Jade Warshaw
Appearances
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
But people's tipping point is different to get there.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Your tipping point, to use Dave's analogy, you step on the scale and you see 185 pounds. That could be like, that's it. I've had it. I'm going to the gym. That might not be somebody else's tipping point. Somebody else's tipping point might be they go to put their jeans on and the button's too tight. Or they go to sit on the plane and they feel like they're too squished in on the plane.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Do you see what I'm saying? So you had a tipping point that scratched a niche that you had. She's got to feel that. And I think the way that you do that is you have these conversations. You make it very clear on the why. And... This is not a light switch. Very rarely do you have one about something major like this. Very rarely do you have one conversation and that's it. That's settled.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
We've decided. Usually this is more of a process. And some of the things that I think will help along that process, to your point, if you are living paycheck to paycheck, there are going to be many symptoms that are playing out in your lives today. So as those things play out, say, honey, this is just the type of thing. These are the types of things I want to make better.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Do you see how much struggle that was to pay that bill? And then you can start to show her, here's some of the symptoms that we're feeling and she's going to get on board. But I think the idea that hey, I'm just going to say this, she's going to be excited and we're going to ride off into the sunset in one night.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
I mean, the best question I remember when I used to listen to the show long before I worked here is what would life feel like if you had no payments?
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
I mean, we were putting this much away. What could we do with that money? What would it feel like to get our paycheck every, you know, twice a week or once a month, whatever it is. And it's just our money and we get to decide together the fun things we want to do with it. That's a great question to ask.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
That's so true, Dave. So true. It's an unrealistic expectation. You can balance each other out and push each other where one is falling off. You know what I'm saying?
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
They'll take it. They'll take it.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Interesting. So you know this about the in-laws. The in-laws don't know about your wealth, nor are they asking for you to do anything about it.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
There's no reason it shouldn't. You said you're making $1,800 a week now, and you're living at home.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
You got to have a plan. Yeah, no way in the world would I go payments on that.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
And you're living at home. You don't have the biggest expenses that most folks have.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
You don't have rent and you don't have daycare.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Right, right. I was going to say it. I didn't say it. I'm like, in many ways, we went easy on you because we could have said, listen, you've got the money. You make $7,200 a month. Pay it off in two months. Pay it. But I get it.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
And it could have been so much worse. It could have been bankruptcy. You know what I mean?
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Didn't you once tell me that somebody hit one of your cars in a restaurant parking lot?
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
So you moved all the way to Knoxville, doing the personal training thing, not making too, too much. But what's your point of staying there? Did you go just for the relationship or is there any other reason you're there?
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Yeah, what's that mean, help her get through PA school? Are you paying for it?
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
It's weird. Yeah. You wouldn't... It's weird. All of it. Yeah, I would move out immediately, basically, if you can. Like, get out of there. You guys need to separate your living situation.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
And here's the problem, you've created all of these high stakes that are causing you to make decisions you might not otherwise make. If you were just dating somebody and you lived in your house and she lived in hers and you lived in the state that you wanted to and you didn't follow her somewhere, The things that happen in the relationship, you could very clearly filter them as what they are.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
But now the stakes are high. You've moved all the way out here. You're sharing a residence. So it's not as easy to look at a situation and go, that's not for me. I'm going to hightail it out of here. Now you have to think about where you're going to live. Are you going to stay in this state? What about rent? What about this?
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Do you see how it makes something that should have been so simple, very, very complex with a lot of weighted stakes?
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Not go back home, just go back to Albuquerque.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Not to mama's house is what I'm saying.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Mistakes are research. They're a good way to learn what not to do and what works and what doesn't.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
I think it's excellent. Way to go. I'm proud of the guy.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
That's a good indicator of issues.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
I mean, just that first pass on this, it's your property and you get to choose what offer you accept. That's thing one. But if you're attempting to control, are you on the board at all? Are you part of that at all? Are you in leadership? No. No leadership.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
I'm fine with that. That part, I think it's fine. And it's your property. You get to choose. Yeah. The only thing that I thought you do have to be careful of is trying to manipulate it too much. The side of it that's on your side is your side. That's the property side. You trying to manipulate the church side to do what you specifically want them to do, I feel like you have to be careful of that.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Man, this sounds like some drama. This is some drama.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
That's true. That scene y'all were playing out, though. That sounded like a movie.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
There's also the mental side of it. I think for whatever reason, people break it up mentally and they go, well, personal debt is my personal debt and business debt is business debt. But at the end of the day, the same person owes both of those debts. Do you see what I'm saying? So that's another lie. Yeah. At the end of the day, you're still liable for it.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
So you have to decide what whatever your philosophy is. If you choose like this is my philosophy in life, then this is my philosophy in life, whether personal.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
And you can't out-earn bad money habits for very long. There's going to be an end to that.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
We didn't talk about this, but Nathaniel, I mean, you're in law school. You've got this big chunk of money. Are you thinking about like a prenuptial agreement? Is that what's caused you to hold off on telling her this?
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
We'll be right back. I recommend contacting my friends at Laurel Road today. Through their online application, you can get an initial rate quote in less than five minutes. And if you have a more complex situation, you can schedule 30 minutes to talk to an actual human being. Thank goodness. Laurel Road makes it simple.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
There are no fees involved, and you could save thousands over the life of your loan. You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Listen, nobody's coming to save you from your student loan debt. If you want it gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
If it's the ADHD-related, how do you see that happening? playing out long-term, will you just, and I'm not asking this to be facetious. I'm truly asking if you feel like it's related to that, how will that affect other jobs? Will you experience the same thing?
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
I mean, have you put it out on paper?
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
I feel like getting this on paper and kind of having a I like things on paper where I can see it with my actual pen in my hand and having the category that's like this is these are the things that are going to be present with any job, no matter what. I'm going to have to work 40 to 60 hours. I'm going to have to do things that I sometimes don't like. Right.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
You've got that category of things that are kind of non-negotiables. They're there in any job, no matter what. And then you've got the things that you know are related to ADHD, which is, like you said, staying on task might be a little bit tough. And you've got that column. And then you've got the column of things that really are specific to this specific job that you don't enjoy.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Yeah, you don't lead with the fact that you have a million dollars that you inherited, but I don't think that you keep it a secret for as long as you have.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
unless he's got a bunch of money sitting somewhere we don't know about i still wouldn't do it
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Right, but that's a lot different than knowing somebody just inherited a million dollars. Those are two completely different things.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
I mean, you didn't even consider it, Dave.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
All right. Today's question comes from Jenna in Nevada. She says, my husband is in the military. I am a stay at home mom and we're in our mid 30s. He really wants to purchase a cyber truck, which will cost about 80,000. We take home roughly 150,000 a year and our net worth is just over 950,000. I drive a 2011 car, which runs fine. Our only debt is $250,000 on a home, which is valued at $750,000.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
I hope you're tracking with me. We have $420,000 in investments, $50,000 in cash, and $20,000 of that is our emergency fund. I want to pay off the house before making luxury purchases. We'd save up to pay cash for this Cybertruck and trade in his current truck, which is worth about $30,000. Okay. Is it unfair for me to be unsupportive of his dream in our current financial situation? All right.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Let's sum it up. That was a lot of numbers. A lot of numbers. So they want to buy the Cybertruck. It's $80,000. He could trade in his current truck, get $30,000 for that, plus they have $30,000 available.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Yeah, but 20 of it is their emergency fund. So that gives them 30.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
So yeah. And I mean, honestly, here's the thing, $950,000, let's go ahead and round that up to a million. It could be there tomorrow, depending on what anybody in the offices do. So I would round that up to a million for this. I'm not going to be a Pharisee on that. And then, yeah, if you want to talk about the rule of it, being no more than half of your take home. You're right on the line there.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
I still think it would be fine. Dave, you can stop me, but I think it'd probably be fine to do it. You save up the other 20 if you want to. Um, I would be fine with doing this. You save the other 20. I probably wouldn't sell off anything in order to do it. I'd probably just save it up right quick. And I think it'd be fine to do it.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
You guys just have to decide together because in your mind, say doing the house is the next thing. And in his mind, you guys have worked really hard and now it's time to live a little. And I totally understand that. If I had to vote, I'd be on his side.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Well, honestly, that's more on his authenticity than her. Yeah, you know what I'm saying? I feel like he... Nathaniel, you're more of the problem here than your old lady.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
I mean, yeah, but I always like to save money. So for me, I'd still maybe look for something used, but it's not technically wrong if you did.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
And you know what, Dave? I'm going to give you a – not that you need a check on your side, but I am putting a check on your side of the board because they're in their mid-30s. So it's not like they've been at this for 30 years and finally he's getting his thing.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Dave, be honest. If we were talking about anything but a Cybertruck, would you change your mind?
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
And his current truck sounds, seems like it's all right if it's still worth 30,000. Yeah.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
That's right. And everybody's got to feel good about it. It's your money. So you both have to feel good about the decisions you're making with your money.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
That's good. Does she listen? Does she listen at all to the show?
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Have you sent it to her just to say, hey, I've been listening to this podcast. I really like it. You might like it too.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Okay. Yeah. I think you know this, but the way that I'm hearing it is you're going to.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
Yeah, it's meant to be controversial. It's meant to push people, you know, make them think.
The Ramsey Show
Your Feelings Don’t Build Wealth — Discipline Does
What happened? Can I ask you about like the catalyst to all this? What happened that you found Ramsey or that made you start listening to the show? What in your life kind of made you go, I need to look for something here?
The Ramsey Show
Be the Tortoise Not the Hare
Hey guys, this is Jade Warshaw. Listen, I get it. The student loan situation is bananas, but it's time to make progress, not excuses. So if your payment and interest rate have you treading water, refinancing could be the solution for you. Look, if I were in your shoes, I would contact Laurel Road today and get a free 30-minute consultation.
The Ramsey Show
Be the Tortoise Not the Hare
You'll work with a student loan expert and you'll go over your refinancing options. Hey, for refinancing to make sense, you've got to check certain boxes like making a good income. And bottom line, Ramsey's advice is that you only refinance if you can get a lower rate or a shorter term. Remember, the point is to pay off debt faster. Maybe you just need to keep rocking the debt snowball.
The Ramsey Show
Be the Tortoise Not the Hare
But if refinancing does make sense for you, Laurel Road offers low competitive rates and interest rate discounts are available for stuff like auto pay. Listen, you can't mess around with student loans. If you want them gone, you got to go hard. So go to laurelroad.com slash Ramsey to find out more and schedule your free 30 minute consultation. That's laurelroad.com slash Ramsey.
The Ramsey Show
Be the Tortoise Not the Hare
Laurel Road is a brand of Key Bank National Association.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
out of this car and get into a car that you can afford because no more car payments, right? So you need at least $5,000, $6,000 to make this thing happen, at least, right? So we're getting out of this car. And then after that, it's okay. We freed up $600. We can breathe a little bit. And maybe it's you picking up a side hustle.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Your wife, she's got the two-year-old at home, but at least it's one at home and not the others. And so what can she do to bring in extra income? And from this point on, it really is... You guys deciding how quickly you clean up this mess by deciding how much more money comes in because the ultimate goal is building wealth.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
The debt is standing in the way that you clear out the debt and then you get yourself that emergency fund of three to six months saved. Now you're gonna feel peace about day-to-day life, right? So if an emergency hits you, you're fine. And now you can actually start building wealth.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
You can start investing into your 401k if you have it, start investing into a Roth IRA as an option, but we've gotta get through baby steps one through three One through three first.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
so there is something to be said about, um, when you're going through the process of paying off debt, there's kind of this spoken or in some cases, unspoken thought that, okay, when we do this, we're not borrowing money again. Therefore we wouldn't need our credit score again. Therefore we can close our credit cards.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And so in your case, you're kind of thinking about, well, we don't plan on borrowing money anymore, but we want to refinance. And I can just tell you just from personal personal, um, situation, um, We have a mortgage and we don't have any other credit cards and we don't have anything else. And before we had our mortgage, our credit score went to zero.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
We purchased a home with a loan and our credit is like almost perfect. And all we have on there is our mortgage. So you might see an initial drop just because you're closing accounts, but it's not going to go to zero and it's not going to be terrible because you're still have something major like a mortgage that you're paying every single month on time.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And so there is part of that, that it's going to make it okay and it's going to keep it, you know, in the upper range. And so I don't think you have to be worried about that. But I kind of, my question for you is, Do you have any other qualms about your credit score?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Okay. Would you say that that's more than six months of expenses?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Because I do think that when you go and set out to follow the Ramsey plan, you have to know eventually your credit score is going to go to zero and you kind of have to cut ties with that old way of thinking.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Okay. And so you're saying she wants money on top of that. It sounds like she just wants a little slush fund so that when, if you go over a budget, it's all good, right?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
If I were you, I'd cancel them sooner than later so that your score has the ability to kind of do what it's going to do and then even out to where it's going to even out. And then when the time comes, who knows when these interest rates get lower, then you will have a clear indicator of what it will be and it won't be in that fluctuation stage.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
So when you ask her her philosophy on money and you're asking her, hey, like, are you at a point in life where you're done borrowing? How do you feel about paying off debt? Is she able to give an answer that has any promise?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Well, listen, the hard part is you guys are in a, the situation is made more complex because you're not yet married, but you're kind of in this situation where you're, life seems like you're married. So you feel like, listen, I have to step in and pay off this debt. Her debt's my debt. And so the whole thing is very confused.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And I think that as much as you can put some clarity around that and either marry her or not, but I would not start paying off this debt until you've decided if this is the person that you're going to spend your life with.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Our monthly payment is about $4,200 a month, including escrow and PMI, while our net take-home pay is $8,750 a month. Wow. Our annual gross income is 110,000, which means our housing costs take up about 40% of our income, which limits how much we can invest. We both have the potential for income growth, but today's high cost of living is challenging, especially with four kids.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
We're in baby step four, five and six, but still feel trapped. It's hard to see a finish line of no mortgage payment. Should we stay where we're at and wait for our income to grow or sell our house and move? This is... this is one of those reality moments, Rachel.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
I think that if you're, if you're truly engaged in what's going on financially in your home, these are the moments where it's like, it's really tough because for those of you who don't know here, we teach that your payment shouldn't be any more than 25% of your take home pay. And the reason for that is once it creeps beyond that, especially beyond 30% is you really do start to feel that.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And you start to experience what we call being house poor and, And your blessing on the house now becomes a burden, right? Because you're not able to have the margin to do the things that life calls for. I mean, in this case, it could be anything from child care. It could be anything from they're wanting to pay off their mortgage and they don't have any margin.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
That's for the birds. You go. Yeah. About how much time you spend at work. You go to work all day, eight hours a day. Some people far more than that. And then you you feel like you have nothing to show for. You can't enjoy your life. You can't do the things that make you feel like you're making progress in life.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Then there's the part of this equation, Rachel, where they do see a way for their income to go up. Now, there's been times people have called in the show and they're like, hey, I'm at 30 percent of my income, but I know that I have a raise coming up in the next 12 months. Yeah. And if we get that raise, you know, it'll equal out.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And so there's a part of that where if they said, hey, we see a place where we're going to get, you know, a 15% increase. Both of us. Both of us.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And that's going to happen in the next 12 months. Maybe there's a part of this where you can ride it out. That's right.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
But only if that's 100% absolutely going to be true.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Is it just because it's the same place where all of your retirement is and where all your investing is? Is that why she's not viewing it as an emergency fund?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
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 actual amazing relationships. I'm Jade Warshaw. I'm joined today by best-selling author Rachel Cruz. Thank you for being here with me today, Rachel. So great, Jade.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
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The Ramsey Show
Your Overspending Will Eventually Catch Up With You
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The Ramsey Show
Your Overspending Will Eventually Catch Up With You
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The Ramsey Show
Your Overspending Will Eventually Catch Up With You
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The Ramsey Show
Your Overspending Will Eventually Catch Up With You
could plus you freed up 500 you know a little bit less than that a month when you take in consideration the new payment um yeah you're gonna have to make some tough choices mama's probably going back to work you're probably getting rid of this car and you might have to consider what's in a part-time job and then the house yeah could be could be in the in play but i just want your habits to change as well george uh but you guys got this this is the ramsey show
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
All right, everybody, you're listening to The Ramsey Show. I'm your co-host, Jade Warshaw, joined by Rachel Cruz. And during the break, we were talking about non-negotiables. And so many of us face this, whether you are dating someone and, you know, you have to bring up those conversations, Rachel, about money, about, you know, religious views, possibly political views.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Like there's all these tough conversations to have. And when do you know when you're dating somebody, when you get to that point, that's like, okay, this is, I've hit my point, right? Like we talked to somebody who was in a relationship for three years and it's like, okay, maybe now's the time to start looking at this, talking about this.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
But it's hard to know, especially if you might see a little bit of progress and you're like, yes, this is progress. Maybe we're going on the right direction. But what would you say, Rachel, is... Let's call out some red flags of if you see this, this might be pump the brakes. Money-wise. Money-wise.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
I don't know if I... No, I'm talking about finances.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Well, let me be devil's advocate because there's somebody listening in their car and they're like, listen, I'm the one who my spouse keeps talking to me about. about Ramsey this, Ramsey that. And whenever I try to tell her my views on why I want to keep my mortgage payment and invest it instead, she's so close minded. Like she doesn't want to hear.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
She feels like she's found this plan and that's it. Like there's no like let's talk about it from that point of view. I'm her.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Not just you telling him, well, this is what it is.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Yeah, I think that's a red flag. I think if you're talking about the future, like say you're dating and you're talking about, okay, like when we get married, you know, what are your views on combining money? Like maybe they've been very open about their money up until this point. And you're like, yes, everything's going good.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
But then when you start thinking about, okay, when we get married, how is this going to work? Because my thoughts are that we would combine our money and kind of, have our goals together. And if they're saying, oh, really? Because I've worked really hard for my savings. And that for me would be tough, would be tough.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
I think it's a non-negotiable, but there's part, I'm not going to lie. There's part of me that wonders if there could be a journey there over time. Yep. So these are tough conversations, but I would urge people to start having them early. If there's one thing that I can say that I kind of feel like I learned in my marriage is we didn't talk about that dating.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Our dating time was very fun and not a lot of like... I mean, we talked about heavy stuff, but somehow the financial stuff just wasn't really in there. And then after the fact, it was like, oh, wait a minute. Luckily, there were certain things that we just naturally aligned on. Thank goodness. Yeah. But yeah, have those conversations.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
I just want to make sure we're covering this because... The screen says we can't save up an emergency fund. And is there something we're missing here? Is it just as simple as relabeling this money?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
That is because on the one hand, and I mean, even if it's not real estate, even if it's just one person, like I have this business goal or this aspiration, I want to open a restaurant, whatever it is. But their viewpoint is I go into debt to do this. And if you're the spouse who says, hey, I don't feel comfortable with debt. I don't like debt.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And they view that as you're not supporting my dream or you're not...
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Like, you don't believe in me. You don't believe this is going to work and we'll be able to pay it off. That right there. That's a very tough conversation to have.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Now, don't get me wrong. I still stand my ground because I feel like I'm not like, can we do it over time? Is there a way to not leverage debt?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And good stuff. All right. Let's go to the phone lines where we've got Anna in Houston, Texas. What's going on, Anna? Anna.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Doing good. How are you? Sorry. I said your name wrong. It's Anna, right?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Of course. And that's a great way of thinking. Number one, congratulations on the raise. That's excellent. Um, so if you're kind of new to the Ramsey show, we, we teach everything kind of through a series of baby steps, right? There's these seven baby steps that you can take that build on each other, um, to ultimately get you to this place of financial peace. Right.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And so the advice that I'm going to give you is based on that. So what, The first thing that we want to kind of create this secure platform for you is you just need a thousand dollars saved. Right. So if you can just out of that twenty thousand dollar raise or out of your bank account or whatever you have of money now, if you can just set a thousand dollars aside and just, OK, I've got that there.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And then the second baby step is, yeah, you pay off your debt because when you pay off debt, you're eliminating debt.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
that risk you're eliminating that financial uncertainty that's in your life and that that's usually the point of stress that people feel is oh my gosh I've got to make these payments or these debt collectors are calling me or my payment is due right that's usually the source of stress that people feel when it relates to their money so in your case
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
I would say, if you've got this extra money, congratulations. Let's put it to whatever baby step you're on so that you can keep going in the right direction to get to that ultimate financial piece. And it sounds like in your case, you would be on baby step two where you are paying off the debt.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
I mean, you could pay this off in 18, 24 months. Yeah. And honestly, when that CD matures, I'd probably put that on the debt, too, and knock it out.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
65 000 i i would do that and then once the debt is gone i'd save back up that money and i just keep it in a high yield to where it's like very liquid um but yeah listen i'm proud of you i think that you're doing all the right things you've got good instincts and good intuitions yes you're doing great taking great care of your family this is the ramsey show
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
All right, you're listening to The Ramsey Show. If you want to give us a call, it's a live show, so you can do that. The number is 888-825-5225. We'll get you on the line. Again, I'm Jade Warshaw. Next to me is Rachel Cruz. We're the ones that'll be taking your calls this hour. So let's go straight to the phone lines where we've got Samantha in Phoenix, Arizona. What's going on, Samantha?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Well, I think you guys both have a place where you need to concede a little bit because to her, what she wants is I wouldn't keep the emergency fund with the normal checking. We have Ally where we do all of our savings and then we have Chase over here that has other things. And so I wouldn't keep it with your normal day-to-day funds. But to your point, I mean, we recommend all the time.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Yeah, I would. This is definitely a storm. Yeah, for sure. I would categorize this as a storm. And we do say that when you're in baby step two, especially, there's a couple of things that would cause you to kind of pause. And that would be a baby on the way or some sort of storm or major emergency that is causing you to kind of have to just hold tight for
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Me and my daughter, but it's still a lot. How is your like financial situation? How is your home situation?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And what are you, is that just the outstanding, is that just the 20,000 is the attorney fees?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
You can keep it in a money market or you can keep it in a high-yield savings account. So whatever feels right. But... To Rachel's point, you do have that money. And so I think that you guys both have to give a little and take a little. You have to be willing to pull it out of a money market because for whatever reason, that's making her feel some type of way.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Does your ex have a lot of money? Is that why he's trying to, is he trying to drain you out on this?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
So what is there anybody around you that has the ability to help with this that wants to? Because the truth is, this is costing you money and it's costing you money that you don't have.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And I do believe like I'm I believe that the custody is going to end up with you because from what you're telling me, there's clearly track record that this is an abusive person, especially the fact that he's ended in jail for trying to violate this. So I have a feeling that this will end with you. But how long can you go down this track? Do you see what I'm saying? Yeah.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And then she's got to be fine with you putting it in someplace else that has a nice rate of return.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Absolutely. I mean, there's only $2,000 left on the car. What's the payment on that? What will you get back in your pocket monthly when you pay that off?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Good. So another $300. That's great. To Rachel's point, that's even more money that you'll be able to set aside. So yeah, like no disguising the fact that this is tough and, you know, you've got your work cut out for you in a lot of ways.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
But I think just being really intentional, still creating a plan and sticking to that plan, whatever you decide that plan is, is going to be really paramount for you walking through this. That's so, so, so, so tough. I know. I'm so sorry, Samantha.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
It sure is. All hour, we're going to be taking calls about your life and your money. So give us a call. The number is 888-825-5225. We'll take your call and we will give you our best shot at advice. I think we do a pretty good job, but I guess at the end of the day, it's up to you. So let's go straight to the phone lines where we've got Jason from San Jose, California. What's going on, Jason?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
I agree. I agree with that statement. And if you don't have to pay it now, I wouldn't pay it now. Forget the rollover. I would get out of it now if I could because you really don't need it. All right. That does it for that. Yeah, I think people forget all the time, Rachel, that there's a purpose to life insurance. It's not necessarily to make you rich or all of these other things.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
It's for anybody who's dependent on your income. If something happens to you, how do they make life work? That's what it's there for. Children, spouses.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Are you thinking about walking away from this?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And your husband's not. Is he? It's I'm guessing based on what you said.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Hey, do you suspect that there could be IRS debt as well? Cause when you tell me that all the business bills and all the personal bills and everything's together, that sounds like a mess.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
What type of business does he have?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
So he's making $26,000 a year. He's paying himself $26,000.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And what about you? Just myself. And what do you bring in? What's your payment from your business? I'm lucky if I bring $10,000 or less. So you guys combined are living off of $36,000 and you've got the $21,000 in car debt. And how much in credit cards? $206,000? 209. 209. Okay. And is there anything else that you think might be out there, not including the mortgage?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Primary. Primary. I want the place where you guys lay your head at night to be completely debt-free and peaceful.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Thank you for the call. That's a really, you know, that's an interesting thing, Rachel, because I do think that when it comes to savings, you know, you do have to keep it a little bit. It's got to be enough out of reach to where you don't, quote, accidentally spend it. But at the same time, it's got to be liquid enough to where if the water heater goes out and you can't cash flow it, you can get to
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Right. Right. How'd you find out about the 209? Just curious. Did he tell you or you discovered it?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Yeah, for me, this falls into what I what I would call a level of financial abuse and infidelity because he's keeping everything on his side. He's making moves without sharing them with you. And they're at the detriment to you and your family and your son. And I would push back on the fact that there's nowhere for you to go. There's always an option. But I can guarantee you this.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
It is not going to be a comfortable option. There's going to be no piece of it that feels comfortable or easy or right. You know what I'm saying? So I do think that you have to give yourself an ultimatum and you need to say, all right, what am I going to do? What are my limits? What are my boundaries? And what is my time frame for me to and and what?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
What is an indicator that this is moving forward or that it's staying the same? Like, does that make sense? You have to have something very real and very measurable for this situation. Yeah. Yeah. Right. Right. So whether that's.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Whether that's I'm going to offer counseling and I'm going to give him 60 days to agree to it or I'm going to ask him for these account passwords and I'm going to ask him for complete transparency and I'm going to give him 45 days to wrestle with that and get to that point. You've just got to make it very clear. Write it down on paper. If you have a friend, get a friend.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
If you have a pastor, find a pastor. But you need somebody who knows. Does anybody else know this is going on besides you? us two girls on the radio?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
So is he hoarding too? Like, are you in that sort of a situation?
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Your Overspending Will Eventually Catch Up With You
That's right. This is The Ramsey Show.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Tell us about your income. What are you making every year?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
So every month, if you look at your budget, how much is on that top item?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Okay, and then do you guys have debt?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Ooh, I bet you. Yeah, it's $1,000. Okay, what else? So you got the Jeep, the van. What else do you have? Are there credit cards? Do you have any other loans?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Okay, so that's fine. Those are fixed expenses on your budget, but do you have any other debt, which is a lump sum of money that you owe?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Okay, so here's the thing. I think you're having a hard time building wealth because your biggest wealth-building tool is your income. And right now, $1,000 of your income is going, or maybe a little bit more, is going towards your debt payments every single month.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And it sounds like I'm not sure, but it sounds like maybe you're trying to do a little of this, a little of that, a little of that over here. And the method that we teach you is going to give you focused intensity on one area at a time for the most part. So do you have any money saved?
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Okay, so let's go back to the essentials here. I think the first thing here is the budget. You told me that out of $6,000 a month, it takes $4,800 to run your household. So that means somewhere along the way, there's $1,200 left if you're doing your budget correct. But you just said you can't find a dollar. So something about that budget isn't adding up.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
So let's kind of let Rachel and I give you a quick crash course with the budget.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
The next piece of this I would do, okay, so Rachel's telling you to tighten up the budget.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
Yeah, you just bought this car for $22,000. It's a $600 payment a month, Brandon. Sell it.
The Ramsey Show
Your Overspending Will Eventually Catch Up With You
And yeah, and that's going to take. So let's put this in the timeline. So the first thing you're doing, what Rachel said, you're getting on your budget, you're getting a realistic budget, you're figuring out what can we cut so that this twelve hundred dollars is actually a reality. And it's you and your wife agreeing to that because you need that money so you can save up a little bit to get money.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Listen, you can look back on the track record. Let's play that out. Are they generous people? Are they always giving gifts? Big or small, how have they been whenever they've offered a gift? Or is this their first time? Because this is worth noting. If they are also receiving a windfall for a first time, they may not know how they're going to be as gift givers. Does that make sense?
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Like if I let's just pretend if I won the lottery today and I'm like, oh, I won the lottery, I'm going to help my whole family out. And I start giving away a million dollars to each of them. I might go into it thinking. that I won't have any strings attached, but because I've never tested that before, you might realize dang a million dollars.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
It has, it does have an emotional hold on you and you do have an expectation for what they'll do.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
So there is part of this that you do need to consider. Like, were your in-laws already wealthy people and they've already been generous or is this new for them? So these are some, I like this conversation.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
I kind of, if it were me, she can do what she wants. This is not a right or wrong answer. I feel like I'd be comfortable with taking the down payment on the house that we would have bought, that we would have been able to afford, right? You're just getting there a little bit sooner. I feel like that's fair and the safe option. I'll take the million, Alex. This is The Ramsey Show.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Okay. How did you give it? Was it a check? How did you do that?
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
I'm sorry. I had to let a little bit of my... I had to let it out a little bit. It's really scary, and I don't know what to do.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
none you you're not on the hook you look you are not on the hook for this money now this is your mom and i know that you feel some level of guilt or but i should probably but you you gave her the money you gave it to her retired that doesn't it doesn't matter at this literally at this point anything you say about to try to like make it better i'm going to tell you it doesn't matter you gave her the money she chose she chose
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
And now, for whatever reasons that she has, which don't matter, she wants that money back from you.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Okay. Here's what you could do. Now you said to your, you said, if you were really interested in feeling very clean, walking away from this situation, you said that the loan was 30,000 and you were supposed to split it. So that would be 15 K on you. Now, if you're telling me, Hey, I paid 5,000 towards this loan. I know that I paid 5,000, give her another 10 K and say, Hey,
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
I paid my half and that would have been it. If you wanted to do that and just say, I know I paid 15. You didn't do your thing, whatever. You could do that. But you're not on the hook for this.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
And you make the payment. Don't hand her any more money. Yes.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
No, no. Just log in and pay it. Say, mom, the only way you're getting this money is I sit right next to you. We log in and we pay it because you're not handing her. You're not funding her ridiculousness. Because she has not been a good steward with money. So that is ridiculousness.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
And you're not going to hand her $15,000 to do whatever it is that she's been doing, which whatever that was caused a student loan to triple. All right. So we're not participating in that. Really bad. Here's another thing we're going to do.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Dude, money does weird things to people, John.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Money makes people act up though.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
It doesn't work. Co-signing is stupid.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
And think about this. She said she was 17 when her mom signed that loan. Adults, be adults and understand that your kids were kids and you were adulting them at that time. Do not come after these folks for these Parent Plus loans. You signed them. Parent. Parent Plus. That means parent plus your money. That's who's paying it off.
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The Hardest Decisions Are Often About Money & Relationships
Be trustworthy. Be trustworthy.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Parents, act like parents. Parents, act like parents.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Oh, yeah. That's tough. I think you covered it. I'm not going to add or take away.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Right, right. You know, it's tough. I was sitting here trying to think of a similar situation. I'm like, when have I been there? Like, what have I, and it's, you can really live in the past and wallow in like, man, what I did, I spent $48,000. How could I have done that? But then it's like, what are you going to do next?
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Yeah. Let's just acknowledge it. Yeah.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Yeah. Progress, not necessarily perfection. Nobody's out here doing things perfect. We're all just trying to, just trying to make some kind of progress forward. Right.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
It's high. It's high and tight. Right.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
I don't know. I might be able to answer this one because I know about that.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Dylan, is there strings attached to this?
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
As in, I'm doing this for you, so somewhere down the line, there's going to be an expectation of something I want from you.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
And can I add something? Of course. She's going to come to your dinner. Well, I think she's going to come.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
yeah i mean the thing is that uh i mean she won't even come to the rehearsal which i which is the worst part to me i'm okay if she didn't want to come to the dinner she's saying that she's saying that and i don't know her so i may be totally off base i think that this is her last ditch effort to get her way on this and my yeah i would probably be willing to put
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
I put some chips on the table on this, that she's going to end up there. I don't think she's going to miss her son's major days over this. Now, maybe I don't know her, and I'm completely wrong, but something tells me that when the rubber hits the road, she's going to be there.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
I mean, and you called in here saying, should you do that? So you definitely considered it. Let's be honest about that.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
What does she earn at that job?
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Live from the headquarters of Ramsey Solutions, it is The Ramsey Show, where we help people build wealth, do work that they love, and create real, actual, amazing relationships. I'm Jade Warshaw, your host, your other host today, Dr. John Deloney. He is the author of Building a Non-Anxious Life. He is also the host of The Dr. John Deloney Show, which is popping off, if I do say so myself.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Dude, look, when it comes to these weddings, it's like that. Like... If I had done what all the parents had wanted, I would have been married in a different state. I would have gotten married on a different date. I would have gotten married in a different dress. They all have their preferences, but at the end of the day, it's your day.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Is there something that she could find in her field to replace $4,000 a month? I'm thinking yes. Yes.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Okay, but it's not the last job she'll get hired in.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
You know, John, people say, you know, people call in and they thank us and they're happy with the results of the plan. And, you know, we said and we weren't joking around. He's the one that did the work there. And I think sometimes we've seen it on previous calls. I think sometimes with Financial Peace University, people kind of get it in their head that it's a magic trick.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
And then if I just take the class. the class will do its magic work and I'll be magically where I wanna be financially. And that's not how it is at all. You get the information and you get to choose whether or not you're gonna implement it. You get to choose whether or not you're going to go all in. Cause I mean, when you really stop at like,
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
We know it's a plan that works for people who choose to work it. We know that it's helped millions of people get out of debt and change their lives and not just get out of debt, but go on to build wealth and become baby steps millionaires and things like that. But those are the people they choose to show up every week, right? Because it's nine weeks.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
So they choose to say, this is a priority for me for nine weeks. I'm going to cut out and carve out this area of my time. I'm going to show up, whether it's in person or online, because you get your choice. And they're the heroes in this story. It's not us. We get to, like you said, be on here and be goof-offs on the radio. And for some reason, people listen to us and it's amazing.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
But they're the ones who carve out that time. They do the work and they're the ones that see the turnaround. They see that improvement. And it doesn't take long. Most of the people who really dig into Financial Peace University, man, they're seeing like eight thousand dollar turnarounds lickety split, you know, within the first 30 days and things like that.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
So this that call was really a testament to not only it's not about the plan, it's about the plan plus the person. Right. And plus their involvement in it. And that's when it works. So if anybody's interested in going through the same plan that helped my guy out, come on. Tornado blew down his house, and yet here he is. Financial Peace University.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
You can find that going to ramseysolutions.com slash FPU.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
If she were to call in today, what would she be telling us?
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Yeah. And so short memories. Yes.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Is she coming home every day saying, I want to quit, I want to quit? Or is she coming home every day just being like, gosh, my boss is such a jerk. What a butthead.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
You make a great point because it's true. And I don't say this to be like a fatalist or to be negative, but you cannot plan your life based on best case scenarios. Like so many times people call in and I've been guilty of it. It's like you have this idea of something you can do, but if you really stop to break down your plan, everything has to be perfect in order for it to work.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Not one domino can fall in order for it to work, right? And then what happens? That one domino falls that you never perceived could fall, and you're like, holy crap, everything's caving in on me, and I don't... And that's why things like this are so important. I mean... One one call we had the girl's got diabetes. Right. And she's trying to get her medication.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
How great would it be if that's never an issue for her again? She's just got the money piled up. She's got the financial piece. You know, I heard you talking about your electricity, electricity problems. And it's like to just be able to up. I mean, you can just up and pay that bill.
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The Hardest Decisions Are Often About Money & Relationships
But I know there's plenty of people listening who if something happened and the electrical went out on their house, they'd be up a creek. Because there's no margin there. There's no room for error. My AC went out the other week. It was happening to be one of the hottest days and my husband was out of town. The hot... It was like, no big deal. All right. Nobody likes to pay for things like that.
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The Hardest Decisions Are Often About Money & Relationships
But do you know what I'm saying? Just to have that peace of, we're good.
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The Hardest Decisions Are Often About Money & Relationships
Oh, is that your deductible?
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The Hardest Decisions Are Often About Money & Relationships
Can you go down in value on it? What's it worth?
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The Hardest Decisions Are Often About Money & Relationships
What would happen? You owe 12, it's worth 11. What would happen if you sold that and went down half the value and just bought yourself a little truck that'll get you? Is there anything? Do you see what I'm saying? Like, this is temporary.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
That might be a conversation. If she's coming home every day and she's, you know, trashing her job, it's making you feel confused. You can have that conversation with her to say, listen, if you love your job and you're happy, but you come home every day and complain, it makes me think that you need to move on.
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The Hardest Decisions Are Often About Money & Relationships
Well, if it's worth 11,000.
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The Hardest Decisions Are Often About Money & Relationships
And if you don't want me to think that you need to move on, then I need to hear both sides of the story. I need to hear the positive stuff. And in that way, it's a little bit more balanced and we're just normal people talking about day-to-day life.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Yeah, because even if you can find a couple of thousand, like even if you can find a couple of thousand from selling things, you visit a local church and say, hey, is there any, like, is there a ministry here? What can I do? Can I serve to earn this money? Like whatever you can figure out, even if you're closing that gap with cash in some way, that's going to be worth it to you.
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The Hardest Decisions Are Often About Money & Relationships
You're listening to The Ramsey Show. Next to me is Dr. John Deloney. I'm Jane Warshaw. We're taking your calls. We mostly take your calls. It's a live show. But today we have a question of the day that's coming to you from WhyRefi. Today's question of the day brought to you by WhyRefi. So now we don't recommend refinancing on everything, but for distressed private student loans, there is WhyRefi.
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We trust WhyRefi because they help you with low fixed rate fixed interest rate. They help you get a low fixed interest rate you couldn't get anywhere else. To help you stick to your budget and get out of debt, learn more at yrefy.com slash Ramsey. That's the letter Y-R-E-F-Y dot com slash Ramsey. May not be available in all states.
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The Hardest Decisions Are Often About Money & Relationships
What should I do? If I had a beard, I'd be stroking my beard on this one because this is ridiculousness.
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The Hardest Decisions Are Often About Money & Relationships
There's a word. Oh, boy. Okay. It's not good. If you say yes to this.
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The Hardest Decisions Are Often About Money & Relationships
yeah if you're not the gravy train ends like at that point like if you if you get divorced you don't get to say oh and will your parents please still pay for my you know it's like being at the golden corral and you cash out and you get your ticket and you walk to the parking lot and then you see them bringing bringing prime ribs out yeah you don't get to go back wait a minute wait wait wait i'm gonna back a truck up here and take all the prime rib dude you cashed out cashed out
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The Hardest Decisions Are Often About Money & Relationships
Somebody else gets the prime rib.
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The Hardest Decisions Are Often About Money & Relationships
Wow, yeah. You left. This is a boundaries conversation, I'm guessing, John.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
You don't get both sides of, you can't have your cake and eat it too. If she says, I want a divorce, all right, boom. And I definitely wouldn't drag the in-laws into it. That just makes it even more messy.
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The Hardest Decisions Are Often About Money & Relationships
Yeah, this sucks. And if I could be ridiculous for a moment, her timing was terrible. I mean... She must feel some type of way. Like if I'm like, gosh, let me... I want to finish my MBA, but I don't want to tell him.
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The Hardest Decisions Are Often About Money & Relationships
We don't know. That's the thing about these questions. We never know. You could, you know... throw a lot of different wrenches into this subject. But at the end of the day, it's like, if you say you're done, you're done.
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The Hardest Decisions Are Often About Money & Relationships
Can I ask you a question?
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The Hardest Decisions Are Often About Money & Relationships
Um, I'm not trying to trip you up in any way. So on the show, on the show, we talk a lot about, um, money obviously. And we always say that, you know, one of the main causes of divorce is money fights and money problems. You're a person who's in this knee deep all the time is where does it start?
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The Hardest Decisions Are Often About Money & Relationships
yeah because if you're going to complain that much at some point you do have to take action right so it's like it's the old piss or get off the pot kind of analogy can i say that james that's all right well we just did and you're you're sitting there you're like you're about to get yourself kicked off the police force before you even join i know you cannot assault this guy and like cuss him out in the parking lot yeah i do think a valid question a valid question is are you asking for my advice or my wisdom or do you just want me to listen
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The Hardest Decisions Are Often About Money & Relationships
And I'm saying that because we've had two of these in a row of just whacked out, just what's going on here.
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The Hardest Decisions Are Often About Money & Relationships
You just made a clear choice.
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The Hardest Decisions Are Often About Money & Relationships
And it sounds like they've chosen the wrong enemy to direct their guns at, right?
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The Hardest Decisions Are Often About Money & Relationships
Same with your marriage. I gotta believe it's the same thing getting back, right?
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The Hardest Decisions Are Often About Money & Relationships
I love that, John. See, you add a lot to the show, John, and I love picking your brain on stuff like this because you just have a different perspective. And by the way- I believe in people. You do.
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The Hardest Decisions Are Often About Money & Relationships
I like that. I like getting to host with you. I kind of wanted to go to John for a minute, but I also want to let you guys know before this hour ends that this hour is about to end if you're listening on your favorite platform.
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The Hardest Decisions Are Often About Money & Relationships
But if you want to keep watching the show and keep finishing this specific episode, keep hearing from John, keep hearing from me, you got to head over to the Ramsey Network app in order to finish the show. If you're on the radio, you can just keep listening. It's still going to play. More calls are still coming up. We've got Christian from Madison, Wisconsin.
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The Hardest Decisions Are Often About Money & Relationships
We've got Carol from Sacramento, Louisiana. We've got a truck driver who's living out of a semi truck coming up. We've got a woman, Ashley. She wants to know if she should use the money that she has to get a car or to pay off debt. So we've got really great calls coming up. I'm going to pick John's brain a little bit more.
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The Hardest Decisions Are Often About Money & Relationships
But again, the Ramsey Network app is the only place that you're really going to get. the full episodes of The Ramsey Show like you're used to hearing. So you got to go over to the app. If you don't know where it is, you can search Ramsey Network in the App Store or on Google Play. That's the way to find it.
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The Hardest Decisions Are Often About Money & Relationships
And by the way, we're still working on the app where every day we're doing things to make it better, make that experience the best we can for you. We just started this. So it's kind of cool. You guys are in on the ground level and we're happy you're here with us. But again, don't miss what's coming up next. Head over to the Ramsey network app and it'll be me and John.
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The Hardest Decisions Are Often About Money & Relationships
We'll be in our same clothes, same shirt, same plaid finishing up the show. Thanks for hanging out with us. This is the Ramsey show.
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The Hardest Decisions Are Often About Money & Relationships
I love that. That's good, John.
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The Hardest Decisions Are Often About Money & Relationships
This is The Ramsey Show.
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The Hardest Decisions Are Often About Money & Relationships
This is The Ramsey Show. I'm Jade Warshaw. This is Dr. John Deloney. Hey, give us a call. The number is 888-825-5225. We'll talk about your life, your money, whatever it is that's going on in your life. We'd be happy to share our opinions with you. All right, let's go to the phone lines. We got Elizabeth in Santa Cruz, California. What's going on, Elizabeth?
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The Hardest Decisions Are Often About Money & Relationships
We'll be taking your calls. The number is 888-825-5225. Get in where you fit in and we'll give you the best advice that we can muster up for you.
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The Hardest Decisions Are Often About Money & Relationships
Get in where you fit in. What's that from?
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The Hardest Decisions Are Often About Money & Relationships
Right. You're in an inflated market for sure. My question is, okay, so this is from Grandmother's Trust. Was this money that was going to be his? They're just giving it to him early or it truly is a gift? No, it is theirs.
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The Hardest Decisions Are Often About Money & Relationships
It is. I don't know where I got that from.
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The Hardest Decisions Are Often About Money & Relationships
All right, let's do it. Let's chop it up. We got Jacob in Dallas, Texas. What's going on?
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The Hardest Decisions Are Often About Money & Relationships
Yeah, I wonder about that.
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The Hardest Decisions Are Often About Money & Relationships
Yeah, I want to know that.
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The Hardest Decisions Are Often About Money & Relationships
Less than a fifth of it? So it's a lot of money. So nobody's starving here. No. Okay. Let me ask you this. Just level with us real quick. How does that make you feel? Because this is a little bit different from what John said, but I don't even know what that looks like. And I feel like I would be so overwhelmed by a gift like that. It might be hard to take. How do you feel?
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The Hardest Decisions Are Often About Money & Relationships
Does it make you be like, yes, we hit the jackpot? Or are you like, oh, my, my, my. Like, I don't know. What do you think?
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The Hardest Decisions Are Often About Money & Relationships
Well, can I interject? Because there is part of this that... And you can tell me at any point, Elizabeth, if you're like, no, that's not what I mean. But, like... there is something to be said for when you walk step by step and you gain, you're, you know, you're growing, you're gaining your net net worth little by little, as opposed to, it's like, it's like a toddler waking up and being 17. Right.
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The Hardest Decisions Are Often About Money & Relationships
As opposed to, you know, we see folks who win the lottery and they're like, I just won the lottery and they're all excited. But then you talk to them five, 10 years later and it's busted. So I could see where there's some anxiety there. Why is this different from that, John?
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The Hardest Decisions Are Often About Money & Relationships
What if you just said, hey, a million feels overwhelming. Is there a way that we could, you know, we've been trying to save for a down payment. Can you help us get to the down payment that we've been trying to afford? Maybe there's somewhere in the middle. Or maybe they buy the house and you rent from them. Oh, no, I don't like that.
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The Hardest Decisions Are Often About Money & Relationships
I don't know why. I just, I feel like that's even more tangled because they're still renting.
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The Hardest Decisions Are Often About Money & Relationships
What's your husband think?
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The Hardest Decisions Are Often About Money & Relationships
Well, wouldn't you be paying cash for it? So you wouldn't you wouldn't spend more than a million, right?
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Don’t Let Panic Influence Your Financial Decisions
husband has power of attorney, help him out by clearing his debt, selling the thing. Yeah. Move him when you can. And maybe it's just getting him set up in a, maybe he is staying with you at the rental. If you have space, if you don't, maybe it's him being in a little condo and the rest is for his care. But I think that you've got to be careful here.
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Don’t Let Panic Influence Your Financial Decisions
I think you've got to be careful here and keep your needs completely separate from his needs. If that makes sense. Yes. And I think you're a great person, by the way. I'm not trying to say that you're doing trying to be shady. That's not what I'm saying. I just think you need options.
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Don’t Let Panic Influence Your Financial Decisions
Is there space in the rental? Is there no space in the rental?
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Don’t Let Panic Influence Your Financial Decisions
The options are you do that conversion like you're talking about. And depending on the amount, maybe you use some of the sale of the house to cash flow that. Right. Or the other option is I don't like the idea of you converting a rental. I don't know what that costs.
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Don’t Let Panic Influence Your Financial Decisions
So part of me is like maybe you move into a rental that has more space and you use a portion of like a small portion only if you need of that money to. help float that new rent. But mostly the biggest thing is you're going to need that money for his care. And so to Ken's point, we can't be blowing through that.
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Don’t Let Panic Influence Your Financial Decisions
Um, how much are you contributing monthly?
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Don’t Let Panic Influence Your Financial Decisions
That's my Roth 403B. Do you know the number of that? Just so I don't have to do the math right quick.
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Don’t Let Panic Influence Your Financial Decisions
Okay, yeah. So if you continue to do this, you're pretty close to what you said. You're pretty close. I did a really conservative rate of return for the haters, but I think that you're going to actually do better, so let me just... I think you're going to be fine if you keep doing this in the next seven years. I have one point three million. You said one point four. Great. Same thing. Right. Yeah.
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Don’t Let Panic Influence Your Financial Decisions
Yeah. The question you need to ask yourself, and I think this is what Ken also was getting at, is you're thinking about your special needs daughter. You have a pay for a home. So great that your special needs daughter is going to have a place always to live. Right.
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Don’t Let Panic Influence Your Financial Decisions
If you pass that along, then for you, if you and your husband can live comfortably off of the interest on this, then you're going to have this wonderful nest egg that is going to continue to grow for her care. Right. And so that's kind of the way to think of this is what is it going to cost annually once you and your husband, you know, have beamed up?
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Don’t Let Panic Influence Your Financial Decisions
What's it going to cost you annually for her care? And is she able to draw that off of your nest egg without touching it or without, you know, deeply deplenishing it?
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Don’t Let Panic Influence Your Financial Decisions
Yeah. Before I get to the debt consolidation, I want to know a little bit more about the financial, the income situation. So she's on less than half. What are you bringing in every single month?
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Don’t Let Panic Influence Your Financial Decisions
Yeah. And I also want you to get on with one of our smart investor pros and talk about if it makes sense to convert some of these traditional funds to Roth funds so that when the time comes that they are drawing on this money, they're not paying taxes on it. And they're able. Do you see them saying that money can continue to grow tax free? We want that for them.
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Don’t Let Panic Influence Your Financial Decisions
We don't want them to have to deal with that as they, you know, take your inheritance one day.
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Don’t Let Panic Influence Your Financial Decisions
The sooner you do it, the worse the tax hit.
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Don’t Let Panic Influence Your Financial Decisions
Look at my face. Louisville. Louisville.
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Don’t Let Panic Influence Your Financial Decisions
OK, so you're 38. Hers is eighteen hundred. And is there has anybody has anybody said, hey, she'll be able to be back to work in six weeks or she'll be back to work in 12 weeks? Has anybody has a doctor given you some sort of prognosis on that?
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Don’t Let Panic Influence Your Financial Decisions
Yeah, this is a temporary situation. That's the good news. The hard news is it's a very tough temporary situation, right? It doesn't make it any easier. I agree with Ken wholeheartedly. The people that love you are the people who want to help you. And you have to ask yourself, if a close friend of mine were in the same situation, you would almost be hurt that they kept it from you, right?
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Don’t Let Panic Influence Your Financial Decisions
Because you want to help. And so you have to remember that people have a heart like that. Yeah. Yeah, with Ken. Ken, I think you almost basically covered it. Find a rental that's from a human being, not from a corporation or an agency. People who can go, hey, I know you. I'm looking at you. I see your situation.
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Don’t Let Panic Influence Your Financial Decisions
I believe you'll pay me, as opposed to trying to go to apartment complexes or, like I said, ones that are owned by big conglomerations. Yeah.
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Don’t Let Panic Influence Your Financial Decisions
Ken Coleman, well done, my friend.
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Don’t Let Panic Influence Your Financial Decisions
Oh, I'm so, so sorry. Oh, I'm so sorry.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
Before you speed through it, like we need to get a handle on it. So you said you've got $83,000 of just personal loans. Is that what you're saying?
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Don’t Let Panic Influence Your Financial Decisions
And it's all credit cards you're saying?
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
Yeah, $83,000 and $77,000. And then didn't you say that there was credit cards? Yeah, so there's an additional $57,000 in credit cards. Okay, and is there anything else?
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Don’t Let Panic Influence Your Financial Decisions
OK, so is it just you? Are you single? Do you have kids? Yeah, I'm single and I have two kids. Single with two kids. OK, now let me I'm just trying to get a background on this. I'm trying to see where your head's at. So before before your income got cut, you're making 250. How long have you been in this state of lower income?
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Don’t Let Panic Influence Your Financial Decisions
Ken, you do that math and then we're going to come back to Ken to help you with the career side because you're going to have to switch jobs. That's true. What I'm trying to understand is, did all of this come as a result of your $85,000 in pay or was this a result of before kind of living without a plan? Because I want to know, are you able to meet your does that make sense?
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Don’t Let Panic Influence Your Financial Decisions
Are we able to meet our bills now? And you're just realizing, holy crap, I made a mess. Or is this mess a result of trying to live on an income that's just not sustainable? Does that make sense?
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Don’t Let Panic Influence Your Financial Decisions
Yeah, you're not a victim. What you do next matters, though, big time. And right now, the answer to the solution is lowering your expenses and increasing your income. That's always the solution. So while we have a little bit of time, Ken, why don't you hit the career thing first? Because I actually think that's the most important.
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Don’t Let Panic Influence Your Financial Decisions
That's right. That's right. Hey, are you investing right now? Are you investing any money out of your check?
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Don’t Let Panic Influence Your Financial Decisions
Okay. Thank you for the information. I mean, my heart goes out to you. I know, Ken, you feel in the same way. This is terrible. I'm so sorry. Let's talk about what you've brought to the table here. So based on what you just said, that there's really, I mean, there were some options, but we really don't know. Even if she does a surgery, it's only a 70% chance. All of that.
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Don’t Let Panic Influence Your Financial Decisions
Were you doing that? I don't have any savings. I don't have anything at this point. Okay, great. And so what are you taking home every single month? Oh, you mean like after taxes? Yep. What are you taking home as your payment?
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Don’t Let Panic Influence Your Financial Decisions
Okay. So I want you to have an every dollar budget. We're going to make sure Christian picks up and gives you an every dollar budget because you need to see where every single dollar is going. And once you see that and you find out if your mortgage payment is more than 25% of your take-home pay, if it is, you need to be looking at that as well.
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Don’t Let Panic Influence Your Financial Decisions
Because unless you really change this and turn it around soon, because my guess is your mortgage is eating up all your money because you had your mortgage back when you're making $250,000. That's where I think the problem is in all of this.
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Don’t Let Panic Influence Your Financial Decisions
Yeah, you got to sell this car. Because she's saying, oh, but when we're both working, we can afford it. But we don't know. Like, truly, we don't know when you're both going to be working again. And nobody needs that kind of pressure, right? You don't need that kind of pressure. She doesn't need that kind of pressure. So tell me what the car, what you own it and what you can sell it for.
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Don’t Let Panic Influence Your Financial Decisions
Yeah, but did they pay for the school?
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Don’t Let Panic Influence Your Financial Decisions
So was this let me let me clarify, because the key word in student loans is refund and refund sometimes means you took out a loan and the loan was too much for what school actually costs. And so they gave you the money back in cash, but it is still loaned money. Does that make sense?
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Don’t Let Panic Influence Your Financial Decisions
So was this money that was still loaned money or was this actual cash that you had from doing work study and you were given that as payment? Clarify that for me.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
OK. And whose name is on the loan, mom's and dad's or yours? Who's the who's the signer on the loan?
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Don’t Let Panic Influence Your Financial Decisions
Okay. So what, where I'm seeing here is there's a lack of clarity on what's going on. So we do need to have that because you need to know if you receive $4,000, if it's student loan money, you should know that because you have the right to be like, Oh my gosh, I don't want to be on the hook for that. I'm not going to use debt to pay off debt. Right.
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Don’t Let Panic Influence Your Financial Decisions
So understanding that's important, but it's spilled milk at this point. Um, I can understand if it was loan money, if your mom was like, wait a minute, you took this loan money that we're both on the hook for to do this thing without consulting both of us because we're both on this loan. So I can see that. So I want to put that out there.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
But you used a really big word earlier when you said mom and dad are abusing me with the money.
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Don’t Let Panic Influence Your Financial Decisions
Show us that. Let us hear about that.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
But what's that got to do with you?
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
Okay. But that's not abuse. I don't think it's abuse. What I'm hearing, Ken, and correct me if I'm wrong, Tyler, what I'm hearing is your parents are spenders. It seems like they always have the money when it's time for something for them. But when it's something for you, it's a big deal. Right. It also sounds like they've hit you up for money.
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Don’t Let Panic Influence Your Financial Decisions
Maybe you had your job in high school and they're like, hey, let me. Can you spot me a 20? That kind of thing. And they never paid you back. Is that the type of thing?
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Don’t Let Panic Influence Your Financial Decisions
You don't have to do it. Here's the thing. Here's the thing. Your parents, you're 22 now. Your parents can make suggestions. They can even try to like strong arm you to do things their way. But you don't have to, my guy. Like you can say, I'm just not going to do that. And that might be them being pushing some boundaries, kind of being, you know, a little disrespectful.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
But I wouldn't go the line of abuse. Would you, Ken? I don't know that I would go to that line.
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Don’t Let Panic Influence Your Financial Decisions
It's a good instinct. Wrong move. Like right idea.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
Okay. I wish it were better. Is there any other debt, any other vehicles, any other thing else that Ken and I should know about?
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Don’t Let Panic Influence Your Financial Decisions
You do. And honestly, how much are the student loans?
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
Here's what I need for you. Here's what here's my we took some time talking about mom and dad. I want to talk about Tyler for a minute because you were talking about mom and dad's bad money decisions, bad money habits. Tyler, you are following in those footsteps right now because you are taking on debt and
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Don’t Let Panic Influence Your Financial Decisions
And you're going to out-of-state school and you're doing all this thing, just racking up money. And I know that you're young, but you got to stop doing that because you're going to come out of this thing with $80,000 of debt. And what's going to make it even more of a headache is you're going to be tied to mama.
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Don’t Let Panic Influence Your Financial Decisions
And so mom is going to be breathing down your neck every month talking about where's the payment. You're messing up my credit, dah, dah, dah, dah, dah. And that is going to jack you and her. If I were in your shoes, I would be thinking long and hard about can I do I need this degree? Do I need to be out of state for this degree? Can I do it in my home state where I have in-state tuition?
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Don’t Let Panic Influence Your Financial Decisions
And can I do it someplace where I'm paying, going at the speed of cash? I'm getting a job. I'm doing work study. Because $80,000 is a lot of money, especially when it's tied up with mom and dad.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
And do it in states so that at the very least. Listen, don't hear me say get student loans. But do you see what I'm saying? Yeah.
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Don’t Let Panic Influence Your Financial Decisions
What's the payment on that, Tucson?
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Don’t Let Panic Influence Your Financial Decisions
Tyler, no one has ever asked me where I went to school.
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Don’t Let Panic Influence Your Financial Decisions
No one's ever even asked me what I got my degree in. Ever.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
Concentration on vocal performance.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
Okay. So here, let's go down the line. Student loans, they're private, I'm assuming, based on what you said. So it's not like they're being forbeared like everybody else in the safe plan right now. You've got these student loans. Yeah, you got to sell the car. Yeah, you've got to. I'd rather you be in $7,000 or $10,000 once you get a little beater than $30,000, right?
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Don’t Let Panic Influence Your Financial Decisions
All righty. In honor of Financial Literacy Month, as the cool kids say, Finlit. Today's question comes from Tyler at the McDonald County High School. He says, how much of my check should I set aside for spending, saving, and giving? I love this because he already understands those are the three things that you can do with money. Give, save, spend.
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Don’t Let Panic Influence Your Financial Decisions
And honestly, Tyler, you could do the in equal portions at this point. Giving at, you know, obviously with giving we if you're a Christian person, we kind of have the 10 percent as the model. That's kind of like the tie thing. And that's a great place to start. If you wanted to give beyond that, though, and if you or if you saw other things that you wanted to do, you could saving.
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Don’t Let Panic Influence Your Financial Decisions
That's also very important spending. So at this point, I'm like the ratios mean less to me. It's more about the fact that you're doing all three because truly like certain seasons might call for certain things like around Christmas time.
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Don’t Let Panic Influence Your Financial Decisions
You might go, yeah, I'm going to split this evenly because I want to, you know, give to my church and I want to buy gifts for my mom and brothers and sisters and all of that. So yeah. Yeah, that's looking like a 30% deal. And then I'm saving the other 30 and spending the other bit, 33 technically.
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Don’t Let Panic Influence Your Financial Decisions
But I think it's one of those things, as long as you're doing all three and you're shifting those ratios as the year goes on to make sense. Obviously, if you were saving up to buy a new car. You might say, OK, for this season, I'm, you know, I'm giving 10 percent and I'm saving 50 and the other 40 is going for spending. Right.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
So you have the ability to do that based on what's going on, based on if you have any debt or not, based on if you're trying to save up for something specific. So that's kind of how that works. What say you, Ken Coleman?
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Don’t Let Panic Influence Your Financial Decisions
That feels right. That seems correct.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
Yeah, don't forget the lyrics. Wayne Brady. Come on. Shout out to Wayne Brady.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
I applied to be on that game show.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
There was Don't Forget the Lyrics with Wayne Brady back in the day. And then there was a new one with Jamie Foxx and his daughter. Remember?
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Don’t Let Panic Influence Your Financial Decisions
Like when you go back and play it again.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
Yeah. Get it. It's, it's, I'm not supposed to be doing this. It's very good. James knows people send me stuff all the time and I'm like, yeah, that's good. Like I, but this is really good.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
No, it's him doing all his things, playing everything.
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Don’t Let Panic Influence Your Financial Decisions
$1,500. So this is going to help find some of that. And you're doing an every dollar budget?
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
Hey, you did the right thing because we would have told you that. We would have said, hey, let's walk through the baby steps with this. If you're in debt, let's pay off the debt. Let's build up the three to six months of emergency fund. And you did that. Is there any other debt other than the mortgage we should know about?
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Don’t Let Panic Influence Your Financial Decisions
I mean, technically at this point, unless there's something else that you really believe that your grandma would love to see you do. If you always talked about going to Ireland and you want to honor that and go to Ireland. Yeah. You know what I'm saying? That sort of thing. Then yeah, the other reasonable thing to do would be to put this towards the mortgage.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
And hear me say, I am not saying that you have to put every dime of this towards the mortgage. I do think that there's something about an inheritance like this that you should be able to enjoy. Plus, to your point, now you're in baby step six. So it's not like this, all of my money must go to my mortgage. It's about intentionality.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
And if you take this 95 and say, I'm going to be intentional in some of this, a portion of this will go towards the mortgage. Maybe a portion of this will go towards, I don't know, that thing that grandma always wanted to see me do. You have that ability. I'm not going to be like super, you know, strict robotic with this.
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Don’t Let Panic Influence Your Financial Decisions
OK, I want you to get every dollar. It's going to help you a little bit more and it's going to help you guys stay on track because this is also anything that can make life a little bit easier right now is going to help you. And I want you to go through with a fine tooth comb. Where is it that we can skim anything out of forty six hundred dollars a month? Where can we cut back?
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Don’t Let Panic Influence Your Financial Decisions
I mean, I'm confident that you could probably save over five years to pay for those vehicles in cash. But whatever, run the numbers out and do what you think is best on that. But, yeah.
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Don’t Let Panic Influence Your Financial Decisions
Yeah, the Caribbean always calls.
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Don’t Let Panic Influence Your Financial Decisions
What's your mortgage or your rent? What are you paying?
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Don’t Let Panic Influence Your Financial Decisions
Great. And do you have young kids, anybody in daycare or anything like that?
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Don’t Let Panic Influence Your Financial Decisions
Okay. So where's this? My question then is, those are the two biggest budget items. And next to that is food. So- This money, this $4,600 a month is going somewhere. It's not going to a mortgage, not going to daycare. You guys need to get on that budget with a fine-tooth comb to figure out where this is. Do not do a debt consolidation because, Ken, you and I know it ain't good.
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Don’t Let Panic Influence Your Financial Decisions
Ooh, interesting. This is an interesting quandary because you're not the one that committed the fraud, and yet you're the one kind of paying the price for it. Here's what I'm thinking. Like, on the one hand, if I were the person with the stolen credit card and somebody used my credit card to buy a $10,000 card, I'd be like, I want my $10,000 back.
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Don’t Let Panic Influence Your Financial Decisions
And I would dispute it, and I'd get my $10,000 back.
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Don’t Let Panic Influence Your Financial Decisions
Indeed, you've reported all your stuff too.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
Yeah, the merchant is liable for this.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
I would, too. You can report it to the FTC. You might just consult with a lawyer and do one of those free.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
Yeah, I'm not sending the money back. I'm not sending it back to them.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
I believe what Ken said. I think if you put your foot down and stand on business, as Ken would say.
The Ramsey Show
Don’t Let Panic Influence Your Financial Decisions
Oh, yeah, and somebody listening, that was like gold for them. For me, I was like, what was it?
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Don’t Let Panic Influence Your Financial Decisions
Wow. You learn something new every day, Ken.
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Don’t Let Panic Influence Your Financial Decisions
Okay. Was this sudden? He was working up until the point he was in the hospital? Is that what happened?
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Don’t Let Panic Influence Your Financial Decisions
I'm sorry. I'm sorry. Okay. How much debt?
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Don’t Let Panic Influence Your Financial Decisions
I'm sorry, did you say $65,500 on credit cards? Between the car and credit cards, yeah. Between the car and credit cards.
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Don’t Let Panic Influence Your Financial Decisions
I do, too. I don't. You are going to be providing care, but I don't think this is like an opportunity for you guys to get in a home. Um, because I don't, I don't, I mean, there might be something that you guys talk about with him. I don't know how is he 100% lucid. Like he's got a power of attorney. So I'm guessing not.
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Don’t Let Panic Influence Your Financial Decisions
Okay. What I'm getting at is if there was something that you guys knew, hey, when he passes, we were to get his house anyway, or we were to get his assets anyway. If you knew that ahead of time, that might make this feel a little bit different. But because we don't have that, there's part of me that's like, hey, right now we've got to keep things separate. Help him out if you're...
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You Can Build Wealth No Matter Where You Are in Life
There's also an issue of this just on the financial side of it that the reason I was asking you before, what would that look like is because sometimes we get in moments where like, oh, God, you know, if I'm going to help them and what we're trying to help them do is really not sustainable in long run. It's not helping at all.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Like if the issue is he doesn't have income coming in and he's not looking to get income coming in, you stepping in and paying an electric bill one month. long-term is not really a sustainable thing. So it's like, okay, what can we do? What would it look like to help in a real way that's long-term? Well, that's probably going to help him find options for him to work. Right.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
So just reframing, if you did want to help what that help would be, it might not actually be financially, if that makes sense.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Did you guys do any research before you loaded up the truck and moved to Beverly?
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
And I think I heard you say that you kept your California house and you're renting it. So there's, I'm assuming there's equity there that would have gone into rolling over into a house. Is that playing into it too? Like, were you planning on selling the California house and using the equity to buy a home in Texas or what was the plan there?
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You Can Build Wealth No Matter Where You Are in Life
Hello? Yeah, we're here. We're waiting on you to sift it out, air it out. I mean, I want to ask the question. So you made this move. The purpose of it, was it just, tell me the full purpose of it. what you were trying to accomplish.
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You Can Build Wealth No Matter Where You Are in Life
Yeah, I mean, I'm thinking about the first thing John said, which is you try something, it doesn't work. That's okay if it doesn't work.
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You Can Build Wealth No Matter Where You Are in Life
Call it, you know, but I do think you're talking about, let me leave you with two thoughts. A, when my husband and I moved here to Nashville for this job from South Florida, we've been here two and a half years and I'm just married, like just starting to be cool. It takes time.
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You Can Build Wealth No Matter Where You Are in Life
So I want to say that, that you're not going to move from an area, uproot your whole life, leave your family, leave your friends and be good in six weeks or six months. It takes time to get in and get settled.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
um so there's that side of it but then there's also the side of it is if you're looking at him and he's looking at you and you're like listen we made a mistake or i hate my job you hate your job we don't even like the price of houses we don't even like the people like if you're really checking all those boxes i like i'm the type of person john i'll sit down and make a checklist like old school style and check the things that are positives and check the things that are negatives and like weigh it out literally and see okay
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You Can Build Wealth No Matter Where You Are in Life
Of all the things that we said are important, we're not checking any of the boxes or we're only checking one. And California was checking nine, you know, and that helps you get a clear read on what's really going on, like real time and not just how you're feeling in a moment because something happened at work.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
I like the idea of you guys moving out of an expensive area like California because the truth is that that's a cost of living you may not be able to maintain, but maybe living somewhere less expensive. You mentioned Texas. That could, you know, depending on the part of Texas, that could be good.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
All righty. Today's question comes from Mark in Pennsylvania. He says, I'm engaged to a wonderful woman. We earn about $150,000 combined. We have a joint bank account because I want it to be our money and not my money. Love that. The problem comes up when we have our monthly budget meeting and she sees that we have $1,000 extra in the account once everything is paid.
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You Can Build Wealth No Matter Where You Are in Life
I know by the next payday in two weeks, there will be zero. We have gotten our total debt down from $75,000 to $35,000, but I want to get that to zero. What can I do to regain some financial peace?"
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
uh so if i'm understanding this correctly john they've got a thousand dollars of margin but it sounds like it's just getting spent on whatever yeah in two weeks that thousand bucks isn't getting a sign yeah so exactly john just hit the nail on the head uh when you do an every dollar budget let me just clear up a common misconception a lot of people think that when they do their budget the budget is just for the things that i'm supposed to plan for like
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You Can Build Wealth No Matter Where You Are in Life
Those the things that make me an adult. Right. My rent, my electricity, my phone bill. Like I got to plan for groceries. But then they see the extra money and go, OK, like that's treat yourself like that's up for grabs. We can do what we want. And in a way it is up for grabs. But you decide what you're going to grab it for, if that makes sense.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
So when you do an every dollar budget, you decide how you're going to spend it. every single dollar ahead of time, not just the important dollars. Does that make sense? So I say to people all the time, it's not to say that it's got to be like this negative thing. When you're planning every single dollar, you're still planning the fun stuff too.
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You Can Build Wealth No Matter Where You Are in Life
So if your wife has a fun category, although in this phase, I would say not yet because you're paying off debt, but let's just pretend, yeah, you're spending that thousand dollars as well. So you're saying, okay, $70 is going to go to get nails done. $100 is going to go towards entertainment. $200 is going to go towards restaurants. And you're deciding how all of that is spent.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
That way, if your wife rolls out to Target, she's got a $75 line item that says, yeah, this is like my blow money at Target, right? And then you walk away from all of your spending for the month feeling fine about it because you didn't break any rules, right? Because there were guardrails there.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
You're exactly right. Taking it out of the heat of the moment is great because nobody makes good decisions when they're feeling the emotion of like, I want this now. So that is a great thing. Also, I feel like when you do that ahead of time as an espousal relationship, for sure. it takes the sneakiness out of it. Do you know what I'm saying?
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You Can Build Wealth No Matter Where You Are in Life
When there's just a lump sum there that's up for grabs, anybody can do it. If you get to it first and you spend it, you kind of feel this thing of like, I don't want to show them that I did it because they're going to be asking questions. So I'm going to hide it over here. I'm going to like bring it in. in, in pieces into the house, right?
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You Can Build Wealth No Matter Where You Are in Life
You're doing all these things to kind of hide that you've spent the money as opposed to being a grown adult and saying, no, I have $200 I get to spend, or we assigned this to that. And then you're like, you're golden after that. You don't have to be feeling bad. Now, in his case, he's like, I want to use all this to put it towards the debt. Uh, my guy, Mark is absolutely correct.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
And baby step two, now's not the time to be spending on a bunch of extras. Margin should go towards debt, the smallest debt.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Well, let's look at the facts. Like, let's look at the money because right now it's like a bunch of question marks around our head. So you mentioned that he kind of has this plan of living off Social Security. Do you guys have any clue? Like, you're 67 or he's 67, so you're eligible. But if you begin taking it now, obviously you're taking it at a cut as opposed to waiting.
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You Can Build Wealth No Matter Where You Are in Life
Okay, so we've got a couple of things on the table. We're talking about debt, we're talking about investing, and we're talking about future home settlement, right? Like living on land, living in a different house. Okay, I love this question because I think what you're facing is...
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You Can Build Wealth No Matter Where You Are in Life
flurry that all of us are facing right what do i focus on first they're all really really important things enter the baby steps because it really helps us focus on the right thing at the right time because everything that you're talking about are important things but you got to prioritize them in order of importance so first off in order to be able to do the things you want to do
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
You want to be able to invest in this land one day. You want to be able to invest for retirement. That takes cash. That takes money. And Dave Ramsey would say all the time, your income is your biggest wealth building tool. Therefore, how can we get more of our income back in our pocket? Pay off your debt, right? Because you're probably giving away.
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You Can Build Wealth No Matter Where You Are in Life
I mean, if you were to calculate how much you're giving away every month in payments, what do you think it would be?
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You Can Build Wealth No Matter Where You Are in Life
Yeah, so that's a lot. So that points to your first answer. Yes, I think you should clear the debt first. So how much is it?
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Okay, so let's pull out the mortgage and tell me what you have in consumer debt.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Okay, that's fine. And so tell me what type of debt it is.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
because there's a bunch of little different doctors will probably say if you had to guess i don't know probably uh probably about 2,500 okay okay so of course that's going to go first since it's the smallest debt in this whole thing and tell me about what you guys earn what's your income combined uh combined we make about 115,000 before that is if i don't get any overtime or anything okay so monthly what does that look like every month what does it look like you bring in
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You Can Build Wealth No Matter Where You Are in Life
So off the bat, my first thing for you, and it's always going to be the budget, I want for you to know these numbers. The budget's going to make you know the numbers like the back of your hand. There's not going to be any guessing. There's not going to be any because you're going to be so dialed into it.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Because you're focused on taking every little bit and throwing it at this debt is what it's going to amount to. So with your income, assuming that your current housing situation is in its proper place, what are you paying every month for rent or mortgage?
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You Can Build Wealth No Matter Where You Are in Life
Okay, yeah, you're good. So there's no reason that you shouldn't be knocking this debt out going very quickly. $2,500 on that medical debt should be gone super fast, right? How many kids do you guys have?
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You Can Build Wealth No Matter Where You Are in Life
we have three still at home okay so this is going to be everybody the whole family we're sitting down together dad and mom are saying here's what we're doing next we've got to get out of debt because we've got to get our life together and here's how we're going to do it you guys are going to see us cutting back big time once you cut that once you knock this debt out you're saving up three to six months of expenses and then you're going to start investing 15 for retirement you're in your 40s i promise you it's not too late but you've got to get on this now and don't go move into a trailer on family land just yet
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
So when you wait and take that later distribution, do you know how much it'll be?
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You Can Build Wealth No Matter Where You Are in Life
So let's say it's 35. You know, you can check in and find out what you think, what that number is going to be on the IRS. But then let's look at your budget. And so it's really about taking these numbers out of the air and getting solid facts of what it will be. Can it work? If it doesn't work, how much do we need to be earning? Does that make sense?
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
the whole situation except that except that they have y'all y'all y'all have a broken lease on your credit eviction yeah right um help us understand because what john and i are hearing is that you're saying hey we let the lease go and it's all good but at the same time you letting the lease go is what caused the eviction which caused you not to get in your house and people might have been nice to you but you can't just walk away from your lease
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
And I think that's going to give you a lot of peace when you can find the facts around it.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Okay. Yeah, I think it's as simple as that. I mean, if you have a writing that said that your lease is terminated and it's all good and you owe zero dollars and it's terminated on this date. Yeah, that's that's that feels simple to me. I don't know why, but I feel like there's more to it than that. Is there? Okay. Not really. No.
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You Can Build Wealth No Matter Where You Are in Life
Okay, and what caused that? Was this before you entered the picture? No, we were together at that point, but the apartment was in his name. Okay, what happened to cause that?
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You Can Build Wealth No Matter Where You Are in Life
Okay. I hear what you're saying. I want to make sure. I would just check and double check that this home purchase that you're making coming up is a great fit that you guys are crossing all your T's and dotting all your I's because I don't want a pattern.
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You Can Build Wealth No Matter Where You Are in Life
Julia, do you know, or are you guessing, do you have a budget?
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You Can Build Wealth No Matter Where You Are in Life
I just want to make sure because when I go to buy a house, and don't get me wrong, when you buy a house, it is an eye-opening experience. You're learning something new at every turn.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
But there is also a level of due diligence that you want to do ahead of time before you start getting other folks involved. And a lot of that is reviewing your credit, reviewing what your numbers are, looking at the income, all of that stuff. I want you guys to take so much control of this and not make rash decisions like getting out of your lease before you've even checked your own credit, right?
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Because you would know that that eviction is there. And that's kind of what I mean by that. I want you guys really dialed in, doing your due diligence, getting ahead of things, and not letting it just kind of happen. And not making rash choices like, we love this house. Let's get out of the lease. Forget the payment. We don't have to... Like, I just... John, I'm not trying to read too much in.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Okay. That's what we need. So before we get off the call, we're going to set you up with a Christian's going to pick up and get you an every dollar budget. And it's really just going to be you plugging in that income and then plugging in what you guys spend money on. You've got this mortgage. How much do you pay a month for the mortgage? $3,000. What? Okay, you're right. It's not going to work.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
So so tell us. OK, well, if that's it, then it's as simple as John said before. I mean, I'm not going to beat a dead horse. Yeah. Go to them. Say you need to remove this from my credit contested on your credit. And then once it's removed, go back through with the situation. If you want my advice, which I know you didn't ask this, but I would not be buying a house unless I was completely debt free.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
with three to six months of expenses saved in a high yield savings account. And I'd want to make sure that I'm putting down anywhere between five to 20%. You could do more, but no less than 5%. And the payment doesn't need to be any more than 25% of your take-home pay. That's wisdom in this situation. I hope that you take it.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Yeah, this is good. I mean, to your point, this is one of those almost like asking for a friend, right? You don't have to put yourself out there. You can put on your pajamas and heat up your lean cuisine and just watch it on the couch and get all the answers you want. But, you know, I hope you do get involved. Get involved in the chat. Ask questions.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
I would love to remove the stigma from, you know, talking about money and being real with your money, because chances are the way you're feeling, the person next to you is like, oh, man.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Okay. And she's getting $1,000 every two weeks. Okay. So you guys are at $3,200 a month.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Is she working full-time or is that part-time work?
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Okay, I'm looking at this, and there's the issue of the short-term disability. You're going to be off of that soon. When are you projected to be back full in action? 3-2. Three, two. Okay, so in March, the clouds part and you can start to see a better day. But in that meantime, I still think that there's an income issue here. You know, your wife's working full time to make 24,000 a year.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
before you know after tax that's that's that's tough right there for 40 hours a week i'd love to start looking at a trajectory that gets you guys's income up so that you can start making headway on this debt um that's what i would be interested in long term so before you get off the call i want to get you guys set up with king coleman because he's got a lot of great materials out there just for career projection whether this is for your wife or for you i want to get you guys in a better situation to where you're paying off this debt faster you're doing work you love and
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
And you're really getting to that point of financial peace that we all want to get to.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Could care less about my FICO score right now. That's the least important thing in this equation.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
And why would you need to do that? Because you told me as it stands right now on disability, you're at 3,200, but then you just told me it takes 2K to make your house run. So what's happening to the other 1,200?
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Okay. When you said it's more like $2,300, what happened to the other money? Because before you said $1,200 for you and your wife brings home $2,000, $1,000 a week. Or I'm sorry, $1,000 every two weeks.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Okay, so what I want you to do, I want you to throw this in every dollar because you're doing the type of budget where you only plan the things that you think are important, but you forget to add the other stuff. I want you to budget every single dollar of this money. So before you get off the line, we'll get it for you.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
And I want you to put your income at the top, your wife's income at the top, and then go through line by line. Every dollar, I'll have some default categories there. To kind of prompt your mind and get you thinking of what you're spending money on. But be sure to add everything in there. I'm talking about grandma's birthday. You know, you stopping off at Wawa to get a snack. All of that.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Put it into the budget. And I think you might find that there's more money than you think. And that might give you a little peace in this situation.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
um to to lower that mortgage payment i'm getting very advice from friends and family and so forth and online as well okay uh that's a good question so how first off what are you looking to spend do you kind of have a range that you're like between here and here or does that depend on what we
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Now, when you put that money aside in that brokerage account, in your mind, was the purpose of it to buy a home or was it for something else?
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Got you. And what do you have in retirement?
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
uh 401k plus ira is probably around uh a million okay i'm thinking nice let's do it today dude yeah uh cash them today yeah i i'm with john i think that this money of course i'd keep three to six months in your case i keep six months of expenses liquid or in that you know you could i wouldn't keep it in the brokerage i'd throw it in a high yield savings do you have any money liquid in a high yield savings
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You Can Build Wealth No Matter Where You Are in Life
Yeah. Get what you can get. So what else? Any other money we should know about?
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
I get it. Now, you might decide based on how you're trying to keep your expenses low. It sounds like you are. You might decide, yeah, I'm going to go more for the $1 million range instead of $1.5 because the truth is that's a big swing. That's a $500,000 swing. That's your entire brokerage. So, I would...
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
if what you're looking for is to get as close as possible to a cash home, yeah, you're looking at a $1 million. And you're going to want to keep, like I said, six months of this out. So you got $700,000 to put down on a $1 million home. How do you feel about carrying $300,000 in a mortgage?
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
No, you need to continue to contribute 15%. And I want to be really clear here. If you say to yourself, listen, Jade, I have my eye on the house I want. My down payment's going to be 20%. I'm happy to put $250,000 down on this, and the payment's fine for me. This is your money, and you can make the choices you want to make. So you have to decide, what do I value most?
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Do I like this money in the brokerage sitting there and waiting for, you know, working for me? Do I only want to use half of it? Do I want, you know, you have options here, which is the wonderful thing about your position. Your back is not against a wall in any way. So you kind of have to decide what am I comfortable with parting with?
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
and also keeping in mind that long-term the goal is the goal is to not have a home payment like john said and so run those numbers out and go okay by the when do i want to retire because by the time i want to retire i want this thing paid off um right and so you get does that make sense yeah i guess generally speaking um most of the advice i've gotten has kind of been along those lines figure out what you're comfortable with but i think a lot of people are
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Yeah, maybe you run the numbers out. If I were you, I would sit and go, okay, I've got the million dollars, and what's that going to look like 10 years from now when I'm 60 if I continue to contribute 15% of my income? You already know a lump sum is going to double every seven years, but continue to add your contributions on top of that.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Knowing that retirement-wise, you're going to be fine is also going to play into the decision that you make here. And then, yeah, run it out with, okay, well, what if I take – Keep 250 of the brokerage in there. What is that? How does that change the numbers? And then ultimately, yeah, run that through. Okay, what's my legacy going to be? I've got this special needs child.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
What do I need to leave to them? Run those numbers and you're going to see all of your options and what makes sense, what you're going to feel like at the end of the day is excess and that would better serve you now today in this new house. So I think that's going to give you a lot of insight. There's not a wrong answer here.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
The only wrong answer is to go into debt and do it at 30% and do it to the point of you're never paying it off and that sort of thing.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Thank you so much for the call.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Ooh, I always love a generosity question. Listen, I will be the first to tell you that I think that generosity is one of the five pillars of personal finance. Super duper important. And it really is the concept of going through life with an open hand, right? Money comes in, money comes out. It's not too tight of a grip on it, which means it's in its rightful place.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
I'm fine with it leaving or coming in as it sees fit. I do think that creating boundaries around anything is a wonderful thing. And just having a clear intent on what it is that you're trying to accomplish is a very good thing. So this kind of like limitless, it's just an open well that never stops could be detrimental at some point.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
But if you've also gotten yourself to a point financially, let's say you've, John, you've paid off all of your debt. You've got your three to six months of savings. You're doing your investing. You have secured yourself and your family's back. Then if you say, hey, like a lot of people will decide to give 10% to their local church. Love that.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
If you're not a religious affiliate or anything like that, you say, you know what? My thing is I just pick a family and I give 10% of my income to supporting these families in need.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
fine i just think that you need to create some sort of rhythm and boundary around whatever it is that that is and it's not so much of a hey whenever you call me up you know i'm here to you know that's right we get to bypass reality sometimes because we'll just call you yeah right so i love what you asked i want to always go back to that question is why of why are you giving
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Yeah, and I think that, I mean, that's the whole kind of like nature of benevolence is like, hey, I'm going to get you out of this jam, but ultimately we're making sure you don't end up in this jam again. There you go. So that's kind of how it works. Yeah.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Yeah, and just another note to that. I think typically, I mean, we could all come up with a situation where that's not exactly been the case, but typically financially... The best time to give is from overflow so that you're making sure you're taking care of your family, your own home situation.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
And if you're not in that point, there are so many other ways that you can be generous that aren't directly dollars in your pocket, right? Like there's so many ways with your time and your effort and your words.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Yes, your expertise. You can trade skill sets and things like that or do a trade or something for free for somebody. So there's a lot of ways to be generous that don't put you or your family in a situation where you're not paying your own bills.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
All right. Thanks for the information. That's super duper helpful. So you mentioned the first issue is kind of like figuring out how to do this irregular income, which is such a common question. It's not, it can be befuddling. So tell me every month when you guys kind of tally up your paychecks, how much is it when you get paid? Um,
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
OK, so OK, so what I suggest when it comes to a regular income is you kind of take and you plug that that that six thousand dollars into your budget and you're going you're first starting with the idea of priorities. Right. What the most important things we call those the four walls. Right.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
So, number one, you're always going to make sure your rent's covered, your utilities, your food, your transportation. And then quickly after that are the things usually associated with our kids, right? Whether it's childcare, insurance, that sort of thing. And so you kind of have this prioritized list of when the money comes in, these are the things that must be covered.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
And if I have enough money to cover all of those things, then I can go to the next most important things. I can start talking about, I don't know,
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
uh cell phone bills and keep going down that list right and if you look and you realize okay i have enough money to cover everything that's a green light like that that feels great knowing that even on a lower month you can cover everything now if you're in a situation that you go hey i've kind of looked back on 12 months and on my lowest month i still can't i can't cover everything
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Then you know that when you have a higher month that comes in, you need to kind of pull some reserve and set it to the side. So we kind of call that peaks and valleys. When you have a great month, you keep a little extra aside. And when you have a valley, that money is there when you need it. A better tool for you probably to utilize is going to be an every dollar. It's a premium feature.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
It's called paycheck planning. A good budget tells your money where to go, but paycheck planning tells it when to go. So you're planning when you spend every single dollar.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
And just remember, wherever you move, whatever housing situation you choose, you don't want that payment to be any more than 25% of your take-home pay.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
That's what's scaring the pants off you right now.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Yeah, that's right. So five times, different iterations, meaning five different times we're going to give away $4,000. And we had a rehearsal today. It's pretty cool. Yeah, it's going to be awesome. It's going to be good.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
It's free. And I would just like to add, because I know we have like repeat visitors, like maybe you went to the live stream last year. I also want to say we're showing every dollar, but we're also answering all your money questions. Like we're talking about how to get out of debt. We're talking about a little bit about investing. George and Rachel are joining us later and we're going to do a Q&A.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
So this will be worth your while. Trust me, it's going to be really, really, really good.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
What would that be? What would that be? If you did help him, what would that look like?
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Okay. Listen, if you wanted to, this is grandma, right? That we're talking about. If you wanted to help, you know, grandma's funeral costs, I think that that's fine. I don't, that part I don't have an issue with, but uncle boo-boo is the one that I'm like, okay, what would it look like for you to help him in your mind?
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
If you thought this is my job to step up and help him, what would that have been? Or what would that be in your mind's eye?
The Ramsey Show
Stick to the Plan Even When It’s Tough
It's true, though. You have to be willing to do what it takes to get the real estate. My husband and I rented for 10 years so that we could afford and save up in order to do that. So you're right. It's still attainable. You just have to do what it takes.
The Ramsey Show
Stick to the Plan Even When It’s Tough
Hey guys, I'm Jade Warshaw and I wanna talk to you for a second about student loan refinancing. Okay, if your payment and interest rate are burying you and you feel like you can't dig out, refinancing your student loan might make sense because a lower rate could help you free up more money in your budget and a shorter term could help you pay down your debt faster.
The Ramsey Show
Stick to the Plan Even When It’s Tough
So reach out to the student loan refinancing experts today at laurelroad.com slash Ramsey. There, you'll find helpful resources like a student loan rate table, a refinancing calculator, and other tools. Plus, you can get an initial rate in just a few minutes. Laurel Road offers low competitive rates starting under 5%. You can even get your interest rate lower if you sign up for auto pay.
The Ramsey Show
Stick to the Plan Even When It’s Tough
If your situation is more complex though, sign up for a free 30 minute consultation with one of their student loan refinancing experts to get your tough questions answered. Listen, not everybody should refinance their student loan. So make sure you run the numbers, but for some people it's the right move.
The Ramsey Show
Stick to the Plan Even When It’s Tough
Learn more at laurelroad.com slash Ramsey to find out more about their student loan refinancing. That's laurelroad.com slash Ramsey.
The Ramsey Show
Stick to the Plan Even When It’s Tough
So you're not done. Like for her, she still has schooling to go, and this could even get greater, right?
The Ramsey Show
Stick to the Plan Even When It’s Tough
When is there the opportunity to start making money and what do you think you'll come in at?
The Ramsey Show
Stick to the Plan Even When It’s Tough
I'm feeling much better now, but not that much better.
The Ramsey Show
Stick to the Plan Even When It’s Tough
Oh, you've been paying for the house on student loans? Yeah.
The Ramsey Show
Stick to the Plan Even When It’s Tough
How easily can you get out of this? Like, what's this? Is it sell it like a normal? Like, what's the terms of this?
The Ramsey Show
Stick to the Plan Even When It’s Tough
Yeah, do that. You can't have a house right now.
The Ramsey Show
Stick to the Plan Even When It’s Tough
You have no income. You've got $350,000 of debt. Do you want to know where my mind goes? In July, when you have to sit for the bar and you realize the stress and the pressure that's going to be on you, Do you see what I'm saying? That plays into how you're going to test. It plays into everything.
The Ramsey Show
Stick to the Plan Even When It’s Tough
So if I'm in your shoes, I'm trying to offload half of this debt immediately so I can go sit for this bar and realize that I can have. Do you see what I'm saying? And alleviate some of that pressure along with some of the debt, because this is a scary situation.
The Ramsey Show
Stick to the Plan Even When It’s Tough
Dave, talk about this for a minute because I think it's worth it. So here we offer a benefit called Smart Dollar. You can have it in your business. But the point of it is the stress that you feel in your life when you have student loans, when you have debt, the stress that it takes on you working at your job.
The Ramsey Show
Stick to the Plan Even When It’s Tough
I do. But I feel like people forget about that. I feel like people forget about the toll that it takes on you to perform every single day and to show up as the person that you want to be. Because without knowing it, your debt drives you to make decisions that you would not normally make. It drives you to choose a job that you might not have normally taken.
The Ramsey Show
Stick to the Plan Even When It’s Tough
It drives you to do all of these things because it is now the number one factor. I have to pay off this debt. To sit for a bar with $700,000 of debt weighing on your shoulders and think that you're going to perform the way you would have if you didn't have that debt. These are the things that we've got to think about when we make these decisions.
The Ramsey Show
Stick to the Plan Even When It’s Tough
And it makes sense. It feels presumptuous like to go in and say that I understand that, but it does make sense. And if they're logical people, I feel like they would understand that.
The Ramsey Show
Stick to the Plan Even When It’s Tough
Okay. In honor of Financial Literacy Month, today's question comes from Ava at Agape Christian School. She says, is it necessary at some point to get a credit card? My mom says it is. But I want to think otherwise. Well, you are very wise, Ava, to want to think otherwise. Yeah, it's not necessary and it's not wise really to get a credit card.
The Ramsey Show
Stick to the Plan Even When It’s Tough
If you're getting a credit card, you're probably doing it for one of three reasons. You're doing it, A, because you think you're going to build credit. B, you're doing it because you have no money and you're relying on credit cards to fill the gap. Or C, you've convinced yourself that the points are worth it. And so my guess is that you're probably thinking about building credit.
The Ramsey Show
Stick to the Plan Even When It’s Tough
Yeah, your mom is. And the truth is people don't talk about it enough. We're some of the only ones out here saying that, you know, you don't need credit to get through life. You can get through life just with the cash that you earn from your income. And a lot of times people fall back on, well, how are you supposed to get an apartment? How do you get a car? How do you get a house?
The Ramsey Show
Stick to the Plan Even When It’s Tough
Those are the three things that people are looking at. And the truth is you can't have an apartment without a credit score. Not a big deal.
The Ramsey Show
Stick to the Plan Even When It’s Tough
Most of them. Yeah. If you if one doesn't take you to you go to the next one. Obviously, when it comes to buying a car, we would say the best way to do that is to save up and pay cash. The first car that you buy is probably the only way to do that. Yeah, what did I say?
The Ramsey Show
Stick to the Plan Even When It’s Tough
Oh, the only. Yeah, Dave got me on that. The only way. Yeah, your first car is probably going to be a junker. Maybe you pay $5,000 for it, but you save up and you trade it in and you add cash with it every time. And before you know it, you're going to be driving the car that you want to be driving. And then, of course, with the house, Ava, we suggest manual underwriting, okay?
The Ramsey Show
Stick to the Plan Even When It’s Tough
And that's just them looking at your actual income to decide if you can borrow this money. And they're looking at things like trade lines and they're looking at things like your income, your actual money. And so that's how that works. I say all the time, credit, it's a product. It's something that's being sold to you and people benefit from that.
The Ramsey Show
Stick to the Plan Even When It’s Tough
What we're teaching, the only person that really benefits from it is you. It is for you. We don't get paid because we tell you to live a life with a zero credit score. So that's one good way to sniff it out.
The Ramsey Show
Stick to the Plan Even When It’s Tough
What's causing your expenses to go up without you? Well, yeah.
The Ramsey Show
Stick to the Plan Even When It’s Tough
Yeah, the cars are the biggest problem I see. The $30,000 car, what's it worth?
The Ramsey Show
Stick to the Plan Even When It’s Tough
Okay. And so the, most of the income is on your end, like split up your income so I can see.
The Ramsey Show
Stick to the Plan Even When It’s Tough
And what kind of, you said you drive for your, what kind of work is it? What is it?
The Ramsey Show
Stick to the Plan Even When It’s Tough
I don't think these are your long-term career tracks. Am I right?
The Ramsey Show
Stick to the Plan Even When It’s Tough
And that's what you want to do? Or that's just the opportunity in front of you?
The Ramsey Show
Stick to the Plan Even When It’s Tough
I like to be able to see opportunity for growth or at least opportunity to side hustle, opportunity to expand your income because it's two pieces of this equation, right? It's getting the expenses down. We're going to give you every dollar. We're going to make sure you go through your budget with a fine-tooth comb to do that. But the other side of this is you've got to get your income up.
The Ramsey Show
Stick to the Plan Even When It’s Tough
And with what you're doing currently, it didn't seem like there was a path there. I don't know if your wife can do overtime, but you've got to get more money coming in here as well.
The Ramsey Show
Stick to the Plan Even When It’s Tough
Are you doing any investing? I don't think so.
The Ramsey Show
Stick to the Plan Even When It’s Tough
And you're probably not paying anything on your student loans.
The Ramsey Show
Stick to the Plan Even When It’s Tough
So where's the other half of your income going basically is what we're asking.
The Ramsey Show
Stick to the Plan Even When It’s Tough
Yeah, you do. So we're going to have Christian pick up. Make sure you get every dollar. And we're going to make sure you have Financial Peace University. I think that you need a crash course in financial literacy, personal finance, how you manage your money. You and your wife go through it together. But your homework is tonight to create that every dollar budget.
The Ramsey Show
Stick to the Plan Even When It’s Tough
You can create it in five, ten minutes. Go on YouTube. And George Campbell and I will show you exactly how to do that on our YouTube channel.
The Ramsey Show
Stick to the Plan Even When It’s Tough
But what changed with your wife? We know how you feel.
The Ramsey Show
Stick to the Plan Even When It’s Tough
It's only to a point, right? She doesn't want to feel that sacrifice.
The Ramsey Show
Stick to the Plan Even When It’s Tough
Can you tell us more what the debt is and your income so we can see a clearer picture?
The Ramsey Show
Stick to the Plan Even When It’s Tough
Okay. And can you tell me what they're worth? What's the $27,000 one worth?
The Ramsey Show
Stick to the Plan Even When It’s Tough
And the 37, what do you think? It's fairly new.
The Ramsey Show
Stick to the Plan Even When It’s Tough
That's right. Yeah. My guess is there's something behind this. I think Dave is right. You go to counseling, you're going to figure out what that is because there is something stopping her from wanting to go all in on this. And usually we see, Dave, that kids kind of trigger something in you. It's not done that for her. So my guess is there's something deeper in here.
The Ramsey Show
Stick to the Plan Even When It’s Tough
And I do think that counseling is going to reveal that. But at the end of the day, like we're the only ones that can change. You can't make somebody change. So she's got to get out, get onto it.
The Ramsey Show
Stick to the Plan Even When It’s Tough
Yeah. No objections. Was there any part of you that was like, I want to do this, but maybe I don't want to do it this way?
The Ramsey Show
Stick to the Plan Even When It’s Tough
And then you think about in the future when her heirs get it, what it's appreciated to, and now they don't have to deal with the red tape of having that solar lease on there.
The Ramsey Show
Stick to the Plan Even When It’s Tough
Mm-hmm. What I hear you saying that you guys did a good job on is with the budget, you have foresight. So all of these things that come up that people think, oh, this I didn't know this was coming or this felt like an emergency or this felt like something you guys had the foresight to look ahead and go, really, what is our life? Really? What? Like, well, let's be honest.
The Ramsey Show
Stick to the Plan Even When It’s Tough
And there is a reality there. And I think that that's what helped you guys plan to be not only pay off the debt, but to do the things that are just normal parts of your life during that time. So they weren't things that were
The Ramsey Show
Stick to the Plan Even When It’s Tough
Yeah, it just didn't feel like a fair deal. $4 million over 40 years for a piece that's worth $3 million today felt, at the very least, I'd want more money out of the deal.
The Ramsey Show
Stick to the Plan Even When It’s Tough
I don't think so. But I do think that they'll have more peace if their homes where they're at most of the time is paid off first.
The Ramsey Show
Stick to the Plan Even When It’s Tough
Especially with his income. He could care less.
The Ramsey Show
Stick to the Plan Even When It’s Tough
That's what I'm saying. So at that point, like you said, it's kind of useless at that point.
The Ramsey Show
Stick to the Plan Even When It’s Tough
That's right. And then it really does, like you said, that interest really doesn't matter.
The Ramsey Show
Stick to the Plan Even When It’s Tough
So there's like a level of skin in the game that you're saying. I was reading a couple of statistics and it was something like one in three U.S. millionaires are immigrants. At one point, like over 48 percent on the Forbes 500 were immigrant run companies, first born or, you know, child of an immigrant.
The Ramsey Show
Stick to the Plan Even When It’s Tough
So you're saying that skin in the game and coming from a sense of not not approaching it from a sense of entitlement. You think that's the.
The Ramsey Show
This Is How You Take Control of Your Own Life
Hey, what's up guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now,
The Ramsey Show
This Is How You Take Control of Your Own Life
i recommend contacting my friends at laurel road today through their online application you can get an initial rate quote in less than five minutes and if you have a more complex situation you can schedule 30 minutes to talk to an actual human being thank goodness laurel road makes it simple there are no fees involved and you could save thousands over the life of your loan remember
The Ramsey Show
This Is How You Take Control of Your Own Life
You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt.
The Ramsey Show
This Is How You Take Control of Your Own Life
If you want them gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
Nobody Builds Wealth by Accident
Yeah, I like that idea because at least you have some stability. It's almost like you can keep doing this until you land the thing that you want to do and then you can pull back on that. But it still serves as a really great side hustle because you guys are just getting started and there's a lot in front of you.
The Ramsey Show
Nobody Builds Wealth by Accident
So being able to stack up cash and kind of just like get the wheels going, I think is going to be good. And I like what Rachel said about really deciding where Long term, what that looks like, like what your wife wants to do, is there school or any sort of training in the future that you might need to pay for? So really stacking up money in this phase is also really good.
The Ramsey Show
Nobody Builds Wealth by Accident
Work for him for a season two. That feels better to me already.
The Ramsey Show
Nobody Builds Wealth by Accident
All right, today's question comes from Shannon in Alaska. She says, how do I save up for a divorce when I'm in debt? I separated from my husband. of eight years after he committed multiple incidents of financial infidelity. I've since increased my income to 100,000, which was what we brought in combined when he could work.
The Ramsey Show
Nobody Builds Wealth by Accident
The problem is that we have tons of debt, including money owed to the IRS and credit cards. The house is in my name only, and I don't want to move our kids out due to their current schools. Do I treat saving for a divorce as a sinking fund, or should I pull from my retirement so I don't have to spend more time in this marriage? That's a really good question. The good news is you are making money.
The Ramsey Show
Nobody Builds Wealth by Accident
Like you're making a good living, not just for a married couple, but for a single person. So that's a good part of it. It sounds like you're spending a lot of the income on like whittling away at the debt, if I understood that correctly. So I would pause that.
The Ramsey Show
Nobody Builds Wealth by Accident
I would pause whittling away at the debt because the truth is once you get divorced, it's gonna get, the assets are gonna get split, the debt's gonna get split. And I don't want you paying
The Ramsey Show
Nobody Builds Wealth by Accident
more than your share at this point plus you've got to pay for the divorce so yeah right now I treat this like storm mode and I would stop and I would save up and I'd really kind of put my feelers out there and find out like how much is this going to cost me how much can I save up for it and it doesn't say whether or not they're separated oh she does say I separated okay so I would kind of
The Ramsey Show
Nobody Builds Wealth by Accident
take my time and make sure I have the money because it sounds like you're in your own life at this point. The paperwork just hasn't been done. And so rather than go deeper into debt, yeah, I'd save up for it and pay as you go. It's not like you have to have the entire lump sum all at once.
The Ramsey Show
Nobody Builds Wealth by Accident
So your cut of that's $2 million, you and your wife's cut? Correct. Okay.
The Ramsey Show
Nobody Builds Wealth by Accident
But do you like that business? Is it your passion as a person or your wife's?
The Ramsey Show
Nobody Builds Wealth by Accident
Okay. So what you're... Sorry. Oh, no, I'm just I mean, what you said is really profound to me because what you're interested, you're interested basically in the money, but you're not interested in the work, like the type of work that it is. And I mean, I get it, but I don't think that that would be a good reason to. I feel like that's the recipe for a disaster as you get into this.
The Ramsey Show
Nobody Builds Wealth by Accident
It's not what you love. It's not what you're passionate about. The business suffers. You feel some type of way because you're having to carry this thing that you didn't really want, right? You just cared about, well, yeah, it feels nice to have the stake. Like there's a possibility to really have a lot of money long-term, but I like Rachel's plan a lot better.
The Ramsey Show
Nobody Builds Wealth by Accident
Yes. You guys are pretty young. I mean, to accomplish this is a major accomplishment. So my guess is you've avoided debt or did you have a big amount of debt to pay off? Tell us about that.
The Ramsey Show
Nobody Builds Wealth by Accident
Well, clearly that paid off, like that way of life of getting out and staying out of debt paid off. Wow. That's amazing. Okay.
The Ramsey Show
Nobody Builds Wealth by Accident
Do you have friends? Do you have anybody here outside of family that you can trust?
The Ramsey Show
Nobody Builds Wealth by Accident
So you're not alone. I'm not alone. Have you voiced this? I mean, aside from like COVID situations where it's really, you know, stressed or extreme, have you had this conversation with him, brought it up, not in the midst of an argument and just said, hey, here's the way I'm feeling. Have you done that? And what's been the response?
The Ramsey Show
Nobody Builds Wealth by Accident
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The Ramsey Show
Nobody Builds Wealth by Accident
with you know with people that are behind on their mortgage and it's like you'd rather sell it quickly than get foreclosed on i mean it's kind of the same equivalent so the hard thing though is you've got to be able to give them the title so how are you going to close the gap from the one do you know what i'm saying if you take less how are you going to close the gap so that you can actually sell it free and clear do you have any money anywhere saved
The Ramsey Show
Nobody Builds Wealth by Accident
Okay. So what I would do then with that $1,000, because breaking loose on one of these is going to help you avalanche through all of them. So the one that was the least upside down was number two, the one that you owed $28,000 on that was worth $25,000.
The Ramsey Show
Nobody Builds Wealth by Accident
If you can just really quickly get 3000 bucks saved and just focus on that one, you even clearing one of these immediately is going to rock your world. Yeah, you know, absolutely. And so that's what I'd focus on. And then after that, they're going to go like dominoes because it's going to clear up that payment. You're not going to feel the stress of it. And so focus on one at a time.
The Ramsey Show
Nobody Builds Wealth by Accident
He was able to give me... He's clearly not because you don't have it. So he's not.
The Ramsey Show
Nobody Builds Wealth by Accident
Yes. And what are you paying right now to live in this other property that your parents have?
The Ramsey Show
Nobody Builds Wealth by Accident
Well, were you paying off other debt before this? And this is just what's left.
The Ramsey Show
Nobody Builds Wealth by Accident
Okay, so when do you think, based off of the progress you've been making, how quickly can you have this $7,500 paid off?
The Ramsey Show
Nobody Builds Wealth by Accident
Well, you want to move smallest to largest. Like that's the way that we would teach you to do it. But even doing that, how quickly do you think you'd be through the whole 7,500? Within the next six months. Six months. Okay. Yeah. So that gives you adequate time to start doing your research and seeing what it would look like to rent. Like Rachel said, you're throwing it in a budget.
The Ramsey Show
Nobody Builds Wealth by Accident
You're kind of running the numbers and getting used to what that idea would feel like. And by the time this debt is gone, it's going to be, you know, you packing up that. Yeah.
The Ramsey Show
Nobody Builds Wealth by Accident
So is she doing the homeschool thing or are two of them already in kindergarten?
The Ramsey Show
Nobody Builds Wealth by Accident
I think you're right. You know, I like I love when moms want to stay at home. I think it's a great idea. I love the idea of homeschooling. But there's two really, like you said, facing the reality of a financial situation. And like I've said many times on this show, a dream deferred is not a dream denied.
The Ramsey Show
Nobody Builds Wealth by Accident
Just because you say, hey, in this season, I'm not getting you know, I'm not able to have my cake and eat it, too. So in this season, I've got to work hard. And then once I get ourselves in a better situation, then I can do those things. I can stay at home. I can do whatever. the homeschooling. So I think that there's a little bit of sacrificing to when that needs to take place here.
The Ramsey Show
Nobody Builds Wealth by Accident
I can understand that. OK, 37 percent of Americans said their personal finances will get better during the second Trump presidency. Listen, I think that's, we saw that at the polls, obviously.
The Ramsey Show
Nobody Builds Wealth by Accident
Okay. I love this one. Grocery shopping was the number one category where Americans said they're likely to overspend, which we've been telling you guys that for years. That's us. Food is the budget buster, right?
The Ramsey Show
Nobody Builds Wealth by Accident
I already know what it is because it's the same at our house. So bad. It's so bad.
The Ramsey Show
Nobody Builds Wealth by Accident
Yeah. But it's like, I mean, when I look at that, it's like eating, eating your vegetables. Like we all know, like, yeah, I'm supposed to eat broccoli.
The Ramsey Show
Nobody Builds Wealth by Accident
i think i'm like i feel in control i think if you have rachel those go-to meals like the ones you that are easy the ones you know your family likes it does make meal planning easier i think it's the folks who are like i hate cooking yep i'm bad at cooking i don't know what like those are the folks who really yeah struggle that's fair that's fair All right, so this one is a heavy hitter.
The Ramsey Show
Nobody Builds Wealth by Accident
It says Americans said the ideal interest rate for them to consider buying a home in the next 12 months is 4.5%. Keep in mind that right now it's 6.13 or something like that.
The Ramsey Show
Nobody Builds Wealth by Accident
I mean, don't get me wrong. Like Rachel, we're always talking about considering finances and family planning, but I feel like that's definitely next level. All right. About half of Americans have given money to a person in need or a charitable cause in the last three months. I think that's great. Prioritizing generosity.
The Ramsey Show
Nobody Builds Wealth by Accident
I think no matter where you are in the baby steps, if you do that, like there's nothing wrong with that. That's a wonderful thing.
The Ramsey Show
Nobody Builds Wealth by Accident
I don't know why. Can you spot me a few singles for my utility bill?
The Ramsey Show
Nobody Builds Wealth by Accident
Okay. And does the business you guys run together, so your husband doesn't have a separate income?
The Ramsey Show
Nobody Builds Wealth by Accident
And just to clarify for me, you said the net profit from the business was $200,000, but it sounded like that's not necessarily what you take home because you were investing a lot back into the business. Did I hear that right?
The Ramsey Show
Nobody Builds Wealth by Accident
Okay, so you're paying $800 a month in leased cars, $2,000 to parents. So I think what you guys really need is to get on a budget. And we'll give you an every dollar budget, but that's going to help you see where all the money is going. And when you see that, you're going to have this moment of, oh my goodness.
The Ramsey Show
Nobody Builds Wealth by Accident
And that's going to give you the opportunity to reshift your priorities, you and your husband, and saying, we might not be able to afford some of the things that we're doing, specifically the leased cars.
The Ramsey Show
Nobody Builds Wealth by Accident
Listen, what you're saying is I, I think I get what you're saying. Like you don't want to open the can of worms, right? Like there's a lot there. And the truth is when you do go through therapy, it creates, it's almost like it creates more work for you to do more to work through. It's not just like a quick fix, right? It's going to create more and more. It,
The Ramsey Show
Nobody Builds Wealth by Accident
Can I clarify the first rental that you were talking about that you have somebody in there? Did you say that you owe $83,000 on it and it's worth $175,000?
The Ramsey Show
Nobody Builds Wealth by Accident
Okay. But if you, and it's where you live, like it's in your area.
The Ramsey Show
Nobody Builds Wealth by Accident
So my question is, you told me, you said you have 85 in cash, then you've got 40,000 in a brokerage. Why wouldn't you, now don't get me wrong, I don't think you should do the deal in Pennsylvania. You're nowhere near there. But why wouldn't you pay off the...
The Ramsey Show
Nobody Builds Wealth by Accident
yeah so we cross that one off the list you pay off the one that you have for 85 000 now you've got a paid for rental and then you've got another 40 000 to start putting towards a down payment on yeah would you what would you live in that townhome uh my girlfriend won't why would uh she doesn't like it um but i mean with some convincing and showing their financials i might be able to
The Ramsey Show
Nobody Builds Wealth by Accident
Sorry, I didn't mean to cut you off. I thought you were finished. Keep going.
The Ramsey Show
Nobody Builds Wealth by Accident
Maybe. I mean, let's, what are you making right now and what are you guys projecting?
The Ramsey Show
Nobody Builds Wealth by Accident
Um, yes, ma'am. Yeah, I would say. How long have you guys been doing that? About a year and a half now. Okay. And what are the other options? You said, should I get a better job in sales? Do you have like ideas of what that might look like? Or has someone offered you something?
The Ramsey Show
Nobody Builds Wealth by Accident
I mean, why not do both? It feels like from what you described, especially based on the pay and the like some timey nature of it, it feels like it could be.
The Ramsey Show
Nobody Builds Wealth by Accident
more of a hobby side hustle as it grows if it continues to grow and maybe you continue to do it but why can't you do this job while you do another job like is this like you've got a book of business is it something that your brother takes on more of the load and you take on a smaller load so you've still got i don't know a thousand bucks coming in a month but you're still doing another full-time job
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Good advice, Rachel. Yeah. Viola Davis said, don't let yourself on fire to keep someone else warm. This is the Ramsey Show.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
All right. You're listening to the Ramsey show. I'm Jade Warshaw. Next to me is my good friend, Rachel Cruz, taking calls all hour long, your life and your money. Uh, if you have a call, you can call in our phone screen or we'll pick up. That number is 888-825-5225 in order to get involved. All right, Rachel, let's go to the phone lines. We've got Leah. She's in Rochester, New York.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
I mean, it sounds like everything that you are saying are very important things. And so you are thinking about the right things. I think for Rachel and I, it's just narrowing it down to what's most important right now and kind of giving you a step-by-step on what to focus on first, second, third, fourth, that sort of thing.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
From the Ramsey Network, it's the Ramsey Show. I'm Jade Borshaw. Next to me is Rachel Cruz. And we're your hosts for today. We'll be taking calls about your life, your money, your career, your relationships, really whatever it is that you want to talk about. As long as it has some connection to your money, we're here for you. It's a live show. So if you want to get in, you can.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
What did you need credit for? What were you trying to accomplish?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Is that including the child support?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
So what do you get? What does he send?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Can you go back, Leah, can you clarify for Rachel and I, when you say $44 a week, are you saying $4,400 a week is what you're supposed to be getting from the dad?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Got you. And you're only getting $44 a month right now?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
a hundred dollars um he just pays me himself like weekly so in total let's just say like around 560 right a month in child support in total 560 yeah okay okay um and you mentioned okay you mentioned earlier on about roth iras and things like that um i right now doesn't seem like the time to do that. It seems like you've got bigger fish to fry.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
You've got a, an attorney fees that you're going to have to pay. You've got a car that doesn't have much more life in it. Um, did you, did you say how much you have saved? You said you're able to put a little aside. What do you, what do you have in savings right now?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Okay. If I were in your shoes, I think I'd be focused on stacking up some money for this car because if this is your only mode of transportation, you're going to need to be ready for that. What do you think that's going to cost you? Have you looked around?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Well, we're not going into debt for it. So you're only going to be able to buy what you can afford to save up and get. That's really what's going to inform this decision. Okay, I see.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Yeah, I don't want you let us clarify at this point with anybody, not just you, anybody who calls and we're never going to suggest debt, but specifically here because your income, you know, you can't afford to add any other risk or frustration or stress or anxiety to this equation. And if you do debt, you're definitely adding that. The good news is you've got $950 saved.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Your car hasn't busted yet. So you've got time to set some money aside. You've got some time to do some shopping, figure out.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
That changes your whole... That changes everything for you.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Oh, very, very good. This is The Ramsey Show.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
This is The Ramsey Show. Happy New Year. Is it still, can we still say Happy New Year? It's still January. I feel like you can say it for a while. I feel like it's festive.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
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Don’t Let Toxic Money Situations Keep You Trapped
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The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
I mean, part of me... And Rachel, I've even heard you say this. I think with kids, they go so much more by what you do than what you say. I mean, of course, they're listening to what you say, but your actions are backing it up. And so if you're in baby step two right now, they're seeing in real time what it looks like.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
As long as you're open about it to the proper extent, they're seeing in real time what it looks like to... be on top of a budget, checking your budget, checking in with your spouse, making smart choices. They're seeing that more than anything.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And weirdly enough, I don't think we give enough credit to that because most of us, if you were to say, give me a picture of what money was like when you were growing up, most of us could say, oh, when I was growing up, my parents never talked about money. Or when I was growing up, you know, it... Things were never tight. It just felt like we had what we need.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Or when I was growing, most of us can look back and we have a very clear picture of the way money was presented to us. And so knowing that as a parent, I think like I know for Sam and I, we're always very clear about, oh, you know, we're doing our budget for the month or we talk about it.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
So knowing that when they look up, they're going to go, oh, yeah, my parents, they always mentioned a budget or they were always very mindful of what we were spending. That's right. They always said things like, well, if you can save it up, you can get it. So
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
There is a practical side to it, but there's also so much just in the intentionality of everyday language and how you're speaking about it with your spouse, I would say.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Yeah, that is so true. I heard someone say a long time ago, it wasn't that long ago, but whenever your kids hear something for the first time from you, the parent, you become the expert, right? So that could be, I don't know, relational, that could be with money. But in your home is probably going to be the first time that your kids start hearing about money, thinking about money.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And so you become the expert. And so you have to be very intentional about what you're putting out there towards them. It's just a good kind of framework to think through when it comes to that. But for sure. Very, very good. All right. Let's go to John Fargo, North Dakota. What's going on, John? Hey, Jen, Rachel. How are we doing today?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Okay. Yeah, listen, I love great benefits. I think that that's a wonderful thing. It's a wonderful cherry on top of whatever it is that you're doing and your salary and everything like that. I'll also say this. Everyone thinks their situation is the exception to the baby steps.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Um, and the truth is it's not, um, I would, there's never, for me, there is never a time where I would say, you know what, in baby step two, I'm going to invest as well, because the truth is this is a proven method and it's what works. What we find is that when you focus on more than one thing at a time, you go a lot slower.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And when you have a slower pace, it's harder to stay motivated over the longterm. Right. And so you've probably heard it said before, your biggest wealth building tool is your money. And that's true. And that's probably what you're thinking. You're like, man, if I can... I've got this money at my disposal. I've got this match at my disposal. I've got to go quickly.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
But the truth is, if you were to split your resource in that way, it's going to take you that much longer to pay off your debt. And when it takes you that much longer, the chances of you becoming less motivated are very, very high. And so for that... That's my first reason I wouldn't do it. The second reason I wouldn't do it is because...
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
If you're jumping around in the baby steps and you go, OK, I'm going to invest instead. Chances are you also have not saved up three to six months of expenses, which means if something were to happen, the first place you're going to go is wherever your money is, which is to your 401k or to credit in order to borrow. And so there is a reason that these baby steps are in the order that they're in.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
It's because it's going to serve you best regardless of what life throws your way. Does that make sense?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Hold on, hold on, hold on. You're saying you put $7,600 towards your debt every single month, and then you're saying that your contribution to the 401k would be what?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
So you're saying, oh, if you put in $6,000 for the year, they're going to times that by four? Is that what you're saying? So it's going to be $24,000?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
So you're saying that's out completely for the year instead of the month?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
I think the whole conversation of this is what you want right now as opposed to what's going to work best for you long term. You're going to do what you want to do because you're a grown man and we can't stop you from doing that. But if you want to know how to work the baby steps, we just told you how to do it. This is The Ramsey Show.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
From the Ramsey Network, welcome to the Ramsey Show. I'm Jade Borshaw. Next to me is my good buddy, Rachel Cruz. We're your hosts for today, taking calls about your life and your money. Hope you're having a great new year. I hope it's off to an excellent start. And if you need any help with your money, your relationships, your career, you are in the right place. We're here to help.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And that's what we plan on doing, taking some live calls from you guys. So let's get on with the first call. We've got Beth, who's local, Nashville, Tennessee. What's going on, Beth?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
What did you think? Can I just ask when those timeframes were happening, where did you think the money was coming from?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
But if you had to ask yourself, where did you think the money was coming from? Did you have something in your heart that you thought, oh gosh, we're probably on credit cards or we're probably on.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
So today, what is the financial snapshot? Is it still the $80,000 in credit card debt and that's it? Or give us a today picture of what's going on.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Neither of you were good money managers. Um, but I also, before we move on, can you tell me about the house? Can you tell me what you owe on the house and what it would, what it's worth?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
about 360 okay okay so the good news is you still got a ton of equity in it you're no longer together are you no longer together what's happening here it sounds like somebody that you would no longer be in a relationship with unless you're doing deep work to fix this so what's taking place with the relationship trying to do the deep work for 30 years and i've realized that it
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
I mean, let's understand this kind of big picture because, Katie, you're not the only person who has gotten that misinformation. The truth is debt is a product. It is a product that institutions make money off of. It's not something that's required. It's not a law. It's not like your driver's license where you have to have it in order to drive a vehicle. But it is marketed that way, right?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
This is The Ramsey Show. We've got open phone lines, so if you have a hankering question about your life, your money, your career, your relationship, daycare, whatever it is that's on your mind, give us a call. We can help you out with it. Maybe it's your budget. It could be any of those things. We'd like to help. We've got Gigi on the line from Los Angeles, California. Gigi, what's going on?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
The number is 888-825-5225. And we'll pick you up on the line. All right, Rachel, you ready to get into it? Let's do it. All right. Katie is in Austin, Texas. What's going on, Katie? Hi. Hi, how are you?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
It's marketed as this thing that you can't live without, you can't do without. And they'll even make it seem as though if you want a car, you need a loan. If you want a home, you need this. They make it seem that way, but that is not the truth. The truth is, like Rachel said, a lifestyle without debt is absolutely there. You do not need a credit score.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
How much are you making? What do you bring home every month?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
OK. And is your is your husband working while he's in Uganda? Does he have any money to speak of in this?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
OK. Yeah. Yeah, there's part of this where this feels a little bit like, not a storm, but something that does need to be prepared for. Because what you're saying is if they got here next month, I mean, how likely is that?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And the only reason it seems that way, it's because it's such a well-marketed product that they have fooled us into that. And there's a lot of money that's made on it. And so a lot of people have kind of locked their arms around making it seem as though this is the case. And it's truly, truly, truly not.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
We know it's real now. Okay. Really funny. Okay.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Part of me feels like right now you said you're putting $1,500 a month extra towards the debt. Part of me is like, okay, if you put a thousand aside, you can be done with this in six months and still have made some progress on the car if you wanted to. Or you could say, I'm going to stop one and do the other.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Like I'm going to stop, I'm going to save up $6,000 and then I'm going to push play on the car, which is probably what I would do. Because if what you say is true, like it could literally be next month or in two weeks or turn around and be in a year, it's not going to matter. They're both going to be taken care of. Because it's considered a four wall at that point.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
I mean, if you put all this money towards it, you're going to be done in four months. If you put the whole $15,000 or $1,500 towards it, you're going to be done super fast. So, you know, you could probably do either and be fine. But to Rachel's point, prioritizing the house first is probably it.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
The big areas where people kind of, I don't know, Rachel, I would say butt heads on us are, okay, then how do I buy a car? Okay, then how do I rent an apartment? Okay, then how do I buy a house? I feel like those are kind of the top three areas. And rightfully so, you should be asking those questions.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And I don't know. I mean, you didn't mention this. It seems like you might be in an expensive area. If there's no purpose in you being, I'd look further out, especially if you guys have goals to pay off debt. I don't know if he has debt, but it could be worth it to-
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Well, and that also raises the point of, we talk all the time when it comes to mortgages, yeah, the percentage shouldn't be any more than 25% of your take-home pay. And we talk about that includes taxes, HOAs, like any fees, that sort of thing. But the truth is it still applies with rent too.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Because the overall principle still is in place, which is if it takes up more, especially more than 30%, you're really going to feel that. Even if you're only renting for the next three years or whatever it is, it still cuts so much into your day to day that you're going to feel it.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And especially if you're trying to get out of debt, you're definitely, it's going to take a toll on your month to month expenses and what you can really accomplish. Yeah.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And the truth is, we would say if you're in a car loan right now, yeah, work to pay it off very, very quickly. And then your next car, make it a point that I'm going to save up and pay for cash, even if I get something a little less expensive, right? That's how you get out of the car loan debt. And then for somebody who says, hey, I want to rent an apartment.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
That's really good, Rachel. Having that foresight to go, okay, what season of life are we in? Are we in a season of life where we're still having children? Could there be the idea of one of us staying home? That is so, so smart. Really good. This is The Ramsey Show.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
You're listening to The Ramsey Show. I'm Jade Warshaw. Next to me is my buddy, Rachel Cruz, taking your calls this hour. Your life, your money, your New Year's resolutions. Get in where you fit in. So, Rachel, there's a lot going on with the housing market. We're seeing some trends. You've got some input on it, so I'm going to let you take this and drive it on home. Yes.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
The truth is, there are lots of apartment complexes that will say you can't We only go by credit score. That's true. There's also a lot that will go. And if you bring in other proof of purchase, whether it's your cell phone bill, electric bill, maybe you lived with your parents and paid them rent, they will use that. So that is the truth. Same thing, rental cars.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
So the value of our homes are still it is still going up, which truly is good news because these are investments for us and we want we want them.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
be going up um even if you're not in the housing market yet that's a good sign for all of us but rachel you made a really good point because when you go into this you've got to know your numbers you've got to know what your parameters are because they will like lenders will allow you to borrow sometimes up to 50 yes maybe even more of what you're taking home and so just because they say you're approved that is not your signal to go all right
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
What homes cost now as a homeowner. I'm not. I mean, think about it. Because this is the thing. If you're on the sidelines right now, you're definitely feeling some type of way because you're like, man, I wanted to get in on the market. But it's good news for all of us because it tells us that the market is still strong and that things are doing well.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
You can rent a car without having a credit card. So anything that tells you otherwise, Rachel and I are here to tell you and kind of debunk that myth because it's not true. And even the biggest one, Rachel, buying a house.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And when you do get in, you're going to want your property to appreciate as well.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
I mean, Sam and I... South Florida was one of those hot areas. And when we got our, our first house was around 400,000 and it doubled when we, I'm like, thank you. It made me a baby steps millionaire. Like this is what we want to happen. And so it's one of those things that when you're not in the housing market yet, it can feel so frustrating.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
But once you get in, you're like, yes, like I'm finally part of it and you want to see it ticking up. And so that's right. Yeah. Good things. So good. Did we tell them to go to the... Oh, no. Yeah.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And they help you do it the Ramsey way. Because when we were moving here, the way we do things the Ramsey way is not necessarily the way they do things out in the world. And so it's like, I remember making an offer on a house here. And I was like, it's got to be contingent. We've got to sell that house so that we have them. We're not going to be one of those people who takes out a bridge loan.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And it's great to work with a Ramsey trusted person because they know that. You don't have to explain all that to them. They get it. going to, you know, take the task on it. Exactly. So it's so, so important to do things the Ramsey way. Okay. Let's get to a call. Nick and Diana, they're in Chicago, Illinois. What's going on? I love a couple now.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
We all know. So many of us think you have to have a credit score to buy a house. That's the biggest thing. And it's just not true. You can still do something called manual underwriting. And in that, they look at people who do not have credit scores that have a zero credit score and they go, okay, we believe that a zero credit score is just as good as a high credit score.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And so... You could try to see what a judge would say about it. I mean, to try to force a refi, but... I don't know that they could do that. Yeah, I'm not sure. This is why we say not to do this.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And we can look at your actual money, your actual transactions, and we can determine if you are in a good position to borrow money for a home. And so I hope you learned that, Katie, on this call that it's not something that is necessary at all.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
You are listening to The Ramsey Show. Hey, thanks for hanging out with us. If you like this show, we're happy that you're here, honestly. And we want to make sure that you're sharing it with your friends.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
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Don’t Let Toxic Money Situations Keep You Trapped
So that survey is now live. We want to know your favorite parts of the show. We want to know what you like, what you don't like, what you want to hear more about, whatever it is we want to hear from you. I just beg of you, be kind. Like, don't comment about like my hair or... I don't know, something weird. Unless they're Ken's clothes, you can comment about Ken's.
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Don’t Let Toxic Money Situations Keep You Trapped
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The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Do you, Jane? I don't. I mean, we had somebody call in a couple of weeks ago. It was a boyfriend-girlfriend conversation.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
signed together on the vehicle that she would drive they're no longer together and he's like she's not paying the bill like what do i do and the only thing i could advise them is you know find out you know how much is owed and kind of keep that to the side because you might be ending up on the hook for this that's
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
That is the danger, Rachel, that we talk about all the time, whether it be with housing, whether it be, I mean, this is the price of a house. And so because of it, to not be able to do what you want to do next, you've really got to think long-term because the truth is, you know, with the call that you just talked about, The guy, he's not, he's not a bad guy. The friend.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
The friend is not a bad guy. He was making payments. He, something health happened with his health. Like life happens and you, there's no way we can have the foresight to understand what will happen with the housing market. What will happen with interest rates? What will happen with your health? Will the, the relationship sustain? You don't know.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Yeah. You just don't know. And this is so sad. I was telling Rachel during the break, you know, with my husband and I, we experienced this because it's always out of the goodness of somebody's heart. Always. And, you know, with student loans, you know, my mother-in-law signed student loans for obviously her son, which you would think, oh, duh, of course you would do that. But the truth is,
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Now it was on her credit as well. And that's part of her debt to income ratio. And when she was ready to buy a house, then we were affecting her because we still had, that wasn't something that was in our debt snowball yet. So you can see how it's not that somebody's the villain or doing something bad.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
It's just when you co-sign, I mean, it's why the Bible says that it's, I mean, really in simple terms, it says it's stupid to co-sign. Yes, you're a fool.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
yeah you're a fool to do it because it puts you in a situation that you have zero control over virtually that's right yeah so i didn't want to go past that call too quickly because it's a big one i know for nick and dan this is their reality but but also i mean that the answer is really i mean there's really not much not much you can do all he can do is save up to try to pay cash and lower that debt to income ratio for his own loan that for his own home loan that's truly all he can do control what you can control but at that point it is there yep yeah
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
oh so tough rachel so sorry you guys that's that's not fun yeah all right learn from their mistakes and from my mistakes and rachel you have some in there too i'm sure all right jeff we've got jeff in austin texas what's going on jeff good to have you on the show well i'm pleasured to be on the call i've been listening to dave and you ladies for probably 20 years oh wow before us then jeff before we were co-hosts so that's great thanks for calling in
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
You said he came clean to the whole family. So that was after she had gone to him and said, hey, what is this? And obviously after they talked, then he felt the need to kind of say that to the whole family. Is that what you're saying?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Don't meddle too deeply or it's actually going to make it worse. I think they need to figure this out between themselves as a couple. Sorry. This is the Ramsey show. Hey friends, the first episode of 90 Day Money Makeover is available right now. This new series follows real people as they take on the challenge of transforming their finances and their lives in just 90 days.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Watch as they navigate the highs and lows of this journey and as I walk alongside of them every step of the way. Okay, now here's a little sneak peek of what the new episode is all about. What's going on, Heather?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
She's got a lot going on. We've got to simplify it. She's got the farm, the divorce, the debt. We're just praying the money's there, I guess.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Are you ready to commit to it? Are you going to do it? I need help. I'm done with it.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Oh my gosh, I'm good to see you. Do I want to pet a chicken? No. I see you doing a lot that wasn't even part of the homework, and we're only at the 30-day point. I want to be undead.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
There's no guarantee that the bank would let her keep the house. I want you to start dreaming what another living situation might look like if it doesn't go your way.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Yeah. So at the end of the day, we're not, we're not putting other people's name. If you do choose to take out debt for the love of God, don't put someone else's name on it with you. That's really the moral of the story. And then, of course, don't go into debt, period, because you don't need it. This is The Ramsey Show.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
You're listening to The Ramsey Show. I'm Jade Warshaw. Next to me, number one bestselling author, Rachel Cruz, hanging out with you all hour, taking calls about your life and money. And I want to tell you about something super duper important. If you're ready to get your finances in order once and for all, you know what I'm talking about. In 2025, this is your year for financial success.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
I want you to join us January 23rd for our free live stream. It's a Take Control of Your Money live stream. It's going to be myself, Dave Ramsey, Rachel Cruz, George Campbell. We're all going to join together. We're going to show you how to get control of your money. We're going to take questions from you, the audience.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Myself and Dave, we're going to help you learn how to stop paycheck to paycheck living. I mean, we've all experienced it, and it's time to make the cycle stop. We're going to show you how to free up more breathing room so you can pay off debt fast. And finally, get ahead with your money. So Rachel Cruz, you and George are going to join us a little bit later for a Q&A.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
You can ask whatever questions you have about your money. It's absolutely live. And so it's like real time. So that will be very entertaining.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
and if you didn't know when you sign up we're going to be doing some giveaways throughout the evening we're going to give away four thousand dollars to five different people a total of twenty thousand dollars which is pretty amazing so again the event is free but when you register for it you can sign up to get that that free cash so that's nice sign up for the free live stream by going to ramseysolutions.com live stream or you can click the link in the description
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
If you're listening on podcast or YouTube, either way, you need to be there. Rachel, I really do believe that. I feel like in 2025, so many people are going to draw that line in the sand and finally say, this is the year that I do that thing with my money and I make lasting progress.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
the transactions because he's making he's taking care of the bill yeah i i would have an issue with that well first the mistake that i see is that you have credit cards in both of your names um so i think that that is a mistake because either of you can spend on them and if either of you decides that they're not going to pay the bill so let's say you guys were to break up
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
We're not preaching at you. We're giving you step-by-step advice that you can implement. So that's really good, Rachel, to highlight. Okay, let's get into those phone lines. Oscar, Des Moines, Iowa is on the line. What's up, Oscar?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Okay. And it's just him? Or is he married?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Do you have a relationship with your dad aside from this money, or do you feel like this is the only contact you have? Do you know what I'm saying? He only comes around for money, or do you have a relationship established outside of that?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
One last question, because I'm just trying to put the pieces together. When he asks for money, how much? Like in a month, how much money would you give him? And then how quickly before he'd ask for money again?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
and he ran up a balance on it, you're both on the hook for it. And if he doesn't pay it, it can affect you in a negative way. So that's the first issue. Then the second issue is then if you have a credit card that's only in your name and he's insisting on spending...
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And sorry, I'm fascinated by what's going on. And I'm also trying to dig deeper. If you had to assess the situation, is your dad, like, is there anything unhealthy we should know about? Like, do you think, do you sense any like addiction, something where this money is going where it shouldn't be going? Or do you truly think, listen, this guy, he has no budget.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And because of that, he's late on rent. Is it just that simple?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Is that like the Transformer? Is that like Bumblebee? No, no.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Oh, so it's a gift. I don't think you have to sell that, though.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Oh, I'm sorry. Listen, here's the thing. James, you're doing good. All right. You have looked at your situation and said, we need to make a change. You've started down that road. You made a small mistake with this debt consolidation. But I mean, Ken, who among us hasn't made...
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Okay. Yeah, you know, let me see if I can frame this in a different way. I mean, we're always going to tell you to pay off the debt, right? That's kind of what we're known for around here. Maybe the why behind the what will kind of help you get your head around it. Is that what it is? Like, why would I do this?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
No, I'm proud of him. James is doing all right.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
So for me, whenever I'm looking at debt, I am viewing debt synonymously with risk, right? There's always this risk. As long as I have payments, as long as I have debt, there's always a risk hanging over my head and hanging over my shoulders. So in this case, it's $35,000 that you're sitting on.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Listen, I'm going to get that for my babysitter.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And if something were to happen tomorrow, let's say tomorrow the worst happened, you lost your job or you got laid off or you fell off the curb, broke your leg and you couldn't go to work. Right. Suddenly you would feel the weight and the risk of the CRV. Is that correct?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Listen, if you hear a knock at the door, don't answer it.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And not only would you feel the risk and the weight of that $600, but then your brain would start doing real math and you'd go, hang on a second. I don't actually have $32,000 saved. I'm actually in the whole $3,000, right? So that's kind of – it's easy on this side when everything is good and coming up roses to think of it and not think of the debt.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Well, I say that we haven't heard the big why yet.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And I think that's probably what's going to inform this conversation the most and probably what's going to light your fire to actually go and pursue what Ken is telling you to do. You know, if you don't have a reason, it's like what you said, the person that aims for nothing. So what's the reason? Are you trying to move out of the house? Are you trying to buy a car?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Are you trying to get, you know, what is that why that you want your income up to go up there for your savings to go up? And I think that's going to give you that fire you need.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
You're 20 years old. This is your first bout with, you know, being a career man. And you're like, hey, this is kind of nice. It's nice to earn money. And it's nice to see that I have savings. And it's nice to kind of know that I it's like, yeah, you hike your pants up. You're like, all right, like this.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Another one is there's going to be a Mrs. Derrick in the picture at some point. And when you see her across the bar or across the, you know, whatever, you're going to want to take her out and wine and dine her and convince her to be Mrs. Derrick.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Another one is to have that extra margin because we want to save and invest for the future. And we suggest 15% of your income. And once that 15% is gone, you're going to want extra to live your life on and it not feel super tight. So, yeah.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
But when you play it out on both sides, which is wise thinking, then you suddenly realize, oh man, this is actually more of an imposition than I thought it was. So for that reason – I would reach over and I would pay this debt off. I'd keep a thousand dollars to the side like we always do. Just so you've got that starter emergency fund.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Wow. What a blessing to have that money just sitting there for you guys. Right. What's your income?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Okay. Yeah. And you said that as soon as you called in, I just didn't write it down in time. It was a lot of numbers. I was trying to keep up with you. Okay. Yeah. Okay. I think that this 225 sitting there, is it invested in anything? Is there a return on it that's good that you're interested in? Or how much has it grown over this time is basically what I'm wondering.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
I'd pay off the rest of it, the remaining thirty one thousand on to the CRV and then cash flow and pay off the rest. And then without that six hundred dollar payment, how quickly could he save up that money? Three to six months nest egg again, you know.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Okay. I probably would do that if I were in your shoes. You've got the $25,000 in savings. That's also at your disposal. I would not touch the Roth or any retirement money whatsoever. The only thing with this is you might want to look into the tax implications because there's likely going to be something there on the growth.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
So I would look into that and find out what that would be because you're wanting to drain the whole thing.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
I'd probably you could move it into a high yield savings. I'd want to know again what the rate of return has been on this. So what about the twenty five thousand that you have there? Are you saying that you would add to it and put that up to 40? Is that what you're saying?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
OK. Yes. Yeah, I do it. I would just talk with somebody to find out what the tax implications are, because there's going to be something on that.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Yeah. Okay. I think that's a blessing.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
The money that went into it, the money that went into it was after tax dollars. So I don't think it's going to be taxed like the same way it would be like at your normal income rate. I don't think it is. But you'd have to check on that because you are going to be taxed on some of the growth that that's acquired. So that's important to know.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
I wouldn't want that to, you know, hit you upside the head. But other than that, I would do it. I think the one cautionary tale that I have on this sort of thing is. I think it's always a blessing when you're gifted money, when an inheritance comes through, you know, when you're able to kind of sell one big asset to get out of debt. I don't look down on that. I think it's a great thing.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
I think it's a blessing. However, there is a piece of that where I want to just say, be careful and be cautious because the same guy that got into $28,000 of student loans and $18,000 of car loans and All of that is still that guy. And you got you were thrown a lifeline here.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And so you've got to be careful and make sure, OK, moving forward, I've got to change my habits and I've got to change my philosophy around debt or else I'll look up in five, 10 years and I'll be here again just with a different sort of debt. And there won't be an up there. Does that make sense?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Yes. OK, so that's just that's all I got to say about it.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
How much money do we make? When they put the we on it?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
I 100% agree. If we had asked that when we were kids, if I asked my parents that, man, they'd be ready to slap the taste out of our mouth. That is like a no-no.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
can't we have this why can't we have that and i do think that would create a problem so i think the answer is you're not mature enough to handle that that's not something we discuss yeah uh go ride your bike go ride your bike or something and if you want to teach them something just say you know your dad and i work really hard and we're good stewards of the money that we have and we're blessed and we use that to take care of you you know what i mean like yeah that's the
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
They already think they know a little something. They're like, you know, they use the word we a lot. And so I have to go Cliff Huxtable on them and explain to them that they have nothing.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Yes, absolutely. I think as much as you can let them experience that.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
It's the better lesson. My kids, they have a chart on the refrigerator where they do their chores. What are you paying, by the way, for chores these days?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Listen, don't judge me. I'm not going to judge you. My kids are five and seven. That's the context. For my son, he earns more because he's more responsible. So if he unloads the dishwasher, that's a dollar.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Okay. It's not bad. And then if he takes out the garbages, like there's a couple of garbages in the house, I think that's 50 cents. Nothing is more than a dollar. Everything is a dollar or 50 cents. And then my daughter, everything is 25 cents or 50 cents.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
So they get paid at the end of the week. And if they want to go spend their money, they see now how much a toy costs.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
They better do enough chores to where I get even amounts.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Man, I'm going to catch you next time on that.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Not to mention the interest. You know, you're saving on the interest rate, you know, by paying it off early.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And do you think she's trying to make do you let me do you think that she is trying to get a rise out of you when she says it? Or do you think that for her, she's comfortable talking about money and you're just not comfortable? Does that make sense? Which one is it? Is is the onus more on her or more on you?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Has she ever said anything bad about you? Like, has she ever done the backhanded compliment where it's like, well, I know you probably couldn't afford something like this. So just take it. Like, is she giving a backhanded compliment when she does it?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Oh, because you feel like you feel it. It irritates me to no end. Yes. And it's there for that reason. Yes.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
I want to dig a little more. So far, I'm going to tell you the side of the fence I'm on. So far, Tracy, I think it might be more you than her so far. Okay. And I, and that, I don't say like neither of you is a bad person or neither of you is like, uh, even an insecure thing. I think some people are way more confident talking about money.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And I do think that there's certain things that it's just like, she's in a mode in her lifestyle right now. I don't, it doesn't sound like she's trying to, I don't know.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
If my brother came home and I think he did come home with a new truck. And he was like, oh, he was, I said, oh, is that a new car out in the driveway? He's like, oh yeah, I just got it. Let me go see, let's go see it. And you go look at it. Like, I feel like that is kind of normal. And it's like, yeah, you know, I never thought I'd be able to get it, but I got a raise and I was able to get it.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Like I, that, I think that's okay. And then when you were telling me about the jacket, I was kind of like, well, yeah, I feel like if my, if I bought a jacket, I would give the other one to my sister. I'm pretty sure I have done that. And as long as she's not saying things like, Do you know what I mean? Like to be like, oh, well, I'll give it to you.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
I mean, I'm sure like I you might not ever be able to have this. So I'm giving you like that would make me that would burn me up. Right. I got to ask.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Exactly. Exactly. And I think that can serve as a big motivator here once you've paid off the debt to hurry up and stack it back up. Because the truth is, it does give us peace to have money in savings. But let's make sure it really is our money that's in savings. And it's not until the debt is gone.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
She was never mean about it. She was never backhanded.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
But backhanded is obnoxious and that's usually...
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Ken, I want to go back to this last call that we had. We're going back to it. I got to go back to it.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
If you were listening before, it was the lady calling in. She felt like her first cousin, who was more like a sister, was a little too braggadocious about her- How much money she makes. Money she makes. And the example was, she said, you know, she got a new Beamer and was saying, hey, I got this bonus at work and I was able to get this car, come see it. And another example was like a jacket.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
She had bought the jacket and she got two of them. And so she gave one to her cousin, who was like her sister, and was saying, hey, I got this jacket. I spent like 80 bucks on it. It doesn't fit. Would you like to have it? And so we were just kind of trying to come through with who is in the wrong? Is anybody in the wrong? Is she actually bragging too much?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And Ken, you and I were a little divided on it. And I think it's worth it.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
I think it's worth it to come back to. I know I have a couple of points I was thinking.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Number one is I do think that normalizing conversations about money is Is a good thing, whether we're talking to people we trust about struggles that we're having or whether we're winning and you want to be able to say, like, this was a really good year for me. Right. And the truth is, both of those, you have to be choosy about that. Who that person or those people are.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And it kind of sounds like maybe the sister, I'm going to call them sisters because she said they're more like sister. Maybe the one sister felt, I can say this to you. And the other sister was like, I don't feel comfortable with this. And that's okay. But I do think finding those people is important because, you know...
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
When Sam and I were struggling getting out of debt, I didn't really know who I could say. It's hard to know who to say, man, we've got $460,000 of debt. Then on the flip side, it's hard to know how to say, dude, I just paid off $460,000 of debt. Let's go celebrate. So finding those people is important. It's hard to find them.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And then also knowing, and this is kind of another one, standards of what you think of When it comes to money is going to be different for everybody. Somebody might think, oh, my gosh, you spent $30 on a bottle of wine. You're crazy. Somebody else might go, I can't believe you only spent $30 on that bottle of wine. Right. So there's also that discrepancy that can be there.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
when you're in conversations, especially with family. Clearly the one sister thought $80 on a jacket. She might not have thought anything of that, but the other sister thought, oh my gosh, she spent $80. You know what I'm saying? So sometimes we think that we're on the same wavelength and we're not. And it's not anything that's intended negatively.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
It's just two people in different financial worlds.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
You're right. You are 100% right about that.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Sam and I have two friends. We have two friends. They're not family members. Cause I think you're right. Family is, you know, we've got two family friends, not family friends, friends that I would say are do it like in the same like wavelength. And so you can say, Hey, I had a great year or whatever it is. And they can take it.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
A little fist bump at the table to me.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
if he told me that I would be like right on, like I'm a, I'm a call out Ben clergy right now. I've been clergy called up and said, you need to understand that. I just made a million bucks this year.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
But I'm saying I think that that should be normalized because how can he be out here crushing it and feel bad? For very close friends, that's normalized.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
You have to know who is that person.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
You should avoid it. But I ask us as people to always.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
That is so true. But I have a couple of really great friends and they're so good at celebrating people. I have learned to be a better celebrator of people.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And so, uh, you know, but if he's not, and this is a, we're making this up. If he leaned over, if he said, man, I had a banner year. And then if he leaned over, he was like, And he said, I did like, da, da, da, amount of money. You'd be like, holy, you know, right, right? And you'd be like, dude, yes. Like, right? So even, Sam wouldn't do that. We're making all of this up.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
But if he did, I think that you'd be like, man, that's amazing. I would, but I'd also go. Later when you went home, would you be like, Stacy, can you believe that he said?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
I think because I coach people with their money. I think the closer we are. I'm used to people saying amounts to me. Yeah. Therefore, if I hear it, it doesn't, like, it's like, I'm like John Cena. Like, you can't see it.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
That's why we're using Sam, because he doesn't say anything to anybody.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Yes. You don't say I made, you know, whatever in two cents.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
You're right. You are right. Yes. I think you can say, I think you can celebrate in a veiled way that still gets the point across. That still makes you feel like I just shared with my buddy the best thing that happened to me this year.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
That's expensive. I'm just kidding. I'm just proving your point.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
When did you realize that? I was wondering about that because you said, oh, I've missed out on this historic time or whatever. I'm like, how did you miss out? You've got $300,000 sitting in a 401k. So when did you realize that the return on it is poor?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
All right. Today's question comes from Hayden in Delaware. My fiance has $200,000 in student loans, and that is her only debt. I am debt-free and have a good amount set aside in savings. When we are married, do we take the savings and pay off a large chunk of the loans? We also want to buy a house in the next 12 months, so I don't want to spend it all on the loans.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
I've got to bust their balloon, Ken. Unfortunately, I have to rain on their parade. I feel bad about it, but... If I were in your shoes, and I have been in your shoes, you want to start off any new marriage, new relationship the best possible way.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And to clear out this debt in its entirety, it is a wonderful way to start a brand new foundation so that you can buy this house later on when you save up. And it truly is a blessing and not a burden, not to be cliche. But when you've got this debt here, it's like, why wouldn't you finish it off? I don't know. He didn't say how much money they're working with.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
So would it be $100,000 left on the student loans? Would it be $10,000? I don't know what your plan was, but... To pay them off in full, especially, Ken, this is actually a great segue, with what's going on now with student loans. You know, there are so many Americans who were in default because student loans are a problem, you know, and you never know what may be coming around the bend.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
So to be able to have this cleaned up out of the way, then you've got your full disposal of your income there, you know, your full income at your disposal to use it to now save it for a down payment. There's no better way to do it than that.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Listen, I love that. I love that you're thinking ahead. You're thinking about... You guys income going up, you're thinking about this baby that's to come. Technically in this moment right here, you're kind of on a pause until this baby gets here, right? You've got, I think I heard you say you have 15,000 saved and you've got a car that's 15,000.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Between two? Okay. And so the good news is once this baby is born, when everything goes well and the baby's healthy and they both come home and everything is good, you can just reach over and pay this car off, right? And it'll be gone. And then you'll have your income to then knock out this student loan, right? That's what I would do.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
So I'd push pause on paying anything off right now until the baby's there. Just stack up that money, add it to the $15,000 that you have saved. And... Yeah, when you're done, you knock out the car, then you reach over and knock out the student loans. Is there anything that I'm missing?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
OK, I might, you know, don't get me wrong. I've done it. Buying a fixer upper. You do feel compelled to do the fixes very quickly. In this case, you know, you've kind of got some of that out of your system. You've fixed a couple of the things, made it a little nicer. I'd pause on that until this forty two thousand dollars of student loans is cleaned up.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And then I'd pause again and stack up three to six months of expenses. And then I'd say now we can hit pause or push play on, you know, a couple of the renovations, especially since you're handy. You can do it for a lot less expense. And now we're investing 15 percent. So that's there. Right. You all you want to be doing that.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
I understand, but it's got to be invested in something. It doesn't just sit there.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
So doing this in order of priority is going to cause you to think differently. even more critically about what you do on the house, right? Because once you start putting 15% in investments, it's like, okay, what does that leave us? And you mentioned wanting to put aside for your baby, which is baby step five, you do four, five, and six simultaneously. So you're doing all that.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Now it's causing you to say, okay, what can we do to the house? What's the most important right now? And you're able to kind of prioritize that in a different way, as opposed to doing it first now, everything. Does that make sense? Everything makes the list now, but later on it'll feel a little bit more.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Got you, got you, got you. Okay, okay, okay, okay. All right, so let's run this back. So we've got the $300,000 sitting there. The return is terrible. You've got $120,000 sitting in savings. That's liquid. Right. And then you've got these two houses. So I have something that I want to say about the 401k, but what's your question today?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
I hope not. Can I like to think you're better than that?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Okay. And then your current home, it has a mortgage as well?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Okay. Ooh, Alan, no wonder you're taking a lot of big breaths. I am too. It's a lot going on here. Um, the good news is, you know, uh, this is simple. It is simple. Um, I think I said the good news a little too fast. There is good news, but, um, yeah, the simple part is you pay off house number one that you can profit 250 and we clear out the student loans.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
We clear out the car and yeah, we throw the rest of that onto your current house. So that's the cut and dry math on this. That's going to get you to a place of peace a lot faster, easily. The question that I have is kind of what caused this to begin with? Because when you told me that just recently you bought another car and went into more debt, I kind of was like, really? That feels reckless.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Yeah, there's no reason to be risk averse. What we talk about here, which is four types of mutual funds, growth, growth and income, aggressive growth and international. That's about your most middle. I mean, that is about the most conservative thing. that I could tell you to put your money in. You're equally spread. Your risk is spread out. And that's the way I invest my money.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
What what what are the student loan payments now that we're out of the Biden era?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
I'm sure it's a decent amount. I'm sure it's maybe in the $800 range. So that's a lot of money that you're going to get back in your month-to-month. And eventually be able to have this second house paid off because now with that $66,000, we're making even more headway to it.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Now, I know $645,000 is a lot of money, and I'm not suggesting that you're going to snap your fingers and this is going to be gone. But it is going to get you a lot closer to where you want to be, and I think it's going to remove some of that weight off. a lot of the weight off your shoulders because I can feel it.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
That's the way Ken invests his money. It's the way Dave Ramsey invests his money. So we're not telling you to do anything that we wouldn't do. I would do that. I would get with a smart investor pro. We'll put the information there in the show notes. And I would make that move today. You have missed out, my friend, on a lot of growth. And I hate that for you.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And you just make more a month when you don't have it.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
You could be more cash flow positive by paying off this debt.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
You'd have more money in your pocket every single month just with the car and student loan alone.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And then you bring that back and now you've got the you're not paying that.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And you might look into, yeah, like Ken said, you might look into a refire or a recast because if you're paying off hundreds of thousands on this thing and because it is already well above 25% of your take home, this is going to put it in a place where you can keep it in a comfortable place, but still pay the extra payments on it as we would normally teach you to do.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And it's worth talking about that, um, I can't stress this enough when it comes to houses, when people don't have them in their rightful place. Because you're probably a guy, you want to be investing. You want to be putting 15% aside. And it's really tough when you don't have your, I mean, what are you investing right now? Anything?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
But I mean, on a monthly basis, what percentage of your income are you putting there?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
But today is a new day to get started and get into it. We'll be right back. I recommend contacting my friends at Laurel Road today. Through their online application, you can get an initial rate quote in less than five minutes. And if you have a more complex situation, you can schedule 30 minutes to talk to an actual human being. Thank goodness. Laurel Road makes it simple.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
So I'm glad you said that. So for this purpose, for the moment, I would back that down. I would completely back that down to zero until you get this paid off. I mean, I guess essentially once you sell this house, it's going to be a moot point. But eventually you're going to be investing 15%. Once you've got your three to six months of expenses set up, you'll do 15%.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And now it's going to feel a lot easier to do that with all these payments freed up. So that's kind of what I'm getting at, thinking more towards your future.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
There are no fees involved and you could save thousands over the life of your loan. Remember... You should only refinance if it makes sense in your situation.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from your student loan debt. If you want it gone, you can't mess around.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
uh supposed to be 75 and they get 25 listen i mean i would get out of something like that because you don't need them to pay your bill like you could have done all that yourself you could have uh made a deal you could have consult you know do you know what i'm saying i do i've learned i've learned i've been listening to the show this past year so when you call them up when you call them up and say hey i don't want to do this deal anymore i want to get out what do they say
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
How much of it is in question? So let's say in total, did you say you paid $15,000 in total?
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Then, yeah, then I 100% would get out. You might feel a loss on this, but over time, it's going to be a greater loss if you don't get out now. So if you've paid $13,000 on this, which you said is about half, and you said... That's about right. Uh-huh, and out of that, what... Basically what I'm asking, I want to make this clear.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
So of the $13,000 you've paid, you're saying that some of it obviously has gone to them in fees, but even out of that, none of it's actually gone towards the debt. Is that what you're saying? You're still paying into a pool? Yeah.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
You're not they're not going to see the creditors aren't going to sue you. Essentially, what they did is they your loans went into default. You didn't pay them and they've taken the money and pooled it. And then they've offered those folks a deal and said, hey, now that this is very far into into for default and very far delinquent, let's make a deal, which is basically what you would have done.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And now they have full control over your money to say. Hey, you know, if you want to get out of this and that's why they're giving you the runaround. And that's what you've learned is that you could have done this yourself. Only you might have been able to do it without like totally wrecking your credit. That's the thing with these places is.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
Exactly. And they just took and pulled that money and then they offered a deal. And so now that's why you're feeling like, hey, if I get out of this now, can they sue me? They could. They probably won't because you have control of this now. Once you get out of this debt relief thing, you'll have control of this. You'll be able to pay them off.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
You'll be able to call those same creditors and say, hey, here's what I did. That's not what I wanted to do. Let's just make a deal and pay this off and you'll be able to do that. So they're going to the debt relief company is going to try to make it scary for you to get out of this deal. Go back and look at your contract and see what it's really going to take and just get out of it.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
And you're going to lose some skin in the game. Yeah, you're going to lose a little something in this.
The Ramsey Show
Your Bank Balance Is a Reflection of Your Habits
The creditor still received it. The balance has still gone down. So that's been paid. Your balance is not going to suddenly shoot up because they're two separate companies. You've got the debt consolidation entity that's holding a small pool of your money. Then you've got the actual creditor who is accepting the money. And once that's been accepted, the balance is the balance, if that makes sense.
The Ramsey Show
Big Life Changes Demand Bold Money Decisions
Hey, what's up guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now,
The Ramsey Show
Big Life Changes Demand Bold Money Decisions
i recommend contacting my friends at laurel road today through their online application you can get an initial rate quote in less than five minutes and if you have a more complex situation you can schedule 30 minutes to talk to an actual human being thank goodness laurel road makes it simple there are no fees involved and you could save thousands over the life of your loan remember
The Ramsey Show
Big Life Changes Demand Bold Money Decisions
You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt.
The Ramsey Show
Big Life Changes Demand Bold Money Decisions
If you want them gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Well, that's the thing I would probably caution against with David, just to be really careful, because obviously they love this this little boy. And so there's probably a part in them that wants to try to control the situation because in their minds, like we have the means, like we understand money, we understand how to take care of this kid.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
And so I think that they have to really guard their hearts in this situation, because like you said,
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
All right. Today's question comes from Brody in Maryland. He says, is it unfair for me to feel angry that my wife wants a bigger house? We bought a 1400 square foot house last April. I sold all four of my investment properties that I worked very hard for to completely pay off our debt, including the new house.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Our house is a three bedroom, two bath ranch with a backyard on a quiet street and it's in a good school district. So much sacrifice and saving went into making this happen. Now she wants a bigger house, even though she said she wanted this particular house before we put the offer in. I don't see how I can make this happen without going into debt again, and I will not go back into debt.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Oh, this is juicy. Listen, here's the thing. I do think that some people's personalities, because you don't talk about any type of pay raise or situation where you guys' lifestyle has changed drastically. But I do think there's some people that the goalpost is constantly moving, right? It's like, if I just get this, I'll be happy. And then they get that thing and they're not happy.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Or if I just get this, I'll be content. And then it happens and they're not content because things don't make you happy and things don't make you content. I think that they're fun, but they don't fill that void.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Yeah, and you can't buy contentment. And if you're on social media, which she might be every single day scrolling through and looking at what the influencers are doing and looking at what their friends' houses or if she's spending all night watching HGTV, it is very difficult for some people to kind of go, well, that's them and that's okay. My life is fine.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
And truly, I think that that's what this is. I think she's got a contentment issue.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Oh, really? I'd love to see that. I know there is.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Well, yeah, you can tell by the language, I sold all of my investment properties.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Yeah, he's the only one. He feels like he's the only one sacrificing. You can tell by the language whether.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Yeah, yeah, you can hear it.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
It's a weird balance of power.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
When they first came out, they were all right.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
So the debt was rung up before you guys got married. You just didn't know about it.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Is it only, and you might not know this, is it only in her name or did her parents sign for it too?
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
He's got a... get in counseling and deal with that because he's got a lot going on. He's got the loss, but then it's tough to lose someone that you're angry at or frustrated at for something that's gone on. Right.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Wait, sorry, it's her husband and her five kids?
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Can I ask why? What's the situation that everybody is floating them?
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
The more you tell me, the more I'm laughing internally. Like, the more you tell me about this, the more I'm realizing how ridiculous this expectation is. Yeah, that's... There's no obligation. Anything that you've done before, you kind of did set up maybe an expectation, but you did that out of the kindness of your heart, as it sounds like the other siblings did.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
But just because someone is kind and decide that they want to give one time doesn't mean that they're obligated to give every time and at the whatever limit that other person decides. Right. Yeah.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
if i were you i would have no when i tell you i would lose zero sleep over saying i'm not going to fund this it's too expensive period and you don't have to give a bunch of reasons just hey it was fun for us to be able to do that before with this trip we're not going to be able to help out and by the way probably going forward you know we've decided that the faucet has turned off at this point especially with the way you folk have reacted yeah
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Go kick rocks. Exactly. And here's the thing. I thought you were going to lay out some hardship or something that was kind of outside the box, but truly it's choices.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
The good news is you and your spouse are on the same page about this.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
I have been there. And my story didn't go as well, Dave.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
You know, I said maybe we give names.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Well, here's the thing. We're still drawing names to this day. Oh, even though. There was some kicking and screaming to begin with, but.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Well, you know how I feel. Adults don't need to buy other adults gifts.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
I feel like I feel like a different scenario would be you guys were 55 years old. It was your second marriage and the kids are grown. That feels different. That's a completely different situation with saying, hey, but you're contributing.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Trust me. I don't know. So what have you said to her so far about it? What have you told her so far?
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
And I'm saying what have you told her about this? Have you told her anything?
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Well, it's you're her kid. That's strand one. And that's another thing, too. Yes. And then you've not been in the type of relationship that she's been in. At least that's the way she's going to view it, which is true. So you're fighting a current 100%. Let me tell you what.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Right. Or, I mean, even if you flip the script and put yourself in that situation, although I would love to think that she would tell you to do the opposite, but she might tell you to do the same thing that she's doing.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
And you're going to have to accept the fact that she's going to do, you could lay out the best argument in the world. Like perfectly, just eloquent, everything makes sense, and she could still go and make this choice and it's going to be bad for her.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
And you're going to have to just learn how to live with that and accept the fact that she's a grown woman and she's making a bad mistake and there's nothing, in many ways, there's nothing you can do about it. And that's, I think that that's the hardest part of being in a relationship with anyone that you really care about is they get to choose.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Well, the guy probably thinks, if this is a, I'm going to say in air quotes, a good guy, this guy probably thinks he's offering your mom the world. So maybe somebody needs to get in his ear and make him see, hey, we like you. We think that you're probably trying to take care of our mom, but can you do this the right way?
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Because this way, the way that you're doing it now makes us nervous because if for some reason it doesn't work out, she's on her butt, right? So maybe that's the way to go at this is if there's somebody that has the right relationship to talk to him. If he is really the good guy that you guys say he is, that should give him a light bulb moment to go, oh, I get it.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
I think my mom just needs a reality check, too.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Well, I was going to say, there's no balance of power in this relationship. She sells everything she has. There's no way in the world she could live in a house probably that he lives in on her side. You know what I'm saying? She has no ability to keep up life.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
That's very, I don't want to say the word old, but.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Yeah. But you can't touch that one.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
And they're always major occurrences, 9-11. Something, yeah.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
And where does the effort play into it, too?
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
So is this what we can expect from your investing experience?
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
You bought the house together for your mom.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Yes, sir. So whose name is on the mortgage? Yours?
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
But she's living in the house.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
So going back to the other debt, the other loan, how much money are we talking about on the credit cards?
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Is your brother also on the mortgage?
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Do you anticipate your brother holding up that process? Or do you think that he'll go along with it?
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Well, I mean, forget about the Ramsey part. Just the idea of you cleaning this up because it's very messy.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
The way you need to think of this is this is saving your marriage, by the way.
The Ramsey Show
The Most Loving Thing You Can Do Is Be Honest About Money
Because your wife is not going to sit around and let your mom be the reason that she's not in her new house. You guys are in an apartment. You've been married for a month. If this messes around and causes you guys the future that she's envisioned, you're going to have a much bigger problem on your hands.
The Ramsey Show
How The Baby Steps Protect You From Financial Uncertainty
Hey guys, I'm Jade Warshaw and I wanna talk to you for a quick second about student loan refinancing. If your payment and your interest rate are burying you and you feel like you can't dig out, refinancing your student loan debt might make sense. That's because a lower rate could free up more money in your budget and a shorter term could help you pay down your debt faster.
The Ramsey Show
How The Baby Steps Protect You From Financial Uncertainty
So reach out to the student loan refinancing experts today at laurelroad.com slash ramsey. There, you'll find helpful resources like a student loan rate table, a refinancing calculator, and other tools. Plus, you can get an initial rate in just a few minutes. Laurel Road offers low competitive rates starting under 5%. And you can get your interest rate even lower if you sign up for auto pay.
The Ramsey Show
How The Baby Steps Protect You From Financial Uncertainty
But if your situation is more complex, sign up for a free 30-minute consultation with one of their student loan refinancing experts to get your tough questions answered. Listen, not everybody should refinance their student loan. So make sure you run the numbers. But for some people, it is the right move.
The Ramsey Show
How The Baby Steps Protect You From Financial Uncertainty
Learn more at laurelroad.com slash Ramsey to find out more about their student loan refinancing. That's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Is the repo the only thing, or are there other collections?
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Yeah. Otherwise, you're just carrying around a mental load for no reason.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Otherwise it's just taking up space. Well, and you're, Oh yeah. You owe the bill. Hello.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
That was not her name. That's not real.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Well, you weren't laughing then.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Listen, I've had some choice words for 1-800-PAY-ME. I'm not proud of it, but I've had them.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Okay. Are you... Okay. Okay.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
How were you paying for the travel?
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Where I'm worried about you, Hannah, is you're still looking to debt as the solution for this. You haven't learned your lesson that debt is the issue. And Financial Peace University didn't get it through to you. And you're still, no, no, no.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
And so even if we said to you today, even if we said to you today, hey, sell this land and mobile home and take $46,000, pay everything off, and then take the little bit and get yourself a modest, put it as a down payment on your next thing, you'd get yourself in the same trouble again. And so there's something that's got to change in your mind in order to make this right.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
And you're telling yourself a lie, which is you're telling yourself, we always made payments. We always did it on time. You're still telling yourself that story.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Yeah, he says, my ex-wife and our 21-year-old daughter want me to cosign a $4,500 student loan. My ex has already cosigned $75,000 for our daughter's tuition. I offered to give her $2,000 and have her pay the rest to give her some skin in the game, but that was quickly dismissed. My daughter doesn't associate tuition with actual cash, and she's amassed all this debt without a degree.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
She drops classes on a whim, and having to use her own money might make her more responsible. I'm buying my dream car today with cash and I feel a bit like a schmuck. Good word. Am I right to make and take this stance with my daughter? OK, so I wish I had you on the phone because I want to know more. But part of me thinks I like the idea.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Yeah, I do think that students should have some skin in the game, whatever that means, whether it's they're spending their time getting scholarships, whether they're working part time, whatever that is. I do think that that's really healthy, healthy. Second part of that is, yeah, during the baby steps, there is a step devoted for saving money for college. We never say how much that is.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
We never say that parents have to pay all of tuition. That's not required. So on that note, Richard, you were not required to pay for all of your daughter's tuition. I like the fact that you're trying to come up with ways where she pays part and you pay part. But I think that you're feeling like a schmuck.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
I'm not saying you are a schmuck, but I think you're feeling like that because you're like, hey, I'm about to buy my dream car. I don't know what it costs, but dream cars, it's probably at least 30 or 40,000 is my guess, at least. And you're probably thinking you could have maybe done more in the past is what I'm thinking. And that would be true. But you're here today.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
I also think there's like four angles on this. I also think that your daughter and your ex, you can't control them and they're going to do what they're going to do. And that's also a really tough position. Yeah.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
I think he feels like a schmuck because it's a shoulda, coulda, woulda. Like, it sounds like he's... Well, he doesn't like telling his little daughter no. I don't know. It sounds like he was fine, too, because he was like, I'm not giving you this $4,500.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
No, he's not co-signing, but he also didn't offer to give her the cash, the $4,500 cash.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
She also might need some better counseling because it sounds like... Yeah, sounds like her mother's an idiot. Yeah, you guys didn't set her up. She doesn't know her options. College might not be for her. If she's already taken out $75,000, she's probably already been in college four years and she's still not doing anything.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Yeah. I don't know enough about it, but I'm looking at this. It sounds like just looking at the daughter, forgetting about the X for a minute, sounds like school is not really the daughter's deal. She's been in, it sounds like, at least four years.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
You just said beer pong like you know a decent bit about it.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
That's what I was going to ask. Do you see a reason that that's going to happen really soon?
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
I think you're jumping the gun, and I think you see an opportunity because there's a for sale sign in the house next door.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Across the street, yeah. And you're thinking, oh, here's our chance. It feels very premature to me. I'm not going to lie.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
We'll be right back. I recommend contacting my friends at Laurel Road today. Through their online application, you can get an initial rate quote in less than five minutes. And if you have a more complex situation, you can schedule 30 minutes to talk to an actual human being. Thank goodness. Laurel Road makes it simple.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
There are no fees involved and you could save thousands over the life of your loan. You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Listen, nobody's coming to save you from your student loan debt. If you want it gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash ramsey.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
For different reasons, though. I mean, first off, yeah, Bitcoin is not a great investment. We would never suggest it.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
And the second reason is if you have the money, use your money. Why take a loan and risk a relationship being tainted by this, right, from the in-laws especially, when you've got the money today?
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
And you need to be updating it every year. Like that's the thing, you know, it's hard to find insurance that is like complete replacement at the time. Like you've got to update it every single year.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
For the, yes, for the down payment.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Do you have anything in just like mutual funds or just like?
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
What bothers you about them? What what what spooks you about mutual funds? I'm just curious.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Right. And so as the equity in your home goes up, you've got to make sure that you're on top of that and changing that and updating your coverage.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Yeah. Well, yeah, she didn't seem like she had any aversion to it. It sounded like the spouse was kind of the one.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Yeah. And they've been lucky so far, but that is the word.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
All right. Today's question comes from Meredith in New Mexico. She says, does the suggested four different mutual funds strategy apply when a couple is older? My parents are 75 and 72 and have one point five million dollars in investments, plus a paid off house and no debt.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Their monthly income between Social Security and pensions is $7,500, and they're also withdrawing monthly RMDs from their investments. They have no debt and a paid-off home. So just to catch people up to speed on the for-investment type statement, That's the teaching around here. You invest across for growth, growth and income, aggressive growth and international.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
And so that's what we've been saying for years here. In this case, I wanna know more about the 7,500. Is that enough for them to live off of? What's their lifestyle like? Are they traveling a lot? Basically, are they looking to invest more? It sounds like they're really only living off Like they're not touching the actual nest egg.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
So, Dave, I don't know that I would tell them that they have to continue to invest. I suppose if they wanted to, they could still use that strategy. But the biggest thing that I'm thinking about is, are they putting this money? Let's see. They can't put it into a Roth because it's not profitable.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Is that what you drew from that?
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
I'm wondering also about how much of the $1.5 million is just in traditional IRAs versus... Says investments.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
I feel like that'd be the thing I'd be wondering most about.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Is it something that impedes you from doing some sort of like a work from home or something where you're not leaving your home and not having to drive?
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
What was your previous employment? What did you do before?
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Okay. Well, the answer to the equation is income, right? You're a homeowner, you're a single person, so there's no other money coming in. So the answer to that is what kind of employment can you do with your current limitations, right? Right. And it's out there. I think that you're going to have to spend more time kind of deciding what is it that I want to do? What is my background?
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Is it management? Is that really what the area is? And kind of finding that one area. And that's where we're looking for jobs, because, yeah, if you're not looking for the right thing in your specialty, maybe it won't pay enough. But we know that there's remote work out there. And so my guess is that you maybe did a couple and it didn't pan out and you got discouraged. Am I wrong?
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Like you could try like something like Arise. I don't want to say I'm not giving them a endorsement, but there's lots of them out there where you can do different customer service jobs from home.
The Ramsey Show
Don’t Throw Away Your Long-Term Security for Quick Fixes
Yeah, by the end. Yeah, literally. When I was getting out of debt, the one I used was called Arise. Arise.com. You go on there. All you need is a headset and a computer and you're working almost instantly. And so it's out there. I think that's just what you've got to do to get started. And let me also encourage you that some money is better than no money.
The Ramsey Show
Do You Have Too Much Month Left at the End of Your Money?
Well, what do you think about it?
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
It fluctuates a lot. I'd say maybe like 50, 60.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
Hey, thanks for taking my call. I appreciate it.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
So my question is pretty short and to the point. I currently have just $4,000 in credit card debt and about $11,000 in a car loan. I really have no other debt. I'm 26 years old. I make about $100,000 a year. I do live in San Diego. It doesn't go very far. Yeah. Yeah, it doesn't go very far, yeah. But my question is, you know, I'm an ex-employee of a brother-large tech-slash-car company.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
I'm pretty sure we know what company that is. But it's a pretty sizable amount of stock. It is fully vested. However, it is technically a short-term. It hasn't been over a year old. I'm not too... I'm informed of all the tax implications, but should I sell? I have about, currently right now, I think the market rate for the stock is like $340 a share. I have about $14,000 right now.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
Should I sell some of that and pay off my credit card? Should I sell all of it and pay off my car and my credit card? I've been listening to you guys for a few weeks now, and I'm really trying to be focused on that peace of mind. It always starts young. It's only $4,000 in credit card debt, but then it grows into $10,000. and a 20 and a 30.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
And lucky enough, I don't have any student loan debt, but I just want to knock out any debt at all. So what do you guys think is the best course of action here? Should I just use my income and save up and pay off my debt that way? Where should I be going?
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
So if I were to sell everything right now, if I was looking at a mutual account, it's like $50. $13-ish right now, and it's the current rate for the stock is like $340. I don't know how many shares I have. It's like $31 or $32.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
Fairwinds is federally insured by NCUA.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
Well, I used to be one of those guys. I didn't even think about it. And one of my buddies said, hey, the only reason to not have life insurance is if you hate your wife and kids. And I immediately went and got term life insurance. That's a gut punch. And you're telling me and for decades, Dave, I've sat across people who've lost a spouse. They've lost somebody important to them. Me too.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
They don't know what to do next.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
Term life insurance can replace income, pay off debts, cover funeral expenses, so your family can actually have the opportunity to just be sad.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
So I just had a question regarding debt and how I should go about it. Me and my wife are currently $310,000 in total debt. $180,000 of that is in our home, so we do have some equity in there. So my question was, should we entertain the idea of selling the home to pay off all of our debt? I understand there's probably going to be a few thousand left.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
We do have a little savings that we could use to tackle the rest of that. And then start from scratch or should I keep the home and then just slowly start knocking off about $130,000 that we have besides the mortgage.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
Yeah, so there's a HELOC, and that's about $49,000. There's some private loan and credit card for $28,000. I have student loans for $24,000. And then we have two car notes, each about $15,000 left. And then just some furniture, that's about $3,000.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
Yeah, so I drive a 23 Elantra. I probably have, if I could sell it right now, probably 18. So I'm positive on the upside on that, about 3K, I'd say. Okay. And my wife has an SUV. Okay. She had a good down payment on it, so I'm sure she's also on the upside on the equity.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
So that's one of the main reasons why I'm just rethinking everything. We do have a baby girl on the way, which is super exciting.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
Yeah, I'd say probably like $10,000, $15,000.
The Ramsey Show
You Won't Win With Money If You're Not Aligned With A Plan
I mean, obviously, the end goal looking down the next few years, the plan will be for her to stay home if it's possible. For now, I think in maybe a couple months after baby's here, we have a good support system here where we are with our parents being around and siblings and whatnot. So we've got plenty of help there.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
I saw a guy on the internet talking about the most important decisions, and I agreed with him on this. One of the most important decisions you'll make is who you marry.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
And it's so true. And so again, if you're looking for those ways to be proactive, sharing passwords, passcodes, I'm talking about banks, investments, savings, your will, your spouse should know where the will is. Even your electronics, they should be able to have the passcode to your phone, your computer.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
They should be able to log into your social media and slide in your DMs so they can see who else has been sliding in your DMs like this. is the transparency you want combining bank accounts. We have every dollar spousal accounts now so that you guys can all have the profile, all see what's going on.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
And finally, Dave, this one's controversial, but the little location app that's on your phone where you can turn on your location. I didn't know you could do that, but my best friend called me up. She said, Jade, share your location with me. And I said, what are you talking about? She said, there's a little button you can add me and I can see where you're at.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
And at first I was like, why would you want to do that? She goes, you know, you go for runs, you know, early in the morning. I just want to know, make sure you're all right. And I thought, that's great. And so she showed me how to do it. And I said, Sam, show me your location. He was happy to do it. And it's not like I'm on my phone looking, where's Sam going?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
But if you're a person who's not hiding anything and you want the best thing for your marriage, transparency, that's the key. That shows, hey, I have nothing to hide.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
which i am tasked with looking for pretty regularly so that's funny it's true that's old people problems right there i can't find my phone oh man but dave you know the people we say what's the passcode and and they're like i'll i'll type it in for you yeah and they want to type it in for you they don't want to give that that's a red flag right there i'm telling you yeah that's your if that's your husband or your wife it's a problem that's a problem
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
You know, that doesn't work, right? Right, right.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Who racked up the credit card bills? Your wife?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
sell you know at whatever price it'll be around then um i i wouldn't try to time the market with it i i mean you guys are in debt today and you're closing on the house really quickly and so i would liquidate this crypto and i would pay off this debt i would do that instantly okay but
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Arabella, do you know what you sound like?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Someone who's in denial and somebody who's like... I don't drink much.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Someone's at the craps table. I'm just going to let it ride. I'm going to let it ride.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
That's what you sound like. Because it's basically a form of gambling. Because you don't know what's going to happen. And just because you had a great...
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Arabella, I'm upset with this. I'm upset that you're telling us this.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Why are they against you? Why do you feel that your family, and by family, is it just fiancé is against you?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Does your family want you to move out, or are they convincing you to move in?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Well, it's good that she's in counseling. I'm sure if it's a great counselor, they can get to the core of what's going on.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
But she has not had contact with you?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Is the debt business debt? Is it from you building this business? Is that where it came from?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
How does it take $300,000 to train a dog?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Well, the good news is she's looking for help, and then it's up to you and her to decide together what the boundaries are going forward and what the marriage needs to look like going forward.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Just give me a quick synopsis. If I bring my dog to you and say I'm dropping my dog off, train him, what does it cost me? What do you cost for a service? I'm just curious.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Wow. What's all the overhead coming? Wow.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
five years at the end of five years all that money's gone if that guy wants you out you've got to amateurize all of that cost in five years on 40k profit you can't even come close did you know that did you realize that or you just didn't care i'm just curious uh realize which part the part that you're the part that you're leasing and that you don't own the building so when your lease is up there's no guarantee that you get to stay there with all the renovations you've made
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
You paid yourself out of the loan?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
How much is the lease every month?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
What's the value of all of this, if you had to guess?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Do either of her kids have, you said she's got mental decline. Do either of them have like power of attorney or is that on track to start at any point?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
The $5,735 you're getting every month, is that Social Security? What is that?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
i recommend contacting my friends at laurel road today through their online application you can get an initial rate quote in less than five minutes and if you have a more complex situation you can schedule 30 minutes to talk to an actual human being thank goodness laurel road makes it simple there are no fees involved and you could save thousands over the life of your loan remember
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
If you want them gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Hmm. I would not borrow this money. Essentially what you're doing is you're trying to borrow money to get out of debt and that's impossible. You have to pay in order to get out of debt. You have to use your money and pay off the bill.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
All right, today's question comes from Bobby in California. He says, should I purchase a home? I'm 48 years old and I have the cash to buy one outright. But my concern is I would be paying HOA fees, property taxes and insurance, which equal what I'm paying in rent now. I'm happy with my current apartment. Should I just keep my money in a high yield savings and have less worries that way?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Or should I bite the bullet and buy a home as an investment for my future? I love this question. So first off, I mean, no matter what, no matter what you do, if you buy a home, whether it's on payments or you pay it off or you buy outright in cash, you're always going to be on the hook if you have an HOA for the fees and the property taxes and the insurance. Like that's just part of the deal.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Yeah. As far as should you buy the house or should you just remain where you are? I mean, you're 48 years old. You've got the money. There's no time like the present. And for me, I kind of break down home ownership into two areas. Number one, it's like we say all the time, it's the biggest line item on most people's budget. Right. And so we want to create stability there when you're renting.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
It's fluctuating. It's going up and down. You have to deal with lease agreements, all of that stuff. But when you purchase a house, it's yours. You can lock in, especially when you're buying it outright in cash. Right. And then the second purpose is it does help us build wealth. And so those are really, for me, the two primary purposes. And I think that you should do that.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Otherwise, when you're renting in perpetuity, you really are at that point starting to throw money down the drain because there's no end there. You're not doing it as a means to buy time so that you can buy. So that's my answer.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
I think he more so has an issue. You know, you see that big nest egg in your account, and he likes the way it looks in his account as opposed to.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Woman, I'm 64. Who do you think you're calling?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
If you're old, there's no hope for Dave.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
exactly it's not fun you're not having fun honey no sell a stupid car yes do you want it sell it do you have any cash somebody will buy it if you price it right do you have any money to cover that it's upside down because it's upside down nine thousand dollars right it's a well you can get yeah exactly about that right do you have any cash stored away anywhere any non-retirement money
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
I mean, you guys were living on nothing. Tell us more about how you did this because on 89, at some point you went to 50. How did this happen?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Lots of sacrifices for sure. The number one question folks ask me is how do you stay motivated? And so I want to ask you the same questions. How do you stay motivated to almost two and a half years? What does that look like?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
So has it happened yet? That moment where the same folks who are saying, why are you doing this? Why are you doing this? Asking, how are you? How did you do this? How did you do it?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
We can do it. We don't owe anyone.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Yeah! Yeah! I felt that one. That was good.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
The facility? The nursing home picked her up?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
No, she drove behind them. So you're saying she set it up?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Is it some sort of a restraining order? What has to happen for you?
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
It's almost like the question is, is the issue that auntie went into the nursing home or is the issue the property? Because if the issue is the property, then he maybe needs to focus on that as opposed to getting her out of the nursing home, because that might be the right spot for her.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Yeah, it's your responsibility to check in.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Yeah, so this is perfect, Dave. This weekend we had the Money in Marriage event, and I was talking about creating transparency in your marriage. And I was saying there's a couple of things that you can do, just practical things that will make it, like you said, nearly impossible to hide money. And one of those things is sharing passwords, right? Everybody should have access to the bank account.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
Everybody can log in. Everybody can see what's going on. Turn on the spending notification. Those are practical things that you can do. And it alleviates any illusion of you're hiding something. I told him, I said, in our house, you would have to work very, very hard to hide something from me or vice versa. Because it's all out in the open. Nobody has anything to hide.
The Ramsey Show
Building Wealth Is Hard but Being Broke Is Harder
And get in there. And it's not to say that you're... It's simple. It's not even anything about spying on your spouse or creeping on your spouse.
The Ramsey Show
It’s Not Too Late to Get Back on Financial Track
Yeah, so my husband and I actually took your guys' high school course, and we are completely debt-free. We do have a mortgage, but other than that, no credit card debt. And my question is, can we afford a substantial vacation? At what point can we spend money on a vacation?
The Ramsey Show
It’s Not Too Late to Get Back on Financial Track
Yeah. We have a good amount saved for emergency ED accounts. And do you have 15% going into retirement? Yes.
The Ramsey Show
It’s Not Too Late to Get Back on Financial Track
Um, three to 5,000, 5,000 would be generous around 3000.
The Ramsey Show
It’s Not Too Late to Get Back on Financial Track
Um, right now it's 82 growth, 60 net.
The Ramsey Show
It’s Not Too Late to Get Back on Financial Track
So we have $27,000 in our savings emergency, so it's more than what our... You need to quit calling your savings, okay?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I'll tell you what I think. So first off, I want to know what your numbers are. I want to know more about you before I go into it. It's not going to change my answer. I just want to know what are you spending on groceries? How big is your family? Family of four?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Man, oh man. Let me tell you something. I would consider getting out of your car that $10,000 that you're upside down. I'd pay it and use whatever cash you have left or even less cash. to get a beater for you, $5,000 or $6,000, and then you cleared up $550 you have a month and you're out of that debt completely. Is $550 more than what you're paying on those credit cards combined?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I do the card deal. I get all that money towards the car. I get out of that upside down vehicle because it's just going to continue to go down in value. And that gap of being upside down is going to get wider and wider. So I'd make that deal and get out of that car. And then I'd be really thinking about how to get out of his car.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Look for private sale to see what it's worth private sale and see if there's anything you can do to close that gap. And it might be the side by side selling that side by side. If you can get something for it might help you close that that gap. But these vehicles are what's killing you. Oh, yeah, I know it. I know you do. You're like when you told me 18 for this forty five thousand dollar truck.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
So, yeah, you might end up having to just write it out and pay for it. But check on the side by side. Make sure you're checking Kelly Blue Book again on that truck for private sale just to see. Because at the end of the day, here's the way you want to filter it through your brain. Ken, if I have a if I have a loan for forty five thousand.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
but I can come out with a loan for 18,000, I'd rather owe 18 than 45, right? So when you're thinking about, do I take a loan to get right side up on this vehicle or to get out of this vehicle, It could be worth it to you. You know, it's not making it gone completely. But if you can do that and still have another five thousand. So would you rather owe twenty five than forty five? Right.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Now you got yourself a six thousand dollar beater and you're out of the vehicle. Right. So that's the way I want you to filter through this math. It's not always going to equal zero. Right. It's just going to be is this a better situation for me?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
That's what you were prescribed in there.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Okay. And what baby step are you on to?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Why? Can I ask why? It has to be specifically that?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Go for it. Can you cut in? This might be something that came with age, Bryce. I'm an old head. But let me tell you, when I first started in music, I knew I liked entertainment. I knew I loved being on stage. And I knew I had a voice. And so my options, I didn't know all the options out there. But I thought that I was limited to one or two things that would make me happy in that career.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Then something that happens and you probably have the vocabulary for this, but what I found is as you start walking down a road and you start turning those door handles, other opportunities present themselves and you try them out and you realize, oh gosh, I never would have known that this would scratch that same itch and really be a better fit for me down the road.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
And so I'm just saying you do want to open up your eyes a little bit to other opportunities.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Oh, yeah. Listen, listen. Okay. Not an issue. It doesn't change my answer in the way that, A. Well, yeah.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Never. We evolved. I thought I wanted to be a recording artist, and then I got an opportunity to work on cruise lines, and I tried it, loved it, fell in love with it.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
My official stance on this is when you're working the baby steps, you don't sacrifice your health long term for it. So getting out of debt is not an excuse to eat crap. It's not you eating ramen noodles every night because we got to live, Ken. We can't be out here with high blood pressure and the gout and all these things that hold up. Holding us back.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Yeah, I did. And I fell in love with it. But I also saw a lot of needs in the market there. And it sparked an idea to start a business. And it's the business my husband runs to this day. It's his passion in life. Never would have gotten to that. And that helped me find The Ramsey Show. And it's what I'm doing today. So we evolve as people. It's great to take that first spark and run with it.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
But you never know what it'll grow into.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Wait, are you in the will and it just wasn't distributed to you? Or were you not in the will to get it?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I'm saying there is a logical point where it becomes unhealthy.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Okay. Have you gone to him or, well, not you, but has your husband, because I feel like this is his battle, by the way, has he gone to the grandfather and said, did I, yeah, to his dad and said, did I, did I miss something? I like, and here's the thing. And can hold me back. But you can't go in entitled. You just have to ask. You'd be curious. Hey, I was on a trip and this was what I found out.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I don't know, but it sounded like it was for everybody. And if it is, I wonder if we, you know, we're overlooked in some way. Can you give me more information?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
First of all, I don't... Wait a second. I detect something, and I'm not trying to call you out, but I detect the air of... I'm not going to say jealousy, but I detect an air of... We should have what they have. Or they shouldn't have. Does that make sense? I'm not trying to put you on the spot. Yeah. So let's talk about this then. Let's pretend that you said, hey, we're not in the will.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
What gives? What if your husband talks to the dad and it's like, sorry, yeah, you weren't a part of this. What then would your attitude be towards it? I think I'd be okay with that. Okay.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I mean, you'd at least have questions, right?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
It is, and I think that when you're in baby step two.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Yes, that's what I'm getting at. When you're in a tough spot, you're looking around and you're just kind of looking for anything you can hold to. I get it. Yeah, I wasn't saying that in a way to be definitely not ugly towards you, but it's worth examining and going, okay, to your point, Ken, what's my true feelings here? And it's okay to have feelings.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
We then just have to make sure our response is the right way.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Ken, I've told you the story before when Sam and I got married, his grandfather, there were stipulations on the will and he's allowed to make those stipulations because it was his money. Right. And so the stipulation was you got to marry someone else Jewish. And guess what? Jade Warshaw is not.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
You're totally fine. 1,300 is good. And before you get into this, Ken, let me just back you up, Lauren. If you look at like the FDA standards for a family of four, it's usually somewhere between $800 and $1,200. Now they break it down on kind of a, it's almost like a good, better, best, like for a less expensive budget, a median expensive budget.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Yeah. Did you not know? I'm just, what gave it away? No, I'm just kidding. But that was part of it.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
No, he did not get the money. And so.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Well, the grandfather passed away. So what ended up happening later on.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Later on. Yeah, it's in the will. But later on, his wife at the time said, I really like Jade. And I'm going to, we're going to make this happen.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
They got amended. And not only for me, but the other cousins who decided not to go that route.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I don't know if, listen, I don't know if it was right. Dave might be like, no, keep it the way, you know, the wishes are the wishes. Oh, wait a second.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
It's now hers. She was very solid on the fact that if he had met you, he would have changed his mind. That's what she said to me.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
That's facts. Yeah. Yeah. So I can understand, to your point, I can understand the feeling of having emotions around the thing. Tough stuff. Tough stuff. It's not easy.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Unless she knows of a reason he could have been withheld, which we didn't ask her. It's very possible he just got overlooked. I don't buy that. Whoever the executor is just, you don't buy it.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
And for people who can spend a little bit more, that's the way they break it down. And for the folks who can spend a little bit more, it's usually between $800 and $1,200. So you're right there.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Yes, but not necessarily with the idea of only leaving you with that old truck. I think it's a combination of both of it. So you say if you if you finish paying out the lease in order to purchase it, is it an additional forty two thousand or is it is that what it will be have been altogether?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
OK, so you'll pay an additional twenty six thousand.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
And then to get out of it, you will pay $9,000, but you'll be only left with a truck that's got 442,000 miles. So what would it look like if you got out of the lease and then you got a second beater and paid maybe $6,000 for it? And so now you're back to two vehicles, but you're still $10,000 less debt. And I'm just talking about on the extra portion of the lease, not the... Okay.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Okay. So he has a work vehicle plus the old truck.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Well, you've already sunk half the cost in. You've already sunk more than half the cost in. So I see what you're getting at. Let me ask another question to get at it another way. What's your income combined?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
you have options here. Um, you're neither of you are wrong. It's just what you guys decide to do together because you are on the track to pay this off in two years or less. And because it's no more than 50% of your, you know, annual take home pay can, I'm inclined to say you could keep it. You've already sunk a lot in. And honestly, when you play out the difference, it's a $10,000 difference.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
It sounds like if I'm doing the numbers, uh, as you know, quickly as I can in my head. Um, It's up to you guys. And at the end of it, you're left with a nicer vehicle, a newer vehicle, and then you've got the old vehicle, then you've got the work car.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Whereas if you were to get out of this, like I said, in order to really get into something, you'd be paying $9,000 plus maybe another $8,000 for a vehicle. So the difference is pretty negligible. It's pretty negligible. I'd probably keep it. Ken?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I'm saying that because the... You can go either way.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Because they've already... I'm saying because in order to keep the car, it's as if they were going to go out and buy a $26,000 car today. Like if she called me and said, hey, I owe $26,000 on this vehicle. I'm filtering it like that. So if you called me today and said, you know, I owe $26,000 on this. I'm $9,000 upside down. Mm-hmm. What would you do?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I'd say keep it because it's essentially mathematically it's that it's the same thing. You'd have to pay the nine thousand dollars difference and you'd have to get some cash aside to get you a beater. And once you add all that up, it's going to be a ten thousand dollar difference. And so you could say anything to get out of debt faster. I'll take, you know.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
$10,000 is better than, you know, 0 and 123 is better than 0 and 133. You might say that, but because your timeline is regular and you've got a good income and there feels like there's momentum here, I'd keep it.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
And knowing that she said, listen, the other car, they know $5,000 of work is coming up. It kind of just felt like it was eating away at that margin even faster, if that's accurate.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I'd be looking for the convenience items. For instance, most people are looking to, most people, if they have the money, they're looking to save time, right? That's the next thing. It's like, I can spend the money in order to save more time, right? Lauren probably has spent more money to save time. So I'd be looking for things that are prepackaged, like snacks.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Are you paying for it outright or are you going into debt for it?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
You'd pay for it outright. How long are you going to be doing this job? Is this what you do for four to six weeks out of the year or four to six weeks every six, like what's the frequency that this is happening?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
But you said four to six weeks. Is that for the whole year or that you're doing that? No, it could be four to six weeks, go to another job site, four to six weeks.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Yeah, I'm not into those things because they go down in value, but I would be looking for a creative solution. Let me put it to you like that.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Like when you have five kids, you want to just be able to throw the things in the kid's lunch, right? So you might buy the snack things that are prepackaged, the prepackaged things and nuts, the prepackaged, you know. Okay. That sort of deal as opposed to, okay, I'm going to buy the big Sam's Club, you know, package of, you know, cheesy smiles or whatever.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Turn that mic on. All right. Today's question comes from Carlos in Texas. My parents both work and I'm fortunate that they have provided well for my sister and me. They have always planned to pay my way through college like they did for my sister. The problem is that I want to pursue a career in medicine. I know that it's extremely expensive.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I know that it's an extremely expensive choice and I don't want my parents to be paying off my education forever. I will start applying to colleges soon and have applied for scholarships, but was wondering what else I could do as a 16 year old to start earning on my own to help them pay for my education.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
And so I'd look for convenience items. I'd then look for in the freezer section. So I'd be looking, okay, is she buying, you know, frozen waffles to get breakfast on the table in the morning? So that's where.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I love what you said, Ken. I think that's exactly right. Yeah. I think applying for scholarships becomes your secondary full-time job. Yeah. If working is full-time, there are so many scholarships out there. And now you're still young. You still have time to add things to your scholastic resume. Yeah. to be eligible for more, if that makes sense. So I think those two things combined.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I also think sitting down and having a conversation with your parents about what the parameters are, what the limitations are. If I'm going to medical school, what does that mean? What can they afford to pay for? And is that the type of schools that you're looking at? So really having clear expectations is going to be a big part of this as well.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
There's some that are better than others.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
But for you, you're probably splurging in the area. I mean, I'm just guessing you're probably buying more non-GMO, more organic.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Yeah, I agree. So right now you said your budget is you're spending two thousand per month, but you've got a margin of one thousand. So three thousand is what you is what you're living on right now. Right.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Yeah. Okay. So the idea here is, the idea is when you retire, whatever that nest egg is, there's a couple of things here. You want to be able to live off the interest and not really have to pull from the principal, right? That would be ideal is what we're looking at.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
And then the other part of that is the way that you make that an even less stressful situation is you just lower your general expenses, which you've done a really good job of doing. And paying off the house would be like kind of the final nail in that that tree there. So tell me again, because I was putting numbers in your house is worth 150. Did I hear that?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Okay, so you'll be done with that in no time. But to Ken's point, you're going to have to increase your income because at this point, if you're just investing 15%, like we say, off that gross number, if you continue to do that, let's say you stop working at $68,000, you're going to have about $260,000 in retirement.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
And if we're talking about just living off the interest, 10% of that, that's not a living for you, right? So we need to essentially double that. So if you do what Ken said, and then you go from putting $712 a month into retirement and you go to putting $1,400 a month into retirement, well, suddenly that doubles what you have there and you're closer to $450,000. Do you see what I'm saying?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
So this really is an equation that is tied directly to your income. It is at this point.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Yeah, especially for you. You could...
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Yeah. You know, what you're probably going to find is it's their tradeoffs that you're making. Even when Sam and I were in $460,000 of debt back then, I would spend $60 a week on groceries. Remember, this is back in the day.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
But what you're talking about, everybody has a set of values that they care about, whether it's, you know, I don't want the red 40 and the yellow fives, or, you know, I'm trying to avoid the dyes, or I want to buy local, or I care about organics. You might not be able to afford to do all of it. But if you say for meat specifically, I really care about that.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
So just to clarify, you both borrowed $100,000 each and over the course of time, both of your $100,000 have doubled and now you owe $400,000. Is that correct?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Okay. What about your wife? Excellent.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Well, let's see about that. So what was her career before she stayed at home with the kids?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Okay. And what did she earn doing that?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Yes. Yes. Okay. So there is a part of this equation. We'll get to it in a minute. There is a part of the very real part of this equation where she would be working in order to help out with this. And there might be a daycare situation there because you guys have a lot of debt. I was hoping that you were going to say you made 300 and your wife made 200. You making 300 is really, really good.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
But just the 400,000 in student loans, I'm guessing there's debt other places as well. Am I right?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
And because of that, I'm willing to skimp in other areas. It's a trade-off.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Okay. Anything else? Credit cards, HELOCs? Tell me any other debt you have because it plays into this.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Okay. So 428 is what we're looking at. You're making 300. So this is kind of like the person who makes $60,000 a year but owes 160, right? The ratio is the same. So there is going to be a level of sacrifice if you want to get out of this quickly. You could talk to my friends at Laurel Road. They offer student loan refinancing for high income earners.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
And so you have the opportunity that maybe you could get a lower payment at a lower rate. What's your rate right now, your interest rate?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I talked to him because a lot of what they're offering is 5% and lower. So I would do that. I'm not saying that it'll happen and that you qualify, but I would definitely look into that. Um, because for you, it sounds like you could actually be a good candidate for that because what I'm looking for, what I'm always looking for with student loans is a way to lower those minimum payments to
The Ramsey Show
There’s Always a Way out of a Financial Spiral
so that you can focus more of your freed up money on the smallest debt and knock it out. Because with these student loans, even though you have this grand amount, it's still, like you said, broken into a bunch of littler loans. So if you do the debt snowball, which is what we teach, you're listing all of those little loans from smallest to largest.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Once you're in baby steps four, five and six. Right. And you're able to kind of not be in that like balls to the wall mode. I think that as long as you're doing the things that cause you to be a responsibly financial, a financially responsible adult, you're investing 15 percent. You're putting extra on the mortgage. You're, you know, putting away for the kids college.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
That's right. And if you're not satisfying the interest within your payment, you're going to pay forever and you're not going to see the loans go down. Because have you seen your balance go down? You told me you've seen it go up. I've just seen it go up. That means that is a clear sign that you...
The Ramsey Show
There’s Always a Way out of a Financial Spiral
a had it in forbearance for a certain amount of time and the interest continued to accrue or the the the ratio of your payment is not actually satisfying the interest so the way to get out of that is to make sure your paint really would be your payment getting higher so that you're satisfying the interest and you're paying it off because money's going towards the principal so again um
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I rarely say this, but I would contact Laurel Road and see if you can get a lower payment. And the point is not, the point of a lower payment and lower interest is not so you can keep your debt around forever and be comfortable with it. The point of it is so that, like I said, you can have the margin to pay it off faster. And you're right, a $2,800 minimum payment, listen,
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Luke, I know how that feels. My husband and I had 280 of student loans, but 460 total debt. So I get that feeling. I'm right there with you. The good news is you've got a good shovel. I do think that it could be worth talking about your wife going back to work.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I don't know what the timeframe or horizon of that is, but the solution to this problem is lowering your expenses, which let's talk about that for a minute. When you make $300,000 a year, In your mind, you should be driving the Tahoe. You know what I'm saying? Like in your mind, you should be going, I don't know, to a nice steakhouse.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
In your mind, you should be going on vacations, but that's not going to be the reality for you right now.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
If you're still doing all those things and you have the margin and you say, yeah, I'd love to to be able to splurge on this, you know, milk from college. Next door or whatever.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I don't know. But I'm saying that's because some people will go out and go to a really nice meal at a restaurant and they'd rather do that. And so at this point, it's really about how you enjoy spending your margin and what the value set is.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Coaching them up. They're the heroes. They're the ones actually getting in there and making life changes. And really what I love most about it, Ken, is... It's real. Like this is not a scripted show. This is not a, you know, full makeup, hair and makeup show. This is we're going into real people's lives, into their house, you know, and seeing how real things play out.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Because the truth is you get the advice and then you sit down and you sit at the table with your spouse and go, OK, what are we going to do? That's the truth. And you pick on the list of tough things. You go, okay, let's do this one. Let's do this one. You know, maybe we're not ready to do this one yet, but we'll go. That's real.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Very few people. I mean, I don't know. I feel sometimes that if we write a prescription. I don't know everybody that follows it to the T, but you can still make a lot of life change in a short period of time. So we did that. Sean and Dara, you got to watch it. Their income went from $200,000 to $100,000 when she stayed at home with their new baby boy.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
And they made a lot of sacrifices to pay off a good amount of debt. So I won't give it away. But take a look at it. You can find it. Well, hey, you can find it on the Ramsey Network app. But you can also find it on the highlights page.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
So, OK, take a deep breath because it is a lot. Just take a deep breath and blow it all out. OK, good job on the income. $115,000 single mom. Bravo. That's very good. You're right. Child care is expensive. $1,700 for the one child.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
feels now i'm not in your area so i don't you know maybe i don't know but it does 700 for both oh for both okay that's good that is good that is good um good when you do your budget when you put it into every dollar what did you find were you in the red yes okay how much were you in the red about 700 okay and right now is it credit cards that's covering that 700 in the red
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Okay. So tell me more about the actual numbers on the debt. Can you tell me what you owe on your car?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Car max, say like $3,200. Okay. Okay. Tell me about the credit cards. What do you owe on those? about thirty seven hundred okay thirty seven hundred student loans what do you own that seventy one thousand okay and that's on a zero payment right now or yes okay and then tell me about your mortgage what do you owe on it and what's the thing worth so I owe 276 and
The Ramsey Show
There’s Always a Way out of a Financial Spiral
So you're with forbearance. When does that come to an end? When do you start paying the full payment again?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
And when you do that, does that mean you're going to be more than $700 in the red? Or is that $700 with the full mortgage payment?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Okay, good. So this is a tough equation. Are there things in your budget that you can cut out? Because the truth is, here's the truth. Your largest debt, you're not even making a payment on it. So we can kind of, just for the purpose of this, kind of put it out of our mind. So if we do that for a moment, we go, well, wait a second.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Now I'm on the hook for $14,000 just with the car and the credit card.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
so let's look at it in smaller chunks and go how quickly could i pay off fourteen thousand dollars okay that's what we're solving for right now and so with this child care thing you've got a four-year-old when do they go to kindergarten because a lot's going to pop off when you get one of these out of daycare um so she'll be she can go in 2026 because her birthday is late in november
The Ramsey Show
There’s Always a Way out of a Financial Spiral
That late birthday. Okay, so there is a light at the tunnel there. Let me tell you, I couldn't wait till my son went to kindergarten. There is a light at the end of the tunnel. It doesn't come as quickly as we want. I'm not trying to wish your time away with your little ones, but you know what I'm saying. Is there anything you can do to clear that $700?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
If you walk through your budget, is there anything? Because I'm talking about everything. Here's where I want you to look. Non-spending items, I want you to look at your withholding. Let's find out if we're getting a tax refund every month or at the end of the year, that's money that you could be having in your budget every single month. So do you get one?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
So this year when you get your taxes back, that's going to be a tell-all for you. If you're getting back $3,000 or whatever it is, you need to go and change your withholding because essentially that $3,000 you could be getting throughout the different checks you get every month, right? Right.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
How exciting is that? I'm so excited.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
There it is, we need that. A little under 300 at every check, that's getting really close to $700 a month. So let's take that, we're gonna temporarily pause that investing until we get this debt cleaned up. And then other places that you can look, obviously you're starting the right thing with subscriptions, go through with a fine tooth comb.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Their first thing is to get out of the red, and then we can start talking about ways to increase the income so that we can start making extra payments. Focus on the car and the credit card. You can do this. Call us back if you need some help.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I'll take whatever loaf you give me. Sourdough pizza.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Hey, what's up, guys? Episode two of 90 Day Money Makeover is available right now on YouTube. This series follows real people as they take on the challenge of transforming their finances and their lives in just 90 days. In this episode, watch as they face new obstacles, celebrate wins, and push forward on their journey. And of course, I'll be walking alongside them every step of the way.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
I'm going to hold you to that, and I want all of the discard.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Okay, now here's a little sneak peek of what the new episode is all about.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
When you guys called into the Ramsey show, it was like, I think that we should push them harder. Baby Jonathan being born is a wake-up call for us to finally change. I can't go on another month.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
That's good, Ken. Keep me posted. Blog about it.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
You want to pay off your debt. You want to get your time back. You want to get your home. Nothing usurps those three.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
this is where you get the how-to. This is where you get the practical steps. Jade, I'm ready to do it. Just show me how and I'll take the ball. And so that's what we're going to do. We're going to show you how to get control of your money once and for all in 2025. We're going to walk you through how to make that happen, how to do a budget, how to pay off your debt.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
We'll talk even a little bit about investing. So this is an event you don't want to miss. And to wrap it all up, we're going to do a Q&A at the end. Rachel Cruz is going to join us. George Campbell is going to join us. And we're going to take your questions from you live and help you out right where you are. Meet you right there.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Listen, if I slide $4,000 over here to you right now, Ken Coleman, what are you spending it on? What's it going towards?
The Ramsey Show
There’s Always a Way out of a Financial Spiral
All right, Stacey Coleman. Listen, let me know how it goes.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
$4,000 is nothing to sneeze at. That could be something that pays off your debt. That could be you finishing out your emergency.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
That could be you finishing up your emergency fund. Maybe you're in baby steps four, five, and six, and this is what will get you over to do your little kitchen remodel. It's worth it. Sign up. That's all I'm saying. All right.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
What's it for? Why are they giving you this? I mean, that's a blessing.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Nice. Thank you. So here's what I want to caution you about. I love when people get big sums of money, whether it's an inheritance or a gift or just something goes their way. But the cautionary tale here is there was a habit that got you into $14,000 of credit card debt. And we want to make sure that we're examining those habits and what caused that to happen because
The Ramsey Show
There’s Always a Way out of a Financial Spiral
while it's really great to get a gift like this and be able to pay off that debt, the worst thing ever would be to not change your habits and over time accumulate that kind of debt again.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Oh, okay. Well, then can you tell us about the cars and the side-by-sides? Maybe we can give you some more help that you didn't come for. Mm-hmm.
The Ramsey Show
There’s Always a Way out of a Financial Spiral
Yeah. Is that rolling negative equity? What's going on with that? Is that what happened? Yeah, that's negative equity right there. That's why we haven't gotten rid of it. Listen, I would. One thing I would consider before you pay off these credit cards, I might consider getting out of these vehicles because tell me the payment on both of them.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And let's talk about that a minute because there's another part of this, Kelly, that... when you've been making $10,000 a month, right? Are you single? You're single, right? She's, okay. As a single woman, you've been, that's significant. Like that's a lot of money. So to go from that, it almost feels like, well, if I'm not making, it's like an all or nothing thing, right?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
You feel like if I'm not making that, then what's the point? And I think what Ken and I are getting at is that's, I get emotionally, that's a very real feeling, but we've got to go beyond that and say anything, right?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Yeah, before you leave, we'll make sure you're set up with every dollar, the premium version, because it's going to help you build that habit of budgeting, checking in with your money every single day, and tracking your transactions. So we'll make sure you have that. I'm also going to give you the total money makeover because...
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I think being able to read that and read other people's stories, you'll be able to see yourself in those stories and you'll be able to pinpoint, like I said, what went wrong here. You'll be able to accept that so you don't end up in this situation again, which is so important.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I would have gone Steve Kornacki on you in two seconds.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I would call it five reasons to take any job before you get the job.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Five reasons, right? Here we go. Let me caveat this real quick.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Because this is not just Jade sitting here yapping, right? So during COVID, COVID...
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
2020 the pandemic everything shut down and for sam and i my husband uh that was big for us because before i came to work here i was in entertainment our whole business is in entertainment and cruise lines that's right and all that was shut down your whole world and you want to talk about going from a great income to zero okay so this is coming from my personal experience i had to take a job that i hated temporarily it was a call center job so i get it okay i'm talking out of personal experience
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Five reasons to take any job before you take the job. Number one, Ken, some money is better than any money.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Great point. If you are the person who's like, well, I got to depend on credit cards. Well, if you bring in some money, I guess you won't have to use your credit cards as much, right? So some money is better than any money. Number two, Ken, Ken, your spouse needs to see who you are. Come on. Who are you going to be in a hard time? When the rubber meets the road, are you going to take any job?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And are you going to be the person who steps up? My husband stepped up. I stepped up. And we needed to see that from each other because it was a hard time.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And if you see your spouse sitting around while you're trying to make things happen or vice versa, that's not going to be good for the marriage. So your spouse and you need to see who you are. Number three is, well, you'll learn what you like and what you don't like. Because I can tell you right now, I don't like a call center job.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I don't know if I can say it on here.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I was taking people who needed help with their taxes.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
No, it was the tax software. So if they had trouble with the tax software, but you have to understand the taxes to be able to do that. So I learned a lot. So I learned, that's what I'm saying. You'll learn what you like, what you don't like.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Um, I chose for it not to be soul sucking because like I said, it was 2020. There was enough that was sucking out our souls.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
It was hard because to go from making... There you go.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
sucked it up you gotta suck it up you gotta do what you gotta do for your family okay come on uh so that was number three you'll learn uh what you like what you don't like number four you'll just be a productive person okay because sometimes ken you just gotta get out of bed you gotta take off your sweatpants hit the pavement knock on some doors make some phone calls like you gotta be productive make something happen
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
make something i love it otherwise you're just going to be getting depressed i love it about the fact that you don't have a job all right which leads me to number five it'll build your confidence going to a job i don't care if you're a greeter at walmart getting up and taking pride in what you're doing and being the best at whatever it is that you do colossians 3 23 whatever it is that you're doing work at it as though you're working you know for the lord not as unto man what right i didn't quote it right but you know what i'm saying
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
But that's my point. Like... Who wants to show up when you finally do get the interview? It's been five months and you've not been to a job. You're going to bomb that interview because you haven't been building that confidence at any job.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Hey, you're doing a great job maxing those out. Your funds should be doing much better than that, especially the past couple of years. You should be in the 20s, honey. So I would suggest you get with one of our SmartVestor pros. They're going to get you on the right track and teach you more about the right funds to make you a little bit more money. But yeah, you're doing the right thing.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
You could go to a taxable brokerage account, but it sounds like maybe you might want to Try something like investing. Maybe it's now time to save up and invest in a piece of real estate. That might be interesting for you. It sounds like you're getting a little bored with just setting it aside into mutual funds and that sort of thing. So real estate could be the next play for you guys.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Oh, 100%. Yeah, he's selling you.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Yeah. The answer is no, I would never do that. Because essentially what you're doing, you're leveraging your home, which is supposed to be a place of peace and security, for an investment. And it's like, why would you do that? And an investment, by the way, there's no guarantee.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
He didn't say what type of investment it would be, like him investing in the market, which is also something that I'm like...
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Yeah, no, I would never do that. I would just take my own income and invest it in mutual funds. And that way I'm not creating any additional risk in my life. I'm holding on to the wealth that I have, which is the equity in your home. And I'm continuing to build wealth by investing 15% of my gross income every single month.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Yes. But you also said you have $3,000 worth of cash?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Yeah. I mean, if I were you, I try to get out of this by getting out of upside down. What's your income?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
um monthly is 2400 okay you're living at home um yes okay so how quickly could you save up another because you're eight thousand dollars upside down you've got three so we need five to make it right right side up right but then you got to drive something so we've got to come up with another three thousand to get you a beater or something right So that's the equation right here.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
How quickly can you get another $5,000 in two months? Three months? Two months if you take a second job? You live at home.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
What other bills other than the car?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Okay. And then what's the car payment? Just so I can really see this.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
What do you want to do? What do you want to do? Jeremiah.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
But you got to pay it off with like lickety split, like with the quickness, like you getting another job.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And see, this is why I'm saying sell it, because when I gave you the task of getting $5,000 quickly, you felt like that felt insurmountable. I could tell like that felt like, oh, yeah.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I kind of like that plan for you. If you were a little bit older... and you were accustomed to the type of work that Ken and I are talking about, I might say, yeah, keep it paid off. But I can tell that this is really a burden. Even the burden of getting the $5,000 to get right side up feels like a lot. Am I wrong or am I right?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Yeah. You can't really... It's hard to enjoy a purchase like that when it's kind of made you feel some type of way like that, you know?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Yeah. Yeah. I hear you. Listen, a Ram is nice. I'm not going to lie. I've been looking at Rams. What color is it?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Hey, listen, slide it this way. You're in San Antonio.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
This is great. You're a young guy. This is a great habit to learn early. So EveryDollar, it's the best budget out there. It's the only budget I use. I know it's the only budget Ken uses, but it's great because it's on your phone. It's on your desktop. And it does all the math for you, Jeremiah.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
All you have to do is plug in your income at the top and you get to decide from there how you're going to spend every single dollar of your money. So you go in and put everything that Jeremiah might spend money on from your insurance to your car payment to, you know, a little bit of groceries for the house, whatever it is that you're spending money on.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
You put that into every dollar and then it's going to tell you, hey, here's how much extra you have to spend. So that's just the basics of what EveryDollar does. You connect it to your bank, and then all your transactions load in there, and it'll tell you, hey, here's how you're doing with your money. But there's also some really great future planning tools in there.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And being able to make the choice, hey, I bought that. It was too expensive. I don't need to keep it. Being able to say that in life.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Her stealing $13,000 from his UTMA. Whose name is on it? Did she set up the UTMA a long time ago for him?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
So you could sue her. I mean, you could, you could, I got a question.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Like I said, unless you were trying to get the $13,000 back, if that's the case, you'd have to take legal action to prove that she took it, that she didn't spend it on him, right? I just don't even know how to prove that. My point in saying that is it's probably not going to be worth it.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Right. How did this happen time and time and time again?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Yeah. Has she ever gone through any treatment for her alcoholism?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And I think, you know what? I love therapy, so I would suggest you and your husband go talk to someone because when people do you wrong like that... And your husband's probably bringing in his own baggage from that living situation. Like you guys get some clarity and get some mental healing over this, because clearly what she's her actions have impacted you guys.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And it's made you feel some type of way, like understandably so. But make sure you're working through that, too, so that when the time comes that she does become sober, which I pray it does, you can receive her with open arms.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I agree with Ken. I agree with Ken 100%. Matter of fact, if I were you, I'd probably jump into some counseling and get to the bottom of that just because Ken is so right. What we've experienced in our past 100% informs how we view money, how we spend our money, what we think we're entitled to with our money, what makes us feel uncomfortable with our money.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
All of that is driven by what our relationships have been with money, whether it's from childhood, with our ex-wife, our ex-spouse, whatever it was, right? That all plays into it. So the the cute answer that I would give you for this moment, because I'm you know, I wish I were more of a therapist in that area, but I'm not.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Come on, Samuel. What that told me is he doesn't want to go into an office. Whatever he does, he wants flexibility.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
But the cute answer is you've got to get to the point where you're sacrificing. You're not sacrificing what you want most for what you want right now. Because what you want right now is the headphones. What I want right now is New Jordans. There's this thing that we were like, I want this now.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
That's an expensive way to find yourself.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I think that you're exactly right, Ken Coleman. I think that that's a message that needs to be shouted from the rooftops.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
But what you want most is what you started out on this journey, which is to find financial peace for your family. And so it's in those moments that you've got to kind of... tie back to, okay, why did I start this journey? What is it that I'm truly trying to accomplish?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
But you could find yourself in Europe.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I wish I had found myself as a dropout. Listen, I stayed in school too long.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Yes, but I quit volleyball to pursue music in my studies. But I didn't need to continue in school.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I wish I had taken the Ken Coleman path of action. It would have been right for me.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
It's not for everybody is what you're saying. It's not the pathway for everybody.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I am sciencing the political. What do you think about folks who really view it, though, like it's just...
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
My degree helped me meet Sam Warshaw. That's all that matters. That's what I tell myself at night when I'm thinking about the student loans I paid off.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I said that right there as a snack.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Listen, face card never declines.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And if I can just keep on the straight and narrow, there will become a time where you can buy the headphones or you can buy some of the things that you want to do. So that's the cute answer. The truth is you're really struggling to do that right now in this moment.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
All right. Today's question comes from Travis in Vermont. He says, I'm 23 and saving for a home down payment, which should only take 12 to 18 months. However, I've heard that you recommend not having a mortgage of more than 25% of your take home pay. Even if I went, even if I were to save enough for a 20% down payment, I wouldn't be able to get a mortgage anywhere near that.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I earn $70,000 per year, which is above average for coming straight out of college. There are no starter homes in this area for less than $150,000. Do you think young people will ever have a chance at purchasing a house if we stick to your 25% guideline?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Let's talk about it from a couple of angles. Number one, I love that you want to buy a house. I think that's great. I think the dream of real estate is the American dream, right? To own something that's yours outright. It's great. What you first said was you could save for a down payment in 12 to 18 months, right?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Which lets me know whatever you had in your mind, you thought, this number will get me in the door. But the door that it's going to get you in is a dangerous door for you. The reason that we say 25% of your take-home pay is because we want you to be able to live. Like, we want you to be able to breathe out here.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Yeah, at some point, you have to think about it like this. At some point of the 100%, pie of income that you have, at some point, you're going to want to invest 15%. So there's that at some point, you're going to want to give 10%. So there's that that's already at 25. At some point, you have a mortgage, let's say it's more than 25%. Let's say it's at 40%.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Well, suddenly, you don't have much to live off of.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
right you've really cut that wedge really really small for you and we find people all the time who call in and say oh my gosh i mean it happened the other day ken folks calling at 50 because they'll give you a mortgage oh yeah up to 50 percent oh my goodness and when that happens these people can't breathe no like they can't pay for a pot to piss in like they don't have anything one of my all-time favorite phrases by the way you dusted that one off
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I think I probably heard my dad say it, but I promise you anyway, you know, that's the point. It's not, it has nothing to do. It has nothing to do with being a Ramsey ism.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
right that's right it's about you we want you to be able to live so about margin and emotion attached to that margin and so that's kind of what i want you to leave here with it's not about us it's about you being able to enjoy your home and have the money to do the things that you need to be able to do so that's thing one now let's answer the question of do you think single people will ever have a chance at purchasing a house if we stick to your 25 guidelines the answer is yes
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
But, comma, and you'll have to change your expectations on possibly the piece of real estate and the timeline that it will take to get you there.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And that's so important to note, Ken, so important. Despite what your monthly payment for the mortgage might be, you still, that first home, you feel the weight of whatever the entire amount is.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And Ken, let me drive this point home one more way. Drive it down the lane. There's always a new listener, someone who doesn't know our backgrounds, right? So my husband and I, I loved this question because right now the real estate, it's gotten more and more expensive. It started to cool out in some areas, but the truth is it is very expensive.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And with other things being expensive, inflation and things like that, it does make it feel harder to be able to accomplish this dream. That is the truth.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
yeah and so i like to remind people when my husband and i were getting out of debt of course we couldn't buy a house during that time because we say you should really pay off your debt before you become a first-time home homeowner and so sam and i rented ken for 10 years and during the course of that 10 years we paid off four hundred and sixty thousand dollars of debt and then we saved up and we're able to do you know a bunch of people living with you too i feel like you say what didn't you have a bunch of people living with you too
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Not a bunch of folks. We had roommates at one point. We did. That's what I'm saying. I'm not knocking that. We were married and we had another married couple that lived with us for a year.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
10 out of 10 would not recommend, Ken.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
We did it. But the point is... I said a bunch of people.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
It kind of sounded like we were just on the block.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
We just had folks coming through. I know. Lipping in a shoe. No, just reframing like a timeframe. If it takes 10 years, so be it. You'll be a homeowner. I can tell you, you will.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
give you freedom to get to where you are today um break it down well a i don't regret it at all like here in my life i'm 41 years old i don't go oh man if only i had bought my house when i was 23 like there's no part of me that thinks back right and regret at all um why because it was worth it to do things right you took seven we took seven and a half years paid off all the debt then we took we lollygagged a couple years because we were tired took some more time to save up that's well you were paying off half a million dollars that's right you deserve a water break
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
It took some time to save up, and then when we finally bought our house, I was pregnant. I had just had my first son, and I was 36 years old, and it was great.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Homeowner. I'm on my second house.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
That's right, because it was cheaper. It was far cheaper. It was far cheaper for us to rent. We had a season of roommates, and it freed up money, and like we said before... The last thing I needed was more stress of then feeling like, okay, now I've also got this mortgage that I have to be accountable for. So, Ken.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I think one time we came home and they had bought a home alarm, an alarm for the house. And so Sam and I came home from a trip. We had been working. And when we opened up the door, they didn't tell you.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
That part I don't miss. I love them. They were great people. I have nothing but love in my heart for them.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
From a distance, but not because they're not great people.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
How do you source your guests? How do you select your guests? Because you've had some wonderful guests.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I mean, you can sell anything.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
If they're in good shape, I'm sure you could sell them. You can sell them on Marketplace or put them somewhere.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Go through the other amounts for us so we can get a picture of this. So the $9,000 car, the $12,000 car, what else?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Okay. And have you added up, if you don't know, it's okay. But if I were to ask you on the spot, like, how much does this cost you in payments every month? Do you know the number to that?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Okay. So you're paying $4,000 in payments. And then tell me, what's your mortgage? Tell me about the mortgage. Tell me what you owe on it.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And that's what you're paying per month. But tell me how much you bought the house for.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Well, no, you said you're paying $3,100 per month. Oh, yeah, that is actually a huge difference.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Oh, that's not including HOA. What's your HOA? $250 every quarter. Okay, every quarter.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Well, there's a couple of things. You got that big commute. I was going to ask you, is it an hour and a half each way or is that combined? Because if it's 40 minutes, that's not as big of a deal. No, it's each way. Ooh, girl.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And let me hit you with something else, Eli. I've heard Dr. John Deloney say this, and it's so true. Your stuff talks to you. Your stuff, it does.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
It's still a lot. Three hours driving in a day is a lot to get to work. Um, so that's one, that's one green light. It's not the biggest reason. Cause like you said, it's not like he's going in every day, but it is a reason that, The biggest reason for me to consider getting out of this house is because it's more than 25% of your take-home pay.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And at this point, you need every dollar that you can get your hands on. Now, there is a thought here, and you guys need to sit and talk about this because there's a thought where I go, okay, if you guys really start side hustling, if you start picking up your income, There could be a world when this debt is over that this is 25% of your take home. You see what I'm saying?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
That you raise your income and it becomes something that you can keep around. Today, though, it's really a problem. So I would say your homework to sit down with your spouse tonight would be to say, what are all the things we can do to make money? What are your opportunities that are directly related to your job? And what are mine? Do you both work?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And I bet you when you walk by it, because you've said what it is that you truly want, let your stuff talk to you and it talk you out of doing this again. Because I bet when you walk by those headphones, they're like, you said you were going to make things right with your family, right? When you walk by those purchases, they're telling you everything that you said you were going to do.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
How consistent can that happen? Is that like a daily thing or is it like a couple times a month?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
So what I'd be looking for when I'm looking for a side hustle, I'm looking for something I can count on. That's the whole point. So I'd be looking if I'm going to spend the extra hours working. I want something that's like clockwork. I can get it. I can go bust my butt and do it. And it's there. So you both need that. And then if something if, you know.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
part-time pops up at the at the job and you have the the leverage you know the place in your schedule to do it you do that too but right now i want here's my my main job and a go-to side hustle that's always there i can work it every day every weekend got it so that's you guys's job to come up with that tonight and then after that i have you made a budget
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Yeah, you got to stop borrowing.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
You can afford it. You spend more on pizza delivery. Okay? You can afford it.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
So by you getting rid of them, selling them off, and let it be a reminder of what you said you wanted to do and start surrounding yourself with things that are telling you the right thing.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
How much is it? How much is the personal credit card debt?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Okay. And are you still doing that or you've moved on?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
So how long were you laid off? Because I mean, this is almost $60,000 of credit card debt. That's nothing to sneeze at. Like when you say fell on hard times, I want to understand more about that and how long that period lasted so that I can understand more about your habits and your mindset around money and debt.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
How long? Because if it was only $1,000, that means we spent 36 months not doing it. Yeah, it's been almost a year. Almost a year.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Right. I hear what you're saying, but it's still $120,000. So what that tells me is on the windfall months, the months that you just had made bank, instead of saying, okay, I've got to be smart and put this aside and this is what I'm living off of for the next couple months, that tells me that that money went somewhere. Where did it go?
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Because you also told me that it only takes $1,000 to make your household run, which I do have questions about that. But do you see, I'm not trying to take you to task, but there's holes in the story and I need to understand it so that I can help you best because what's coming off, the way it's coming off is that you're not working much. That's what the way it's coming off.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
And I want to find out why that is, because even if it's not an IT, there's plenty of opportunities and King can get into that that we could do throughout the year. And so I really want to highlight that behavior for you so that you never do that again. Does that make sense? It's not for me to make you feel bad. I just want you to know, hey. There's a moment.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
It's like you got to know when to hold them and when to fold them. Like there's a moment that you get to a threshold that you go, I can't keep doing this. I got to go work. I got to get out here and make any kind of money. Right. And something happened that you didn't make that transition. Fair enough.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
I mean, but was it just the restaurant or did you go to Walgreens and Target and everywhere? Did you do DoorDash? Did you do Uber? Did you do Instacart? And they all said no.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
Hold, because here's my point. Nothing was paying your bills. So isn't something better than nothing? That's the point I'm trying to get to.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
So I was paying, I was able to pay my- No, that's not true because you went into, you had unemployment, but it didn't cover the cost. You still had costs because you went into credit card debt. So that's why I'm saying, wouldn't it help to have done some of these other things as well so that you would not have at least had to go into credit card debt.
The Ramsey Show
The Key to Transformation Is Admitting You Have a Problem
So I'm just trying to play this back because if you can't look back on this and see, here's where it all went bad. If you can't see that, it will be impossible to fix this.
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Money Stress Is Real, But So Is The Solution
Hey, what's up guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now,
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Money Stress Is Real, But So Is The Solution
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Money Stress Is Real, But So Is The Solution
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Money Stress Is Real, But So Is The Solution
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Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Well, I think we've just discovered the issue. I think Ken just discovered it, which is you don't have a budget because people who have a budget know their numbers. And I'm not saying that to be, you know, ugly in any way, but we've just discovered. I think if you have the budget, which we'll set you up with before you get off the call, you're going to be able to see, OK, here's what my life costs.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And here's how much margin I have after I pay for everything that my life costs. So for you, you're in you're in a wonderful situation. And the fact that you're not paying for housing and you've got to capitalize on that to the fullest extent while you're there. OK, and you're going to be able to do that with the budget. You're going to be able to say, OK, here's the truth.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I make I have forty six hundred dollars every single month. How much is your car payment? It's $570. And how much is the total amount that you owe?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And what's it worth? Do you know? I don't know, actually. Okay. I'd be curious to know how much that's worth. If you want to get out of this really, really fast, it might mean downsizing your car. $570 is a lot of money to be paying when you're trying to do things like save up to get out of your parents' house, pay off debt, take care of a one-year-old, that sort of thing.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
So I'd be thinking about getting out of that car. But the budget is the number one thing. And what you're going to do is you're going to put your income at the top. You're going to subtract everything that you think you might spend money on. And then, Melissa, whatever's left goes to your smallest debts. You should be spending $3,000 a month on paying off debt. I agree.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
There's no reason why you're not. You don't have a house. You're about to not have a car payment. Let's get going.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Yeah, let's give her every dollar premium and total money makeover.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
When does your four-year-old go to kindergarten? In the fall, or do you have another year to wait?
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Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Okeechobee. Okay. Okay. Listen, I think there's more. I have different questions to ask you because I'm thinking about how we can cut around your budget. I thought I heard you say that you're paying tuition for a six-year-old. Explain to me their daycare and whatnot.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Is the six-year-old in kindergarten or is still in daycare?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I'm trying to figure out when your time and your money freeze up because daycare is super expensive. Plus there's the time aspect. So I'm trying to figure out when they will be in school, you know, from, from eight to three and when you'll have that money freed up.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I'm just trying to understand when they both will go to kindergarten.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Yeah. OK, so that's going to be a huge that's going to be a parting of the seas for you because you're going to get a lot more money back in your pocket and you're going to have built in child care for this portion of the day, which. Right now, with a single mom, limited options, we need to know when that's going to be. So I think for you, that's going to open up a lot of opportunity.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
In the meantime, I do think that there's other things you can do for $13 an hour. For more than $13 an hour, I think you just need to expand your horizons, even if it's you finding work from home things, right? I think the nurse...
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
idea is great and i want you to do that but we've got bigger fish to fry in this moment and maybe just for the next 12 months until you can get your kids off to school that not line item is back out of your life you're starting to figure out what's going on with the child support and then you can start to devote money towards nursing so i think this is a dream deferred not a dream denied by any means um but i think the next 12 months is about you um
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
being in a survival mode and looking for work that you can do that's going to earn more money until you get to the position where you can get this degree. Is that fair, Ken?
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Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I agree wholeheartedly. I would not go into debt.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Well, she wants to, she's in a hot pot that's about to boil, and she wants to jump out, and jumping into debt is not the option.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I like this question. So I always like to set the tone for these sorts of questions by saying that there's no requirement for a parent to pay for their child's education. Like that truly is really a privilege for both, a privilege for the parent if they can afford it and a privilege for the child if they receive it. It doesn't make you a bad parent if you do not pay for your kid's college.
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Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I know for me, my parents told me they're like, listen, there is no college fund. You better be smart and good at sports, right?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And so the moral of the story here for you, Lewis, is as long as you're really communicating what the plan is, and if the plan does not involve you giving them all the cash that they need for all four years or whatever it is, maybe they go to a technical college, maybe they go to whatever they decide. If you're not paying for the whole thing, what you do need to be saying is,
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Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And here's how we are paying for it. You're going to get these scholarships or you're going to work part time and have it thought through and talk to them about what that plan is, as opposed to leaving them hanging or putting any room for them to think that student loans are an option.
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Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And so in this case, I think it's up to you and your wife if you go, hey, this is because you're going to retire like that day is going to come soon. and you're going to need the cash to be ready for it. So there is an inevitability there that you can't get around.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And if you've sat with your smart investor and you've realized, hey, if we don't get on the ball with this, we're not going to have the money we need for when we stop working, then yeah, that is a reality that you have to face and say, okay, kids, this is all you get, or you don't get any, and here's what we're going to do instead. And there's absolutely nothing wrong with that.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I know people who can afford to pay for their kids' college and choose not to because they want their children to have skin in the game and they want them to pursue, you know what I'm saying, that side of it. So this really is up to what you guys decide. You have a really great...
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
household income I'm wondering if you can continue to put 15 percent aside and cash flow a portion of this whatever you decide to do I just want you to know that there's not the only wrong answer is you not talking about it and coming up with a plan that's the only wrong answer yeah good answer love it I can't add anything to that so I won't let's go back to the phones Kirk is joining us in Denver Colorado Kirk how can we help today
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Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Do you know why? Do you know the problem? Basically, yeah. Have you figured out what the problem is?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Is there anything... Yeah, and I'm...
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Do you need it? That's the other question. Are you banking on it? Is it something that you need in the short term?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
The other question I had is, does it cost you anything? Is there any upkeep on this land? Are there any animals on it? Does it cost you anything? No.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
uh what what popped in my mind is is there a way that i'd want to make money with this land as it's appreciating in value so that i can make money two ways that's what was in my head um and then cash out when you're and then cash out when i'm ready i like that if you can if i'm not and if i'm not going to do that then i'd probably cash it out and invest the money that's that's me i'm not saying that that's necessarily right it's just what my brain would be thinking of i'm trying to find ways to get money
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Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Did you expect that? Did you expect that it would get slower during the winter considering, you know, it's the winter and folks aren't just out? Yeah.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Okay. I will say I love a lump sum. I love the idea of dropping a big old lump sum and letting that – Let it do what it's going to do. Let it do what it do what it do.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Yeah, see what the wife wants to do, too.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Okay, so you expected this, but it was too early to have had any reserves kind of piled up is what you're saying.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
First off, Christian, I love that you're understanding the importance of accountability to the point where you're like, I'm going to call on the show. People are going to hear it, post about it on social media. I actually really like that. Some people kind of like to do their goals in the quiet. And in secret. And I listen, I'm no psychologist. I don't know. But I have a feeling around that.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I think that when people do their goals quietly, it's because they're afraid that if they don't accomplish them or if they fail, no one has to know. Right. And so I love the accountability of you saying, no, I'm putting it out there. So my question is, what is it that you're trying to accomplish? And what is it? What is the thing that you're worried about being a roadblock for you accomplishing it?
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Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
So you get $7,000 a month from the trust, and then you're working part-time on a farm. What do you make from your part-time work?
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Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Yeah. Is the trust for life?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Okay. I have a question. You told me earlier that you've never been good at managing your money or sticking to a budget. Do you know why? Why is that? What do you do instead?
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Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Yeah, because $7,000 a month, you can live on that.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Yeah. So let's get into this a little bit. I totally buy it. None of us were taught this in college. None of us were taught it in high school. Few of us were taught it in our own homes. So it's very, very important. And I'm also with you on the math. despite popular belief, I actually hate doing math and I'm not very good at it. I made season in high school and college. So there we go.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Um, the good news for you is that we solve those problems here for you with every dollar. So before you get off the call, I want you to have the every dollar app. It's a budgeting app and it's going to help you do the things that you said you struggled with, which is making a plan for your money, sticking to the plan with your money and doing the math on your money. It does all of that for you.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
The only thing that you have to do, Christian, is the only commitment you have to make is to make the thing, right? Plug your numbers in and just to take atomic habits, habit stack it with something else you do, right? So if you have a habit in the morning of you wake up, you make your morning coffee and you read the news on your phone, right? Right.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
You just add, and after I read the news on my phone or before I read the news on my phone, I track my transactions in every dollar. That's it. If you can start that habit this year, you're going to see things with your money begin to turn around because for most of us, we're just not, it's not part of our day-to-day rhythm.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And so we're not seeing the fact that we're overspending on food or we're not seeing the fact that we're overspending and accidentally spending the money for something more important on something less important, right? And so for you, I think getting that habit into your life is going to be really important. So that's numero uno. The next thing I want to talk about is this car.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
You got to go out and get business. You're a cookie maker. If I'm you, and this is just me, I'm brainstorming ways they can make money. If I'm you, I'm trying to host every party, every wedding, I want to cater every event with dessert. I'm going to companies and saying, what can I do? Because you've got to make money. Otherwise, this is not going to do well for you. And Yeah. Yeah.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
So you said you've got a $35,000 car and then you've got another 55 or 60,000 in credit card debt. So I kind of want to tackle the car. What's it worth?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
OK, then that would be my second piece of homework. Number one is every dollar. Number two, I'm looking to see if this thing if there's a break even here or if, you know, if it's a very short amount of upside down this, I'm going to I'm going to take that bet and I'm going to probably get out of this car because what are you paying every month for it?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Hey, my guy, let's get that money back into your wallet. That's a lot of money for somebody who's in $90,000 of debt. So if I were you, I would get out of that vehicle. I'd buy something far less expensive in cash. And yeah, that's what I would do.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Yeah. You're clearing out a big portion of it. And then with these credit cards, you know, don't consolidate them. Don't, you know, do a shuffle game. Just list them smallest to largest and pay them off one by one. Ken, what's he going to do with the career real quick?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
There might be a few of those.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Yeah, you're doing good.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I'm playing your song, Monochrome.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
on the retirement piece so she can give you some guidance there yeah tell me more the only thing that made my ears perk up is when you said that you were very conservative and you were utilizing high yield savings accounts so i didn't know what percentage we're talking so tell me more about that yeah i so the you know the houses i'm i'm fortunate that i got my house i got my house paid off nice i'm gonna have a small pension deferred comp um
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
How much is in there total? $240. Oh, my goodness. All right. Great job saving. Listen, if I were you, if I were in your shoes, I would keep three to six months of expenses. You sound like a guy who wants 12 months of expenses, but I for sure keep six in there.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And then if you're not, if you don't have something that you know that you're intentionally about to do with this money, you know, you're not remodeling your kitchen or you're not about to do something. It's not college money. I'd invest it. I would. I'd be maxing out Roth IRAs every single year. If you have HSAs, I'd max those out and then I'd throw the rest in a brokerage account.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And that's what I'd be doing. I'd definitely be investing this money and getting a better rate of return somewhere between 10 to 12% if you're investing in the mutual funds that we teach. The type of mutual funds we teach, I should say. Yeah.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
What gives you pause about investing it?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Or if you gave me a gift and I just set it on the shelf and didn't use it to my advantage. Boom. Hey, get with a SmartVestor Pro so you can learn about this and feel good about investing that money.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Alrighty then you have to turn your microphone on. That's how that works. You do. Okay. Today's question comes from Tyrone in New Jersey. He says, I work for a small company with less than 20 employees.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Recently, I discovered that while my employer has been taking deductions from my check for my 401k, they had been holding the money and making a few small deposits into my account throughout the year. And then one larger deposit at the end of the year. Huh? Okay. I confronted my employer and their only response was that they were sorry. Does this sound legal or unethical?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And is it time to seek new employment?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
That does not sound right.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Smells very fishy. Yeah, because you're missing out on time in the market if they are not investing the money into the funds that you chose.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Yeah, I'm not messing around.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I like that. I love a furrowed brow, but a nod yes. Yeah.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I hope so. Yeah, this needs to be dealt with quickly.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I don't think I mean, don't get me wrong. This is not the type of thing that would ever happen here. But let's just pretend I looked at my investments and said, wait a minute, like my thing didn't go in there. I mean, I would go to my leader and or, you know, who's over HR or whatever and say, hey, here's what I discovered. Right. I would not be lawyering at this point.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I'd be doing what you're doing, which is asking serious questions.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
At this point, then I'd wait for the next round. And if I see it again, because my thing is if I see it again, then yeah.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Yeah, I probably would at that point.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
You know what I mean? This is very fishy. Listen, I don't want to do anybody wrong, but they took a loan.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
So, okay, let me filter it through the baby steps. So when you're paying off debt using the debt snowball method, what we say to do is you pay minimum payments on everything so that you're satisfying whatever your debts are for that month. You're paying, you know, you're doing the things on your budget that are necessary for that month, whatever they may be.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I mean, everybody pays their rent or mortgage, you pay your groceries, you pay your minimums on your debt, and then the extra money after that goes to paying off your smallest debt. So you do need to satisfy with your own cash the things that the month requires. And which for you, that's going to feel some type of way because you're used to doing that with your credit card.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
So essentially, you're used to taking all of your income and throwing it to your credit card to paying it off. And this month, you're going to go, no, I'm going to take my income and I'm going to use it on my life and what the margin is I'm going to use to pay off that credit card.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And what you're going to discover there when you do that is what has been true all along, which is that money was debt and you were borrowing it and now you owe it and have to pay it back. That's what that's going to feel like. You're going to actually feel that you've been in debt this whole time. Does that make sense? Yeah. Yeah. Listen, I'm proud of you. I'm glad that you've seen the light.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
You've had that moment. What caused you to go, you know, I don't want to do this anymore?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Well, listen, I want you to have every dollar. That's going to be a great way for you to make this transition into using your own money. And let me just say, and Ken, I know you can speak to this. When you have been a person who... you've let credit cards run their scam on you, which what credit cards do is they say, hey, we'll make your life easier for you. Easy in the word in quotes.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
But what it's really does is it steals your confidence to handle your own money. That's what it does because you have this crutch that you've been relying on that's always there. It's debt, but you don't feel like it's debt. And then the moment you remove it, suddenly most of us are like, oh my gosh, I don't even know what to do with my own income. It feels exposing.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And so that you're going to feel that for a moment and then you're going to go oh wait I actually make money and I work hard for my money and I should have the dignity of managing it and spending it in and of my control.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
He's licking his wounds. He really is.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And you're not behind a month. When you do that, you're always behind a month. And so what happens, you put everything on your American Express, and then what happens if you lose your job? Now you just owe the money, but you didn't get your paycheck. So there's method to the madness, people.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I 100% agree. One of you needs to be working full-time. And find a full time job instead of doing all these odds and ends. I think that's also part of the equation here is you guys are burning the candle at both ends in many different ways. Yeah, I'm curious to know. I know you told us the actual debt. I'm curious to know what you're burning every single month. Like, what are you losing?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
We hang out. Thank you, Ken. Sorry. Just put some respect on our relationship here. Well, the respect was the colleague.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I'll tell them a little something. All right. So a while back we said, what would it be like? You know, we take calls on the show all the time, Ken. And we give them advice, but we don't know if they're actually going to take the advice. So we thought it would be really cool to follow somebody who calls into the Ramsey show and actually help them take the advice.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And so we follow them over the course of 90 days. And we've done a couple of these episodes and they have been really, really, really.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Like I'm talking about on the farm. It took you a while to get there as I recall. It did. I was fighting for my life out there. Let me tell you, it was great though. The life change that takes place over the course of 90 days is absolutely incredible. And it really just, I mean, it's amazing. So anyway, 90 Day Money Makeover, it's available now. The first episode came out yesterday.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
It's on YouTube. You can go to the Ramsey Show highlights page and watch it. The first episode, we follow a single mom, Heather Hartman. Let me tell you, Heather is amazing. I feel like we're bonded for life after this. But she's such a strong woman, hard worker, but she was drowning in debt.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
How much does a chicken fetch? Bro, I don't know.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I told her to sell them. She had three cows. I can't wait to watch it. Were you wearing overalls by any chance? No, but they convinced me to wear boots. No flannel, though? They convinced me to wear flannel. Oh, I got to tune in just to see that. Listen, I was in my Green Acres era.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I did, and they were ugly. They were terrible.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
No, because I wanted people to know that it was a joke. I didn't want them to think that I was trying to do that.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
yeah coach her up and and she's gone through a lot she's divorced trying to work through a divorce she's got children she's got debt it's a lot and a huge farm that she had so watch the episode uh she really did does change her life so again available on youtube or click the link in the show notes or you can just write on in there to the highlights as much as you laugh about going out to the farm they made a good choice in choosing you not me i mean there's no chance you're getting this listen
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
What are you losing every month? Because you said you're not making money.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I don't belong out there. Jaden Ken on a farm.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Well, you guys don't know this, but during the break, Ken told me about his hot tub. He told me about his new espresso machine. He told me about his deck. I'm like, I need to come to y'all's house, Ken.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And when you say break even, does that include you guys paying yourself or that's just you keeping things on and keeping things going? Okay. Yeah. And then my next question before, the next question I'd have before making this decision is, have you ever run a successful business before or is this your first go around being an entrepreneur?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And what does he say to that?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Is there precedent? Like, is there a, can you see a reason for this? Like, are you guys coming from relationships where there was lack of trust, where there was some form of abuse or control? Is there a divorce? You know, was there anything that would cause him to say, I want to keep mine over here and you over there?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Well, that's kind of what made me ask, because if you're coming from previous relationships, I'm just trying to get into his headspace a little bit. I'm talking to you right now. And clearly you're on board with it, which, by the way, I think you're right. I'm just trying to understand what's giving him fuel to that fire. Did you have a season where you were spending like crazy?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Is there anything other than just him wanting it this way?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Have you asked for access to the emergency fund account?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Yeah, listen, that's a red flag. That's definitely a red flag. I don't like that. I feel like that's a controlling effort, if I'm just being honest. And what I find, and, you know, Ken and I are both, you know, we both have been in long-term marriages. Ken, I've been married 18. You've been married... Coming up on 27th. Right. So here's what I know.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
If I say to my spouse, here's the way I'm feeling. I'm feeling like we're separate in this area and I want us to come together in this area. Or here's something that's causing me to really feel unsafe or on bad footing here. Sam is going to come and go, okay, let's fix that.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
The fact that he is not aware or caring about the things that are making you feel unsafe or making you feel separate from him is a red flag. And I would take that to counseling immediately.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I think this is going to be different for you. And I think for me, there's going to be a moment, like Ken said, we're going to have to cut ties with this because if you're not making money, you're losing money.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Hey friends, the first episode of 90 Day Money Makeover is available right now. This new series follows real people as they take on the challenge of transforming their finances and their lives in just 90 days. Watch as they navigate the highs and lows of this journey and as I walk alongside of them every step of the way. Okay, now here's a little sneak peek of what the new episode is all about.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
She's got a lot going on. We've got to simplify it. She's got the farm, the divorce, the debt. We're just praying the money's there, I guess.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Are you ready to commit to it? Are you going to do it?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Oh my gosh, I'm going to see you. Do I want to pet a chicken? No. I see you doing a lot that wasn't even part of the homework, and we're only at the 30-day point. I want to be undressed.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
There's no guarantee that the bank would let her keep the house. I want you to start dreaming what another living situation might look like if it doesn't go your way.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Let's get ready to rumble.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Well, factoids, yes, they'll be there.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
I will tell you that your money is the most expensive thing that you have, and yet most of us treat it without care. We don't know where it went. We just kind of guess about it. And here's the thing, Ken, if I bought you...
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
What would you buy me? What's your favorite luxury brand?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Like fashion. Give me fashion.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Ralph Lauren. If I bought you a brand new Ralph Lauren trench coat, like a really nice one.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
You would treat it with care. It'd be on a hanger.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
But you wouldn't get home, ball it up, throw it in the corner, step on it, wonder where it went.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Wouldn't do yard work in it.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
If I said, Ken, where's your coat? You'd know exactly where it's at.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Meanwhile, most of us with our money, we're like, I don't know where it went. Some of it's in my wallet. Some of it's over here. I don't know what I spent. And it's so expensive. We spend our time, our effort, our sanity, our sleep. We spend so much to get it. And then we just treat it like, I don't know where it went. And so I'll be talking a little bit about that.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
You were, that was a hope. That was a wish. Maybe it disappeared.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Okay. What kind of business is it?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Well, don't look at it as that. Let's change our thought here, because if you're if your goal is to move out, don't think of this as a setback. This is just something that's going to when you deal with it, it's going to get you on a firmer foundation so that when you move out, you're in a great position. So this is like you cleaning house. Right.
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And you know that feeling that you get after you clean everything out up. It's like, OK, everything's in its place. Everything's where it's belong. It belongs. I might be tired, but I feel good. Right. You've accomplished something. Yeah. So let's talk about your debt snowball because you said you've got some medical bills. Are you listing them from smallest to largest?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
Like logically what debt comes next?
The Ramsey Show
Stuck in a Financial Pit? Here’s How to Climb Out and Stay Out
And what's your income? Um, right now a grocer net. What do you bring home? So every month, how much money do you bring home?
The Ramsey Show
Don't Chase Money, Chase Freedom
Hey, what's up guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now, I recommend contacting my friends at Laurel Road today.
The Ramsey Show
Don't Chase Money, Chase Freedom
Through their online application, you can get an initial rate quote in less than five minutes. And if you have a more complex situation, you can schedule 30 minutes to talk to an actual human being. Thank goodness. Laurel Road makes it simple. There are no fees involved and you could save thousands over the life of your loan. Remember, You should only refinance if it makes sense in your situation.
The Ramsey Show
Don't Chase Money, Chase Freedom
So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt. If you want them gone, you can't mess around.
The Ramsey Show
Don't Chase Money, Chase Freedom
Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
And that's got to be the number one thing, because technically, Zachary, when you go to buy a house, you want all of your debt paid off. Then you want to have saved up three to six months of expenses. That's not talking about a down payment. That's just you having money, you know, when you move into this house. And then it's like, OK, I need a down payment.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
So you guys were quite far from being there when you sold the house. What was it going to bring?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Okay, and when you got that gift from your sister, what percentage-wise was that going to be towards your next down payment?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Yeah. Yeah. I think in many ways this was a blessing in disguise because I think you guys are about to get in way too deep. You always want to make sure that you're putting at least five percent down on a house. You want to make sure it's no more than 25 percent of your take home pay. These are the things you want to make sure of. And going forward now is just not the time.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
And hopefully what I would do, what I would do for you guys, if the house that you're in is a nightmare, obviously there's electrical things that need to be fixed. Obviously there's other things. Those are things that you might have to shell out some money to fix in the meantime, because. the solution. And can we see it all the time? My car broke down.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
um but yeah she had asked me that and um i gave her i told her i would call you guys i kind of know the answer i'll get back to you on that babe let's put it on jade and kenneth to see what sure um okay so it's twelve thousand dollars did you say it's for a credit card yeah yeah for a credit card yeah and just to clarify this is a loan so when you say the word loan that makes me sound that makes it sound like somebody's got to pay it back
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
I'm just going to trade that in and trade up and get a new car with payments because we don't have the $2,000 to fix it. So we get a $20,000 car. Right. And the worst, I said this to Dave on Friday, the worst thing is, and I'm not saying that this is you, but you buy $500,000 house, but the AC breaks and you don't have $5,000 to fix it. Right. Happens all the time.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
So push, push, pause on home buying. It's not the time. Yeah. So rebuild, get your life back on track, get the things fixed in the home that's going to make it a safe place for you to live. That's right.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Okay. How old are you? I'm 46. Okay. And what's going on? Tell us some more details.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
So tell me, tell me what you're making now.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Yeah. Okay. $1,200 to $1,400. Tell us what your rent is.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
I'm a barber. And before that, when you were making the 3,800 more, what were you doing?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
What was the difference? Is it just the way that they do it, and the old place was sending more clients your way? Tell us.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
And is it just the salary you get, or is it based on the number of heads you do?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Okay, so... Yeah. OK. The problem, the glaring issue here is the income. And this can't go on because my thought here is if it's 50 percent commission or your your base pay, then that means you're not making the commission, which means there's not enough people coming through, which means essentially you're kind of standing there like waiting for something to do. Right.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Are you spending a lot of your day kind of standing around waiting?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Can I ask you this? How would you feel being in a position where your girlfriend owes you $12,000?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Let's look at this. Okay, you love barbering, but right now barbering is not making you money. And for sure, for certain, I feel like you could go on. What do you do? Are you a braider? Do you do sewings? What do you do?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
OK, OK, OK. So here's the thing. I think barbering goes on the shelf for now because it's not making you money. Maybe you do it on the side and that's your side hustle, but it's not your main core income right now. I want you to get a full-time day job. Go over to Target, go over to Walmart, go over to Wendy's, go over to Chick-fil-A, anything today.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Because you got to make a little bit more than what you're making now and then make barbering the thing that you do on the side on the weekends, early in the morning, if night times don't work for you. That's the only way. Here's the thing. The good news is, You were earning a salary that was making your life run and making your household run. So, you know, you can do it.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
It's just a matter of filling in the puzzle to make sure we're putting the right pieces in to get that income. Let's talk about the car. So the car is not running. That's the only vehicle, correct? Yeah, it's running, but it needs work. Okay, what year is it and what's it worth?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Okay, and what's it worth? Nothing? probably not right now okay i want you to go your homework is to go on kelly blue book and see what is it worth private sale you're probably going to be upside down on it um possibly substantially because i don't know what all you've done with this thing um but we may need to get out of this vehicle because it's costing you what six hundred dollars a month
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Oh my gosh, okay. So yeah, we're going to have to sell this car eventually and probably what you're going to end up doing, Kenna, if you have a minute, if you look this thing up, maybe you can give me a ballpark on it. But by the time we get off this call, maybe we can give you a ballpark on it. But if I were you to get out of that $30,000, what other debt do you have?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
settlement that they were supposed to take that off oh because the institution is not is no longer with us it's not they've come back but it's gone through a lot of stuff uh they've been in the news and everything how much of the 60k is that settlement um all of it all of it okay so you're gonna have to do some due diligence on that and figure out what's going on with that uh because 60,000 is not a lot that you want to lollygag with okay what else is there anything besides that
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Christian's going to take great care of you. If you don't, I don't know if you go to church or not. I want you stepping foot inside of a church this Sunday. I don't care what you believe. You need people around you who want to help you and love on you, and they will do just that.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
But she still got her nails done and still got her hair done.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
So you've got a guaranteed income for the next seven years. That's nice. Okay. Okay, great. So tell me your question.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Well, the good news is you do have a monthly income for the next seven years. So you've got some time to reinvent yourself and figure out what you want to do with life. And if I were you, obviously you don't need $15,000 per month. Figure out what do I need? What's a fair budget for me? Maybe it's $7,000 a month. And then you take the rest and you invest it every single month, right?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
So that's thing one. You've been bought time to figure out a career path for you. And I'm going to toss it to Ken in a moment for that. But let's talk about the rest of the income that you have. So let's say just for... Just to keep it simple, let's say you invest half of what you're getting every single month for the next seven years.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
So around seven and a half thousand dollars or seven and a half thousand dollars. And then you've got one point one million. That's a check, right? Yes. Yes.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Great. I think that's a good place to start. What I want my homework for you is I want you to start learning about investing. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
There we go. I'm with you, Joe. And there's nothing wrong with that. Yeah, you're not a bad guy. There's nothing wrong with that. I do have more questions just because I want to know and I want the people to also get a clear picture of this. First off, we're not big on loaning money here, you know, to a friend, to a family member, somebody loaning money to you.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
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 Jade Warshaw. Next to me is the magnificent Kenneth Coleman.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Debt in general is just we're anti-debt here. So now if you called and said, hey, she's asking me if I can give her this money, that might be a different conversation. And you're like, I have it to give. And if I don't ever receive it back, it's no big deal. Like that might be a totally different conversation. But.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
the aspect of loaning it you're right it does it does put a different taste in your mouth and it's going to make the whole relationship the power shifts right you become the the lender and she becomes not the lender i gotta ask a question joe because jade's here and i love getting the female perspective on this are you worried about her reaction if you tell her
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
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The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
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The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Well, the thing is, we just crumbled your empire. I sense that. You know, you have...
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Yeah, the truth is, Ken is right. If there's anything good about any of these investments, you should be able to sell off some of them, pocket some cash, get your residents paid for, and keep some of the properties. That's what should be happening here. If for some reason you can't sell these to clear the debt, then something really is wrong. This is The Ramsey Show.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Emotional like crying or emotional like I'm going to hit you with this cast iron pan?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Yeah, $220,000. I caught that one. Listen, I'm glad I asked because I was like, how in the world did you do that? All right. So you've got 220 of student loans, nothing else, right?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Okay. And we've got a couple more years of 60,000 salary, 60 to 80 or just 60? Yeah, like 60 to 70 probably. Okay. Yeah, I'm with you. They're not going to become due until after you graduate, right? And then you've got... Well, are they going to be, does it, does your residency count for that or is it separate?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
OK, OK, got it. You know, I would try to pay as much as you can with the salary that you have. I mean, that's all that you can do. But what I really want to address is the fact that you said that you're only 33 years old and you'll be 33 when it's time to retire or when it's time to start saving for retirement. You don't want to be behind. And I whenever I hear that, I kind of just want to.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
let people know like i've been there and you know when my husband and i were paying off our student loan debt which was about 280 000 you know we didn't finish that until we were around your age 33 uh pregnant with my my son and we hadn't started investing at all and i kind of want you to understand that you're going to be okay so let's just pretend i i love doing the investment calculator so let's let's just play around here how how old are you can i ask
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Yeah, I'm 29 right now. Oh, my goodness. You're 29. So let's just say I'm going to plug this in. We have a really cool investment calculator. And I'm just going to say, let's pretend you're 29 years old now. Let's pretend that you plan to retire at age 62. Let's just say that. And you have zero in retirement now, right?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
And let's just say because you're let's say because you're saving for a home, you're not investing the whole 15 percent that we would advise when the time comes. So let's say you're investing 10 percent. So twenty seven hundred dollars a month. Fair. Are you tracking with me? Yep. OK, so we're doing twenty seven hundred. I'm plugging that in.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
And let's just be very conservative and say an eight percent annualized rate of return. Let's calculate that and see what that'll be. So when the time comes, you'll have over five million dollars. Oh, OK. Five million dollars. Yeah, that's a lot. Yeah, I think you're going to be all right. I think you're going to be just fine.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
So that's what I want you to leave here with is, all right, I've got time. I'm doing the MD thing. I'm paying as much as I can. Once I hit this salary, I'll be able to knock out whatever remains. I'll save up three to six months of expenses and baby step three. And by then, like I said, you might be wanting to save for a down payment too.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
And that's baby step 3B, and that comes before you start investing. So you've got time, and you might start to do baby step 3B and baby step 4, which is investing 15% at the same time. Whatever you choose there, you're going to be fine. $5 million, that makes me sleep a lot better at night, Kendall.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
That's if you never make any more money. You're going to pay off your debt.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Yeah, you're going to have to pay for a house when you retire as well.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
No, I don't think that's a stretch.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Yeah, Total Money Makeover. And hey, I want you to head to everydollar.com slash jade and I want you to pick up EveryDollar Premium and it'll give you $15 off. And what I love about EveryDollar Premium is you can kind of, the same way that I plugged in your numbers and gave you that snapshot of what your investing future could look like.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
We've got a financial roadmap planner on there that you can plug in all sorts of numbers to figure out where you want to be and where you're going to meet certain milestones. So you can plug in numbers to figure out how long it would take you to save three to six months of expenses or how long it would take you to save up for a home, those sorts of things. So we'll make sure you have that.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
I mean, there's a lot of reasons, a lot of good reasons. The first reason is your income is your biggest wealth building tool. That's a Dave Ramsey classic quote right there. You need your income available in order to be able to invest it. And for most of us, we're living paycheck to paycheck. We
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
don't have any money left at the end of the month but after we've paid our bills our car note we've got groceries we paid the kids daycare most of us don't feel like we have that breathing room because we have so many debts and bills so the first step is to clear that out so you get your money back in your budget and then you save up three to six months because if you don't save first and you start investing right away if an emergency comes you start pulling from your retirement
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
or you start using credit cards and you go back into debt. So you pay off the debt, you build up the savings, and then, and only then, we start investing. And that's the way it works. If you start doing it out of order, you start messing yourself up, Ken.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
All right. Today's question comes from Ken in Mississippi. My man. All right. He says, I had a work performance evaluation after being at my current company for six months. I got nothing but attaboys and received no criticism for the job I'm doing. Then they offered me a 50 cent raise per hour.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
I just wanted to know how you guys felt about that after a performance review of Nothing But Great Feedback. Am I being selfish or should I just accept it for what it is and hope for better compensation next time?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
No, you got to look out for yourself.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
a good day we're taking calls all afternoon long your life your money hit us with all the questions that you have and we will hit you with an answer a solution a way forward or we'll just spitball creative ideas with you whatever it takes the phone lines are open 888-825-5225 let's get involved alright let's go straight to the phone lines we got Joe he's in Anaheim California what's going on Joe hey how you guys doing doing great how are you
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
it's not good for you it's not good for you yeah that's the thing uh that's a good question ken if you ask and say hey what's going on you know i've done i i've done some research i know the standard is company doing all right and let's say he says well you know no we're not then then it's like okay well am i up for the ride of so sticking out sticking it out until the last part of his question should i hope for better compensation next time
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
I agree exactly with Ken. There's a protection for both of you, legal speaking, you know, when you become married. And so if nothing else, this is a great time to start that conversation of what, you know, the define the relationship. Now's the great time to start talking about that. And I think it will reassure her to say, you know, if the time comes.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
No, brother. It's getting lower. It's only going lower from here probably.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
I love hope. And I think in this case, there's probably a lot more fish in the sea that have fatter pockets when it's time for raise time.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Well, Ken, talk about motivation.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Talk about the role that sort of thing plays in the motivation of the worker.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
So you're saying he's going to start, he would start doing things to throw himself. Yeah.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
It's not just that. That's not my only. Yeah, I love that.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
and you agree that we should be married as I believe that we should be married, then I am happy to take on your debt. It would never be alone. It would be us working together. And, you know, I look forward to that day, but unfortunately we're not there today.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
You got $140,000 up for grabs. Yep. And that leaves you with $50,000 there. Typically what we would say in a time like this where you're kind of in a crisis mode, I would tell you not to do anything major like jump into sums of money. How quickly do you think you can find new work? And is your wife also working? Those are my two questions.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
So will you be able to, if you keep those two side hustles, your wife works and you get laid off, is that enough to cover the bills and cover your life if you pay off the mortgage?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Yeah, I do it. I think so too. I do it. You've still got $50,000. You're still able to make your bills even without this job. And now you're lowering your expenses by not having a mortgage. It's just taxes and insurance. Yeah, I do that.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
You guys are awesome. You've done an excellent, excellent job, and this is the fruit of your labor. Good job.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
I have no idea. The last game I played was Words with Friends, and there was no option to win money. So I'm guessing it's one of these apps, like a candy crunch.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
All right. This is controversial, and I own that.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
I'm going to get you for this. I feel like if you have time to play games on your phone, something's wrong. If you're out working and crushing it and taking care of your family, you don't have time to play games on your phone.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
And to put money into it? Here's my phone right here.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
And I'm like, I just, I can't understand that. I can't watch a show, like watch a show with your spouse or read a book, but to spend money, have a conversation, but to spend money on a game inside your phone, that's called bingo winner.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Yeah, I don't like these apps because they're really more about trading and the idea of I'm putting a little bit here, but I can move it at any time. And that's not our strategy. We are long-term investors. We are people who dollar cost average. We are people who... set it and forget it and keep it there for a long period of time.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
And so that's why I don't like these apps because they don't promote that. So I would invest with my 401k through my job or I'd be a part of a brokerage and have my Roth IRA.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
I hope not. If you sense that, if you sense that now all of a sudden she's trying to, you know, rush you, then I think that could be a bit of a red flag.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
I mean, look at the graphic. Look at the graphic on that thing.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
There you go, Kim. So now I've got a ruling.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Wow, that was something, wasn't it?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Because that's what I'm looking out for. Now, let me then ask you this question. How long have you been dating? Because if you've been taking her for a ride for five years, then she might... It's been a year and a half. Okay. I mean, in my mind... Now's a good time to start talking about it.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Yeah, because you're treating it like she's expendable. And technically... Now, I know this is different. And I am going to step lightly on this. But typically, when you get married, it's the marriage first.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
And then it's the kids. Now... Also, traditionally, the person you're married to is the person you've had children with. So it's easier to make that statement. And I want to I want to hang out there. It is easier to make that statement when that's the case. In your case, I don't think it makes it any less true, but I think it makes it more difficult to stand on that. Yeah.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
And then there's the kid's side of this, too.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
If she does say, well, you know, Joe, I've been trying to get married for the past, you know, six months and you're the one stalling. Like if she starts saying stuff like that, then you have to be open to the things that she's saying as well. At the end of the day, if you both want to be in a married relationship, make steps towards that. And then to Ken's point, that's when things become one.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
So, yeah, she's got to realize that there's a whole life here and there's other people. These are good questions. She's marrying into the family, not just you. And that's the case with anybody. You marry into the family, you marry into the situation, whatever it is. So I think that you guys, Ken is right. There's a lot that must be discussed before this happens. And Matthew, look.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
I've only got two weeks. Oh, wow.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
um i would i would i would pause i would because what i don't want i would never want you to feel like you don't have a choice or like once the wheels are in motion you can't you know put a wood stick in it and grind it to a halt you can you have choices still um you have a lot less choices once you say i do
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
I thought you were going in a different direction with that kid.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
I'm glad you did. I'm glad you said what you said.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
French. Oui, oui. That's what Dave Ramsey would say. This is The Ramsey Show.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Where were you guys when this happened?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Oh, my gosh. And your newborn son?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Oh, my gosh. Thank goodness. But the rest of the house is okay?
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Oh, my. That is crazy. Well, I'm so glad everybody's okay.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
Yeah. um we we just started it so we had the emergency fund but now with the fire and stuff we the thousand dollar emergency fund or yeah yeah thousand dollars okay so um um here's what i think so where are you staying right now right now we're at my parents okay you're at your parents you've blown through most of your thousand dollars what do you have left
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
I think you're a little new to the baby steps, and so I kind of want to reset and get everything on so that you and I are at least on the same footing kind of going forward. I hate that this happened to your house, and I hate that you guys had a plan, and this just threw wrenches all up in that plan.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
However, in one way, like Ken said, you dodged several bullets here, and I'm going to add another bullet to the list that I believe that you dodged. Now, looking at your financial situation, fire aside. Now is not the time for you guys to buy a house.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
So, so, okay. So to address that, um, unless you were going to, unless by selling this house, let's pretend the fire didn't happen for a minute, unless you were going to have this, this huge amount of equity that was going to allow you to get into the next house and pay off, you know, this debt or something like that, that would have been the only way it would have worked out.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
And if you had called us prior to that, I would have said, you could just got to keep looking, look for the right rental because something will come on the market. That's what I would have said to you in that situation. Um, But where you're at now is OK. Insurance is going to cover the rebuild of the master bedroom.
The Ramsey Show
Surviving the Money Storm Starts with Tough Choices
You know, you guys are in a place that, you know, hopefully you're not spending a whole lot staying with family, but you are going to spend some. But you've still got, you know, you're still working. So the income is coming in there. We've got to prioritize this debt.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
And you can't get another car on payments.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Okay. So you said that the brothers left out, but you just said he's going to leave something to the three of you. Is it a different amount of money? Yes. Tell us more.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Well, it is fraud. Let's be clear about that.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
But Dave, I gotta be, I'm the person because I know what they say in the comments. I see what people are asking. And the bigger, the biggest two questions are this. Dave, I've got my debt listed. What if I have a debt that the interest rate is just killing me? Why would I put the lower one first?
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Why would I list them smallest to largest if it means me, you know, having to pay this high interest loan for much longer? What about the math, Dave?
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
It is. So, Dave, get a little bit more tactical because we know, okay, we're listening to small to large. Okay, Dave, I will do the debt snowball method, but where do cars fit into that? You're telling people all the time to sell their car. That's not my smallest debt. Do I do it first? Do I wait until I get to that on the debt snowball? When do I sell my car?
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Yeah. And the only exception would be the IRS. That's the only thing that jumps to the top of the list.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Mark, let me ask a question on your behalf because when I hear your question, I have thoughts of my own because here's the thing. If you live to be 80 and your kids are older when they start receiving this wealth, in some ways that feels a little bit better. It's like, okay, they've got to experience life. They're not dependent on this money at that point.
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Quit Letting Broke People Give You Financial Advice!
But what if the worst were to happen and they got access to this money earlier, right? Maybe when they're in their early 20s. How, Dave, then would you disperse this amount to where it is helpful to them it's not too heavy in one at one season would or would you disperse it what would you do
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Quit Letting Broke People Give You Financial Advice!
But is there a limit that you'd give a 25-year-old as a disbursement?
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Well, I think, too, we're used to seeing it's almost like we're filtering it through. Oh, you see a lottery winner. They win a bunch of money. They have this huge amount of money that comes into their life or an athlete who has this huge amount of money come into their life. And before you know it, they've.
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Quit Letting Broke People Give You Financial Advice!
Yes. So maybe the converse, because here's where I'm getting at.
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Quit Letting Broke People Give You Financial Advice!
I agree with what Dave said, but it's almost like he's not dealing with the problem now, but the problem will be yours when dad passes away because your brother, I don't know what kind of guy your brother is, but I would not want to, if I were you, I would not want to be in this situation where someone could feel resentment towards me for something that someone else didn't deal with.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
And now you're in the situation to have to say, well, I don't know why he did this. And that weight can be on you. That's the part of this that I don't like if I were sitting in your shoes.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Is it through your employer? Does your employer offer it? Does hers offer it? Or is this you guys just out in the market on your own?
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
When I was shopping for insurance back in the day when I was pregnant, I was looking at, like Dave said, I was looking at high deductible plans so I could have the HSA. And I cared about what the out-of-pocket max is. Because when you are having a kid, you don't know all that may arise.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
And so just knowing and having that piece of saying, okay, I know that no matter what, when the rubber meets the road, this is my out-of-pocket max, my stop loss. That also helped me have some peace about it and make a choice.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Yes, that's going to be the narrative. But what about this? What threw me on what you said is the safety. He said if he's afraid for your safety, what kind of guy is your brother? That he would say that.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Okay, today's question comes from Ethan in South Carolina. He says, my wife and I are both 28 and just got married. I am an employee benefits consultant and she's a trauma nurse. Together we make about 200,000 before any commissions that I receive. We also are debt-free. We have about 150,000 in investments, 30,000 in a money market account, and are investing our 15% towards retirement. Very good.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
If I were your son... How would you recommend buying a house? We have been waiting for interest rates and housing prices to drop, but I always hear there's never a perfect time to buy. Is now the time for us to jump in? Yeah, Ethan, I think you're feeling the way a lot of people are feeling that are in your shoes, right? They're saying, okay, these interest rates are high. Should I wait?
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Like, truthfully, I have the money or I could start to save up more money, but I don't know is now the right time. And I would say the right time to buy a house is when you can afford it. Like not based on the market, not based on interest rates. Otherwise, you're trying to like play a timing game.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
But if you can afford to save the down payment and you can afford to get a mortgage where the payment is no more than 25 percent of your take home pay all in. then get the house. And later on, if mortgage rates go down, you can always refinance, right? Like there's, you have options. You don't have to stay in that high interest rate. So for you guys, I think this is great. You have a great income.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
It sounds like you've got your three to six months of expenses. You are investing. Yeah, you're doing really, really well. At this point, I would start saving up because it sounds like the $30,000 you have in the money market is your emergency fund, and you should not use your emergency fund as a down payment. So I just want to make that clear.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Yeah, that's a good point, Dave. It doesn't say, but if that $150,000 is in like stocks or just kind of like a brokerage sitting there, you could definitely use that, and I would.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
And if you want to get a pulse on what's going on in the market and you want to start learning more and leaning into that process and learning, you should visit our real estate home base because you can go on there.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
And I mean, it's just chock full of all the information that you're going to need to kind of see what's going on, learn about areas that you don't feel as confident in and ultimately get set up with one of our Ramsey trusted real estate agents that can help you through the entire process. So that's what I would do if I were in your shoes or if you were my son, which is.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
I love when you talk about the 80s rates.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
They want to know how you did it.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Why aren't you married making $100,000 a year at 23 and pay these debts off?
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
What's the difference in your mind? Because your actions aren't showing difference. Yeah, because your actions aren't showing difference.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Why can't you just get an apartment like everybody else?
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Why? Where did those come from, and what are you using them for?
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
That is a good principle of life, Dave. Yes. Oh, boy.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Do you want to talk about the donkeys?
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Yeah. I don't even know how you get into how that becomes your dream in life.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Do you make any money? What's your income?
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Okay. Do you have any money saved?
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Okay. So the car, you owe $41,000 on it. If you sold it private sale, what's it worth?
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Okay, but let's look at, that's your homework, is to look at the Kelley Blue Book value if you did private sale, because you're going to get more for it.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
$30,500. Okay. If I were in your shoes... I can't.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
Okay, so you got $500 to spare. You eat a little bit. You pay your insurance. You get gas. You've got nothing left.
The Ramsey Show
Quit Letting Broke People Give You Financial Advice!
buy a car yeah are you are you in school full-time yeah are you on campus you're at home or at home uh campus so like where do i live at home okay how close are you to campus what i'm getting at is you might go through two months where you don't have a vehicle and you make it work and instead of using that thousand dollars a month to pay for a car note you use it to save up and get yourself a little beater car is what we're saying one of your buddies take it away from campus
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Hey guys, this is Jade Warshaw. Listen, I get it. The student loan situation is bananas, but it's time to make progress, not excuses. So if your payment and interest rate have you treading water, refinancing could be the solution for you. Look, if I were in your shoes, I would contact Laurel Road today and get a free 30-minute consultation.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
You'll work with a student loan expert and you'll go over your refinancing options. Hey, for refinancing to make sense, you've got to check certain boxes like making a good income. And bottom line, Ramsey's advice is that you only refinance if you can get a lower rate or a shorter term. Remember, the point is to pay off debt faster. Maybe you just need to keep rocking the debt snowball.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
But if refinancing does make sense for you, Laurel Road offers low competitive rates and interest rate discounts are available for stuff like auto pay. Listen, you can't mess around with student loans. If you want them gone, you got to go hard. So go to laurelroad.com slash Ramsey to find out more and schedule your free 30 minute consultation. That's laurelroad.com slash Ramsey.
The Ramsey Show
Don’t Become a Victim of Your Circumstances
Laurel Road is a brand of Key Bank National Association.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Yeah, Randy, if I'm you, man. If I'm you, I'm... Go ahead.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Dude, I'm praying for you now, and I'm going to keep praying for you. I don't think the Lord is going to let you out of my spirit anytime soon. So just know, man, our thoughts and prayers are with you. This is a tough, tough thing to go through. I admire you for trying to get the financial things in order so that your family is not feeling the burden of it.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
And, you know, but I would say at this point, man, go, go enjoy life, go live to the fullest, make sure that you're around your loved ones. And don't spend your days fighting this. Don't spend your life, like fight the cancer, but don't fight people. You know what I'm saying? Like, this is not the time you want to spend tangled up in a divorce war over assets and all these things.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Let her go on and Be with old boy and you just enjoy your time on this earth.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
You're listening to The Ramsey Show. Let's do that Ramsey Show question of the day. It's sponsored by YRefi. Hey, if you're buried in defaulted private student loans, just remember you're not alone. Reach out to YRefi to see if they can build a custom plan to help you dig out. Visit YRefi.com slash Ramsey today. That's Y-R-E-F-Y dot com slash Ramsey. It may not be available in all states.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
From the Ramsey Network, it's the Ramsey Show. The only live show where we talk about your life and your money with actual callers calling in, George. I am your host, Jade Warshaw. Next to me, as I just said, George. As in George Camel.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Man, Lucas turned it on us. It's getting Maury Povich up in here.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I know, that's right. When the callers call in, usually I'm like, yep, done that.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
So but but shoot straight with like level with this. If you had to say, here's what I really think the problem is, because I have a feeling that, you know, you can usually look at a situation and go, even though I don't like this, this is probably what's going on. What do you think is probably going on, whether you like it or not?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Is this why you have a heart for insurance to this day?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I've never heard that before.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Well, I bet. OK, speaking of heart palpitations, I'll tell you mine. So I thought about this and you guys already know, like if you've been listening, you know, I had full scholarships yesterday. And I still took out student loans just to live on that. That's probably my dumbest like financial mistake as far as like debt products and things like that.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
But really, I was thinking about this because I saw the question of the day during the break. And this is probably the dumbest thing I've ever done financially, like long term. Well, you know, George, Sam and I used to work on cruise ships and week every week we'd fly somewhere different abroad, not throughout the United States, like abroad.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Like you go to China and then you go to Japan and then you go to Sri Lanka and then you go to Alaska. Right. You're always going. But we were broke. And I'm talking about broke, broke. You guys know we had the debt and we would go there. We would go fly literally with like dollars and like ten dollars in our account, like dollars.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
And like we'd be in the in the airport, like splitting a pretzel, like broke, broke. But we were out making money so we could pay off this debt. And we just got I think you just you can get used to anything. So I just think we were used to not living on the edge. Yeah. Yes. Living on a prayer, it sounds like. Basically.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
And so one time we'd gone to Argentina and it was our first time and we didn't know. So certain countries, when you come in and then exit, you have to pay a fee that's called a reciprocity fee. That feels like a scam. Every country's different. And the fee was $25 per person. When I tell you we didn't have it, I'm telling you, we didn't have it.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
And we were like standing there looking at each other like, do you have it? Because I don't have it. Like we were about to spend a night in Argentina. Luckily... How'd you get out of that? Yo, this is so desperate. I'm just mad that I'm telling you.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
No, it was one of those points where it's like, okay, I've got like $18 on this card. You can try to run it and I hope it'll go through. I'm okay if it ends up on an overdraft. Just try it.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Do you know what went through? And I I shout like I praised the Lord so hard because, man, it was just one of the. And yeah, we got hit with the overdraw, all that stuff. But that was one of those aha moments that I was like, oh, God, like we're broke. And we almost ended up like locked up abroad. That would have been a much more wild story.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Well, let me tell you about being an Argentinian citizen. Let me tell you about being in Istanbul. Gosh, I can't talk. Istanbul at gunpoint. I'll tell you that story one time.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
So we've all done dumb stuff, whether it's like a one moment kind of thing or like an insurance thing or just long term, just living on the edge like we talked about. So you're not alone. Just don't make the same mistake twice. And if you can, avoid it. That's right. Because now when I go to Argentina, I got deeper pockets.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I know. That's right. Give me the plant-based variety. Let's go to the phone lines. We got Annie, who's in Mobile, Alabama. Annie, how can we help today?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
How old how how long does he plan to work until you guys choose one of these retirement paths?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Oh, wow. And do you think that, okay, regardless of which way you go, are you okay with waiting till 67 to start living that life? Or do you guys want to start living that life simultaneously? What does that mean?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
OK, for the clock, Annie, let me get you at this. So the most important thing that I'd be looking at is getting that house paid off before you guys retire. That's going to give you the freedom to choose one of these paths. OK. The idea of moving somewhere more expensive where you might have to take on a bigger mortgage. I don't like that idea. I want you to be mortgage free.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
So whatever you do, make sure it's debt free.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Graduation doesn't come with a GPS. I wish it did. But a lot of students are walking into the real world with no clue on what direction they should actually go. So the Get Clear Career Assessment is part of the Find the Work You're Wired to Do student edition. And it's here. It's here for you. It will help your student.
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Everyone Makes Financial Mistakes – Don’t Let Yours Define You
get clarity, and build a real plan that they can be confident in, whether it's choosing a major, choosing a trade, or getting their first job. The good news is it's only $34.99, and this assessment will help them identify their strengths, while the book part of it will help them understand the results and figure out what's next.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
So again, the get clear assessment, the career part is the career assessment, and then find the work you're wired to do is the book part, okay? And this is really, really, really great. You can get a copy today at ramseysolutions.com slash store. Or if you're watching on YouTube or podcast, you can click the link in the description to help you so that you can get started.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
George, I wish I had that when I was a young guy.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I knew people who went to school just to buy themselves time.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Oh, man. They sure did.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Oh, all right. Hopefully Seth didn't do that. Seth from Coeur d'Alene. Is that right? Idaho?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
All right. Let's go with Coeur d'Alene. Did I say it right, Seth?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
All right. Yes. All right. Social studies for the win. How can we help today?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I mean, because they're in the same situation. They're making sure their deal goes through, right? So that has the potential to have a major domino effect. And I would not say, and George, chime in, Just that the fact that it's taking 40 days, I wouldn't necessarily say that, oh, my gosh, this thing's not going to happen.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Hey, thanks for the call. We've got Alicia. She's in Augusta, Georgia. Alicia, how can we help today?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Because the truth is, yeah, your buyers are now waiting for their contingent. You know what I'm saying? Somebody might have made a contingent offer on their home. So this this does have some issues. Now, what you could ask is if your realtor can say, hey, if we go under contract with someone, is there a way to say we're also open to other offers until theirs and then like put a stop loss on it?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Right. Listen, it doesn't matter what she said. She's not the one who has to sleep in your bed at night, right? It's really easy for other people to tell you to keep burdens that are not their own, right? Right.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Yeah. I mean, what will you make if the first property that's plus $350, what's that one worth if you were to sell it today? What would you pocket? Yeah.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Okay, and that's for one year. Okay, so for that reason alone, that's the only reason that you might push this a year is because you don't want to break the lease. But the math there is pretty simple. You sell that one, you take the money, and if the other one is still upside down, you clear the balance with that lease.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
the money from the previous sale and then whatever is left, you, you put it on to whatever baby step you're on. Right.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Is any of that your three to six, like what of that is what tagged as an emergency fund?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Okay. Yeah. I'd 100% liquidate that because you're at, I would 100% that do that because in many ways you're in baby step two, right? We're clearing out this debt. And my guess is you probably have other debt laying around as well.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Listen, you're on the right track. I think what George uncovered is great. You've got the money sitting there. Sell that second house today. And as soon as you can, sell the other San Antonio house so that you're not long-distance. landlords simplify your life that's the key
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
You see what I'm saying?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Thanks for hanging out with us here on The Ramsey Show on The Ramsey Network. This is a live show about your life and your money. You get to call in. You get to be the subject of discussion. We won't make fun of you. You might feel a little bad sometimes afterwards, but I promise you, you'll leave with the next step.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
A little sting there. But if you want to get involved, you can call in. The number is 888-825-5225. And we will get you on the line. If you didn't know, I'm Jade Warshaw. Next to me is George Camel. Let's get it started. Jeff in Columbia, South Carolina is on the line. Hey, Jeff.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Right. But you can still market as accepting offers. Exactly. You can make a deal to where it's not like that. to where it still looks like it's open for anybody to make an offer. And then ask your realtor to say, okay, now we need to put a stop loss on this. Like you have 60, if it's a contingency, you have 60 days or you have 90 days. And then after 90 days, we get to go to the next offer.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Is there a debit card that could do the same thing? Have you looked into it?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
The George taking calls about your life and money. Like I said, you can call in at any point. The number 888-825-5225. If you call in and you have to leave a message, that's a good thing. It means we'll try to get you on the show at a later date. We're going to go straight to the phone lines where we have Brenda in Dallas, Texas. Brenda, how can we help today?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
That way you're always making sure you have people, you know, priming the pump here and you can make this go faster. The other thing is, have you had the same realtor the whole time? Because I might be thinking about kicking that one to the curb and getting the Ramsey trusted realtor.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I mean, the thought is, I know there are debit cards that'll give you cash back. He'd have to be, instead of floating that cash flow, he'd have to pay the cash flow up front. I don't know if they link directly to his investments. He might have to then take the money and invest it.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
There's a lot more cash to be had, I suppose.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Especially depending on the purchase. Things like, I've seen the studies where going through the drive-thru, the percentage more that you spend-
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Or buying concert tickets or, you know, and those are the things that we tend to put on credit cards. Right. It's like, oh, you know, Taylor's Beyonce's in town. You know, she's only going to do, you know, Cowboy Carter one time. So I'm just going to, you know, go ham. And then you end up spending way more. You get tickets that otherwise you would never have considered getting.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
But because it's on the plastic, you're like, hey, let me on. Let me on on the floor.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I'm going to need you to break down TLDR.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
What kind of delay? What's that mean?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
All right, George, it's time to chop it up a little bit.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
People want to know. They want to know the raw and the real. Am I doing all right? Where should I be for my age is what people want to know. Like, am I doing okay financially? They need kind of a measuring stick. Yeah. How are other people my age doing? Where do I fall in line?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Yeah, you'd have to do new pictures. You can't take the old guy's work. But if you really feel like, I mean, you're the one calling us, right? Saying something's not right. And they are the professional. Yeah. Not you. So they should be getting to the bottom of this a lot faster. Not us.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
How we doing, America?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Well, wait, can I roll it back? Before we do this, let me roll it back. Can you explain net worth first? That's a good call.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Please talk about it.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
That feels right. Because this is like I maybe avoided debt or I had time to pay whatever debt I had off. And now I just have my old car. And I just started contributing to a 401k.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I thought there would be some negatives on here. I'm surprised I didn't see any minus signs. Well, that's the truth.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
George, I'm concerned with where this is going. I'm afraid people are going to be in a deep, dark pit when this is over.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Not you having to call into a radio show for us to tell you what a realtor should have been telling you, basically, is what I'm saying. Yeah.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Just smile when you say it.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
You got to catch up, yes. You can, but you won't have as much money as you would have had, but you could still have enough.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Yeah. In today's world, yes.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Or you thought social security was going to get you. Yeah.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Yeah, which is why you really did say it. Like in your 30s, there's, if you're in your 30s now, there's so much time to take advantage of this. Like now is not the time to like kick the can down the road. Really get serious because that time is really going to be your best friend when it comes to compound growth. And let me just, let me talk to the people because some people heard this.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
They're deflated. Yeah, man, they're a sad sack right now. And because it does, you're like, man, why did you have to compare me to these other folks who are doing so much? But a word, George, on comparison. Because I do think that there's, like, comparison in a bad way, and I think there's comparison in a good way.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
And the way that I like to think of it, George, is be curious, not critical, right? Like, this is not a time for you to be, like, so critical on yourself that you feel bad. But be very curious about how these people that George is talking about have achieved this. And so it really is about instead of being like, well, it must be nice, you know, that – I mean, that is –
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Yeah. Let's be let's be curious. Let's be inquisitive and let's ask the right questions, because the truth is, if they did it, you can do it. It's just how did they do it? We're probably going about it the wrong way. So for me, when I saw like I'm in my 20s and 30s with a negative net worth. because at least none of these are negative.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I'm like, okay, let me look at someone who's doing this and ask the right questions into Ramsey Solutions. How do I pay off my debt? How do I get in a position where I can build $1,000 of savings? How do I become a person who makes good habits and follows their budgets? How did you build that business? How did you, you know what I'm saying?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
So start looking at the people in your life who might be hitting the arrows on some of these medians and average net worths and start asking them the right questions and listening to the show and Folks like George Campbell is a great place to start.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
We'll be right back. I recommend contacting my friends at Laurel Road today. Through their online application, you can get an initial rate quote in less than five minutes. And if you have a more complex situation, you can schedule 30 minutes to talk to an actual human being. Thank goodness. Laurel Road makes it simple.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
There are no fees involved and you could save thousands over the life of your loan. Remember... You should only refinance if it makes sense in your situation.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from your student loan debt. If you want it gone, you can't mess around.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
If you're tired of living paycheck to paycheck and wondering where the heck's your money's going, your first step is to get on a budget, fam. Our team is hosting a free budgeting training this month. You'll learn step by step how to make and stick to a budget using my favorite budget of all time, the only budget I ever use, every dollar. Plus, you can get the biggest budgeting questions answered.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
It's in a live Q&A format. So it's you asking the question and hearing back in real time. The spots are limited, though. So if you want to sign up, you can do that for free at every dollar dot com slash webinar. Get involved. Let's go to Cassie in San Diego, California. Hi, Cassie.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
OK, tell us tell us the back story.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Especially knowing that you're under contract, I would think.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I mean, they're going to take you for a ride. You're going to have to beat them over the head over and over. And at the end of the day, it's like, listen, guy, I don't have any money. My car got repoed. What you're getting are my last dollars. And this is it. There's no more where that came from. Right? That's the attitude you've got to have.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Good. And what are your other debts?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
How quickly could you stack up half of this? Half of the $19,000? Yeah, $7,000 or $8,000. How quickly could you do that?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Why would you take the only fish on the line, off the line?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Yeah, I feel like the emotional toll on that is just as painful as the financial toll, right? Yeah. Oh, my goodness. All right. Let's take another question. This one's going to come straight from the interwebs, as Dr. John Deloney would say. Let's go with Morgan from Instagram. She says, when entering baby step five, George, which is saving for kids college, how much do you save for each kid?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
That's true. But the weird thing, and it's not weird, but the difference between Baby Step 5 versus some of our other steps is we tell you, Baby Step 1, it's $1,000. Baby Step 4, we tell you, it's 15%, right? We're giving you all these percentages. And this is the one outlier where we're kind of saying, hey, go out there. Pick it for yourself, whatever you have left over.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
And I will add this caveat, George. Some folks, they're like, I don't really want to cover the bill. I'm more focused on retirement right now, or I'm more focused on... You know what I mean? And you don't have as much margin as you thought that you would have to spend on that. And I would say that that's also okay, too. It's not required that you pay for your kid's college.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I would say the only requirement there is to make sure that you have... Have a conversation. Yes. And set very, very clear expectations for both of you. And it's out in the open so they know, hey, there's no fund here. You got to get a scholarship or you've got to work.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
And honestly, if you did overfund it and you were like, there's too much and I want this money, the fee isn't that bad.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
We're so glad you're here listening to the show and enjoying the show. And I hope if that's true, you're also sharing the show. You're telling some folks in your life about, you know, the things we talk about here on the show and how they've affected your life. That's really the best thing that you could do for us.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
If you are considering yourself a fan of the Ramsey Network, tell somebody about it. You could, you know, drop a link in a text message and send it to somebody or email them or really just word of mouth, George.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Yeah. What do you love right now? What are you listening to, watching?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I'm putting folks on the spot.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
But they need to change it to where it shows as totally open. And that is 100%. My husband and I have done that. It's possible to do that. And I also want to encourage you that 40 days for the contingent offer, if it's taken them 40 days, let's pretend that your contingent offer saw your house, loved it, made an offer, and then the next day put their house on the market, right? It's not uncommon.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Uh, I've been watching the NBA finals and I'm enjoying that or, you know, playoffs, I should say, but yeah, it's good. It's not a podcast, but I would suggest it and I'm sharing it with you, my friend.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I don't know that there's anything they can do about that. Yeah.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I'm sorry. Oh, boy. Let's go to Randy. He's in Greensboro, North Carolina. Come on and raise up. What's up, Randy?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I don't think there's anything morally wrong about that.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
If you I would say this, Randy, before you do it, just take a moment as much as you can and imagine how you'll feel if today you let go of that ring and it was gone. How would you feel? That would be my only thought is, does that feel better for you or does that feel like because if it feels a little bit like, oh, like I don't think I do it just for that reason, not because of anything moral.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
That's essentially what happened. Exactly. And what I want to give you hope for is that the average time for a house to be on a market before it sells is 50 days.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
And what's the difference between the amounts? Will yours be more, or will it be less than hers?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
And will that be enough to cover your lifestyle?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Okay. Yeah. With this ring, I don't think there's anything on fire. My guess is you could look around. If you really needed the six thousand dollars, you might look around the house and find other things worth value that you could. You know what I'm saying? That you could sell to accumulate that money. That's not as dear to your heart as those rings.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
okay so you're at 40 you've got a fish on the line don't throw it back because it's squirming a little bit just just keep reeling it in and while you reel it in make sure that your house is showing is available on all the different apps out there so that people know your realtor should know to do this and if not you need to be getting all up in their grill about this george you gotta fight fight and claw your way out of this thing don't go through foreclosure no more hard money loans
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I mean, at the end of the day, you can do what you feel is best. But yeah, if I if it was still like heart wrenching for me to part with it, I don't know that I would.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I'd be... Listen, if Sam Warshaw tried to sell my ring, I would haunt him from beyond the grave. I'd be like, not you, Sam. No.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Give me the ring. Yeah, for sure.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I have to pick up some, some more work here or there, which I feel like he could do. Yeah. He still seemed like a young, a young, a young guy. All right. Let's talk to, you know, let's go back to these social questions. Cause I really liked these George. Okay. So let's take it to you decide Facebook or Instagram.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
That tells me a lot about you at a core level. All right. Shannon from Facebook asks, I told my teenage daughters they need to get jobs for their spending money this summer. One daughter refuses to work. I was thinking about giving her just $20 a week. Would that be okay, or should I just stick to my guns about the whole job thing?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
She says, I refuse to work.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Well, there is a big difference between 13 versus 17, I do think. But either way, I still think I'm making it work.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Ooh, I disagree. I think I would say if you work, I will supplement your pay with the $20 a week.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
You make... Now, wait a minute.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
That feels like a lot.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Here's what I don't like.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Here's what I don't like about it. The daughter, she used some pretty strong language when she said my daughter refuses to work. That's where the hardheaded part of me would come out and be like, oh, you refuse. Okay. I refuse. Like I feel like I would get very.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
See, I was. I did work my summers.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Well, my parents just didn't hand out money. My parents have never just handed us money. And so I was like, I got to get a job at Kroger. They would hire me, and so I went there. And then the next summer, I did that two summers, and I worked at the YMCA once. We just...
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
That's all you needed, just a Nature Valley Granola bar.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Thanks for listening.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Straight to the phone lines we go. We got Randy in St. Louis, Missouri. Randy, how can we help you out?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Okay. This is a lot. You just found out about this diagnosis how long ago?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Okay. Have you started treatment or not yet?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
So when you say they're not even attempting to treat this, is that what you're saying?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Okay. Do you have kids?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Okay. I think that my debt and my bills is the last thing I'm thinking about. If I found myself in your shoes.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
So whatever you have that's of value will be sold to pay your debts, and whatever doesn't get paid is just a washout.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
And upon divorce, you can't switch the beneficiary?
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
At the very least, I'd want to speak to somebody about... designating some of it just for your last, you know, for burial and funeral and all of that. If you can specify maybe even in your will that of that 250 X amount is even for her to know that way, the executor of the will will make sure that she carries that out. Possibly that might be a loophole.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
I'm not a lawyer, so I don't know, but that could be a way that you could at least make sure those costs are not put upon your parents and that you're taking care of that through that money.
The Ramsey Show
Everyone Makes Financial Mistakes – Don’t Let Yours Define You
Does she know about your health?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
How long did she save up her fun money to do this?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Was the fun money. I just have a question. Was the fun money that something that you guys decided was going to be on the budget and it is, and you have a line item too.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Okay. And you've been spending yours on what you consider fun.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Okay, and then she's, instead of spending hers on what she would consider fun, whether it be for her or both of you, she's stacked it up for this gift.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
And what you're thinking is, don't stack it up for the gift. If you're going to do anything, put it on the debt.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Well, because you guys said you had fun money.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Well, I'm not saying that that's right, but I am saying that you guys created a budget. You both shook and agree on it. You spent your money on one way, and now that you see she's stacked up hers, you're like, ooh, wait a minute. The truth is, Dave is right. You guys shouldn't have been doing fun money to begin with if you're paying off debt.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
You would have been done by now.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
All right. Today's question comes from Rick in Michigan. My wife and I have no debt, a fully funded emergency fund, a paid off house, and we have about $150,000 saved for a down payment on our next home. We follow the Ramsey plan and we are Baby Steps millionaires. Congrats. We are so close to having enough to pay for the next house in cash between savings and the proceeds from our current house.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
However, my wife wants to move sooner than later. She has suggested getting a mortgage again and keeping some of the down payment savings to use for monthly payments and other such ideas. I love my wife, but I know these aren't great financial decisions. I don't want to buy a house in a manner that's not financially responsible and then resent her for pressuring me into it. Am I being a jerk here?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
No, I think you're being a really smart guy. And I think you're holding up your end of what you guys said the deal is because when you walk through the baby steps, you know, there's seven of them. And part of that is you kind of draw this line in the sand and you go, okay, like we're not people that borrow money anymore, right?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
And in this case, it would be really frivolous and stupid for you guys to go into debt for a mortgage when you don't need to. That's just, I mean, truly, that's stupid. You don't need to do it. So I think that you're right. You have some conversations to have with your wife. Something is pulling her in another direction. I don't know if it's comparison.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
I don't know if it's something she saw some ladies at church doing. I don't know. Something is pulling her in a direction.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
all it does is stir stir you up and cause you act like a four-year-old that's such a good point you're right they're looking at houses too soon you need to wait till you have the money
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Yeah, she's I'm reading this again. She's desperate. She's like, oh, she saw something.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Well, what are the limitations that you face because of the brain injury?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
And what type of franchise are you trying to open up?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Okay. And so you're saying I can have her hire a bunch of cleaners and I'll just run the thing and she's my partner?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Interesting. I'm not going to lie. I'm hung up on the two hours a day, four to five days a month. Now, I'm not saying that your screen says, is it possible to make six figures again? I think so. But this is definitely a limitation. Dave, what do you think?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
What made you choose housecleaning? Is that something you're passionate about and know about, or is it just because you have someone who is a possible partner?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Okay. And she would be right about that?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
There's obviously something that you want to do. What do you want to do?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Man. How much did you pay for that truck?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
So you're getting a better deal selling it back to them?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
I mean, it's similar to what we would tell anybody if they were upside down in a car. We tell them to go to the bank, get a loan, clear the difference, and get something in cash, and this is very similar to that.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Yeah, and you might have something, I don't know, just talking to you, you might have something laying around that you could sell to get the money to clear the difference without taking out a loan. Just a thought.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Oh, no, that guy sounds like he's got a lot of little things with engines laying around that he could sell.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Now, if you just in your own heart, you thought, man, I want to give I want to share this. And it has nothing to do with you feeling.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
That's just because you're feeling some type of way because you lost your job?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Yeah, and you really have to think through this because the point of, part of the point of the order of these steps is you wanna actually finish paying off the debt. If you were to do these out of order, number one, it'd take you forever to save up the three to six months because you're still paying payments every month. So it would elongate that part of the process. And then,
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
People would be like, oh, I got three to six months. I can just let that debt simmer.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
And then before you know it, you haven't done anything. And so do it the right way. It works for a reason. And, you know, you're not the exception of the millions of people who've done this.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Hey guys, what's up? It's Jade. Look, let's be real. With everything that's been going on, staying on track with your money gets tough. Between bills, trying to pay off debt, saving money, honestly, it's a lot. And I've been there. That's why I'm excited to tell you that Dave Ramsey and I are hosting a free live stream on January 23rd to help you take control of your money in 2025.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Plus, Rachel Cruz and George Camel are also going to join us for a live Q&A where you can finally get your money questions answered on the spot. And check this out. You could win $4,000 in cash. It's a giveaway. Imagine what you could do with all that money. All you've got to do to enter the giveaway is to sign up for the live stream. That's it.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
So go to ramseysolutions.com slash live stream and sign up today.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Okay. Do you guys have debt?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Do you have an emergency fund saved?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Well, a vacation's not an emergency, so I would not dig into the emergency fund to take a vacation ever. What does she want to spend?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Okay. So have you run out the numbers on what? Here's the thing. I'm not saying no, and I'm not saying when, but you can decide when. You can look at this and go, okay, my wife wants to take a vacation. We've never taken a vacation. We're debt-free. We have an emergency fund. We're also trying to move in this house. What can that look like and when is the time to take it?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Because if you just tell her no and you kind of just swat it away like a gnat, she's going to get irritated.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
That's right. And if she's laid out how you guys can do this, then... And it's wise. And it's wise, then you've also got to be open to going... You've got to be a grown-up, though.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Yeah, they don't strike me as people who are not smart with their money. They paid off their debt. They've got an emergency fund. Looks like they're trying to do this house the right way. I have a feeling that he's laser focused and sometimes has to remember like, hey, we can... We can do some things sometimes. That's just my spidey sense.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Your credits, when you stop borrowing money, your credit score will go away. It's not going to plummet. It's just going to disappear. But to Dave's point, he's right. There are plenty of places that you don't need a credit score to go. And so you'll just do your due diligence and find one.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
And by the way, that's a great litmus test, because when you move into an apartment, you want to have a super or whoever's in charge that uses their brain because things are going to happen. You're going to need to talk to them about things and you want something fixed. Right. You want somebody who uses their brain. So that's a great way to start.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Yeah, George did one on the fine print, remember? Yeah, that's the one I remember. And he did. He went out and he was able to call him and there were plenty that did. You just have to call around a little bit. It's not going to be the first. It may not be the first doorstep that you go to. That's all.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
I don't either, but I will say, I mean, I will say if I was left, there's four of us, if I was left on my dad's insurance policy, $100,000, and if I just was privy to the fact that my siblings got nothing, I think that I would be inclined to divvy it up. And I'm not saying that that's right or wrong. I just can understand. I can understand it. And I agree with you, Dave.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
I don't think it should be done out of guilt at all. You should never do any generosity without a cheerful heart, period. But... I can understand it. And I think I can understand it.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
I hate that for you guys.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
That's tough stuff. There are times, though, I mean, it's good to reiterate, there are things that pop up in life that supersede what you're trying to do financially.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Ah, question. All right. Today's Ramsey Network app question is from Davey. He says, I'm wondering why baby step one isn't start your first budget. and giving every dollar a name. Then baby step two would be save your $1,000 emergency fund and so on. Since you always emphasize budgeting first, why isn't that number one? I don't know why this is making me laugh.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
I mean, yeah, budgeting is a budget. You're right. Budgeting is the foundation of everything we teach. Matter of fact, some folks in here that I work with, we call it like baby step zero or just kind of like there is that thought to it. It is the foundation. But I mean, listen, the reason it's not like that is because it's not like that.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
You do it the minute you find out about it.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
And yet you still, you bought a $56,000 car. What's your question?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Got it. And she told you to buy the $56,000 car.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
You got two young kids. And was it your wife that wanted you to get the car and you felt pressure from her?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Yeah, we got to reframe it. We got to reframe what's in your mind because I think in your mind you thought somehow that was going to give you some sort of freedom. I don't know how, but maybe you were borrowing her vehicle. I don't know, but the truth is... You could get a $5,600 car. Yes. You got to sell that car immediately.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Don't sell it to CarMax because they're not going to give you the best value. You need to do a private sale. So look it up. My guess is that you'll get pretty close to the 56 that you owe on it. You have to get out of this immediately. And... It sounds like there's not the right boundaries between your fiance's mother and you. And so you and your fiance are going to have to deal with that.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
You've got two under two. So I heard you say that I think you were laid off or between jobs. So you've got to get a job very quickly. So your homework list is I sell the car private sale. I get a job. I draw boundaries with the people who are not...
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Yeah. And I think that's the thing. She knows what's really at play here. And I think that you were right on.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
And you need to, and this is for anybody listening who feels discombobulated like my guy who was just on the phone. You got to sit down and have a moment with yourself. Maybe you have a journal. Maybe you just, you got, if you don't sit and say why, what was my part in all of this? You won't change.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
If you're saying, well, it happened because we got two under two and it happened because I got laid off and it happened because grandma and it happened because my mother-in-law, then you're never at fault. And that means you never have to change. And that's not how life works. You're going to have to sit down and go, okay, what did I do? I'm the one that said, yeah, I'll sign my name right here.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
That's the truth. You're the one who signed for the car, so you're responsible for it.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
That's right. You won't do it again if you take responsibility for it.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
And then what would the prescription cost on your insurance?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
Yeah, but then you could look and see how your prescriptions are covered. Have you called and just asked them and said, hey, I'm getting married. I'm moving my wife to my insurance. Here's the medications that she's on. What would it cost me?
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
I think that's your first step.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
That's right. And even if even if you do call and find out that the prescriptions are covered with her health conditions, you're always going to want your deductible laying around because you never know what's going to pop up that's going to send somebody to the ER or they'll have to have a procedure done. So that's something that you really should weigh heavily.
The Ramsey Show
Broke Is Normal—Do You Really Want to Be Like Everyone Else?
And we say it all the time when people have three to six months of emergency funds. One of the things you weigh in is the health of you or your spouse. So something to think about.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
Hey, what's up guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now,
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
i recommend contacting my friends at laurel road today through their online application you can get an initial rate quote in less than five minutes and if you have a more complex situation you can schedule 30 minutes to talk to an actual human being thank goodness laurel road makes it simple there are no fees involved and you could save thousands over the life of your loan remember
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt.
The Ramsey Show
Don’t Let Your Present Reality Define Your Future
If you want them gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
Break the Cycle of Financial Self-Sabotage
Hey, what's up guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now,
The Ramsey Show
Break the Cycle of Financial Self-Sabotage
i recommend contacting my friends at laurel road today through their online application you can get an initial rate quote in less than five minutes and if you have a more complex situation you can schedule 30 minutes to talk to an actual human being thank goodness laurel road makes it simple there are no fees involved and you could save thousands over the life of your loan remember
The Ramsey Show
Break the Cycle of Financial Self-Sabotage
You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt.
The Ramsey Show
Break the Cycle of Financial Self-Sabotage
If you want them gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
I agree. I agree with that statement. And if you don't have to pay it now, I wouldn't pay it now. Forget the rollover. I would get out of it now if I could, because you really don't need it. All right. That does it for that. Yeah, I think people forget all the time, Rachel, that there's a purpose to life insurance. It's not necessarily to make you rich or all of these other things.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
It's for anybody who's dependent on your income. If something happens to you, how do they make life work? That's what it's there for. Children, spouses.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
You're listening to The Ramsey Show. Hey, thanks for hanging out with us. We're so happy that you listened to the show and you've made it part of the parts of your day that matter. I'm Jade Warshaw. Next to me is Rachel Cruz. And I don't know if you realize this, but Christmas is almost here. It was it happened so fast. I don't even know what happened. Always every year flies by.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And if you're anything like me, you feel like you're running out of time to get gifts for everyone on your list. This is. That is me. Whether you're shopping for yourself or looking for the perfect gift to help someone get their money in order. Now's the time to shop and get 30% off of our bestselling products, which is a major deal. You can get books like the total money makeover.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
It's the proven step-by-step plan that we talk about on the Ramsey show. Truthfully, it's the way that my husband and I paid off $460,000 of debt. So that is the book you need if you're trying to get your money in order. You could also pick up Building a Non-Anxious Life, also 30% off. My buddy, Dr. John Deloney wrote it. He's talking about anxiety. It's everywhere.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And especially around the holidays, you feel it. But with this bestseller book, You can learn those six daily choices that are going to help you create a more peaceful and joyful life. Or you could pick up Breaking Free from Broke. George Campbell put that one out. It's a great option for parents. You could give this to your younger kids, teach them about money.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
George exposes those money myths and traps around credit cards, student loans, mortgage traps. Yeah, it's a great like Gen Z book.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
I feel like it's like a... It's a version of total money makeover for like the younger, younger crowd. George is hip. He's very hip and he's very smart. Let me just say George Campbell is super, super, super intellectual. All right. So you could also get questions for humans. Those decks are just $12. They're just conversation starting decks. I love those.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Whatever you're looking for, you can go to Ramsey solutions.com slash store to shop those Christmas deals. Or if you're listening on YouTube or podcast, You could simply click the link in the description. All right. I love it. Listen, I get questions for humans decks every year and give them out. Yes, I know. I have two in my purse right now to give for gifts.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Love it. All right. Let's see what Al is talking about. He's in Atlanta, Georgia. What's going on, Al?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Well, here's the thing. Okay. It is definitely getting in the lines of like legalistic, I think. She's right. If you're married, we think of you as one, like one income, one band, one sound, like that whole thing. But I also see your point of view, which is like, hey, let's say we all make $50,000 a year. That's $100,000 from her household and only $50,000 from mine, right? Yeah.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Okay. And just to clarify, her credit cards, it's only $232 or that's the monthly payment?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And then just to clarify the mortgage, the entire mortgage is $240,000. That's what you owe?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And what's the monthly payment?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Okay. And what's you guys' take-home pay?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And when you take your checks home, what is it every month?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Okay, is that a piece or what's missing here? Wait, per paycheck? No, together it's like... Okay, per paycheck. So you get paid twice a month? Is that what you're saying?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Okay. And you both work at the same place. So both of you are about $35,000 a year.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Got it. Okay. So there are some glaringly obvious things going on here. The big one is your incomes are both on the low side. And because of that, this mortgage is half of your income. every month. And so just to put that in perspective a little bit here, we'd say that we don't really want your mortgage payment to be any more than 25%. Sometimes it's a little bit more than that.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work they love, and create amazing relationships. I'm here, Jade Warshaw, with my co-host today, Rachel Cruz, best-selling author, number one, baby, all the time. Sometimes, Jade. Sometimes. Listen. Take those props.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And people can, you know, make it work at 28 or even up to 30 if they know that they have this track of their income going up. But in this case, that being half, um, There's no real place for you to go. You're extremely house poor and I know that you feel it. And so to your point, that might be the idea is to sell this house. But I want to know, is there a way that you see your income going up?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Do you guys have plans? Tell me more about that.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
So what it sounds like just from, and I'm not saying this to throw shade, it's just the fact. Based on the way you're answering these questions, it doesn't sound like you're using a budget. Because one thing I know is when there's no budget, you're searching for the numbers, right? Right. Okay. So that's the first step here.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
yeah is that what i'm understanding so tell me what you want out of this do you want her to just recognize hey thanks for going halfsies on me i understand that it's two against one here is it just you want her to validate that or do you really want her to pony up more cash good question that is a solid question i think i would like okay if it's for my parents and then you know that's more my sister and i
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Whenever we talk about the baby steps or the plan for your money, the very first thing is that foundational piece of the budget. You've got to have that. And all that is, Al, is you saying, okay, here's our income. And you and your wife sit down together and do this. Here's our income. And we're going to list everything that we could possibly spend money on for the month.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And that's the things that are necessities like rent and utilities and groceries. And that's also the other things that you're spending money on, whether it be I don't know, maybe your wife gets her nails done or something like that, right? You're listing it all out and then you're seeing what's left.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And so in your case, there's probably none left and you're probably in the red, which is... Why the credit card debt's there as well. Yeah.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
You're listening to The Ramsey Show. We help people with your life, your money, your relationships. If that's you, you want to get in on the action, you can call us up. It's a live show. The number is 888-825-5225, and we'll get you on the line. Today's Ramsey Show question of the day is sponsored by YRefi.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
When you're trapped in a maze of defaulted private student loan debt, it's hard to find your way out. But YRefi can offer you a lifeline with custom refinancing based on your ability to pay and a lump sum payoff option that you could qualify for after 24 months. So go to YRefi.com slash Ramsey. That's the letter Y-R-E-F-Y dot com slash Ramsey. Remember, it may not be available in all states.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
It makes you accountable. And let's call a spade a spade. The truth is, if you go with a 30-year, you're not paying as much. So you get more house. Yes. And I think truthfully, when people want that, they want more house and not... When you're locked into 15, though, it's like, okay, maybe suddenly I can't afford what I thought I could get. Yes. So look at the root of the... And that's the thing.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Okay, can I throw on a sidebar here? This is just where Jade's brain is going. All right. I think I might, this may not be good. Okay, so if I'm in your, I'm going to be the in-law, okay? So I'm your sister's husband.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
That's it, Lauren. All right. That's really good advice. Let's talk to Greg. He's in Biloxi, Mississippi. What's going on, Greg?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Have you tried persuading her to sell it and start over fresh on her own?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
In my house, if my husband was like, hey, me and my sisters are going in on a gift for my mom, it's like I'm part of it, but I'm not really part of it because it's like they're the main family. They've decided what it is. I'm kind of just on the side.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Can I ask a question? And I promise it does kind of relate to this. Who broke up with who? No, you're good. uh i ended things with her okay there makes it a little stickier it makes it stickier because this this is a tie to you this is a way for you to still be in her life and i don't pulled over greg
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Oh, okay. I was like, oh no, are you driving and getting pulled over? But my point is like, this is a tie to you. And if things were different, I'd say you could make the argument of like, hey, you broke things off and I want a clean break and I need to be free from this. Like you could make that argument, but in this case, it does make it a little tough. How much is the loan for?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Oh, gosh. And it's upside down. Yeah. Yeah. This I think this is only going to get worse. So I would really encourage her to sell it. And I'd be strong on that. I'd say, listen, there's a reason that you can't. I mean, the math is like the logical reason is there's a reason you can't refinance this. And the reason is the bank has looked at your financial situation and said it's not stable.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
You cannot afford this on your own. which means they expect you to default, which means I'm here for when you default. That's what that means. And I don't know, the hard part is, I don't know if your relationship is there for you to even talk to her like that anymore, but that's the truth of the matter.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
being like okay cool that's fine I don't even really know what's happening so it does feel weird going thirds it does feel weird going thirds now I don't know the dynamic of your family if it's like no like he calls my mom mom and we're all together like I do think that plays a part what do you think Rachel?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Oh, gosh. I mean, listen, the most practical thing you can do to be ready for this storm is if she defaults is if she defaults and to be ready. If you kind of have some money packed away on the side, because if she doesn't pay it, it reflects on you.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And when it's time for you to buy a house or when it's time for you to do some of the things that you want to do, if you still have a credit score laying around, which you will because of this, it will make it bad. And as we've talked about on the show, having a bad credit score is very difficult.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
We talk about having a zero credit score, which is wonderful, but this will keep you from having that even if you pay off all of your other debts. So if I were in your shoes, which this is the game we like to play, I would be... Which, by the way, we don't know much about your financial situation. Do you have debt?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Well, I'd go gung-ho on your debt. I'd work the baby steps on that. And then when I was through, I would be mindful of keeping some money stacked up. Yeah, for your emergency fund, knowing this is something you may have to dip into.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
I hate that that's happening to you. All right, that does it for this hour of the show. Stick around. We'll be right back with you before you know it. From the Ramsey Network app, it's The Ramsey Show. We're here to take calls about your life, your money, and your relationships. I'm Jade Warshaw. Next to me is number one best-selling author, Rachel Cruz. She's my good buddy, too.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
I like hosting with her. But we're going to be the ones taking your calls this hour. If you want to get involved, you can do that. The number is 888-825-5225. We'll get you into the mix. Merry Christmas, everybody. Let's go to Kate. She's in Charlotte, North Carolina. I'm sorry. Let's go to Morgan. She's in Philadelphia, Pennsylvania. What's going on, Morgan?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
That's okay. We'll keep rolling on this because Rachel, let's figure out what we would do if we were in this situation because I know she just gave us a very brief overview, but... you know, and I know that these are systems you can call in just like anybody else. You can switch to another system. You can do it manually. You can have the accountant issue the checks.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
There's so many ways to make this right. And so for me, just with that brief overview, I do smell a rat. I feel like something might be going on. And the fact that she said, I feel like she said early on that it was only management positions, which makes me think that might be higher paid folks. Yeah. Uh,
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
I wouldn't keep working for free. And I'd love to hear Ken Coleman's take on this, because if they truly felt like it was some sort of an oversight or some sort of a true mistake that they were truly having issues fixing, which again, I can't see where that would really be the case. You could say something like, listen, I've enjoyed my time here.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
I've been dedicated working here, but I'd like to be paid. And until you can pay me, I have to go elsewhere. It doesn't have to be like, that's it, I quit. Sure.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
You know, I read a stat the other day that said, I believe it was 49.1%. So let's go ahead and say 50% of Americans that if they lost just one paycheck, not for the month, but just that one, because most of us are paid biweekly. Yes. One paycheck, they would be and total financial distress. Like they would not be able to meet their obligations.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And that's to say that they probably don't have an emergency fund. And in this case, thank goodness that they had the emergency fund.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
It would never be me, Rachel.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
I agree it smells fishy like if I smell fish I'm looking for I'm looking for it so I agree but this just puts into perspective and I know that this is not the typical emergency this is not the typical hardship that we hear on this show right but it does put in perspective why it's so important to manage your money well. Right.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
We talk all the time about these baby steps so that whatever happens in life, you have peace in the situation, at least initially, because I'm sure when that first paycheck didn't come through, they were like, holy smokes, like rent was due or, you know, a carpet, whatever it was. But when you don't have debt, suddenly it's like, OK, my life is a lot more simplified. Yep.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And so if something were to happen where you lose a paycheck, someone gets laid off, I don't know, somebody gets injured and they're not able to work, suddenly life becomes more simple.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
You've got this emergency fund to fall back on and you can kind of get, you can fly above that storm, so to speak, and just kind of ride it out without it becoming this, I don't know, complete catastrophe in your life.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
That's right. That's a really good way to put it because I know I made the mistake of... kind of what he's saying. When Sam and I were paying off debt, I mentioned this earlier, but Sam and I paid off $460,000. And so the debt snowball that we talk about is really important.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And therefore, the longest I remember thinking, oh, I don't have to make minimum payments because I was so eager to put extra money on the smallest debt. But when you don't do that, Things get behind and 1-800-PAYME starts calling you. And before you know it, it's a worse mess because you're trying to do the right thing with the wrong method. Yes, that's a great way of putting it.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And so it's so important to do the baby steps and do the debt snowball the correct way, listing them smallest to largest, making minimum payments on everything, but putting any and all extra money on the smallest debt. Yes. That's how this works.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Listen, I want to validate all day the fact that you're feeling like, man, I feel like I'm chipping in more. But I like Rachel's idea of just saying, here's my set budget. That's what I can spend. And if that doesn't work, maybe we choose something else or I just do my own thing. Yes?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
You're listening to The Ramsey Show. Thanks for hanging out with us. I'm Jade Warshaw. Next to me is Rachel Cruz. We are your hosts for the day, taking your calls. And we want to remind you that the best way to make the most of your money is by creating and sticking to a monthly budget. That is the foundation.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And every dollar makes it so simple to plan your spending, track your expenses, and save for what matters most to you. You can do it all in an easy-to-use app that fits into your busy lifestyle and in your pocket because it's on your phone. You can keep a pulse on your spending and make progress on your money goals with every dollar.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
So if you haven't already, download Every Dollar for Free in the App Store or Google Play, or you could click the link in the description if you're listening on YouTube or podcast. All right, let's go to the phone lines. We've got Katie. She's in Charlotte, North Carolina. What's going on, Katie?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
You bet. How can we help? Hi.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Okay. Have you downloaded every dollar yet?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Be more specific. Is it that you're, you have a lot of money left over and you're not sure what to do with it or are you in the red? Tell us more.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
OK, so that's just an irregular income. A lot of folks are on a regular income. I am people that work on commission, that sort of thing. And so the way to do that, you're still putting everything in your every dollar budget. But as you're spending the money, you're doing it by priority.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And so if you don't have the premium version, I would really recommend that for you because you can plan your paychecks. It's a feature. It's over on the left-hand side. I think it looks like a little bullseye. But anyway, you can do the paycheck planning. And basically what you're doing with that is you're planning when you get to spend your money.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
So you've already gone through and said, I'm going to spend $600 on groceries. I'm going to spend X amount on rent. You've already done that. But now with paycheck planning, you're going to say, but when do I spend it? Because I have to know because if he gets paid at irregular times and if he gets paid irregular months, you want to know that the money is there.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And so for you, paycheck planning is going to be a really big feature for you because at the end of the day, for anybody, even if you're not on every dollar yet, if you're Four walls first and then every all the other priorities after that. So for you, it's going to be rent first. You need to be have your transportation, your utilities and your food.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And then for you, daycare is probably going to be number five on that list. And then as as the month goes on, you pay things based on priority. And so that's kind of just a crash course.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And I love what you said, Rachel, about shooting low.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Love it. That's a great call. A lot of people have that question. All right, let's go to Michelle. She's in Honolulu, Hawaii. Ooh, I wish I was where you are right now. What's going on, Michelle?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
I think so, too. And I know there are products out there that are designed for like teaching kids. Like there's some banks. I have not used them, but I know they're out there. So if you looked deeper into it, if you wanted something that he could see or that had like a fun app or something with it, I know they're out there. Yes, for sure. Yep. Very good question. Thanks for the call.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Hopefully that helped you out. Do you do, is that what you do? Like if you're kids, like it's the holiday season and I know already we've gotten some money coming for the kids. What do you do? Do you put it in a separate account? Do you just keep it in a cash envelope? What do you do?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Well, we're going to be taking your calls about life and money, and it's the holiday season, so I'd love to hear calls about people deciding what they're going to do for the holidays with their money. That's always fun. All right, Rachel, you ready to get into it? Yeah, let's jump in. All right, let's do it. We got Sam from Green Bay. What's going on, Sam? Hi, thank you for taking my call.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
You're listening to The Ramsey Show on The Ramsey Network. We're happy to be with you. I'm Jade Warshott. Next to me is Rachel Cruz. We are taking your calls about your life, your money, and truly your relationships because we know, Rachel, that money touches every single area of our lives. Honestly, whether we want it to or not, to or want to believe that it does or not. It truly does.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And so if you have a question, call in. We will do our best to get you on the board. But I will say, Rachel, one of the things I found when helping people with their money and me helping me with my money is there's a lot of jargon out there. There's a lot of lingo. There's a lot of vocabulary that sometimes we feel, I don't know, just a little silly or maybe even embarrassed to admit.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
we don't know what it is totally you know yes there's parts of money you guys that are so it can feel intimidating and overwhelming and like you said it's it's like this whole other world of terms and language and all of that and you hear it but you're like okay do I fully understand and grasp it that's right you can feel like it's for smart people only but that's not the case you can understand it too and so I've noticed that if I want to ask a question and I don't want people to know that it's from me I'll say that I'm asking for for
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Right. And so I love this segment here asking for a friend, Jade, what are tax withholdings and how do I adjust them? Right. So tax withholding, you probably have noticed on your check that withholdings come out, including federal tax withholding, which is basically when your employer takes out an amount of money out of each paycheck and they're sending it to the government for you.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Feelings. Yeah. Because the truth is, most of the time, a dual household is going to have more money. Yeah. And that's a real part of it. And I stand by it. If it's one of those families where it's like, you know, everybody's so tight and
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
They're prepaying your taxes, basically. And that number is set on what you tell them they can take out. OK, so the amount that they're taking out depends on what you earn and it depends on what you put on your W-4. OK, so after filing, depending on what you put on your W-4,
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
they're either going to give you a refund, they're either gonna have you break even and you owe nothing, or in some cases you end up owing money, okay? But the goal here is we want you to break even because that means you've done it right.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And if you are getting a big tax refund every year, just remember that that means you're withholding too much and we want you to have that money back in your pocket. All right. So how does tax withholding work? Like we said, if you work, you got to pay the withholding tax, right, Rachel? Yes, that's right. And in certain states, you might even have to pay a separate income tax as well.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
But when you start a new job, you fill out that W-4 form. Or maybe if you get married, right, you fill out a new W-4 form. And on that, that's where you tell your Your employer hears how much tax I want you to take out. OK, so the how that that's how that works. So if you're sitting here today and you go, well, Rachel, I got a tax refund last year and it was, I don't know, twelve hundred dollars.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
What would you tell that person?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
the in-law played just as much of a part then i could see a little bit more while she was like well can you guys contribute more because it's from both of you but like in my household i'd be like what are you getting them okay yeah one unit yes exactly yeah yeah one unit going in totally uh but we've had some like discussion over this and i know we're going to talk more about it tomorrow but just the idea of setting boundaries around christmas in general
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
It's a pain in the butt. I don't like, I mean, there's a reason we get help, right? Yes. Yeah. I don't want to do it myself. But yeah, just understand that if you're if things aren't looking the way you want every year when you get your tax refund or maybe you're breaking even if you are really good. But if you're not, you have the ability to change that. You can change that W-4 form.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
You know, you can fill out a revised one and you can download them from the IRS website or listen, I would just probably head over to my HR department and say, hey, I've been noticing this. Help me out. Right. That's how that works. Yes. All right, if you have any questions, contact a Ramsey Trusted Tax Pro. You could do that at ramseysolutions.com slash taxes.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And I'll say this too real quick, Jade.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Real quick, real quick, real quick, real quick. Can I just tell you that is so good. Like you guys nailed it.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
I mean, I listen to that. I'm like, that's amazing.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
I mean, if you guys are, let me say it like this. If you're dead set on investing the money in some form or fashion, like you said, whether it's just normal mutual funds, whether you did bond funds, I would work with a smart investor pro to decide the best way to invest that as you get older and what makes the most sense. But since you called us, like for me, I'm looking at this money.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Because the expectations are high. And a lot of times it's not even that you've intentionally done it to yourself. It's just Christmas happens every year. And if the past three years you got someone a gift and then this year you don't, it's easy for somebody to think, well, what's wrong? Did something happen? I have to explain myself. It's hard. It's kind of hard to backpedal.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
I'm going, you guys have done so well. This is really gravy on what you guys have already accomplished. And it's a lot of gravy, but it's nice. And I'm looking at this. I'm like, OK, I can give, save or spend. Right. Those are the three things you can do with money. And I would enact that here. I would give some of it. I would save some of it and I would spend it.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And that what percentage of that is up to you. But I think this is a great opportunity to enjoy some of this money as well. Okay. All right.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
This is the Ramsey show. Hey, it's the most wonderful time of the year. And one of the ways to stay on track with your money is to listen to shows like this. That'll help you stay motivated. And the Ramsey network app is the only place you can go to get full episodes of the Ramsey show. So download it for free using the link in the show notes or by searching Ramsey network app in the app store.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
It's really, really a great tool. You can even search specific topics. So if you know, like I want to know more about real estate or I want to know more about the debt snowball, or I want to know more about, uh, paying off a car and buying a car in cash. You can search those topics and show clips will pop up for you. Or if you just want to watch the show in real time, you can do that.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
If you're on the radio, just know that after this hour, the only place that you're going to be able to listen to the third hour is on that Ramsey network app. Okay. All right, Rachel, let's go to the phone lines. We got Adam in Wichita, Kansas. What's up, Adam?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And that's average. You're right on par.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Oh, what an amazing opportunity. And, you know, we say all the time, it's not, you know, baby step five is the baby step where you are putting aside for kids college, whether that's trade school or state university, right? But it's not required that you pay the whole amount, right? That's right.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
The only thing that's really required is that you're having that open conversation and you're letting your kids know the expectation so that you can prepare properly so that there's no debt involved.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Very, very, very good. Okay, let's go take another call. We've got Matt. He's in Fort Myers, Florida. What's going on, Matt?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
So you're saying you would sell this house, take that money, pay off the debt and buy a new house.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
But if you get hit again with a storm, how does that solve the problem? Because if you're hit again with a storm, you still have to shell out the money to cover the damage based on what you're saying.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
I think we get it. I believe you. The point is, let's say another storm comes next October or next September, right? You don't live in the house anymore. It's been sitting vacant and it has water damage. You're saying you would just leave it to rot? Yeah.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Why? Why do they care? And since they're alive, can't you go to them and say, hey, thank you for the gift. Is there a way we can rework this? Because where this house is, it's costing us a lot of money. It's not feeling like a blessing. It's feeling like a burden. They're still here with you. So can you have that conversation?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Whatever whatever you decide between you and your parents, the point is you've got to get to the point to where if you would like to walk away from this property, you can. You shouldn't have to be clung to it because of something they said. Right now, it's costing you too much money. You and your wife have decided we don't want to live there anymore. And so they need to let you out of it.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And if you want to sell it and keep the proceeds, so be it. But or if they say, no, we're taking the property back and we're going to keep it, then so be it. But either way, you guys need to have final say and control over your life and your money.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
I know. Yeah. My sister actually introduced that to us. It's probably almost been... Seven years or so. And I love it. It's an adult. Like my parents were included in the mix. Yeah. And I'll be honest. A lot of times I do cheat. And even if I don't get my parents, I'll still get them some. I just. Yes. I can't. But I'm also not in debt anymore. So like, let's throw that out there. Margin. Yeah.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
It's like. Yeah. It's the whole argument on. being thoughtful around giving gifts, considering your debt, considering your financial state has nothing to do with whether or not we want you to be generous or not. But it's understanding in what ways can you be generous?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Because the truth is you can be generous and you can be giving and grateful and thankful in a lot of ways that don't require money and don't require you overspending and making a bad situation worse. Amen. You know what I'm saying? Oh, yeah. Tis the season to be jolly and smart with your money. This is The Ramsey Show. All right, you're listening to The Ramsey Show.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Hey, what's up? How can we help?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
If you want to give us a call, it's a live show, so you can do that. The number is 888-825-5225. We'll get you on the line. Again, I'm Jade Warshaw. Next to me is Rachel Cruz. We're the ones that'll be taking your calls this hour. So let's go straight to the phone lines where we've got Samantha in Phoenix, Arizona. What's going on, Samantha?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Yeah, I would. This is definitely a storm. Yeah, for sure. I would categorize this as a storm. And we do say that when you're in baby step two, especially, there's a couple of things that would cause you to kind of pause. And that would be a baby on the way or some sort of storm or major emergency that is causing you to kind of have to just hold tight for
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
How is your like financial situation? How is your home situation?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Does your ex have a lot of money? Is that why he's trying to, is he trying to drain you out on this?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
So what is there anybody around you that has the ability to help with this that wants to? Because the truth is, this is costing you money and it's costing you money that you don't have.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
And I do believe like I'm I believe that the custody is going to end up with you because from what you're telling me, there's clearly track record that this is an abusive person, especially the fact that he's ended in jail for trying to violate this. So I have a feeling that this will end with you. But how long can you go down this track? Do you see what I'm saying?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
You think it should be thirds?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Absolutely. I mean, there's only $2,000 left on the car. What's the payment on that? What will you get back in your pocket monthly when you pay that off?
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Good. So another $300. That's great. To Rachel's point, that's even more money that you'll be able to set aside. So yeah, like no disguising the fact that this is tough and, you know, you've got your work cut out for you in a lot of ways.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
But I think just being really intentional, still creating a plan and sticking to that plan, whatever you decide that plan is, is going to be really paramount for you walking through this. That's so, so, so, so tough. I know. I'm so sorry, Samantha. Tough to walk through. All right. Do you want to try to take another call right quick? Let's try it. Caleb in Norfolk, Virginia.
The Ramsey Show
To Change Your Results You Have To Change Your Behavior
Merry Christmas. How can we help?
The Ramsey Show
It’s Time to Stop Surviving and Start Taking Control
Hey, what's up guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now,
The Ramsey Show
It’s Time to Stop Surviving and Start Taking Control
i recommend contacting my friends at laurel road today through their online application you can get an initial rate quote in less than five minutes and if you have a more complex situation you can schedule 30 minutes to talk to an actual human being thank goodness laurel road makes it simple there are no fees involved and you could save thousands over the life of your loan remember
The Ramsey Show
It’s Time to Stop Surviving and Start Taking Control
You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt.
The Ramsey Show
It’s Time to Stop Surviving and Start Taking Control
If you want them gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
Stop Overthinking and Start Taking Action
Tell me this. When you bought that, how long did you live in the house before you added your parents, before the parents added their deal to it?
The Ramsey Show
Stop Overthinking and Start Taking Action
um maybe two years so two years let's let's let's look at this math like as mathematically as possible so two years if you can remember back how much equity did you have in the house at the two-year point do you remember um well it was like a bank repossession and so we've been fixing it up um just direct try to direct answer it Maybe like $50,000. Maybe $50,000.
The Ramsey Show
Stop Overthinking and Start Taking Action
So let's pretend that that $50,000 was yours before they were ever part of this. So that $50,000 is yours. Oh, sorry.
The Ramsey Show
Stop Overthinking and Start Taking Action
Worth that, but what would your equity be in it? I don't know what you purchased it for.
The Ramsey Show
Stop Overthinking and Start Taking Action
So what I'm asking is what profit if you had sold the house two years ago in the first two years, what profit would you have taken home? Because I'm trying to divide this up so that you guys can talk about this in a fair way.
The Ramsey Show
Stop Overthinking and Start Taking Action
Then parents get involved. They spend $200,000. They do the thing. And now you've been living like this for a given amount of time. And that given amount of time, how much then has the property appreciated further? Let's say it's appreciated another $100,000. Right. Right. So now it's like, hey, there's one hundred thousand dollars of appreciation that really has to be split.
The Ramsey Show
Stop Overthinking and Start Taking Action
If we get rid of this property, that's really what has to be split between the two of us. And the parents are going to have to realize they made a bad investment. And that has that has zero to do with you guys. They just made a bad investment. They put too much into the property because the market is not giving it back. And so that's not on you. That's on the market and that's on their choice.
The Ramsey Show
Stop Overthinking and Start Taking Action
You're both going to take the hit financially.
The Ramsey Show
Stop Overthinking and Start Taking Action
Ken is right. You're going to sell this house. That $100,000, you're going to end up splitting down the middle. You're going to lose out, and they're going to lose out. This was a bad choice.
The Ramsey Show
Stop Overthinking and Start Taking Action
If you're tired of living paycheck to paycheck and wondering where the heck is my money going? The first step is you need to get on a budget. OK, so our team is hosting a free budgeting training this month, otherwise known as a webinar. And you'll learn step by step tricks on how to stick to the budget and honestly, how to use every dollar, which is really the only budgeting app I use.
The Ramsey Show
Stop Overthinking and Start Taking Action
From the Ramsey Network, it's the Ramsey Show. I am your host, Jade Warshaw. Next to me, one of my favorite guys out there, Ken Coleman.
The Ramsey Show
Stop Overthinking and Start Taking Action
It's the best budgeting app out there. You'll get to have your biggest budgeting questions answered because it is a Q&A format, which is great. You can go on there and ask exactly what you've been burning to know. Just remember, spots are limited. You can sign up for free at every dollar dot com slash webinar. These are great. If you haven't got into one, you need to get into one. All right.
The Ramsey Show
Stop Overthinking and Start Taking Action
Back to the phone lines. We got Mark in Indianapolis, Indiana. Mark, what's going on?
The Ramsey Show
Stop Overthinking and Start Taking Action
Yeah, I mean, I could I could definitely see that being a frustration if Sam and I say, hey, we're pooling this money and this money is going to be used for a car. And we do that all year long. And then at the very end, Sam is like, hey, actually, I'd rather use this for X, Y, Z. And if I don't agree with that, then, yeah, I feel like, hey, you're going back on what we agreed on.
The Ramsey Show
Stop Overthinking and Start Taking Action
Are you thinking of getting married before you have the baby or just in the current situation having a baby?
The Ramsey Show
Stop Overthinking and Start Taking Action
Listen, I like the idea of getting married before you have a baby. You didn't ask me my opinion on that, but there it is.
The Ramsey Show
Stop Overthinking and Start Taking Action
Get some grits or get out the South. That's what they say.
The Ramsey Show
Stop Overthinking and Start Taking Action
Yeah, man, it's the same as paint or get off the ladder.
The Ramsey Show
Stop Overthinking and Start Taking Action
I think, you know, if she's talking about a baby, she's got forever in mind.
The Ramsey Show
Stop Overthinking and Start Taking Action
And that's a good indicator, you know, that she does. And she's probably thinking that if you say yes, you probably have forever in mind, too. And if you have forever in mind, you may as well put a ring on it.
The Ramsey Show
Stop Overthinking and Start Taking Action
Okay, so then you know the first step here. I mean, you mentioned the $26,000 of debt, the $52,000 of income. Do you have any money saved anywhere?
The Ramsey Show
Stop Overthinking and Start Taking Action
Yeah? Tell us more about that. What's the loan for and what are they offering?
The Ramsey Show
Stop Overthinking and Start Taking Action
For your $13,000 car? For your car that you owe $13,000 on? Yeah. Like a trade-in value?
The Ramsey Show
Stop Overthinking and Start Taking Action
And that's a problem. I do think it might feel a little differently if both of you agreed, Hey, I know we put this money aside for Christmas or we put it aside for a car. But both of us agree something else has come up that's more important, and we both agree that this money should be spent in this way. I don't have a problem with that because it's your money. You get to decide.
The Ramsey Show
Stop Overthinking and Start Taking Action
Good. So yeah, do that. Then we're still working on baby step one. And honestly, when people do baby step one, it's not just kind of waiting on the income to come. This is you getting down and dirty. You're getting into your house and you're selling stuff and you're picking up a side hustle. Most people get their baby step one in 30 days or less. So the clock is ticking on that.
The Ramsey Show
Stop Overthinking and Start Taking Action
That's really a challenge, so to speak, in order to get that done. And then once you've cleared this car situation out for a lot less money, you know, 500 bucks, you can't beat that. Then, yeah, it's working that debt snowball. And you read it in the book. It's listing them from smallest to largest. After that car situation is cleaned up, what's your next smallest debt?
The Ramsey Show
Stop Overthinking and Start Taking Action
Well, what do you make a month now? What do you take home every month?
The Ramsey Show
Stop Overthinking and Start Taking Action
And of that, have you done your every dollar budget?
The Ramsey Show
Stop Overthinking and Start Taking Action
Okay, so that's your homework today. You get off the phone. Christian will pick up. Make sure you get the every dollar budget. I want you to plug those numbers in. Plug in your income. Plug in everything that you think that you're going to spend money on this month. And then look for ways to cut back. If you realize, hey, I've got a couple subscriptions in there.
The Ramsey Show
Stop Overthinking and Start Taking Action
Or, hey, looks like I do stop by 7-Eleven and pick up snacks. I want you to cut that stuff back. And once you cut that stuff back, now we see how much margin you have. And when you see that margin, that's going to inform how quickly you can pay back the CDL. Because, yeah, I don't want it to take any more than six months, but you having a clear plan. Ken Coleman says it all the time.
The Ramsey Show
Stop Overthinking and Start Taking Action
You aim at nothing. You fail every time. Did I say it right? That's exactly right. And so let's give you something very clear to aim at. You know, you've got to pay this thing off in six months. What does it take to make that happen? And how can you make that happen faster? So doing a budget is going to get you, you know, help you to see what that actually is. Does that make sense?
The Ramsey Show
Stop Overthinking and Start Taking Action
All right. Well, I think you've got a plan of action, my friend.
The Ramsey Show
Stop Overthinking and Start Taking Action
But it does sound like there's a little bit of an issue on doing what you say you're going to do. And with money, there's a big part of that, that when you kind of draw a line in the sand and say – here's what I'm going to do. Standing by that is a sign of discipline. And in this case, it kind of sounds like that it more is a discipline thing and you guys not being on the same page.
The Ramsey Show
Stop Overthinking and Start Taking Action
More data to that, you're right. Not only do they earn more, they build wealth faster. And the data says that they are happier. Like when they do the measure markers of what happiness means, people who are married and share their finances are happier. So there you have it.
The Ramsey Show
Stop Overthinking and Start Taking Action
Okay, so we talk about a thing called the baby steps here a lot. The baby steps is the plan that we find helps people get to financial peace and wealth building in really the best, fastest, most peaceful way. So if you hear us talk about the seven baby steps, that's what we're talking about. And if you're wondering, hey, am I in the baby steps?
The Ramsey Show
Stop Overthinking and Start Taking Action
If I am on the baby steps, where am I in these seven steps? You can take a quiz to check your progress and And not just that, but we'll give you a personalized plan that's just for you. So if you want to do that, if you're interested, you can simply head into the show notes and you can click on the link that's titled. Are you on track with the baby steps?
The Ramsey Show
Stop Overthinking and Start Taking Action
And you can complete that quiz if you are interested. All right. Saying less, let's go to Eric in Los Angeles, California. What's up, Eric?
The Ramsey Show
Stop Overthinking and Start Taking Action
And he's paying for school? He's the moneybags? Yes.
The Ramsey Show
Stop Overthinking and Start Taking Action
So May of so so summer of next year is what you were initially planning for.
The Ramsey Show
Stop Overthinking and Start Taking Action
It's not debt, but I see how you're viewing it that way. You feel like you're robbing Peter to pay Paul.
The Ramsey Show
Stop Overthinking and Start Taking Action
You are so, so right. And I think that there's... A level of drama in how we're speaking about this, which I think can add to the pandemonium, so to speak. So y'all were using the word threat. He's threatening. And I'm like, when I hear the word threat, my mind goes to, is somebody in danger? Is something going to happen?
The Ramsey Show
Stop Overthinking and Start Taking Action
When really it's just a middle-aged man saying, here's what I want you to do. Right? Is it just that?
The Ramsey Show
Stop Overthinking and Start Taking Action
He just has a plan for her life, and that's not her plan.
The Ramsey Show
Stop Overthinking and Start Taking Action
Let me tell you, let me give you a, I try to give real time and real examples from real life. So when I was in school, I was dating a guy and, you know, my dad, he didn't dislike the guy, but at the same time, he didn't like how much time I was spending with the guy. But I'm like, I'm in college, I'm grown. And so during summer break was really when it kind of started creating some tension.
The Ramsey Show
Stop Overthinking and Start Taking Action
So do you want to know what I did? I moved out. And I rented, this is bad. I mean, it's not great, but my friend had an apartment. It didn't have an extra room. So I said, how much would it cost me if I brought my futon here? And I just slept in the living room on the futon and it cost me like 300 bucks a month. I mean, this was back in the day. I don't mind that.
The Ramsey Show
Stop Overthinking and Start Taking Action
And I did that until it was time to get married.
The Ramsey Show
Stop Overthinking and Start Taking Action
And it's not even that he had a problem, because I'm married to Sam now. It's not even that he had a problem with Sam. Yeah. I mean, I just was framing it up in a way.
The Ramsey Show
Stop Overthinking and Start Taking Action
I think that that is admirable. Yes, 100%. If you can avoid it, do it. Don't add to it. And a word for the dads. You know, dads, they love their daughters. And sometimes they don't know how to show it in the most sensitive ways. And sometimes they result to control a little bit.
The Ramsey Show
Stop Overthinking and Start Taking Action
They don't mean any harm. They just don't know how to say, I'm sad that I'm losing you. And they start holding on too tight.
The Ramsey Show
Stop Overthinking and Start Taking Action
Yeah, it's tough, man. It's hard. I don't envy you, Ken Coleman. That's my princess, man. This is The Ramsey Show.
The Ramsey Show
Stop Overthinking and Start Taking Action
We're taking calls together about your life and your money. I'm going to hit you up on the money side. And Ken, he's going to help you with the professional growth.
The Ramsey Show
Stop Overthinking and Start Taking Action
You're listening to The Ramsey Network, and this is The Ramsey Show, where we take calls about your life and your money. If you didn't know, we take these calls live. And if you want to get on the show, you can call 888-825-5225, and we'll get you on. I am your host today, Jade Warshaw. Your other host for the day is Ken Coleman. And if you don't know, Ken Coleman and I, we keep it real.
The Ramsey Show
Stop Overthinking and Start Taking Action
We have a good time together. So let's take it straight to the phone lines, Ken, where we have Jay in Atlanta, Georgia. What's up, Jay?
The Ramsey Show
Stop Overthinking and Start Taking Action
Yeah. So did your grandmother, she clearly didn't know that you had college covered when she said this in the will is the guess, right?
The Ramsey Show
Stop Overthinking and Start Taking Action
Have you played it out to see what it will be when they reach 18? No.
The Ramsey Show
Stop Overthinking and Start Taking Action
Well, there's charts out there. There's charts out there where you can play it out and see. So let's, let's, put some real meat on the skeleton. So let's pretend you said you're in Georgia. So let's pretend that they go to a state school, which is what we would recommend here, going to an in-state school, assuming you still live in the state of Georgia.
The Ramsey Show
Stop Overthinking and Start Taking Action
And so now it's like, okay, they're in sixth and third grade, right? It's hard to know who they're going to be coming up. But let's just conservatively say, even if they chose... Like the most popular state school in Georgia. What would that what does it cost today?
The Ramsey Show
Stop Overthinking and Start Taking Action
And let's use a chart to find out what it would cost in the next six years, you know, to find out what this next 10 years to find out what this is going to be. Right. And so that's how you would play that out. And then you go back and look at the account and find out, would there be enough? So that's the game that I would play when I get off this phone.
The Ramsey Show
Stop Overthinking and Start Taking Action
Yeah, because you set the budget, my friend, and what you have is the budget.
The Ramsey Show
Stop Overthinking and Start Taking Action
Thank you very much. Yeah, that's a good question.
The Ramsey Show
Stop Overthinking and Start Taking Action
Or you tell them to figure out where is it coming from.
The Ramsey Show
Stop Overthinking and Start Taking Action
Yeah, you can. And then you're doing both. You're doing what grandma said and you're adding extra to it. But it does lead into another question, Jay and Ken, that I think is worth talking about, which is when it comes to school, college, grad school, higher ed, whatever, you know, going to get training. I think the biggest piece of this responsibility is not financial.
The Ramsey Show
Stop Overthinking and Start Taking Action
I think the biggest piece is that communicative part of it where we're saying, here's the expectation. Here's what mom and dad are going to do. But here's what child, what you do. And we're having that conversation early and we're having it often. So they're not going to wake up one day at 16 or 17 scrambling, trying to figure out or learning, hey, I have a college fund, right?
The Ramsey Show
Stop Overthinking and Start Taking Action
We're talking about this probably from the time you hit freshman year of, hey, college is coming in four years. Your mother and I are saving. We don't know what school you're going to end up with, but just know if there's a deficit, you're going to be on the line for it. That's right. And even if there's not, you're applying for scholarships.
The Ramsey Show
Stop Overthinking and Start Taking Action
I expect, you know, depending, there's going to be some work aspects on your end. And so really clearly setting that guideline, I think is the most important part.
The Ramsey Show
Stop Overthinking and Start Taking Action
So I mean, it's $72,000 for the 10 year spread for the six year old and the nine year old if they keep putting in what they've been putting in.
The Ramsey Show
Stop Overthinking and Start Taking Action
I agree. Especially it would be one thing if you already fully had education covered, but with your, what you've said you want to pay, you don't have it covered. So I would put it towards, I agree with Ken. Let's get that mass summon there right now. Let that start building. I know that's right. And yeah, you're right, Ken. Yes.
The Ramsey Show
Stop Overthinking and Start Taking Action
I think they are. And I love the idea that they're even thinking ahead and doing that sinking fund. Yeah, this is a... Okay, so Ken and Daniel, when I talk about budgeting, which is really what this is a subset of, I talk about budgeting being detailed, realistic, and flexible.
The Ramsey Show
Stop Overthinking and Start Taking Action
All right. Today's question of the day is brought to you by YRefi. If you've got defaulted private student loans and no one else will work with you, then try YRefi. They help you explore refinancing options with a low fixed rate and a payment plan based on your ability to pay. So go to YRefi.com slash Ramsey. That's the letter Y-R-E-F-Y. Let me say that again.
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Stop Overthinking and Start Taking Action
That's the letter Y-R-E-F-Y.com slash Ramsey. May not be available in all states.
The Ramsey Show
Stop Overthinking and Start Taking Action
No, you can't pull it off. Sorry. Kelly agrees. Kelly's like, not happening.
The Ramsey Show
Stop Overthinking and Start Taking Action
You can. Let me, before I do though, this popped in my mind and I'm just going to say it. You know, there's the scripture that I think of where it's like, hey, you were running a good race. Like what stopped you from, you know, going forward? And it talks about giving careful thought to the path of your feet. And it's so easy with money.
The Ramsey Show
Stop Overthinking and Start Taking Action
You're running your race and it's easy to look over into somebody else's lane and be like, ooh, what are they doing? And it's distracting. And you're supposed to look at your path and your feet and not get distracted. So I just want to remind you that your race is your race to run. Somebody's going to be making 10,000. Somebody's going to be making five.
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Oh, you just want to do it. We're just saying income today?
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Somebody's going to be making 40,000 a month. Right. But your race is your race. And there's no shame in that game. You're not racing them. You're trying to get your best time. Yeah. And it's you against you. So just reminding of that. Now, he says, I don't spend much on food, maybe 750 a month. I rarely buy anything for myself after taxes. I bring in 2500 every two weeks.
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The flexible part of it says, hey, I might have a line item on my budget that says, I don't know, we're gonna spend $200 on entertainment for this month, right? Mm-hmm. And then something comes up that you both deem as important. I don't know. You forgot to plan for grandma's birthday and you both love grandma.
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You know, I think that he's if you feel that you want to increase your income, that is your prerogative. And if you feel that that is what's hindering you from going faster, you would be correct in that assumption. And I think that there's room for you to improve on that, but not because of what other people are doing, because of what it is that you want to do.
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Yeah, student loan, personal loan, cell phone. He doesn't mention a car.
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Well, dang, I feel like chopped meat over here. No, no, no. But listen.
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It's never real. What you see on social media is so not real.
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Ken, you don't even need to go to extremes. Like you're talking, I mean, you're talking about like nice resorts and private planes. I just see families at Disney and I'm like, how? How, God, how?
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Yes. And so that's my point is, yeah, you 100% cannot compare yourself. Now, let's have this quick conversation, Ken, because I think it's worth having. Okay, great.
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I was talking to a guy about this this morning. Let's talk about comparison with money.
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So you both decide, hey, let's pull money out of that entertainment category that we were going to use to go to the movies or take the kids to the zoo. And let's use that for grandma's birthday party.
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Because I think there's two types of comparison. One is good and one is bad. One is comparison for inspiration and for ideas. Yeah. You're looking at other people and going, oh, they're doing something that I'd like to do.
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I look at Beyonce, I go, she's my same age and she's amazing. I want to be fabulous too.
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You know what I'm saying? Like, but that's what I'm saying. You're looking for inspiration. You're looking, it's not making you feel bad or less than, it's making you feel great.
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Anything's possible. Then there's the comparison. That's the bad side. That's, hey. Everybody's doing this. Why can't I? Am I bad compared to this? Is this better? And I'm not meeting the bar. And so really knowing how to shift that from the negative comparison to the positive comparison. And I think, Ken, the way that you shift that is by asking the right questions.
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And now I'm going into your lane because you're the question asker.
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But when you're looking at what other people are doing and you're just internalizing it, saying, oh, how did they get that? Should I be doing that? No, take it outside and go, hey, you know, how did you make that business plan?
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That's an example of the budget being flexible because yeah, you can look at a line item and say, I thought I was going to use that money for this, but now we are deciding we are going to use it for this. That is okay. I don't want anybody to think that that's like lightning's going to hit them.
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You can ask the people that you see doing the thing. If you have proximity to them, there's nothing that's stopping you from saying, hey, you know, that job you had, did that require, what education did that require? Right. You know, I see that you're winning in this way. Are you using someone to help you with your investments? Who do you use? Ask questions because then you're being curious.
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You're not being, you know, you're not having a bad comparison.
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I know. That's right. And I got them coming up. They're coming up the pipe.
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Listen, they're getting there. Let me tell you. So Zia's daycare. I never say her name online, but I know that was a slip.
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Pretend like you didn't hear that. So my daughter's daycare, she stops daycare and goes to kindergarten. And let me tell you something. That's a cool 1400 back in my pocket.
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Weekend trips. Now maybe I can go to Disney.
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But Ken, to your point and to my earlier point, I do believe that when you are dealing with a bigger budget, um, amount of money that you've both agreed ahead of time is for this, unless you both agree that it's not going to be used for that. You got it. You got to call a truce. Like nobody gets to spend it until we both agree what it's going to be spent on.
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If you are listening to this message, it means that you are a listener of The Ramsey Show. And we're so glad that you are. And we're hoping that you're enjoying the advice that we give and the messages that we teach. And if that is the case, I hope that you share it with somebody.
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I hope you tell them, hey, there's this really cool financial podcast or this really cool YouTube show that I listen to. And you'll love it. And share it with the people that you love and that you think could use this advice. And Make sure you share it in a positive way, not your finances look a mess. You could probably use this show. Make sure you share it in a nice way. Off the top ropes there.
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Yeah, you don't want to do that. So just slide it into their DMs or hit the little paper airplane button or copy the link and paste it into one of your text messages. We would really, really appreciate that. It's helpful for us and it helps spread the word to a lot of people who could probably use the The help.
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Sia is in Seattle, Washington. Sia, how can we help?
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Let me ask a couple of questions. Is this your only debt, these houses?
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This is the only debts out there. And what's your income?
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Okay, $350,000, Seattle, Washington, these two houses. Right now, which one are you currently living in?
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I know. That's right. More money. Let's go to Daniel. He probably wants to make a little more money, too. Daniel in Pensacola, Florida. What's up, Daniel?
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And then you've got a $900,000 mortgage on the one you just bought. So you're more, let's kind of like frame up how we're viewing this because you're viewing it more on the monthly payment, the rents. I'm viewing it more on total debt. Ken, how are you viewing it?
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I feel like there's easier ways to make that money.
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What did she want to spend it on? We didn't ask. Daniel? Oh, Daniel went for a ride.
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I mean, you could do either. So right now you've got the $850,000 house. You only owe $150,000 on it. Correct?
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So if you sold the $1.2 million house, you could clear that.
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$650,000. Okay, and you take that, you throw it at your $900,000 mortgage, and then your cash flow and the rest to pay this thing off. That's what I would do, but I have a sense that you're... You got into these houses for a reason. Was it to make money in real estate, or did you say, we lived in one house, now we bought another house, and now I just happen to have these two houses?
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I wouldn't. So then you have to ask yourself the question. This is kind of a Dave Ramsey question. You have to ask yourself today, if I lived in this... $1.2 million house, and I only owed $350,000 on it. Would I turn around and say, I'd like to have a rental. Let me go over here and buy the same exact house, house number two, and spend $850,000 on it because I want to be a landlord.
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Exactly. So that's kind of a way to flip it around and say, is this really the decision that I want to be in long term? Or did I just end up here? And is it something that I honestly want to get out of? And I think it sounds like something you want to get out of.
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That's a great call, Sia. I like that one. All right. Let's take a social question, Ken.
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He says, I have a sum of money coming in that would either pay off both of my credit cards or my 401k loan. Which would you recommend that I pay off?
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Interesting. I'd go the 401k loan first. There's a couple of things that I'd put top on that list.
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Yeah. 401k loans scare me because here's the thing. And to your point, if it's a big loan, if you lose your job, that thing becomes paid like due in full within 12 months of you losing your job.
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I like it. Buying or selling a home is a really big deal, guys. And you do want an expert in your corner, someone who is fighting for you to find the best deal for the right price. And luckily, the Ramsey Trusted Program is the only way to find a top agent that you can trust. They're going to help you make your home a blessing and not a burden.
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And I'm telling you, it's easy to just compare these different agent profiles. It's easy to interview them and ultimately choose the one that's going to work for you. which is what I like about it because at the end of the day, you're the one making the choice. We're not just assigning someone to you. You're still interviewing them and you're still getting to choose.
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We've just vetted them to make sure they're worth choosing. So find a local Ramsey Trusted Real Estate Pro for free at ramseysolutions.com slash agent or click the link in the description if you are listening on YouTube or podcast. All right, love that. Let's go to Rachel in Dallas, Texas. Rachel, what's up?
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So this was an attempt to save more money.
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Yes, but you are, too. You got to run the numbers on both sides to see if this is going to work. So you said you've got and you've got to consider the time frame, too. So you said you've got forty thousand dollars of debt. How much do you have to put onto that debt to clear it in the time frame that you're thinking? And what is the time frame that you're thinking?
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No, no, don't leave that out. That's that's the one you want to get. Listen, Sally Mae stops for no one. So you don't leave that out. That's part of the debt snowball.
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No, and I'm telling you straight up, don't leave it out, Rachel.
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And you're still taking debt for it? So you're still actively going into debt?
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Were you going to sell something to get this? Or what was your thought?
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Tell me every month how much money you guys see in your paychecks. That's an easier question.
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So you've got $1,250 that you can spend every single month.
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whatever the fancy coffee machine 100 and honestly hearing what she wanted to spend it on if she was like hey i saw this new purse or hey we need we want a new grill for the patio that feels a lot different than her also looking for ways to save money and it sounded like this espresso machine was a way for you guys to see but also go get a 50 coffee pot and just let it drip i know that's right let it drip
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on rent so that's your starting spot now you go i almost said look in the paper or look in the yellow pages i don't know what hit me but you go and you find yeah let's explain what that is to some people people don't know how old i really am i know you go and find a an apartment or something a rental a townhouse that you guys can stay in that'll take your dogs and that's 1250 that is the barrier you
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Because if you go beyond that, it's going to be really tough, Rachel, for you guys to make headway on your debt.
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Yeah. When will he be eligible? This is great. It sounded like he was still in school because he's accruing loans. Is that right?
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All right. All right. So is there a pathway that he's going to make that money?
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It's not, but Ken, I think you're exactly right. There's a lot going on, and if they can just focus in one direction, a clear direction where there is a path forward to your point, you need to go that direction. And so $1,250 a month in a rental that gets you closer to your job and allows him to find work as he pauses education for the time being until he finds a clear path forward.
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Back to the phone lines we go. We got Jen in Calgary, Alberta. What's up, Jen?
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The in-laws paid for the suite to be built onto your house? Yes. Ooh. Yes, they did. Yeah. How much money did they sink into that? It was $200,000. Oh, my word.
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And how much did it raise the property value? From what to what?
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How much have they done aside from the 200K? How much other money have they invested doing the things you're talking about?
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Had you lived with them before? Like, had you lived with them in some capacity before the bright idea came to do this whole flat and add on to the house? Or that was just like, hey, we like you guys when we go out to dinner. Let's live together. Yeah. Did it go from zero to 100 like that?
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What's your idea for them to fix this? What's the idea?
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So detaching it from your house and them putting it on their own lot.
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OK, we talked earlier about money and the math part of it. And you are right. There is more to money than math. It might not weigh as heavily. But is this like the house that you had your children in? Is this the house like this clearly has some sentimental value? It feels like it's more about that than money. The real estate side?
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Then tell me this. Now I'm sensing something else. It's like, we've got this million dollars. It's going to be burning a hole in our pocket. We've got to do something with it. What would it look like to just say, hey, let's sit on this for a Because in any other scenario, whenever somebody comes into a large amount of money like that, we tell them to wait. Like, chill out for a minute.
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Get used to the idea. I'll tell you what it is.
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And I know. I think you're moving too fast.
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But you don't feel right about it. If you don't feel right about it, don't do it.
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They're at an impasse, though.
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Yes, sir. Interesting. What's your combined incomes? $150,000. Okay. How often does this happen?
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No, it's everything. Why do you think he's scrutinizing it so much?
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Is she spoiled or does she just get what she needs? No, she's spoiled when it comes to her dad. Okay, so... Okay. There is a lot going on here. I kind of wish Dr. John was here. There is a lot going on here because on the one hand, it's like... As a parent, I don't say to my son, you're acting a type of way right now.
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And so because of that, I'm not going to make sure you have the things you need for school. Or I'm not going to put you in summer camp. That feels retaliatory. And so I don't feel like that's... the spirit that we should be making our boundaries out of. The spirit that we make our boundaries out of is our budget and what's a logical use of money for a child, right?
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That's the spirit that we use to do that. Right.
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But does he do that in other areas is my question. Is he a tightwad in other categories, or is it just as it relates to your daughter? Both.
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So it's you guys deciding on what's a normal amount and what's considered overboard.
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And the daughter needs to understand it because she feels it and probably doesn't know what that is, right? Well, that's a difficult one. She feels going over to dad's house and it's like, I get what I want. Then she feels going over to your house and it's like, do these people hate me? It's nothing.
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Yeah, I mean, they're going to ask and you can say no. But I mean, the example you gave about going to summer camp, you know, it depends on what summer camp. It depends on how much. I mean, there's a lot of ways that can go.
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Yeah, that's why I said this has to be guided by the budget, right? It's not just a free-for-all on any side. We don't just stop it because we just feel like we're going to stop it, but we also don't spend whatever we want. So it's you guys looking at your budget and going, okay, what's a reasonable amount to spend here? Well, and I've asked him that.
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Well, now that part, let's go to the next extreme. Because just because she doesn't go to camp doesn't mean she has to sit in front. Where I come from, we went outside, and we had to play on our own. And we played basketball.
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Okay, make it happen. No. I agree.
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Yeah, that's the therapy part of it.
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All righty then. Today's question comes from Olivia in Mississippi. She says, last week I was approached by a friend who recently became a multi-level marketing representative. She asked me to join her team and said that many money experts recommended their company as a side hustle to get out of debt. Not this money expert.
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She said that she had been skeptical when she first started, but the checks were clearing and they weren't doing anything illegal. They emphasize that the business is not about recruiting people, but doing so leads to earning more money. Hmm. Is this going to cost me more money than I would be making? Or does that depend on me and how wisely I use this business?
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She's asking us like we're the gurus of this multi-level marketing business. I would just steer clear of it all together if I were you in your shoes. I mean, can I just, okay, let me confess something. I have fallen victim to this. Like back in the day, I just graduated. Let me tell you the quick story. I just graduated college.
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I was working in the mall and a guy came in to my store in a nice suit. And I thought I was helping him, selling him a suit. And he was like, you know, you're a sharp young lady. He kept calling me a sharp young lady. And then he said, you know, I'm looking for people just like you to work in my business. You know, and I was like, you know, I'm in college. I'm like, OK, make some money.
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He starts telling me you can make six figures a year. And I'm like, really? Like I was falling for a hook, line and sinker. Ended up going to lunch with him, with my Sam, who was my fiance at the time. And we still didn't understand it was multilevel marketing at the time. And he's like, yeah, you know, all you have to do. And then here's the thing.
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When he showed up at lunch, he showed up in a really nice Mercedes. And I was like, this guy's making me like whatever he's doing. Then he starts talking about energy drinks. And I'm like, energy drinks? And I realized that's what I'd be selling is energy drinks.
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Well, it was the one product he decided to highlight. Then he says, man, let me tell you about my boss. He is killing it. He takes us over to his boss's house that he described his boss as like living in a mansion. Boss is living in like a normal, nice house. And you still got sucked in? I still fell for it. Listen, I bought the energy drinks. I can't even remember what they're called.
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I couldn't sell one dat gum. It was energy drinks, paper towels. His shtick was, I mean, everybody needs paper towels. Everybody needs energy.
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And I'm like, I didn't sell one dat gum.
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I think it was like 150 or something like that. It wasn't a whole lot.
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Thank you. Thank you. Thank you. Thank you.
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Thank you. Thank you. Thank you.
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What do you see about him that's really, I want to go in another direction. What do you see about him that is really great? That you go, this guy, this guy's got motivation. This guy's got that thing. This guy, like, tell me those things. I'm just curious.
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Okay. I like that. Listen, I'm going to say something really harsh. And I realize this. You can get all of those things from a pet. support, somebody to be there to talk about. I want you to be able to say deeper things. Does that make sense?
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That's a golden retriever, and we love that. That's why we love our animals. They're always there for us. They're there to support us. They've got that...
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Costing you money. And I want to hear you say, you know, this guy, you know, if you were to ask me or my husband that same question, it would be more about... what they bring out of us and what I see, what I go, when I go, oh man, nobody works harder than Sam Warshaw.
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Like that's inspiring to me, the way he will get up and do whatever it takes to take care of his family, the way that he'll take care of his kids, like the way he's sacrificed for us year after, like those are the things that I want to hear. And I'm not hearing that. That's why I kind of flipped it to see, okay, how is, what do you guys mean to each other and what roles are you playing?
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And is it beyond just, Well, you know, they're there when I need them. And what does that even mean?
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Yeah. I think so, too, because.
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Oh boy, how she starts the conversation. Or sets it up. I've been thinking.
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I've been thinking, you know... I love you because you've always been there for me. You've been my rock, but I really needed you to be there for me. I really needed you to show up when it came time to talk about our goals as a couple. And when it came to our goals as a couple, you let me down. You didn't show up with your side of the money. You said you were going to do this.
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You said you were going to do that. And I haven't seen that. And this is the first time you've let me down. And unfortunately, it's in an area that really matters to me because it's not just about you or me. It's about us. Wow. All right.
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Okay, so let me just make sure I understand. You moved from California. You hadn't sold the house, so right now you're still paying for the house?
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Okay. Okay. I think I understand.
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Okay, hold on. Let me clarify. Let me clarify. Make sure I understand that. Are you telling me your parents created a 529, you use the money for education, and they're like, hey, pay us back some of what you used from the 529?
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That's wild. Okay. How much do they want?
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Did you know that on the front side? Or is this new information?
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Okay. Okay. That's okay. Whatever you guys decided, that's the deal. All right.
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What else? So you owe your parents $75,000. You've got $6,000 in the HYSA. Why did you say earlier that since you had $6,000 in the HYSA, you had moved from baby step two to baby step three?
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Okay, got it. Well, technically, well, let me clear that up. You are in baby step two, because baby step two is we pay off all of our consumer debt, anything except our home, if we have a mortgage at that point. So you are in baby step two, and part of that is... taking your savings down to a thousand and putting the rest at the debt.
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Make Money Choices Today That You Won’t Regret Tomorrow
So in this case, yeah, you'd be dropping that HYSA down to a thousand and throwing the rest at the debt. Is there any other debt aside from the student loans?
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Make Money Choices Today That You Won’t Regret Tomorrow
Okay, and how much was that loan?
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Make Money Choices Today That You Won’t Regret Tomorrow
Man, let me tell you something. I'm going to be flat out. I'm going to be straight up with you. Owing money to like debt and creditors sucks, but it kind of feels worse when you owe it to family members because they have a different emotion. It's a different emotion. I, I want you to get out of debt so quickly. Okay. So you're moving to California. You've got the house.
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Make Money Choices Today That You Won’t Regret Tomorrow
What are you going to be making?
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Make Money Choices Today That You Won’t Regret Tomorrow
Okay, so you guys are going to be a little bit over $200,000, like maybe $210,000?
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Make Money Choices Today That You Won’t Regret Tomorrow
Okay. And so I just want to make sure because your mortgage is $5,200 a month. What's your month?
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Make Money Choices Today That You Won’t Regret Tomorrow
I have a question in all of this because I'm trying to track with you on the math as much as I can, but I don't know these direct numbers. How what percentage of your take home is your mortgage going to be? Because California is expensive tax-wise, and the number you gave me, the $4,000, that's not including taxes and insurance. So what percentage is it? Have you done that math?
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Make Money Choices Today That You Won’t Regret Tomorrow
Yeah, and you're not even a little bit over. We got to go back to the drawing board. And I want that for you. I don't want you to be in this situation because you're about to be stressed to the teeth.
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Make Money Choices Today That You Won’t Regret Tomorrow
I mean, I'm just like percentage wise. I just want to lay this out because I think you understand it conceptually like on a very like not detailed level, but like actual numbers putting it in your budget because I'm looking at it like this. I'm like, okay. 15% in a little while, 15%, well, not for you, it's going to be a while, but at some point, 15% is going to go to investing.
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Make Money Choices Today That You Won’t Regret Tomorrow
10% is going to go to giving. You're at 60% on your mortgage. That leaves you 15% to live on. That's not much. And at this point, that would be for paying off debt, which is going to take forever at that rate. So I strongly urge you to consider nothing's done that can't be undone, right? Like you don't have to stay in this situation. It might be, and I think that it is you not keeping this house.
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Make Money Choices Today That You Won’t Regret Tomorrow
It's too much house for you. You got to get out of this house. That's what I would do. And then I'd work on paying off the debt that you owe to your family.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Yeah, I think it depends on, you know, I'm trying to channel Dave right now. I think gifts are really great and I think how people use gifts depends on who they are as people. Because in one person's hand, $250,000 a year is like, hey, this was my grandfather's legacy. I'm going to do great things with it. It's not going to stop me from reaching my personal potential.
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Make Money Choices Today That You Won’t Regret Tomorrow
It's not something that I'm going to use as a crutch in life. Whereas another personality, it could become really a stumbling block for them. So I wonder more about the type of language that's built in as far as what type of person does this grandchild have to be in order to get this money? And is there language built in that says if... If it's harming them, what takes place?
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Make Money Choices Today That You Won’t Regret Tomorrow
Those are the things that I'm thinking about. And I know it's you know, it's not like you can reach out from the beyond and control everything. But those are the things that I'm thinking about. The other part of this. And again, this is your estate. I am not trying to overstep. I see what you're saying. You're like, there's a lot of money that's going to be generated here.
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Make Money Choices Today That You Won’t Regret Tomorrow
I don't want to not let them have it, but I also wonder, okay, well, there's other things that you can give to. That's not just kids and grandkids because you might, it's in many ways like that. You've got so much money. You can only give them so much without really giving them a ton of money. Right.
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Make Money Choices Today That You Won’t Regret Tomorrow
All right. Well, let's talk about the money because what you first said sounded pretty good. Paid off house, paid off car, paid off rental. What else is going on?
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Make Money Choices Today That You Won’t Regret Tomorrow
And then it transfers to their children's children.
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Make Money Choices Today That You Won’t Regret Tomorrow
Yeah, I agree with Ken. The other question I had for you, Ray, was you said, OK, obviously this 250 is paying out to the kids, grandkids, but that's by no means going to drain basically your estate nest egg. And then you said, I hope it would go, but they never get the lump sum. So what happens to it based on the estate? What happens to it? Do you know what I'm saying?
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Make Money Choices Today That You Won’t Regret Tomorrow
Like what what's the transition point?
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Make Money Choices Today That You Won’t Regret Tomorrow
What a blessing. What a legacy. Well done.
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Make Money Choices Today That You Won’t Regret Tomorrow
Uh, yeah, I, the reason I asked is because we kind of say if the HELOC is more than half of what you owe on the house, then you kind of throw it to baby step six and it's part of paying off the house. But if it's less than it's part of baby step two. So for you guys, I would treat this HELOC as though you're in baby step two and paid off in that way.
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Make Money Choices Today That You Won’t Regret Tomorrow
Okay. And you've got the baby on the way. Um, yeah, I, I hear you on that. You're technically in stork mode, I would say in that, in that case, which is you just piling up money to save, um, for this baby being born. And the hope is, you know, you stack up a bunch of money, the baby is born, everything's all good.
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Make Money Choices Today That You Won’t Regret Tomorrow
You know, maybe you pay the insurance deductible at most, and then the rest of it can go on to the debt. And it's kind of like push play on the baby steps at that point. That's what I would do in your situation as far as the idea of saying, I'm going to kind of skip baby step two, and I'm going to do baby step three first. I would not do that.
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Make Money Choices Today That You Won’t Regret Tomorrow
because if you do that you're honestly putting yourself back in the position uh that got you into this mess which is when we don't have savings and when we don't have cash we use debt to do the things that become emergencies or even the things that we say we want to do and so having that emergency fund there is so important so that later on you're not dipping into things like the 401k when an emergency comes or a HELOC when the emergency comes
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Make Money Choices Today That You Won’t Regret Tomorrow
No. So, we'll talk. Let me put it to you two ways. You're almost there. So, the baby steps are baby step one is $1,000 saved. After you get $1,000 saved, you do baby step two, which is you pay off all of your consumer debt. In your case, that's including the HELOC. And then baby step three is you save up three to six months of expenses. Okay.
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Make Money Choices Today That You Won’t Regret Tomorrow
And then you go on baby step four, five and six on down the road. We don't need to cover those just now. In your case, though, since there is a baby on the way, we kind of call that storm mode, which is whatever baby step that you're on. In your case, baby step two, we stop, pause and we stack up as much money as we can, knowing that there's a baby coming. There could be added expenses.
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Make Money Choices Today That You Won’t Regret Tomorrow
We want to be ready for that. Once the baby comes and you go, okay, everything's good. Like I said, maybe you paid the deductible, but you've still got, I don't know, 10 grand sitting there. That 10 grand doesn't stay there. Now you push play on the baby steps and it goes back to paying off the debt. Does that make it a little clearer?
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Make Money Choices Today That You Won’t Regret Tomorrow
Awesome. Listen, that's what Ray would do. That's what Dan would do.
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Make Money Choices Today That You Won’t Regret Tomorrow
Okay. Well, it's not going to be too, too much because you're going to have a mortgage on the house. I would not do that. I would not go into debt to pick up another rental property. I think you could probably go make more doing something else with less risk or no risk attached to it, just in the form of a job.
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Make Money Choices Today That You Won’t Regret Tomorrow
Well, what do you have to spend?
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Make Money Choices Today That You Won’t Regret Tomorrow
Wait a minute. But wait a minute. Even to that degree, my car has 200,000 miles on it.
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Make Money Choices Today That You Won’t Regret Tomorrow
If everybody fits, I thought the reason was nobody, we couldn't fit as a family in the Prius.
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Make Money Choices Today That You Won’t Regret Tomorrow
Here's what I think. I think you need to do more shopping. If I were in your shoes, I would set my budget first because I want that to be the driving factor. Here's what I'm going to spend. I don't want to spend any more than this number right here. I'd set that first.
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Make Money Choices Today That You Won’t Regret Tomorrow
Um, if I were you, the money that you have left, I would probably sit it in a high yield savings account and continue to save for it. If the horizon is more than five years, I suppose you could throw it in an index fund and let it grow a little bit faster. But other than that, nothing's on fire here.
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Make Money Choices Today That You Won’t Regret Tomorrow
Okay, so no more than $26,000. And then I just work backwards. I say, okay, what are we looking for? We want four doors. We want a midsize. We want it to be the color black, whatever it is. And then run that back because the options are there. They might be higher mileage.
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Make Money Choices Today That You Won’t Regret Tomorrow
And then as you begin to narrow that funnel, you might decide, listen, I thought I cared more about the make and model, but really I care more about the mileage. And I just, for whatever reason, I'm not saying it's right, but you might go, I just don't feel good about a car with $150,000.
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Make Money Choices Today That You Won’t Regret Tomorrow
miles fine that's your prerogative but it's going to shift the year and the make and model of car that you get so i think that you just have to have a set of priorities listed in order of most important to least important and then we're working through that model to actually get
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Make Money Choices Today That You Won’t Regret Tomorrow
I mean, Ken gave you the patient can give you what you need to get the job you need.
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Make Money Choices Today That You Won’t Regret Tomorrow
I know, that's right. Take care of that business, Ramsey. I don't want to do it. I hate taxes, Ken.
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Make Money Choices Today That You Won’t Regret Tomorrow
That's a big deal. So tell me more about the numbers. You want to move. You gave me the reasons why. I don't know how good those reasons are, but I digress. Tell me the numbers so we can see if this makes sense.
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Make Money Choices Today That You Won’t Regret Tomorrow
If it was paid off, I wouldn't necessarily disagree with that. If you were also paying for your next house in cash.
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Make Money Choices Today That You Won’t Regret Tomorrow
Yeah, I don't think you can have your cake and eat it too on this. I think that there's a really clear path forward, which would be you're going to have $1 million. The house you own is worth about $500,000, a little less once fees and everything are accounted for. And the house you want is $1.5 million. That's the money right there. So...
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Make Money Choices Today That You Won’t Regret Tomorrow
Without looking at the other factors, because I have to ask you more questions, but let's just say, hey, I want a house that's $1.5 million. Selling your current house gets you the $1.5 million to pay cash for it. I wouldn't do a situation where I do a little bit on this house, rent it while it still has a mortgage, and then put a little on the next house and have a mortgage there.
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Make Money Choices Today That You Won’t Regret Tomorrow
I feel like there's a way for you to do this really clean and come out on top. The only other way would be to take the 182 and pay that off and then buy a less expensive second house. And then you could do the two things at one time. Does that make sense?
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Make Money Choices Today That You Won’t Regret Tomorrow
Wait a minute. What's the other perspective other than math? We're talking about money. That's right. I know. I know.
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Make Money Choices Today That You Won’t Regret Tomorrow
But before you do, we have to ask a couple of key questions to even see, does my idea work? Because we don't know. Do you guys have debt? Tell us about your debt. Tell us about your income. Tell us more.
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Your Income Is Your Greatest Wealth Building Tool
Hey, what's up guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now,
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Your Income Is Your Greatest Wealth Building Tool
i recommend contacting my friends at laurel road today through their online application you can get an initial rate quote in less than five minutes and if you have a more complex situation you can schedule 30 minutes to talk to an actual human being thank goodness laurel road makes it simple there are no fees involved and you could save thousands over the life of your loan remember
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Your Income Is Your Greatest Wealth Building Tool
You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt.
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Your Income Is Your Greatest Wealth Building Tool
If you want them gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
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Normal Is Comfortable, but Comfort Doesn’t Build Wealth
gonna stop by the barbecue trailer it's like uh on father of the bride steve martin yeah so you have to make sure hey this is what i have in mind what do you have in mind definitions matter our girls grew up on father of the bride so we had frank oh yeah frank yes that's so funny yeah that was just it was classic and uh we're like yeah and you're writing the check just like uh
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Normal Is Comfortable, but Comfort Doesn’t Build Wealth
That's it. That's all you get.
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Normal Is Comfortable, but Comfort Doesn’t Build Wealth
There you have it. Oh, I love that.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
That's a partay. It was serious.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Not that there's anything wrong with that.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
So what are your incomes between the two of you with these degrees and these careers?
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
I don't think my husband's willing to sell it.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Does he feel that you guys have a financial problem?
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
So if you told him today, hey, we have $44,000 in credit card debt and $200,000 in student loans, that would be a light bulb moment for him? He doesn't know that?
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Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Listen, you're both complicit because you're married, right? You're both in on this. It's just whatever the level of denial is or the level of, you know what I'm saying? So you're both in on it. We can go back and forth on who did what and who knows what, but you're both in on it.
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Normal Is Comfortable, but Comfort Doesn’t Build Wealth
I mean, you linked it. I'm asking that as a real question. Is there a link?
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Okay. It sounded like the cabin had way more sentimental value. When I look at this, I go, okay, the truck, you're not even upside down. You get rid of that today. Do you have any money saved anywhere, Liquid?
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Normal Is Comfortable, but Comfort Doesn’t Build Wealth
But you guys make enough throughout the year.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
And I don't know where it goes.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Two homeworks. First homework is you got to have a budget. If you don't know where your money, when you said that, I said, okay, they don't have a budget. There's no plan for the money. So you're downloading every dollar tonight. Second homework is when you go to open up every dollar tonight because you've already downloaded it, you sit with your husband and say, we have a crisis.
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Normal Is Comfortable, but Comfort Doesn’t Build Wealth
And I don't know if you know it, but here's what it is. And you start laying out those numbers and say, I have a solution. And you've got to open up the lines of communication tonight.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Are you still actively taking out debt, or have you decided I'm done? Have you changed your philosophy around debt?
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
That's right. And Rita, you need to run actual numbers because what's going to make this compelling, not just to you, but to your husband is to say, hey, here's what we have. You know, teachers, they set aside, you know, you have to pay into the pension. Here's what we have. If we continue to go at this rate, here's what our retirement will look like. Dollar wise, here's what we'll be bringing in.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
And that's going to shed some light when we compare that with what we owe on our mortgage and what we have to like. Real numbers are going to make this a very compelling argument for you guys to do what Dave said and go in the opposite direction.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
All right, today's question comes from Nora in Wisconsin. He says, my mother purchased a Gerber life insurance policy for my son and daughter when they were babies. My mom has since passed away, so I called before my son's 18th birthday to inquire about cashing out. The representative said if we wait until he turns 21, it would be worth 30,000.
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Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Fast forward, and my son is now 21, so I called again to inquire about my son cashing out so he could use the $30,000 for a house down payment. This time, a representative informed me that he had an upon-death policy, and he can only cash out for the money that's been paid in, which is $2,200, not $30,000. Needless to say, I am in the process of closing the accounts for both of my kids.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
I will still give them the amounts their policies are worth, but what a letdown. Tell people to avoid this trap at all costs. And we do. We do tell people to avoid these traps. Gerber Life Insurance is probably one of the worst ones out there.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Yeah, the mom's name was Nora.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
When you're in the delivery room of all the papers that they give to you, they give you the Gerber life insurance policy in the room when you're having the baby.
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Normal Is Comfortable, but Comfort Doesn’t Build Wealth
It is. I remember saying that. I thought, man, it's great to want to invest for your kids and invest for the future, but they give you the worst possible thing. I would rather them give you a paper that says, hey, from here on out, if you just put $100 a month when your kid is 30, they'll have almost $400,000. I don't care. You could put it in an index fund and have that.
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Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Yeah, that's right. That's right.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
And by the way, even if she had had the $30,000, that's still a crappy rate of return.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
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The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
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The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
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The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
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The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
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The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
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The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
That's sweet. So what was her income during this time? Highest to lowest or lowest to highest?
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Love it. I love that you went with the Jeep. That would have been my choice, too.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
I have a question. What role did budgeting play in this?
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
You're right. Yeah, the budget's the map to get you to all your money goals. That's so important. Very cool.
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Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Yeah, Baby Step 1, you are saving $1,000, $1,000 saved. After that, Baby Step 2, you're paying off all of your consumer debt. That's everything except your mortgage. Baby Step 3, you're walking in and you're saving up three to six months of expenses. After you've done that, now we're at Baby Step 4 where you're investing 15% of your income. Baby step five, we're putting away for kids' college.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Baby step six, we're moving on to pay off the house. Finally, baby step seven, living and giving like no one else. And there you have it.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Yeah. And it's not a magic act. You know, a lot of people think this just magically happens, but it's not magic. It's very intentional. It's very intense. And if you do that, you can make it happen.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
No, that's right. Like Dave said, you have a choice, and you guys chose right. And I love that you were both immediately on board. So you never really had the consumer debt. You just both got in, locked in, and said, we're going to do this. Did it feel like a sacrifice? Or was it just kind of, hey, this is just part of our budget. We don't really feel it.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Tell us how it felt paying off the debt of the house.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
That's very true. Very, very true and well put.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Thank you. So you can get a new vehicle.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
They're 30 years old. It could be so much money. So much money.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
That's inspiring. I'm inspired.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Yeah, how much you have to decide.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Just making that decision. Is anybody else, I mean, this is for your class and your classroom. Is anybody else dependent on this money that they're going, oh man, we were expecting that money from Mike that needs to be involved? Yeah. At that point, it's you figuring out, okay, what percentage of, is it 50%? Is it 80% that I want to give away versus keep? And what's your intent with the money?
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Is it that you're getting out of debt? Is this just... to help build up savings, and kind of have a clear picture for all of that, and then you just push play.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
And keep some money aside for taxes because you're going to have taxes on the net profit.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
That's true. Yeah, you'll have to draw a line there.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
He is the cool teacher. I'll give the cool teacher a piece of advice, though, because we didn't talk about it. But if Mike, if you have debt, you do need to take some of this to put towards getting out of debt. Just saying.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
And that clearly shows because people keep coming to him. That is a huge ingredient when you're building your business, I think, is clearly having a passion for it, having a love for it because people can sense that.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
And you're better at it because of it.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Mm-hmm. Yeah, that's where the money's going.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Yeah. You got to. And you got to decide today that you're not borrowing money because I can tell you, as long as you're taking out debt, buying a house is going to become further and further and further and further away from you as a goal. So if you want to lasso that and pull it closer, you need to stop borrowing money, especially things like credit cards and car payments.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Ah, how long have you been engaged?
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Okay, so they know what's coming up. Have they said to you, hey, we have some money set aside?
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Uh-huh. So, how old were you two?
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Okay. So if I were in your shoes and I was in your shoes when I got married, I would have, I would go to my parents and say, here's the date. You said that you were going to help with the rehearsal dinner. What does that look like? And what does that mean for you?
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
And then she goes to her parents. That way, if there's any... feelings like they don't have to deal with having some expectation from the in-law if that makes sense yeah it'd be fine if you went with her to her parents but don't talk yeah exactly it'd be fine if she goes with you to your parents but she shuts up
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
But it's not something where it's like we're inviting both of our parents to dinner and we're figuring this out because I feel like there could be a level of pressure. No, no, I wouldn't put them together. No, definitely not.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
I'm kidding. A bidding war? A bidding war? I love it.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Yeah. And not only the amount, but you know how these things are. People need deposits and they need they need the money well before the fact. So make sure that you also reiterate that because you need to understand if it's going to be a situation where you're fronting the money and then they're giving it to you as a gift on the back end or if they have the money today. Right.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
To put those deposits. So just make sure you get clarity on the timeline and make sure they know that. hey, if you said that you're paying for the venue, I'm just letting you know that they need a deposit in the next three weeks here. That way, because sometimes they're not thinking of it in the same way that you're thinking of it. They're thinking of it October, right?
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
And so just that clarification is going to help everybody.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
Unless, let me throw this out there, if you have some indicator, and you didn't say it, but if you have some indicator that taking this gift comes with something and you don't want the something that it comes with, then you do have the ability to... I'll pay for the venue if you take the venue I want. Or if you invite all my friends or that sort of thing.
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
If you don't want that and you can cash flow it, that's also fine. It's up to you and your wife to be...
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
a zero-based budget just like if you're spending every dollar on paper before the month begins it's project management it's a project it just has a lot of emotions and usually involved are a couple of human projects but um you know and people's definition of work let me just say people's definitions of words are different and it's worth always clarifying because i know with my wedding my parents said we'll pay for the venue in their mind that was the backyard they said we'll pay for the food and they thought that was barbecue you know i'm saying like so
The Ramsey Show
Financial Peace Starts With Clear Boundaries
She's not going to like them much after that, though.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
I just can't understand. Even if they liked each other, what would be ever the purpose of going into something like that? It makes no sense. If she was going to move into it anyway, just buy the house for herself.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
You didn't have conversations about money is what you're saying.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
So you said you're trying to follow the baby steps, right? Yeah.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
He probably feels comfortable because it's his parents. It doesn't matter. It doesn't matter. It doesn't matter. You're feeling it and you're feeling it for good reason. For two reasons. A, it's debt and your body's going to feel debt. And then two, it's debt that you owe to in-laws. Like, let's not make this.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
That's right. Yeah. Let's not make a complex situation more complex by adding debt to it. Right. So, yeah, if you guys have agreed this is the financial plan that we're following, then I'd hold him to that. And I'd say, listen, if we say we're following in the baby steps, we need to pay off this debt and then rebuild our savings. That's what the steps say. That's what the plan is.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
We said we are following that. And I don't feel comfortable with this debt as your wife. I don't feel comfortable owing your parents. And if for no other reason, this should matter because of that.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Quote, dumb butt decision. That's what it is. I love it.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
And think about it like this. You know, your life has changed since you took that loan. Now you're staying home with a child. That's an income that's gone. You have to ask yourself, okay, if we keep this debt around, what happens if there's another major life change? What if your husband loses his job? What if he's laid off?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
So there's a lot of variables here that a lot of times we don't let our brain think about because it's not pleasant. But when you carry debt, you are holding risk. I don't care who it's to because Dave talked about Thanksgiving dinner tasting different. It would taste a lot worse. Oh.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
But Dave, there's so many people who they are sitting on savings while they've got debt sitting over there in the corner. And the thought is, I don't like the risk of not having savings, but they don't entertain the other side of the equation, which is you must not care that much about risk because you've got debt sitting over here.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
As long as it's open, it's still reporting, even if it's reporting a zero balance.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Jeannie, you said you're nervous. Are you nervous because you're unsure of your credit score dropping to zero when you cut this up? Are you nervous because now you won't have this credit card in your life? Where's your nerves coming from specifically?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
It is a battle. Look, I'm going to validate that because the credit card companies, that's what they tell us. They tell us, you can't exist without us. You need us to prop up your life. You can't spend with us. They've been telling us this for decades. Don't leave home without it.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Instead of relying on credit and credit scores, I just like give yourself credit. Give yourself credit that you can handle your own money. Give yourself credit that you can budget and you're a big girl and a big boy.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
No, I was about to say. I know Dave is not talking about it.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Yeah, you took the HELOC out for the credit cards. Tell me what you're spending this money on. Is this just putting food on the table? Is this funding your business? What's going on with these credit cards?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
I think that your mindset is there's some place in your brain where you think you can kind of windfall yourself out of this, whether it's, hey, we'll just take out the HELOC and that'll be our windfall to get out of this, even though it's not. Or, hey, we can go to these craft shows and maybe we can make enough money to get a windfall and get out of this.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
And I think what Dave is getting at is you guys haven't truly looked at your behavior together as a team. If you set... a course and say we're going to do this no one else can make you follow that course of action other than the people in the mirror and that that's what we're getting at is so jack if you wanted to like be like drum have some dramatic moves forward
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Hey, by the way, what do you guys earn? What's the income between the two of you? About $200,000.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
For the critique, I do want you to make more money. But specifically for baby step one, the thing that's going to keep life from happening to you on this, and you take one step forward, two steps back, it's speed. You've got to come in like a wrecking ball and just... Bull through this. I mean, you're selling stuff. You're going so hard in the paint. Most people save this within 30 days.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
I wanted to ask you, how long have you been on Baby Step One?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
That's what I'm saying. She's got to pick up all the work, do all the things, the babysitting, the housecleaning, all of it.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Yeah. So there's a path. You have a path in front of you to earning more, which is good. But for the here and now, we've got to find ways to earn more. And I'm not saying that I like that you're on a path to earning more, but you got to pick up more hours somehow. Maybe not. Obviously, maybe not at the bank. I'm not sure what they offer there.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Look, you're creative. You have a skill set and you have an offering that the average person can't do. There is a way that you can monetize that in some way. and make more money per hour than you're doing right now. I agree wholeheartedly.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
She's a free spirit. She needs a free spirit reflective job.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
All right, today's question comes from Paige in Delaware. My parents live in a different state than my husband and I. Everything is fine when they visit, but when they return home, they send us a bill for things that we ask them to purchase during their visit, such as food prep ingredients for meals, toiletries, etc. The items are usually incidentals, not the full cost of a meal.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Are we wrong to ask them to help with expenses while they are staying with us? Okay.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Yeah, I'm shocked. I truly am. It doesn't make sense. The only thing that I could think of where this made sense is if they came and lived with you for three years or something, but there's no indication.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Yeah. Listen, if my family comes in, I'm the type, I want to give you a little care box. I want the stuff to be in the room, and I don't want you to think of anything.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
To itemize. You ate an apple yesterday. Put that on the bill.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
I'd love to see that receipt. I'd love to see what it looks like. Half a bag of Tostitos.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
You don't need the money. Thank you. What is it?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Listen, you're at your wit's end. We can hear it in your voice. You've, you've gone around and around on this.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
No, no, no, I'm not saying that she lost her rights, but you clearly were worn slap out and were like, whatever.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
He just what? He just now told the bank that she passed away.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Is that why he's looking at it that way?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
And is the credit cards you're using to keep the business going? And what kind of business is it?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Okay, good, good, good. I was going to ask about that. I was going to say this sounds a little bit more like a hustle until it's off the ground. Are you doing anything in the meantime? Okay, great. So what do you do?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
I mean, what if you guys just lived on $80,000 and paid it off in two years?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
And that's how you are now. That's assuming you're not adding any extra income.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
And if you're not using every dollar, you need to get on every dollar because that is going to be the foundation of all of this. If you don't have that, you're not going to move at the speed you think you're going to move.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
What was initially the use of the cabin? When you first bought it, did you buy it because you said, you know what, I'm going to move in here and everybody knew that? Or was the initial purpose of the cabin to rent it out to someone else?
The Ramsey Show
Your Future Depends on What You Do Today
Yeah, you got to play both sides of the equation. If you say to yourself, we make so much money that we could afford to have 50 percent, then that means you also make so much money that you could save up a higher down payment so, so fast. And Rachel, my mind always goes to obviously when people call in, when the rubber meets the road or, you know, the worst happens.
The Ramsey Show
Your Future Depends on What You Do Today
The thing that people are most concerned about is keeping their home. Yes. That is the thing. Like I go back to 2020 and when everything shut down and I know in our life we were in entertainment at the time. And the first thing I thought about is, oh, my gosh, like I hope we get to keep our house because there was no work for those who are in entertainment. And we did the 25 percent rule. Yes.
The Ramsey Show
Your Future Depends on What You Do Today
So, yes. I know COVID is an extreme example. It will never happen again. Like, please, God.
The Ramsey Show
Your Future Depends on What You Do Today
But what you're saying is right. Like something there's always something that comes around the corner that we don't expect.
The Ramsey Show
Your Future Depends on What You Do Today
But therefore, you're good. They're not so we can win.
The Ramsey Show
Your Future Depends on What You Do Today
I mean, I'm listening to what you said, and I feel like a lot of it's on the right track. He's had a job since he's 16. You've been forward with him with, hey, we're going to help you with education up until this point. Here's what we expect. I think setting expectations is such a big part of this and a huge part of college, making sure we know, hey, this is the college you can afford.
The Ramsey Show
Your Future Depends on What You Do Today
OK. OK. In honor of Financial Literacy Month, today's question comes from Austin at Thomas Downey High School. He says, can you successfully build wealth without attending college? Oh, yes. One hundred percent. You can definitely I think probably where that question comes from is, yeah, as a society, I do feel like we push everybody kind of down. Similar pathways.
The Ramsey Show
Your Future Depends on What You Do Today
It's kind of like, yeah, you go to middle school, you go to high school and then you go to college and then you get married and then you get a car and then you get a house. It's like all of the kind of these social targets that we try to hit. The truth is, though, you don't need to attend college in order to be successful. The truth is you do need to be a continual learner.
The Ramsey Show
Your Future Depends on What You Do Today
You do need to make sure that you're extending your education in some form or fashion. That could be trade school. That could be you getting some sort of an internship or studying underneath someone or learning on the job. Plenty of people get a great job and they're just able to work their way up because they've got that on-the-job training.
The Ramsey Show
Your Future Depends on What You Do Today
So whatever it is, it's just making sure that you have the skills necessary. to do the work that you say you would like to do. And that is not always a college pathway. Matter of fact, I find a lot of times, Rachel, in creative arts, it's hard for college programs to keep up because things are always changing, right?
The Ramsey Show
Your Future Depends on What You Do Today
If you want to be a photographer, it can be hard for a university to keep up with cutting edge technology or if you want to be in film and things like that. So there's a lot of different ways that you can do this thing. And college is not always the pathway. Yeah.
The Ramsey Show
Your Future Depends on What You Do Today
Here's the percentage we're going to pay. Here's what we expect from you. And it sounds like you're doing all that. My question for you would be, What have you seen that's giving you pause? What have you seen that's making you feel uncertain about whether he's going to be able to carry this out going forward?
The Ramsey Show
Your Future Depends on What You Do Today
And it depends on what you might want to do. Yeah. Some careers you have to get a degree.
The Ramsey Show
Your Future Depends on What You Do Today
I read this stat that says if you're into entrepreneurship and you're like, maybe I want to start my own business. Only 44 percent of entrepreneurs have a college degree, which is just an interesting little tidbit there.
The Ramsey Show
Your Future Depends on What You Do Today
Yeah, I think, well, A, there's still a big unknown, right? You need to find out how much it's going to cost to do the things that you want to do. And then that'll give you kind of a starting place. But yeah, the average person spends about $5,500 on an engagement ring.
The Ramsey Show
Your Future Depends on What You Do Today
That's kind of a national average, which really is keeping in line with what we would say here, which is to spend about a month's salary on it, no more than two months, which is about what you make. So you're kind of right in that,
The Ramsey Show
Your Future Depends on What You Do Today
normal threshold there so the next step is yeah go to the jeweler and find out what it would take to do the new band and everything like that and my guess is you're probably going to be right there or maybe under since you've already got the stone Yeah. Unless you wanted to add a little something to it.
The Ramsey Show
Your Future Depends on What You Do Today
And don't feel guilty at the end of this. If you still have a little bit of debt, that's going to come into, listen, it's not going to be 10,000 and that's pretty, pretty good based on the things I hear around here. So I wouldn't beat yourself too much.
The Ramsey Show
Your Future Depends on What You Do Today
Yeah, that money piece is big. Getting married money piece is big. How you want to raise your kids is big. What you guys believe, like as far as like religious views, how we want to, you know, all of that stuff. If you can start digging in on that, better now than later.
The Ramsey Show
Your Future Depends on What You Do Today
And we don't want to do that. Marie, you're not letting him have his full income at his disposal to do the things that you want him to do. 75% is a high amount. Like even if you think about the three things you can do with money.
The Ramsey Show
Your Future Depends on What You Do Today
You need that community right now. Like you have that to depend on. I would because the truth is, if you are going to get out of this, it's going to require you working some hours, like working a full time job, probably to support your family. And child care is going to be a huge piece of this. So the question then becomes is what can you do for money? Right. Right.
The Ramsey Show
Your Future Depends on What You Do Today
And he might, he might, it'll probably take a court order for him too. And even still, he might not. And so for you, I think.
The Ramsey Show
Your Future Depends on What You Do Today
Well, don't depend on him. Don't depend on him right now. What Rachel says, right? First step, you get the divorce lawyer. Second step, you sit down with mom and dad and say, okay. we're getting the divorce lawyer. How do we pay for this? And find out what help you have and what help you don't have.
The Ramsey Show
Your Future Depends on What You Do Today
And in that same conversation, that's also a good time to figure out, okay, mom and dad, like this thing is happening. I don't live with him anymore and kind of figure out what create a plan and a vision for the future. Right. It's how long can I stay here? What's that got to look like? And guys, everybody set really clear expectations of what that means. Do I can I stay here for a year?
The Ramsey Show
Your Future Depends on What You Do Today
Can I stay here for it? And really talk this through, because then when you know what the plan is, you'll feel better and then you'll know what you can actually focus on. If you know that you have 12 months and then at the 12 month point, your parents expect you to either start paying some sort of rent or I don't know what you'll decide.
The Ramsey Show
Your Future Depends on What You Do Today
But then that will inform, OK, what do I need to what do I need to do next?
The Ramsey Show
Your Future Depends on What You Do Today
Yeah. So what are you doing currently? Let's start with that. Kind of give us a snapshot of where you are financially. Do you have any debt? If so, how much? And what are you contributing so far to a 401k, if at all?
The Ramsey Show
Your Future Depends on What You Do Today
Okay. And earlier you said you make $80,000. What's your husband make? About $100,000. Okay, so $180,000 total? Mm-hmm. OK. And the car is the only thing between the two of you and you're contributing to a 401k. Is he contributing to one as well?
The Ramsey Show
Your Future Depends on What You Do Today
And so do you guys as a couple, do you kind of view your finances together or do you kind of do it separately? And you're just telling us separately for this call.
The Ramsey Show
Your Future Depends on What You Do Today
Okay, cool. Okay, so technically, if we're talking about how can we kind of set you up in the best possible way, the first thing, yeah, we would clear out that debt. So how much do you owe on the car?
The Ramsey Show
Your Future Depends on What You Do Today
Okay, so logically, I mean, you could clear those out pretty quickly.
The Ramsey Show
Your Future Depends on What You Do Today
And then after that, yeah. Do you guys have any money saved anywhere else?
The Ramsey Show
Your Future Depends on What You Do Today
You already have that. OK, so essentially you could pull from there, pay off these cars and then stack it back up. That's probably what I would do today. What do you mean stack it back up? So you said you have three to six months already set aside? Yes. So is it more than $19,000? Oh, yes.
The Ramsey Show
Your Future Depends on What You Do Today
Okay, so I'd probably pull that money out today and pay these cars off, and then I'd stack back up to where you had it. Okay. Does that make sense? That way you're free and clear today. That is stress off of your plate that you never have to think of ever again.
The Ramsey Show
Your Future Depends on What You Do Today
So at that point, now we're into baby step four where we're putting away 15% of your total income. So however you guys want to divvy that up, if he has a better match or something like that, you could do his first. But the goal is of your gross total annual income, you're doing 15%.
The Ramsey Show
Your Future Depends on What You Do Today
My brain is just thinking about if some treatment popped up that your insurance didn't cover and you wanted to go for it to have some cash there that you could go to Switzerland and do something. Yeah. Some sort of infusion. Do you see what I'm saying? That's where my brain goes. So decide how much that is. And yeah, I put that aside.
The Ramsey Show
Your Future Depends on What You Do Today
Did you know that this would be that you would have to pay taxes on that money when you pulled it out? Did you know that this was coming?
The Ramsey Show
Your Future Depends on What You Do Today
Did you pay the house off? Is the house free and clear?
The Ramsey Show
Your Future Depends on What You Do Today
Yeah, to Rachel's point, I would clear that down to $1,000 today and clear that.
The Ramsey Show
Your Future Depends on What You Do Today
Yeah, I'd try it, though, once you've knocked it down.
The Ramsey Show
Your Future Depends on What You Do Today
And it's going to be easier for you to manage because the IRS, like, they're hard to contact. They don't contact you via email. It's only mail. Like the way they do it is so... And they can do stuff with like garnishing wages.
The Ramsey Show
Your Future Depends on What You Do Today
I said no more debt, but I meant no more leveraging very important things for debt. No more borrowing from your 401k and no more leveraging your house for sure. Oh, I'm sorry. Does that help?
The Ramsey Show
Your Future Depends on What You Do Today
Okay. Is it because it costs you so much to acquire leads? Is that the problem? Or it's just that you're not making enough after a job to do more?
The Ramsey Show
Your Future Depends on What You Do Today
Are you working with are you partnering with the other businesses in your area? Like, are you partnering partnering with realtors and partnering with interior designers and partnering with people who are working with people who will need your work? Does that make sense?
The Ramsey Show
Your Future Depends on What You Do Today
And he's going to make mistakes, and you can't stop it. You can't stop the mistake, and you can't pad him from it.
The Ramsey Show
Your Future Depends on What You Do Today
I mean, could you hire a marketer? Do you have, I mean, could you guys hire somebody to help in that area? Yeah.
The Ramsey Show
Your Future Depends on What You Do Today
Maybe there's just not a huge demand for the type of work that you're doing. Maybe you need to pivot into something that more people want within masonry.
The Ramsey Show
Your Future Depends on What You Do Today
I wouldn't because he's had you've had such a very, very conservative amount of his money that he's even able to devote to that. So loosening the purse strings on.
The Ramsey Show
Your Future Depends on What You Do Today
I mean, I think you have to sit down and talk to your mom and say, here's... Here's what's going on. I understand that you're dependent on me and what I've brought to the table financially for the mortgage and for lifestyle. But I need to move out and live my life. And now you guys can start. Now you put the reality on the table, right? It's not just this thing that you guys aren't talking about.
The Ramsey Show
Your Future Depends on What You Do Today
You've said it. And then you guys can start a timeline of here's what I'm going to start to do. I'm going to start to look for other places. Maybe she can start to look for... I don't know. Maybe there's some sort of a situation where somebody could rent a room out of her house. I don't know. But I think that you guys have to start figuring out what that is because the truth is, is she healthy?
The Ramsey Show
Your Future Depends on What You Do Today
That's great. That lets me know she's an independent woman. She's able to take care of herself. She just hasn't had to yet. You know what I'm saying? Like she has not had to bring in the extra money and she hasn't had to do that because you've been there. But if you step away, my guess is she'll figure out a way to make it work. And that's not necessarily on you to.
The Ramsey Show
Your Future Depends on What You Do Today
But what Rachel is saying is so true. I heard somebody say this and it's so true. You don't teach your kid what to think. You teach them how to think. So right now you're saying you've got to save 75% and that's how to do it, how to do it, but teach him what, which is, hey, you've got to create a budget. With the budget, you need to be able to do three things. Give, save, spend.
The Ramsey Show
Your Future Depends on What You Do Today
Okay, good for you. Is there a track that you could start earning more money? Like, do you see a career trajectory where you're, you know, in the next five years earning more money? Or is this kind of, do you feel like this is it for you in Berlin?
The Ramsey Show
Your Future Depends on What You Do Today
pay more on your mom's mortgage and if she wants to pay extra on her own mortgage you know that's her prerogative but the main thing is i would be looking for a way to move out even if it's into a small apartment a small one bedroom something where it's really modest for you but at least you're kind of able to separate yourself from that dependency um that you guys have on one another um
The Ramsey Show
Your Future Depends on What You Do Today
And then, yeah, it's up to you to get to decide what you do. I mean, the world is your oyster at that point. Yeah. Come, come to the States.
The Ramsey Show
Your Future Depends on What You Do Today
You get to figure out how much of that that you're doing, but just know when the spending time comes, you need to have enough there. And that way you're kind of like slowly removing your...
The Ramsey Show
Your Future Depends on What You Do Today
Uh, did they ask you what they think they should, should do?
The Ramsey Show
Your Future Depends on What You Do Today
Can I interject for a moment? Here's the thing. I feel like we're talking about... the wrong thing. So yeah, you're right. If we're talking about the money side, 100%, I'd say, yeah, they should take the $100,000 and pay off the $100,000 of student loans. They'll have $10,000 of savings and they can stack that up to six months of expenses really fast, right?
The Ramsey Show
Your Future Depends on What You Do Today
But what is really striking me in this call is they're newly married. And it feels like and I listen, I don't want to over. So I'm just telling you, I'm trying to call a spade a spade. It feels like you're the third man in the relationship. And I kind of feel like that's going to cause problems going forward. So I am of the mind of let them figure it out. And if they truly do ask you.
The Ramsey Show
Your Future Depends on What You Do Today
That's different, but I don't think that it would be healthy if you're kind of in her ear over there or in his ear over here. I feel like you have to kind of let them be a new couple. That's just me. And figure it out. Yeah, Rachel, you might say something a little differently, and that's fine.
The Ramsey Show
Your Future Depends on What You Do Today
That's good. Good. I'm glad. It's like my son says, it's a taco burrito conversation, not shows.
The Ramsey Show
Your Future Depends on What You Do Today
I think it's the right thing. I think I love what you said, because at the end of the day, it is kind of that dignity to the spouse of saying, hey, like, especially the dad daughter's relationship, would you say? Yeah. And for this, the husband coming in like that's that role has got to shift like this. And yes, it's tough to do that.
The Ramsey Show
Your Future Depends on What You Do Today
But I think you have to pull your hands off in order for that to make the transition it needs to make.
The Ramsey Show
Your Future Depends on What You Do Today
Especially if the dad and son are very close.
The Ramsey Show
Your Future Depends on What You Do Today
All right, this is getting weird over there, guys. What do we do?
The Ramsey Show
Your Future Depends on What You Do Today
Okay. And how much of that do you take home? Like per month, what do you guys are bringing home?
The Ramsey Show
Your Future Depends on What You Do Today
Okay. So you want to have a mortgage that's $8,000?
The Ramsey Show
Your Future Depends on What You Do Today
When you say maxing out, is that 15% or you could, you could give more and still max it out is what I'm saying.
The Ramsey Show
Your Future Depends on What You Do Today
What's the split on your income? Who makes what? I make...
The Ramsey Show
Your Future Depends on What You Do Today
Okay, so here's where my mind goes. I can understand what you're thinking, which is as your income goes up, the percentage feels like it goes further, right? That 50% that you have left over feels like it goes further than if somebody were making $60,000 a year and said, hey, I want this to be 50%. Do you see what I'm saying? So I understand where you're going there. Where my mind goes is...
The Ramsey Show
Your Future Depends on What You Do Today
I am of the mind where there's certain ratios that they're just locked in because if life changes, you're still protected. So if something happens and your wife is like, Hey, now I'm going to stay home. And, or if, if, do you see what I'm saying? Like if something changes, y'all have kids, Tony.
The Ramsey Show
Your Future Depends on What You Do Today
I just go towards if something changes, where does this put me? And these are just things to play out with your wife. Where does that put me? The other thing I think about is just in general, percentage wise. OK, if I'm putting 50 percent towards my mortgage and then if I'm giving 15 percent, and my IRA contributions, Roth IRA 401k retirement. And then let's say I'm a generous person.
The Ramsey Show
Your Future Depends on What You Do Today
So I'm giving at least 10%. Now I'm at 75% and I haven't saved for kids college. I haven't put extra on my mortgage. I haven't done any of those other things. And so suddenly, no matter what, that pool does start to shrink a lot. And that's kind of where the methodology of that comes from. And I don't think that you have out-earned that feeling, if that makes sense.
The Ramsey Show
Your Future Depends on What You Do Today
And so how much will they have when it's time? You've played it out. I know you have. He's run his numbers, Tony.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay. So that's a, that, I mean, what is that? Six months of expenses? Is that five months? What is that?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay. So I'd keep that just like that. And yeah, I mean, it's really going to be you balancing how much do we need to save for a home and then doing kind of working backwards and saying, okay, this is what we need to save. How long will it take?
The Ramsey Show
Your Future Self Deserves Better Choices Today
and at this savings rate and then you say that takes too long let's you know come back further truly if you're walking the baby steps truly what you would do is you would back it all the way down to 15 save up for that down payment and you would start like knocking away at that home payment and before you upped your um you know fidelity contribution yeah and how much is left on the camper debt wise well we just bought it we've only had it for about three months so it's
The Ramsey Show
Your Future Self Deserves Better Choices Today
Yeah. The problem is what Rachel and I are asking you to do, you're kind of investing on two ends. You've got your retirement fidelity investment, but when you buy a house, that's also investment. It's something that's going up in value. So while it may feel like you're pulling away from your 401k or fidelity investment, you're actually kind of diversifying in that way.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Whereas now you're putting money into something that's going down in value. And do you see what I'm saying? So Rachel and I are giving you two income tracks as opposed to just one.
The Ramsey Show
Your Future Self Deserves Better Choices Today
I wouldn't pay it off. I just, I think they need to get into a house sooner than later, like as quickly as they can afford it.
The Ramsey Show
Your Future Self Deserves Better Choices Today
You're saying because if you had received it as inheritance, you would have done what with it?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Well, I wouldn't think of it as borrowing. You're just getting a piece of it earlier. Yeah. For something that you want to spend it on.
The Ramsey Show
Your Future Self Deserves Better Choices Today
um i do yeah it feels like a gift very much so and as long as are your parents in a good financial situation to give you this cash and it not hurt them yeah yeah yeah they are listen i hope that one day i mean one day i will be there when my kids buy a house and i'll be like here's some cash to put towards your down payment that's what i plan to do uh with sam and so i don't think there's anything wrong with this um
The Ramsey Show
Your Future Self Deserves Better Choices Today
What's your margin every month? What are you right now putting towards debt and Baby Step 2 that you could put potentially towards saving up for this or doing one at a time?
The Ramsey Show
Your Future Self Deserves Better Choices Today
And maybe one of you goes at a time to see if it's helpful. Oh, that's a good point. You know, I know you're two different bodies with two different sets of you know, but that might be a good way to say, listen, I did it. It did nothing for me or I did it. And it really, really helped. That might give you some confidence going into the next treatment. It's just a thought.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Like, I don't know what you're facing. I don't know if it's headaches or every time you eat, you know, whatever it is, if it's something that's truly debilitating, but if it's just, And again, I'm not I don't want to downplay it either.
The Ramsey Show
Your Future Self Deserves Better Choices Today
But if it's something that's more of an annoyance that you're learning to live through, that gives you, you know, there's a little bit more timeline there to get this done. For sure.
The Ramsey Show
Your Future Self Deserves Better Choices Today
If it's a place that you want to be, it keeps the payment where you had it originally. I mean, Rachel, do you see anything?
The Ramsey Show
Your Future Self Deserves Better Choices Today
That's difficult. I remember when Sam and I were getting out of debt. This was before the days of Obamacare and you had to have insurance or else you were penalized. We didn't have insurance. And one day he was pulling our luggage out of the back of the Jeep and it got caught on his finger and he broke his finger. Oh, no.
The Ramsey Show
Your Future Self Deserves Better Choices Today
And we didn't have insurance, and I was like, listen, head over to Walgreens.
The Ramsey Show
Your Future Self Deserves Better Choices Today
It's crooked to this day. And, you know, he plays instruments. It wasn't good.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Yes. What caused you to go into the debt if you were in this or were you not in this living situation before? Either way, what caused you to go into the debt?
The Ramsey Show
Your Future Self Deserves Better Choices Today
So are you saying that they're wondering, are you saying that you kind of want to give them some context as to why you're working so hard at the jobs you're doing? Is that what you're saying?
The Ramsey Show
Your Future Self Deserves Better Choices Today
to leave the country okay cool and so listen with us with her bringing that up continuously having some experiences already are you guys from do you have a non-us background is that what you're saying are you concerned about immigration is that what you're saying no when you say we're african-american okay oh i i hear you okay enough said here's what i'm thinking here's what i'm thinking um
The Ramsey Show
Your Future Self Deserves Better Choices Today
I get what you were saying earlier. You're talking about a lot of different things. So let's talk about first the financial side of things. A, if you want to give somebody context without giving them a ton of details, that's fine. You can say, listen, I've got some debt I'm trying to pay off. That's why I'm working so hard. If you don't want to tell them the whole $30,000, hold on. Here.
The Ramsey Show
Your Future Self Deserves Better Choices Today
I couldn't have said it better myself. Rachel said it while I was in a coughing fit and she covered it. You can probably have a lot better, more to add. That was it. She covered it. That's exactly it. I won't repeat it, but I think Michaela, you know what you have to do. And just listen, above all, don't be influenced by somebody else's fears.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Yeah. So this is great. I love this for you. I feel like this is exactly what it's all about. Like it's all about having your money in order so that you're able to put the next generation in a better position. And so this is really money doing it's doing God's work.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Like if they have fears and concerns, they're, they're, they're, um,
The Ramsey Show
Your Future Self Deserves Better Choices Today
able to have those everybody gets to have the emotional train that they want to have um and if you feel the same way fine but don't let it if you don't don't let that fear kind of lock you into something you should or shouldn't be doing with your money okay i um thank you thank you truly i i'm i'm sorry i'm really trying not to cry that's all right what what is it what's what what is making you want to cry
The Ramsey Show
Your Future Self Deserves Better Choices Today
No, what you're talking about is so real, like the guilt that we feel over previous mistakes that we've made with our money, the guilt that we feel having not met expectations that we feel were put on us or maybe that we've put on ourselves. What you're talking about, Michaela, is such a real thing. And
The Ramsey Show
Your Future Self Deserves Better Choices Today
A lot of times when we think about getting our money under control, we kind of think it's just this light switch that we flip. All right, I'm getting on a plane. That's it. And I just do it. And I feel nothing until it's over. And that is simply not true. You go through a wide range of emotions and guilt and shame is one of them.
The Ramsey Show
Your Future Self Deserves Better Choices Today
But I want to tell you, Michaela, you may have made mistakes with your money, but you are not a mistake.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Every dollar. Oh, my God. That's great. She's like, I know it, and I love it.
The Ramsey Show
Your Future Self Deserves Better Choices Today
So you're paying thirty eight hundred every month with your mortgage all in, all included. What are you what's what's your top line of income? What are you bringing in every single month?
The Ramsey Show
Your Future Self Deserves Better Choices Today
I feel like it could definitely feel different if it's, if you're the, I'm not trying to enforce gender roles on anybody, but I feel like it could feel different if you're the guy and it's like the mother, your, your wife's family. Yeah. Yeah. I feel like it could feel a little different. Listen, a gift is a gift. It's a blessing.
The Ramsey Show
Your Future Self Deserves Better Choices Today
What's that look like monthly for you on a good month or a normal month?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Right now. What would that look like? Sorry, I'm moving you along so I can make sure that we, we answer you.
The Ramsey Show
Your Future Self Deserves Better Choices Today
So, Lori, what's your main question? What can we help you with today? Okay.
The Ramsey Show
Your Future Self Deserves Better Choices Today
What's causing you to, what's making you feel like it's to the wire that you have to do it, that you would even consider doing it below the two-year mark?
The Ramsey Show
Your Future Self Deserves Better Choices Today
You're paying almost $4,000 a month for housing. So there's no way you can keep that.
The Ramsey Show
Your Future Self Deserves Better Choices Today
You're exactly right to feel this. I mean, this is far exceeding the amount that we would say it should be. I don't know. I don't see how you can keep this going without going into debt. I'd sell it. You're going to take the hit on the capital gains. That's fine. You made money. And then truly you've got to get in a situation where you're getting that payment. That's 25% of your take home.
The Ramsey Show
Your Future Self Deserves Better Choices Today
whether you're buying or renting for a season, still don't let it exceed that.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Yeah, that's right. How quick can you get the 6,500? How quickly can you save that if you paused your snowball?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Yeah, you're used to living on $60,000. So why not? Ooh, I concur.
The Ramsey Show
Your Future Self Deserves Better Choices Today
So you're thinking 36? Is that what you're saying?
The Ramsey Show
Your Future Self Deserves Better Choices Today
So if you, let's just say you did that. I'm not saying that I would do that. But I mean, that gives you, you're going to come out of this with $15,000 or $16,000. That gives you enough to pay off the remaining debt. That gives you enough that you could pay for school and buy a junker. And you're only going to drive that beater car for a little while because you're going to be making $100,000.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Or maybe you'll drive it for a while because you're on the road. Mm-hmm. Wow. I love that this this Highlander is breaking you free. This is great.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Well, you'll never go into debt for a car again. You've learned your lesson. And with what you're setting yourself up, the next time you buy a car, it's going to be in cash and it's not going to be a junker. It's going to be something that you've, you know, vetted and looked at and used in nice, right? You're setting yourself up to be able to do that in the future.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Oh, so is the problem that when you're looking for business insurance, you're just not finding anybody who will offer it or is it the price? Tell me more about that. And also have you, yeah, tell me that first.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Is that the problem that you're calling yourself a handyman and you should be titling the type of work you do differently? Is that what they're looking for? I'm not an expert on business insurance, so I'm just asking questions to see if we can drill it down.
The Ramsey Show
Your Future Self Deserves Better Choices Today
And maybe that is what you do in order to kind of get your foot in the door because I feel like the more you're in this world, the more you're going to learn. And it might be a good idea for you to start small. Oh, go ahead, Rachel.
The Ramsey Show
Your Future Self Deserves Better Choices Today
I mean, what you're talking about, how to do that, what you're talking about is so common, whether it's saving up for a down payment, Rachel, or if it's just, I'm trying to get three to six months saved, whatever it is. I find that when your income is low, you've got to do something that's going to create momentum for so that you can build up that speed to get over that wave, right?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Yeah. I'd get into some, I don't want to sound like I don't understand the internet, but I'd get into some chat rooms or like get on Facebook, get in some forums and ask people, hey, what license did you do? How were you able to be a handyman or a kind of jack of all trades and also be insured? And see what people who are doing it, how they're insured.
The Ramsey Show
Your Future Self Deserves Better Choices Today
All right. Today's question comes from Melody in Virginia. She says, my husband and I are in our early 40s and got married last year. While we were dating, my husband bought a house for us. I participated in the whole process and he paid the down payment and the mortgage until we got married. We have joint accounts. All that we make goes there and we treat all income as ours.
The Ramsey Show
Your Future Self Deserves Better Choices Today
We worked together to pay off the debt we brought into the marriage. My husband recently became very ill and agreed to do some estate planning. I asked him to add me to the house deed and mortgage, but he wants to just stipulate in his will that the house will be mine if something happens to him. I don't care about the house itself, but while...
The Ramsey Show
Your Future Self Deserves Better Choices Today
But while I made sure to put him as a beneficiary for everything that is mine, he has friends and family as beneficiaries for what is his. Am I wrong in feeling off about this whole situation? Yeah. I would definitely feel off about this. The truth is, okay, so let's talk about the will thing first.
The Ramsey Show
Your Future Self Deserves Better Choices Today
And so for you guys, it might look like building up income, working extra for a season so that you can really get past those hurdles that you see and kind of get that footing under you. Because the truth is, all the things that you're talking about, I mean, that is life, right?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Because if you were like, hey, I'm not on the deed and there's no will, that would really be a problem. Just looking at it as that. Because I'd say, well... If especially since you guys bought this thing before you were married, it could go to probate depending on what state you're in. Yeah. And it would take time for it to really iron out and go to you. The other thought is, but there is a will.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Then my next thought is like, have you seen the will? Because I want to see it with my eyeballs on it.
The Ramsey Show
Your Future Self Deserves Better Choices Today
for real yeah so because if not depending on what your state what your state is again there could be an issue there then there's the relational side of what's going on here like why doesn't he want that and i also want to know well why are your friends and family on the other assets like what is it what could it be a 401k anything else a savings account anything else that would have a beneficiary that would be in his name exclusively that she couldn't be on yeah
The Ramsey Show
Your Future Self Deserves Better Choices Today
Yeah. So what stands out to me, and I'm going to read a lot into this, but this is just what stands out to me. You're in your 40s. You've only been married for a year. It sounds like there's something previous that's playing into this. Like maybe there was a previous spouse or a previous relationship and he has trust issues. Something is going on there.
The Ramsey Show
Your Future Self Deserves Better Choices Today
I find that when people are later in life in those relationships, there tends to be more walls up. Yeah.
The Ramsey Show
Your Future Self Deserves Better Choices Today
cars break down it's time to replace that you know having babies yeah having babies i mean all of that is just kind of part and partial to life um and when you have a lower income you're right it does it feels like two steps forward one step back right so you're going very slowly um and i challenge you to say where where is an area that you can pick up work i mean you said you're a stay-at-home mom it sounds like you have a two-year-old what could you do to add to the income what could your husband do
The Ramsey Show
Your Future Self Deserves Better Choices Today
And depending on the state, I don't want to get this wrong, but depending on the state, let's say that the house was bought. It was bought pre-marriage. It was bought in his name. Technically, let's say that he passed away and there was debt that she didn't know about it. That house, depending on the state, could be treated as an asset and they could sell the house to pay the debt. That's right.
The Ramsey Show
Your Future Self Deserves Better Choices Today
So... This is important. You know what I mean? It's important, A, to know your state law. B, it's important to make sure that these assets are protected because it's probably the thing that they have that's their biggest asset that has the ability to generate the most money for her if she were to sell it. So this is an important issue.
The Ramsey Show
Your Future Self Deserves Better Choices Today
I mean, I'm of the mind to take any job until you get the job, whatever it is, you know, right now you're unemployed. So let's get something just to keep you going.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Yeah. Do you have six months of expenses? Three months? What do you have? We have about five. Okay. Yeah. I mean, I'd make it my goal to like in two months start, you know what I mean? Like put a goal out there because if you aim at nothing, you'll hit it. So give yourself a clear goal of here's the timeline I want to meet and give yourself contingencies.
The Ramsey Show
Your Future Self Deserves Better Choices Today
If this doesn't happen, then I'll do this and really write out a clear plan so that you don't feel like you're just floating. but that you feel like you're making intentional steps in a real direction.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay. Yeah. The other question is where you're renting now, what percentage of your income? Because it could look like, okay, we're going to sacrifice where we're renting now. Maybe we go to a smaller place and that frees up enough margin that we can get this done a lot faster. So I would just challenge you to look at some of those areas that maybe you thought were untouchable.
The Ramsey Show
Your Future Self Deserves Better Choices Today
I end up in every dollar sometimes. Every time. I open it instead of Spotify because it's
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay, yeah. You know what, Tanner? I'll be honest with you. So much life happens in a five-year span, in a 10-year span. And a 30 year span. So I I as much as I love the sentiment, the truth is you have no idea what house you're going to live in for the rest of your life.
The Ramsey Show
Your Future Self Deserves Better Choices Today
around ninety thousand okay good for you and it's just you or do you have okay listen that's even another reason to think this through because chances are on down the line you'll you'll meet a mrs tanner and she's going to have a different expectation of where she wants to live so right now i'm with rachel i would focus on um something smaller something you can afford you know the rule of thumb that we go by is of course you want to
The Ramsey Show
Your Future Self Deserves Better Choices Today
Because we all have those areas that we kind of like hold close. That's like, I'm not changing. You know, this is my apartment. We're comfortable here. I'm not moving. Or this is my schedule. It works for me. I'm not changing it. And unfortunately, a lot of times our opportunity rests in those areas where we're comfortable.
The Ramsey Show
Your Future Self Deserves Better Choices Today
have your three to six months emergency funds saved up. And then you're saving a separate down payment, no less than 5%. But if you can get it to 20%, that's great. And all in house taxes, insurance, HOA, you don't want that payment to be any more than 25% of your take home. And so that's what we're looking at. If you can get a 15 year fixed rate, that is amazing.
The Ramsey Show
Your Future Self Deserves Better Choices Today
So that's kind of the standard that if we're saying like good, better, best, that is the best way that you could possibly buy a home. And then above that is just you paying cash, right?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Rachel, let's talk briefly about that forever home deal, because I hear that a lot. And in his case, listen, his Tanner's heart is pure. Like he just he's just a simple guy who just wants to settle down. But sometimes I hear that and it's almost like an excuse sometimes. to spend more or kind of like push that barrier. Do you know what I mean?
The Ramsey Show
Your Future Self Deserves Better Choices Today
Because like, this is my dream house. We're never moving anywhere else.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay, and then just for clarity, the collections, it's $1,760. Is that what you told me?
The Ramsey Show
Your Future Self Deserves Better Choices Today
And listen, they might sue you, but you don't have anything. They have nothing to take. And so that process, it's really more at this stage, it's likely more of a scare tactic. So just after these collections, it's the next thing in your debt snowball. What's your income? What are you bringing in every month? Because you got $9 saved. Tell me real quick, because we're about to head out.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Okay, so there's your issue right there. And I think you know what we're going to tell you. You've got to get up to full-time, a full-time schedule. Full-time at $21 per hour, you can get some things done. But let's find a way to get that income up because that's really the key to this puzzle.
The Ramsey Show
Your Future Self Deserves Better Choices Today
And the 75%, what does that amount to every single month that you're putting away?
The Ramsey Show
Your Future Self Deserves Better Choices Today
in a mobile home um or in a camper and you probably aren't going to live in that you know for the rest of your life so um i would be putting i would be thinking about housing long term what's your pension right what will you receive monthly um right now um well with disability uh it comes out to 2500 a month okay and what do you at this point in you guys's life what's kind of that number that makes your budget run just kind of your your normal month-to-month budget
The Ramsey Show
Your Future Self Deserves Better Choices Today
What's the motorhome payment? thirteen thirteen hundred dollars a month okay yeah i agree 100 with rachel unless you guys have decided that this is just your way of life forever and you have just given the finger to home ownership uh i agree with what rachel is saying i think you do want to stabilize that and you probably want to get into something that you not only that you can afford right now
The Ramsey Show
Your Future Self Deserves Better Choices Today
but you'll be able to afford in the long run if your income changes, if you stop working, that sort of thing. And so you guys have a lot to think of here because $2,500, while it's a stable amount that'll be coming, it's not very much, right? And I do want to... I mean, at this rate, if you keep saving at the rate that you're saving, yeah, you'll be...
The Ramsey Show
Your Future Self Deserves Better Choices Today
close to a million, a little less, 850 maybe. And so I see why you're trying to kind of speed that process up. Now is the time that I'd be putting the pedal to the metal and bringing in as much income as I possibly could to save up not only for a down payment, but keep investing that 15% and get this thing done.
The Ramsey Show
Your Future Self Deserves Better Choices Today
Well, I just don't see how you're going to be able to save up for a down payment on a secure home at 75 percent. Unless you see a way that I don't see.
The Ramsey Show
Your Future Self Deserves Better Choices Today
I, you know, I have contemplated that, but I mean, you could, you could do up to your catch up contribution, which is still not going to be 75%. I don't think, um, what's in the, what's in the high yield savings. What do you have in there?
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
I think you're missing the beauty of the type of business that you're starting, which is this is a business you can start with little to no overhead.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Today's question comes from Patty in Illinois. My husband and I purchased a very modest home for his parents due to the rising cost of rent in our area. My father-in-law is disabled. My mother-in-law works full-time at a very modest job, and they pay us a small amount of rent each month. It's been five years now, and the home has required a lot of repairs, such as water, intrusion of mold.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
We've been able to cash flow the problems, but it has cost over $15,000, not to mention our sanity. It has also changed our relationship because they frequently contact us for issues or requests in spite of many conversations about what is, quote, nice to have versus what is, quote, needed. We're trying to honor our word, but it has been very taxing emotionally and financially.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
We're in baby step six and we need to plan for our own retirement. I keep telling myself to suck it up, but we are losing tons of money with no end in sight. I've listened to the show long enough to know we probably shouldn't have done this, but at the time it felt like the right thing to do. What would you do if you were in our shoes? Well, first off, I wish I had more information, Dave.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
I want to know how old these parents are. I want to know. I want to know more. I want to know the value of the house because I'm thinking if you bought a house in 2019, like the value's probably gone up a good deal. So they're... They might not be losing money in the way that she thinks. Now, the actual idea of doing this, I think, was a really bad idea.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
I think there was just a lack of foresight here. And I don't know what the promise was. Did they say, hey, we're doing this house. You're going to live here until you die. And we're covering it. I don't know what the promise was. But I think that they may have promised more than what they could deliver on. And I think that's probably what she's feeling some type of way about.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Yes. Uh-huh. I think it's a little bit of both. She does use the word we a lot, which makes me think that there is some unity.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
And they're getting some rent, which is good.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
And probably pay off your house and more if you haven't already.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
I don't think so. Now, there is part of it where they may have bitten off more than they realized they were going to be chewing. Do you know what I'm saying? Like in theory, it sounded good. And then when you start walking it out, you're like, oh, my goodness. But to your point, if she's writing into our show, there's something that they're not talking about.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
I think, to quote myself, I think there's also a vocab rehab that needs to happen.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Because here she's saying, my husband and I purchased a very modest home for his parents. They don't own the home. They're renters. You guys bought a house for yourself. It's your asset. It's your home. And I think if you start viewing it as an asset that we have, it's going to change your thoughts.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
That's right. As opposed to it's there. Guess what?
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Because also their age might play into it. If they're 87, suck it up.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Well, walk that out. So let's say she's listening. She goes, yeah, you know what? They are in their 50s. They need to get out of this house. They've been paying us a small amount of rent. What would you suggest in that situation to fairly?
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Now, if they're only paying, you know, the mortgage is $2,000, and she said they're paying a small amount of rent, so they're paying $1,000, the proceeds, I'd split.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
That's true, but she did say, we're in baby step six and need to plan for our own retirement. So that made me think they might want some money.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
In lost situations, they get salty really quick.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Foresight. You have to play these things out in your mind. years and years to see where it will land and all of the different variations of the plan.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Also, she's spending as a coping mechanism. There's something that she's trying to cope with, and she's not doing it in a healthy way, and so she's looking to spending.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
What'd you spend and did you budget for it or did you just go and do it on a whim?
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Yeah, and to be honest, if I'm in their situation, I'm probably going to seek out some counseling.
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
And he ran your book into the ground. Okay.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Jeff, does he have any other debt besides the tax debt that you know of? Do you know what that number looks like?
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Yeah, and you don't have to feel guilty about it. It's just part of it.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
I don't think you should do any of that, Jeff. I really don't.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Are you opposed to saving this money? I mean, you said that initially it was maybe for a wedding, maybe for a down payment. Why wouldn't you set it aside and add to it as a down payment?
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
I think that he's grown and I think that he makes a living. He's not poverty level. There's nothing wrong with him. I think he just needs to be a man and do man things.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Yeah, plan on having it in there five years or so. That's what I'd say, so it has some time to go in the right direction.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
So the ex, I have a question about your ex-husband. Is he going to, if you both said, all right, it's $100,000. I pay 50, you pay 50. Is he going to, is he going to do it?
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
I was going to say, how much would you spend to do that?
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
They can. After he becomes the owner, they can, yeah.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
What caused you to wait the five years as opposed to rolling it over?
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Can he put something in there that says if the debt's not paid off, the home goes elsewhere until the debt is paid off?
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Do you guys have any, will you have debt together?
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
I absolutely agree with that. And you get to know each other a little bit better. by then.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
And the longer you wait, the more you'll have more money to put down on it.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
Are you trying to make a call here, Dave? No. Are you calling something? Nope.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
I didn't know if you were seeing your shadow or what.
The Ramsey Show
Debt Isn't The Problem - Your Mindset Is
You already know the answer, JT. What's the business?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Why would you feel bad? Tell us more about that. He's making a sacrifice that you've already admitted, hey, it's not the best thing. I mean, it's $50,000 of debt. Why would that make you feel bad?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So is that on top of the 180 or that's what you're at now?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Would they sell it to you just for not much that you could know that you have it?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Listen, one thing I want to encourage you is I, you know, again, I don't know the timeframe that you guys have for this and I'm not trying to rush you, but, um, I would not delay moving forward in a relationship because of debt.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
I would encourage having those conversations because the truth is a good man and a good woman says, hey, I love you despite your debt and I'm coming alongside of you with that debt. And I get it. Like you do feel guilt. You can feel shame about that. Those are very real emotions, but emotions are meant to go through you. It's when you stay there that they prevent you from moving forward.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And so allow that to, you know, you can feel that and let it pass through, but let this good man or whoever's listening, let you get that relationship that you want to have and you guys can tackle this together.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
George, let's take it back to the phone lines. We've got Aiden, who's in Fayetteville, Arkansas. Aiden, you're on the line. How can we help?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Are you working? Like tell us about your working situation.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
How much is the mommy makeover?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Can I ask about your parents, where they're at in this, or are you just kind of on your own at this point?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
I wonder if the context changed. Like, I wonder if the context changed from, hey, mom and dad. And I'm not saying that you did this, but if you said, hey, mom and dad, I need money to go out and, you know, for food and clothes like that has a different context possibly than mom and dad. This money from granddad is running out.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
I really don't want to go into debt because I know that debt is a bad thing. Is there any deal we can make where we're working together to pay this tuition in cash? or we're cash flowing this, I'm willing to do what it takes. I wonder if those are two different conversations. Do you think that they could value that second conversation?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
From the Ramsey Network, it's The Ramsey Show. I'm Jade Warshaw. Next to me is George Campbell. We are taking calls all afternoon about your life and your money. And if you'd like to get involved, it is a live call. You can call the numbers 888-825-5225. That will get you on the line. George, you ready to get this thing started?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay. Okay. That's not as bad.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Do you need to live on campus? Is there, or are you close enough? Like would your parents let you live at home and save that $700 a month that way to go towards this tuition?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Is that what you earmarked it for, the $50,000? Is that what you guys said this money is for, or was it originally for something else?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Can I ask a question? I'm not trying to throw a huge wrench in this, but I want to make this happen for you because I do believe that you don't want student loan debt. Is there a situation? Have you looked in Tulsa to say, hey, I want to finish my degree there. I can live at home. I can do it less expensive. They'll take my credits. Have you explored that?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Because getting the seven hundred dollars back. over the course of a year is going to make a big difference on all of, I mean, it's almost a thousand bucks a month. Getting those expenses back is going to make, really could be the difference between making this possible and it not being possible.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
at all then that's great but if you look into that school and say okay here's where i am now you know you get in with their administer their admissions office and find out what it would look like this is all research is what i'm asking for just so you can really see what your options are because a lot of times we paint ourselves into a corner and we're really not in a corner there's lots of options so i would look into that i'd also look into an online situation and see if there's a way that you can mitigate some of these costs yeah what are you trying to live elsewhere
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
I think the thing to take away here is you're going to have there's there's going to be a level of discomfort in the solution from what you're saying. I don't think you're going to be able to go on as you have.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And I think letting yourself know that, like just kind of taking a moment and standing in the mirror and going, OK, the way I thought this was going to happen is not going to be the way this is going to happen. It doesn't mean it's a bad thing. You know?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
I know, that's right. But it's so hard. You know, when we have a way where we thought things were going, it's kind of hard to deviate from that path.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Mm-hmm. Hey, what's up guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now,
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
i recommend contacting my friends at laurel road today through their online application you can get an initial rate quote in less than five minutes and if you have a more complex situation you can schedule 30 minutes to talk to an actual human being thank goodness laurel road makes it simple there are no fees involved and you could save thousands over the life of your loan remember
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Listen, mom is getting a new lease on life. Yeah. Mom is getting an upgrade. Yeah.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
If you want them gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval. All right, George, we have a segment that it's one of my favorites.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
We call it Asking for a Friend because how often does a topic come up where we don't feel comfortable saying, I don't know, or I don't know what that means. And so instead of asking directly, we're like, oh, my friend wants to know what a 401k is. Or, you know, my grandma was wondering what's the best place to keep her high yield savings account, right?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
When really you're the one who wants to know the answer. And so Asking for a Friend is,
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
That sounds risky because you never know what the housing market's going to do.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Oh, boo. Yeah, that's terrible.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And you're still on the hook, George, for taxes, insurance, property, you know, HOAs, you still have to pay for all that. And I mean, it's not on here, but you know, a lot of folks when they get older, they think I don't have much retirement. I'll use this and this will fund my lifestyle until I, you know, take the highway to heaven. And then they end up
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
living longer, and they've eaten through all of this equity, and then it's like, okay, now what? So it's kind of a scary thing. There's a lot of risk there. So tell us the pros.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Does she want the surgery or do you want, does she want it or is this a you thing?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
These almost always end in foreclosure.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Oh, thank you for being a friend. There you go.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And if you need help, if you're sitting on a mortgage that you're like, hey, maybe I do need to downsize, check out our real estate hub there. That's a good one. They'll put the note, the ticket to it in the show notes. There we go. The ticket also known as the link. There you go.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
there it is oh boy uh let's go to the phone lines please do you have more than you want to say like i needed a tums after just reading all that about reverse mortgages it's a bad pit in my stomach i know well we've got stephanie she's in charleston west virginia what's up stephanie jen hey i'm trying to be oh first of all i just wanted to say hi hi um and i have a question um
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah, you can't give her half. That really would be giving a drunk a drink. I mean, I hear Dave say all the time, dealing with folks who are in addiction, they don't get control over money, especially large sums of money.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Has she attempted to get help before or does she realize she has a problem? Tell us about that.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So you're going, I mean, you don't have a great option of who to give this money to instead of your sister-in-law that's directly related to your sister-in-law. You know, I would, if I were you, I'd probably hold on to that money and keep it somewhere and earmark it for if she's ever willing to get the help that she needs. Something like that.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Oh, this is a tough situation. It's not easy, but yeah, I'd hold onto the money. I mean, you're executor, so you have good reason why not to give that money. And I would just stand on business as far as that's concerned. We see you guys after this break.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
From the Ramsey Network, it's the Ramsey Show. I'm Jade Warshaw. Next to me, George Campbell, taking calls about your life and your money. George.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Listen, I'm ready to get right into some calls. All right. Cindy in Kansas City, Missouri is on the line. What's up, Cindy?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So, yeah, I think you can afford it. You guys have been really smart with your money. Congratulations. You guys are young and you've done a lot. And yeah, well, my only question would be, are you guys done having babies?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Did you re-up it for the new year? Cause usually you have to go in there and opt in. Did you do that or did you?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Not me. So what are you seeing on your pay stub? What's it being listed as?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
This is your fee for having full coverage for the entire year, $182.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And are you having an elective surgery?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Well, they don't even because they pay me. But I mean... Well, I mean, the truth is you paying for... The truth is you might be able to... If you want to opt out of this, you 100% could and put that money into something else. You could invest it or if you did want to have your own term life policy, you could do that.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
But my question is why... What are they telling you when you say, hey, I want to let this... I don't want this policy anymore. Is it something that's...
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah. I'd be sitting in HR every day, just sitting there waiting.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Well, have you? Have you called them up and said, hey, I have this policy. I don't want it anymore? Oh, yes. Yes. I have called.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Or what I do is I'd set up a meeting with someone from HR and in the meeting call the life insurance and say, I want you guys to figure this out because you're doing the Spider-Man thing where you all point at each other. And I want this figured out now.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And you set up that kind of a, I don't know, a group call that you can kind of sit through and watch what's going on and give everybody permission to do what needs to be done on your behalf while you're sitting there. That's what I would do, George.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
i'd be having i'd have a scheduled follow-up email every two days until they finally go okay we gotta get cindy off her back can someone just freaking cancel this policy yeah this sounds like something that is in set in place somebody in hr is like this has never happened before nobody's asked like we should have asked her how big her company was oh yeah nobody's actually canceled before
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah. But the truth is, I mean, let's talk a little bit about these kind of work life insurance policies. You know, a lot of people, when you ask them, do you have life insurance? They're like, yes, Jade, I have life insurance. And it turns out they've got maybe $50,000 or $100,000 through their work. Cindy, she's got $80,000. That's not enough. No.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah, and the purpose is for folks who do depend on your income. If you've got kids, if you've got anybody that says, hey, if something happens to Jade Warshaw, these people were dependent on me making money. If that's you, then you need life insurance. And so, like George said, 10 to 12 times term life. from Zander Insurance is what we would suggest. So if you don't have it, you need it today.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And for the price that she's paying, if you're a healthy person, you could probably get the same, for the same amount, get way more coverage is what we're talking about. So if you haven't done that, you need to do that today. Life insurance, for clarification, is not a baby step. OK, it's not something you say when I'm out of baby step two, I'll do it.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Or once I hit baby step four, life insurance is something that you get in place as soon as you find out about it. If you are someone who needs it. So that goes for everything across the board, right?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah, way more affordable than you think. Get that today.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah, I love it for them. That's a really, really good treat that they get to enjoy because they've done everything right. All right, let's go to Kevin. He's in Spokane, Washington, the city I was born. What's up, Kevin? How can we help?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
All right, let's get into that Ramsey Show question of the day. Today's Ramsey Show question of the day is brought to you by WhyRefi. When the payment on your defaulted private student loan is as much as some mortgages, it's hard to get ahead. Oh, I know that's right. That's when WhyRefi can help. Refinancing to a low fixed rate loan that's built just for you.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Find out more at 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
What Are You Willing To Give Up for Financial Freedom?
Let's do it. We got Chris. He's in Seattle, Washington. Chris, what's going on?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Uh-huh. Yeah. And what would you recommend, George, for like a stay-at-home mom who says, hey, I don't work, but I do provide value and people depend on me every single day. This is a big one. Yeah.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
In situations like yours, you feel desperate, right? Like it's just like, oh, my gosh, the time is ticking. And the first instinct is let me let me get in here and we reweave this plan and make it better. What you think is better for your situation. But the truth is, I would work it as is. What are your debts? How much do you have?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
uh like 5 000 total okay so different um yeah so 5 000 from credit cards 5 000 from medical what else no from medical five so five yes five thousand for credit card with zero percent interest for the first year right now now tell us the medical total i'm sorry now tell us the medical go through and list them out we don't care about the interest rates just tell us the amount
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
What's your household income between the two of you? And I want them separate. Can you tell me what you make every month, what you bring home in your paycheck and what your husband brings home in his paycheck?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And how many kids do you guys have? Sorry, I'm going through this. I just want to make sure we have plenty of time to help you. So we're just getting the particulars.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
We have one child, one year old. One year old. Okay.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So when we're talking about the debt snowball, let's go back to that right quick. These IRS debts have to go first, smallest to largest. Okay.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
They sure do, as lickety split. The other issue here is, okay, so your husband makes $6,000 self-employed. How many hours is he working a week? Six.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Well, you do when you look at the debt. You do when you look at the debt because if it was just, hey, $6,000 a month, we're debt-free, our living expenses are fine, then yeah. But in this case, we got to get this done in faster than four years is what George and myself are getting at because to your point, you're on a timetable. You got to get this thing zoom-zooming.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Have you determined how much money that is? Like, do you know what that amount needs to be in your portfolio where you'll be like, hey, I'm working because I want to at this point?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah. What's your living? How much does it cost for where you rent or where you are you renters or buyers?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Did you say the house is paid off?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah, because when you add in probably HOAs, taxes, insurance, everything like that. We don't have HOAs. No HOA, okay.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
He doesn't have money to throw at retirement anyways.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
yeah well my plan is to go back to work once um he's a little older how much five years from now see that's i don't think you guys can float a mortgage that's half of your income for five years and tackle the problem that you have here like your your time frame is tight how can you tell me how much how much the house is worth like if you were to sell it would you would it bring anything
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So maybe if you sold it, you could take home $170,000 or somewhere in there? Yeah.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
I might consider that. I would consider that because the truth is your timeline is really tight. Your husband is saying he's not going to want to work much longer, which I don't know how much I agree with that.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah. And if you want to be a stay at home mom, that selling that house and getting it right sides with your income is what you're going to need to do.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay. That was the other question. What part of it is you, is this, let me ask this clear question. Is this you really drawing the money out or is this more of a theoretical, I could retire, but, or is this you really, you're pulling the money out of the portfolio?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
george budgeting is such a huge part of the foundation of everything we teach here right we teach the seven baby steps and a big part of that is saying okay you've got to get on a budget and for a lot of folks they start working out their budget and they run into a couple of walls that they're not quite sure how to overcome which is completely normal and so one of my favorite things we do here are a budget breakdown where you send us your budget and we're able to kind of talk you through it and so tyler did that he's from tacoma washington
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
He sent us his budget and said, hey, can you guys help me out? Tyler, you're on the line.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
It's going good. Thanks for sharing your budget with us.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
OK, so I'll kind of George's got your every dollar budget opened up and I'll kind of go down the line and we'll talk through it. And you tell us if we've got it wrong or if there's something that we need to know. But for right now, you're telling us you're 21 years old. You're in the Air Force.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay, cool. Married with two kids at 21. Wow.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Oh, man, you're in the midst of it. Wow.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So you're bringing home $63,000. That equates to $4,754 that you see in your paycheck every month.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay. True that. Does that include like a housing allowance or do you get one?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay. So, but that's not, obviously that's not, you said it's $5,200 a month?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So that's not included in the $4,754 you told us?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So you really would be drawing out that money to live on is what I'm saying. It's not just a theoretical feeling. Yes. That I know I have it. Okay. George, you're looking at some numbers over there.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
What can you make doing that?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah, it could be because honestly, when I look at your budget, the thing that stands out to me is your rent. And again, I'm not quite sure exactly how your housing allowance is working into this, but all I'm seeing is you're bringing in 47, but then your rent coming out is almost half of that at 23. And so that feels... very, very high. I don't know. Are you on base or what is that?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Got you. Okay. That is an area that's going to be tough because when it's almost half your income, your margin is just so low at that point. So that's one area. What about gas?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
No, I'm not mad. I just one of the things that you'll have to do. We were talking about this in an earlier segment. At some point, you're going to have to look at this and go something has to give. And it's not going to go. If you want to get this budget right side up, you're going to have to hold everything very loosely in order to do that. So tell us more about this truck.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
I'm going to pull that string a little bit. What's it worth? What do you own on it?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay. I understand. All right. All right. All right.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Listen, they have Cocomelon on YouTube, and it's free. Yeah.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
my daughter just watches old barney clips on youtube yeah so i'm that's a that's a much cheaper option yeah i would tonight got her into the uh the old sesame street which is pretty good so yeah tonight i think cable and maybe keep one subscription just so you're not completely in the stone age but i dropped that i mean that's that's finding you almost 80 bucks right there right and then the phone bill you guys have two cell phones
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So give me a sense of where we're at, Tyler.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
The only thing your wife could do is she could get together with maybe some other wives on base and say, let's create some sort of a co-op that I take you guys as kids, you take my kids, and I go work, and you go work, and you figure out times.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Okay, good. Listen, you guys.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You guys are young and you are in the thick of it right now. And I think the horizon for you guys is good. I think if you do what George said, you'll make a lot of changes. But this is going to be slow going for you guys. Just don't give up.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
The truth is investing can be so overwhelming and so confusing. I don't know about you, but when I hear for me, when I first started learning about investing, I needed to hear it over and over again. I needed somebody to explain it in a way that made it simple. And it's not something that you can just get in a 60 second social media post. I'm telling you right now.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So if you are unsure of where to start or if you're afraid to make any mistakes, I Our Investing Essentials virtual event is going to teach you everything that you need to know about how to get started, guys. I'm telling you, they're going to teach you how to maximize your investments. It's happening March 4th and 5th, and tickets start at just $199.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
It's hosted by Dave Ramsey, the GOAT, and the guy next to me, the other GOAT, George Camel. Plus, it's the only place where you're going to get Dave's personal playbook, which is on real estate investing. He's going to explain how he made hundreds of millions in property investments. So you can invest with confidence and you can start building wealth. And this is the way to do that.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Get your tickets today at ramseysolutions.com slash events, or you can click the link in the show notes if you're tuning in on podcast or YouTube. George, what do you want to say about this? Because you're part of it.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
He was trying to get that gluten on you.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
I know. That's right. And it's live. It's you guys in real time. It's not one of those canned things that they just air over and over. You know how places will just air the same thing over and over? No, this is live in real time. You're getting Dave and George at their finest moments.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
All right. Let's get back into your calls. But before we do, just remember... After this hour, if you want to keep watching the show, you'll have to go into our Ramsey Network app in order to finish it unless you're on radio. So if you're watching right now on podcast or watching on YouTube, just know that the Ramsey Network app is where you go if you want to watch the rest of the show.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
If you need that, you can just download it for free using the link in the show notes, or you could just search Ramsey Network in your app store. And that's how you do it. Of course, if you're on radio, just stay where you're at. All right, let's go to the phones. Logan in Philadelphia, Pennsylvania. What's up, Logan?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Doing good. How can we help you?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Well, how'd the idea come about of Thailand? Thailand's great, by the way. I've been, it's a bucket list place.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Well, let's see. Can you afford it? I mean, you're making the projection is 80,000 a year. What's your living situation?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
That's cool. What's it worth? Yes.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And what's the plan to move out?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So let me, I'm just sorry. We're going to answer the Thailand question, but I've got a lot of interest in what you're telling me. So right now there's two tenants in the duplex. Who has the short, like who's, let me ask you this. Like, obviously if they're good tenants, you're like, I want to keep them in there, but you're also paying for it.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So that doesn't leave a whole lot for you to go rent somewhere. Is that where the problem is?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
i know keep me here in my warm cocoon yeah but he needs he needs that that that feeling of rent is due you know what i mean you need that feeling of i need to buy groceries i i need that urgency gotta go find some problems yeah and especially if he wants to be in real estate i mean have have a time where you're a renter so you know what it feels like learn what that feels like so i think that'd be good for him
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
But what he's talking about, I've heard from a lot of folks who are in the baby steps where it's like, okay, I finally got into baby step four or I finally got into baby step seven and they're just worried about, can I spend my money? Is this too crazy? Is this lifestyle creep? Am I going off the deep end? And so I felt that way as well.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
And so I kind of came up with five pillars that if you can check green on, chances are you can say yes. Hit me. So number one, if you're a person who lives on a budget, like no matter what, even if you're in baby step six, you're still on a budget. You're still doing that. Are you a person who's out of debt and staying out of debt? Right? Yes, I am. Do I carry the proper insurances?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
It's not crazy, George. I'm right there with you.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Am I, you know, doing my coverage checkup yearly? Yes, I'm doing that. Okay. Am I a person who's saving for the future? If I'm baby step four, I'm continuing that process. Yes, that's a green light. And is generosity a priority in my life? That month to month, I'm practicing that? Yes.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Chances are, if you're hitting green on all those, when you're beyond baby step four and above, that is a green light to go, yeah, I can take this trip. I can do this fun thing. I can buy that couch. You're doing all the things that make you a financially responsible adult. And it's good to remind yourself of those things from time to time.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Yeah, I don't know that I would draw off that. I think I'd rather have it there knowing that I have given the middle finger and I'd be motivated to do other things in life.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
George, the truth is running a business is hard. It's so difficult. If you're a business owner or you know someone who's a business owner, it's tough. It's very difficult. And some days the challenges, they pile up and the fears creep in and you're just left wondering whether you're doing it right. I know that my husband and I ran a business. My husband still runs it.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
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The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Truly, it's the baby steps for running a business, which is what we all need. So Pre-order now for $29.99. That's nothing. And you get over $350 in free bonus items. That includes instant access to Entree Leadership, the Entree Leadership Hiring Playbook. You get early access to the e-book and an enhanced version of the audio book. Pre-order that today at ramseysolutions.com slash store.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Or if you're watching on YouTube or podcast, you can click the link in the description. Get that book today. All right, George, let's go to Baltimore, Maryland. What's up, Sam?
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
You said future fiance. You guys aren't engaged just yet.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
So one conversation, I mean, this is kind of aside from the point, but also very important to it, is I would start having conversations now. Since you do see that future of you guys getting married, I'd start having the conversation of what our philosophy is about debt and what do you think it will look like if you become a married couple? Because...
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
On the one side, I hear you saying, I'm working and fighting hard to pay off this debt. I want to know, should I pay that off before we buy a house? Which lets me know there's part of your brain that's like, debt is bad. I don't want to stay this way. But then you've got your future fiance who's just bought a $50,000 truck, right? So you guys need to align.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Now's a good time to start having those conversations is what I'm saying.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
I don't want to like hold him back from that. But once you get married, and this is the question that you, you should be asking when you get married, are you going to view the finances as now we're one, or is this like separate living going to continue? Because there's a reason that you're living separately now. And it makes sense. You're not married. It makes sense that you do your debt.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
He does his debt and you have your thing. He has his thing that makes complete sense. But when you're married, that's, the healthy way to do it is to become one and to come together on that. So that's kind of why I'm bringing that up because the truth is, who knows? I don't know what you guys' timeline is.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
If it's six months from now or a year and a half from now, but that $50,000 has the ability to become yours as well when you get married. So that's something for you guys to talk about here at Ramsey. We believe that marriage makes you one. So when you come into the relationship, it's our income, it's our debt, these are our assets, and this is our bank account and our budget.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
We find that when people do that, not only do they have a happier marriage, and the studies do show that they're happier, but they have a more successful marriage. They're able to build debt or I'm sorry, they're able to pay off debt faster and build wealth faster. And so there's a lot of positives that come to sharing your money, not just financial, but also in the relationship.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
Hey, let's send her a copy of Know Yourself, Know Your Money. That's Rachel Cruz's book. I think it'll give you some insights on just how you feel about money and why you spend the way you do, why you make the choices you make, why you're bent towards certain behaviors. I think that'll help you and your spouse to kind of see each other. Also, I want to give you both Financial Peace University.
The Ramsey Show
What Are You Willing To Give Up for Financial Freedom?
I think that'll be good just to get you guys on the same page and get you started looking at things the same way. And that's really going to help you in the future. What do you think, George?
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Hey guys, this is Jade Warshaw. Listen, I get it. The student loan situation is bananas, but it's time to make progress, not excuses. So if your payment and interest rate have you treading water, refinancing could be the solution for you. Look, if I were in your shoes, I would contact Laurel Road today and get a free 30-minute consultation.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
You'll work with a student loan expert and you'll go over your refinancing options. Hey, for refinancing to make sense, you've got to check certain boxes like making a good income. And bottom line, Ramsey's advice is that you only refinance if you can get a lower rate or a shorter term. Remember, the point is to pay off debt faster. Maybe you just need to keep rocking the debt snowball.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
But if refinancing does make sense for you, Laurel Road offers low competitive rates and interest rate discounts are available for stuff like auto pay. Listen, you can't mess around with student loans. If you want them gone, you got to go hard. So go to laurelroad.com slash Ramsey to find out more and schedule your free 30 minute consultation. That's laurelroad.com slash Ramsey.
The Ramsey Show
It’s Never Too Late to Start Building Wealth
Laurel Road is a brand of Key Bank National Association.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
Hi there. Hi. What up? I'm Ashley. My husband and I have been listening to you guys for a while. We actually used one of your financial advisors for a little bit.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
um until our we created a budget and it was out of budget so we've been doing it on our own now so we are both navy veterans we just got out within a year ago we had two stable streams of incomes two careers a few bad financial decisions but like we each have a 30 000 motorcycle even
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
come in with it um i had 25 000 of school debt um we've cleared about 28 000 of credit card debt we have no credit cards anymore they're all paid off um but you know over and we did get rid of one motorcycle we've been trying to get the other it's just very upside down um so the crux of our life is we have five kids and just found out we have number six on the way
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
I'm also in the Navy Reserves to keep insurance and the things. I have a hard time. I've listened to Dave a few times talking about how to really lock it down and knock out your debt. And for those in situations where one doesn't work, it was very rarely like in a situation with like a ton of kids like us. They'd be like, you both need to go to work. And we do supplement.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
We do Uber if we need to when the kids are sleeping. I do Twitch streaming when they're sleeping and make a little extra. What is your income?
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
combined right now so he doesn't work uh he got out i got the job first so i've been working i make about 115 a year between reserves my job and the side hustles that's a pretty stable number 115 okay um why doesn't he work is he a full-time stay-at-home dad yeah he he stays at home we did try to have him work but it was very uh They're all under school age. They all had to go to daycare.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
So the oldest is turning seven on Sunday. Okay. So he'd be the only school age one. Then it goes, so it's, yeah, so.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
So I work from home. He's home. We have this amazing opportunity to be home with our kids. And we've been at this, you know, been in this giant spiral. We've taken care of all the little things we can do, but now we've only got the big scary things left.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
So my motorcycle.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
motorcycle's gone tell us how upside down you are in it it's so i've tried uh his we were able to settle with the insurance um they just wanted the bike and they cleared it and it was but yours what do you owe on it and what's it worth 20k if i sold it i would be 20k upside down so i can make 10 000 on it from every dealer every blue book every you know from trying.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
And then I would, so I owe almost 30 on it.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
Yes. I've tried for like the last three years. How old is it? Um, it's a 2019 and I bought it, you know, fairly new at the time. Um, and it's just been this dead weight, you know, following me, haunting me. I've,
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
prioritize the other debts first what else what are the other debts so you got you've got a the motorcycle we know this story on that what else what else is there um so we have i have 25k school debts okay um so um i lost one of our kiddos um one of my oldest and i had a hard time in school i kept failing classes and lost concentration so i um
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
But I kept pushing through anyways, just repeating them until I could pass.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
I just can't get it from the school because I owe them $8,000. But yes, I finished all but one class. I just need to take that one class.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
Yes. Yeah, two others. And they're all like big chunks. Just tell me what they are, Mama. I owe... So the $8,000 to unlock my transcripts just due to the school.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
You just owe them that.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
And then after the third kiddo, we pulled them out of private school and said, we can't afford this no more. But we still owe a balance to that school. And we actually, we've been paying all the debts, but that was one of the last.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
How much is that last one? That's $10,000. Okay. And they actually served us with papers on that one. We're trying to get it.
The Ramsey Show
You Can’t Build a Life You Love While Carrying Everyone Else’s Burdens
I think that's all the big things left.
The Ramsey Show
Slow and Steady Wins the Race Every Time
Hey guys, I'm Jade Warshaw and I wanna talk to you for a quick second about student loan refinancing. If your payment and your interest rate are burying you and you feel like you can't dig out, refinancing your student loan debt might make sense. That's because a lower rate could free up more money in your budget and a shorter term could help you pay down your debt faster.
The Ramsey Show
Slow and Steady Wins the Race Every Time
So reach out to the student loan refinancing experts today at laurelroad.com slash ramsey. There, you'll find helpful resources like a student loan rate table, a refinancing calculator, and other tools. Plus, you can get an initial rate in just a few minutes. Laurel Road offers low competitive rates starting under 5%. And you can get your interest rate even lower if you sign up for auto pay.
The Ramsey Show
Slow and Steady Wins the Race Every Time
But if your situation is more complex, sign up for a free 30-minute consultation with one of their student loan refinancing experts to get your tough questions answered. Listen, not everybody should refinance their student loan. So make sure you run the numbers. But for some people, it is the right move.
The Ramsey Show
Slow and Steady Wins the Race Every Time
Learn more at laurelroad.com slash Ramsey to find out more about their student loan refinancing. That's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
But then on the flip side is if the one spouse dies with a pretty large estate and it's more than enough to take care of the spouse and the kids. But if this the surviving spouse is a bonehead with the money and just blows through it, then you also feel like, hey, well, the kids shouldn't have to.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
But much as we talked about on the call before that, make sure that the kids know too.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
You wouldn't be going back on the stuff that's already been.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
What was the $65,000 then? Student loans, my student loans.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
That's exciting. So tell me about what it was like getting on to this plan. Was it a lot of sacrifice? Was it something that for the most part you just thought, well, you know, we're just doing this? Tell us more about that.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
your cars are part of your journey and you are up you are due for an upgrade no question yeah you guys did it right i'm proud of you because we talk to doctors all the time calling in on the other end because they've got so many student loans and it's just not all it was cracked up to be and so to come out of it with no debt i'm just i mean i hope that you come back in how many five years and tell us give us the update
The Ramsey Show
You Can Move From Family Drama to Financial Peace
Yeah, exactly. Exactly. It's all going to be yours.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
Yeah. Just having a plan. He went in with a plan.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
So you're like, let me offload this before it depreciates further and get something else, basically? Yeah.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
Okay, so what would you get instead?
The Ramsey Show
You Can Move From Family Drama to Financial Peace
you're not even close you're not even close so what's i'm just curious of your emotion around this because it's all it's obviously something that you're just i'm wondering why you're even batting this around like what happened or what are you thinking you can do with the money this you know the extra money um well i have three children uh one's going to university this year okay well there you go and that's that's what you're thinking you'll do with the money is pay for college
The Ramsey Show
You Can Move From Family Drama to Financial Peace
You know, people who just feel guilty, then it's the opposite end of people who are doing really well and they just feel guilty about being able to have nice things.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
Some people also just don't, I'm talking to myself right now. I feel called out. I just don't care about cars. Then there's people who are like, I could drive.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
That's what will happen in our family. Yes, I don't care. Yeah.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
No, but you'll spend that money in other ways.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
If you were to, if you were to buy properties and rent them, who would manage the properties with your back issues? Like how would you take care of them?
The Ramsey Show
You Can Move From Family Drama to Financial Peace
So you can't. OK, so you can you've identified the level of work that you can do.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
People just hear the zero down and think.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
Why doesn't she lend him the $3,000? Because she doesn't have the money.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
I was going to say, it's the same answer.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
She has a lot of ideas about what you should do with your money. Correct. Do you feel like in some way you have to listen to what she's asking you to do?
The Ramsey Show
You Can Move From Family Drama to Financial Peace
Your brother, is he single or does he have family and kids?
The Ramsey Show
You Can Move From Family Drama to Financial Peace
Can you tell me more about, can you tell me more about, did your brother come to you and you said, sorry, I can't help you. Then he went to your mom and then your mom. Tell me how that happened.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
I do, too, because I think all of us get to choose the things culturally that we continue on with or the things that we go. I know everybody did it that way. That's just not for me or that's I'm not going to go with that moving forward. I think you can do that in a way that's not disrespectful, but it's just a change.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
What's the implication of you saying that, Andrea, to your mom and to your brother? What will happen next?
The Ramsey Show
You Can Move From Family Drama to Financial Peace
And when you tell them no, are you feeling like, hey, they're never going to talk to me again or I'm not going to be invited to, you know, dinner, family dinner? Like, is there is there a consequence to you saying no that you can foresee?
The Ramsey Show
You Can Move From Family Drama to Financial Peace
And what I'm trying to show to you, Andrea, is there's not really a there's no consequence here other than adults choosing how they're going to behave next. And if your brother chooses to give you the cold shoulder, that's not something you can control. All you can control is your response in this. You can stand by it and your mom can have an attitude for a while. But that's about it.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
That's right. Today's question comes from Chelsea in Kentucky. She says my daughter is a senior in high school. She came home from school recently and said that her personal finance course teacher, quote, educated them on credit cards and loans and how to manage and build credit appropriately.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
She's very aware of our stance on not using debt, and the school is obviously not using your Ramsey curriculum. How would you deal with an instructor forcing your child to participate in their, quote, process? I mean, in many ways, it sounds like, Chelsea, you kind of answered your own question because education starts at home.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
So what you're telling them at home and that you're continually baking into them, you know, this is a good chance to kind of stress test that. In my opinion, it's like, OK, tell me what you learned today. What did they tell you? And then you're kind of opening up that dialogue because the truth is. A lot of the world does run on that.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
And it is kind of good to understand that so that you see how your pathway is a better pathway. Right. And so I, you know, Dave, you can say what you're going to say. But for me, I think that if I've told my kids, here's here's a way to do life. Here's the way we're doing life in our household. They're able to see the fruit of that day in and day out. It's like any belief system.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
If you're a Christian, you're going to see things in the world that counteract that and your friends and people are going to tell you things that counteract that. And you're always stress testing what you really believe. And I think this is just another example of that.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
He was Michael Jackson moonwalking, I'm sure.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
Yeah, I think it's a positive thing. And then you don't have to worry about it. I think it's positive. I think if you take a hard stance on anything, you should know very clearly what the other side says as well so that it's a smart argument on your side.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
Well, yeah, that's the question that students always want to know is how does this relate? And so you've done a really smart thing by putting it to something that's actually relatable in everyday life.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
And for any teachers listening, we're also doing that teacher appreciation giveaway, Dave.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
Way to go, Hank. Thank you, brother. Thank you, Hank.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
So all $210,000 was the house, or was there other debt mixed in?
The Ramsey Show
You Can Move From Family Drama to Financial Peace
So what mindset did you have to have? Because a lot of people would go, you're crazy. You're sacrificing to this level to pay off your house? Can't you just keep it around like the rest? How did you combat that in your mind?
The Ramsey Show
You Can Move From Family Drama to Financial Peace
I don't think I've ever heard anyone describe it as sneaking into the grave.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
So why couldn't you leave the amount in your high-yield savings that you would denote as what makes you comfortable within the three- to six-month range, pay off what you can, and then cash flow the rest?
The Ramsey Show
You Can Move From Family Drama to Financial Peace
I'm 31. So you took $67,000, you cashed out a $67,000 401k with the thought that you might pay off your mortgage with it?
The Ramsey Show
You Can Move From Family Drama to Financial Peace
Should have, could have, would have. I guess what I was trying to understand is you did that, knowing the implications of it, but yet you're still like, wait, but now I'm unsure about paying off the mortgage. At this point, you better be sure and just go on and do it since you took the hit for it.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
Okay. I mean, otherwise it was all for naught. Okay.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
And never borrow from your 401k again.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
If you say you pay off your house and you hate it, you can always get another mortgage.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
I was going to say, what are the kids? Are the kids on board with this? Do you have weird relationships? What what are the because that's the thing that I think of first. You guys are the ones getting married. But if I were in that situation as the woman, probably what I'd be thinking about are will my kids be protected if this for some reason goes south?
The Ramsey Show
You Can Move From Family Drama to Financial Peace
That being said, I hold that with a grain of salt because at any point in any relationship, if you start thinking like that, that is an indicator that something's already wrong. I'm in a marriage now. I don't think, oh, gosh, if something were to happen, I want to make sure my kids were protected. That's not in my brain right now because I'm married. So there's part of it that I...
The Ramsey Show
You Can Move From Family Drama to Financial Peace
If I'm being honest, I just hate the discussion because it just feels divisive from the go. But I also understand it.
The Ramsey Show
You Can Move From Family Drama to Financial Peace
Is your cousin like a lawyer or something?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Can I run it back a little bit more because we don't have a whole lot of time on this call and I want to give you something to think about when you leave here. Do you want to know what I, I'm just, this is one woman's opinion. I think that the deal happened with your son and it scared you, but I don't think that's what's responsible for this financial situation.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I think most of what was on your credit cards was there already.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
um and yeah you may have added a little bit to it but i think that that was mostly there i also think that these student loans are what's really eating your lunch right now and so coming off of one crisis with your son and then feeling the crisis of this financial situation i think is what's got you in a tizzy but truly i don't think one has too much to do with the other the the key here is the four thousand dollars um
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You mentioned your wife's home with the kids. Is there any way that she can pick up some part-time work as well? Because I think that you've got to get a second job because of this course. Like if you got this course, now it's like, okay, I have to make this thing worth it. And I have to figure out when do I say that it's going to ROI and when do I say it's going to pay itself off, right?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And you can't be waiting around. for two, three years to pay this thing back, you've gotta get on, like John said, get on the horn now and get this thing paid off and truly cut up the credit cards. So before you get off the line, Christian's gonna pick up over there and we're gonna get you every dollar.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
We're gonna let you try out the premium version for a while because in order to do this, you're gonna have to know where every single dollar is going. Now is not the time to be playing, you know, pity, pity, patty and patty cake with your dollars.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You got to know where everything's going, because on a four thousand dollar monthly income, you're going to have to be very intentional to get this paid off quickly. But we're going to help you do it. This is The Ramsey Show.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You're listening to The Ramsey Show. It's me, Jade Warshaw, next to my good buddy, Dr. John Deloney, host of The Dr. John Deloney Show, taking your calls all hour long. Remember, it's a live show, so if you want to get on, the number is 888-825-5225. We'll get you on. We'll talk about your life, your money. Listen, we can talk about anything you want to talk about as long as it relates.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Tell me one. Give me a hot take right on the spot. Come on, John.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I was going to say a James Childs hot take. I was going to say, give me a James Childs without a hat. Come on. It's like a new man. It's a different man.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
He stepped out from behind. He's like the guy that sits in the back. He stepped out and said, here I am.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Yes. Really got sick. Super scary, yeah.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
From the Ramsey Network, it's the Ramsey Show. I'm Jade Warshaw. Next to me, my good buddy, Dr. John Deloney.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
That's a really good point. And it is a hot take because the truth is when somebody starts talking about their kids, somebody in the hospital, it's like, OK, free pass. Right.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
But what I hope is and Nicholas, if you're still listening, we're not picking on you. What I hope is that you take away from this. This is this is what we would call around here. And I've had it moments. Yes, it should be. And it's what I'd call an I've had a moment because the truth is and I'll try to talk about it from a personal point of view.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
So it doesn't sound like we're harping on you because we're not we're not trying to paint you into a bad guy. But we want this to be a moment where you pivot and change. If you say the problem was. my kid got sick and went to the hospital. If we say the problem was, let's take it down on a lower level. The problem was I lost my job and now here we are.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
The problem was my husband overdrew the checking account and now here we are. Those are just symptoms. Those are not the real problem. And this is why we teach what we teach. The real problem is the wind blew and I had a house made of straw. That's the real problem, right? And so if we can get above it and go, All right. I don't want to be in this situation ever again.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
That's when real change can happen. I remember this was years ago. Sam and I were paying off in the midst of paying off our debt. We had 460 to pay off. And I remember we were still trying to figure out budgeting, still trying to. And we had no money. Mm hmm. And so my sister ended up having a medical emergency in Orlando. Orlando's like two and a half hours from where I lived.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
She was in the hospital and I'm thinking, all right, I'm gonna go see her. I had no money, no extra gas money. Cause when your budget is like tight to the wire, No extra gas money, nothing. And I remember being like, oh my gosh, I'm gonna have to call my parents and ask them for money because I'm not putting on a credit card. I'm not doing any of this.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And that was such a, oh my gosh, A, swallow my pride moment. B, am I going to make the choice that's gonna drive us further into debt? And C, also, I never want to be in the situation ever again. So what do I have to fix? I can't blame it on my sister. Be like, man, she was in debt. And it was because that I have to go. What what part am I playing in this?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And yes, sucky stuff happens and it comes out of the blue and it's painful. But if I don't look at where I set myself up. And what I did, does that make sense?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
But if you had said, if you had walked away from that and said, okay, it got taken care of. That's right. Somehow it came to, it always comes together.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Right, right. Which we can, it's so easy for us to do. Well, it worked out. I guess everything's fine. And then you just go back about life as it was. You've got to have the, you've got to use these as the catalyst that they are to really change and dial in. That's right.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Do you want to know what really got me? One time, this was long before I worked here. This was during 2008. So it was the Great Recession. Everybody's calling into the show, talking to Dave about, I'm losing my house. Dave... is sitting here going, well, I've purchased more real estate than I've ever purchased.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And he said, you want to get to the point that when there's a storm, you can fly above it. And I remember sitting in my car with my 400 and something thousand dollars of debt being so jealous, but also so like, yes, yes, Dave, like that. The next time it pours, the next time it rains, the next time the fire comes, my house is going to be prepared.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And you want to know what? We were ready. The folk were prepared. And that's what I'm saying, guys. It will storm. It will rain. This is your chance. This is your call. Be prepared.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You're listening to The Ramsey Show. I'm Jade Warshaw. Next to me is Dr. John Deloney. Happy to be with you guys. Thanks for hanging out with us. And if you are a listener, just, I always say this, but keep listening, keep sharing it, keep liking it, keep subscribing. That's super important for us. We're happy that you do that. Also, the Ramsey Show annual listener survey is live.
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Be Prepared: Math Doesn’t Care About Your Life Situations
What that means is you finally get to tell us all the things that have been burning inside of you about the show. We want to know your favorite parts of the show. We want to know what you like, what you don't, what you want to hear more of, but whatever it is, we just want to hear it. So let it rip. As they say, there's two ways to participate.
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Be Prepared: Math Doesn’t Care About Your Life Situations
You can text survey to the number three, three, seven, eight, nine, or you can visit Ramsey solutions.com slash survey. If you're listening on podcast or YouTube, you can click the link in the description. So yeah, let us know. I'm curious. Somebody's going to say something about,
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Be Prepared: Math Doesn’t Care About Your Life Situations
It's all right. They're going to be like, never wear those glasses. That wig was weird. All right. Sign up today to be entered to win a $500 gift card.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
No, nobody would say that.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
James reads all of them too. He will read them all. Luckily for us, unless there's a trend, like lots of people being like, or John never needs to speak again. So there won't be that many people.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I get that. More importantly, what I was saying is if you sign up today, you can be entered to win a $500 gift card, which is schnazzy. All right, let's go to Brad. West Palm Beach, Florida. Love it. What's going on, Brad?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
We're taking your calls all hour long. Your life, your money, your relationships, your career, all of it. We'll talk about it. The call is a free call. 888-825-5225 is what gets you on. Remember, this is a live show and we want to hear from you. All right, John, let's go straight to the phone lines. We got Nicholas, Boston, Massachusetts. What's going on, Nick? How are you? Doing good.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You cashed in on an old dream.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
So this is, and then where your place was, did you move into that same hometown or were you kind of an hour away? What did you guys do?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Listen, I'm going to commiserate with you for a minute because there's part of this that I understand. When Sam and I took the job to come to Ramsey, I'd lived in Nashville before and it wasn't a great time for me. That time in my life was not what I would call a great time.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And so coming back, I was like, I'm not going to go and live in that part of town because I don't want to be passing by these types of, you know what I mean? Like those types of memories all the time. So I almost wonder, there's two parts of this, and John is going to be the expert, but part of me wonders if you're there for the right reasons, because if you're not, why stay?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
But if you decide that it is the right reason, what would it look like for you to be close to them, but not in your childhood city? You know what I mean? And not in the same... place that you experienced whatever negative kind of vibe that you experienced before.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You could go further down and get the Coral Springs area. It's nice.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And it's okay if your dream changes. Like, it's okay if back in the day you were like, one of these days I'm going to go back to West Palm Beach and I'm going to do all the things that I couldn't do before. Like, if that was your dream at some point in life, but now here you are in your 40s or 50s, I don't know how old you are. And you're like, who cares? I'm my own guy. I'm happy in my life.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I'm a Northeast Coast guy now. And that's who I am. Great. Dreams change all the time.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Choose guilt over resentment.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Marinate on that until we see you next time on The Ramsey Show.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
From the Ramsey Network, it's the Ramsey Show. I'm Jade Warshaw. Next to me, my good buddy, Dr. John Deloney. We're working together, taking your calls. Your life, your money. Give us a free call. Remember, it's a live show, so the number is 888-825-5225. We'll get you in. Let's go directly to the phone lines. I'm ready to just get into it. Let's go.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Yeah. Janie in Dallas, Texas. What's up, Janie?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Who's making you feel bad, your spouse or the in-law siblings? My spouse.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I want to know what John's going to say, but I want to know two things before he says it. Number one, how much?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Per sibling? Correct. Okay. There's eight of them.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Yes. So $24,000 for this funeral is what we're looking at? Correct. Okay. Then the other part, and John's going to say what he's going to say. The other part, if I were in your shoes, this is the situation I'm thinking.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
If I had, and I don't know what your relationship was with the in-laws, but if I had a poor relationship with my in-laws, if I didn't really have a relationship with them, I'd care two cents, and I'm finding out that our cut of the thing is $3,000, which that's not the case, but I'm just saying. My first inclination would be to say, well, how would I feel if it was reverse?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And if it was my family, what would I, what is the treatment that I would hope from my spouse? So that's just kind of where my mind first goes, John.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Well, that, and it makes you the bad guy.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
But what you said is such a good point. Don't draw the line in the sand. Don't die on the hill while you're still climbing up it. Wait until you get to the top and be like, okay, now let's talk.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
That's so funny. Sam and I learned early on in our marriage, like there's something about standing in the kitchen that it's not a good time.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
It always turns into an argument. If you're standing up in the kitchen after hours and you bring up something that's a hot button issue, it will be an argument.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
but you know what do you know what i find when you figure out those things that kind of takes the steam out like sam and i figured out early on if we go for a walk always and we're not looking like you probably know this because you're the professional but when we're not looking at each other it we can talk about some of the most like high like things that would usually turn into an argument we're able to talk through them because we're not looking directly like staring face to face watching every nuance of your reaction it's like just go for a walk hold hands
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Well, that's what I always tell people.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
But not standing in the kitchen.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Feel however you want to feel.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
That's true. Very, very good advice, Dr. John Deloney, as usual. Glad you're sitting here co-hosting with me. Hey, we'll be right back with you. This is The Ramsey Show.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You're listening to The Ramsey Show. I'm Jade Warshaw. Next to me, Dr. John Deloney. Taking your calls, your life, your money. Hope that you are enjoying this new year. I hope that you are well into your new ways of life. I'm not even going to call them goals. Let's just say your new way of life, your new habits, and I hope it's working out well for you.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
If you're feeling stuck with your money, we can help you with that. 888-825-5225 is the number. We got John in Chicago, Illinois. What's going on, John?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Interesting. What do you earn?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I love that you would have been willing to spend that, though. That's sweet.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I'm just saying it's sweet.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Yeah, because can I ask a fair question? I think it's fair. Did you get taken to the cleaners or was it just divided 50-50 and it just got split?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
No, no, no, no. See, we can't be going to extremes like this. So, okay, in a month, what do you bring in, in a month?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Okay, so traditionally people say like three months income, if you can save it up, right?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Well, I'm getting to that. Okay. So tradition is like three months.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
It depends on the lady. Let me lay it out, John. Let me lay it out.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Here's what I want you to filter it through. Like current tradition is like three months. I think you're right. I think I have heard Dave. I don't want to put words in Dave's mouth, but I feel like I have heard him say maybe one month. Then you have to think about your lady. Some women are like, you could take a string and tie it around my finger, and if it's romantic, I'm in, right?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And then other people who are more on the bougie side of the scale, like yours truly, might want a little something extra, and they might cause you to come correct, you know? Come correct.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
The truth is, Sam bought a ring, and I was like, what? And got a different one. So this this this matters. OK, so on the one hand, don't don't spend thirty thousand. That's way too much. But is there something around the three? You know, do you think she'd be happy if you spent one month's worth or do you think she'd be happier if you spent three?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
That seems right. How old are you again?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Oh, I wasn't joking. I was so ready for this moment.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Tag us in it. I want to know about this. I'm proud of you. And remember, it's not the ring that... The ring doesn't really, it matters, but it is not the whole, you're going to be married forever.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
That's right. Forever. And, you know, I look at my ring from time to time and I'm like, this is a nice ring, but if something were to happen to it, if I never had it, I'd still be married to Sam Warshaw and I'd be a happy lady. So that's a nice ring.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
It is. You want to know it's got, it's not perfect. It's not a perfect diamond. It's got inclusions, but I love this ring.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
It means it's imperfect, just like a relationship.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Not Zach. Never say that. Zach.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I would go to the 401k loan first because that bad boy is on a timer. There's a couple of things that I'd always put to the top of the list. IRS debt, 401k loan is one of them because the truth is if something were to happen, you were to lose your job, you'd be on the hook for that.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You'd have a calendar year to pay that bad boy before you start getting hit with fees and penalties beyond what you already have. How much is it for?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Yeah, I'd get into it. What caused you to take them out?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Yeah, yeah. Hey, just as a curiosity, because so many people call in here and they're like, Jade, why can't I do debt consolidation? And one of the things I tell people is that sometimes when you've consolidated it into one payment, you feel like you've done something, but you haven't really done anything, right? And it's only one payment and you kind of feel like you've got less.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Is that what happened to you? What do you think caused you to go back in?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Yeah. Listen, you're helping people. Yeah, I agree. I would go first to these 401k loans and clear those out just because, like I said, similar to the IRS, they're on that timer and there's a lot of risk associated with that. And then how much more do you have to pay off until you're done?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
So tell me tell me I'm going to be honest with you flat out. I think this is this call is more about what's happening inside of you than what's happening with your money. Just from the way you sound, you sound like you are just a chicken with its head cut off. And like John said, we can talk for a long time. If you want to give me some real numbers and we can walk through this financially.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Okay. All right. Yeah, that's what I would do.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Ooh, I think we can hit one more right quick. Can we do it? We got two minutes. Should I do it?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
practically speaking we're gonna listen i'm gonna tell you how the whole thing's gonna roll out we're gonna talk to you about how you're feeling right now the state of the economy what's going on external internally right we got inflation real estate market's been weird election just happened there's a lot going on you're feeling some type of way so dave's gonna unpack that he's gonna tell a little of his his story i'm gonna tell a little of my story we're gonna talk about how to make traction right we're gonna talk about the debt snowball we're gonna answer questions about investing
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
So we're hitting all of it. And then I am going to do a budget breakdown. I'm going to show you how to set up your budget because that budget is the foundation of everything we teach. If you've listened to the show, even for just a second, you've heard us talk about budgeting. And so I'm going to walk you real time through how to do that, how to set it up.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And then afterwards, we're having a Q&A and George Campbell's on the line. Rachel Cruz is going to be on the line. And we can't be stopped.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Budgets are like toothbrushes. Everyone needs one.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Yeah. Without it, things get ratchet. No matter how much money you make or don't make, you need a budget. And we'll talk about just that January 23rd. Be there or be square. This is The Ramsey Show.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Tell me now. Tell me now what you're earning. And is it from your business or did you get a new job?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
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Be Prepared: Math Doesn’t Care About Your Life Situations
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The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I just want to know your, I just want to know your payment. Like what do you pay yourself every month? What do you bring home every month?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
That is a deep one. What do you think, Jade? You said it earlier, John, about math not giving a what about you, right? And I think this is one of those situations where There is a part of what we teach, which is this method for getting out of debt and finding financial peace, right? For those of you who are not familiar with it, it's the seven steps, baby steps.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And the first three ones are like humdingers, right? Because you're kind of doing the scorched earth thing to get $1,000 saved. Then you're going balls to the wall. You're paying off your debt except your mortgage. And then you're continuing that intensity to get three to six months of expenses saved. Doing that would... Give her peace like she's never experienced, right?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
With an $80,000 HELOC and $45,000 in consumer debt. That would give her what she's probably looking for. But in order to get to that would require deep sacrifice. And part of that deep sacrifice is... not always doing the job that you ultimately want to end up at in order to get it done. Right. Uh, there's part of this where you do a job, you might do a job because it earns you more money.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And that's like clockwork.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You might do a job because it allows you to the flexibility to do other jobs. You might do a job where you're working day and night, but it's only for a short period of time. So you can get this done. So the sacrificial part of this is real. And that might be a very real part of your equation. If he's making 56,000, then, you know, the two or three summer months, he's making another 3000 combined.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Um, That's part of it. Now, if he's making $60,000 whole year combined in Nebraska, I will also on the other side of this say that is median income. So there might be part of this. I think median income is like $67,000. But if you're at $60,000, you're pretty much there. So there might be part of this. She doesn't mention anything about the house.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I don't know how much the house is taking up their money.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Yeah, so that could be part of the problem. I don't know Hannah, but it's possible that your mortgage could be more than 25% of your take home. And if that's the case, you will be feeling it. And then to her point, Daycare is expensive. For one kid, my daughter, it's $1,400 a month. And when my son was in, his was $1,200.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Her place just went up and we actually put her in a different school once his was freed up. So the idea that, okay, for her, she's got to take home at least $4,000 for her to feel like she's making money. And so for her, she's probably like, I don't know. So what I want to highlight here is as much as I love people to do work that they love.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And as much as that's part of our heartbeat here, there is part of it where you go, okay, what can I do in the meantime? Maybe he goes back to being a teacher, but maybe for now he gets into a field. I don't know if there's one he can get into, but something where he makes more, or maybe he's tutoring for a while. There's gotta be something else in addition to, or pivot altogether.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
No, I just want to know your money. If you I want to know, what does Nick bring home? Does he bring home forty eight hundred a month? Is that right?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
OK. And then tell me your total debt.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
That's the thing. This is not the way you live your life for the rest of your life. This is a short-term sacrifice for a long-term goal. So even if you're a stay-at-home mom, there is something you can do. And to your point, you're going to be exhausted. Your eyes are going to be bleary. There's no getting around that.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And I also want to add to this, an $80,000 HELOC, typically it's not one spouse that makes that choice.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
It's all the same, but tell me personal first, just for the purposes of this call.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Yeah. And so now the $1,000 a month in the summertime, that ain't going to cut it. There's got to be more to this. And I feel like, I don't know what it is, John. I feel like more and more, I don't know if it's just the way of the world or like culture right now, but I feel like more and more when we tell people, you've got to grind it out.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
There's just kind of like this scoff of like, that's not possible. Or are you kidding? Have you seen my life? Or it's... there's just kind of this part of it where they think we're not being serious. Like, are you, are you really meaning?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And it's a real, it's a real place.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
There's no getting around it.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I want to know where the real ones are out there who are willing to be a one-car family and grind it out for a year. I want to know the folks who are willing to sell their beloved televisions and their big sectional couches and really make deep sacrifices who are willing to work. and work and work some more to make deep sacrifices. You have a call center job.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You have your nine to five job and you sell cookies on the side. I want to know where those folks are because those are the folks who are getting out of debt and they're doing it quickly. This is The Ramsey Show.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
So, okay. So credit cards are 8,000. How much on the car?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And you told me you're paying $1,500 a month now. Is that right? Yeah, it's a little under that. It's like $1,400 and change. Okay, fine. So the car, what's the car worth? It's $20,000. What's it worth?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You're listening to The Ramsey Show on The Ramsey Network. And hey, just a reminder, the next hour of the show, if you want to catch it, you'll have to go on to The Ramsey Network app. You'll be able to see all three hours of the show on the app. And I like it because there's not as many interruptions. It's uninterrupted Ramsey stuff.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
All right. Let's take a call. Let's go to Debra. She's in Phoenix, Arizona. What's going on, Debra?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I'm so sorry. That's tough.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Now, with your line of work, is it, I can do more work and make more money? Is it just as simple as that? What's stopping you from doing more?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
What do you earn from real estate? What's like a good year for you or a month, a monthly look at take home for you?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
What's your biggest concern right now financially?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Let's look at it as a whole. Cause you said you, you kind of spoke about it. My husband didn't leave me retirement. There's no savings. Did you have anything set aside? I'm just wondering, I don't know how you guys managed your finances. If it was separate, if it was together, is there any saving? Do you have any savings to your name? Basically is my question.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You've got your emergency fund. How much is in that?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Okay. And then you've got the other savings. What's in that? $30,000. Okay. And then anything else I need to know about?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
So let me see if I can put your mind at ease here. I'm always trying to do the calculators to find out. So, oh, one other thing before I do this. So tell me about your house. Tell me what you owe on it and what it's worth and what you pay every month.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
that it was a well here's the thing let me let me give you the quick equation the way that you get out of debt quickly is you increase your income and decrease your expenses that is the simple solution to getting more money to throw it at your debt and that's all it is listen you You've got two debts. You owe $28,000.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Okay, good. So I like that you're walking the steps. The only thing I'm wondering is if you're putting away 15% of your income currently, because you told me you have the emergency fund, six months, love it. It's perfect where it is in the safe. The next step would be for you to be putting away 15% of your income and you're already doing extra on your mortgage, which is really, really good.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
So as long as you're doing the 15%, are you?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
So here's what I would do if I were you. I love that you're paying extra towards the mortgage. I think that's exactly right. If you can get and start putting $1,900 a month into retirement because you have it, if you're really earning $13,000 a month, which you say is pretty accurate for you, if you start putting away 15%, right now you said you're 56%. Yes. Okay.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
By age 70, that's going to grow to $838,000. Just that. So that's a good move. That's if you do nothing else different. Okay. And the idea is you're already working to pay off your home, which is what you need to continue to do. So if you continue to do that, your income continues to go up because you're still young. You're 56. You're not going anywhere. You keep working this real estate thing.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I think you're going to be okay. For you, it's just getting in the habit of saying, what I do intentionally with my money does make a difference. It's not extra. It's not gravy. And I think that you're going to make it, and I think you're going to be just fine. Give us a call if you need any more help. This is The Ramsey Show. Hey, what's up guys?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Episode two of 90 Day Money Makeover is available right now on YouTube. This series follows real people as they take on the challenge of transforming their finances and their lives in just 90 days. In this episode, watch as they face new obstacles, celebrate wins, and push forward on their journey. And of course, I'll be walking alongside them every step of the way.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Okay, now here's a little sneak peek of what the new episode is all about.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
When you guys called into the Ramsey show, it was like, I think that we should push them harder. Baby Jonathan being born is a wake-up call for us to finally change. I can't go on another month.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I know that you lost a lot of money in this process, but the truth is right now, your debt isn't all that scary. If you called in here telling me you had $500,000, and maybe with the business it is that much, but let's focus on that, quote, personal debt first, use the debt snowball and pay it off, and then you can call in again and let's talk about this business and if it's worth keeping.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You want to pay off your debt. You want to get your time back. You want to get your home. Nothing usurps those three.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You're listening to The Ramsey Show. I'm Jade Warshaw. Dr. John Deloney sits beside me today. Hey, if you're ready to get your finances in order once and for all in 2025, I've got just the thing for you. Hey, we're doing this free live stream. It's January 23rd. It's take control of your money.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
So if you're a person who's been living paycheck to paycheck, if you're a person who's constantly overdrawn, if you're a person who feels like they just can't seem to get ahead no matter what, right? Two steps forward, one step backwards. This is for you. It's going to be myself and Dave Ramsey. We're going to take the stage. I'm going to show you how to stop living paycheck to paycheck.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I'm going to show you how to make your budget in real time, right? So you have more breathing room so you can pay off debt fast. And finally, really just get ahead with your money. That's what all of us want, right? Later on in the evening, Rachel Cruz and George Campbell are also going to join us. We're going to do a Q&A. This is about everything, not just your budget.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
We'll answer questions about real estate. We'll answer questions about investing. This is your time, okay? If you ever had questions, if you were ever trying to wonder how to get unstuck, this is for you, okay? So not only that, but we're also giving away money. because nothing helps more than just to have a little extra cash in your pocket.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
So when you sign up, you're going to be entered to win one of our cash giveaways. And we're going to be giving away $4,000 to five different people. I don't know about you, John, but $4,000, that's a little bag, all right?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I'll take it too. So if you want to get involved, sign up for the free live stream. You can do that by going to ramseysolutions.com slash live stream. You can click the link in the description if you're listening on podcast or YouTube. I want to see you there. I don't want to hear any more excuses. You need to be on this live stream.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Yeah. If nothing else, just sign up for that. Okay. I'll see you there. Yeah, get that money. I'll see you there, remember, at 7 p.m. Central Time, so do the math and you figure out the time zones. All right, Roger is in Kansas City, Missouri. What's up, Roger?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Okay. How much was the student loans and how much was the medical debt?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
I mean, were you on the hook for the deductibles?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Okay. So the debt you racked up was just, we've got a son in the hospital. We need childcare. We need food. We need somebody help clean it. Like that kind of stuff. It wasn't the actual medical bills.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Can I ask a question? And I'm just, I'm not trying to take you to task. I'm just trying to understand. Did you say it was three weeks in the hospital?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Okay, that he was asleep. Got you. And $11,000 in just meals and child care.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
okay so okay got it and is that what you would typically spend in a month three thousand eleven thousand or how far off your normal budget is that um it's it's a little extra because it was already there was already some balance on those cards okay we kind of just did it over the edge yeah got it and you said there's some student loans too how much is that uh those are new those are like i'd say like
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And you're continuing to take those out or have you said no more?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Okay. So we've got the so 41,000 in debt. And can you tell me a little bit more about you guys income?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Okay. Can you tell me what that sounds like every month? Like what's your paycheck every single month or total every month?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Okay. Okay. So what sounds like here is you guys had a crisis. You had something really scary happen. And it's, I don't know, John, I want to say it's kind of normal that sometimes we go into that mode where it's like whatever happens. You have it's almost like you have bigger fish to fry. So you're not thinking about every time you swipe the card. Right. You're just trying to be there.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Who cares? Yeah. Order the food. Who cares? You know, get the get the sitter. Right. And so it sounds like you went overboard a little bit. But I have I have I'm thinking that most of that debt was already there.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
um based on what you were saying the money was for um and then you turn around and you did 30,000 in student loans so did the 30,000 in student loans how does that roi for you what did it do for you because you said you took a course yeah it's it's that's that's recent it's just it's just on it's on us now it's just it was i've only been in school for like four months Right, right, right.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
But I'm saying, I'm saying, is that to get you, what was the purpose of that? Is it to get your income up? Tell me more about where that's going to lead you to.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Okay. And when do you start that?
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Okay. And what will you be making when you get to that?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Oh, gosh. So have you you have reported it or not yet? I haven't.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
So I'm going to step into a territory here. I don't know that I should, but it's just what I sense. It almost sounds like there was already a lot going on in the marriage, and this was kind of a way to start covering it up. Like, let's do a project. Let's move into this house. Let's do this. Let's do that. Stay busy.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Yeah, we find a lot of times that when hard things are happening, people spend money to cover it up and to cope. And it kind of feels like that's what was going on here because this didn't crop up out of the blue. You know, this sounds like it was a long way coming.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
I'm sorry this is happening. So on the income side of the 350, who makes what?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
I think that's the first step, right, is you can see this thing on your credit report. So kind of saying this, this wasn't me. This was my dad. And yeah, the fact he's he's no longer with us. What are those next steps?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Okay. Okay. So let's just pretend for a moment that this does get split in half. And let's pretend for I mean, let's imagine worst case scenario, George. Let's pretend she gets the house and she's allotted a certain amount of time before she has to buy you out because a lot of times they'll do that. And let's pretend she's given several years before she has to buy you out. All right.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
So that kind of means, hey, you're out here on the street, you're the one who's going to be renting, and you're also on the hook for half of this debt here. Let's talk about what that looks like for you. Is that fair?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Okay, so you've got a great job. You've got overtime at your disposal. So if you're to move out, what we would tell you to do is try to find a place that's no more than 25% of your take home. That's thing number one, so that you've actually got your margin to work through whatever debt snowball you're going to have to work through.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Because chances are you're going to be on the hook for half of this, right?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Okay. So you're looking at, I don't know, easily $225,000 you're going to have to pay off. And that means that you're going to have to live on less than you make, which is what we tell everybody. It means you're going to have to increase your income as much as you can. Great way that you can do that. And you're just listing these debts smallest to largest to pay them off when that time comes.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Yeah. Today's question comes from Rachel in Alaska. She says, how specific should a budget be? My husband and I have a budget category labeled household, that anything we buy for the house ranging from dish soap to bed frames goes in that category. Should those be separated into different categories such as groceries and house furnishings?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
So, George, I have clear opinions on this, and I'm not saying it's my way or the highway. It's just the way I think of it. But You know, when I teach budgeting, I say that budget should be three things detailed, realistic and flexible. And that first category detailed is really what we're talking about here. And I I'm a person who kind of likes to know exactly where every dollar is going.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And I like to be able to look back and go, how much did we really spend on groceries? How much did we really spend on? specifically on going to restaurants? How much did I really spend specifically on furnishings for the house? Right. And so with every dollar, it does behoove you to separate these categories out if you're interested in that sort of thing.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Now, on the flip side of that, if that causes some sort of contention or it makes it more frustrating for you.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
That's what I'm saying. So if it causes problems, like pull back a little bit. But To specifically answer your question about this household category, I'll tell you what I do. I have the whole heading of it is, I think, lifestyle, I think is what it says on mine. And then underneath it, I have a groceries, which is at the grocery store. Then I have a date night, which is specific.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And then I have restaurants. which is not a date, just restaurants in general. And then underneath that, I do have household items. That's what you said, things like dish soap. And if I go to, you know, HomeGoods or Target, something like that. And then George, I have one that just says Amazon.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And then I can look at that and lament over it later. Yeah.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And I would say specifically if it's a category that you do feel like you guys are having a hard time sticking to. So, for instance, yeah, food is one that people struggle with. It's the number one budget buster. Or maybe it's something like, I don't know, like kids or entertainment, something that's kind of an overarching target.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
For a season, it could be a good idea to break it out so you can understand exactly where the problem is. If you break out right now, if you just have on your budget food and that covers anything you eat and you're like, man, why is this thing like messing with our budget? If you break it out, you'll realize, oh, specifically it's DoorDash.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And oh, specifically, I noticed when I look at the transactions, every Wednesday we stop because that's the day that the kids have Taekwondo, right? And then you start to see what your habits are. So not saying you have to do that forever, but it could be a way to identify where the trouble zones are.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Why are you borrowing? I have a big question. Maybe I'm too dumb to answer this.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
I'm looking at you. I'm like, this lady's got to pay it off. She's been gifted a house. They don't have any other debt. Why are you taking on debt? You have such a beautiful situation, and here you are taking out HELOCs and borrowing from family members when you don't need to. With a fine income.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Yes. But let me put this bug in your ear because I think this will help you going forward. So, A, you're right. A thousand dollars isn't enough to cover anything under the sun. It's not supposed to be. But it is supposed to cause you to think critically about really what is an emergency. Right. And get a little bit more creative about how you solve that.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And a lot of times that creativity, in your case especially, is kind of dipping into your cash flow in order to make it happen. Because, like I said, your income is fine. And a lot of these things, they did not come out of the blue. Like something like braces, you kind of know. Like you're looking at, you know, junior's teeth and thinking, okay...
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
this can't be good right so you kind of know and there is there's a time frame on things that sometimes they make they make you feel like something's more urgent than it is so I just want you to think about that before you borrow money again is this something that's completely necessary is it really something that I have to do right now like is it urgent and is it truly unexpected or did I know this was coming and I've just kind of been in denial thinking I'll just use debt when the time comes so really filter it through that I think it'll cause you to make better decisions going forward
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
What happened to the did he have any assets when he passed? He had his personal house.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Okay. Okay. So I'm thinking about what you're thinking about. Do you have any debt or are you guys or do you have a clean slate? Tell me more about that.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
So I actually think that is one of the best things you could have done to set your family up for success is to avoid debt because now... And George, you can come in and stop me, but now you've got your full income at your disposal at a very young age. And so in that way...
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
I think that you've set yourself up because I mean, once you get three to six months saved, you're investing 15 percent and you're going to do that for a while. And then depending on what you think your income will be, you know, if you can, if I were in your shoes, I'd want to project out, OK, how quickly could I get to 10 to 12 times my income if I start investing?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Like, how long would that take by me doing 15 percent? And then I'd want to know how that jives with what my health is. And then if I feel like, okay, now I need something in addition to that, then yeah, I might be searching out other options, but they're going to be expensive.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And I almost would rather put that money into additional investing than in one of these policies that's like a no exam policy.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Yeah, I'd rather put that in my own investment than yeah, do some sort of simplified life or some sort of mortgage life insurance. I just don't see how it's going to return for you.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
So these mortgage companies are coming to you saying pay up or sell?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Does that make sense? Yeah. And you will be naturally because – and I didn't do a good job explaining this. So because you're not in debt, you are in many ways – you've –
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
excel through the baby steps faster right so you're going to be doing baby step four at some point you guys are going to buy a house but because you don't have any debt you'll be through that house lickety split so that's thing one and then once you get to baby step seven you can invest whatever amount you want above the 15 and so you're going to be doing that in your 30s when so many of us are doing that in our 50s because you're so ahead of the game does that make sense
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Yeah, thank you. So you've got time to build this. George, that'd be my take on it. What do you think?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And so, yeah. So for even more clarity, I'll say this. You know, when we talk about baby step six, paying off the house, a lot of times that's taken people, you know, 10, 12 years, that sort of thing. In your case, yeah, I would treat it like a baby step two. And I would kind of just, you know, clip my way through it.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And that way, to George's point, you'll be set up to invest way more, way faster. Yeah.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
for most people so head to zander.com and get that taken care of it doesn't take long to apply and knock it out and what you said is really good to to reinforce um the point is to get to the point of self-insured because a lot of people they get weirded out by the fact that a term policy like what happens after 20 years jade yeah then what you're wealthy i wasted all that money on a policy you don't say that when you pay your homeowner's insurance and your house doesn't burn down
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
OK, here's a big question. So I know how I feel about this. So we've said the point is to self-insure. At some point, you could let that policy go. I don't think I'll ever let mine go. I think I just keep renewing.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
I mean, it's a lot of money. I think I just like it on there like as a cherry on top.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Jade wants it. What about you? What does Whitney say?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Got to be. Yeah, 30% interest. Oh, holy moly. Holy smokes.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
That's right. And you do it today. And it's not expensive, especially if you're healthy. That's why George said the younger you are, get it. And yes, you will be, your future self will thank you.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And if you do do a medical exam, it's easy. They come to your house. They take your blood. I lay on my couch. I'm comfortable.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
But let's, I want to divert here for a minute. You're on the clock. You're like, I get my insurance on the clock.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
But here's another, you know, I say all the time, you know, we walk the baby steps and a lot of people sacrifice. And I say all the time, like being on the baby steps is not an excuse to eat crap, right?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And here's where it plays out because when it's time to do that medical or it's time to get that insurance, you want to make sure that you haven't been, you know, stopping through the drive-thru and doing the ramen noodles because you want to get the cheapest policy possible. You want to be as healthy as possible. So all of this stuff is intertwined. It all links together.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
How upside down? That's the real question.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
I take a deep breath when they take, you know, your blood pressure. I'm like, I am calm. I'm cool. I'm collected.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
eight trips to the emergency room a year oh boy okay that makes more sense is it you or the kids is this chronic health issues
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
So you're hitting your out-of-pocket max every year? For the last three years, is that basically what's happening?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Okay. So that's the magic number right there. So the way I would look at this is I've got to have that. Um, You know, when you have chronic illness like this, you have to be prepared for it. And if you have access to a high yield savings account, that's a great place to keep that money. If you don't, I'm just keeping it in a high yield savings account for when I need it.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
About $7,500. Are you investing? No. No. Okay, good. So go ahead, George.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Say that one more time. I said, yeah, that is a piece of the problem.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Yeah. How much do those three, the cars, the student loans and the solar cost you every month in payments? Twenty nine hundred. There you go, Mama. Okay, I see. I see it. I see the clear picture here. Plus the, is it a $2,500 mortgage?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Okay. So are you staying at home with them? Are you staying at home? I work from home. Your work from home.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Okay. Okay. And what does your husband do for a living? What's his work?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Can he do overtime? No, he's a salary exempt. Overtime does nothing. So here, I'm going to tell you this and I'm going to say it with a sigh because it's going to make you tired. The only way to get out of this cycle is to do something that is going to infuse your monthly income in a major way. Do you see what I'm saying?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
You need that jolt of B12 into your income so that you can kind of leap over a few of these hurdles quickly so that when they pop up, it's not this thing that's taking you one step forward, two steps back.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
the thing that i think is your husband because you're at home with the babies even though and you're working at home if you can pick up extra hours more power to you but if he can if he can say hey for a while on the weekends i'm i'm going hard in the paint and you guys get together and say what is that goal what do we need extra is it is it 1500 a month is it a thousand dollars a month and you guys just lock lock eyes and lock arms and say for 12 months we are kicking it into high gear
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
and we are going to be ships passing in the night, but we've got to get this $3,700 in the bank, and we've got to make sure that we still have margin left to pay down some of these debts. Tell us about the cars, because there might be something there that we can help you get that infusion.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Your insurance didn't cover it? It was his fault?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Yeah, and you're going to have some insurance money coming back from this. And you need to use that to go towards the debt since you've already replaced a $20,000 car. And if I were you, I'd try to get out of it and get something cheaper while you still can.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Well, there was the power of attorney and I'm not a lawyer here. So I'm just asking, was the power of attorney that was granted in case you were unable to make financial decisions, right? Not in every case.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Here's the thing. And I hate this for you. And I don't know. I'm just going based off of what you're saying. Unfortunately, it does sound like there was language in this that puts you on the hook for it. And because of that, because it's a legal document, you might have trouble getting out of this. And I hate that for you.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
What do you care more about having, the rental or the beach house? Like long term? You tell me. I'm just trying to decide. If you really wanted this beach house, maybe it's worth you getting out of the rental in order to get it faster and then spending the time, spending that seven years to save up for another rental. You know what I'm saying? Maybe you flip-flop them in order of priority.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Yeah, that's a decent thought. I like having the one because it cash flows very well. Yeah, but you guys also, did you include that in your income? No. That's what I'm saying. You have a great income. It's not like your lifestyle is dependent on it.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
But if you're saying, hey, man, I really see us using this beach house and living there and enjoying it, whereas the rental, somebody else is living it and enjoying it. Maybe it is a situation where you get out of one in order to get the other. I don't know. Yeah. It's just a thought. I'm not saying that that's the right move. It's just something to think about.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Listen, I'm really thinking about this now. Ashley, I think if I woke up tomorrow and I were in your shoes and I was talking to Sam and we were pulling up Zillow and looking at beach houses, I'd be like, OK, if we sold our rental and let's say we pocketed two hundred thousand from that rental, we throw that in a brokerage. How quickly is that going to multiply?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
In order for us to do the million dollar beach house that will get benefit from, you know, and a lot faster of a time frame than you guys starting from scratch, throwing money into a brokerage.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
that's that i think i'd veer more towards that and then once we're we've got the debt-free house then we buy the beach house debt-free now if we want another rental that is just for somebody else to live in we can save up and pay cash that's like the 10-year horizon thing that you can you know be a little bit more patient on but yeah george how quickly i just crunched the numbers actually here's the proof so you said how old you're 30
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Let's pretend for the sake of the last few minutes of this call, let's pretend you can't get out of it. Let's pretend lawfully you're on the hook for it. Tell us about your financial situation and let's see if we can walk you through a way out of this.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
I don't think you're going to pull enough profit to do it faster than what George just suggested.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Their feet in my shower? Exactly. Not happening. It ain't happening, George.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
You find somebody else's hair on your, you know, counter?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
So yeah, I really... What will you make now that you've got your license? Yes. Okay.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
I just graduated last week, so I haven't actually got a job yet. Okay. When do you see that happening? And when that does happen, what will you be earning?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
I am 21. Wait a second. Wait a minute, Jenna. You can't just speed past that like you didn't just say what you just said.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
So we've got this, there's a possibility to make $100,000. So you've got the $90,000 of student loans. Have you totaled up all the debt? If you were to sell the properties, what would be the upside down amount for all these properties combined from your dad? Yeah, I would probably still owe about $250,000. 50 to 300. Oh my gosh. Okay. And your student loans is the only debt you have.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Yep. I'm astounded. I truly am. You know, you said you're in a small town, but you're 21. You're not making small money. I mean, almost $60,000 a year.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
You said ag or egg? Egg. Oh, wow. You got to ask in this world. I know. I just wanted to make sure. Okay, this is crazy. So who was rooting for you? I'm sure your parents were on the sideline just baffled at what you've accomplished.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Thank you. You're astounding. I'm shook over here.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
She's like, yeah, I house some immigrants. This is amazing.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
So you are the real deal, you know. I don't have anything to say other than she's the real, I feel like you've put a lot of people, you're putting a lot of people to shame in a good way right now. Anybody who had excuses, it's like, look at Jenna. I have no excuses.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
No car loans, no credit cards, nothing like that. No, I have no credit card debt or cars. It's all been paid off. Okay. And it's just you, no kids, significant other.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
All I can say is the gentleman that comes calling later on trying to be Mr. Jenna, he better come correct because you are not playing around. That's all I'm saying.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Okay. So man, I hate this for you. I, I mean, I just hate it. But at the same time, if you end up on the hook for this, we want to make sure that you have a plan to get out of it. And it might, do you own your own house?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
I'm a knucklehead. I just mooed on the radio.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
She's made different. She's built different. That's all I can say.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Okay, George, aliens, yes or no, real quick.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
What does she want to do versus what you want to do? What are the differences?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Got it. Okay. So it's not like you can call her up and say, hey. Look what your husband did. OK. Oh, boy. Unfortunately, I hate to tell you, Amanda, you might have to walk the baby steps on this one. And it's a clear path. It's worked for me. If it makes you feel any better. I paid off four hundred sixty thousand dollars of debt and it was terrible, but at least it was debt that I racked up.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Well, is it because... Because that wasn't your level of expertise? Or is it because you tried working with an expert that could help you with your website and your SEO and it still didn't work?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
I understand. I'll be honest. It sounds like there's a little something else underneath this. Not just a business thing. I'm not going to get too much into that. But I do think that it's probably a combo of both, especially starting out, because the truth is it does take money to get some of those other things off the ground. Do you guys have cash to invest in this?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
So right now... Are you going out there making money in the landscape business right now, or this is just you guys talking about revamping this thing?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And what did she do before? Was she in marketing? Retail. Okay. So, okay, here's what I'm seeing. I'm seeing a couple dynamics here. One is you've done this before, and I don't know to what tune. I don't know how successful you were or you were not, but you have some experience here, and you're relying heavily on that.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
She also is probably like, I got to turn this into something because I'm not working right now. So her motivation is probably like, we got to go fast. We got to do this thing. Let's take it to the website. Let's take it, do the SEO stuff. And so you're both kind of in your own worlds of what you think needs to happen.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
I mean, if you called in here, I'm going to tell you it's probably a combination of both. I wouldn't go into debt to do any of this. And it doesn't sound like you are. Um, And from that perspective, I just ask her, I'd say, hey, what stops us? Tell me in your mind, what stops us from doing both?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Are you because one of them requires me door knocking and, you know, hitting the pavement and one of them doesn't. One of them is really an online play that doesn't require my time. So why can't I then still continue to put my extra time into that? you know, enriching that by knocking on doors and talking to people face to face. What would she say to that? It's not a negative. I'm sure.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
I'm going to do it like this and you can't stop me. Is that what you're doing?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
So for you, you're going to have a bitter taste in your mouth if you have to do this. But the good news is you can do it.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
When you did it before, what were you earning off of it?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Yeah, I think that's great. I mean, you were making a real income on that. So I understand why you're kind of leaning on that. And I think you're right. Again, it is a combination of what both of you are saying. And I think, and George kind of touched on this, you guys want to accomplish the same thing. You have slightly different ways of going about it.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And I think the important thing to remember is that you're on the same team and you're trying to do the same things. And I mean, I know, George, you're married. I'm married. Sometimes you forget that. And it's more about being right than about going, oh, we both want the same thing. I'm going to agree with some of what you're saying and you agree with some of what I'm saying and we'll be good.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Yeah, I mean, right now, probably now is the time to start separating things if you haven't already. I'm guessing one of you is moving or has moved out of the house.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Like, how much is yours? How much is hers?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And then how about the credit cards? How much of those? How much in total?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Okay. And then finally, the student loans. Whose name are those in?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And the other is, did you guys kind of share this? Are both of your names on all this stuff? Are both of your names on the mortgage? That kind of thing?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
And then, you know, this is your first marriage?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Okay. So, and were you both working or were you a primary breadwinner? Like, tell me more about how that happened.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Yeah, you think you'd be doing better.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Absolutely. I mean, again, I'm not an attorney here, but just based off of what you're saying and what I hear, likely it's just probably going to get split down the middle in most ways. that you've been together a long time. It sounds like you were both working. You were both contributing to the income. You were both contributing to the debt.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
So I would anticipate and I would fight for that sort of a split, unless you know of a reason for it to be skewed in one direction or the other.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
So you're saying for the person who moves out, that's going to be their burden?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Is there any assets anywhere? Do you have any savings, non-retirement anywhere?
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
Okay. What is in your retirement? I'm just curious.
The Ramsey Show
You Can’t Win with Money if You Keep Borrowing It
So you've spent 30, let's see, you spent $35,000 plus, you've spent almost $200,000 and you're still not done with this rental?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Okay, that's your homework. One of the things that I want you to do getting off of this call is to find out how I can get off of this because this for a whole another year is a lot of money. I'd rather you just go over to Walmart and make it happen for $847 in one month than to continue paying this. How much furniture does that include?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
And then after the year, you'll own it?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Okay, keep going down the debt. What else do you have?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Okay, so yeah, you're right. Those payday loans, those will suck the life out of you. So I want those at the very, very top of the list. Do whatever you can to get those things out. I really, really want, and I know that this doesn't happen overnight, but if you find the right folks, it can. I really want you to get plugged in in a church or into some community because you can't do this alone.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
I mean, you are running on fumes already. So you've got to get somewhere and you've got to tell your story.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
And you've got to let people hear what's going on, people who care. I want you to get to a local church. I want you to get plugged into a life group. And I want you to start saying what's going on because anybody else that hears that is going to go, if you came into my life group today, I'd be like, what can I do instantly? 100%. Do you see what I'm saying?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
So getting people around you is paramount to making this work.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
This is wonderful. First lady.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Doesn't that have to do with your work? How does that conflict with your work is all I'm asking.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
So your only question then was just your only issue was net worth. Like, hey, is this too big of a piece of my net worth to do this?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
i'm uh 24 i'll be about to turn 26 by the time we take the trip in october my birthday's end of october so okay so turning 26 my only caveat is i would be moved out of my parents house before i went and did this like to me at your age that's really important and so i would not want this trip to push me from not doing that that would be my only piece to this
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Is our talk the same? Because I feel like I'm talking about the same. I'm talking about being in your spending era. And my guy, my guy is in his spending era.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Okay, the regrets of the dying.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Tell us some of them. Can you?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
But he's got the money and why wait? I think what Ken, what you're saying is so smart and so true. We see that with home buying. We see it with vacations. It's kind of like people are gun shy to actually, like you said, live. And I'm like, you have the moment. Take it. No one is, people only want your time. They only want to suck things from you and take things from you.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
People rarely will push you to do those things. There will always be an excuse like why you got to work more, why you can't go, why you can't do it.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Man, I tell you what, I'm glad that my talk comes before yours because they're kind of similar.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
All right, today's question comes from Catherine in Indiana. She says, How do I rationalize having a $1,000 emergency fund when I could be using it to pay off debt? I've lived paycheck to paycheck for 25 years, and I've always managed to cash flow any emergency. I have a hard time rationalizing putting money in the bank now when I could put it towards credit card debt.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
I can't get past this feeling that having savings is for those people and not me. Fascinating. That is fascinating. I mean... Let me tackle this from a couple of areas. First and foremost, I want to say that when I first started the baby steps, I felt the same way. I was like. Oh, you did? Yes.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Let me tell you, I specifically remembering arguing with Sam because he was like, Jade, we have to walk the steps the way they're written. And I was like, but we need this thousand dollars to go towards our credit card payment.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Yeah, because you're desperate. And so you're like trying to like put out the fires and stop bleeding, stop the bleeding. So I validate the way you're feeling. However, what changed my mind is kind of what you said here, which is for 25 years, you've been living paycheck to paycheck, which means your way hasn't been working.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
That's really. And so I had to do the same thing. I had to go. Here's the thing. I'm in four hundred sixty thousand dollars of debt.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
My way and my instincts have not served me well up until this point.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
not having that extra little bit of money when unexpected things come up, I just felt like we were taking two steps forward, one step back, just going very, very slowly. And I just remember one time just being like, pull the car over. We've got to figure this out. And when we did that, we kind of looked at the baby steps and it was kind of like an audit. It was like, okay,
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
what are we doing versus what the steps tell you to do? And what we found is there were a lot of inconsistencies and the thousand dollar emergency fund was one of them. It was like, okay, you're supposed to have a thousand dollars. We didn't have that. When you budget, you're supposed to have a cushion line item. We didn't have that.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Cause I was like, zero dollars, zero, zero base budget is zero dollars in the account. I felt that. And so these are the things that we do, especially when you have a lot of debt, especially when you're trying to go quickly, you kind of think, ah, that doesn't apply to me. And all you see it as money that you could be spending. But I'm telling you, Catherine, do the thousand dollars.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
I did. And I also understood the third part of this, which is if you've never... So many people struggle with saving. If you've never been a person who has had savings or you've never been able to make it stick, right? You put it in and then you pull it out. It feels like you'll never be able to do it. But if you just...
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Take that money, you set it aside, you put a lock on it, you will find that savings is a muscle that you build. And you're probably right now just, you don't have any muscles. And so you have to just work at it and you get stronger and stronger and that becomes something that you do become good at.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Is that the one that's upside down?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Okay. So every month, what do you see? Like on a, on a normal month, what do you see on the pay, on the paychecks?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
I mean, how quickly, using the side gig, how quickly, if you really said, I'm going to focus in on the side gig, how quickly could you save up $3,000 since your budget is based on the $5,400? How quickly could you do that? All right.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Okay. And what is the side gig?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
I definitely think that you could pay it off. The only thing that's throwing me a loop is the $60,000 in student loans. If it was just the cars, I'd be like, say less, like pay them both off. The 60,000 student loans is what's bothering me. Can I dig a little deeper and ask you, what's the payment situation? Are you on the save plan? There's a lot changing with student loans right now.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
So I just kind of want to know where your head's at on those.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
The student loans, those feel like a major risk right now. Safe plan, a lot of people have been on that to kind of curtail a higher payment. But there's a lot of talk about that being rolled back and the payment amount being due going up. And so I would hate for that to catch you off guard. For that reason, I could be interested in downsizing the lower car or the $20,000 car.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
What's the $10,000 car? What type of vehicle is that?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Yeah, I wouldn't get rid of that.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
I would not get rid of that one. Here's where I'm at. I like that you're using your skill set to make money, like extra money on the side, but it feels like it's a slow go. I wonder if there's something else that you could do that you could make a lot more money a lot faster.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Because I think that if you're going to hang on to this $20,000 car, you've got to have a number in your head that you're committed to. Like every month, we're bringing in an extra X amount of dollars. So it's probably you and your wife sitting down. How many kids did you have again?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Three. And what are their ages?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Okay. All right. I think it's you and your wife sitting down and saying, honey, what margin of time do you have? And looking at the other and saying, okay, well, what margin of time do you have? And then putting your heads together and say, this is the amount of money that we're agreeing on that we need to bring in extra every single month so it's steady.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
And if you can do that, then you can keep this car. But just know those student loans are waiting for you in the wings.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
What happened when you confronted him? And depending on how the confrontation went, it feels like that would have been a time to kind of come clean with everything. Did he not? What happened when you confronted him?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Well, you said you're welcome.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Got you. Like you are welcome here with us.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Well, I think that the crux of all of this is without a budget, everything's a guess, right? It's like, I think that this is probably not good or I think that we don't have enough. But you really don't know or you think that this is outside of our range, but you really don't know because there's no set limit that's really telling you.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
So I think thing number one is if you guys get a budget, an every dollar budget, it's going to take a lot of guesswork out of what you're saying because it sounds like you bring home $10,500 every month. That's a lot of money. especially for people who don't have debt. And so I think that if you guys do a budget and in the budget, of course, you're adding the things that are very necessary, right?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Your mortgage and your 15% that's going towards retirement and all of the other little things that you guys are paying for. And if you just say, okay, and our restaurant budget is $500 a month and our saving for vacations, we're putting away this much a month. I think that that's going to be eye-opening for you. I really do because you guys clearly have done a fine job saving.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
You've done a fine job getting your emergency fund. You got 50,000 in the HYSA, which by the way, what's that 50,000 earmarked for?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
So, so you've got a couple options. I love that you've got the emergency fund there. That's exactly what it's there for the 50,000. Yeah. Maybe that's there for fun things that you want to do. If you want to take a trip, if you need to do something for the house, that's there for that. Um,
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
you know if you feel like it's too much you could invest some of it into a brokerage to where it's still gaining a better interest rate over time you don't have to but you could what are you investing what's the dollar amount that you're investing every month at this point I'm sorry I'm confused by that did you tell me that you're still putting money into investments
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Then, you know, I think that, I mean, tell me if I'm wrong, but I think a budget is what's going to unlock all of this.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
OK, so let me ask this, because there's two things that I'm sensing going on. Number one, your boy was caught in a lie and you probably came in hot and heavy. I would, too. Like, I'm not saying that you shouldn't have. I would have been like, say what? So I understand that you probably came in there really strong. And so for some personalities, that's like shutdown mode.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
I think you're doing better than you think you are because when I plug your numbers and I go, okay, she's 60, he's 68, he's going to bring in 6,200 forever until this point on. If you continue that on for the next seven years, you're going to have what you're doing right now with the investing that you're doing right now. You'll have almost $1.4 million. Right. Right.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
So if you just lived off the interest, which was one hundred and forty thousand, I'm not accounting for inflation. That's far more than you're earning now. So you don't even have to live. You could live off of seventy thousand and be exactly where you are now. You are good, mama. You've done it.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Like it's like I like the cartoons. So he may not. He might have just been trying to get through the situation, which is probably why he wasn't giving more information. That's thing number one. But did you guys come back later on in calmness and be like, OK? Let's sit down and talk because here's what's gone on. And when that happened, what what could you derive from that?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Do you have debt? I'm sorry? Do you have debt?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Okay, so this was a big jump for you, a major jump. So what are you making now?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
I'm just trying to understand. So you got this gig.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
that it's paying more than you were making and you're you got excited got the car this other thing came along were you looking for something else and if so what was the main driver was it the physicality thing that you were like i can't keep doing this to my body i gotta get out of this is that what happened or did that just happen to be uh you know part of this well and while i work in construction i'm an operator right um but i'm not like running i'm not
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Because it is possible people don't always know when people don't know what's going on with their money and they get behind. Sometimes they're still like, OK, what's going on? How many months in it? He might not even understand it. So have you guys sat down now calmly to talk through everything that's going on?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
I'm just getting... What I'm trying to get at is for you to tell us why you want to leave this job. Because if you can't articulate a clear reason, then what's the point of leaving it?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
I want to know what you owe on this car.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Okay. I'm fine with that caveat.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
I'm fine with that caveat because what's the payment on the car? Actually, the payment on the car is about $700 a month. Exactly. And so you're going to feel that.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Yeah, you're going to feel that if you take this other job. And so that would be my caveat to this is, yeah, pay that thing off. Would you do it personally? Yeah.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
i'll be honest uh i don't feel like you've made it very clear jeremy what this job is really going to do for you i i'm not sure that and i'm sure maybe you know it deep down inside but you didn't make it really really clear to us so i'm still struggling with why it's feels like something you need to do i feel like it's something that i could see myself doing longer than what i'm doing right now especially with like yeah but see that's great like i said my my
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Oh, no, I love my job. Okay, so you do love your job. Okay. All right.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
If it's the difference between I love it or I love it more, then you go with the love it more.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Now that requires a lot of discipline.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Okay, so you guys are talking about it. And it kind of does. I mean, can you can jump in here. It does kind of sound like what I would expect a situation like this to sound like because contrary to popular belief, money stuff is not a light switch. Like it doesn't it's not one conversation and over.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Yeah, asking for a friend. It's whenever you want to know something that you feel you should know at this point in life. You don't want to be today years old where you find out about something that you feel like you should have known forever. And so instead of putting the heat on you and saying, hey, can you tell me about this? You put it on a friend.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Asking for a friend, right? So Nate from Michigan is asking for a friend. Listen, his name is probably not even Nate.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
He says, I just wanted to know the true meaning behind the phrase cash flow, okay? Sometimes it seems like it means simply that we paid cash for something or, for example, we cash flowed the building of our house, right? At other times, it seems like it's a phrase that's being used in a business sense, right? Is the business profitable? Just wondering what that means. Okay, so- This is good.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
He's right. We do kind of use it in two different ways. Yes. One hundred percent cash flow. And we're talking about personal finance. It means being able to use the cash that's flowing in and out of your pocket to pay for things. Right.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
So if I said I bought a new car and I cash flowed it, it means that I used money that was out of usually it's monthly cash flow and said, yeah, I have enough in my monthly account.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
money to cash flow this I don't need to dip into savings I didn't need to borrow any money and I used the cash that I had on hand but there is also a cash flow that we would say in business sense and it's not much different I would just say that in business sense when we say cash flow we're talking about the movement of money in and out of the business right so we're talking about that flow of money it could be things like
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
inventory or supplies or operating expenses or product sales. It's money flowing in and out of the business. And again, all of those things are things that we're paying for with the cash from the business. And it's happening over a period of time. And so it's still this idea that whatever it is that we're paying for, we're using cash for it, whether in a month's notice or over time with cash. So
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Hopefully that provides clarity. I mean, obviously the best way to take control of your cash flow is to have a budget. And when you do that, you can see how much cash flow is at your disposal. So you could do that with every dollar if you don't already have it. It's a good, good thing to have.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Yes. Yeah. Even something that is a legitimate emergency, I'm like, no.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
it does tend to spread into many conversations that have a life of their own because the truth is there is, he has made a mistake. I'm not trying to sugarcoat that, but there's a lot of shame around the choices that people make with money. And so it can take a while to really be able to talk about it in a way. And I think what you're saying seems right.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
But hit me with the free part.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
You did. It made you come up with better ideas.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Next on the list is you start taking a cut.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
That's true. That is very true.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Ken, good job. That's all I can say.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
You talk about it a while when it gets too hot and heavy, you cool it down, come back to it later. What you're describing really does sound Like you're on the right track. And what I would be listening for is as long as you don't feel like he's still hiding things, then I think that you're on the right track.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Oh, man. So it had to lock in at whatever the rate is. Like, is that the current rate?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Well, tell me numbers wise what it's gone up. It went from what to what?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Spring has sprung in the Nashville area.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
But you're still going to feel it. They're just spreading it. It's like spreading out your punishment. You get one whoopin' today, and then you get one whoopin' a year from now.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Well, I have a couple questions. At the end of this three-year term, whether they do it all at once or over the three-year, you get slapped a little bit each year. Is that the end?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
And this is just something that you guys are going to uncover and it's going to be a continued journey.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Okay, your choices are you find a way to get $1,000 more in your income because you can't, if you don't do that, this is going to drain everything. So if you don't find a way for you and your wife to bring in $500 a piece every month that's sustainable, you can't keep this house because... Sell it.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Or maybe it's you paying off debt and freeing that up in monthly payments.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
it's uh just under 70 just under 70 okay and that's your is that your only debt at this point you mentioned you paid off the car is this it that a two thousand dollar something these parent plus loans and then another two thousand uh loan another two thousand dollar loan okay and that's just a personal loan yeah okay um all right and what do you have saved do you have anything saved
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
What's in your IRA and what's in your HYSA?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
And anything else? Any other money anywhere we should know about?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Okay, so the good news, what I'm really excited about, Patricia, is you've got money laying around, which we need. So if I wrote everything down correctly, obviously the $40,000 that's in the IRAs, we can't touch that. But you've got $45,000 sitting here plus another $21,000. So that's giving me $66,000 right there. Yeah, that's the majority of these bills knocked out.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
And technically, because you're in debt, I know you're not going to like this, but because you're in debt, that H.Y.S.A. needs to go down to one thousand and we can take the other four thousand. And now suddenly you've paid off seventy thousand dollars of debt.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
yeah but here's the thing yeah when you called in you didn't say my biggest problem is i'm scared to spend my savings my biggest problem is i'm afraid that i won't be able to you said the biggest problem is these student loans and you you're right those being around your neck is the biggest problem so if you can knock those out how old are you 68 68 if you can knock those out and get them out of your out of your hair how much money a month does that free up in payments
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
High 700s. Yeah, high 700s. Think how much you can live off that. You can invest some of that. Like that really does clear things up for you. Now, then once we pay off this debt, now we have to look at, okay, like you said, long-term, what's the retirement strategy? But A1 is we've got to get out of this debt because if we've got this kind of debt, who cares what the retirement strategy is?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Yeah. So I think that I think paying these off is going to be your best bet and it's going to be painful. But then we have to turn around and say, OK, what's your living situation? Are you a buyer? Are you a renter? What's going on there?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
You rent. Okay. So your goals are to try to find stability in this situation. So right now, the debt is causing instability. Probably being a renter is causing a level of instability. My guess is that when you retire, you'd probably want to buy something and have that as a fixed number on your budget. So I think those are the big goals here. I think in your mind, you have to go, okay, I'm working.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
I'm working another six years or so, and I'm...
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
piling away as much cash as i possibly can um to try to make that happen but first on the list is these student loans and you know making sure that you and your kids are sticking to what you agreed to pay because are they sticking to their end of the bargain yeah as far as i know we don't talk about it much but i think you do need to talk about it because what would be are both of their names on it or just yours
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
It's just my name. Okay, because if they don't pay theirs, then it's still affecting you, right? And at that point, it's like, well, what was the point of you even paying your part if they're not paying their part, right?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Oh, okay. I thought you were saying that they had agreed to pay part of the Parent PLUS loans.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
Okay, I see. Well, in that case, yeah, full speed ahead on paying off this $87,000, clearing your name on that. It's going to free up so much more income in your month-to-month mental space. You're going to have a lot more peace. And then you can really see clearly and go, okay, what to do with this $40,000? The good news is it's tucked away. It's going to continue to grow.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
It's not a lot of growth, but with that, with possible Social Security issues, You've got your work cut out for you, but at least you're making steps forward. In a situation like this, there's always a measure of peace that can be acquired. So you're going from where you are now. You pay these loans off. You've got even more peace.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
You start figuring out long term what you want your living situation to be. You've got even more peace. And so we're just taking it one piece at a time.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
I went from that. Real quick, Sarah, tell me, where did you used to live? Where did you travel from and where do you live now?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
So you're in Georgia. It's just you and these kids. There's no other family. You mentioned your mom passed. No.
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
And how many of the kids have special needs?
The Ramsey Show
Math Is Important but Behavior Change Is What Matters
$847 a month. Now, is there a way to get out of that? Because that's going to be a revolt. Like, you're going to be in that forever if we don't get out of it now. And that's a lot of money.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
OK, after that, you go to baby step four. You could do three B and four at the same time if you want to. You're putting 15 percent of your gross income into retirement funds. So that's your 401k Roth IRA, that sort of thing. Then after that, if you have kids, you're planning for kids, you can put an amount of your discretion towards kids college. We say a 529 or an ESA is where you would do that.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
And then finally, baby step six, if you have extra money in your budget, again, at your discretion, you're throwing extra money towards paying off your house early. Most people who do that pay off their house in like 10, 12 years. So that's, and then finally baby step seven, you just live like no one else. You give your happy person and you got no cares. Right.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
So that's kind of the big cars with cash. Hey, okay.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Yeah. Tell us about it.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Paint us a picture.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
I can't hear anything.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
That's painful. Yeah, you've got to get out today.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Here's what I want you to do. What a life. Here's what I want you to do. I want you to apply that $9,200 to get out of debt. I want you to quickly save up what you can to get out of this car. Buy something cheap in cash. It's only temporary. You're going to be out of debt in a year, and then you're going to save up and you're going to buy the same car in cash.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
I know, that's right.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Hey, what's up guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now,
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
i recommend contacting my friends at laurel road today through their online application you can get an initial rate quote in less than five minutes and if you have a more complex situation you can schedule 30 minutes to talk to an actual human being thank goodness laurel road makes it simple there are no fees involved and you could save thousands over the life of your loan remember
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
If you want them gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Are you working on them? Everything is everything, Ken. It's all signed, sealed, delivered.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
I've gathered up all of my documents, 1099s, whatever they all are.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
And I gave them to Sam.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
That was good. Thank you. You need a gold chain. All I want to do is go on my bank sites or my investing sites and print off the little tax form and turn it in. I don't want to turn in a bunch of stuff.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Well, I also don't want to go to jail.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
I don't know, Ken. You might do too well.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
You're a fine-looking gentleman walking into the precinct.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Interesting. So tell us a little bit more about the situation, because what I tend to find is that if people are considering debt to solve a problem, it's usually the symptom of other issues that are playing out over time. So give me a bigger profile on this. Are you guys currently in debt? Tell me about your income. Tell me more about your financial situation.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Have you gotten a second opinion or is that one guy told you that?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Are you sure about that or have you really done due diligence? Because unless you live, you know, in Mayberry, I feel like there's at least got to be more than one person, right?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay. I'm not convinced. I think you need a second opinion. But for now, so you've got $18,000 that you're thinking it's going to cost. Do you have any money saved anywhere?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay, $1,000 in savings. And then tell me about your income. What do you and your wife bring in combined every single month?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay. Here we are. Okay. So if I'm you, my first, like I said, first on my agenda is I'm getting somebody else just to come out and tell me. I just want to confirm what it is. Then the second part of this, and I will admit I'm not an HVAC professional, but if I understand right, it's, if you didn't know, now you know. I was wondering at times.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
It's divided into the heating side and the cooling side, right?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Is there a way, are you replacing the whole like dat gum thing, like the whole thing?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Yeah, I think the coolant will buy you some time. Because the truth is it hasn't broken down yet, but I like that you're thinking towards it because the time will come and it's going to be here probably before you know it. So my goal would be, okay, I'm going to get with my wife. I'm going to figure out how quickly we can save up half of...
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
and then find out how long and that that way we know how long it would take to do the other half and then i'd find a guy and say here's what i have i can pay you this and then at this point and i can pay you this at this point to get this job done maybe you do the right side first and then you do the left side or you do the hot side first then you do the cold side and really get creative because if there really is only one guy then he probably needs your business as much as you need him so get creative on it and i'm looking around my house for things to sell
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
period i'm like okay do i need this do i not need that maybe i'm picking up just temporarily like a second job because the reason for all this because i do want to address this because plenty of people are probably like jay that's too much just take out the the the loan from your house i would never do that the purpose when we talk about home ownership here on ramsey the purpose of home ownership there's several reasons but the ones that stand out to me are a it's stability
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Right. We're taking the biggest line item on our budget and we're stabilizing it by getting into a home. Right. Where the payment's the same. We start to put that stability at risk when we borrow against our home. So that's number one. Number two is one of the biggest reasons to buy a home is to build equity and wealth. Right.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
And so when we borrow against it, we're stealing from the wealth that we're accumulating because the truth is when it's time to sell our house. We want that cash. We don't want to look up and be like, man, my cash is gone because I bought a new water heater and my cash is gone because I over-renovated a room that's not going to return its value on me, right? So those are the two reasons.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
We want stability. We want wealth. So let's not rob ourselves of those two really, really important factors in home ownership. So that's why I'm pretty adamant about not doing that. Just a little background thoughts there.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Go on Reddit. Go on Reddit. I bet you there's a whole Reddit.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Good. Is it just you, or do you have a family?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay, so you've got some support. I'm glad that you've got that. I hate that you're going through it, but I'm glad that you've got a good support system around you because you'll need that. So you asked about saving money or investing. Can you break that down for me? What's the money for? What are you thinking about here?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
You're almost there. Not bad. Not bad. What are you earning right now? Every month or every year?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
So, yeah, you know, if I were in your shoes, I probably – my biggest goal right now would just be stacking up a bunch of cash. Yeah. And I just throw it in –
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
you know high yield savings account and have it there so that if something pops up if there's a treatment i want to do and i have to pay out of pocket because it's out of network like do you see what i'm saying so my goal would be stacking up money so that i can use it for health opportunities or for you know other things that pop up and then when you're done on the other side of this and you whooped cancer's butt then you can take that money and say all right what's the next thing
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay. But, you know, things do pop up.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay, good. Did you say you are investing or you paused that?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
I mean, technically speaking, I mean, again, this is not for me to say that you need to be dealing with this right now because I don't necessarily think that you do. Technically speaking, with the amount of the HELOC, I'd count that as a baby step two item and say, hey, I'd pay that off first and I'd call it baby step two.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
And for that reason, you would pause investing so more money can go towards paying that $22,000 off fast. And then once you were done with that, I'd, you know, start investing again. But that's for later.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Again, I think your biggest focus right now is getting well and knowing that, you know, you've got some money stashed aside and you have a piece about that because like I said, you never know what trials might come up that maybe insurance doesn't cover, but you want to jump into one, that sort of thing.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
How old's your daughter? She's 26.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
How many hours a week? How many hours a week did you do that?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
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The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
When you separate your living situation, like we said, you're still dating, then take that time to start figuring out what it would look like if you're there. I don't know if you are, but if you are there, if we were to be married, what would it look like? What are... what do we see for each other? What are gender roles? What do you think a man's role is? What do you think a woman's role is?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Like you guys talk about that stuff because you did get a little glimpse of, you thought you could come home and pop open a beer and watch the game. And she said, no, no, no, no, no. There's dishes in the kitchen. So you guys have to talk about that and arrive at what that means for both of you.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
And of course, if you do get married, go through marriage counseling and go through Financial Peace University.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
whoever doesn't cook does the dishes oh really so if you cook like me i rarely do the dishes it's usually sam that does them and that's a fair exchange yeah now every once in a while if i really feel like the meal how can i put it like if it really was a lot of dishes and the meal was just like why were there so many dishes i'll help them out a little bit yeah
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
You put them in the dishwasher or you wash them by hand?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Well, I have certain dishes that I don't put in the dishwasher. Well, of course.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Do you complain about it or you don't mind doing it?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
You've got to have the kitchen. The counter's got to be wiped off. Floor's got to be swept.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
So it's called Front Row C. Do the math for us. I like that.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Love that. I feel like that's a great way to describe it because for someone like me, I know exactly what I'm about to get.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Forever house. Wow. Yeah.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay, so what that tells us, that's a great, I'm glad you said that because a lot of people are into like acorns and saving the change and all that. And while I could understand that something's better than nothing. if you adopt that kind of as your way of thinking around investing, you won't get very far. So I like that you're thinking towards this.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Listen, I love that your house is paid off, but I do, at 40, I do want you to have more invested and I want you to start working towards that. Typically, the way we would have taught it is that while you're paying off your home, you would still have been investing 15% of your income. But, you know, Spilled milk, we move on.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
So what I would say at this point for you is, yeah, you are able to invest 15% and beyond because your house is paid off and you don't have any other debt, correct?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay, so $30,000 as a HELOC. Yeah, I would focus in. I'd get that paid off lickety-split, like immediately. And then I would invest 15% and beyond. When you look at your monthly budget, how much do you think that you could put towards investing percentage-wise and still enjoy the life that you've set up for yourself?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay. Yeah. So you'd be putting $2,600 every... Okay. And is that kind of maximum for you or do you think there's even more? And what percentage is that?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
So what would 15% be for you? If you invested 15% of gross income, what number would that be?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay. But we want the number before taxes.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay, so do you have that? Is that available to you in your budget?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay, so what I'm getting at is that $3,400, $3,500, that's the baseline for you of investing, right? And since your house is paid off, you could go beyond that and you should go beyond that. And I would in this case, I would probably start there before I'd go to real estate and I'd build up a pretty decent nest egg. And then when you start feeling like, OK, like. I'm doing well.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Ken, you're not done yet.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Then if you wanted to also save up and buy a piece of real estate in cash, you could. But that's kind of what I'm doing now is just kind of the math to see where you would end up. So I put in the six thousand that you already have saved. And I thought, OK, he's 40 years old. Maybe he, you know, retires by the time he's 62.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
If you put that thirty four hundred aside every month, that's three point two million.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
I love this question. And I'm glad you asked it. Yeah. We're not talking about day trading at all. So if I were you, and this is what the advice I'd give to anybody. So the first place I'd start is with my 401k. Do you have a 401k through your job?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay. Yeah. RESPs. Do you guys get matches for that? Is there a company match?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay. So if there's no, and I understand there's differences in US and Canada. So what we would say here is if you have a 401k or an RESP that has a match, you'd start there because it's free money. But if there is no match, then here in the States, we have basically a Roth IRA, which is, you know, money that's already taxed.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
you know, you're paying taxes on the money, then it's going, you're going and investing that money so that when you pull it out later, you've already paid taxes on it. So we like anything here that has a Roth treatment. So the Canadian version of that, I'm not sure what it is, but I'd go for that and max it out yearly.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
And then after I've maxed that out, if there's still money, I'd go back to that RESP and fill that out. I don't know what the max is for Canada, but I try to max it out. And if you can do those two things, you're really going to be well off.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okie doke. Today's question comes from Taylor in Alabama. They say, I started an entry-level job at a bank six months ago. I'm 19 years old and it pays about $35,000 a year. I was recently offered a higher paying job at a different company, but I plan to go to college in the fall.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
I'm scared that future employers will not hire me if I only stay at the bank or another company for a few months before heading off to school. Would you recommend that I go after a new job or should I stay at my current job to avoid future employers thinking I'm a job hopper? Neither of the job options are related to my chosen career path. Ken Coleman, you're up.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
What constitutes a job hopper?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Like three or four.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
That's right. And then somebody might say, don't hate the player, hate the game. And you're saying, but in this case, the game ain't helping you out.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Yeah, tell us what the problem is, because I'm like, $1,200 makes it tick. I can't assume there's much debt in the situation, but tell me otherwise.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Yeah, if not more, yeah. Okay, and you said the income changed. What was it before? Was it ever a good idea?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
I want it to let me, tell me the tea, spill it.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
So tell me, before you move on, so that house, what do you owe on it, and what's it worth, barring the fixed foundation?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay. Okay. Yeah. Yes. And no, you and I's definition of profit is different because you've got a lot of money sunk into it. Um, okay. Got it. So you've got this one house. If you fix the foundation, it's worth 1.1. Yes. You haven't fixed it yet. Are you in the process of it or tell me more about that?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
So tell us, list out your debt if you have it, or list out the things that are keeping you, aside from your job, keeping you from hitting your next money goal.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay. Have you done the research on if you were to sell it as is? I mean, I know you said certain realtors wouldn't touch it, but I'm sure certain realtors would. What would that look like as far as the value? Well, we...
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
That doesn't feel like a giveaway. That's not a giveaway. That's you just less the value of getting it fixed.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay, but that's not on the next buyer. You chose that, right? Yeah, I just mean in order not to take... For you to not take the hit, yeah. So I think you might end up eating...
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
eating a big loss on this house you might i mean yeah if you can carry it and get this foundation fixed in cash then i but i would not take out more debt to fix this house so there's that can i ask really quick how far away are these two houses the one you're living in now versus the one how far a state away oh boy six hours oh yeah and you said there's also 150 in solar that's a separate loan
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Yeah. Okay. And they're state away.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Tell me, tell me about your current house because this may be your way out of all of this, your current house. What, what, what's, what do you owe on it and what's it worth?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Yeah, you're probably right.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
So that's not an option. Like selling that for profit is not an option for you right now, which I wondered if it would be. Yeah, if I were you.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Yeah, the only thing is I don't want you adding more loss to this in the form of $30,000 in fees. So I'd hang out for a little while in this home, if you can, to get right side up on it, if you can make it.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
That's the only way. The good news is you are... getting some money from rent on this just to pay the mortgage but i it's a hot potato i'm gonna try to get out of this as quickly as i can before it burns your hand oh this is a tough one i feel for you you had to go with hot potato for people living in phoenix you had to go with the burn yeah it's hot it is this is the ramsey show
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Yeah, because they've hardly been in it.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Yeah, we kind of ran up against time. But then during the break, Ken, you and I, my colleague, Ken Coleman.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
He's like, you know what? Really, what you guys need to do, if you can attack the 30,000, that would be your loss for selling this house. That might be the way to go. Yeah. Then at least you can go rent. We established that they can rent for half the amount. So that gets them back into the 25% range, which is good. So if I were them, Ken, I would be looking for maybe cars to sell.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Are they like monkeys and they throw stuff, you know, they throw the stuff at it or are they like attacking it with their beak?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
They sound like they're off the line now, but they seem like the kind that might have a couple of cars and you're driving just beaters for now, but just something to gain some sort of... pecuniary advantage here.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
That's right. At least they're going to free up way more. They're going to free up money. Yeah. And they're not going to feel the weight of all that debt. Two mortgages, solar panels.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay. So the $50,000 is all credit cards?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
And you mentioned you had a house with your ex. Is this ex-girlfriend, ex-wife?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
It's only in your name, okay. And what do you owe on that house?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay. And what's it worth? Just curious.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay. And can you tell me what percentage of your take home? Is it in the right spot or is it too much? What are you paying every month?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay, so we're, again, we're in a similar situation as our last call. Very similar. This is way, way more house than you can afford. Is that why you're calling? Because this thing is eating your lunch?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
It sounds like you bought a house that you couldn't afford because at the time you're thinking, hey, she'll pay half, I'll pay half. We have two incomes, we can afford this. Which, I mean, you're not alone. Many people enter into things like that. The danger is, like you saw, if the relationship folds...
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
There's nobody else on the debt that can be on the hook for that unless you find yourself a roommate to bide you some time. And even that, I would only suggest that if you know your income is going up here in the near future. Is your income going up in the near future?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
my guy you just you just oh boy all right so what are you doing to me wait a minute we gotta call this out are you meaning to tell me that you're gonna put yourself back in the same situation that you just were in that you're calling here about well i think it was more on my responsibility i think i you know after the breakup i started spending money like it was nothing going on trips
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
But you want to know what it makes me feel like? And I'm just, I'm like Andre 3000. I'm just being honest. I feel like this is very convenient for you to just let somebody else up and move in.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
But now this is... Then it's still weird because you just have somebody living off you, and you don't want that type of lady.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
No. Step one is you've got to learn how to operate your living facility on your own. That's step one. And that's just you. Like Richard, learning to take care of Richard.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
That's what I'm saying.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Yeah. He doesn't have the money because he's at 50%.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Richard, here's step one if I'm you. Step one is you got to get out of this house. You can't afford it. You had a plan before. It didn't work. And it didn't work because honestly, it just wasn't a good plan. You didn't know it then, but you know it now. Lesson learned. This house is too expensive.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
If I were you, it'd be on the market as soon as I've got it cleaned up and can take good photos of it. Sell it and get into something that's no more than 25% of your take home. Nobody else's added income because it's just you right now.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
You at least want somebody who's going to do their part.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
I think that's the deal. If I'm – I don't think the standard changes. If I'm a lady, which I am, I'm looking for a guy who can take care of himself. He can pay his own rent, pay for his own car, pay his bills, da-da-da. And if I'm a guy, I think you'd be looking for the same thing in a lady. Someone who can take care of herself, not just live off of folks.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
This call just went down a road.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Nothing wrong with that. 50-50.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
And stop moving in with these ladies.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Who cares? You're broke.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
No, I don't want to hold him over. We're good. Be careful. He's got to sell the truck.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
And you want to help her with the debt?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Sorry, that got me. Really nice guy.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
You used her card? You used her card sometimes?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Does it change your opinion? I'm going to say something really controversial right now.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
She probably rode in your car lots of times. Does she need to help you pay off your car? I'm not making her do that.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Your credit card debt, you may have paid for some things for her. I think what it sounded like, I don't know, but you said she got away. It sounds like you're still recovering from this.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
You still care for her. You might feel some guilt. Obviously, you still care for her, but I would not feel any obligation to pay $50,000 to an ex. Is she asking for money?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Do you want to know what I think? Do you want to know what I might think as your older sister who cares for you? Okay. This is like when you go on a date with somebody. I think this was from Seinfeld, and he would leave something in her apartment on purpose so he would have a reason to come back and knock on the door.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
I feel like this is a reason for you to come back and knock on the door.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
If you could dedicate a song to her right now, what would you dedicate?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
30% rate? I thought you said 3% when you first said it. It's 30%.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
No, because your initial question, I'm sorry, I got hung up on your love situation. The initial question was, do I really want him to go down to $1,000 of an emergency fund?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Yeah, that is where to start. So let me just go through the baby steps with you right quick, Sam, just so you see how this all fits. And how long have you been listening to the show? Are you a new listener?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Oh, okay. So you only get bits and pieces on that. Thanks for watching. But you only get bits and pieces. So the first step, this is seven baby steps for you to achieve financial peace is what we're talking about. So you do them, all of that I'm saying, you do them consecutively in order. That's the first thing. You got to do them in order.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
If you jump around, it won't work and you'll be wasting your time. The first step is you get $1,000 saved. So if you don't have any money saved, you got to go out, work, sell stuff and get it done. If you do have money saved, you drop it down to $1,000. And then the next whatever money you had left over is going to go to baby step two, which is you paying off all of your debt except your mortgage.
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
This is all the consumer debt. Okay. And you do this using the debt snowball method. Debt snowball is we list all the debts, smallest to largest. You pay minimum payments on everything. And then any extra money goes to the smallest debt. Does that make sense?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
Okay. After that, now we stack up that emergency fund. Three to six months of expenses is what we're looking for. You get to decide, is it three, four, five, or six?
The Ramsey Show
You Need To “Happen” to Your Life Instead if It Happening to You
That's right. And it's it for baby step three. It's really about your basic budget. It's not three to six months of paychecks necessarily. It's what it takes to make your house go on a basic level. OK, baby step three B, it's B because it's not the case for everybody is if you're looking to buy a house. Now is when we start saving up a down payment for the house.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Alrighty then. Today's question comes from Ashley in Illinois. She says, my husband and I will be debt free in about three years, house and everything. Congratulations. The house we currently live in is the house that he lived in with his ex-wife. I would like to get a place that is new to us that we can create our life together. Is it stupid to get a mortgage when we are debt free?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
That's a very good question. The simple answer is no, it's not bad. It's not the worst thing. You could definitely do worse. And the reason that you're wanting to do this, I understand it. I just wonder if you go ahead and you are debt-free within this three-year timeframe, I wonder what the market will be like.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
And if there's something that you can just simply say, we're moving from one house to another, you may not have to go into debt
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
uh or if it's a small amount i'm not mad at it um i just think that you're really gonna love the feeling of being free and so when that time comes you're gonna step very lightly you're probably gonna be very lenient on the amount that you would be willing to borrow and i think that that's a good thing um Yeah, to answer your question, it's not stupid. It's not bad or evil.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
We just don't like debt. So if you have the ability to do something in cash, I think that that's a great thing. But I definitely wouldn't go crazy on this.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Yeah, they might be able to get something.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
That's good. Dave, listen, you're not wrong.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
They might be willing to consider that because she hasn't felt that freedom of no mortgage yet.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
I want out of her house and I also want into another nicer, better house.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
But even moving up in-house... There are two different questions. There are two different questions. But even if she just simply said it like that, I personally still would be like, listen, if you told me you were taking on... At that point, it's like, hey, Jade, we're moving up in-house. It's going to cause us to take on a $100,000 mortgage.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Then my question would be like, well, how quickly could you save to get that done? You have no house payment. So when you put it like that and go rent for two years. Exactly. When you put it that way, it's like, well, it's a small mortgage. Then if it's a small mortgage, you could probably pay cash for it just as quickly. So.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
You ain't going back. I know that's right.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
You just want to go up in car. Yeah. That's interesting.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
That's the other question of this. I'm like, listen, if your plan was to go into debt for a mortgage anyway, then why are you waiting three years until you pay this thing off?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Hi, how's it going? Thanks for taking my call. Sure, man. How can we help? Hey, so I've got some good news, and I've paid off a lot of debt. But I want to talk to you about the emotional side. The guilt is still there. So, yeah, so we had some major medical bills and some home repairs. found ourselves over $100,000 in debt.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
We decided we didn't want to pay the minimums anymore, so we paid off a third, settled a third, and then when my 99-year-old grandma passed away, we got a little money. So with the exception of our mortgage, my wife's two loans and a very small car payment, which we're going to pay off early, we are out of debt. Okay.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
And just still, even if we budget for it, a big purchase, it still feels uncomfortable. Or if you're going to the kids' activities and you run out of time and you're swimming by McDonald's and you feel the occasional purchases, it still feels guilty.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Yes. Yes, it just still feels weird.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Do you feel bad that you didn't pay? Is it because you didn't use your earned money, per se, to pay off all the debt?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
It's more a mixture of, I guess, I'm afraid to go back. And then, you know, I've really drastically increased my income. And so I feel a little like, you know, people who are having a harder time. And then the other part of the guilt is, so we have a three-year-old and a five-year-old. Um, and, um, because of the medical stuff and because it just, it was just easier with my wife being home.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Um, we, when she's home, we meal plan better. We, we save more money because we don't need out. We don't save money because my three-year-old would have to go to daycare. We save more money that way. But anytime you go visit family, friends, anything, it's the first, when she goes back and it's like, well, I've increased my income. I think we'll be okay.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
I know it's in my head. And I guess what I'm trying to say is how do I get, we're doing fine, but how do I get all that voices out of my head? I assume that once you cut off the debt, it still takes a little bit before you feel that relief.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Listen, I'll, I'll be honest with you. Uh, my husband and I paid off a big amount of debt and immediately you're like, yes, this debt's gone. But you do feel the residual effects of that throughout like your day to day life. For me, it's, I would go to the grocery store. My armpits would still sweat when it was time to swipe my card. Um,
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
still to this day, I have to stop myself from checking my account to make sure the money's there. So there is that part of it that your body is just used to a certain response when it gets in those familiar circumstances. And I do think that that starts to fade over time. I think the best thing for me, one of the best anecdotes for this has been the budget and just
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
going over it and saying okay i planned for this and and reminding myself that i'm still doing all of the things that cause me to be a financially responsible adult i'm still doing my investing i am still you know planning for the future i'm still being generous like when i tell myself jade you're checking all the boxes this is okay then it kind of causes my heartbeat all the boxes are checked checked including taking my wife out to a 300 dinner okay
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
well i'm not talking about i'm talking like oh i'm you know i'm talking about that maybe i think this woman needs somebody to take her to dinner sounds like and sometimes to dave's point to dave's point i do think you need to bust through those barriers a little bit and remind yourself why you did this why did i pay off this debt there's a so that to it and the so that wasn't so that you could be at home and and fretting about every small purchase that wasn't the so that right
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
I have a couple of guesses. My guess is it involves diamonds.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Yeah, it's not because of these Pokemon cards. That was just the final straw.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
So what went on before this? What were the straws before this? How have you been behaving?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Did you tell her any part of this? And she said, don't do it. And you did it anyway, or you just kind of did it all.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
I say that because you sound like you're working through this mentally. At least it sounds like it in this very short call. Has she said anything to the effect of, here's what I need to see in order to stay with you? Or has she just said, that's it?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
And be proactive about making sure there's no place for mistrust to live. So you're sharing all the account passwords. You're putting the pin. You're sharing your location on your phone. I always say make it to where there's no foothold for that to even get in, and that way there's no questions.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
It does sound like that. It does sound like that. But, you know, time will tell.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
I mean, I'm just telling you, if I woke up in your shoes today, I would do that in two seconds. It's a very small part of your world.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Yeah. I mean, for me, that doesn't change it much. What you're talking about is how far in the future. You know what I'm saying? So for me, I mean, if it really made you feel that weird, you could say, well, I'm going to I'm going to spend twelve hundred dollars on this and then I'm going to add an extra twelve hundred dollars to my seat.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Like you could balance it in a weird way to make your brain feel better. And I think when you do that, you'll realize, oh, this wasn't that big of a it wasn't that big of a deal.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Yeah. Are you concerned that when you have this baby, your wife's not going to want to go back to work after leave?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
I'm impressed that you sniffed that out as quickly as you did.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
But kudos to you for thinking in the way of generosity like that. I love things like that. It's the reason that you go through and do the baby steps so that you can do those sorts of things. So really good.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
That was pretty impressive. I'm not going to lie. I'm impressed.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Yeah, that might. I'd want to attack that very quickly. That's on your list.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
How long have you had the debt with a friend?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
And how long will it take you to pay off the first few things in your snowball, those few credit cards?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Have you been paying the friend, or you haven't been paying the friend? We have been, yes. Okay.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
If it makes you feel better, just tell them, hey, we're doing this debt snowball and we list them smallest to largest. You're number four and our plan is to pay you off this year and so that we're not running this thing out.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Yeah. Okay, that is our hope. And then just go ahead.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
It's a math thing. Yeah. Hey, run the math out. Have you done the math on this to see what your projected date is? Because if you haven't, you need to jump in every dollar. You need to do your roadmap so that you know.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Okay, then that is the accountability there. And just from somebody who's been in your shoes, you need to speak that way. Because if you run everything, if you... verbalize everything as if it might happen, it might not, then chances are it might not happen. So you need to verbalize it in the way of, well, we'll be done with that in April.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
And then when we're done with this one in January, do you see what I'm saying? You need to use that and let that be your vocabulary because that's going to inform what you actually do to accomplish this goal.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
the real world is uh almost always you will get out of debt faster than your first plan you lay out thinks you're going to 100 that is so true i you know i remember because some people know that some people don't but i used to listen to the show long before i ever got to work on the show And I remember you used to say, Dave, when you start working the plan intensely, you get on a moving sidewalk.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
It's like at the airport when you go and you can either walk normal or get on that little sidewalk and it makes you walk a little bit faster. That is so, so true. I think you just open yourself up to opportunities when you say, I'm going to go lightning fast. I'm willing to do whatever work it takes. Then you begin to see the opportunities around you to go faster.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Who wants to do it my way, yeah.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
That's right. But what I was saying to you on the break, and this really does segue into every dollar, is most people have never said, I am going to do insert specific task and I'm going to do it in this time frame, insert specific time frame. And this is going to be the exact outcome.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
And once you do that for the first time and a lot of people for the first time they do that, it's when they do their every dollar budget and when they pay off their debt. Once you do that, it creates a confidence on the inside of you that, oh, I can actually say something. Do it. And hold myself accountable. That is, it breaks open a whole new world of possibility and confidence in yourself.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
That's right. Because you can look at it and go, am I accomplishing what I said I was accomplishing? And so, yeah, let's get into it.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
that reminds me of that same um way of thinking with rental cars i feel like it's the same thing you know i just came i was leaving where was i leaving denver and i wanted to rent the car and then drop it at another airport and they said you cannot do that if you don't have a credit card and i said what's that got to do with it because of the theft yeah there's a there's entire gangs
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
That's what the guy was telling me.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Yeah, for some reason, if you pick it up and drop it off at the same location, it's fine.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Let me ask you a question because I'm researching this exact thing. There was something that when you first heard the baby steps, you had an emotion that caused you to say, I'm not going to do it exactly like they teach. I'm going to do it my way. Casey, you had an emotion that caused you to say, this guy, this is not a baby step.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
This is, you know, for adults, whatever you thought, what was that emotion that caused you to initially kind of back away from it?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Was it fear? Was it... It seemed insurmountable.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
And what about you, Jessie? What was it that caused you to say, I'm going to do it my way? This sounds good, but I'm still going to do it my way.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
No one would do that, by the way, if they understood that.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
And they're where you were, Casey. They're going, this is not as easy as you think it is. Jesse, they're saying, I'll do it, but I'll do it my way. What would you say to that person?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
What caused you to wait the five years as opposed to rolling it over?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
So when do they, a guy like Andrew, if somebody said, I'm interested, let's say they had built up a certain amount of cash value. When would a guy like Andrew say, here's the right time to get at that money? So, you know, it's all a risk game, but so that you can get it before you die.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
And then at that point, why get it to begin with?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
So what have you said to her? What have you said to her so far about it? What have you told her so far?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
And I'm saying, what have you told her about this? Have you told her anything?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Well, it's you're her kid. That's strand one.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Yes, and then you've not been in the type of relationship that she's been in. At least that's the way she's going to view it, which is true. So you're fighting a current 100%. Let me tell you what.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
And you're going to have to accept the fact that she's going to do, you could lay out the best argument in the world, like perfectly just eloquent, everything makes sense, and she could still go and make this choice, and it's going to be bad for her.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
And you're going to have to just learn how to live with that and accept the fact that she's a grown woman and she's making a bad mistake and there's nothing, in many ways, there's nothing you can do about it. And I think that that's the hardest part of being in a relationship with anyone that you really care about is they get to choose.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Well, the guy probably thinks, if this is a, I'm going to say in air quotes, a good guy, this guy probably thinks he's offering your mom the world. So maybe somebody needs to get in his ear and make him see, hey, we like you. We think that you're probably trying to take care of our mom, but can you do this the right way?
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Because this way, the way that you're doing it now makes us nervous because if for some reason it doesn't work out, she's on her butt, right? So maybe that's the way to go at this is if there's somebody that has the right relationship to talk to him, if he is really the good guy that you guys say he is, that should give him a light bulb moment to go, oh, I get it. Yeah.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
I think my mom just needs a reality check, too.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Well, I was going to say, there's no balance of power in this relationship. She sells everything she has. There's no way in the world she could live in a house probably that he lives in on her side. You know what I'm saying? She has no ability to keep up life.
The Ramsey Show
Building Wealth Starts With Setting Aggressive Goals
Yes. That's very, I don't want to say the word old, but.
The Ramsey Show
Skip the Scams, Build Real Wealth
Well, I'm thinking about oil and how everything goes back to oil. It's hard to do anything.
The Ramsey Show
Skip the Scams, Build Real Wealth
I think, Dave, what you said is exactly right. Unfortunately, we do live in a broken world and whatever you choose to focus on, there's gonna be a rabbit hole. I mean, if I say, Dave, who made that shirt? Where'd that come from? Was that- Ruh-roh, I got no idea. You know what I'm saying? Like you could pick anything and go down a deep rabbit hole.
The Ramsey Show
Skip the Scams, Build Real Wealth
And as people, we can't carry all of those burdens all the time. We're not intended to. And that's where my brain goes because there's a cause and probably a very meaningful cause underneath every stone that you turn if you go down deep enough. And I just think it's in a moment, what are you choosing to focus on? And I think like for him, if that has been a convicted area in his heart, go with it.
The Ramsey Show
Skip the Scams, Build Real Wealth
Was it really a scam or did he just lose? Like, did he get scammed by a scammer or he invested the money and he lost the investment?
The Ramsey Show
Skip the Scams, Build Real Wealth
There's not a choice at this point. Belly up, buddy. How's your health? Are you improving?
The Ramsey Show
Skip the Scams, Build Real Wealth
Can I ask you a question? And just be honest as much as you're willing to be. Do they have a reason that they're keeping these kids from you? No. Is there a real reason there? Like, did, were, did you go, were you an alcoholic? Did you, was there something there?
The Ramsey Show
Skip the Scams, Build Real Wealth
So there's allegations, there are allegations, but you're saying they're not true.
The Ramsey Show
Skip the Scams, Build Real Wealth
Do you know what I think is a deeper part of that is, hopefully I can articulate this in the way I'm thinking it. When you do something that's slow and steady and it's a day after day discipline, there is more confidence that you have to put in yourself versus somebody else who's promising you results quickly. I can just quickly put my confidence in them.
The Ramsey Show
Skip the Scams, Build Real Wealth
and they'll take care of it that plan will take care of it that drug will take care whatever that thing is that's the quick thing whereas the slow and steady almost always depends mostly on you you are the you're the thing that's showing up week after week month after month whether it's a training program or an investing slow and steady over time i don't feel confident in myself so i have to find someone else i can place my confidence i think that's what's at the core of that dave
The Ramsey Show
Skip the Scams, Build Real Wealth
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The Ramsey Show
Skip the Scams, Build Real Wealth
Yeah, and then TJ can then put more of his time into doing things that are making him money.
The Ramsey Show
Skip the Scams, Build Real Wealth
And you're trying for 50-50. That's all you want, 50-50.
The Ramsey Show
Skip the Scams, Build Real Wealth
All right. Today's question comes from Tarek in Washington, D.C. He says, I understand your advice that a house payment should be close to a quarter of your take home pay. However, if someone is a high income earner, say $20,000 a month, couldn't the percentage be higher? If the mortgage were 40%, that would still leave $12,000 a month for all other expenses.
The Ramsey Show
Skip the Scams, Build Real Wealth
Would a sliding scale be more applicable depending on income? You know, for this.
The Ramsey Show
Skip the Scams, Build Real Wealth
He wants to buy a bigger house. I mean, that's probably, Dave, there's probably a point where it does run out, right? Like when you're really just Dave Ramsey. I could see there.
The Ramsey Show
Skip the Scams, Build Real Wealth
But I mean, there could probably be a point where it doesn't hold as much water. But I think at that level that you're talking about, it still does. Because really, the way I think about it is all of these percentages as a whole. So if you say, OK, 25%, that's going to my mortgage. And then, yeah, you're going to need to be investing 15%, you know, into at least 15%, right, into mutual funds.
The Ramsey Show
Skip the Scams, Build Real Wealth
Then if we say, you know, generosity is important. So you're going to be needing to do 10% there. And let's just say, yeah, now you're in baby steps five and six too. So you've got kids college and maybe you're paying extra towards the house. That could be another 10%. So now we're at 60% and we really haven't even, we haven't gone on vacation. We haven't just been living life.
The Ramsey Show
Skip the Scams, Build Real Wealth
So you see that the money goes very quickly. And that for me is why 25%. is yeah, it makes it to where that house is a blessing and not a burden. And when you start creeping above that, you will find, especially depending on season of life, you will find that it's too tight to make everything work.
The Ramsey Show
Skip the Scams, Build Real Wealth
If you're trying to cash flow college, if you're trying to cash flow daycare, when you are out of whack in those areas, you will feel it very quickly. And that for me is a real-time example of that.
The Ramsey Show
Skip the Scams, Build Real Wealth
Yeah, because you're just looking at the numbers and you're going $12,000. I'll still have $12,000. That's a lot of money. But you're not thinking about all of the other things that you will need to do with that money.
The Ramsey Show
Skip the Scams, Build Real Wealth
Or buy the boat in cash after you've paid off the debt.
The Ramsey Show
Skip the Scams, Build Real Wealth
So let me ask you, you guys said, you said, we knew we wanted to do this. We didn't know what plan to follow. Then you found the baby steps or you found total money makeover. How did you find it and what made you go, this is the plan?
The Ramsey Show
Skip the Scams, Build Real Wealth
Do like a baby moon or something. That'd be great.
The Ramsey Show
Skip the Scams, Build Real Wealth
34 years old? Love it. I wouldn't know how to act.
The Ramsey Show
Skip the Scams, Build Real Wealth
Were they giving you some sort of like great deal or is it something that you could just take and go elsewhere?
The Ramsey Show
Skip the Scams, Build Real Wealth
That's right. It's still got to meet the right parameters so that you're not strapped, right? You've still got to be able to do this where that payment's no more than 25% of your take-home. And the truth is you've been used to $450 on rent, so you're really going to have to.
The Ramsey Show
Skip the Scams, Build Real Wealth
Yeah, you're really going to have to get in that budget and see what this means for you going forward. And, you know, good job on getting the bookkeeping thing. Make as much as you can doing that.
The Ramsey Show
Skip the Scams, Build Real Wealth
It feels like it's almost to the extent that it doesn't make you feel too uncomfortable. You're doing it. And that's the results.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Hey, what's up guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now, I recommend contacting my friends at Laurel Road today.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Through their online application, you can get an initial rate quote in less than five minutes. And if you have a more complex situation, you can schedule 30 minutes to talk to an actual human being. Thank goodness. Laurel Road makes it simple. There are no fees involved and you could save thousands over the life of your loan. Remember, You should only refinance if it makes sense in your situation.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt. If you want them gone, you can't mess around.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Hey friends, the first episode of 90 Day Money Makeover is available right now. This new series follows real people as they take on the challenge of transforming their finances and their lives in just 90 days. Watch as they navigate the highs and lows of this journey and as I walk alongside of them every step of the way. Okay, now here's a little sneak peek of what the new episode is all about.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
What's going on, Heather? I'm just, I'm tired of debt controlling me in all aspects of my life. She's got a lot going on. We've got to simplify it. She's got the farm, the divorce, the debt. We're just praying the money's there, I guess.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
Are you ready to commit to it? Are you going to do it? I need help. I'm done with it.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
My gosh, it's good to see you. Do I want to pet a chicken? No. I see you doing a lot that wasn't even part of the homework, and we're only at the 30-day point. I want to be out of debt.
The Ramsey Show
Your Life Is More Than Just a Set of Numbers
There's no guarantee that the bank would let her keep the house. I want you to start dreaming what another living situation might look like if it doesn't go your way.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Can I get a judge to force this sale? That sort of thing. And that, my friend, is where I hope this does not go.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
What kind of debt is this million?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
I think the problem was you put the ball in their court instead of saying, here's what we're going to do and here's what we need from you.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And I think Ken is right. If you let them know what your plan is, hey, we're going to take our cut of the money, and we found this neighborhood over here. We're going to purchase – and you let them see there's a way to go forward out of this, I think that will also help them get an idea as to what they can do. I don't know if their income situation is the same as yours.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
It's likely not, but at least – That is giving them an idea, OK, this is what we could do. And yeah, I think that you need to speak in no uncertain terms of saying, here's what we need. Here's what we need the timeline to be. Because here's what we're going to do. And here's what we want you to do.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Ken said it. He's right. Let your wife do the talking. Otherwise, I wouldn't want to be you is all I'm saying.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Because you both sound like very nice people, very reasonable people. For the listener, for the people listening, let you see that these are all good people with good intentions and no ill will. And still, it's an uncomfortable situation.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Oh, yeah. Get the hair in there.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Remember Clubber Lang? Oh, yeah. Rocky? Yes.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
You said it's on there a couple of different times under a couple of different names. Is that like different credit card names? Yeah.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
No, it's okay. You're saying it's the same amount, but it's listed in several different ways, and you're positive that they're not several different debts, I guess is what I'm getting at.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Okay. Does it look familiar at all? Or are you contesting that you even, is it fraudulent?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
How much are these contested bill? What you're being sued for?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Do you think it's a scam is what I'm asking?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
OK, well, let's let me. Terry, let me. I like you, Terry. I like you a lot. Let me level with you and give you a couple of steps here. First thing is, I think this is relatively new for you. You got the thing in the mail. It kind of, you know, made your stomach do a flip flop because it was scary. Right. But you really haven't done much due diligence on it yet.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
So I would call the number, you know, if there's a if it's telling you the court. Right. call the court separately from the number on the, you know, don't use the number that's on the, the sheet, Google the number, get the real number call and say, Hey, is there a docket for this? Is this really going on? Find out if it's real. Then if you know, Hey, this is, I did that. I did. I did.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And then, Terry, let me take it to the next level. Do you have the eighteen hundred dollars? No. What do you have? Can you get the eighteen hundred dollars?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Here's what I would, here's what I would do in your shoes. I would try to work until you get the actual court date. I'd work on piling up some money. And I would ask, is it too late to make a settlement? Here's what I have. I have $800, but it's all I have. I'm in debt. I'm trying to work my way out. I don't even know if this is really real.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
It could be fraudulent, but I'm tired of dealing with it. Can I just give you $800 and it be settled in full? So I try to make that deal and see if you can. It may be beyond that point, but it's likely not. So I would try that and say, hey, I didn't even know this was a thing. This is my first time hearing about it. If I had known it was a thing, I would have been happy to pay it.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
You know, that spilled milk. Can I can I please make a deal? Here's the money. I'm ready to give it to you today. And then I yeah, I would go into the emergency fund and I would knock this thing out and be done with it and make a deal. Yeah. For eight hundred dollars or seven hundred dollars or whatever they'll take. And that way, I just don't want you spending a lot of mental calories on this.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
It's eighteen hundred dollars, which is a lot of money. Don't get me wrong. But it's not something that I want you to lose sleep on for months on end, especially if it's money that you truly owe, which it kind of sounds like you do.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Did you know, is there anything else on the list, by the way, before we keep going through? So, so far we're at, we're not at a million yet.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
I have because James showed it to me.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
I'm glad you set it up because I kind of forgot about that, but that is an excellent reference.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
I had never seen it until James showed it to me. Oh, this is perfect.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
He had his $1,000 emergency fund. And my guess is, and we didn't ask him this, but my guess is he was feeling great about the fact that he was making some progress. He did every dollar. He had the emergency fund. He was working on his debt, which wasn't much, but he was making progress. And then this thing kind of rolled in and kind of set him back a little bit.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Yeah, because you can't play the audio, I don't think.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
You don't want to be Terry. Terry. Terry's been through some things. Back up, Terry.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
We'll be right back. I recommend contacting my friends at Laurel Road today. Through their online application, you can get an initial rate quote in less than five minutes. And if you have a more complex situation, you can schedule 30 minutes to talk to an actual human being. Thank goodness. Laurel Road makes it simple.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
There are no fees involved and you could save thousands over the life of your loan. Remember... You should only refinance if it makes sense in your situation.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from your student loan debt. If you want it gone, you can't mess around.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Do you have any idea what it was being spent on or it's just kind of that cloud of businesses?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And is there any record of that? Like, did you guys other than just talking about it in the kitchen?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
My guess is that, how long has it been since you filed the divorce? Two weeks. Oh, okay. My guess is that, I mean, they're probably going to look at this and split it down the middle based on how long you guys have been married and based on... And that your name's on these things. Yeah, your name is on it. Now, I do, I hate this is happening.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Yeah, last ditch effort on that one. I just think there's too many opportunities that can very eloquently laid out for you.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
You figured out what will help them learn this, and then you came up with a solution for how they would best learn it. And you would do the same thing with adults. You would say, how will they best learn this? That's right. And then you'll come up with a solution on how that will happen.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
But there's a part of this where you do have to it's like he did these things, but you also have to own your part in it, which is, you know, he has an office building. How do we think it got there? You know, there's all these things cropping up. How do we think that we're paying for him? And, you know, here on the show, we're always teaching how money is just it is a joint thing.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
My final word is I want you to do a vocab rehab. I hear a lot of you saying things where it was just this and I just did this. I want you to start talking about what you do as a profession with a lot of power and a lot of authority. You're You're a person who's good at their job. They're great at what they do. And I want you to sound like it and stop kind of selling yourself short.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Like you've got a lot to offer and anybody would be great to have you.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
I don't want to say venture because it makes it sound business, but it is this thing that we both work together. We're both plugged in. We both are dialed in as to what's going on. It can't just be he handles that. I handle this. Everybody's got to have their brain on and looking at this because really this is what happens when you don't. So I'm realizing.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Well, it sounds like you're in it now. Serenity, you bought the flights and you bought the hotel.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Oh man. So now you're going to be at the restaurant just eating the chips and drinking water. Is what you're saying.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
It's so messed up. It's so... Listen, I feel as though... Can I just, Serenity, give me a moment to just rant for a minute? Because I'm sure you're bestie, like she's your friend and everything like that. But I do feel like it can be a little tone deaf to have these big bachelorette trips. If you're already in the dat gum wedding, you already have to get a dress or a tuxedo.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And then don't let it be a destination wedding.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
You're not in the wedding at all?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Correct. But how much did you spend on the flight and hotels so far?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
So what's the prequel? Well, I mean, while I'm getting to it, do you have debt? Clearly this is bothering you. Is it because you have other financial goals and this is really just sticking in your craw?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
I don't think it's too late to not go. She can't get refunded. Here's the thing. If I spend it, I'm going to spend it. Usually with the hotel, if you go back, as long as it's more than 24 hours notice, usually you can get that back.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
You can have $400 worth of fun or bachelorette activities.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
What are the activities? Are you allowed to tell us or does it involve... Oh, I like this even more.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
You're not the only one feeling this is what we're saying.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
This is where you call up the friend that whenever something happens, y'all just look at each other like this. You don't even have to say anything.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
You call up that friend and say, are you thinking what I'm thinking? I ain't spending $40, girl. Exactly.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Just that. Just that, girl. Have you looked at this menu? Because I am not the one. I am not going. How can we make this work? You and me, let's get together because I'm only trying to spend $400. That's how we're doing this.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Don't tell her to tell a lie now, Ken. Come on now.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Not to you, Ken. I would never do that to you.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Oh, yeah. But I like the idea. Yeah, you get together with the other bestie, the other one of you that's not in the wedding, and y'all make it happen. Because guaranteed, stuff like this, we think we're isolated. We think we're the only one. And I promise you. Somebody else is feeling like you're feeling.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
I am not selling my stuff to go to your wedding. Period.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Ken, you're trying to please too many people out here.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Yeah, that's good. I mean, I think you're a great sister for pointing her in the right direction.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And I want to make sure it sticks with pointing her in the right direction versus kind of what you said of tell me what to do and I'll just do it, especially when it comes to the investing part, because that's the part where we do want to have more of a hands on approach and making sure that she's really understanding it for herself versus my sister told me to open this up and put my money right here.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And so I'm just going to do that because the truth is, You know, being in the market can have volatility and we don't know what her sense is going to be around that. And so if she has a day where she sees her investments go down, I don't want her to look at you and go, you told me to put my money here. And now, you know, the stock market's had a down day. Right.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
We want her to make sure we want to make sure she understands it. So. Let's go back to just the basics of what you're telling her, which is, yeah, you're right. If she's self-employed, a Roth IRA would be a wonderful place to start. And if she finds that she's able to fund that fully and still has money to go out of her 15%, then she could sit down and set up some other types of funds.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Maybe she does a SEP. Maybe she does something else, an individual 401k, something like that. Okay. That's where she would go with that. But what's important is that she's learning what this all is and what this all means. Right. Because you can tell her, hey, invest your money across four different types. That's what we would say. You know, growth and income, aggressive growth, international.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And you could go through all that stuff with her. But if she doesn't understand it again, it's just her taking your advice and not doing her own due diligence. So. Do you think that you have a grasp, enough of a grasp to really teach her? Or what do you think?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
So what I do is if I were in your shoes, I would get Financial Peace University. Matter of fact, we'll gift it to you. And I'd sit down and I'd watch the investing lessons with her. And I'd watch it one one night, like in the week or whatever, pop popcorn, do whatever. And then I'd go back and watch it again because it takes some time to get it in there.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And then if she feels confident, like, hey, let's look into these Roth options. Then it's like, OK, now we're looking at it. We're seeing what it is and we're kind of. putting the teaching together with like practically actually doing it. And if there's still any question on what do I pick, then it's like, okay, let's go to smart fester pro.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Let's sit down with them and let's see if they can help teach it because I just don't want her to do it because big sister said do it. Yeah.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
No, you're doing great. You're teaching her the philosophy, right? You're teaching her the baby steps. You're teaching her kind of like that overarching thing. But yeah, for the details, make sure she gets that advice from a deeper source and make sure that she's understanding it and not, like I said, not just doing it because it was said to do.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Hey, if I were you, I hate to cut you off, but we're against the clock. If I were you, to get better settled on this, I'd probably clear that rental and take the profits and pay off the debt as much as you can.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And I would never go into debt again. You can't afford to. Right now is the time to continue to build up that retirement account. And yeah, stay out of debt. That's my best advice to you at this point. I'm sorry for your loss.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
You'll probably split the debt in some form or fashion. Okay. You'll probably split the assets in some form or fashion. Hopefully it's fair for both parties. And it sounds like there's going to be enough assets for you to clear your debt And still have a decent amount of money. My guess is something's going to happen with this house.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Okay. Today's question comes from Alexis in Mississippi. She says, I'm a stay at home mom with two children. My husband earns about $55,000 a year. We owe $65,000 on our house and that's our only debt. It seems like we're stuck though. And I would love to get some guidance on how we can move forward on the baby steps. Neither of us have a retirement plan.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
My goal is to pay off the house as soon as possible, but I know investing in our future is also important. So how do we do both? Great question. Hey, congratulations on being debt-free except your mortgage. I think for a lot of people, that's the biggest hurdle, right, Ken? So the fact that you're over that or maybe you never dealt with it to begin with is a major win.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
So really, it's just walking the baby steps up. So you've already done... baby steps one and two, essentially, which is you get a thousand dollars saved for baby step one, baby step two is you pay off all of your consumer debt, right? Everything except the mortgage. So essentially now you're on baby step three, which is when you're stacking up three to six months of expenses.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
You didn't mention in the question that you had that. So I'm assuming that you need that. So three to six months of, Ken, what I would say, kind of like your bare bones budget, like you don't need your bells and whistles budget. That's going to take you a long time to do. And we want to get you to that investing step. So, yeah, three to six months.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
I base that, Alexis, off of a couple of things because a lot of people ask, should I do three months or six months? And it really does matter, Ken, about a couple of things. A, what's your health like? You know, are you a person that Is in and out, is there a possibility that you might not work? You go bouts where you're not working.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
So that's going to play into whether you want three or six months. You look at, are both spouses out earning income? If you're a stay-at-home mom, that'd be another good reason to go for six months. So these are the sorts of things that I'm looking at when I'm determining that. In my world, Ken, I just like six months, period. Honestly.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
You're probably going to sell it and split the profits is usually what I suggest, especially if there's not kids living at home, that kind of thing. And then, yeah, whatever debt you're on the hook for, you'll take that money and pay off that debt. And you'll likely have enough money to go out and probably buy another house outright, depending on what you choose.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And I think probably what you're feeling and Ken touched on it, you know, at $55,000 a year, if that's the gross, what you're taking home, you know, once you've put the 15% away, it doesn't leave a whole lot to do all the things you want to do in your budget. Plus put what feels like a substantial amount extra right on the mortgage. Plus you've got to think about kids college.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
So Ken is exactly right there. Nothing takes away from the 15%. We got to do that. And Ken is right. If you can find a way to supplement your income so that it feels like you're putting more on the mortgage, that's a good deal.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Well, so far, everybody's job is like that. So, so far, it's not too funky. So keep going.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And you'll ride off into the sunset. And like you said, you will have learned many, many lessons out of this.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Yeah, no, I would not do that because then you're making some sort of assumption that once this career path is over, you'll never make money again and you'll never make, quote, this kind of money again. And that's absolutely not true. If anything, I would follow the baby steps as they're written because You are going to retire one day and compound interest is your friend and time is your friend.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
So take advantage of this time frame that you have and start investing now because, well, in a month when you're done with baby step three. But you know what I'm saying? So that you can have that time for that compound interest to compound. And in the meantime, like you said, if you know there's kind of a seven year stretch for you, that's the time to start thinking, how can I reinvent myself?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
What's next for me? What does this look like?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Maybe he's like a, I don't know.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
I'd go to a monster truck rally.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
The different move is everything is 100. Like we're keeping everything above board. We're talking about it. And anything that you have questions about, you're saying out loud. You have something to bring to the table. He has something to bring to the table. No one gets to just, quote, handle it. You know what I mean? Yeah.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Well, I have a couple of questions. What baby step are you on now? Are you back in debt?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
What about, okay. Yeah, I can understand that because it feels like something was lost here because you've always been able to do it. What happened? Okay. I understand that. What about your housing? Are you a renter? Do you own your house? I'm renting. Okay. OK, so my guess is this is just a guess. You can tell me if I'm wrong.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
My guess is you were doing this process, which is a fairly intense process. Catherine, you've been doing this for a long time. And at one point you had something more to show for it. And right now you're feeling like, man, in many ways, I'm starting at the beginning. And that's very daunting. Right. It's daunting to have to start. And push play again and go, OK, here we go again.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And I think that's probably what you're up against more so than, like Ken said, the dotting of the I's and crossing of the T's. Is that fair enough?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Yeah, I think, yeah, there's a philosophical answer and then there's just kind of like the basic answer of if you want the results, you just kind of got to do it right. There's the bite, the bullet part of it. But I find that what makes it easier is, figuring out why do you want to do this? What is the clear reason? And it can't just be vanity at this point.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
The vanity reason is because I want to lose 10 pounds and I want my jeans to fit better. But a deeper reason is more of a life and death thing where it's like, hey, I'm going to retire at one point and I don't want to retire with nothing. My doctor says my cholesterol is high and I'm And anything could throw me into a catastrophic event heart wise. Right.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Those are the things that make us go, holy crap, like I got to get moving. And so you might have to have one of those moments where you go in the mirror and you just look at yourself and say, I'm how old are you, Catherine?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
You look at yourself and go, man, I'm 46 years old. If I don't get on the ball, here's what will be. And you get real and you list those things out. Here's what I have in retirement. And I'm glad that I've made it this far, but I'm not done yet. I have to keep going. And that's kind of like, I mean, Catherine, I'm not telling you anything I haven't said to myself yet.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And so I'm just relaying that message. And then you get you start getting practical. You start putting those sticky notes on the on the window of, you know, on your mirror every morning of what it is that you need to stay focused of. So that why is in front of you. Yes. And it's probably has something to do with your daughter.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Yeah, it is. It's just so duplicitous to be... Oh, word of the day by Jade Warshaw, folks.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And it probably has something to do with how you view yourself after your working years are over.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
You know, you should feel at least like it's something that I know how to do this in at least 90 days. You might not ever love it, but you'll be proficient in it in 90 days.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
You think you know a guy. Oh, boy.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
I put $5,000 in your lap. I said it right here. Ken Coleman, what are you doing?
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
That's all right. I put you on the spot.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Listen, I'm already a little concerned because you're speaking in abouts. So that lets me know this is not written down anywhere. There was nothing.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
Okay, so you owe $220,000. It's worth $550,000. They don't have the money to buy you out, and they probably don't have the financial status to keep this loan anyway, right? Is what you're telling me.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
So what I would do, there's a couple of ways you can look at this. Sorry. There's a couple of ways you can look at this. You can go to them if you haven't already and sit down and say, Hey, this has been a seven year run and it's been good, but I don't think any of us intended for this to be forever. At least I, we didn't intend that.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And if we didn't communicate that we are sorry, that is our, you know, and try to put some of the onus on you on this, um, that you, you should have done a better job communicating that you didn't want this to be forever. Um, Also, try to be really understanding. Hey, I get it.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
It feels like it's not the best time to be buying a house where neither of us are likely going to get the interest rate we had before. And that is a loss. I hate that. I'm sure you guys hate that, too. Right. So you're setting this up in a way that is really just aware of the facts is really what it is. And then you're saying, here's what my wife and I would like to do.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
We're going to move out and we need to have access to our portion of that money, which means that you're going to have to move out as well. And this is the part where I would be very direct about what is going to happen and then let them say their piece.
The Ramsey Show
You Can Make Progress Even When It Feels Impossible
And hopefully it goes swimmingly and you guys can set a timeline and say, OK, here's a timeline, six months, da, da, da, da, da, and keep going from there. If for some reason that's not the case, then this is where and I pray it doesn't go to this point. But this when you might have to get a lawyer involved and say, OK, I did this thing with my family. I want to sell. They're not selling.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
where I kind of am willing to play the game a little bit is in cases like yours, where it's like, listen, we never had debt. We never went through a season where we were really sacrificing to win. We never needed to. And I say kudos to you for that. But in those situations, that's the time where I'm like, listen, if you want to get a little bit more intense to do it, I'm not mad at it.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
I don't think the means that you stated earlier was the way to do that. But, um, It would have been one thing to me if your wife was like, listen, man, we just spent three years, you know, in the trenches. I want to take a break. But in this case, you really didn't.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
And if you wanted to get more intense along with your intentionality, I don't think that's necessarily a bad thing when you haven't gone through that baby step two situation.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
It is. It is. And I think it's worth that conversation because, yeah, when Sam and I, after we spent seven and a half years paying off our debt, we're weary, right, at that point.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
I've tried a couple of times to go really hard on something, and Sam's like, I need you to calm down. Yeah. He's out there, he's like, yes. I see him too. He's like, I need you to calm down, Jade. And it's true. Even if you've done an intense two-year battle, right? And I think that's why the baby steps are the way they are because we need a break. We need a breather to live and enjoy life.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
You made these hats? Yeah. Yeah. All for that moment. Yeah. How funny is that? This originated with Sam Warshaw. He was like, we need to get Sam a standing on business hat. We need to get Ken a standing on business hat.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
That's right. But you got to pull that out when it's time.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Oh, man. So these are retirement funds. It's not just money that's invested in a brokerage, correct? I believe so. Okay.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Okay, how much is from the business though? I'm just curious.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
The debt. They're all credit cards. All of it's all 150s on credit cards?
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Seven. And then you said you have personal loans open too. Is that included in the 150 or is that, what is that?
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Okay. So your thought is like, Hey, we use these personal loans to pay down the credit card to clear up more space so we can borrow more on the credit card. Exactly.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Yeah, we want to know. Total debt. Tell us about your cars, your student loans, anything that you owe money towards that you make a monthly payment towards, we want to know about it. So go ahead and tell me your mortgage. I'm just curious. What do you owe on it?
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
So split up the debt for us. Whose is whose? Mm-hmm.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Okay, and how much, but that personal loan is included in the $150,000 you told me earlier? Yes. Okay. Tell me, when you guys get your paychecks, like after everything's taken out, what do you take home every month? What's your check look like, both of you combined?
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Stop Letting Excuses Steal Your Wealth
Well, I think that's I mean, jumping off with with Ken's point could be a good place to start. You know, the only way to get out of debt is there's two methods you could invoke here. You could work more right to have more margin. You could also cut back on your budget to find more margin or you can do a combination of both.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
And to Ken's point, that school might be a great place to start because I don't know what you were going to say as far as like I don't want them to learn certain things. It might be some of the same feelings that I have and my kid is in private school, but for right now, it's okay. Or in there in daycare and for right now, it's okay.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
So it might be worth it for you to invoke that when they get a little bit older. Could be that it's your kid.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Get in there. You might have to put your hat on.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
I mean, at the end of the day, what matters most is what you teach them at home. Yeah. But again, we're, I know we're really getting into your personal life.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
It's a lot for where you're at right now. It is a lot. We just want to highlight that. It is a lot. Um, next thing is I'm looking at possibly both of these cars. I want to know about how you can get out of this lease. When is this lease over?
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Stop Letting Excuses Steal Your Wealth
like very soon i would say like four months okay and then your option you just turn the car in and you're out yeah okay so i would do that don't try to buy back the car nothing like that just get out of the lease um and in the meantime do you have any money saved uh no everything is gone okay then what i'd be doing knowing that this lease is about to come up i'd be like we got to stack up three thousand dollars because when this lease goes away we need to be able to buy a car in cash
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
And that's kind of the car plan. So write that down in your notebook as when we turn in this lease in three months, in three months we'll also be buying a $3,000 to $4,000 car. I know you have the margin in your budget to do that. Okay, so that deals with one car. Let's talk about the $19,000 car. Do you know what that car is worth? The payment was kind of high, didn't you say it was like $700?
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Stop Letting Excuses Steal Your Wealth
All right. Like, I love the fact that you guys are looking at this debt and you see that it's an issue. I think that's a green light. That's a plus. I would not use the retirement to pay this off. The retirement is there as retirement. If you pull it out now, you will be penalized for it. You'll pay taxes on it and you'll have to pay a fee because you're pulling it out before 59 and a half.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Okay, do you know what it's worth now? I don't. Okay. That's your second piece of car homework. I want you to go on kellybluebook.com, look at private sale, because it sounds like if you bought it at 50 and judging by the height of your payment, I feel like you've been paying this off kind of fast. Am I wrong?
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Okay, so you might not be upside down. And if you're not, I would still get out of this and get into something cheaper because a $700 payment, you need that money. And so now we've just found $1,100 in your budget with these cars. And you need every dime of that to go towards paying off this credit card debt. The good news is, I mean, you guys have a good income.
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Stop Letting Excuses Steal Your Wealth
It's not wonderful for LA, but it's wonderful for the rest of the country.
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Stop Letting Excuses Steal Your Wealth
uh she needs a little pep talk as we go into the break here because mindset wise what does she got to be thinking right now you've got to be thinking the hard part is you're making a good income and to not be living in that income feels like oh man i've been working hard but the time will come when you do get to do that so just hold on if you clean up this mess you're going to enjoy your income like you never have before
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Stop Letting Excuses Steal Your Wealth
Right now, you've kind of faux enjoyed it with all these things on payments, and it's not all it's cracked up to be. But if you walk through this journey, you're going to get to enjoy the fruit of $220,000 plus a year with no debt and payments. You can send your kid to the school that you want to, and you don't have the stress associated with it because you'll actually be able to afford it.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
So for that reason, I would not do that. At this point, even though the wedding is just around the corner, I would focus on you two paying down your individual debts with your individual income. And then when you do get married, you can come together and tackle this right now. Yeah. If I'm your your fiance, I would look into selling that truck. Do you know the numbers around it?
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Stop Letting Excuses Steal Your Wealth
Maybe. How many kids do you want? Maybe. She wants five.
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Stop Letting Excuses Steal Your Wealth
And what do you take home right now? Oh, $33,000.
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Stop Letting Excuses Steal Your Wealth
Do you know what he could sell it for a private sale?
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Stop Letting Excuses Steal Your Wealth
Yeah, and if I could save up that $1,000 or $2,000 really quick, plus another $2,000 or $3,000 just to get it junker, I would. Do either of you have money saved that's not retirement, even if it's just a couple of thousand or a couple hundred?
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Stop Letting Excuses Steal Your Wealth
Yeah, I want you to have a clear picture in your mind by the time you leave this call. Ken gave you the career piece. So let's talk about what it could look like. So you've got kind of a five-year play here, right? There's five years where both of you guys are in the workforce. During that time, you're getting your income up. It's 66 now.
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Stop Letting Excuses Steal Your Wealth
You know, by the time she takes the baton or you take the baton from her, hopefully you're carrying that on your own and more. Yeah. So the key here is the house. Like that is the key. That's the foundation of all of this. If you can set yourself up, you don't have any debt right now, right?
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Stop Letting Excuses Steal Your Wealth
If you can get into a house and you're already projecting saying, okay, this house, it can't be more than 25% of our take-home pay, my take-home pay, because you're going to be the only one working. So at this point, let's say you're making 66,000, right? You're carrying that on your own. Okay. Payment can't be any more than $1,200, right? That's the max.
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Stop Letting Excuses Steal Your Wealth
So now is the time to start saving towards that and making that happen, right? That you've got five years to make that happen. And then once you're in baby step four, you're saving, you're putting aside 15% of your income. That's $825 a month from now until the cows come home. I mean, if you just did that, on one salary with your kids, like you could retire with $5 million.
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Stop Letting Excuses Steal Your Wealth
So this is the picture that I wanna paint. You're creating stability by your home. And by the way, when you get that home, it's gotta be based on your income, not both of you together, just what yours is. That's gonna be the key to this. And then from then on, It's it's you guys making can how can I say this delicately?
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
A lot of times folks call in and the the childbirth has kind of taken over all other thought process.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
And it's like you just have to understand that kids are expensive and they're not getting any cheaper. So you guys might get to three babies and go.
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Stop Letting Excuses Steal Your Wealth
Yeah, you may look at the situation and go, okay, I haven't gotten quite to 66,000. I'm at 50,000. How does that play into this? And that's okay.
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Stop Letting Excuses Steal Your Wealth
help me pay off since it's the three of us uh our charges are on it um but i want to know what's the best way to go about it so the 18 000 isn't just your spending it's it's your parents spending as well yeah the three of us oh wow okay do you know who spent what is there any do you know who's on the hook for how much is there a spreadsheet um
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Stop Letting Excuses Steal Your Wealth
Okay. Can my first order of business would be for me to be taken off of it just from a credit perspective, just from a responsibility perspective. This is you doing damage control saying, Hey, the truth is, and I'm not saying you say this to her, but I'm saying this to you.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
The truth is they pulled this debt out in your name before you were of age to even be able to make the decision to say yes or no. That's the truth. 16 is not the time for you to be deciding if you should have credit card debt with your parents. The answer would be no, but you didn't know that. OK, so first order of business is mom and dad.
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Stop Letting Excuses Steal Your Wealth
I need you to take my name off of this and I want my name off of this. So that's numero uno. You do that tonight because the truth is, how old are you?
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Stop Letting Excuses Steal Your Wealth
Yeah, you're 26. And the truth is, one day you're going to want to do something that requires your credit score to be zero. And as long as this is around, your credit score can't go to zero. Right. Which is what we're trying to get to. So that needs to happen. And then after that, you can say, OK, let's look at the charges are let's look at what the charges are now.
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Stop Letting Excuses Steal Your Wealth
And let's go through and let's kind of itemize this thing. And I'm fine with you going, this was me. I will pay that. And this was not me. I will not pay that, right? Now, if we're trying to play a chess game here, it's really important that you get your name off of this thing first.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Yeah, they're pretty reasonable. Okay. Because if you start talking about what you're not going to pay, they may not want to take your name off it.
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Stop Letting Excuses Steal Your Wealth
I think that would be hard to do. I'd probably go back...
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Stop Letting Excuses Steal Your Wealth
I mean, yeah, you can do that. I know that's a dumb question, but I don't know how it works. My guess is probably three months of expenses is probably $18,000. Because they spent $5,000 just in November.
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Stop Letting Excuses Steal Your Wealth
So you could probably just pull up the past three or four month statements.
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Stop Letting Excuses Steal Your Wealth
The hard part is, you know, I would tell you, hey, like if for some reason you ask them to take you off and they give you a problem, you could contest it like with the with the credit bureaus and say, hey, I got this when I was a minor. The hard part now is you have been spending on it and it's kind of been you've okayed it from a certain perspective. So I really would.
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Stop Letting Excuses Steal Your Wealth
It's all going to melt down to how you have this conversation to get them to take you off. That's right.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
That's the part where I'm not exactly sure because you're not disputing it. You're not saying, hey, this never happened. It'd be one thing. That's why I said if you went to credit bureaus and said, hey, they did this when I was 16. I didn't give them consent. Yeah. Then it almost be a fraudulent and they take you off. And for you, it'd be like it never happened.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
It's important. So the key is for your credit score to go to zero, not necessarily to go up. So the truth is, if you've had any sort of debt that you were using and you paid off and you close it out, or in this case, you get it off of your credit report, It could impact your credit report.
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Stop Letting Excuses Steal Your Wealth
But over time, when you stop borrowing money and there's no open accounts on your credit, your credit score is going to go to zero. And so if that credit is the only debt you have, once your name is removed off of that over time, in a very short period of time, six months to a year, your credit score is going to roll to zero. And a zero credit score is just as good as a high credit score.
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Stop Letting Excuses Steal Your Wealth
OK, that's the one thing they don't teach you in school. They don't teach you on the Internet. They don't teach that because nobody benefits from that. But you know, company is making a bunch of money on that. But you OK, that's why they don't teach it. But it's absolutely true. So that's what we're working towards. Get this in the motion. Get it happening.
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Stop Letting Excuses Steal Your Wealth
Get your name off of it and don't borrow any more money. And you'll be good.
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Stop Letting Excuses Steal Your Wealth
And they've been paying into it since the 80s, basically.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Well, let's find out what's the rest. Tell me more about their financial setting, because the hope is that you can get to the point where you're self-insured. That's that's the hope is to get to that point. So tell me more about their finances aside from this this universal life. Do they have a nest egg? And if so, how much is that?
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Stop Letting Excuses Steal Your Wealth
OK, so one point five million. Do they have debt on them or are they cash? Paid for cash?
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Stop Letting Excuses Steal Your Wealth
Okay, so essentially paid for. So three homes worth $1.5 million. Do you know what their nest egg is that's in the stock market? Savings?
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Stop Letting Excuses Steal Your Wealth
Okay. So they're millionaires, they're doing fine. These, I mean, is the assumption that these homes are going to continue to go up in value they've been taken care of? Oh, yes. Okay. So there's worse things that could be going on here.
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Stop Letting Excuses Steal Your Wealth
I couldn't agree more. And instead of surrounding yourself with financial problems, I'll put that in quotes because going to school is a good thing, but the 20,000 that it will cost is a problem right now. Instead of surrounding yourself with more problems, it's really focusing on one thing at a time.
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Stop Letting Excuses Steal Your Wealth
The chances of them, you know, going out and getting a term life insurance policy for anything reasonable at this point, you said they're in their late 70s, it is not happening, right? So the best you can think through is, okay, if one of them were to have an event that was not paid for, if any of one of them were to go into assisted living, is there money to pay for it?
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Stop Letting Excuses Steal Your Wealth
And the other spouse, the remaining spouse, still have money to live off of. That's kind of the equation that you're doing in your head, right?
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Stop Letting Excuses Steal Your Wealth
Okay. So a couple of things that I would do for that to be more of the case. Of this $250,000 in cash, I would... want to invest some of that because I'd want it working for me. That's a big chunk of money that should be making. I mean, over the last three years, if that had been invested, the rate of return would have been unbelievable on that.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
But just even in a normal market, in a normal market, you're looking for at least a 10% annualized rate of return. That means if we look back on the track record over the course of five or six or 10 years, we're looking at 10% is that annualized percentages of return there.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
So that 250, if you can talk with them and say, here's the truth, and I didn't ask you this, I guess I should, are you sure that this is their only life insurance that they have? Or is there another policy or something else laying around?
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Stop Letting Excuses Steal Your Wealth
I think they're okay. Now, well, I mean, here's my thing.
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Stop Letting Excuses Steal Your Wealth
They've got 250 cash, but I'm always looking at what if one of them becomes very ill and they need assisted living or they need somebody living.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
That's that fund. That's the fund for that. Here's the thing. I don't know. What are they paying a month on this coverage? It's $100,000. What are they paying on it?
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Stop Letting Excuses Steal Your Wealth
It's a horrible product. They got nickel and dime to death on their own cash value. They're not... they're horrible products. And that's what we try to tell people. You pay into this thing for life. And at the end of the day, you have nothing to show for it. All they have is their a hundred thousand when they pass away, which I, you know, if, if they keep it around much, yeah.
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Stop Letting Excuses Steal Your Wealth
and saying, okay, out of the two issues, paying for school and the current debt, what's the biggest, most burning priority? And the truth is, it's the current debt that you have is the biggest priority. Because how old are you?
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Stop Letting Excuses Steal Your Wealth
If they keep it around and they're like, I'm happy to pay the $185 a quarter or whatever it is. you know, they're not getting rich off of this thing, which is what we've learned. And when they pass away, you're not getting rich off of it either is what it amounts to. And so, and here's the thing. If they had passed away, they wouldn't have gotten to keep the cash value anyway. That's the...
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Stop Letting Excuses Steal Your Wealth
that's the most ridiculous thing about this whole thing yeah so they're in it it's not it's a horrible product if they want to get out they can get out if they stay in it's not the end of the world they've got the money to pay for it and it's in in many ways i guess at this point it's better than nothing um because it's not overly expensive um monthly uh but that cash would there be a penalty for them to get out of it now if they say okay we don't want it anymore
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Yeah, ask about that. Ask and find out. At this point, I feel like they could probably surrender it with no issue, but just find out about that. And push for that. Push for that.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Well, that's because they don't want you to get out of it. They've gotten $48,000. They got answers.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Hanging tough. I like it. Yeah, I mean, there's no cash value. I can't imagine what they might...
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
charged to surrender this at this point um but check into it and and if if you want to lapse it let it lapse they're not going to get into anything else though at this point is what i'm saying and the good news is they have the money to self-insure but pushing on that 250 to get that invested i would do that if i were you and do you know will the premium keep going up and up and up so they get their fees say that again well the premiums on the whole life keep going up
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
And if there is a penalty at this point, it's like, who cares? Get out of the thing.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
They paid $48,000 into this, and they have $100,000 of coverage. That's terrible.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
It happens all the time. That's why we teach term life insurance is the best way to get it. With term life insurance, you're only paying for insurance. With all these other universal life and all these other, you're giving them extra money. for them to invest it for you at a horrible rate of return. It's loaded with fees. And at the end of the day, you end up with nothing.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
What these people have ended up with is so typical. And so your best bet, term life insurance, check out our friends at Zander Insurance. They will hook you up.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Yeah, you've got time. And if that's the one thing I want you and you to take away from what Ken and I are telling you, you have time. Yes, the debt is something that needs to be taken care of. But it's not to the point of doing something extreme and making a further mistake like taking out your retirement. And that's the thing, Ken, I think that people have to be careful of.
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Stop Letting Excuses Steal Your Wealth
And Dave would say it like this, you know, when you get desperate. Yeah. you know, you start getting stupid, right? And so you've got to be careful. Right now, you feel desperate. You're like, oh my gosh, look at all this debt. Don't turn around and do something stupid trying to solve for the desperate, okay?
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Stop Letting Excuses Steal Your Wealth
No, I think Ken is exactly right. And I think as much as you can, when you have this conversation, Ken is right. Tell her the way that you're feeling, but as much as you can, reiterate over and over and over again that you agree she should go to school. Yes, yes, good point. I agree. You should go to school. I agree. I do want you to become a PA. I agree. Your career is very important.
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Stop Letting Excuses Steal Your Wealth
I think whenever you're having a discussion like this, the person who's, I'll say their thing, the thing they want to do when their thing that they want to do is on the line. it can get defensive easily. Even if they're, you know, a person who doesn't want to argue, it's just easy to think like, what does this mean? Does this mean I can't go to PA school then?
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Stop Letting Excuses Steal Your Wealth
Does this mean I can't do my dream, right? So reiterating that over and over is going to be so important. And then saying, having ideas of here's what we can do. I was thinking, how can we make you go to school? Because I really want you to be able to go to school because it's important for you to become a PA. Here's how we could do it. cash and funded in cash, right?
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Stop Letting Excuses Steal Your Wealth
And so being able to talk about it like that, I think is going to be really important and Yeah, that's how you lay out.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Yeah, make sure they have Financial Peace University.
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Stop Letting Excuses Steal Your Wealth
That'll be good. And along with that, you'll have every dollar. We're just going to set you guys up. You're getting married. This is our newlywed gift to you. So you get Total Money Makeover. You get Financial Peace University. We'll give you every dollar premium for several months. You can hang out with that for a while.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
And yeah, I think if you can start having these conversations, maybe you start by not talking about PA school. Maybe you just start by saying, hey, what do we believe about debt? And you just have those conversations. How do we want to handle our money? And then this happens. The conversation about school comes up as a result of you guys talking about the other things.
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Stop Letting Excuses Steal Your Wealth
Man, it really is. Ken, do you ever listen to Jefferson Fisher? No.
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Stop Letting Excuses Steal Your Wealth
It's coming out soon. Oh, that's right. You did. Oh, man. All I could think of was him when I was thinking about this conversation because it's all about finding what you agree on and restating what you agree on so that it doesn't escalate.
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Stop Letting Excuses Steal Your Wealth
Yeah. Let's start there. Seek to understand. That's so good.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Yeah, you're not trying to convince them. You're not trying to bring them over to your side.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
I mean, I'm looking at this. Yeah, Ken is right. The truck gets out of the way. Your husband does that. He starts working on that today, right? Why not? You can take the $12,000. You pay off your car. How much is your car payment?
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Stop Letting Excuses Steal Your Wealth
Okay. So let me just run that back real quick. So you're saying she's like, Hey, we've got 400,000 in a money market. Let's just pull out the one 75 and pay off the house. That's what she wants to do. Correct.
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Stop Letting Excuses Steal Your Wealth
And you're saying you just want to use the interest as it accrues to pay off the house.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
You're breaking up a little bit. While Ken does that, my thought is just, it's kind of like ripping off the Band-Aid in a way. You take the money out, the $175,000, you pay off this mortgage, it frees up your payment right now, which how much is your payment right now?
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Stop Letting Excuses Steal Your Wealth
Okay, so immediately you free up $900. If you wanted to, you could invest that, or if you wanted to put it in a money market. I don't know why you have so much money in this money market, but I would invest that money, and then you're completely debt-free.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
And I love Dave Ramsey's take on this because he would say, hey, if you hate the feeling of being debt free and you're kicking yourself because you could have made some interest on the four and a half percent on your money market, you could always go back into debt and go back and do that plan. But I don't think you would.
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Stop Letting Excuses Steal Your Wealth
Okay, now you've got another $135,000 back in your month-to-month budget. What's his truck payment? 300. Oh, look at that. That's a big, big raise. Yeah, you're creeping up on 500 extra dollars every month. Then you take the rest, the other 8,000 that's left, you put it on your student loan. And that's how this works. And before you know it, you're going to be out of debt.
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Stop Letting Excuses Steal Your Wealth
So did you learn from that though? Well, I did.
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Stop Letting Excuses Steal Your Wealth
Yeah, I agree. I'm trying to formulate a clear thought here, which is as long as you're moving this money around, it's never going to work for you as well as it is if you park it in the stock market. I don't care if you park it in an index fund, but just putting it somewhere where it's having a better rate of return, especially if we're using interest as a basis for this argument.
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Stop Letting Excuses Steal Your Wealth
You know what I'm saying? If you took the $200,000 that will be left after you pay off the house and you moved that and got a 10% or 12% rate of return, I mean, then this whole thing is kind of like a moot point.
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Stop Letting Excuses Steal Your Wealth
Yeah, because what did we say? We said that you were trying to keep the interest. I'm just thinking about the math. You were trying to keep the interest, throw the interest off of this $400,000. What was that, $18,000 a year?
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Stop Letting Excuses Steal Your Wealth
But I'm like, if you paid off today, the difference is really, I mean, with the payment back, that's $11,000 a year. So really, we're saying keep the house around for six more years for $7,000 a year. is really the argument. And I'd say no to that.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
This $56,000 debt problem is going to be gone, I predict, in one year. Oh, 100%. And then come this time next year, you're gonna be paying for school and you're gonna be so much more peaceful. Imagine studying without debt, Kayla. Imagine taking your exams without thinking about making your car payments, right? That's what I'm talking about.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
All right. Today's question comes from Shelby in Idaho. She says, Now she has gotten herself in deep debt trying to flip houses and rent out Airbnbs and has started asking us for money. We've already given her several thousand dollars last month and we have heard from other relatives that she has started asking them for large amounts as well.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
My husband feels obligated to give her money because she saved his life and we know she'll be asking for more money again soon. How should we respond? Well, number one, guilt should never be a reason that we give. We should never give out of guilt. You give out of a cheerful heart and that's the number one principle right there.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Number two is if you have the abundance to give out of, you still have boundaries around it. It's not an unending well that's like, yes, more and more and more and more, right? You get to decide, okay, if we have the money to help a strange sister, What are our boundaries around that?
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
And it's okay for you to let her know, okay, we're willing to give you X amount of dollars, but this is the last time we're going to be able to do it because that's where our boundary is. And after that, you just hold up the boundary.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
So I want you to get there and make sure no matter what you do, you keep $1,000 set aside as your baby step one, baby emergency funds. You need that there in case something happens, but everything else needs to go to the debt.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Munion is money for anybody who is not in the know.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
I knew the time would come. See what kind of lid.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
And now whenever you're ready to go on one of your rants, I want you to put that hat on.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Can we clear the... We're not the same age though, Ken. No, you're younger than me.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
How long were you in Baby Step 2? I'm just curious. How long did it take you to pay off whatever consumer debt you had?
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
You know, it does bring up an interesting conversation. So obviously the way we teach the baby steps is baby steps one, two, three. Those are, you move intensely, right? That's gazelle intense. You're going fast. You're sacrificing. You're doing whatever it takes to get this debt paid off.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
But then when you move into baby steps four, five, and six, particularly when it's time to pay the house off, that's the time where we say, hey, you don't have to be intense anymore. It's really about being intentional and you're moving methodically and with intent toward paying off the house, right? It's not you sacrificing everything, right? But in cases where
The Ramsey Show
There’s No Fast Track to Financial Freedom
Okay. We got about two minutes. So get, get into it. Okay. All right.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Is this like a vacation house or will this be a rental? What will this be for you?
The Ramsey Show
There’s No Fast Track to Financial Freedom
That's one man's take. It's a tough one, but I got to go with George on this one. This is The Ramsey Show.
The Ramsey Show
There’s No Fast Track to Financial Freedom
You're listening to The Ramsey Show and it's that time again, tax season. And one of the best things you can do for your finances is to have a really, really good tax pro in your corner, someone that you can trust.
The Ramsey Show
There’s No Fast Track to Financial Freedom
They're going to help advise you on the best moves to make for your situation or for your small business, especially if you've had some big changes in your life this past year, you could really use a great tax pro. So If that's you, which it probably is, go to RamseySolutions.com slash TaxPro to find CPAs and enrolled agents that have been vetted by the Ramsey team. Don't put this off. Do this.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Wow. Listen, lucky ducky. That's wild. Lucky ducky. And I say that on purpose because I feel like this is sheer luck going on right now. And I only say that because a lot of the statistics show that day traders, I mean, statistically, it's like less than 5%.
The Ramsey Show
There’s No Fast Track to Financial Freedom
It's in your best interest. Pony up the cash. It's worth it. All right, George, let's get to the phone lines. By the way, I'm Jade Warshaw, joined by George Camel, but you knew that. Let's get to the phone lines. We've got Hayden, who's in Bowling Green, Kentucky. What's up, Hayden?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yes. Do you want to know what this is? This is a classic case. You do what is called the treat yourself budget, which is I budget for all of the things that are like necessities. Like I budget for my rent, my car payment, my groceries, you know, a couple of, you know, my cell phone bill. But everything else is up for grabs and you treat yourself.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And then next thing you know, you're like, where did all the money go? So does that sound about right?
The Ramsey Show
There’s No Fast Track to Financial Freedom
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 here with my good friend, George Camel. Good to have you here, bud.
The Ramsey Show
There’s No Fast Track to Financial Freedom
You know what? I find that gas station snacks is a big thing. That seems to be a high-ticket item here. I don't know what it is.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I don't go in the gas station to get food. There's two things that just shouldn't go together. I don't know. But anyway.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Oh, well, that might be where some of it's going, I would think. Here's what I think you need to do. Okay, so A, I used to budget just like that. I was definitely the treat yourself budgeter who wanted to use the rest on, like it's up for grabs. That's the way I felt about it.
The Ramsey Show
There’s No Fast Track to Financial Freedom
But the truth is when you treat your money like that, you'll look up 10 years from now and there's a lot of regret because you go, oh my gosh, so much money. passed through my hands and I was not a good steward of it. As a matter of fact, for most people, think about it. If during your working years, most people work 40 years, let's say you just make an average of $50,000 a year.
The Ramsey Show
There’s No Fast Track to Financial Freedom
That's over $2 million that's going to pass through your hands. And if you take this portion of it and you just go, oh, it's up for grabs. I don't know what happened to it. You can't really call yourself a good steward of your money. And chances are you won't be prepared when the time comes to retire or buy a house or any of those things that
The Ramsey Show
There’s No Fast Track to Financial Freedom
you know, we want to do to feel the success of our finances. So what I would suggest is a zero-based budget, which is a form of budgeting that utilizes every single penny. And I just want to kind of clear up because a lot of people feel like budgets are... Kind of restraining, right, Hayden? And I have a feeling that you feel that way.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Like you feel like a budget is something that's going to keep you from doing the things you want to do when really it's the exact opposite. Because if you were to do a zero-based budget, you'd not only be planning for those things like rent and car payments and keeping the lights on, but you'd also go through and say, wow, I have $1,900 of margin. What is it that I want to do?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Do I need to have $1,000 of savings? Do I need to build up a three to six months emergency fund? Is there debt I need to pay off? And if you've already accounted for those things, then you can say, okay, yeah, I want to spend a little bit on hunting and I want to spend a little bit on, I don't know, Wawa snacks. And so that's the beauty of this is you get to decide.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So let George and I help you decide. Do you have any debt?
The Ramsey Show
There’s No Fast Track to Financial Freedom
So that right there is a good indicator of what you should be using that margin for.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Okay, so that's another maybe $2,500 that you could put towards this debt. What George and I are getting at is, and this is what Dave Ramsey would say, your biggest wealth building tool is your income, right? And so good for you that you have $2,000 of margin every month. Bad for you that you have this debt because what are your payments on the truck and the boat combined?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah, I think that's good. But think about if you had that $1,300 back in your wallet plus the $2,000. That's a lot of money. And so if we can get these things sold or paid off, that's really where you're going to see the ultimate potential with that money. And then we'd be saying things like, hey, with this margin, you could be investing 15%.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And hey, you could be doing, do you see what I'm saying?
The Ramsey Show
There’s No Fast Track to Financial Freedom
They're wrong. Hey, if you have a paid-off vehicle, your insurance is going to be lower. If you have a used paid-off vehicle, your insurance is likely going to be lower than if you had something that's newer with payments. That's the truth.
The Ramsey Show
There’s No Fast Track to Financial Freedom
uh no they don't they don't get a say in you getting rid of that payment because you're the one who has to pay it hey the truth is with parents like they have they have the best of intentions but sometimes they they only know what they know and so a lot of times it's like they do it one way so they pass that way on to you and even though it's a good intention it's not necessarily the right answer or the best way to do it does that make sense
The Ramsey Show
There’s No Fast Track to Financial Freedom
And so I think from where you're sitting, you can just be like, OK, thanks. That's when you just do the smile and nod and you're like, OK. And then you go into your life and you do the thing that you know how to do in your own life.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So if George and I were in your shoes, yeah, that 30 grand, I'd keep it aside. Let's call that if you're selling this boat and if you're selling the truck or deciding to keep the truck.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah. I would definitely downsize this truck. I would not pay it off with what you're earning and what your life is. I'd downsize it. Yeah. This is the Ramsey show.
The Ramsey Show
There’s No Fast Track to Financial Freedom
You're listening to The Ramsey Show. Thanks for hanging out with us. I'm Jade Warshaw. Next to me, George Camel, taking calls all hour long about your life, your money. The number is 888-825-5225. This is a live show. So if you want to get in the conversation, all you have to do is call and we'll be there. All right. We've got Darren. He's in Minneapolis, Minnesota. What's going on, Darren?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Can I ask you what's, I mean, you sound like a guy, like you said, you've kind of listened and followed it and it's worked for you to do things the Ramsey way. What's causing you to change course and say, well, I want to borrow against a whole life policy?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Have you ever lived on your own before, Amir?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Okay, so I might differ with George only on timeline. I think it's a good idea to buy a house, but maybe not yet. If I were you, my first goal would be like, listen, I'm going to get out of this house, my parents' house, and I'm going to go rent for a while. And I'd probably park that $300,000 in an index fund.
The Ramsey Show
There’s No Fast Track to Financial Freedom
What's causing you to want to go different? Are you trying to just do more at once and go faster in your business?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah, people take out debt every day for businesses and some people do well and some people don't. I mean, that's just the truth. Somebody could pay cash for a business and that business could shut down, right? Like the way you're doing it is not necessarily going to cause you to be successful or to be a failure. However, when you do add that element of debt, you are adding an element of risk.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So if you were already likely to succeed, now you're stacking more chips against yourself. And if you were already likely to fail, then you're just going to fail harder. Does that make sense? Like that's the way that I see it. Really math and numbers kind of aside, I really just see it as adding risk. And do I need to add risk to an equation that was already working well for me?
The Ramsey Show
There’s No Fast Track to Financial Freedom
It was already building wealth for me. My answer would be no, I wouldn't do it.
The Ramsey Show
There’s No Fast Track to Financial Freedom
That's a very good point. That's very good. Yeah. Business is risky as it is. Why add more risk? That's all I'm saying.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Look at your projection and say, okay, do I want to be a homeowner in the next four years, in the next five years? Whatever that is, if it's five years or less, I'd probably... put it in a high yield savings account. But if it's more than five years, I might park a good portion of it, you know, just in some sort of index fund and just wait until you're ready to do something.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I mean, I just think about, let's say you've saved up. Let's play it on both ends. Let's say you've saved up, George, $60,000 and you're like, all right, I'm gonna go all in on this business idea. You feel that enough, like your own cash that you're kind of sliding those chips in the center to go, okay, I'm going all in on this.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Because yeah, you can do your business plan and do everything, but sometimes businesses fail. Like they don't perform the way you want and you will be out that money, that cash that you had.
The Ramsey Show
There’s No Fast Track to Financial Freedom
That's right. That's so true. That's so true. My son just started on commission in the house. He's six years old. And so it used to be you go to Target, we give him money if he wants Pokemon cards. But now he does his chores. And the first week, because his payday is on Saturday, the first week he said, oh, I don't want to get paid. Just hold on to it for me. Deferred comp.
The Ramsey Show
There’s No Fast Track to Financial Freedom
deferred comp he was afraid he'd spend it then after four weeks finally i was like listen like you you can be trusted with this money like you can give it save it spend it and so he got paid he got paid ten dollars for all of his chores and so he's just now he's like okay I'm going to go and I'm going to buy.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I think I'm going to buy Pokemon. First, he wanted to buy a fish tank. Then he wanted to buy Pokemon cards. He's like really thoughtful.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah. And it's true. It's such a small way of thinking of it. But now he's thinking of all the options he has. He's not just going in on the first idea he heard because it's like, what if I get this and I don't like it? I spent my money on it.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I will die on that hill too. I don't even con George. I've been on this life for so long. I don't even consider that. Like it doesn't even come into my brain as an option. Why would I do that to myself? All right. That does it for this hour. Thanks for hanging out with me, George. Thanks for everybody in the booth. We'll see you next hour. This is the Ramsey show.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I like George's idea of doing real estate. But if you do buy a vehicle because you need one, just buy something that's modest. Like I would not use this money as an excuse to inflate my lifestyle into such that's not real long term yet. If that makes sense. I think you'll be a successful guy. We just don't know if you're going to make $300,000 a year from here on out. Does that make sense?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Live from the Ramsey Network, it's The Ramsey Show, where we are taking calls about your life, your money. We're helping people build wealth, do work they love, and create amazing relationships. This is a live show, so if you want to get your call on the line, the number is 1-888-825-5225. I'm Jade Warshaw. Next to me is, let's just say, my favorite host, George Campbell.
The Ramsey Show
There’s No Fast Track to Financial Freedom
You're right. I do. You're all my favorites.
The Ramsey Show
There’s No Fast Track to Financial Freedom
That's right. It's always a good time with George Camel in the chair next to me.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Let's go to the phone lines. Morgan, Washington, D.C. is on the line. What's up, Morgan?
The Ramsey Show
There’s No Fast Track to Financial Freedom
It's exciting to talk to you, too. How can we help?
The Ramsey Show
There’s No Fast Track to Financial Freedom
So get the listeners up to speed for anyone who's not clear on what you mean by Trump's buyout. Tell everybody what that is.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And this is in response to you either being a remote worker or fully in office, correct?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Wow. So you drive in, stay for two days, two consecutive days and then go home.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So the issue then isn't that you don't want to work from the office. The issue is if you were to move, it would put your husband's job. He put him right. Okay.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So you're at one 90 when you said you can only do your type of lawyering there. What does that mean?
The Ramsey Show
There’s No Fast Track to Financial Freedom
What about your husband? What does he do and can he do it other places?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Okay, so his is the lesser of the two incomes. So just looking at this like pragmatically, just looking at the facts, it feels like his job would be easier to replace and it's less income to replace, whereas yours would be there's only one place to practice it and do what it is that you do and you make a higher income. So based off of those two thoughts, it feels like going to D.C. would be
The Ramsey Show
There’s No Fast Track to Financial Freedom
a better choice. What does he think about that?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Were you thinking that even before this Trump thing? Or did that just spark it up?
The Ramsey Show
There’s No Fast Track to Financial Freedom
That doesn't make me warm and fuzzy on the inside.
The Ramsey Show
There’s No Fast Track to Financial Freedom
What do you make outside of like, is this your full-time job?
The Ramsey Show
There’s No Fast Track to Financial Freedom
OK, so what I think that I think what will give you a lot of peace if you decide to stay where you're at and start your own thing and keep your husband's job on on on the line. I would do an every dollar budget. If you don't have it, we'll make sure you have it and really play out. What would your budget be on eighty five thousand?
The Ramsey Show
There’s No Fast Track to Financial Freedom
And maybe there is a little bit of gap there that you have to fill in and then you can come up with, OK, what's our plan going to be? Because we don't want to dip into emergency funds if we don't have to. Right. And then you can really put together a solid plan and there will be less question marks in this whole thing. I kind of like the idea of you stepping out on your own. Not going to lie.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I'm almost always going to vote that route, though.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah, it feels fortuitous that this happened to kind of get you thinking about your other options out there on your own, which is really very cool. That's kind of the same thing that happened to Sam and I during COVID. Everything shut down during COVID. And that's when I saw the email come through from Ramsey Solutions that said that they were hiring personalities.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Might as well at least consider it. Like I wasn't looking, but when a great offer comes and in her situation, her stepping on her own is a great offer. There's no real reason not to explore it further.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Okay. And what did you make when you did that?
The Ramsey Show
There’s No Fast Track to Financial Freedom
I love calling you my best friend and then you just look at me.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah. I'm glad that I could boost your self-esteem on this Monday. All right. This is The Ramsey Show.
The Ramsey Show
There’s No Fast Track to Financial Freedom
It was nice to invite you on today. That's a lie. Well... We're here to take calls. It's a live show. 888-825-5225 is how you get involved. I hope you do. Talking about your life, your money. Let's get right to the phone lines. We've got Amir in Irvine, California. What's up, Amir?
The Ramsey Show
There’s No Fast Track to Financial Freedom
You're listening to The Ramsey Show. I'm Jade Warshaw. Next to me, George Campbell. We're taking your calls, your life, your money, your relationships, your career, all of it, your budget. Yeah, that's a big one. All right, let's go straight to the phone lines. We've got Seth. He's in Portland, Oregon. What's going on, Seth?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Here's the thing. I'm all about you buying a car in cash. I would treat this money like the windfall that it is. And so in that case, if you wanted to take some of it and buy a car, I'm not mad at that. Do you have any debt? I'm hoping not.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So you're talking about taking the money out of your 401k at a penalty to do that?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Oh, no, I definitely wouldn't do that. Why are you feeling the rush? Tell us more.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yes. Yes. But you're taking I mean, I have not run the numbers on this, but you would be taking such a hit plus the penalty and that time that that amount of money over time, what it could have been versus you investing just your mortgage payment. Does that make sense? I'm thinking about that. Tell me, have you run like tell me about the numbers you've run or is this just a piece play?
The Ramsey Show
There’s No Fast Track to Financial Freedom
She's not thinking about opportunity costs of the growth of that money over time.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Um, yeah, 2014. What would you say, George? I'm fine with it.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Can I jump back real quick? Seth, you may have said this, but let's pretend that you did your deal and you took this money paid off your house. How much would you be investing every month at that point? Because I just want to line this up for you.
The Ramsey Show
There’s No Fast Track to Financial Freedom
OK, so let's just run this comparison side by side. If you were to keep the money where you have it and put fifteen hundred aside every month, you'd end up with around four point five million. Right.
The Ramsey Show
There’s No Fast Track to Financial Freedom
If you were in that account, if you were to drop it down to zero and just say, I'm going to invest three three thousand dollars for the next the same the same term, 10 years at the same rate of return, it would be two million two point two.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So I hope that kind of mathematically frames up the equation here.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Listen, he's trying to solve for peace. I get what he's trying to do, but it just was the wrong method. Thanks for the call. All right, let's see if we can take care of Chris in Boston real quick. Chris from Boston, Massachusetts. What's up?
The Ramsey Show
There’s No Fast Track to Financial Freedom
$350,000? So you would essentially use the... Would you use the whole inheritance to pay for it in cash?
The Ramsey Show
There’s No Fast Track to Financial Freedom
What's the rest of your financial snapshot? Do you have any debt?
The Ramsey Show
There’s No Fast Track to Financial Freedom
And do you have three to six months of expenses?
The Ramsey Show
There’s No Fast Track to Financial Freedom
OK, so just walking through the baby steps with this would be you paying off the debt first, clearing that out, stacking up three to six months. And then with this condo, I mean, you're going to be there's going to be some tax implications, I'm sure, on the growth. And when you pull that out and then let's see, there's probably going to be some fees. So you could get pretty darn close.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Two calls in a row where people are trying to buy their homes completely outright. I love that. To have no mortgage payment. Come on, speak to that, George.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Mic drop. Listen, I'm getting there, George. Let's go, Jake.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah, I agree with George. You're 18. You have a lot of time to build wealth. And this is a really, really great head start as long as you don't lose it in the next 150 days. Yeah, this car to me doesn't sound super inflated. It kind of just sounds like, I mean, it sounds like what it is. You were playing at the tables, you got lucky and you got a lot of extra cash on your hands.
The Ramsey Show
There’s No Fast Track to Financial Freedom
You're listening to The Ramsey Show. All right. Our Ramsey Show question of the day is brought to you by WhyRefi. WhyRefi refinances defaulted private student loans, which are different than federal student loans. WhyRefi refinances your defaulted private student loans, and they build a custom loan based on your ability to pay.
The Ramsey Show
There’s No Fast Track to Financial Freedom
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. Remember, it may not be available in all states.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah, a financial planner who's advising an annuity, that's a wolf in sheep's clothing, I feel like.
The Ramsey Show
There’s No Fast Track to Financial Freedom
But be really smart with it. And you're good to go.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah, I was going to say there's fees associated with that and the rate of return is so poor.
The Ramsey Show
There’s No Fast Track to Financial Freedom
But even over time, let's say, you know, obviously this year, the year before, those were just like really benchmark, like amazing years.
The Ramsey Show
There’s No Fast Track to Financial Freedom
But even over time, you're going to find that if you're invested over time, you're going to still be around 10 to 12% if you're invested in good mutual funds. So what's wrong with keeping it where it is? I'd be interested, George. She doesn't say how well their their performance has been in his current 401k.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And let's talk about this angle real quick because when I see this, and I don't know, I'm reading this into it. When I see this, I see a couple who's probably been married forever and they're facing a health crisis and it's scary. And it's easy to kind of panic and go, what do we need to do? And do this and do that. And it's quite possible that someone is taking advantage of that.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Oh, you need something to do? Here's what you do. You know what I mean? And so it's just a reminder that, And she did the right thing by asking the experts. But it's just a reminder that, you know, move slowly when you do when you're going to make big moves with your money.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Make sure you're seeking wise counsel, that you're not doing things out of fear and out of the circumstance in the moment, but you're really getting the right information.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Let's go to the phones. We've got Wade in Salt Lake City, Utah. What's up, Wade?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Okay. What is it? What do you have to give him for that to happen?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Is that the amount that your father requested, $40,000, or was that all you could give? How much did your father say he needed to close this deal?
The Ramsey Show
There’s No Fast Track to Financial Freedom
He's concerned that if they rack up debt for his medical, that it'll go against the House.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yes. This is The Ramsey Show. Best of luck to you, Wade.
The Ramsey Show
There’s No Fast Track to Financial Freedom
You're listening to The Ramsey Show. I'm Jade Warshaw. Next to me is George Camel, host of the George Camel YouTube channel. If you've never seen it, you ought to check it out. It's part of the Ramsey Network. If you didn't know, we do have a Ramsey Network app. It's the only place that you can get full episodes of shows like The Ramsey Show.
The Ramsey Show
There’s No Fast Track to Financial Freedom
You can download it for free using the link in the show notes or by searching Ramsey Network in your app store. That's how you get the third hour of the show. The full show is there, but if you want to listen to the third hour, you must download
The Ramsey Show
There’s No Fast Track to Financial Freedom
go into the app so if you're on the radio stay tuned after this hour but everyone else if you want to finish the show you'll have to go into the app all right into the unknown i was just thinking i knew you were and i considered it and then i was like those notes are high i'm actually shocked you didn't belt it out on radio into the unknown no i won't do it okay and the fcc just took us down i know they did all right reagan is in chattanooga tennessee what's up reagan
The Ramsey Show
There’s No Fast Track to Financial Freedom
That's awesome. So what are you going to school for?
The Ramsey Show
There’s No Fast Track to Financial Freedom
So what would you do? OK, so if you didn't go to school, it wouldn't be you doing a different career. It would just be you staying at home. What does your husband do?
The Ramsey Show
There’s No Fast Track to Financial Freedom
That's pretty awesome. My guy got lucky. It really is the equivalent, like you said, George, to going to Las Vegas. Somebody gets hot on the craps table. And listen, I am the one telling him to roll again because I just love Las Vegas. But truthfully, day trading, the stats are there. There's no arguing with that. For him, the good thing is it's not his money.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah, it's an emergency. Your husband needs to work more. You've got to work more. And I wish it were different because on the flip side of this, like if your husband was getting paid and his income was enough to sustain you, I would actually have asked you how much longer until you're done with school. Because part of me, if you're like, listen, I have this dream of getting this master's.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I want to be a teacher. There's seasons in life. And so you might want that education for later on after your kids are in high school and you want to go back to work. Right. So there's part of me that's like you have a really great deal now where they're paying and you're only paying a couple hundred dollars. If you could take advantage of that, I think that's a great thing.
The Ramsey Show
There’s No Fast Track to Financial Freedom
But to George's point, you guys can't eat. Like, there's no money coming in.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Obviously, whatever you're bringing in at night, thank you for your effort, but it's not causing you guys to make ends meet. You know what I'm saying?
The Ramsey Show
There’s No Fast Track to Financial Freedom
And it's crazy that he gets to keep 90% of it.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Let me just let me just poke a quick hole. I think you said your husband is bringing in thirty five hundred and you're bringing in two thousand. That would be enough to cover your bills.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I see. I see. Okay. Yeah. This is, is he working 40 hours doing whatever? Um, Not at the moment. Okay, he's got to start working 40 hours today. I'm talking about today.
The Ramsey Show
There’s No Fast Track to Financial Freedom
yeah it it's going to cost you guys and if he can't provide and you're going to go into debt to do this the answer is no yeah do you guys have debt now oh yeah okay how much debt what's the total debt load um total is about um like 110 okay and is that including your renters right Or do you own? Sorry, can you say that again? Are you renters or do you own? Yeah, no, we're renting an apartment.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Okay, so what kind of, that is the 110 real quick.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah. That's a weird thing about those student loans. The payments are low, but it's a boogeyman in the closet. And you feel the effects of it, even though you're not making that monthly payment and the piper wants to still be paid. Okay. So my advice is you've got to work, work, work and work some more. He's got to work and work some more.
The Ramsey Show
There’s No Fast Track to Financial Freedom
And yeah, I would try to work and go to school because you need a degree so that you can get this professor's job so that you can make some money. I don't see you staying home with the baby anytime in the near future.
The Ramsey Show
There’s No Fast Track to Financial Freedom
I know. Amir got lucky, and lucky for him, he'll be able to... pay for all of his med school in cash, and be the first debt-free doctor.
The Ramsey Show
There’s No Fast Track to Financial Freedom
You're listening to The Ramsey Show on The Ramsey Network. I'm Jade Warshaw. Next to me, George Camel, bestselling author, host of the George Camel YouTube channel, which is always popping off doing amazing things. George, good to have you.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Let's take some calls. We got Matthew who's in Nashville, Tennessee. What's going on, Matthew? Matthew, you there?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Interesting. Is it the same line of work?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Interesting. And is it like purely commission or is there like a decent base pay to get you started?
The Ramsey Show
There’s No Fast Track to Financial Freedom
Okay. Does this get you... Taking this opportunity, does it get you closer to where you want to be in the next 10 years?
The Ramsey Show
There’s No Fast Track to Financial Freedom
When you say you've been making a lot of money, tell us real dollar amounts.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So my question was, Dubai is quite expensive, no? So I don't know if you're getting some sort of housing allowance. I want to make sure that I think this is great. First off, let me say I love adventurous people. I love travel. I've worked in over 92 countries, so I get it. I love that.
The Ramsey Show
There’s No Fast Track to Financial Freedom
Yeah. We want to make sure you're thinking of everything. So have you looked up, okay, like once I'm converting this money, how much it's going to cost to live and really what a budget and lifestyle would look like on that salary. And you got to account for the worst. Like you got to pretend you're new to this and 72,000, like you could, that could be your year. You know what I'm saying?
The Ramsey Show
There’s No Fast Track to Financial Freedom
So have you done that kind of math and that kind of research? Yeah.
The Ramsey Show
There’s No Fast Track to Financial Freedom
So if you take this, that's good to know. If you take this, are you locked into a certain amount of length of time of contract? Or is it like if you get there and you're like, this is where the birds get me out, you can just turn around and go?
The Ramsey Show
There’s No Fast Track to Financial Freedom
I hope that's the case. Thanks for the call. Let's go to Dane in Denver, Colorado. Dane, what's up?
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Hey guys, this is Jade Warshaw. Listen, I get it. The student loan situation is bananas, but it's time to make progress, not excuses. So if your payment and interest rate have you treading water, refinancing could be the solution for you. Look, if I were in your shoes, I would contact Laurel Road today and get a free 30 minute consultation.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
You'll work with a student loan expert and you'll go over your refinancing options. Hey, for refinancing to make sense, you've got to check certain boxes, like making a good income. And bottom line, Ramsey's advice is that you only refinance if you can get a lower rate or a shorter term. Remember, the point is to pay off debt faster. Maybe you just need to keep rocking the debt snowball.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
But if refinancing does make sense for you, Laurel Road offers low competitive rates and interest rate discounts are available for stuff like auto pay. Listen, you can't mess around with student loans. If you want them gone, you got to go hard. So go to laurelroad.com slash Ramsey to find out more and schedule your free 30 minute consultation. That's laurelroad.com slash Ramsey.
The Ramsey Show
If You Live Fake Rich, You Will Become Real Broke!
Laurel Road is a brand of Key Bank National Association.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
And what's it mean for you to be doing business in another country?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Well, there's no – You can fish.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
You're not the exception.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Oh, my God. Caleb needs to invest. His first investment needs to be in your book.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Who has the kids now? What's the agreement now?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Taken away from you or taken away from her?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
She said, don't look at me. All right.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
So you had to get started on this. You kind of you got started on it on your own before you guys got married. And then once you got married, that's when you kind of linked arms on it.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
our rent was we knew what all our utilities would kind of look like um some things changed but that's how we were so ready to go day one we were like let's get this done and day one we started it because we had that hypothetical budget in place so so tell us how you got around it because a lot of times people call into the show and they feel some sort of like guilt of these are my student loans i feel bad you know bringing them into the marriage she shouldn't have to put you know they've kind of got that separate mentality how did you guys get around that
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
It's a great stipulation.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
So you were granted no custody.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Oh, I know. That's right.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
You ain't tracking, you ain't trying. That's my takeaway.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
You ain't tracking, you ain't trying.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
I like it. It sounds like something Chris Campbell would say.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
He's our EveryDollar guy.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Yeah, because the thing you have to realize is and it's not for you to lord this over, but they're working for you. You're paying them a percentage to do a service for you. So you're the one if there if there is a balance of power here, it rests with you. They shouldn't be manipulating you.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
They shouldn't be trying to kind of make it seem like they're the smart one and you're the one that doesn't know what they're talking about. That is the wrong feeling when you're working with somebody, especially with your money.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
And she's showing that you guys don't have the same values. You said you made it clear to her. I value Dave Ramsey's opinion. I listen to Dave Ramsey. And rather than really take that to heart.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
If you live your life that way. Good luck to you.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Why, you told us that she was abusive and all these different things. Why didn't custody go to you? Are there allegations against you as well?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
And you don't. And let me also add to that, because there was a lot of like comparing to other people's lives and why. Just this is your life. Like your life is your life. This is your income. This is what you did about your debt. And this is how you're going to go on vacation. You don't have to justify it by all these kind of like woven in things that you were doing.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
That's what I was going to say, but I didn't want to.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
I hope she is listening because you were going to go take her to Marriott. I know you were. Right.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
The hard part, I think, comes when it's something that clearly your wife values experiences. That's a love language, a spending love language she has. Clearly, it doesn't seem to really be yours. So it's probably harder for you to justify that amount. So looking at it through that lens should make it easier to say, hey, she values this. It's the mathematical side is still what Dave said.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
But if you can look at it and realize that, that's why you don't want to spend the money. It's not because you don't.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
I don't want to know how much it was. It's going to scare us. Don't scare the people, Dave.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
All right. Today's question comes from Nathan in New Jersey. He says we have paid off our debts and are working on a six month emergency fund. Baby step three. It's been a dream of mine to day trade via algorithms. And I believe I have something that is very profitable, roughly 300% annually. I've done everything I can to test my theory and it has worked. So I feel the risk of losing is low.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
However, I know Dave, just try to work with me here. However, day trading requires $25,000 in the brokerage account and it would take about a year to get that capital. How would it be wise to use the emergency fund as capital for the brokerage fund and only trade with money we have saved beyond that $25,000?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
I would still retain the $7,000 in an easy-to-get-to account in case an emergency happened. Okay. Let me tell you why Dave was laughing. Well, first you said... that you believe it's going to be profitable.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Probably on the other side of this, meaning it's a scam. My thing is, you know that you need the $25,000 to test it, which means you really haven't tested it. So you really are just operating off of belief.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Probably, yes. But there's the part of this that it's still day trading. And the statistics on this are really, really bad. It's so bad. I think I read one.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
That's what I was going to say. 97% lose money.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Over time. Yes. Which means you're not making money.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
And especially to put your emergency fund up.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Yeah. Why are you so desperate? That's the question. The question you need to walk away from, Nathan, is why? Why must this happen so quickly for you?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
It's your family's emergency fund.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
And even if you played it out, even if you're a person listening to this and you're like, well, it's not my emergency fund. I've got some money to play with and I've paid off my debt.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
I'd rather go to Las Vegas. At least that's more fun.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Really? Like when the table's hot, Dave? Come on. You get a drink?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
It's entertainment, dude.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Indeed. Or a very immature 30 or 40-something who's trying to make up time.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Why do you think they did that?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
I feel like you kept your composure pretty good.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
No, they don't make them up.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
This is TikTok, though. This is what everybody's telling you to do, you know? Yeah.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
the 401k route or you know because i've always looked at roth ira do you have a match is does the company offer a match yeah i get a five percent match okay get it while the getting's good that's just free money and then after you can invest up until the match and then if you want to reach over and do a roth ira you could do that and max that out and then if you still have money left then you could come back to the the 401k but the total of all of that is no more than 15 of your income in a year
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Okay. And if you have it both ways and your 401k has a match and it's Roth, I would just stay there and max that out.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Can I ask what their living situation is? Yeah, but he's so young. How is he paying? Are you sliding money over there? How are they being taken care of?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
What was the original idea? Was the idea we're taking out these Parent PLUS loans so you all can go to school and this is our gift to you? Or was it said from the beginning, we're taking these out in our names, but you guys are paying them? Was there an agreement? Do you remember? No.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
So it's a gray area is what you're saying. It's a little different for everybody.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Do you know, if you asked how much they are, Dad, how much are they, would he tell you?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Now, there is a side of this and I'm in no way putting this on you, but I'm putting myself in your position. If my dad had done this and I was hearing about it, me being who I am today or even back then, I might be interested in figuring out, OK, how much did you take out? It was my education. What is it that I'd want him to speak for real to me?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
And that's I mean, I'm not saying you have to do that.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
You really don't. And the only reason I was saying it is if you thought there was some way, because I'm thinking, this is my dad. This is eroding our relationship. If there's some way that I feasibly can kind of take this into my own hands, that's something I would do. But you don't have to. And it's not to say that it would even fix it.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Yeah, I guess what I'm asking you, what I'm asking is, I mean, this is your business. Also, you called a national show. But my question is, are the kids best with the brother? Is that where they're best? Because if they are, maybe instead of continuing to drag them through this for it's already been six years. Right.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
But the learning that you can take from this today is don't be him. Don't be him. So you today have a situation that you need tending to, which is your own finances, so that when your baby gets old enough to go to college, you're not taking out parent plus loans.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
And so that when you're that age, you can look up and feel good about how you've managed your finances instead of pulling load off and blaming off on everybody else. So this is your learning from this.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Yeah, that's what I'm wondering.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
I do too. Parents are not required to pay for college and they're certainly not required to go into debt for it, but you are required to have a conversation early on about what the expectations are. And the expectation is there's no debt.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Can they have some stability and peace for the next, you know, four years of their teen life?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Is it the same type of work?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Kind of, yeah. I can understand that.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
It's not the same gigs your current employer could have gotten.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Yeah, this guy's got it. Gotcha.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
If you see me doing Amazon Flex, it's a problem.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
You know, I think a lot of employers don't like that, though. They don't like... Well, because they get bifurcated.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
That is because you're, yeah.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Remember during COVID when people were just applying for two full-time jobs because it was work from home?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Y'all need to stop doing that.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
Man, there's no way. There's no way you can do that.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
You would think there'd be an AI program for that, that when you're hired, you can see if somebody's already like working at their job. There's a business idea for someone. You're welcome.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
A new segment on The Ramsey Show.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
How long has it been going on, and what's the danger now?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
It depends on how much money you have to spend.
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
I'll tell you, I've never been to a Canadian fishing lodge. I don't know what that is. Do you live on the property? Is it like a bed and breakfast where you live there and you provide all of this for your guests and you're living on the property?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
So just play this out with me. So you said these could range from $250,000 plus, right, all the way up to a couple million. So let's just pretend you said, okay, I'm looking at the $250,000 plan. My family lives on the property. I put $100,000 down. So we've got the place. We're living there. And now we're starting to rent out the experience to guests. What happens next on your end?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
So you've got the lodge. You purchased the property. What's the next step? How do you build out the business? How do you get people to come to you? How do you build a profit?
The Ramsey Show
Dumb Debt Decisions Won't Accelerate Your Financial Growth
What's their net profit? What are they getting out of this?
The Ramsey Show
A Large Income Won’t Protect You From Debt
Отлично, отлично. Спасибо, что взял мой телефонный звонок, Джейд и Рэйчел. Огромное спасибо.
The Ramsey Show
A Large Income Won’t Protect You From Debt
Что происходит? Немного слабо здесь сегодня. О, да. Ну, я надеюсь, что погода подойдет для меня. Да, я знаю. Я не думаю, что вы получите солнце сегодня, но... Приятно. Спасибо за звонок. У меня есть вопрос. Я хочу купить третий автомобиль, веселый автомобиль. И это примерно $55,000. И я бесплатен, кроме нашего дома. И я буду платить за него. И я действительно хочу. Это довольно редкий автомобиль.
The Ramsey Show
A Large Income Won’t Protect You From Debt
Но я думаю, что в моем сердце я очень хороший спасатель. И я очень хороший подарок. Но я не очень много зарабатываю денег. Так что я просто на это склоняюсь, и в моем уме я думаю, что это будет здорово, у меня будет много хороших семейных памятников моей жене и трех детей. Я вижу, что ты уже очень эмоционально присоединяешься к этому. Я знаю, я знаю, что это так. Марк, сколько ты делаешь в год?
The Ramsey Show
A Large Income Won’t Protect You From Debt
Обычно это будет около 225, а в этом году это будет около 350.
The Ramsey Show
A Large Income Won’t Protect You From Debt
Да, у меня около 200 тысяч денег в руках. Очень хорошо.
The Ramsey Show
A Large Income Won’t Protect You From Debt
У меня были какие-то инвестиции, и мы сделали очень хорошо в этом году, и у нас было много денег, и я не инвестировал, кроме маленьких вещей, как 3-5% интереса в рынке и так далее. Но у меня есть другие финансовые инвестиции, которые уже установлены. Мы в хорошем состоянии. Как я сказал, я такой спасательный человек, и я такой подарочный человек, что я не боюсь потратить такое количество денег.
The Ramsey Show
A Large Income Won’t Protect You From Debt
Так что я говорю маме, я просто даю вам звонок, потому что я люблю слушать ваши видео, и у вас есть такой хороший совет. Я просто не хочу получить что-то, и у меня есть эмоции от покупателей, или... Все так инфляционно, рынок хозяйств, рынок автомобилей так инфляционный.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
Hey, what's up guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now,
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
i recommend contacting my friends at laurel road today through their online application you can get an initial rate quote in less than five minutes and if you have a more complex situation you can schedule 30 minutes to talk to an actual human being thank goodness laurel road makes it simple there are no fees involved and you could save thousands over the life of your loan remember
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt.
The Ramsey Show
Face Debt Head-On Before It Destroys Your Family
If you want them gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
Hey, what's up guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now,
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
i recommend contacting my friends at laurel road today through their online application you can get an initial rate quote in less than five minutes and if you have a more complex situation you can schedule 30 minutes to talk to an actual human being thank goodness laurel road makes it simple there are no fees involved and you could save thousands over the life of your loan remember
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt.
The Ramsey Show
You Have to Know Where You Are Financially to Know Where You're Going
If you want them gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
How much is the personal loan? You said how much it is a month, but how much is it total?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And is that technically the next smallest after the student loans?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
The only question I had in this is, and this is kind of getting in the nitty gritty, but I'd be wondering, okay, are these loans subsidized? Are they unsubsidized? Are they still, do they have the ability to gain interest even though I'm still in school? Do you know the answer to that?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And before this legal issue with Max, I was cash flowing school. I see. I see.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I mean, knowing that my loans are active, even if I'm not, would still make me want to work this in order. But I understand the temptation that you're saying of getting like the thousand dollars back because you're spending that. So that's what my brain would do. My brain would be like, listen, student loans are a major problem. I want to knock these things out as soon as I can.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
How amazing to have paid them off before you've even graduated. That's kind of where my mind goes to.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Okay. Well, what's the other debt? Because you named about $30,000 in student loans, I feel like, give or take. What's the other debt?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
How much do you owe your mom?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Yeah. It was a two-year legal battle, so... Here's...
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
this is gonna sound nitpicky, okay? And there's method to my way of thinking of this and George might have another take on it. But my husband and I paid off $460,000 of debt, 280,000 of it was student loans. And it's just daunting to look at a task like that. And I'm sure you feel the same way, Sarah.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
But I found that there's something about, if I have found a system and a solution, if I can build the muscle of sticking to the plan Every time I stick to the plan, I stick to the plan, I stick to the plan. It takes the guests out of it and it causes me to be more consistent long term than kind of jumping around and picking and choosing.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And that would lower the cost? Is that what you're saying? I'm just asking, could there be another company out there? It's been a couple of years, I guess. Could there be another company out there where you could get it done less and it still be under warranty once the work is done?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Because this is you're going to hit peaks and valleys on this. There's going to be times where you're ready to run through a wall because you're so like geared up to do this. And then there's going to be times when you want to quit. But if you build up the muscle of I stick to the plan, I do, I stick to the plan, then there's something about that that really helps.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And so in this case, I would stick to the plan, even though that thousand dollars is waiting there. Build the muscle of doing the plan the right way so that when the rubber meets the road, you'll do the plan the right way.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Buying or selling your home is a big deal, guys. And you want an expert in your corner. You need someone fighting for you to find the best deal and the right price. So the Ramsey Trusted Program is truly the only way to find a top agent that you can trust. Someone who's going to make your home a blessing and not a burden. It's really easy.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Just compare agent profiles, interview them, and choose the right one to work with. It's up to you. So to find a local Ramsey Trusted Real Estate Pro for free, I might add, go to ramseysolutions.com slash agent or click the link in the description if you're listening on YouTube or podcast. Love that. Let's go to the phone lines. Eric in Seattle, Washington. Eric, what's up?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
How do you do? We do good.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Should I? I've never done a pre-questionnaire. I think you should start this one out for us, Eric.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Are you picking the home or are you just giving them the cash?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
From the Ramsey Network, it's the Ramsey Show. I'm Jade Warshaw. Next to me is your co-host, George Campbell. We're chopping it up with you, taking your calls about your life and your money. So let's get right into it, George. You ready to do this?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Is this a home together? Can you clarify? Are you talking about buying like a big family home or are you talking about buying individual homes for each of them?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
So here's what I would do. Let's just make this cut and dry. If you're wondering if it would steal their joy or not, just ask them. Say, guys, here's what I was thinking of doing. I was thinking of saving up some money to buy you guys a house, but I don't want to steal your joy out of this. Would you want me to help you pick it out, or would you prefer to just be gifted this cash?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Would you prefer for me to just help you with the down payment? I think if we have questions in these situations, George, the best thing to do is just ask. And listen, I'll tell you, I, for one, would have loved... If somebody was like, let me give you this special gift.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Tell us, tell us what you're on the hook for after the bankruptcy that, that the bankruptcy didn't clear and tell us the numbers, what you own your house and what it's worth.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Yeah, that's right. So if your kids are like like George said, if they're entitled, if they're doing something that's like a failure to launch and they're struggling. Yeah. Monetary gifts probably aren't the right thing.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
No, but if they're great citizens and they have great jobs and they were managing their money well, that is a wonderful gift. And I think something like that, especially younger in life like this, he said they're 37 and 27. That truly has the ability to set somebody up for life. Like, truly. Can you imagine? I mean, well, George, you're the exception.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
You bought your house early and you paid it off pretty fast.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
That's true. Like Sam and I, we put aside for our kids. We have two of them. They're five and seven right now. And in my mind, I'm thinking, yeah, like I don't know when that day is going to come for them. If it's when they're in their 20s or 30s or 40s. But the thought is, yeah, we'd like to be able to give them, if not the whole thing, like at least the down payment.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Because Sam's mom helped us quite a bit when we bought our first house. And it was such a blessing. Like it was such a blessing.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
No, I was like, oh, thank the Lord for Nina Warshaw. Like she is a saint. Like that's it's such a grace and mercy right there. Yeah, man, I know.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Yeah, because by then they're probably all right anyway.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I think we can help Chris in Moses Lake real quick before we go to break. Let's go. What's going on, Chris?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I'm just going to glaze over that for now and pretend like you didn't say that so we can answer your next real question. What's the question you have today?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Well, we would teach for you to have three to six months of expenses. And then after that, you're in baby steps four, five, and six where you're investing, saving for the kids' college, and putting extra payments towards the house. So that's all good. How can we help you today?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I wouldn't use your emergency fund if that's what you're talking about. If the $95,000 is your three to six months of expenses, I would leave that there because you need that there as a cushion. Okay.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Woo, that's lightning fast. I imagine that when a person who's not used to hearing our show hears that, they're like, George, you're lying.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Yes, because they were going to invest it and make the spread.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I won't get you started till next segment.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
All right. So, George, it's time for one of my favorite segments on The Ramsey Show. Talk nerdy to me.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Okay, we're talking about what the heck is a mutual fund?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
So you're buying a tiny piece.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
George, I heard equities. I heard securities. I heard what?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Put it on the bottom shelf for us.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
So when you say that you could have a fund that's got everything from Procter & Gamble to Pfizer to Coca-Cola to Apple, all of that, all of those different stocks in one fund.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
That's right. And you could have different indexes. Yes. So we talk about the S&P 500 a lot. That's kind of like the holy grail of indexes that people follow. But you might have heard of others like...
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
This is just getting nerdier and nerdier. I'm liking it.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Love that. So, George, how do mutual funds make money? I mean, you told us what they are, but technically, how are they making money? Are we making money every time the company makes money or how does that work?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
So, George, I hear Dave and you guys and myself all the time. We talk about the four different types. Can you go through those so that people know once and for all what the heck we're talking about?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
So are they going to are they going to take any of your assets to pay this off? Like, are they going to take your cars and sell them to try to make this happen or?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
So they balance each other out.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I love that. I feel like you made it very clear for us. This is good.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Very, very good. I like it.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
This is very, very helpful stuff. All right, George.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
You said the Miss Rachel?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Oh, so this is like Cocomelon, that kind of deal.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Got you. All right, George, let's take a social question. Okay. Let's do it. All right, so— Jane from Instagram asks, does Dave or George ever recommend not paying off your home if you are retired?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
If Jane retires at 67 and Dan retires at 68, who will pay? It's like a word problem.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I agree. I've never heard it either. All right. We've got another one. Kendall from TikTok. I like this one. She asks, what do you think is the hardest baby step?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I do think that Baby Step 3 is a sleeper. I think people sleep on it thinking, oh, it's going to be easy. I'll finally be paying myself. And I felt that way. And then once I got in it, I felt tried. I was like, you guys told us that this was going to get easier. And for us, it felt, and I don't want to say harder, because Baby Step 2, that's a struggle. But Baby Step 3, man, people sleep on it.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And you're like, can I just get a break? Exactly. I got to keep doing this. Exactly. I mean, what did you think?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And you feel it. You feel the progress.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Wow. We both said baby step three.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Wow. Okay. Will Rutter is saying Baby Step 2.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Baby Step 2 is difficult. Don't put shade on us for that. We're saying it is difficult. Hey, that does it for this hour. I'm not going to talk about it anymore. You'll have to hang on and check us out in the next episode.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
All righty then. All right, let's go to the phone lines, man. We've got Abby, who's in Fort Worth, Texas. What's going on, Abby?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Thanks for hanging out with us on The Ramsey Show. I'm Jade Warshaw, George Campbell. It's always good to be here with you. We're taking calls about life and money. It's a free call-in show. If you didn't know, you can call in. 888-825-5225 is how you get your call onto this show and onto the board. And Alex did exactly that. He's in Tampa, Florida. So let's go to Alex. Alex, what's going on, man?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
You're welcome. How can we help?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Good question. Thanks for the call. Yeah, George, you're so right. Sometimes it's like once you've done all you can do, you just just make those payments. There's nothing else to do except just make the payments until it's done.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Agree. All right. St. Louis, Missouri. We've got Blake on the line. Blake, what's up?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Wow. Was this the big tornado that we heard about on the news yesterday? Years ago?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I was just kind of calling.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
That's crazy. That context helps. Yeah. How much debt was this total that you paid off?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
So you started your whole life over, essentially.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
So my guess is... You know, I think that when we do these things, as much as we do them out of a must, like I must do this. This is the right thing to do. It's my only choice. Like when your back is up against the wall, a lot of times you're like, this is my only choice.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
But if you also don't have that clear vision for the future, kind of like the sunny side of it, the why, then sometimes we can accomplish those things. And it's like, OK, I did what I was supposed to do. I did what I had to do. But what was it all for? And it sounds like you're kind of feeling that right now.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Okay. The $18,000 car, what's it worth?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Are you just feeling a little down and depressed? Is that what it is? You're just kind of down in the dumps right now?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Yeah. I mean, listen, Dr. John is not here, but sometimes you just kind of go through those periods of melancholy. And I don't know, it sounds like you linked it to the debt payoff. Maybe it has nothing to do with that. But I do know like when you go through those seasons where the things that are supposed to kind of light you up, you're just kind of numb and you're just kind of melancholy.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Yeah, that's a time where I would reach out and talk to somebody. And if your pastor is not available, you know, I get on better help or I'd get on, you know, get on with a counselor or somebody who can help me just talk through it and kind of give me some tools to work through it every day.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Like if I did private party, I looked and it was like maybe $17,000 was on the higher end. And the $43,000 one, what is that one worth? About $34,000. Okay. And what's the pay? Can you tell me what you're paying your parents every month? How much is that just to see?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And what George just said is a big deal. What you experience, and I know this is a buzzword in society, but here I really think that it applies. Dude, you experienced a trauma. That's wild to have a tornado of that impact and that size and magnitude, not only to experience that in your emotions and that be in your neck of the woods, but for it to actually destroy your business and your home.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
That is a big deal. And that is not something that... is just going to go away because the storm passed. You're going to have to unpack that with some people because the truth is a lot was in danger. Your life was probably in danger. It wasn't just a financial thing to George's point.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Do you remember seeing that on the news when that came through?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I think there's a Netflix documentary about it now. I think I saw that.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
It was a big one. Okay, I'm going to ask another quick question. These are fun. Okay. Wondering what banks have the best interest for your money? I'm going to read this, but I don't know what they mean by it. Wondering what banks have the best interest for your money. Is a redneck bank a good one? What does that mean?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I use Marcus by Goldman Sachs because a good friend told me about it. And I also use Ally from time to time.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Yeah, you didn't tell us the house. What do you own it and what's it worth?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
All right, you're listening to The Ramsey Show. Let's go directly to the phone lines where we've got Liz in San Diego, California. Liz, what's up?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Okay. Were the parents living there with you or you were living there alone with the kids?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And so your dad's getting married to a new wife. So I'm trying to understand why that's connected to rushing you out of the house.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Are you are you trying to assume the old mortgage or you're just like trying to start from scratch with your own to give him the money?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
That's the hard part of this. So it sounds like you're wanting to keep the house more so for stability of your family because your family's been living here since 2019. Right. And it's just a rental. It's not like the house you grew up in or anything like that, right? Right.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Sure. My question is, I mean, here's the thing. If you buy this house and you can't afford it, you will not be able to keep it long term and you will end up moving because you won't be able to afford it. So I think it's really important to run those numbers out.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And the way we teach it here, which is really the best way to buy a house, is when you run those numbers out, Liz, if it's going to be any more than 25 percent of your take home pay, You can't afford it. And if it's creeping up over 35 percent, especially like that is just a rope tightening around you. Like it's going to make you feel completely bound up.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
You won't have the money to do any of the things that you need to do really to further your life. You won't have the money to invest. You won't have the money to pay for your help, pay for your kids college, that sort of thing. So that's why we teach it that way. Have you done any rough estimate on this to see what that might look like?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Well, assumption is even harder because now you're dealing with the equity that's already there and you're kind of on the hook with that. So I can't see that being the route, especially if you already feel like you can't afford this. I would be thinking... Yeah, run it out as a conventional loan and see where you match up.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Okay, so I see even more why you're wanting that. And no savings?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Okay, let me give you a couple of tips because I hear a lot of things that you're saying, Liz, and I think we can give you a couple of practical things to really help you. Number one, if you want to be ready for this house, like what George said, you need the foundation. You need to pay off this $11,000 of debt, and we want you to save up three to six months of expenses.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
That way, if something happens, let's say you do buy the house and the AC goes out, you've got the money to fix it. You get a hole in the roof. You have the money to fix it, right? Homeownership is expensive and you want to have the money there so that you don't go into debt to deal with the things of homeownership. So number one is that foundation.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Well, we wouldn't put it in the high yield savings. We'd really put it towards once you get settled in your new rental, the rest would go towards debt technically, right? Because at this point we're working those baby steps in order.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Number two, you got to have a budget because I can always tell when somebody doesn't have a budget when I ask them how much they make. And it's kind of like... And I don't say that to throw any shade. That is most Americans. So I want you to be better than average and know your numbers through a budget. So before you get off the line, we're going to give you every dollar.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And Liz, just having that is going to give you so much control because you're going to know exactly where your numbers are, exactly how much is going out, exactly how much you can put on this debt. And then you can start doing the calculator, the mortgage calculator that George has here. And we'll make sure you have the link to that.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
So then you can project out and say, OK, here's the margin I have. With every dollar, you'll be able to see how quickly you'll have it paid off with their financial roadmap. And you'll be able to see how quickly can I actually buy this house? And then maybe, Liz, you can sit down with your dad and say, Dad, my kids have been living here since 2019. You know the situation.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I'd really like stability. And you can start a path forward. I will have my debt paid off by X, Y date. I will have my emergency built up by then. And then it'll take me this long to save for the down payment. Is there any way that we can elongate this so that I can keep my kids stable? That's your best bet here. But definitely getting into a house you can't afford is not. Yeah.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
No, don't apologize. That is a tough thing that you're walking through.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Yes. You've got a lot, Liz. And here's the thing. You're you're searching for something to grab on to. Right. You've got a lot going on and you're searching for that thing that can just anchor you in right now.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And a lot of times we do find that when people go through something really tough like this and they've got this kind of overwhelming, it is easy to reach for something that's the wrong choice and it ends up making it worse. And so if you don't remember anything else from this call, just remember right now, I can't afford this house. Right now, I can't afford this house.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And that way, you won't do something that you'll regret. And getting these numbers will help you make a case with your dad. And honestly... Yeah. You know, that's the best. I mean, that's the best I can tell you right now. I hate that you're going through this, Liz.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Yeah, we're rooting for you, Liz. This is a tough season, but it's not going to last forever. You're going to look up months and a year from now and you're going to feel a lot better about what your life is looking like.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Around here, we like to do something called the Debt-Free Scream. It's when we invite folks out, and really anybody can come. You can sign up to do your Debt-Free Scream, but we've got an amazing lobby here where we host guests of the show. And if you want to do your Debt-Free Scream, there's a really nice stage here where you can do it on. These are people who have paid off debt.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
OK, that's going to give you a lot of breathing room. My question for you is, if the if is there any way to roll back this bankruptcy and give you guys control back over this? Because if you sell the house, that's going to give you a lot more money back in your pocket. I mean, I didn't ask you what's it going to cost you to rent?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
They've been walking the baby steps, and they're excited about it, and they want to truly shout about it, right? That's what it is. And so we've got Jonathan here. He's from Franklin, Indiana, here to do his Debt-Free Scream. Jonathan, what's up?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Oh, that's a big deal, all right. How old are you?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Holy smokes, 36 years old. How long did it take you to do that?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Nice. Wow. So you had debt previous to the house that you paid off in six and a half years. Then you turn around and did the mortgage in eight. Is that what I understood?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Holy smokes. So $89,000. How much money were you making during that time?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
What kind of work do you do?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
This just gets better and better. All right. Because you know you're breaking through all the stigmas, right?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I mean, people think, oh, a teacher. Are you single?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And you did it so fast. Yeah.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
What caused you to be so intense about it? What clicked in your brain? What caused that? A lot of times people have an I've had it moment or there's something that's kind of driving that intensity. What was that for you?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
He sounds like a numbers guy, like a logic. Like, I just want to follow the system to get the thing done.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Oh, no, he's cheering for you, dude.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
You're a guy who makes the most of his time. Like, you're not sitting around.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
much yeah definitely not no i was either serving sandwiches or serving his country he's out there yeah thanks for your service thank you who was who was cheering you on or tell me was it folks cheering you on or folks looking at jonathan going man this jonathan guy like he's bizarre like this guy's nuts i would say oh definitely a little bit of both people are definitely rooting me on when they heard about the story they said maybe i couldn't quite go that fast but definitely were
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
That's incredible. I definitely think you should do the travel abroad thing. That's incredible.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
You have plenty of time for that. I mean, gosh, you're only 36 years old. You're going to be a bazillionaire, number one, and you've got all the time in the world.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Well, the good news is... It has to be, like... Well, the thing is, kids... No, it doesn't. Kids are crazy, but they don't take up a whole lot of space, right? They take up a lot of space with our energy and mental space, but, like, physically, they don't take up a lot of space. So this is your season. I want to encourage you... Abby, this is your season... to do the most.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Have you played with an investment calculator?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I'm excited for you. So what do you tell the person listening? I mean, we hit on it earlier. You busted through a lot of stigmas, right? Single income. A lot of people think, oh, they look at us.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Right. And you're like, no, didn't have that. Now you're on a teacher's salary and you're purchasing a house, which a lot of people think it's hard enough to purchase it, let alone pay it off. But you've done all of this in eight years. What do you say to that person?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Word. Wow. Way to go. Well, here we have it. We've got Jonathan from Franklin, Indiana, paid off eighty nine thousand dollars. It was his house. He did it in eight years. George making eight fifty thousand to eighty thousand. Jonathan, count it down. We want to hear your debt free scream.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
That's what I'm talking about. That's what I'm talking about. They say it can't be done, George. But we see it's done.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
The proof is in the pudding.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Oh, yeah. Oh, yeah. I mean, he's got all the time. He's 36. That's like he's a young gun.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I'm inspired by this. What do you do now? Yeah. What do you do now? Well, he's going to France.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Yeah, I know that's true. If you if you're taking a trip abroad, George. Where are you going?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Greece is cool. So you're saying the bougie-ness is a phase? I feel like this is just who you are.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Yes. I want to eat. I don't. I mean, I'm an active person. I don't mind a walk. I'll take a walk after I eat.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I don't want to do that on vacation. On vacation, I'm like you. I want to sleep in late. I don't want to have like this big itinerary that I have to wake up at 6 a.m. and check all the things off the list. I want to sleep in. I want to order room service. It's all about the food.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And by doing the most, I mean sacrifice to layers that you never thought you had in you. This is the season where you live in that really small, really cramped apartment that you'll tell stories about, you know, 20 years from now, right? When they're grown and you'll say, when you guys were kids, we lived in this little apartment. Because this is you taking your life back.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I think that's a great way to experience it.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Oh, we did. What is our gift?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I love that. I love that. And it's just a reminder, you know, when you do things like this, you got to dream about it. Like Jonathan reminded us, let's dream. Why are we doing this? Why are we paying off our debt? Why is it important for us to build the savings? Have that really clear picture so that you can actually see it through to the end. I don't care if it's a trip to France.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I don't care if it's, you know, you buying your dream car or a new pair of Jordans. But having that why, having something to shoot for, man, you can accomplish more than you ever dreamed possible. Mm-hmm.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
George, we just witnessed that amazing debt-free scream from Jonathan. Paid off $89,000. It happened to be his house. He did it super quick, eight years and on a teacher's salary. And we found time and time again that what allows people to win like that is the foundation of having a really, really good budget. And our EveryDollar budget is just that.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And so our EveryDollar team has multiple free trainings for you this month, which is basically trainings for you to use EveryDollar at its optimal level. capacity is basically what it is. So join a live team and a live webinar to learn how to break the paycheck to paycheck cycle in just 90 days. And you'll get a step-by-step walkthrough of the EveryDollar budget app.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
This is the only budget app that I use. It's the one that George uses. And so you'll get the biggest budgeting questions answered. It's a live Q&A. And Yeah, it's just for you. Over 160,000 people have already done these webinars, and I'm sure they would say that it was a breakthrough for them, right? Spots are limited. They're always going to be limited.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And so you're going to have to make decisions that are vastly different than anything you've ever done before. The fact that you understand that you need to sell this house is so important. But look, if you sell this house and you don't gain the margin out of it monthly that you need to make this happen, it was all for naught. Right. So make sure that you don't.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
So sign up now for free at www.everydollar.com slash webinar. I haven't said WWW in a long time.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Also known as everydollar.com slash webinar. There we go. HTTPS colon slash slash. Listen, I'm reading. I respect it. Let's go to Summer. She's in Orlando, Florida. Summer, how can we help today?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
You're saying you want to buy them when they're on sale is what you're saying?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Okay. Where are you in the baby steps, Summer?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And how much are you putting aside for your down payment? Or is that just not something you're like gunning towards just yet?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Oh, so that's your plan. You're like, I'm just going to save up over the next six years and just knock it out in cash. Yes. Interesting. What I listen, I'm, I love that plan. Uh, what would, what's your thought on that versus saying, Hey, if I really put the pedal to the metal, I could put a really nice down payment. Now get in the market as sooner. Do you know what I'm saying?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Don't let your eyes get big and see an apartment that goes, oh, well, that would be a lot nicer because then you're taking the whole sting out of this punch. So make sure that you live in something smaller and try to if you don't have to go through with converting this bankruptcy. Don't if you can get out of it and say, you know what? We're taking control of this. I would do that immediately.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And you have had that time to also build equity in the home all of this time, which is nice. Okay, perfect. Thank you so much. Just a thought.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Exactly. Very good question. Good question. Let's go to Jenny. She's in Columbus, Georgia. Jenny, what's up?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
We're good. How can we help?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I would not do that. Hear me. Yes. My car's pretty old, and the car I had before that was pretty old, and our family rides in it just fine. And the 145,000 miles, my car's got more than that.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And he's going strong. So my point is, I'd rather, you know, when it's your car, it's like you know what's wrong with it, right? And you're like, okay, let me just go ahead and get this thing fixed. It doesn't make sense to spend $15,000 when you could really spend five because it's still money, right? Don't forget math just because one's dead and one isn't.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
So I would be coming up with the money to get your current family vehicle fixed. Now it's about figuring out how we can do that. So can you tell us what your income is?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
How much of the $9,000 is your mortgage payment?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Okay, great. So there's a lot of money here. I think that if you guys get really creative, if just in a month you've got $3,500 of margin, I think you guys can get really creative to find the other $1,500 you need to get this car fixed really fast. Okay.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Okay, okay. Yeah, George has a really good – that's a really good thing. George, we hear it – I hear it all the time. I mean I have a personal story of a friend of mine who – I don't want to give away who it is. So basically their car broke down and they showed up the next time I saw them and they had a brand new vehicle. And they're like, well, it was going to cost $800 to get the car fixed.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And we didn't have that. So we just rolled the equity into another brand new vehicle. And next thing I know, they've got like this super nice. And I'm like, oh, my gosh, that is the definition of broke.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Yeah. That is the definition of broke right there. So that's a good indicator that it's time to make some changes with your money. We'll help you do that. This is The Ramsey Show.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Our question of the day is brought to you by YRefi. If you've got defaulted student loans that don't let you gain any momentum, I get it. No judgment, but also nobody's coming to bail you out. So take charge of your Wi-Fi. So take charge today at YRefi.com slash Ramsey. They offer refinancing to a low fixed rate loan built just for you. That's the letter Y, R-E-F-Y dot com slash Ramsey.
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Stop Messing Around & Follow the Plan That’s Proven To Work
Remember, it may not be available in all states.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Man. So $25,000, have you gotten multiple quotes on this or is just one guy said this?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
I will say, you know. This might be you and I might vary on this a little bit because, you know, George, he's very level headed, very cool, calm and collected. I, on the other hand, tend to freak out. So I kept my. So when we were on Baby Step One, George, I kept the thousand dollars in like the same account that's.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Just like a normal savings. Cause I'm like, which that's fine. I'm not trying to earn interest on this. Like, I don't care. I just want to be able to get to it. And then when we moved up to the three to six months, then I popped that in the HYSA. Cause it's true. I do feel like those bigger emergencies, like your foundation or your roof or whatever, I don't know.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
You need a new car or something like that. Yeah. Then it's like, yeah, I can take some time. I'll take some days. And to your point, George, it gives you time to think rationally. Is this the best decision? Have I spent time on this? And then by the time the funds transfer, you can feel like a responsibly a financial responsible adult.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Yeah, that's a good point. You kind of have to know your personality, right?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
That is a good question. Wait, let's take this a step further. So you could do – there's three options here. So let's say you bank with – I'm making up a name – Wall Street Bank, right? And you've got your checking account at Wall Street Bank, and so you then put your –
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
savings account there to keep your thousand dollars at wall street bank then there's an option of saying hey i don't want it there but and i want to put it somewhere else so you put it on an online high yield savings account but you feel like hey that's that's kind of too far away i have to do the transfer you could do another checking account at another bank that's not online.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
So you do have the debit card, but it's not the kind of thing that whenever you pull up your bank balance, you just see it sitting there. Because my thing is if I see it, then I'm tempted by it. But if it's on a whole other app on a whole other bank, I'm not out of sight, out of mind, out of sight, out of mind. This is just this is the way my mind is.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
You know, what was the last emergency you had?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Isn't that funny how that happens?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Yeah, that's true. The last big one we had was, let me think, our washer and dryer, our washer. Our washer went out.
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
And of course, I did what any American would do and say, well, if you got to replace the washer, you got to replace the dryer so they can match. That wasn't the smartest choice. Aesthetic. It's all about aesthetic. I don't regret it, but it might not have been the most savvy choice. Let's go to the phone lines. We've got Sarah in Seattle, Washington. What's up, Sarah? Hey, how are you guys?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
We're doing good. How can we help?
The Ramsey Show
Stop Messing Around & Follow the Plan That’s Proven To Work
Oh, I see. So you're not doing the baby steps out of order. You're doing the debt snowball out of order.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Okay. That's for the long term. I think there's sort of some stages here we need to work through. One is the current urgent putting food on the table, making sure the light bills are paid. Can you cover all of your bills right now with your monthly take-home pay?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
And cover all the minimums on your debt payments? Yes.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
And then how much is left over after all of that?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Awesome. And does your daughter know about your financial journey? Obviously she knows about mom and what's going on there. How is she doing? What are her urgent needs?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
But right now we're trying to survive. So building wealth is great for the next 10 to 20 years, but right now she's got an absent dad who's just frozen in grief right now.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
That was not the stated wishes of the will?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Yes. Okay. How big was this estate? Do you have any idea?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Thank you so much for having me. and your relationships, you can make some real progress on what matters to you. So go check out everything we've got going on, ramsaysolutions.com slash store, or if you're watching on YouTube or podcast, click the link in the description. Sale ends on Monday, so jump on it.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Okay, is she in very poor health? What's the reason for her moving in with you guys?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
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 best-selling author Jade Warshaw, and we are here to take your calls and help you take the right next step with your money and your life. Give us a call at 888-825-5225. Carrie is our first victim here in Bend, Oregon.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
You want to build her a dog house in the back.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Okay, what's the in-law suite going to cost?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
But she's going to have to come into your house for, like, everything, right?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
And like a shower and all of that? Yep. For $50,000?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
I've got a bridge to sell you. Are you guys doing this yourself? Are you going to just go to Home Depot and try to like hammer it together?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Wow. That sounds super simple and not complicated at all. So what would happen? You can't sell it then because there's too many people involved?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Yes. So you'd be owed about $300,000 at the end of this, if all things had gone to plan.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
So this is all on you for the rest of her life.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
I'm just making sure you guys are good to take on that for the rest of her life, which could be 20 years.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
So I'm wondering, can we use her money to fund this or cover her apartment versus you guys taking it on?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Why not use her Social Security to pay for an apartment for her or even like an assisted living community?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Well, she might have a million sitting in there, and she's just very frugal. She might have a dollar sitting in there. We don't know.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
My fear is you're paying for this thing long after she's gone. You still have a payment on this kid. I wouldn't do it.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
The Ramsey Show question of the day is sponsored by YRefi. If you're buried in defaulted private student loans, you're not alone. Reach out to YRefi to see if they can build a custom plan to help you dig out. Visit 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
Stop Obsessing Over Pennies While Ignoring the Plan
These just break my heart. It's just these too good to be true advertisements where they go, hey. And they're everywhere. It's like, bad credit? No problem. Come take out a loan at 98% interest. It's fine. Yeah. That's kind of the vibe with these.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
We're going to waive the down payment. You can take out a hundred percent on the loan.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Yeah. And there's a ton of red tape and very strict rules to even qualify for any of these. And even if you do, guess what? They're going to get you a different way with a crazy high interest rate, with tons of fees built into the loan costs somewhere else that you're not seeing because you're not paying attention. You're just starry eyed. You got private mortgage insurance to pay. That's right.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
And I've never seen this work out where someone's like, this was a great idea. We can totally afford the mortgage. It's usually broke people trying to get into a house before they're financially ready. And they see these advertisements, which if it's being advertised, that's probably a sign to you to step away.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
They prey on these people. It's borderline predatory. A lot of these USDA loans, FHA loans, even VA loans. Hey, veterans, 0% down.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
You're causing financial harm because they're getting into a home they can't afford. But they think they can because the lender said they could.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Why can't you drive the paid-off truck and sell the truck with the loan on it?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
How is that helping him out? He's making a payment on a car he doesn't drive.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Okay, this financial inbreeding needs to stop. This is chaos, what you guys have done to your family's finances.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
And what's your household income right now? Is wife staying home with the kids? Yeah, she's a stay-at-home mom.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Okay. You guys have a lot of car in your life. You either need to save up the difference that you're underwater on, or you need to go get a loan for the difference to lower your debt amount. I don't know that you'll qualify for that, but do not do a voluntary repo. It's going to destroy your financial life.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
You're going to sell it auctioned for pennies versus what you could sell it for, and then you're still going to owe the difference. Do not do this.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
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 Ramsey personality Jade Warshaw, and we're taking your calls at 888-825-5225. Be brave. Call us. We'll help you take the right next step for your life and your money. Haley's going to kick us off in Huntsville, Alabama.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Doing great. What's going on in your world?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Cool. What's your household income?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
The car that you just got, your husband's, is that still worth something since you just took out that loan? It's worth more than $18,000?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
That could pose a problem for this journey you're about to embark on, right?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Would he agree with you to sell these cars to get out of this debt?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
My guess is your expenses are pretty high because as you guys have made more money, you've increased your lifestyle.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
To see here's really what's happening each month.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
I feel like, yeah, he essentially committed fraud. So what you'd have to do is petition in probate court to force the accounting of this, force him to show up, force him to deal with this. I don't know. He may have spent all this money. Exactly. So we just – I don't know that you're going to get what you're hoping to get out of it. I mean, it sucks that this happened.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Would he be willing to cut up cards and never use a credit card again?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
You said he'll agree with you. So if you say, hey, we're cutting up the cards, we're only going to use money we actually have. We're not going to have a promise that we'll have it.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Because I found that changed it for me, Haley. When I was getting out of my debt, I realized that cutting up the card was one of the best things I did because it's burning the ships. It's saying there is no option to go into debt. I froze my credit. So I couldn't even open up a line of credit if I wanted to. And do you see what I'm saying?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
You have to add friction back into your life as you're getting more out of control.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
I was going to guess Chase. I love a Chase from Huntsville.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
What happened to the woman that just impulsively got me a surprise truck?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Create the vision. And then selling the car becomes a byproduct of reverse engineering this vision. That's a very different story than we got to sell the cars because Dave said it's I want peace in my life. I want freedom. I want our kid to not know debt. And we've had debt our whole marriage. And we've got to change our family tree. It starts with us.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
If you're tired of living paycheck to paycheck, you're wondering where your money's going, your first step is getting on a budget. Our team is hosting free budgeting trainings this month that you can jump in on where you're going to learn step-by-step how to make and stick to a budget using every dollar. We're going to make it easy and, dare I say, fun.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Plus, you can get your biggest budgeting questions answered in a live Q&A. So spots are limited. Go sign up for free at everydollar.com slash webinar. Sasha is in Baltimore up next. How can we help, Sasha?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Doing great. Better than we deserve. What's going on?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
And this house is a burden? Can you not afford the payment?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
So I'm just like, I'm at a space where I. So you basically owe the back mortgages payments that you missed. How much do you owe total?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
We're not defending him, but there's a lot of other pieces here that we're confused about. Like was the estate officially closed in probate court? What happened with probate?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
No, that's it. So you have $39,000 in debt and you're making $85,000. This is a very solvable problem.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
I think what you're searching for is a shortcut to make the problem go away faster. But you are the solution. You put this income to work. Everything above food, utility, shelter, transportation goes toward the debt. I mean, we can crunch some easy numbers here. Are you able to get your income up at all with side hustles? Drop the kids off at mom's and you go to work at night?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
And it sounds like you're doing this all on your own. Dad's not in the picture?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
No, that's not what I'm advocating for. I'm trying to make sure there's not other income that is coming in or should be coming in to help you get through this.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Are you doing any investing right now, Sasha?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Think about this, Sasha. If you can find $1,600 to throw at this debt every month out of your take-home pay, you can be out of debt completely in 24 months, worst case. Wow. Worst case. That would be great. If you just consistently, no matter what, like Jade said, you're being very intentional with that budget, throwing this money toward the debt, it's going to happen.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
And that's if you don't sell the car. So you can do this. I just hope we can show you the forest from the trees and show you there's a way out that doesn't involve selling your house, renting it out, moving in with mom. I would pause on that and see what progress you can make on your own.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Welcome back to The Ramsey Show. If you're enjoying the show, or if you ever have, do us a quick favor. Hit the subscribe button. Hit the like button. Hit the review button. Share it with a friend. All of that really helps us spread the word, get this message out to more people, and it works. The algorithm says, hey, let's show this to more people, and we can help more people that way.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
All because you clicked a button. So it means the world. Thank you for doing that. Alyssa is up next in Los Angeles. What's going on, Alyssa? How can we help?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Okay, what's the graduate program?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Awesome. How much is it going to cost?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Okay, so you would take all the money out and still have a deficit? How would you pay for the rest?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
It's not morally wrong. You'd have to change the beneficiary to you, which is totally legal. It's more just, you know, knowing that you're not going to have money for your kid when it comes time for college, unless you replenish this very quickly.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
And then you would cash flow the remaining years?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Great. So you got $10,000 a month coming in. That's more than enough to pay your bills. So what you're really saying is, can I use these funds and then replenish them or cash flow them, you know, three years from now, four years from now?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
I think that's a great idea. I mean, as long as you're not going to debt, you're cash flowing this. Now, you earmarked it for the kids. But if you're saying grandma and grandpa have another fund set aside, we're going to be able to cash flow this. We've communicated to the kids the plan. I just don't want them to go, I'm not doing missions. I'm going to go to a school that's $200,000.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
And regardless of what you say, I just want to make sure that we're all very clear about the near future.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Yeah. And you're pursuing a, an awesome graduate program. You know, if you were just going because you were like soul searching, that's one thing just to go to more school, but this is going to very much increase your income. Do you know by how much from what you're making now to what you would be making?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Awesome. That's a sweet upgrade. And the program seems reasonably priced for five years of school for $80,000. Is that what you're saying?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
I like this plan, Alyssa. Thank you so much for the call. This is great. I got a lot of, most of my family's in that. I'm the black sheep. I'm not going to do any of that medical stuff, but there are great fields. And the less debt you have, the more fun it is.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
If you can cash flow all of this, I'd go for it. Shirlene is up next in Orlando. What's going on, Shirlene?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Okay. My gut says I would consider refinancing before consolidating. I'm not a fan of consolidation because you're just moving the debt around and it hurts the debt snowball momentum.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
So I'm wondering, and Jade, I know we've got a partner over here.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
So a few things to consider, Charlene, is make sure that it's 100% free to refinance, that you can get a lower interest rate. None of these are variable, right? They're all fixed rate. They're all fixed rates. Okay, good. Make sure that you're not signing up for a longer repayment period. And all of that can just help you make a smart decision instead of just chasing a rate at all costs.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
But you guys can do this. I mean, is this like a three-year journey for you guys at this point to get out of debt completely? Yeah.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Preach, Shirlene. Beautifully said. We're cheering for you.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Are you staying on track with the Baby Steps? You can take a quick quiz to check your progress and get a personalized plan made just for you. Simply head to the show notes, click on the link titled Are You On Track With The Baby Steps? and complete the quiz. Chris is up next in New Orleans. What's going on, Chris?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
What's the pool going to cost? You got some bids?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Okay, that sounds about right. How much money do you guys have now outside of the emergency fund saved up for this?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Now everyone listening is mad at you. It's like, this guy's a humble bragger. Okay, how much do you have that's non-retirement that you can use on the pool today?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Are you going to have a pool house too? I feel like you've got to up it at this point. Now we're mad at you for not spending enough.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
You've earned it. You've earned it.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
People think, oh, those Ramsey people, they don't want you to have a good life. They want you to be frugal forever. I'm like, nope. You forgot the part where it said live like no one else. So later, you can live like no one else.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
That's right. Later for Chris is a lot earlier because he worked his butt off. My guess is they've had a high six-figure income for a long time, kept their lifestyle in check, and then put away the rest of that money.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Do you have $3 million, $3.5 million?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
I could have warned you against that. Let me do that, Jade.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Here's my version. Don't be envious. Be curious.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
I think we're ready to read some mean tweets. Like you do on your show. We're ready. It is fun. Yeah, that's half my job. It's just responding to the haters. And I'm like, what am I? I'm dragging myself into the mud with the pigs. You know, they're not going to know who's who in the mud pit at this point.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
It feels good in the moment. You know, it's like Taco Bell at midnight. You're like, this feels like a good idea right now.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
No one's ever commenting. Look at George's big guns. It's always, look at Jade's big gun. I'm sick of this, Jade.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Well, you mentioned the word tithe, which makes me assume that you are a believer, and this is a part of your spiritual belief, right?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
And it's going to cost you your peace, it's going to cost you your time, and it's going to cost you your money. And so I would just tread lightly before you pursue this for the next five years all to find out there's nothing there. And that's going to really add insult to injury here.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
On paper, you're like, I could save this much and get at it faster. They would want that, right? Here's how I look at it. Jade may have a different take. It's kind of like saying, hey, should I stop showering and brushing my teeth to save 45 minutes every morning? We'd all be like, no, don't do that. This is a part of your values, your routine, something that makes you who you are.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
And that's why I would say don't pause this. And you're talking to the math nerd who's like, no, on paper, it's amazing. And so I'm okay with it slowing down your debt progress because I don't see it as the make or break of you guys getting out of debt. I see it as a core tenant of your financial values being lived out. Yeah.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Here's what I would do, Caleb. This is and this is what I've done. I go, OK, how do I now create seven hundred dollars of margin? without losing that. That's a good thought, George. Do I need to work more? Can we cut other expenses? And that encouraged me to get creative without losing my values. And so I don't want you to gain progress, but lose peace. It's not worth the trade-off.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
So I would try to get all the evidence you can, do all the homework you can, get all the family members you can involved, get a copy of the will, get documentation of everything you can, all the communication with him or lack thereof, and then see what happens. But it might be worth at least reaching out to an attorney to see what the next step would be.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Beautifully said. Thank you for the call, Caleb. And it's a good reminder that tithing is not a baby step. If that's a belief you have as a believer, it's something you do throughout all the baby steps. And remember, you can always give more once you're out of debt. Hey, what are you still doing here? You know the rest of the show is happening on the Ramsey Network app, right?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
So you've got to jump over there to continue watching. You can download it for free. Just go to your app store, type in Ramsey Network. It's completely free, and I'll drop a link in the show notes to make it easy for you. So if you're watching on the app, you're in luck. But if you're watching anywhere else, this show is over for you. So jump onto the app and let the fun continue. All right.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Go on now. Don't make it weird. Okay, I got nowhere to go, so you need to go. Okay, bye-bye now. All right, this is getting weird over there, guys. What do we do?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Confession, folks, when life gets really hectic, I don't take time to plan my healthy meals. Some days I can't even remember what a vegetable looks like. That's why I keep Field of Greens handy. It's a superfood powder made with real fruits and veggies selected by doctors to help your heart, lungs, metabolism, and more. I mix Field of Greens with water, I shake it up, and I'm ready to go.
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
And to tell you the truth, I did expect it to kind of taste like compost, but it's really delicious. Plus, Field of Greens promises your doctor will notice your improved health or you get your money back. 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
Stop Obsessing Over Pennies While Ignoring the Plan
Nathan is up next in Bozeman, Montana. What's going on, Nathan? How can we help today?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Oh, my goodness. I'm so sorry. When did she leave?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Is this a very sudden thing or were there marital issues beforehand and you saw this coming?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Is the daughter living with you full-time?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Is that in her name alone, or do you want it too?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
You're on the hook for that one. If he doesn't pay, is he making payments?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Well, there's going to have to be some level of communication. I don't know if that's going to have to be through a lawyer or if you can't get in touch with her, but we've got to get this thing settled. Because there's no legal separation right now, even. You guys are still totally legally married?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Correct. And what's your question specifically today that we can help with?
The Ramsey Show
Stop Obsessing Over Pennies While Ignoring the Plan
Okay. What's the upward mobility look like in that field? Because that feels awfully low for a full-time job at a reputable facility.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Hey guys, this is Jade Warshaw. Listen, I get it. The student loan situation is bananas, but it's time to make progress, not excuses. So if your payment and interest rate have you treading water, refinancing could be the solution for you. Look, if I were in your shoes, I would contact Laurel Road today and get a free 30-minute consultation.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
You'll work with a student loan expert and you'll go over your refinancing options. Hey, for refinancing to make sense, you've got to check certain boxes like making a good income. And bottom line, Ramsey's advice is that you only refinance if you can get a lower rate or a shorter term. Remember, the point is to pay off debt faster. Maybe you just need to keep rocking the debt snowball.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
But if refinancing does make sense for you, Laurel Road offers low competitive rates and interest rate discounts are available for stuff like auto pay. Listen, you can't mess around with student loans. If you want them gone, you got to go hard. So go to laurelroad.com slash Ramsey to find out more and schedule your free 30 minute consultation. That's laurelroad.com slash Ramsey.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Laurel Road is a brand of Key Bank National Association.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Hey, what's up guys? Episode two of 90 Day Money Makeover is available right now on YouTube. This series follows real people as they take on the challenge of transforming their finances and their lives in just 90 days. In this episode, watch as they face new obstacles, celebrate wins, and push forward on their journey. And of course, I'll be walking alongside them every step of the way.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay, now here's a little sneak peek of what the new episode is all about.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
When you guys called into the Ramsey show, it was like, I think that we should push them harder. Baby Jonathan being born is a wake-up call for us to finally change. I can't go on another month.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
You want to pay off your debt. You want to get your time back. You want to get your home. Nothing usurps those three.
The Ramsey Show
Your Debt Should Make You Uncomfortable
gross money on it over time if it's the three thousand that you're using for your college i just throw it in a high yield like if you get ahead like say you've paid for the upcoming semester and you've also got three thousand set aside for the coming you know the next semester even after that i just throw it in high yield i would not invest it because the horizon is so short is that what you're asking i want to make sure i understand
The Ramsey Show
Your Debt Should Make You Uncomfortable
So yeah, to Rachel's point, combine all that together. And just at this point, you have $440 in your emergency fund. And so you've got another $550 to go. And then baby step one for you is complete. And then it's moving on to baby step two.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Okay. And what's your degree in and do you have a job? Like, do you have a job lined up?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Got it. Graphic design. And do you have a job lined up for graphic design?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Interesting. Okay. What do you want to pursue?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Okay. Well, just generally speaking, just from talking to you briefly, I think you're more overwhelmed by that and not having a clear prospect to pay off the debt than probably the debt itself. Because I thought you were going to say, oh, I've got, you know, $50,000 or $60,000 of student loans. $15,000, we can make that happen. You just need a job. Any job, really.
The Ramsey Show
Your Debt Should Make You Uncomfortable
So are you working at all right now? And if so, what are you doing and what are you earning?
The Ramsey Show
Your Debt Should Make You Uncomfortable
That's great. You said $35,000? Yes, ma'am. Okay, cool. And then what's your living situation like?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Okay, so there's no money. Are you paying them rent or anything, or are you pretty much kind of square there?
The Ramsey Show
Your Debt Should Make You Uncomfortable
So I think for you, the biggest thing is, once you graduate next week, let's move from part-time to full-time so you can get that full paycheck. And in this phase, it's good that you're not really paying rent because you can put the full force of your income on this debt. How much of it, of the $15,000, how much of it is the car versus the credit card?
The Ramsey Show
Your Debt Should Make You Uncomfortable
credit card it's very minor it's just 500 i'm mainly worried about the car okay so okay so we're 14 000 what's the car worth um about nine right now okay uh yeah i think with this i think you can buckle down and pay this off but you're going to be working like a madman yeah are you able to pick up shifts coming up here i mean we're two weeks from christmas and you're working at fedex are you able to do you know overtime
The Ramsey Show
Your Debt Should Make You Uncomfortable
step into the job market is not going to be the perfect job it's not going to be the thing that like you know you've always wished for in the dream job you're right out of college so remember kind of just like take what you're going to get yeah that's right as well and i think for you uh i love what rachel said and i want to take it even a step further with your car you decide you say you know what i'm tired of being in debt i want this thing paid off in six months
The Ramsey Show
Your Debt Should Make You Uncomfortable
And when you say that, then reverse engineer it and say, okay, what does that mean for me job-wise? How much do I have to work to make that happen, right? And that way you're the one in the driver's seat and you're the one that's in control of this as opposed to I make this and it's going to take me X amount of months making this money. Does that make sense?
The Ramsey Show
Your Debt Should Make You Uncomfortable
So kind of run it back and that's gonna force you to work probably harder than you've ever worked before. And as far as the graphic design to mechanic thing, I think that you, I don't know what your plans are, but I feel like you kind of put that on hold for a second because you've just spent money on an education. You've just spent time on an education. Work for a while, get this mess cleaned up.
The Ramsey Show
Your Debt Should Make You Uncomfortable
And then during that time, research what it looks like to become a mechanic, as Ken Coleman would say, like get in that proximity, follow some people around, but don't just jump and make that choice before you've done detailed research.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Yeah. The moral of the story for me is of all the types of callers that call in that have debt to pay off. If you are single, if you do not have children, and if you are still living at home, you are in the best. Because you've got time. Like, time is at your disposal. You know, you don't know true tiredness yet. So, like, you can really get in there and get tired working. Yes.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Listen, for me, like me myself, because I'm not in debt, I have purchased gifts for the kids and my husband and I have done that. I've not fully finished with my husband, but this time of year, you know, This is the time of year where it really becomes a hot button topic because obviously we're a financial show. We want people to make their way to peace.
The Ramsey Show
Your Debt Should Make You Uncomfortable
And I said it last year, but posted it this year. A very controversial statement. Controversious, I like to say. And I think I was on with you. You were. Right? So before we talk about it, let's show you the clip so you see where we're coming from. Roll tape. You don't have to buy gifts for adults. They're grown. They have their own money, their own job.
The Ramsey Show
Your Debt Should Make You Uncomfortable
If they want a new blender, they can go buy it. They do not need you to go buy them slippers. Like they can buy their own slippers. I said what I said. Rachel, I said what I said.
The Ramsey Show
Your Debt Should Make You Uncomfortable
That's right. Did you get hate from it? I got so much hate. And here's the thing. Don't don't don't misunderstand. Like the reason we're talking about it is not like to try to qualify it because like I'm drinking water. I'm fine. It's for you guys because there are so many people. Rachel, I always read the caption because you need to see more. And I did explain.
The Ramsey Show
Your Debt Should Make You Uncomfortable
I was like, here's what I'm trying to say to you. Yes, I'm not saying adults can't have gifts. I'm not saying it's not nice to receive a gift. I'm just saying that if you're in this situation, I'm giving you permission to back away from the spending because we don't need them. You know what I'm saying? Like I will get by if you don't buy me a precious moments figurine. You know what I'm saying?
The Ramsey Show
Your Debt Should Make You Uncomfortable
I will get by if you don't buy me lotion from Bath and Body Works. I don't need your $15 gift. Thank you. It got 10.8 million. Yes, 10.8 million of you. Not all of you, but a lot of you were concerned with Jade. This sounds a little like Grinchy. This sounds like a little Scrooge. It's not that. It's for people who are struggling with debt. I used to be one of those people.
The Ramsey Show
Your Debt Should Make You Uncomfortable
And I was the person who continued to buy gifts on credit cards. And when you're broke... And I'm going to say this lightly because I think people will know what I mean. When you're broke, you buy broke people gifts. You know what I'm saying? Like you go to the dollar store and you rack up and you buy like 10 and $20 gifts, but I'm like, you can't afford it.
The Ramsey Show
Your Debt Should Make You Uncomfortable
And that $10 gift is not breaking them free. They're okay without it. But it is causing stress for you because now before you know it, you spent two or $300 that probably you should have put towards a collections bill or probably that you should have put towards paying off your car. And that's what this whole thing is about.
The Ramsey Show
Your Debt Should Make You Uncomfortable
It's about changing our behavior and not feeling pressured to spend our money. That's right. And some of you are like, well, Jade, I don't feel pressure to spend. It's my love language. I love giving gifts. And if that's you, fine. You don't feel the pressure. But now let's just look at what is it wise for us to do? Is it wise for me to spend in this type of way?
The Ramsey Show
Your Debt Should Make You Uncomfortable
And I'm not saying don't participate. I think Christmas is great. It's the most wonderful time of year. I think there's a way that you can participate. And here's what I would say, Rachel. And this was in the caption, if you had read it, okay? In the caption, I was like, make a very short, very prioritized list. I would start with kids, like nieces, nephews, your own children, right?
The Ramsey Show
Your Debt Should Make You Uncomfortable
And buy for them first and use cash. No problem. I'm not mad at that. And then if you have some adults like VIP only, I would say they're next. For most of us, it's our mom and dad, or maybe it's like our sister and brother. But I would not get too crazy with this. If you're shipping packages across the US, it's expensive. Totally. You can't afford that. Yes.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Somebody needed to tell you that you couldn't afford it. And it's not out of shade. It's really out of love because I don't want you to be further in debt. And I think that most of us don't do this, but we probably should, Rachel. When the holidays start, like when... Halloween ends. Right.
The Ramsey Show
Your Debt Should Make You Uncomfortable
We need to stop and go, OK, what was it about last year's holiday season that went well and what was it that didn't go well?
The Ramsey Show
Your Debt Should Make You Uncomfortable
And kind of set that intention ahead of time. And most of us will go, man, I was so like overextended or man, I overspent and it really didn't have the effect I thought it was going to have. Right. Right.
The Ramsey Show
Your Debt Should Make You Uncomfortable
yes and we can go back and say you know what i made all those freaking side dishes and spent all that money and we would have probably like half of it didn't even get eaten right and you can see the ways that you spent your money that didn't make a huge impact and i think it's the same way with christmas
The Ramsey Show
Your Debt Should Make You Uncomfortable
There's so many gifts and it's like, you know, the kids probably would have been just as happy. Like I could have cut back a little bit and they would have still been happy. Absolutely. For sure. For sure. So there's some moderation that has to be going on here, Rachel.
The Ramsey Show
Your Debt Should Make You Uncomfortable
I think you're right. At the end of the day, everybody's grown. You can spend your money on what you want to spend your money on. I mean, that's the that's the cold, hard fact. But if you want our advice and if you're a person who's trying to get out of the debt, the point is you have permission to back away. Like you don't have to opt in to all of the things that the holidays want you to opt in.
The Ramsey Show
Your Debt Should Make You Uncomfortable
And we're just trying to give you that out. That's really what it amounts to.
The Ramsey Show
Your Debt Should Make You Uncomfortable
So what does that leave you? What are you after everything's kind of come out in the wash? What does that leave you with? And what are you still trying to sort out?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Oh, okay, so it's about to be 12 months of no payments. Right. And have you had contact with anybody about this, or is this you just looking at, you know, the statements that come in the mail or whatever?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Okay, so you're going to have to call them up, and you're going to have to find out what's going on with this, and it's not going to be fun, and I know that you're dreading it. You probably have a pit in your stomach now, but you're going to have to go, okay. Where are we in this process? Is there anything that I can do to pull it back from foreclosure? What would I have to pay?
The Ramsey Show
Your Debt Should Make You Uncomfortable
And then once you find that out, you have to look at your own finances and go, can I even pay this? And then there's part of this. I don't know if you want to hear this, but what you're describing sounds like absolute like H-E double hockey sticks. Do you want the house or do you want to find a way to sell it, let the bank sell it and move on with your life?
The Ramsey Show
Your Debt Should Make You Uncomfortable
So you owe 320, it's worth 620. For, usually it would be like, okay, can I, once I can get back on track with the payments, let's come up with a payment plan so we're back on track. And then... At that point, you're paying the mortgage and then you can decide if you want to sell it or not.
The Ramsey Show
Your Debt Should Make You Uncomfortable
The question is, let's pretend I mean, let's pretend like I'm the servicer and I say, all right, Allison, you're going to have to pay a payment and a half for the next two years. Let's just I don't know what they'll tell you. Could you even do that?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Oh, gotcha. Okay. So are you a very high earner?
The Ramsey Show
Your Debt Should Make You Uncomfortable
I am 58. Before we get off, I want to set you up with a coach to help you go through all of this because I think that there's a lot to go through. You probably, with this all said and done, you probably have the money possibly to keep this house, but I don't know. It's hard to know because it sounds like there's a lot of secrets and a lot of skeletons and a lot of closets.
The Ramsey Show
Your Debt Should Make You Uncomfortable
And that's just sitting in savings. And then how much debt do you have?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Well, the good news is we'll give you a plan so that you feel like you're going in a direction and you feel confident about what that direction is. Also, the good news is you're going to be out of debt basically today if you follow our plans by tonight.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Listen, you've done a wonderful job saving and it sounds like you weren't really sure what direction to go. So you kind of just try to do everything. And the way we teach kind of narrows it down and you do one thing at a time for a period of time and then you kind of are freed up to do more.
The Ramsey Show
Your Debt Should Make You Uncomfortable
But for you, the first step, and you've already covered it, we always say the first baby step is you just need $1,000 saved. You got that. So check that one off the list. The next step is we take... any additional savings that we have, or we work really hard to pay off our consumer debt. And for you, you have the money to do that. So that would be baby step two, pay off consumer debt.
The Ramsey Show
Your Debt Should Make You Uncomfortable
That would get the green check. That's right. And Katie, what is the 24,000? What kind of debt is it?
The Ramsey Show
Your Debt Should Make You Uncomfortable
That's not very good. That's what I thought. I mean, if I were you, my guess is you're not able to just do a traditional Roth IRA, but I might start with backdoor Roth IRA and I might ask a smart investor pro what my what other better options there are, because I wouldn't want to be investing primarily in bond funds.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Listen, I think for personalities like you, when we reframe what security and safe is, I think they thrive even more because So if you're a person who loves being secure, being safe, you're going to love a debt free life because debt really does equal risk because using credit cards, that's a form of debt. It equals risk because for most of us, we go about our life, right?
The Ramsey Show
Your Debt Should Make You Uncomfortable
You put, maybe you put shopping on the credit card, maybe you take out a car loan, But if you were to lose your job, suddenly you feel the risk of that because you go, oh my gosh, I don't have the income I used to have coming in and I have this car payment due. I have to pay the credit card off. And suddenly we feel the risk of that weight that we've been carrying in debt, right?
The Ramsey Show
Your Debt Should Make You Uncomfortable
So if you're a person who says, no, I love security, then paying off your debt truly is ultimate security. And then turning around and saving up three to six months, which is the next step, baby step three, having that three to six months of cash sitting there that's actually your money and It's not money that you owe to credit cards or car notes.
The Ramsey Show
Your Debt Should Make You Uncomfortable
That is the ultimate form of security because then you can say, no matter what happens, I'm prepared for a storm. If I lose my job, I know I have the money to keep everything going for the next six months. If an emergency comes up, you know, the water heater goes out or something happens with HVAC, I have the money that I can cover it.
The Ramsey Show
Your Debt Should Make You Uncomfortable
So the good news is you have that. Even after you pay off the debt, I mean, that still leaves you with a little over $20,000. So you could effectively say, okay, now I've got my three to six months. And then to answer your further question about like, do I invest this? What do I do? That three to six months, you just keep it in a high yield savings account. It's there.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Like we said, it's just that fully funded emergency fund for when you need it. And then above that, technically, and I know I'm not going to dig into this too much right now, but it sounds like after that, your household is debt free. Your household has three to six months of expenses.
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Your Debt Should Make You Uncomfortable
Now you could start to invest in the way that we'd say to do that is really just taking 15% of y'all's combined income every single month and putting it towards, yeah, your 401k, your Roth IRA, that sort of thing. And it just becomes a kind of set and forget rhythm for you to invest.
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Your Debt Should Make You Uncomfortable
I think that's something you need to work towards.
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Your Debt Should Make You Uncomfortable
Good. I think you should work towards it. I mean, the truth is for a couple of reasons, a just practically when both people are working together to accomplish one goal, you go faster and there's not much confusion. It's, this is what we're working towards and we're all pushing towards that same thing. And then there's just the, the relational spiritual side of you're married.
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Your Debt Should Make You Uncomfortable
And so you're one in all of these other areas.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Interesting. So is that why you like it separate because his feels overwhelming to you?
The Ramsey Show
Your Debt Should Make You Uncomfortable
I think so, because don't get me wrong. I hate debt and I don't like any amount or form of debt. But I was, again, expecting for you to say, like, he's got $200,000. I was expecting something way more astronomical. And when you told us, hey, yeah, he's got $18,000 of debt. I kind of just was like, oh, OK, cool. Like, we can pay that off. And he's working, right?
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Your Debt Should Make You Uncomfortable
So a truck and a car? Sorry, the truck and the boat. Okay, truck and the boat. So we're $28,000.
The Ramsey Show
Your Debt Should Make You Uncomfortable
You know what might make it less scary if I were you? I'd calculate up all the monthly payments. I'd calculate what you're paying. in car payments, what you're paying in credit card payments, what he's paying in credit card payments, what he's paying in boat payments, and what you're paying in truck payments.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Add up all that money, and when you see that, that you're gonna have that back every single month, I think that's gonna make you feel less scared. Because that's a hefty chunk.
The Ramsey Show
Your Debt Should Make You Uncomfortable
So in essence, you're saying you don't need all of the money that you're being paid. And so you want to throw it towards another goal. That's really the question. It's not really the difficulty of budgeting it, right?
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Your Debt Should Make You Uncomfortable
OK, so just again to clarify, are you having trouble budgeting? Like, are you are you ever finding that you don't have enough money?
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Your Debt Should Make You Uncomfortable
I love that. Essentially, you're saying I have enough money for the line items in my budget, but I have an overage. And for you, the overage, you feel like you're at the point that you want to save for a down payment. Yes. And so then at that point, for Rachel and I to decipher is whether you're at that point financially, if that is really the best move for you or not.
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Your Debt Should Make You Uncomfortable
So our first questions would be, do you have any debt?
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Your Debt Should Make You Uncomfortable
OK. So the 60,000 you got, you know, you set the taxes aside. That's fine. What portion of that would you consider a three to six month emergency fund?
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Your Debt Should Make You Uncomfortable
okay so i'd set aside what you would consider six months of expenses and that's kind of separate and then aside from that yeah you could consider the rest this is my working pile of debt payment money um and then for you and just to clarify for anybody listening so technically you're on baby step 3b and step four and what you're doing is totally fine if you say i'm not ready to go all in on 15 investing like we'd say because you're saving for a down payment that's totally fine
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Your Debt Should Make You Uncomfortable
But good on him for looking deeper and seeing what those investments are and what their track record have been, as opposed to just saying, this looks good, I'll check the box, right?
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Your Debt Should Make You Uncomfortable
Okay, great. I love that plan. I think that that sounds wonderful. The only thing that I would caution you about, and this is something that you, if I were in your shoes, I'd work it into the plan now. When you have that house, like once you buy the house, your expenses are going to go up is my guess, right? I don't know what you're doing now. Are you renting?
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Your Debt Should Make You Uncomfortable
Okay. So calculate, okay, is my payment going to go up or down? Does that affect my emergency fund? Does that affect what I would need to make things sustainable over three to six months? Do you see what I'm saying?
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Your Debt Should Make You Uncomfortable
Way to go. Uh, I liked what you said about the automating. Cause I think that's very, very important.
The Ramsey Show
Your Debt Should Make You Uncomfortable
So probably now, since they're adult children. Yeah. I mean, let's think about this. If they're in your home, like if you have adult children that live in your home, I would say that it's some of your business because they're still in your living space, right?
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Your Debt Should Make You Uncomfortable
But if they don't live with you, if they are out on their own and in their life or in their marriage, I'd say that it's none of your business unless they ask for your help. That's right.
The Ramsey Show
Your Debt Should Make You Uncomfortable
But it goes both ways because a lot of times kids try to get into the parents' business too. That's so true. Yes, that's so true. I don't like the way my mom and dad handle their money. You know what I mean? People call in with that all the time.
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Your Debt Should Make You Uncomfortable
All right. Today's question comes from Carissa in North Dakota. She says, should a couple getting married have guests pay for their plate at the wedding to help with costs? I'm afraid we won't get enough money in wedding gifts to pay for the reception. Oh, so it's you. You're the one that wants to charge. She was asking for a friend at first. I know, right, right.
The Ramsey Show
Your Debt Should Make You Uncomfortable
So I think that's like, there's a difference between tacky and hacky. This is tacky.
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Your Debt Should Make You Uncomfortable
Here's the thing. Like you have to set your budget based on what you can afford to spend on the wedding. Not at, don't treat it as an investment and say, well, I'm going to get, if I spend this, I'll get the money back in gifts. Right. Right. Because that's what she's saying. She's saying, I'm afraid we won't get enough money in wedding gifts to pay for the reception. Right.
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Your Debt Should Make You Uncomfortable
Well, that means you're basing it off of future money that you don't have now. That's right. So you've got to set the budget of what you can afford based on what you can afford today and let the gifts be the gifts like you can't.
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Your Debt Should Make You Uncomfortable
Yeah. Otherwise, just do something less expensive that you can afford. And that way there's no like awkward.
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Your Debt Should Make You Uncomfortable
I have a problem with it. I think that's a little weird, too. I have a problem with I'm like, let people give you out of the now. Don't get me wrong. Like a baby registry. Let's let's let's break this down. If somebody's having a baby and they make a baby registry, like buy them something off the registry. Yeah, totally. Don't just go off. Like they've said, here's what I'd like. Yes.
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Your Debt Should Make You Uncomfortable
That I'm with. But when people just want money and they're telling you don't get me anything, just give me money. I'm kind of like...
The Ramsey Show
Your Debt Should Make You Uncomfortable
I think the digital quality of it, and I might feel old-fashioned, I also think the digital quality of it, like Venmo me. I'm like, can I give you a nice, crisp...
The Ramsey Show
Your Debt Should Make You Uncomfortable
What does the audience say? Venmo or let them get you a gift? Oh, good. Okay. Everyone say no. No to Venmo. Okay. Okay. Okay. Good. Good. I'm glad we're all on the same page. We're all old together.
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Your Debt Should Make You Uncomfortable
Okay, so in your mind, what's the difference between savings and emergency fund?
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Your Debt Should Make You Uncomfortable
And is this your starter emergency fund, like your $1,000, or are you talking about three to six months? Okay.
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Your Debt Should Make You Uncomfortable
Okay. So the way we would teach is if you're in baby step one,
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Your Debt Should Make You Uncomfortable
thousand dollars saved and then everything else that you have money saved would go towards baby step two which is paying off your debt and to answer your question that thousand dollars i would not keep it in my normal checking account because you might accidentally spend it i would put it in a separate savings account um still keep it very liquid right it should be something that you can get to if there's an emergency don't put it in a cd or don't put it in something that you can't get to but i do think that there's value in getting it out of your normal checking account um
The Ramsey Show
Your Debt Should Make You Uncomfortable
into a savings account, not maybe, I don't like when there's a debit card attached to it. I like when it's just there. And if you need to e-transfer over, whatever.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And I might consider, you said you'd probably go tit for tat on the house. I might consider a downgrade if you can to make this less burdensome on you financially.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
I also think there's something about this that because you're getting close, you're feeling like I want to go faster. Because if you are, let's say just an arbitrary amount, let's just pretend that you owed a certain amount on your mortgage and it was going to take 10 years to pay off. You wouldn't just suddenly be like, you know, for three years, I just want to save $1,000 and invest it.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
You wouldn't feel the need to do that because it wouldn't have caused you to cross that finish line any sooner. And so when you just kind of take that haste out of it, you realize, yeah, I wouldn't do that in any other circumstance. So I'm not going to do it right here either.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
OK, so you're saying that she's going to have this temporary time where she's job hunting and you want to be able to kind of float those expenses.
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Money Isn't the Problem—Your Behavior Is
Where do you think that comes from? It comes from somewhere.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
What do you think would cause you to get back to that point? What do you identify in your life that you go, if that falls out of place, I'm right back there?
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Money Isn't the Problem—Your Behavior Is
and that took away from my savings and i'm paying that off now and i'm just i guess a health so it's your health issues my job is very stable okay and you're walking through the baby steps now so obviously that's on a quest for you to find that that piece or that stability you're looking for what baby step are we talking about baby step three or are you talking about baby step like tell me more exactly about where you're at in the baby steps
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Money Isn't the Problem—Your Behavior Is
But this is not until after I've gotten married. Right.
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Money Isn't the Problem—Your Behavior Is
That happened in the last two years. Okay. And tell us about what's in savings. Yeah, what George said.
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Money Isn't the Problem—Your Behavior Is
So you've got this 10,000 in medical debt. You've got plenty of money that you could pay it off today and still have $25,000 saved. Okay. I think what could help with this, Dr. John would say like facts are our friends. So I feel like what could help with this are a couple of thoughts.
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Money Isn't the Problem—Your Behavior Is
A, if health is really the thing that you think could knock you off your rocker, then for me, if I were in your shoes, I'd go, I always want to have
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Money Isn't the Problem—Your Behavior Is
my out-of-pocket max for the year like I just always want to have that saved I've had these back surgeries I'm a truck driver this stuff could crop up again and so for me having that in place that should be the piece you need because you know hey no matter what happens this year this is the max amount that it could cost me and I have that here it's ready to go what do you think about something like that that makes sense yeah I think that's it I do get I do actually do that because
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Money Isn't the Problem—Your Behavior Is
Yeah, the good news is you have a like there's there's a very good reason for why you were feeling some some fear. And there's a really good reason about why that exists in you. The key is you can't let a good reason become a bad excuse. Right. You can't let it become an excuse for you to do what you know is really the next right smart thing with your money. And that's where we're at right now.
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Money Isn't the Problem—Your Behavior Is
I mean, you clear out this $10,000 in medical debt, you're completely debt free. Now you can actually move forward in life. Then you've got your $25,000 saved and you add a little bit more to that to make it the six months you need it to be, plus your deductible, whatever that is. And now you're open to start building wealth.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And I think that once she starts building wealth, George, that's when she's really going to see a lot of this insecurity fade away.
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Money Isn't the Problem—Your Behavior Is
Yeah. Yeah, I need another surgery for it. And it's so true. What George and I are saying, it's so true. If you can embrace this, you can finally go forward. And the moment you go forward, this is going to be in your rear view so quickly.
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Money Isn't the Problem—Your Behavior Is
Once you do this, and then you're able to move on to baby step four, in a year's time, you're going to look back at this and go, oh my gosh, I was so stuck and I didn't even realize it. Because that 10 grand is going to feel like, why was I so... Up in arms about that. So I think it's just a matter of you pushing go.
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Money Isn't the Problem—Your Behavior Is
And now that George and I have kind of clarified that you're a lot safer than you think you are, then.
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Money Isn't the Problem—Your Behavior Is
Yeah, I bet they would. But, you know, George, I feel like we run into that time and time again where it's... We talk about the three to six months of expenses and that's good. But I feel like the medical component is a part that people worry about. And it's like, yeah, if you can just gather the numbers, because sometimes people think, oh, this happened.
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Money Isn't the Problem—Your Behavior Is
I had this huge medical bill and I never want that to happen. But it's like gather the numbers, gather the facts. And you can set yourself up to be prepared. No one knows everything that's going to happen in a day, right? But you can be prepared and know, hey, if I have something unexpected happen, if there's an emergency, yeah, I had the $5,000 to cover the ambulance.
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Money Isn't the Problem—Your Behavior Is
Or yes, I have the worst happens. We've got the out of pocket max to cover our family. If all of us fall off a cliff.
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Money Isn't the Problem—Your Behavior Is
She's not bringing any into the relationship?
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Money Isn't the Problem—Your Behavior Is
What do we mean by that? You tell me. I will tell you. Have you ever had one of those moments where something pops up and it's like, I should know this. And you don't want to admit that you don't know at this stage of being 41 years old in your life.
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Money Isn't the Problem—Your Behavior Is
Exactly. And so I feel that this is the type of subject that warrants the asking for a friend kind of preface. What is a tax deduction, George? And what is the difference between that and a tax write off? I'm asking for a friend because I know the answer.
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Money Isn't the Problem—Your Behavior Is
Mm-hmm. And you don't add to it. You don't take anything from it.
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Money Isn't the Problem—Your Behavior Is
It's really the exact opposite. It's the government returning back to you the money that you overpaid to them throughout the year. And, George, I think what makes it worse is, so this is basically when you've set the amount that's going to come out of your paycheck, right? Yeah. you've set it too high. And so at the end of the year, Uncle Sam says, hey, thanks for letting me hold your money.
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Money Isn't the Problem—Your Behavior Is
You've given me too much. Here is it back. And by the way, I'm not going to pay you interest on you letting me borrow that money all this time.
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Money Isn't the Problem—Your Behavior Is
That's good. Okay. What is a tax credit? Oh, you know what? When we go back, let's also talk about filing it. an extension. So if you're not ready to pay, a lot of people think, well, I filed the extension. I don't have to pay. That's not the same thing. You still have to do what George said.
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Money Isn't the Problem—Your Behavior Is
Okay. Yeah. To George's point, I like the fact that your wife has identified something that she's passionate enough about that she would do it for free, basically is what she's saying. However, like George said, you guys are just getting started. This is the time to really get your feet wet and try things on that you're getting paid for to see if you like it, if you don't like it, to grow.
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Money Isn't the Problem—Your Behavior Is
Even if you file an extension, you still have to either set up a payment plan or go ahead and pay the taxes.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
That's right. So that's just worth mentioning. Okay. What is a tax credit? Okay. So earlier we talked about like a tax deduction. A tax credit is different. This is when they lower your tax bill dollar for dollar by subtracting the amount of your credit from your actual tax bill. So this is like, I know what my taxes are. I'm going to have to pay, you know, $2,000.
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Money Isn't the Problem—Your Behavior Is
And then something comes up that's a credit. And it says, hey, you've got this $500 tax credit. Now you'll have to pay $1,500. And it's kind of like, think of it at the end. It's like a coupon.
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Money Isn't the Problem—Your Behavior Is
And I agree with George. I feel like if she wants to volunteer, there's a time and a place for volunteering. But there's also a time and place for going out and earning. And that's just my opinion. You guys are going to do what you want to do. And, you know, that's that's our two cents about it. Let's talk about the money a little bit more.
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Money Isn't the Problem—Your Behavior Is
So your biggest thing is you were concerned that there would be a period of time where she wouldn't be able to work. George has kind of cleared that up. And you have said that you can cover all of you guys's bills with your paycheck and you can be a one paycheck household. Have you verified that with every dollar budget?
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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
Let's just pretend for a moment, because here's where my brain is going. This might be a dead end. But if you sold that rental, what would it bring?
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Money Isn't the Problem—Your Behavior Is
So you'd get $320,000 on it. And then what do you owe on your personal residence? I'm just curious.
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Money Isn't the Problem—Your Behavior Is
Is there a world where you sold this rental, took some of the money and paid off your personal house, and then took the rest of the money and bought something, like you said, bought a condo or an apartment in cash for mom. That's also an investment, but now you're not having a monthly payment on it. Mom lives there comfortably.
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Money Isn't the Problem—Your Behavior Is
And then when the time comes for mom to go to heaven, now you sell this condo and it's still been invested in real estate and you still make a spread. Have you considered a route like that?
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Money Isn't the Problem—Your Behavior Is
Can I, can I make a suggestion? Here's another suggestion. We're brainstorming at this point. Cause I'm going back to the wife, the wife working. So this is the children's ministry.
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Money Isn't the Problem—Your Behavior Is
Can I ask a little bit more about the nature of your disability? If there was something you wanted to do for work to earn an income, is there something you could do that doesn't affect your disability?
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Money Isn't the Problem—Your Behavior Is
And when I said employment, I'm thinking of things, okay, and again, only you know this, so I'm not trying to creep into your mental –
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Money Isn't the Problem—Your Behavior Is
Right. So there's two ways we can approach this. I wanted to ask, because there's two ways. It's A, how much can you make before you mess with the benefit? And B, with your PTSD, is there anything that you would want to do to make a living? And I'm thinking of things like it might not be the typical job that you show up for in person, right? It might be something that is more online based or...
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Money Isn't the Problem—Your Behavior Is
That doesn't require you showing up to an office building. So those were the kinds of things that I was thinking of. Only you know your medical history and what you're really capable of, but those are the things that I'd be exploring.
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Money Isn't the Problem—Your Behavior Is
With what you're saying and based off of what we know about it and what we've heard you say, it feels like the right thing to do is pick something that you're making at least $7,000, $10,000, where you can then turn around and just throw that into a Roth IRA. And if you make anything above that or if you'd like to throw some of your disability in there, you're throwing that into a brokerage.
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Money Isn't the Problem—Your Behavior Is
Yes, exactly. Like you could literally be a copy editor. You know what I'm saying? That's something you're doing from home. It's requiring you reading. You're working at your own pace. And I don't know if that's even within your skill set, but you get what I'm saying. It's not the typical rules of the work environment that might not work for you.
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Money Isn't the Problem—Your Behavior Is
Question. Here's a thought, because I'm thinking you guys, you know, you get married. Maybe you'll start to plan a family. Maybe that's the time for her to volunteer her services and maybe she can get free child care.
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Money Isn't the Problem—Your Behavior Is
Well, if the work goes down in the winter, wouldn't you just pick up a different type of work? Kind of like a teacher in the summertime?
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Money Isn't the Problem—Your Behavior Is
But then maybe during this phase, this is the phase that you guys are like, hey, knowing that that phase is coming, this is the phase where we're buckling down, we're working, we're saving up quickly so that we can get this house and all this stuff in order so that we can do that phase of life. And that phase can look like that. Just an idea. Just me brainstorming from the other side of the fence.
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Money Isn't the Problem—Your Behavior Is
Okay, today's question comes from Beth in New Jersey. My husband and I have followed the baby steps for 15 years. We're on baby steps four and five with a paid off house.
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Money Isn't the Problem—Your Behavior Is
Okay, we'll get back to that. We have three kids with the oldest starting high school next year. We would love to go on an international vacation in 2026 while our kids still live at home. We are in the process of saving up $30,000 to pay cash for that trip. My husband recently saw a clip with Dave ranting about people who take lavish vacations and how he thinks we are budgeting too much.
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Should we vacation in the US at a lower cost or is the international trip feasible as long as we're paying cash? In other words, is it okay for us to start living like no one else? All right, I love this question because there's many things to address. All right, first off, you're in baby step six. Well, seven, if they have a paid-off house. Yeah, you're in Baby Step 7. That's the confusing part.
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Money Isn't the Problem—Your Behavior Is
You've done excellent. Bravo and brava. That's really, really good. And I would say, yes, go and start living like no one else and pay cash and send us a postcard and call in and tell us all about it.
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Money Isn't the Problem—Your Behavior Is
No, I mean, I want to go back to the Dave rant. I think I can be on, I can't speak for Dave, but we love when you guys are winning with money and we love to see you guys live like no one else, not just in the, the penny pinching live like no one else.
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Money Isn't the Problem—Your Behavior Is
We love to see you guys get to the other side of living like no one else where you can buy the car and you can take the trip and you can, you know, upgrade the house or build the house, all of that stuff. Like I,
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Money Isn't the Problem—Your Behavior Is
I feel like a lot of times people get caught in the baby step three Ramsey stuff, the baby step two Ramsey stuff, and they forget about the baby step seven and baby step six Ramsey stuff, which is really, really exciting and really, really fun. And yeah.
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Money Isn't the Problem—Your Behavior Is
hang out on this for a little bit while okay so earlier i can't stop you earlier today i was on instagram live taking some questions and it came up uh the juxtaposition between living like the joneses um and and they use the two interchangeably it was like hey yeah i have a problem with people living like the jones keeping up with the joneses slash showing their income and i was like wait a minute these are two different things and this is something to talk about so yeah
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Money Isn't the Problem—Your Behavior Is
The way we teach, there is a time where you are cutting back, you're scaling back, you are doing all these things so that you can pay off debt. And when you do that, it shows, right? When you trade in the Lexus for the Camry, it shows. When you pick up a side hustle, it shows. When you stop buying new clothes, like all of that, there is an exterior that we all see or the people around you see.
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Money Isn't the Problem—Your Behavior Is
And it's like, oh, it seems like they're cutting back. On the other side of that, when you get to a certain point in the baby steps, four, five and six and beyond, seven, then there's a part of it that now your money is kind of taking the shift. You have more of it. You have more at your disposal anyway in margin.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And I don't think it's a negative thing if those positive things now begin to show, oh, Bob is doing well. It looks like he, I saw on Instagram, he took a nice vacation with his kids. Or I saw, you know, Steve bought a, you know, A cool car? I don't know if you could say it. The motorcycles that go really fast. Anyway, like a Ducati. But there's a word for it. I didn't say it.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
we're throwing some money in we're keeping it low budget but thankfully because of her church we don't have to pay for a venue so it'll be there that's good okay yeah my only suggestions are the ones i gave plus just being really clear about really what's going on with the wedding who's paying what what you guys are paying setting that budget and then from there on i think you guys are good to go you'll be okay i just think it's going to really expedite your progress on this home if she's working for at least the first year or two until you guys have a kid
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
You know what I'm talking about. They bought a new toy. It's great. But there's some folks... who feel like it's a bad thing for it to show when you're doing well with money. And I'm like, why was it okay for it to show when we were struggle slices, but it's not okay to show when we're doing well? I think it's great.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
I think that if you're winning, here at Ramsey, this is one of the few places where you can be like, woohoo, hey.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
yes it's great share it don't try you don't have to try to hide that you're doing well you really don't this should be something that you celebrate and truly it gives hopes to other people the people who have the right attitude now if you're if you're bragging about it and making others feel less than for it that's different forget about that but the people that i know that have followed the plan they're not that way in fact they're whispering when they're on the debt-free stage they go and by the way we're baby steps millionaire
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Is it you feel bad or you're wondering what we think about it?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Yay. That's great. I mean, here loud and clear, we don't have a problem with somebody taking on a mortgage for their home when it's done within the proper parameters. Right. And you've heard, you may have heard us say that, right? We don't want the payment to be any more than 25% of your take home. We recommend a 15 year fixed rate mortgage.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And we recommend you putting, we would love if you could put 20% down on a first time home buy, right? That's kind of our parameters. But the number one way we love to see people buy a home is in cash.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And so if you can do that and your time, your horizon on this is super short.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Well, what'd you buy it for and what's it worth today?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
What's the payment on this? 980. Oh, mama. Okay, so let's let's drill this down even further with what George said. Because a lot of people when we say that it's kind of a head tilt for them of like, I thought you guys were the not no debt people. If you do this, if you say, well, let me take a loan for the 25, then your payment is going to be it's going to go down significantly.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So that frees up some margin for you. And at the end of the day, yeah, it's better to owe 25 than to owe 51.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Even more reason to get out of it because there's a co-signer on it.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
No, I think what you're asking is that's a quandary that a lot of people find themselves in. They're like, I hear what you guys are saying, like get out of the car payment, but how am I supposed to when the car is worth less than what I owe on it? And so what you're asking is a very normal question that we get all the time.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And yeah, it can feel disorienting, but that is what George said is exactly right. the solution. And you're at the end of the day, you're still, you still have debt that you have to pay off. But like I said, 25 is better than 51. And now you're going to have more margin freed up so that you can pay that 25 off very, very quickly.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
No. But what's caused your... I mean, there's a part of this that we have to ask. I mean, because typically, if your credit is poor... Right. And a lender says this is so bad. We're not going to give you the loan, which is really I mean, I'm not trying to insult you, Latoya, but it's really saying something if some of these lenders won't give you the money.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
So my question is, what's happened in the background that's caused this to happen? And what are we doing to change it?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
financially but jay this is one of the most common things we've been seeing the last few years is car prices have skyrocketed and then you see oh the depreciation really hits let's talk about it i mean loss of value one minute after you buy a car like the minute you drive it off if you buy shiny brand new car let's say you spend thirty five thousand dollars it loses somewhere between nine to eleven percent of its value the very moment
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
it you drive it off so basically you're throwing consider driving off the off the lot and then opening opening up your wallet and pulling out thirty five hundred dollars and just throwing it out the window that's 100 of what you're doing when you do and then fast forward one year later so 12 months in in that same car sitting in your driveway has lost around 20 of the value maybe more and then and so that's a 7k loss
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
That's a lot of money. That's a lot. And then after five years, you can expect your new car to lose up to 60% of its value. After driving it around for five years, most cars lose about 10% of their value every single year after that first year dip.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Well, let's think about it like this. Okay. And I don't know if this is the case with her, but the average new car term is 69 months. Oh, so if she was paying $980,000 for 69 months, think about six years, but think about the opportunity costs on that investment wise.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Listen, they're aligned. I don't think he was aligned with us, though. I think they're going to do their plan.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
What are the odds? He felt pretty sure that she's going to volunteer.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And if you were to move to Florida, tell us exactly what that would mean. So obviously, does that mean your pay would go down from $110,000 to like $60,000? Or what does that mean?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
That's right. Uh, what about your wife? Is there, what, what type of work does she do? And is there any way she can maybe make up the difference on this?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
What's your living situation now? Are you homeowners?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And the idea is to just fold all that into another house of the same value, or are you going to downgrade?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
Listen, I'll be honest with you. I... I definitely think there's more to life than earning. And I have been guilty of saying the words. If people don't like where they live, why don't they just move? It's a free world. It's your life. Move somewhere else. So there's part of this that I 100% understand. And I think for you guys, and George, feel free to chime in here.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
For me, it's you guys looking at your goals
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
and saying here here's here's our values first off we value living in a place we love we value waking up in the morning and going oh i just love the way it looks out the window like those are clearly you've clearly said that that's a value of yours then the next step of that is looking at yeah your financial goals in a in a far out snapshot and going how does this affect
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
what we've set our goals are, and are we okay with that? Does this mean it's gonna take us longer to pay off the house? Did we one day have goals of sending our kids to private school and now that changes? And really go through how this also affects whatever financial goals and values that you had. And if you're okay with it,
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
that's fine but if you also go ah you know what dang it that does change us being able to pay for college or that does change and so i want you to play out those scenarios and make sure that you're 100 okay with what that can mean because it sounds like you're you're 37 you're still young you guys have not hit your earning potential like your full earning potential yet so i do think that if you were to make this move you'll have plenty of opportunities to continue to grow your income and
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
And truthfully, you might decide I don't want to be a firefighter anymore at some point and you might move on to something else. Only time can tell. What do you think, George?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
And what's his salary now that he's working?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
No, no, no, no, no. Because you're a you'd be rolling over negative equity and B, you're not solving the problem at the root, which is the debt. The debt is the problem, whether it was debt from, like Rachel said, stupid tax or debt from your own car or your own credit cards. Debt is still the problem. And we don't want to you can't solve a problem while simultaneously creating it.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
So you've got to, you know, put a full stop on debt.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
And they're not willing to take the risk. Yes.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Best of luck. I hate that your sister did this. Listen, I'd put her in a headlock. You can do that when you're siblings. You can rustle them when they don't act right. This is The Ramsey Show.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Our question of the day is brought to you by WhyRefi. Are you defaulted on a private student loan with payments that are dragging you down? WhyRefi could help you save thousands of dollars. Visit WhyRefi.com slash Ramsey to see how they can help. That's the letter Y-R-E-F-Y dot com slash Ramsey. Hey, it may not be available in all states.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Sure, sure.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Sweet 16, sweet 15.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
What were you making when you were working before the baby?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Yeah. I'm also filtering it, Rachel. I'm also thinking, okay, two girls, which means two weddings coming up and possibly two college educations coming up. So I feel like I would filter it a little bit through knowing what else is coming. So... Unless you guys really have a wonderful income. I mean, in five years, less than five years are going to be going to college too.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
And then maybe in less than five years, they're going to be getting married. So there's part of me that's like, all right. I want to be really realistic to make sure that we're able to save for all of that. And good luck. Godspeed.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
She gets a lot of money back. There you go. Put it in the college fund. That's good. Put it in the college fund. All right. Kaylee is in Phoenix, Arizona. What's going on, Kaylee?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Okay, what will you do with it?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Okay. So your question is, should I stop maxing out retirement and use that extra to put towards paying for the schooling? Right? That's the question. Exactly. My question is, can you do it without doing that? Have you run the numbers? Is it possible? Or is that the unlock here?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Yeah, or what is, I guess, what is that stop where you say, here's at the point where I need some of this cash. Can you still invest, you know, up to your match? Or can you still, is there any point that you can do a little bit of investing and also save for this?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Yeah. And I mean, I feel like it puts a salty taste in your mouth about the thing that you love doing, right? You go to get this degree in nutrition because you're like, I love nutrition. I love helping people. And then with this debt attached to it, now you kind of feel that every time you go to work, every paycheck is going towards that. And so I feel like it kind of taints that whole.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
All right. Very good call. Thank you for the call. Thank you for the question. Let's go to Ariel. I like that name. Ariel in Washington, D.C. What's up, Ariel?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Ariel, I'm going to hold you over. I took your call with not much time left on the clock. So do you mind holding for me? Not a problem. All right. I'll see you after the break. Sorry about that. I was looking and I thought we've got plenty of time. That was a lot. You know, it's free breaks coming up.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
If you have a simple tax situation, let's say you haven't had any major life changes, you haven't had any big investments, then you should check out Ramsey Smart Tax. This is a tax software that Dave Ramsey approves of. I approve of. The Ramsey team approves of. I approve of it. Yeah. And it's because we trust it, okay?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
It helps us make sure that we get every penny that the government owes us, okay? Like Rihanna said, pay me like you owe me. Don't act like you forgot, right? Okay. Ramsey Smart Tax is a 100% accurate tax software that saves you up to 80% compared to other popular softwares in the industry. I'm not naming names, but it is powered by TaxSlayer, a company who's been in the tax industry for 50 years.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Okay, so you can trust it. But we've doctored it up the Ramsey way to help you file right and keep you on the path towards financial peace. So filing early means getting the best deals and getting tax stress off of your shoulders and So even if you don't have all your documents yet, go to ramseysolutions.com slash smart tax and get started. That's what you need in your life.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
That's the only one I'd use. Amen. Oh, yeah, for sure. All right. So just before the break, I picked up Ariel. She's in Washington, D.C., and she's got a great question about vacation. What's going on, Ariel?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Tell us more. Was there like a down payment? Will you lose money?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Yeah. How much are you in on it and how much will you lose if you cancel it?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Honestly, take it. I'm going to say, even if it was $5,000, you're okay. Yeah.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
That's true.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I'd say you're good. Go on the vacation. Be smart about what you're spending while you're on the vacation. Just like day to day things. But other than that, I'd say enjoy it. You know, enjoy it. It's a vacation. All right, good one. Let's go to Ricky. He's in Atlanta, Georgia. ATL, Shawty, what's going on, Ricky?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
with the value of it and everything. What would cause you to consider the other offer over a $700,000 cash offer for the amount that it's actually worth?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
It's really the same game with putting it in the stock market as it was with real estate. It's the same idea of keeping that investment over time. And over time, like you said, you might not have a year like 23, 24, but you could and you should see at least a 10% return over that scope of time. And so that's what we're talking about when we say that. So I think it's great. Great, Rikki. Way to go.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Congratulations, too. Yeah, congratulations. I love a call like that. I love celebrating wins with people. That does it for this hour of the show. Hang with us and we'll be right back for the next hour.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
So you're putting aside for savings, down payment savings, are you also investing right now?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
From the Ramsey Network, it's the Ramsey Show. Thanks for hanging out with us. We're taking more calls about your life and money. Again, if you want to call in, you can. The number is 888-825-5225. That's how you call in. That gets you on the line. And when you call in, you'll just leave a voicemail. You can call at any time of day. You don't have to call while the show is going on.
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You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Leave a voicemail and we'll set up a time to get you on the line. Or if you do call during the show, you could get on right away. That's the way it works.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
All right, Rachel, you ready to get into it? Let's do it. All right, Patricia in Sacramento, California is on the line. Hey, Patricia.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Okay. So I think I understand why you're feeling like you're doing a lot because you are. And they're all good things. Like none of this is, they're not quote unquote bad decisions. I mean, it's great to save. It's great to think about investing.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
So the companies that they stopped paying are suing you, right? You stopped paying your debts and the money that you sent, they weren't paying it. So is that who's suing you, your creditors?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
How much have you given them the debt relief company to start?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I'm sorry. I mean, you're finding out what's absolutely true, which is these places are a scam. And I hate that you're finding that out the hard way. Do you know what it will take to get like how can you get out of this? Have you kind of researched what it would take for you to get out? Will you be dinged if you say, listen, I don't want to pay any more into this? I don't want to do this anymore.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
But I think that you're feeling this because when you do a lot of good things at once and in the wrong order, it can feel like, oh my gosh, I'm just trying to fight for my life here. So what we teach is the good news is you've got savings, you've got money here and you've got a great income.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
What's their what's their policy on that?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Yeah, you're right.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
From the Ramsey Network app, it's The Ramsey Show, where we help people do work that they love, build wealth, and create amazing relationships. I'm Jade Warshaw. Next to me is Rachel Cruz. We're taking your calls all hour long, talking about your life, your money. It is a live show, so call in. We want to hear your calls, and we'll get started, Rachel. It's going to be great. Let's get into it.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Well, you have to cancel. It sounds like you have to cancel your agreement with the debt relief place first. so that they're not signing and making decisions for you. So I feel like that's first in line. First in line is getting documentation that I'm no longer part of this program. I'm not giving them any more money and I have my power of attorney back so they can no longer sign for me.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
So I'd want that first. I'd want documentation of that, not just a, okay, over the phone, right? And then after that, then you can really do for yourself what they were saying, quote, they were going to do for you, which is, yeah, at this point, at this point, because there has been no payments made on this debt. Yeah, they're going to be ready to settle and you should be able to do that.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
And you got that in writing? That's in writing, the first one you paid off?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
It's just how can we do this in the right order to where we're really making progress and we feel good about how our money feels month to month. So I would say here's the caveat for all of this. You're pregnant and you're getting ready to have a baby. So I know you just had a baby. We have you just had the baby. She's out of the summer. Yeah. Lordy, lordy. OK, great, great, great.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Yeah. I mean, like you said, Rachel, a lot of it's fear tactics and you go, oh my gosh, they're suing me. Oh my gosh, I have a timeline. Oh my gosh, if I don't. And Rachel is exactly right. It's you'll have the opportunity to make a deal again.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
And what's the reply? What's the process of that? What does that mean?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
So could your response be, well, there's two things happening here. A, you're concerned about filing the response, which is next week, right? What day? Yes. What day?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
uh it's the 13th the 13th um yeah i don't know what day is that is that tuesday it's like wednesday okay so you have you have two business days to try to get out of this and if you can then you can apply go to the court summons and say i just got out of the debt consolidation i have the That's one response.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
The other response is I've been trying to get out of this debt consolidation and I have record of me trying to call and pay this and they have not taken my payment. But I have the money, I have the check here, I'm happy to pay it today, right? So there is part of this where you might have to like plead your case on that and that's why it's so important to document everything you're doing.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I called them on this day at this time and they have to record those calls too. I called them at this day and this time. So you just do be, uh, do your due diligence on making sure you're keeping record of everything and then show up at the summons with wherever you're at in life.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I just filed the paperwork or I'm waiting to hear back on them and just take it one day at a time because I think you're freaking out a little bit about what may or may not happen. And if the, if you have the money and you're saying, judge, I want to do this. I don't think the judgment's going to be against you. I think there'll be fair on that.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I don't think so. I mean, it sounds like whenever you signed up for this debt relief, part of the papers you signed said, and you guys can speak for me and sign for me and all of that. And so it should be that when you get out of this. Yeah.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
OK, so forget what I just said. And I would tackle it like this. I'd say, OK, if we really want to get ahead, how can we get as much money in our month to month budget as possible? Right. That's that's what I'm solving for. And so I would say temporarily, let's pause retirement contributions. Let's get that six percent of our entire income back into our pocket.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
So around here, we teach a method called the seven baby steps and it's seven baby steps to finding financial peace, right? It's the quickest, most efficient way to building wealth. There's seven baby steps. And if you are working them, we have a really great way to check to see if you're on track. Okay. So there's a quiz that you can take to check your progress and
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
You can also receive a personalized plan that's just for you as you walk your own journey on the baby steps. So simply head to the show notes and you can click the link that's titled, are you on track with the baby steps? So if you click that link, then we'll send you the quiz and you can complete it.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
So that's a really great way to stay motivated and make sure that you're staying on track with this whole thing because it is a journey and you need that extra boost. All right, let's take another call. We've got Grace. She's in Omaha, Nebraska. Hey, Grace.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
And let's pause saving for a down payment just temporarily. So now we have the full force of our income working for us and we can quickly pay off this debt. Right. Right now, you guys are making the amount of your debt. And so that gives you a two. You know, if you live on half, you're done in two years.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I mean, for the Notre Dame part, it's like, whatever I'm not making for you. It's just a time investment. Right. And what Rachel said, there's just the, and the part of becoming an adult that you get over four years. Like sometimes they're, Part of school is not just the education, it's the experiences that you have.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
yes it is yeah so I I wouldn't let the drive home like what you're driving home for Thanksgiving right for spring summer break whatever that is I wouldn't let that deter me from making the choice
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
There's not a wrong answer here if both of them don't include debt. That's the truth. So if you're able to do the two years with whatever scholarship they give you and you're able to cover the rest and there's no debt, that's not a wrong choice. Also, if you choose to do the Notre Dame for four years... which is covered completely, that's not a wrong choice.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
At the end of the day, it really just boils down to what you want to do. Our only caveat is there can't be debt. That's our stance on the decision that you make. Okay, that is what I want to hear. I hope that helps. You've got some things to mull over and think over, but I think that it's really great that you have those opportunities. And that's what we want to see.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
It's nice to have choices, I think, at the end of the day.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Yeah, I do too. Great scheme.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Grace, I know. I know. All right, let's take a Facebook question. All right, Logan wants to know, I made it to baby step six, Rachel, and I have a question about paying off my mortgage. On the mortgage, do I continue to eat beans and rice, rice and beans until the house is paid off and only see the inside of a restaurant if I work there?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Or can I grab a cold beer and just relax a little bit, Rachel?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I am popping a beer right now, Rachel. I am drinking beer as we speak.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Hey, what's up guys? It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now,
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
i recommend contacting my friends at laurel road today through their online application you can get an initial rate quote in less than five minutes and if you have a more complex situation you can schedule 30 minutes to talk to an actual human being thank goodness laurel road makes it simple there are no fees involved and you could save thousands over the life of your loan remember
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
If you want them gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
All right, you're listening to The Ramsey Show. We have Peter, who's in Manchester, New Hampshire. Let's see what he's talking about. Peter, how can we help? Hey, how's it going? Going good.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
So really just living on your income would do this.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I'm 23. OK, cool. Well, you're right. Like manual underwriting is what we would say for people who don't have credit scores. Right. Which is what we suggest. And just kind of clarifying the idea that a zero credit score means that you have not borrowed money. And if you did borrow money, you paid it all off and your credit score rolled to zero or indeterminable. It is not a low credit score.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
It is not a bad credit score. It is a zero credit score. And you're right. You know, you do have to do your due diligence and search around because every loan company, you know, every mortgage company won't do that, right? So here we talk about Churchill Mortgage because they will offer manual underwriting and they'll do it for just about every state, Rachel.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I know there's some that are not on the list off the top of my head, but most of them are.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Let's go through what you'll expect so you'll be able to start planning for that. Because I think that knowing that going in is important. So you do have to show rental history.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
So if you're living with your parents, I feel like this is where people get hung up, is if they're living with their parents and they haven't been paying them any sort of rent, you still have to be able to show 12 months of rental history. So... Keep that in mind. You're going to have to show 12 months of other trade lines.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Like Rachel said, if you're not borrowing money, then other trade lines could be things like cell phones or utilities or even insurance payments, car insurance payments, something like that. And you're going to have to show like actual money that you're making money. So you'll have to show income for the last 12 months.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
If you're self-employed, it'll usually be like 24 months and they're going to want to see your pay stubs for the last 30 days. OK, so that's what you're looking for. And if you are self-employed, they might want to see your tax returns as well. So that's kind of just a nutshell of what they're going to ask for. So you can be prepared for that.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I love that. I love that you want to be ready. I think you're thinking of it as a bank, a bank or like a bank account. It really just is a mortgage company. So you would set if you're ready to set aside and start saving for a down payment, we would say a high yield savings account is a good place for that. Yeah.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
And I always will take it a step further because if you're a first time home buyer, Rachel, I feel like there's so many things that you're like, I didn't know that. I didn't know that. It just keeps hitting you. And so one of the things that I started, it's just like a little acronym to remember. It's like when you're ready to buy a house, you play the right cards, right?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
You play with a stacked deck. Deck, D-E-C-K, right? So D is down payment, right? Rachel just said what you're looking for, 20%. If you can do more, that'd be great, you know, but if only you can get it's 5%, like that's fine too. But even earnest money, E is for earnest money. People forget that when you make that offer, you've got to be ready with cash. Some money. That goes right away. Right.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
To say, yes, I'm serious about this offer. And that does go towards closing costs. But if you were thinking, oh, like I I'm not quite ready yet. Oh, I didn't know I needed to have that money yet. Knowing that that's coming is important. Of course, see, you're on the hook for some of the closing costs. So that's another expense there.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
And then, Kay, you have to keep in mind the other things that go along with. buying a house or moving like boxes, Rachel, and packing tape and the bubble wrap. Like that stuff is so expensive. So just really getting your mind around all of it as you're saving up is so important so that you're not kind of hit there and like disillusioned at.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
how much it really does cost so it's like a taste of being a homeowner just getting through the home buying process where you're like oh my gosh there's just a lot there's so much so much i hope that helps thank you so much for the call uh sarah is in rochester minneapolis minnesota what's going on what's going on sarah hi um first of all i'm so excited to be able to talk with both of you ladies i love listening to you both so thank you for taking my call thank you so much um
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I mean, that's your prerogative. I mean, I think what Rachel and I are outlining, what she just outlined is the fastest possible way. The fastest possible way is you continuing to work. You live on your one salary and you plow through this. Another option is you're like, listen, Jade, I've got this little baby. I want to be home now. If you do that route, then it's only your husband's income.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
All right, you're listening to The Ramsey Show. And I don't have to tell you guys, money and relationships can be two of the biggest stressors in life. I mean, it's so true. They go hand in hand. So if you're feeling stuck, you're feeling overwhelmed or uncertain, let me just tell you, you're not alone. Stress and fear do not have to control your future.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Yeah, it's going to double the amount of time it's going to take you to get out of debt. which you're still not far beyond that parameter of the one and a half to two years if you really double down and really get on a tight budget on that. So you've got options, but as long as you know, this is what we're doing. We're paying off the debt first and pausing all savings and retirement to do that.
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You Have To Mentally Take Debt Off The Table If You Want Financial Peace
And at the Money and Relationships Tour, you'll learn how to take control and shift your mindset around money and relationships for good. So join Dr. John Deloney and Dave Ramsey live for a high energy experience where you will see real transformations happen in the room. OK, they're going to be live in six cities. That's Louisville, Durham, Atlanta. Phoenix, Fort Worth, and Kansas City.
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You Have To Mentally Take Debt Off The Table If You Want Financial Peace
That's April through May. So you can go on and check out the dates. Don't wait, guys. Tickets are going super fast. Get tickets at ramseysolutions.com slash tour. And if you're tuning in on YouTube or podcast, be sure to click that link in the show notes to get the information that you need. I hope to see you there. All right, let's get into these phone lines. We've had great calls today.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Keep them coming. We've got Becky in Louisville, Kentucky. Becky, what's going on?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
You're 47 and $47,000 of debt. Okay. Yeah. Look at that. Okay. So let's kind of unwind this a little bit. What's your income? Tell us a little bit about what you do.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Yeah. Okay. What kind of debt is it?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Okay. So you owe the IRS. How much of that is IRS debt?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
okay um yeah so you do you've you've got your work cut out for you here i mean typically we would say you know to do the debt snowball with some smallest largest and go through like that in this case you know we always say that irs debt or tax debt jumps straight to the top of the list so i mean that's the case for you i would start off with that irs debt the 15 000 and work through that and then i would go to the dor debt and then the sba loan would probably be final
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
In the meantime, my question is, what can you guys do? I mean, you're entrepreneurs, you're creative minded. What can you guys do to start bringing in more income, kind of using your skills?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Then after that, we're saving up And for you guys, I think you'll already be set up to do this, but you're making sure that you buy that house based on the one income that you're going to be living off. So based on the $250,000, I wouldn't base it on what he might make in the future because you really don't know. And the worst thing to do would be to get more house than you can pay for.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
All right, we've got Emily from New York City, New York. What's going on, Emily?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
you know doing um something like what else because you're spending 60 hours a week is what you're saying is really what ends up being so i'm just wondering you know what else is out there not to not to close down your business because i know this is how you guys are making a living well what would it look like to add more and bring other people to help you so you're not i mean you guys are only gonna have so many hours in the day yeah but to get more clients on and then you're bringing on people to say okay or upcharge yeah you guys raised your fees in a while
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
uh the last time we raised it was last year okay okay but i mean of course everything is going up so i mean yeah i look for ways to offer some sort of i mean obviously off raising your prices to meet inflation makes sense but then you can find premiums that you can add that don't necessarily take a lot more of your time but it gives you a reason to increase your price right so you could look for things like that
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
you look for things like that i'd look for other built like other commercial properties other personal properties and then i'd bring on a couple of folks that are like because there's always people looking for side hustles so somebody who wants a house cleaning side hustle can go to you guys and now you're just taking a percentage of it because you're the one sourcing the work right so i think there's a lot here for you to do um but you're gonna have to get creative and you're gonna have to pull the trigger on that stuff sooner than later so you can see the impact of that money okay
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Use all of it towards the debt, but pay taxes on it first so that you don't land yourself in this.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
And then it feels like a burden, right? So I think if you're making those decisions, you're going to be okay.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Take a couple of your clients and
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
get get to that number that you think and i think you'll be surprised at what people will pay for a couple of reasons number one like it's a service people are willing to service people are willing to pay for and it's it's a pain in the butt to change like yes it's a pain in the butt to say oh man okay i guess i need it's too expensive i guess i need to find a new service like most people are like okay whatever yes totally seriously do you know and in it in and i would be apt to tell you that
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Yeah, I like that. All right. Thanks for the call. Quick question from Jeremy on Facebook. He says, do you have any guidelines as to when we should think about withdrawing investments? I invest regularly and I understand the power of compound interest, but I also want to take my family on holiday vacations.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Great question. Great answer. Hey, if you want to keep watching the show, you want to hang out with us for another hour longer, you'll have to find us in the Ramsey Network app. You can do that by searching for it in your app store. See you on the other side.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Yes. When they remember. Ooh, I love it. This is the Ramsey show.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
All right, back to the phone lines we go, taking calls about your life and your money. Another call from New York City, New York. We've got Jasmine on the line. What's up, Jasmine? Hi, how are you? Doing great. How can we help?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
What about your own car? You owe $6,000. What's it worth? Is that one upside down? And what did it begin as?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Okay. I'm more inclined to keep the car that you have possibly. Let's find out more about your income. Tell us about your income. Tell us about your other debts so we can get a fuller picture here.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
You can't, uh, you said easy pass tickets. Is that something you can dispute as fraud? Um,
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Oh, got you. OK, so tolls, not like part. I got it. Tolls. OK. Oh, my. Your sister. Can I just ask? This is neither here nor there. But did you know that she was capable? Yeah. Shifty from the beginning. Did you know that? Or are you just learning this about her?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I wonder if... So my first thought is, yeah, definitely got to get out of the car note, the $22,000 one.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
it's not a it's not a car that you need and it could be worth saying okay like i'll get a personal loan for the difference so i can offload the vehicle that way i'm not paying the full payment on a twenty two thousand dollar car i'm just paying a payment on the eight thousand dollar loan to get out of it um and then maybe keeping the loan that you have for your car obviously it would be um first on your debt snowball right so you pay off your seven thousand dollar car now what is your what is your car payment
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
I mean, it might be. Let's let's run the numbers out. So you said your husband has got it's a dentist. Is that what he is? Yeah. Dental debt. So how much debt is there?
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Okay, so once you pay off your car, that'll free up $336 a month. And the hope, here's my hope, I don't know if it's worth your time or effort, but my hope is that while you're paying off your $7,000 or your $6,000 loan, you can be telling her, hey, I sold this car. And it's now just an $8,000 loan. You really do owe this and you should be paying it.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
And maybe you guys can start having that conversation. And I try to collect whatever I can from her. I'd be like, listen, hit me with half. Hit me with anything. But you've really put me in a tough situation. I've got children. I've got another child on the way. I need help with this. And truly, you're on the hook to help me. Really, you should be paying it. But I take whatever I can get.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Do you see what I'm saying? And so by the time that one comes up in your debt snowball, hopefully you've got...
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
See if you can get a personal loan for the difference or go down to the credit union. I don't care where you do it. I just care that you get, I'd rather you owe $8,000 than $22,000.
The Ramsey Show
You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Even if it's a slightly higher interest rate, I still care about that because you're going to be able to, it's going to free up a little bit more money and you're going to be able to clip through your $6,000 car note faster by lowering that amount of debt, therefore the payment on it.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
It's Jade Warshaw. And look, if there's anybody who knows student loan debt is a problem, it's me. My husband and I had $280,000 of it, but we were able to dig ourselves out and you can too. If your student loan payment and interest rate are burying you, refinancing could be the solution. Now,
The Ramsey Show
Stop Watching the Market—Start Building Wealth
i recommend contacting my friends at laurel road today through their online application you can get an initial rate quote in less than five minutes and if you have a more complex situation you can schedule 30 minutes to talk to an actual human being thank goodness laurel road makes it simple there are no fees involved and you could save thousands over the life of your loan remember
The Ramsey Show
Stop Watching the Market—Start Building Wealth
You should only refinance if it makes sense in your situation. So if you're looking for a low rate or a shorter term so that you can pay off these student loans fast, talk to my friends at Laurel Road about their competitive interest rates and how you could actually get a lower rate by signing up for auto pay. Listen, nobody's coming to save you from student loan debt.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
If you want them gone, you can't mess around. Go to laurelroad.com slash Ramsey to find out more about student loan refinancing. Again, that's laurelroad.com slash Ramsey. Laurel Road is a brand of Key Bank National Association. All credit products are subject to credit approval.
The Ramsey Show
Stop Watching the Market—Start Building Wealth
No. It sounds like it's from the 1950s.
The Ramsey Show
You Can Change Your Life TODAY!
So I'm going through and I'm going, okay, do we have car payments? Is this something that I can sell off? If I sell it, will I make money? If I sell it, am I upside down? Is there a way that I can get out of this car loan and free up that money every month? So that's the next place I'm looking. So those are really the top four areas. And then after that, it's the basic stuff.
The Ramsey Show
You Can Change Your Life TODAY!
It's groceries, it's subscriptions. So really go through your budget with a fine tooth comb and see if you can find some extra money there. Do you have every dollar?
The Ramsey Show
You Can Change Your Life TODAY!
Yeah. I'd go back on the statements and say, okay, what are we spending? What's the worst month that it's been? And be prepared for that worst month and have it set aside.
The Ramsey Show
You Can Change Your Life TODAY!
Yeah, you're listening to The Ramsey Show on The Ramsey Network. I'm Jade Warshaw. Next to me is Dr. John Deloney. Let me let you in on a little secret. When it comes to your life and your money, you're the only one who can change it, period. No one else can change it for you. And you can't look at someone else's life and money and think that you're going to be able to reach in and change theirs.
The Ramsey Show
You Can Change Your Life TODAY!
They have to be wanting to make those changes on their own. And it's frustrating. It's very frustrating. If you're a person who's gotten a hold of the baby steps, it's worked for you. And you look over at your brother or your sister-in-law or your mom and dad or your best friend. And you're like, man, I see I'm struggling. I really want to help them.
The Ramsey Show
You Can Change Your Life TODAY!
And you're trying to get them to do it and they won't do it. Listen, it's one of those things. It's the worst. It's the worst. God. It's truly the worst. And I have found that the best way to broach a subject is or whether it's with your spouse or with a friend or family member, is just to be like, man, I was listening to this show and here's what helped me. Here's what I did. And it's so good.
The Ramsey Show
You Can Change Your Life TODAY!
It's so easy. Like, for instance, John and I were talking earlier. We were talking about our Christmas break, talking about sleep. And I said, oh man, I got my husband this whoop strap. It's great. And you just talk about it naturally as a part of the conversation, as opposed to, you know what you need to do. You need to get your money on point. You need to use every dollar.
The Ramsey Show
You Can Change Your Life TODAY!
That's right. We're talking about it like a real part of our lives, like something we're genuinely excited about because we are, not as an indictment for what somebody else should be doing. If you are looking for a way to get yourself under control, every dollar is the way to do it. It's the best way to budget your money. You make a plan. You stick to it with a monthly budget.
The Ramsey Show
You Can Change Your Life TODAY!
It makes it super easy to plan your spending. You can track your transactions. You save for what matters to you most. It's all in this easy to use app that fits in your phone. And what's going to happen is you're going to start making progress. And because of that, you're organically going to want to show other people. And you're going to want to be like, man, listen, I got on this budget.
The Ramsey Show
You Can Change Your Life TODAY!
It's so easy to use. It's in my pocket. My husband can see it too, or my wife can see it too. And because of it, we found like 400 extra dollars in our budget. That's how this thing works. And so whether it's you or for a friend or a family member, that's how you talk about things. You talk about what's real to you. You don't tell them what they need to be doing.
The Ramsey Show
You Can Change Your Life TODAY!
From the Ramsey Network, it's the Ramsey Show. Hey, it's good to be back with you guys. I'm Jade Warshaw. Next to me is my buddy, Dr. John Deloney. We're hooking you up with answers all hour long. So give us your call. The number is 888-825-5225. Hey, it's a new year, John. We're back. Let's get into it. I'm so excited. I don't know what to do. I haven't hosted the show in a little bit.
The Ramsey Show
You Can Change Your Life TODAY!
So use every dollar, keep a pulse on your spending, make progress with your money goals and do that with every dollar. If you don't have it, you can download every dollar for free in the app store or... Listen, if you have an Android, go ahead and head over to Google Play. Click the link in the description if you're listening on YouTube or a podcast. But whatever you do, get every dollar.
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You Can Change Your Life TODAY!
Okay, let's go to Amanda. She's in Chicago, Illinois. What's going on, Amanda?
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Well, I have a question. I'm going to make an observation. John, correct me if I'm wrong. I've been married for 18 years. The times... I don't know that there's ever been a time that Sam and I have been at a complete impasse. I 100% am not going to act on or move towards you or what you're saying in any way and vice versa. That feels... Don't get me wrong. Plenty of times we disagree.
The Ramsey Show
You Can Change Your Life TODAY!
Plenty of times we want to go about something a different way. But when there's a complete I'm not budging and a complete I'm not budging over here, that is a red flag for me.
The Ramsey Show
You Can Change Your Life TODAY!
And there's the mom side of things. You get to decide if you want to get into that or not. It's like marrying a guy who already has a kid. You get to decide. If you are thinking, no, I don't want all of that, there's nothing wrong with that. I can't say that enough.
The Ramsey Show
You Can Change Your Life TODAY!
Yeah. That puts you in a tough position, too, because you don't want to be the one that's like trying to scooter out the door. So, you know what I mean? That's tough. That's a hard place to be.
The Ramsey Show
You Can Change Your Life TODAY!
You're listening to The Ramsey Show on The Ramsey Network. I'm Jade Warshaw. Next to me, number one bestselling author, Dr. John Deloney, host of The Dr. John Deloney Show, which is really quite the phenomenon, I must say, John.
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You Can Change Your Life TODAY!
Well, anyway, hey, if you like the shows that you listen to on the Ramsey Network, whether it be this one or many of the others that we have to offer, be sure that you're liking it, subscribing to it, sharing it with other people. That means a lot to us. It's something that you can do that's really quick, doesn't take you any time, doesn't cost you anything. But ultimately, it does a lot for us.
The Ramsey Show
You Can Change Your Life TODAY!
I understand that, but you're on the hook for the loan, yes? You got a mortgage for a duplex and you're renting it out, is that correct?
The Ramsey Show
You Can Change Your Life TODAY!
It helps other people to discover the show. And that is big. We're all about life change here. And the way that we change people's lives is getting in front of them. And so if If you can do that, like I said, like, subscribe, share, do that for us in the new year, and we'll be so appreciative to you. We already are, but that's a big help. All right, John, we're taking calls all this hour.
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You Can Change Your Life TODAY!
We got a few left. We got Sarah here from Seattle, Washington. What's going on, Sarah?
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You Can Change Your Life TODAY!
I'm not sure that I understand. I'm not sure I understand what your lawyer is saying.
The Ramsey Show
You Can Change Your Life TODAY!
Because you're saying you can say that money was for something else if it's in a brokerage?
The Ramsey Show
You Can Change Your Life TODAY!
Yeah, I didn't like the fact it feels a little bit dishonest at what you're trying. It's like you're trying to show that I don't really have this money if in fact I really did. And that's the part that bothers me. If you had just called up and said, hey, what's better for me, a 529 or a brokerage? We could talk about that all day and we could talk about the pros and cons of it.
The Ramsey Show
You Can Change Your Life TODAY!
If you were worried that you didn't want to save up too much in the 529 because they might not go to school, like we could talk about that all day. So for me, it's a little bit the why behind the what that's making me go, let's just save up for your kid's college the right way and not be super concerned about what he might or might not try to do in 15 years.
The Ramsey Show
You Can Change Your Life TODAY!
All right, that does it for this hour of the show. Be sure to join us next hour. It'll be Dr. John and myself. We'll see you then.
The Ramsey Show
You Can Change Your Life TODAY!
From the Ramsey Network, it's the Ramsey Show. Hey, we're glad to be with you. Happy New Year. I'm Jade Warshaw. Next to me is Dr. John Deloney. We're happy to be here with you guys. It's the live show, so if you want to get on, you got to get in where you fit in. Give us a call. The number's 888-825-5225. We'll get you on the line as long as you're not crazy. We got phone screeners for that.
The Ramsey Show
You Can Change Your Life TODAY!
All right, let's get into it. We got Andrea, Andrea, Andrea.
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You Can Change Your Life TODAY!
I'm going to say all different ways. Tell us what's the right way from Columbia, South Carolina. It's Andrea, but I answer to pretty much anything. Okay, well, I want to say it right, Andrea.
The Ramsey Show
You Can Change Your Life TODAY!
I think about on The Devil Wears Prada. Is there a name, Andrea? Andrea? We watch different movies, Jade. I'm sorry. I'm sorry. Moving on.
The Ramsey Show
You Can Change Your Life TODAY!
I have to take the rail, which is really good, right? Get to the question so we can actually help you.
The Ramsey Show
You Can Change Your Life TODAY!
That's what I'm talking about. And you're it. How can we help you today, Andrea? I'm good.
The Ramsey Show
You Can Change Your Life TODAY!
Because it changes my answer. It depends on if you can. Because if you said to me, hey, listen, every month whenever I have extra money, or for instance, in January, I'll have extra in transportation and I'll have extra here. I would normally say, yeah, any extra money that you have in your budget, you roll it over to whatever baby step you're on.
The Ramsey Show
You Can Change Your Life TODAY!
So if you're on baby step two and you're like, yeah, I thought I was going to have, you know, a thousand to pay on debt. But because of these extra little tidbits that I had extra, now I have, you know, one thousand two hundred. Perfect. Now, if you tell me, though, but, Jade, on February, I'm going to have this $200 x-ray bill, and I can't. It's not.
The Ramsey Show
You Can Change Your Life TODAY!
If I do that plus my normal budgeted stuff, I won't have enough. Then I'd say, yeah, you need to hold that aside and keep it for that.
The Ramsey Show
You Can Change Your Life TODAY!
Wait a second. Well, let me answer the question for you. It's never, I'm going to say that it's not ever going to be appropriate to do a loan on this show. We're never going to tell you to go into debt. And the reason for it is because you can already sense the reason why you've got 98,000, a student loan debt, 60,000 in consumer debt, 19,000 that you're paying off on land.
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Well, if you're telling me that you have the cash flow and you can cash flow it, then we're using the money for whatever baby step you're on. So what baby step are you on? Sounds like baby step two. Yes. OK, then let's say at the end of the month you go through and every dollar tells you, wow, you had twenty dollars left on transportation. You had eight dollars left over here.
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Whatever that is, throw it towards your debt. And then it's not a thing of having to move it out or transfer it over. Now, let's pretend you were on because somebody else is listening to this. Let's pretend you're on Baby Step 3B and you're saving for a down payment and you say, OK, I have leftovers.
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Then you might transfer it to the high yield savings account or wherever it is that you're keeping savings.
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those savings um i love this question it's very practical and this is the stuff that i think really matters on the day-to-day um yeah hopefully that clarifies it let me say can i throw two things at you andrea yes please okay number one please please please well tell me this how much do you owe on student loans um 19 000
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Just for us, tell us your income, exact numbers, because I'm going to make this a black and white for you. What's your income?
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oh multiply that by 12 for me and tell me okay so you're around 60,000 um you're right at the line we usually say that we don't want anything with a motor in it vehicles being more than half of your yearly take home now there's that and you're right on the line plus the fact that you've got debt and you're talking to us about you know trying to make the most of your money trying to make the most of your extra money you've got nineteen thousand dollars of student loans
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Especially if you have a bad habit of wrecking your cars.
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I don't have to tell you the reason. The reason is it is a shackle on your life. It is.
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Andrea, the job that you do, you work with children.
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And you're telling us... Right. And you're telling us that selling a car and buying a new car is hard. What you do when you work in the school system as a teacher, you do way harder work than that every single day. You're finding excuses right now because you want to keep this car. It's not that difficult. Go on Kelly Blue Book.
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Find out how much it's worth and get a buddy who's done it before and they'll help you walk through it. Somebody you know has sold a car and they'll help you through it. This is The Ramsey Show.
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happy new year you're listening to the ramsey show on the ramsey network i'm jade warshott next to me dr john deloney taking your calls this hour talking about your life your money your relationships your careers just your general well-being i mean money touches everything so that's what we're talking about matter of fact we just launched a very cool tour That really speaks to all of this.
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We just launched a brand new tour. It's Dr. John Deloney along with Dave Ramsey. And we're hitting the road, coming to a city near you. And it's the Money and Relationships Tour. So this is really cool. You guys, John, you guys are kind of putting a new twist on these live events. And tell us more about it.
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I think of America's Funniest Home Videos where you have a little thing and you lock in your vote.
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I mean, you could be talking about anything, whether it's budgeting, relationships.
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Love this. OK, so this is coming to a city near you. We've got a lot on the list. We've got Louisville, Durham, Atlanta, Phoenix, Fort Worth, Kansas City. Get in where you fit in. Join Dr. I keep wanting to say Dr. Dave Ramsey. That is not right. Dave Ramsey and Dr. John Deloney live and in person for a night where you'll laugh, learn and change your life.
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Get tickets to the Money and Relationships Tour at RamseySolutions.com slash tour. And if you're tuning in on YouTube or podcast, you can go ahead and click there. The link in the show notes. That's how it works. All right, let's go back to the phone lines. We've got Helen in Orlando, Florida. What's up, Helen?
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Would that mean daycare? What would that mean financially? Because you got to count that cost. Yes. Exactly.
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There's a part of this. Now you get to make the choice. Now, if you told me, hey, Jade, there's another job I can take. I'll earn more to the point where it would out earn any other child care and it'd be worth it for me. And if you told me that, I'd be like, say less. Like, let's go.
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But in this case, if you're telling me, hey, I might make more on paper, but once I add in the new child care fees that I'd have, then it's no longer worth it. And that's a real discussion. And at that point, it doesn't really make sense. There is a part of this and John, feel free to feel free to chime in.
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There comes a point for all of us and it'll be at a different point where we've done all the things we can do. Right. You cut your budget as much as you can cut it. You've added as much extra income as you can add. And you've sold as many things as you can sell. And your income at that point is your income. And your margin is your margin.
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And you take that horse to the old town road and you ride till you can't no more like that. That is it. And you just have to ride out the time frame at that point. And that's not fun, especially when you've been kind of getting high off of finding other things to sell and other ways to add money and other. And it's like you're able to create this excitement about it.
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But when those switches turn off and you're like, well, here I am. this is my margin. Then you're like, you're just left with the timeframe. And that is a very real feeling of like, oh crap, you know, this three year, here it is for three years. Now the good side of that is whatever that timeframe is, you don't know what's going to happen in that timeframe. You could find another opportunity.
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You could, you know, have something come in your lap that gives you the opportunity to bring in more money in some form or fashion. But if for right now that's where you are, there is a part of that where you go, OK, I have 500 extra dollars that I throw out this debt every single month and I'm going to do my part. And as long as I keep doing my part, the debt will tick down.
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I am going in the right direction. And you're a single mom with four kids, one kid, special needs. You are in a season of life right now, period. And sometimes that is the case. We have people call in here all the time where they go, man, Jade, I've got three kids in daycare or I've got, you know, I'm in this season of life where just everything is expensive and there's not much I can cut.
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This is where we're at. And sometimes you just have to accept, all right, that's where I'm at. As long as I'm still going forward, I may not be going at the pace that I want to go, but this is probably only temporary and I have to own where I'm at right now. John?
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When is my safety? Your safety is always paramount. I'm not going against that. And I've been to Phoenix. I know what you're talking about. I know that area very, very well. And you're not wrong. However... You told me before that you were doing Lyfts, you were doing Ubers. That's how you were getting around.
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She's there. She's just broken up. I broke my foot off. Get to a place where you got some clarity on that cell signal.
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Well, we'll try to help you out as best we can. We can't really. Yeah. If we can get you back, we will.
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So I'm excited to get into some calls and help the people, John.
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And even though that's expensive, if that's the safer method for you to get around until you can save up and buy yourself a thousand dollar cash car, that's a junker. That's just going to get you where you need to go. That's what you need to do for you. If I told you to go into debt to get a car, I would be not a good financial advisor and I would not be a good friend. And I would just...
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You're listening to The Ramsey Show. I'm Jade Warshaw. Next to me, my buddy, Dr. John Deloney. We're taking your calls this hour, talking about your life, your money, whatever it is that concerns you. Money touches all of that. So give us a call. It's a live show. But until we get to the phone lines, we've got today's question of the day, which is brought to you by YREFI.
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If private student loan debt is taking away your peace of mind and you don't see a way out, You need YRefi. YRefi refinances defaulted private student loans that other places won't touch and gives you low fixed rate loans built for you. So go to YRefi.com slash Ramsey today. That's the letter Y-R-E-F-Y dot com slash Ramsey. Remember, it may not be available in all states.
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That would be the worst advice ever if I said, yeah, just go take out a car loan because you've got $180,000 of debt.
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She's writing her own letter somewhere. Yeah, she is.
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No, because and that's the other problem. We didn't talk to you about your income, but what are you bringing in? What's your income?
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Listen, it's only been a month. He said only, well, he said over a month, which makes me think it's like 31 days or like 32 days. Sam and I were having the same conversation this morning. We were talking about somebody commented on something I wrote on social media and we were talking about that.
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And the context is, you know, we're big on if you are following the Ramsey plan, whether it's the baby steps or, you know, whatever it is that we teach here and you're married or you're about to be married, it's very important for you guys to be on the same page. I subscribe to that. I 100% believe that. It's important to be on the same page. However, there's a part of that where a lot of us have
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told ourselves that that happens instantly and it doesn't. It takes a long time. Like what Sam and I were saying is we were two people who were what I would say 100% aligned and it still took us a long time to just do the things the right way and not try to find workarounds and not try like, so the point in this is it's only been a month and you're not married.
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how she fits into this who she is here i wouldn't just cut it off right there at the knees i would it takes time for people to go oh i was doing something this way um and i was okay with what i was doing you're suggesting something new let me get my head around that i'm not saying no help me understand it what is this going to mean for me and i've also found uh john that
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uh, I'm, I'm treading lightly here. I've also found that different, like, depending on your, your time of life, like the things that I did when I was single and could just flip a switch and be like, I'm doing it. Like, like you said, raw vegan, you know, and I'm going in and then it's like, okay, now I get married and it's, A little bit harder, but still somewhat easy.
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Now Sam and I are the ones doing it. Then you add kids. Then you add a nine to five job. Then you add, you know, the more layers you add, what I find is the more you stop and think, okay, what's this going to mean for me?
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And so I say all that to say, it's not a light switch. Changing how you handle your money for you is emotional and for the people connected to you is emotional. And they're going to have to go through that journey and they're going to have to do whatever rounds that you did, and it might take them longer, it doesn't mean they're not gonna get there.
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All right. We got Miriam. She's in Phoenix, Arizona. What's going on, Miriam?
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Yeah, you just, I think you have to, have space for her to be her and you to be you. And whatever clicked for him watching that is not necessarily going to hit the same nerve for her. And he's got to find what that nerve is. That's right. And yeah, I mean, I'm just looking at the sentence over and over. However, my fiance hasn't shown the same drive or aspirations.
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Listen, there are certain things if Sam Warshaw is talking to me about, I'm like, this is the most boring topic ever. And I have zero interest in what you're telling me right now. But because I love you, I'm going to listen and I'm probably going to act like I'm interested. But you're going to have to find a way to get me interested in this.
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It's part of it. My husband used to try to make me watch this show on Netflix. It was like called Abstract or something. And I literally told him, I said, this is the most boring show in history. Please don't make me watch it. He's like, Jade, I promise you it's good. He hasn't convinced me yet. It's a journey. So that's the takeaway.
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All right, you're listening to The Ramsey Show. Thanks for hanging out with us. I'm Jade Warshaw. Next to me, my colleague and good buddy, Dr. John Deloney, taking your calls this hour. 888-825-5225 is the number. This is a live show, so if you want to call in, do it now. Hey, I also want to mention to you guys that the third hour of the show continues on in the Ramsey Network app.
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So if you don't have the Ramsey Network app, you need to download it today, especially if you want to watch the rest of the show. You can do that by going into the app store. You can do that by clicking the show notes. And of course, Google plays where you go if you're an Android user. So. That's where I want you to go. That's what I want you to understand at the end of this hour.
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So let's go to the phone lines. We've got Kane who's in Birmingham, Alabama. What's up Kane?
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Yeah. Where we're at, and this is the hardest part to get to, because for you, debt has been a crutch. Debt has been the little safety blanket. It's the thing that you've gone to to get everything that you want. And you're not realizing the effect that it's having on your life.
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Such a good question. Yeah, I would leave it exactly where it's at. It's only drawing 3.8%, but for the time, I mean, that's pretty much guaranteed. You're not going to lose money. And since you have such a low, it's a short tail on this, you said 18 months, I would definitely leave it there. We found that kind of the five-year point,
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And more is where we might say, OK, yeah, you could invest it if you said, hey, I think I'm going to be doing this in the next five to seven years. I'd say, OK, yeah, like drop it in an index fund in a brokerage account. That'd be fine. But kind of that five year and less point, it becomes really volatile. And it's not it's never guaranteed.
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But at that five year or less mark, there's a very good chance of not really knowing what will have happened with that money. And so for that reason, I would say leave it exactly where it's at. I'm really proud of you to have a paid off home.
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Well, I'm proud of you. Very, very, very good. Very good question. I love it. Paid off home in 18 months.
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Isn't it? It's so good. All right. We got Jessica in Atlanta, Georgia. What's up, Jessica?
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It's odd to me that you're going through a bankruptcy and yet still you haven't figured out that borrowing money is the problem. I say it all the time and I'll say it to you too. You can't solve a problem while simultaneously creating it. OK, and that's what you're trying to do. You're like, oh, I'm in debt. I'm going to solve it while filing bankruptcy.
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So they weren't able to strike a deal for less than what you owed. And so therefore the money that you had stacked up with them wasn't enough to pay it off. Is that what you're saying?
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Well, no, I mean, it's it's just at that point, really, you're lucky no one's sued you for it. It sounds like you knew about it. I'm just going to be honest. It kind of sounds like you knew that the money was remaining there. It wasn't what you wanted, but you're kind of just hoping it'd go away on its own.
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And it didn't because this thing is eight years old. So how much are we talking about here?
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So have you tried contacting them? Whoever's holding this debt, have you tried contacting them?
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If I'm you today, you've got a couple pieces of homework. Number one, yeah, contact Chase and find out, say, who's holding this debt? Because they probably sold it off a long time ago and some debt collector is holding it. The next thing is gather up your money and say, okay, I may not have $8,733.
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But like offer them 20% or 30% or see what you can get because you're going to be able to settle this. It's so old that you're going to be able to settle this for an amount. And when you do settle it, just make sure you get it in writing and make sure it's completely paid off, that they send you, that it's a zero balance.
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And make sure that you have the money saved up for when you are ready to make that deal because they're going to want it. When you say, hey, will you make a deal? They're going to want to start that process almost immediately.
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And in the meantime, I'm going to keep going into debt. And if you keep doing that, you're never going to find a way out. You're going to be a dog chasing its tail. And so you've got to get to the point where you draw a line in the sand and you go, you know what? I may not be able to pay off this debt today, tomorrow. But the first thing, the thing I can do today is.
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No, you get whatever it is. Send them a money order. Once you figure out what the, like once you settle on the amount.
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And just know you're probably going to have to talk to five or six different bozos before you get to the right one. Because when you call these companies, they want to give you the runaround. So you're going to have to really lock in and say, listen, this is all I have. This is all I'm paying. This is eight years old. If you ever expect to get any money, it's today.
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You're going to have to lock in like a dog on a bone to get this done.
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That's a great way. Listen, that's a great way to start the year out is make sure that you're going back. You're taking control of the things in your money that you can take control of. And as a matter of fact, if you want to make sure that you're staying on track with your financial goals, we've got a quiz out there to check your progress. So head out there. It's our get started assessment.
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It's on the Ramsey website. homepage there so take that assessment if you had it haven't done it yet you need to do it now that does it for this hour of the show john thanks for hosting with me folks in the booth thank you so much we'll see you inside of the ramsey network app after this
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is I can decide I am not borrowing money anymore. And that goes for anybody who's listening. You might not be ready to do the Ramsey steps yet. It might take you a second. I'm fine with that. But today you can decide I'm not borrowing money. You don't have to keep making it worse. And that is huge. It's a negative, right?
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It's what if you can't do the pull up, you do the negative and you can do that today.
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Hey, you're listening to The Ramsey Show. I'm Jade Warshaw. Next to me, Dr. John Deloney. We're taking your calls all hour long. It's a live show, so get in where you fit in. Man, it's a new year, so you're probably facing all sorts of things. If you need help with your life, your money, good mental wellness tips, whatever it is that you're looking for, we're here to help you out.
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Give us a call, 888-825-5225. Let's go to Nicole. She's in Dallas, Texas. What's going on, Nicole?
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Who's, who's ill? Is it something that you have a diagnosis and it's causing you to continue to do prescriptions or appointments?
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Yeah, John is exactly right. You're still going forward because when you do push play on baby step two, you're paying off debt for that time period. And then if something happens, you dip into the emergency fund. That's what it's there for. Then you get back on track. You start, you know, you build it back up to a thousand. Then you start paying off debt again.
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It's just that the truth is certain people's situations are going to cause the baby steps possibly to elongate. And that's okay. Like everybody's situation is not the same. You guys have health issues and so be it. For Sam and I, it took us seven and a half years.
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And so everybody has those nuanced things that are going to cause the baby steps to, you might hang out on one step longer than somebody else does. And it doesn't mean that you're not making progress and it doesn't mean that you're not going forward. There could be some financial pieces of this to address. We didn't ask you much about your income. Are you both able to work?
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Okay. Yeah, I mean, there might be some margin that you can find looking at your budget. I'm not sure, you know, do you guys have car payments? Is there something that you can do short term and very quickly? Is it sell off a vehicle so that you can free up some money in your month to month, right? Those are the things I'd be looking at. When somebody tells me, hey, money is tight.
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We're having a hard time going from baby step one to baby step two or whatever it is. The first things I'm looking at, number one, I'm going, OK, are you investing? Because if you're investing, let's pause that. Right. That's the first thing to do. So if you haven't paused, you need to pause. The next thing I'm looking at is withholding.
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If you're a person who's getting a tax refund every single year, that's a signal that you are doing too much withholding. every single paycheck. So I would get with HR at your company and change that, right? And then the next thing I'm looking at is just basic things. I might do an insurance coverage checkup to make sure I'm getting the right coverage for the right money.
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Most people do an insurance coverage checkup and they find out they can actually get more coverage for what they're paying or they can pay a little bit less. So those are the top three places that people find money just without having to do anything, right? And then after that, the next place I'm looking at vehicle is at your vehicle.
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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 actual, amazing relationships. I'm Dave Ramsey, your host. Thank you for joining us. Jade Walshaw, number one best-selling author and Ramsey personality, is my co-host today. Robert is in Washington, D.C. Hi, Robert. How are you?
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But no, you don't cash out your retirement to do it.
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That's borrowing money at 30% interest. It's going to be a 10% penalty plus your tax rate. So you're going to get a minimum of a 30% to a 40% hit in taxes and penalties. And that's like saying, hey, Jade, do I borrow money at 40% interest to pay off the $7,500? No, you don't. No, no, no.
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No. What kind of debt is the $7,500?
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What do you owe it? Who do you owe it to?
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Okay. So is this all credit card debt?
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Okay. All right. And so you're going to be training for three months or two months? Yes.
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And so I'll try to like... And what will you be making?
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Why are you doing it if it doesn't pay anything?
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What was your plan to cover the house payment? $1,700 doesn't cover it.
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Oh, okay, so it does cover it.
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So while you're in school, can you tutor students?
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I'm trying to figure out how you're getting through that. I still feel like you're going to end up with another $10,000 in credit card debt.
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Information I didn't have. Okay. I'm starting to see it now. The other thing you could consider doing is selling the house.
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If you're going to be flying the friendly skies or whatever skies they are, you know, I don't know why we need a $400,000 house. Just get you a little apartment and go live the adventure. Sounds like that's what you're signing up for is an adventure because you're not signing up for pay. I can tell that. So, yeah, I might sell the house and that solves the whole stinking thing.
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But no, I would not cash out my retirement. I'm going to weasel my way through this and not take a 40 percent hit. This is The Ramsey Show. Thank you for having me. We'll be right back. So switching is easy. So go to BoostMobile.com slash Ramsey. That's BoostMobile.com slash Ramsey. Our EveryDollar team does multiple free trainings for you this month.
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Join live to learn how to break the cycle of paycheck to paycheck in just 90 days. You're going to get a step-by-step walkthrough of the EveryDollar app. learning how to put together a budget to get out of debt, to get on the same page with your spouse. Our biggest budgeting questions are answered live in the Q&A. Over 60,000 people have already joined. Spots are limited.
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Sign up now for free at everydollar.com slash webinar. Jerry is with us in Dallas. Hi, Jerry. How are you?
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Better than I deserve. What's up?
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Right. What percentage of the business does he own?
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So this is not only 45%, it's an adjustable rate 30-year mortgage.
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Yeah. It's called an adjustable rate mortgage. Yes. It's going to adjust. You don't even know.
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So what do you guys make?
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And do you think your income's going to double in the next year? No. Then don't do this deal. It's really, it's asinine. You are signing up, you're playing, you're signing up for financial suicide.
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And your neighborhood might be different from what you expect.
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You may not be moving into that neighborhood. You obviously can't afford it.
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It's not sustainable. You know, everything that comes up, because you don't leave enough room in your budget because you're what we call house poor. You're signing up for poverty. And everything that comes up that you guys want to do or need to do that you don't have room for in the budget is going to be new debt.
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And so you're going to run up a pile of credit card debt, a car debt, and you're going to run up some other debts here and there because you pinched yourself with this house payment. And let me tell you, the way the indexes are set on adjustable rate mortgages is
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They're set – the interest that they give you going in is a bait and switch because it's not even covering the index, meaning if interest rates don't go down, they would have – interest rates would have to go down for your payment to remain the same. So there's a very high likelihood this payment's going up substantially as soon as it's ready to adjust.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
And so you've signed up for a rat in a wheel that's skinny. That's what you've signed up for.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Oh, and you can't afford daycare either.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
You guys are so desperate to buy a house in that particular neighborhood. You've got house fever, and you need to go take a cold shower. Yeah. This is a no. It's a hard pass. No. And it's not because I don't want you to have a house. I don't want the house to have you. This transaction is going to screw up the next decade of your life minimum if you do it.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
You can just go back and say, the mean old nasty guy in Tennessee told me that this was going to screw up my life, and he was right. You can remember that if you go forward with this. Please, son, I love you. Please don't do this to yourself and to your new wife. You're signing up for trouble. You can't afford to live in that neighborhood today.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
We know that because you had to put it on a 30, and you had to put it on an adjustable, and it's still too high a percentage of your take-home pay. There's nothing in this formula that makes sense. Everything in here screams, don't do it, including me over and over. Was I unclear?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah. So we're not the cosmic killjoys here. We're trying to keep you from signing up for what you think is a dream. And we're real sure it's a nightmare.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
That's his percentage, it turns out.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
That's all it is. We just want good things for you, brother. I want you to reconsider this and not do it. And then I want you to back up, pan back, zoom out. Start looking further out. Look for something a little older. Get your foot in the door on homeownership after you're debt-free.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Have an emergency fund, and you put down a good strong down payment, and you buy a fixed rate 15-year where the payment's no more than one-fourth of your take-home pay. And so the translation is it's going to be a lot less expensive house than the one you're looking at. It's going to be nearly as cool as the one you're looking at. But you're brand new, married in Dallas, freaking Texas.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
So if he just took his percentage against his retirement and called it, he's out. Right. And I suggested that to him as well as a possible course of action. Well, it's the natural thing to do mathematically.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Well, it all becomes about the house fever. Yeah. And it's got to buy a house. You got to buy a house. You got to buy a house. Everybody's got to buy a house. And everything makes sense if you buy a house. It's the same stupid thing that we sign up for with education. No matter what it costs, I got to go get a degree. No matter what it costs, I got to get a degree.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Because you can't get ahead without a degree. And so I'm going $200,000 to get a degree in left-handed puppetry. And it'll all work out. It's the same kind of, it becomes illogical because you're assigned a value to something that it doesn't have.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Homeownership is good. It's not all good when you do it wrong.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
And don't do this. That's why they call them brokers. Broker and broker and broker. That's what you're going to be. Don't do this. Don't do this. And so I'm sorry if I disappointed your realtor or your builder, but they shouldn't have told you to buy this house. A person with ethics would look at a young married couple and go, honey, you can't afford this. You don't need to do this.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
And instead, they're just trying to get a commission.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Well, or worse, it gets foreclosed on. Yeah. But it puts strain on your relationship. It puts strain on your career decisions going forward. It puts strain on everything. You do not have margin in this deal.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
It's not good. Maybe she resents him for talking her into the house.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
That was it. That was it. That was the movie. Wow, look at your callback. Look at that. I want, I want, I want, I need, I need, I need.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Good old movie. Richard Dreyfuss, Bill Murray.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
This is The Ramsey Show.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah, he's on the hook for 40% of the debt, and 40% of the debt is to him. So that's just a wash. I mean, it may be a little bit off. There may be a few thousand dollars. It could be like $5,000 off, but it's pretty close. Okay. Then you've got the PPP and you've got the rent. Have you all tried to negotiate with the landlord at all on the final rent?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Jade Walsh, our Ramsey personality, is my co-host today. Thanks for hanging out with us, America. Let's face it, our money and relationships work together to help us win, or they work against us, cause us to lose. You don't have to stay stuck in this area. I'm going out with Dr. John Deloney on a six-city tour. We're going to do the money and relationships tour in this coming Monday.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
We are going to be in Louisville, Kentucky, April the 21st. Durham, a week from today, April the 23rd on Wednesday. Atlanta, a week from Friday, April the 25th. Phoenix, May 5th. Fort Worth, May 7th. And Kansas City, May 9th. Tour starts next week. Kansas City and Fort Worth are almost sold out. Do not wait. Get your tickets right now.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
And go to RamseySolutions.com slash tour or click the link in your show notes. Either way. Spencer's with us in Dallas, Texas. Hi, Spencer. How are you?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
And they have no intention of receiving that from you before their death? No, not at all. And what's the size of their estate?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Millions or tens of millions?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Okay. All right. Well, my suggestion is you all quit pretending that this is a mortgage, all of you. And so what I would do is sit down with them and say, look, we need to restructure this. Okay? We either need to go get a mortgage and pay you all off, and then we'll get the money, of course, when you pass away as an inheritance.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Or you guys can just advance us a portion of my wife's inheritance by just forgiving this loan. Of course. Of course.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah, I don't want to have it, but you all signed up for this awkwardness.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Which is a wonderful gift. And then you guys say, we promise to put the equivalent of house payments into investments so that your grandchildren are multimillionaires.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
That's what you would tell the parents. You tell them their grandkids are going to be multimillionaires because we're going to pay a house payment and then some into investments almost immediately. Because you guys are just pretending. This is not a real mortgage. It's a form of denial.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Well, I've counseled them plenty of times where they had a regular mortgage with the in-laws, which is a mistake, too, because it changes the flavor of Thanksgiving dinner. Have you noticed? The borrower is slave to the lender, and it's weird, and it's awkward. And now every time I'm looking at my father-in-law, I'm looking at my master. Not just my father-in-law. And it's weird.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
I borrowed money from Sharon's dad one time when we were broke. And he's the sweetest, nicest guy possibly to ever live. He is a sweet man. And I felt like dirt drug into the floor every time I walked in that house until I got that thing paid. He never said an unkind word. He never rolled his eyes. But I felt like poop. Same. And it's just awful. I've been there. That's so true.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
It just I mean, and Sharon, she didn't care as her daddy. She didn't bother her. I was the only one with my panties in a while. You know, I mean, it was just my God, I felt awful. And so, you know, and that's kind of he's being pretty chill about it, but he's got a little bit of that going on. So, yeah, I avoid it. I would say, look, I. I would say this is an awkward conversation, mom and dad.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
I want to have it because the plan is for us to never pay it off. So let's just change the structure of it and reduce the thing and go ahead and release the lien and make it a gift, an advanced gift against her portion of the inheritance.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
I agree. I agree. But you need to be sitting there, too. And mom and dad, look, it's silly because you don't ever expect to get the money. So since you're never going to get the money, we don't have a plan to get out of debt. We have to wait on you to die to be debt free. And we don't want to do that. So we're either going to get a mortgage and pay it off ourself. Yes.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Or we're going to pay you guys off or you're going to forgive it. So what do you all want to do? Because this thing of we're going to pay a payment that's not enough to do anything, and I'm just stuck like a rat in a wheel. No, thank you. Yeah, it's a mess. Our question of the day is brought to you by WhyRefi.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
WhyRefi refinances defaulted private student loans, which are different than federal student loans, and it means you can't even make the required payments. If that describes you, contact Y-Refi for a low fixed rate loan customized for you. Y-Refi.com slash Ramsey. That's the letter Y-R-E-F-Y.com slash Ramsey. Might not be in all states.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
And you own 30%. Yeah, and that doesn't equal 74. Okay, so yeah, depending on, okay, the total is going to change when the rent changes. So 40% changes, and it's not going to be enough to cover father-in-law. So his is not going to be a wash as the rent goes down. You follow me on the math equation?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Most of them will take you.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Only one reason to have a credit score. Borrow money. If you don't want to borrow money, you don't need a credit score. Pretty simple. This is The Ramsey Show. You want to know more about something?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
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 actual amazing relationships. Thank you for joining us, America. We're glad you're here. Jade Warshaw, Ramsey personality, number one best-selling author, is my co-host today. The phone number here is 888-825-5225.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
The call is free, and some say the advice is worth exactly what you pay for it. Sarah is with us in Canada. Hi, Sarah. How are you?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Better than I deserve. What's up?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Let's just say you cut the rent in half, then you've got a 150 debt that you would apply 40% to instead of a 160 debt. You follow me? Yeah, that's right. Okay. Then that's $60,000, not $70,000. So your father-in-law is still owed $10,000. You all still owe the rent, and you still owe the others. Right. Right.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
You know, I got a feeling you guys are out of debt.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
All right. And so you're in what we would call baby steps three, four, five, and six. You've got your emergency fund. You don't have any debt except the mortgage, right? Correct. And how much is in your nest egg?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
All right, cool. So there are three things you can do with money, and you should do all three at this stage. Okay? Four, five, and six. You can have fun with it, which is lifestyle and things you're talking about, Sarah. You can invest it, which makes your husband grin, and you can be generous with it. Generosity. Okay.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
giving you should be doing all three and so what we teach folks to do at your stage you're still trying to get the house paid off is another one of the things okay at your stage is to not be necessarily be intense but to be intentional which would include some fun things And so the tradeoff is not how much we invest because you shouldn't be investing more than 15 percent at this stage.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Fifteen percent of your household income should be invested. More than that needs to go on the house. Anything beyond that. OK, now in that budget, then we need to budget some enjoyment. We make several hundred thousand dollars a year. It sounds like you probably got a net worth north of a million dollars counting your home equity and so forth.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
or close, you're in control, you're not flopping around out there spinning like you're in Congress or something, right?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
you're not doing anything wrong you're doing everything right and that's what it's reminding you of and then you can go okay yeah so if you if you spend to the point if you spend irresponsible decisions in there no it's not irresponsible if you spend to the point you're doing no extra on the mortgage and no generosity that's irresponsible yeah it'll tell you if he saves and pays down on the mortgage and there's no fun in a 350 000 household income that's wrong
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Right. Because you need to budget something for fun. So we need to, you know, you actually make enough to do all of it. It's just a matter of how much goes to each. But there's something has to go on generosity that you feel it. Something has to go on the house that you feel it. And something has to go to fun that you feel it. And you've got the money to do all three.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah. And that's a matter of you all budgeting together.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
It's not a matter of age. It's a matter. I mean, if you're 55 and you call me up, you got $80,000 in car payments. We're not even having this discussion. Right. I don't care about your clothing desires. You have a disaster and, you know, screw it. You have to wear what's in your closet. Right. All right. But that's not you. OK, that's not your situation.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Is the lease guaranteed at all?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
And, you know, and the next thing that will happen is the house will get paid off. And then the next thing that will happen is his savings bent will that gift that you have a husband that saves will start to have fruition. And you're going to look up. You've got several million dollars in a paid for house.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Now your generosity and your fun is going to go to a whole nother level while still building wealth. And that's the baby step seven when you hit up there and you've got the house paid off. It frees up yet again. It does it again. But always in baby steps four, five, and six, be intentional and do Jade's adult financial checklist.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Financially responsible adult checklist. Yeah. A frackle.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Okay. You need a frackle.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah, I think that's probably bad. I just made that up right here, and I think we'll let that die today on the air.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Well, then put that one behind us. But yeah, I like that, though. I mean, because what that's telling us is we're touching the bases. Yes. And we're being a grown-up. Yeah. Because when we look at our screen, y'all don't know this, but we have a call screener, Christian, and the folks in our booth, the booth people do the call screening in there.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
And they put up here someone's name, where they're from, in one sentence. About what they're calling about. So my husband and I disagree on our fund money. Is it okay to have fun? When we see that, that line, most of the time it's a different answer than she got. That's right, because they've been irresponsible. And they want to be. Yeah. And they're having a little princess fit. That's right.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Okay, so you've got a personal guarantee on it by one of the other parties because I'm starting to try to divvy this up. Like your father-in-law is going to get his, you guys are going to get the PPP, and somebody's going to have to put some money on the PPP for you all because you don't owe all of it. It's now half of the loan.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Or a little prince fit, whichever it is.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
I work hard and I deserve it. No, you don't. You deserve it if you got the freaking money. That's right. Not because you worked hard. We all work hard. You know, get a little cheese with that wine. Seriously. Unbelievable, right? I mean, we all work hard.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
The issue is, are you a grown-up? Do you have a frackle?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
No, that's right. That's so good. That is so good. Because, I mean, the deal is... Sarah, the answer, you know, the thing is what we might have judged you before we brought you up and asked you questions was not true about you. You're a very responsible person. You all have done a great job together in tandem. And I think the answer to your question overall is you win the argument.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Your husband needs to loosen up a little. That's what it sounds like. You all enjoy this. And these days, Sharon and I look at each other when something comes up and we go, why wouldn't I? Got the money. Why wouldn't I?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
I got your frackle. I hope that dies with that segment. This is The Ramsey Show.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
and you only own 30%, so somebody needs to throw some cash at that for you all. Does anybody in the picture have any cash?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Hey, folks, how would winning $5,000 in cash change your life? This month, we're giving $5,000 to one grand prize winner, and we're giving away a $500 prize every week in May. It takes less than 15 seconds to enter, no purchase is necessary, and you can enter daily to increase your chances of winning. Enter the Ramsey Cash Giveaway until May 31st at ramseysolutions.com slash giveaway.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
That's ramseysolutions.com slash giveaway. Well, let's face it, our money and our relationships are intertwined, and sometimes they're both out of whack. We're going to help you. Dr. John Deloney and I are coming to six cities with the Money and Relationships Tour. Raising great kids, handling money fights the right way, making real friends in the 21st century. Is marriage a good idea still?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Is, uh... Is wealth evil? Ooh. Subjects we could cover. We're going to cover a lot of different stuff. It's going to be a lot of fun. Louisville, one week away. April 21st. Louisville, Kentucky. Durham, Kentucky. And April 23rd, that's a week from Wednesday. In Atlanta, a week from Friday, April the 25th. Phoenix, May 5th. And Fort Worth, May 7th. And Kansas City, May 9th.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Tickets are not sold out. You can still get yours. Please come. We would love to have you. We're going to laugh together. We're going to cry together. And you're going to leave with information that's life-changing. And a lot of interaction in this. It's going to be a lot of fun. RamseySolutions.com slash tour. If you're on YouTube or podcast, click the link in the show notes, please.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Josh is in San Antonio. Hi, Josh. Welcome to the Ramsey Show. Hi, Dave. How are you? Better than I deserve. What's up?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Okay. What's your car, your $7,000 car worth? About $19,000. Okay. And what's her $8,000 car worth? About the same. Okay. And what do you make?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
How long have you been working on this stuff, Josh?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
And when did she lose the baby?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Okay. When you guys get on a detailed every dollar budget and you get fired up, you're going to plow through this debt pretty quick. Okay? Because, you know, $50,000 makes you free. Yeah. And, you know, you could make $25,000 this year at a side hustle. I am trying that. Plus tightening down the budget. And so hypothetically, you could keep the cars.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
But if you have a car that doesn't fit with your family plans anyway, yeah, that's an easy one to offload. I don't recommend if your wife has gone through what she's been through and you all have been through, I don't recommend selling her car right now. Just let her.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah, I don't think we need to throw sacrifice at her today, okay? But I think we do need to sit down and get on a written plan and make this money behave for the first time ever in your lives and get in attack mode. And so since you're probably going to need to do something different on your car anyway, yeah, sell it and buy something for $5,000 and throw the rest of it
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
at debt, and for a little while, while you get out of debt, the next year and a half or so, you drive a hoopty, whoopee. No big deal. You can do that. For $5,000, you can get a very reliable Honda Camry or something like that. Not necessarily pretty. Might need to give it a name. But, you know, it's that kind of car, right?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
But it's my get-out-of-debt car while I'm getting the financial foundation laid for my family growth. That's called being a grown-up and being a good man. I like your question a lot.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Thanks for burying the lead. Okay.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Okay, so here's what we're going to do. Today, we're going to talk about selling your car, and we're going to pay off her car and the stupid home security loan. That was dumber than a rock.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah, it sounds like mathematically any cash you guys can drag out of that business needs to be thrown at the PPP. Mm-hmm. If you can get the PPP down to where it equals your share, then you guys just take it on and move it over onto your personal debt and pay it off. Right. That's your portion of it. Right now, it's double your share.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
And then we're going to start attacking the student loan. And let's see. We've got 17 and 19 is 12 and 7. You got 24 and 10 is 4. Hey, man, you only have $19,000 left on your student loan. Wow. And that's it. And you're driving a $5,000 car. We put the difference on the student loan. We pay off her loan and the other tonight. And we're going to put you on the baby steps.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Baby steps are you take all your savings down to $1,000 and you attack your debt like your life depends on it. Because if you didn't have any payments right now, you would be breathing different as your family is going through this tragedy and this sadness.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
But you've got this stuff hanging over your head and the grief. Agreed? Yeah, exactly. So let's clean it up, man. I think that's a real gift to this emotional situation to pay off her car tonight. I agree. And the home security loan. Oh, my gosh. It's kind of a no-brainer. And then we're going to throw everything else down to $1,000 at the – yeah, you're going to make a lot of progress.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah, you're going to knock it down in 25, 26 tonight. And then when your car sells, you buy a $5,000 car, you're going to knock it down to 19. Oh, my gosh, you're going to be debt-free by football season.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Good, good. That doesn't mean you get to go to any games, but you'll be debt-free. No, you get debt-free, man. When you don't have any payments but a house payment, the next thing you do is you take that $1,000 account and you raise it up to three to six months of expenses. He's going to do this.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
It will get your butt in gear. It's like, oh, no, this just got real. I have to feed this thing.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
It has to buy diapers. Yes, yes, yes, yes, yes, yes. Wow. Yeah, it's a good thing. You have that – moment, we had a debt-free scream in a different segment that the guy said, you know, when the kids got ready to go to college, I had an oh crap moment. When you have that moment, you go, oh man, this just got real. And then you kind of start getting disgusted.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
We make too much money to be this broke. And then you say, I've had it. And when you finally say that, oh, your life is about to change.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah. Yeah. In that case, an emotional necessity, but that's a fair necessity. Good stuff. Good stuff. You're a good man. Hang on, buddy. We're going to give you a... a copy. We're going to give you every dollar is what I'm trying to say. The premium version to help you get started on this budget. I'll send him a copy of Total Money Makeover too.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
So he and his wife have got a roadmap to follow those baby steps and do exactly what I just told him to do. This is The Ramsey Show.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
So if you guys could find $20,000 and or the other sister-in-law comes up with that. So you take the PPP, the father-in-law takes his, and your other sister and brother-in-law, whatever they are, owe the father-in-law a little bit of money and they owe the back rent. Right.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Nicole is in Jackson, Mississippi. Hey, Nicole, what's up?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
I was going to say, do you foresee... I'm not worried about it being notarized. I'm really worried about everybody agreeing to it.
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
No, was there a contract?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Okay, and so that didn't change. You brought up contract three times, but it hadn't changed.
The Ramsey Show
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So what's changed is that his behavior has just gotten a little weird.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
What do you all make?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
But you don't have to cut it by two-thirds.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
doesn't yeah does that make sense yeah so cut it yeah he doesn't make 170 he makes 140 oh well but not 150 no not 50 and sit at home and twiddle his thumbs okay but and call that a master's what's he want a master's degree for anyway in counseling we both are going towards uh mental health counseling
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Well, we're honored. How can we help, sir?
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Notarized won't matter. What does matter is everybody signs it and is in agreement, and that's all six parties.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
No, you gotta give 30 day notice.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
These things are inconsistent with each other. And that does not bring peace. That's called dissonance in the counseling world.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
So they're not all on the same spectrum.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
You move because you're dealing with a twerp, but you work a little more so you can still hit your goals. That's right. And that's called peace. Peace is not lack of working. Peace is lack of money. Lack of peace is lack of money. That doesn't bring peace. Being poor is not peaceful.
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Yeah. OK. And so, you know, I would move. Get yourself in a different situation. You're over this guy and you're done with him. I don't know exactly what he did, but you're done with him. We can tell you.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
OK. So far, all you've said is he didn't fix a toilet. That's the only thing you said. And he and he's. A little whiny about when you use the washer and dryer that you've used for four years. But that's it. So, yeah, move. That's fine. And you're going to pick up a little expense and you're going to start on your master's.
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Okay? Yeah. Three couples. Because I don't want the spouse bitching later that the deal wasn't done and they didn't speak into it. Yeah. Okay? Right. So let's run some numbers right quick, okay? Let's call it 150 because you get the rent taken in half, okay? Okay. So 30% is 60K. No, it's not. It's 45K. 40% is 60K. And so we've got 30, 30, and 40, right? Okay, so you guys take on 45 of the PPP.
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And in order to pay for your master's and the extra expense, you're not going to get to cut your work down to 50K from 170K. You're going to cut it down to maybe 100 or a little bit. Take some of his time off the road. I ain't got any problem with that. But he's not working himself to death.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah, I'm thinking, just to remind everybody, hard work won't kill you. Right before you die, you pass out. You can go get stuff done. I mean, the stuff you and Sam did while y'all were getting out of debt, you were solving for peace by getting out of debt.
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Not by cutting your hours down to nothing. You added 70,000 hours to the middle of the thing, and you went bananas. That's right. You're right. And Sharon and I did the same thing because we were solving for peace, but it required an amazing amount of hours and sacrifice. We lived like no one else so that later we could live and give like no one else.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
No discipline seems pleasant at the time, but it yields a harvest of righteousness, the Scripture says. So, yeah, one of the things we've learned over the years, Nicole, is that Earl Nightingale used to say this, that the things you're willing to do to get to your goals are not the problem. It's the things you're not willing to give up to get to your goals.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
You've got to give up some stuff to get to your goals. You've got to pay a price. And you're going to pay a price. So choose your heart, Deloney says. Choose your heart. Which hard thing do you want?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Pick one of them and take it, and I don't care. If the hard thing is putting up with the landlord and staying in the 800, fine. That's the hard thing you chose. And you want to pull back on the – Pull back on the hours and pull back on the income. Okay, you chose your hard, but you got a new hard. It's going to be a long time before you get a house. Yeah, that's right. You got a new hard.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
One of you is working on your master's and the other one probably isn't right now because you probably don't have the money to do both if you do all that. So you got to choose which thing is going to be hard. And you can't do it all. It's not fruitcake. That's not an option. You can't put it all in there.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Well, but you can't do it all and it all work. It doesn't. And call that solving for peace. It's not. The Money and Relationships Tour is halfway over, and the energy in every room has been unreal. Each stop has been packed with real talk, big laughs, and life-changing moments. Now it's your turn.
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Come hang out with me and Dr. John Deloney in a city near you for a night that could change your money, your relationships, and your future. This is your last chance to join us in Phoenix, Fort Worth, or Kansas City the week of May 5th. Grab your tickets today at ramseysolutions.com slash tour. Our scripture of the day, the Lord will fight for you. You need only to be still. Oh, shut up. I can't.
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It's so hard. Will Rogers said the road to success is dotted with many tempting parking spaces. Okay. Oh, you can park or you can drive on the road. Interesting. Okay, I got that, Will. He was classic. Crystal's with us in Portland, Oregon. Hey, Crystal, what's up?
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To start with, the emergency fund is not to tide you over in the case of loss of income. It's to cover emergencies. One of those could be a loss of income. Another could be the transmission goes out. Another could be a family member is ill and you need to buy some airline tickets instantaneously to fly across the nation to see them.
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You could have all kinds of things that have nothing to do with loss of income. A medical emergency would not be a loss of – it could include a loss of income, but it doesn't necessarily. And so that's the first thing.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Then the second thing is what ends up happening – and Sharon and I have experienced this, and I know Jade and Sam have too – is that as you move along – and you guys have done a wonderful job, Crystal – Your likelihood of actually what is defined as an emergency that's big enough to touch the emergency fund gets bigger and bigger.
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When we first started, a tire going out on the car was an emergency. Now we yawn and fix the tire. You know, because we don't have any payments. There's plenty of room in the budget. It's not exactly an emergency. But when we were broke, a blown tire was an emergency. You follow me? And now that you guys have a substantial net worth, you can do just about anything you want to do.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
You've done a great job of paying off everything. You don't have a house payment. And so if your heating and air goes out and it's $15,000, you probably can just cash flow that. Agreed?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
So you wouldn't touch the emergency. But can you imagine 10 years ago if the heating air went out and it's 50? Yeah, you'd be touching the emergency fund. You weren't at this stage then. So what is an emergency that is big enough to touch the emergency fund? It's got to get pretty big the more wealthy you become.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
your father-in-law takes 60 off of what he's owed. So now he's owed 10 and there's 10 or 11 or whatever owed to the landlord and they owe you the PPP. So the somebody, you know, that's the way to move it around. Y'all start just assigning this, but you guys need to get some cash out of this to throw at this PPP. Cause I don't want you to get stuck with that whole thing.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
So your actual need for the cash emergency fund does go down the wealthier and more debt-free you get. Does that make sense?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
And your net worth is what?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Okay. $25,000 is not bad. I mean, you could just keep that in a cash in the safe. It wouldn't be a big deal.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
I'm not telling you to do that. I was joking, but... You know, and I wouldn't, but, you know, you see what I'm saying. It's not a, but 20, if you took the emergency fund to 5,000 and invested the other 20, it doesn't change your life. Okay. It doesn't really change anything.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
So if you want to, you can, because if you needed more than $5,000, then you could go, you know, just take some money out of that mutual fund that you put it in, right? And if it happened to be when the market was down because maybe the president screwed with the market with the tariffs and all that garbage, then, you know, at that moment you had to pull some money out.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Well, you might lose a little bit. Oh, well. Instead of 3.2, you have 3.199999. Oh, well, you know, I mean, you're going to be OK. So it doesn't it again. It doesn't do away with the emergency, but I still would have one because some liquid cash to lay your hands on if you need something quick.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
It's a good thing to have. And I don't think $25,000 is too much in your world. If you told me you had $100,000, I'd tell you to back it down to $25,000. Yeah, yeah.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
But I have noticed, have you noticed that too with you and Sam, that as you get further down the baby steps, what we used to call an emergency now is a yawn.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah, you know, the kid bumped their head, and we've got to get staples in the emergency room, you know.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah, I mean, one of the grandkids bumped his head the other day, and, you know, that's part of raising a kid. They split their head open, so you've got to go fix it, right?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Well, I mean, Sharon, because we went completely bankrupt, we had an emergency fund for the emergency fund. I mean, and she told me if I touched either one of them, I was going to die. I mean, she can't stand it. It's like that touches her nerve from the old days.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Bob's in Birmingham. Hey, Bob, what's up?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Well, your gains are going to – oh, if you do it into a Roth, that's fine, but you can't get that much into a Roth. Can you do a 401k Roth with the government? Yeah.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Can you load that one up?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Cause that represents half of the debt, not 30% of the debt. So you just got to talk it through. It's a math riddle if everybody's of the right spirit. It's just a math riddle. And you're getting rid of the personal guarantees or you're taking on the personal guarantees where they actually belong. And this, ladies and gentlemen, is why I told you during COVID not to take out those freaking PPPs.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
But you don't sound like you need money.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
What size of your nest egg?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
You told me you're 61, yeah, and your wife's 50. Okay. Okay, so there's two options. Use the Roth. I would not use traditional because it's going to be subject to RMDs when you're 72. Required minimum distributions, okay, or 74. I think I moved it forward. But anyway, either way, you're going to have to – it's going to screw up your taxes late in life, and I wouldn't do it.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
So I would either put it – get with a smart investor and put it in a low turnover mutual fund – to where the taxes don't come due. And if they do, it's very few of them. Or I would load up her Roth or both. Okay. Any of those are fine.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
But I would not put it in your traditional because that traditional as an inherited IRA has to be distributed with your heirs in 10 years because they're going to clean it out and all the taxes are going to come due. With a Roth, there is none. And so it's all tax-free. It's tax-free in an inherited IRA. So it doesn't cost anybody anything. We're done. So that's why I love the Roth aspect of this.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
So I would do two individual – I'd load up your Roth. I'd load up your Roth and her Roth for sure. I might load up some over in her fund. You've got $30,000 to work with. And, you know, you could do what's called a low turnover mutual fund so the taxes aren't activated.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah, that's – That's a good way to do it. The low turnover means they don't sell the stocks inside the mutual fund very often, so the taxes aren't activated. Got it, got it. They're not activated until you sell the fund itself. And when you do, it's a taxed capital gains rate, which is 15% rather than ordinary income, which the traditional would be taxed at ordinary income.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
So we're going to do a low turnover mutual fund and or some mix of her Roth and individual Roths. And I would sit down and run the numbers with your SmartVestor Pro, clicking at RamseySolutions.com on SmartVestor to find out who we recommend in your area. And run the numbers out and see how that's going to work out for you.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
But I don't want to be subject to the problems of traditional, which is full tax bill, RMDs, and inheritance problems. It creates all of those. So I'm always going to move over to Roth for those reasons, especially at your old age. So, good stuff. That puts us out of the Ramsey Show and the books. We'll be back with you before you know it.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
By the way, I did say that. You can go back and look it up in 2020. I yelled about it and I got yelled at because I was an idiot. You know one of the first things I discovered working in the financial world is how absolutely devastating it is when the breadwinner of a family dies. And there's too little life insurance or none at all.
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Grieving families are suddenly left behind scrambling to pay bills and trying to make ends meet. I also discovered that there are a lot of ripoffs in the life insurance world like that whole life crap posing as an investment opportunity. What you need is level term life insurance, usually 10 to 12 times your income. which is the smartest, most affordable way to protect your family.
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The key is finding an independent broker who represents a ton of companies and works for you, not for the insurance company. This is exactly what my friend Jeff Zander and his team at Zander Insurance are all about. They shop the term life companies to find you the best options, and they've been around for over 95 years. so you know they'll be there when you need them.
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Zander is the real deal, and that's why they've handled all my personal insurance for over 25 years. I trust them, and you can too. Visit Zander.com for instant online quotes or for a more personal touch. Give them a call at 800-356-4282. I love a good math riddle, so I can't stop messing with it. If you happen to listen back to the podcast, Robert, when we play it back, here's the formula.
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Father-in-law has $70,000 owed to him that he borrowed on his 401k. So his 40%, if there's $150,000 in debt, is $60,000. That leaves $10,000 owed to him. Whatever the rent is, it should be around $10,000 with the landlord negotiation. and whatever is owed to father-in-law, and everything above $45,000 on the PPP is paid by the sister-in-law. Sister-in-law's on the hook for $45,000 also.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Okay, who owns the business?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Robert's on the hook for $45,000 of the PPP. So sister-in-law owes father-in-law $10,000, and she owes the rent, and she owes whatever the difference is there. That's going to be another $10,000. She should go borrow that money and throw it on the PPP. the little bit of difference.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
They got the remaining... They got 45,000 of the PPP left. And that's if it's only 150. Now, if you're able to sell some stuff and do some liquidation sales and all that, every dollar you reduce this changes that formula.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Because you're taking the total down. And, you know, what I'm going to do is go ahead and clear the rent off as quick as possible, and then I'm going to work on the PPP as quick as possible. And father-in-law is the last in line.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Well, you throw it at the debt, and it automatically reduces it. If they reduce the debt with the cash they get from the sales, then it automatically reduces by the exact same percentages.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah, the rent goes first in the PPP, father-in-law's third. There's only three items on there, and he's last in line by far.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Because he's the easiest to work with. Yeah, he's in control, and he stepped up and stepped into it, much like Robert's wife did when she signed that PPP, but still a problem. But the PPP will come take you out. I know it.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
I want that thing gone, but the rent's only going to be like $10,000.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah, so if you could get $20,000 in liquidated dollars, it changes this formula pretty dramatically.
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Yeah, I hope they can get some money coming in. But it's a sad situation. But the good news is it sounds like they were doing it on a fairly – the relationships are – he didn't bring up that they were all fighting. Yeah, that's true. And I think if they were fighting, he would have said so. Very interesting. Lee's with us in Spokane. Hi, Lee. How are you?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Okay, so what percentage do you own?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Okay, and what is the nature of the $160,000 in debt? What kind of debt?
The Ramsey Show
Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Okay. And so are they providing, while you're doing flight attendant training, they're providing food and housing?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
And you're going to rent your house out for how much?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
Okay. Why can't you just throw that at $7,500?
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Smart Money Decisions Often Mean Sacrificing Today for Tomorrow
You've got to pay a house payment.