Jade Warshaw
Appearances
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?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Oh, is that your deductible?
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Can you go down in value on it? What's it worth?
The Ramsey Show
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.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Well, if it's worth 11,000.
The Ramsey Show
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.
The Ramsey Show
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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The Hardest Decisions Are Often About Money & Relationships
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Somebody else gets the prime rib.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Can I ask you a question?
The Ramsey Show
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?
The Ramsey Show
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
The Ramsey Show
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.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
You just made a clear choice.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
And it sounds like they've chosen the wrong enemy to direct their guns at, right?
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Same with your marriage. I gotta believe it's the same thing getting back, right?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
I love that. That's good, John.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
This is The Ramsey Show.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Get in where you fit in. What's that from?
The Ramsey Show
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.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
It is. I don't know where I got that from.
The Ramsey Show
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?
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Yeah, I wonder about that.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
Yeah, I want to know that.
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
The Hardest Decisions Are Often About Money & Relationships
What's your husband think?
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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
The Ramsey Show
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.
The Ramsey Show
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
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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...
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
You Can Build Wealth No Matter Where You Are in Life
Julia, do you know, or are you guessing, do you have a budget?
The Ramsey Show
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
The Ramsey Show
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
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.
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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
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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.
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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?
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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.
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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.
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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?
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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.
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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.
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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.
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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.
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Don’t Let Toxic Money Situations Keep You Trapped
What did you need credit for? What were you trying to accomplish?
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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.
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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.
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Don’t Let Toxic Money Situations Keep You Trapped
Today's question of the day is brought to you by YREFI. YREFI refinances defaulted private student loans and builds a custom loan based on your ability to pay. You'll have a payment that you can afford with a low fixed interest rate that you couldn't get anywhere else. So you can, this will help you stick to your budget and get work on the debt snowball. So go to Yrefy.com today slash Ramsey.
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That's the letter Y-R-E-F-Y dot com slash Ramsey. And remember, it may not be available in all states.
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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?
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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.
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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.
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Don’t Let Toxic Money Situations Keep You Trapped
So if you haven't already, whether it's this show, The Ramsey Show, or any show on The Ramsey Network, making sure that you're liking it, subscribing it, sharing it with your friends is really, really important to us because we care about what you think. And we care about that so much that we do an annual Ramsey Show listener survey every And it's just where we find out, you know, from you guys.
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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
But there are two simple ways that you can participate. You can either text the word survey to 33789, or you can visit ramseysolutions.com slash survey. Or if you're listening on podcasts or YouTube, you can click the link in the description and do it like that. But sign up today and you could win a $500 gift card. Amazing.
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
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
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
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
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.
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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,
The Ramsey Show
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.
The Ramsey Show
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
The Ramsey Show
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
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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.
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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.
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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.
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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
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Surviving the Money Storm Starts with Tough Choices
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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.
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Surviving the Money Storm Starts with Tough Choices
Talk about the role that sort of thing plays in the motivation of the worker.
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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.
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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.
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Surviving the Money Storm Starts with Tough Choices
All right. This is controversial, and I own that.
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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.
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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.
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Surviving the Money Storm Starts with Tough Choices
I mean, look at the graphic. Look at the graphic on that thing.
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Surviving the Money Storm Starts with Tough Choices
There you go, Kim. So now I've got a ruling.
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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.
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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.
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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?
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Surviving the Money Storm Starts with Tough Choices
Oh, my gosh. And your newborn son?
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Surviving the Money Storm Starts with Tough Choices
Oh, my gosh. Thank goodness. But the rest of the house is okay?
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Surviving the Money Storm Starts with Tough Choices
Oh, my. That is crazy. Well, I'm so glad everybody's okay.
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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
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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.
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Quit Letting Broke People Give You Financial Advice!
And you can't get another car on payments.
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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.
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Quit Letting Broke People Give You Financial Advice!
Well, it is fraud. Let's be clear about that.
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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?
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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?
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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?
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Yeah. And the only exception would be the IRS. That's the only thing that jumps to the top of the list.
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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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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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But is there a limit that you'd give a 25-year-old as a disbursement?
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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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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.
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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.
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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?
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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.
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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.
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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.
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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.
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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?
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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.
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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
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
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
Make Money Choices Today That You Won’t Regret Tomorrow
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?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Get used to the idea. I'll tell you what it is.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
And I know. I think you're moving too fast.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
But you don't feel right about it. If you don't feel right about it, don't do it.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
They're at an impasse, though.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Yes, sir. Interesting. What's your combined incomes? $150,000. Okay. How often does this happen?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
No, it's everything. Why do you think he's scrutinizing it so much?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
That's the spirit that we use to do that. Right.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
So it's you guys deciding on what's a normal amount and what's considered overboard.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Okay, make it happen. No. I agree.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Yeah, that's the therapy part of it.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
And I'm like, I didn't sell one dat gum.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
I think it was like 150 or something like that. It wasn't a whole lot.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Thank you. Thank you. Thank you. Thank you.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Thank you. Thank you. Thank you.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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Make Money Choices Today That You Won’t Regret Tomorrow
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Make Money Choices Today That You Won’t Regret Tomorrow
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The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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...
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
And is it beyond just, Well, you know, they're there when I need them. And what does that even mean?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Yeah. I think so, too, because.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Oh boy, how she starts the conversation. Or sets it up. I've been thinking.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Okay. Okay. I think I understand.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
That's wild. Okay. How much do they want?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Did you know that on the front side? Or is this new information?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Okay. Okay. That's okay. Whatever you guys decided, that's the deal. All right.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
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.
The Ramsey Show
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?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Okay, and how much was that loan?
The Ramsey Show
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
What are you going to be making?
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
And then it transfers to their children's children.
The Ramsey Show
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?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Like what what's the transition point?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
What a blessing. What a legacy. Well done.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Awesome. Listen, that's what Ray would do. That's what Dan would do.
The Ramsey Show
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.
The Ramsey Show
Make Money Choices Today That You Won’t Regret Tomorrow
Well, what do you have to spend?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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...
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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,
The Ramsey Show
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
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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
The Ramsey Show
Normal Is Comfortable, but Comfort Doesn’t Build Wealth
That's it. That's all you get.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
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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 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.
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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.
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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.
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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.
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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.
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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.
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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?
It's been over a decade and it truly can feel overwhelming. That's why Dave is Dave Ramsey wrote a new book called Build a Business You Love, where he unpacks how he took his business from a small card table in his living room to a $250 million business. It's the proven system for business owners to grow faster, avoid common mistakes, and create something they're proud of.
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
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
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.
The Ramsey Show
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.
The Ramsey Show
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,
The Ramsey Show
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
You're listening to The Ramsey Show. Thanks for hanging out with us. The Ramsey Show Question of the Day is brought to you by YRefi. Student loan debt is a swamp. Thousands of people find it hard to escape from. So don't be another statistic in the student loan swamp. Wow, that's a real thing. Student loan swamp. Wow. For distressed private student loans, there's YRefi.
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Be Prepared: Math Doesn’t Care About Your Life Situations
We trust YRefi because they help you with low fixed interest rate. to get you 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 about 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
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
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.
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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.
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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...
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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.
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Math Is Important but Behavior Change Is What Matters
Is that the one that's upside down?
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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?
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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.
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Math Is Important but Behavior Change Is What Matters
Okay. And what is the side gig?
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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.
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Math Is Important but Behavior Change Is What Matters
So I just kind of want to know where your head's at on those.
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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.
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Math Is Important but Behavior Change Is What Matters
What's the $10,000 car? What type of vehicle is that?
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Yeah, I wouldn't get rid of that.
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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.
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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?
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Three. And what are their ages?
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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.
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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.
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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?
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Math Is Important but Behavior Change Is What Matters
Well, you said you're welcome.
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Math Is Important but Behavior Change Is What Matters
Got you. Like you are welcome here with us.
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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.
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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?
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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.
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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?
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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,
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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
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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.
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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.
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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.
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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.
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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?
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Math Is Important but Behavior Change Is What Matters
Do you have debt? I'm sorry? Do you have debt?
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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?
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Math Is Important but Behavior Change Is What Matters
I'm just trying to understand. So you got this gig.
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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
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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?
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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?
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Math Is Important but Behavior Change Is What Matters
I want to know what you owe on this car.
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Math Is Important but Behavior Change Is What Matters
Okay. I'm fine with that caveat.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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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.
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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.
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Math Is Important but Behavior Change Is What Matters
But hit me with the free part.
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Math Is Important but Behavior Change Is What Matters
You did. It made you come up with better ideas.
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Math Is Important but Behavior Change Is What Matters
Next on the list is you start taking a cut.
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Math Is Important but Behavior Change Is What Matters
That's true. That is very true.
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Math Is Important but Behavior Change Is What Matters
Ken, good job. That's all I can say.
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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.
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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?
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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?
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Math Is Important but Behavior Change Is What Matters
Spring has sprung in the Nashville area.
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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.
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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?
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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.
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Math Is Important but Behavior Change Is What Matters
Or maybe it's you paying off debt and freeing that up in monthly payments.
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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
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Math Is Important but Behavior Change Is What Matters
What's in your IRA and what's in your HYSA?
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Math Is Important but Behavior Change Is What Matters
And anything else? Any other money anywhere we should know about?
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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.
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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.
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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
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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?
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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?
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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.
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Math Is Important but Behavior Change Is What Matters
I'm working another six years or so, and I'm...
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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
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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?
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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.
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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.
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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.
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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?
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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.
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Math Is Important but Behavior Change Is What Matters
And how many of the kids have special needs?
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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.
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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.
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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.
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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.
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You Need To “Happen” to Your Life Instead if It Happening to You
Yeah. Tell us about it.
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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.
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You Need To “Happen” to Your Life Instead if It Happening to You
I know, that's right.
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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,
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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
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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.
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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.
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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.
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You Need To “Happen” to Your Life Instead if It Happening to You
Well, I also don't want to go to jail.
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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.
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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.
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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?
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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?
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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?
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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
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
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?
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
It's not wonderful for LA, but it's wonderful for the rest of the country.
The Ramsey Show
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
The Ramsey Show
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?
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Maybe. How many kids do you want? Maybe. She wants five.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
And what do you take home right now? Oh, $33,000.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Do you know what he could sell it for a private sale?
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
I think that would be hard to do. I'd probably go back...
The Ramsey Show
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.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
So you could probably just pull up the past three or four month statements.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Get your name off of it and don't borrow any more money. And you'll be good.
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
I think they're okay. Now, well, I mean, here's my thing.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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...
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
Man, it really is. Ken, do you ever listen to Jefferson Fisher? No.
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
Stop Letting Excuses Steal Your Wealth
So did you learn from that though? Well, I did.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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
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
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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?
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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.
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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.
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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.
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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?
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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?
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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.
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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.
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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?
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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.
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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
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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.
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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.
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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?
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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?
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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?
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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?
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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.
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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?
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Your Debt Should Make You Uncomfortable
Oh, gotcha. Okay. So are you a very high earner?
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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.
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Your Debt Should Make You Uncomfortable
And that's just sitting in savings. And then how much debt do you have?
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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.
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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.
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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?
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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.
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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?
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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?
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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.
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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.
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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.
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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.
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Your Debt Should Make You Uncomfortable
Interesting. So is that why you like it separate because his feels overwhelming to you?
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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.
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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.
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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.
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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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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.
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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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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.
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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.
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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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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...
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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...
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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
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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.
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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.
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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.
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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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
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The Ramsey Show
Money Isn't the Problem—Your Behavior Is
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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?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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 –
The Ramsey Show
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...
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
Money Isn't the Problem—Your Behavior Is
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.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
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,
The Ramsey Show
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.
The Ramsey Show
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
The Ramsey Show
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.
The Ramsey Show
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.
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You Have To Mentally Take Debt Off The Table If You Want Financial Peace
Sure, sure.
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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.
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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.
The Ramsey Show
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.
The Ramsey Show
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.