How You Take Control of Your Own Life
Only financial freedom and debt freedom.
The Ramsey Show
This Is How You Take Control of Your Own Life
We've worked hard. So I think you're the concerned brother watching your family drown, and you want to give them a life raft, and there's nothing you can do. Yeah. You can give them all the solutions. I don't think they want to hear it from you, do they? Have you tried to talk to them?
The Ramsey Show
This Is How You Take Control of Your Own Life
Listen, I know a lot of you would rather watch paint dry in slow motion than file your taxes. But thankfully, you don't have to dread filing when you've got Ramsey Smart Tax. It comes packed with everything you need to file online before the big deadline. That means all major federal forms and deductions are covered with no hidden fees.
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This Is How You Take Control of Your Own Life
Plus, with Ramsey Smart Tax, you can save up to 70% compared to other tax software out there. It's a no-brainer. Just go to ramseysolutions.com slash smart tax and see how simple tax filing can be. That's ramseysolutions.com slash smart tax. Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney.
The Ramsey Show
This Is How You Take Control of Your Own Life
Hey, if you're not sure if you're on track with the baby steps, take a quick quiz that can help you check your progress, and you'll get a personalized plan just for you. Simply head to the show notes of this episode, click on the link that's titled, Are You On Track With The Baby Steps?, and complete the quiz. Molly's up next in Macon, Georgia. Welcome to The Ramsey Show, Molly. How can I help?
The Ramsey Show
This Is How You Take Control of Your Own Life
You're such a sweet, wonderful person. I'm glad that you were the one gifted with this money. Can I ask where it came from? My father passed away recently. Oh my goodness. And this was part of your inheritance. Was there anything else?
The Ramsey Show
This Is How You Take Control of Your Own Life
There's a lot of ways to do this. And truthfully, this is going to be up to the matter of the heart. And so I don't want you to feel like there's a right way. And if I don't do it this way, I'm not being wise. The fact you're even asking this question tells me that you're already a generous person.
The Ramsey Show
This Is How You Take Control of Your Own Life
Yes, you can sell it all the day of transfer and essentially have no taxes.
The Ramsey Show
This Is How You Take Control of Your Own Life
but i mean you'd just be putting somebody else in that same situation like some church or educational institution or wherever you sold it yeah i don't have to convert it i i think that's over complicating it what i would do molly if i was in your shoes and i was gifted this money i would just go okay i'm going to tithe off my first fruits and so the income that i actually take home i'm going to tithe off of that and so if the stock is growing and you're not actually selling it and making money from wherever it's invested that's not going to count as income that year you see what i'm saying
The Ramsey Show
This Is How You Take Control of Your Own Life
But whenever you do sell it, I would take 10% of whatever that is and tie that.
The Ramsey Show
This Is How You Take Control of Your Own Life
Okay. And so that's what I'm talking about here. There's basically an asset here that was invested. It hasn't really turned into income for you. You're just basically converting it into a different asset. And so what I would do if I was in your shoes is just tithe 10% of your income. You can also be more generous than that. It's up to you. You could give all of this to charity today.
The Ramsey Show
This Is How You Take Control of Your Own Life
But if you're just saying, hey, what's the right way to tithe out of this from a biblical perspective? The way we see it at Ramsey is it's first fruits. It's based on what you actually took home. You know, gross or net, you know, Dave always makes jokes about that. It's up. That's really a matter of the heart.
The Ramsey Show
This Is How You Take Control of Your Own Life
If you made $100,000 gross this year, you can tithe $10,000 to your local church and even give above and beyond that to whatever organizations or causes you so choose.
The Ramsey Show
This Is How You Take Control of Your Own Life
Yeah. If you just invested this money and I'll just give you a quick example, $750,000, you never add another dollar to that. You just let it grow. How old are you, Molly? Yeah. 55. 55. Let's say even for the next 10 years, you just park that money in a good growth stock mutual fund or even in a taxable brokerage account in an index fund, and it made, let's say, 9% on average over those 10 years.
The Ramsey Show
This Is How You Take Control of Your Own Life
It would turn into 1.77 million. So 750 gained another million without you doing anything. So that's the power of compound growth at this level and this scale. And so you can really create some sizable wealth to do even more good in your community and in the world with that money. And it sounds like you're going to do that. And so I love that you're thinking about how do I manage this well?
The Ramsey Show
This Is How You Take Control of Your Own Life
Do you trust the financial advisor you're working with?
The Ramsey Show
This Is How You Take Control of Your Own Life
They're helping explain all of this to you. They're educating you. They've got the heart of a teacher.
The Ramsey Show
This Is How You Take Control of Your Own Life
You got to challenge him. Yeah, make him think outside the box. That's how I would look at it, Molly. And again, I don't think there's a wrong way to do this. The way I look at it is whatever income I took in that year, if I want to tithe the 10% off of that, that's what I'm doing. But you don't need to look at it as one giant pile and I've got to do this today.
The Ramsey Show
This Is How You Take Control of Your Own Life
You can invest it and based on what you actually convert to income, tithe off of that. Or you can do what John said and just go, you know what? I'm just going to take 85K off the top of this and that's all. I'm going to tithe out for that and the rest is going to be investments.
The Ramsey Show
This Is How You Take Control of Your Own Life
Yeah, you wouldn't even touch the principle of that money. It's all going to just be growth at that point, which is incredible. And you said you don't need this money. It sounds like you're doing really well financially yourself.
The Ramsey Show
This Is How You Take Control of Your Own Life
And guess what? I can tell you're going to do the same for your kid, and I hope they do the same for their kid, and that's generational wealth. A good man or woman leaves an inheritance to his children's children. You're an inspiration, Molly. Thank you so much for the call and trusting us with this. This is The Ramsey Show.
The Ramsey Show
This Is How You Take Control of Your Own Life
Wow. Yeah, there's no way they're even staying in this house. Is the house paid for? Are they renting?
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This Is How You Take Control of Your Own Life
I'm George Camel, joined by Dr. John Deloney. This is The Ramsey Show. Our Ramsey Show question of the day is brought to you by YRefi. With YRefi, you can take control of your defaulted private student loans with a plan that works with your monthly budget. Visit YRefi.com slash Ramsey to learn more. That's the letter Y, R-E-F-Y dot com slash Ramsey. May not be available in all states.
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This Is How You Take Control of Your Own Life
I'm not sure they can even afford that, plus insurance and taxes.
The Ramsey Show
This Is How You Take Control of Your Own Life
And then having that deep why of like, oh, that's why I'm doing this. Because when you're in the middle of it, you sort of forget like, why am I running this marathon? Why did I decide to run a marathon? Oh, that's the reason why.
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This Is How You Take Control of Your Own Life
And what I found, this works for me, John, this may not, I don't know if this works in your world, but when I find that I'm getting too like emotional about something, I try to lean toward the facts and reality. And when I get too into the math and that becomes overwhelming, I try to lean into the emotional side of here's why I'm doing this. And so that tends to help me not be out of balance
The Ramsey Show
This Is How You Take Control of Your Own Life
And car insurance and gas? I mean, I don't see a way out unless we increase the income. And I don't know how mom's going to survive with or without your sister living there. It's clearly not helping to have your sister there. But even if your sister left, I don't see a world where mom pays off $30,000 in debt making $1,500 a month barely making it.
The Ramsey Show
This Is How You Take Control of Your Own Life
on one or the other. And so it may help to go, look at the numbers, look how much debt we've paid off. Let's make the little chain and make it visual and let's make the thermometer and color it in to show the progress. Because sometimes it is hard to see the forest from the trees when you're in the middle of this.
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This Is How You Take Control of Your Own Life
It's not because you hate yourself. It's because you love yourself enough to see that version.
The Ramsey Show
This Is How You Take Control of Your Own Life
We got to update the operating system.
The Ramsey Show
This Is How You Take Control of Your Own Life
All right. Cole is in Cincinnati up next on the phone. What's going on, Cole?
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This Is How You Take Control of Your Own Life
uh no okay you get it and send it to george underscore i'm just kidding don't send him your extra money well you're right you said you're in baby steps four five six so those are done simultaneously so once you have 15 they're done in order but at the same time so 15 boom we got that going next up do you have kids uh no i'm only 20 so oh great so you're gonna leapfrog past five do you have a mortgage
The Ramsey Show
This Is How You Take Control of Your Own Life
So here's what you can do. Jump on to RamseySolutions.com and use our mortgage payoff calculator and set a goal of, hey, man, how cool would it be to have a paid for house in four years? And here's what it looks like. If we make an extra payment every month of a thousand bucks that we have, you said, left over.
The Ramsey Show
This Is How You Take Control of Your Own Life
So however much that is that you want to allocate toward the mortgage, let's allocate that money every single month and have a goal to have that home paid off in a certain amount of time.
The Ramsey Show
This Is How You Take Control of Your Own Life
And that can become extra on the mortgage. That could be, hey, you know what? I need sinking funds for a vacation. I'm going to put money away for an upgrade in a car two years from now. And so what I've done is just set up a bunch of sinking funds in my every dollar budget to where that money has a name.
The Ramsey Show
This Is How You Take Control of Your Own Life
The most dangerous thing you can do is to not have every single dollar assigned to a job in your budget. And so assign it and sit down. You have a wife.
The Ramsey Show
This Is How You Take Control of Your Own Life
And for now, it's Cole's money. And so we're going to have only goals for Cole, only Cole's budget. And so, again, I would set up sinking funds, probably looking at a ring, probably looking at cash flowing a wedding, maybe further education. Who knows? Just assign it to all of the places you want it to go. And if you don't have a place for it, I just start chunking it at the mortgage for now.
The Ramsey Show
This Is How You Take Control of Your Own Life
And then also, would it be able to put it... So after I get done with all that stuff, should I put it into like index funds or... Yeah, once you're in Baby Step 7, once you get rid of that mortgage, you can increase investing beyond 15% and you'll max out retirement first and then move on to index funds and non-retirement accounts and all that good stuff. But you're a ways away.
The Ramsey Show
This Is How You Take Control of Your Own Life
But keep dreaming, my man. This is The Ramsey Show.
The Ramsey Show
This Is How You Take Control of Your Own Life
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. If you want to see Dr. John Deloney and Dave Ramsey, they are headed out on the open road for the Money and Relationships Tour, and they're going to make this event a little different.
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This Is How You Take Control of Your Own Life
You get to choose the content before the event, and they'll talk about things like raising great kids, handling money fights the right way, making real friends in the 21st century. And they're coming to a city near you, hopefully. Louisville, April 21st. Durham, April 23rd. Atlanta, April 25th. Phoenix on May 5th. Fort Worth, May 7th. Kansas City on May 9th.
The Ramsey Show
This Is How You Take Control of Your Own Life
And these are some really cool venues and theaters you guys are hitting.
The Ramsey Show
This Is How You Take Control of Your Own Life
I can't wait. I'm scared for them. I hope they're not filming it.
The Ramsey Show
This Is How You Take Control of Your Own Life
You'll get to see it. Get your seats today. You can get tickets at ramseysolutions.com slash tour. And if you're tuning in on YouTube or podcast, click the link in the show notes. Let's get to the phones. So Hybe joins us in West Haven, Connecticut. How can we help today?
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This Is How You Take Control of Your Own Life
No, where? Are you renting an apartment? Are you living with family, friends?
The Ramsey Show
This Is How You Take Control of Your Own Life
Okay. No, $650 sounds very reasonable. What's wrong with that?
The Ramsey Show
This Is How You Take Control of Your Own Life
Can I give you a pro tip for being a new immigrant to the States? And if you can avoid this thing, you will have such a wonderful life of opportunity. And it's this. Don't fall for the American trap of debt. No country in the world makes it so easy and so attractive to take on payments like the U.S.
The Ramsey Show
This Is How You Take Control of Your Own Life
And I'm scared that you're already getting starry-eyed going, ooh, could finance a car, and they're saying they can get the payment down to $300 a month, and so I might as well get a nicer, newer car. Do you have any debt currently?
The Ramsey Show
This Is How You Take Control of Your Own Life
You said you have $4,000 saved up? Yes. Way to go. So instead of seeing that as a down payment, see it as this is my car budget right now total, right?
The Ramsey Show
This Is How You Take Control of Your Own Life
Well, let's say you could save up another $2,000 over the next three months, right? Right. Now your car budget is $6,000. And yes, absolutely 100%. Yeah. And it's not going to be the nicest. It's not going to be anything like the new cars that they show you on the lot, but you're not driving this car for 20 years.
The Ramsey Show
This Is How You Take Control of Your Own Life
You're going to drive it for maybe two years until you can save up and be in a better place and upgrade the car. You'll sell that one for probably what you paid for it and then upgrade with the money you have saved up. Do you see that kind of slow burn by using cash and how it slows you down to make better decisions?
The Ramsey Show
This Is How You Take Control of Your Own Life
And let me advise you, get a pre-purchase inspection. It's going to cost you $100, $150. It's going to be worth every penny so that you don't go, oh, my gosh, I got a $5,000 car. It needs 3,000 repairs the week after I bought it.
The Ramsey Show
This Is How You Take Control of Your Own Life
Get a pre-purchase inspection from a mechanic that you trust, an independent one, that can look it over and go, all right, this car is not going to have a bunch of issues. It's in solid condition. This will get you another 50,000, 100,000 miles. And that will put you in a place to then save up because you free up that payment. Now you can save that money and upgrade a car.
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This Is How You Take Control of Your Own Life
And I'm going to also send you my book, Breaking Free from Broke, on top of Financial Peace. Read the car loans chapter specifically, and I walk you through the right way to buy a car. Every single step from the payment to the research, the negotiating, all of that to give you some confidence and clarity. And the one thing you're not going to do is walk away with a payment.
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This Is How You Take Control of Your Own Life
And, man, you're 14 months in. You're doing really, really good.
The Ramsey Show
This Is How You Take Control of Your Own Life
And don't be tempted by American stupidity. I know they make it look so cool, but everyone is miserable and broke and anxious, and I don't want you to become that. There's too much opportunity for you. So hang on the line. We're going to send you Financial Peace University and Breaking Free from Broke. I hope you can avoid the traps that America has created for you.
The Ramsey Show
This Is How You Take Control of Your Own Life
She's not just going to bury her head in the sand and have this go away. So there's going to be some hard conversations, some major lifestyle changes. Everyone's going to have to get to work, and I don't want you to enable it. It doesn't sound like you're trying to do that. You're not trying to just fund their life.
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This Is How You Take Control of Your Own Life
That puts this hour of The Ramsey Show in the books. If you want to catch the next hour, jump onto the Ramsey Network app. It's totally free. It's linked in the show notes or just search Ramsey Network in the app store of your choosing. And we will continue the show over there. If you're on radio, stick around. The show will continue as promised. This is The Ramsey Show. Hey, you're still here?
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This Is How You Take Control of Your Own Life
What are you doing? You do know that the rest of today's show is playing right now over on the Ramsey Network app, right? All you got to do to finish the episode is search Ramsey Network in the App Store, Google Play Store, or just click the link in the show notes to download the app for free. Yep, you heard me right, for free.
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This Is How You Take Control of Your Own Life
Then right there on the home screen, you can watch the rest of today's show. Bada bing, bada boom. All right, I'm getting out of here. Enjoy. We'll see you on the app.
The Ramsey Show
This Is How You Take Control of Your Own Life
But there's going to have to be a conversation about what the next year looks like, five years, ten years. Otherwise, you're going to be left with a mess and have to just wash your hands of it and go, you guys do what you want to do.
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This Is How You Take Control of Your Own Life
Jason's going to kick us off in Cincinnati. Jason, how can we help?
The Ramsey Show
This Is How You Take Control of Your Own Life
Find somewhere to rent. Sister's got to go make some real money. Mom might have to work part-time. Man, I'm so sorry you're dealing with this. It's a series and pattern of terrible financial decisions over a long period of time. That's a hard knot to undo, my friend. This is The Ramsey Show.
The Ramsey Show
This Is How You Take Control of Your Own Life
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. Give us a call, 888-825-5225. Kelly's up next in Salt Lake City. Kelly, welcome to The Ramsey Show. How can John and I help?
The Ramsey Show
This Is How You Take Control of Your Own Life
Okay, and you said you've sunk everything into it. What does that mean?
The Ramsey Show
This Is How You Take Control of Your Own Life
Was the business ever profitable to where you weren't needing to go into debt for it?
The Ramsey Show
This Is How You Take Control of Your Own Life
Well, your debt payments are your biggest overhead. No, what's your debt payment? You said $325,000 on an SBA loan?
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This Is How You Take Control of Your Own Life
So was this like a line of credit from the bank up to $325,000?
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This Is How You Take Control of Your Own Life
And so far it's making, what, $15,000 a month? Yes.
The Ramsey Show
This Is How You Take Control of Your Own Life
How are you guys living? How do you eat? So you're working for free while going hundreds of thousands of dollars into debt.
The Ramsey Show
This Is How You Take Control of Your Own Life
That didn't pass my smell test. I would question who she got in contact with and what their actual credentials are, but this sounds like a debt relief company. That's the only people who would tell you, hey, stop paying on your debt, give me the payment instead, and we'll resolve this on the back end when you tank your financial life and we'll try to settle it. Was that the intention, you think?
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Nobody Builds Wealth by Accident
I know a lot of you would rather watch paint dry in slow motion than file your taxes. But thankfully, you don't have to dread filing when you've got Ramsey Smart Tax. It comes packed with everything you need to file online before the big deadline. That means all major federal forms and deductions are covered with no hidden fees.
The Ramsey Show
Nobody Builds Wealth by Accident
Plus, with Ramsey Smart Tax, you can save up to 70% compared to other tax software out there. It's a no-brainer. Just go to ramseysolutions.com slash smart tax and see how simple tax filing can be. That's ramseysolutions.com slash smart tax.
The Ramsey Show
Nobody Builds Wealth by Accident
Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
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Nobody Builds Wealth by Accident
And that's why we recommend Delete.me. They help with that.
The Ramsey Show
Nobody Builds Wealth by Accident
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
The Ramsey Show
Nobody Builds Wealth by Accident
I love these reports. So far, get this, they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites, and saved me 77 hours of time. It's incredible.
The Ramsey Show
Nobody Builds Wealth by Accident
I love it. So you got to be sure to check them out. Ramsey fans get 20% off their annual plans. Just go to joindeleteeme.com slash Ramsey. That comes out to less than nine bucks a month. Super affordable.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Have you gotten one of those texts recently claiming to be the USPS with some sketchy link to update your address? It's annoying and a little terrifying. And you probably think to yourself, I should do something about this. But where do you even start? Well, as your nerdy friend who does the research for you, I found the solution. They're called Delete Me.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And here's the reason they come in the clutch. The internet is packed with data brokers, which are these shady companies whose sole purpose is to collect your personal info and sell it for a profit. Enter DeleteMe. DeleteMe swoops in, finds your info on these sites, and removes it on your behalf. They even send you a report with all the details.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And so far, for me personally, they have reviewed 27,000 listings, removed my info from 240 data brokers, and saved me 66 hours in the process. I trust DeleteMe to help protect my family, and I trust them to help you too. You're going to get fewer spam texts, fewer phishing emails, and fewer creepy robocalls. And Delete Me also makes a great gift for other people in your life that you care about.
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Don’t Let Toxic Money Situations Keep You Trapped
Individual plans start at just $9 a month, so take an easy step to protect yourself and your loved ones today. And as a Ramsey fan, you'll get an extra 20% off any of their plans at joindeleteme.com slash Ramsey. That's joindeleteme.com slash Ramsey.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Hey guys, George Camel here. Let's be real. If I had a dollar for every time Ramsey Solutions gave away free money, I'd probably be rich enough to give out my own cash prizes. And here's another one for you. We're giving away $20,000 at the Take Control of Your Money livestream on January 23rd. I don't know about you, but I'm definitely signing up for this event.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Plus, my friends Dave Ramsey, Jade Warshaw, and Rachel Cruz will be there too. We'll be talking about how you can make real progress on your money goals. Maybe you're wanting to knock out some debt. Maybe you're ready to start saving for a house. Maybe you want to build for the future. Or maybe you just want to stop cringing every time you need to buy eggs. This live stream is for you.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
It's your time to ask us whatever you want about money. It'll be kind of like a New Year's party, money pep talk, and a live Q&A all rolled into one amazing event. Plus, if we're lucky, a little comedy on the side. And no, I will not be charging for my dad jokes. So listen, if you're ready to take back control of your money or you just want a chance to win some extra cash, join us.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Go sign up now at ramseysolutions.com slash livestream. That's ramseysolutions.com slash livestream.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Learn more at ramseysolutions.com slash smartvestor.
The Ramsey Show
Your Financial Journey Is a Marathon, Not a Sprint
Hey, you're still here? What are you doing? You do know that the rest of today's show is playing right now over on the Ramsey Network app, right? All you got to do to finish the episode is search Ramsey Network in the App Store, Google Play Store, or just click the link in the show notes to download the app for free. Yep, you heard me right, for free.
The Ramsey Show
Your Financial Journey Is a Marathon, Not a Sprint
Then right there on the home screen, you can watch the rest of today's show. Bada bing, bada boom. All right, I'm getting out of here. Enjoy. We'll see you on the app.
The Ramsey Show
Your Mindset Matters More Than Your Money
Ну, Павел, я буду говорить с тобой, как будто бы я вернулся в время, потому что у меня было больше вреда на студенты, чем у тебя, и я сделал меньше, чем у тебя. И так, в 23-м году у меня было $40,000 вреда на студенты, я не сделал никакого прогресса, я пытался играть в то же самое, как ты, балансируя все это. Вот, что ты должен сделать. Парадайм-шифт. Попробуем проверить план.
The Ramsey Show
Your Mindset Matters More Than Your Money
Это значит, что мы возьмем $9,000 из этого транспортного фонда, и оплачиваем вред. Редактор субтитров А.Семкин Корректор А.Кулакова
The Ramsey Show
Your Mindset Matters More Than Your Money
Я знаю их все. Я думаю, что цена правильная. Один доллар, Боб. Это как хип-гейм-шоу. Я бы хотел увидеть, когда цена правильная, Дэйв. Это не слишком поздно.
The Ramsey Show
Your Mindset Matters More Than Your Money
Да, я с этим. И я также спрашиваю, ты говоришь, что она не может работать.
The Ramsey Show
Your Mindset Matters More Than Your Money
Ну, я думаю, это связано с дальнейшими преимуществами. Если это будет еще неделя, и мы все еще живем в таком помещении, то это место, где мы должны уйти. Мы должны иметь стратегию выхода из этого, когда она ухудшится.
The Ramsey Show
Your Mindset Matters More Than Your Money
Вау. Ну, ничего не сделает тебя взрослым, как иметь ребенка. Так что материя, мы просто нажимаем на кнопку fast forward прямо там. Добавляя ребенка, он сделает это.
The Ramsey Show
Your Mindset Matters More Than Your Money
Да, я слушаю. Что ты сейчас инвестируешь в?
The Ramsey Show
Your Mindset Matters More Than Your Money
Хорошо, вы зарабатываете большую часть этого, на что теперь можете инвестировать. Так что да, вы потеряете что-то из этого аккаунта, но вы все еще будете инвестировать за следующие 20 лет.
The Ramsey Show
Your Mindset Matters More Than Your Money
И что заставило вас сказать, что вы будете тратить все это на криптовалюту?
The Ramsey Show
Your Mindset Matters More Than Your Money
Это гораздо темнее, чем рынок. Ты трейдишь крипто-маркет для стаба.
The Ramsey Show
Your Mindset Matters More Than Your Money
Это достаточно, чтобы зарабатывать? Нет. Что в ваших инвестициях сейчас?
The Ramsey Show
Your Mindset Matters More Than Your Money
В вашем возрасте я не пойду в Вегас и просто поставлю все на черное и надеюсь на лучшее. Это не хороший план зарплаты.
The Ramsey Show
Your Mindset Matters More Than Your Money
Если бы я сказал Мэгги, что в следующие два года деньги будут возвращаться к тому, как они были в вашей зарплате, я не думаю, что она бы это сделала. Но это сложно увидеть так далеко впереди, когда вы видите, что ваша зарплата сломается. И вы просто хотите сделать что-то, чтобы не делать это.
The Ramsey Show
Your Mindset Matters More Than Your Money
Ну, мы также имеем цитату от Уоррена Буффетта, что он бы не платил 25 долларов за все биткоины в мире. Да.
The Ramsey Show
Your Mindset Matters More Than Your Money
Я имею в виду, что зависит от того, какую криптовалюту. Многие пошли в банкротство, есть фрауды, скамы, 97%.
The Ramsey Show
Your Mindset Matters More Than Your Money
Хорошо. Что заставило тебя делать этот план в первую очередь?
The Ramsey Show
Your Mindset Matters More Than Your Money
Да. И что 40-летняя Джессика хочет посмотреть на это и сказать, что, чувак, я так рад, что Джессика сделал эти решения. И если это означает, что, ты знаешь, убирать информацию о вашей дебетной карте от каждого сайта, который у вас есть, скрывать ее, иметь ответственность с другом, сделай, что угодно.
The Ramsey Show
Your Mindset Matters More Than Your Money
И давайте посмотрим, у нас действительно есть зарплата или нет. Выбирайте, что это за часовые зарплаты на это.
The Ramsey Show
Your Mindset Matters More Than Your Money
And you look at him and go, honey, what part of this is smart?
The Ramsey Show
Your Mindset Matters More Than Your Money
Другая вещь, которую люди делают сейчас, это идти в ваш дом и делать работу там.
The Ramsey Show
Your Mindset Matters More Than Your Money
И другая вещь, которую он может сделать, это просто идти работать в зоопарке, который уже имеет личное обучение, и они приглашают его и платят ему деньги.
The Ramsey Show
Your Mindset Matters More Than Your Money
Но тебе нужен человек, который кричит на тебя, кроме того, кто в твоем голове.
The Ramsey Show
Your Mindset Matters More Than Your Money
Мы видим так много больше этого, потому что люди имеют очень низкие рейтинговые цены, которые они не хотят отпустить, Дэйв.
The Ramsey Show
Your Mindset Matters More Than Your Money
It's a great feeling. Instead of worrying about what the market's doing.
The Ramsey Show
Your Mindset Matters More Than Your Money
But you never really had it if you owed it to the lender in the first place.
The Ramsey Show
Your Mindset Matters More Than Your Money
Если ты хочешь создать достоинственную власть и иметь свою интеграцию, заплачь свои налоги, Чадо.
The Ramsey Show
Your Mindset Matters More Than Your Money
Надеюсь, это было понятно. Это правда. Интересно, как это проходит через каждую часть вашей жизни. Вашу карьеру, вашу семью, ваши отношения, ваши финансы.
The Ramsey Show
Your Mindset Matters More Than Your Money
Субтитры сделал DimaTorzok Продолжение следует...
The Ramsey Show
Your Mindset Matters More Than Your Money
Даже если это снижает вашу стоимость, это стонет вашим ростом, и это вызывает отношения, которые будут страдать, которые уже слишком страдают, чтобы их улучшить.
The Ramsey Show
Your Mindset Matters More Than Your Money
Пять лет с очень малыми счетами, ты должен был сделать серьезный прогресс на счет налогов. И это звучит, как будто ты чувствуешь себя комфортно, живешь дома, ты как-то присоединяешься к твоему старшему детскому себе, и ты не делаешь так много прогресса, как ты думаешь.
The Ramsey Show
Your Mindset Matters More Than Your Money
И я бы пытался это сделать до того, как год и полутора закончится, и тогда начать инвестировать. У тебя есть деньги, которые расширены. Ты знаешь, что ты не будешь иметь вреда для этого свадьбы. Это твой цель здесь.
The Ramsey Show
Your Mindset Matters More Than Your Money
Редактор субтитров А.Семкин Корректор А.Кулакова Продолжение следует...
The Ramsey Show
Your Mindset Matters More Than Your Money
Your buddy is going to make way more commission off of that.
The Ramsey Show
Your Mindset Matters More Than Your Money
Дэйв, я вижу это во всех социальных сетях. Я не знаю, почему, но молодые люди гравитируют над этими универсальными политиками жизни. И вот как это маркетируется. Они говорят, что вы знаете, что вы должны использовать вашу личную инвестицию, пока вы живете. Вы знали это? И все говорят, о, боже мой, это замечательно. Эта инвестиционная политика внутри моей всей жизни. О, боже мой, это невероятно.
The Ramsey Show
Your Mindset Matters More Than Your Money
Я буду становиться миллионером. И комиссии и налоги, которые эти ребята делают и продают, это невероятно. Да. И количество времени, которое нужно потратить каждую неделю, чтобы заработать столько денег, это абсурд.
The Ramsey Show
Your Mindset Matters More Than Your Money
Но они пишут это как очень специфическое, нюансовое. Это так сложное, что вы не понимаете.
The Ramsey Show
Your Mindset Matters More Than Your Money
Мы учим, что вы должны взять разницу, если вы платите 5 баксов за полную жизнь против 100 баксов за целую жизнь, возьмите 95 баксов, которые вы бы потратили, и инвестируйте в это, и вы будете гораздо лучше, чем если бы вы�щались с одной из этих храбрых политик.
The Ramsey Show
Your Mindset Matters More Than Your Money
И я стал... А теперь он взрослый человек, Америка.
The Ramsey Show
Your Mindset Matters More Than Your Money
Я не знаю, если бы он это сказал, но нет вреда, вложение в бюджет, это хороший место, чтобы инвестировать и купить квартиру с кашей, разнообразную квартиру, наслаждаться чем-то, и остальное я бы инвестировал в более реальное хозяйство, если он комфортен, или просто вложить в хорошие бюджетные бюджеты.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
И что сейчас происходит? Какой у вас обычный месяц?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Продолжение следует... Итак, давайте перейдем к следующим звонкам. 888-825-5225 – это номер. Эмма находится в Сан-Бернадино. Эмма, добро пожаловать на «Рэмси-шоу».
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
О, боже мой. Да. Это как будто ты хочешь остаться в группе на Титанике из-за денег, но мы можем видеть, что это снижается.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Я думаю, что он должен видеть написание на стене, что этот парень имеет множество судов против него, люди пытаются активно убивать его. Деньги могут быть хорошими сейчас, но, во-первых, за что стоит ваша душа, и держаться рядом с этим уровнем интеграции. И, во-вторых, это деньги могут не быть рядом в следующем году, когда слово обойдется в инвестиционном мире.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Спасибо, что держите референсы в порядке.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Ставь лайфхак, и давайте найдем ему еще работу. Он отличный агент в хозяйстве, и это основная основа здесь, а не эта магическая агентства, которая начинается.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Если мне достаточно трогать, чтобы назвать национальную радио, то мне достаточно трогать, чтобы поговорить с женой.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Ладно, давайте перейдем к Миннеаполису, Миннесота. Джереми присоединяется к нам. Джереми, добро пожаловать на наш канал.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Хорошо. Ты звучишь победителем, Джереми. Ты просто ждал на линии слишком долго?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Ты просто будь проактивным, чтобы они не думали, правильно?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Это похоже на то, что они просто не хороши в математике. Они просто фактируют что-то, что они хотят.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Это очень глупая решение, но ты можешь просто получить маленькие билды и просто иметь их на тебе, когда ты будешь есть.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Я делаю это для моих отрезков. Это отличный пример. Я плачу за мои отрезки, чтобы получить скидку. Я просто пошел сегодня, и я иду к банку рядом, и я отрезаю 20-е, и получу 10, 5 и 5-1, чтобы я мог дать ему exact, exact amount, with tip included. Но ты не знаешь, сколько ты будешь платить за еду, конечно. Но идея здесь в том, что у тебя есть 5, у тебя есть 1. У тебя есть варианты.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Это хорошая точка зрения. Потому что вы просите за изменения, а они смотрят на это, как, о, он так дешевле.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
We're back with more of The Ramsey Show.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
I'm George Campbell, joined today by Rachel Cruz.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Ну, я просто сделаю математику и скажу, окей, скажем, ты разговаривал с окружающим, с третьей партией, с инвестором, чтобы получить оценку на то, что это может быть?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
И он говорит, что он может добавить 800 в месяц, потенциально?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Если это 800 в месяц, то абсолютно не стоит, потому что это 10 тысяч в год. Да. Ты сейчас плачешь за это заявление, чтобы получить 10 тысяч в один раз. Но это последний случай. Это последний случай. Правильно. Так что я говорю, что есть ли способ решить это без выполнения заявления?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Они просто, типа, отворачивали и выключили? Или там была ключ?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Потому что обычно мы просто смотрим на математику и думаем, что это будет ROI? Это имеет значение для математической точки зрения. Но здесь слишком много неизвестных, чтобы точно сделать это. Теперь, если я в твоих шахтах, я мог бы просто сэкономить и купить им дешевый автомобиль.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Мы не собираемся купить ему $14,000 автомобиль, мы собираемся купить ему $4,000 автомобиль.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
И ты скажешь, что... Мы добавим 2 тысячи, ты добавишь 2 тысячи, мы найдем тебе машину за 4 тысячи, мы договоримся об этом на Facebook Marketplace, ты возьмешь ее, чтобы ее инспектировать, и я думаю, что это поможет ему видеть эту машину по-другому.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
И я все еще останусь на этом полицейском репорте. Я буду, я имею в виду, машины закрываются, это невероятно. И это может длиться несколько недель, но если это еще не на «Чоп-шопе», то это может просто сидеть где-то в автомобиле. Хорошо. Без плейтсов, кто знает, что они сделали. Да, это правда. Но это невероятно, как эти вещи закрываются.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Поэтому все еще держите в виду это, но в то же время говорите, сколько мы хотим вложить, дайте ему, вы знаете, может быть, прийти с половиной этого денег, и дайте ему начать смотреть, и дайте ему решить.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Спасибо. Спасибо, Мелисса. Это тяжелая ситуация. Боже мой.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Я не в этом мире, но это страшно, чтобы подумать о том, что кто-то мог просто вставить в вашу машину и уйти. Я знаю. Волшебные времена. Да. Вау. Ну, это все, что мы можем сказать о «Рамзе» в книгах. Наши благодарности Аустону, Келли, Бену, Джеймсу, Андрю, и, конечно, моему сообществу Райшелу Крузу. И кто мог забыть о тебе, Америка? Мы благодарим тебя за слушание.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Мы вернемся с тобой, пока ты не знаешь.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Она судья. Она держит. Она держит кисти.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Келли не уверена. Я не знаю, Келли, что ты думаешь? Да или нет? Ну, Расти ухаживает за нами. Он находится в Мансфилде, Охайо. Расти, добро пожаловать на «Рамзи-шоу».
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
What do you think she'll make this year?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Ну, если я в твоих руках, я чувствую чувство угрозы, и я говорю, что мы продаем эти машины завтра, и мы будем ездить в битер-карах, мы продаем эту квартиру в следующий месяц, и мы будем жить где-то, где мы можем зарабатывать.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Я имею в виду, что, да, мы сделаем эти экстремальные...
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Продолжение следует... Оливия приглашает нас в Буффало, Нью-Йорк. Оливия, добро пожаловать на «Рамси-шоу».
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Редактор субтитров А.Семкин Корректор А.Кулакова
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Субтитры сделал DimaTorzok Продолжение следует... Добро пожаловать в «Рамзи-шоу». Я Джордж Кэмпбелл, присутствующий с Рэйчел Крузом. Наша «Рамзи-шоу» вопроса дня приведена к вам от Y-Refi. Студентская кредитная кредитная кредитная кредитная кредитная кредитная кредитная кредитная кредитная
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Learn more at yrefy.com slash ramsay, that's the letter Y, r-e-f-y dot com slash ramsay, might not be available in all states.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Да. Так если мы поднимем это на 20 миллионов, это 10 миллионов, это довольно хорошо. Я буду идти, 5 миллионов в месяц, это будет 2 миллиона.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Или 2 тысячи. Да, примерно 2200 баксов в месяц. От 14 до 30. Это еще много денег для 14-летнего ребенка. Мы хотя бы нашли что-то, что мы можем найти.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
And who you are as a person, Nathan, is going to have a big part in this.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Because there are people, I would say, that have millions and millions and are still very discontent people.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Я отмечаю все эти «будьте богатыми» и «будьте быстрыми», даже если это с достойными ценностями, и вы хотите сделать это в менее рискованной способности. Есть просто нет хорошего причины, что любой человек должен сделать сотни миллионов, или даже «я должен иметь миллион в этом возрасте». Правда, Натан, если ты следишь за Рэмси Бэйби-Степсами, ты сможешь достичь 30.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Твой заработок будет миллион долларов или больше, если ты остаешься без налогов, собираешь деньги, купишь дом, зарабатываешь деньги на дом, инвестируешь 15% твоего дохода. В течение времени, рост компонентов будет проявляться и сделать тебе тяжелый рост. Так что это не очень веселая ответственность, но я думаю, что нам нужна новая книга от Дэйва, которая называется «Бэйби-Степс 100 миллионеров».
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Я посмотрел, это называется сентимиллионер. Сентимиллионер, да.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Сентимиллионер. У тебя больше 100 миллионов.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Но спасибо за вопрос. Ты знаешь, Натан, это было хорошим мозговым упражнением. Даже если это было довольно wild вопрос. Это здорово.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Я... Что это было еще? Сентай-миллионер. Я шучу. Ладно, давайте перейдем к телефону. Айнар находится в Озлоне, Норвегия.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Это противоположно Кэмпбеллу. Но да, это хороший момент.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Окей, так это не были зарплаты, другие средства, кэш, и так далее?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
И Винстон, наверное, редко пробирается через его деньги.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Потому что я не думаю, что Винстон любит, если бы ты уменьшил его сумму.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Вот так это происходит. Однажды в году Винстон говорит, что хочет купить это, и он просто это делает.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
А Рейчел говорит, ой, сколько денег у меня есть?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Так что я не хочу создавать конфликт между женскими парнями.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
I don't know that there would be much here for you, based on how complicated this whole thing is and was.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Но здесь еще одна вещь. Я не имею никаких hobbies.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Так что, Айнар, ты можешь дать нам номер? Что это за криптовалюта в Норвегии? Кронер?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
То есть, сейчас есть предположения и предназначение, что он будет это обеспечивать, потому что он очень хорошо работает, и он должен это обеспечивать.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Я не знаю, сколько у каждого есть. Много, как я думал.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
У тебя есть деньги сейчас? Да. Сколько?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Да, это правильно. Ну, ты обращаешься к нам с большим током и мудростью, и я аплодирую тебе за это. И то, что они даже хотят иметь тяжелую беседу, говорит мне, что здесь есть надежда. Но это может взять несколько этих бесед, и достаточно времен, чтобы они получили напечаток. И вы знаете, это может повредить эти отношения.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Эти люди могут не хотеть отдыхать и идти на ужин, потому что у них есть свое отрицание, что они, вы знаете, что-то, что они пьют.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
И поэтому я не хочу, чтобы это было рефлексом на вас, и это будет больно в некоторых из этих ситуаций, но вы должны сделать то, что правильно для вашей семьи, и вы не можете позволить эту генеральность превратиться в требование, потому что это вырабатывает всю радость из этого.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
И это было моё сердце. Я был такой, что они не интересуются учением. Возвращение к имуществу происходит далеко от работы. Это обычно так. И я люблю старый цитат. Я думаю, это цитата Амайи Анджелу. «Когда кто-то показывает тебе, кто ты, поверь им впервые. И если они показывают своему характеру, что эта связь основана на транзакциях, и ты заставил генеральность, то это не связь».
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
И они выбирают оптимизировать эту отношения, если это так, как они видят тебя. И самое тяжёлое в этом всём, это ты сражаешься с этими эмоциями. Это не имеет никакого значения с ними. Это ты чувствуешь, что ты не плохой человек. Потому что они будут тебя подогнать и сказать тебе, что ты злой, я не могу поверить тебе. Ты такой стинжи, после того, что мы сделали для тебя.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Помнишь, когда ты был пять, и я тебя взял?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Без курсов, я не знаю, уходи из страны и изменяй свой имя, но не делай этого, понимаешь? Да, правильные курсы, иметь тяжелые разговоры, как много раз, как нужно, и тогда ты должен выделить линию и сказать, слушай, мы говорили об этом несколько раз, это то, на что я стою, я люблю вас, но наша отношения не могут быть основаны на транзакциях.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Добро пожаловать в «Рамзи-шоу». Я Джордж Кэмпбелл, с вами Рэйчел Круз. Открывайте телефоны на 888-825-5225. Вы звоните, мы надеемся, что вы возьмете правильный следующий шаг для вашей жизни и вашего денег.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Нет, это почему, извините. Там есть мудрость в этом, Дэн, мне нравится. Хорошо, так что ты хочешь купить дом, когда ты отстанешь в следующем году?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Но у вас нет смысла даже знать, где она, как с ней общаться, она на планете сейчас. Правильно.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
И 403B на 350, я имею в виду, что это не огромный коврик, который будет наслаждаться 30 лет. И так, сколько денег вы можете заработать в течение времени, чтобы получить оплату?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Я бы сидел сегодня и поднялся к калькулятору и сказал, что если бы мы подняли, скажем, 50 в дом, мы бы получили 100 тысяч долларов в калькуляторе, что бы это было в месяц?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Потому что моя опасность, если вы живете из 2К, и вы, возможно, не сможете поднять тонну из этого 403B, пока сидите на этом стадии, на 350, потому что вы бы десимировали, если бы вы взяли 150 из этого 403B, я имею в виду, что это большая часть вашего калькулятора, который вы отключили от будущего компонентного развития. И я бы сидел и смотрел, может ли это сделать смысл заработать?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Можем ли мы заработать за $750 в нашем районе, вместо того, чтобы заработать $1,200? Это то, что я бы делал, чтобы увидеть, как мы можем жить с этим заработком. Потому что это не очень много заработка, если рассматривать только $2,000 и немного от $403.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Ну, в дальнейшем, я бы хотел, чтобы ты был в доме. Но сейчас, просто, нет много денег, чтобы отправить в дом и просто купить его с кашей, без просто использования всей твоей зарплаты.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Ты поставил 50, получил 100 тысяч долларов зарплату. Я сомневаюсь, что скидка будет астрономически высокая. Но, опять же, если ты сделаешь 2 тысячи, и скидка 1000 баксов, это много твоего мира, просто скидка. Да. Да.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Мог бы ты делать еще один год? Ну, я мог бы, да.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Я мог бы, чтобы дать вам немного больше места для расслабления, позволить вашу NesTag вырастить, позволить вам получить больше денег за оплату. Это бы дало мне больше спокойствия лично.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Да. И если бы я был в твоих руках, я бы сидел с финансовым адвокатом, который мог бы выкручивать эти цифры для тебя, но я бы не был комфортен, если бы я выиграл более 1000 или 1500 долларов в месяц из этого 4-3B, потому что у тебя может быть еще 30 лет впереди, и ты должен жить из этого. Правильно. И поэтому это то, где цифры появляются.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Напкинг-матх бы сказал, что, знаешь, вытаскивая 2000 из этого НЕСТАГа каждый месяц, ты, наверное, уйдешь из денег.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Я даже не понимаю эту часть, это так странно.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Если ты в этом месте, вот что я бы сделал, если бы я был в твоих шахтах. Что бы ты бы платил, рынок рынка, я бы взял эту сумму и оставил ее в инвестиционном аккаунте, как долго ты будешь иметь эту карьеру, так что, когда ты отстанешь, ты скажешь, о, боже мой, у нас 400 тысяч, просто наличие для дома.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Да, почти опасно, если бы вы ее преследовали.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Мы сделаем это после этого часа. Для всех, кто слушает нашу программу на YouTube или на подкасте, она уже заканчивается. Но вы можете слушать остальное на нашем канале. У нас будет еще больше. Вы можете закончить нашу программу бесплатно. Вы можете посмотреть нашу программу бесплатно в App Store. И вы сможете получать еще одну час. Продолжение следует...
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Подожди, я собираюсь послать тебе копию книги Доктора Джонда Лоне, «Он твой прошлое изменит твое будущее», чтобы помочь тебе снижать все это.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Редактор субтитров А.Семкин Корректор А.Кулакова Да, куча медицины, куча сахара сделает медицину падать. Я думаю, это то, что значит Smart Money Happy Hour. Это то, как это кажется. И люди любят это. Девочки слушают это, они говорят, я слушаю, мой 10-летний мальчик любит это. И потом люди говорят, я 75, и я люблю слушать вас. Так что что-то для всех с Smart Money Happy Hour. Мы все здесь.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Так что посмотрите это вечером. Вы можете бинжить все эпизоды, которые есть там каждый Thursday. Хорошо. Клэр присоединяется к нам в Seattle, Вашингтон. Клэр, добро пожаловать на наш канал.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Это круто! Отлично! Так что скоро ты учишься? Я учусь через год.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
И что ты там делаешь? Немного более 16.50 часа.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Я просто думал, что люди, которые работают 15-20 часов в колледже, имеют выше GPA, чем те, кто не работает. И вот и все. И ты проверила. Да. Итак, ты лучший, номер один. У тебя есть какие-то вреда?
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
И сколько у тебя в счетах и зарплатах? Это невероятно. Хорошая работа. Хорошо, давайте поговорим об инвестициях. Я думаю, что Roth IRA – это ваш лучший бет сейчас. Хорошо. Я не думаю, что вам нужно беспокоиться обо всех остальных вещах и о том, что вы слышите. Вы можете встать в Roth IRA.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
После того, как вы начнете свою карьеру, вы, возможно, получите опцию для Roth 401k, и это еще один хороший место, и начните делать 15% в этом моменте.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Это могут быть депозиты, у тебя может быть необходимость улучшения машины, улучшения оборудования, обеспечения, обеспечения.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Да, и если вы хотите помочь в установке Roth IRA, вы можете подключиться к одной из наших смарт-вестер-про. Они не работают для Ramsey, но они предоставлены инвестиционным профессионалам, которым мы доверяем. Если вы зайдёте на ramseysolutions.com и нажмёте на «Trusted Pros», вы сможете связаться с одним из них в Сеатоне, и они начнут вас. Отлично. Давайте перейдём к Брэндону из Далласа.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Брэндон, добро пожаловать на наш канал.
The Ramsey Show
Don't Let Debt Happen To You—Face It Head-On
Что ты имеешь в виду, что она удовлетворила вашу больную маму?
The Ramsey Show
Building Wealth Happens One Baby Step at a Time
Hey, George Camel here with a not-so-fun fact. Every American social security number, including our children's, has been hacked and is now on the dark web. And this is not a scare tactic. This isn't fear-mongering. It's a reality that could turn into a nightmare for a lot of people. And believe me, I've been a victim of identity theft, and I would prefer it never happen again.
The Ramsey Show
Building Wealth Happens One Baby Step at a Time
Because once the bad guys have your social, it's the lifeblood for all of their activity. Think of all the places you use your social. Your banking, your employer, government offices, utilities, cell phone companies, everywhere. And once they've got it, thieves can open new accounts, drain existing ones, steal payroll, and wreak havoc all in your name. Not cool.
The Ramsey Show
Building Wealth Happens One Baby Step at a Time
And to be real, it's not a matter of if, but when. So you've got to protect yourself with Zander's ID theft protection. Zander has all the cyber tools to help, including home title monitoring, full recovery services if you do become a victim, and stolen funds protection. Not to mention, it's the best value on the market.
The Ramsey Show
Building Wealth Happens One Baby Step at a Time
They've been protecting my family for over a decade, and I trust them to protect yours too. So get enrolled today by calling 800-356-4282 or just visit Zander.com. That's Z-A-N-D-E-R.com.
The Ramsey Show
Building Wealth Happens One Baby Step at a Time
I still remember 10 years ago, 23 years old, I was frustrated, anxious, and flat broke. I had followed all the ways that toxic money culture had led me down from well-meaning parents and misguided guidance counselors, and it left me with a pile of debt. But I'm telling you, it doesn't have to stay that way. Over a decade, I went from broke to millionaire.
The Ramsey Show
Building Wealth Happens One Baby Step at a Time
and I break it all down in my new book, Breaking Free from Broke. I'm going to show you just how toxic this money system is and how you can break free from credit scores and credit cards and student loans and auto loans and investing traps and finally live a life that you're not exhausted by, a life with more margin, more options, and more peace.
The Ramsey Show
Building Wealth Happens One Baby Step at a Time
If you want to check out the book, go to ramsaysolutions.com to get your copy of Breaking Free from Broke. That's ramsaysolutions.com.
The Ramsey Show
Building Wealth Happens One Baby Step at a Time
We'll be right back. Have you gotten one of those texts recently claiming to be the USPS with some sketchy link to update your address? It's annoying and a little terrifying. And you probably think to yourself, I should do something about this. But where do you even start? Well, as your nerdy friend who does the research for you, I found the solution. They're called Delete Me.
The Ramsey Show
Building Wealth Happens One Baby Step at a Time
And here's the reason they come in the clutch. The internet is packed with data brokers, which are these shady companies whose sole purpose is to collect your personal info and sell it for a profit. Enter Delete.me. Delete.me swoops in, finds your info on these sites, and removes it on your behalf. They even send you a report with all the details.
The Ramsey Show
Building Wealth Happens One Baby Step at a Time
And so far, for me personally, they have reviewed 27,000 listings, removed my info from 240 data brokers, and saved me 66 hours in the process. I trust Delete.me to help protect my family, and I trust them to help you too. You're going to get fewer spam texts, fewer phishing emails, and fewer creepy robocalls. And Delete Me also makes a great gift for other people in your life that you care about.
The Ramsey Show
Building Wealth Happens One Baby Step at a Time
Individual plans start at just $9 a month, so take an easy step to protect yourself and your loved ones today. And as a Ramsey fan, you'll get an extra 20% off any of their plans at joindeleteme.com slash Ramsey. That's joindeleteme.com slash Ramsey.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
23, 24, something like that. A long time. Long, long time. I'm at seven, and I can tell you the ring has never come up in conversation.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
right i want her to look nice whatever but i mostly want to buy it so that i can be like look like i got my wife an upgraded ring and this you know what i mean and that's a different different ball game yeah i mean personally i would just rather spend 5 000 on the ring and go on a really nice honeymoon and cash flow the wedding and have some down payment money that feels like a better you're setting yourself up for a better marriage versus having something flashy to go he loves me this much it's
The Ramsey Show
Cut Debt out of Your Life! (Literally)
crazy that's a tough one that's a tough one this may be antiquated i know we have some recently engaged uh ladies in the booth right now who may have a differing opinion but i just tell you can you just thumbs up or thumbs down are we crazy are we crazy well she sort of thing i know she's got that real diamond she said she wanted the real thing we're talking to the wrong lady twenty thousand dollars though too much no
The Ramsey Show
Cut Debt out of Your Life! (Literally)
There's a limit. There's a limit emotionally, financially. And he makes $200,000. But in New York City, that might be a down payment if you're lucky. And so there's a piece of me where you've got to look at the opportunity cost. And I know life is more than opportunity cost. But we have very clear data that the marriage isn't better because you spent more on the ring.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And so, therefore, I go, what's the point of the ring? What was the original... Why did we come up with this idea? Oh, that's right. It was like De Beers and Kay Jewelers decided, oh, yeah, three months salary on a ring. That's what you should be spending.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
It's a symbol that says... I want the real blood diamond, John. I want the real thing.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Well said. I'm pumped for this. I'm lucky I get to just hang out next to Dave as he does this. So I would pay good money. Imagine that, five hours with Dave over two nights. Would you pay him $199 to sit with Dave and ask him all of your investing questions? And that's the cool part. You can actually submit your questions if you're part of the event, email them in.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
We'll take them as they come in live. And it's going to be a really good time. Dave's going to unpack it with formulas and how he analyzes every investment with real examples from his portfolio.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Well said. RamseySolutions.com slash events. Don't miss Investing Essentials. It's happening next week. All right, Maria's in Orlando up next.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
You're welcome. That singing is free. What's up, Maria?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
cut them up and then cut them up right now do you have them on you i don't i'm on my way home i'm gonna be there like 15 minutes can you promise america that you're gonna cut them up and that you're gonna dm me a photo of the cut up cards as soon as you do it okay yes i promise we have proof now that you said you would and you're a woman of your word so yes cut up the cards it has no bearing on the account it's just you burning the ships physically saying i'm done i'm done
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Letting my life be run by lenders and the sick games they play to get me into the points and rotating cash back with 25% APR. You're done with that. You're too smart and successful to deal with credit cards.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
As close to zero as you can get. It's just indeterminable.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
So it's not that I have a bad score. It just doesn't exist. I disappeared in the eyes of the credit bureaus because I paid off everything, closed all the accounts, including the mortgage. And so when you do that, you'll have no score.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And what you'll find is everyone made up some crazy story about how hard life would be without a credit card and how dangerous you are for using your own money through a debit card and how you'll never be able to rent a car again and buy an airline ticket in a hotel. And then I just did it and I went, oh. They didn't even batten. I was hoping to put up more of a fight at the counter.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And they just went, oh, yeah, your debit card's fine. That works. We'll take your money.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Way to go, Maria. I feel like we got one win in today, John. That's good. I feel great. I needed that. All right. Let's go out to Brian and see if we can help him in Syracuse, New York. What's going on, Brian?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Great questions here. So you're in Baby Step 4?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Absolutely. Well, you're asking great questions. I'm proud of you for where you're at and reaching out to a pro knowing, hey, I want to know that I'm doing the right thing instead of just hoping and guessing. And a good financial advisor will actually teach you and help you understand and leave the ball in your court to make the decisions. And they are truly there as the guide.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
You're the hero when it comes to your investing journey. And so ask them, hey, how do you operate? What's your investing philosophy? What kind of services do you offer? Beyond just helping me choose a few funds, what is this relationship going to be like? How are we going to communicate? How often? How do you get paid? That's an important one to know.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
That's an important part of it. Yeah. If you don't like them, don't work with them.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
That's it. It's part art, part science. Do we vibe and do I understand everything laid out here in the relationship?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
I mean, you want to avoid anyone who's selling you crappy products. And so if you jump on a RamseySolutions.com and click on Trusted Pros, I guarantee you they're not going to be pitching you on whole life and annuities for a young guy. And so that's one thing to look out for. Are they really just an insurance salesman, you know, a wolf in sheep's clothing?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Or are they actually a financial advisor who's licensed to sell me investments, who has my best interest at heart? That's the key, man. Great questions. RamseySolutions.com. Click on Trusted Pros. This is The Ramsey Show.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Welcome back to The Ramsey Show. Our question of the day is brought to you by YRefi. When the payment on your defaulted private student loan is as much as some mortgages, it's hard to get ahead. And that's when YRefi can help. We're financing to a low fixed rate loan built just for you. You can find out more at YRefi.com slash Ramsey. That's the letter Y, R-E-F-Y dot com slash Ramsey.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
May not be available in all states. Our question comes from Lucia in New Jersey. What is the question, John?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
No, I would not add her. This is not going to be a blessing to either of you. I hate that she's going through this. It's going to be tough. But here's the good news. As her credit score improves, as she makes mortgage payments and stays out of debt and stays on time with all of her payments, her credit score will naturally improve and she can refinance to a better rate down the road.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
But I would not add her as an authorized user. Her credit history will become part of your credit history and affect both of you. And if you make any poor decisions, God forbid, then that will also affect her negatively. And so I would say, listen, I love you a lot. I cannot bring you into my financial world and tether you to it. There's risk for both of us, and I'm not comfortable doing that.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Yeah. And the other part of this is you might actually be hurting her by artificially propping her up and keeping her in this house that she really can't afford. That's right. The answer might be she needs to sell the house because it's too much for her to take on on her own. And that's not a fun thing to do, but it might be the truth she needs to hear.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And so you can be a support for her without attaching her to your financial world and dragging each other down. Great question, though. Cherokee's up next in Vegas. What's going on, Cherokee?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Who else is in his community right now other than you? Does he have family around?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
I think he needs to move back home and get some care from the family, and you go out on your own.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And he can't split bills with you right now. He's not in a place to do that.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
So you've got two people who are leading from a place of weakness, and you can't carry the weight for him. Yeah, he doesn't need to feel bad.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
You're going to be no help when you get evicted and your car gets repossessed and you can't even go to work. You're going to create even more problems if you continue this. Yeah.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
So you need to make sure that you're well, and he needs to focus on him and get his family involved, and you can be a supportive girlfriend on the sidelines, but I would not intermingle our finances at all.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
How's it looking? Has the doctor said anything?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
From Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Camel, here with Dr. John Deloney, host of The Dr. John Deloney Show, and we're taking your calls at 888-825-5225. Peyton will kick us off this hour in Atlanta, Georgia. How can we help, Peyton?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Well, that's the thing is you have no control of this money once it's given.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
From Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by my friend Dr. John Deloney, number one best-selling author, and we're here to help you take the right next step for your life and your money. Give us a call at 888-825-5225. Sarah's up first in Dallas, Texas.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
You're about to be Bank of Payton once they find out that you're just giving away money like a game show, and they're going to be coming back.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
You did it last time. Why not now? Why are you so stingy now?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Have they asked for money, or is this just your own survivor's guilt talking?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And what needs does she have right now that you feel like you could help with?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
So is that child care? What would you exactly help with versus just writing a check?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Yeah. The more specific you get, the better. And you can remain in control if you do what John said and go, I'm going to give directly to the need versus just throwing a check at it. But you're a noble guy, and I got nothing but respect for you, man. Good luck with your decision.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Welcome back to the Ramsey Show. Do not miss the upcoming Money and Relationships Tour. It's Dave Ramsey and Dr. John Deloney like you have never seen them before.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Unfiltered, unscripted, and packed with wisdom and laughter.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And the audience, they choose the content of the night before the event.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
They're headed to a town near you. Louisville on April 21st. Durham, April 23rd. Atlanta, April 25th. Phoenix on May 5th. Fort Worth, May 7th. And Kansas City on May 9th. Get your tickets. RamseySolutions.com slash tour. And if you're tuning in on YouTube or podcast, just click the link in the show notes. Be sure to say hi. I wish I could go. They don't invite me. I'd love to drive out to Atlanta.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Maybe me and Rachel will crash in Atlanta. That would be a blast. Just show up.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
All right. Skylar is in Fort Worth up next. What's going on Skylar?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
So they want you to pay for the building of this in-law suite so that you can live in it?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Why don't you just leave? Can't you just go live on your own and rent an apartment somewhere?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Okay, you just need to go. I don't understand. I mean, you need to say, hey, mom, dad, it's been great. Thank you so much for letting me crash. Me and baby are going to go get our own place. You said you're in a better place financially. Can you afford to rent your own place?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And you said your hours, they range from 5.30 in the morning to 8 at night?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
I'm wondering, what does child care cost around you if you were to put him in daycare?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Okay. But soon, this is a temporary problem. Soon he'll be old enough, he'll be in school, this will all be behind us, right?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Okay. Well, just know this is not forever. This is a season, and it's going to be hard, and it's going to be uncomfortable, but you're going to be on the other side, more mature, more independent, standing on your own two feet.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
I think this is you starting to realize how angry and resentful you are, living this life this whole time while he hid everything. But the truth is, like John's saying, it has no bearing. You have your agreement on what it says will happen, and that's what will happen if you take the agreement. And so he may have hidden money offshore. I have no idea. But it doesn't matter.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
I think that's a good start, and she'll let us know if she needs anything else. That's right. We're here for you, Skyler. We got you, Skyler. Hang on the line. We'll pick up and get you those resources. This is The Ramsey Show. Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And that's why we recommend Delete.me. They help with that.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
I love these reports. So far, get this, they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites, and saved me 77 hours of time. It's incredible.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
I love it. So you got to be sure to check them out. Ramsey fans get 20% off their annual plans. Just go to joindeleteme.com slash Ramsey. That comes out to less than nine bucks a month. Super affordable.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Okay, picture this. You sit down to do your taxes, but instead of stressing out, you're actually ahead of the game and filing with an affordable software that makes your computer shoot confetti when you're done. Okay, not that last part, but Ramsey Smart Tax does make filing easy and doesn't make your bank account cry. James is up next in Dallas, Texas. James, welcome to the Ramsey Show.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Right now, this is about you and your kids and your health and your safety.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Hey, guys. Thanks. I really appreciate y'all having me on. Absolutely.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Well, I'll tell you, regardless of if you have consumer debt, regardless of if you have the mortgage still left on it, I would tell you to sell it. Okay. I would not keep it as a rental and live two and a half hours away and be a long distance landlord. And the easy way to look at this is this way. If you lived in Austin, would you buy an investment property in Dallas, Texas?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And so I would sell it and be done with it. And guess what? It's also going to leapfrog you through the baby steps, get rid of this debt, put you in a stronger place financially and give you less headache and more peace.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And if you want to buy real estate down the road in the future, you want to pay cash for an investment property near you, go for it. You'll be able to do that. What kind of money will you guys be making?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Yeah, I just didn't know. Chick-fil-A is like, I mean, it's Fort Knox to try to get a Chick-fil-A. You can't just go buy one up.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And once you guys are in a better financial spot, be sure to send John and I some sandwiches. We'd appreciate it.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
All right. Francois is in Los Angeles up next. How can we help, Francois? Hey, how's it going? Great. What's going on?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
So what is the business making today as it stands with the work that you can take on?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
So after all expenses, you were making like $5 an hour.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Between the California tax and the soul tax, you need to get out of this thing.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
I think anyone would be lucky to have you. And so I'd be looking around your industry to see who's hiring and what value you could bring to them. This is The Ramsey Show.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Welcome back to The Ramsey Show. Reminder that this is the last segment for this hour unless you jump over to the Ramsey Network app. It's the only place to get full episodes of The Ramsey Show. You can download it for free using the link in the show notes or just search Ramsey Network in your app store. If you're on radio, stay tuned. The show will continue as promised.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Well, John, sometimes on the show, we don't know if the callers actually follow through with what we told them to do or what they said they were going to do. And so we had a caller earlier named Maria who was asking, hey, should I cut up my credit cards? I'm working on paying off these debts. I got most of them paid off. Is it going to affect me if I cut them up?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
We said, no, go ahead and cut them up. Do it now. She said, well, I'm on my way home. I don't have the cards with me, but I will. And I said, promise, send me a DM with a video of you cutting them up. And she delivered. She slid in to George's DMs head first. That's the kind of DM I want to see. Just cut up credit cards. So here we go. We have the clip that she sent in.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Let's play it if you're watching. Yeah, yeah. Oh, beautiful.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
This is what I want to see. There was like seven cards. Can we play that again? I think there's like seven or eight cards in this pile. Yeah, there's a huge pile. Remember she said she had nine or something like that? Oh, my goodness. There's no site more beautiful than just a pile of credit cards. There you go. It represents freedom. You're breaking free from broke. You're bucking the system.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
We love to see it. So thank you for that, Maria. All right, switching gears, John. One of the top things that you talk about is wills and insurance.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And that's just off air, just behind the scenes when we hang out.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
It's brutal. Daggering to me. And so I want to cover some top myths about wills and insurance real quick, just to clear the air, help people understand the importance of this. And it is crucial for effective estate planning. And no, you will not die sooner by talking about this stuff.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
On the background of some of these. If I was a rapper, you'd be on stage with me, hyping me up.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Myth number one. Young or single individuals don't need a will. Here's the reality. Regardless of age or marital status, if you're an adult with any assets at all, a bank account, property, a pet, a will ensures that your wishes are honored after your passing. That's all it does. Without a will, it's a mess. The distribution of your belongings is determined by the state, a.k.a. the government.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
which may not align with your preferences. They're not great at divvying this stuff out, dealing with it in a timely manner. So if you want it done the way you want it done, get a will in place. It's super easy to do. Myth number two, creating a will is super expensive.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Reality, attorney fees for drafting a will can range from $300 to $1,000, and there's way more affordable options now with online services like Mama Bear Legal Forms. They've been a great partner with us. That's who I have my will through. And they offer legit wills that are done by lawyers at a fraction of the cost. Another myth, John, identity theft isn't a significant concern.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Identity theft is a crime, according to Dwight Schrute.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Yeah, it's a growing issue. Get this, in 2023 alone, 15 million Americans experienced identity theft, and that resulted in a total loss of $23 billion. That's a 13% increase from the previous year, and I think that number is going to keep going up over time as we deal with more... digital life, the digital world with crypto and AI, and you have your info and 19 more accounts.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And so you got to get identity theft protection. And that's the next myth. People think that's unaffordable. Individual plans typically cost between 10 bucks and 40 bucks a month. Family plans range from 13 to 60 bucks monthly. Listen, your subscriptions add up to more than what it would cost to get this protection. So get that in place.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And finally, the last myth, if you can rebuild your home with cash, homeowner's insurance isn't necessary. Yikes. even if you have sufficient savings to rebuild after a disaster, which by the way, 99.9% of people don't. Purchasing homeowner's insurance is very wise. It's going to protect your savings. It mitigates financial risk, allows you to preserve wealth for other purposes.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Dave Ramsey has homeowner's insurance on his property and every single investment property he owns because for the price you pay for that premium, it is totally worth the insurance company taking that risk instead of you. So there you go. If you're unsure you have the right protection in place, we have a free coverage checkup that makes this super easy.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Go to ramsaysolutions.com slash checkup or click the link in the show notes if you're listening on podcast or YouTube. Well worth your while to get that coverage checkup. ramsaysolutions.com slash checkup.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
I would say you don't need to pause investing right now. You have a six month emergency fund. And then if you have vacation funds, other sinking funds that are for more fun stuff, I would just hold on that until we know that he has stable income beyond June. And then once he has that job lined up and he gets that paycheck, let's push play. Let's restart the sinking funds. Let's take the vacation.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
But for right now, it's not an emergency situation where you need to just pause everything you're doing, don't invest a dime, and just stack up cash. Because you have a six-month runway beyond June where your expenses are going to be covered, plus the vacation funds.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
I would tighten up the budget. I would not be living luxuriously during this time. I would look at the budget and say, we're going to live on a bare-bones budget. We're going to keep investing, but we're going to cut things where we can. We're not going to eat out as much. We're going to just live like we know this job is going to end because it will.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
And I hope that by June he's got something lined up. That's some pretty incredible runway you guys have. Like, there's a lot of blessings here that you guys are in the financial spot you're in, that the job wasn't an immediate loss, that he's getting paid through June, right?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
No, it's not bad form. The HSA, you could do that with the 401k. You're not going to be able to just lump some back in because it has to come from those paychecks each time. So you could ratchet up your 401k investing to make up for it. So if you wanted to take down the HSA for now, you could do that. And again, there's going to be severance. They have the vacation money on top of the six months.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
That probably is looking like closer to 12 months.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
I feel pretty good about it, especially the fact they have no mortgage payment. So that's where I'm like, they have more wiggle room than they think now. There you go. That puts this hour of The Ramsey Show in the books. Yeah, you weren't talking.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Welcome back to The Ramsey Show. I'm George Camel here with Dr. John Deloney, and we're going out to George in New York City. What's going on, George? How can we help? Are you with us? How's it going? Good. How are you?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
All right, well, I'll tell you the general parameter, and it's, you know, my hot take is spend as little as possible. That will still make her feel loved. There's no data that shows that a nicer ring bodes for a better marriage. In fact, the data shows the opposite.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
But generally, at Ramsey, we would say, hey, one month's salary is plenty, which is a little bit, you've saved even more than that. So are you making, what, $15,000 a month? Yeah, roughly. Okay, so I'd set a budget. If that's $15,000, hey, you do you. You're debt-free. You can pay cash, right? We're not going into debt for this. And go, here's what I'm going to do.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
I'm going to find the nicest ring I can for $15,000. Is she involved in the ring shopping?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Sure, looking at the opportunity cost of this ring. And the other piece is, you know, you got to pay for an expensive wedding now. You buy a $25,000 ring, you got to have a $250,000 wedding to match. And now we need a million dollar home. Because now we got to keep up a certain lifestyle for the people in our circle. And a pony.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
But you see where we're going with this? There's a piece of this where you have to detach from what your friends think. And if your friends care that deeply about what kind of ring you got for the woman in your life, you need better friends. God, dude, I know.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Are you guys planning on buying a home together one day?
The Ramsey Show
Cut Debt out of Your Life! (Literally)
That's a down payment for some people. Yeah, a hundred percent. What has the conversation been like with her? Cause I feel like she may have expectations at this point based on what has been said.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
Who's going to know if it's lab-grown or moissanite or made of, you know, ring pop? Who's going to know other than you two? Exactly.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
I'd go, hey, let's shop. What kind of rings do you like? And then we go, okay, that one's out of the budget.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
I don't care if he makes a dollar or a million. It has no bearing on your involvement in knowing what's going on financially in the family.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
That's a lot. It's between you two at this point. I don't think she's a vain person who wants a $25,000 ring. Nothing indicates that. But I do think your friend circle has too much influence in your life and your impending marriage.
The Ramsey Show
Cut Debt out of Your Life! (Literally)
you're going to spend on on a ring on a ring so i want you to have some more cash which means pull something but dude you do you boo yeah thanks for the call george there's no uh easy answer there it's it's largely dependent on the couple and again we're not here to tell you what you can can't do with your cash but just two knuckleheads opinions who have been married a good while now i'm uh john's going on how many years for you john
The Ramsey Show
Hope Is the Difference Between Victim and Victor
And then if he was just looking at an investment property to rent, what would the formula be for that?
The Ramsey Show
Hope Is the Difference Between Victim and Victor
I like the idea of taking the quarter million job and using that to fund his real estate ventures. Yeah. That's the move until it spins off in a flip.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
So you're in pool sales and then you're like, hey, by the way, I can maintain this for you.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
Got some swag from the Ramsey Cafe store.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
We got a shriek out of Yvonne. She was too excited to even yell. Just a shriek was perfect. That's the I'm going shopping shriek. Yeah, it sounded like she won a game show. I think that's what just happened.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
Today's question comes from Justin in Minnesota. Many people think that for a person to become wealthy, other people must lose wealth because it's a limited pie that is sliced up unequally. I think wealth can be created through innovation, for example, and therefore not limited. What is your opinion of this?
The Ramsey Show
Hope Is the Difference Between Victim and Victor
If we both placed a bet and I was right and Dave gives me his money, he lost, I win. That's where that would make sense. Exactly. But the stock market is different. If an Apple share goes up in value because the company is worth more and they make great products, nobody lost in that scenario. Exactly.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
Shut up. So it's basically I'm broke because other people are rich.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
It's their fault for making addictive products. Yeah.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
I think I'm getting hungry thinking about all this.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
The extension of this is should billionaires exist? I've seen this come about. Well, billionaires just should not exist, Dave. Apparently, once you hit 999 million, that's it. You're fine. You're a good person. Once you hit billionaire, apparently you become a terrible, awful human being. Is it true?
The Ramsey Show
Hope Is the Difference Between Victim and Victor
He just lit that fire, added some gasoline on it.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
Does she just feel like it's restrictive and it's just not a fun thing to do?
The Ramsey Show
Hope Is the Difference Between Victim and Victor
If we got her on the phone right now and we said, okay, share your side, what would she tell us that you're not telling us?
The Ramsey Show
Hope Is the Difference Between Victim and Victor
Yeah. So live your life in such a way that they want to ask you for financial advice because unsolicited financial advice, especially coming from their kid, it's not going to land. It's going to hit deaf ears. And so you've got to live your life in a way where they go, man, you're like a new person. Like your whole demeanor's changed. You're happy. You're crushing it. What's going on?
The Ramsey Show
Hope Is the Difference Between Victim and Victor
And then you go, well, I'm following this plan. It's really been helpful. And then you can tell them about your experience.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
It's like when you learn this, you're like, I got to tell everyone. Everyone needs to know, but they got to get on this. But it comes across sometimes a little bit too eccentric or judgmental or whatever.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
I like that. Line of credit to rent the backhoe. That's a new one for me, but the banker one makes total sense. It wasn't an actual experience he had. It was a guy said, I can't do it.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
Oh, so it's flexible enough that when you don't have her, you can do your coursework.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
Just us two. Well, what kind of debt is your $27,000?
The Ramsey Show
Hope Is the Difference Between Victim and Victor
Have you been making a budget every month?
The Ramsey Show
Hope Is the Difference Between Victim and Victor
Is it all expenses and very little income? Are you drowning every month? Yeah.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
That's when the old cart gets full. Yep. And you start scrolling the ex's Instagram, see what she's up to. Yeah, that's dark. That's real talk.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
Well, hey, let me, if he doesn't already.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
Can we give him every dollar premium in case he doesn't have it? Let's make sure we hook up our vet friend with that. So hang on the line. Christian's going to pick up. We'll make sure that you're not paying for every dollar premium as our gift.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
I don't think you need to refinance. You just need to sell it, pay off your debt, rent for a while, and build a foundation.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
With no debt and an emergency fund.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
If it's delayed by six months because she can't go Uber Eats a few hours a week, that's okay.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
What do you mean ended up? Like it just happened. Yeah, it just happened.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
It was entertainment, but it wasn't actionable for you. You're like, that's for other people.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
Yeah. Well done. Good job, you guys. Impressive. How old are you guys to have a paid for house at this age?
The Ramsey Show
Hope Is the Difference Between Victim and Victor
A lot of hustle, a little bit of legacy, and you guys are free. Yes.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
I'm impressed. So you've been staying at home now for a few years. How long has it been?
The Ramsey Show
Hope Is the Difference Between Victim and Victor
Wow. Did it take the weight off when you became debt free? Because I know staying at home is a luxury for a lot of people. We can't afford it. And now you guys can afford it.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
Wow! Never gets old. That transformation, because it's so much more than just money. It's not like, oh, we've got a truck paid off. It's more than that.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
And our millionaire study, they revealed one out of three millionaires never made six figures in their working lifetime. So it's not always about income. It's about what you do with it. And the earlier you get it, the better chance you have of living your best life and building wealth.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
So getting it at 30, goodness gracious, I can't imagine where they're going to be 10 years, 20 years, 30 years from now.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
So you might win a lawsuit out of this.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
If your expenses are five grand and you have six months worth, that's $30,000. How many emergencies out of pocket would be over $30,000? None. Close to zero.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
You're never going to get to unity through apathy. So you've got to have people who care about this. That's a line. You can tweet that line. I'll tweet that. Does Twitter still exist?
The Ramsey Show
Hope Is the Difference Between Victim and Victor
You've got to have two people who care.
The Ramsey Show
Hope Is the Difference Between Victim and Victor
What were these offers you passed up?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
And that's why we recommend Delete.me. They help with that.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
I love these reports. So far, get this, they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites, and saved me 77 hours of time. It's incredible.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
I love it. So you got to be sure to check them out. Ramsey fans get 20% off their annual plans. Just go to joindeleteme.com slash Ramsey. That comes out to less than nine bucks a month. Super affordable.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
What is your yearly income from all of this after all of your expenses?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
You could go work a retail job and not break your back doing this and instead get out of this completely.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Wait, so it's a money bank. Can you just go ahead and pay off the loan then? Yeah.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Better than paying $15,000 in interest that you don't have. Yes, Karen. This is get out of jail here. This is get out of jail, Kirk. I thought the damage was done and you already bought the van and did the renovations, but if you have the money sitting there... Oh, yeah, no.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Hit the rewind button. The bank gave you $31,000 at 48% interest.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Absolutely. And what's the RV worth? You owe $4,000 on it. What could you sell it for?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Okay, take your $441 that you'll save by getting rid of that, plus your Social Security, plus your part-time hours, and you can afford rent somewhere. You might need it, you know, to do what Ken said.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And that's why we recommend Delete.me. They help with that.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
I love these reports. So far, get this, they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites, and saved me 77 hours of time. It's incredible.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Today's question comes from Drew in Nebraska. He says, We're comfortable paying about $2,500 a month in rent. We would like to build this summer and potentially finish by the end of the year. Is this something we can afford? Well, Ken, this is like a common core math problem, and I don't think he's going to like the answer. I don't think so either.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
I got my mortgage calculator up here on the Ramsey website. I love it when you talk nerdy. I know, and here's the deal. You're going to have PMI because right now you guys have about 12% down, $80,000 into $650,000. Tracking? Mm-hmm. which means you're going to have to pay PMI, which will likely be at least a few hundred bucks, maybe $300, $400, or even more.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And so you said we're comfortable paying $2,500 a month in rent. That mortgage would be closer to $6,200. So that's a lot. Now, you guys make great money. Stout. $250,000, I mean, that's serious. And so if you want to look at 25% of take-home pay, let's say they're bringing in $15,000 a month or so. Mm-hmm.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Well, that's probably a $3,000, $4,000 mortgage would be comfortable for them, which just tells me it's a patient's thing. We either have to save up more down payment or we need to lower the build of the house or look in a different area. And so this isn't a, no, you can't do this. This is a, we got to be patient here. And let me tell you, the baby lives in your room for the first six months.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
So you already bought some time there. Not my room. Next up, now Ken's out. He's out on that. It's going to the nursery immediately.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
So there's one part of it, but really a baby, you can live where you are for the first year or two of the baby's life and survive. And so my take is have a little patience here and let's wait on this home purchase. Because number one, having a baby is a lot already on top of moving and building. There's a lot of moving pieces there.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And so I would encourage you guys to just stay put where you are and continue saving. And I believe I have my computer plugged in if we want to take a look at that. Oh, you're going to show people what you're doing. I thought it would be fun. I thought it would be fun to show them if I can. I don't know that I'm capable.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
No, I can't see. It's too far away. All right. There you go. So private mortgage insurance, the property taxes, home insurance, HOA dues. So you can play around with the numbers on this real estate mortgage calculator to figure out, hey, how do we get this within 25% of our take-home pay, which, by the way, is after taxes but before other deductions. Yeah.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
So we're not talking about after the 401k, after the health premiums. Just take out your taxes, state and federal, and then see what your take-home pay would be and aim for a quarter of that. And again, it's just a parameter. If it's 26%, we're not going to yell at you. It's just a parameter to make sure that you can get through the other steps. But congrats on the impending baby.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
That's a whole lot of combo meals. Yeah. There's a lot going on here. Was she sneakily going behind your back to McDonald's? Yeah. And not telling you?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Yeah. Well, a lot of people have these golden handcuffs, Ken, because they refinanced or bought in 2020, 2021, and they're going, well, I got a 2% or 3% rate.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
So is she paying every single bill in the household?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
So as you look at the budget and the bank account, where would you say most of this money is disappearing to?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Okay. And are you saying that you feel like she's overspending on groceries? Yeah.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And is there a reason? Have you asked her, hey, what's going on with the groceries here? Can we change our grocery store? Are we wasting food? How can we do better in this area?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
But even then, are you guys taking home $9,000 a month? What's your take-home pay?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
That feels awfully low for you guys to be making gross close to $130,000.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Even at $1,000 in groceries, you guys still have $5,000, $6,000 of random other bills, and so I think there's more to it.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Okay. So you have your fun money. You've got John's fun money, $150. You've got groceries.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
But there's still a lot of money to be accounted for in here, and this is going to be a conversation with you and your wife sitting down with accountability saying, okay, if we need $700 in groceries for some reason, that's the limit. And once we go over that, it's over. Yeah.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
If you've actually tracked it against the budget, the budget will tell you very quickly where your money is going.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
I think you're telling the truth, but I think she might be telling the truth. What if little Junior does need all this stuff? He's a year old. He doesn't need anything. I don't know what he needs, but, you know, dad's at work and running.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Did she know that it was not tied to the cards that you were aware of?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
So you can't raise the price. So they locked in the price at $1 a needle, and now you guys are getting charged $1.10, and so you're losing money on the contracts, essentially. Right.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Well, and there's the retaliation tariffs from Mexico that now affect U.S. businesses.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
I think until leadership is actually saying, here's what's going to happen, and hey, phase one, here's what happens. Phase two, layoffs. Here's who goes. And, you know, even Ramsey did this during COVID. Our team communicated, leadership said, here's what's going to go down if things take a shift. And then you kind of know the game plan.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And so I think there's not enough information right now to go, I'm going to pause. Because this could be... a year long. This could be three years. We don't really know how short-term this is. And if it was a short-term storm, I'd say, let's pause and save up. But if this is going to be four years of who, will they or won't they?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And can you guys, will you guys, you know, change suppliers next month and then this will be solved in 90 days?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Yeah, what's the $15,000, $16,000 outside of the student loans?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Okay. So how quickly would you get out of debt? If you just stayed on the Ramsey plan, how quickly would you get out of debt at this point?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Three more years to pay the rest of this debt off?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
That feels like a long time based on, I mean, what's your household income right now? I think it's like 120. So 120 grand and you have another, what, 40, you have 51 grand left in debt? So why can't, out of that 120, you take 25 and be done in two years or less? I feel like that's even conservative. So I'm thinking we get really intense about this and try to knock this out very quickly.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And if you do get wind that, hey, layoffs are imminent, they are happening, I would then pause and save up. But right now, I don't know that there's enough ammo to go, we're going to push pause on life and just stack up cash.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
I just feel like everyone's on edge, and so leadership is preemptively communicating. Now, his is legit, where their business is affected directly and instantly.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Not owing people money, having an emergency fund, that's the goal is getting to that financial piece to where no matter what's going on in the headlines, your family's going to be okay. Yeah. So in this case, would you tell our friend Isaiah, hey, I might be looking for a different job. I wouldn't be doing that.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And it's a good lesson in diversification for business owners out there. You can't just rely on one supplier because if something happens to that supplier, prices, they shut down, whatever it is, COVID, now you're stuck and your whole business relies on that. So it's important to have backup plans.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
How long has it been since you've been removed?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Okay. Yeah, it'll take longer than that for it to fall off the report. It's going to be more like a month or two. And you can also contact the credit card issuer. You can also go online and file a dispute with the credit bureau saying, hey, I'm not a user on this account. Please remove it from my report.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And so you can do a few things to just kind of check in on it and expedite it, but it should be falling off here shortly. Okay.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Well, I think number one, we have to realize that this is not a, you know, you're not the chaperone here. You are as guilty of making a lot of stupid decisions as we all are. So I think this needs to, you lead first by going, hey. Yeah. I have not done a good job handling money. I haven't done a good job leading us in this area. I want to work together on this.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Did you see anything else on your report, or was it just that one card?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And you can also check your credit report weekly for free at annualcreditreport.com. And so you can check back in on this. I might check every two weeks or so. You don't have to be like on top of it, but I wouldn't worry about it because you're not in debt and you're off the card. And so the risk is gone. It's just the annoyance of having this thing fall off.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
That's a weird thing to do to your grown adult child. I can see it. Was she worried about you?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
It feels like you've got to go through a few steps to get an authorized user. I know.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Here's what that's going to look like. Do you agree? We're going to meet weekly for a budget meeting. We're going to track every transaction. There's going to be nothing hidden. Everything's got to be on the table if this is going to work. Are you in?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Do you feel the unity and teamwork in that conversation versus a, well, I'm taking over because clearly you can't be responsible for, you know, very different condescending tone on that second one. Yes. And so if you want to get her on board, it's going to start with you leading with empathy and creating a vision for what this is going to look like. And then her agreeing, yes, I agree to that.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
You're a one-car family right now?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
We've gone backwards here financially. So I would look into selling the truck. I don't know if you can convince them of that. And you don't need a new car. You need to buy cars that you can afford in cash and keep it that way for the rest of your life. So this is going to be a come-to-Jesus moment. But it's not going to be, well, you got a new car, so I get a new car too.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
It's going to be, hey, we need to figure out a plan to become completely debt-free. And that means selling your truck and buying two cars in cash and selling the rest.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Great. Now we can actually set some accountability based on what we agreed to in the past.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
That's right. If you fall for the trends, you fall for the traps.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
So easy to do what? To go into debt?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Okay, but what did you actually, what happened? What did you take out debt for?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
That sounds like it's on you. I don't think you fell. I think you jumped voluntarily.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Oh, here we go. Dylan, we got to be honest with each other if we're going to make this relationship work. Is that fair?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Have all credit cards been cut up and closed?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Okay. So how much total debt do you have?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Okay. And what kind of debt is the 30? You got 11 in the personal loan?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
All personal loans. Why is that? Interesting. Did you not? Yeah, but like a credit card, did you not have any credit cards? I'm just curious why you went personal loans all the way.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Okay. Okay. He draws the line there. You draw the line. So what's the interest rate on all this debt?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
I'm dizzy. Why did you darken the door of a payday lender? Oh.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
His dogs are barking. I'll tell you that much.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Okay. Okay. Well, here's the deal. We can't solve the current debt if we don't stop going into debt. And so can you make a truce with me and everyone listening right now that you are not going to touch another diamond debt?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
You're not going to go. You're never going to be in the parking lot of a payday lender ever again. Agreed?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Okay. Because right now it's like the hot light is on at Krispy Kreme and you can't help yourself but stop in and get a few dozen. And we have to stop. We got to get to the root of what's causing that. I don't know what, if it's something you're running from, if there's a vice in your life, but a guy making 85K in Oklahoma should have a pretty good life. Don't you agree?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
If I'm the wife and I see you still with your credit cards open, I'm going, whoa, whoa, whoa, butter. How are you going to be over here telling me how it's going to go, but you won't even cut up your own cards?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Like if you told 15 year old Dylan, like, hey man, one day you're going to make an $85,000. And here you are going into debt instead of being able to just save up and pay cash for things.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And you're using these loans as therapy to try to go, if I can just have this as a coping mechanism and buy more stuff and take more trips, I'll distract myself.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Well, we can hit the financial piece and I'll send you some resources, including my book, Breaking Free from Broke, that'll walk you through all of this and then give you some encouragement. We'll put you through Financial Peace University if you're willing to join a local class and
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
and go week after week for nine weeks with a group of people who also have made dumb money decisions, would you do that?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Awesome. Okay, so after the call is done, we'll get you on with Christian, and he'll hook you up with those resources. Let's talk about the debt for a second. What is your smallest current balance?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Okay, and I assume you've got nothing in checking and savings right now.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
But you're still, you're living just down to the bone, down to the wire every single week. So the way to get out of this is we need to cut our spending down to nothing and increase our income. So can you work overtime? Can you take on side hustles in order to get your income up in the short term?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Great. So here's the deal. Once you have that $500, we're going to just throw everything we can at that next smallest debt because the problem with these payday loans is they grow like a cancer. because of the interest, as you've seen. It's hard to get out of them. It's why it's a cycle that we see a lot of low-income neighborhoods.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
It's why payday lenders sit there, because they're willing to take your $100, and they're going to get $100 out of you by the time the month is over. And so you've got to attack these things aggressively to get rid of them. And if you do that debt snowball method, you can get out of $30,000, make an $85,000. It's going to take a lot of sacrifice.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
It's probably the next 18 months of your life is going to just look like work, work, work, work, work, no time to spend, no time for trips. Okay. Do you have anything you can sell? Have you bought any toys, items that you could sell to help get rid of this debt? No. You owe nothing to your name?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Okay, good. Well, that's the plan, man. Hang on the line. Christian's going to pick up. We'll send you a copy of my book, Breaking Free from Broke. We're going to send you Financial Peace University, go through all nine lessons, and get some professional help where you can get to the root of what's going on here.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Because I agree with Ken, if we don't get to the root of it, we're just going to stay in the cycle.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
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Make Decisions Based on Guidelines, Not Headlines
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The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
I mean, it's okay to admit that. I know it hurts. I've been fired before. It's the worst feeling in the world. But it wasn't a layoff in terms of, hey, business is struggling and we can't afford to keep you. It was, you can't do this job. I guess you're right. And so it's okay to own that, but we've got to figure out what's next for you.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Well, you have money. The number one rule is don't go into debt for it.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Yeah, so, okay, let's say we buy a $7,000 car. Yeah. What's wrong with that?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Well, long-term is irrelevant right now. This is not the car you're going to be driving for the next 15 years. That's right. But my last car before the one I own now was a $6,000 09 Civic. And so by the time I got it, it was already 10 years old. And so it's okay to drive something that's older. And here's the deal. Get a pre-purchase inspection from an independent mechanic that you trust.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
That'll cost you $100, $150. And then you know you're not buying a lemon. You know exactly what you're getting into. And then buy it from a reputable dealer or person. Don't get scammed in the deal here. Make sure that all the pieces are lining up. Meet in a public place if it's not with an independent dealer.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
But you can go to an independent dealer right now in the Nashville area and find cars for $7,000.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Let's give him every dollar premium for a whole year.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
But here's what you don't do. Don't go to the new dealership car lot and go, hey, can I get a $7,000 car? They're going to steer you into the nicest, newest cars and go, what can you afford for a payment, young man? Oh, we can make that work, $400 a month, sure. That's what you've got to go in knowing exactly what you're doing. Go in with a check.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Say, I've got $7,000, and I'm leaving here with a car. And if they tell you no, go to the next dealer.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
It'll connect to your bank account. Here's what you're going to do. Cut up the cards, and you can set up auto pay on your debit card. Yeah. So that's going to be a little bit of homework for you to do. And she can sit there and you can walk her through it. So she has total awareness about here. Here's where all the bills are. Here's how I pay them.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Ken loves nothing more, Elijah, than researching cars. So you came to the right place. But you're doing the right thing. The next piece is no interruption of income. So how can we get you a job ASAP this week to where you're not going with $0?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Bring her into it instead of saying, hey, I'm going to handle it. You step away. Let her be a part of it.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Love a Honda. I also, I warned you that you started, said chin up, eyes up, hopes up. There's your third one. Come on, bring it in.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
I don't know. A smize? Yeah. What's that? I think it's what Tyra Banks invented. I think that's what Dave was aiming for here. It's not a real smile? Yeah, we have the picture here if you're watching on YouTube.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Yeah, it's not a teethy grin. No. It's just kind of a squinted smile. I know what I'm talking about.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
and you're sure that's your dream home yeah when you said forever and those are red flags to me because as a millennial we've moved like four times since we've been married and every next home is the dream home
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Sadly. He takes care of them, but yeah. Sadly true. Okay.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
How's that, George? So you're on the cusp of now getting into that baby step 3B, which is saving up a down payment. Yes. So even then, this even starter home, it wouldn't be for another year or two. Yeah.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Well, I feel like maybe we got to start eating at home and cooking together as a family.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
All of your bills only add up to $30,000 a year?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
So let's say $4,000 a month is your expenses, and you're bringing home $7,000. So you've got $3,000 spread that you could sock away, maybe $3,500 if we get tight, right?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
So that's $42,000 in a year you could save up. So in a little over a year, you guys will have $50,000 saved up, and if you do it in a high-yield savings account, that'll help speed it up a little bit. And so let's start talking a year from now, we're going to start home shopping for a $250,000 house. Sound good?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Because you hit the nail on the head. It's a moving goalpost. That $400,000 home five years from now is going to be a $520,000 home. And so I would rather you get your foot in the door with a very reasonable mortgage payment, 25% of take-home pay on a 15-year fixed.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And then who knows, four years from now, if you keep doing 50 grand a year on that mortgage, you're going to knock it out in four years. Do you see the math on that?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Yeah, now you're set. And that's what my wife and I did. We rolled over the 100% equity in our townhome that we had into our next home, which then gave us a very reasonable mortgage payment, and then we paid that off fast. So do you see how this kind of snowballs and allows you to not jump into too much home and add stress to your life?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And every home is a temporary home until the Lord takes us to our eternal home. Isn't that right, Ken? Wow. Are you writing Christian greeting cards all of a sudden?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
So that might be a $350,000 home five years from now and it's paid for. That's right.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
now at your age is you are so far ahead of the curve a lot of people aren't buying their home i just saw the stat ken it's moving and moving and moving now people are entering home ownership into their 30s really instead of their early 20s or mid-20s like it was back in the day because of home prices yeah and because of debt it's holding them back from buying a house so the fact that you guys are debt free got the emergency fund the down payment's going to be there you're not biting off more than you can chew that's right that will help you build wealth just moving slow and steady that's right
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Well, Zachary, I just think if there's a commitment that we're both not going to eat out, it changes the game. And so then there becomes an inherent accountability. And so if you guys get on that budget every single week, sit down, track your transactions against your one checking account that is shared, that's going to create some momentum for your money and for your marriage.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
We had one little tiny bathroom. If you opened the door, you'd hit the person on the toilet. That's how small this bathroom was that all four of us shared growing up. I resonate with that.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
But now the standard is, well, every kid's got to have their own bathroom. Boundaries. Privacy. We've lost our mind. We've lost our ever-loving mind.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Hey, you're still here? What are you doing? You do know that the rest of today's show is playing right now over on the Ramsey Network app, right? All you got to do to finish the episode is search Ramsey Network in the App Store, Google Play Store, or just click the link in the show notes to download the app for free. Yep, you heard me right, for free.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Then right there on the home screen, you can watch the rest of today's show. Bada bing, bada boom. All right, I'm getting out of here. Enjoy. We'll see you on the app.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
I think this communication is only going to help the marriage.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Most of your payments are going to interest, essentially, not touching the principal. How much was the loan for?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
I've never heard anybody say that before. That's an extra $15,000 in interest alone.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Oh, competition. You don't want to give away your Shark Tank idea here. Well, I hire mobile groomers, so I'm just curious because I pay these people and I understand how the business works.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
How much could you sell this thing for to someone else who does mobile grooming?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And what's your total debt that you owe? Everything but the mortgage.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
No, just everything, all your debt. Because you said you had other debt, and you took out this debt to try to pay off some other debt. So what is your total debt load right now?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
So you're living in an RV right now?
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
We all have a plan until life punches us in the face.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
Is the brick and mortar business profitable? Right now, no. So here's what it sounds like. You're jumping from unprofitable to unprofitable to unprofitable, hoping to strike gold at some point. And instead, you just keep digging a hole by maxing out these cards and jumping to another piece of debt to try to cover the other debt. And so we're trying to stop you from playing the shell game.
The Ramsey Show
Make Decisions Based on Guidelines, Not Headlines
And number one, create a profitable business. And two, get out of debt. And that might mean a clean slate where you get rid of this mobile grooming truck, you sell it, sell the RV, you rent for a while, get rid of all your debt, create a foundation, and then start slow and with cash.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And that's why we recommend Delete.me. They help with that.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I love these reports. So far, get this, they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites, and saved me 77 hours of time. It's incredible.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I love it. So you got to be sure to check them out. Ramsey fans get 20% off their annual plans. Just go to joindeleteeme.com slash Ramsey. That comes out to less than nine bucks a month. Super affordable.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Okay, picture this. You sit down to do your taxes, but instead of stressing out, you're actually ahead of the game and filing with an affordable software that makes your computer shoot confetti when you're done. Okay, not that last part. But Ramsey Smart Tax does make filing easy and doesn't make your bank account cry.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Ramsey Smart Tax is a 100% accurate software that's honest about its pricing and is backed by a company who's been in the business for over 50 years. So go to ramseysolutions.com slash smart tax to take advantage of early bird pricing and stress-free filing. That's ramseysolutions.com slash smart tax.
The Ramsey Show
Don't Chase Money, Chase Freedom
I love it. Just watching Dave unpack a formula, I don't know, that's my new hobby, I guess. But it really is. It's stuff we've never talked about on this show, mostly because you thought it was too dry and boring.
The Ramsey Show
Don't Chase Money, Chase Freedom
The algorithm in your social media feed will go, man, you should own 20 properties by the time you're 26. And so the goalpost is always going to keep moving until you decide.
The Ramsey Show
Don't Chase Money, Chase Freedom
You got a flat tire right now. You got the money part down. Let's focus on spiritual growth, physical health, social relationships, family. That's what's going to give you a lot more purpose on top of doing what Dave said and giving and serving.
The Ramsey Show
Don't Chase Money, Chase Freedom
But then people went, no, no, no, Dave, we actually want to know, how do you select a mutual fund out of all the investment options? We're going to cover that. It's too nerdy. How do you calculate the cash-on-cash return to know if the investment property is worth it?
The Ramsey Show
Don't Chase Money, Chase Freedom
Now, you mentioned this side hustle of doing real estate that helped to pay it off. What were you doing?
The Ramsey Show
Don't Chase Money, Chase Freedom
Sigh of relief from the kids. We don't have to take care of dad in his old age. He's going to be just fine with his big old nest egg and paid for house.
The Ramsey Show
Don't Chase Money, Chase Freedom
What's next for you? What are you doing with the free mortgage payment?
The Ramsey Show
Don't Chase Money, Chase Freedom
Yeah. I love it. Get to use your outdoor voice indoors. That's the joy of the debt-free scream.
The Ramsey Show
Don't Chase Money, Chase Freedom
Yeah, patience and delayed gratification. I mean, you heard him saying, I've lived on less than I made. I put off things and it's worth it. I mean, six years feels like a long time. It's going to happen. It's going to fly by. You're going to be 64 at one point or another. So do you want to have a paid for house or do you want to have lifestyle creep take over and you've got a pile of debt going?
The Ramsey Show
Don't Chase Money, Chase Freedom
I hope I can retire one day. That's normal in America.
The Ramsey Show
Don't Chase Money, Chase Freedom
No. In our millionaire study, we found what average millionaire happens at 49 years old and they pay off their house in 10.2 years. That's the average. And so he probably fell right in there. He's a little faster on the mortgage payoff, but it's really not rocket science, and it's really not that impressive when you look at what was going on there.
The Ramsey Show
Don't Chase Money, Chase Freedom
They just consistently put money away, consistently made extra mortgage payments. There was no rocket science.
The Ramsey Show
Don't Chase Money, Chase Freedom
And we got a gift for him. Two every dollar subscriptions that he can use or give to someone else to kickstart their journey.
The Ramsey Show
Don't Chase Money, Chase Freedom
Today's question comes from Shelby in Idaho. My husband and I have been married for 15 years and have two children. We're on baby steps four, five, and six. Last year, he was diagnosed with leukemia and underwent chemo and a bone marrow transplant. My husband's estranged sister was a perfect match, which probably saved his life.
The Ramsey Show
Don't Chase Money, Chase Freedom
Now she has gotten herself deep in debt trying to flip houses and rent out Airbnbs and has started asking us for money. We already gave her several thousand dollars last month. How should we respond? Whew.
The Ramsey Show
Don't Chase Money, Chase Freedom
Yeah, you can't compare the health crisis that he went through and go, hey, the quid pro quo is I support financial misbehavior for the rest of my life. That's not going to work. So it's going to be a tough conversation. And you can't save her. Yeah, and it might hurt the relationship.
The Ramsey Show
Don't Chase Money, Chase Freedom
This vending machine is going to keep eating your money.
The Ramsey Show
Don't Chase Money, Chase Freedom
Yeah, and if you want to save up a little more and do this in six months, that's fine, too. You just got to weigh it out and go, we got to get a little less house. But mortgage payment is probably going to be about $1,000, so it's reasonable for your income.
The Ramsey Show
Don't Chase Money, Chase Freedom
Yeah, you're one of our top performing episodes, so congrats.
The Ramsey Show
Don't Chase Money, Chase Freedom
And it was her idea? She came to you and said, hey, listen, you know what happened. I'd love to give you this money too?
The Ramsey Show
Don't Chase Money, Chase Freedom
Okay. I think you need to drop the guilt for taking it.
The Ramsey Show
Don't Chase Money, Chase Freedom
Right. Correct. Here's my take. We're Southern Baptists over here. We call that blocking a blessing. You don't want to block a blessing. That's what you're doing right now by not allowing your mom to give you this money.
The Ramsey Show
Don't Chase Money, Chase Freedom
You're the prodigal son's brother, right? Prodigal son misbehaved. Dad comes home and says, hey, party at my house. Prodigal son's back. And now you get to come to the party too and enjoy the feast. I see no problem with this. Okay.
The Ramsey Show
Don't Chase Money, Chase Freedom
Regardless of my opinion of going $70,000 to debt and then having to get out of jail free card, the fact that she wants to give you this money has no bearing on what happened there.
The Ramsey Show
Don't Chase Money, Chase Freedom
And if you stay the course you're on now, how long would it take to pay off the debt?
The Ramsey Show
Don't Chase Money, Chase Freedom
I like it. First time she's going to be debt-free in her adult life. It's going to taste different.
The Ramsey Show
Don't Chase Money, Chase Freedom
Okay. Let's talk about your spending here. You've got no money to spend. So what are you spending your money on and how much?
The Ramsey Show
Don't Chase Money, Chase Freedom
Hang on the line. I'm going to send you a copy of my book, Breaking Free from Broke. Read through the whole thing, especially the Spending is Self-Controlled chapter. I think it's going to help you get control of this because you're too young to be making dumb decisions, which is when we all made them. But you can be set free of this.
The Ramsey Show
Don't Chase Money, Chase Freedom
So you pre-decided that you were going to be done with debt completely before you were 30. That's right. Did you have a set goal to pay it off in a certain amount of time? We did.
The Ramsey Show
Don't Chase Money, Chase Freedom
I bet a couple of engineers had a plan. Oh, of course. Yeah.
The Ramsey Show
Don't Chase Money, Chase Freedom
That's incredible. So parents out there are going, I hope this sticks with the kids. Hey, they're taking it all in, even if they have their arms crossed the whole time. They can't not remember the time when Dave said, debt is dumb, cash is king.
The Ramsey Show
Don't Chase Money, Chase Freedom
You know, ignorance was bliss, and you go through that curriculum, and now you know too much about car loans and budgeting and saving, and you guys are living proof this stuff still works. Yeah, it's amazing.
The Ramsey Show
Don't Chase Money, Chase Freedom
And we got two every dollar subscriptions for you. You can use those or pay it forward to someone else and get them started when they go, wait, what do you mean a no score? What are you smoking, man? You can just check this out.
The Ramsey Show
Don't Chase Money, Chase Freedom
What do you make, Angela? What do you make from your job? 10% is $300,000, by the way.
The Ramsey Show
Don't Chase Money, Chase Freedom
Amazing. Now if we could just clone them and put them all over America, this country would be in a different place, Dave.
The Ramsey Show
Don't Chase Money, Chase Freedom
That'll definitely help. Instead of you being in debt for 10 years, we can speed this process up by selling this rental property. You got any savings, anything else you could sell?
The Ramsey Show
Don't Chase Money, Chase Freedom
So let's free up money every nook and cranny in your budget, and we're going to get you on a budget because that's going to be the real path out of here regardless of what happens, getting your income up, getting your expenses down. But I'd love to see you debt-free in under two years. You think you could do that if you got in tents?
The Ramsey Show
Don't Chase Money, Chase Freedom
What kind of law are you doing? Is it the specific niche that you're in?
The Ramsey Show
Don't Chase Money, Chase Freedom
Everyone should go watch Borrowed Future on our YouTube channel. It's our documentary on the student loan crisis, and it explains all of this beautifully.
The Ramsey Show
Don't Chase Money, Chase Freedom
Hey, you're still here? What are you doing? You do know that the rest of today's show is playing right now over on the Ramsey Network app, right? All you got to do to finish the episode is search Ramsey Network in the App Store, Google Play Store, or just click the link in the show notes to download the app for free. Yep, you heard me right, for free.
The Ramsey Show
Don't Chase Money, Chase Freedom
Then right there on the home screen, you can watch the rest of today's show. Bada bing, bada boom. All right, I'm getting out of here. Enjoy. We'll see you on the app.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Let's play this through. Let's say they continue financial misbehavior and blow through the $80,000 that you left alone, and now they're broke, living off Social Security, barely enough to feed themselves. Are you okay not taking any rent and just floating their bills for the rest of their life?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Okay. Just know that you're not going to evict your own parents if Bush comes to shove. And so I would rather just not get involved and say, hey, mom and dad, let's find you a place that you can afford to rent with the money that you do have. I don't want to artificially prop up their life because that's going to turn into entitlement on one side where they just go, well, Steve is a nice guy.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
He's going to cover our expenses forever. And so anytime we need something, we're just going to go to Steve. It's now Bank of Steve. Yeah. Or it's resentment, more financial misbehavior. You resent them. You want them out. You regret getting into this. And now you're stuck in a conundrum because now you're the landlord. Right. So when they don't take care of the house, it's on you to fix it all.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
And so if you're saying you're financially able to do that and willing to for your parents, I got no problem with that. Just know that what you're getting into and don't couch it as, well, this is an investment. I agree. Sure, you'll get it one day.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
I'd rather you help them sell this thing and help them downsize into a place with cash. Me too. And you stay out of it and teach them how to manage the money they do have coming in. That's the better scenario to help them live an independent life where they're not reaching into your purse strings every day.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
I'll just say this. Not financially, but emotionally.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
All right. Who passed away?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Wow. Was this recent?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
That's a good place to start there. And then, you know, the first order of business is take a deep breath. This is a lot of money and we don't want to, you know, manage it wisely and steward it wisely. And most people, you don't, you're not the type, but most people would go, whoo,
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Windfall, time to go get some toys, give some money, buy this, buy that, and just pausing for six months and just storing that money in a high-yield savings account. Just let it sit for a little bit before you make any decisions as wise. And then filtering it through the baby steps, your house sounds like it's next if that's your only debt remaining.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
And I know it's a low interest, but I don't think we're worried about interest rates at this point of our life. You're about to have so much wealth, you're going to free up a mortgage payment that you can now use to invest. And so it's going to be a wash, but the peace of mind will be totally worth getting rid of that debt, regardless of the interest rate.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Awesome. So you guys are already millionaires. So this is, you know, this is a lot of money. You're doubling your net worth overnight, essentially. And so now we go, okay, what does the future look like as we want to build wealth and leave an inheritance to our children? And what kind of life do we want to set up for ourselves? You know, what does retirement look like one day?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
And what kind of work do we really want to do now that money is not an issue? And so there's a lot of life changes that could be happening. Are you both of you working right now?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Okay. Do you guys have kids?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Okay. Awesome. So looking at this from a high level perspective, we want to go, all right, we got a primary home paid for. Let's make sure that our retirements are fully funded. We're maxing out retirements. Now we're going to go the kids college. Let's fund that. Let's put a portion of this in a 529 plan. Then it becomes, do we want to invest in real estate or just mutual funds?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
And how do we look at giving? Let's increase that. Let's increase our you know spending a little bit as well and enjoy some of this money so a good way to look at it is just not getting a flat tire where you're hoarding all of it in savings or you gave it all away or you spent it all and didn't save any of it and so it's a good way to just filter it through giving saving and spending goals yeah
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
So it just leapfrogs any goals you had and probably time to reassess and get a team of experts on your side. If you don't already have a good financial advisor, jump on RamseySolutions.com. Same for a tax pro. You mentioned an accountant. If you like working with them, that's great. An estate attorney would be wise at this point. Maybe a real estate expert if you want to get into real estate.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
And then make sure that you have the right coverage now. Because you've a bigger target on your back if something were to happen. So I would reassess all of your insurance coverage. You definitely need an umbrella insurance if you don't already have that.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
And our friends at Zander can help out with all of that to make sure that you are maxed to the gills on your home insurance, your auto insurance. I would get all of the liability coverage way up. That's a great call.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
As you gather and build wealth, you also need to protect the wealth that you're building, and that's where all of the different insurance products come into play. The right ones, not the crappy ones, and that's where our friends at Zander will steer you correctly.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Yeah, five years would be the minimum for me to be investing in the market versus a shorter term goal where you have your money parked in a high yield savings account because you increase your chances of making money versus losing it when you start to extend the timeframes out.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
The bigger question is why not just pay extra on your mortgage and then sell the property, roll all the equity over to the next house?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Okay. Well, I'll tell you what my wife and I did. We got a townhome. At the time, it was $300,000. The loan was, I think, $165,000. And we just aggressively attacked that, and we got it paid off and rolled 100% of the equity into our next home, and we just kept doing that. And so I would encourage you to do the same, to create a forced savings plan, because when you don't, here's what will happen.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
You'll call back and say, hey, hey, we're thinking about keeping this townhome as a rental and taking on an even bigger mortgage for the next home with very little down. That's the temptation that happens when you don't just force the savings plan into the mortgage. So that's the way I would do it.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
I didn't realize that.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Yeah. You're a little whiny, a little whiny. They love the idea of keeping it as the rental. That's always the move. I know. I'm telling you.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
I just think there's a time and place for it. I think you're right, by the way.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
It lives rent-free in my head.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
I do, actually. Thank you.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
When purchasing term life policy, the monthly premiums are affordable. However, while still paying off debt with gazelle-like intensity, it seems that those premiums should be used to get out of debt faster. Any advice on, quote, adding a monthly cost in the form of a premium while also trying to get out of debt quickly? Yes. Lots of advice here. Namely, this is not an added cost.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
This is insurance. And this protects you as you get out of debt. It protects you as you build wealth. So the same would go for your health insurance. We would never tell someone to forego health insurance and auto insurance and homeowner's insurance to get out of debt faster. These are prerequisites to life as an adult.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
You need a will, you need term life, you need auto, you need home, you need health. All of these things are requirements. And therefore, here's what you do. You get the term life policy through Zander. Let's say it's $240 per year.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
You can set up a sinking fund line item in your budget of $20 per month that gets added in there so that by month 12, you have $240 saved, ready to pay that yearly premium if that's how you pay. That's how I do it for my family, and that's how I would recommend you do this as well. And I don't see insurance.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
I used to be very negative about insurance, Ken, when I was younger and go, oh my gosh, I got to pay the insurance premium. Now when I see that life insurance premium come through in particular, I just go, thank God. Thank God that my wife is going to be okay. Because you got two special ladies in your life.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Yeah. And if you want proof of how important this is, go listen to some of the Ramsey show calls where a spouse passes away without life insurance. Now they're really in alerts trying to pay off debt. Losing that income. And so that's the goal of term life to replace your income.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
If something should happen to you for the people that you love, you want 10 to 12 times your income and that policy 15 or 20 year term policy should do it because if you follow the Ramsey plan, you'll be self-insured by then paid for house. You've been investing for 20 years. Your family's going to be okay at that point.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
But in the meantime, you need to transfer that risk to the insurance company, and Zander is the folks we trust for all of those. So go to Zander.com and get that done and start your EveryDollar budget and add it as a line item and thank me later.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Because he signed the title over. What was the agreement when you guys made this deal? Was it, hey, I'm going to pay you this much money eventually, or what?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Well, you got five years. Do you have any other debt?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Okay. So based on the $200,000 and you paying off $230,000 in 18 months, is there a similar trajectory? Could you pay off the $240,000 in less than 18 months?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Yeah, exactly. Plus, like Ken's saying, with your future profits coming in, instead of adding to the giant pile you have, let's also add that to your debt.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Speed this thing up. He pays it off in a year. It's done.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Just put all of your debts in the debt snowball. It's all tied to your name, so there is no business debt versus personal debt. You're just going to snowball this thing and be done in a year, year and a half.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
But he paid for it in full?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
All I keep thinking of is you used the word magnanimous earlier, and I can't stop thinking about it.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Was this a loan? Did he say, hey, I'm going to need this money back, but you're going to pay the insurance. It'll be in your name. No, there's no loan. It was just essentially a gift.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
You have spent your whole life trying to avoid feathers getting ruffled.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Well, they need to force, the decree would then force a refinance in order to get your name off of it. And so you need to go, it's not going to be fun. You've got to go back to the courts and say, here's everything on paper, which, by the way, is now the law of what he has to do. And he's not doing it. And as long as you keep letting him not do it, he's going to keep not doing it.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
And so I would not have as much grace as you. I'm going to fight this on behalf of my own family and my own financial future.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
He is not entitled to the payout. If you want to give him the $3,500 that he put into it, that's fine, and let that be off your conscience. But I'm not going to give him a check for $10,000. While you're out of a car, you're going to be back in the situation again. He's going to buy you a car that you're going to have to maintain and own, yet he has these weird purse strings attached.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Okay, picture this. You sit down to do your taxes, but instead of stressing out, you're actually ahead of the game and filing with an affordable software that makes your computer shoot confetti when you're done. Okay, not that last part. But Ramsey Smart Tax does make filing easy and doesn't make your bank account cry.
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Getting Your House In Order Is The First Step To Financial Success
Ramsey Smart Tax is a 100% accurate software that's honest about its pricing and is backed by a company who's been in the business for over 50 years. So go to ramseysolutions.com slash smart tax to take advantage of early bird pricing and stress-free filing. That's ramseysolutions.com slash smart tax.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Well, I don't think anyone's in the wrong here. I don't think anything is on fire. I do think we might need to get to the motive and heart behind it, and then we can look at math and go, okay, what mathematically should and would happen? We pay off the mortgages, we free up those payments, which we can now invest, right? So there's one side of it. It also reduces your risk, gives you more peace.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
I don't like this.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
We don't know what the next three years hold. I hope it's all sunshine and rainbows. The world is a wild place, right? We don't know what's going to happen with the tenants and all of that. And so it's going to give you a little more peace and less risk. On the other side, you have the stock portfolio. Is this your entire nest egg?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Just in a taxable brokerage account? And what is it invested in?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
And what are the total mortgage payments that you're making right now?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
So if you take $3,800 a month and invest it instead, you're going to be okay from $41,000 to $60,000, right? Do you see his point? I'm playing devil's advocate to show you the other side. On top of the interest savings of not paying interest on these mortgages for the next three years, having them paid for.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
So again, I don't think there's anything wrong with following your plan and going, hey, we're going to pay these off in the next three years. I think it's a great plan to have a fully paid off rental portfolio. You guys have done really well. Nothing is on fire. Nothing's going to put you in crazy risk. But I can see his point, and I don't think it's as bad as you think.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Um, I know you want a nest egg portfolio. The rental properties are part of your nest egg. You have 24 paid for rental properties. If you need money, you know where to get it either from the cashflow or you can sell one.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
What is the total? All 24? What are they? What's the value?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
So is there a compromise where maybe we go, all right, once every year, I'm going to cash out enough to pay off one mortgage. Split the difference.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
There we go. I think that makes him feel a little better, and it does reduce your risk. It causes you guys to make a little more progress than you would have, and it causes you to slowly deplete this portfolio. And remember, you're going to free up a payment that you can now invest on your own volition as you please. That's right. And so either way, this is a good problem to have.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
You guys are doing really well.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
You guys are in really good shape. I am the least worried about this, but I do think just some compromise would get you guys to an agreement and cause you to move forward because this is living in your head rent-free right now. It doesn't need to. No.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Thanks for the call.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
You know what really bothers me?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
The amount of times people send me just Kirkland signature related content would blow your mind, Ken. Well, you've made a big deal out of it. That's my fault. That is on me. So there it is. I love it. Can we get to a social question? Do we have time for one?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Go for it, go for it. Johnny from TikTok asks, during what point in the baby steps is it best to start a business? What say you? Baby step. At what, during what point?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
People ask me all the time, George, what's your number one money-saving hack? I'm glad you asked. Nothing makes me happier than helping another frugal friend. So here's the hack. Get on a budget. Seriously. How are you supposed to save money if you don't know how much you're spending in the first place? And that's what makes the EveryDollar budgeting app a game changer.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
With EveryDollar, you'll get a clear picture of your spending. And from there, it's easy to see where you can get more intentional, cut back, and save more money. So how much money are we talking here? Well, the average every dollar budgeter frees up $395 in their first budget. That's the hack. And if you ask me, I think you're way above average and you'll save even more.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
So what are you doing still listening to me? Go download the EveryDollar app for free and start saving more money right now.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
No, I miss it. We kind of switched it up and did my YouTube channel, which is a version of the fine print podcast. You're doing the same thing. But it's the same thing. I want to break down these money concepts that can feel overwhelming, complicated. Right. Never fully understood it, and I want to break it down quickly for the benefit of the people listening and watching. I can't wait.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
What is the topic today? Refinancing. Ah. So you've heard of financing. We're talking about re. We're refinancing. Coming back to the table. Booyah. Okay. And we're going to specifically focus on refinancing a mortgage, okay? Oh, man. So if you bought a home and interest rates were high, you may be wondering if refinancing might save you some money now that rates have dropped a little bit.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Well, it can, but it also depends. So what is this? Mortgage refinancing, very simply, it's when you replace your current mortgage with a new one. Why should you do it? Why do people do this? Well, number one, to get a lower interest rate. All right, so you got to make sure that refinancing will save you money in the long run more than it costs you.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Number two, people do it to reduce the loan term and become debt-free faster. So you go from a 30-year mortgage or an adjustable rate mortgage to a fixed rate 15-year mortgage, for example. And that can get you a lower interest rate, shorter mortgage payoff, get your house paid off sooner, double win. Another reason people do it is to get rid of PMI, private mortgage insurance.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
And that's a great way to pay less on that monthly payment because you're not paying the lender anymore. And it really just protects them in case you foreclose. And lastly, like I mentioned, you're switching the loan type. A lot of people have an adjustable rate mortgage and maybe they want to go to a fixed rate mortgage.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
That would be a good time to refinance as well to avoid those rate fluctuations. So for everyone out there, here's the questions to ask yourself. How much will my interest rate go down? How much will it save me? And what will I pay in closing costs? And closing costs can run about two to six percent of the total amount you're borrowing, depending on your situation, where you're at, all of that.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
So here's the deal. Simply only refinance if it gives you a lower interest rate and saves you more money than it costs. So an example, if you save $2,500 a year refinancing, but you have $10,000 in closing costs, it will take four years to break even before you start saving money. So refinancing is only a good idea if you plan to stay put long enough to save money.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
So that's kind of where you've got to weigh it and go, all right, we do plan on staying here long enough to get the ROI on this. So it's that simple. Here's six steps. If you're ready to do this, crunch the numbers to see if it makes sense financially. Number two, you've got to shop around for the best interest rate. Three, you've got to choose a lender.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Don't forget to ask about those closing costs, the fees, the prepayment penalties. A lot of them will lure you in and go, oh, we're going to give you a great rate. But then they ding you with all these fees on the back end to make up for it. Don't fall for that one. A little bait and switch. You love that term. I was looking for it. You helped me out. I got there faster. I'm quick to the draw.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
You are. Cowboy camel here. That's it. And number four, you got to lock in the rate. Five, you'll go through the underwriting process, just like you did when you got the original mortgage. And then six, you close on the new mortgage. Good for you. So here's the deal. If you need help, you've got questions with this about refinancing, do what I do.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Reach out to our Ramsey-trusted friends at Churchill Mortgage. They are experts in this. And you can go to ramseysolutions.com slash mortgage or click the link in the description if you're listening on YouTube or podcast. Quick and painless, Ken. This is why I like when you talk nerdy.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
I don't think so.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Some people were so riveted.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
And there's more than one great company in America, and so you will find it. But you need to be making six figures in order to pay this off in the foreseeable future, Joseph. And that might mean you get that new job and you take on a bunch of side hustles and work overtime and, and, and for the next three to four years in order to knock this out. What's the car like? What's left on it?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Okay. So the majority of it was PT school? Yes. Yes. Just PT school.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Well, you got a bunch of loans out there, right? Probably 15 to 20 different student loans. you're going to attack that smallest one and free up a little payment. What that's going to do is give you a little light at the end of this tunnel that you're actually going to get out of this thing.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
So the longer you hang on to all of the savings, it's going to give you a false sense of relief because, my friend, there's an avalanche on the other side, and we have to start attacking that thing one bite at a time. That's the baby steps. So hang on. I'm going to send you a copy of my book, Breaking Free from Broke.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
to give you the step-by-step plan, give you the motivation to climb out of this thing. And I'm also going to send you Ken's book. Which one should we send him, Ken? What's going to be most helpful to him?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Hey guys, George Campbell here. Do you ever feel like insurance companies only care about your money and not what you actually need? Well, there's a better way. When you go to Ramsey's Insurance Resource Hub, you'll start feeling confident that you're getting the right coverage that's truly best for you.
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Getting Your House In Order Is The First Step To Financial Success
You'll find helpful info on everything from life insurance, health insurance, identity theft protection, and more. And when you're ready to get the coverage you need, you can connect with a Ramsey-trusted insurance pro who will only get you what you need at the best price. Go to ramseysolutions.com slash insurance, ramseysolutions.com slash insurance.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
A little anxiety.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Meanwhile, I just scanned some tax files for my upcoming appointment at the printer, and I was stoked.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
I love my TaxPro more than you love your TaxPro. Here's the thing. I don't want other people to find them, and now they're booked up. I just did a first name only. I still don't. I've got trust issues. They have a very unique name. All right. Can't give it away.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Once you got a good one, you don't give it up. But you can find a trusted one in your area at RamseySolutions.com slash TaxPro. And here's the deal. Our tax pros aren't going to be like, have you ever thought about getting a G-Wagon to write it off as a business? No. No, they're not going to give you trash tax advice for some write-off. Do you think I would look good driving a G-Wagon?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Would you look good? Yeah, who doesn't look good? You know? Well, I don't know. I mean, some people shouldn't probably drive a G-Wagon. Yeah, I did see a pink Cybertruck the other day. And I thought, wow, it could get uglier.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
That had to be like some kind of Mary Kay. I don't know what was happening with that pink Cybertruck.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
It's a dark time.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
That wasn't love. I'll tell you that much.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
But what was your plan to cover living expenses while you both were in grad school?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Okay, so you have $140,000 that you will have liquid. You need to use $100,000 to cover grad school for both of you? Is that what you were saying?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Wow. Okay. Good for her. So you'll have 40 grand left over after grad school is covered and you got a baby on the way. So let's keep a big portion of that saved up as an emergency fund. Do you guys have any debt?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Wow. Okay. And you guys are living pretty frugally, it sounds like. That's good. So we've got most of this figured out. What's the question?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
That's where I think the compromise is. I'm going to give him the money he paid in. That gets him out of this. Don't care what he feels like he's deserved. I agree. That's what I would do, Randall. But know that that's going to be ugly. What does Randall's wife think about this? Randall, what does your wife say? Has she talked to him?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
George, I just think we're trying to do a lot at once here.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Yeah, what's the game plan? If you're not working for three years, she's going to keep working. She's going to take a maternity leave for a few months, I imagine. And then is she planning on going back to work? Because you said you want to also have time with the baby.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
She can't be a full-time mom at home with the baby and full-time at work pursuing this dream.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
I would have a come to Jesus reassess conversation with your wife tonight and go, hey, listen, we both had these dreams. They'll happen one day. Right now we've got to delay one of these dreams so that we can eat and provide a home for this baby.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Thank you. This is the best thing for you and your family and the careers. If they need to take a back seat for now, I'm okay with that.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Is that like a Tuesday in Alaska? Like, how often does this happen?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
So pumped for you.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
No credit to you there. None. The content is also amazing. So it's front to back, soup to nuts. This thing is just perfect. Back to my roots.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Yeah. 14 years ago.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Yeah. And I've always said, Ken is the best interviewer. Maybe on the face of the earth. I don't know.
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
Okay, now we're getting some numbers. All right, and you're saying you could afford to pay cash for this property?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
And buy it before they go into foreclosure?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
But they're not going to sell it to you for $120,000. Why would they sell a $380,000 house for $120,000?
The Ramsey Show
Getting Your House In Order Is The First Step To Financial Success
They need the equity in the house. What are they going to do? Because now you own the house.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
I think that'll prove to her that you're serious about this.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Like $2,500 or bust. If there's 35 days for the wedding, say, I'm going to make $100 every day no matter what.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
uh on the baby steps how can we let's give them a wedding gift george what would what should we do i love it i think financial peace university for the two of you would be great along with breaking free from broke for you specifically jason read the margin is breathing room chapter i've got 10 ways to make more 10 ways to spend less if you do both of those things you're going to find that margin to save up and i want you to have that next conversation not with a mopey attitude but with optimism
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
with an excitement, with an enthusiasm that she goes, oh my gosh, this is a new Jason.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Just in checking accounts? Or normal savings accounts?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Today's question comes from Felix in North Dakota. Bitcoin has been going through the roof. Roof recently, and it looks like it's becoming more and more of a stable investment. Do you now recommend it as an investment, or do you still believe it's too dangerous of an investment and that people should steer clear of it? Oh. Good question.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Excited to clear the air on Bitcoin because people really want to know my opinion, said no one. Here's the deal. I've never been anti-Bitcoin. We took a call yesterday, Ken. young man had every single one of his dollars in Bitcoin. Had nothing in savings, everything in Bitcoin. And he'd been doing really well. And he asked us, well, what's wrong with this?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay. So we can get that money invested working for you at least. What is your income?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And I'm going, you've been alive for four days. So yeah, if you just think this is how it's always going to be, then sure. But we've seen things. We've seen Bitcoin drop 50% in value in 2022. It's 24-7. There's a lot of fraud and scams around the crypto world right now.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
It's been on a wild trend up lately, and so you're going, well, why invest in the stock market to get a measly 10% when I could get 1,000%? So what it really comes down to is what I call the three stooges of wealth, which trips people up, especially young people. It's fear, greed, and pride. So it's the, I'm so scared.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
There's the FOMO of I got to get in this now or else I'm going to be broke forever. There's the pride of, well, I know better. There's a little bit of arrogance there. And then there's the greed of just like, I'm not going to settle for 12% in a slow way to wealth when I can make it a lot faster. And so with Bitcoin, it's like investing in any single stock that's been on a wild ride.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
You know, you see Nvidia going up and then DeepSeek from China came out and Nvidia takes it. And there's all this just gyration and fear in the market of what anything is going to do. And it's why I recommend diversifying. So it really comes down to diversifying versus Bitcoin equals bad. And it's more that you got all your eggs in one basket. That's too much risk for one person to handle.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And so if you want to invest in Bitcoin, I can't say invest. If you want to speculate in Bitcoin, put some money in that after you've already invested 15% of your income into retirement, into tax advantage, retirement plans, proven mutual funds and index funds, be my guest and use your fund money to do that. Knowing this is money you could burn on the table.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
But putting all the chips in on Bitcoin, I'm telling you, I think history is going to show that was a very risky move. Now, there's Bitcoin billionaires out there who are going, ha ha, and they're laughing from their private islands right now. That could be the case. Well, I think it's here. I think there's no question that cryptocurrency is here to stay.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay. And do you have any pension or anything like that? Any other retirement income we should be aware of? Nope. Okay.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And the other piece of this we didn't talk about is that Bitcoin isn't based in anything. When you invest in a mutual fund, it's filled with 90 to 200 stocks of actual companies producing real products and services and real revenue you can attribute to that. And therefore, what is it based on? Well, a lot of hype. A lot of, well, my buddy said, and they're investing, so it must be good.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
People that invest in gold, well, you're investing in crypto. And the last thing I do is I go, what are actual wealthy people doing with their money? And what I found is most of them aren't saying, oh, dude, you got to get in on crypto. They might be dabbling in there with a very, very tiny percent of their world. They're not going all in on it.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And so if you want to know how actual wealthy people invest, Dave Ramsey will be unpacking that in a two night virtual event called Investing Essentials. I'll be joining him. And here's the deal. We know that if you're following social media, you're going to get investing advice from a 60 second TikTok reel or Instagram reel. That's dangerous.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
At this virtual event, over two nights, two hours a night, we're going to walk you through how to maximize your retirement plans, how to choose the right funds, how to get the most out of your money, how to invest with confidence. Plus, it's the only place you're going to hear Dave unpacking his personal playbook on real estate investing, which is
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
fascinating stuff, something he's never done here on the show. This is brand new information. You're going to get the clarity you need to invest. So join us March 4th and 5th in the comfort of your home. It's completely virtual. Tickets start at $199. Get yours today at ramsaysolutions.com slash events or click the link in the show notes if you're on podcast or YouTube.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay. And are you living alone?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Why are you trying to go into debt again?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
$20,000 or $22,000? Sorry, what was that? The car is worth $20,000 to $22,000 if you sold it today.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Well, why not sell it private party and get $25,000?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Well, you know, CarMax is buying it at $22, and they're going to sell it for $28. They're buying it at a discount from you, and so you're getting screwed on these kind of trade-in deals, and they're going to try to then sell you on a car you can't afford again.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
I'd rather see you sell it private party, clean it up, sell it on Facebook Marketplace for $25 or $26, and be as little underwater as possible, if not break even.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Meet in a public place, in daylight, bring someone with you.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay. And are you a homeowner? I own my home, yes. It's paid for? No mortgage? It's been paid for for, yep, no mortgage. Good. What's that worth?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Yeah, go to the bank, ask for a cashier's check, go to the bank, have it cashed. They'll verify the funds are there. This happens all the time. It's not worth losing $4,000 over. Do you guys have any money in cash to cover the negative equity? Yes, we have.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay, that will clear it. You still don't have the $8,000 for this minivan, so we need to figure out what we're going to do. If that's going to a local credit union to get the difference so that you can get a cheaper car. But I think we still need to figure out how we get an even cheaper car for now until we can upgrade to the $8,000 minivan. But I would not roll the negative equity. Bad plan.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
This is going to keep you where you're at.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay. And what are your monthly expenses? Have you added this up to see, here's my monthly budget, here's what I need to live?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay, great. So here's some good news. You don't need a lot to survive. Now, I don't know what your retirement plans are. I don't know if you had big dreams. We might need to change that picture based on the reality of where we're at. Right.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
It didn't help you actually get a career?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
This is per month. That's your take-home pay after taxes get taken out.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
So you're making $7,500 take-home every month.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay. So $3,500 a month. And that means you should have $4,000 left over if you're doing a written budget, which is just a plan for your money where you go income minus expenses. Here's every dollar we're going to spend.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
But based on my math, you're going to need, you know, and this is not including health care if there's any other needs you have, but you're talking about $20,000 a year is what you're going to be spending. So here's the good news.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
No, don't listen to them. They're lying to your face. They're trying to bully you into paying. You don't have to do anything.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
They're trying to pressure you to get so stressed that you'll do anything it takes, even taking out a debt consolidation.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Listen, if they want to take you to court over a $2,000 debt, be my guest. It's going to cost you more in lawyer fees than it will what I owe you. They are threatening you. So you let them know, hey, I'm trying to pay this off aggressively. Here's my plan. Here's what I can do and when. Put the ball in your court. Don't let anyone bully you. Don't let them take advantage of you.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
If you put the majority of your savings into the stock market, into a good growth stock mutual fund or an index fund, you would see on average over the next 20, 30 years in your retirement, 10 to 12% return. Which means you put $200,000 in, on average, again, not every year, you're going to see $20,000, another $20,000. And so that gives me some hope that you're not going to be out on the street.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Don't fall for these debt settlement companies. Don't fall for debt consolidation. This is on you guys to pay off on your own, and you will do that with your newfound income. This is an amazing blessing. You're going to have over $4,000 a month to throw at this. You're going to be done with all of this within four months. Think about that.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
George Math says four months. You guys are going to live off nothing. You're going to grocery shop and just enough rice and beans to where you don't need anything else. You're not going to buy clothes. We're going to really look at every dollar. We're going to have full accountability with you and your husband. We're not going to spend anything we don't need to for the next four months.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Good. You guys are warriors. You have been through a lot, and I hate that you're getting taken advantage of after being refugees and moving to Canada. You guys have had a lot of life change. It's been really hard, and you've been grinding it out, learning a new language, entering this new atmosphere, and all the while getting taken advantage of.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And we have to also remember we did this to ourselves. So there's a personal responsibility of, yeah, we chose to go into debt. We chose to put ourselves in this position.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Say, hey, I need written verification of all of these debts before I pay a penny.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Good. And get written confirmation. Everything, get written confirmation and don't give them any access to your checking account. Yeah. That's the key here. And once you do that and you put the ball in your court, you're going to feel a sense of relief and confidence. You're going to get out of this. But do not let anyone bully you any longer. We're done with that.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
But we're also not going to be eating out and going on vacations. This is going to be a bare-bones retirement. Okay. Now, if you could invest a big portion of your income, now that you have a paid-for house, how much could you invest every month from your income? Could you do, let's say, $2,000? Yes.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Well, you told me your expenses are about 1,600. You're taking home probably close to 4,000, right?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
If it's going to mean going back to school and not working and going to $0, then no. But if this is something where you could do this on the side, get the training you need and do it on top of or make that instead of a leap, it's just a little jump, then we're talking. And what's your wife's income?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay, so you guys are making about $110,000 gross per year? Yeah, about. And on the current trajectory, how long will it take to get out of debt from here?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Well, Ken can help you fill in the gaps of income. But if you have stable income, you could invest $2,000 every single month from age 61 to 67. You'd likely have around $200,000 sitting in that investment account.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
So I would continue to do that as a side hustle, do as much of it as you can, figure out what training is needed to move into the private sector, if any, and then pursue that, you know, all that at the same time as you get out of debt. Okay. It sounds like you know what you need to do. It's just the confidence of going, should I make this move into maybe the private sector? Yeah.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
You've got a few years of experience at this job, right?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Have you gotten one of those texts recently claiming to be the USPS with some sketchy link to update your address? It's annoying and a little terrifying. And you probably think to yourself, I should do something about this. But where do you even start? Well, as your nerdy friend who does the research for you, I found the solution. They're called Delete Me.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And here's the reason they come in the clutch. The internet is packed with data brokers, which are these shady companies whose sole purpose is to collect your personal info and sell it for a profit. Enter DeleteMe. DeleteMe swoops in, finds your info on these sites, and removes it on your behalf. They even send you a report with all the details.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And so far, for me personally, they have reviewed 27,000 listings, removed my info from 240 data brokers, and saved me 66 hours in the process. I trust DeleteMe to help protect my family, and I trust them to help you too. You're going to get fewer spam texts, fewer phishing emails, and fewer creepy robocalls. And Delete Me also makes a great gift for other people in your life that you care about.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
So that is one option on top of the savings you have putting that into the market. I also would recommend you sit down with a financial advisor and actually crunch these numbers, and they'll walk you through to make sure you're understanding where you're putting this money. I don't want you to do it because George said or Ken said. I want you to do it because Amy understands.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Individual plans start at just $9 a month, so take an easy step to protect yourself and your loved ones today. And as a Ramsey fan, you'll get an extra 20% off any of their plans at joindeleteme.com slash Ramsey. That's joindeleteme.com slash Ramsey.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Well, here's the simple wisdom. Fire them. Okay. You don't have a financial advisor. You have an insurance salesman posing as a financial advisor. Sure.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Yes. Ate and left no crumbs. Thank you for that.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
I'm trying, folks. I'm really trying. I hate nothing more than when people get ripped off. And I'm glad you're catching this before you jumped into it. And we have to tell you, cancel the whole life policy and fire your financial advisor. And so I understand what they're telling you. Here's the key. Any good financial advisor would tell you, you should not mix insurance and investing.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
If you want to invest, be my guest. If you want insurance, get you some term life insurance. But you should not mix the two. It's a very crappy product. Just the internal cost of this thing could implode eventually because of how expensive it is and how high the commissions are for the insurance agent. And so they don't have your best interest at heart. That's the bottom line.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And any financial advisor who's worth their salt would tell you, oh, Jake does not need whole life insurance. He needs to invest in XYZ fund. And so they should be, I don't know where you found this person. Is this an old buddy of yours?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay. I would say no thank you, and I'm going to actually pause, and I'll circle back when the time comes, and then just never circle back. You do it as politely as you need to, and if you want a trustworthy financial advisor, jump on to RamseySolutions.com and click on Trusted Pros, and I can guarantee you they're never going to be pitching you whole life insurance.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Well, I keep thinking of this line for you. The best time to plant a tree was 20 years ago. The best next time is today. And so I know you're 60 and you feel behind. There's probably some guilt that you could have done more. You should have done more. You should have been investing. But I'm telling you, it's not too late to have some dignity in retirement, but it starts today.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
So you feel like house prices are very high right now, and you want to buy a house. What's the question?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
The bubble, we talked about this last time this came up, which was around kind of post-COVID. Everyone was freaking out, and we did a whole real estate event talking about, hey, there's not going to be this market crash. It's not going to be 2008 all over again. And there's a lot of reasons for that. We covered it in the event. The TLDR on this is I would not wait.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
We can't have the excuse any longer of, well, I just don't know what I'm doing. Ignorance was bliss until this call.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
I would not sit on the sidelines waiting, hoping for some bubble. And here's how I know that. If mortgage interest rates go down, what's going to happen? It's going to cause more buyers to flood the market, right?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Correct. What happens when more buyers flood the market? Prices don't go down. They go. They go up. Exactly. Right. Right. And so I don't see a drastic change in home prices. We've seen a little fluctuation here and there. And I think you're going to look back six years from now and go, oh my gosh, why did I wait? That house that was 600 is now 750.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And so the right time to buy a house is when you're financially ready. And so when you said I put all my money, what does that entail?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay. How much are we talking?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And how much is the house that you would like to buy?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Now let's talk about that seasonal income gap. What are you doing in the wintertime? What changes that you don't have enough work?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay, so what would that cost? Is it $400,000, $450,000, $500,000? Yeah, it's looking like, to touch it, it's $400,000. Okay, so let's say you took out a $50,000 loan. Could you afford the payment on that with your retirement income, where it's 25% or less of your take-home pay?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Then I would do it, and I would pay it off, and in a few years, it'll be gone. I mean, most people have car loans bigger than that, and so taking on $50,000 to get into a house now before it becomes a $500,000 house four years from now, I'm going to do that. I agree. So you don't have a moving target on your hands. I agree. That's a smart play.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Yeah, I don't have a crystal ball, and so I live my life like I'm in control of what I'm in control of. And I hope they change the regulations and that we're flooded with more supply in the market, and that helps the housing market as a whole. But I don't put a feather in my hat. I've got to live my life.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Is that a thing, James? Maybe.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
For free tools and resources to help you reach your home goals, go to ramseysolutions.com slash real estate or click the link in the show notes.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
When you say he's not aligned, has he, from the pulpit, talked about debt?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Wow. I read there's a book out there. It's called The Bible. Has he looked into that?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay. How does he reconcile, you know, Proverbs 22, 7, the borrower is slave to the lender?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
I don't have a theological basis for this. These are just like, just spitballing.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Or is this just grandma stuff?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
George, I'm not saying, hey, you need to leave the church tomorrow. I'm saying if you can't deal with the incongruency and you also don't trust his leadership anymore, then I think that's going to weigh on you just like it would in a career. If you don't trust your leadership, you think there's a lack of integrity there. It doesn't align with your values.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Eventually, that's going to eat away at your soul. And so I'm telling you, that would be a reason to leave. But if you're like, hey, good guy, theologically sound, we disagree on debt as a tool, all right, that's a different situation.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
But there's a piece of this, Ken, and my church, we inherited, there was a church merger, they inherited $7 million of debt, and they looked up and said, we're giving a million dollars in interest to lenders every single year. Yeah. What if we aggressively attack this as a church and we freed up that million dollars to do the work of the church? Yeah. And that's exactly what they did.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And now they're able to fund ministries and new projects, and they're building centers for recovery, and they have a whole ministry for single parents to fund car repairs and furnish cars for them. That's the kind of stuff you can do when you're debt-free instead of, well, we've got to make payments, so that's what your tithes are going to, kids.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And that's not up to you. Well, you just gave me a light bulb moment. I think William should lead a Financial Peace University class in the church. Start a groundswell movement of people going, hey, we became debt-free in our personal life. What's going on with the church? What if we could become debt-free as a church?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
I still remember 10 years ago, 23 years old, I was frustrated, anxious, and flat broke. I had followed all the ways that toxic money culture had led me down from well-meaning parents and misguided guidance counselors, and it left me with a pile of debt. But I'm telling you, it doesn't have to stay that way. Over a decade, I went from broke to millionaire.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
and I break it all down in my new book, Breaking Free from Broke. I'm going to show you just how toxic this money system is and how you can break free from credit scores and credit cards and student loans and auto loans and investing traps and finally live a life that you're not exhausted by, a life with more margin, more options, and more peace.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
If you want to check out the book, go to ramsaysolutions.com to get your copy of Breaking Free from Broke. That's ramsaysolutions.com.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Great nerdy question from our friend Derek. He has been doing the research. Yes, he has. Okay, so I'll give you one man's take on this. I am personally not a fan of target date funds, and here's what they do. They start out with mostly equities, right? Stocks. And over time, they'll start to introduce more bonds into the equation, which will...
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
reduce your quote unquote risk, but it also reduces your returns. So think about this. You get to retirement age at 60 and you could make it to 90. So for the next 30 years, you've basically stunted the growth of that account to the point where it might run out. And so here's my take. And Dave would back me up on this. It's wise to just stay invested heavily in equities.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Now, if you talk to your financial advisor at 60 and you take into account your risk tolerance and all that, they might go, hey, let's put you in 20%, 30% bonds, whatever. But I'm not a fan of target index funds doing that on your behalf, especially for a young 30-year-old. You want to stay heavily invested in the stock market versus moving towards those bond funds.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
So, yeah, S&P 500 index fund is great. Growth stock mutual funds are great. In those retirement accounts, mutual funds are awesome. Like you're talking about a taxable brokerage account outside of retirement. That's where the index funds really come in handy because they're low turnover and you'll have lower tax implications on that. So great question, Derek.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
I'm going to go with no to the target date fund and yes to staying in the equities, my friend.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Well, a lot of people just set it and forget it. That's the beauty of target date funds, and you can do worse. It's not a terrible, terrible thing, but my take is you want to stay. I want to keep that 10% to 12% return instead of getting a 3%, 4%, 5% return in retirement.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Is it due to the nature of your career?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay, gotcha. Can you purchase this through your employer?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay. So if you're going to go kind of look at the marketplace, have you gotten some quotes yet?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
So if you're unable to work due to those conditions, it won't be covered? Got it. Yeah, that's a tough one. I mean, your goal should be to become self-insured at that point.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
I would take the disability insurance for $100 a month, and then on top of that, be working those baby steps to become self-insured over time and make sure that you have other insurance in place, like term life policy, for example. Do you have that?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Awesome. So you're looking at a million-dollar policy. And some of these you can even do no medical exam completely online. And so you might be able to, especially if you're just trying to get a little bit more on top of the one that you already have, It's going to be very affordable. The disability insurance you just mentioned, $100 a month, very reasonable.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Usually it's 1% to 3% of your annual income, and it's going to cover 60% to 70% of your income should you need to use it.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And remember, here's the point of insurance. It's just a transfer risk so that you don't have to shoulder it. So to pay someone $100 a month, $1,200 a year, you do that for 20 years, it's $24,000. Over 20 years. I will happily pay that for the peace of mind, knowing that if something should happen, I'm going to get that $3,000 a month for the foreseeable future.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And so that's where I'm, is it worth the investment? Absolutely. For the $100 a month you're paying and for the risk that you're transferring, it's definitely worth it.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Thank you, Bridget, for the call.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Not every day you get to talk about disability insurance. It's fair. That's a good point. And Ramsey, you know, we have ours covered through Ramsey, so it's a good thing to check with your employer to see if they already cover it, if they offer it. Usually it's very affordable through your employer, and that's a great way to go.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And you might need to work until 70. That's right. You get to retire when the numbers say you do, not when you just decide. And so jump on to RamseySolutions.com. Get in touch with a smart investor pro. They can walk you through the investing portion themselves. And this is going to take work.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
What would be the point of that, to lower the payment?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Well, you can just do that on your 20-year mortgage. You can still add more to the principal. It's not going to change the numbers.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay. I think this is reasonable. I would just attack that mortgage with a vengeance. What you can look into is a mortgage recast, where they can just recast it without changing the terms, without changing the interest rate, and that can get your payment lower while really accomplishing the same goal. So I wouldn't refinance at this juncture unless you're going to ROI on it real quick.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And you got to remember, inflation is going to be that's going to be kicking your retirement in the pants. So you've got to get on top of this thing and start investing instead of just saving.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Let's say you can't give this $2,500, you can't give a dime. What changes about this wedding a month from now? What can't we do that we said we were going to do?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Here's the third question. Is there a pattern of you making a promise, telling her something, and then it not coming to fruition? Are you letting her down? Is this the first time?
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Have you told her about this yet and just be honest with her and say, hey, listen, I was expecting this income. Oh, yeah, they talked about that. But she expressed some disappointment. She was upset about it. There's a lot of emotion already with planning a wedding and doing this. Even if it's just one-on-one, it's a big life change.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
And I think this just probably triggered something inside of her going, this man, is he going to be able to provide? Is he going to be able to be the partner and leader that I need him to be? So it's probably causing some bigger questions in her mind.
The Ramsey Show
Normal Is Broke and in Debt. Do You Want To Be Normal?
Okay. So you have another month to go. Is this wedding in March? Yes, sir. Okay. So you can go do a side gig, you know, one of these, you know, kind of a Instacart, Uber Eats, whatever it is, you can go sign up for one of those and go make 500 bucks a week until the wedding.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
People ask me all the time, George, what's your number one money-saving hack? I'm glad you asked. Nothing makes me happier than helping another frugal friend. So here's the hack. Get on a budget. Seriously, how are you supposed to save money if you don't know how much you're spending in the first place? And that's what makes the EveryDollar budgeting app a game changer.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
With EveryDollar, you'll get a clear picture of your spending. And from there, it's easy to see where you can get more intentional, cut back, and save more money. So how much money are we talking here? Well, the average every dollar budgeter frees up $395 in their first budget. That's the hack. And if you ask me, I think you're way above average and you'll save even more.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
So what are you doing still listening to me? Go download the EveryDollar app for free and start saving more money right now.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
I mean, you have a salary. I'd say it's healthy and independent for you to get on your own. If you want to stay home until you have the next step of proposal or engagement, that's totally fine. But I would start making payments to your parents just so that you're not caught off guard, you know, come six months from now. But I do think it's going to take more time to get a down payment, you know.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
15 grand is not going to cut it in today's housing market. And so we've got tons of resources for you, Timothy. Log on to ramseysolutions.com slash real estate. We have an entire home hub for you there. And I'll even give you Ramsey Plus, which will include my video course on how to buy a home the right way. And watch that.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
You can watch it with your soon-to-be fiance and go, hey, this is going to be on our radar in the next few years. I'd love to watch this and get prepared and see what you think of it.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
That'll increase your savings rate. That's right. Help you get that down payment faster. That's right. So it's a great call, Timothy. Thank you for that question. You're far beyond most Americans at 19, so I want to encourage him there. And to that, the interest rate question.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
My interest rate, I actually ran the numbers with the folks at Churchill, and they told me, if you do our plan, 15-year fixed rate loan with at least 10% down, you will get the same rate as someone with excellent credit. So he disproved it with facts, but people don't care about facts in the face of their feelings a lot of the times.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
You haven't let lifestyle creep crush you.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
You've stayed a very sane person. That's right. And you're self-aware enough at 25 to go, this ain't it. Most people, Rob, it takes 20, 30 years of a career to finally admit that.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
As you guys are talking, Rob, I think you've got somewhat of a flat tire. Your financial life and your career life, you're crushing it. I would assume, prove me wrong, that relationships may be struggling, social life might be struggling, spiritual life might be struggling, and I think leaning more into those areas right now can help you realize, oh, I actually like New York. I like this job.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
I just needed a better community. I need to get plugged into a local church. I don't know what that is for you, but I realize that at 25, you kind of have this quarter-life crisis of like, what did I, I just followed this path that was laid before me, and here I am, and they told me it would be amazing, and It's not.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
And never YouTube in the RV, please. Yeah. Just keep it to yourself.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Go full hatchet, full castaway for a long weekend.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Well, then you haven't been. Do you go on your own?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Pay off your debt today with the money you have.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
And do you have any debt that's in your name beyond that, or is the rest in his name only?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay, so that's going to be his problem.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Your name's not on there, so you're not going to be liable for that loan.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Is he in la-la land? Does he shut down when you bring any of this up?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
So he doesn't understand that his decisions affect you financially, emotionally, maritally. Okay. He's made that very clear on where he stands, and he's not going to change.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
I wish I could have my rose-colored glasses on and tell you the three steps to solving all of this. I can't change people. I don't have the magic wand. And so if you've made it very clear of, hey, this is what it's going to take for this marriage to work, and he's unable to fulfill that, I would be talking to an attorney and figuring out how do I at least protect myself?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
How do I begin a phase of separation so that you don't get dragged down with him?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Get that out now before your brain talks you out of it. reduces your expenses so that you're going to be able to hopefully survive off of your fixed income, even if there isn't spousal support. That's where I would go sit down and make a budget for yourself based on here's what my expenses would be if I was doing this on my own.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
All right. Today's question comes from Camilla in Hawaii. My husband and I are on baby steps four and six. We have no kids. He's in the military and I'm a lawyer. Our gross annual income is $250,000 and we have no debts except our mortgage of 350. We have a fully funded emergency fund, and we invest 15% of our income, and we still have $3,000 left over at the end of every month.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Is it a mistake to put all the extra money towards paying off the house early? I'm wondering if we should be investing a portion of it and taking a more balanced approach. Now, that's a fun question of the day, isn't it? Really fun. So here's the deal. Do you have to throw every single penny at the house? No. Baby steps four and six, you're moving from intensity to intentionality. I'm a nerd.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
I might be throwing all of it towards the house.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
But you also might want to go, we haven't taken a vacation in five years. We should probably save up for that. Hmm. So what I would do is set up sinking funds for things that you actually enjoy, like a vacation. Or, hey, it's really time to upgrade that car. We're in four and six. We make 250 grand. We don't have any debt with the mortgage.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Let's enjoy life and upgrade a little bit with a reasonable approach. And that's where the sinking funds in the budget and planning for that fund money help me let loose of the reins of, I got to pay all... Every penny should be going towards this. You don't need to live like you're on fire because nothing's on fire here. But I would set a goal and say, hey, if we put...
The Ramsey Show
Don’t Become a Victim of Your Circumstances
A grand extra on the mortgage will be done with this five years early. Let's make that a goal. The extra two grand, let's put towards these other things for now. And you can always change it as you enter different seasons of life.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
I like to set them up separately. So there's a car savings account, and we're going to put $500 a month into that account. That helps delineate it so you don't go, oh, there's a big pile of money. Lord knows what.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Why are you enabling them? You're right. If they can do it on their own, say, hey, we've been happy to help. Sounds like you guys have it figured out. Best of luck out there. Sometimes that's the best thing you can do for someone, even though it feels harsh in the moment.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
What do you think? I'm in for this plan. I'm just, I'm wondering, does she need you financially? Are you supporting her in any way or are your finances completely separate?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
So it sounds like there really were no conditions of them living here other than, hey, let's aim for a month. Yeah. I would have a lot of strings attached with this.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
It probably already has. And so she needs to be leading this. It's her parents. And so for the son-in-law to get involved, it's just too sticky.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
It sounds like she knows they're not going to care what she has to say. And so that can be a conversation you guys have together, the four of you, and say, hey, we love you guys. We want to help you get back on track. Here's what it's going to take. Here's the conditions. We want you to be financially independent. You're going to start paying rent. We're going to show you how to budget.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
You're going to take FPU and we're going to, we're going to help you get out of this thing, but it's not going to be by bailing you out financially. It's by showing you the steps. You've got to be willing to do the work. Otherwise this situation can't work.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay. So you need her more than she needs you. She has money. Okay. I'm just wondering, you know, how far away is this new town you'd be moving to? Is it 45 minutes or five hours?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Absolutely. I don't think they should be living with them. I understand you guys tried it. You tried to help them once. I think at this point he makes good money. He can figure it out. Rent.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
He's going to have to figure out these payday loans and you can always be there to support with resources and say, Hey, show up to this course with me, show up to this course, but intermingling them with your personal life and your own house. I think that's not going to work anymore.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
But when you need a roof over your head, mama's going to work. She has no option. Oh, yeah. What is she doing? And so I don't think this is going to lead to them actually living on the streets. It's just going to lead to them saying, all right, we got to figure this out. And asking your kids to bail you out is just a gross injustice to me.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
And generationally and different cultures that are going to come at us, Ken, is to go, you don't understand. I get it. But this is a very different situation. That's what I'm talking about. Enabling misbehavior versus living generationally with grandma. Thank you for clarifying that.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay. There's a lot of unknowns. So what I would do is say, hey, I don't know where I'm going to end up. What are you thinking when this does happen? Are you going to live on your own and stay here for a while for a season? And we try that out. And if it becomes too unbearable, then you can move closer.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Or do you want to wait it out till I'm stationed, you know, planted somewhere and then we figure it out? I don't know that I'd drag her with the ultimatum of you're either coming with me or it's over, you know, to this new phase. Because who knows what's going to happen? You know, we hear the stories of people who move for a significant other they're not married to and things don't work out.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Oh, yeah. So you're doing 17 things at once, Monica, and none of them are inherently bad. So let me encourage you that you're in a good spot at 57 being debt-free. You've got a little nest egg going. You've got some savings going. But we're doing like seven things. You've got the CD over here. We've got some savings here. We're doing a little investing here.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
What's the deal with increasing it from the 8%? Why not just go, I'm going to invest 15% for... with the Ramsey plan. I'm going to do the Roth accounts and see where I go there.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Love it. Look at you. Which means you need more in retirement because you're going to live to be 120 at this rate by eating so healthy.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
She's working on a lot of things, Ken, a lot of irons in the fire here.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
That's good to know, because you don't have a mortgage, and you may not ever.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Yeah. Okay. All right, George, take it away. You guys have separate finances? Correct. Okay. So I'm going to pretend like this is Monica's situation through retirement, is that she's doing this on her own. Okay? Yeah. So I crunched your current numbers. Here's what I found out. You got 50 grand in retirement accounts. Let's say from 57 to 67, you invest 15%. You never get a raise.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
It's about 600 bucks a month. right, of your $48,000 salary, and assuming a 10% rate of return, you'd have $258,000. Now, that's great. That's not enough for me to retire on. I don't know about you. I'd want a bigger nest egg. Yes. So what does that tell us? We need to, A, get our income up and savings rate up, and B, we might need to work longer than expected. If our body allows us.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
And now there's extra resentment because she moved for your job that didn't pan out and now it affected her career and her life.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
So you might need to do both of those things, and I would recommend it. Because if we can get your income up, get your investing rate up, have you work a little bit longer, now we can go, okay, we might retire with half a million. The other piece of this equation is you're going to have to pay rent the rest of your life if we don't get into a house with a fixed expense.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
And so that's the part that worries me here. I hope you guys are together a long time. I hope you get married because that changes this equation completely. But this idea of you sort of just not having anything, not building towards something at your age, it gives me some pause.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Yeah, can you make $60,000, $70,000 in your field doing something similar with your experience?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
The income then goes up along with confidence.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Savings rate goes up. The nest egg will start to grow. And you might need to work until you're 72. And I hope you're able-bodied with all those organic foods that, you know, you're still very limber. Monica's eating clean. She can work. We can learn a thing or two from Monica. Yeah. Hey, Monica, hang on the line. Jump on ramsaysolutions.com slash guide. We've got a free investing guide.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
It's going to walk you through this. Much more detail. Anyone can go get it. ramsaysolutions.com slash guide.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Well, we got a big event tonight, Ken, so I had to pull out all the stops.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Every dollar. So, John, I've got your numbers here, and I have them in every dollar, but for the people's sake listening out there watching, what is your total debt load?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
So you're going to lose all of that income next month?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
All right. And then you're not – are you paying rent or mortgage right now?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay, so we're going to need to figure out where we're going to live and how we're going to afford that. We need income before that happens, of course. And then I see here, it says car rental $1,000. What's going on there?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
So what is your plan to get around once this project's over?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay. We'll keep going here. You've got groceries 200, restaurants 500, correct? Correct. I think I see a spot we can cut right now. Could you just not eat out and increase your grocery budget a little bit?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay, that'll cut it down. So I'm going to cut this down to $100 for restaurants. We'll increase your groceries by $100 to make up for it. And so we'll save some money right there. Then you've got a phone, $65 a month? Correct. We could do a little better there. My friends at Tello, $25, unlimited everything. So that one you could shave off $40 a month right there.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
And then the rest is all of your debt. I mean, I'm staring at, let's see here, every dollar adds it up for me. You have over $3,500 in just minimum payments on these credit cards?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
That is wild. So here's the deeper question. This is not the point of the call, but what got you here to where you ran up $100,000 in credit cards?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
But a guy making 175 has no need to go into credit card debt. So what was going on in your life that you were spending this money on?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
So has that spending addiction ceased or are you still adding to this credit card debt?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
You know it's bad when even the credit card companies cut you off.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Oh my goodness. Okay. Anything that we can sell?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Did you purchase anything on these cards that was a physical item that you can go sell on Facebook Marketplace?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Well, here's the deal. We need to get income in our life ASAP, and that's where Ken's advice is going to come into play here because without income, this whole plan is moot. The budget needs income in order to cover the expenses and attack the extra debt. So here's your goal is cover your four walls. That is your priority.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Before any credit card company gets paid, cover your food, utilities, shelter, transportation. Keep it all to a minimum. Okay. Okay. Beyond that, you're going to start attacking these debts from smallest to largest. So I see here your credit card number one. The balance is $2,600 if I click into it.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
So that's going to be your first one to tackle. You're going to make minimum payments on the rest. So you've got to make at least $3,500 of payments. Then anything beyond that, throw toward card number one.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay. And are you able to make all of your payments currently on the remaining cards?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
So with this debt snowball, as you clear each debt, it's going to also clear up that minimum payment, which frees up more money to attack the next one. Are you getting that?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Which means once you get started on this, it feels overwhelming now. But man, if you can get that job making 150 again, we can get rid of this debt. Think about it. If you can throw 50 grand at this debt per year, you're done in two years. And we're never going into debt again. John, that's what we're talking about. A short season of sacrifice.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
We're going to send it to John as well. We're going to give you a premium for one year so it connects to your bank account, has all the paycheck planning features to help you along this process. Everyone can go download it in the App Store. All right.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Absolutely. Yeah, I'll be a part of it along with Rachel Cruz. Dave and Jade will be leading off, teaching you all the things you need to be doing to get ahead financially, to start building wealth. And then we're going to have a live Q&A where Rachel and I will join answering your questions. We're taking questions live from Zoom. We're taking questions live from email and social.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
And so this is your last chance to sign up if you want some life change this year. Tell your friends, tell your family. Again, it's free. Sign up for the live stream at ramsaysolutions.com slash live stream. You'll be entered to win for a chance to win for a grand. We're giving away $4,000 cash. to five people, which is going to be fun. And make sure you create a free EveryDollar account.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
You'll get a bonus entry in the giveaway for doing that. We're going to be using EveryDollar in the live stream to show you practically, just like I did with John, how to find more margin, how to speed up the progress. So 7 p.m. tonight, central time. We'll see you there, ramsaysolutions.com slash live stream.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
I believe the first section with Dave and Jade is probably about 45 minutes. And then we're going to do about an hour of Q&A. We really wanted to make it about what people are really experiencing.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
It must be nice to be Ken Coleman on his couch tonight watching us do the heavy lifting.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
uh watching you i appreciate that a little bit of popcorn several hundred thousands and it's gonna be great later on your mom and dad are gonna be very proud my mom has always texted me during these saying you need to smile more mike thanks mom very helpful feedback you know i don't like your attitude exactly i think your mom's probably right she's right well you know why don't you do what your mom says you're listening to questions you're focused it's hard to smile i gotta remind myself i've never noticed that about you you strike me as a very joyful person thank you worried but joyful
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Do you know what I'm saying? There's an element of, hey, if it's meant to be, it's meant to be. If you live apart for six months, you're going to survive. And so if it's 40 minutes away, she doesn't need to uproot her whole life and job for this for a season.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay, you're making $18 an hour. So what we're saying is if you can go make $20 an hour temporarily, you'd get a raise right now.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Which wouldn't be that hard to find. So give George your debt picture.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay. And is your wife working outside the home?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Use that passion to fuel your debt-free journey to say, man, I hate that I can't do that right now because I'm out working three jobs. I want to get back to that, so let's get rid of this debt fast. You see how you flip the script?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
So you guys are making about $60K. You've got about $25,000 worth of debt, and it's going to take the debt snowball method. And so any money we have beyond our expenses, which, by the way, should be minimal, we're talking about no eating out. Are you guys doing any of that right now?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
The old post-church lunch isn't happening?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
It's the number one need in the market, George. I just wanted to throw that out there. No, that's true. And this income will change everything to clean up this $25,000 of debt. It's not on fire. We've seen much bigger numbers.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
That's a good news. But it feels like it is right now because of that lower income. You get that up, this problem will solve itself, man. This is The Ramsey Show.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
If you're listening to the show right now, you have no excuse not to join us. It's free. Go to RamseySolutions.com slash live stream, and you'll be entered to win some cash.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Well, they can always rewatch it, but if we sign up, we'll send you all the info. We'll get the email to you, the replay, all that good stuff, and you'll be entered to win.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Is there a law in Pennsylvania that says you can't rent if you're married?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Let me free you. There's no timeline for this. The right time to buy a house is when you're financially ready. If that's at 19, you're crushing it. If that's at 25, you're crushing it. And so I just want to free you from this idea that this has to happen now and I've got to propose in the next two months and I have to buy a house five months later.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
I can feel that on you of just the aggression toward your goals. And I want to redirect that towards a healthier approach.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
So tell us about your financial situation. Sounds like you're debt-free.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay. And how much do you have in savings?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay. What's the $15,000 for? Is that for a ring or other stuff?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay. But you don't have a fully funded emergency fund. We got this twisted. We got to get the emergency fund first, then we can start saving for the house.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
So how much would a three to six months, yeah, what's three to six months of expenses for you?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay. Well, let's pretend like we're in the real world. You got rent to pay, you got bills. As you move into this next phase, let's call it 15 grand as your emergency fund and you have four grand for your down payment. Is that more fair?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
And we also need to buy a ring for this lovely lady, right?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
You're crushing it. Okay, so if I was in your shoes, and I've been in your shoes, here's what I would do. I would pause and I would rent. Maybe it's for a year, maybe you renew for two years, and you stack up a nice big down payment as you... Get to be married and experience all of that joy and chaos because it's going to be a wild ride.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
So to add on home ownership on top of that, that's a lot at your age. But I love where you're going with it. And I also know you don't have a credit score because you're debt free. And you're saying, are you worried about not being able to buy a house because of that?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay. Can I tell you this? I have actually done it. So would you trust my experience over theirs? That means the world. Yeah. So let me tell you this. There are a few hoops to jump through, one being verification of income. You have that for 12 to 24 months? Great. You'll need rental payment history, on-time rental payments for at least 12 months. You'll have that once you've rented, right? Yeah.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Okay. You have a 12-month history of your bank statements and saving statements. Your debt-to-income ratio is amazing because you don't have any. And then you have something else you're paying for, like a cell phone bill or an insurance bill regularly?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Great. That's all it takes to do manual underwriting. So anyone else who's saying otherwise has not done it. And if you call Churchill, I'm sure they told you that. They said, hey, you do need on-time rental payments. Was that the one that threw you off because you didn't have that?
The Ramsey Show
Don’t Become a Victim of Your Circumstances
You could pay your parents $400 a month for 12 months, and that could count. And so just rest assured... It's not as scary as you think. The rains aren't going to be astronomically higher. I've done it myself. I had a great rate when I did this back in 2019. It was a very easy process. Churchill makes it super easy. They'll walk you through everything you need to know.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
But I would not let that be the stress point. You've got enough on your plate right now. I would continue saving. I'd propose, get married, pay cash for the wedding, rent for a year or two, and then you guys will have a fat stack of money and you'll be able to do it from a place of strength.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
And that might be a temporary stopgap.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
If we looked at your bank statement and saw where all this money went, where are the top few things we would see? Food, eating out.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Basically, the White House has a lot less effect on the housing market than you think they do.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
No one spends $10,000 a month at the grocery store, though. What are your vices?
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Yeah, it's definitely been crawling, and I think it's going to take longer than we all want it to. And so for those folks who've been sitting on the sidelines waiting for something drastic to happen – Quit waiting. If you're ready to buy a house, like you said, don't time the market. Time your own financial life and go, now is the right time for us to buy.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
And you're paying cash. And for those folks that, you know, they're taking on the mortgage, Dave, and they're going, well, Dave, the rates are so high. What do you say to them about the rates? You marry the house and you date the rate.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
You've got health insurance premiums and the 401K.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Yeah. Quit waiting around. Regardless of what's happening in the economy, you can affect it a lot more than anyone else. So we've got a lot of resources too, Dave. Our team built a real estate hub with tons of resources, tools, calculators, articles, even a video course, ramsaysolutions.com slash real estate. And we'll be talking about real estate investing here soon.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Well, stuff you've never talked about on the show because you're like, this is too nerdy.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
And I wouldn't do it for free because now you're actively losing money every month because you still have to make your mortgage payment.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Today's question comes from Chase in Florida. My aunt recently reached out to me for advice since I'm considered the financially responsible one in the family. She's 37, and we come from a low-income family. She worked at Tesla for six years and recently discovered that her old Tesla stock holdings are now worth $650,000. Yeah! I love it. That's great.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
She currently works as a project engineer earning $70,000 a year. Her monthly rent is only $1,000 and she has $20,000 in debt, which will be paid off this year. She has retirement investments, but no cash savings. She's hesitant to sell the stock because her goal is to let it reach a million dollars before selling. She's also concerned about the tax implications if she sells.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
I've explained that this mindset borders on gambling, emphasizing the danger of investing in a single stock. If you were in her shoes, what would you do with $650,000 in Tesla stock?
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
I love this, and I do agree. This does border on gambling, waiting for your single stock to go up another 30-something percent so that you can cash out at the right time. That scares me.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
But the good news is if you hold that asset for over a year, that would hit the long-term capital gains tax.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
And that's if you cashed it all out at once today.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
So she could be debt-free today and be in a different place financially.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
She's a renter. She has $20,000 in debt. This would change her life to cash this out. Go buy a house. That actually goes up in value instead of potentially, who knows what's going to happen with Tesla.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
People are so scared of paying taxes.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
And they'll go, here's what it is. All right, I'll pay that out of the proceeds.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
How long have you been living like this?
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Just gone in a poof, a little puff of smoke there. But that's the truth. If you really want to go on this trip, what are you willing to do? What are you willing to give up? And that might mean the truck gets sold yesterday because that's a lot of truck. That'd get you out of debt real quick. Use your savings plus sell the truck. You're out of debt this year. Ta-da.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Book the trip by Christmas if you do it that way. But I think we found the problem. Don't know that he's going to want to get rid of that truck. That's the next job.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
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The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
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The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
So you just low key brainwashed him into going, you don't need to do this debt thing. We make good money. Why are we paying these payments?
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
You went from like no urgency to a thousand percent urgency.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
And I assume now you have some great stories to share from being in the trenches and how this has helped your marriage and got you guys on the same page. You probably feel invincible now. You're like, what area of our life can't we affect?
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
So you still have the Sonic? What's the game plan here?
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
And once it breaks down, you'll have the cash.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Well, mom's a therapist, so you can handle any trauma that comes your way.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
We've got a couple of gifts for you. We've got two every-dollar subscriptions, good for a year, so you can use them, pass them along to someone else to give them some hope to do this journey, too.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
When someone asks how you did this, you can show them.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
That's awesomeness right there. I guess there is hope, Dave. I've been reading the headlines, everything's so tough, inflation, and yet here's this couple who goes, nah, we're going to do our own thing. Mic drop. It's just wild how that works. You've been doing this 30-something years, and there's been debt-free screams every year, regardless of what's happening in the economy.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Yeah, we're going to really get into the weeds with choosing mutual funds, different investment traps. And on top of that, Dave, you know, we think about $199. If Dave Ramsey said, hey, I'll coach you up for essentially $50 an hour – there would be a line out the door. So this is a great value to just really pick your brain when it comes to real estate. And I'll be the proxy for the audience.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Anytime I go, hey, Dave, you nerded out a little too hard, unpack that for us. So I'll be there to help translate a lot of the lingo for the people out there to go, this is the right way to do it from a guy who's actually done it. There we go. And a guy who's on his way. I'm not hundreds of millions in real estate, but I do own a single home. That's a win. That's a win. Yeah.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
You get a pretty penny for a talking French Bulldog. Keep that. That's valuable. Sell the dog. Yeah. What make and model in yours is the Tesla?
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Yeah, that's a great vehicle. And unless you have a severe change in income, I would just keep it and aggressively pay it off.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
This is worth celebrating. Number one, Dave Ramsey didn't tell you to sell the car. Number two, he let you keep a Tesla. This will go down in history.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Why do you park next to me if you're going to plug in your car? You're the one who chose to put your parking space next to the electric charging. That's on you.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Do you have other debt, Mark? Do you have other debts other than the credit cards?
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
There's just less and less to inherit as time goes on. So that's really what you're looking at here. But you're not liable unless your name's on that mortgage.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
The burden falls onto the estate of that person.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
No. Much like news and politics, the reality is actually more entertaining than anything you could write or dream up.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Almost any retailer is paying over $12 an hour.
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Has it been like this your whole adult life, David? Just kind of lack of purpose, no real spark, just kind of going through the motions? Or was there a time where you were lit up, fired up?
The Ramsey Show
Attack Your Debt Instead of Letting It Attack You
Have you ever taken a moment to think, here's where I want to be five, ten years from now? Here's the kind of career field I want to be in?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
What is your take-home pay every month?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And what's your student loan payment every month?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
You know what that's going to do, right? Your $230,000 is going to turn into $300,000. Because the interest still keeps cooking. The interest is higher than what you're able to pay.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Well, you've got to find out what's actually going on there because the interest can still be growing. Even though it's like, hey, you don't need to pay. Don't worry about it. And the interest keeps growing while you sit there. And so that's the math for you to solve is I need to make the most money with the lowest living expenses possible.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Because otherwise, even if you're able to pay $1,000 a month toward your debt, which I don't know you could even do, it would take you 20 years to pay off this debt. And that's if the balance didn't grow by a cent.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And so you're going to have to debt snowball this thing, but I don't want it to take 20 years. I think Lexi has a lot of life to live.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And then what's your next smallest balance if you split up all the loans?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Yeah, what's the smallest loan balance you have out of all the loans? I'm guessing they're split up amongst many loans.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And if the debt's not in your name, I would not be worried about it right now. If it's in mom's name, worry about that later. Focus on the ones that are in your name. Unless you consolidated it all together. It sounds like that could have happened. Hang on the line, Lexi. I'm going to send you a copy of my book, Breaking Free from Broke.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
I hope it gives you some encouragement along what might be a long journey.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Pump for it. Let's go to the phones. Jared joins us in Brunswick, Georgia, up next. Welcome to the Ramsey Show, Jared. How can we help?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Well, you need to have the title cleared, and so have you talked to the DMV or the title office to understand what needs to be done to clear the title?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And they can get in touch with him. It's not going to take a pigeon carrying a piece of mail to get in touch with this guy. That's right. They have all the information when they sell a car from this guy, and they can get in touch with him, and they need to. But it's their job to track him down, not yours.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
My question is, can you go to the DMV and request a corrected title?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
They essentially illegally sold you a car. That's right.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Live from the Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Camel, joined by Dr. John Deloney, and we're taking your calls at 888-825-5225. You jump in, we'll talk about your life, your money, your relationships, whatever is going on.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
If I'm in your shoes, like, again, we're not lawyers, but I would contact one and go, hey, we need to put some heat on this to get this done because right now you can't even drive the vehicle.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
So do you need to get to and from work? What's your situation right now?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
The silver lining is you're not paying payments on a car that you can't drive.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Let's head out to one of John Deloney's favorite places, Fort Worth, Texas. Allie joins us there. What's going on, Allie?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
I know that's not what you're asking, but... Yeah, so you're saying that the downside of him losing out on my 4% match I was getting for two years, what happens with that money?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Okay, but you just have the car loan and the truck loan.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
So how about this? If we're going to talk about, I don't want to miss out on investing, why don't you just sell the truck and the car today and invest the payment you were making?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Okay. So we're not talking about a long time if you paused investing.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
We're talking about a little over a year.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Okay. So you're talking about essentially your match, whatever you're investing now, that thousand bucks a month that you guys were investing, so 12 grand a year, essentially. You'd miss out on 12 grand of compound growth in your accounts. But how much are you investing right now? What percentage of your income?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Here's the good news. You guys are going to double your investing rate. And so missing out on the thousand bucks a month is not going to make a dent when you guys are doubling that for the rest of your life from 32 to 65.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And if I'm in your shoes, if you want to get to investing that bad, sell the car, sell the truck, buy something reasonable in cash.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Welcome back to The Ramsey Show. Christina is up next in Raleigh, North Carolina. Christina, welcome to the show. How can we help?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
So good. What's going on with you?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And to learn this at 25 is such a gift. So don't feel like it's too late. You're right where you need to be. Awesome. Welcome to the gang, dude. We'll help with it all. We'll help you with the financial literacy. We'll help you get out of this debt, and you are the solution. And the fact that you're calling tells me you know that now. So how much debt do you have?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
I like the exact numbers here. Now, you said you have an auto loan. How much is that out of the 88?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Okay. So you have almost 25 on one, 22 on the other. That's 47. What's the other 41? So I have $37,809 on student loans, and then collections, $1,170, and then credit cards is $671.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
So you were excommunicated from the family post-divorce. Yeah. There's a bigger thing going on here.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
But you're making more than that now.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Well, the balance is ministry is a luxury when you're broke.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And you'll make a bajillion dollars more.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Now, the main thing we need to get out of is this car. You said you're stuck in it. What does that mean? Why can't you sell it?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
So what was the original loan you took out for this car?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Yeah, did you roll a bunch of negative equity into this?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Yeah, but why would a car depreciate that much in value in that short of a time? I don't understand how it's only worth $8,000.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And you did private party value, not trade-in?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Yeah. And then you still owe the 25 grand on the repo with no asset to show for it.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
That's why I'm confused why this amount is so high. If they had sold the car.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Yes. But let's pretend in this scenario, you owe all the money. All 88 is owed. There's no way to get out of this. You're going to need to go increase your income by about double. Because here's the deal. I want you debt-free in two years. Would you agree?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
That means you need to throw $44,000 of this debt every single year. Okay. That looks like close to $4,000 a month you need to be throwing at this debt. You're not even making $4,000 a month right now. Do you see the gap in the math?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
So we need to get your expenses down as low as possible to where you're just able to survive, but we're not doing anything else. I don't care if you have three roommates and four jobs. I would rather see you debt-free in two years than hang on to this debt for the next decade. And so it's going to be a lot of hard work, Christina. I hope the financial literacy helps.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
I'm going to send you my book, Breaking Free from Broke. It's going to come with three months of every dollar premium to help you with budgeting and making every dollar count. And that's what you need to do for the next two, three years while you fight these debts.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
That puts this hour of The Ramsey Show in the books. Thank you to all the folks in the booth, to my co-host, Dr. John Deloney, and you, America. We'll be back before you know it. Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And that's why we recommend Delete.me. They help with that.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
I love these reports. So far, get this, they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites, and saved me 77 hours of time. It's incredible.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
From the Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by number one bestselling author, Dr. John Deloney, and we're taking your calls at 888-825-5225. Marlis is in Seattle, Washington to kick us off this hour. What's going on, Marlis?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
How do you guys cover the mortgage?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
But he has no stake in this house.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
But essentially he's renting a house from his wife. Yeah. So I'm trying to play devil's advocate to see his side, and I'm going, yeah, I think I'd be a little bit ticked if I was paying my wife rent, but I have no stake in the equity of this house. It's not in my name. It's not part of my wealth-building journey. I want to go buy my own house and build some wealth then. Do you see his side?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Yeah, but you don't own the house free and clear. And so therefore, I would say in that prenup, here's the equity that I came in with. Now every equity dollar that we build together, you're going to have a stake in. That would be more fair to him, don't you think?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
So I think there's a compromise here.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Why did you guys get married? It seems like you want to keep your lives separate.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
This is The Ramsey Show. I'm George, joined by Dr. John. The number to call is 888-825-5225. Eric is in Atlanta, Georgia, coming up next. What's going on, Eric?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
It sounds like you guys can't afford to live there. Why doesn't you just sell it and you guys go live somewhere you can afford?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
It sounds like this deal sounded nice and now reality has hit and the math is she's going to gift you $70,000 to prop up your life in this house? Why would she just gift you $70,000? Just out of generosity?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
But doesn't that cripple her ability to buy a house in the future? If she gives up $70,000, that would have been a down payment?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Yeah, I don't see a world where this works out or she's not resentful or doesn't hurt her financial future. I would rather you guys live where you can afford to live. What is your rent right now?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
So if she sells, you've got to move out and live somewhere. Right. What's your household income?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Okay. So could you find a place to live that's, let's say, $1,500 a month?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
I mean, it'd be a stretch, but yeah, I think we could... I'll tell you what's a stretch, becoming a homeowner when you're broke and can't afford the property taxes, the insurance, the maintenance, the rising costs of all of that over time, plus the mortgage... That's tough.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Because here's the thing, Eric. I don't want you calling back a year from now and you go, man, we can't afford this house. We got into it with my daughter trying to front some money to get the mortgage lower, but it's just too expensive for us, and now we're stuck with it. What do we do? That's the future. Right. Do you guys have any money right now saved up?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
I would focus on getting a financial foundation for yourselves by getting rid of the debt, getting a fully funded emergency fund in place of three to six months of expenses, and then begin saving up a down payment to where you can do this on your own independently instead of relying on your daughter to help fund this while you guys are still in a bad financial situation.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
So I think we have to have a hard conversation that this dream is no longer a reality and that she needs to just go ahead and sell the house, take whatever profit she gets, and roll that into a future house.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
I'm sorry. I know it's not the news you wanted to hear, but it's what I would do. If you were my dad, I'd have this hard conversation with you and say, Dad, as much as I want you to be able to stay here, it's going to be too expensive for you guys to afford, and I don't want to put you guys in a financial bind in these kind of weird handcuffs. Right. Who was wanting this all to happen?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
We're going to put it out in front of everyone to help you take the right next step. Jillian is going to kick us off in the great city of Scranton, Pennsylvania. What's going on, Jillian?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Was it more on your daughter's side, or was this your idea?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
If you wanted to keep it, the only way to do it would be like an assumption loan or a refinance. But my guess is they're going to say, hey, we can't grant you this. And even if they did, the bank will grant you way more than you can actually afford. They don't care.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And so I think right now the best thing to do is just to go find somewhere you can rent affordably, get rid of the debt, get the emergency fund, and maybe a few years from now we can revisit you guys buying your own place. Okay.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
That's a tough situation, Eric. Sydney is up next joining us in Portland, Oregon. How can we help Sydney?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Yeah, there's a few things. I mean, health insurance would cover you if you get sick. But if you're talking about replacing income, you'd want to look into long-term disability insurance.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
That's what we would recommend. And usually you can get it through your employer. John and I have that through Ramsey. It's very affordable through an employer because of the group plans, but you can get it on your own. It'll likely be roughly 1% to 3% of your annual salary, and that will cover about 60% to 70% of your income.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And then for short term things, just an emergency fund would do the trick. Three to six months of expenses saved up would cover you for the short term. And so that you don't need to buy short term disability insurance. Just get the emergency fund in place. Do you guys have that right now? Are you still in getting out of debt?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Oh, boy. Is this like a five-year? Is it 10 years? Two years?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
No, that's great. You're asking really good questions, and I'm glad you got rid of that index universal life policy. It's one of the worst, most expensive products money can buy. And as you probably learned, it combines two things that should never be combined, insurance and investing.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Who sold it to you? Who hates you that much that they would sell you that policy? An old college friend? Family. Oh, no. Of course, of course. Hey, too brute. Oh, that is awful. Man. How much were you paying for it?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
You guys were paying $700 a month for the pleasure.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
But what was the cash value? Like when you surrendered the policy, what do you end up getting back?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Pennies probably. It sounds like you haven't had it very long, hopefully.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
That's how the insurance salespeople like it. Yes. Okay.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Yeah. Have you got term life in place yet?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
That's the one. Zander.com. They'll get you hooked up. John and I have our policies through Zander. You're going to be paying a fraction of the price. And with the money you're saving, the difference in premium, you can go get out of debt and be free and one day use that money to invest. This is The Ramsey Show.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
I'm George Camel here with Dr. John Deloney. The Ramsey Show question of the day is brought to you by YRefi. With YRefi, you can take control of your defaulted private student loans with a plan that works with your monthly budget. Visit YRefi.com slash Ramsey to learn more. That's the letter Y, R-E-F-Y dot com slash Ramsey. May not be available in all states.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Yeah, that is wild. Chaos. So the envelope system is great for your bills that are more variable and in your control. So things like groceries where you're like, I don't want to overspend. I can cash this out. But, you know, these days I do more digital style. So I have my every dollar budget, which I don't know.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
There was no – it says when our budget was cash-based, but you're not mentioning anything about your budget now. So here's what – I'll tell you what my wife and I do. Maybe this will help simplify it for you. We have one joint checking account.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
me too that's where everything that's all of our spending money for the month every bill gets paid and we have one high yield savings account me too that's where we have the emergency fund and if you want to have another savings account for a short-term goal like vacation fund you can set up another savings account for that auto transfer some money there i would not have five checking accounts moving money around like some kind of weird shell game
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And so how do you do the envelope system in that way? Well, use cash where you can and where you can't, check the budget. And so before you make the purchase, go, how much do we actually have left according to transactions that really happened in our every dollar budget?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And if you have every dollar premium, this is easy because we track, you know, you track the transactions, but the bank statement will show up right there of what that transaction was.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
So the solution is track your transactions daily. Just once, you know, before you go to bed, pull up the phone and see what transactions showed up from every dollar and track it to the right category. And you'll know, hey, we have a little money left. And with every dollar, there's a cool paycheck planning tool. So you can basically digitally fund your grocery bill.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Let's say you have, let's do easy math, $500 a month for groceries. So every dollar can fund $125 per week in that line item so you know I have $125 for groceries this week. When the next week happens, it's going to fund another $125 in your budget so that you know how much you have left to spend that week. So that's a way that's been really helpful to me to set up my budget.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
I have my sinking funds in the budget. I mark them as sinking funds so I know I'm saving up for that long-term purchase, whether it's insurance, a vacation, whatever it is. So every dollar, I think, is the key to your problems and where you can use cash and utilize the envelope system method more physically.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
That's the way to do it because you're going to feel more pain and more friction with those purchases. And so, Matthew, I hope you see this. If you do, reach out to me and I'll hook you up with every dollar on me and see if that helps with your situation. But I love the intentionality. Just took it a little overboard. Yeah.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And I do think the paycheck planning tool will help him because it sounds like he's trying to make sure that the bills are covered and that we don't run out of money. And so another factor that could help is having more buffer in the account. And the ultimate goal, if you can get to where all of your monthly bills are in the account, let's say your monthly bills are $5,000.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
On March 1st, if you can have $5,000 sitting in that checking account, that really helps. And then whatever amount is over that, come next month, you can sweep the rest into savings and leave that $5,000 for next month. That's the simplest, most freeing way. I know that takes a while for people to get to, but having a buffer will definitely help you. Great question.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Brittany joins us up next in Wisconsin. What's going on, Brittany?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
I don't know that we can fully answer it in a five-minute call, but the will will allow you to name a guardian for your children, but a court will still have to approve that guardian based on the children's best interest. And so there could be more to it there. Where you want to look into something, you definitely need a will, but you might want something beyond that.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And again, the will will direct where your assets go, but it won't control how and when they're distributed. So if you're looking for something a lot more nuanced, then you could look into a trust later on where you set that up and you can lay out exactly what happens and when it happens versus a will just saying, here's who gets what. Here's who will take care of the kids.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And so I think a will is a great start. And you can talk to an estate attorney and go, hey, here's my situation. Does this require a trust? But mama bears, that's all I have right now. I just have a simple will through mama bear legal forms. I have a mirrored will. So my wife's will, we just swap all of the names. And that's as simple as it gets.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And most people just need a basic will, but I don't want to assume based, I don't know all the intricacies of your inheritance and custody. It sounds complicated. Yeah.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And so I think a simple will is all you need based on what you've told us so far. And Mama Bear will walk you through all of that. And if you feel like, man, I need some more, I need to get another opinion, you can look into a trust and work with an attorney at that level. But it sounds like you're on the right track. I'm glad you're looking into this. How old are you guys?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
because who knows what's going to happen. For couples, it's the option you want on the website. So go check it out. For anyone listening, if you don't have a will, let this be your wake-up call. Go get a will. 100% chance you die. Go get a will. MamaBearLegalForms.com is the place to go. It's the ones that we trust and recommend and use ourselves. This is The Ramsey Show.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Listen, I know a lot of you would rather watch paint dry in slow motion than file your taxes. But thankfully, you don't have to dread filing when you've got Ramsey Smart Tax. It comes packed with everything you need to file online before the big deadline. That means all major federal forms and deductions are covered with no hidden fees.
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Don’t Let Your Present Reality Define Your Future
Plus, with Ramsey Smart Tax, you can save up to 70% compared to other tax software out there. It's a no-brainer. Just go to ramseysolutions.com slash smart tax and see how simple tax filing can be. That's ramseysolutions.com slash smart tax. Welcome back to The Ramsey Show. I'm George Campbell here with Dr. John Deloney.
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Don’t Let Your Present Reality Define Your Future
Hey, if you're a business owner or you know someone who is or you want to start a business, listen, running a business is hard. Some days the challenges pile up, the fear creeps in, it can be isolating, it can feel overwhelming, and that's why Dave Ramsey wrote a new book. It rarely happens, so this is a big moment.
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Don’t Let Your Present Reality Define Your Future
It's called Build a Business You Love, where he unpacks how he took a business from a card table in his living room...
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
to a 250 million dollar business it's the proven system this is the baby steps for business as close as we're going to get to it and it's going to walk you through the five stages of business the six drivers that move you through the stages and it's going to just kind of be a light bulb moment for a lot of people out there who are going man i feel stuck it shouldn't be this difficult how do i break through this book will show you how pre-order now
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$29.99. You'll get over $350 in bonus items, including the Entree Leadership Hiring Playbook instantly, early access to the e-book, and the enhanced audio book read by Dave Ramsey himself. Pre-order today, ramsaysolutions.com. Or if you're watching on YouTube or podcast, click the link in the description. All right, let's go out to Gail in Louisville, Kentucky up next. What's going on, Gail?
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Don’t Let Your Present Reality Define Your Future
Don't cry or cry. I don't even give you a bad answer yet. It's fine. Is it happy tears?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
If you got a problem, we got a problem. We got a problem.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
And right now, he's just doing his thing, you're doing yours, and you said you communicated about money. You can look at reality all day long, but no one is actually agreeing to change it. Yeah, you've got to do the next right thing.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Thanks for the call, Gail. That puts this hour of The Ramsey Show in the books. Hey, you're still here? What are you doing? You do know that the rest of today's show is playing right now over on the Ramsey Network app, right? All you got to do to finish the episode is search Ramsey Network in the App Store, Google Play Store, or just click the link in the show notes to download the app for free.
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Don’t Let Your Present Reality Define Your Future
Yep, you heard me right, for free. Then right there on the home screen, you can watch the rest of today's show. Bada bing, bada boom. All right, I'm getting out of here. Enjoy. We'll see you on the app.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Welcome back to The Ramsey Show. I'm George Campbell here with Dr. John Deloney. Lexi is up next in New York City. How can we help, Lexi?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
What was the degree and did you finish?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Oh, geez. And are you working in that field?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
So is it a Parent Plus loan or what? Like, is she liable or are you?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Okay. Yeah. And you're living in New York City? Yes. How are you surviving making $50,000 with $230,000 in loans in New York City?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
I think you need to move to a lower cost of living area. What's keeping you in New York City?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
But what are they doing? I mean, just to see them and hang out with them?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
So are they helping take care of you? Are you working full-time?
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
If that's the case, then I would move. If you can make $54,000 in Idaho, you're going to have a better shot at paying off these student loans in your lifetime. But New York City is not the place.
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Break the Cycle of Financial Self-Sabotage
People ask me all the time, George, what's your number one money-saving hack? I'm glad you asked. Nothing makes me happier than helping another frugal friend. So here's the hack. Get on a budget. Seriously, how are you supposed to save money if you don't know how much you're spending in the first place? And that's what makes the EveryDollar budgeting app a game-changer.
The Ramsey Show
Break the Cycle of Financial Self-Sabotage
With EveryDollar, you'll get a clear picture of your spending. And from there, it's easy to see where you can get more intentional, cut back, and save more money. So how much money are we talking here? Well, the average every dollar budgeter frees up $395 in their first budget. That's the hack. And if you ask me, I think you're way above average and you'll save even more.
The Ramsey Show
Break the Cycle of Financial Self-Sabotage
So what are you doing still listening to me? Go download the EveryDollar app for free and start saving more money right now.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Is there a discount for paying cash?
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
But you just told me you have $50,000 in savings and a whole year is $50,000. So you could cash flow the entire next year. And that's without saving an extra penny.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
You're saying, I feel like, I feel like. Let's put it on paper and go, we have 50 grand in the bank. We need 50 more grand one year from now. Here's what that looks like. We need a grand a week. We each need to come up with 500 bucks a week. Here's what it's going to take to get there. What would you do? What would your hack be? I'd go get that side job. Right.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
And have her get some skin in the game, too. Also working. Yeah. So that we're not missing each other. I mean, we're both busy.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
I'd stick to the salad. Those breadsticks will do a number on you.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Well, you got to kind of do a financial audit of your life. Income, what are my expenses? And the best way to do that is through a budget. And our team created an amazing app that's free to you. Go download it. It's called EveryDollar, where you can plan your spending, track your expenses, save for what matters most, all in an easy to use app.
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Your Income Is Your Greatest Wealth Building Tool
And if you've got a spouse, they can be logged in full accountability, transparency. And that's what it's going to take. If you've got money goals in 2025, I don't care what they are. The budget is the crux. of controlling your money goals. So go download it for free in the App Store or Google Play or click the link in the description if you're listening on YouTube or podcast.
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Your Income Is Your Greatest Wealth Building Tool
How much money is on the line here?
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Your Income Is Your Greatest Wealth Building Tool
Okay. And how long have you been fighting this? How many hours have you spent?
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Your Income Is Your Greatest Wealth Building Tool
This was my gut, was that Erin is worth more than the time she's spending and the brain calories she's burning for this. I would be done with it. You said you have the cash to pay off one. We'll fight it on the back end, and they'll write you a check if you want to continue fighting it. And I hope they do resolve it, and they'll write you a check for the difference that you were owed.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
But I would be done with it. I'd pay off both loans if you can today. Attack it with everything you got.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Are you in control of when the payments are happening?
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Can you go in manually and apply money to the principal on one of them?
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
I'd like to get the CEO on the line. I mean, these two loan companies are inept. This is on purpose. They're malicious at worst. They're inept at best. I say malicious. You're going to spend more in attorney fees trying to fight this than you should be owed in interest. So I just don't think it's worth the fight. I would aggressively pay these down.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
I wouldn't even wait until you have all the money in full. I would just start putting all the money you can on the principal every single month until it's gone.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Well, the faster you pay the principal down, the less interest you're going to pay. And so if you just let it sit and they're charging interest, it's going to be worse.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
The other piece of this, Aaron, that I would personally do, I would be researching all over the internet in Reddit threads. I just looked them up. This is not just happening to you. It's happening to a lot of other people. I would see, are there people who are getting resolution? What is being done? Who can I contact? And there's power in numbers and power in other people's experiences.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
So I would be doing a lot of homework to figure out how to get to the bottom of this. But at the same time, I don't want it just consuming every fiber of your being for the next six months.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
But I am Mr. Customer Service. I am Mr. I'd like to speak to the manager. So I get it.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Today's question comes from Lucas in Oregon. I was in the medical field for five years. I left that job to help my dad with his company and take care of my mom who was sick. My mom ended up passing away and I've stayed at my dad's company for three years. Recently, my former boss called and made me a great offer to come back. What do I do?
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Your Income Is Your Greatest Wealth Building Tool
I'm currently making 60K with my father, but his company isn't stable and we're trying our best to get it profitable again. If I went back to my former position, I'd be making 72,000. I just bought a house and need stable income, but how do I leave my dad? I've really helped his company.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Well, one way, the easiest, fastest way is to get rid of the mechanism that you are using to swipe. Is this a credit card that you're using?
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
The red flags with dad's company. Cause Lucas says, Hey, I've been there for three years and I've really helped his company. And yet we're trying our best to get it profitable again. That's scary. That might mean that this business has some serious flaws that you can't fix. Yeah. If it's been three years. That's right.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
And so if it's unstable, you're putting your own family in jeopardy by staying here and you're leaving on the table a 20% pay raise with a more stable company. So it's not to say this is a forever move. Maybe he gets it profitable again and five years from now you step back in or one day you take it over. Who knows? Might be doing him a favor. But yeah, in this season.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
he needs to get someone who can help this business or he needs to figure it out. And I don't think you're the secret sauce. There might be a savior complex going, I'm the one who needs to save this. And with mom passing, that adds a whole other element of trying to stick together with the family. But I think, like you said, Ken, it's going to lead to resentment.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
When will the wages be garnished and how much per month or per paycheck?
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Okay. And will you be able to still accomplish your budget with 80% to 90% of your take-home pay?
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Okay. So it's either I pay off the debt faster now, knowing that it'll slow down later when the wages are garnished. Right. Okay. Yeah. I mean, you're not in a situation where you're going to owe six grand all at once, which puts you in jeopardy if you don't have the money. So I'm okay with using this money to expedite your goals, knowing that I'm going to need to ratchet down my budget later on.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Okay, so just really the car is your consumer debt.
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Your Income Is Your Greatest Wealth Building Tool
And this will get it down to $18,000, and then how quickly can you pay it off at that point?
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Well, it's so much more fun, Simon, when you're debt-free and this money can go toward building your future instead of paying for the past.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
So I love that you're thinking like this at 22 instead of, how do I upgrade my life now that I'm in my big boy job? Instead, you're going, hey, I want to make sure I make the most of this and don't blow it. And so that's where the budget is going to come in handy. And so you're going to list out your income. Do you know what your income will be?
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Let's say if you cut up the card and you only had the cash, which was only enough to cover your bills, you know what you would do? You would just cover your bills.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Well, you'll include that in April's budget.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
And when that happens, you can apply it to your next goal. That might be for you getting your emergency fund in place. Do you have three to six months of expenses saved up right now?
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Your Income Is Your Greatest Wealth Building Tool
Let's go. Okay, and then are you investing right now in the company retirement plan?
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Your Income Is Your Greatest Wealth Building Tool
I would ratchet that up to 15%. You make amazing money with no debt. So you're going to have no problem finding more margin to throw toward maybe a down payment for a savings account there. But that's going to be your key. I would have a focus goal. And for you, that might be that down payment on a house. Would you agree that's the next goal once you're investing?
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Your Income Is Your Greatest Wealth Building Tool
That'll come later. Right now, I want you to find a primary residence as you get older, and it's going to take a lot of money, especially in the Boston area. So I would sock it away, hang on the line. I'm going to send you every dollar premium, our budgeting app, for free so that you can get started and make a plan for this.
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Your Income Is Your Greatest Wealth Building Tool
You use the cash to eat and cover your bills. I don't have enough to eat, and then I'm spending all my money on fast food and takeout. There's a big difference.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
They're going to wait until they get married. Like together?
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Okay, so we'll call it. And are you wanting to immediately, you know, try to have a family at that point?
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Your Income Is Your Greatest Wealth Building Tool
My take is that if this is, I mean, this is a very unique situation. So I'm not going to say this is blanket advice for anyone who called in. But for Kelly, I would say let's pause the baby steps and let's both stack up as much cash as we can. Yep.
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Your Income Is Your Greatest Wealth Building Tool
make sacrifices needed, make minimum payments on the debts until we're married, we have the money to do the surgery and the reversal, and then we'll push play on the baby steps. All right. That's your take, huh? That's my take. I mean, this is, you know, starting a family that kind of supersedes the baby steps.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
If this was, let's say, you know, IVF or something like that, Dave would say, hey, let's pause the steps and let's save up to pay for this in cash. Yeah. The goal, the A1 is not going to more debt. A2 is pay off existing debt.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
So what if we aggressively said we're going to save up the $10,000 and then pay off all of our debt before we're even married?
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Well, now there's a total goal of, you know, obviously it's not combined because you're not married, but we're looking at $75,000 paid off in, let's call it seven or eight months.
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Your Income Is Your Greatest Wealth Building Tool
So collectively, can we be throwing $10,000 a month at these debts? That might look, you know, you're throwing $4,000, he's throwing $6,000, whatever. But the goal is, can we be debt-free with money in the bank to pay for this? And you've got to pay for a wedding, right? Is this a small courthouse situation, or is this lavish?
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
I'm tweaking my advice, though. I'm going to rescind it and go, let's attack this debt, and then we're going to be able to save up for the surgery within a month at that point, once we're married.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Yeah, we're not talking about waiting two years. We're talking about waiting a month or two.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
The reason I like putting the debt first is it puts fuel on this debt-free journey because now you have a much deeper why. And when you have that deeper why, you're willing to take on that second job. You're willing to do the extra shift. because you want to get to that surgery and get to having that family.
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Your Income Is Your Greatest Wealth Building Tool
I thought things would kind of just start trending nicely. We're going to see rates start to continue dipping slowly, but it's been a little bit of, whoop, it's back up, whoop. All right, it's down a little bit, whoop. So I think we're going to see more of the same in 2025. I think over time, we're going to see a dip, but I think in the meantime, it'll be a little bit of a rocky road.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Love to hear it. And what's the question?
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Your Income Is Your Greatest Wealth Building Tool
How often is she asking and how much?
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
He's the best part-time job out there. I get to sit at home and I ask him for money and he sends the check. Do you see what's happening here? You're not helping her, you're enabling her. And while I'm with you, it's great to let's respect, you know, honor our mother and father. It doesn't mean we enable them and continue to let them, you know, live lives that are of misbehavior.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
So the truth is you can't. I wish we could change people because I know you love your mom and it's a very honorable thing to want to do. But I would not fund her retirement and go, oh, mom, don't worry about it. We got you. We'll sacrifice our own financial future since you didn't prepare at all. And if you're going to give her money, it's got to be a gift, which it has been so far.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
But there's no good future here. What if she lives to be 99 for the next 30 years? You're just funding her misbehavior.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
And we've got to look at the long-term future, not just how do we help her in the next year. And so we're going to have to let her experience some pain so that she actually wants to make some changes while she still has her health. Is she healthy?
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
That would be the only reason I need to say, okay, if you're not comfortable with this, we're not doing it.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
She's going to have to rely on the government for the rest of her life and make peace with her decisions.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
She needs to work as long as she's physically able to create as much income as possible, save as much as she can of that income, get an emergency fund in place, invest as much as she can. Because compound interest, you know, she could live a better life than if she does nothing.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
She's not going to have a wild retirement, but we need to paint the picture of, hey, mom, here's what the next 10, 20 years looks like if you continue down this path.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
I think it'll be pretty expensive for her. She can look into it, but it might be out of the budget.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Oof. It might be, hey, mom, be with God and the government. Medicare and Medicaid is going to have to take care of you.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Okay. What helps me is having a goal for money instead of just it existing. And so what I want you to do is start to reframe that money and go, nope, that's not take out money and shopping money. This is get out of debt money. And I'm going to allocate that money beyond once my bills are paid, we're going to prioritize our budget. So your budget's great, but it's just a plan.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
If you don't follow the plan, the plan's useless. I've created workout plans that I never follow. I never actually worked out. On paper, it would work if I did it. I'd have a six pack right now, but I don't. And the same thing applies to your money. So once you start laying out your budget going, okay, I have to cover my rent, my insurance. I need to put food on the table.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Yeah, that was my question is how great is your life in Salt Lake and what would it be like where you're going to move to? Would you be miserable in this new area? Is cost of living any different? Family, you know, as you weigh those pieces, because here's the thing, like there's going to be a nice, you're going to find your new dream home wherever you move to eventually.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
It may be a year from now when you rent for a year and you go, wow, that was a fun adventure. So I don't want to make a long-term decision just based on, well, I like the home we're in. So where would you be moving? Right.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Beyond that, any extra money is going to go toward debt. And once I'm out of debt, you can start to loosen the reins a little bit.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Happy wife, happy life. You said, I love my home. Your wife says, I hate this home.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
You said, I like the home we're in. You like the price point of the house you're in.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Yes. George, if you're making more money and moving to a lower cost of living area, you're going to get more house. So you could get a better house for the same price for the one you're living in.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
If you move to Kentucky, for example.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
It's amazing. There's this website. You type in a zip code, it'll show you homes. Yes.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
It always sounds like a good idea in theory until you have to deal with the reality of it. I love Dave's philosophy on this. He goes, if you lived in Kentucky, would you go searching for a rental property for a townhome in Salt Lake City? The answer is no. So therefore, let's get rid of it. We're holding on to it for the wrong reasons. And you need that money to then roll into your next house.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Listen, if you take the offer and you're going to make the move and they're not covering any moving expenses, then we'll pause the baby steps, stack up cash until we make the move and we settle in. Then we'll hit play again. And making, at that point, $150K, you're going to knock out your debt faster. and you'll likely have a home eventually.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Maybe you rent for a little while and just put that money from the profits and savings, and you'll get a home a year from now once you've settled in, figure out the neighborhoods, schools, all that good stuff.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Do it. You guys have been so smart. If you get off the phone and say, hey, babe, we're moving. I'm taking the offer. Would she be stoked?
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
I still remember 10 years ago, 23 years old, I was frustrated, anxious, and flat broke. I had followed all the ways that toxic money culture had led me down from well-meaning parents and misguided guidance counselors, and it left me with a pile of debt. But I'm telling you, it doesn't have to stay that way.
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Your Income Is Your Greatest Wealth Building Tool
Over a decade, I went from broke to millionaire, and I break it all down in my new book, Breaking Free from Broke. I'm going to show you just how toxic this money system is and how you can break free from credit scores and credit cards and student loans and auto loans and investing traps and finally live a life that you're not exhausted by, a life with more margin, more options, and more peace.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
If you want to check out the book, go to ramsaysolutions.com to get your copy of Breaking Free from Broke. That's ramsaysolutions.com.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
So there's no one in mind. You were just saving up?
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Your Income Is Your Greatest Wealth Building Tool
And so the vehicle is technically under the business, but it is – Dan, you signed the papers, not the imaginary business guy.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
You're going to make, what, $16,000 in profit that you could then use to pay cash for a used truck? I could, yep. That's what I'd be doing. Ding, ding, ding. Listen, if we're on a first date and you're telling me about your $50,000 gum truck, that's a red flag for me. You know what I mean?
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Your Income Is Your Greatest Wealth Building Tool
Then I go, he's not charging me for his truck payment as part of this. I see a guy with a beat-up truck and go, he's going to charge a fair price. I see a guy with a $50,000 truck and go, I'm getting taken to the cleaners.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
So sell the truck, use the proceeds to buy a used truck. You can use some of your savings if you need a $17,000 truck, if you really need it. And then whatever money's left over becomes your emergency fund, and let's start stacking money on top of that to get to three to six months of expenses.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Then we can start investing, and any money beyond that, we can begin saving up for a ring in a separate account. But truthfully, I wouldn't even start saving until I meet this person.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Yeah, clearing that $700 payment, it's not going to take you long to save up another $10,000 for a ring. Yeah.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
You got it, Dan? We're talking a year and a half at that point. Dan. You probably should be dating this person for a little while before making that kind of commitment. Yeah.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Oh, there he is, folks. There's George. I thought it was going to be all rainbows and gumdrops.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Mortgage against her parents' house. $29,000. They want to move. We need to loan in our name.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
Yeah, I would refinance. That's probably your best option for the best rates and terms on that thing is just to refinance it. Because the HELOC will have a variable rate in a lot of cases, and it's going to be higher than what you'd get on a traditional mortgage rate. And the amount shouldn't be a problem to get that amount. Small amount when it comes to student loans.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
I don't know how we do this. You know what? I'm going to send you a copy of my book, Breaking Free from Broke. Read that all the way through. Read the Margin is Breathing Room chapter. Read the Spending is Self-Control chapter. That one was written for Charlene. It's got your name on it. So hang on the line. Kelly's going to pick up. We'll get your address and get you that book.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
And personal loan, again, not going to have quite the terms of a mortgage. So I'd contact our good friends at Churchill Mortgage and get a refinance done on this.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
You give me a lot to chew on today, Ken. Yeah. So make it stop. You can do this. You have the ability to keep doing this.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
He could be like College Hunk getting rid of gunk. I don't like where you're taking this.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
And I hope 2025 is the year you build the discipline to say no. Today's the day, Charlene.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
So we're talking Friday or Sunday? I'm going to go Friday. Okay. So Friday, end of business, no more Happy New Year.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
I think you have to reciprocate, otherwise you're a weirdo. Yeah. I'm not going to offer it up past week one. So you're in agreement with me? Do you agree with week one, we should all stop? Unless it's an acquaintance I haven't seen in a while and it's still within the two-week window. I'm going to give it two weeks for someone you haven't seen. Maybe it's a phone call, an email.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
I will say this. I just think it makes everybody's life easier. It doesn't add any value to my life. It doesn't bring me any joy.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
That was smooth. See? You fooled me. But now you're asking about the holidays.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
I'll screenshot it, print them out, and assort them all in an envelope.
The Ramsey Show
Your Income Is Your Greatest Wealth Building Tool
So you currently have enough to get through one of the years in savings. So we're really concerned about the final year. Yes. When is the money due? Is it due exactly a year from now?
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
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The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
There's no purchase needed to win. Plus, you'll get bonus entries if you refer other teachers. So don't wait. Enter before April 30th at ramseysolutions.com slash teacher. That's ramseysolutions.com slash teacher.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
And that's why we recommend Delete.me. They help with that.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
I love these reports. So far, get this, they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites, and saved me 77 hours of time. It's incredible.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
I love it. So you got to be sure to check them out. Ramsey fans get 20% off their annual plans. Just go to joindeleteeme.com slash Ramsey. That comes out to less than nine bucks a month. Super affordable.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So you're making sacrifices, right?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
That's true love. If a man is willing to sell his truck for you, he might be the one.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
What kind of debt is your one 60? What does that make up?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
That's the rest of it. Okay. So you sell the car. Can you get $38,000 for it? Will you be able to break even or make profit?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
But you'll need a car to still get around, right?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So you upped it to $250,000. Is that sustainable? Do you want to continue doing that?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
For free tools and resources to help you reach your home goals, go to ramseysolutions.com slash real estate or click the link in the show notes.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Got it. How much are you working? How many hours per week on average?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay. I'm wondering, could we find you a job that's maybe 15 to 20 hours but pays as much, if not more? That is a little more consistent. Yeah. Would that solve all of your problems?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay, so paid for a car. And you're cash flowing college right now? How are you paying for that tuition?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Do they know the situation that grandpa's college money ran out?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And they go, we don't give a rip, take out as many student loans as you need, bud. You're a grown man.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And you have all summer to work too, to try to cashflow that?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Do you have roommates right now?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And have you applied for all the scholarships and grants? Is that part of your part-time work?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah, I mean, it's going to be a struggle when you have a lot of expenses coming out every single month to cover your normal life plus school. And so, you know, it's going to take a full-time job just to cover this, which is going to make it really difficult.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So you're going to need to find something that pays more, but you can work less and still cover all of your bills and create a little savings cushion to cash flow because your next payment is going to be in the fall. Are you paid up? Yes.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
What's the end goal with the finance degree? I'd like to become a financial advisor. Okay, here's the good news. I'm going through a certified financial planning course right now completely online, and it is not nearly what it costs for even one semester at Arkansas. So I'm telling you that to say there are other paths to the thing you want to do.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And my friend Ken Coleman says it this way, is it the only way or is it the best way? And right now you haven't explored all of those options. And so I believe it's called Boston Institute of Finance. I think that's the one. They've got an online course you can take for a few thousand bucks total. We'll get you through this whole thing.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And so that might mean you don't need to spend another two years. You can go through this course in a year, get your foot in the door as a financial advisor and start getting some clients and get your experience hours.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
That's the goal. Take debt off the table, get creative, do your homework, and you will be shocked at how much easier it is to just do it. Go to school debt-free as a finance major.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
It's your cash flowing everything. There's no worry about the future and retirement and kids college. And you've got some extra money and you want to do the selective surgery for it.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
That's the guy I want to hire.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You feel like you failed, but you didn't. You just chose a better path.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Oh, I like this. All right. This is one that if you're my age, maybe your parents or grandparents have fallen into.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
It's a big one. You see commercials in between, I don't know, Snuggies and timeshares for this thing on late night TV from a washed up actor. So here's the definition here. A reverse mortgage is kind of what it sounds like. You're converting your home equity into money for you. So it lets homeowners that are 62 or older borrow against their home equity.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So instead of making payments, the bank will send you money either in monthly payments as a lump sum or through a line of credit, similar to a HELOC. So here's the deal. With the loan repayment side, there's no payments while you still live there, which is why people are like, oh my gosh, that sounds wonderful.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
But the loan plus interest has to be paid back when you move, sell, or you hit the old dusty trail and pass away.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
But then if I'm that person, you go, well, someone else's problem. Yeah, that's the people you love. It's going to be their problem. So here's the deal. As you borrow, your home's equity dwindles down. So let's say you start with a paid for home. It could end up where half of that is gone and you now owe $250,000 on a $500,000 home.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So you're eating up your biggest asset and you're leaving less for your future and your family. And by the way, they're super expensive.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
They're one of the worst financial products on the market because of high upfront costs, origination fees, closing costs, mortgage insurance, and then the interest keeps piling up, which by the way, if you're getting this as a monthly payment or a line of credit, the interest is going to be variable.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Which means the lender's passing on the risk of variable interest rates to you.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
People fall for this. It's immediate cash. I can get money during retirement because I didn't save. There's no monthly payments. I get a break from mortgage payment. That's great. And then flexible use. I can spend it on whatever I want, medical bills, travel. Here's the cons. Here's where it gets real. Super high cost, like I mentioned, loaded with fees.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Then you're losing your home's equity bit by bit.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You have nothing to leave to your kids and they have to deal with this mess. And then there's foreclosure risk.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah. You miss property taxes, insurance payments, and you could lose the house. These are for broke people and they think it's some shortcut that's going to let them live their best retirement life and it ends up just making things worse.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So here's better alternatives if you're thinking about a reverse mortgage or someone that's in one. Downsize. Sell the house. Buy a smaller one. Pocket the difference if you really need money. Investments or savings. Use retirement accounts for income instead of one of these terrible products. And then lastly, rent out part of your home.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You can make it like a sitcom situation out of this. You know, just have someone living in there in a spare bedroom, giving you 500 bucks a month. That'll replace the payment without the risk. And that'll help you out. So reverse mortgages seem like a quick fix, but they have long-term risks that could wreck your financial future. So look at other options. Stay debt-free.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Make a commitment to do that and keep your home working for you, not the bank.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
For the good of the group and knowing this is a family-friendly show, can you entail what this $35,000 includes?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So in this case... You're putting just fuel on the fire of misbehavior by just throwing money at this. So what I would do is define what it means to help take care of sister. Does that mean we enable her for the rest of her life and fund her in whatever she wants to do? Or does it mean there's strings attached?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Do we help her get on her own feet and cause her to be independent and have her go through rehab and put a certain dollar amount every month and increase it over time as she's able to stay sober? I think we can structure this in a way where it actually helps her instead of just makes the problem worse.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
um it would be um a tummy tuck okay and and a lift okay good got it good here's the thing i think guys do more to their forerunners and spend more on that so i got no problem with the selective surgery for all the guys but i can't believe she spent all that listen bro let's talk about that under light led kit you needed to have live like no one else so later you can live like no one else that's what it's about
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
It almost feels like she needs to hit her own rock bottom and be willing to change before we throw any money at this problem.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
It's just going to disappear into the ether.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And then you're going to be more resentful. And so I don't think that honors your father's wishes either.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You didn't know you were paying for it?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You didn't know you were paying for it? No. What does it cost every month or every paycheck?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And what do you mean by tax? Are you talking about the premium for the life insurance? I don't understand what you mean by the taxes are going up.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay, so they're paying for it, not you.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Essentially, the IRS sees this as income from your employer because they're covering this expense for you.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
But it's on you to pay the taxes. Okay, I understand that.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And it's going up, and it's now $485 a year.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Do you know what the face value of the policy is?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Is it $100,000 or is it $1 million?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay, so nobody relies on your income. If you were, God forbid, you were to pass away today, nobody's going, oh my goodness, what am I going to do?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Well, it's too late now. You're not going to get reimbursed for the years you paid for it. So I think we need to let go of that resentment. I can tell you're up in arms about this. I'd be frustrated too. And part of it is we weren't paying attention about what was happening with our paycheck.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Well, you guys have done really well. You're doing it by the book. You guys are debt-free with the emergency fund. You're cash-flowing everything in your life. You're on the verge of being a Baby Steps millionaire. And so this might be a shock to a lot of people listening. I can't believe they said they could. Listen. Do it. We never said don't spend money.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And so at least, you know, going forward, I'm going to be looking at exactly what's taken out of my paycheck. If something seems off, I'm going to go to HR. And so you need to look into your own policy, look at the contract and look at the waiver and go, what do I need to do to make this go away? You are so right. And be the squeaky wheel. I can tell.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Cindy is the squeaky wheel, and the squeaky wheel is going to get that grease.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay, here's what you do. Keep a record of every single piece of communication, who you spoke to, what time, what they said, what document they said you needed, and get a next step. Regardless of who you talk to, say, okay, what is the next step?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You got to figure this out for the first time.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You need 10 to 12 times your annual income.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You know, I'm a frugal guy, but once you hit that different place financially, they make a great income. It's a small part of their world, and they're super young.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Absolutely. So don't just rely on your workplace because guess what? You leave that job, you lose that measly insurance. You need insurance on your own, separate of that. Jump on to Zander.com and get a quote. It's super easy and it's way more affordable than you even think.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Today's question comes from Isaac in Maryland. Should I purchase term life insurance even if my employer allows me to purchase voluntary life insurance up to $500,000? Would a combination of voluntary and term life insurance be wise? I'm 41, so if I'm going to get term life insurance, I would like to do it now for 20 years instead of waiting. We did. I know it. And, you know, you can do it.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You said you want it for 20 years. You can do a 20 year term policy on that and do a combination. You may not need the employer one on top of that. So you may just want to go 10 to 12 times your salary on your own and not pay for the employer one unless the employer one is just such an incredibly cheap deal. It's like five bucks a month or something.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
At least half a million dollars.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Because you think about, let's say, $50,000 salary times 10. You're looking at half a million on the short side, especially now with how much child care costs.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
I mean, you've got to hire Mary Poppins to do this thing.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
daycare alone um you talk about all the things they're running and doing and chauffeuring around and cooking and cleaning and taking care of all the household pieces real monetary you need multiple people to fill that role so you need to have at least half a million on a stay-at-home spouse so so good all right we've got aisha in new haven connecticut what's going on aisha
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
They get a fast pass to the front of the line.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Could he do contract work for someone else full-time and make more? No, he's self-employed. I know. I'm saying, could he make more working less for someone else versus on his own?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah, what you're saying is I can only throw $1,000 a month at the debt total.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You guys are paycheck to paycheck. And so throwing a little bit of some pennies into retirement is not going to solve this problem. What will help you retire with dignity one day is at least being debt-free and you having a lot more timeline to go back to work. You're going to need to do that eventually unless he gets his income way up.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
I could knock out your debt and you could rent for a while.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
I don't think it's a choice he has. He's going to have to work until his body says no.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
But what ends up in your bank account? Is $4,754 every month?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay. Now, I see here that you don't have any debt. You've got about $5,000 in savings? Roughly. Okay. And I see if you can, I'm looking at the every dollar budget, you are 73 bucks over budget every single month based on all of the expenses you laid out. So you are definitely living paycheck to paycheck. In fact, you're in the red a little bit. Does that sound right? Yeah. Yeah.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
It's pretty rough. Pretty right. Okay. So let's help you out here. What is your next goal? Looks like your savings is low because if you're in baby step three, we need to fully fund the emergency fund. Correct, yeah. And if I see this right, you've got $200 going into savings, but you're also, you skipped to Baby Step 4 and you're investing $248 a month. Is that true?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
If I told you you could be a multimillionaire at 21 if you just follow the Baby Steps, would you believe me?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay. So what if we pause your investing to get you some financial foundation? Because that'll free up $248 that can now go toward that emergency fund. Because at this pace, it's going to take you two years to get a fully funded emergency fund. That's too long. Right. So that's some money right there we can free up.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So what I'm going to do is I'm going to move that to zero in investing and add it to your savings so that you now have, what's that, $448 going to savings. Tracking? Okay. Now we still have to find some more room. We're still $73 over budget. So, Jade, look through the list here of the expenses. I assume your income can't change. You can't do anything overtime. You can't get side jobs.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
How much flexibility do we have on the income side?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Is it a month away or a year away? Uh, probably less than three months away. Okay.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So we'll just for this sake's budget, we're not going to include that, but that could be a game changer going forward for your next goal.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah, I got two questions. Number one, way to go. You're 18 and you're making $14,000 a month legally? I mean... Right? Is that true? Yes, sir. Number two, who hurt you? Where did this idea come from that I got to have this all done by 26 or else? Where did this idea come from?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Per vehicle. So it's 400 a month. That's what's in the budget. And there's not much we can do there. Are you driving a lot or is it more your wife?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Can we get rid of the truck? Uh, yes we could, but I'd rather not.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
All right. So we can't really move the income. We can't move the rent. But I see a bunch of bills here that can go. Who's watching all this cable?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Well, you got $47 in subscriptions, too. So you got $88 going out in cable and subscriptions.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yes, we do. Are the phones kind of being financed through the plan?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay. Who's the carrier? Because you are overpaying for two phones. It is T-Mobile. All right. You're paying $65 a pop. I would switch to a budget-friendly carrier like Telo or Mint or Boost and reduce that down to... You could get that down to $50 easily. Right. Which would save you a good, what, $80? Yeah. Just by doing that this month. 80 bucks a month freed up just by doing that.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Now, if I cut your phone bill down to 50, right? And I cut, let's say we can cut cable and we just keep one of the subscriptions and we cut a few of the subscriptions. We get it down to 30 bucks for subscriptions. Now, instead of being 70 something bucks in the hole, you're 63 bucks in the black. Just by doing those few things without changing your rent or your income.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So I feel better about this already. And on top of that, have you reshopped your insurance lately, your renter's insurance, your auto insurance?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
There's not a whole lot else here, Jade. I mean, groceries, you're feeding four people. Yeah. That's 800 bucks in today's world.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You work for yourself, so that's going to be right in the mirror, my friend, if you're your own boss. But I like the attitude. I just want to make sure the motive is a healthy one because I get a lot of calls and questions from people who are in your shoes. They don't make the money you make, but they go, I need a million dollars by 26. And I go, why?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Oh my goodness. Well, number one, I make it fun. And so I'm the proxy for the audience. Last time, just so you guys know, I got punched by Dave and he threw a chocolate chip cookie at me.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So I know it sounds like nerdy and boring, but we really bring it to life.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
That's right. I remember that. I miss me with that. But really, we answer your questions. So you could submit the questions live via email, and I'm taking them live. Yeah. We're sorting them and going, hey, this one's really going to help a lot of people out there. And so I'm getting a lot of these questions in my DMs. Hey, I don't even know where to get started.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Or hey, I'm in Baby Step 4, but is there more? Mm-hmm. Or, hey, I'm in Baby Step 7. What can I do beyond the Baby Steps? We go really deep, more than we ever have on this show, and it's a really good time. You're going to walk away with a lot of value for just less than $200 to get five hours of coaching.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You have seven days for the standard ticket of $109.99. You have seven days to access the recording. And so if you want to go back, listen to it again, take notes. If you missed it on the night it was live, don't worry. You have access to it.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
RamseySolutions.com slash events.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You go, well, I just, I feel like I'll never be wealthy. And so there's this element of just chasing and this element of I don't want to get burnt out. So I'd rather you sink your teeth into something that you love to do and continue to work. But the way you phrased it, you said, I just want to be able to let go of this. So here's the deal. 144 grand a year, that's 12 grand a month invested.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
What would make them not forgive it? It sounds like there's a stipulation here.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay. So they basically bought you a house as a kind of a gift instead of funding college. They went, hey, if you want to get into real estate, you're doing well. We'll just go ahead and still give you that money in a different way.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay. And you would rent out one half and live in the other?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay. How much money do you have in savings right now?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Hey, if you're old enough to buy a house, you're old enough to move out and live in a house, right? Yeah, no, that's right. Who's living in the duplex now?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So you're going to kick out a tenant to live in one of them?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Eight years of that at a 10% return. You'd have 1.6 million sitting in a taxable brokerage account. So that's one strategy. That's without any other rental income or anything. That's just if it was spitting out 10% on average. I understand that's a crazy thing to say.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Here's what solved this for me, Logan. Let me unlock this for you. You need to label your money. Right now it's just labeled savings. It needs to be labeled emergency fund high yield savings, vacation fund high yield savings, car upgrade high yield savings. And that way there's no guilt when it comes to what this money is for and should be spent on. You've got it labeled.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So an emergency fund for you for six months right now doesn't even really make sense because you don't have a lot of expenses. But let's say it's $25,000. That leaves 15 grand of money you can assign to whatever task you want. I would say, all right, we're going to take this four grand vacation.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
The other nine grand we're going to put as a car upgrade fund or a home maintenance sinking fund for the duplex, whatever you want. But I would label them and put them in separate accounts to help solve this in the future.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Short answer, enjoy the vacation. You're doing very well for your age. You've done a great job. Stay out of debt. And I would move out as soon as you can because I think you have a maturity beyond a lot of older callers that I talk to. Yeah. And there's kind of the comfort crisis vibe.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You know, Michael Easter's book of if I'm in mommy and daddy's house and I'm living rent-free and I'm making money for my tenants, what real benefit is there to ever move out?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
He is the renter and the landlord. It's going to be an awkward phone call when the HVAC goes out. Hello, hello.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So that's one strategy. Okay, $1.6 million. If I could take out $100,000 a year, that would probably last me a long time. I don't know that you're going to retire off that forever, but that'll buy you some thinking time to figure out what you want to do for the rest of your life.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Just know the goalpost is always going to move, my friend. So stop chasing. This is The Ramsey Show.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Awesome. Well, thanks for joining us. Glad you're a new listener. Yes and yes. So yes, you're going to wait until you have all of your debt paid off. You have a fully funded emergency fund before you begin saving up for the down payment. The answer is simple. You want to free up as much money as possible to get out of debt as quickly as possible.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And so trying to do seven things at once means you're not going to accomplish any of it. You're going to stay in debt. You're never going to make progress on the down payment. So just aggressively attack the debt and keep renting while you're at it. How much do you have left?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Well, you know, when you mentioned, Sam, that he can afford the truck, by definition, if he couldn't pay for it in cash, he couldn't afford it. So what you're saying is he can afford the payment. That's fair. Right? And what I found to be true is that everyone can afford the payment until they can't and until it steals from their paycheck, it steals from their future.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And so if he really cares about this future dream of land and marriage, I would go, you know what, the truck is, I'm going to have some delayed gratification and buy the truck when I can afford it in cash and probably buy one that's a lot cheaper right now. Because we got her debt to clean up, and I'm willing to make some sacrifices to get us to a better place financially.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
What she does with that is her business now. That money's gone. I'm just wondering, do you have a way to get in touch with this person if they cut off all communication?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
I'm guessing it's too late to go, hey, I need to get out of this. Would you refinance the loan into your name?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And I'm guessing this credit was so bad. They work with these shady companies like Exeter.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And then... I'm guessing the interest on this thing is like, what, 12%, 15%?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
We're running out of time, Gene, but I'm going to send you a copy of my book, Breaking Free from Broke. And in the book, I talk about this one line that will change everything for you. It's not all your fault, but it's your responsibility. So like John said, we have to let go of the anger and move forward and go... Jean has a $100,000 mess to clean up. In your own life, right? In your own life.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And so you're going to have to get your income up. That might mean a second full-time job once you get off the first full-time job, but you can get out of this. It's going to take a while, and it's going to take stop borrowing money, and obviously you're done getting scammed. So sorry you're going through this, man. This is The Ramsey Show.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
This is The Ramsey Show. I'm George Camel, joined by bestselling author Dr. John Deloney. We're taking your calls at 888-825-5225. You call us and we'll help you take the right next step for your life, your money, your emotional health, mental health, relationships, whatever is going on. Tanner's up next in Manhattan, Kansas. What's going on, Tanner?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
What's it made up of? How much is in there?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
All right. So you told me your stated goal was I want to be able to own a home and retire one day.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
So you couldn't even do it immediately. You'd still have to wait. Yeah. Correct.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
What will your household income be once you guys are married?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Okay. That's going to take a sizable nest egg and a pretty solid savings rate. So how much are you able to save right now? You're saying you got almost no bills. So out of that $2,864, how much is left over?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Okay. Sounds like your parents might be trustees on this thing where they can control it. That sounds right. Okay. Do you have any savings?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And with your newfound income, I would begin paying it off in the meantime. And if you're able to get access to it to knock this out faster, that's great. But there's another piece of this that I want to make sure you get, and that's I want you to be able to have your own investing savings muscle and not rely on this trust fund. And it's not because the trust fund's bad.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
I just want you to have the muscles where you know, if I needed to put 5,000 of my own money away every month from my income, you could do that. And that's going to be a really good habit for both of you to build as you build wealth together.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
From the Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by Dr. John Deloney this hour. The phone number to call is 888-825-5225.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
company for 1k and then afterwards i meet that 15 do i go to my trust and max out roth or beyond the 15 you'd go into baby steps five and six which would be safer kids college i'm assuming you guys don't have kids and then baby six is attacking a mortgage do you guys have a house or will you
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Okay, good. So if I was going to financially coach you guys as premarital counseling, I'm going to go, let's get gung-ho on this debt. Let's take all of our savings, future income. If we can dip into the trust fund, let's knock out this debt fast. Let's get a fully funded emergency fund, begin investing 15%. Beyond that, I would begin saving up a down payment for a house. Okay.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And if you need a car in the meantime, let's set up a sinking fund. Is this like an emergency situation or is this a year from now we need a car?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
That's a rite of passage for every Texan.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Yeah, the conversation might be grandma and grandpa go, yeah, we'd love for you to use this as a down payment on a house and get your financial future going and knock out her debt and get you guys some, you know, the right financial steps.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
That'd be an interesting call to get grandma on the line. That's right. Say what's going on here. No, absolutely. Use it forever. He wants. We just wanted to leave a legacy. And, you know, as long as you're not mismanaging the money. That's right. Which John and I would say paying off debt is not mismanagement of the money. But I could see a family going, no, this is for us to build wealth with.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
This was actually for you. Not to pay for someone's past mistakes and debts. That's right. That's right. That's not who this family is. You just never know. Yeah, that part gives me just some pause. You got to take a Tums just thinking about some of those conversations. But the idea of a trust fund, I mean, that's legacy. As much as people make fun of, oh, you're a trust fund baby.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Okay, that's in a savings account? Mm-hmm. And no debt whatsoever?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And I'm like, go create that same privilege for your family if you're so upset and jealous that someone would have money left over instead of leaving their children with a pile of financial mess to clean up.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
But it's not a sit back, relax in a hammock for the rest of your life situation. So I think there's a lot of wisdom there, Tanner. And you're asking some great questions, especially at 23. At 23, John, I was a knucklehead, still making a lot of mistakes. And clearly, this is what happens. It's not just the money side.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
It's the character, the financial literacy that was built by his parents, his parents' parents. And the Bible is very clear. Leave an inheritance to your children's children. Mm-hmm. I believe that's not just about money. I mean, that's, you know, inheritance of a lot of things, character.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Thanks for the call, Tanner. This is The Ramsey Show.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Ramsey Show question of the day is brought to you by YRefi. YRefi refinances defaulted private student loans. Defaulted means when the borrower can't make the required payments. So if that describes you and your private student loan, contact YRefi. They can offer a low fixed rate loan built for you. Go to YRefi.com slash Ramsey. That's the letter Y-R-E-F-Y dot com slash Ramsey.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Awesome. Welcome to the party. Well, we have a pretty controversial stance around here, and that is debt robs you from your future, even if it's temporary, even if I'm paying it off tomorrow. And so John and I do not own a single credit card. We just use our debit cards. We use our own money. And what you're facing here, Andrea, is an income problem.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
The laws there are. Yeah. You may want to contact an attorney to see if there's a way out of this. Yeah. Versus, you know, co-signing on a loan. Yeah. But generally, if it was only his name on the debt, the spouse wouldn't be liable for it.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
I feel like there's more going on here.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
That's the only way to get rid of student loans in most cases. To be dead. That's right. That's dark stuff. Yeah. Oh my goodness. I'm so sorry for your loss, Kathy. Yeah. And if you have the money and you don't want to burn the brain calories on this, pay it off. That's right.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
That's the only thing I can think of is if it was a joint account with the bank and somehow they took out the loan under that same account. Right.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
I'd also pull his credit report and make sure there's no other outstanding debt sitting out there, too.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
All right, let's go to the phones. Kayla is up next in Eau Claire, Wisconsin. What's going on? How can we help Kayla?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
We've got to get your income up because that's going to create more margin for you to save for that home. And so you're in what we would call baby steps four, five, and six if you're debt-free with an emergency fund, which you just told me you have $45,000 liquid?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Yeah, you're asking really good questions. And you're right. This is one of those tough things where if there's no way he's going to get life insurance, we're going to have to look into probably a more expensive option with a worse payout. And so that's something like a guaranteed issue policy. And then like you mentioned, mortgage life insurance, which would just cover the mortgage balance.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And so those are two I would look into. Have you contacted our friends at Zander about this? Or where'd you go through for life insurance?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
I might reach back out and just get their take on what might make the most sense for you guys between the guaranteed life, mortgage life. And then beyond that, if I was you in your shoes, I'd go, how do we become self-insured as quickly as possible? How do we make sure that if something did happen and we needed to replace that income, that we would be okay? That might mean a bigger emergency fund.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Great. And so we'll call that your emergency fund plus some down payment fund because you don't need $45,000, I imagine, to cover your expenses for three to six months. No. Okay. So your A1 goal, if it is buying a home, is to put money away for a down payment. But before we do that, we should be investing 15% of our income into retirement. So how much are you investing right now?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
That might mean we pay off the house faster and get the smaller house, like you mentioned, so that we have less liabilities and we can reduce our expenses. Because if you can keep your expenses low and learn to live off your income alone, that's going to reduce the risk in your life.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
You can always invest on your own through a Roth IRA as well. Yeah. And that can be a hedge for you.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Yeah, you do that for 10 or 20 years, you'll be self-insured in no time. And generally when we say get term life, it's for a 15 to 20 year term because by the time it's over, you've self-insured. You get the house paid off because you did a 15 year mortgage. You've been investing for 15 or 20 years and that nest egg is several hundred thousand dollars. And so you're doing all the right things.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
John and I want to applaud you. We're here to just cheerlead you on and say, keep at it.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
That puts this hour of the Ramsey Show in the books. Thank you to my co-host, Dr. John Deloney, all the folks in the booth keeping the show afloat, and you, America, will be back before you know it.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
From the Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Camel, joined by Dr. John Deloney. Open phones at 888-825-5225. You call us and we will do our best to give you advice that only John could give. Or George. They say the advice is worth what you paid for it.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Amber's going to kick us off in Cedar Rapids, Iowa. What's going on, Amber? How can we help?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Well, you can't save your way to wealth. We have to invest this money. Because right now, you're not even beating the rate of inflation if that money is just sitting in a checking account. Yes. If you invested, the stock market, the U.S. stock market last year, Andrea, in 2024, returned 24%. So you put $100,000 in that account. Now it has $124,000.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Could you get a traditional mortgage with another bank?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Let your credit crash. We'll settle. You give us the payments.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Yes. Yeah, the best option is to go to a completely different lender, stop doing business with this bank, get a traditional mortgage that covers all of this.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
My bigger question is, can you guys actually afford to live in this home?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
So if you took on a new mortgage, could you refinance and just do one new mortgage that encapsulates all of your debt?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Yeah, I would keep the credit card separate and deal with those on their own. And debt snowball those, settle on your own. But with this HELOC, could you absorb the HELOC? Yeah, that seems like a horrible idea to add all of that onto our house. Agreed. And I don't know if the bank would even let you. Yeah. Because they need that tied to their collateral, not tied to your personal debts.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Do you see the difference invested in the stock market? And we're not saying a single stock. You're going to do mutual funds within that retirement account that will grow at a steady pace, probably 10% to 12% over the next 10 years. And that will at least help give you some cushion. I don't know that we're going to have a dream retirement at this stage of the game.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
What's the balloon payment on the HELOC?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
To get out of this. And so if you refinanced your current home and added $60,000 to the mortgage, that would get you out of it?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
No, we're not doing any business with them.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Do you guys have any other debt, car loans, student loans?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Amber, you know all of this needs to go, right? All of it.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And as you're listening, if you could do us a tiny huge favor, let us know what you think about the show, what you don't like, what you want to hear more about. And the way to do that is with our annual listener survey. It's now live. You can text the word survey to 33789 or go to ramsaysolutions.com slash survey. We'll also drop a link in the description wherever you're listening.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
The van gets sold tomorrow. The camper gets sold tomorrow. We use all of that to clean up our debts. And we stop playing with this. Stop. You guys have debt all over the place. You're hiding debt in the couch cushions at this point.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
You need the difference in cash or go to a local credit union and get the difference. There's no other way out of that.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
We might have to do what John Deloney says and choose our reality and grieve what could have been and create a new picture of what's next. Why don't you want to live with your son?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. Open phones at 888-825-5225. Leslie's up next in Grand Rapids, Michigan. Hey, hold on.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
It didn't seem like a big deal at the time. It never does. And that extra credit card didn't seem like it would be the thing that sinks us. And here they are in a giant mess. That's right. Making over $100,000, which we can all agree is a great income. Right. But not when it's propped up artificially with thousands and payments every month.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Proverbs 22.7, the borrower is slave to the lender. That's right. It was true back in ancient times, and it's very true today. Yeah.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
All right, Leslie. Hey, Leslie. What's going on? How can we help?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
No way. I hope you weren't listening to the last five minutes of the show. Oh, geez.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Okay. Tell us why you're the exception. Oh, incredible. Now, tell us more about this business.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And you're like, why would I want to go back into hundreds of thousands of dollars of debt?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
So revenue sharing, a gradual buy-in, some sweat equity, something like that, like you're talking about, is we're not going to do debt, but I'll give you this much revenue over this many years in order to essentially pay this off.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
It's not how he feels about the business. It's what is it actually worth?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Yeah, I'm questioning if this is the place for you long term, whether you own it or not. Right. Because of the strained relationship. It hasn't been going well so far. Owing dad $400,000 or a million dollars is only going to make it worse.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Have you gotten one of those texts recently claiming to be the USPS with some sketchy link to update your address? It's annoying and a little terrifying. And you probably think to yourself, I should do something about this. But where do you even start? Well, as your nerdy friend who does the research for you, I found the solution. They're called Delete Me.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And here's the reason they come in the clutch. The internet is packed with data brokers, which are these shady companies whose sole purpose is to collect your personal info and sell it for a profit. Enter Delete Me. Delete Me swoops in, finds your info on these sites, and removes it on your behalf. They even send you a report with all the details.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And so far, for me personally, they have reviewed 27,000 listings, removed my info from 240 data brokers, and saved me 66 hours in the process. I trust Delete Me to help protect my family, and I trust them to help you too. You're going to get fewer spam texts, fewer phishing emails, and fewer creepy robocalls. And Delete Me also makes a great gift for other people in your life that you care about.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Individual plans start at just $9 a month, so take an easy step to protect yourself and your loved ones today. And as a Ramsey fan, you'll get an extra 20% off any of their plans at joindeleteme.com slash Ramsey. That's joindeleteme.com slash Ramsey.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. The phone number to call is 888-825-5225. Well, John, it's tax season, and that means a lot of people get a little sweat on their brow. There you go. Oh, my gosh. This again. Every year we have to do this. I know.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
At least Christmas, there's some joy. You know, unless you're a CPA, and even a CPA is probably going, oh, gosh, get me through this, please. So here's the deal. We want to make it easy on you. We know taxes are confusing. And so we have a hub for you at RamseySolutions.com slash tax, where you can find our no-nonsense tax software called Ramsey Smart Tax.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
You can find highly qualified tax pros that are Ramsey-trusted. Okay. across the country in your area. And we have some great tax resources. I personally use them every year. I go to the site and I download the tax prep checklist. I read over the beginner's guide to taxes as a little refresher to go, all right, I'm ready for this. Puts a little pep in my step. So go check it out.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
RamseySolutions.com slash tax is the place to go. Cindy's joining us up next in Miami. What's going on, Cindy?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
I would never get rid of property insurance, if that's what you're talking about. You're saying, hey, we'll take on the risk of having to rebuild this million dollar home?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Dave Ramsey has hundreds of millions in real estate. He insures every property. Even though he doesn't, he could afford it, but he says the risk isn't worth it on my part. I would rather pay this premium to have it covered for me and they shoulder the risk. And I think the same is true for you. So there's a simple solution and I'll hand it to John, but just set up a sinking fund.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And even if it goes up to $10,000 and you want to live in Miami, call it the Miami tax. It's like having a high HOA fee because you live on a beachfront condo. That's the tax you pay. So we're going to put away $833 a month into the savings account so that when it comes time to pay the property taxes, the money's there.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
What would it look like to make $60,000 or $70,000 at your age with your experience in that field? What does the latter look like?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Right. That was part of John creating that world. He was running towards something versus just away from the thing that could be. And that's what I would tell you is when we talk about baby steps one through three, it is gazelle intensity. Once you're in four, five, six, it's intentionality. And that's a tough move to make when all you know is go, go, go, Dave said.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
What would your supervisor be doing in the medical records field? Is there another job out there where you could not just settle for whatever job you could get, but go, how do I grow in this field so that I can actually put more away for retirement and save up for that house?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And so I would set an intentional goal with your husband of, hey, what if we could do this in 40 years? Could we do that? It's 40 grand a year. All right. Yeah. Let's commit to that. Spit shake. Two years. Be bananas, right? Two years if you want. Can we do 80 grand? Yeah, we could do that. Whatever that is for you guys. But like John said, do it for the right reasons.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
So I love paying off the house regardless of the interest rate because it's going to set you guys up for freedom. You can invest that payment. but I would keep your property insurance forever, no matter what, and just make a sinking fund and do it and say, well, we did our good deed for the day. We paid our property taxes. Hopefully it went to something good. We paid our insurance. It covered us.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
I can sleep better at night knowing my house is gonna be okay.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Welcome back to The Ramsey Show. I'm George Camel, joined by Dr. John Deloney. Open phones at 888-825-5225. Noelle joins us up next in Dallas, Texas. How can we help, Noelle?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Ooh, wow. Okay, what's the heart behind it? Yes, you're wrong. Is there more context here, or is that it?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
So he's going with or without you to see his mom.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Would an entry medical coder make $40,000?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Okay. So the current trajectory, when is all of this debt going to be paid off, all $71,000 with your household income?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Okay. And if you skip this extra week of work that would have amounted to $500, it would slow it down to 17.7 months? Yes.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
I just want to make sure we, like, that's really what we're talking about.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
So that's what I would be doing if the trajectory is higher with your certification. even if it's not the exact role you want. I would just try to get on A ladders. And the truth is, Andrea, you might be working into your 70s to make this dream happen. Yeah. Are you okay with that?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
I can hear it through the phone, man. You've been trying to justify it by going, well, we're in debt. I could make more money. It'll speed it up. And we just proved with math that it's 0.3 months of, you know, it's really not about that. But I do think relationships are not convenient. Family is not convenient. Health crises are not convenient. And that's a part of life on the baby steps.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And so we would tell you, hey, if this is really important to your family, you might need to just pause and take the trip and let it slow it down by a few weeks. And we'll make it up on the back end. But right now, I think you might need to be there for your husband.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
I just crunched the numbers for you. You know, you got 69 grand in that retirement account. You keep investing, let's say, a thousand bucks a month. If you can do that to 72, you'll have over half a million in that nest egg. And on the way, get yourself a reasonable mortgage, and that way you're not stuck paying whatever market rent is for the next 12 years.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
If it's hard for her husband to share this, that, hey, here's really where I want you to go.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Absolutely. Good word. John is in Oklahoma City up next. What's going on, John?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Yeah. I mean, if you need to, like, you know, repair it, drive it until it can't be driven anymore, but also know it might not have two years left in it. And so I would set up a sinking fund that'll probably slow down your baby steps, but at least it won't be this, oh my gosh, I got to go finance a $30,000 car. I had no idea it was going to explode.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And if you sign up today, you'll be entered to win a $500 gift card. And it means the world to hear what you think. And it definitely affects the content that we do here for the rest of the year.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
You know, just set aside, you know, 400 bucks a month so that a year from now you get five grand. That'll get you another beater to get you through.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Drive like no one else so later you can drive like no one else, John. You're doing it right, man. Hey, the rest of the Ramsey Show is in the Ramsey Network app. That's where we're going to keep the party going. So download it for free using the link in the show notes or just search Ramsey Network in the App Store. If you're on radio, stay tuned. Everyone else, don't miss what's next.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
We'll see you in the Ramsey Network app.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Thanks for the call, Andrea. This is The Ramsey Show.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Doesn't affect that, but thank you, John. You can put a good word. John Deloney deserves a raise. I was trying. He's doing so good.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Welcome back to The Ramsey Show. Open phones at 888-825-5225. Happy Martin Luther King Jr. Day. Thank you, George. And it's Inauguration Day, John. A lot going on. Very busy day. And no matter how you're feeling today, we've said this a million times. What happens in your house is way more important than what happens in the White House.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
No president or administration has more control over the success of your life or your money than you do. And we're going to prove it to you this Thursday at our free live stream. We're calling it Take Control of Your Money. Dave Ramsey and Jade Warshaw will walk you through practical ways you can create more margin, build more wealth, and get ahead with money this year.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And I'll be there along with Rachel Cruz taking your money questions live. And here's your first step. Go to ramsaysolutions.com slash live stream to sign up. You'll be automatically entered to win $4,000 cash. And once you're signed up, create a free EveryDollar account to get a bonus entry in the giveaway.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
And this is super important because we'll be using EveryDollar throughout the live stream to show you immediate ways to take control of your money. So you can have your own budget live, doing all the things we're telling you to do to show you how it can affect your wallet, your budget, your household. Then share the event with your friends and family. Again, it's totally free. It's virtual.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Join us from anywhere. You'll get a bonus entry for everyone who signs up. And it happens this Thursday, 7 p.m. Central. Go to ramseysolutions.com slash live stream. Gene is joining us in Fort Lauderdale. What's going on, Gene? How can we help?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Let's try to help someone, John. How about that? Andrea's in Phoenix up next. What's going on, Andrea?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Did you send the money? Just give us the details. Okay, I sent her money online.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Okay. So what are you on the hook for now? You sent money via what for the surgery? How did you send it?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
We're not trying to beat up on you. I'm trying to get to the bottom of this to see what kind of hole you're in and how we can get you out of it. So do you owe $35,000 in debt?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
All right. So, Gene, what is your total debt load, all in?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Is it half a million dollars, or is it $100,000? Give me just a ballpark.
The Ramsey Show
Slow and Steady Wins the Race Every Time
Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
The Ramsey Show
Slow and Steady Wins the Race Every Time
And that's why we recommend Delete.me. They help with that.
The Ramsey Show
Slow and Steady Wins the Race Every Time
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
The Ramsey Show
Slow and Steady Wins the Race Every Time
I love these reports. So far, get this, they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites, and saved me 77 hours of time. It's incredible.
The Ramsey Show
Slow and Steady Wins the Race Every Time
I love it. So you got to be sure to check them out. Ramsey fans get 20% off their annual plans. Just go to joindeleteme.com slash Ramsey. That comes out to less than nine bucks a month. Super affordable.
The Ramsey Show
Slow and Steady Wins the Race Every Time
Listen, I know a lot of you would rather watch paint dry in slow motion than file your taxes. But thankfully, you don't have to dread filing when you've got Ramsey Smart Tax. It comes packed with everything you need to file online before the big deadline. That means all major federal forms and deductions are covered with no hidden fees.
The Ramsey Show
Slow and Steady Wins the Race Every Time
Plus, with Ramsey Smart Tax, you can save up to 70% compared to other tax software out there. It's a no-brainer. Just go to ramseysolutions.com slash smart tax and see how simple tax filing can be. That's ramseysolutions.com slash smart tax.
The Ramsey Show
Slow and Steady Wins the Race Every Time
Hey, you're still here? What are you doing? You do know that the rest of today's show is playing right now over on the Ramsey Network app, right? All you got to do to finish the episode is search Ramsey Network in the App Store, Google Play Store, or just click the link in the show notes to download the app for free. Yep, you heard me right, for free.
The Ramsey Show
Slow and Steady Wins the Race Every Time
Then right there on the home screen, you can watch the rest of today's show. Bada bing, bada boom. All right, I'm getting out of here. Enjoy. We'll see you on the app.
The Ramsey Show
Don’t Wait for Someone Else To Fix Your Life
Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
The Ramsey Show
Don’t Wait for Someone Else To Fix Your Life
And that's why we recommend Delete.me. They help with that.
The Ramsey Show
Don’t Wait for Someone Else To Fix Your Life
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
The Ramsey Show
Don’t Wait for Someone Else To Fix Your Life
I love these reports. So far, get this, they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites, and saved me 77 hours of time. It's incredible.
The Ramsey Show
Don’t Wait for Someone Else To Fix Your Life
I love it. So you got to be sure to check them out. Ramsey fans get 20% off their annual plans. Just go to joindeleteme.com slash Ramsey. That comes out to less than nine bucks a month. Super affordable.
The Ramsey Show
Don’t Wait for Someone Else To Fix Your Life
Listen, I know a lot of you would rather watch paint dry in slow motion than file your taxes. But thankfully, you don't have to dread filing when you've got Ramsey Smart Tax. It comes packed with everything you need to file online before the big deadline. That means all major federal forms and deductions are covered with no hidden fees.
The Ramsey Show
Don’t Wait for Someone Else To Fix Your Life
Plus, with Ramsey Smart Tax, you can save up to 70% compared to other tax software out there. It's a no-brainer. Just go to ramseysolutions.com slash smart tax and see how simple tax filing can be. That's ramseysolutions.com slash smart tax.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
It's a personal attack that you say for your kid's college while they can't or won't. And that's the part you need to drop and go, all right, that's not on me. You sound like a real nice guy, not a braggadocious type. So I don't know, maybe I'm wrong, but that's the hard part is for you to just swallow that pill and go, no, that's on them.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
That's a poison they're choosing to drink and I want no part in it.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
You've lived intentionally for a long time. That's rare.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
It just is. So I love John's idea of who do you admire? When you guys go home and you're talking to your wife, who are the people like, man, they seem really, we should get lunch.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And then be weird and send the text, make the phone call. And then you're going to develop new relationships over time. And it's still going to be weird and awkward. And it's always going to be weird. And go anyway. Thanks so much for the call. Great conversation, Brandon. More of your calls coming up. 888-825-5225. This is The Ramsey Show.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Because you knew day one, all right, I got a business, I make money, I got to pay the piper. What caused you to go, I'm going to bury my head in the sand? Did it just become too much after year one or two, or what?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. Open phones at 888-825-5225. Jennifer's up next in Boston, Massachusetts. What's going on, Jennifer?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
So when was your last tax return that you filed? What year?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
From Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm Ramsey personality, George Campbell, joined by my good friend, Dr. John Deloney, and we are here for you. We want to help you take the right next step with your life, your money, your relationships, whatever's going on. So give us a call at 888-825-5225.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Okay. That's barely enough to cover the mortgage.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Yeah. So selling the house might be the move. I want it to be a last-ditch effort when you've exhausted all other options because I assume to rent in your area to get a house that will fit your kids is going to be more than $2,200. Absolutely. I don't know what part of Boston you're in, but that's where I'm from, and it ain't cheap.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Yeah, and we're going to hook you up with Financial Peace University and EveryDollarJennifer. That's going to give you the information you need, the motivation, the budgeting tool, so that this week you can look at what are my bills, what is the income, and can I get through this without going into debt. This is survival mode, and we hope that one day soon you'll be thriving. Thanks for the call.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. You know, every day we take calls on The Ramsey Show, but we don't always know what happens after we hang up. Did they take our advice? I know a lot of you are wondering, and so we wanted to stop you from wondering. So we have a new show called 90 Day Money Makeover that lets us find out what happens next.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And the good news is the first episode is now available on YouTube. And in episode one, we follow single mom Heather who's drowning in debt and stress following her divorce. Not only that, but she's trying to keep up with the family farm, including horses, chickens, and more. And it consumes almost all of her time and money.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
So the question is, is she willing to sell 30 chickens a calf, maybe even the horse?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
You got to check this out. So Heather, she's got to consider major lifestyle changes. Jade's out there walking alongside her through these decisions and sacrifices that she never imagined making. So if you want to see just how far she's willing to go to change her life and her finances for good, go check out 90 Day Money Makeover.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
It's now available on YouTube, on our YouTube channel, or click the link in the show notes. It'll take you right there. Very exciting. It's an awesome concept. We never get to interface with the people.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Are they really going to do all this? Is it going to change their life?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And the production quality. Our team did this all in-house and it is next level. So go check it out. 90 Day Money Makeover. All right. Phoebe's up next in San Diego. How can we help, Phoebe?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
There's the Phoebe rule. The Phoebe rule. In statute 50... No. Correct.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Let's try to address these. Welcome to our club. Yeah, let's walk through. A lot going on here. So combining income, it doesn't sound like you're paying yourself a salary right now. Like, how are you eating? How are you paying for other bills outside of rent?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
What would be a reasonable salary to pay yourself out of this business? Every month, let's say, you know, here's your take-home pay for the month. What would you transfer over to your personal checking?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
No, give me a number. Is it $5,000 a month?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
paying you and then we can make a plan to get out of debt get an emergency fund save for a down payment otherwise it's just i don't know let's see how much we can pull out of the business this month so we need to have something a little more stable and then as you actually get married and combine finances now becomes okay what is his stable income what's his irregular income what can we plan on and then where is that money gonna go
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And that's where the baby steps come in. So your next question was, how do we get on the same page? Because he's clearly in a different world right now when it comes to finances, and that's where Financial Peace University is one of the best tools, and I will gift it to you guys as premarital counseling if you think he'll go through it with you.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Because I think he's a great guy. I think he just doesn't know. He's a base player. You don't know what you don't know. Yeah, he didn't have financial literacy. Yeah, what does he play, by the way? I think that's important.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And we need to figure out if this is a hobby because 40 grand in San Diego, we're not talking real estate mogul buying investment property. We're talking like, maybe I get to eat this week. And so we need to look at what does a career look like?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
So your last question, is it a waste of money to rent? No. Renting is buying patience. It shows wisdom and maturity. And until you guys are out of debt with a fully funded emergency fund and then a down payment where you can actually afford the mortgage, we're talking 25% of take-home pay, I would not buy property locally and I definitely would not buy it outside of the state.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
If you guys want to move outside of San Diego and you start a facial business out there for lower cost of living, go for it.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
So thanks for the call, Phoebe. We appreciate it. Hang on the line. Kelly's going to pick up. We'll get you Financial Peace University. Wishing you guys the best. That puts this hour of The Ramsey Show in the books. Live from the Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
I'm George Campbell, joined by the host of The Dr. John Deloney Show, Dr. John Deloney. We're here to help, taking your calls at 888-825-5225. If you want to talk life, money, mental health, relationships, you name it, we are here for you. Ted is going to kick us off in San Francisco. What's going on, Ted?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
That's a lot of your income going toward a mortgage. I would never do that.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
So what does it take to get to that 25% parameter with the mortgage? Would that mean pausing investing and waiting two years and stacking up cash?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And you're in a condo now with how many bedrooms?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Okay. Well, for the first six months, the baby's going to be in your room probably, right? Yeah. So we're probably going to be here for maybe up to a year.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
We're talking like 2026 for a home purchase would be ideal?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Okay. So if you paused investing, how much extra money could you stack up? If you guys just got real focused on a budget, cut the lifestyle down, how much could you save that 450 take home?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
So, Chad, the first thing, like John was talking about, we need to assess the damage. So you need to get all the financial records you can, figure out what amounts are owed, income, payroll, taxes, federal, state, local, you name it. Get all the documents you can get, expense records, prior tax filings. Once you have all that, you need to contact a really good CPA.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
So you would add another $180,000 over the next year if you didn't make any changes.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Okay. So let's call it 200 plus your 400 saved. That's 600. Let's say you save up another 200 over the next year. Now we're talking 800 grand as a down payment for the next house. Would that get you closer to that 25% mark?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
No, don't be that guy. Don't get greedy on us, Ted. So now you want to hang on to the condo, use it as a rental, while adding stress to your life as a long-distance landlord. That's what happens.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Is that deflating? Do we just bum you out? Well, it's controversial in the financial world, especially Silicon Valley. Like, bro, that would be a great investment property. It's 2.5%. You're basically robbing the bank here. Like, why would you? And we're going, your life is more than just a set of numbers. You got a family you're trying to take care of.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
You got a life to live and I don't want you spending it worrying about a property that's hundreds of miles away. Okay. And all we're telling you is what we would do in our own house. And it's what I have done. We sold our house. We didn't hang on to it. We could have. We said we're going to sell it because we want peace. We want to get to total debt freedom faster.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And if you go to ramseysolutions.com slash tax, we have a network of these pros that can help walk you through this. But you're going to need a pro. This is not a DIY situation.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And now we don't have a payment in the world. And so when my wife wanted to stay at home with our baby, it wasn't even a financial conversation. It was just an emotional one of you're leaving your career. And so that's what I would love for you guys to have. Freedom, flexibility.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
I think high yield savings would have equal, if not better rates right now. So I don't think it's worth switching to the money market or even putting it in a CD because you're talking about a year timeline. That's just too short to be messing with things that lock up your money or invest your money. So a money market acts like a savings account.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
There's not many more benefits other than sometimes you get to write checks out of it or you get a debit card attached to it. So I would just leave it with a high yield savings account.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Well, they'll be able to direct you and say, hey, this is attorney level. I think so. It may not be.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
For free tools and resources to help you reach your home goals, go to ramseysolutions.com slash real estate or click the link in the show notes. Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. Hey, it's New Year. If you're ready to get your finances in order once and for all in 2025, you've got to join us.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
January 23rd, we're doing a free live stream called Take Control of Your Money. It's hosted by Dave Ramsey and Jade Warshaw. You're going to learn how to stop living paycheck to paycheck. free up more breathing room with your finances so you can pay off debt fast, finally get ahead. Plus, Rachel Cruz and I will join at the tail end for a Q&A where you can ask your money questions live.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And when you sign up for the free live stream, you'll be entered to win our cash giveaway, and five people will win $4,000 each. So sign up for the free live stream by going to ramseysolutions.com slash live stream or click the link in the description if you're listening on podcast or YouTube. Need I remind you, it is free. You've got nothing to lose. ramseysolutions.com slash live stream.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Casey is in Green Bay up next. What's going on, Casey?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And the goal is you want to be proactive, calling the IRS, explaining the situation. That can actually reduce your penalties. And likely what they're going to say is, well, how much can you pay now? Because that's going to help you reduce penalties in the future. And then what does this payment plan look like? Yeah.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
We're talking a few years down the line.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Okay. So in the grand scheme of life, let's call it a wash, but it's where you guys want to go. You're closer to family. Is the cost of living the same?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Would you guys immediately live on the property?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
When you're saying we're going from making $160,000 to $60,000 and we want to buy property and renovate and, and, and, I'm like, now I can't breathe a little bit. Yeah. So I think we can't have the cake and eat it, too. So what can we do to take this job? I'm all for this. It sounds like it's where he wants to be longer term. You're closer to family. Eventually, the pay will get up there.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
He sounds like he's a hardworking man. He's willing to take on a side job if he needs to in the meantime on top of the training. The question is, can you financially stay home, get your income down to $60,000, and still make ends meet? I don't know.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And so you're going to have to pay the piper here, but the goal is to now minimize more damage being created. And so that's where being really proactive, explaining the whole situation, getting with a good CPA, and then figuring out a game plan. And the next few years of your life are going to look drastically different.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Good. And you have a fully funded emergency fund?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Awesome. Okay. The good news is you guys are in a great spot, that this move won't be as stressful. I do like the idea of pausing to make the move until after training. What does that mean for him traveling?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
But you wouldn't see him for six months or what?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Oh, so you're talking about just quitting your job for six months?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Would it make sense then to just do child care for six months?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
You know what I mean? If you're making $86,000, I doubt it's, I think your take-home pay is still going to be much higher than what your daycare would cost you.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
You know, if you're bringing home $6,000 a month and daycare costs $3,000, you're still in the black here. So I would crunch those numbers. I'd sit down with your husband. I would do a fake every dollar budget and go, okay, here's what life looks like if we drop your income. Here's another budget. Here's what it looks like if we go down to just you in training.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And then here's what our budget looks like later on. That'll give you some peace and facts instead of just here's how I'm feeling about it.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
You're going to have to learn to live on 30%, 40% of your income because the rest of it is going to pay for the past.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
That's the hardest part is the sacrifice your lifestyle is about to take. But it's not as hard as going to jail for tax evasion. Exactly.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And you guys would be selling your current home and buying a property over there? Correct. Or are you going to do the structure on the family property? Because what does this family property cost?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Okay, good. I'm trying to make sure your mortgage doesn't triple when you make this move and it's all of a sudden, whoo. The other piece of this to be thinking about is do you guys need to rent while you renovate the structure?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Thanks for the call. It's an exciting life move. It's a lot of change at once. And John, there's so much more when you look at just, can we do this financially? There's so much more under the surface when you talk about family and relationships and career and moving the kids. It just sort of takes your breath away to think about a change that big.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. We've got to kick off the year with a little pep on our step. And to do that, we have a very special couple on the debt-free stage. Steve and Katie are with us. How are you guys doing? Great. Where are you guys from? Peoria, Illinois. Wonderful. And all the way here to do a debt-free scream. How much did you pay off?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
How long did that take? Eight months. Okay. There's a story here.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
That's beautiful. We love to see that. You're clearly very good at sales. Okay. So let's talk about this. What type of debt was the 214? It was our home. Whoa! We're looking at weird people, John. This is wild. You guys aren't old enough to have a paid-for home. Well, thank you. Oh, my goodness. Okay, so we got to go back a long eight months ago.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
You guys had this mortgage sitting around, and you decided, let's knock this out. What happened? What got you on this journey?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Chad is going to kick us off in Orlando, Florida. What's going on, Chad?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Wow. And you got four girls. Yes. How old is the youngest? Nine. So how did the nine-year-old react? Did they have the biggest reaction of, okay, how does this affect me? Or was there none of that? They were like, all right, sounds cool. I'm in. Well, we promised him a vacation at the end of it.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
There we go. We all had some incentive here. Wow. So what is the principle and interest that you've now freed up every single month for the rest of your life? Are we talking a few thousand bucks?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Oh, my goodness. For the rest of your life. Yeah. That's some good living given like no one else. That just comes on, right? Yes. Wow. That's an exciting phase. As your first heads off to college, you guys are living a little easier now. You got a spare bedroom and you got some spare money in the budget.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Did friends and family know about this? Are they weirded out? Did it feel like a personal attack that you guys have been so successful at this? Was it awkward to talk about?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
That's true friendship right there. Because we took a call earlier, and they were like, hey, I feel awkward because we're in this phase of life, and you guys have surrounded yourself with people who actually want to see you win, who want to cheer you on and support you.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Woo! And how much do you guys have in your nest eggs? $500,000.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Wow. Baby steps millionaires just like that. And I'm not putting your ages out there. I assume she's still in her 20s. You look like you're at 40 max. Am I close? 45. There we go. And here you are no mortgage payment, the rest of your life ahead of you just all margin to live and give like no one else. So you're taking them on vacation.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
You're going to give more anything else you're doing to celebrate or kind of upgrade life and have a good time.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And can I ask, did you guys have a low interest rate on this thing? We did.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
You could have invested in Bitcoin or something. But now it's zero percent.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Let's get them up. What are their names and ages?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Beautiful. Beautiful family. We've got a couple of Every Dollar One Year subscriptions to give you guys that you can use. You can pass it on to kickstart someone else's Baby Step Millionaire journey. You guys ready for it?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
All right, here we go. We've got Steve and Katie, Adeline, Vivian, Sophia, Eleanor. $214,000 paid off, house and everything in eight months, making $331,000 to $391,000. Count it down, guys. Let's hear a debt-free scream. To God we give the glory.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
It's that simple and it's that hard, John. The simple part is just choosing. Hey, what if we didn't? What would that be like? The hard part is then going, all right, every month we got to be disciplined. We got to be focused. We got to be intentional because there's a lot riding on this.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And more is caught than taught. Those girls will never forget that. They're going to be living and giving like no one else, too. So proud of you guys. This is The Ramsey Show.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Welcome back to the Ramsey show. I'm George Campbell joined by Dr. John Deloney. Derek's up next in Norfolk, Virginia. What's going on, Derek?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
I don't know that they're apples to apples, so I'm wary on trying to compare them. I'm guessing the policy through your work doesn't have a big face value. What's the policy worth?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Do you see why it's not apples to apples? You're talking triple the amount of face value.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
So I know there's some sticker shock when you see 120 versus 10, but the thing to remember is that 480, I'm guessing, you know, what's your household income or your income?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Awesome. And so our philosophy on this is that you want 10 to 12 times your annual income in term life. And so that 1.25, you're right on track there. I think that's the right amount for you. If you wanted to scale it back to a million, you'd probably be fine there. And the goal here is to become self-insured when this policy runs out. So 20 years from now, your life looks very different.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
You've been investing for 20 years. You've got the house paid off long before then. So your family would be okay if something happened to you once the policy expires. But in the meantime, if, God forbid, something happened and you've got a stay-at-home mom with no income now, that's scary, isn't it?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And so that's why I will pay the $120 for the peace of mind all day long. We spend $120 on stupider stuff in America.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
That's right. Yeah. But it's definitely worth trying to follow the appeal and try to get a better rate. But at the end of the day right now, I'd get something in place.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
That's right. Hey, when this segment ends, folks, if you're watching on YouTube, you're listening on podcast, the show as you know it will be over. But if you want to catch the next hour, jump over to the Ramsey Network app. It's the only place to get full episodes of the show. You can download the Ramsey Network app for free.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
We've got a link in the show notes or just search Ramsey Network app in your app store. If you're on radio, stay tuned. The show will continue. Today's question of the day is brought to you by YRefi. YRefi refinances defaulted private student loans and builds a custom loan based on your ability to pay.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
You'll have a payment you can afford with a low fixed interest rate that you couldn't get anywhere else to help you stick to your budget and work that debt snowball. So go check them out. YRefi.com slash Ramsey. That's the letter Y. R-E-F-Y.com slash Ramsey may not be available in all states.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And then instead of an exclamation, let's put a question mark and dig into, hey, what's going on here? Like I'm seeing these purchases. Here's the theme I'm seeing. Tell me if I'm wrong. What's going on? What can I do to help create some guardrails so that we can actually stick to the budget?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
And is this a dollar or is it a hundred each time? That also makes a difference. But getting to the root of it, then we can go, okay, here's what we're doing next as far as the budget goes.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Hey, that puts this hour of The Ramsey Show in the books. If you want to catch the next one, if you're on YouTube or podcast, jump over to the Ramsey Network app to continue the party. This has been The Ramsey Show.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Yeah, a lot of this is the emotional just buildup of seven years of burying this and burying this. And now we got to do some excavating.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. If you're listening to this show, I'm going to assume you like it. This is not a hate watch or listen for you. And we want to know your favorite. Well, for some people. That's why John listens.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
But we do, John. We want to know what your favorite parts of the show are, what you like. even what you don't like. We want to hear more about whatever it is we want to hear. So, survey is now live. The Ramsey Show Annual Listener Survey. And there's two ways to participate if you want to help us out. Text the word SURVEY to 33789. That's 33789. Text the word SURVEY.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Or just go to ramseysolutions.com slash survey. survey. And if you're listening on podcast or YouTube, just click the link in the show notes and description, and you will be sent there. And here's a little bonus for you. If you sign up today, you'll be entered to win a $500 gift card if you complete the survey. And this really helps us out.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
This shapes the content that we bring you guys, and it means a lot. So go check it out. All right, let's go to Brandon in Gulfport, Mississippi up next. Welcome to The Ramsey Show.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Do you have any money currently? You got money saved?
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
You're asking the wrong guy, John. I'm asking the wrong guy. John won't even be friends with me.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
No, but I've been thinking about this, Brandon, because I'm in a similar phase. I'm just very gung-ho on the baby steps, have been for a long time. And what I found is over time, there's a natural shedding of old relationships that just don't serve you. And it's not a selfish thing.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
If they've got to add value to my life, you just find that I communicate with them less, they talk to me less, and I'm learning to have new relationships. And so part of what you're experiencing is this idea that your friends have poisoned the well by choosing to believe that the way you live your life is a judgment against them.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
And that's why we recommend Delete.me. They help with that.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
I love these reports. So far, get this, they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites, and saved me 77 hours of time. It's incredible.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
I love it. So you got to be sure to check them out. Ramsey fans get 20% off their annual plans. Just go to joindeleteme.com slash Ramsey. That comes out to less than nine bucks a month. Super affordable.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Listen, I know a lot of you would rather watch paint dry in slow motion than file your taxes. But thankfully, you don't have to dread filing when you've got Ramsey Smart Tax. It comes packed with everything you need to file online before the big deadline. That means all major federal forms and deductions are covered with no hidden fees.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Plus, with Ramsey Smart Tax, you can save up to 70% compared to other tax software out there. It's a no-brainer. Just go to ramseysolutions.com slash smart tax and see how simple tax filing can be. That's ramseysolutions.com slash smart tax.
The Ramsey Show
There’s No Fast Track to Financial Freedom
If you went down to 15%, how long would it take to save up the $190 needed?
The Ramsey Show
There’s No Fast Track to Financial Freedom
I'm 46. Okay. So we're not going to touch retirement. Can you promise me that? We're going to use savings outside of that. So the question becomes, how do we make more in order to make this dream happen faster?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Can you just go rent a place until it's done? And hey, once a year, you guys go a few times a year, go rent a place up around there?
The Ramsey Show
There’s No Fast Track to Financial Freedom
I would just split the difference and go, we're going to rent a place. We're going to move at the speed of cash. This is a toy. We're not going to go into debt for it. And truthfully, you got a 15-year-old a few years from now, they're going to be like, Dad, I don't want to go. I want to hang out with my friends this weekend. That's what's going to happen.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So I don't want you to put this whole dream on the kids. Just say it's for you, and maybe the family gets to enjoy it too.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So on paper, if you did what the paper said on what you spent, you'd have two grand. But you're saying it's disappearing. It's being spent.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Like if you go to your bank account statement, it will tell you, right? If you go to your bank account statement and you add up all the things that weren't the necessary expenses, it would easily tell you what's going on, right?
The Ramsey Show
There’s No Fast Track to Financial Freedom
So what would you say are the top three things this money is disappearing to? Eating out.
The Ramsey Show
There’s No Fast Track to Financial Freedom
97% of day traders who persisted for more than 300 days lost money. So you are, you're not at the 300 day market. And truthfully, I have no ill will. I hope you keep making money, but the key that I would go is like, if this was Vegas, we'd all be around you going, dude, cash in the chips and walk away. All right.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Do you have any other vices? Are you like a dip? Something that you're spending? Vapes? I don't know.
The Ramsey Show
There’s No Fast Track to Financial Freedom
You ate your vegetables. All right, you can get some dessert.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So you're making about $65,000? Yeah, give or take.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Man, you got a lot tied up in wheels and motors going down in value to be making $65,000. Have you ever thought about selling these two items and getting something cheaper?
The Ramsey Show
There’s No Fast Track to Financial Freedom
You literally, it's like you just won the lottery and now you're playing with other people's money, which does lower your risk. You're not putting your own money. But my bigger question is what are you doing with this $300,000 you've made in the last six months?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Can you get a cheaper truck to do this with? I don't think it's a $34,000 truck causing this.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I mean, if you had a $15,000 truck that was running great, could you do the same work and get paid the same?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Okay. That tells me the truck was for you. And yes, you do use it for work, but you can also get a cheaper truck, get out of this debt, free up more margin. And I imagine you don't have a lot of time to be on the boat when you're working and a full-time student.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Are they making the $1,300 payments for you every month?
The Ramsey Show
There’s No Fast Track to Financial Freedom
You can be kind and respectful. That's right. Do you have any money in savings, Hayden?
The Ramsey Show
There’s No Fast Track to Financial Freedom
problem with my arm and surgery so i got a a settlement a settlement coming in soon okay and that'll be in your name you said your parents have it for you uh no it'll be in my name okay man that'll set you up for sure yeah
The Ramsey Show
There’s No Fast Track to Financial Freedom
That's an emergency fund plus some moving out money plus some down payment money. That sets you up, man.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I would have like a house before you put all of your money in depreciating asset to impress your friends. And trust me, they would be impressed. What's less impressive is invisible wealth where you're like, well, it's in the equity of my very reasonable home.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Here's the truth. They're leveraging debt to do leverage real estate, and that's fine. It makes sense for almost nobody to do a whole life policy, especially as an investment tool. And think about this. Why would a whole life insurance salesman be pitching this as an investment tool to get you to buy their insurance?
The Ramsey Show
There’s No Fast Track to Financial Freedom
It's the only people who actually say it's a good product is the people who sell it, which should be a giant red flag.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And then, you know, your business buddies, they see these TikToks and they're going, oh my gosh, this is...
The Ramsey Show
There’s No Fast Track to Financial Freedom
they gave it a fancy name infinite bank it sounds cool i will admit very intriguing name book all it means that yes and there's a book it's like yes i've heard of the book where they go well if you just read the book how to be your own banker and the concept is you're going to borrow against the policy the truth is you're taking a policy alone from the insurance company your cash value policy is collateral right so it's no different than taking out a HELOC against your house to go do real estate
The Ramsey Show
There’s No Fast Track to Financial Freedom
But it's the same concept. It's going to have often variable interest rates. Sometimes the idea that you've got to have an interest rate low enough to even make the investment worth it, and you're adding a lot of risk and complexity to your life, all the while paying huge commissions for a low return product. And so here's what I would say. What is your goal? What are you trying to do?
The Ramsey Show
There’s No Fast Track to Financial Freedom
And let's figure out a better way to get there.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Are you looking to scale the business essentially and you're looking to debt to do it?
The Ramsey Show
There’s No Fast Track to Financial Freedom
People take out what caused their wealth though. They're using it knowing there's risk involved. They're ever a risk tolerance and they're going, I'm willing to take this gamble.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah. I think Dave Ramsey should write a new book called Be Your Own Bank because Dave is actually his own bank. And he's done it debt-free. And it wasn't a, I'm trying to do it debt-free. He just drew a line in the sand and said, I'm done. I'm going to build a business debt-free. I'm going to build a real estate empire completely debt-free. I'm going to move at the speed of cash.
The Ramsey Show
There’s No Fast Track to Financial Freedom
He could have moved a lot faster had he used debt, but he had tasted the fruit of that tree and it did not taste good going through bankruptcy back in the 80s. And so I would caution you against it. You can do what you want. I'm wishing you the best either way. But you said you're a person of faith. I can't get this out of my head, Jay. The borrower is slave to the lender.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Wealth gained hastily will dwindle. Whoever gathers little by little will increase it. So I'm playing the tortoise on this one as a believer. And Darren, I hope you do the same.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Especially if I got a family now, it's like that adds a whole other piece to it. And so you can build generational wealth a whole lot of ways for your kids. I'm not doing it with a whole life policy.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Children recognize this. If a child works to make $10 to go spend at Chuck E. Cheese versus Mama Jade giving $10 to the kid and said, have fun, that kid's blowing that $10 in five minutes.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Coming back for more. When you had to earn that $10, you're like, ooh, is skee-ball worth another dollar? I don't want to cash this in quite yet. You feel it because you've earned it.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Gosh, I wish every American adult could have your six-year-old's wisdom. Because here's the thing, you turn 18 and they go, ah, just put it on the card. I know, you don't even think about it. Let's infinite bank our way out of this. It's a different game when you go, debt is not an option. And it leads you to be more thoughtful with way more peace.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Excited to be here. Thanks for having me, Jade. Now you have a lot of options. Thanks for choosing me.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Okay. Hmm. That's interesting. And from what I've read, we're not sure about the legal underpinning of this, if he can actually do this. So my fear is, kind of what happened with student loan forgiveness, is the student loan companies went, hey, Jade, here's a $20,000 check as a refund, and we're going to reinstate your student loan balance. Good luck with the government forgiving it.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So my fear is they say this, you leave, and then they don't actually make the payments. So do you have any... I may be wrong in this. Do you have any other information that would help, you know, solidify this decision?
The Ramsey Show
There’s No Fast Track to Financial Freedom
That's exactly my fear. Assurances from the government is enough to send.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So I think there is a lot of risk here. But if you're willing to handle that risk and go, listen, I'm going to land back on my feet. Worst case, I'll go find something else to do. We're OK financially. We're debt free. If you're in that position and you go about this like, hey, it's a new adventure.
The Ramsey Show
There’s No Fast Track to Financial Freedom
We're going to find something ASAP to replace the income and not just wait until September 30th to make a decision. Then I would be OK with it.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And generally what we find is people leave the government public sector, they end up doing better in the private sector, especially if you're going to start on your own or go work for a firm somewhere. I think in your line of work, you're not going to have trouble finding it. And so that also gives me peace.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I don't want to make this sound like carte blanche advice for anyone with a government job to do this. But in Morgan's situation... I mean, it sounds like you guys have thought through all of the different angles of this to go, we can make this happen and it's going to benefit us.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And it just felt like this fork in the road. Hey, if we're going to change up our life, the world's already in flux and chaos. Might as well.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And we're so glad you did explore Jade because you're here next to me on The Ramsey Show.
The Ramsey Show
There’s No Fast Track to Financial Freedom
It feels good. I don't want to give you the response back, but it feels good to hear it. Let me say that.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Have you plugged that into an investment calculator to see what half a million left alone? If you don't add anything to it for the next 20 years, from 45 to 65, what that'll amount to? I'll do it. Jade's going to crunch the numbers. Let me talk to you while she's doing that. I want to talk about this mortgage. It sounds to me like maybe you bid off more house than you could chew.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Is this mortgage payment a big chunk of your take home pay?
The Ramsey Show
There’s No Fast Track to Financial Freedom
We recommend 25%. You're a little above that, but nothing's on fire. Why not just chip away at it every single month with as much as you can throw? So if you're investing 15% of your income to retirement, how much extra could you throw at the mortgage?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Only a few hundred bucks is the margin you have on 11 grand?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Okay, are you helping them cash flow college? Yeah. Okay, when will that end, the season of trying to get the kids through college?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Okay, and have you been investing money into a 529, or is this just straight savings and cash flowing payments from each paycheck?
The Ramsey Show
There’s No Fast Track to Financial Freedom
I mean, it's reasonable. The thing that the parameter we look at is you don't want more than half of your income tied up in things with wheels and motors. And the truth is, we don't know how sustainable this income is. And so what I would caution you against is losing out on opportunity cost of, hey, 28,000 in a car that's going to be worth 20 a year from now.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah, I think you've got good intentions and heart behind it. You're not trying to do something frivolous or stupid, but nothing is worth giving the government an extra 35% of my retirement and unplugging all of that growth. just to have a paid for house. And trust me, I want you to have a paid for house, but I would find other ways to do it with future income, savings, anything else you can do.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And you're going to make more money over time. The kids will get through college. And so you'll be in a season where you can throw a few grand out of your 11K take-home pay toward the mortgage and get this thing knocked out. So what I would do is sit down, you have a wife, I would sit down with her and go, hey, we want to pay this thing off.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Let's have a six year, seven year, eight year plan to get rid of this mortgage. Here's what that looks like. And year one might be slim because the kids are going through college. Year four, maybe we're putting away 50 grand a year at the mortgage. Maybe more. So I use our mortgage payoff calculator and start crunching the numbers.
The Ramsey Show
There’s No Fast Track to Financial Freedom
That's the tool I would rather you use to figure this out versus looking to the 401k or any other retirement plan. And as a reminder for anyone out there, if you withdraw funds in most cases before 59 and a half from these retirement accounts, the IRA, the 401k, you will be dinged with a 10% early withdrawal penalty on top of the full income taxes, maybe state income tax as well.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So I, you know, just crunching the numbers. What's the opportunity cost? You could lose half your money from this retirement account. You pull out $200, you pay $100. I would say that was a bad trade. Yeah, that's not good. That's not good.
The Ramsey Show
There’s No Fast Track to Financial Freedom
May not be wise when I could put that into XYZ, an investment, a future home down payment fund, whatever it may be. So there's nothing wrong with getting a car. I think you're doing it in a reasonable way. You don't sound like a guy who's about to blow up his life to go flex on Instagram. I just know as an 18-year-old, that would be my temptation.
The Ramsey Show
There’s No Fast Track to Financial Freedom
You broke up on us when you were telling us. What did you fall in love with?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Wow. Quite the legacy. That's impressive. Yeah. Yeah. I'm with Jade on this. You take your 35 savings. Let's knock out the student loan and the car loan today. That leaves you with 14 grand. Sell off a big portion of this inheritance and be aware of the tax implications of that. I would check into that with a tax pro.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And whatever you can throw at the condo, I would throw at it to get to as completely debt free as possible. Because then what's going to happen, Chris, you're going to have a mortgage payment freed up that you could then invest.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And so either way, you can crunch the numbers and do the math all day. I think the freedom and peace that will come with not having a mortgage payment at your age, dude, you're going to be so unbelievably wealthy if you just use your income to throw into investments then on and therefore.
The Ramsey Show
There’s No Fast Track to Financial Freedom
The ultimate flex in today's world, I think, is having no mortgage payment and telling your friend, oh, you got a 2% mortgage interest rate. How about 0% with no payment? That's what I'm signing up for.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Have you gotten one of those texts recently claiming to be the USPS with some sketchy link to update your address? It's annoying and a little terrifying. And you probably think to yourself, I should do something about this. But where do you even start? Well, as your nerdy friend who does the research for you, I found the solution. They're called Delete Me.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And here's the reason they come in the clutch. The internet is packed with data brokers, which are these shady companies whose sole purpose is to collect your personal info and sell it for a profit. Enter Delete Me. Delete Me swoops in, finds your info on these sites, and removes it on your behalf. They even send you a report with all the details.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And so far, for me personally, they have reviewed 27,000 listings, removed my info from 240 data brokers, and saved me 66 hours in the process. I trust Delete Me to help protect my family, and I trust them to help you too. You're going to get fewer spam texts, fewer phishing emails, and fewer creepy robocalls. And Delete Me also makes a great gift for other people in your life that you care about.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Individual plans start at just $9 a month, so take an easy step to protect yourself and your loved ones today. And as a Ramsey fan, you'll get an extra 20% off any of their plans at joindeleteme.com slash Ramsey. That's joindeleteme.com slash Ramsey.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Today's question comes from Amy in South Carolina. We saw a financial advisor recently who recommended putting part of my husband's 401k into an annuity. He recommended this so we do not lose money and my husband would be able to draw up to 8% during a seven-year period. I know, I know. All right. Okay, number one, fire your financial advisor yesterday.
The Ramsey Show
There’s No Fast Track to Financial Freedom
This person is an insurance salesman, not a wealth strategist who exists to help you understand what you're investing in.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So let's talk about the different pieces of this. So an annuity is a contract with an insurance company with a promise of a stream of income. And so who do they prey on for this? People who are scared. Annuities prey on fears of market risks under the guise of protecting your nest egg. But it's less like a bank vault and it's more like a prison that you're paying to be in.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Annuities are very expensive, complicated products. There's fixed annuity, variable annuity, indexed annuities. And I've talked with Dave about this offline and he said, hey, the only one that we would be okay with in very unique circumstances is variable annuities.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And that's only for the ultra wealthy who are trying to diversify their risk. But for this situation, this person is saying, I'm not making money from you investing in your 401k, but I can make money if I use some of that money for an annuity and I can get a commission off of that.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah. One last question. What do you want to do with your life? Let's fast forward five years from now. Let's say day trading does not exist anymore. SEC makes it illegal. You know, what are you going to do?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Terrible rates of return. You can do way better investing on your own. And that's where you need education on stock markets and mutual funds and index funds. Because here's the deal. If you make 8% on an annuity, you think, I'm crushing it. The S&P 500, the overall US stock market, did 24% last year.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And you're going to go, why is my portfolio not making that much? Well, it's because you have crappy investments in there.
The Ramsey Show
There’s No Fast Track to Financial Freedom
It could be negative 24% this year for all we know.
The Ramsey Show
There’s No Fast Track to Financial Freedom
What's in here? We don't know if there's hopefully there's term life insurance. I have a feeling there isn't because she's saying his health is failing. He's afraid that, you know, he won't leave me with much. This is where term life could be a game changer on top of getting self-insured, which means from, you know.
The Ramsey Show
There’s No Fast Track to Financial Freedom
In your 20s, 30s, 40s, 50s, you're following the baby steps, getting rid of debt, investing for the future, getting the house paid off to when you're 65, you should have a sizable nest egg there. I don't know their situation, where they're at, but no, the financial advisor is screwing you over here. I would fire them.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I would jump on ramsaysolutions.com, click on trusted pros, find someone you can trust who's not going to sell you crappy products that you don't need.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah, it's very sus. And here's how you know it's sus. These are the same people that always send you those flyers in the mail that's like, we have a free dinner for you at this steakhouse. And all you need to do is sit through a little presentation at the end. These are pitching annuities. So if you've got one of those in the mail, it's not unlike timeshare presentations.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Where it's like, hey, I get it. We get a free steak dinner. We'll listen to the pitch while we eat. And all of a sudden they dupe 12 people out of fear into buying into these annuities.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah, you can do better. All right. One cocktail. Come on.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Hey, do you come from a Middle Eastern family?
The Ramsey Show
There’s No Fast Track to Financial Freedom
I feel that as a Middle Eastern guy. Every one of my family is a doctor but me at this point, or at least in the medical world.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Hey, that might be the reason this money was put into your lap. Not to blow on cool stuff, but to fund med school completely debt free. You know how much of a unicorn that would make you when you graduate?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Are you saying there's collectors coming after you guys?
The Ramsey Show
There’s No Fast Track to Financial Freedom
I would look into a homestead exemption, and I would talk to an attorney in your area who knows your state laws because it differs wildly, and I'm not here to give you legal advice on that. But we are wishing you the best, Wade. It's a lot. And I don't want your father-in-law taking advantage of you. It's given me some red flags. I would proceed with caution.
The Ramsey Show
There’s No Fast Track to Financial Freedom
When all your buddies are bragging about like, oh, I just took on another 50 grand in debt. I'm at 400 grand. Like this is the these are the conversations my family now has. You know what I mean? Yeah. And so I'd love to see you set yourself up for a debt free future. And that's great. Let's let's hold on and see what the future holds.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And if it is med school, we've got it funded and mom and dad don't have to co-sign student loans to make this happen.
The Ramsey Show
There’s No Fast Track to Financial Freedom
It's really tight if you're getting... Yeah, you need to get out of school and work because your family needs you to. And this is regardless of the baby situation. I'm going, hey, this is an emergency situation.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Just give me a total monthly number. What is a total? Are you spending $4,000 a month in expenses?
The Ramsey Show
There’s No Fast Track to Financial Freedom
And you're getting just gifted money now, but what is the actual money you guys are bringing in? A few hundred bucks?
The Ramsey Show
There’s No Fast Track to Financial Freedom
And you said you guys do not have health insurance currently?
The Ramsey Show
There’s No Fast Track to Financial Freedom
I want to know what firm is hiring 17-year-olds to do this bidding on their behalf. That sounds very sketchy. It's just a whole thing sketchy. And I believe Amir. I just think it's wild. We've taken many calls on the show, Jade. People losing $30,000, $150,000, even $300,000 by day trading. So don't look at Amir and go, I'm going to be the next Amir.
The Ramsey Show
There’s No Fast Track to Financial Freedom
his portion is 15, bringing the total to 35, which means you guys are underwater every month by about 800 bucks.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I needed some fire under his butt. I know he's been through a lot. He's been treated unfairly. But right now it's like, I got to provide for my family.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I got a baby on the way. It's time to just do whatever it takes. And he needs to find long-term employment ASAP with benefits if you're going to stay home. And so staying home, it's a math equation. I wish I could just say, well, if you want to stay home, just stay.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I wish it were different. Hang on the line. We're going to send you every dollar premium. That's our budgeting app that you can use for everyone else. Go check it out in the app store. It's going to help you get a plan for every single one of those dollars coming in.
The Ramsey Show
There’s No Fast Track to Financial Freedom
No, you're likely to be the next person to call in broke.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Nothing. Oh, there we go. What's going on, man?
The Ramsey Show
There’s No Fast Track to Financial Freedom
How did you get this offer? I'm just curious. I mean, it sounds like a pretty sweet deal to offer someone with zero sales experience.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Have you looked into all the implications of taking a career outside of the States? I don't know. So I'm just asking, have you done the due diligence?
The Ramsey Show
There’s No Fast Track to Financial Freedom
We're just trying to poke holes to hit every angle.
The Ramsey Show
There’s No Fast Track to Financial Freedom
See ya. Matthew's going to Dubai. I feel like I'm on Wheel of Fortune. We're going to send you. No, it sounds like I don't see any red flags here. If you've done your due diligence on the company, this seems legit. You want to make this move. You're young. Now's the time you can make this move without it affecting a bunch of other people like your family.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And so if you were, you know, 38 with six kids, they'd be like, hey, let's pause before we do this move. But for Matthew, it seems like one of those things, it's a fun adventure. And if it doesn't pan out, he gets to say, hey, remember that time I lived in Dubai and got to experience that? It's pretty awesome. Best case it works out, he's partner at the firm three years from now.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Yeah. It's not quitting on home ownership. It's just getting your head above water to do it with a little more peace on the next go around because this just feels like, I mean, you can give it six months and see if you can get your income way up, like Rachel said, before you sell.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
It's not like an on-fire sell today, but it just feels like if there's no end in sight where this is going to get easier and you're going to continue to go into debt, then I think the writing's on the wall that it's wise to sell.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
And again, it's not a fundamental, you've got to do 20. It's just that when it's 50%, life is hard. When it's 25%, you always have margin. Yeah, I mean, if it was $1,000 right now, right?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Is there a growth plan for you to make five, six, seven grand a month in your current role?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Is it time to look for another company?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Yeah, renting is not a waste of money if it's going to buy you peace. That's right. Priceless.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
no on the bankruptcy so i'll just i'll just say that yeah first and foremost we're not there we're not even close so there's some some good news for you i think mom wants you to get a clean slate and she's kind of wanting you to just shortcut this and and be free from the pain but there's better options here and so let's talk about the car instead of a voluntary you know repo could you sell it and come up with the mount you're underwater on
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
keeps you broke I mean when you are living beyond your means and trying to in a way kind of keep up with what everyone else is doing will constantly lead you back to this idea of spending money that you don't need to spend and sometimes you're spending money you don't even have to keep up this lifestyle and you talk about comparisons a lot so this segment hopefully will help you fight those comparisons and FOMO you feel amongst your friends so here's some signs some things that your friends may be doing people out there on Instagram that may show they're faking their upper class status
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Number one, flashy designer logos. This is a big one. Most luxury items like a cashmere sweater never have logos all over them. We've talked about stealth wealth. Yes.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Hey, some of these beers now are crazy expensive. But yes, the wine does. That one feels like a ripoff to me personally. You know this, my stance. I do know this. I will not order wine at a restaurant. But if someone else buys a bottle, hey, I'm happy to share.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Glasses of wine and cocktails can go for $20 a pop versus a beer or even better, just a water. What happened to just drinking water with a meal? Why do we get to add more calories to the mix?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
It's exhausting. And then you've got the crypto bros who are very loud right now because crypto is worth $14 billion, you know, for the moment. And so all these people talking loudly about money is usually a red flag to me. Maybe they don't actually have a lot.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
And that's and then the kicker, they're like, and by the way, it was totally free with their credit card points. Sign up for my course if you want to. I'm like, oh, my gosh, get out of here.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Get out of town. Here's another one. Leasing luxury cars.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
If you're a dude and you've ever posed in front of any vehicle, it's a hard no for me. Your dad didn't hug you enough and I'm sorry. That's just the truth. But this is a status symbol that's usually draining their wallet. We just took a call earlier. It is. Guy's got a $1,200 car payment.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
A lot of young bros who are doing well for themselves.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Where are the guys who are leasing like the Honda Civic, you know? They're not there. Does that exist?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Yeah, no, and this, you know, obviously the watches leans more the dudes, but the women, the flashy nails, the loud hair and makeup, we could tone it down, you know?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
I'm all for accessorizing. Here's my thing with this. There's a limit.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Well, you follow a lot of like the influencer moms and some of them are very sweet and authentic and being themselves. And then some fall into the category of this is a lot.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
You're trying to portray a certain life.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Like they wake up and they have full makeup. Who's believing this?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
And if you're doing it with debt, it is a facade. It is a house of cards. You're artificially propping this up. So here's my, you can tweet this if you're listening out there, whatever it is called, whatever platform you're on, whatever free speech platform you choose. Here it is, Rachel. You ready for this? Can't wait. If you live fake rich, you'll become real broke.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
How do you owe $50,000 and the car is worth less than half of that?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Eventually you will be calling the show and life was great. And now something happened and you're going, I'm in a real pickle because of my financial decisions. And so we just don't want that for you.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
That's right. Normalize the 10-year-old used minivan.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Have your kids been vandalizing this vehicle? I feel like that's a personal problem. I don't think that's on Honda. You know what I mean? We can't blame the good people at Honda for that.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
I'm blaming Chuck Cruz. He's been working out too much, just ripping pieces of this van apart.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Less stressful. You know what? I hit my garage the other day. Big old scrape on my car. You know what I said? Yeah. It's 12 years old. It's fine. Who am I trying to impress? Rachel Cruz? She's not impressed.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
So yeah, there's a big old scrape on my car.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
It helps to just get off of there. I realize I stopped caring what other people think when I'm not looking for reasons to be angry and upset and jealous and envious. Just get off and live your life.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
I'm the most humble guy you know.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
And you said, sure, 25% sounds good. That's reasonable. Let's go. I need this $50,000 car.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Did you have all this money sitting around and you just weren't willing to part with it? Well...
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Wow. That's a big step. You're really, you drank the Kool-Aid.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Okay, so what's the total debt? Is it just the $9,000, or is there more where this came from?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
You're just like, whatever, you do you, I'm going to manage my money and not go into debt and hit my goals, and you're not dragging me down.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
So you'll probably, what's your, uh, you, do you file single or married filing jointly at this point?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
And what was your income last year?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Okay. So it'll likely fall into like a 15% capital gains tax on those stocks since you've owned them for longer than a year. It's going to be long-term capital gains tax and it'll likely be 15%. I would talk to your tax pro about what that number actually would turn into because you'll need to have that, you know, be able to pay the taxes on that come tax time.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
But I would definitely sell these stocks, pay off that 9,000 and then fully fund your emergency fund.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Yeah. I mean, that's one way to do it. Before tax time, you can fund last year's Roth IRA and HSA and all that stuff. So that would be a good thing to do. And then make sure you have your fully funded emergency fund set up before that. And if you have enough, you can fund the rest in that IRA. But the bigger glaring issue here is this marriage, Lee. It's like the elephant in the room.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
So because, you know, you're going to split your assets and everything. Yes. I also want to think about your the quality of your life. And not just about the dollar signs, but I'm just, I just feel for you. I mean, has it been 30 years of this?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
I appreciate that. I'll take the accolades. You don't need to mention my name.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Has he actually talked to a tax pro to see if this loan repayment counts as income?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Is there anything in the contract that you signed with him that would prohibit you from just paying it off?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Did he not make money off of this? Did he not benefit from this whole thing?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
He can wipe his tears with $100 bills.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
I don't have a lot of empathy for the friend.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
And be thankful a friend paid me back, which is very rare in today's world. And the other thing Dustin is that when he loaned you this money, the relationship already changed. It turned into a business partnership transaction and it moved away from friendship. And so this is what happens with friendship.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
So the truth is, if you pay it off and he decides to not be your friend, was he really your friend?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
There's a piece of it, though. I know what you're saying.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
I would never burn a friendship over them paying me back.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Different vibe on this show, but still fun.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Oh, man. Yeah. Because the problem is you need to come up with the difference. Even if you do a voluntary repossession, they're going to sell it at auction for way less than it's even worth. And you're still going to owe the difference.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Listen to your wife, Dustin. Her vote counts 1,000 times more than any of my friends. And I love my friends.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
So it doesn't really it doesn't solve all of your problems to even do the voluntary repo. That's why we're trying to find another solution where you come up with the difference. I'd rather you be 25 grand in debt driving a beater than 47 grand in debt.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
I still remember 10 years ago, 23 years old, I was frustrated, anxious, and flat broke. I had followed all the ways that toxic money culture had led me down from well-meaning parents and misguided guidance counselors, and it left me with a pile of debt. But I'm telling you, it doesn't have to stay that way.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Over a decade, I went from broke to millionaire, and I break it all down in my new book, Breaking Free from Broke. I'm going to show you just how toxic this money system is and how you can break free from credit scores and credit cards and student loans and auto loans and investing traps and finally live a life that you're not exhausted by, a life with more margin, more options, and more peace.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
If you want to check out the book, go to ramsaysolutions.com to get your copy of Breaking Free from Broke. That's ramsaysolutions.com.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
How much more debt do you have? What's the total amount and break it down for us?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Oh, my goodness. Well, we can sell the cars. What do the cars have to do with the remodel?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
I'm confused. You said you had $210,000 in other debt and only $28,000 of that is cars. You're saying the rest of that is credit card debt?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
And what were you doing for work where you guys were making about $200,000?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Okay, and what are you doing now?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
But then you need to, is there some kind of online education you need to get that will cost money? Or can you just do the certification test?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
And how quickly do you think you could get a job making six figures as a software developer?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Okay. If I was in your shoes, Mike, a right fit would be a luxury and a privilege. Right now I'm going, who is willing to pay me $100,000 to write some code? And I'm going to do that so I can survive. Because right now I don't see a way out of this with your monthly payments and your income. You guys are going to continually go into debt.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Are you guys able to stay current on payments right now?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Yeah, I mean, you guys are on the edge of running out and going back into more debt. And so can you go do three side jobs this week?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
It doesn't have to be software. It could be Instacart shipped, Uber, Handyman, whatever skills you have, go do it to bring in something while you look for that work.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Okay. Well, today we start Mike's handyman business and you're going to charge 50, 60, 70 bucks an hour and put it on your neighborhood Facebook group and hand out some flyers and go, I'm doing good work and I show up on time and get referrals, word of mouth and get this business going and do as much of it as you can until you get that next software developer job. Okay.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
That's what I would be doing if I had your skill set.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Do they know about any of this? I'm sorry? Do they know about your financial situation at all?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Okay. It might be good to sit down with them and have a hard conversation and say, listen, the next year or two, it's going to look different for our family. We used to go do stuff and eat out and do all these sports, and right now we've got to really tighten up and get out of this financial mess. Here's what that's going to look like.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Oh, $47,000. Oh, I wrote the $43,000.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
So, I mean, ideally, we'd say, hey, go to your local credit union, get a... a loan for the difference, maybe 25 grand and spend three of that on a beater car. But I don't know that they'd even grant you that loan at this point.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Okay, picture this. You sit down to do your taxes, but instead of stressing out, you're actually ahead of the game and filing with an affordable software that makes your computer shoot confetti when you're done. Okay, not that last part. But Ramsey Smart Tax does make filing easy and doesn't make your bank account cry.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Ramsey Smart Tax is a 100% accurate software that's honest about its pricing and is backed by a company who's been in the business for over 50 years. So go to ramseysolutions.com slash smart tax to take advantage of early bird pricing and stress-free filing. That's ramseysolutions.com slash smart tax.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Today's question comes from Matthew in Idaho. My wife and I are millionaires after years of working through the baby steps. In the beginning, it was exciting. The baby steps happened fast and our children learned to have Christmas on a budget.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
But once we got to the point where we had an emergency fund, the house was paid off and we were building wealth, everything just started to seem very routine and boring. How do we keep the excitement going in our financial lives? If there was ever a Rachel Cruz question, this would be it. You were made for this question.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
You are so good about keeping your financial life exciting. Because you're the spender. You're like, I've got some ideas. And they're like, he's like me. He's like, well, I like a financial goal. We saved the thing. We invested the thing. But now what? Goals. Now you have to actually figure out who you are.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Sure. That's the least harmful of the options is to go to a credit union and see if you can get the difference in a loan and maybe a little bit more in order to get a beater car, get rid of this payment, and then you'll be climbing your way out of this. And then hopefully in the meantime, we can get your income back up to six figures.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
No, you nailed it. I think there's usually a flat tire situation when you're really good at saving and investing. And then the giving side usually is a little lackluster. And you have a hard time just spending for fun because it feels frivolous after everything you've been through.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Is this George? This is me. I'm working on my flat tire, Rachel, trying to spend more, enjoy life a little more. But I relate to Matthew's situation because the baby steps are so great because it gives you a very exact process. If you do this thing, you'll hit this goal. And then you get to baby step seven and it's a choose your own adventure of live and give like no one else.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Because clearly you're skilled enough and you're willing to do the work.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
And so that's where he has to figure that out for himself. And maybe that is we need to find some hobbies. Maybe I'm going to try golfing or I want to get back into this thing that I used to love as a child. I really need to pick back up piano lessons.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Whatever the thing is for you and your family and go, hey, this is something we never thought we would do. Or back in the day, we were like, nope, we can't do that. What can you say yes to now that was a no five years ago?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
And you got you and Winston just did your annual dream date recently.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Beautifully said, Rachel. Gosh, no notes, no notes.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Do you have your... They did not give... We are missing our social question. Oh, no. I got one. I'm just kidding. You got one? Oh, perfect. All right, here we go. You ready for this one? Shoot. Zach from TikTok asks, how much is enough or normal to spend on an engagement ring? I want Rachel's opinion on this so badly. I don't think I've ever talked to you about this.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
generally we'd say one month salary is like a top limit.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
But three months out there, I think like Zales and, you know.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Every kiss begins with K came up with, it should be 17 months of your salary.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
De Beers or whatever? De Beers, that's it.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
because nowadays like what people are spending it's to be in weddings to go to all the stuff i mean it is well and then the comparisons can i just be honest it's the women on women comparisons of oh let me see the ring oh that's that's cute you know what i mean like the guys don't care no man has ever cared no it's just like we don't want the woman to be upset that's
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Are they going to know it's from the lab and not a blood dime? Oh, yeah. What do you think about? Yeah, I could give a rat's toot about where like if that's what you're basing this marriage on. What was it? Did they work hard for the diamond or did a laboratory? Don't care. Get a moissanite. It's about the beauty of the ring. And does it match her personality?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
My wife's ring was not that expensive.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
It's not a blood diamond. I'm not even sure it's a real diamond, Rachel. I don't even like you saying that. It was just a beautiful ring. That's what they call them. I don't know what else to call them. Lab grown versus nature found?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Producer Kelly, she's showing her ring going real. That's the word you're looking for.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
I got my appointment. Do you have your appointment? There you go.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Oh, that's nice that he at least invites you. He does. You're on the calendar invite.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
No survivor benefits. So he lost that too.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
If you can get out of that. And then now the second half, at least it's bearable and you can climb out of that pretty quickly, even making what you make. It's a solvable problem. But I do think income is the biggest part. And then your lifestyle is going to have to get cut down to nothing for probably the next 18 months. Yeah. And so this is no eating out.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
He's on a scavenger hunt while grieving.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
This is, hey, the roommate wants to, sorry, I can't hang out. I'm working three jobs. It's not going to be a fun journey. But the good news is you're young enough that you have a lot of time to make up for this. And so all hope is not lost. You don't need to go file for bankruptcy.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Sell her car. Yeah. And get rid of that loan. In the meantime, that's a short term thing that could relieve some pressure here. And then with the credit card debt only in her name.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
If they're only in her name, he may not be liable for them. It just depends on how things are set up and will the estate pay it out of her assets and there's his name on that. And so that's, I can't tell you for sure.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
They're not going to go after like the mortgage or her retirement accounts. But if she has any other assets that can be used to pay this down, they will use that. But I would not be in a rush to pay off this credit card debt. And I would not let the creditors pressure him and lie to him and say, no, you need to pay this today. Do send a copy of the death certificate to the credit card companies.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Once you get those, get a bunch of copies, probably 10 copies minimum to send to all the creditors involved.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Yep. There it is. Annualcreditreport.com. You can pull from all three bureaus and get a real picture of here's the reality of where we're at. And now we know the next steps. And he's lucky to have you to help and clean up the pieces. And if we can help in any other way, let us know. But this is just one of those. Reminders to everyone else listening, get a will in place today.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
It's not going to cause you to die any sooner, but it will cause your family to just grieve your loss instead of also lead you on a scavenger hunt and guess. And have the government decide what happens to your stuff.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Well said, Morgan. I know. Thank you. Thank you so much. It's not easy to go on radio like this and share.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Everyone listening, including us, we're thinking of them and praying for them and wishing them the best.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Or would you say, I know, I just don't know how quickly he's going to save up 25.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
I got to find my joy somewhere. And the comment section is so entertaining to me.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Where's Dave? Question mark, question mark, question mark, question mark. One question mark would suffice. So can you clear the air?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
And, you know, I didn't think about that.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Oh. So what do you make and what's the mortgage? Yeah.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
So if you sold it after fees, you would net probably $110,000 or so, maybe $120,000 if you're lucky? Yeah, kind of.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
And then you could then pay off your $37,000 in debt, leaving you with another $60,000 plus to then begin a new down payment while you rent.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
At that pace, it's going to take you another 40 months to get rid of the debt you took on, on top of covering your mortgage, which is already consuming a lot of your take-home pay. So I can feel the stress of all of that
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Um, that's with your minimum debt payments, all of your expenses. That's what it should be.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Well, outside of the truck, I added it up. I mean, if you sell the truck, you'll have $80,000 in consumer debt based on what you told us. Yes. And so you had said 80 at the top, but you got 80 plus the $26,000 truck loan. That puts you at six figures in debt. And I'm trying to help you.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
And I'm telling you, with a calculator, it's coming up at $80,000, and that's without your car loan. So I just want you to have a real picture of what your finances are at, and that's why I'm so desperate to get you to get rid of this truck and downgrade to, number one, free you of $26,000 today before your truck goes underwater. Almost every call, people are underwater on their truck.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
So when you said this truck is worth $57,000 and you owe $26,000, I was doing backflips because it gave me some hope that you can get out of this faster than you think. And if you do that and then do the debt snowball, every extra dollar outside of food, utilities, shelter, transportation, insurance goes toward that $80,000 you have remaining. Smallest to largest balance.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I think you can get out of this. You make great money. You're a smart guy who works hard.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
What was the reason for you to uproot them and take this pay cut? It was clearly a big enough reason that you guys decided to do this.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Okay, and now you're realizing we can't sustain this financially. With our lifestyle, our bills, and our much lower income, this is stressful for us, even though we're closer to family.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
So that's an upcoming expense. That's not debt, right?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
$200. Dollars. Dollars of minimum payment or that's the total?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Oh, no, Shawna, don't step foot in the convenience store, a gas station. Stay far away.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Nursing assistant. Nursing assistant.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
How long have you been paying on these student loans?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Are you single? Yes. Okay. Well, there's some simple steps you can take that are tactical to help you, but it's going to take sacrifice. It's going to take making more, spending less, all of that. So here's the thing. With the collections, you've got to talk to these people. We can't bury our head in the sand. And even if you call them and say, listen, I can't pay you.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I make $10 an hour, and I got a lot of bills and a lot of people who want to get paid. And so I need to keep the lights on. So your one priority is food, utilities, shelter, transportation. We call that the four walls. Nothing else gets paid before those get paid. I don't care who the debt is to, what the collectors are saying.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
You got to keep the lights on, keep the mortgage paid so that you don't get foreclosed on and eat something too. And so beyond that, you got to make your insurance payments. We need to keep all of that to protect us. And then we can start tackling the debt. But clearly there's not much to tackle it with because you have no money left after making minimum payments, right?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I'd call everyone you owe debt to and say, listen, I want to pay you, but I don't have any money. I make $10 an hour. I'm six figures in debt. I'll pay you when I can and what I can. But right now, I'm flat broke. Okay.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Is there a path for you to make more in the nursing assistant world? Like it's a CNA where you could be making $40,000 a year?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I would do some homework and research and talk to people who are in these fields, in these positions, and ask them the path and what it's going to cost and what it's going to take and how long.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
But beyond the agency, as a certified nursing assistant, you should be able to make $30,000 to $40,000 versus $22,000. And with your experience, I'd imagine this wouldn't be a huge leap. And so I would just at least start to do some homework. I know life has got you down, but this is the time.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
The next 10 years, we need to be really getting focused, get the income up, get rid of this debt and have no mortgage payment.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I'm going to throw even one more thing just because I feel for Shonda. I'm going to gift you a free coaching session with a trained Ramsey financial coach who can walk through all of this with you, help you with the collection side, navigate this wild journey, help you make a plan with the debt snowball.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
um just because we can't do that in a radio call and i really want shonda to have hope because i know a lot of older caller there's older people out there listening who are in their 50s rachel and they're going well i'm in her shoes there's no hope for me and it takes it's harder to do as you get older it's just harder the habits deeper habits that are you have to break the mistakes have been compounding for years the debt's been sitting around for years is in collections so hang on the line we'll get you connected and give you a free session with a trained ramsey financial coach yeah
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
who can help. So that's a big part of the problem is feeling hope and getting a game plan.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I'm George Campbell, joined by Rachel Cruz. This is The Ramsey Show, and if you enjoy this show, you should check out Smart Money Happy Hour, co-hosted by myself and Rachel Cruz. We have a blast, and if you need to send someone the show that's not too heavy, too intense, Smart Money Happy Hour is a breath of fresh air.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
There's lots of laughs, and we sneakily teach you money things while having a good time.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
You don't even know. It's like a what? Our writer Savannah said she was at the nail salon and some Gen Z girls were like, hey, you know that Dave guy? She's like, yeah. She's like, well, his daughter has a really cool podcast. I love it. We're talking about Smart Money Happy Hour at the nail salon.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
All right. Gabriela is up next in McAllen, Texas. Gabriela, what's going on?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
What do you mean left it to you? Whose name is on the loan?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
So you're a great, I guess, poster child of what can happen when you sign on to debt and buy things with people you're not married to. And I'm so sorry. I mean, on top of the hurt from this long-term relationship being over.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
What's left on the RV loan and what is it worth?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Well, that's been the theme on the show for the last week or month is everyone is underwater on vehicles and things with wheels because it was really expensive and they had good intentions and then the market turned and now everyone's underwater. So there's only two ways to go about this. Number one is you need to come up with the $18,000 in cash in order to sell it and pay off the loan.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Or number two, you go get a personal loan for the difference of that 18,000 to get out from under this. Do you have any money?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
yes it's under my name so technically i owe it but and are they paying are they paying on it or you're yes and no oh gosh is this family is it a friend that you like said hey it is it's family it's a family member oh gosh i think you need to stop being generous with money you don't have gabriella that's what's been happening it's a theme in your life you sound like such a sweet wonderful person and now how much do you make a year
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Okay. So you guys don't have any finances combined? No. Are you legally married or just cohabitating?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Not if I can help it. You're going to be out there busting your tail over time, doing Uber Eats and DoorDash and Instacart, whatever it takes. You're climbing out of this thing. And I think you're not scared of work, which is great. And we got to start with the smallest debt here, which it sounds like is this bedroom set.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I think you just pay it off, and if they ever pay you any more for it, great. You can apply that to the next one.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Especially if it's zero interest. All of it.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
We're done with payments. We're done with debt. You make too much, you're too successful, and you're too smart to ever do this stuff again, regardless of the interest rate. Does that track, Gabriela? Are you with us on this?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
We are Team Gabriela. And so we want you to win. And that's going to mean you have, you know, if you count up all your debt and if you want to get out of the lease, you can look at the early buyout amount and see if that's going to be worth it for you to do now. Otherwise, you turn the car in and then you need to go get another car. But don't just get another lease.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
It's the most expensive way to get a vehicle and dealerships love it because they make the most money off of these leases.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
No more leasing. Buy your next car with cash, which is going to be tough.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Okay. And bank accounts are separate. Do you guys Venmo each other for the mortgage? How does this work?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
You're saying to have the RV repossessed?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Okay, and she's not feeling the stress of this financially? Just you?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by my co-host, Rachel Cruz. She's also the co-host of another show we do together called Smart Money Happy Hour. The number to call is 888-825-5225. You jump in. We'll talk about your life, your money.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Well, it sounds like you went along with this to appease her to be closer to family, knowing full well you guys were going to be in the hole financially. And I don't know if you didn't make that clear or if she just was blind to it, as you said, and just going, I don't care. We're making this move. We'll figure it out. Pretty much.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Well, I don't know who your God is, but you need to come to Jesus' conversation where you go, listen, you're clearly not doing well financially. I'm not doing well financially. This family's not doing well financially. And life is too short to live with this kind of stress. So if we're going to stay here, we have to make it work. And here's what that's going to take.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
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The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
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The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
And that's when we lay out the finances together, get on a budget together, and figure out what the hole is and how we're getting out of it. And that might mean you need to find a higher paying job. She needs to work more hours. We need to combine bank accounts. That might be some of the next steps you take.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
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The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Listen, I know a lot of you would rather watch paint dry in slow motion than file your taxes. But thankfully, you don't have to dread filing when you've got Ramsey Smart Tax. It comes packed with everything you need to file online before the big deadline. That means all major federal forms and deductions are covered with no hidden fees.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Plus, with Ramsey Smart Tax, you can save up to 70% compared to other tax software out there. It's a no-brainer. Just go to ramseysolutions.com slash smart tax and see how simple tax filing can be. That's ramseysolutions.com slash smart tax. I'm George Campbell, joined by Rachel Cruz this hour. Open phones at 888-825-5225.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Call us and we'll help you take the right next step for your life and your money. Jennifer's in New Orleans up next. What is going on, Jennifer?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I mean, that's the noble thing to do. I don't think it helps your marriage at all or with this common law situation you have going on. So you're going to grow further apart while keeping the kids fed. And so I'd rather keep the kids fed.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Yeah, well, a lot of this stems from how she grew up with money and what her parents believe about money. Right. And so this is a money values conversation that your son will eventually need to grapple with as they head toward maybe a marriage.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
And until they're married, he doesn't really get a vote in her life. He may have influence, but he doesn't have a financial vote as to what she does or doesn't do. The worrisome part was how flippant she was about it.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I'll just pay off my $300,000 over 20 years. I think we need to give her a dose of reality. And I think you're right. Sitting them down and saying, hey, would you guys watch this documentary called Borrowed Future?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Well, if she's over the house a lot.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I mean, I'd probably pop on Barred Future because I am that dad.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
It would feel like overstepping boundaries. Do you feel like that? If you brought this up, it would be overstepping your boundaries?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Or can you sell the car and make other sacrifices to cover your four walls for now?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
No, I just think it's one of those things you cross the bridge when you get there. And if she ends up in a bunch of debt and they do end up getting married and she's aligned on the values of wanting to get out aggressively, then they'll be okay. Their life's not over. You can still have a great marriage. But it is going to add a wrench in whatever their plans are.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
yeah well keep us posted call us back in a few years yeah okay so tell me this let's split the tables a little bit George okay let's say Mia comes home oh my goodness we need a different okay let's go first of all America Mia is my eight month old daughter just for context
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I'm trying to put myself in a place where there's a contentious argument about gluten.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I mean, I think as an adult, I'd have an adult conversation with the other adult and come to a compromise.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I mean, yeah. And it's not a fiance. It's just a girlfriend.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I feel like future mother in laws give unsolicited advice all the time. It's just a part of being a potential future mother in law.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Wouldn't you get fired? And if I don't show up to work enough, Dave says, all right, we're going to find someone else who can actually do this job.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Yes, because the damage hasn't been done yet. So we're going like, we can prevent a lot of this. Is there another way? Right, right. I don't know. Did the girlfriend's parents save for college at all? Did she just on a whim decide I want to be an orthodontist one year before going off to college?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
We're like, will she eat gluten one day? I don't know. We don't have it in the house. Where will she get it?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
It's like she's not drinking in our house. I'll tell you that much.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Hey, more of your wonderful calls coming up. Always a great conversation. 888-825-5225. This is The Ramsey Show.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Okay. What were you doing before when you were making six figures?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Welcome back to The Ramsey Show. I'm George Campbell, joined by bestselling author Rachel Cruz, and we're taking your calls at 888-825-5225. You call in, and we'll help you take the right next step with your money and your life. Mike is in D.C. up next. Mike, how are you doing today?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
And that industry obviously doesn't exist where you're at. No. Is there an equivalent or is there a better construction job up the ladder that you can aim toward?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
What are you contributing right now to retirement?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
What percentage of your income is that?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Okay. Okay. 600 bucks a month. Well, I'll tell you this much. That's not going to give you a great retirement anyways. And so our plan is to pause contributions to retirement so that when you get back to investing, you're investing 15% consistently without fail. For the next decade or two until you get your house paid off and then you can invest even more.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
And so that's the purpose of us telling people to pause the 401k is twofold. Number one, it actually frees up the 600 bucks a month that can now go toward the credit card, right? Right. And number two, it lights a fire under your butt to get out of debt faster because you desperately want to get back to investing, don't you? Yes. And the problem right now is you're a little bit comfortable.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Like, yeah, you want to get out of debt, but you also want to invest and nothing's on fire. And I like the fire that is created when you pause the investing. It tells your own body, this is serious. We need to get out of this debt ASAP because I want to build wealth and stop paying for the past. What is the debt of the interest rate on these credit cards?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Okay. So how quickly can you pay off if you pause investing, you've got the extra $600 back, you've got $6,000 left on the credit card, you're making $81,000. How quickly can you pay this off if you do all of that?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Let's call it six months. Okay. How would you like to be debt-free in six months? Do you have any money in savings?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Okay. So you got $4,500 in liquid cash right now.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
And if you pause investing, now you have an extra $600. This thing's done in like two or three months, dude.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
By the end of the year, you'll be investing 15%.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
You'll have almost tripled your investing. Do you see the excitement that we have as to why this plan works?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Booyah. Another one bites the dust, Rachel. We did it. Mike's on the path. All right. Let's see if we can help Jordan out in Boise up next. Jordan, what's happening?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I debunked it, Rachel. I'm literally on realtor.com right now.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
There's at least 30 houses that are beautiful. Three bedroom, single family homes under $400,000.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Today's question comes from Alexis in Tennessee. We recently received credit cards in the mail from my son and daughter who are both under the age of 12. When I showed them to my husband, he responded that he had taken them out in our children's names to help them establish a credit score before they became adults.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
We have followed your principles for years, so I was shocked that he did this without talking to me about it. How should I handle this situation? This feels like there's a tinge of financial infidelity here. Behind her back opened up credit cards and the kids names.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
It's a trend because of these TikTok videos where they go, hey, parents, here's a life hack for you. Add your kids as authorized users and they can take your credit score when they're 18 and have great credit so they can go get some more debt.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Yeah, there's we have an article here related to this. Parents are gaming their kids credit scores. And it's around the same idea of stories of people who had their parents add them as authorized users. There's some horror stories in there. There's some explanation. But it says many are taking advantage of these tools. A 2019 poll commissioned by. Credit cards dot com. That's perfect.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Eight percent of roughly 1500 American parents surveyed said that at least one of their minor children had a credit card, presumably through authorized usership because kids under 18 can't get their own card. And TransUnion data showed that nearly 700,000 22 to 24 year olds had authorized user accounts.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
So and here's the thing. I don't think these are terrible people. They're just well-meaning parents who have fallen for the system who go, well, this is the path. They got to have the credit score because otherwise, how are they going to rent an apartment and how are they going to travel? And they can't book airlines with that. And I'm going, have you ever tried a different route?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
You don't need to do all this gyration to live your financial life.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
It is absolutely bonkers. And I cover this in my book, Breaking Free from Broke. I have a whole chapter on credit scores, a whole chapter on credit cards, and I unpack how to live life outside of the system. And it's not as complicated or as difficult as people would have you believe.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
In fact, it's way more peaceful. It's way more simple. I don't have 16 cards to manage to try to get the rotating cash back rewards. I have a debit card and I use it and it has my money on it. And when that money's gone, it is gone.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
So here's a, here's a wild concept. What if as a parent, you taught your kids how to manage money instead of managing debt? That's all the credit score is, is how well you've managed debt. Yeah. Doesn't reflect how much money you have in the bank. Doesn't reflect your income. It just reflects your relationship with the lender. And so that's how I'm aiming with my kid.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
We'll help you take the right next step, and we'll try to make it entertaining, too, because, you know, life's too short.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I'm going, they're going to look at people with credit scores and credit cards going, why are they doing all that work, Dad? And I'm like, I don't know, America, it's crazy. Lost our minds.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
And don't say you follow our principles for years while you still clearly have credit cards. You don't get to pick and choose. This isn't a buffet.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
So the math doesn't matter that much because you've just knocked out all the debts but the last credit card. Yeah. In this scenario.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
And knock the next debt down to probably around six grand.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
You'd have almost six grand to throw at the 10K debt. So you'd be down to about $4,000 left. So the 18% interest, the way you're going to attack this thing, it's not going to amount to much.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
You throw $1,000 a month at this thing, it's gone in four months.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
And using that refund for good instead of a vacation because you deserved it.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Hey, you're still here? What are you doing? You do know that the rest of today's show is playing right now over on the Ramsey Network app, right? All you got to do to finish the episode is search Ramsey Network in the App Store, Google Play Store, or just click the link in the show notes to download the app for free. Yep, you heard me right, for free.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Then right there on the home screen, you can watch the rest of today's show. Bada bing, bada boom. All right, I'm getting out of here. Enjoy. We'll see you on the app.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
The world is heavy, and we're out here just making light of it all and showing you a path forward, some hope. So Jeremy's going to kick us off across the border in Ottawa, Canada. What's going on, Jeremy?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Welcome back to The Ramsey Show. I'm George Camel, joined by Rachel Cruz. If you want to check out some other shows that we produce, you can check out the George Camel YouTube channel and, of course, The Rachel Cruz Show on YouTube and podcast. And it's all on the Ramsey Network app if you want to check that out as well. All right, let's go to Noel in El Paso, Texas. Noel, did I get that right?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
You did. Okay, wonderful. How are you doing? I'm doing all right. Taking it one day at a time, best as I can. How can we help today? What's going on?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Sorry to hear that. Well, lay this out for us. How much do you make and how much debt do you have?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
That's right, my friend. How can we help?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Yes. Good. And you owe $26,000. Correct. I like where this is going. Do you see where this is going?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Explain to me why you need this truck when you're on the verge of bankruptcy.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I just checked Google. They make $20,000 trucks.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
And you're telling me there's no $25,000 truck that can tow that amount?
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
I'm okay with that. You're on the verge of bankruptcy. You just told us. You got here because you were unwilling to have delayed gratification, sacrifices weren't made, and you made some poor financial decisions. And this is the one on the list that you can undo if you're willing to drive a 15-year-old truck for a season so that you can avoid bankruptcy.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
So you would have an extra $600 a month to go toward your debt.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Well, everybody tells us we're young. How old are you? um you're 23 so the high school sweetheart situation and you're like all right we kind of have our bearings we're we're out of school at this point working full-time yes we're both working full-time okay and you want to propose in the next 6 to 12 months yes i was thinking within the next next year okay what's your question scott
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Who's everybody? Everybody's broke.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
I don't know who everybody, I mean, it's rare.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
I've never met a 23-year-old who's about to get married who's like, yeah, we're ready to buy a house, buy a ring, get the wedding, and do it all in cash. Here's what most people do. They go, we'll finance it, and we'll start our marriage off in crippling debt and hope for the best. Yeah. That's normal.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And so I want you to be weird, Scott, and that means, hey, maybe a newlywed couple can just rent for a year or two or three, get their bearings underneath them, and get a good down payment under their feet before going, well, we're married, got to have a nice house, got to have a nice car.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
So I would focus on one thing at a time. Next up is the ring. We're going to do a reasonable ring, one month salary max. I don't care how wonderful she is. It's not about the ring she deserves. It's about the one you can afford. Next, let's make sure we can cash flow this wedding between family and ourselves. Next, let's talk about the honeymoon.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
All right, I'm going to pay for a reasonable honeymoon. Next, we can talk about emergency funds and down payments and all that good stuff. So hang on the line. I'm going to send you Financial Peace University. This is the roadmap for any newlywed couple. If you guys get aligned on this, it will bode very well for the success of your future marriage.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
One thing at a time. That's it. Very simple. So we're such in a rush at 23. Yeah. Wow. Got a lot of life ahead of him. As can Scott. He's much older. So much older.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
a rehearsal this morning and man, the stuff we have planned for how to choose exact mutual funds in your plan so that you can invest with confidence.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
We're getting a lot of questions about this and we're going to just lay it all out in a way where you leave so much more confident about your whole investing plan. We're going to take it all and just make it simple. There's so much noise out there and we're just going to go, here's the 17 things you need to know and nothing else. And so it's going to be a really good time. Looking forward to it.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Tickets $199. That's a good deal for five hours worth of coaching from Dave Ramsey himself. And we're taking your questions as well. So you can email those in if you get your tickets, ramseysolutions.com slash events, or click the link in the show notes if you're on podcast or YouTube. Don't miss it. We're not doing this again this year. That's right.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
I saw you took a sourdough class. I feel like now you're an expert.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Well, it's much like investing. Well, I signed up for the sourdough class. But you got to do it the right way and you got to have patience. That's right.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Okay, okay. So you're in baby step three. $5,000 feels too tight for me for a fully funded emergency fund, so I would take those few extra $100 and start stashing it on top of your $5,000 until you have closer to $10,000 or $15,000, depending on what your monthly expenses are. The bigger question is, sorry if I missed this, is your entire schooling cash flowed from here on out?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Okay, that's great news. So there's no fear we're going to have to come out of pocket for school.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Then you're in a really good spot. You're cash flowing school. You're going to be going from making, you're going to double your income by December of 2026, which gives me a great joy. And then you'll be moving on to investing once you have that fully funded emergency fund, which will likely happen before you finish school.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And so I think we want to get you investing, but you got to get that fully funded emergency fund because right now it could take one or two emergencies to wipe out that entire savings account. Sure. Do you know your monthly expenses off the top of your head?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Is the agreement that this is until you get through school or longer than that?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
I keep it simple. Just stack it up, because as soon as you graduate, there's probably going to be more expenses coming your way as you start out on your own, your own adult life. Yeah.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Of course. Who could get rid of a horse? I can't imagine.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Without a doubt. Can you negotiate a relocation bonus to cover those expenses?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Well, a lot of people just, you got to know where you are to know where you're going. And it'll give you a really clear next step to take in the Ramsey plan with tools, resources, articles, you name it. And so this is a great way to just jump in, send this link to a friend who isn't aware of us. And I got to say, Ken, I really appreciated the Joey Tribbiani. How you doing? Yeah.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
At the very beginning. See what I did? Yeah, you really sold it.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Go find out. Click the link in the show notes.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Yeah, it's a little more aggressive and probably has more expletives, but you know. Give me a PG version of how you doing Bostonian. What's up, my guy? Okay. Something like that.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Yeah, that's more fun.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Rob, you are rearranging the chairs on the Titanic, my friend. This is not going to be the solution you're looking for. And I know you can crunch the numbers and see how much you're paying in interest, and that should make you angry. But here's the deal.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Okay. Well, just let me free you of all of this. There's no hypocrites here. There's no Ramsey Bible that you've sinned against. Prenups are a very nuanced thing. And usually what we say is unless there's a massive gap in net worth and yours, it truly is not like a, oh my gosh, you're bringing millions and millions in. You have a family business. There's massive generational wealth here.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
We're talking about someone who prepared for retirement and someone who's just getting started. And it sounds like he's on the same page. You're on the same plan now. So you're on the edge of like, is this even necessary? But I understand with your backstory that you're just going, hey, I just can't be left out in a lurch, you know, unable to retire if something were to happen.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
So I think you both need to go to counseling and deal with the underlying trust and communication issues. But there's no hypocrites here. You did nothing wrong, quote unquote. So let me release you of that, that no one's going to, quote, win the argument.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
No, it's just most people don't need one. And the guy goes, well, I'll make $40,000 and she makes $20,000. No, dude, you don't need a prenup. We're talking about protecting your stuff from the crazy family around you, not from each other.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
The people that actually get out of debt, they don't just move around their debts and get new debts to cover the old debts and pay off the big debt. They just do the debt snowball and get so frustrated and so angry that they're willing to work as much as it takes to get rid of the next debt and get rid of the next debt, freeing up the next payment.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And you're going to lose all of that momentum trying to tackle this giant mountain of the biggest debts with the biggest interest rate. So the question is, what are you willing to do and sacrifice to use your savings and future income to get out of this? Are there stuff we can sell on this $250K? Are there cars involved?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
But I appreciate that. No, I mean, it's well coiffed. I guess in the YouTube world, they can't grow facial hair. So I'll take that. Is that right?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And you got a good 5 o'clock shadow happening.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
That's the kind of friendship we have, folks.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Oh, my goodness. Why would they take this on? Why couldn't you just go through the hospital to pay them and be in debt to the hospital where you could actually negotiate?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Well, you've got no time to play video games. You're going to have four jobs for the next three years.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
No, no, listen.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Now, you kept saying, I'm going to start the debt snowball. Where is your wife in all of this?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Your dad decided to take on that credit card debt in his own name. That's on him. And so he cannot guilt you or manipulate you into doing anything. So have a written agreement of how we're going to pay this back, and it's going to have nothing to do with your living arrangements. He's holding you in a prison.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Is she a willing participant in this process?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Then he needs a new job. And that's going to be a new chapter for you guys. I wish we could call him right now.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Or is she like, hey, knock yourself out trying to get rid of this debt. I'm going to go over here buying stuff.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
are going to leave and cleave. We've got plans tonight. We're going to Home Depot, we're buying some boxes, and we're packing. And by the way, we're not asking permission. Are you willing to lead, sir?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Probably personal injury would be on like the park benches, buses, you know. Real Better Call Saul vibe.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
I think we would. And that's the vibe we put off. That's right.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Yeah, her last marriage was not crushed because of her second job. It was crushed because of a lot of other reasons and a lack of unity. And what this shows me is that you are actually creating unity because both of you have skin in the game and you're walking through this together.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And with three kids, is your wife working outside the home or is she home with the kiddos? She's at home. She works from home. Okay.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Yeah, there's not enough pluses on this new one to take it. Which way were you leaning?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Construction business is an expensive business to get into. That's right. You need a lot of cash.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Pensions over time have way underperformed the market. And so I know it sounds alluring because it's like, well, it's guaranteed income, but you can do better investing on your own in any company retirement plan. So I would not make the decision just for the pension alone. That's a fine byproduct if they have it, but I would not make your decision based on that.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And then financially, are you guys in a good spot? Do you have any debt? Do you have an emergency fund?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And how much do you have in savings? For our personal savings or the... All liquid cash you have access to, including the emergency fund.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Okay. We've got some work to do here. If you're going to follow the Ramsey plan, we've got to knock out this car loan before we're working on that emergency fund. But you also told me you have a third baby on the way? Yes, sir. So let's pause and stack up cash. But as soon as baby and mommy are home healthy, let's push play and dump that savings into the car if you do decide to keep it.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
You may decide to sell it, but your income supports having a $30,000 car, but not a $30,000 car loan. That's a lot.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
People think it's like a Willy Wonka golden ticket.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
I have a whole chapter on student loans, and I quote your very, is it the only way? Is it the best way? Because it's a trap so many kids fall into because they think, well, this is the only path. If I don't go to college, I'm going to be destitute in my little town and never make anything for myself.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And the truth is, I see more people who took on crippling student loan debt for a degree they didn't care about, that had no real marketplace value, they had no passion in, and now they're left picking up the pieces, working a job because they have to, to make the payment. This is the insanity. This is the loop.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
That's why people are going to the trades. They're starting small businesses because they're going, I don't want to be like that guy. $150,000 in student loan debt, nothing to show for it. That's crazy. Do you floss regularly, George? Three times a day. Do you? Yeah, probably too much. I want to learn more about that. Very offensive. My dentist asked, do you floss?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
People ask me all the time, George, what's your number one money-saving hack? I'm glad you asked. Nothing makes me happier than helping another frugal friend. So here's the hack. Get on a budget. Seriously. How are you supposed to save money if you don't know how much you're spending in the first place? And that's what makes the EveryDollar budgeting app a game changer.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
With EveryDollar, you'll get a clear picture of your spending. And from there, it's easy to see where you can get more intentional, cut back, and save more money. So how much money are we talking here? Well, the average EveryDollar budgeter frees up $395 in their first budget. That's the hack. And if you ask me, I think you're way above average and you'll save even more.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
So what are you doing still listening to me? Go download the EveryDollar app for free and start saving more money right now.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Today's question comes from Kyle in Colorado. I'm 30 years old and earn around $200,000 per year. I owe $255,000 on my house and $50,000 on my vehicle. I max out my 401k every year with a current balance of $150,000. I also have a Robinhood account with roughly $15,000 in it and invest $500 there every month. Cash on hand is around $20,000.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
I'm wondering if it's better to invest in the stock market or pay off my truck and home before considering any other investments outside of my 401k and monthly contributions to Robinhood. Well, he's almost there. Yeah, at least he's questioning his decisions. That's a good start to wonder if you're even doing it the right way. So here's the truth, Kyle. You can do what you want.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
You have an amazing salary. You can out-earn your stupidity for a long time and afford that payment for as long as you want, my friend. But if I'm in your shoes, I'm following the Ramsey plan. I'm going to get rid of that vehicle ASAP. It's not too much for your income. So if you want to keep it and pay it off aggressively, my guess is your Robinhood account of $15,000 is not retirement.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
So you could cash that out along with your $20,000 on hand, and that'll get your loan down to about $15,000. And making $200,000, that thing's done within, what, 90 days or less. Your vehicle loan is gone. Now, regarding the house, would I put extra on the house? I would beyond 15% of your income. And so if you're talking about $200,000, that means $30,000 a year going into retirement accounts.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
That means you could max out a Roth 401k. You could do a backdoor Roth IRA, and that would get you to that $30k. And then you can move on from there to paying off the house with any extra money beyond that, which you should have plenty of when you free up that $50,000 vehicle loan payment. Goodness, that's got to be probably an $800, $900 payment right there, if not more. Yep.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
So that'll free you up to start throwing that on the mortgage and get you on track for the baby steps.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Yeah, he's probably taking home $13,000, $14,000 a month. And so if you just get on a real bare-bones budget, you could knock that vehicle out in probably two months if you got serious. I love that. I like this plan.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Now, what they've done is gross to put that on you. You are not the solution to their financial mess. And they're just in a real pickle and looking at their pile of debts going, well, if the kids didn't cause all of this harm to us, we would be in a very different place. The truth is they have been reckless for a long time with their money.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
They didn't have a conversation about what was going to happen with college and student loans. They decided to take on all of the debt in their name. only with this Parent PLUS loan with crazy high interest. And now they want to pin it on you when they're in a bind. I'm not buying it. And I'm guessing the relationship with your parents has not been great for a long time.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
It's been transactional and very well. Look at what we did for you. And this is what you have to do for us. And I'm also guessing there is a lot more debt laying around here than just these Parent PLUS loans.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Yeah, bankruptcy does not discharge student loans.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
I just want to know what the monthly... $400 a month you're paying towards that. These are for iPhones? For that one is, yeah. I think we can sell some iPhones. We can rock some iPhone 8s. Right?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Exactly. Do you know anything about their financial picture?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
That's usually when you go to blame everyone else is when you're backed into a corner like this. And so the best thing you can do is be kind, be firm, be respectful, set the boundary and let them know, hey, listen, I'm not in a position to pay this back. We never had this conversation. There's nothing in writing saying that we were going to be obligated to pay this debt.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
You guys decided this is how we're going to help and quote pay for school. And therefore, it's your responsibility. And if you're in a position to help, if you're going, hey, we got the money sitting in savings and we want to morally do this, that's fine. But you have no legal responsibility to pay this back.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And I wouldn't let them guilt trip you into saying, well, if mom and dad are going to be homeless unless you foot the bill, I'm not buying that either.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Well, I want to release you from the selfishness. Let's find option C, where it's not save for a fictitious family. I don't know what we're saving for, or save for me to buy a nice car. What's going on financially with you? Do you have a bunch of money laying around?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And you got an emergency fund?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
You said $2,200. Yeah. Yeah, it's more than two payments. That's a whole lot of money to me.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Okay, but I like money to have a goal, and that is way beyond a six-month emergency fund for you. And so what would be your next goal? Are you saying, hey, I don't really have one? I have a paid-for house. Are you investing 15% or more of your income at this point?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Okay, you sound like you are the eternal saver, and so it might be time to upgrade some things in your life reasonably. We're paying cash. We're not going to have this be a large portion of our world. But if you want to buy a few nice toys, go for it. Yeah, but he's in such a position that I'm not worried about him having money for a future family. Yeah, you're fine.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
It's a line item in the budget. A family doesn't show up and you go, I need $100,000. It's just a line item. That's true. For a ring and then for a wedding. You'll have the savings ready to go, my friend. I'd get out there. I'd get out of the house and start meeting some people and maybe find a nice lady.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Well, you've called the right show and the wrong show. You're not going to like what I tell you to do, and you probably won't do it. I would tell you to stop day trading immediately and focus on long-term wealth building through your normal day job income. Do you have a normal day job?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
So you're making about $85,000 a year if you're doing that 40 hours a week. You said you're doing 48 hours a week, so it's probably a little more than that? Correct, yeah. Okay. And what makes you go, I need more? Clearly you're enjoying doing this, and you haven't been burned by it yet.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Okay. Let me tell you that.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Okay. So here's the stat, and you fell perfectly into it. 97% of day traders who persisted for more than 300 days lost money. And many people go borrow money to make trades, going into debt to leverage, right? And we've taken some gut-wrenching calls on the Ramsey Show from people who have lost 30 grand, 150 grand, even $300,000 by day trading. And it breaks my heart. And here's the problem.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
It's easy to feel like you're the exception when you're winning. Correct. Correct. And it's easy to go, well, it's always going to be. I'm good at this. It's just gambling at the end of the day. And if you do your research, it's just researched gambling, which still has a lot of risk. And I'm with Dave Ramsey on this. I just hate losing money.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And so the easiest way to avoid that is to not gamble it. And so what I do is I invest into retirement plans. If I want to invest outside of that, I would invest into an index fund and a taxable brokerage account and call it a day. And so I would focus on... Yeah, because I don't... Here's the problem. You're spending hours and hours a week staring at these screens trying to time the market.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And instead, the better thing to do is instead of timing the market, is just have time in the market through compound growth and a long-term strategy. This is the tortoise beats the hare. You've heard that?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Yeah, and I don't think it's worth the mental calories. I don't think it's worth the stress, the anxiety, the risk. Our plan is all about peace. You've heard it, financial peace. And so can I tell you how many times I've thought about my investments over the last six months? Zero. I go, oh, market's down. All right, I'm going to go get a coffee.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
I just don't care because I'm investing for the long term. And if you're investing for a shorter term purchase, like real estate, just park it in an index fund, let it ride. That's what Dave does. And when he finds a good piece of property, he'll cash out enough to buy the property. But I would never encourage anyone to do single stocks or even a single crypto coin.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And day trading falls squarely in that with even more. Because now it's a whole career you can make out of it of saying I'm a day trader. And so, man, you're too smart to do this stuff.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Yeah, behavior is what got us here, not interest rates, not math. And so I know the interest rate is the easiest thing to get mad at instead of looking in the mirror and being mad at Rob. And, man, you are dealt some cards that nobody should be dealt with. But here we are on the other side, and the only way out is through it. And that's the debt snowball method. So hang on the line.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Just see if anyone starts filming me saying, I saw George at a crypto bar. Yeah.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Yeah, so essentially you want to gift your children money to help set them up for success and wealth down the road. And there's a lot of ways to do that. How old are the children?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Wonderful. And they're all working full time, gainfully employed?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
That's great. Well, I like the idea of sort of a match because that encourages them to actually do the behavior instead of you doing it for them. But there's a lot of ways to do this. If it's not wealth, it might be, hey, we wanted to gift you some down payment money and it has to go toward the house. And so there's a lot of ways you could do that. I love the idea of just contributing to that.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
I don't know, if you just wrote them a check for $3,000, would you trust that they'd actually go invest that into an IRA? That's the question.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Okay. I would demand proof because I'm that guy. I'd be like, all right, here's the deal. I'm going to give this to you. I need proof in one week that you've actually deposited this money or else I rescind it. So it's okay to give with strings attached. Because they're going to benefit from it. And here's what you should do. Sit down with an investment calculator.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Show them what this money will turn into when they retire to 63. And they're going to go, oh, my gosh, Mom, you didn't give me $3,000. You just gave me $150,000. That's good. That'll get them investing.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
I'm going to send you guys my book, Breaking Free from Broke, along with Financial Peace University. You and your wife sit down, watch all the lessons, listen to the audio book, read the book, get fired up, get five jobs. And if your marriage isn't better at the end of this thing, then we've done our jobs wrong. Because I'm telling you, that's the kind of unity that the debt snowball creates.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And I've been crunching the numbers, Sean, and based on just some quick research, entry-level PA in your area probably make a 90 grand, which is what you said you'd make just getting off the road. Now, long-term, you could make closer to 110, 130, but this is not a significant jump to go 125 grand into debt or to even cash flow. Well, he's actually going to go backwards from where he is now.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Exactly. So I would, to Ken's point, be very patient about this and just stack up cash and live like you're a broke college student right now. Because if you can put away, you know, 40 grand a year, in two years, this thing's cash flowed. And then two years from that, you're a PA.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
That's true. And I also saw in-state costs. For example, University of Utah, in-state costs should be closer to like $82,000 for this program. So where was the $125,000? Was that a specific university you were wanting to go to?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Have you checked all around? Have you went to the most affordable options and went, will you take my credits? Can I get into this program? I feel like there's some more homework to be done. Yeah, I've checked quite...
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
And you couldn't clap out of them?
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
I just want to say, if we can save $40,000 just by doing some homework and research, I'd rather do that than just say yes to the first one that takes me and use student loan debt to do it.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
It's so hard. And I know a lot of people, not this particular situation, but a lot of people are going through some version of this where they're trying to be a good, nice person. It's turned into this enabling. They have to have the hard boundary conversation and it's a close person in their life. How do you even begin that?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
So good. Well, Tammy, thanks for the call. We're wishing the best for you. Hope this ends up with a good situation for you and your granddaughter. This is The Ramsey Show. We'll be right back.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Lovely. And are you investing right now?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
What have you been investing in for the past six years?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Okay. Are you working full-time?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Nice. That's amazing. Okay, and how much are you investing as a percentage of your gross household income?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Oh, my goodness. Okay. So you're going to be a multimillionaire regardless of this conversation that happens next. Can we agree on that?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Cool. How much do you make a year?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Um, 80 to 90. Oh my goodness, dude, you're crushing it. So you're, we're talking, you're investing like 18,000 a year. Yeah. And you've got a 401k through your employer?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Okay. So what happens after you max that out?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Okay, great. So let's talk about index funds versus mutual funds. And for the listener's sake, if they're like, what are these goober nerds talking about? Index funds are basically passively managed mutual funds. So still a giant group of stocks, but it's tracking an index, basically a set list of companies.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Whereas the mutual funds that are actively managed has an investment manager that is selecting the funds that make the list.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
So index, there's no one running the show. It's just a set list.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
The S&P 500. There's 500 companies, the largest U.S. companies.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
It's the autonomous vehicle of the investing world.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Is that a good summary, Matt? Because you know about this stuff just as much as we do.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
There's an investment manager. There's people to pay because this is their job to run these.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
They do have fees. The perks of the index funds, as you know, diversification, which mutual funds have, low expense ratios, which index funds have, and predictability. And every investing rose has its thorn. For starters, your index funds won't beat the market because it represents the market. Does that make sense? So you'll settle for the average of the market. You can never beat it.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
The goal of the mutual fund is that that investment manager is picking, is hand selecting funds based on tons and tons of research that they're doing every day, day in and day out in order to attempt to beat it. So let's say the market does 10%. Well, the goal of the mutual fund is to do 12% or 14%. Now, as we know, they won't hit that goal every year. We don't have a crystal ball.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
No, that's actually factually incorrect. Morningstar did this article, and they said nearly 57% of mutual funds, these active U.S. equity funds, they beat the average index fund peer over the 12 months through June 2023. So that means six out of ten mutual funds beat the index.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Over a 12-month period. They looked at, here's what mutual funds did, here's what the peer index fund did. Six out of ten beat the index fund.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
You can look at decades, and it's going to change depending on the decade you look at. And the truth is there's going to be mutual funds that don't beat the index, and there's going to be years the index beats the mutual funds. And so the goal here is to slightly beat the copycat of the stock market, which is the index fund. And so the index funds also do have a fee.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
You'll see it listed as a 12B1 fee. And so that kind of makes up for the fact that the mutual fund fees there. So it's not exactly free. And here's the thing. We're not anti-index funds. There's a time and place. In fact, Dave Ramsey invests in index funds outside of retirement. You have that taxable brokerage account, right?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Dave would say index funds are the smart play there because of the low turnover. They're not moving things around as much, which makes the fees less. But in retirement, you're not having to pay those fees because you're not worried about turnover because this is a long-term play, and therefore he invests in mutual funds for his retirement accounts, index funds outside of retirement.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
So there's a time and place for both.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Well, there's a lot of pieces of it, including rate of return, the expense ratio, what the fund is made up of, who the fund manager is, have they switched the investment team recently. If it's been doing great for 30 years and all of a sudden they switch the crew, well, that's something you want to look out for because things might change.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
And we actually covered this in depth, Matt, in our Investing Essentials live stream. And it's not currently available, but just for you, I'm going to send you a link to watch that for free. How's that sound?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Sure. Over time, you know, things may change, but we're looking for is that longer term track record. And so we're not going to choose a fund that's been around for a year. We prefer the one that has a track record of 10 or 15 that's had the same team with the same record of success.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Matt, here's the deal. We can argue all day and I can tell you like this, but you can be a multimillionaire just from your index funds. You don't have to ever touch a mutual fund if you don't want or going to still be friends. You're doing great. The key is your savings rate. That's the key. That's what's holding people back from having money. It's not the discussion of index versus mutual.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
That's for another time. But for everyone else listening, just freaking invest. Be like Matt. At 21 years old, invest $18,000 a year. You're going to have money in retirement regardless of where you put it.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
What's getting you through every month if you're going underwater?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
What kind of debt is this? What is this debt, man? Can you break down the 160?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
This is The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. This hour, open phones at 888-825-5225. While you're listening or watching this show, do us a quick favor. Hit the subscribe button. Hit the follow button. Leave a review. Text a link to a friend. Let them know about the show or your favorite clip, a highlight, anything that can get the word out.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Because you guys truly are the best marketing tool we have to keep spreading hope worldwide. in a world filled with a lot of noise and distractions and hopelessness. And so we try to displace all of that with shows like this, and we appreciate all of your help getting the word out. Lester is up next in Dallas, Texas. How can we help you, Lester?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Was there like a spit shake on, hey, here's how much we're going to spend, here's what the budget says, stick to it?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
But are you guys only using debit cards or are there some credit cards still being used?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
The other side of this, Lester, when it comes to the tactical, is that you should be sitting down with her before the month begins going, hey, what's happening this month? A birthday should not be a surprise. We know when the birthdays are happening. Christmas happens on December 25th every year. I check my calendar, still happening.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
And so you kind of know what's coming up and you adjust the budget accordingly. So if we need to add a gift line item in the budget, let's do that. If we need to add a miscellaneous sort of little catch-all of 50 bucks or 100 bucks, let's do that so it doesn't derail our plans.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
And the other thing is we check the budget before we make the purchase. So if we go to the gift and we go, oh, gosh, I wish we're going to have to do a handmade gift. Let's make a little basket. Let's get some roses from the garden.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
George made me a basket once. John still has it.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
So Lester, that's where we come up with a solution together and have the conversation. But there is a part of this that's on her as far as accountability going, you need to check the budget before you make the purchase. That's how I do it. That's how you do it. We can't just hope that we lined up with the budget perfectly. We use that as our guiding kind of North Star.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
And I think when you do that, you start to add in these line items. It starts to be less and less of a surprise. You get to kind of align it a little more. And on top of that, What is your next goal? What is the thing you guys both agree to is the next thing that we're saving up for?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
So even more in baby step two, there's even more intention, intentional sacrifice and intensity here where it's going. We can't afford to buy people gifts. We got to put our own mask on first. We're broke. And think about how many gifts we can buy people once we're debt-free with an emergency fund, we're preparing for our future, then we can look up for opportunities to give and be generous.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
And so I think that's part of it is you need to have a plan together going, we're going to pay off $700 a month of debt, and here's how we're going to do it. versus we really need to save more, really got to get rid of this debt. We need to get more specific so we can actually hit the target.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
So this little plan, this one year thing we're after, this is just part of reverse engineering the picture you painted her. So instead of we got to get on a budget, you got to spend less, it becomes, hey, remember, that's what we're aiming for. This is a little blip on that timeline of intentionality and sacrifice. Are you with me? Yeah. And I hope that helps.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Auto loan. You have another auto loan?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
We're going to gift you every dollar premium, Lester. What are you using right now for a budget when you guys sit down together?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Yeah, you show a spender an Excel sheet, they implode inside.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
So we're going to gift you every dollar premium. It's much easier to look at, easier to use. You both log in. You both have accountability. So while she's out, she can actually check the budget versus Lester's spreadsheet at home. So hope that helps, Lester. We're wishing you the best as you attack this debt. That puts this hour of The Ramsey Show in the books.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Thank you to Dr. John Deloney, all the folks in the booth keeping the show afloat, and you, America. We'll be back before you know it.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Okay. So you got 51K on the car, nine credit cards that are 55K, and then the other, what is that, another 50 or 60 is in personal loans?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm Ramsey personality, George Campbell, joined by my best friend and best-selling author, Dr. John Deloney. He's in the house. He's ready to help. We both are.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
So give us a call, and let's talk about your life and your money and help you take the right next step, regardless of what's going on in your life. Joseph kicks us off this hour in Los Angeles. Joseph, welcome to the show.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
We're doing well. How are you?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Okay. What, where did all this money go? What have you been spending on? So we're talking a hundred K and just spending.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
I fell asleep about three seconds into that, John.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
I was bored to death. No, I'm just kidding. That was a really good answer. And I have similar things to say, but I'll add to that and tell you this. I grew up in a very evangelical household. My mom can't wait for Jesus to come back, right? She sang the songs. She watched Left Behind. We were all in.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
And so my thing is always like Jesus could come back tomorrow and that could waste all of the effort I made trying to save up this retirement account. But also, what if it's not tomorrow and I still have to feed my family? And I kind of feel the same way about the crypto. Like, yes, the dollar could get devalued. I don't think it's going to collapse.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
If that happened, we're not worried about crypto. Like John said, we're worried about feeding, you know, trading for gas and ammo at that point. And so to your point, I'm going to invest 15% into mutual funds in the stock market because for decades and decades and decades, I know there's a large chance of a 10% return.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
With crypto, I'm losing sleep because 24-7 that number is moving and the goalpost is moving and now it's down 50%, but now it's up 1,000%. And what if I had just gotten in and instead I just want to live with peace? I want to sleep well at night. I got to go to work in the morning. And so for that reason, it's fine to keep those friends around.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
They're probably good guys, well-meaning, who want to take care of their families too. But it's not a peaceful way to live. And so for that reason, it's fine to put fun money in Bitcoin, but I'm also not going to do it under the guise of my paranoia apocalyptic plan, that I'm going to be the one to survive it if I put money in crypto.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Yeah. And as much debt as we have, we have a lot of friends out there, John. And so they go, hey, that's my friend. You don't mess with them because they're protecting us. It's a mess.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
You get into geopolitics and economics, and Joseph, I'm not smart enough to answer that question on that end, but I just tell you what I do, what John does, and that's investing in our 401ks and IRAs, paying off our houses, and sleeping well at night, not looking at our investments 24-7.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Let's start there. Joseph, thank you for a great conversation, man. Hope it helped. Thank you.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
You too, man. This is The Ramsey Show. We'll be right back. 888-825-5225.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Listen, I know a lot of you would rather watch paint dry in slow motion than file your taxes. But thankfully, you don't have to dread filing when you've got Ramsey Smart Tax. It comes packed with everything you need to file online before the big deadline. That means all major federal forms and deductions are covered with no hidden fees.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Plus, with Ramsey Smart Tax, you can save up to 70% compared to other tax software out there. It's a no-brainer. Just go to ramseysolutions.com slash smart tax and see how simple tax filing can be. That's ramseysolutions.com slash smart tax. This is The Ramsey Show. I'm George Campbell, joined by Dr. John Bologna. We're taking your calls at 888-825-5225. Danielle joins us up next in Milwaukee.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Danielle, welcome to The Ramsey Show.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Absolutely. How can John and I help?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
That's a weird position to be in. And while you chose to be there, he had a part in putting you there. And you have a choice also to get out of this and to say, hey, Dad, listen, I can't cover your phone bill anymore. What would happen if that were the case? What would the conversation be like?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Would you call this relationship transactional at this point?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Well, it's not about his character, but I'm saying the relationship right now is I pay the bill. He doesn't really want to see me. He doesn't want much to do with me, but please keep paying my phone bill and thank you.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Yeah. Here's the spark notes. If a cell phone bill is propping up the relationship and this is one Jenga piece that knocks the whole thing down, there was never a relationship there. And that's the hardest, scariest part to face. Is that whatever was, I know he's a good guy, he was a great dad, but it's changed. The relationship's changed.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
And I think that's the hardest part to grieve is the guy he was and the guy he is now.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
What is his portion of the cell phone bill? I'm just curious. What's the financial amount?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
So if it was on him to cover 70 bucks from now on, do you think he could do it?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Yeah. I'm so sorry, Daniel. That is not a fun thing to deal with. The theme so far of the show, John, has been you cannot change people. No. No matter what you want to give them or cover for them, it's not going to make the relationship better and it's not going to solve their problems.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
More of your calls coming up. 888-825-5225. This is The Ramsey Show.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Welcome back to The Ramsey Show. I'm George Camel. My co-host today is Dr. John Deloney. Open phones at 888-825-5225. Our question of the day is brought to you by YRefi. If you're in default with private student loans, contact YRefi. Obviously, we don't encourage letting your loans get into default. We teach responsibility.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
But these amounts have some of you really struggling out there, and this is a path forward. Wi-Fi was created for people in your situation. So go to YRefi.com slash Ramsey. That's Y-R-E-F-Y.com slash Ramsey. May not be available in all states.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Honestly, we are hiring Scott. So we have a lot of sales roles open at RamseySolutions.com slash careers. But that's for another day. To your question. Truthfully, here's my take. John may have a completely different take. I feel like we need Scott in the car industry. We need people with integrity who are leading people to the right decision who aren't scumburgers.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
And it's easy to generalize an entire industry as this is a...
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
gross industry but i think what scott's doing here is noble it's moral there's no issues with it if you are in the lending department and it eats away at your soul you need to get out of there but as a as the salesperson it's not your job to say hey here's the lending part here's the financing part they're going to go to another guy to deal with the financing you're there to say hey what is your budget
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Here's a car that is in your budget. And then if they have questions along the way, you can steer them to go, hey, this one might be better for you guys. I want you guys to walk away from here debt-free. There's nothing wrong with that as a salesperson. And, yeah, you might not get as many commissions as going, you should get the car that's way too expensive because it has this sweet feature.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
I think we need people with integrity steering people toward that.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
So don't feel the personal responsibility of that person's decision to buy a car they can't afford.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
He's a problem solver. That's right. That's the skill set.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
So if you can be a change agent here, Scott, and stay in it and make peace with it and not eat away at your soul, do it and keep helping people. But if you can't, like John's saying, then you've got to make the move out of here. And we both believe you have the skill set to move into any other industry and know that the other industry, they probably also sell stuff that someone can finance. Right.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
It's so much easier to stand out in an industry filled with scum.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Well, and especially in this industry, cars are amoral. Now, if this was a product that is inherently gross, if he's working for a payday or a title pawn, I'd say, all right, get out of there. That whole place is scummy.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
It's a car. It has utility. So this was the choose your own adventure, Scott. We're not going to tell you to do one thing or the other, but you need to follow your conscience and your values. And the fact that you wrote in maybe tells me it might be time for a different career shift. Who knows?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Or you come here, work for Ramsey. And thanks for reading the book, by the way. I didn't know I was that convincing, John. That's amazing.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Name one. I got Venmo. Oh, that's right.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
And I said, John, I'm not your personal assistant. I'd be happy to do that for my hourly rate, which you can't afford. I can't afford. You can't afford that.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
But I would do it as a friend.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Let's take it one day at a time, John. Let's not get ahead of ourselves. Welcome, 21st century. Here I come. This is The Ramsey Show.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
george that would that would freak me out that would scare me to death yeah and people think it's a life sentence they think their their dna inherently has this in them where they go well i'm just gonna i'm a broke person john yeah you can change you can just snap your fingers and go i don't want to live like this i want to change my family tree i don't have to retire broke and so this quiz will help you start to take the next step figure out where you're really at if you and if you just look at man basic demographic data
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
It's about the same stat that are living paycheck to paycheck.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
By 2034, they're going to reduce the benefit by 27%. And it already wasn't that high. It's a slow car crash coming. You've got to be your own financial planner.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
So what do you disagree on with your mother-in-law? What does she want your wife to do? Stay at home.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
So, James, I'm hearing your wife wants to stay home. If she could have it her way, she would stay home? Is that true?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
And then she wants to stay home?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
I want you to reverse engineer y'all's dream that you decide together, and that might mean, okay, here's the math of it. We can't do this right now. Here's why. But if she says, hey, my dream is really I want to stay home, and you want to support that dream, then you go, let's do the budget. What's it going to take? Okay, I need to do this many more music lessons. We need to do this.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
We need to cut our lifestyle by this to get in a financial place in order to do this. So I think she's the wow, you're the how, and you're going, well, we have no way to actually accomplish this. But then there's also the part of you don't want this to happen right now. So this is really, like John said, this is between you and your wife. She wants to stay home. You don't want her to stay home.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Take the mother-in-law out of it.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
And are you doing music lessons full-time? No, mother-in-law does music.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
What are you doing full-time?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Okay. So I think we also need to go, okay, if this is in the future, my wife staying home, we're going to be a one-income family, what changes do I need to make? What education do I need to get? What career moves do I need to make in order to sustain a good life for my family? And that's the part that I think scares you, is this involves you having to change too.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Yeah, there's no shortcuts here. We got to get your income up ASAP. I would not file bankruptcy. You can get out of this, but it's going to take three years of hustle throwing 50 grand at the debt. And that means getting that income up. And man, you're going to have to get creative. You might have to get a roommate or two. Keep living with the parents. Do what you got to do.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Hey, you're still here? What are you doing? You do know that the rest of today's show is playing right now over on the Ramsey Network app, right? All you got to do to finish the episode is search Ramsey Network in the App Store, Google Play Store, or just click the link in the show notes to download the app for free. Yep, you heard me right, for free.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Then right there on the home screen, you can watch the rest of today's show. Bada bing, bada boom. All right, I'm getting out of here. Enjoy. We'll see you on the app.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
But do not throw that chain around you just yet.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. Open phones at 888-825-5225. Tammy's on the line from Tampa, Florida. Tammy, welcome to the show.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
That's called trolling, Tammy. Don't fall for it. So why can't you stop giving her money?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
What's a long time and how much?
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Total, four grand since September.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Is he legally supposed to be paying more than $25 a week? No, that's what the courts awarded him.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
It's not an ex-grandchild. It's still your grandchild.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
And it seems like there's a lack of trust on your part because you don't know what she's doing with this money, and you don't think it's going to the things you want it to go to.
The Ramsey Show
Stop Letting Other People's Problems Ruin Your Finances
Why did you jump to that conclusion? What makes you think you can't crawl out of this?
The Ramsey Show
Money Is a Tool To Create a Life You Love
Yeah, there's kind of like a spectrum, almost a bell curve. If you think about it and you go right is if there's a ton of health issues in the family, the high deductible health plan could be good. Because you'll hit your out-of-pocket max and it's going to be 100% covered. And if there's very little health issues in the family, it could also be good.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Yeah, and there's a lot of belief there. People think there's some sort of like financial DNA that you're born with because of the environment and place and parents, but we're proving it with Sarah that you can break chains.
The Ramsey Show
Money Is a Tool To Create a Life You Love
You might be the first one in your family to become debt-free, to create a better life for your kid, for your kid to go to college debt-free, for you to have a home that you own free and clear, for you to become a millionaire. And it's something you get to choose and it's a daily choice.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And it's one of the hardest patterns to break because of all the shame and guilt from the past and your belief system is so tied up. And you talk about this and know yourself, know your money, the different money classrooms you grew up in. It really shapes you and you have to really try to break all of the bad stuff to get to the good stuff.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And if you're somewhere in between, you might want to go with a traditional plan. Now, I have chosen to go with a high deductible health plan. I love the low premium. You guys are in Baby Steps 456. You can take on a little more risk from the insurance company by having that higher deductible.
The Ramsey Show
Money Is a Tool To Create a Life You Love
You know, we can only cover so much on this show and we kind of go surface level. But in this event, it is, you know, two and a half hours each night taking your questions, deep diving on this and Dave unpacking his actual real estate portfolio, how he analyzes investments. And so it's something he's never talked about on the show here. And people loved it last year. So we're bringing it back.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And I love the fact that you get the health savings account with many of these high deductible health plans. And that's a really cool... Health savings tool, but also kind of a life hack retirement option as well, because you can invest inside of that and it's triple tax advantage. So I'm just a big fan of the high deductible health plan.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Could you get like a slimmer baby seat and solve all of this? i don't know if they make those but i guess i could oh they do i've done my baby c research my friend but anyways let's talk more about this what is that car gonna cost this she wants uh she's looking at a gmc yukon we would buy used not new um how big is your baby man what's that how big is your baby that you need a yukon
The Ramsey Show
Money Is a Tool To Create a Life You Love
But again, it's a very personal decision based on the health of your family.
The Ramsey Show
Money Is a Tool To Create a Life You Love
So either way, we're not going to pay off the house with this lump sum. But you're saying should we take that $80,000 and put it toward the mortgage or toward the car?
The Ramsey Show
Money Is a Tool To Create a Life You Love
Rachel said what I said, just in a nicer way. And America loves her.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Because it was kind of like, well, we might have one. Like, okay, well, might is different than she is pregnant. And so there is an actual timeline now of, all right, nine months from now, we would want a bigger car. So here's my, and this is coming from Mr. Frugality, who was like, I'm going to pay off the house before I upgrade my car. Now, we didn't have a kid then, so it's different.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Got it. And what would be the out-of-pocket max on his plan now for the whole family?
The Ramsey Show
Money Is a Tool To Create a Life You Love
But I'm going, hey, let's cash out the brokerage. We're going to pay some taxes on it. Let's buy her and set a budget, $50,000. We're going to get her a Yukon. Whatever's left, we're going to throw at the house. And then we're going to be gung-ho getting rid of this mortgage. Would that be a fair game plan?
The Ramsey Show
Money Is a Tool To Create a Life You Love
With your income, the house is paid off within a year or two, right?
The Ramsey Show
Money Is a Tool To Create a Life You Love
And you guys are Baby Steps millionaires, so I'm just curious. Are you going to buy new or slightly used?
The Ramsey Show
Money Is a Tool To Create a Life You Love
Certified pre-owned. Lower mileage. Good move. Good move. Good man. Let someone else take that first hit on depreciation. Yeah, you guys are doing it by the book. I'm proud of you guys. There's no wrong answer here, but I would defer to the pregnant woman because I'm scared of them.
The Ramsey Show
Money Is a Tool To Create a Life You Love
You don't want to mess with them, man. I'm just saying.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And this is a very similar situation because my wife wanted the bougie mom SUV and it hurt my soul because I can do math. But life isn't math. She wanted the car. We saved up. We paid cash for it. And she loves it.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And it was her dream. I don't need to make everything my dream.
The Ramsey Show
Money Is a Tool To Create a Life You Love
A Yukon can hold two seven-pound babies. At least. Bare minimum.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Yeah, I think that'll give you some peace. And again, you can price it out. You can even talk to, you know, Healthcare Insurance Pro through RamseySolutions.com to help you kind of navigate some of this and you can crunch the numbers. I personally wouldn't burn too many brain calories over it.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Today's question comes from Alexis in Tennessee. We recently received credit cards in the mail from my son and daughter who are both under the age of 12. When I showed them to my husband, he responded that he had taken them out in our children's names to help them establish a credit score before they became adults.
The Ramsey Show
Money Is a Tool To Create a Life You Love
We have followed your principles for years, so I was shocked that he did this without talking to me about it. How should I handle this situation? This feels like there's a tinge of financial infidelity here. Behind her back, opened up credit cards in the kids' names.
The Ramsey Show
Money Is a Tool To Create a Life You Love
It's a trend because of these TikTok videos where they go, hey, parents, here's a life hack for you. Add your kids as authorized users and they can take your credit score when they're 18 and have great credit so they can go get some more debt.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Yeah, there's... We have an article here related to this. Parents are gaming their kids' credit scores, and it's around the same idea of stories of people who had their parents add them as authorized users... There's some horror stories in there. There's some explanation, but it says many are taking advantage of these tools.
The Ramsey Show
Money Is a Tool To Create a Life You Love
You can kind of look at what you guys have spent on healthcare in the past, what the premiums are, what the deductibles are, the out-of-pocket max. Those are really the main things you want to look at to decide. But the main thing is you got good coverage. You know what the in-network care is and you're not going outside of that. And do I have good care with the network S that I've chosen?
The Ramsey Show
Money Is a Tool To Create a Life You Love
A 2019 poll commissioned by creditcards.com, that's perfect, 8% of roughly 1,500 American parents surveyed said that at least one of their minor children had a credit card, presumably through authorized usership, because kids under 18 can't get their own card. And TransUnion data showed that nearly 700,000 22 to 24 year olds had authorized user accounts.
The Ramsey Show
Money Is a Tool To Create a Life You Love
So and here's the thing. I don't think these are terrible people. They're just well-meaning parents who have fallen for the system who go, well, this is the path. They got to have the credit score because otherwise, how are they going to rent an apartment and how are they going to travel? And they can't book airlines with that. And I'm going, have you ever tried a different route?
The Ramsey Show
Money Is a Tool To Create a Life You Love
You don't need to do all this gyration to live your financial life.
The Ramsey Show
Money Is a Tool To Create a Life You Love
It is absolutely bonkers. And I cover this in my book, Breaking Free from Broke. I have a whole chapter on credit scores, a whole chapter on credit cards, and I unpack how to live life outside of the system. And it's not as complicated or as difficult as people would have you believe.
The Ramsey Show
Money Is a Tool To Create a Life You Love
In fact, it's way more peaceful. It's way more simple. I don't have 16 cards to manage to try to get the rotating cash back rewards. I have a debit card and I use it and it has my money on it. And when that money's gone, it is gone.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And so when it comes to the Ramsey plan, I go, what's the cheapest option I can pay for that still covers my family? Because really you want for the big catastrophic stuff.
The Ramsey Show
Money Is a Tool To Create a Life You Love
A little ankle biter stuff. I'm like, whatever.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Probably one or two times. But if you're getting, you know, tubes and surgeries, that's where you want to go. All right. I want to know this is my max out of pocket.
The Ramsey Show
Money Is a Tool To Create a Life You Love
That gives me some peace knowing that's in the emergency fund. That's a worst case scenario.
The Ramsey Show
Money Is a Tool To Create a Life You Love
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The Ramsey Show
Money Is a Tool To Create a Life You Love
So just tell your wife, Rachel said we could. And then when you get back from the trip, everyone gets a $1,000 shopping spree. Stop. Stop. Here we go. Stop.
The Ramsey Show
Money Is a Tool To Create a Life You Love
I'm just saying. I feel like the kids would really like you for that.
The Ramsey Show
Money Is a Tool To Create a Life You Love
You've raised some great kids. I'm just surprised they want to go on vacation with you guys at this stage of their life. That's the best part, that you raise kids who like you. Yeah.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And Jeff will be tracking it in his Excel spreadsheet.
The Ramsey Show
Money Is a Tool To Create a Life You Love
He's the dad who had the map quest printed out, ready to go for the trip. Like this is the dad I aspire to be.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And they make such a great income. I am not worried for a second about their retirement.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Based on what he said, they're already Baby Steps millionaires. They're very close to it in their early 40s.
The Ramsey Show
Money Is a Tool To Create a Life You Love
What is the 10% penalty amount to? What's the dollar amount?
The Ramsey Show
Money Is a Tool To Create a Life You Love
Okay, and what would you pay to keep it going for the next year until you can cash it out without penalty?
The Ramsey Show
Money Is a Tool To Create a Life You Love
Then, I mean, I'm doing the math on this going, all right, I could pony up $2,700 or just leave it for a year. That's not a long amount of time at this stage of the game. So it might just be worth waiting. Okay. Yeah, is it a variable?
The Ramsey Show
Money Is a Tool To Create a Life You Love
Would he be willing to go through Financial Peace University with you and go, hey, I understand. I grew up in a different context. I grew up learning about how to manage money. It may be something he just didn't have. And if he's willing to learn and willing to get on a plan, that's a green flag. But if he goes, nah, I'm good. I'm going to do my thing.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Yeah, they do not have good returns. And I'm sorry that you even fell into this trap. Annuities make sense for almost nobody. And the only one that would even be okay in the Ramsey world, if you really wanted to do it, is a variable annuity. But even then, you're better off investing.
The Ramsey Show
Money Is a Tool To Create a Life You Love
That would be a red flag to pause moving forward in this relationship.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Okay. So he makes great money, which tells me... In San Diego, though.
The Ramsey Show
Money Is a Tool To Create a Life You Love
I was just wondering, is this on fire? Does he need to get rid of the car yesterday? Has he sort of had any sense of urgency when you talk to him? He has two cars.
The Ramsey Show
Money Is a Tool To Create a Life You Love
He has two car payments and one of like, it's just kind of toys for him.
The Ramsey Show
Money Is a Tool To Create a Life You Love
I hope he's willing to change because Claire is worth it.
The Ramsey Show
Money Is a Tool To Create a Life You Love
These are used to prey upon people who are scared of the stock market, who want the stability, but they don't realize they're missing out. And there is actually more risk in missing out on the returns. And so I would just let it sit. You know, the, the damage is done. You're going to be okay. Do you have a good nest egg? Are you going to be able to retire when you want to?
The Ramsey Show
Money Is a Tool To Create a Life You Love
which they declined that and they insisted that this was their gift and they want to but are you telling me is your child the beneficiary on that account our child is the beneficiary okay okay got it because you said they opened it in their name and i went wait what are they putting themselves as the beneficiary but no your child is the beneficiary but they are the owner of the account and that's the part that gives you pause yeah so here's what i would do that's i wouldn't
The Ramsey Show
Money Is a Tool To Create a Life You Love
count on it i just want to accept it yeah you they anyone can open an account for anyone and so that's the thing is like you just go hey i'm gonna ignore it if there's money there and they choose to give it to your son wonderful but i would plan for your own child's college and act like this is gravy on top if it ever comes to fruition sure okay okay yeah ultimately yeah sorry you go ahead first
The Ramsey Show
Money Is a Tool To Create a Life You Love
Yeah, what happens if he goes to a college they don't like or gets a degree they disagree with? Now it's awkward. And they're not the parents. I wouldn't worry about it. You can have multiple 529s in a child's name. So I would open one up that you guys control and I would fund that. And if people want to gift money, have it funded in there.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And if they want to put money in this account and they want to give it to your kid one day, that's great. But again, I wouldn't count on it, but I also wouldn't be like, I would let go of the resentment over this. And unless you think there's malicious intent, it might just be them going, hey, we want control over this if we dump the money in.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Yeah, if you continue to max out retirement accounts from, you know, you said you're 58 and a half for the next seven years or so, well, also your investments are going to double in that amount of time if it gets an average 10% rate of return. So you should be hopefully in good shape with the pension and everything you've got going on, but I wouldn't let my foot off the gas for sure.
The Ramsey Show
Money Is a Tool To Create a Life You Love
You can change the beneficiary at any time. So if your kid doesn't use it or they have whatever kids, they have grandkids, other nephews they want to change it to, that's their right as the owners of the account. And so it's nothing for you to decline. If they offer it and you don't want it... then that's on you.
The Ramsey Show
Money Is a Tool To Create a Life You Love
If it was my older brother, I'd be like, hey man, this just feels weird.
The Ramsey Show
Money Is a Tool To Create a Life You Love
yeah you guys are the best this was extremely helpful and gave a lot of clarity to a hopefully not complicated family situation yeah thank you so much guys yeah absolutely absolutely yeah that's that's an interesting one yeah I just I want to know what's underneath all of this or is there any kind of like sibling you know he's in a family business with his brother and so there might be more to this that we can probably need to unpack in a therapy session versus the Ramsey show but there might be more to this
The Ramsey Show
Money Is a Tool To Create a Life You Love
But best case, it wasn't malicious and they just go, well, we're funding it. So I feel like we should have a say. And that's OK to say, no, we're not. We're not comfortable with that.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Yeah. If my brother opened an account for my daughter and said, well, you don't get a say and I get to control where this money gets used and how I'd be like, no, then we're we're good.
The Ramsey Show
Money Is a Tool To Create a Life You Love
We need the brother online to go, well, he's going to go to a liberal arts college. I'm not going to give you that.
The Ramsey Show
Money Is a Tool To Create a Life You Love
That's a little too Maury for me. Maury, Maury.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Go fund yourself. You like that? That's as edgy as I get on a family-friendly show.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Go fund your own kids 529 and not worry about what everyone else is doing.
The Ramsey Show
Money Is a Tool To Create a Life You Love
So these annuities, Rachel, they're being peddled more. Well, it's because of the advisors. Yeah.
The Ramsey Show
Money Is a Tool To Create a Life You Love
We're going to give you a resource to help with that. Before we leave the call, our phone screener is going to pick up and give you Ken Coleman's book, Find the Work You're Wired to Do. It comes with a Get Clear Career Assessment. I want you and your wife to take that because I just think you guys can do better. You need to do better for your family.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And that's going to mean finding a career you can sink your teeth into instead of just odd jobs. And let me also tell you this. Any job can be a ministry. And I know that you can work within the church system and that can be a real blessing, but man, there is so much ministry to be done outside of the church too.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And I want you to know that there is immense purpose regardless of where the Lord takes you. And I hope that it just encourages you to look beyond the scope of just, well, if I'm not a missionary, who am I? What am I going to do?
The Ramsey Show
Money Is a Tool To Create a Life You Love
You're making 20K a year right now, which is about 10 bucks an hour.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And they're so expensive. The amount of fees and commissions built into these.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Maybe your church community even asking around there.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Can you guys cut your expenses? It still feels like there's a lot. I mean, you still have thousands more in expenses every month, even beyond your rent.
The Ramsey Show
Money Is a Tool To Create a Life You Love
I mean, it's why they push whole life in annuities instead of telling you, hey, just go invest in your 401k. They got to make their money. And so I don't like these quote unquote wealth strategists and advisors that are really just insurance salespeople. Me and George. Sorry, Rachel.
The Ramsey Show
Money Is a Tool To Create a Life You Love
Coming in hot with high deductible health care plans and annuities. It's a hot show.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And what was the court order? How much and for how long?
The Ramsey Show
Money Is a Tool To Create a Life You Love
You're not getting future payments. You just have this kind of savings sitting here, and you feel like, I don't want to touch this money because it feels weird.
The Ramsey Show
Money Is a Tool To Create a Life You Love
So in the filing cabinet of your brain, we need to refile this instead of child support money from an abusive, awful relationship. This is changing my family tree money to set up my child for a better life than the one I experienced.
The Ramsey Show
Money Is a Tool To Create a Life You Love
I would have a goal for this money instead of letting it just sit there. It's only going to make, you know, reopen the wound. So I would put it in a 529 plan for college. I would put it toward in a savings account for a car fund one day because that day is going to come and these things cost money. And this is it's part of the deal.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And, you know, there's a shared burden because that person was a parent and this is what the court ordered. And so it's hard to just say, release the guilt, Sarah, you're doing great. But that's the truth of it. It's that hard and it's that simple to just go, all right, it happened. That was the past. And I'm going to make a better future for my kid now. And it sounds like you guys are thriving.
The Ramsey Show
Money Is a Tool To Create a Life You Love
And this child is so lucky to have you two.
The Ramsey Show
Your Future Self Deserves Better Choices Today
And so I just want to make sure if you talk to a tax pro, there may be a better strategy to sell portions of this off every year and use that toward the house payoff to get this done over the next three years, for example.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Instead of paying a larger tax bill with your tax brackets, you know, because you're basically paying taxes on $379,000 of gain.
The Ramsey Show
Your Future Self Deserves Better Choices Today
So I would crunch the numbers with a tax pro and see what the best strategy is. But yes, as soon as you can get that house paid off and get out of a single stock, the better. And if you invest in a mutual fund in your 401k, Tesla is going to be in there. It's just going to diversify your risk because Elon could, you know, you know, Trump could go, ah, Elon's not a friend of mine anymore.
The Ramsey Show
Your Future Self Deserves Better Choices Today
And Tesla stock takes a 10% dip in one day. We just don't know. Sure.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. Hey, student loan debt is an epidemic, and defaulting on debt makes you feel even worse. But our question of the day sponsor, YRefi, refinances defaulted private student loans and builds a custom loan based on your ability to pay.
The Ramsey Show
Your Future Self Deserves Better Choices Today
So you'll have a payment you can afford with a low fixed interest rate you couldn't get anywhere else. Check them out at YRefi.com slash Ramsey. That's the letter Y, R-E-F-Y dot com slash Ramsey. May not be available in all states.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Well, the irony here is he's saying he already doesn't have ambition and he has no clue that there could be an inheritance. So adding one to the picture is not going to remove more ambition.
The Ramsey Show
Your Future Self Deserves Better Choices Today
So I would see if I can repair the relationship. You can always change your will later. This is not like a forever thing. But what would I do at this point? If there's no connection to this person, they've cut me out. There's no reason to leave them in if you don't want to. That's your choice. If you want to leave a million dollars anyways, that's also your choice.
The Ramsey Show
Your Future Self Deserves Better Choices Today
But I would do my best to see what's behind that lack of ambition. Because like John said, there's likely trauma. There's just a lack of hope. And I think he does want to make something of himself. He just needs some support to get there.
The Ramsey Show
Your Future Self Deserves Better Choices Today
That might make you feel better, but it doesn't actually solve any of the problem.
The Ramsey Show
Your Future Self Deserves Better Choices Today
It's like, sorry. I was hoping you were going to say no. That would have been hilarious. Deloney's kids are listening. They just learned about Santa today. There we go. Zach is up next in Tulsa. What's going on, Zach?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Live from Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by the great Dr. John Deloney, and we're taking your calls at 888-825-5225. You call us up, and we will do our best to give you the right next step for your life, your relationships, your emotional mental health, and your money.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Great. So how fast can we pay off the $13,000?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay. So by March, you're debt-free. Then how long until you have a fully funded emergency fund?
The Ramsey Show
Your Future Self Deserves Better Choices Today
wacky, but... You've been listening to the show for 17 years? And you decided Zach's plan is better than Dave's?
The Ramsey Show
Your Future Self Deserves Better Choices Today
So the question is, why do you feel like your method is more optimal?
The Ramsey Show
Your Future Self Deserves Better Choices Today
But you could be in like the four-figure mark if you knock it down from $13,000 down to $9,000.
The Ramsey Show
Your Future Self Deserves Better Choices Today
You'd be debt-free by late January or February instead of March, and then you'd have the emergency fund saved up probably six months after that, if not less, with no expenses. Then we can begin saving up 15%, and then any money beyond that goes to down payment, and then we'll see where we're at in two years. But investing 25 or 30% now, you're going to go, man, I really want a house.
The Ramsey Show
Your Future Self Deserves Better Choices Today
We have nothing down. So we're going to do it anyways on a 30-year loan with 1% doing FHA. This is the cycle that people get into when they want to shortcut it. And there's something beautiful about just relinquishing going, I'm not the smartest guy in the room. I'm going to follow a proven plan that worked for millions of others. One thing in front of the other. That's the way to do it.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Thanks for the call, Zach. This is The Ramsey Show.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. The phone number to call is 888-825-5225. If you're looking for a shortcut to get better with money, I wish I could tell you there was a magic trick you could do. But here's the best shortcut I found is making it easy to do the right things with your money. And that's why I love our EveryDollar budgeting app.
The Ramsey Show
Your Future Self Deserves Better Choices Today
You punch in your income, You list out your expenses, you track your transactions against that. Both, you know, if you've got a spouse, they can be signed into the same budgeting app. And so you have accountability, you have clarity with where your money's going.
The Ramsey Show
Your Future Self Deserves Better Choices Today
And I'm telling you, no matter what your money goal is, whether it's paying off debt, saving up for whatever it is, the budget will be your best friend. So you can download EveryDollar for free in the App Store or Google Play, or click the link in the description if you're listening on YouTube or podcast. David is up next in Colorado Springs. What's going on, David? Hey, how are you guys doing?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Doing great. How can John and I help?
The Ramsey Show
Your Future Self Deserves Better Choices Today
How much do you have in your nest egg currently across your retirement accounts? Um, about probably about 180, 190,000.
The Ramsey Show
Your Future Self Deserves Better Choices Today
And is there any other retirement income that you're planning on a pension or anything like that?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay. So history will tell us in the rule of 72, that every 7.2 years, your money would double at a 10% rate of return. And so that 190, let's call it 200 would double to 400 in seven years. So you'll have 400 K in your nest egg. How much is left on your mortgage? About $130,000.
The Ramsey Show
Your Future Self Deserves Better Choices Today
So over those seven years, can we also make a plan to get the mortgage knocked out, which will reduce your expenses by whatever your mortgage payment is? What's your payment every month?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Oh, good. You're already paying extra, and you're saying there's extra money coming in.
The Ramsey Show
Your Future Self Deserves Better Choices Today
I love it. So here's what I would do if I was in your shoes. I would put any extra money beyond the 15% toward the mortgage. And the answer is pretty simple. If you can reduce your expenses by $1,100 a month, you're going to be better off in retirement. You won't need as much in the nest egg to cover your expenses.
The Ramsey Show
Your Future Self Deserves Better Choices Today
And the true part is you're going to knock that mortgage out probably quicker, and that will allow you to then invest up to the max with your catch-up contributions, just max everything out that you can once the mortgage is paid off. And that might mean I got to work an extra year or two longer than I wanted to.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Yeah. Well, the thing is, retirement is not an age. It's a financial number. So I wish I could just tell you, yeah, you should be good at 66. You might need to go, I'm not quite there yet based on the life I want to live, or we have to make some serious sacrifices in our lifestyle in order to stay at this level in retirement.
The Ramsey Show
Your Future Self Deserves Better Choices Today
then you don't need $1.5 million in that nest egg. You might be able to make two. But I would still crunch the numbers on this and go, all right, how much will we likely need, and is there going to be a gap, and what does that mean for our income? We might need to get our income up for the next seven years in order to hit this goal.
The Ramsey Show
Your Future Self Deserves Better Choices Today
So there are things you can control in this, and I love that you're taking charge even though you're getting a later start than many. Way to go. Jackson is up next in St. Petersburg, Florida. Jackson, welcome to The Ramsey Show.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Did you not have enough coverage or did they lowball you for some reason?
The Ramsey Show
Your Future Self Deserves Better Choices Today
So what's the quote? Like, what's the gap here of, hey, the quote's actually $100,000 and insurance is covering $50,000?
The Ramsey Show
Your Future Self Deserves Better Choices Today
They didn't kick you off? No, they have not. Okay, good. And you're still living in this house?
The Ramsey Show
Your Future Self Deserves Better Choices Today
And what does this mortgage plus rent add up to every month?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Man, that's a lot of your take-home pay going to just try to cover this in the meantime. This could be a long journey. That's a tough one. I'd talk to everyone, real estate agents, attorneys, the mortgage company, and just fight, fight, fight, man. I'm so sorry you're going through this. That puts this hour of The Ramsey Show in the books.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Live from the Ramsey Network, it's The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm Ramsey personality, George Kamala, joined by my colleague and friend, Dr. John Deloney, host of The Dr. John Deloney Show. And we're taking your calls at 888-825-5225.
The Ramsey Show
Your Future Self Deserves Better Choices Today
If you've got a question about money, relationships, mental or emotional health, help us help you by calling in, and we'll do our best. Connor is in Anchorage, Alaska to kick us off. What's going on, Connor? Hey, how's it going? Good. How are you?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Yeah, right. And you've done it all very wisely.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Love it. Is this a solo gig or do you have a team?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay. How much do you have in savings?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay. So you're at the point where you're able to build wealth. You don't have any debt. You have an emergency fund that puts you in baby step four in the Ramsey plan, where you begin investing 15% of your income into retirement plans. So for you, 100K a year, we're going to call that $15,000, should be being put away every single year into retirement. Okay.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Now for you, you're self-employed, you have options. You can always open a Roth IRA. Do you have one of those?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay. Well, it sounds like you just made it to this point where you're in a really good spot. You've got all the toys you need and you have the emergency fund. So I would begin doing what's called dollar cost averaging. So you take, you know, the $7,000 is what you can contribute to a Roth IRA this year. And so come January, we're going to put in one month of that.
The Ramsey Show
Your Future Self Deserves Better Choices Today
And then February, one month of that. And so by December, you've put in all $7,000.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay. So you can put 583 every month in there. It'll be maxed out by the end of the year. But remember, you should be investing 15,000. So you still need 8,000 more of retirement account, which means you might want to look into, depending on your situation, a SEP IRA or a solo 401k. Okay. Depending on how your business is set up. And I would be contacting a SmartVestor Pro.
The Ramsey Show
Your Future Self Deserves Better Choices Today
This is a person who can help you on your investing journey. If you jump on ramseysolutions.com and click on SmartVestor, they can walk you through the best options for your situation, for how your business is set up to get the right retirement accounts going for you.
The Ramsey Show
Your Future Self Deserves Better Choices Today
But man, you're crushing it. And if you, you know, as your income goes up, that 15% will also increase. Yeah. And then I'm guessing you have other goals. Do you want to be a homeowner?
The Ramsey Show
Your Future Self Deserves Better Choices Today
So beyond the 15%, let's say, you know, you hopefully you have money left over because you're doing such a great job budgeting and living on less than you make that you could then also set up another high yield savings account and just start shoveling any extra money into that account so that you'll look up and have a hundred grand ready for a down payment in a few years.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Don't. Ever. You're 18 and wealthier than most Americans. What makes you think you need a credit card?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Just delete social media and become a great- Freeze your credit accounts. Never touch the stuff. Because guess what? You've already learned that you know how to manage your money instead of managing debt, and credit scores are all about being good at managing debt. It's not something you need or are interested in.
The Ramsey Show
Your Future Self Deserves Better Choices Today
So here's the process, and I'll send you a copy of my book, Breaking Free from Broke. And in the home ownership chapter, I walk people through the process of buying a house without a credit score. Actually, in the credit score chapter. That makes sense where it goes. And so it's a process called manual underwriting. You'll hear this as a no-score loan sometimes.
The Ramsey Show
Your Future Self Deserves Better Choices Today
And what they do, just like the olden days before credit scores existed... They'll look at your actual financial picture and they'll go, okay, Connor has a very low debt to income ratio because he has no debt. He makes a great income. We see his tax return and we're going to grant him this mortgage based on real factors.
The Ramsey Show
Your Future Self Deserves Better Choices Today
The automated underwriting is just a computer saying, hey, he's got a great credit score. You can trust him to hopefully pay back this loan. And so it's a very similar process. It's just a little bit more manual. It doesn't take much more time. It's simple. You just need proof of, you know, are you paying rent every month on time?
The Ramsey Show
Your Future Self Deserves Better Choices Today
i am i am yes are you paying any utility bills or cell phone bills on time every month cell phone yeah insurance yep boom those are the types of things that would qualify you and our friends at churchill mortgage have been specializing in these types of no score loans for a long time it's why they've been great partners for us and john and i have both went through this process so we're here to tell you it's very much possible and hey um you're going to learn a hard lesson can i go ahead and just ruin it for you connor
The Ramsey Show
Your Future Self Deserves Better Choices Today
Congratulations. Hang on the line. We'll send you a copy of my book, Breaking Free from Broke. Hope it helps you build wealth in a much more peaceful way. This is The Ramsey Show.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. The phone number to call is 888-825-5225. John, listen, I was in the Ramsey Network app, as I tend to be in my free time.
The Ramsey Show
Your Future Self Deserves Better Choices Today
I noticed there's a new spot up top, and it's got your face on it. That's right. And it said, United States of Anxiety.
The Ramsey Show
Your Future Self Deserves Better Choices Today
It's totally free, so go download it. And a good reminder that... the next hour of the show will be exclusive to the Ramsey Network app. So we're putting a lot of cool things in there on top of new shows. The third hour of the Ramsey show is also in there. So go check it out. Go to your app store and search for Ramsey Network and get it today. All right. Rachel's up next in Wichita.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Every time someone steps over that boundary line, the story you're telling yourself is, well, of course, I'm not worth someone respecting a boundary. Yeah. I shouldn't have put that boundary up. That's on me. You've taken this on yourself.
The Ramsey Show
Your Future Self Deserves Better Choices Today
None of us can. And you reached out for help right now.
The Ramsey Show
Your Future Self Deserves Better Choices Today
So I realize that it's OK to bring others in to help you through this and no one's going to judge you. And the ones that do get get them out of your life. Yeah. And so I love John's idea of make the the bad things difficult to do and make the good things easier to do. And we did this with our little toddler.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Are you determined to get out of debt and build wealth this new year? Then don't leave out an important step, which is having the right insurance. Don't make the mistake of thinking you can get by with minimal coverage or no coverage at all.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Because when Murphy comes knocking, and he will, you'll start backsliding further into debt if you don't have the money to pay for it and if you don't have the right insurance. So take our insurance coverage checkup. We make it easy with a free tool that helps you find out if you have all of your bases covered. To check it out, go to ramseysolutions.com slash checkup.
The Ramsey Show
Your Future Self Deserves Better Choices Today
That's ramseysolutions.com slash checkup. Welcome back to the Ramsey show. I'm George Campbell joined by Dr. John Deloney. The number to call is 888-825-5225. We'd be happy to help you take the right next step for your life, your money, your relationships, whatever you got going on. Noah is up next in Jackson, Mississippi. Noah, welcome to the Ramsey show. Thank you so much, gentlemen. How are we?
The Ramsey Show
Your Future Self Deserves Better Choices Today
We're doing great. How can we help today?
The Ramsey Show
Your Future Self Deserves Better Choices Today
We took off all the ornaments on the bottom of the tree so that she couldn't reach them and smash them. And so for you, that means freezing your credit, cutting up the credit card, and putting some restrictions to make it harder to spend. Put friction in your life to where you can't spend money on that credit card because you don't have one anymore.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Is she also at home taking care of the kids and this is just like a few hours a week kind of thing or what?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Right. The part that's concerning is you've been making more and more every year with nothing to show for it, which tells me every single extra penny you earn is getting also spent. Yeah. And I don't, I don't think it's all like it's for the kids.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Like there's probably some spending we've been doing out of just survival mode to kind of, you know, have some retail therapy or just go, I just deserve X, Y, Z. So where is that spending happening?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Where would you say like, man, I'm really, this is where the money's going. If you told me straight up beyond the bills, this is where it's going.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Jessica is going to kick us off in Seattle. How can we help, Jessica?
The Ramsey Show
Your Future Self Deserves Better Choices Today
So dad's gone, and when dad's home, he buys our love, and life is okay.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Could you put $4,000 a month toward this debt right now with your income if you got on a real tight budget?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. As a listener of The Ramsey Show, many of you are wondering, am I on track financially? Am I on track to hit these baby steps to reach my financial goals? Well, our team created a really quick, easy, fun quiz to check your progress. And on the other side, you'll get a personalized plan built just for you.
The Ramsey Show
Your Future Self Deserves Better Choices Today
So if you want to check it out, go to the show notes and click on the link titled Are You On Track With The Baby Steps and complete the free quiz. And if you didn't know, the Ramsey Network app is the only place to get full episodes of The Ramsey Show. You can download it for free. We get the link in the show notes again. Or just search Ramsey Network app.
The Ramsey Show
Your Future Self Deserves Better Choices Today
in the App Store, and this will be the last segment of this show where you're listening right now if you're on YouTube or podcast. If you're on radio, stay tuned. The show will continue. Everyone else, you don't want to miss more calls, so go get the Ramsey Network app and finish the show like a decent human being, John. Be a good American.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Thank you. Robert is up next in Houston, Texas. What's going on, Robert? Dr. John's already a fan of you. Oh, fantastic. How are you doing today, gentlemen?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay. And you're thinking, hey, do we just try to snowball this or refinance later on? When would you be refinancing?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Amazing. So what's your monthly mortgage payment right now? And what's the monthly take-home pay?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay. Well, if it puts your family in financial jeopardy at some point, you may want to dial that back so you can take care of your own house first. But, I mean, nothing is on fire here. I don't see a world where, I mean, if you refinanced, what would the big deal be at this point? You'd get a slightly higher interest rate?
The Ramsey Show
Your Future Self Deserves Better Choices Today
That's annoying. So you're going to have to keep your lifestyle in check, keep living on less than you make, and maybe even downgrade a little bit from what you guys are doing. Yeah, you're going to get Camrys.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Let's start a sinking fund, and part of that is we're going to put $2,000 a month right now into the savings account every month. We're going to have $24,000 in a year so that when the car blows up, we've got $20,000 to go buy something used and reasonable. So I think you're trying to go all in on one thing.
The Ramsey Show
Your Future Self Deserves Better Choices Today
You're in this spot in Baby Steps 4 through 6 where we've got to balance a bunch of things, and that's where the sinking funds are beautiful because you just stack the money away every month. You're intentional about it. Nothing's ever a surprise. Whatever's left, we can throw at the mortgage.
The Ramsey Show
Your Future Self Deserves Better Choices Today
And then debt snowball the rest. Whatever the smallest balance debt is, we're going to attack that first, make minimum payments on the rest.
The Ramsey Show
Your Future Self Deserves Better Choices Today
And you're also – you said you're only investing 9%, and the Baby Step 4, the 15%, is your income regardless of the match.
The Ramsey Show
Your Future Self Deserves Better Choices Today
If you complain that you've amassed too much wealth because of the extra 6% invested, you can call and yell at John and I. Yeah, I'll take that call. You can Venmo us the difference that you want to unload.
The Ramsey Show
Your Future Self Deserves Better Choices Today
People don't pay people $200,000 when they suck.
The Ramsey Show
Your Future Self Deserves Better Choices Today
That puts this hour of The Ramsey Show in the books. Go check out the Ramsey Network app to get even more calls coming up.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. The phone number to call is 888-825-5225. It's the only way to get on the air to talk to the great Dr. John. And George.
The Ramsey Show
Your Future Self Deserves Better Choices Today
You're right. I'm not even going to mention my YouTube channel.
The Ramsey Show
Your Future Self Deserves Better Choices Today
No, John needs the affirmation. I need this. He's very insecure.
The Ramsey Show
Your Future Self Deserves Better Choices Today
All right. We're going to try to help Joe in Detroit up next. Joe, how can we help you today?
The Ramsey Show
Your Future Self Deserves Better Choices Today
That's incredible. That's their money. Yeah. Not your money. They're forcing, but it's their company money. They're putting in 12.5% of your income.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Great question. I would focus on the Roth side of the 401k. And if you have great funds in there, if they have some decent options, it sounds like they do based on how they treat this retirement program. You could do all 15% in that Roth 401k of your own money.
The Ramsey Show
Your Future Self Deserves Better Choices Today
It'll be very similar to the Roth IRA. It probably has very similar funds. There's not going to be that much of a difference. The difference with the Roth IRA is you can invest in any fund in the world. On top of that, you can look at expense ratios, but I think it's a good deal to invest in that Roth 401k. And again, their side will be the traditional pre-tax side. That's okay.
The Ramsey Show
Your Future Self Deserves Better Choices Today
When you get to retirement, when you hit baby step seven, you could begin rolling some of that money over from the traditional side to the Roth side and pay the taxes on it.
The Ramsey Show
Your Future Self Deserves Better Choices Today
No, that's a retirement fund, not an emergency fund. Your emergency fund should be just in savings outside of that.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay, awesome. And do you have an emergency fund saved?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay. Your goal should be three to six months of expenses in that high-yield savings account. Then beyond that, invest 15% of your own income, regardless of what the company's putting in.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Oh, man. The fact that you're talking about this stuff now and already investing, you're going to be just fine. The key is just invest consistently. Never stop. From 24 to 64, the next 40 years of growth, it'll blow your mind. Go punch it into our investment calculator and have a Merry Christmas.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Yeah. They're very similar. And for everyone listening in going, what the heck, the pre-tax and the traditional Roth is just the tax treatment. So the pre-tax means you're going to get the tax deduction now. But you're going to have to pay taxes on it later when you take it out in retirement. With the Roth account, it's going to be after tax. So you don't get the tax deduction come tax time.
The Ramsey Show
Your Future Self Deserves Better Choices Today
But when you withdraw that money in retirement, it grows tax free and you can withdraw it tax free. So I love that. You can control the controllables because I don't know what taxes are going to be when I retire, you know, 30 years from now. So I like knowing that it's tax-free. If there's $2 million in that account, that's like $2 million of take-home pay in retirement. So I like that plan.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Let's go to Alice up next in Sacramento. Welcome to the Ramsey Show, Alice.
The Ramsey Show
Your Future Self Deserves Better Choices Today
I did not put in a dime more. Upwards of $380,000. Wow. That is wild. So...
The Ramsey Show
Your Future Self Deserves Better Choices Today
Well, what's your household income this year?
The Ramsey Show
Your Future Self Deserves Better Choices Today
So my immediate gut reaction was, oh my gosh, sell it and pay off the house today. What I want you to think about and talk to a tax pro about are the tax implications. Because you're going to have to pay the capital gains on this, which will be a significant tax bill.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Yeah. No, Amanda, how does that hit you?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I love that. I love it. But 15% is that benchmark. And it's not a wet finger in the air. We found, Dave's been doing this for 30 plus years. If you're investing less than that, there's a risk that you might not have enough in retirement.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
If you're investing way more than that and the house isn't paid off and the college isn't funded, your kid's going to go into crippling student loan debt and you're going to have a mortgage for the next 30 years. So there's a balance to it.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
And we found that if you invest 15% of your income, for most people, until the house is paid off, you're going to have at least a million, probably multi-millions in that one nest egg. And so it's a beautiful picture, especially for a young family like that. That's a great way to go. But you're right, John. This is a tough part of the baby steps.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Once you get out of one through three, because we found baby step one, 30 days. Boom. Baby step two, get out of debt, 18 to 24 months. Baby step three, get the emergency fund, six to 12 months. That's great. You can knock all this out in two and a half years. Then baby steps four, five, six.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
But at least you're thinking about the future instead of paying for the past.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
It's a different problem to have a better problem to have. Yes.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Absolutely. And that's where the budget comes into play. You've got to get control. Once you get good at that budget, after about 90 days, you get it dialed in. You start to breathe a little easier because there's less unknowns floating around your head. This is the Ramsey show.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Welcome back to the Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. The phone number to call is 888-825-5225. Haley is down the street in Nashville. What's going on, Haley?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
She was artificially propped up with you and your ex paying the mortgage. Yeah, she shouldn't be on it. Right.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
And probably other jobs in between your sessions.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
From the Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Camel, joined by Ramsey personality, Dr. John Deloney. We're taking your calls at 888-825-5225. We'll do our best to give you the right next step for your life, your money, your mental health, your relationships, whatever is going on.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
How much further do you have to finish this program?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Good. And what will you be making at this new job? Do you know?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So after all this school, you're going to make the same? Is that what you're telling me, or am I hearing it wrong?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Yeah. You owe $100,000. $135,000 making 50 grand is going to take you a decade to pay off if you're lucky. Can't do that. And that's not a plan. I want to see you debt free in a few years, not 10 or 12. So that means, like John said, getting that income way up and also not going further into debt. So here's the advice that you may be shocked to hear. I would not begin paying off your debt.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Your goal should be to stop the bleeding and to not go into any more debt. So have you already paid all the way through this program, or do you still owe more?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Well, you owe $135,000. Are you going to go take out more student loans to finish this program?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So you're done? We're done taking out debt?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Are you using debt in any other area of your life? Do you have a credit card?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay. And you don't have any other debt outside of the student loans? No car payment?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay. And what's the monthly payment?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
All right. So when you're ready to pay off the debt, when you're through this program and you haven't taken on any more debt and you've got this down, then we can begin paying it off. And you're going to do this in order of smallest to largest balance, ignoring the interest rate. And I'm guessing all these student loans, you probably have like 11 or 12 student loans if you broke them all out.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay, so don't do any consolidation here. Focus on attacking the smallest debt, whatever's next. If the next debt is $1,000, let's attack that with all the extra margin we can get with our newfound income from working extra. That's how you're going to pay this thing off, but again, it's going to take a whole lot more income.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Hang on the line, Haley. We're going to send you Financial Peace University. Watch all nine lessons. It's going to put a pep in your step and give you the financial literacy you need to actually get through this. This is The Ramsey Show.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So whose name is on the deed and whose name is on the mortgage?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. Open phones at 888-825-5225. John, we'd be remiss not to talk about these fires in California and how they actually impact everyone. So we wanted to hit some practical things, some financial pieces to think about, and even people who don't live there. It could affect you, too.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
They've got to protect their collateral.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Yeah, so like you mentioned, these increased claims from natural disasters that depletes funds, which leads to higher rates, even in low-risk states like Maine and Vermont, and that broadens the financial burden beyond California.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So there's a lot of factors that have compounded this, like you mentioned, regulatory constraints that prevent insurers from raising rates to cover their increasing costs. There's already rising costs from inflation, reinsurance, natural disasters, and then the insurer's inability to remain profitable under current conditions. Remember, they're a business. They need to make money.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
You know, this is not in defense of the insurance companies, but... If they get bankrupted by having to cover all these claims, they can no longer do business.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
And it's got a lot of people looking at their own insurance and wondering what does this cover?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
This is a good time to check into that. So there's standard coverage limitations. So typical homeowners insurance covers events like fires and theft, but often excludes major natural disasters, these acts of God. And then there's supplemental policy.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So depending on your location and risk factors, you might need additional insurance like flood or earthquake coverage to ensure comprehensive protection. That's a big deal in California, earthquake coverage.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Exactly. And without the adequate catastrophe insurance, you could face substantial out-of-pocket expenses for repairs or rebuilding after a disaster, as many Californians are dealing with now. They didn't have the right coverage, they didn't have the right policies, and they're left to foot the bills.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
It's wild. So here's the tactical recommendations. Number one, like we said, review your current policy. Understand what is and isn't covered under your existing homeowner's insurance. And call the hotline and check in with the customer service and go, can you explain to me what this actually means? And then number two, assess your risk.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Consider the likelihood of various natural disasters in your area and determine the necessity of additional coverage.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I would get out of this. It has not been a blessing so far. It's not going to be a blessing a year from now. And by the way, why did you file for divorce?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Think about this. The mortgage doesn't go away just because your house did.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
You still owe the bank that money. Right. And you've got to find a new place to live. Exactly. So very, very scary. The third thing you can do if you're in a good financial spot, you're out of baby step two and three, you got no debt, you have the emergency fund, you can raise your deductible. And that will help lower your premiums.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
You're willing to take on a little more risk from the insurance company and they reward you with a lower premium because you're going to have to pay a little bit more before their part kicks in. Another one, take advantage of discounts. So some insurance providers have discounts on policies with teenagers if they have good grades or a safe driving record.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
You can qualify for discounts by installing certain safety features like burglar alarms or if you combine your policies. And that's the next one, is bundling these policies can save you up to 25%, which is huge. And then, of course, this is the big one, compare quotes, shop around with an independent insurance broker.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I know you love your buddy from college who works at the name brand place, but he's a captive independent broker. He's a captive agent, so he can only sell state farms insurance. And so I like to shop around from the top companies. I use an independent broker to do that.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
And if you guys want to learn more about this, you want a Ramsey trusted insurance pro that can tailor the coverage to your specific needs, we've got a site for you to go to, ramsaysolutions.com slash insurance, and they'll help you figure out if you have the right coverage for your situation and only giving you what you need and making sure that you get the best price.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I guess there's some silver lining here that maybe this situation is causing people to get the right coverage so that they're protected. That's the point of insurance is to protect. As you build wealth and you're playing offense, you've got to also think about the defense. What are you doing to protect the wealth that you're building? Because all it takes is one emergency like this.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Or if you don't have health insurance and you have a health crisis, they can bankrupt you. That's right. You've got to make sure you have the right insurance in place across several areas. And there's a lot of trash products in the insurance world that you also don't need to And our Ramsey trusted insurance pros won't steer you to those products.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
They're only going to give you the stuff that Dave would talk about on air that everyone needs.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
If you have anyone in your life that relies on your income, that means kids, a spouse, you need term life insurance. 10 to 12 times your income.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Another reminder, and this is something you've railed on, John, is know your neighbor. Know your neighbor. Be friends with your neighbor. If something goes down, can you go over there, knock on the door, and they're like, oh, absolutely. And we're so disconnected in today's world that you're lucky to see your neighbor, let alone know them, talk to them, have their number.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
And that's been a beautiful thing that's come out of this is just the level of community and people coming out in droves. People have lost their homes or helping other people who have lost their homes. And so that is, you know, in the darkest times, we also see the most beautiful parts of humanity.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Generosity is a great way to feel connected to these things that feel out of our control.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I love it. Good stuff, John. Thank you to the booth folks keeping the show afloat.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
That's what I call them. That's as good as I can say. There you go. Nicest thing I can say about those guys. And we'll be back before you know it. This has been The Ramsey Show. From the Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I'm George Camel, joined by the host of The Dr. John Deloney Show, Dr. John Deloney himself. The number to call is 888-825-5225. If you want to join the conversation and get your question answered, that's the way to do it. April's going to kick us off in Gettysburg. What's going on, April?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I feel like you guys have been burning too many brain calories on this. Yeah, way too many. You take the check, you dispute it on the credit report, and we move on with our life, and we never do business with this bank again.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Did you talk to the bank about that?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Can he even afford this? If he assumes the mortgage and it's just on him, he's just going to rent it out to a stranger off the street at market rent or what? What's his plan?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
He actually changed his address with the bank. Yeah, I don't think he did.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Not with USPS, but did he change it with the bank?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I know. I don't think this is worth fighting with him over.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
None of this is malicious or personal. It was just someone who was inept.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Good. And also, I don't let money just sit around. I want my money to have a goal and a purpose. And so if it's not your checking for bills, put it in a high-yield savings account. Okay. Have you done that yet?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I still remember 10 years ago, 23 years old, I was frustrated, anxious, and flat broke. I had followed all the ways that toxic money culture had led me down from well-meaning parents and misguided guidance counselors, and it left me with a pile of debt. But I'm telling you, it doesn't have to stay that way. Over a decade, I went from broke to millionaire.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
and I break it all down in my new book, Breaking Free from Broke. I'm going to show you just how toxic this money system is and how you can break free from credit scores and credit cards and student loans and auto loans and investing traps and finally live a life that you're not exhausted by, a life with more margin, more options, and more peace.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
If you want to check out the book, go to ramsaysolutions.com to get your copy of Breaking Free from Broke. That's ramsaysolutions.com. Welcome back to the Ramsey Show. I'm George Camel here with Dr. John Deloney. What up? 888-825-5225. Don't be shy. Give us a call and we'll talk about your life and your money. The call is toll free. Who needs tolls these days?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
When's the last time you made a non-toll free call?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I think we should go back to paying for texts and calls, especially calls. Make those more expensive. No, especially texts. You call me, let's get off the phone as soon as possible.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Stop, I'm done with it. LOL. All right, here we go. The Ramsey Show question of the day is brought to you by YREFI. Student loan debt is a swamp thousands of people find it hard to escape from, so don't be another statistic in the student loan swamp. For distressed private student loans, there's YREFI.
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Are You Ready To Go Scorched Earth on Your Debt?
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The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
It's like, oh, but you had that when you were just a baby. It was Gerber. You'd hold your life insurance policy and play with it.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
But my dad took it out for me and I want to honor his. No, stop. You're a grown adult. You're not a Gerber baby anymore. They're worth about 50K. If that's the cash value.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Opt out. You know, surrender the policy, take whatever cash value has built up, and then use that money for literally anything else. Invest it, pay off your debt, filter it through the baby steps, but I would not continue to pay this monthly premium for a subpar product. You can do way better on your own, and instead, take that money, and if you don't have a term life insurance policy...
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Start that. So get term life in place and then cancel the whole life policy. And that term life policy will be way cheaper with better coverage than your whole life policy.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Well, you lose the death benefit, you know, the face value of the policy. So let's say the face value of the policy was $100,000, but the policy is worth 50K right now, cash value. That was built up over those 28 years. So the face value doesn't change, but the cash value will build up over time.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
And it can deteriorate because sometimes, you know, all the commissions and fees you have to pay can then eat into it. So they're going to take your cash value to pay the premiums. If you can't pay.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So there's no way out of this thing. Just surrender it and realize that it was a very kind mistake. It was a well-intended mistake for your parents to take this policy out. And reminder, life insurance is not for babies. It's meant to replace your income to protect the people you love. So a baby doesn't need life insurance unless your baby is a prodigy actor that is the breadwinner for the family.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Sure, you can get life insurance for your baby, but anyone else, not for you.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Absolutely. And if anyone out there is interested in term life insurance, the people that I trust, the people that John trusts, they provide it for our families. Go to Zander.com and get term life in place 10 to 12 times your annual income. You can do a 15, 20, 25 year policy depending on your stage of life. But the goal is to be self-insured after that policy lapses.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So 20 years from now, we're set. We've been following this Ramsey plan, investing, getting the house paid off. So we have our own nest egg that replaces this insurance policy. But get it in place today. It's very affordable and a great product. And Zander will shop the top companies for you.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Absolutely. Good word. All right, let's go out to Sam in Charleston. What's going on, Sam? Hey, good afternoon, gentlemen. How are you all today? Doing great. How are you?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Well, it's not going to be a penalty. It would be a conversion. And so you're going to have to pay taxes on that $500,000 in order to convert it to Roth. And so that would be, the only time you would do that is once you're in Baby Step 7 with a paid-for house. Are you at that spot yet? No, sir. No, not yet. Okay. So what I would do, though, is roll it over, do a direct rollover.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Is it all the money traditional 401k?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay, well, I'm telling you right now, it's a risky plan, and I'll tell you, the market overall did 24%. So you could do that across, if you just invested in the top 500 companies in America through an S&P 500 fund, you would have seen a 24% return. So I would move out of those single stocks.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I don't know, are those inside of a retirement account, or is that just non-retirement stocks that you could cash out?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So the traditional 401k, do a direct rollover to a traditional IRA. That way you don't pay taxes on that. Okay. But that way it's in your control.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Exactly. Or you can convert it before then and pay the taxes. You might do that strategically, you know, a little bit per year versus doing all $500,000. But that's up to you and your tax pro and financial advisor. You can dig into the numbers and see when that would be worth it once you're in baby step seven, completely debt-free house and everything.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
But the single stocks, I would cash out and know that you will pay taxes on that.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Oh, I see. Well, you're actually rolling it into another retirement account, so you need to have the cash.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
And he's using her as a pawn in this scheme. And if she chooses, knowing all of that, to still go through with this, that's on her to deal with. That's right. And he's going to have to deal with it when he realizes a 21-year-old cannot help pay this mortgage.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
You could do that with non-retirement because you're actually cashing it out, turning it into dollars, your stocks into dollars. And so then you could take a portion of that to pay the taxes. So this is where that's why it's a baby step seven thing where you need to have saved up all the cash to cover the tax bill.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Exactly. But it's a great question, Sam. You've done really well, man. Way to go. This is The Ramsey Show.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay, picture this. You sit down to do your taxes, but instead of stressing out, you're actually ahead of the game and filing with an affordable software that makes your computer shoot confetti when you're done. Okay, not that last part, but Ramsey Smart Tax does make filing easy and doesn't make your bank account cry.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Ramsey Smart Tax is a 100% accurate software that's honest about its pricing and is backed by a company who's been in the business for over 50 years. So go to ramseysolutions.com slash smart tax to take advantage of early bird pricing and stress-free filing. That's ramseysolutions.com slash smart tax. Welcome back to The Ramsey Show. I'm George Camel here with Dr. John Deloney.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
If you missed it, we announced our two-night virtual event, Investing Essentials, hosted by Dave Ramsey and yours truly, George Camel. We know that investing can be overwhelming, it can be confusing, and a lot of you are getting your investing advice from a 60-second social media post. Not the way to do it.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So with this virtual event, we're going to walk you through how to maximize your retirement plans, how to choose the right mutual funds to get the most out of your money, how to invest with confidence. Plus, Dave Ramsey will unpack his personal playbook on real estate investing, explaining how he made millions in property investments and how he did it debt-free.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
And I'm telling you, this is stuff that he's never talked about on the show. It is straight nerdville. There's formulas. There's graphs. There's charts. There's ups and downs. Friends become enemies. Enemies become friends. It's a beautiful story. So check it all out. It's happening March 4th and 5th. It's completely virtual. You can watch from home. Two nights. Tickets start at $199.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Get yours today at ramsaysolutions.com slash events or click the link in the show notes if you're tuning in on podcast or YouTube.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Can I be honest? We had to pull teeth to get him to do this because he said, nobody wants to know this stuff. It's so nerdy. And then people went, no, we want to know.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
And so that's why we created this event.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Whether you're just getting started with investing or maybe you're at that step where you want to become a real estate mogul, you're going to get something out of this. So join us. Go to RamseySolutions.com slash events and join us for Investing Essentials. Amanda is in Harrisburg, Pennsylvania up next. What's going on, Amanda?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Wow, congratulations. How's it been? Thank you. His first kid? Oh, it's the best.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Shannon's going to kick us off in Phoenix. What's going on, Shannon?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So let me ask this. If money was no object, would you just stay home with baby and not work outside of the home?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay. But you're saying, hey, I might have to work part-time in order to make the budget numbers work.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So let's play this out as if you're at home not working. What is the income coming in every month?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
That's it? That includes food, utilities, shelter, transportation, insurance, clothes. That's amazing. Yep. So why can't you guys do this today?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
He is old, but he's not outdated. Yeah, it works. Okay, so how much debt do you have left?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So 17K, how quickly will you guys pay this off with you being home?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Are we talking six months from now, you're debt-free?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Amazing. That sounds a lot like six months. I nailed it. Okay. So six months from now, you're debt free. Now we're working on the emergency fund. Can we save that up in another six months?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Wow. Okay. So we're talking before the end of the year, you guys are debt free with a fully funded emergency fund. You freed up the debt payments, which was how much? What were you guys paying per month or currently?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay, this is when you had two incomes. That makes more sense. I was like, that's more than your take-home pay. Okay, great. So here's what I would do with your husband tonight. Go to EveryDollar and craft a new budget just using his income, going, how is this going to work? Do we have margin left over to save and invest and give on top of that once we're debt-free? Great. And guess what?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
If it comes down to it and he goes, I need to work a little more in this season, that's fine. Or if you need to work five hours a week because you want to and it's going to help, that's fine. You get to choose. But what I wouldn't do is give up the dream because of guilt or because you feel like. Do this out of your values.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
And if your values say, I want to stay home with this baby, then figure out what must be true financially to do that and then make the sacrifices necessary.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I'm going to suggest one more, John. Yep. Because my wife stayed home and struggled with this. Amanda, read in praise of stay-at-home moms from Dr. Laura. That one was very, very comforting.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
The OG. The OG. The OG. So I hope that helps you. It's the right choice if it's the right choice for you. So just move forward. Don't look back. Don't think about what if. And crunch the numbers to make sure you can do it. But I'm telling you, based on napkin math, it's possible. This is The Ramsey Show.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Welcome back to The Ramsey Show. I'm George Camel here with Dr. John Deloney. Call us up at 888-825-5225. Hey, The Ramsey Show annual listener survey is now live. And we want to hear your favorite parts of the show, what you like, what you don't, what you want to hear more about, whatever it is we want to hear from you. And there's two ways to participate.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
If you're willing to help us out, text the word survey to the number 33789. That's 33789. Or visit ramsesolutions.com slash survey. If you're listening on podcast or YouTube, just click the link in the description. And if you sign up today, you'll be entered to win a $500 gift card. So that's worth it.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
You give us our opinion, you get to change the future of this show, and you might win a gift card. I'm going to call that a win.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Yeah, don't go in there just to trash John, all right? He gets enough of that.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Yes. And this is not going to be the last time she bails dad out if she goes down this path, and she's going to learn the hard way, and it'll probably destroy their relationship long term. I don't see a world where this just ends up perfectly, and they're all happy with what happened financially.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
If nothing else. If nothing else. There we go.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Let's go help out Christy in Houston, or as John calls it, H-Town. H-Town! What's up, Christy? You have to say it like that, apparently, Christy. How are you doing?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I hear no red flags. If you want to move, you want to move. You made a bad decision. It didn't end up working out. There's no harm in selling it and renting for now until you figure out what's next for you. What would it sell for in its current condition?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay, what's the urgency? Is it very livable now? Are you guys safe? Can you, you know, stage it, market it, do all the right things to try to get the most bang for your buck?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay. So you'd probably walk out of this thing with 20 to 40 grand if you're lucky after fees.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
And you would just, do you guys have any debt right now?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So you'd leapfrog to baby steps four, five, and six, where you're debt-free with a fully funded emergency fund, you'd rent, and then beyond that, I'd begin saving up a down payment, and your next purchase is going to be very different. You're going to do it out of a place of strength, right? You're going to know what you're getting into before you get into it.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
You're going to choose a better neighborhood. You're going to choose a home with less problems. And so I feel good about you guys selling this thing. Do you have a good realtor? Do you trust them?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Well, you can trust them, and they can be a terrible realtor. Are they really good at their job? Are they going to get you top dollar for this?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Awesome. And we have a whole real estate home base. If you want to check it out for more resources on this, you can jump on ramsaysolutions.com slash real estate. And there we have articles, how-tos, calculators, courses, you name it, to help you guys through this home selling process. But it's a hard lesson to learn, Christy, but you guys are getting out of this thing mostly unscathed.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I mean, you're safe. You're going to make a little bit of profit. I'm going to call that a win and a lesson learned.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
All right. Let's go out to Laura in New York up next. How's it going, Laura?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
All right. Okay. And you want to know how to get rid of the 60K?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
What were you thinking about doing? I have a feeling you had some ideas.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Don't do any of those things. So here's the deal. There's a few things you can't do, and I'll tell you what you can do. What you can't do is move the debt around. That's a consolidation loan. The other thing you can't do is take out more debt to pay off your current debt. That sounds as insane as it is. So looking to a HELOC or borrowing from retirement, these are not options.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So if you said these are off the table, what are my husband and I going to do to get rid of this debt with our current savings, things we can sell, and our future income? That is the only way out of this thing instead of just feeling like you did something and creating more problems down the road.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Laura, $18,000 a month? So you know what this tells me? You guys are living high on the hog right now. You're spending $25,000 a month even though you make $18,000. That's how we get into $60,000 in credit card debt. So here's what you're going to have to do. You need to chop your lifestyle down to nothing. As in we put food on the table, we cover the utilities, you cover the mortgage.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Do you guys have a gigantic mortgage?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
And it's disappearing into what? Because the credit card bills are how much? What's the minimum payments on $60,000 in credit card debt?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I know, but you added up the payments. How much are you sending to the lender every month? Is it $800 a month? $4,000 a month?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Do you guys have anything in savings or anything you could sell? Any other property? Non-retirement accounts? Nothing.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay. So your husband's going to need to get on board with this. But if you guys paused all of your investing and you lived off of a very small portion of your 18 grand, what if you could throw 10 or 12 grand of this debt every month? Guess what? It would be gone in four months, five months. Done.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
That's the solution. You don't owe anybody anything. Y'all are rich. You don't need a consolidation loan, a HELOC. You don't need to borrow from retirement. You need to just start using your income to your advantage and using it to knock out the debt.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
You can out-earn your stupidity for a long time. How do we owe $60,000?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
But I think this is a relationship issue. I don't know that he has the same urgency as she does. He's not feeling the same way.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
That's going to be the tough part, not actually getting out of debt. Once you get them on board, this thing's gone. Hey, check out the rest of the show on the Ramsey Network app. Go get it in the App Store or click the link in the description to keep enjoying more of the show.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Please don't watch some Instagram reel or TikTok where they're like, just buy a piece of property for your kid while they're in college. It's a wealth hack. Here's what happens on the other side of that. Relationships are broken. There's no wealth hack here. Don't do it. Let your kid just live with seven roommates. That's how it should be in college. God bless. This is The Ramsey Show.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Welcome back to The Ramsey Show. I'm George Camel, joined by Dr. John Deloney, open phones at 888-825-5225. If you're ready to get your finances in order once and for all in 2025, you've got to join us January 23rd for our free live stream. It's called Take Control of Your Money. It's hosted by Dave Ramsey and Jade Warshaw, so you know it's going to be good.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
You're going to learn how to stop living paycheck to paycheck, how to free up more breathing room so you can pay off debt faster, Apply your money to what really matters and get ahead. Plus, Rachel Cruz and I will join for a Q&A at the end where you can ask your money questions live. Here's a bonus in case that wasn't of any interest to you.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
When you sign up, you'll be entered to win our cash giveaway. Five people will win four grand each. So go sign up for the free live stream by going to ramseysolutions.com slash live stream or click the link in the description if you're listening on YouTube or podcast. It's going to be a good time. Amanda is out in Kansas City up next. What's going on, Amanda?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay, so you're in this 4-5-6 land. We need 15% of our income going to retirement. That's the priority. We're going to put our own mask on first. Anything beyond that can start going to kids' college fund, beyond that toward extra on the mortgage. And so are you guys investing 15% of your household income right now?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay, so what is your household income?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay, so the take-home pay is about $43,000 a year. What is his gross income?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay. So 66 grand. So if we take that number, now we're going to go, okay, 15% of that's $9,900, which means every single month you guys should be investing $825. And here's the way to filter that. Use this strategy. Match beats Roth beats traditional. Does he have a match through his employer?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Great. And then beyond that, does he have a Roth option through his employer?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay, so you have a Roth IRA. You have a spousal IRA now as a non-working spouse. So you can contribute to that.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I would check with your advisor on if the actual account needs to be changed. But just legally, I want all the stay-at-home spouses to know that they still have an option to invest through an IRA as long as the other spouse has earned income. So it's kind of a cool hack there. But with your income, you're not going to get super far.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
I mean, you know, $9,900, that'll max out the IRA, one of them, and you'll get the match. You'll probably end there.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
It doesn't really matter, you know, 5,000 in one Roth. Let's say you put 5,000 in one, 5,000 in the other. If you put 10,000 into one, you're going to have the same rate of return, same exact dollar amount if you're invested the same way.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
So it doesn't really matter strategically, you know, if we're going to fill this one up versus this one. So beyond that, beyond the 15%, I like the idea of putting money away in the 529 account. And then you guys have a mortgage?
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay. My guess is you probably don't have a ton of extra wiggle room beyond investing and paying all your bills to then throw at the mortgage.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Yes. Okay. So my goal for you guys would be how do we get our income up so that we have margin to throw more at college and more toward the mortgage payment? That's your next goal. Once you get that 15 dialed in. And if you guys can't get to 15 and the bills are too tight, we need to cut some spending and increase income in order to get there.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Oh, yeah. No, there's definitely a seasonality to this. And a lot of people might go, hey, we're paying for daycare right now. We can't put extra on the mortgage. And that might be a reality for the next year. Three or four years.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Or we can't go on vacation, but we're going to fund retirement.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I think the employers would probably come back to her and say, well, here's why 90 was the starting salary over here, because they have more experience with this degree, more education. So the question, Ella, is does the employer know that these salaries are public? Are these out there, or is this like I talk to my coworkers?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Okay. So if this is a company-wide thing that salaries are public, I think you have more right to just bring it up and say, hey, when I was doing research, I found on their company site, here's the listed salaries. I'm curious what the gap is and what is the path to growth to get there? I think that's a much more, it's a less combative stance versus here's my counter.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I'm always watching. Always watching. A little George on your shoulder. A little George. She can get a little treat. Just don't go crazy. That's exactly right.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Okay, so those funds likely have companies that are against your beliefs, correct? Yes. But it's the options that you have. Yes. And are you investing 15% into those retirement accounts?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Okay. I would encourage you to use those tax-advantaged accounts first. It sounds like you don't need to be investing beyond retirement right now unless that 15% gets you maxing out every tax-advantaged account where you need to go to these non-retirement taxable brokerage accounts. Is that the case?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Is there a Roth version of that that they offer?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Okay. Well, the thing is with the Roth account, you're just using after-tax money. You don't get the deduction, but then it's going to grow tax-free and you'll withdraw it tax-free in retirement. And especially with your income, I would recommend you go with the Roth option. It's not worth it for the tax deduction when you see the growth and the tax-free withdrawals later on.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So in that regard, here's my question to you. Why is it okay to invest in the 401k in these funds, but not outside of the 401k? What's the difference?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Yeah, and I have looked into this. There are halal investing funds that are compliant. Have you looked into those? Do they all have high expense ratios?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Man, that is brutal. Well, here's the deal. There's going to have to be a compromise here. If this is part of your beliefs and this is something you feel really strongly about, you're just going to have to pay that expense ratio for the pleasure of following your values.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I mean, you're talking about investing in 400-something different companies, likely. That's going to get real complicated real fast.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I mean, you can do that. I still think the tax advantage of these retirement accounts outweighs all of this to where I would just choose the best options you have in the 401k. And it's the options you have. You have no control over that.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
And I would stick to those retirement accounts for the foreseeable future until you get to the point where you're maxing out your retirement accounts or you paid off your house and you want to increase your investing. But I wouldn't just mess with a taxable brokerage account and picking single stocks. I just wouldn't personally do it.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I'm telling you, you can do that. It's going to be a really complicated portfolio and get messy real quick. when you're trying to auto invest in 400, whatever the top companies are. And the less companies you have, the less diversified you are, which adds a lot of risk. So if you said, hey man, I'm gonna go in Tesla because it's compliant. Have you seen Tesla lately?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
This is why you wanna be diversified amongst hundreds and hundreds of companies. And so I don't know, I would talk to other folks who are in the same boat as you that are part of your faith community and find out what the options are and then just choose the best that you can. That's all you can do.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
And I hope that... Or you got to pay the additional... Or pay the extra, you know, if the normal expense ratio is under 1%, you're paying two and a half. Look, it's basically a tax you're paying...
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Yeah, so we can walk through, if you follow the Ramsey plan, here's what would happen. So you guys have crushed it, paying off 39K already. How much longer until you're completely debt-free, if you're doing this with Gazelle Intensity?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
And they're going to be more expensive because they're actively managed.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Okay, so another 18 months, you'll be debt-free. That'll put you at still about 40 years old?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Okay, let's say 41 once you have the emergency fund. How's that? Okay. If you started investing and you guys make $200,000, which is incredible, that's a great income, that would mean you're investing $30,000 a year once you're in baby step four. Are you tracking with me?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Today's question comes from Nate in Colorado. How do I break down annual slash semi-annual insurance payments like car insurance into a monthly budget so I'm ready when the bill comes due? Love this question. And it all comes down to this magical term, sinking fund. Oh, I love when you talk nerdy, George. I feel like this was an accidental talk nerdy to me. It's a bonus one for Ken.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So the idea here, it's just a strategic way to save money by setting aside a little bit each month so that you're ready when the time come. So for easy numbers, Ken, let's say there's an annual insurance bill for $1,200. Okay, $1,200. That's what I owe. Perfect. Every year. Every January, $1,200 comes out of your account. Okay. How do you budget for this? It's random. Right.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Well, you can create a sinking fund inside of every dollar and mark it as a sinking fund and say, I'm going to set aside $100 in every month's budget. Goes right into that. Okay. Into the sinking fund. I love it.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
now this is digital on every dollar right so you actually have to set aside this money in your checking account or in a savings account now how do i not screw that up because you know i struggle with detail so how do i do that's the thing for some people it's better if they transfer that money to a savings account and then set a reminder to transfer it back once january hits so they have the 1200 i feel like that's a good move for me would you agree
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Yes. You know me well. Some people like to just stack it up in their checking account. So $100 becomes $200 becomes $300. Come January, we're sitting at $1,200. It's just there. But again, you have to know that this is allocated for that piece of... What do you do? I know that you told me what I should do. What do you do?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I'm a fan of the savings account because I also like to have that money grow a little bit for me with some interest. And so I'll transfer it to savings, but I'm a nerd when it comes to reminders. And every dollar also has reminders you can set up inside of here.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Yes. So I have mine under insurance and taxes in my budget, and I have them all listed as sinking funds. You can see, right, I'm showing Ken. This is very exciting.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
You really are a nerd. I have auto and umbrella on one policy. I have property taxes. Then I have my wife's life insurance policy and my life insurance policy. Every single one of those has its own line item, and whatever it is, I divide it out, and then I have that as a sinking fund.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So I'm just trying to show you some math to show you what would happen. That's $2,500 a month, household going into retirement accounts. We're going to assume a 10% return. You have nothing in retirement right now?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
That actually has a whole category. Okay, good. Just hangouts with Ken, gifts for Ken. It's a little awkward that I saw that, but boy, am I excited. Well, hope you like a new pickleball paddle. I know you're wearing yours out.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
We have a great article on this, so I'm going to make sure that it is linked in the show notes. So hit the description and show notes of today's episode. And there's a great article on our website from Rachel Cruz called What is a Sinking Fund and How Do You Create One? It'll walk you through all of this.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
And I think it's really going to help everyone out there struggling with these things that aren't monthly bills.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
It was on the screen there. Oh, that was my screen.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
It wasn't a life goal, but I aspire to it now.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Some call it a gateway drug to financial freedom. That's what happens in the show notes.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I got indigestion after just hearing that. Survey says... We needed Tums. It's a no for me. It's a no for me. And here's why. It's partially the math on it of like, it sounds crazy because it is crazy that I'm going to use debt to pay off other debt to go into a different kind of debt and hopefully pay that debt off. And if I don't, I'll just get a consolidation loan to pay off the HELOC.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
That's not nothing. And I'm going to try to plug in, see if we can get it on the screen for you.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Do you see where this is going? This is where most people find themselves, just playing a shell game of debt. Okay. And instead, what I like to do, use that interest rate to make you so angry that you pay off that credit card so fast that it doesn't know what hit it and you never go into debt again. Okay. So how much is left on the credit card debt? $60,000 across several credit cards. Okay.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Okay. You say we. Is there a husband who's an accomplice to these financial crimes? Yeah. Okay. There is. good good good wow financial crimes i like to make it really add some drama to it george's well you guys i just feel like you guys work too hard to be this broke to go 60 grand in credit card debt instead of just saving up and paying for things you can what's your uh combined income
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So I'm just showing you 42 to 67, right? Let's say you work a little bit longer to catch up. That would still give you $3.3 million in that one account.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
They were like, come on, Jennifer. Yeah, this is the next question America's asking. Why does someone making $260,000 needing to fund their life on a credit card? Where is your actual income going? Oh, boy.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Okay, this is great. This is great. Think about this. Great. You guys could be debt free before the year's over. You're now bringing home, what, $15,000, $16,000 a month? She doesn't believe you, George. Tell her how.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Okay, we are currently in March, 2025 year of our Lord. Agree? Agree. Okay, so let's say nine months. $60,000 divided by nine months is $6,600. I love when you do that. So $6,600 out of your $16,000 needs to go to this debt to get done by December 31st. You with me? Okay. I'm with you. So now here's the deal. Can you guys live off $10,000 a month? Can you? I hope so.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I hope you guys can scrape by. Well, that's why, forget your mind. Don't rely on the human mind. It's fragile and feeble. The mind can tell you some crazy things. Not since the fall of man have we been able to trust the mind. And so here's what you do. Do a budget with your husband and say, this is what our paychecks came in as. These are all of our expenses.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
And if we follow this plan, we're going to have $7,000, $8,000, $9,000 we can throw at this credit card debt. Because here's the truth. I think you guys can do better than end of the year. I think six months this thing could be done. Whoa. Slow down, George. Jennifer's going to faint. Ten grand a month for six months. Get angry and aggressive about it.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Don't do a HELOC to try to move this over to give yourself some comfort to slow down your progress. Get so angry at the 25% APR on these cards to where you go, every single cent is going to go to these credit cards. Are you guys angry yet? I'm angry for you. We are angry.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Jennifer, you know what to do. You guys got this. You can do this, Jennifer. Get aggressive. No more debt. Debt is not the answer to your problems. You are the answer. Oh, wow. Thank you guys so much.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
And let's say even by 62. So that's a 20-year investment period. I'm calculating from zero, Christina. Zero dollars in any retirement account, 42 to 62, 2,500 bucks a month. That means you guys never get a raise over 20 years, which we all know is not going to be the case. You're still going to have 1.9 million.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Worth it for five bucks on Venmo to get Ken to say that about me. That's right.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So there was zero communication beforehand that, hey, you're behind on payments, you don't catch up, here's what's going to happen.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Okay. Well, I mean, they can come take your car at any time once your loan becomes delinquent. So it's not a giant shock, if I'm going to be honest, that you stop making payments. You don't own the car, they do. And so the good news is this just happened today?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Okay. So there's still some moves you can make to get this back, but we got to make sure that you have the money to do it. It sounds like you are beyond paycheck to paycheck. How much money do you have?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Okay. Now, was there any personal items in the car?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Okay, you can get your personal property back, and they can't charge you for recovering your stuff.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
And guess what? Only 30% of that was your contribution. The other 70% is just compound growth. Now, we can all look back and go, oh, my gosh, if I had started at 25, I could. Listen, the past is the past. Don't should all over yourself. That's right. Don't do it.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So the next step, other than getting your items, if you can do this, this is the best move, is to reinstate or pay off the loan. Obviously, you can't pay off the loan. But to reinstate it, you would have to pay the past due amount on the car plus any fees.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So now we know it's $3,000. And here's the deal. You usually have about 10 to 15 days to do this to catch up. Otherwise, they're going to sell your car at auction to get what they can for it, and then you'll owe the difference.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
And if they sell it at auction, it's not going to be market value. And so you likely will have a pretty big gap that you'll owe. So I'd rather you try to get this thing reinstated in the next 15 days, but that means you've got to come up with another $2,500 in 10 days. Sounds good.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Can you work overtime? Can you do side gigs? I mean, this is like we won't see the bed. We're going to be at work so much. Speaking of the bed, I might sell the bed. Yeah, can you sell anything in your life?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
What does your fiance think about all this? This would honestly give me some hesitation. As my provider gets his transportation taken away.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
That's it. You still owe the money. My guess is your credit's shot. And so if you went to a local credit union and said, hey, I need $2,500 to reinstate my repo, I don't know that they'd give it to you. That would be a last-ditch effort I would try.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
What do you mean? Well, that doesn't fix your repo problem. You're going to owe all of this money unless you get the car back, get current on payments, and then you're at least, the ball's in your court, you could sell it private party and get way more for it and get out from under it. But my guess is you're underwater on this car. You owe $16,000. What is the car worth?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Don't do it. Don't do it. But listen, at this speed and intensity in which you're going, I have no fear that you guys are going to be multimillionaires and retire with dignity. And then you can work because you want to and not because you have to. Yeah.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I'd cash out that PTO. Yeah, I would too. I wouldn't be taking any vacation time. That's the last thing you need to be doing right now.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
And what are your monthly bills to cover all your expenses, including the minimum payments on your debts?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So you're telling me you make $4,200 and you only have $2,000 in bills. That means there should be two grand left over every month. How did you get behind on payments?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Yeah, but where'd that money go? What were you spending it on?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I'll tell you how we find out. Go look at your bank statement. It's going to give you a little book about why you're broke. It's going to tell you exactly where your money went. Oh, Robert, man, this is not going to be fun. It's doable. It is.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
We'll get her another one later. Whoa, George. That sacrifice. Heat-seeking missile. I'm just saying. It's what I would do. You know what? You actually would do it.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Come on. There it is. Come on. Gosh, I love when a calculator can give you hope. It does. That's special right there. And you're good at it. It's Christina. You guys worked your tail off to make $200,000 a year, get out of this debt. And the good news is once you're out of this debt, you will never go back.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I'm not. So digging into all the numbers, let someone else figure it out.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Simple, and you can do it. And it really does walk you through it in a way where even Ken Coleman could do it if he so chose.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
All right. What do you say, George? Well, first of all, I love that Chris could have Googled this, but instead he called us. That really means a lot in a world that's going very digital, very AI. He went analog. He said, let's get some humans to answer this.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Just tell me. Just tell me. So here's the conversation, pre-tax versus after-tax. So when you think about this, here's the way that makes it easy. When you see something like a traditional IRA, traditional 401k, just think pre-tax. That's right. Another way to say that is tax deferred. And let's explain that. I'm deferring the taxes.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So that's a tax deferred account like a 401k. So what's the benefit of going with the Roth option? Like a Roth IRA, a Roth 401k, Roth 403b. If you see the word Roth, that means after tax. So in that case, think tax-free because I've already paid the taxes on that money up front. Uncle Sam doesn't need to get paid again. We're not going to double dip.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So the benefit of that is that when you take that money out in retirement, let's say there's $2 million in a Roth 401k. Imagine that's $2 million of net income. that you've already paid taxes on. That's what happens. So that's the beautiful benefit. Now, all things considered, if the tax rate stays exactly the same from right now until your retirement, it would be a wash.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So if you have a 401k that's traditional, you take money out, you're going to pay income taxes on that. But you got a tax deduction when you put the money in. Now with the Roth side, you already paid taxes on it up front. So you're losing out on that end because you're not getting a tax deduction, but you take the money out tax-free.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So the big discussion is, well, what if the tax rates change and we don't know? And so I don't like to wonder. I think tax rates will go up over time, not down. And so I'd rather pay the taxes now and just know that money is tax-free for the rest of my life. There are some other benefits of the Roth side. You can avoid required minimum distributions, RMDs.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
The reason they do this is because the government says, hey, Ken, you're 72. We got to get some of this tax money. You got to cash out your 401k to give us the money. But when you do the Roth side, Uncle Sam already got his cut. So there's no RMDs on that side. And if you leave an inheritance to your children, they're not going to have to pay taxes on that because it's already been paid.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So a lot of great benefits. We are Team Roth over here. But either way, I love this question because it means he's interested and he's investing.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Can you give us the breakdown of the 1.25 million?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Oh, all right. Well, you acted differently, so I don't know. All right. Hey, what's your household income? What was your worst year as a couple and best year?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I did inherit my parents' home, which is worth $230,000, but we inherited it after we became millionaires. Oh, very nice.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Nice. How about that? And you guys both working in those fields still?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Very nice. And you're doing that now full-time? Yes. Way to go. Love it. So what would you attribute this wealth to? How did you guys do it before you hit 60?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Love it. So how long have you guys been following the Ramsey plan now?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Yeah, you've been following some of the principles and you went, oh, I like what this guy has to say. I align with a lot of this. We should just go all in on this plan. Did you say Dave Twisted?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Well, you're proving it because our millionaire study found that one out of three millionaires out of the 10,000 of them never made six figures in their working career.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Yeah, a lot of life happened in between. And you guys cash flowed things. You just kept investing, got everything paid off and not having debt. I mean, that changes the net worth equation. Assets minus liabilities. If you got no liabilities, you're all in the green.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
And you heard the mindset shift. If you can get this early on, not caring what other people think is a superpower in today's culture.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
And yeah, they got it early. So the earlier you understand that, the less you care about what people think, the more you run your own race, building wealth at your pace instead of trying to run, get rich quick, impress your friends with the car you drive. Listen, nobody's impressed rolling up in the 09 Hyundai Sonata. It's worth $2,000. But who cares? Yeah. She said, it drives great.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I got no problems with it. I'd rather put my money elsewhere. She's not bragging about her car, but she's also sleeping really well at night. You know, I'll take that.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
There you go. A real baby steps millionaire. They're out there, folks. Are you the next one?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
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It’s Time To Cut Debt out of Your Life!
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The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Well, the thing is – I'll brainstorm next time we have a media chance. I think the visual helps to actually just see it in front of your eyes and go, here's the math that will overcome your emotion that you're feeling right now.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I'm a fourth year medical student. I'm going to graduate medical school in a couple months. And I have about $250,000 worth of student debt on me. And I wanted to know if you think it would be a good idea. You know, I need to move to a residency. I'm starting residency in July. I need to move. And I was wondering if you'd recommend buying a house instead of renting.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
What are you going to be making in residency? So I'm getting married, so my fiancé will be making about $150,000 a year, and I'll be making around $60,000 a year.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
No, that's the only debt we have. That's all our combined debt. Is the $250,000.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
It's kind of up in the air right now because they're federal loans and it's unclear if income-based repayment is going to be an option. But if let's say we did the 25-year repayment plan, I'd be around $2,000 a month. 25 years?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Yeah, that's true. I mean, the 10-year repayment plan is, I think, $3,300.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Okay. Well, here's the deal. Are you new to the program, new to the show?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I've been listening for the past couple of weeks, so relatively new, yes.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Awesome. So there's a time and place where we recommend buying a house and only then, and that's when you're completely debt-free with an emergency fund and a solid down payment. And even then, the parameter would be 25% of your take-home pay going toward that mortgage on a 15-year fixed-rate loan.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So would I recommend a guy who has a quarter million in debt go into more debt and become a homeowner as he becomes a newlywed and leaves med school into residency? No.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
But the good news is you guys are going to be making great money, and the trajectory is so high that you're going to be a homeowner before you know it. But I would rent for a few years. Think about this. Could you, out of the 210, could you throw $100,000 of that, live like you're broke, throw it at the student loan debt?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
If you rented cheaply as newlyweds, this is the greatest phase because nobody cares that you're broke when you're newlyweds. And if you do that, you'll be debt-free in two and a half years. Without your income going up. See, that's exciting, George. So then a year later, you have an emergency fund and a down payment.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So it's a five-year training program, and starting around $400 to $450.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I mean, the only reason I think about the 25-year plan is just to lower interest payments. No, I know why you did it.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So here's the deal. All of your friends around you are going to think you're crazy for aggressively paying off your student loans. They're going to go, hey, I'm just going to die with this, or hey, I'm going to make great money one day, not really worried about the loans. I want to live my life. I've been in med school for too long. I'm a resident. I'm a doc now. I want to get a nice house.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I want to get a nice car. You're going to see that all around you, this lifestyle creep that happens in the medical world. And let me tell you, my whole family's in the medical world. And so this happens. And if you're not careful, you will be like the other doctors, broke, stressed out, going, man, I make $400,000. I don't know where any of it goes. It just disappears every single month.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Or you could go against the grain, aggressively pay off your debt, buy a house, pay that off aggressively, and then be making half a million dollar household income with zero payments. And when you're burnt out one day, you just retire and go, I'm done. I'm going to do something else. I'm going to go volunteer. I'm going to go do some overseas dock work.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Well, you heard her say it at the end. At the root of all this was just shame and guilt. It was, oh my gosh, look at the mess we're in. We're never going to be able to retire. Of course you screwed it up. You're almost 40 and you still don't have your life together. You don't own a home. You should be ashamed of yourself. And then we go, let's look at the reality of what we're doing.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
And that, I think, will free you if you follow that plan instead of do what everyone else is doing. And I understand that's controversial.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Aggressively, I'm going to use that four months to get aggressive to build yourself a financial foundation.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Yeah, I'd get rid of the debt, get an emergency fund. Once this four months is up, you've got a great financial foundation. You need to find like a career. And so I'm going to give you Ken's book, if that's okay with Ken. It is.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I might as well have given her a Broyhill dinette set at that point. That's the excitement she had. I loved it.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
In the debt snowball. I mean, you heard it. 18 to 24 months is the average for people to get out of debt using the Ramsey plan, using the debt snowball. Two years is going to happen. I like that, George. 24 months of hustle for a lifetime of freedom. For 24 years of freedom.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Are you willing to trade that? That's the question. Good question. It's not easy. Most people would rather live in mediocrity for 24 years. Wow. Not Christina.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
I thought Dog the Bounty Hunter and the SWAT team was about to show up.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So nothing is going to happen to you, Kyle, at all. You can close the account completely on top of cutting it up. You don't have a balance on it, correct?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Yeah, you're not going to need it. Your mortgage will continue to keep up a healthy score. And so if you ever needed to refinance or do anything else, you can do that just fine. Even once you paid off the house without a credit score, you're going to be fine. And so either way, there's no reason to keep around this card. I know it feels like a security blanket at this point.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
You've had it so long and credit card companies are so good at marketing to you to where you think I need them. They're doing me a solid by being there for me in my time of need. But Kyle, you don't need them anymore. You have money.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
That's unfortunate. Is it like titanium, or can you bend it and break it?
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Way to go. That's why you don't need these credit card companies.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
And so I'd cut it up, get rid of the account, and move on with my life.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Only if you had paid off the mortgage, but in that case, you wouldn't have nothing to refinance.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
So your mortgage is a debt. And so it's reported on your credit report. It will create a credit score. It will keep that credit score until you pay off the mortgage. And then six to 12 months later, after you pay off the mortgage, your credit score will disappear for good and you won't need debt anymore. So there's the good news. There it is. That was a fun call. I enjoyed that.
The Ramsey Show
It’s Time To Cut Debt out of Your Life!
Yeah, I can't wait to call Capital One and tell them, Kyle told me he'd cut up his card.
The Ramsey Show
The Key to Financial Success: Slow and Steady
True story. Skinny jeans will do that. That's right. All right. Mary's up first in Miami. What's going on, Mary? How can we help? Uh-oh.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Now swap that with drive. Drive like no one else. Drive the crappy car. So later, you can drive like no one else.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Yeah. I mean, you are spot on in our parameters. Here it is. If all the things with wheels, motors, and your life adds up to more than half of your annual income, you're off track. That's simply too much. You are not even close to that. And again, like ratios, Dave buying a nice car is like me buying a biscuit. And so you have to understand the ratios look different.
The Ramsey Show
The Key to Financial Success: Slow and Steady
When you have a very high income, your net worth is going to continually grow. You're 27. You got another 30, 40 years of working for you and investing to build wealth. And so in the meantime, you have to do something called enjoying life. And I'm scared because you're kind of like me. I'm wired to go. But if we didn't eat this month, we could invest that in a good growth stock mutual fund.
The Ramsey Show
The Key to Financial Success: Slow and Steady
It can make 12% over. You can't live your life like that. You got to let go.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Yeah. I'll do half butter, half jelly. Best of both worlds. How about you? Oh, I like the jam. A lot of jam. Jam's your jam. I respect that. Well, glad we could at least help Landon get over his emotions. This is The Ramsey Show.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Welcome back to The Ramsey Show. I'm George Camel here with Ken Coleman. Taking your calls at 888-825-5225. You know, we've got a phone number to call, of course, and we get a lot of voicemails on that. And so occasionally we like to do a little segment called Sorry We Missed Your Call where we listen to the voicemail and respond without having to talk to them. So let's see what we have today.
The Ramsey Show
The Key to Financial Success: Slow and Steady
All right. Good question. My first thought, Ken, was you don't need knowledge. You need patience. This guy's about to lose his butt. Yeah.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Why? Why the urgency and the desperation to turn 30 into 300? What is this get-rich-quick mentality? Where is it coming from? Social media. Likely friends, social media. I saw a guy who posted that he does day trading, and if I buy his course, he'll show me how to 10x my money, guaranteed. It's the microwave mentality. You got to be a crockpot in a world full of microwaves.
The Ramsey Show
The Key to Financial Success: Slow and Steady
And this is not just my opinion. One of my favorite proverbs from the Bible, Ken, wealth gained hastily will dwindle, but whoever gathers little by little will increase it. It's ancient wisdom. You gain wealth fast, you're going to lose it even faster. And so you're going to fall on your face trying to do this. And I want you to build wealth.
The Ramsey Show
The Key to Financial Success: Slow and Steady
And I popped it into my investment calculator just to kind of get a lay of the land. Instead of one year, if you had 30 grand, you're 30... I don't know, if you're in your mid-30s, let's say, 30 grand, you're adding 1,500 a month, 10% rate of return on average.
The Ramsey Show
The Key to Financial Success: Slow and Steady
It'll take you probably eight or nine years to get to 300 grand, and I'd much rather you gain it slow and keep it than try to risk it all by day trading or doing options trading and lose it all. So that's my take. That's the Ramsey plan is let's get rich slow. Let's build wealth the right way and not be in a hurry to do it. If you want to make more money, go increase your income.
The Ramsey Show
The Key to Financial Success: Slow and Steady
You can increase your savings rate, but trying to gamble this away is not the move.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Go read a proverb a day. You can read it in a whole month if you just do that, and it will give you the best financial wisdom money can buy. No course necessary. You can read it online for free. Download the Bible app. There you go. But I'm telling you, there's just some wisdom in being the tortoise instead of the hare. We know how that story plays out. Fortis wins every time. Every time.
The Ramsey Show
The Key to Financial Success: Slow and Steady
So thanks for the question, though. Casey is up next in Lexington, Kentucky. What's going on, Casey?
The Ramsey Show
The Key to Financial Success: Slow and Steady
From the Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by number one bestselling author, Mr. Ken Coleman. And we're taking your calls at 888-825-5225. We'll help you with your money, making more of it. Keeping more of it, spending less, all of the issues.
The Ramsey Show
The Key to Financial Success: Slow and Steady
So you're saving up for a down payment. That would be your next goal after Baby Step 3. We call that Baby Step 3B, where before you start investing, which is Baby Step 4, you just go real hard at getting that down payment set in under two years. Is that realistic for you guys?
The Ramsey Show
The Key to Financial Success: Slow and Steady
One more reason to not go start another one. We don't have this one squared away. But yeah, in that case, what you could do once you finish baby step three, just go ahead and begin investing 15% of your household income into retirement plans. And if he's self-employed, there's still a lot of options out there. There's always a Roth IRA, which you can do outside of employment. There's solo 401ks.
The Ramsey Show
The Key to Financial Success: Slow and Steady
I imagine his situation might be different. But there's a lot of opportunity to invest. And then on top of that, save up for that down payment. And once you guys have a little more stability in your life and you've got that foundation, now we can figure out what it's going to take to start this business. And I hope you do it with cash and just move slow.
The Ramsey Show
The Key to Financial Success: Slow and Steady
I'd figure out what is a reasonable goal for this business once we're in the house. Okay, what's it going to take to start this business? And then figure out what that number is, and how do we start slow if it's an overwhelming number? We can't afford a million-dollar... Are you working?
The Ramsey Show
The Key to Financial Success: Slow and Steady
I'm confused. You bought a house sight unseen?
The Ramsey Show
The Key to Financial Success: Slow and Steady
We've got to delay the business stream and get the income as a crisis at this point. So he either needs to opt out of this restaurant business and go get a different job, but now is not the time to start a business or buy a house. So there's option C. We've got to figure out the income first. Thanks for the call, Casey. More of your calls coming up. 888-825-5225. This is The Ramsey Show.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Oh, so the house was illegally built on that land in the first place with no permits, and then that person sold it to you. How did you even go through the closing process? Was it just done through the seller?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Welcome back to The Ramsey Show. I'm George Kamala, joined by Ken Coleman. Open phones at 888-825-5225. It's time for our Ramsey Show question of the day, brought to you by YRefi. YRefi refinances defaulted private student loans and builds a custom loan based on your ability to pay. Now, private student loans are different than federal student loans like Sallie Mae.
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The Key to Financial Success: Slow and Steady
So if you want to learn more about this custom refinancing option and the lump sum payoff option you could qualify for after 24 months, go to yrefi.com slash Ramsey. That's Y-R-E-F-Y dot com slash Ramsey. May not be available in all states.
The Ramsey Show
The Key to Financial Success: Slow and Steady
You need 10 to 12 times your income. And so if you're making 80K combined, maybe that means he's making 40 or 50. I don't know. But that would be closer to half a million, 600,000. And on top of that, your whole life policy sucks. This is just making the salesperson a lot of money, and it's not helping you out by paying $200 a month.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Very little of that going to the actual policy, most of that into their pockets, some of it into a cash value portion growing at an abysmal rate. And so I would surrender this policy after you get term life in place. The next question, my fear is if he gets term life, his health will decline later in life. That's how it generally works. As you get older, you get closer to something called death.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Getting term life won't change that. And here's the deal. Term life is for a specific term, 15 years, 20 years, 25 years. But if you follow the Ramsey baby steps, by the time that policy lapses and it's over, you will be self-insured because you've been following the plan for 20 years, investing for 20 years, you paid off your house 20 years later.
The Ramsey Show
The Key to Financial Success: Slow and Steady
And so there's no fear that it's going to end and now you're out of the money. The goal is to get self-insured at that point.
The Ramsey Show
The Key to Financial Success: Slow and Steady
I mean, aren't there titles to be cleared? I mean, I'm just so confused how nobody caught this.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Whole life is a ripoff. Generally, term life is a fraction of the price, and even at his age, it's going to be way more affordable. So jump on his inter.com or give him a call, 800-356-4282, and get term life in place today. If you're listening, whoever you are out there listening, if you don't have term life in place today, do it. If anyone relies on your income, a spouse—
The Ramsey Show
The Key to Financial Success: Slow and Steady
kids, family, whoever, you need to get this in place. It's not a matter of if, but when. You will eventually pass. I don't want to be the one to break it to you, and term life's not going to cause that to change. It's just going to give your family peace of mind.
The Ramsey Show
The Key to Financial Success: Slow and Steady
She is covered. And stay-at-home spouses, you need a term life policy as well, because it would take Mary Poppins to replace all the things you do. There you go. There's my pitch for the day, Ken. I had to say it. I thought that was well played.
The Ramsey Show
The Key to Financial Success: Slow and Steady
All right, on to Ashley in Austin, Texas. What's going on, Ashley?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Are you guys doing any investing right now?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Okay. So that's just deductions, meaning like taxes, maybe health insurance, something like that?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Okay. So $4,400 a month, and you're trying to tackle... I mean, so we're talking about a take-home pay of roughly $50,000 a year, and you're trying to tackle $62,000. And so you're going to need more income. You can slash expenses all you want. That will help. But income is the biggest factor here.
The Ramsey Show
The Key to Financial Success: Slow and Steady
What did you pay for it? $259. And you got a loan on that?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Okay. So that's about, I mean, that's 40% of your income. It's definitely high. That's hurting your ability to do this. I don't think we're at a fire moment where we have to go sell the house tomorrow. No. I would work on your income. And if nothing changes a year from now with your income, you might want to downsize to get out of this mess instead of it taking five years.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Because normally 18 to 24 months, that's how long it takes people to get out of debt. Some longer if they got a big hole and not a big shovel. and some less. But for you guys, we need to see this income grow to about six figures to get this knocked out in two years or less.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Does that make sense? Yeah. We need to expand the gap here, the margin between our income and our expenses, and I think both levers are going to be necessary. Yeah. That puts this hour of The Ramsey Show in the books. Thank you to my co-host Ken Coleman, everyone in the booth keeping the show afloat, and you, America, will be back before you know it.
The Ramsey Show
The Key to Financial Success: Slow and Steady
So you put nothing down with the USDA loan?
The Ramsey Show
The Key to Financial Success: Slow and Steady
From Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Camel, joined by Ken Coleman, host of the new show, Front Row Seat with Ken Coleman. Be sure to check that out on the Ramsey Network and on YouTube and podcast. We're taking your calls at 888-825-5225.
The Ramsey Show
The Key to Financial Success: Slow and Steady
You jump in, we'll talk about your life and your money. Brett's going to kick us off this hour in Sacramento. How can we help, Brett?
The Ramsey Show
The Key to Financial Success: Slow and Steady
It's an easy choice for me. I'm going broker all the time because here's the deal. With a captive agent, let's say your buddy who works for, you know, rhymes with State Farm, I don't know, something like that. If they work for one of these companies, they can only sell insurance from that company. Makes sense, right?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Whereas a broker isn't actually selling you the policy. They're just connecting you and shopping the policies across the board from the top companies to get you the best deal. Does that make sense? So I don't fall for the marketing of these commercials. I want to know who's giving me the coverage I need at the best price. That's all it is.
The Ramsey Show
The Key to Financial Success: Slow and Steady
What kind of insurance are you looking at?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Love it. Well, you're doing all the right things. Yeah. I mean, to me, it's all about price. I mean, you want to obviously go with a top rated company and, you know, we have all kinds of connections for you. If you jump on ramseysolutions.com and click on Trusted Pros, we can connect you to the right insurance brokers in any area from home, auto, health, whatever it is to help you sort that out.
The Ramsey Show
The Key to Financial Success: Slow and Steady
And that's something I do. And I actually reshop every year. I contact my insurance broker and I say, hey, can you reshop to make sure I'm still getting the best deal? Right. And they'll either say, yep, you're still the best deal. I just reshopped it. Or actually, we could save you a little bit of money here if we switch this policy over here.
The Ramsey Show
The Key to Financial Success: Slow and Steady
And so having someone do that work for me saves time, hassle, and money. Anything to add, Ken? Or did I nail it?
The Ramsey Show
The Key to Financial Success: Slow and Steady
You just nailed all three. I think that's my encore career, Ken. If this doesn't work out, I'm hoping someone will get me to be some kind of character.
The Ramsey Show
The Key to Financial Success: Slow and Steady
I think that's part of what makes me... You're definitely not intimidating.
The Ramsey Show
The Key to Financial Success: Slow and Steady
A guy walked up to me in Costco and he just said, hey, where's the paper towels? And I was aghast. I was like, does he think I work here? What were you wearing? Just normal. I mean, an outfit like this. I didn't look like I worked at Costco. He apparently thought you did. Well, of course, I knew where the paper towels were.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Yeah. Okay. And how much debt do you have?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Sure. Yeah, go from smallest to largest in the balances.
The Ramsey Show
The Key to Financial Success: Slow and Steady
So what's the issue here? You get this $5,300, you know, I don't know, is it an inheritance settlement?
The Ramsey Show
The Key to Financial Success: Slow and Steady
So you'll knock out your first four debts with that. The smallest credit card, the care credit, the dental, the other credit, the Discover card, all those get knocked out instantly. And then we start chipping away at the remaining consolidation loan, right?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Well, I misdiagnosed that one, George. Yeah, you're underwater on the car, so you need the difference in cash or a loan from your credit union to make up the difference, to get out of this. Is that what you're saying?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Because I feel like we need a new car for these two babies. You could use this money to get out of this car situation with the consolidation loan.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Yeah, you guys did a lot more money coming in, Brooke. And so I would hang on until baby's here and you and baby are home safe before I let go of this five grand, because this might be the safety net you need for any medical bills that come up. But once that's done, I would absolutely use this money to get out of this car situation, then hit the debt snowball and the remaining debts.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Thanks for the call. This is The Ramsey Show.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Was the inspector friends with the builder?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Welcome back to The Ramsey Show. I'm George Camel, joined by Ken Coleman, open phones at 888-825-5225. Hey, you do not want to miss our two-night virtual event. It's called Investing Essentials, hosted by Dave Ramsey and me, George Camel. Investing can be overwhelming, it can be confusing, and it's not something you can get from a 60-second social media post.
The Ramsey Show
The Key to Financial Success: Slow and Steady
So at this virtual event, we're going to walk you through how to maximize your retirement plans, how to choose mutual funds, how to get the most out of your money, how to invest with confidence. Plus, it's the only place where you're going to hear Dave Ramsey unpack his personal playbook on real estate investing, what to look for, the calculations.
The Ramsey Show
The Key to Financial Success: Slow and Steady
I mean, we are going to Nerdville and back and you're going to love it. And Dave, I mean, famously is a real estate mogul. He has hundreds of millions in property investments, all in cash, and he wants to teach you how to build wealth the right way. So you're going to get clarity you need. Join us, Investing Essentials. It's happening March 4th and 5th. It's virtual. You can join from anywhere.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Tickets start at $199, and it's worth every penny to get four or five hours of Dave coaching you. That's pretty incredible. Get yours today, ramsaysolutions.com slash events, or click the link in the show notes if you're tuning in on podcast or YouTube. Sarah's up next in Rochester, New York. How can we help, Sarah?
The Ramsey Show
The Key to Financial Success: Slow and Steady
So your average take-home pay, I mean, is it $10,000 a month, $8,000 a month?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Let me make this clear. There are no vacations in your near future.
The Ramsey Show
The Key to Financial Success: Slow and Steady
You need to be going to work. You don't need to be staying home at all.
The Ramsey Show
The Key to Financial Success: Slow and Steady
No, but on a bad month, let's say it's 10 grand. So we know that. On a great month, it might be 15 grand, right?
The Ramsey Show
The Key to Financial Success: Slow and Steady
So it's not zero. So we can't go, well, we can't do a budget because it's irregular. What you guys need to do is cut up the cards yesterday, freeze your credit completely, close all the accounts, start doing the debt snowball, and sell everything you can in sight while also working twice as much as you are.
The Ramsey Show
The Key to Financial Success: Slow and Steady
You can call every creditor and say, hey, listen, we're trying to pay you back. This interest is killing us. Would you be willing to lower it?
The Ramsey Show
The Key to Financial Success: Slow and Steady
What's the motorcycle payment every month? 360. Boom. So tomorrow you could free up 360 bucks if you get rid of that thing.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Is Hubs willing to sell this or is he fighting it? You said like it was a sore spot, like it was not going to go away.
The Ramsey Show
The Key to Financial Success: Slow and Steady
And don't you think the stress of having to work this hard and pay off all this debt is not worth the joy of the motorcycle that we can go buy once we're debt-free?
The Ramsey Show
The Key to Financial Success: Slow and Steady
I mean, this is like a child who's unwilling to let go of their toy.
The Ramsey Show
The Key to Financial Success: Slow and Steady
It's not grandpappies from World War II. This isn't sentimental.
The Ramsey Show
The Key to Financial Success: Slow and Steady
So I just feel like we need to make some sacrifices here. And you're looking for solutions that are shortcuts that don't involve us having to change our lifestyle. It's been out of control for so long that you guys don't know another life. And that's why cutting off all the, you can't go into credit card debt if you don't have a credit card. That's what I've found.
The Ramsey Show
The Key to Financial Success: Slow and Steady
That's the best way to address the issue. So cutting up these cards, getting over the motorcycle, you need some instant relief right now. And it's not going to come from a debt repayment company or another consolidation loan or adding more debt. You've got to start cutting. And so you got to have a come to Jesus moment with your husband tonight and say, this is not okay.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Why are we living like this? We make $180,000. How are we in crippling debt? Right. And so is your husband on board for this? It sounds like you're wanting to make a change and you're going, hey, it's a hard sell because he's a hard worker. I don't want to make him sacrifice anymore.
The Ramsey Show
The Key to Financial Success: Slow and Steady
And Ken is the man when it comes to, how do I make more income? Because that is my greatest wealth building tool. Maybe that's switching jobs. Mow money. New career path. There we go. Some short-term side hustles, whatever it is. We want to help you make the most of your money. Happy Friday, sir. You as well.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Right. Happiness is not in stuff. You can find happiness in financial peace because of a lack of stress, but it's not going to come from riding that motorcycle while you're in crippling debt, stressed out, affecting your marriage and your financial future. I'm going to send you guys Financial Peace University because I want to see you win.
The Ramsey Show
The Key to Financial Success: Slow and Steady
I think you need some fire under your butt, and I think Dave and crew can help if you watch all nine lessons. So hang on the lines here. We're going to send you guys Financial Peace University as a Valentine's gift on us. This is The Ramsey Show.
The Ramsey Show
The Key to Financial Success: Slow and Steady
People ask me all the time, George, what's your number one money saving hack? I'm glad you asked. Nothing makes me happier than helping another frugal friend. So here's the hack. Get on a budget. Seriously. Get on a budget. How are you supposed to save money if you don't know how much you're spending in the first place? And that's what makes the EveryDollar budgeting app a game changer.
The Ramsey Show
The Key to Financial Success: Slow and Steady
With EveryDollar, you'll get a clear picture of your spending. And from there, it's easy to see where you can get more intentional, cut back, and save more money. So how much money are we talking here? Well, the average EveryDollar budgeter frees up $395 in their first budget. That's the hack. And if you ask me, I think you're way above average and you'll save even more.
The Ramsey Show
The Key to Financial Success: Slow and Steady
So what are you doing still listening to me? Go download the EveryDollar app for free and start saving more money right now. Welcome back to The Ramsey Show. I'm George Campbell, joined by Ken Coleman. And we're also joined by a lovely couple on the debt-free stage. It's Brian and Taylor. How are you guys doing? Good. You?
The Ramsey Show
The Key to Financial Success: Slow and Steady
I mean, you guys are better than you deserve today on the debt-free stage. Where are you from? Greeley, Colorado. Wonderful. How much do you guys pay off?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Wow, that's incredible. So how many months is that? Do the math with me here. Almost, almost four years?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Was the big one, like you really went gun ho.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Okay, and what's the range of income during that time?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Cool. All right. Very nice. So tell us about this $102,000. What kind of debt was this?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Reverse intimidation. She just flipped it on me.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Am I missing anything? No, this is the Ken Coleman Esquire energy you need, Mary.
The Ramsey Show
The Key to Financial Success: Slow and Steady
You're doing great. Wow. So where are you guys at now?
The Ramsey Show
The Key to Financial Success: Slow and Steady
And on track to become Baby Steps millionaires by retirement. Yeah. Even after all of that. So what encouragement to anyone listening who's going, wait, it's too late for me. Well, we have Brian and Taylor here telling you that even if you get a, quote, late start in your 50s, you can still turn this around and retire with dignity. Yeah. What a beautiful picture.
The Ramsey Show
The Key to Financial Success: Slow and Steady
I'd be taking that builder to the cleaners with a scary attorney right now.
The Ramsey Show
The Key to Financial Success: Slow and Steady
And Brian, you were the reluctant spouse. You heard Ramsey Way and all you heard was Mary Kay and not the sex, right? So what got you to actually make that turn and go, all right, fine, I'll do this?
The Ramsey Show
The Key to Financial Success: Slow and Steady
So was it really that kind of like you didn't want to look in your own mirror and go, oh, I'm part of this problem. So was that why you were shutting down?
The Ramsey Show
The Key to Financial Success: Slow and Steady
So you had to let go of your own baggage and shame and go, all right, I'm part of this, but I got to do something about it. If I'm the problem, I'm the solution.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Okay, so what's the ramifications here of you living in a home that has no record? Are they going to evict you? I assume you can't even live in it.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Absolutely. What's next for you guys? You're on Baby Step 3, and now we're going to be investing for the future. Has your financial advisor been cheering you on? Any other cheerleaders in your life?
The Ramsey Show
The Key to Financial Success: Slow and Steady
What's the 30-second encouragement you would give to someone who might be where you guys were in your 50s going, gosh, we're $100,000 in consumer debt. We're so far behind on retirement. We're never going to be able to do this.
The Ramsey Show
The Key to Financial Success: Slow and Steady
That's incredible. Well, hey, we've got a little parting gift for you for coming by. We've got two one-year subscriptions to EveryDollar. That was the tool that helped you after three months of struggling through it, figuring it out. It's what helped you guys get debt-free. So feel free to use that or pass it on to someone to get their journey started. We are so pumped for you guys.
The Ramsey Show
The Key to Financial Success: Slow and Steady
All right, you ready to do this? Yes. We've got Brian and Taylor from the Denver, Colorado area. $102,000 paid off. Credit cards, student loans, car loans, it's all gone. They did it in under 40 years with the last chunk getting knocked out fast in 15 months, making $140,000 to $158,000. Count it down. Let's hear a debt-free scream.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Are you renting with the same family? Okay. So you're renting right now, but you still make payments. Have you talked to the lender that they basically have bad collateral here?
The Ramsey Show
The Key to Financial Success: Slow and Steady
There can't be much money in that matchmaking.
The Ramsey Show
The Key to Financial Success: Slow and Steady
We love to see it. This is The Ramsey Show.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Welcome back to The Ramsey Show. I'm George Campbell, joined by Ken Coleman. Hey, this is the last segment of this hour, and if you want to check the rest of the show out, you've got to get the Ramsey Network app. It's the only place to get full episodes of The Ramsey Show. You can download the Ramsey Network app for free.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Just use the link in the show notes or just search Ramsey Network in your app store. For everyone listening on radio, stay tuned. The show will continue as programmed, but everyone else, don't miss out. It's happening in the app. Michael in New York is up next. What's going on, Michael? Hey, how are you? Thank you for taking my call.
The Ramsey Show
The Key to Financial Success: Slow and Steady
They don't care. You still owe us the payment every single month.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Okay, so what is your household income? It's about $120,000. Awesome. And you said you guys are debt-free. Do you have an emergency fund and savings outside of the $45,000, or is that kind of everything?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Okay, so that's all the money to your name that's liquid. And what would a month of expenses look like for you guys right now as a married couple? Have you kind of figured out finances yet?
The Ramsey Show
The Key to Financial Success: Slow and Steady
And you can't sell it. I think your only way out of this, and again, I'm not an attorney. This is for your attorney to deal with. You got to sue this builder to get your money back.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Does that include like food, insurance, everything?
The Ramsey Show
The Key to Financial Success: Slow and Steady
So let's call it four grand is one month of expenses. Yeah. And we recommend three to six months of expenses in a fully funded emergency fund. So for you guys, we can call that 15 or 20 grand. So let's say you kept 20 grand aside as your emergency fund, label it emergency fund, do not touch it unless there's a true emergency. And then the other 25, now we're talking.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Now we can use this money towards something. I'm not sure if it should go toward investments yet. Let's dig in a little more. Are you guys renting right now?
The Ramsey Show
The Key to Financial Success: Slow and Steady
What are you doing? Hit me again. I'm sorry. I was thinking about- So 18 grand a year.
The Ramsey Show
The Key to Financial Success: Slow and Steady
So basically 1,500 bucks a month. From your future income should be going toward investing. So that 20K might become a starter down payment fund for you guys. That's what I personally would do.
The Ramsey Show
The Key to Financial Success: Slow and Steady
I would keep, if this is a shorter term goal, let's say in the next few years, I would just keep it in a high yield savings account. I would not keep it in cash. You got to at least keep up with inflation and let this money grow for you. And so a high yield savings account is the place I would store any short term savings goals, any emergency fund. Yep.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Absolutely. Yeah, you can check out Laurel Road is one that has been a great partner for my YouTube channel, laurelroad.com slash george. And then we've got Fairwinds as well. That's been a great partner on the Ramsey Show. They have a great checking and savings bundle. So there's a lot of options out there. And here's what I wouldn't do. I wouldn't go... rate climbing.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Get rid of your current attorney. But do not file bankruptcy. That's not the solution. The solution is to take this builder to court, sue them, potentially get the inspector involved because they clearly can't do their job well, and then collect on whatever the settlement is. I wish I had better news.
The Ramsey Show
The Key to Financial Success: Slow and Steady
People will try to go, well, I can get 3.8% over here, but now it's three. The rates are changing all the time and they've been going down. And so don't worry as much about that. Just don't leave it in a boring old checking account or a regular traditional savings account. That's the key. And then beyond that, start investing in your retirement plans you have through your employer.
The Ramsey Show
The Key to Financial Success: Slow and Steady
You got a 401k or something equivalent? No, unfortunately my employer doesn't give me that. Okay. You're not self-employed though. Your employer just doesn't have any retirement options?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Okay. So your next best bet would be something called an IRA. And that's something you can open without having an employer. As long as you have earned income, you can open up an IRA. And there's a Roth version. All that means is you're paying the taxes now. You're not going to get a deduction come tax time, but that money will then grow tax-free and you can withdraw it tax-free come retirement.
The Ramsey Show
The Key to Financial Success: Slow and Steady
So you could fund that. It's about $7,000 a year is the max contribution for this year. And so you and your wife could both do one of those, and that would get you real close to that 15% goal. Right.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Absolutely. And I'm going to send you as a newlywed gift a copy of my book, Breaking Free from Broke, that walks you through all of this. Even on the wealth side, there's an investment traps chapter, a wealth as patience chapter that will really help you guys navigate all of this. And I think that'll be a great start. 21 to be making six figures debt-free?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Which means $20,000 is not a suitable down payment.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Absolutely. I love it. Great call, Michael. Thank you. Paige is in Oklahoma City up next. How can we help, Paige?
The Ramsey Show
The Key to Financial Success: Slow and Steady
I mean, we have no power in this, but I'm going to tell you, don't do anything drastic like bankruptcy at this point. You're just going to have to float the payment until this gets solved, which would light a fire under me.
The Ramsey Show
The Key to Financial Success: Slow and Steady
So you could throw the proceeds of the home sale, if you did sell it, toward the mortgage, knocking it basically in half? Yes. That's definitely, I mean, the fact that you're even calling about this makes me think you don't really want to be in the landlord business.
The Ramsey Show
The Key to Financial Success: Slow and Steady
And what's your household income age? Yeah.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Okay. So losing $10,000 in rental income is not going to make or break your budget. Right. It was a small part of your income anyway.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Good luck. This is an exciting time. I assume you agree with that. I got out in front of the money guy. You know, Dave loves real estate. He'd probably just hang on to it because he loves real estate and he's got lots of tenants and lots of properties. But it's not a like everyone needs to own property and everyone needs to have investment property.
The Ramsey Show
The Key to Financial Success: Slow and Steady
You could take that $180,000, put it in an investment account and you can make the same amount you're making from your renter just without the hassle. And so there's no one way to do this.
The Ramsey Show
The Key to Financial Success: Slow and Steady
And I like her plan of getting rid of the primary mortgage, freeing up the mortgage payment, investing that. And then later on, they can always save up and pay for an investment property with cash. Yeah. Great question. All right. That puts this hour of The Ramsey Show in the books. If you want to catch more of it, we're still sticking around. You got to go to the Ramsey Network app to get it.
The Ramsey Show
The Key to Financial Success: Slow and Steady
We'll see you over there. This is The Ramsey Show.
The Ramsey Show
The Key to Financial Success: Slow and Steady
I got a headache. Thanks for sharing, Mary. I hope it works out for you guys. This is The Ramsey Show.
The Ramsey Show
The Key to Financial Success: Slow and Steady
welcome back to the ramsey show i'm george camel joined by ken coleman open phones at 888-825-5225 if you guys want to take control of your money this year there's no better way to do that than by making a budget it sounds simple it might sound overwhelming i don't know but here's the deal we created an app to make it easier than ever it's called every dollar you can go download it in the app store for free or go to every dollar
The Ramsey Show
The Key to Financial Success: Slow and Steady
It's a dark chocolate. If I'm going to be really honest, Ken, I just came down from our event center where we have our money and marriage event, and I'm looking out at some lovely couples who came to join us.
The Ramsey Show
The Key to Financial Success: Slow and Steady
dot com to get started. And it will give you such peace of mind to look in that financial mirror and just know the reality of your situation and how to move forward. And that's exactly what this app is going to do for you. Be sure to check it out. Landon is up next in Memphis. What's going on, Landon?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Well, let's talk about what you spent on it.
The Ramsey Show
The Key to Financial Success: Slow and Steady
Well, there's some ratios for you. That puts it in perspective. How much do you have tied up in everything with wheels and motors in your house right now?
The Ramsey Show
The Key to Financial Success: Slow and Steady
Landon, there are people who have a negative net worth who bought more expensive cars than you today. And so just know that in the grand scheme of life, it's going to be okay. And here's the deal. When you're young, naturally, more of your house is going to make up your net worth. It might be 50, 60, 70, 80% when you're young, but over time, compound growth with your investments will catch up.
The Ramsey Show
The Key to Financial Success: Slow and Steady
And so by the time you retire, your house will probably be a third of your net worth. And you're right, that car will be in an impound somewhere 30 years from now, and that's okay. Stuff is stuff.
The Ramsey Show
The Key to Financial Success: Slow and Steady
You're in your live like no one else era. You said you have a paid for house, right? You're in Baby Step 7? Yeah. Then what's the point of money?
The Ramsey Show
The Key to Financial Success: Slow and Steady
you're scared to death over nothing there's three things you can do with money landon you can give it save it spend it and if you just save it you're gonna drive yourself crazy if you just spend it you're gonna end up broke and if you just give it you'll be a great philanthropist but unable to retire and so it's wise to do all three.
The Ramsey Show
The Key to Financial Success: Slow and Steady
And what you're experiencing is something I experienced as well, which is needing to flex this muscle of spending after you've been so aggressive toward a financial goal of paying off the house or investing. And so this is something I struggled with. When I stroke a check for my wife's last car we bought her, it hurt my soul. I've never spent that much money on anything outside of a house.
The Ramsey Show
The Key to Financial Success: Slow and Steady
I remember that. And Ken remembers. I was talking to him about it. But over time, you'll look back 10 years from now and go, remember when I was stressed out about buying a $35,000 car? I'm sure Dave Ramsey had the same experience. Now Dave's cars are worth more than my house. And so it's okay to have nice stuff as long as you understand that it's a toy that goes down in value.
The Ramsey Show
The Key to Financial Success: Slow and Steady
It doesn't make or break you. Money just magnifies who you are. And it sounds like you are right on track, my friend.
The Ramsey Show
The Key to Financial Success: Slow and Steady
I'm not allowed to have something this nice. I don't deserve it.
The Ramsey Show
The Key to Financial Success: Slow and Steady
So what was the, you know, we say behavior is a language. How did the way they handled money influence you?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
You would slow down how much you're putting on the house, keep investing 15%. So it wouldn't be quite a stork mode like you're talking about. And you would roll all the money from your current home, all the proceeds into that next home. And then you got to know there's going to be closing costs, there's going to be moving costs.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And so see if you can maybe weave that into the negotiations with the job to see if they'll cover some of that relocation expenses. Mm-hmm.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
On these interest rates, that will increase your payment. So if you're at a three or four and now you're jumping to a six or seven. It's a big jump. Yeah, that's a big jump. All right. Jerry's up next in Durham, North Carolina. What's going on, Jerry?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
This feels like a common core math riddle, Jerry. The only answer here is do not pause investing. And so 15% is what you're aiming at. And so pausing that in order to get the mortgage paid down quicker is going to hurt you in the long run when it comes to your retirement of what that compound growth for those three years would be at this stage of the game.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
The only time we would tell you to pause investing is if you're in debt or you're trying to save up the emergency fund or down payment. But I think you got excited looking at the numbers of how much faster you could pay it off, right?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Okay. So now here's the problem to solve. How do we make or create another $1,000 a month without pausing investing? How do we cut enough expenses or add enough income to create that margin if that's something we're excited about?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
But have a little fun on a date night this weekend and go, okay, we're going to sit down and see what we could cut and how we could add without touching our investments, without touching the contributions. And I think you guys will get creative and find a way and hit your goal, my friend. This is The Ramsey Show.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
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Money Isn't the Problem—Your Behavior Is
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The Ramsey Show
Money Isn't the Problem—Your Behavior Is
This is the Ramsey Show. Raquel is up next in Green Bay, Wisconsin. What's going on, Raquel?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
You said you're getting married a year from now. Yeah. Right. Are you engaged yet or not? No, not yet. Okay. So we got some time. You're really thinking ahead here. I would want her to get a job lined up. I mean, why can't she do that before you guys move in together after you're married?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So you mentioned debt. How much debt do you have?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Well, I don't think you realize how much of a chokehold this medical debt has had on you. I mean, it's like hanging on to past trauma. I totally agree with you. So how old is the medical debt?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Okay. How many times have you thought about it in the past two years?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
There's an even greater cost to letting it consume you.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
It's been two years. I would call and see if they'll settle and say, hey, I'll give you four or five grand to call it good today, paid in full. And that'll make you feel a little bit better about letting go of less of your savings. But even if you pay the whole thing off in full, they go, nope, kick rocks, pound sand, you owe us 10 grand.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Just pay it off and be done with it and then stack up cash if you want. But the truth is you probably have already months and months of expenses in that 25K that's left over, right? What are your monthly expenses?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Are your expenses three grand a month to cover everything?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Okay. So 18 grand is six months of expenses. So even if you were out of a job, you could float all of your bills for six months or more while you find another one.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And the other thing is, do you have disability insurance through your employer or through your health insurance?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Okay, that solves another fear. If something were to happen to where you couldn't work, but you're still alive, the disability insurance would cover you.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So that's another facts for your friends. Let's check off the box. We have our out-of-pocket max. We have six months more of expenses. We have the right insurance in place, and we're doing all the right things. And once you get this debt out of your life, you're going to be looking at the future instead of looking at the past.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
I think right now you've got a crick in your neck from looking back at this medical debt so much.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Can we, like, volunteer on the weekends and do the children's ministry on Sundays? I mean, we need to work.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And this is you breaking the cycle. You paying off this final debt is you saying, I'm done. We're not going back to that place where money was a problem. Money was a stressful point. You're looking at the future going, I'm the kind of person who cash flows the emergencies that come my way and nothing's going to stop me.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
I think having your chin up high, having no debt, and releasing yourself from the trauma of the past, the long past, which is your childhood, and the past of the surgery and the health problems and what could be, I think you're letting it have too much control of your life.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
I hope that frees you, Raquel. Are you going to go pay it off today? Can you let America know you're doing it?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
That's a win. I like it. That's a huge win. We are cheering you on. And again, it's two years old, Jade. They might be willing to settle.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And they're getting minimum payments right now. I bet they'd love four grand in their pocket instead.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
That's a good reminder. People are playing offense out there with their income, working hard, building wealth, but you got to play defense too. And that's where insurance is. Nobody wants to talk about it, but it's one of these things you got to deal with and make sure that you are covered. And don't wait until something happens to find out. Figure it out now.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So go check out our coverage checkup tool. It's completely free. Go to ramseysolutions.com slash checkup. It's one of my favorite things you can do for peace of mind. We'll show you all the insurance you actually need, the ones that you don't, and connect you to the people that we trust to help you get it in place. So that's ramseysolutions.com slash checkup.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
We'll drop a link to the description and show notes as well if you're listening on YouTube or podcast. This is The Ramsey Show.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
She's not ready to retire and be a volunteer full-time. Y'all are just getting your life started. You got goals. You, like, want to have a house one day, right?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Welcome back to the show. I'm here with Jade Warshaw. I'm George Camel. And it's time for one of America's favorite segments, Jade. It's called asking for a friend.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So the societal colloquial saying is asking for a friend. Yeah. But it's really for you.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
I literally just fell asleep. That was so boring.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
I'm kidding. We're going to make it fun. Pay attention. Here we go. So tax deduction versus write off. This is one of the funniest things people mix up. So the tax deduction, it's an expense that can lower your taxable income to reduce how much you pay in taxes. So you hear the word standard deduction, itemized deduction.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Standard is just the specified dollar amount you can subtract from your taxable income when you file your taxes. So the IRS decides this number every year, and it depends on your filing status and in some cases your age and some other factors.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So the easy math is, am I going to save more by going to standard deduction or by itemizing? And most people in today's America are going to be better off doing the standard deduction. It's a lot simpler.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Now, itemized, that could save you money if you have a lot of medical expenses, charitable donations, state and local taxes, student loan interest, mortgage interest, home office expenses, you're self-employed. All of these things can affect which way you go here. But most people, standard deduction. Next.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
People get this one. They think it's free money, Jade. The government blessed me. I was a good boy and Santa decided to come early in April and give me some money.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
You made nothing. That could have been sitting in a high yield savings account, at least making you some money. Or going towards your debt. Working to your goals and your debts. So a tax refund, not a great thing. You want to aim for zero. You didn't get anything. You didn't know anything. Next, do I need to have all the money to pay my tax bill right away? I mean, ideally, you have all the money.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
But if you don't, pay as much as you can when you file and then set up a payment plan with the IRS. This is a big one. People think, well, Jade, I don't have the money, so I'm just not going to file.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Not being able to pay is okay. You can get on a payment plan with the IRS and put as much as you can toward the tax bill on tax day.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Thank you. Thank you. Thank you. Thank you.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Thank you. Thank you. Thank you. Thank you.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
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The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Yes. Okay. Yeah. So you've laid it all out and said, all right, we can cover all of her bills plus all of my bills, and we're going to rent for the foreseeable future as we save up a down payment. What would be your next goal once you guys are married?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And you would be investing 15% of your income, or are you going to do a baby step 3B and just go real intense for two years on the down payment?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So half of her income is going toward rent, and that's heavily discounted thanks to your generosity. Yeah, yeah.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
I'm done. Oh, my gosh. Wow. I want to start singing A Whole New World, but I won't.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Again, that's where her working is going to come into play because making 60K a year, covering all the bills, you're not going to get very far in the down payment. You might be able to save, I don't know, a thousand bucks a month. Have you kind of done the math to see what you could really save up in a year?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Soaring, tumbling, freewheeling. We can keep going, James. I love it.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Listen, the lights are on. I would present some of these options to your wife and say, hey, I want to alleviate the stress. I know this has been a burden. It didn't work out as we planned. Here's what we're going to need to do. And it might still take fixing up some things. You need a sinking fund for any property you own. You need maintenance and repair. Put it in savings. Have the money ready.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
It's not a surprise when things go wrong. It's part of home ownership. And so... Instead of making it a surprise, add it as a line item in your budget. Mark it as a sinking fund in every dollar so that the future you doesn't resent present you. Love that. But I love this plan. I feel like there's some excitement just happening. The wheels are turning. The wheels are in motion. Love it.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Hey, buying or selling your home, it's a big deal. And you want an expert in your corner fighting for you to find the best deal for the right price. And the Ramsey Trusted program is the only way to find a top agent you can trust who will help make your home a blessing, not a burden. And it's easy. Compare agent profiles, you interview them, and choose the right one to work with.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
To do that, if you want to find a local Ramsey Trusted real estate pro for free, go to ramseysolutions.com slash agent or click the link in the description if you're listening on YouTube or podcast. Joseph is going to join us up next in Columbia, South Carolina. Joseph, how can we help?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Are you single? I am. Okay. And what is your income?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Is there a cost of living adjustment every year?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Okay, great. And do you have any debt currently? What's your financial picture looking like?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Great. And you can afford that mortgage comfortably? How much margin do you have every month to invest after all the expenses and bills are paid?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Well, you always have the option of a taxable brokerage account to store money. Now, it's not going to have the tax advantages of an IRA, but it's a great way to at least harness the compound growth that you would get by investing. Okay. But if you did have earned income, like Jade's saying, by doing anything, that would give you the ability, even with part-time work, to contribute to a Roth IRA.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So even if you made $7,000 a year of earned income, you could max out a Roth IRA for the year just by doing that.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Yeah. Now, when were you disabled? Do you have access to an ABLE account? I know there's age limits. I believe it's 26.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
The ABLE accounts, Achieving a Better Life Experience is what they're called, and it's a special account for individuals that are disabled before age 26. So I'm just trying to think through other options you might have access to.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And again, worst case, Joseph, that taxable brokerage account, I just crunched some numbers here to give you an idea. You said you're 28. And to kind of create your own retirement account, let's say you invested that 2100 till age 60. And we're going to assume a 10% rate of return, you would have $5.8 million sitting in that account.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Now, you would have capital gains tax as you start to withdraw the money from that. But only 800 grand was money you put in. So 5 million of that was compound growth. And so I still want you to be investing, even if you don't get all the tax advantages that you could get through a retirement account. And even if we lower it to, let's say, a 7% return, still be 3 million bucks.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So the fact that you are living on less than you make with so much margin to invest, that's the key versus the exact vehicle you use. And if I'm in your shoes, I would be utilizing a financial pro, an advisor in your corner who can help you figure out what the right options are for you legally with a disability and what benefits you have. And so I would get in touch with one.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
You can jump onto RamseySolutions.com, click on SmartVestor and get connected to someone who can help with that. But it's a... I'm sorry for what you've gone through, man. That's a lot of sacrifice, but the good news is you're going to be able to build some serious wealth with the margin you've created.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Way to go. All right, Jimmy is up next in Cleveland, Ohio. How can we help today, Jimmy?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So you're still working full-time. It's just not, you're not in a season where you're harvesting.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
I would sell these vehicles and toys and be done with this. Instead of hoping in what if the winter's rough, can you sell most of these and downgrade and pay cash?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Not necessarily come out ahead. Just get rid of the payments.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
I'm doing some homework tonight going, we're going to start listing this stuff and get out of debt faster. And if you want to keep one of the cars and pay it off aggressively, that's fine. But I think you just found your shortcut out of this mess. And I wouldn't switch the baby steps around. I would focus on getting rid of the debt and then getting the emergency fund in place.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
You don't get too comfortable. This is The Ramsey Show.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
I like that. Is she going to be bringing in any debt or any savings into the marriage?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
The Ramsey Show question of the day is brought to you by WhyRefi. WhyRefi offers a different approach to paying off your defaulted private student loans with a low fixed rate for less stress. Go to WhyRefi.com slash Ramsey. That's the letter Y, R-E-F-Y dot com slash Ramsey. May not be available in all states.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So four and five, they're investing and saving for college, but then they added they have a paid-for house, which puts them at the end at Baby Step 7. So that's the confusing part. But if they truly have a paid-for house, they're in Baby Step 7, Dave would have no problem with going on a paid-for $30,000 vacation.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
My guess is he was addressing broke people going on lavish vacations.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Sounds amazing. This is my new goal here. I love it.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
take me on an international vacation okay i love it while our kids are still uh living at home that's the other important part is you're creating some special memories with these uh let's see starting oldest is starting high school next year they're still young enough that they like you probably this is a great a great time to go this is really good i imagine once they're older teenagers i can't speak from experience but i imagine they're just like this is lame yeah you know
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
It's the so that. Live like no one else so that later you can live and give like no one else. And later is now for you guys. You've been following the steps for 15 years. You get a paid for house. Go have fun on the trip.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
but i'm like they're like ashamed of it yeah that's what i'm saying i'm like if you were loud and proud about getting out of debt and sacrificing and cutting back you can be loud and proud about the fact that you're winning i think that's wonderful yeah and if other people experience shame because of it that's on them let them jade thank you for freeing us all you're welcome that's what you're here for lincoln is up next in idaho falls idaho what's going on lincoln
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So you're saying consumer debt-free in Baby Step 2. Now you're in Baby Step 3, maybe 3B, saving up for a down payment. What is this house going to cost?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
From the Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm Ramsey personality, George Campbell, joined by the one and only Jade Warshaw. We're taking your calls at 888-825-5225. You jump in, we'll talk about your life, your money, your relationships, whatever's going on.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So you can't pay cash today. You have $100,000, right?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So you would have to take on a mortgage if this is going to happen in the next several years. Okay. So what you're saying is, hey, we got out of consumer debt. I feel bad now taking on a mortgage because we're going, quote, unquote, back into debt.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Okay. Oh, so the money is in CDs for her college right now? It's not in like a college savings account? Okay.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
What I would do personally in your shoes, if you got a year, I'm going to go, let's really go for it and pay cash for this home and leave your emergency fund alone, but any money outside of that, I would just throw it toward the house, and you'll have plenty of time to save up and pay cash for college.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Way to go. And then for the future, I would separate all of these out. Right now, it sounds like there's just like a bunch of piles of money. I would have very specific accounts and goals for these things. So set up a 529 plan or an ESA for college. We're going to put money there. Save money in an emergency fund. Call it the emergency fund. Save money for vacations. Call it the vacation fund.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And that will free you from the paralysis of, I feel bad for using this money for this when it really was for this. But, man, I love the 100% down plan. If you guys can do it within a year, I'm doing it. If it was five years, we'd say just take out a reasonable mortgage, that 15-year fix, knock it out fast. Either way, you're going to be fine. But I love this stretch goal. Way to go, man.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
This is The Ramsey Show. You know what's crazy to me? Two things. One, that we're already down to the wire on the tax deadline. And two, statistically speaking, most people haven't filed yet. And if that's you, I'm not trying to shame you or anything, but just know that taxes don't have to be stressful.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Ramsey SmartTax is a 100% accurate software that makes filing simple and easy and doesn't make your wallet cry. So don't be the person pulling your hair out because you're trying to file at 10 o'clock at night on April 15th. Get this party started and over with by going to ramseysolutions.com slash smart tax. That's ramseysolutions.com slash smart tax.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
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The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And this is the last segment of this hour. If you're on YouTube or podcast, if you're on radio, stay tuned. So if you don't want to miss out on the next hour, you can get full episodes of The Ramsey Show in the Ramsey Network app. Go download it for free in your app store by searching Ramsey Network or use the link in the show notes. Latoya is up next in Morgantown, West Virginia.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Okay. Smart man. Okay. Okay, and can you tell us for just people curious out there, what kind of ring is this? How much are you planning on spending?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
But sell it outright private party, you're saying is $24? Because they'll list different ones. They'll list the trade-in value, and they'll list the private party value, and they'll list the retail value.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
The old Kia. So you're $25,000 upside down. I am. What do you owe today? About $51,000, $52,000.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Well, here's the bad news. The only way out of this is to cover the difference. And that's either with money that you save up or with a personal loan from a credit union.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So you already have another thought behind it. You're driving another vehicle right now. Or you said you have access to another vehicle.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So you're just not driving it because you don't want to drive the price down even further.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Okay. And is that just you or is that household?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
That's household income. Okay. Yeah, that's a lot of car. What does grandfather think about this? Why was he the co-signer?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So you reached out to grandpa and said, hey, he's good for the money. He'll sign.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
What kind of ring is that? What kind of ring do you get for $1,000?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Yeah, I would go the personal loan route from the credit union, get that loan down, and then just debt snowball everything and try to increase your income to speed up this whole process. If both of you can commit to doing something, get that income up another $10,000, $20,000, $30,000, so really speed up the process and get you guys to a better place
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Congratulations. Has she been through Financial Peace?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Yeah. And depending on the model and make, it can be way worse. And some people go, well, Jay, that's not what happened with my car. Okay, maybe you had a make and model that fared better. But the principle is still there. This is not us making this up. This is data out there from Edmunds and all kinds of outside folks that do the math on this. And even my own car, it was paid for in cash.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Is she on board with this Ramsey stuff? Has she been through Financial Peace University?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
It's a 12-year-old car, and it still hurts my soul to see how much I could get for it today. It is minuscule.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Oh, the curriculum. Okay, well, how about this? As a premarital counseling wedding gift, I'm going to gift you guys Financial Peace University so you can go through it together and be aligned. It sounds like you already are aligned, but that is the number one indicator that you guys are going to kick off this marriage just going for it.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
It's just going to be a harder road. Like, it's $10,000 a year toward a down payment. That's $20,000 after two years. That's not getting you very much near Louisville, Kentucky. So that's why I'm like, we've got to make some progress fast. Agree. Then we can take the foot off the gas later on down the road.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Welcome back to the Ramsey Show, 888-825-5225. Dustin is in Toledo, Ohio, up next. What's going on, Dustin?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Let's do this. Aaron is going to kick us off in Louisville, Kentucky. What's going on, Aaron? Not much. How are y'all doing?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Well, there's a lot of good stuff in there, Jay. And I do agree that I'm OK with you making this move. I just don't want it to be sort of settling and going, well, I guess I make 60K now. And the thing is, your expenses are not getting cut in half here, but your income is. And so have you guys sat down to actually do the budget to see what life would look like?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
You're breaking up on us, Dustin. And then the other sacrifice is your wife would have to work full-time for the foreseeable future to make this dream work. And so that's the balance we're talking about here is, is she okay with that? Your quality of life will probably increase. You guys will enjoy living in Florida, but she's not going to have flexibility to just work part-time if she wants to.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
She's going to have to work full-time and hopefully find something making more than $30,000. Because right now, retail, you can make $15 an hour. That's $30,000 a year. That's true. And so I want both of you to be working on your careers and also doing more research. You've landed on one place.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Can we land on three and start interviewing and seeing, hey, this place is offering 75, the quality of life there is going to be great, and maybe find a compromise?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Great question. I'll give you the Ramsey parameters, and we can dive into your situation after that. We recommend at least 5% to 10% down for a first-time homeowner, and only choose a 15-year fixed-rate conventional loan, where the payment is no more than a quarter of your take-home pay. And I know once you crunch these numbers, Louise, you're going to go, oh my gosh, these guys are out of touch.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
How could anyone do that? We can't change the laws of math. Okay. So a lot of people go, well, I guess it'll just be 60% of my take-home pay going toward this mortgage, and I'll be stressed forever. And so that might mean you need to choose a different house, choose a different location, choose a townhome instead of a single-family home, save up a bigger down payment.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So knowing all that, where do you guys stand financially? What's your goal?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And what is a reasonable home in the area you want for those parameters? What's that going to cost?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And how much do you guys plan to have down?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Well, I think based on the mortgage payment with the current market and rates where they're at, I think that's going to be a hefty mortgage payment that you guys won't be able to stomach. That might be 70% of your take-home pay. So it's not as much of how much down 5 or 10.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
It's we might need to save up 30% down in order to make this mortgage work for us, which means we need to get our income up and we need to rent for another two years. Okay. So that's the kind of sacrifices you'll need to start looking at. Are we willing to compromise? Are we willing to do a three-bedroom townhome that's $300,000 because we have urgency to get into a house?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
It's not like if you get double the truck, you're going to make double the money. Right. That's not how business works. You know that. So I would definitely make the sacrifices needed, and if that means downsizing in truck, I'm doing it. If that means working overtime for the next six months to get this down payment going, I'm going to do that. So you guys decide.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
You can pull all the levers you want, but don't take any shortcuts doing these first-time homebuyer, 0% down type loans. They're not in your favor, my friend. This is The Ramsey Show. For free tools and resources to help you reach your home goals, go to ramseysolutions.com slash real estate or click the link in the show notes.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. The phone number to call is 888-825-5225. Well, there's a lot that goes into buying and selling your home, and all of those decisions can feel overwhelming, and you shouldn't have to do it alone. And that's why we created Ramsey's Real Estate Home Base.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
It's a place with all the tools and resources you need to get prepared to buy or sell your home today. with confidence. You're going to find calculators, start to finish guides, how-to articles, a podcast, a book, and even a video course, all packed with actionable steps to help you navigate this process.
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It’s Never Too Late to Clean Up a Financial Mess
So if you're ready to take those steps toward your home goals with peace of mind, go to ramseysolutions.com slash real estate, or click the link in the show notes and description if you're listening on YouTube or podcast. Cindy's up next in Fort Worth, Texas. How can we help, Cindy?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
From the Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Kamala, joined by my good, good friend, Dr. John Deloney. Taking your calls at 888-825-5225. You jump in, we'll help you take the right next step with your life, your money, your mental health, your relationships, whatever is going on.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
You got it all. You've collected them all.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
If you can't come up with a thousand bucks, then these cars have to go. You guys are, I mean, these cars are robbing you from a different future. You can get nice cars later. We're not saying you can never have these cars again, but this is part of the issue. You get rid of these car payments, you can breathe again, right? How much do you and your husband make?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Are you guys doing any investing right now?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Well, that counts as investing. That's investing, yeah. So if you took that down to zero, that would put some money back in your paycheck every month, right?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Okay, so that's a start. You can reshop all of your insurance. You can go to ramseysolutions.com slash checkup and do a coverage checkup. Reshop it all because you might be able to save some big money every single month just by reshopping insurance. And on top of that, can you guys work extra, either of you?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Good. Good. Do you feel the compounding effect of what a few of these things stacked on top of each other would do for you?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And then what are these car payments that are left, what do they add up to each month?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So think about that. If you sold the cars and downsized to just something you can get you to A to B, you'd be saving an extra $1,200. You freed up $2,200 just by getting rid of some cars.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
What is the mortgage on your current home? Uh, it's around 2 million. Okay. So you've got two and a half million. Do you have any other debt outside of these two mortgages?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
But when you explain to them, like, you guys won't have to take care of us in retirement because we made these sacrifices now.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So there's a lot of sacrifice to be made here, but this is a very hopeful situation because these cars, we can kind of undo a little bit. I don't know what they're worth. Do not just go trade them into some dealership that gives you bottom dollar.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Sell them private party, clean them up, take some good picks, put it on Facebook Marketplace and Craigslist and get top dollar for these cars so that you're not underwater on them.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And I'm hoping because they're pretty new, you can still, most of the equity is still inside of them versus being underwater. Especially the Corolla.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And remember, this isn't forever. This might be a two-year journey as you guys clean up all this debt, get to some financial foundation. Then we can save up and pay cash for a car, no problem.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Well, you're calling us because your plan isn't working as you wanted it to. There's some stress here, and I would feel it. If I was over $2.5 million in debt, regardless of my income and how great things were right now, in the back of my mind, I would be knowing this is a house of cards. It could all come crashing down any minute. Yep. And so you want to reduce risk in your life.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Well, from now on, here's what you're going to promise me. We're not going to swipe that credit card one more time. We're going to be our own bank.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And we can make do without it, and if something really goes down where you need more than $1,000 to cover it, you'd push pause on all the steps and save up really quickly because you guys have a great income.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And that's where freeing up those payments will give you a little bit of breathing room. Right now, you shouldn't get your head above water. So make all the minimum payments on the debts, focus on the smallest one, get the thousand in place, reshop the insurance, pause the investing. And as you start to get more margin, it's going to become addictive. You're going to go, where else can we save?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
What else can we do? We can cut that subscription. And so I'm going to send you my book, Breaking Free from Broke. And there's a chapter called Margin is Breathing Room, where I lay out at least 10 ideas to make more, 10 ideas to spend less. My goal for you, just choose a few on each list, and you will feel so free just days from now if you do what John and I tell you to do.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
They're going to put the marbles in the jar for every thousand we pay off.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And then you get a whole family united in the same direction. Beautifully said. Hang on the line, Cindy. We'll send you a copy of Breaking Free from Broke. Wishing you guys the best. You're going to make it through. This is The Ramsey Show.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
You're using language like, well, it's just a 40K car loan. That's kind of what gets us here, right? You guys have an just undeniably insane income. And yet what happens is you just go, well, we can acquire more and handle more payments. And it leads us to this place where we have to decide, do we want to keep going down this road or do we want a more peaceful path?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. As a listener of The Ramsey Show, let me ask you a question. Are you staying on track with the baby steps to reach your financial goals? If you're not sure or you want some clarity, take a quick quiz that we created to check your progress and you'll get a personalized plan in minutes just for you.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Simply head to the show notes, click on the link titled Are You On Track With The Baby Steps and complete the free quiz. Kyle's up next in Portland, Oregon. What's going on, Kyle?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So you're saying you wouldn't make more going into the private sector?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So if I was in your shoes, I'm going to try to reduce that risk. So you have an amazing income. How much extra margin do you have at the end of each month?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Are you guys still investing right now?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Okay. I would recommend pausing that down to zero for a short time to knock out these debts faster, and I would also recommend pausing to stack up cash. I know you can snowball while saving, but May is not that far away. Okay. Four or five months of stacking cash. I hope everything goes perfectly. Mom and baby are home safe. Great.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Let's hit play, and we have a bunch of money to throw into the snowball, and we'll continue on. Okay. We call that stork mode in the baby steps. When you're in that baby step one through three world, it's okay to pause and just stack up cash.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So I'm not anti the PSLF program, but again, the stats are- I absolutely love the idea.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
It's a half a percent is what was actually approved from September 2020 through June 2023. Four million were processed. Nineteen thousand resulted in forgiveness. It was a half a percent.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So I think the program itself has a lot of flaws. I'm not mad at it. And I also think devoting 10 years of your life to this and kind of putting yourself in some golden handcuffs here. Because now there's a sunk cost. You're three years in, you have a terrible boss, the workplace changes, and you go, I've got to get out, but man, it's going to ruin my chances.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
All right, let's go out to Crystal in Dallas, Texas up next. How can we help, Crystal?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Okay. And the stock is non-retirement, right? It's fully vested? Yes.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
This is a tough one. You do have a lot on your plate. And I would argue that there's also risk and it's unsafe to owe that lender. They could repo your car if you don't make the payment. And so there's a piece of me that goes, if you knocked out the $6,000 debt, leaves you with $21,000.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
If you took $15,000 or $20,000 of that and threw it at the car loan, you're done with this car loan within a few months, making $90,000, right?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
You freed up a payment from your other debt. So this is not a, you're going to go a year with a thousand bucks in the bank. We're talking about maybe three months and then you're going to restack it with no payments in the world and get there really fast.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So you could sell a whole bunch of that and knock out a lot of this debt. You could knock out the car loan instantly and knock out the rental loan instantly and make about, you know, what, a quarter progress on your own mortgage.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
But that's the kind of fire when you feel that thousand bucks in the bank and you feel unsafe. That's when you go, I'm going to kick it into high gear. I'm going to do whatever it takes to get rid of this debt fast to get to that financial foundation.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
That's just me. I test the waters, pay off that first debt, see how it feels. I think you're going to go, all right, we can do this. You're going to feel the progress. This is the Ramsey show.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
From the Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell, joined by Dr. John Bologna, and we're taking your calls at 888-825-5225. You jump into the conversation and let us know what's going on in your world, and we'll try to give you the right next step.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Henry's going to kick us off in Raleigh, North Carolina. What's going on, Henry? Hey, how are you? Good. How can we help?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Awesome. So you're at baby step three. You're saving up a fully funded emergency fund. What does three to six months of expenses look like for you guys? Obviously, it's tough now because you're basing it off of zero rent living with dad. But what would it be?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Okay. So you guys are making... I'm going to just ballpark it and say you guys are making about $80,000 a year?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So let this new baby be a reset and say, hey, I've done a bad job leading our family when it comes to finances. Don't make it about her and her mistakes. And like John would say, use I language.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
I would look at what the private party value is and try to get top dollar for this and be as little upside down as possible and then use whatever in your savings to cover the difference to clear the title and then go get you a $4,000 used car right now to get out of this mess. Because then you can start stacking up. I imagine the payment on this thing is massive. What are you paying monthly?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Yeah, no wonder she didn't tell you.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So your job is not to convince her that she needs to sell her car because she made a giant mistake. Your job is to give her a vision for what the future is going to look like, and a byproduct of that is we've got to sell the car. That's a different conversation.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
But then this baby's going to come into the world debt-free with a fully funded emergency fund, building for the future instead of paying for the past.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Yeah, I'm going to say, thanks, Dad. I got to go get my own place, and we'll figure it out. This is The Ramsey Show.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And the other risk is having all this money tied up in a single stock and a single company. So I like the idea of offloading it for other reasons other than just getting debt free.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. Hey, if you're ready to get your finances in order once and for all in 2025, join us January 23rd for a free live stream, Take Control of Your Money. It's hosted by Dave Ramsey and Jade Warshaw. That's how you know it's going to be good.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
You're going to learn how to stop living paycheck to paycheck, learn how to free up more breathing room so you can pay off debt fast and finally get ahead with money. Plus, Rachel Cruz and I will join at the end for a Q&A where you ask your money questions live. And here's the real reason to join. When you sign up, you'll be entered to win our cash giveaway. Five people will win $4,000 each.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Not a bad way to kick off the year. So go sign up for the free live stream by going to ramseysolutions.com slash live stream or click the link in the description if you're listening on YouTube or watching wherever, podcast, all that good stuff. Check out the show notes. All right. Lucas is in my home state, Worcester. What's going on, Lucas?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Let me free you from two things. Number one, let's assume there will not be magic affordable land anytime soon. And number two, let's assume there's no such thing as a dream home. And so instead, if you go, all right, I'm a newlywed looking to get my very first home. It doesn't need to be the 30 year dream, but I need to get my foot in the door.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And so that can free you to go, all right, we're not going to go buy land and do this dream home right now. We're going to go buy a single family in an established neighborhood with some good schools at a reasonable price. That's still just too expensive. It's because I'm angry at how expensive the housing market is. I know. I wish we could all go back in time, but we can't.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So instead we go, all right, how much do you guys have saved right now for the down payment? How much do you guys have saved?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Well, what really they did is they modeled it for you. They modeled what it looks like to live on less than you make. So that's awesome.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Okay. What does a reasonable home cost in the area that you would like to live right now? Not the dream land, but just, hey, this is near family. It's in a good area. Is it half a million?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Okay. So you could put 50% down today and have a $200,000 mortgage, and your household income is what? Household income a month is around $10,000.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Okay. So now your next step is jump on the Ramsey Solutions mortgage calculator and go, all right, our 15 year with 200 down on a $400,000 house, the payment's going to be, you know, 2,500 bucks. Great. That's a quarter of our take home pay. Let's go ahead. This is a great home. Let's do it. I wouldn't overthink it to the point where you wait seven years to buy perfect land.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
You come from the Deloney lineage. Exactly. John loves nothing, but he just give me all the acres you got. Okay.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And you still can't afford a million dollar piece of property.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Or dropping them off at school is a two-hour round trip.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Yeah, once the car is paid off, then your next step, you know, if you're filtering this through our Ramsey baby steps, you should be completely consumer debt free with a fully funded emergency fund, then begin investing 15%. Then any money beyond that can go to kids college and paying off the mortgage early. Okay.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
You're running out of time, man. Come on.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
I know, I know. But think about it. If you guys got a normal house now in a normal neighborhood and you get it paid off in your early 30s, probably by the time you guys are 30, you'll have this thing paid off, knowing how intense you guys are. Then we start stacking up cash on top of that. We can sell it. We can get the land on top of that. Who knows? Your income's only going to go up from here.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Obviously, you two are sharp. You're going to be newlyweds combining income. You're going to start off your marriage debt free with $200,000 in the bank. I'd be grateful. And I would, you know, take my chips home from the gambling table and go, we did real well.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Maybe there's a secret listing I haven't found yet.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
I still remember 10 years ago, 23 years old, I was frustrated, anxious, and flat broke. I had followed all the ways that toxic money culture had led me down from well-meaning parents and misguided guidance counselors, and it left me with a pile of debt. But I'm telling you, it doesn't have to stay that way. Over a decade, I went from broke to millionaire.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
and I break it all down in my new book, Breaking Free from Broke. I'm going to show you just how toxic this money system is and how you can break free from credit scores and credit cards and student loans and auto loans and investing traps and finally live a life that you're not exhausted by, a life with more margin, more options, and more peace.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And with your income, I think sit down with your wife, show her, okay, here's where we're at. Here's where we could be. And if we go down this path, we sell the stock, we become debt free. We free up that rental mortgage payment. We're free up a car payment. We have all this extra money. We could tackle our own mortgage and probably be done with that with your income in under five years. Yeah.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
If you want to check out the book, go to ramsaysolutions.com to get your copy of Breaking Free from Broke. That's ramsaysolutions.com. Welcome back to The Ramsey Show. I'm George Camel, joined by Dr. John Deloney. Open phones at 888-825-5225. Our question of the day is brought to you by YRefi. YRefi refinances defaulted private student loans and builds a custom loan based on your ability to pay.
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It’s Never Too Late to Clean Up a Financial Mess
You'll have a payment you can afford with a low fixed interest rate you couldn't get anywhere else to help you stick to your budget and work that debt snowball. Go to YRefi.com slash Ramsey. That's YRefi.com slash Ramsey. slash Ramsey may not be available in all states.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Yeah, they have a fixed income of $3,600 and they have $320,000 that I think is just sitting in cash right now in the bank.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
This is where I do a budget with my husband and go, okay, we have $3,600 coming in. Here's all of our bills. Do we have money left over or are we in the red every month? We take property taxes. We're going to divide by 12. That's a monthly bill we're going to put aside. Put it in a sinking fund line item in the budget so that you have that money ready come 12 months from now. That's right.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Now, as far as the money goes, where to invest it? You said, where can I invest this money? Well, you just told me you got spooked by the stock market tanking. And can I give you some peace here? If the stock market goes to zero, we have much bigger problems. Every company in America goes bankrupt and is worth $0. That's what would have to happen. So I'm not worried about the stock market tanking.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
You're going to have to ride some ups and downs, sure. But if you look at the stock market last year, 2024, it was up 24%. over your money that got 0% sitting in a bank. And so I'm actually more scared for that money to sit not being in the stock market than I am about the market tanking.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
That's pretty amazing. And how old are you two? Um, we are 39 and 40. Think about that. You're in your mid forties and you will have, I'm not even saying sell the rental property. You could keep it if you're going to knock it out and reduce some of the stress and increase the cashflow. You'd be sitting with a, about a $4 million net worth of paid for property in your mid forties.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
That has hundreds of stocks. So that's what you want to focus on is an index fund, a broad-based, low-cost index fund. If this money is not in a retirement account, I don't know where it is. I have no clue. But if it's non-retirement, you can just invest it in a taxable brokerage account. And as you need, pull money out of it.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And obviously when the market's down, that's the worst time to pull it out because it's worth the least. But when the market's great, you can pull a little more out and pocket that away in a savings account to cover you. For the future months. But it really depends on what your bills are. If your bills are $3,000 a month and you're taking in $3,600, breathe easy. You don't need to touch the money.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Yeah. If you need downsize in-house and get lower property taxes, that might be an option too.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Back in the stock market in an index fund or mutual fund. That's it, yeah. Keep it simple. Let it ride. Don't touch it unless you need it.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And so in 20 years... At 85, it'll be 1.3 million. Yeah, yeah. I could live with that. Yeah, it could be all right. Thanks for the question. Great question, Wanda. All right. Sue is in Detroit up next. How can we help, Sue?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And a million dollars in your retirement fund.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Is he ready to deal with this or is this just you wanting him to? He's not.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Is he ready for his kids to visit him in prison? What's his game plan here?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Probably other debts, his spending. I'm guessing no shared financial life.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So he's actually making more, and he's using that money for God knows what.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And guess what? Your buddies are going to think this advice is stupid. They're going to be like, you should buy nine more properties and leverage all the debt and do HELOC on the first one. That's what's going on out there in the culture, but they don't live your life. They don't pay your bills.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And then you or him, maybe both, need to get in touch with a tax attorney ASAP and figure out what's the next step. Because this is not going to just go away. They don't just go, well, I guess he doesn't exist anymore. He hasn't paid his taxes. He fled town. They're going to find him.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. Hey, The Ramsey Show annual listener survey is now live. I know you guys have been clamoring, just waiting for this with bated breath, and it is here. We want to know your favorite parts of the show.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
They don't know what happens inside your home, what's happening inside your body, how you're feeling about it. And that's where John and I go, we're solving for freedom all day long. And you're in an amazing position where you have a million dollars sitting there in stock. You have about a million dollar income.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
We want to know who your favorite host is. Is it Dr. John or is it Ken? Come on, America. Don't leave us hanging. Come on, America. But really, you can tell us what you like, what you don't like, what you want to hear more of, less of, whatever it is. We want to hear from you. And this is the survey that our team uses to craft questions.
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It’s Never Too Late to Clean Up a Financial Mess
next year's content and what we do and the things that we do. So there are two ways to participate. If you want to help us out, text the word survey, S-U-R-V-E-Y to the number 33789, 33789, or just go to ramsaysolutions.com slash survey. And if you're listening on YouTube or podcasts and you're a fan of the description, just head down to those show notes and we've got a link down there for you.
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It’s Never Too Late to Clean Up a Financial Mess
And to spice it up, if you sign up today, you'll be entered to win a $500 gift card as a thank you from our team. So, hope you win. Thanks for the feedback. By the way, John, I know John knows this, but the listeners may not know that after this segment's over, we're done here. If you're listening on YouTube or podcast, if you're on radio, hang tight. We'll be here.
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It’s Never Too Late to Clean Up a Financial Mess
But the Ramsey Network app is the only place to continue listening to the show to get full episodes of The Ramsey Show, and it's completely free. Go download the Ramsey Network app with the link in the show notes or just search Ramsey Network in your app store. It's when things get off the rails on the Ramsey Network app. Who knows what could happen inside of the app? It's our world.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
You're just living in it. All right, Rick is in Madison up next. What's going on, Rick?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Yeah, the debt snowball. You're going to attack the smallest debt first. So what is the smallest balance right now out of all those debts?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
This problem is pretty easy to solve, but the hard part is the choice and getting your wife aligned on this.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Okay. But you have an $18,000 balance on one card?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Just one card. So if you threw that at your smallest debt, that's the car loan, that would leave you with $3,600 to go. How quickly could you tackle that while making minimum payments on the rest?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So you guys have a great income to tackle this, but you're still staring down a mountain. I would separate the mortgage, so take that out when you're looking at this debt snowball. It makes it overwhelming, and that's a baby step six item, so that's going to come later.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So that really, I mean, it kind of frees you when you just look at that and you go, all right, we've got some debt, but we make $160,000, and we've got to clean up $45,000. All right, we can do this. And so now your new mission is to figure out how much margin you can throw every month at the next smallest debt.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And again, it's going to pick up more snow because of that debt snowball working for you as you free up each payment. How much do you pay a month for that car?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So that's where it happens faster than you think because of that snowball method working in your favor. But again, this is some intentionality. If you've got $50,000 to pay off and you're on the track to do $4,000 a month, this is going to be a year of sacrifice.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
I've been there. It's fine. You're bringing home like $10K a month thereabouts. Are you doing any investing at all in a 401K or anywhere else?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Okay. So you guys are doing a lot at once right now and you're not really seeing a whole lot of progress. So what if just for one year, we said we're going to pause retirement and we're going to come back swinging, investing 15% after that?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So pause retirement. You can reshop your insurance. That can save you big sometimes because you've been overpaying with the same carrier. So reshop it. You can go to ramseysolutions.com slash checkup and do a little coverage checkup there to make sure that you're checking off all the boxes. And then on top of that, now it's okay. What are the other levers we can pull?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Are there any subscriptions we can cut? We're going out to eat. We need to stop that and start meal prepping and being really intentional about our grocery runs. And so once you start doing six or seven things at once, making more, spending less, all of a sudden it's easy to find five grand sitting around in that budget that you were just kind of lazy with.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
It's scary. I'm not going to lie, Rick. When you take that down to $1,000, like your breath is taken away, and you realize just how risky of a position you've put yourself in by being in all of this debt. But the good news is you get out faster. Well, and...
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Yeah. What's interesting, as you were talking, I was thinking about how people tend to go into debt when they're desperate or when times are really good. Yes. And they go, well, we'll just take out a HELOC. We'll take out the home equity loan. yeah, sure, get the car payment. We can stomach it with our income. And then they don't make that income anymore. There's a job loss.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
They would need to move for whatever, for family. And all of a sudden it gets scary because you realize just how exposed you were. That's right. What's the old Warren Buffett quote? When the tide goes out, you can tell who's skinny dipping.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And so the tide's been, I mean, you've been submerged in the water with this beautiful income, surviving, making all your payments. And all of a sudden the tide goes out and you go, oh my gosh, like this is a scary way to live. That's right. We actually had a house of cards situation.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And so this is, I'm really proud of Rick because this is the hardest part to get to when you're willing to just burn the ships and go, all right, we got to do it. We're willing to do whatever it takes. Show me the way. Yes. Those are my favorite calls to take because they're not trying to argue that their plan is working.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Well said. Thanks for the call, Nate. It was a good conversation. This is The Ramsey Show. Have you gotten one of those texts recently claiming to be the USPS with some sketchy link to update your address? It's annoying and a little terrifying. And you probably think to yourself, I should do something about this. But where do you even start?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Instead of arguing with John going, well, my workout plan, this is what I'm doing. Here's why I think it could actually work. And they're just watching you going, all right, that's cute.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Whenever you're ready, we'll be here with a better plan for you.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
But that's big. If this is the year you're going, hey, I'm going to get out of debt. I'm going to do things differently. We're here for you. We've got a free live stream coming up on January the 23rd called Take Control of Your Money. It's completely free, hosted by Dave Ramsey and Jade Warshaw. And maybe you need some new information. You didn't grow up with financial literacy.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Maybe you need a little pep in your step. Well, Dave and Jade, they are, I think they're 90% pep, DNA wise. And so if you need that, go sign up for our free live stream. ramsaysolutions.com slash live stream. You'll also be entered to win our cash giveaway. Five people win four grand each. Go check it out. Link is in the description. And again, this is it.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
If you're listening on YouTube or podcast to continue listening to more of the Ramsey show, go download the Ramsey Network app. It's completely free in the app store or use the link in the show notes. We'll see you then.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Well, as your nerdy friend who does the research for you, I found the solution. They're called Delete Me. And here's the reason they come in the clutch. The internet is packed with data brokers, which are these shady companies whose sole purpose is to collect your personal info and sell it for a profit. Enter DeleteMe.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
DeleteMe swoops in, finds your info on these sites, and removes it on your behalf. They even send you a report with all the details. And so far, for me personally, they have reviewed 27,000 listings, removed my info from 240 data brokers, and saved me 66 hours in the process. I trust DeleteMe to help protect my family, and I trust them to help you too.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
You're going to get fewer spam texts, fewer phishing emails, and fewer creepy robocalls. And Delete Me also makes a great gift for other people in your life that you care about. Individual plans start at just $9 a month, so take an easy step to protect yourself and your loved ones today. And as a Ramsey fan, you'll get an extra 20% off any of their plans at joindeleteme.com slash Ramsey.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
That's joindeleteme.com slash Ramsey. Welcome back to The Ramsey Show. Open phones at 888-825-5225. Dan is up next in Jacksonville, Florida. What's going on, Dan?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Yeah. So what you said, it's in a Roth. Is it a Roth IRA, the Apple stock?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Okay. And then you got 30K in a bond. And what is your next financial goal? As you guys look at this new marriage, do you guys have any debt you're looking to clear?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Awesome. And then how much do you guys have in savings for an emergency fund?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Well, just knock out the credit card today. What are we doing?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
That leaves $11K in your savings, plus this $30K bond. That's plenty. That should be more than six months of expenses for you guys, right?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
And then you have a house together?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Yeah. So you could use that. I mean, I know there's some required distributions from that IRA, I believe, with the new Secure 2.0 Act law. So I would look into that and see when you need to deplete that account by. Okay. Okay. But you could use part of that money to knock out the mortgage. You could use future income and just let that money ride and continue growing for you.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Yeah, our hearts are with you all. And speaking of which, John, our first call is from California out here. Nitish is with us. What's going on, Nitish?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
But I would use any money beyond your emergency fund to start knocking out that mortgage.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Yeah, you couldn't do your own investing.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So I would sell the Apple stock and be in a more diversified investment fund. Like you were saying, hey, Apple is a great company. I used to work there. I had some Apple stock. There's worse companies you could have invested in over the last several decades, but I still would sleep better at night knowing that was in a broad-based index fund that had a lot of Apple in it, but it wasn't 100% Apple.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
So I would do that either way, and it's up to you what you want to use those funds for.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Amazing. You guys are going to knock this mortgage out fast. What's your combined income now?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Okay. Great. Well, debt-free, making $90,000 with a $165,000 mortgage, you guys are going to be completely debt-free within, my guess, is three to four years if you do this the right way.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
What about by your 30th birthday? You guys have no mortgage.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
It sounds cool, but then you're like, crap, I got to put extra on the mortgage every single month without fail consistently.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Yeah, and this inherited money, that's just leapfrogging you. So I'm going to use that to create a legacy for my own family.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
That's it, man. That kind of goal and that kind of intentionality, you start to get your new wife excited about that. You guys are aligned with money. Like John said, you can stop talking about money. You can do more fun things with your life than have money fights. So we're rooting for you, dude. Awesome. Congrats. You can do things instead of money fights. That's what it's all about.
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
Luis, let's talk to Luis in Medford, Oregon up next. What's going on, Luis?
The Ramsey Show
It’s Never Too Late to Clean Up a Financial Mess
We're doing great. How can we help today?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
And that's why we recommend Delete.me. They help with that.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I love these reports. So far, get this, they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites, and saved me 77 hours of time. It's incredible.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I love it. So you got to be sure to check them out. Ramsey fans get 20% off their annual plans. Just go to joindeleteme.com slash Ramsey. That comes out to less than nine bucks a month. Super affordable.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Hey, you're still here? What are you doing? You do know that the rest of today's show is playing right now over on the Ramsey Network app, right? All you got to do to finish the episode is search Ramsey Network in the App Store, Google Play Store, or just click the link in the show notes to download the app for free. Yep, you heard me right, for free.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Then right there on the home screen, you can watch the rest of today's show. Bada bing, bada boom. All right, I'm getting out of here. Enjoy. We'll see you on the app.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Even if you get three roommates, you grow up fast when you're living with three dudes. All right. You start to learn some things and it prepares you for marriage.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
I'll tell you, my mom was just in town. Noah, I revert to a child, right? She's like, no, I'll get the dishes. I'll fold the laundry. There's just a piece of you that turns into a child when mommy and daddy are there. And so I think it's going to really help you financially, spiritually, emotionally, mentally to move on and do your own thing sooner rather than later.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
That's big. So, John, this comes up a lot. There's a rub between there's a thing this other person believes and they're projecting it onto me. And I love this person. I respect this person. And it's easy to say, well, just have a boundaries conversation and tell them to kick rocks and pound sand. But the reality is these are your parents. These are your loved ones.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Mm-hmm. Apparently multiple. This is plural guts. Yeah. I thought you had one. But I love that John has multiple. That's the kind of man he is. Yeah.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And hashtag biology and science. Hashtag microbiome. We'll look into that later. Hey, more of your calls coming up. 888-825-5225. This is The Ramsey Show.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
That's because he's in Canada.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Welcome back to The Ramsey Show. I'm George Camel here with Dr. John Deloney. One of the best things to do for your finances is to have a really good tax pro in your corner that you can trust. They'll help advise you on the best moves to make for your situation or for your small business, especially if you've had some big life changes in the past year. So do what John and I do.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Go to ramseysolutions.com slash tax pro to find CPAs and enrolled agents in your area that have been vetted by the Ramsey team. Take the stress out of it. All right, Tyler is up next down the road here in Nashville, Tennessee. What's going on, Tyler?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Well, you started off the call by saying you were paycheck to paycheck, so it doesn't sound like you're coming from a place of strength ready to start a business or buy a house. So we've got to look at what's going on underneath here that's causing you to have no margin at the end of the month. Okay. So what is your take-home pay every month?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Okay, what will you be making then?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So why did your income get cut? You were making four times what you were.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Yeah, but you're working full-time and making $300 a week?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Well, is it an hourly job, or is there a salary? It's hourly. Okay, so what are you making per hour?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Okay, something's not tracking here, because that's closer to a $40,000 salary, so you should be taking home closer to $2,500 a month instead of $1,200.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
From Ramsey Network, this is The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Camel, joined by my good friend Dr. John Deloney, and we're taking your calls at 888-825-5225. Call us up and we'll help you take the right next step for your life and your money. Hunter's going to kick us off in Calgary, Canada.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Have you looked at your checks? No. See what's going on?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Right now is not the time to start businesses or buy a house. You're in a season of life where things are changing pretty rapidly. And so I would be looking for stability and starting a business. There's very little stability and there's a lot of startup costs. There's a lot of risk in that right now. Do you have any savings?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Okay, so your A1 is to get some savings. You said you have no debt to your name whatsoever.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So you owe on this trailer. How much do you owe, and to who?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Regardless of lines of credit or whatever. So we need to make sure the definitions are clear here because that's now your A1. With every future paycheck beyond your basic bills, necessities, you got to throw money at that thing, get it knocked out within a month or two. Okay. Then beyond that, let's get a fully funded emergency fund, three to six months of expenses.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
For you, that might mean 10 grand right now. And that's going to take getting your income up because this should not take a year or two to get 10 grand saved up. Do you agree?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Then beyond that, we can talk about investing for the future and retirement accounts, saving up for a house, starting a business. That's when you would do that. Once you have a financial foundation of no debt and a fully funded emergency fund. Okay. So you've got your work cut out for you.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
I love the dream of getting these businesses started up and investing for the future, but we got to pay for the past before we can build for the future and get some foundation under us because here's what happens. You try to start these businesses, one emergency happens, you're looking to a line of credit to save the day, and that's going to rob you from your future. So I appreciate the call, man.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
We're rooting for you, and best of luck getting that income up and with the move. A lot going on. Alan is up next in Orlando. What's going on, Alan? How can we help?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Sure. How can John and I help?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So how much did you put into these single stocks?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So you turned 50K into a million dollars? Just about. In a year? Yeah. It was two years. Wow. You and Nancy Pelosi are really great at stock trades, man. Good for you.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Well, if you feel like that 401k, it's super volatile right now if you are invested in single stocks versus mutual funds. So is it in single stocks?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Okay, so you rebalanced and you got out of single stocks and into some bigger funds. Correct. Okay. So I would not touch this money because I don't like paying the government anything more than I have to pay. And if you pull money out before that 59 and a half threshold, you are in a world of hurt. You're going to be paying probably upwards of 35, 40% for the pleasure of using that money.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Well, he did this all within his 401k. That's what I mean.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
If he had done it in a brokerage account, that would be a totally different story if it was in a non-retirement account.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So for the future, Alan, if you, I mean, I would still invest 15% of whatever your household income is into retirement accounts. And do you have, you said you have a house? I do have a house. Okay. What's left on the mortgage?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And what is your household income?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
You could at this rate. Because you're so far ahead. Yeah, I mean, at this point, that 401k is going to grow without you if you never put a dime in. I would still add to it. But to John's point, if you were like, hey, I want to just knock this thing out. I want freedom faster. It sounds like you're wanting to potentially retire early or do some kind of encore career.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
At an earlier age, is that right?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So at that point, if you've got 15% invested of your amazing income, that would be, let me crunch the numbers here, $34,000 a year, which is enough to max out a 401k and an IRA. Okay.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
right so anything beyond that i would just start dumping in a brokerage account and paying the house off with and that'll set you up to probably have you know the the freedom you desire by the time you're 40 with this level of income how old are you again alan
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Congratulations. Way to go. You and Nancy Pelosi, man, they're doing something, John. I don't know how. Maybe Alan's been following her stock next year. I thought I had a good year last year. I did not have that year. We need to be in Congress or Alan. That's the only options to build wealth fast. This is The Ramsey Show.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Welcome back to The Ramsey Show. I'm George Campbell, joined by Dr. John Deloney. Open phones at 888-825-5225. From time to time, we love to hear from real-life Baby Steps millionaires to see how did they do it? Can it still be done in America today? And we found just the folks, and that is Jefferson and Rachel in Twin Cities, Minnesota. How are you guys? Hi, how are you? We're doing great.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Thanks for sharing your story with us. Of course.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Congrats. That's amazing.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Tell us y'all's net worth.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Just hit the threshold. That's incredible. Okay, what is that made up of?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And Hunter, I cover in my book, Breaking Free from Broke, I went through every single thing I've ever heard about using credit cards, and I debunked it, not with just opinions, but with facts, with research, with my experience, with hundreds of others. And so I'm going to send you a copy of Breaking Free from Broke, and here's what I would do. Okay.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Incredible. How old are you two? Yeah.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Oh, my goodness. You guys are too young to be this wealthy. That's incredible. What's your household income?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And what was your worst year?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Incredible. What do you do for a living?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Oh, John's going to love that one. So she's a real counselor. That's awesome. Okay.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Okay. Do you remember your GPA?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
I was like, I bet hers is going to be sky high. Very smart. OK, she's a smart one. So I love it. So you're 33 years old. When did you really begin to focus on on this stuff? Did you catch it? Were you a financial peace babies or was this, you know, when you were out of college, you found out about the Ramsey way?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
You are solving for freedom, as John Deloney would say. Okay, so what was your mortgage interest rate?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Hey, as part of our future together, I want to make sure we're aligned with money because I know that money fights and money problems are one of the leading causes of divorce. And I want this relationship to succeed. Would you be willing to read this book with me about personal finance or listen to the audio book? Would she say yes?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Wow. So even though... You'll never have a 3.5% interest rate again on that mortgage. You're going to be stuck with a 0% rate with no payment for the rest of your life.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Do your friends talk to you like that? Do you have people in your life who think you're crazy for doing all of this and following the Ramsey plan?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Beautifully said. And you've been doing this for a while as far, you know, you've been investing for a long time, just have half a million in retirement accounts at 33 is really impressive. So you guys were doing a bunch of things at once.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
It sounds like you had some debt, you were trying to invest, you were trying to save, you got the house, you weren't aggressive about paying it off, but you started, you know, on the Ramsey way with some focused intensity and you went, man, what could we do if we just really focus and hunker down for two years?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Okay. I'm just making sure I'm hearing that right. I love it. Did you inherit any of this money?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So mathematically, that didn't cause you to become a millionaire, but it did help you get a foot in the door in the housing market. And I'm sure this house is appreciated in value.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Way to go. And now what's next? You're 33. You've got your whole life ahead of you. You're in Baby Step 7. What does the future hold?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Because then it's not you telling her. It's, hey, what do you think about that chapter? That was interesting. Like how he was talking about how you can rent a car without a debit card and the steps you need to take to buy a house without a credit score. And then it starts a conversation instead of you telling her how it's going to be. And I think that will help this go better. That's awesome.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And that's why we recommend Delete.me. They help with that.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
I love these reports. So far, get this, they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites, and saved me 77 hours of time. It's incredible.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Welcome back to The Ramsey Show. I'm George Camel here with Dr. John Deloney. Hey, you do not want to miss our two-night virtual event, Investing Essentials, hosted by Dave Ramsey and yours truly. Investing can be overwhelming and confusing, and it's not something that you can understand or learn in a 60-second social media post as you're scrolling.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So with this virtual event, we're going to walk you through how to maximize your retirement plans, how to pick mutual funds, how to get the most out of your money, invest with confidence. Plus, it's the only place to get Dave's personal playbook on real estate investing, explaining how Dave made hundreds of millions in property investments.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And this is not just a flex on Dave's part showing you, here's how much money I have. This is him breaking down the formulas he uses to make sure that he's getting the best returns on the properties, how he's sourcing his deals, and we're answering all of your questions at the same time.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So if you want to get clarity on how to invest with confidence, how to start building wealth, join us for Investing Essentials, March 4th and 5th. It's virtual. You can join from home. Tickets start at $1.99. Get yours today at ramseysolutions.com slash events or click the link in the show notes if you're tuning in on podcast or YouTube. Let's get to the phones. Alec is in West Palm Beach.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So you have the money in cash from this court settlement? Yes.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Because your financial advisor gets a pay cut if you cash out of that portfolio. Do you understand why they would be a little more likely and biased to get you to want to keep that money invested? Not saying they're a bad person. That's just the reality of what's going on here. I'll go one step further.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
What's he making 20%? Any advisor saying you're going to get 15% to 20% in this account is lying to your face. No good advice. Every advisor would be like, hey, here's been the historical return. We don't know what the future holds. Not you're going to make 20% if you just leave it. That gives me hemorrhoids on your behalf, Alec. Pull it out. Pull it out.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
You need insurance. That's a non-negotiable.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Oh, yeah. Easy. So let me give you some solace here that you're doing the right thing. You are very young. You said you're 23 and 24. You'll still have $200,000 invested. Let's say you just took half of what you're paying in rent, $1,250 a month, right? And you put that in an investment account now that you're completely debt-free with tons of margin, right?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
From 23 to 63, if you just did that, you would likely have $18 million in that one account. If you never add it, just $1,250 a month, even if you get a raise, just keep doing $1,250, $18 million from 23 to 63, and that's a 10% return on average. So I just want to give you some solace. That's great. You have plenty of time to build wealth.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
You're not 68 going, should I rob my entire nest egg to pay cash for a home? So this situation gives me a lot of peace that you are now freeing up your income for the rest of your life. And you're not desperate for that next job. You can do the work you love, and you don't need to go make six figures.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And when you said, here's what bothered me, Alec, you said, I'm just a carpenter, just a lowly carpenter. Like, I need to knock the Eeyore spirit out of you. Yeah, Jesus was one of those too, dude. You're in good company.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
What's going on, Hunter? How can we help?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Guess what? This gives you freedom. You can, like, move one day to wherever you want and pay cash.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
That's pretty sweet ROI. You paid cash for it, no debt?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Welcome back to The Ramsey Show. Open phones at 888-825-5225. The Ramsey Show question of the day is brought to you by YRefi. YRefi refinances defaulted private student loans, which are different than federal student loans. YRefi refinances your defaulted private student loan and builds a custom loan based on your ability to pay.
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The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So kick your private student loan debt out of your life by going to yrefy.com slash Ramsey. That's the letter Y-R-E-F-Y dot com slash Ramsey. May not be available in all states.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Oy, oy, oy. Well, the answer is easy. I'll tell you what I would do and what I did, which is put as much down as possible. And we put down, John, I believe for our first townhome when my wife and I were married, we put down 45%. So close to what he's doing. No regrets.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
What ended up happening was we paid off the mortgage way sooner within a few years because we had a smaller mortgage with a much lower payment, which means we had margin to throw at the principal.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So by doing that, we ended up freeing up our mortgage payment way sooner, and we had the ability to invest that payment at a very young age. So I would encourage Stravis to do the same and not see it as one thing or another. Should I put this in the equity of the home or in the stock market?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
I see this as a hedge going, hey, if I can get rid of this mortgage faster, it's going to allow me to invest more for the long term.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
else on there right and so go ahead and go in that into that with your eyes wide open yeah home ownership is more expensive than you think and so having a lower payment all that does is give you more margin to cover it without breaking a sweat you just kind of yawn and move on instead of oh my gosh we were already at the limit with this mortgage payment now we have to replace the hvac
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
You don't need that in your life. There's no need to. You have the money. You've done so well. And my guess is he's young enough that he's going to have plenty of time to build wealth, have compound growth on his side, and invest that 15%. And then once the house is paid off, invest even more, 20%, 30%, 40%, 50% of your income if you want. So great question, though.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
I would put down as much as possible. As Dave says, the best plan is the 100% down plan. But he knows that will get him lambasted in today's culture. People are going, Dave, you know how much a house is in today's. Yes, he does. He does. He's just saying it's the best plan is to avoid debt.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
But if you're going to do it, 15-year fixed rate mortgage, make sure that payment's no more than a quarter of your take-home pay. All right, CJ's up next in New Orleans. What's going on, CJ?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
How much do you make?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Goodness, that is mind-blowing. What do you do?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And you're really good at it, apparently.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
How much debt do you have?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
In what? What was the last one?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Oh, and credit card debt. Okay, cool. So tell me how a guy making $255,000 is still looking to lenders when he has the bank of CJ available. What caused you to turn to debt? Because you have the income. I mean, you're making, what, $15,000, $16,000 a month take-home pay?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So what would you say if you were going to list the top three things this money is disappearing into, what would you list them as?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So you're living life as a 29-year-old, going out to eat all the time. Is there outside pressure from friends, or is it just, nah, I want to get takeout again, another Uber Eats, who cares?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Okay, and you've been doing all of this on a credit card?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So can I tell you what I did that really helped me? I cut up the cards and I closed the accounts and I froze my credit. And if you do those, here's what's going to happen. You're going to stop borrowing money. It will freeze you. You're not going to be able to open up new lines of credit. And so right now we have to stop the bleeding. That's step number one.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
You asked me how to get out of the cycle. You got to just stop the behavior that's getting you into the cycle and keeping you there. Because the truth is you got less than a hundred grand in consumer debt. You make 255. I'm guessing you have some money in savings.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Okay. So once you have a $1,000 starter emergency fund, I would use the rest of the savings and knock out these credit cards and call it done and close the accounts. Sayonara. That leaves you with a car loan and a student loan. If you want to keep the car, your income can support it because is this your only vehicle, only thing with wheels and motors? Yeah. That's right. Okay. It's a nice truck.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
You make amazing money, so I'm not going to tell you you have to sell it. But if you're really going, hey, I want to burn the ships and restart, you could sell that thing if it's just too much car for you. But that, I mean, you're going to get out of this thing if you just go, I'm going to get on a budget. I'm bringing in 15 grand on average.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Amazing. I like making a bet with this girlfriend going, hey, let me be wrong. Cut up the cards, let's live our life, and let me be wrong if we end up hitting a wall because of this issue.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
When I get these big bonuses that come in, I'm going to throw all of it at the debt. What if you just told yourself this, I'm not going to even see this money. It goes to the account and it goes to the lender. Could you do that? Yeah.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Welcome back to The Ramsey Show. I'm George Camel, joined by Dr. John Deloney. Hey, are you staying on track with the baby steps? Well, we made a way for you to find out. You can take a quick quiz to check your progress and receive a personalized plan just for you. Simply head to the show notes on this episode, click on the link titled, Are You On Track With The Baby Steps? And complete the quiz.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Timothy is up next in Oklahoma City. What's going on, Timothy?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Doing well. How can we help today?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Per spending money. That's right. That's a fun game to play. That could be. I love that. Well, Hunter, hang on the line. I'm going to send you a copy of the book, Breaking Free from Broke. And in there, specifically the credit cards chapter and the credit score chapter, those two will unlock a whole lot for you and your girlfriend about how to live outside of the system. Yeah.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Oh, boy. I'm still stuck on the fact that you didn't buy a house. You thought you bought a house. What was the legal process for you to buy a house that couldn't even go into your name?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Oh, my goodness. Is there anything in writing?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
This whole thing just worries me. I mean, what if they don't get out of this mess? And you've been paying on a property that you have no claim to.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So just know that there might be a scenario where you go, hey, at least we had cheap rent while we stayed here. But it's not ours.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
I thought they couldn't get extra money. Isn't this down payment and you paying them rent considered extra money?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Cash money. Oh, under the table.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
But how much do you have left on the student loans? When are you guys going to be completely debt-free?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And then how much longer to get a fully funded emergency fund?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
That's why I wrote it, John. I wanted people to buck the system entirely because they go, I hear this, well, George, you can't live life without, you're so out of touch that you think you need a credit score and a credit card to live your life. I'm like, you're out of touch thinking this is the only way to live. You've been so brainwashed.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Okay, so let's call it a year. One year from now, you guys are completely debt-free with an emergency fund. That puts us in baby step four when we can begin investing. I would begin investing 15% while making rent. Any money beyond that, you can sock away to try to lower the loan that you'll have when you do take this house over. Okay. But I would just take a small loan out.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
You guys are going to knock it out quick, and so I'm not concerned about that, but I wouldn't hang on to the student loans and pile up money to make this transaction happen.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So you're saying you could get out of debt, get the emergency fund, and save up to $60,000 by the time this transaction is ready?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Okay. Well, once you free up the payment, that'll help even more. So I like this plan. I would have a goal to go, hey, by the time they're ready to make this deal happen, we have the money to buy it from them. Are you buying it at a deal or is this market value based on all the rent you paid?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Is what it's actually worth. And the money you put in with the rent down payment plus the 60 will be 105? Yes, sir.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And letting go of their house for less than half of market value.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
That's, yeah. This whole situation gives me the heebie-jeebies.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Let's see if we can help Sarah out real quick. Sarah, get right to the question. We're up against the clock.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So was she behind on payments for a significant amount of time? What happened?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
All credit cards. Okay. And is this all one credit card with one lender? Yes.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And is she able to stay current on all of her other debts? Is the only one in collections?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Okay. I would put these collections at the top of the list to deal with. I honestly doubt they're going to negotiate with you since they're such fresh debts. They may not take pennies on the dollar for this. You can help her by just being a support for her, but she's going to have to fight this thing and fight the behavior that got her into this mess.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
So if you can avoid going through court and try to find some kind of settlement agreement, a payment plan, whatever it may be, I would go that route to avoid this escalating. But there's nothing much else you can do if they already have a judgment against her.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Yeah, I don't know that it's worth hiring a lawyer to deal with this because she owes the money. And if they have proof of that, she's going to owe the money. There's not really a way around this to where she's going to get out scot-free.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Stack up as much cash as she can and see if they'll take it. This is The Ramsey Show.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
The system is changing. It's going to be an autonomous vehicle, John. Will you actually be driving? I'm going to keep my old truck just for that reason. With a stick shift. This is The Ramsey Show.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Welcome back to The Ramsey Show. I'm George Campbell, joined by bestselling author Dr. John Bologna. Taking your calls at 888-825-5225. To Canada again we go. To Toronto, Noah joins us there. What's going on, Noah?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Doing well. How can we help?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Got it. So they're saying, hey, you could leverage that money in the stock market instead of sinking it into a car.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And there are no guarantees in the stock market. And I don't know what they're invested in and what's going on in Canada. But I'll tell you here in the U.S., we don't know what the future holds. And there's a guaranteed return when you pay cash for that car instead of going, all right, I spent 15 grand. And in the end, I paid 20 with interest.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And now the car's only worth 10 by the time I pay it off. That's the reality of the math of how cars work. And therefore, cars are one of the dumbest things to go into debt for because they're continually going down in value while you pay interest on it.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Why did she pay off her car? Did they pay cash for theirs?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
If it's such a good idea, why aren't they doing it? They should be taking out as many car loans as they can get and putting it into the stock market.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
What a dumb idea that was. He could have been leveraging that in the stock market, Noah. Do you see where I'm going with this? It's okay to be misaligned with your parents.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And if it gives you any solace, I still disagree with my father to this day anytime we talk about money. So this is just a thing of life you're going to have to get used to. Me and my father do not talk about money anymore. We just laugh it off and go, thanks, Dad, I'm good, I'm good.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
But the truth is, Noah, you can do this on your own, and you're a grown man who probably will soon move out and have his own life, right? Right. Of course. And they don't pay your bills. And so they're not going to get a vote in your financial choices. And so you got to do what is in your gut is the best thing for your financial future. And you know too much to go into debt at this point.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
And so the next goal is how do I save up really quickly to get a car I can afford in cash? How long will that take?
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
I don't like this two year plan where you're saving up, you know, five, 600 bucks a month. You should be able to save up, you know, a grand a month and knock this thing out within a year.
The Ramsey Show
The Baby Steps Break You out of the Paycheck-to-Paycheck Cycle
Well, the longer you're tethered to mom's vehicle, the longer this is going to get played out where you're just intertwined with family finances. I'd love to see out on your own. And that's going to give you a sense of independence, maturity. And I've just seen it too often where growth is stunted when you stay at home for too long when you don't need to.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
And that's why we recommend Delete.me. They help with that.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
I love these reports. So far, get this, they've reviewed 27,000 listings on my behalf, removed me from 240 data broker sites, and saved me 77 hours of time. It's incredible.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
I love it. So you got to be sure to check them out. Ramsey fans get 20% off their annual plans. Just go to joindeleteme.com slash Ramsey. That comes out to less than nine bucks a month. Super affordable.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Well, I mean, you're just switching it up. So with the Roth side, you're paying taxes now and then never again. And so what you're saying is, well, I'd rather not pay the taxes now, but one day when you go to withdraw that money, you're going to pay taxes on it. So there's no way to really avoid the tax man. You're going to do it on either side.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
And if I'm in your shoes, I would just stick with the Roth. I don't like doing anything for the tax benefit. I know it stinks to pay taxes, but it's just part of making an income in America today.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
And so I would do any other thing you can do to reduce your taxable income through deductions and credits, but I don't think it's worth switching to the traditional side just to save a little bit on taxes.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
You're out of options as far as tax advantage retirement accounts.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Is it a high deductible plan or is it PPO? Do you know what it is?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
I was asking because if you have a high deductible health care plan, you can do an HSA, which is a health savings account, and you can actually invest through there with tax advantages. So it kind of becomes a bonus retirement account in that way, you know, outside of your Roth IRA.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Beyond that, beyond the HSA, a Roth IRA, if you have no other options that you can do, you could always go to a taxable brokerage account.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
non-retirement and just dump money in there into some s&p index funds okay and that that would give me a tax advantage then it wouldn't give you a tax advantage but it's another way to invest if you if you're not hitting that 15 are you debt free with an emergency fund currently
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Okay. If I was in your shoes, and again, you called our show, this is the way we do it, I would pause all investing, you know this, and knock out the student loans, get an emergency fund, because right now you are skating on some thin ice. All it takes is one more emergency and you're back to using the credit cards.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
It's going to move you backwards and you're not going to be able to build wealth because you're going to be dealing with all these ankle biter things. And so getting rid of that debt, getting the emergency fund in place should be your A1 before you get to investing.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
There you go. You got it. We are here for you, Lisa.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
People think, wow. The government blessed me with free money. That's not how it works. You just overpaid your taxes throughout the year, and the government says, hey, you overpaid. Here's a little bit of money back. So here's what you should do instead. Adjust your withholdings to keep more of your earnings during the year. Get to as close to zero as possible. You don't want to owe too much.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
You don't want to get refunded too much. All right. Myth number two. Higher tax brackets are bad. Oh, boy. This one's hilarious. People go, well, Ken, I don't want to get a raise. I'm going to owe more in taxes.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
That's not how it actually works. Only the income within each bracket is taxed at that bracket's rate. So it's this much up to 10%. Then the next batch is up to 12%. So you're not actually paying 22% on all of your money. That's right. There's marginal and effective. So you've got to look at that. Earning more increases your income, not the overall tax rate.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Gosh, yeah. Paying interest in order to gain a tax deduction is very counterproductive. If your tax advisor is suggesting you do this, you should fire them. It is way better to pay off your debt, save on the interest payments, and free up that income. Never do anything just for the tax deduction.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
They go, well, I can't pay what I owe, so might as well just not file at all. Yeah. That's how you go to jail. That's not a good plan. So the penalty for not filing a return or filing late can be up to 10 times as much for the penalty for not paying on time.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
So you still have to file the return by the regular deadline, pay as much as you can by the deadline, and then set up a payment plan with the IRS for the rest that you owe. But you got to file by the deadline. That's right.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
That's fair. Well, here's the good news. You're probably better off filing your own taxes if you have a simple tax situation. So if you're a normal W-2 employee and have a lot of life changes this year, then it's fine. You can use Ramsey SmartTax and file on your own.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
But if you have a more complicated tax situation, you own a business, you bought a home, you had a baby, you're Ken Coleman, you want to consider connecting with a tax professional. Yeah, that's right. Regardless of all this, you got to file by April 15th. The deadline is upon us. And if you're ready to file online, be sure to check out Ramsey Smart Tax. It's tax software that's easy to navigate.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
It is foolproof. Even Ken Coleman could do it. That is true. Go to ramseysolutions.com slash smart tax or click the link in the description if you're on YouTube or podcast.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Yeah, well, and this stuff is all over TikTok and social media. That's why I bring it up, to let you just swat it. They're going, hey, let me go buy a G-Wagon so that I can write it off.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
As if the write-off is better than saving the money.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Well, it gets a lot of clicks on social media, and then people go, well, it makes sense, and then your tax pro is telling you the same thing, because that's what you want to hear. You want to go spend money? Great. Just write it off. It's not a dollar-for-dollar deduction, and it's unwise to spend money that you don't need to be spending. That's not how a successful business is run.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Amazing how that works. More money. Who knew you'd rile me up about tax myths on a Friday? Well...
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Is he in prison now? Where is this guy?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
I'm so glad you called. You did not sign anything with these people, did you? Not yet. Please don't. Please run so far away that they can't see you anymore. They can't contact you, block their numbers. These people are not here to help you. Do you understand how these work? So they tell you, hey, we'll reduce your debt one easy monthly payment. Your life's going to be so much better.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Here's what actually happens behind the scenes. They tell you to stop paying on all your debts, stop paying your creditors, let your accounts go to collections, which tanks your financial world.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
then instead of sending your payments to the debtors you send it to them right they put it in an account and they hold it for you and they wait months sometimes years to negotiate a lower lump sum and they charge you for it that's the fees you're talking about so you pay thousands of dollars for someone else to attempt to fix your financial mess while taking your financial world right now the creditors they don't have to do any of this they can still sue you they could take you to court
The Ramsey Show
Stop Watching the Market—Start Building Wealth
And even if they do settle a debt for less than you owe, the IRS considers the forgiven amount as taxable income. So you still have to pay taxes on that difference. And so instead of doing the shortcut, I believe in Uche and your ability to pay off this debt on your own without this shortcut that's going to really harm you in the long run. So here's what you do instead.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Pause everything you're doing in your financial world and cover your four walls. Can you cover your food, utilities, transportation, housing with your current income?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
That's your four walls. So you need enough to cover the basics, nothing more. And then beyond that, we need to make the minimum payments on our debts. Can you do all of that right now?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Okay. And then do you have anything left over to throw at your smallest debt? No. Beyond your basic bill. So what is your income right now?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Okay. Are you doing any investing right now?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
So how much do you have in savings? Do you have $1,000 saved yet?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Okay, so that is your A1. You're going to cover your four walls, nothing more, cover all of your minimum payments. Any extra dollars need to go to a savings account until you have $1,000. That's going to help you cover those ankle biters like you're mentioning. Okay. Okay. Then once you have $1,000, you're going to move on to the debt snowball. That's baby step two.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
List out your smallest debt all the way to the largest debt and just attack the little one with a vengeance while you make minimum payments on the rest. So what is the smallest debt if you listed them all out?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
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The Ramsey Show
Stop Watching the Market—Start Building Wealth
Do you have any family? Do you have kids?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Okay, and where were you living before?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
So what would it cost you to rent somewhere? Let's say you got rid of the camper.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Today's question comes from Marissa in Oregon. My husband and I are working hard to pay off our debt. We set our budget each month and try to stay with it. Our problem is that we have way too many auto withdrawals coming out of our accounts. I started a calendar to track our finances, but that doesn't seem to help. What advice do you have regarding budgeting for scheduled withdrawals?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
I think Ken fell asleep while I was... My second reference of withdrawals, he was like... I'm losing it. Okay. This is actually a good question. It's a really good question. It's very tactical, but I think this will help a lot of people out there who are also struggling with this. So when you have auto withdrawals, they're on auto pay.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
The electric bill is going to come out on the 17th every single month. So you say that you're setting your budget. I don't know what budgeting method you're using. You didn't mention that. I personally use the EveryDollar budgeting app. You can jump on there and use that for free, get it in the app store.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
And what I love about this is that you can set the due dates with each item in the budget, each transaction, and you can have reminders in there. And so one thing you can do is with the premium version, there's a paycheck planning tool where you can see exactly when you're going to run out of money based on when those bills are coming out.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Well, better is, I want to argue with that word. I don't know that your quality of life is amazing right now, living in this camper on your mom's property. I think you need to stand on your own two feet and do some sort of work that you can do because I don't know that this is going to provide enough income for you to cover for the rest of your life. When does this workers' comp end?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
And then the process would be call the utility company, get online, and you can change the payment date within a certain window to say, hey, I need this to come out on the 16th instead of the 14th so that it can come after the next paycheck and not before. And that will help you over time. And it sounds like you guys are also – you're running it real tight right now.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
I would keep a buffer of $100, $200, $300 in your checking account. Yeah.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
so that you're not running up to zero and overdrafting that's what you want to avoid here so doing all of that will help and over time it's going to get easier as you understand when these bills are coming out but doing that every dollar budget's really going to help you understand paycheck one hits here here's all the bills that come after it paycheck two hits here here's all the bills that come after it and over time you'll get it dialed in and you'll you'll start making that progress
The Ramsey Show
Stop Watching the Market—Start Building Wealth
No, let's stop. Well, I'll tell you this. Bankruptcy is not your answer. You guys are the solution to this problem. And so we're going to get you out of it. You're working full time?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
What is your, is it an hourly rate? Who's setting this? It's $15 an hour. Okay, I think you need to be making more money doing something this technical. Better job, better job. So let's just check that off the list.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Okay. So you got another 17 years of this 2783, but that's not enough to cover your bills and have a life.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
You need money now. Yeah. Not I hope to make a commission seven months from now to sell my first house.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
I'd be working 60 hours a week doing retail and you'll make more.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
um so i knew i had nothing together um all right well listen to george here i think here's how we pay here's what happened you got a baby on the way and it was a reality that's right and you went oh my goodness i got to be like an adult all of a sudden right yes and your wife is feeling the stress too is she currently working doesn't care about money
The Ramsey Show
Stop Watching the Market—Start Building Wealth
She does when she doesn't have it, and she can't feed her baby. She's got to start caring.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Well, you're going to need to invest the money. You don't need a big portion of it right now other than paying off this debt, which I would just suggest selling this camper and getting rid of it. Are you underwater on the camper?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
You need income ASAP. The debt, I'm guessing the minimum payment is a few hundred bucks?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Okay, and you owe $12,000, and it's a car?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
You need to sell that car today. It's worth 30 grand and you owe seven?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
So you could make $23,000 from this sale, use that to pay off the rest of your debts, and still have money left over to buy another car used in cash. You hear that? You just solved the problem right there, Alan. And then the next step is let's get our income up and start stacking up cash so that we have some when the baby's here.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
You guys are going to be debt-free with an emergency fund by the time this baby arrives into this world. Mark my words. And we're going to send you Financial Peace University. You and your wife sit down, watch all nine lessons, and then you will be on the Ramsey train on the path to building wealth.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
So you owe 12K. What is the camper worth?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Raise your hand if you've already filed your tax return. Ready? Go. Okay, I can't actually see any of you, but I can feel it in my bones that not enough of you are raising your hands. Y'all need to get on over to Ramsey Smart Tax and file your dang taxes. Ramsey Smart Tax is a 100% accurate tax software that won't pilfer your wallet or surprise you with garbage hidden fees.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Plus, it's powered by TaxSlayer, who's been trusted in this industry for more than 50 years. Go to ramseysolutions.com slash smart tax and file with tax software you can trust. That's ramseysolutions.com slash smart tax.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Okay. So you could profit off of that, and then what's the credit card balance?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
So you could sell the camper, use the profits to pay off the credit cards, never touch debt again, build up an emergency fund with some of the settlement money, and invest the rest.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
I love that. So it wasn't just a never ending journey. There was a destination and you know where it was. And so it's like you're going on a road trip, you know, the ETA.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
And that's what that did for you. Having that goal set and going for it. And did you stay on track the whole time? Did you exceed your goal?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
And how did you go about doing that? Is that hand-stitched? Is it embroidered?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
I think this could be your next side hustle.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Making personal finance-themed clothing. How much did the jeans cost at Goodwill? Eight bucks. Eight dollars, Jordan. That's your kind of jeans right there. That is thrifty. Wow. I love this so much. So what's next for you now? You're debt-free. You're still young. You've got time on your side.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Well, you're going to start a new chapter now, and it's been a long time, and I think you've been stuck in this sort of fight or flight, and then all the grief of learning that this money's gone, and the frustration, the resentment, the anger that you must be feeling. There's a lot going on here, and I think we just need to move forward. And I hope that you can get some resolution.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
What if he popped up behind the wall? No. That would be epic. That would be good television. Look at her.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
The weddings, the birthday parties, the girls trips. It had to be, hey, I'm on a journey. You guys know I'm going to become debt free. And now they're going to be asking you questions going, hey, tell me more about that plan you did. Because we make like the same money and I got all this debt. And if it worked for you, could it work for me? Have you been encouraging friends now?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
We got a little gift for you, a parting gift. Two every dollar premium subscriptions. Good for a year. You can use those. You can pass them along to one of the friends you're encouraging. And that's our parting gift for you joining us here in Nashville.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Who did it better? Who did it better? I don't know. I think you did it better, George. I might trade in my skinny jeans for some of those right there.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
So what would it take for you to be able to do some sort of work? Is it physical therapy, rehab, therapy? What would it take?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
You're going, hey, we're going to play until the ship goes down. Get off the ship, man. Get off your bleeding money.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
You're not. You're drowning. It's called a sunk cost fallacy. I put money into this. I was hoping it was going to work. Take what you can get out of it and call it a stupid tax and move on with your life. You took on a lot of risk and it didn't pan out. And that's okay. We've all done stupid stuff. I'm not here to beat you up. But I'm telling you, man, now is the time to get out.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
You're going to be calling us back saying, I'm doing even worse now. I thought it was going to work out. None of the calculations make sense. This is a third grade math problem. You are bleeding money every single month. Get out while you can. It's only going to get worse.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
I don't do anything to hang on to a stupid interest rate, and it's only going to harm you in the long run to stay in this thing.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
I know you'll be sad to lose your interest rate, but at least you won't be bleeding money out because you're losing money. Even if it was breaking even, it would still be a bad idea, but you're losing money on this thing every single month. What's your income right now?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
And so this is not money you even need, even if it was working out. It's still not worth this much.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
But as Dave Ramsey would say, you can out earn your stupidity for a long time. And so I get that you don't feel it as much in your budget because you're going, well, I got margin, but you're not running a charity here. If you want to run a charity, go start a charity. But you got into the real estate business to make money. And it's not worth hanging on to the appreciation.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Could you do something from home, customer service? You're talking to us, and so I feel like there's got to be something out there you can do to create some income.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
It's not worth hanging on to it for the interest rate. I would just get out and next time you buy real estate, do it in cash and do some due diligence to make sure that it will ROI for you. Okay. And you'll be able to do that fast. Okay. I mean, are you debt free outside of these mortgages? Right.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Okay. How quickly can you pay that off once you get rid of this house?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Can I be honest, Doug? For a guy who makes $220,000, your plan sucks. It's going to take you a year to pay off $35,000 making $220,000?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Yeah, about $16,000, $16,500 a month, roughly. I mean, basic math says you can get rid of this thing in a few months. $35,000, throw $7,000, $8,000 at this thing, get your expenses low. I think you've been living high on the hog for a long time now.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
You could be making $300 a year from now, and you'd still have debt hanging around. There's no reason a guy as successful as you are is hanging on to any level of debt. And you can get rid of this car debt fast. I would pause investing and saving. You're going to do that for like three months.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
I'm telling you, three or four months, you can get rid of this truck debt, be completely debt-free, free up the payment. Get back to you have an emergency fund in place.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
You could liquidate most of that savings, throw it at the car, at the truck, and be done in, let's say, two months. 60 days, this truck is gone between your savings and your cash flow and selling this other property. You're going to be in a really good place four or five months from now if you follow this plan. Okay.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
And then you can save up and buy real estate real quick, making $220,000 with no payments in the world other than your mortgage, which is reasonable considering your income. Is it a $3,000 mortgage on your primary?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
That's a hefty mortgage for sure, but it's doable if you continue this trajectory.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
And I got riled up because he's too successful to stay in this mess and quagmire doing 17 things at once.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Am I right? Yeah, I was getting riled up. And Ken, thank you for just peeling back some layers.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Speaking of, I got a clip I want you to react to real quick before this hour is up. I think you're going to have a really good take on this. Can we play it, James? Okay.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
It's kind of a weekend at Bernie's vibe you get going on. It almost looks like a cadaver that's being moved.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Watch the slap. Oh, man. If you weren't watching that on YouTube or wherever, you got to get that on video. You can't just listen. So I hope that convinces people to tune in. And I got to say, Ken, you have some moves. And that's generous.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
That's too hot for TV. We can't even air that. It's too much. You're doing a push-up.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Side gigs for a decade? I'd rather see you get your full-time income up. But let's dig into the numbers here to see what's actually going on. It's time for a budget-ectomy, Josh. Yeah. Okay, what is your income?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Okay. And you're saying you can't invest 15% once you're debt-free? You're not going to have the margin to do it?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
So you're talking about investing $750 a month. That's what 15% is of your gross income. And so when you do your every dollar budget and you list out your take-home pay, now it's coming out before it hits your bank account. You have a 403B through your employer?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Okay. So once you're there, you invest 15%. Whatever's left becomes your take-home pay that you're going to pay all of your bills out of. Okay. So it may not be as much of an issue as you think, as long as you can live off the rest of that take-home pay.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Well, that's on the net side. You're looking at your budget with your take-home pay. So it would reduce your gross income by $750. So if you were making $5,000, what's going to actually end up in your bank account is $4,250. Okay. You tracking?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
All of your clicks and eyeballs going, oh my gosh, it's all coming down.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Yes, we would count that as half of your 15%. So we would count it as three. You would still need to invest another 12.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Yes. But I'm thinking here, what were your debt payments when you started this process? What were your total debt payments per month?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
It's going to be okay. Calm down. You're not cashing out your retirement today. That's right. Leave it alone.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Okay. So what I would do is once you're debt-free, you're going to start doing your budget. I would ratchet it up to 15% and then see what the deficit is if there is one. I think the numbers are going to work here. I don't know what all the rest of your expenses are and what you can trim out of the budget, but there's two ways to find this margin, either spend less or make more.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
So before you go sign up for a side gig for the next decade, I'd rather see us work on spending less and reducing our bills so that you have the margin to do this. And by the way, there's still other baby steps. You know, like you said, you want to pay off the mortgage early. Do you have children? No. Okay.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
So we can skip baby step five and we're going to move on to six, which is any extra income beyond the 15%, we can start throwing at the mortgage. But no, you don't have to treat that like a baby step two item. We move from intensity to intentionality when we move out of baby step three into four. So that could be a seven to 10 year journey. You don't need to do this in three years.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Go find a hobby. Keep investing. It's going to be okay. It's on sale. Look at it that way. It's been a while since it's been on sale, and it's on sale now. It's on sale. It's a good way of saying it. Next time you invest, those stocks are a lot cheaper.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
I think you need to enjoy life a little.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
As a teacher, would you want to take a summer off?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Well, the every dollar budget will tell you, but I want you to just make sure you're looking at the right numbers, gross versus net.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Because that will be deducted from each paycheck. So I don't want you to get spooked by saying, well, I don't have the money in the every dollar budget because that's just your take-home pay.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
Roth IRA you would invest on your own so that wouldn't come directly out of your paycheck that's not through your employer. Do you have a Roth 403b through your employer? No, I don't. They don't offer a Roth option. Okay. So yeah, you do match beats Roth beats traditional. So invest up to the match. That's 4%. Move on to your Roth options, which would be an IRA outside of your employer.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
And then if you still haven't hit 15%, you would move back. But it sounds like you will hit that with your employer, so you won't need to move back to it.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
You got this. Now do you believe, Jill?
The Ramsey Show
Stop Watching the Market—Start Building Wealth
I think so. And you'll make more money over time, right?