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
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.
The Ramsey Show
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.
The Ramsey Show
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
Don’t Let Toxic Money Situations Keep You Trapped
Good advice, Rachel. Yeah. Viola Davis said, don't let yourself on fire to keep someone else warm. This is the Ramsey Show.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
All right. You're listening to the Ramsey show. I'm Jade Warshaw. Next to me is my good friend, Rachel Cruz, taking calls all hour long, your life and your money. Uh, if you have a call, you can call in our phone screen or we'll pick up. That number is 888-825-5225 in order to get involved. All right, Rachel, let's go to the phone lines. We've got Leah. She's in Rochester, New York.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
I mean, it sounds like everything that you are saying are very important things. And so you are thinking about the right things. I think for Rachel and I, it's just narrowing it down to what's most important right now and kind of giving you a step-by-step on what to focus on first, second, third, fourth, that sort of thing.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
From the Ramsey Network, it's the Ramsey Show. I'm Jade Borshaw. Next to me is Rachel Cruz. And we're your hosts for today. We'll be taking calls about your life, your money, your career, your relationships, really whatever it is that you want to talk about. As long as it has some connection to your money, we're here for you. It's a live show. So if you want to get in, you can.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
What did you need credit for? What were you trying to accomplish?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Is that including the child support?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
So what do you get? What does he send?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Can you go back, Leah, can you clarify for Rachel and I, when you say $44 a week, are you saying $4,400 a week is what you're supposed to be getting from the dad?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Got you. And you're only getting $44 a month right now?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
a hundred dollars um he just pays me himself like weekly so in total let's just say like around 560 right a month in child support in total 560 yeah okay okay um and you mentioned okay you mentioned earlier on about roth iras and things like that um i right now doesn't seem like the time to do that. It seems like you've got bigger fish to fry.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
You've got a, an attorney fees that you're going to have to pay. You've got a car that doesn't have much more life in it. Um, did you, did you say how much you have saved? You said you're able to put a little aside. What do you, what do you have in savings right now?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Okay. If I were in your shoes, I think I'd be focused on stacking up some money for this car because if this is your only mode of transportation, you're going to need to be ready for that. What do you think that's going to cost you? Have you looked around?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Well, we're not going into debt for it. So you're only going to be able to buy what you can afford to save up and get. That's really what's going to inform this decision. Okay, I see.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Yeah, I don't want you let us clarify at this point with anybody, not just you, anybody who calls and we're never going to suggest debt, but specifically here because your income, you know, you can't afford to add any other risk or frustration or stress or anxiety to this equation. And if you do debt, you're definitely adding that. The good news is you've got $950 saved.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Your car hasn't busted yet. So you've got time to set some money aside. You've got some time to do some shopping, figure out.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
That changes your whole... That changes everything for you.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Oh, very, very good. This is The Ramsey Show.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
This is The Ramsey Show. Happy New Year. Is it still, can we still say Happy New Year? It's still January. I feel like you can say it for a while. I feel like it's festive.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
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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Don’t Let Toxic Money Situations Keep You Trapped
That's the letter Y-R-E-F-Y dot com slash Ramsey. And remember, it may not be available in all states.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
I mean, part of me... And Rachel, I've even heard you say this. I think with kids, they go so much more by what you do than what you say. I mean, of course, they're listening to what you say, but your actions are backing it up. And so if you're in baby step two right now, they're seeing in real time what it looks like.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
As long as you're open about it to the proper extent, they're seeing in real time what it looks like to... be on top of a budget, checking your budget, checking in with your spouse, making smart choices. They're seeing that more than anything.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And weirdly enough, I don't think we give enough credit to that because most of us, if you were to say, give me a picture of what money was like when you were growing up, most of us could say, oh, when I was growing up, my parents never talked about money. Or when I was growing up, you know, it... Things were never tight. It just felt like we had what we need.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Or when I was growing, most of us can look back and we have a very clear picture of the way money was presented to us. And so knowing that as a parent, I think like I know for Sam and I, we're always very clear about, oh, you know, we're doing our budget for the month or we talk about it.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
So knowing that when they look up, they're going to go, oh, yeah, my parents, they always mentioned a budget or they were always very mindful of what we were spending. That's right. They always said things like, well, if you can save it up, you can get it. So
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
There is a practical side to it, but there's also so much just in the intentionality of everyday language and how you're speaking about it with your spouse, I would say.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Yeah, that is so true. I heard someone say a long time ago, it wasn't that long ago, but whenever your kids hear something for the first time from you, the parent, you become the expert, right? So that could be, I don't know, relational, that could be with money. But in your home is probably going to be the first time that your kids start hearing about money, thinking about money.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And so you become the expert. And so you have to be very intentional about what you're putting out there towards them. It's just a good kind of framework to think through when it comes to that. But for sure. Very, very good. All right. Let's go to John Fargo, North Dakota. What's going on, John? Hey, Jen, Rachel. How are we doing today?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Okay. Yeah, listen, I love great benefits. I think that that's a wonderful thing. It's a wonderful cherry on top of whatever it is that you're doing and your salary and everything like that. I'll also say this. Everyone thinks their situation is the exception to the baby steps.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Um, and the truth is it's not, um, I would, there's never, for me, there is never a time where I would say, you know what, in baby step two, I'm going to invest as well, because the truth is this is a proven method and it's what works. What we find is that when you focus on more than one thing at a time, you go a lot slower.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And when you have a slower pace, it's harder to stay motivated over the longterm. Right. And so you've probably heard it said before, your biggest wealth building tool is your money. And that's true. And that's probably what you're thinking. You're like, man, if I can... I've got this money at my disposal. I've got this match at my disposal. I've got to go quickly.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
But the truth is, if you were to split your resource in that way, it's going to take you that much longer to pay off your debt. And when it takes you that much longer, the chances of you becoming less motivated are very, very high. And so for that... That's my first reason I wouldn't do it. The second reason I wouldn't do it is because...
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
If you're jumping around in the baby steps and you go, OK, I'm going to invest instead. Chances are you also have not saved up three to six months of expenses, which means if something were to happen, the first place you're going to go is wherever your money is, which is to your 401k or to credit in order to borrow. And so there is a reason that these baby steps are in the order that they're in.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
It's because it's going to serve you best regardless of what life throws your way. Does that make sense?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Hold on, hold on, hold on. You're saying you put $7,600 towards your debt every single month, and then you're saying that your contribution to the 401k would be what?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
So you're saying, oh, if you put in $6,000 for the year, they're going to times that by four? Is that what you're saying? So it's going to be $24,000?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
So you're saying that's out completely for the year instead of the month?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
I think the whole conversation of this is what you want right now as opposed to what's going to work best for you long term. You're going to do what you want to do because you're a grown man and we can't stop you from doing that. But if you want to know how to work the baby steps, we just told you how to do it. This is The Ramsey Show.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
From the Ramsey Network, welcome to the Ramsey Show. I'm Jade Borshaw. Next to me is my good buddy, Rachel Cruz. We're your hosts for today, taking calls about your life and your money. Hope you're having a great new year. I hope it's off to an excellent start. And if you need any help with your money, your relationships, your career, you are in the right place. We're here to help.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And that's what we plan on doing, taking some live calls from you guys. So let's get on with the first call. We've got Beth, who's local, Nashville, Tennessee. What's going on, Beth?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
What did you think? Can I just ask when those timeframes were happening, where did you think the money was coming from?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
But if you had to ask yourself, where did you think the money was coming from? Did you have something in your heart that you thought, oh gosh, we're probably on credit cards or we're probably on.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
So today, what is the financial snapshot? Is it still the $80,000 in credit card debt and that's it? Or give us a today picture of what's going on.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Neither of you were good money managers. Um, but I also, before we move on, can you tell me about the house? Can you tell me what you owe on the house and what it would, what it's worth?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
about 360 okay okay so the good news is you still got a ton of equity in it you're no longer together are you no longer together what's happening here it sounds like somebody that you would no longer be in a relationship with unless you're doing deep work to fix this so what's taking place with the relationship trying to do the deep work for 30 years and i've realized that it
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
I mean, let's understand this kind of big picture because, Katie, you're not the only person who has gotten that misinformation. The truth is debt is a product. It is a product that institutions make money off of. It's not something that's required. It's not a law. It's not like your driver's license where you have to have it in order to drive a vehicle. But it is marketed that way, right?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
This is The Ramsey Show. We've got open phone lines, so if you have a hankering question about your life, your money, your career, your relationship, daycare, whatever it is that's on your mind, give us a call. We can help you out with it. Maybe it's your budget. It could be any of those things. We'd like to help. We've got Gigi on the line from Los Angeles, California. Gigi, what's going on?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
The number is 888-825-5225. And we'll pick you up on the line. All right, Rachel, you ready to get into it? Let's do it. All right. Katie is in Austin, Texas. What's going on, Katie? Hi. Hi, how are you?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
It's marketed as this thing that you can't live without, you can't do without. And they'll even make it seem as though if you want a car, you need a loan. If you want a home, you need this. They make it seem that way, but that is not the truth. The truth is, like Rachel said, a lifestyle without debt is absolutely there. You do not need a credit score.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
How much are you making? What do you bring home every month?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
OK. And is your is your husband working while he's in Uganda? Does he have any money to speak of in this?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
OK. Yeah. Yeah, there's part of this where this feels a little bit like, not a storm, but something that does need to be prepared for. Because what you're saying is if they got here next month, I mean, how likely is that?
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And the only reason it seems that way, it's because it's such a well-marketed product that they have fooled us into that. And there's a lot of money that's made on it. And so a lot of people have kind of locked their arms around making it seem as though this is the case. And it's truly, truly, truly not.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
We know it's real now. Okay. Really funny. Okay.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Part of me feels like right now you said you're putting $1,500 a month extra towards the debt. Part of me is like, okay, if you put a thousand aside, you can be done with this in six months and still have made some progress on the car if you wanted to. Or you could say, I'm going to stop one and do the other.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Like I'm going to stop, I'm going to save up $6,000 and then I'm going to push play on the car, which is probably what I would do. Because if what you say is true, like it could literally be next month or in two weeks or turn around and be in a year, it's not going to matter. They're both going to be taken care of. Because it's considered a four wall at that point.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
I mean, if you put all this money towards it, you're going to be done in four months. If you put the whole $15,000 or $1,500 towards it, you're going to be done super fast. So, you know, you could probably do either and be fine. But to Rachel's point, prioritizing the house first is probably it.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
The big areas where people kind of, I don't know, Rachel, I would say butt heads on us are, okay, then how do I buy a car? Okay, then how do I rent an apartment? Okay, then how do I buy a house? I feel like those are kind of the top three areas. And rightfully so, you should be asking those questions.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And I don't know. I mean, you didn't mention this. It seems like you might be in an expensive area. If there's no purpose in you being, I'd look further out, especially if you guys have goals to pay off debt. I don't know if he has debt, but it could be worth it to-
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Well, and that also raises the point of, we talk all the time when it comes to mortgages, yeah, the percentage shouldn't be any more than 25% of your take-home pay. And we talk about that includes taxes, HOAs, like any fees, that sort of thing. But the truth is it still applies with rent too.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
Because the overall principle still is in place, which is if it takes up more, especially more than 30%, you're really going to feel that. Even if you're only renting for the next three years or whatever it is, it still cuts so much into your day to day that you're going to feel it.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And especially if you're trying to get out of debt, you're definitely, it's going to take a toll on your month to month expenses and what you can really accomplish. Yeah.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And the truth is, we would say if you're in a car loan right now, yeah, work to pay it off very, very quickly. And then your next car, make it a point that I'm going to save up and pay for cash, even if I get something a little less expensive, right? That's how you get out of the car loan debt. And then for somebody who says, hey, I want to rent an apartment.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
That's really good, Rachel. Having that foresight to go, okay, what season of life are we in? Are we in a season of life where we're still having children? Could there be the idea of one of us staying home? That is so, so smart. Really good. This is The Ramsey Show.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
You're listening to The Ramsey Show. I'm Jade Warshaw. Next to me is my buddy, Rachel Cruz, taking your calls this hour. Your life, your money, your New Year's resolutions. Get in where you fit in. So, Rachel, there's a lot going on with the housing market. We're seeing some trends. You've got some input on it, so I'm going to let you take this and drive it on home. Yes.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
The truth is, there are lots of apartment complexes that will say you can't We only go by credit score. That's true. There's also a lot that will go. And if you bring in other proof of purchase, whether it's your cell phone bill, electric bill, maybe you lived with your parents and paid them rent, they will use that. So that is the truth. Same thing, rental cars.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
So the value of our homes are still it is still going up, which truly is good news because these are investments for us and we want we want them.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
be going up um even if you're not in the housing market yet that's a good sign for all of us but rachel you made a really good point because when you go into this you've got to know your numbers you've got to know what your parameters are because they will like lenders will allow you to borrow sometimes up to 50 yes maybe even more of what you're taking home and so just because they say you're approved that is not your signal to go all right
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
What homes cost now as a homeowner. I'm not. I mean, think about it. Because this is the thing. If you're on the sidelines right now, you're definitely feeling some type of way because you're like, man, I wanted to get in on the market. But it's good news for all of us because it tells us that the market is still strong and that things are doing well.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
You can rent a car without having a credit card. So anything that tells you otherwise, Rachel and I are here to tell you and kind of debunk that myth because it's not true. And even the biggest one, Rachel, buying a house.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And when you do get in, you're going to want your property to appreciate as well.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
I mean, Sam and I... South Florida was one of those hot areas. And when we got our, our first house was around 400,000 and it doubled when we, I'm like, thank you. It made me a baby steps millionaire. Like this is what we want to happen. And so it's one of those things that when you're not in the housing market yet, it can feel so frustrating.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
But once you get in, you're like, yes, like I'm finally part of it and you want to see it ticking up. And so that's right. Yeah. Good things. So good. Did we tell them to go to the... Oh, no. Yeah.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And they help you do it the Ramsey way. Because when we were moving here, the way we do things the Ramsey way is not necessarily the way they do things out in the world. And so it's like, I remember making an offer on a house here. And I was like, it's got to be contingent. We've got to sell that house so that we have them. We're not going to be one of those people who takes out a bridge loan.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And it's great to work with a Ramsey trusted person because they know that. You don't have to explain all that to them. They get it. going to, you know, take the task on it. Exactly. So it's so, so important to do things the Ramsey way. Okay. Let's get to a call. Nick and Diana, they're in Chicago, Illinois. What's going on? I love a couple now.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
We all know. So many of us think you have to have a credit score to buy a house. That's the biggest thing. And it's just not true. You can still do something called manual underwriting. And in that, they look at people who do not have credit scores that have a zero credit score and they go, okay, we believe that a zero credit score is just as good as a high credit score.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And so... You could try to see what a judge would say about it. I mean, to try to force a refi, but... I don't know that they could do that. Yeah, I'm not sure. This is why we say not to do this.
The Ramsey Show
Don’t Let Toxic Money Situations Keep You Trapped
And we can look at your actual money, your actual transactions, and we can determine if you are in a good position to borrow money for a home. And so I hope you learned that, Katie, on this call that it's not something that is necessary at all.
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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
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Don’t Let Toxic Money Situations Keep You Trapped
So that survey is now live. We want to know your favorite parts of the show. We want to know what you like, what you don't like, what you want to hear more about, whatever it is we want to hear from you. I just beg of you, be kind. Like, don't comment about like my hair or... I don't know, something weird. Unless they're Ken's clothes, you can comment about Ken's.
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Don’t Let Toxic Money Situations Keep You Trapped
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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
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
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 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
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
Financial Peace Starts With Clear Boundaries
She's not going to like them much after that, though.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
I just can't understand. Even if they liked each other, what would be ever the purpose of going into something like that? It makes no sense. If she was going to move into it anyway, just buy the house for herself.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
You didn't have conversations about money is what you're saying.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
So you said you're trying to follow the baby steps, right? Yeah.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
He probably feels comfortable because it's his parents. It doesn't matter. It doesn't matter. It doesn't matter. You're feeling it and you're feeling it for good reason. For two reasons. A, it's debt and your body's going to feel debt. And then two, it's debt that you owe to in-laws. Like, let's not make this.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
That's right. Yeah. Let's not make a complex situation more complex by adding debt to it. Right. So, yeah, if you guys have agreed this is the financial plan that we're following, then I'd hold him to that. And I'd say, listen, if we say we're following in the baby steps, we need to pay off this debt and then rebuild our savings. That's what the steps say. That's what the plan is.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
We said we are following that. And I don't feel comfortable with this debt as your wife. I don't feel comfortable owing your parents. And if for no other reason, this should matter because of that.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Quote, dumb butt decision. That's what it is. I love it.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
And think about it like this. You know, your life has changed since you took that loan. Now you're staying home with a child. That's an income that's gone. You have to ask yourself, okay, if we keep this debt around, what happens if there's another major life change? What if your husband loses his job? What if he's laid off?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
So there's a lot of variables here that a lot of times we don't let our brain think about because it's not pleasant. But when you carry debt, you are holding risk. I don't care who it's to because Dave talked about Thanksgiving dinner tasting different. It would taste a lot worse. Oh.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
But Dave, there's so many people who they are sitting on savings while they've got debt sitting over there in the corner. And the thought is, I don't like the risk of not having savings, but they don't entertain the other side of the equation, which is you must not care that much about risk because you've got debt sitting over here.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
As long as it's open, it's still reporting, even if it's reporting a zero balance.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Jeannie, you said you're nervous. Are you nervous because you're unsure of your credit score dropping to zero when you cut this up? Are you nervous because now you won't have this credit card in your life? Where's your nerves coming from specifically?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
It is a battle. Look, I'm going to validate that because the credit card companies, that's what they tell us. They tell us, you can't exist without us. You need us to prop up your life. You can't spend with us. They've been telling us this for decades. Don't leave home without it.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Instead of relying on credit and credit scores, I just like give yourself credit. Give yourself credit that you can handle your own money. Give yourself credit that you can budget and you're a big girl and a big boy.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
No, I was about to say. I know Dave is not talking about it.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Yeah, you took the HELOC out for the credit cards. Tell me what you're spending this money on. Is this just putting food on the table? Is this funding your business? What's going on with these credit cards?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
I think that your mindset is there's some place in your brain where you think you can kind of windfall yourself out of this, whether it's, hey, we'll just take out the HELOC and that'll be our windfall to get out of this, even though it's not. Or, hey, we can go to these craft shows and maybe we can make enough money to get a windfall and get out of this.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
And I think what Dave is getting at is you guys haven't truly looked at your behavior together as a team. If you set... a course and say we're going to do this no one else can make you follow that course of action other than the people in the mirror and that that's what we're getting at is so jack if you wanted to like be like drum have some dramatic moves forward
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Hey, by the way, what do you guys earn? What's the income between the two of you? About $200,000.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
For the critique, I do want you to make more money. But specifically for baby step one, the thing that's going to keep life from happening to you on this, and you take one step forward, two steps back, it's speed. You've got to come in like a wrecking ball and just... Bull through this. I mean, you're selling stuff. You're going so hard in the paint. Most people save this within 30 days.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
I wanted to ask you, how long have you been on Baby Step One?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
That's what I'm saying. She's got to pick up all the work, do all the things, the babysitting, the housecleaning, all of it.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Yeah. So there's a path. You have a path in front of you to earning more, which is good. But for the here and now, we've got to find ways to earn more. And I'm not saying that I like that you're on a path to earning more, but you got to pick up more hours somehow. Maybe not. Obviously, maybe not at the bank. I'm not sure what they offer there.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Look, you're creative. You have a skill set and you have an offering that the average person can't do. There is a way that you can monetize that in some way. and make more money per hour than you're doing right now. I agree wholeheartedly.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
She's a free spirit. She needs a free spirit reflective job.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
All right, today's question comes from Paige in Delaware. My parents live in a different state than my husband and I. Everything is fine when they visit, but when they return home, they send us a bill for things that we ask them to purchase during their visit, such as food prep ingredients for meals, toiletries, etc. The items are usually incidentals, not the full cost of a meal.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Are we wrong to ask them to help with expenses while they are staying with us? Okay.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Yeah, I'm shocked. I truly am. It doesn't make sense. The only thing that I could think of where this made sense is if they came and lived with you for three years or something, but there's no indication.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Yeah. Listen, if my family comes in, I'm the type, I want to give you a little care box. I want the stuff to be in the room, and I don't want you to think of anything.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
To itemize. You ate an apple yesterday. Put that on the bill.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
I'd love to see that receipt. I'd love to see what it looks like. Half a bag of Tostitos.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
You don't need the money. Thank you. What is it?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Listen, you're at your wit's end. We can hear it in your voice. You've, you've gone around and around on this.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
No, no, no, I'm not saying that she lost her rights, but you clearly were worn slap out and were like, whatever.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
He just what? He just now told the bank that she passed away.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Is that why he's looking at it that way?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
And is the credit cards you're using to keep the business going? And what kind of business is it?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
Okay, good, good, good. I was going to ask about that. I was going to say this sounds a little bit more like a hustle until it's off the ground. Are you doing anything in the meantime? Okay, great. So what do you do?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
I mean, what if you guys just lived on $80,000 and paid it off in two years?
The Ramsey Show
Financial Peace Starts With Clear Boundaries
And that's how you are now. That's assuming you're not adding any extra income.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
And if you're not using every dollar, you need to get on every dollar because that is going to be the foundation of all of this. If you don't have that, you're not going to move at the speed you think you're going to move.
The Ramsey Show
Financial Peace Starts With Clear Boundaries
What was initially the use of the cabin? When you first bought it, did you buy it because you said, you know what, I'm going to move in here and everybody knew that? Or was the initial purpose of the cabin to rent it out to someone else?
The Ramsey Show
Your Future 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
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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.
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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.
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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?
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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?
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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
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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?
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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.
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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.
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Laurel Road is a brand of Key Bank National Association.
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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.
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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.
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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.
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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.
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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.
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Be Prepared: Math Doesn’t Care About Your Life Situations
Yes. Really got sick. Super scary, yeah.
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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.
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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.
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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.
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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.
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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.
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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.
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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?
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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?
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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.
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Be Prepared: Math Doesn’t Care About Your Life Situations
Right, right. Which we can, it's so easy for us to do. Well, it worked out. I guess everything's fine. And then you just go back about life as it was. You've got to have the, you've got to use these as the catalyst that they are to really change and dial in. That's right.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
Do you want to know what really got me? One time, this was long before I worked here. This was during 2008. So it was the Great Recession. Everybody's calling into the show, talking to Dave about, I'm losing my house. Dave... is sitting here going, well, I've purchased more real estate than I've ever purchased.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And he said, you want to get to the point that when there's a storm, you can fly above it. And I remember sitting in my car with my 400 and something thousand dollars of debt being so jealous, but also so like, yes, yes, Dave, like that. The next time it pours, the next time it rains, the next time the fire comes, my house is going to be prepared.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
And you want to know what? We were ready. The folk were prepared. And that's what I'm saying, guys. It will storm. It will rain. This is your chance. This is your call. Be prepared.
The Ramsey Show
Be Prepared: Math Doesn’t Care About Your Life Situations
You're listening to The Ramsey Show. I'm Jade Warshaw. Next to me is Dr. John Deloney. Happy to be with you guys. Thanks for hanging out with us. And if you are a listener, just, I always say this, but keep listening, keep sharing it, keep liking it, keep subscribing. That's super important for us. We're happy that you do that. Also, the Ramsey Show annual listener survey is live.
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Be Prepared: Math Doesn’t Care About Your Life Situations
What that means is you finally get to tell us all the things that have been burning inside of you about the show. We want to know your favorite parts of the show. We want to know what you like, what you don't, what you want to hear more of, but whatever it is, we just want to hear it. So let it rip. As they say, there's two ways to participate.
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Be Prepared: Math Doesn’t Care About Your Life Situations
You can text survey to the number three, three, seven, eight, nine, or you can visit Ramsey solutions.com slash survey. If you're listening on podcast or YouTube, you can click the link in the description. So yeah, let us know. I'm curious. Somebody's going to say something about,
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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.
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Be Prepared: Math Doesn’t Care About Your Life Situations
No, nobody would say that.
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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.
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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?
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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.
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Be Prepared: Math Doesn’t Care About Your Life Situations
You cashed in on an old dream.
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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?
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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.
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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?
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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.
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Be Prepared: Math Doesn’t Care About Your Life Situations
You could go further down and get the Coral Springs area. It's nice.
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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.
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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.
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Be Prepared: Math Doesn’t Care About Your Life Situations
Choose guilt over resentment.
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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.
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Be Prepared: Math Doesn’t Care About Your Life Situations
Yeah. Janie in Dallas, Texas. What's up, Janie?
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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.
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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?
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Be Prepared: Math Doesn’t Care About Your Life Situations
Per sibling? Correct. Okay. There's eight of them.
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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.
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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?
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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.
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Be Prepared: Math Doesn’t Care About Your Life Situations
Well, that, and it makes you the bad guy.
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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.
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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.
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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.
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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
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Be Prepared: Math Doesn’t Care About Your Life Situations
Well, that's what I always tell people.
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Be Prepared: Math Doesn’t Care About Your Life Situations
But not standing in the kitchen.
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Be Prepared: Math Doesn’t Care About Your Life Situations
Feel however you want to feel.
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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.
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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.
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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?
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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.
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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
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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.
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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?
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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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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.
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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?
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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?
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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.
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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?
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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.
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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?
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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?
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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.
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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.
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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.
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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.
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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.
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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?
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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.
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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
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
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
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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
Are You Ready To Go Scorched Earth on Your Debt?
Hey guys, this is Jade Warshaw. Listen, I get it. The student loan situation is bananas, but it's time to make progress, not excuses. So if your payment and interest rate have you treading water, refinancing could be the solution for you. Look, if I were in your shoes, I would contact Laurel Road today and get a free 30-minute consultation.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
You'll work with a student loan expert and you'll go over your refinancing options. Hey, for refinancing to make sense, you've got to check certain boxes like making a good income. And bottom line, Ramsey's advice is that you only refinance if you can get a lower rate or a shorter term. Remember, the point is to pay off debt faster. Maybe you just need to keep rocking the debt snowball.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
But if refinancing does make sense for you, Laurel Road offers low competitive rates and interest rate discounts are available for stuff like auto pay. Listen, you can't mess around with student loans. If you want them gone, you got to go hard. So go to laurelroad.com slash Ramsey to find out more and schedule your free 30 minute consultation. That's laurelroad.com slash Ramsey.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Laurel Road is a brand of Key Bank National Association.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Hey, what's up guys? Episode two of 90 Day Money Makeover is available right now on YouTube. This series follows real people as they take on the challenge of transforming their finances and their lives in just 90 days. In this episode, watch as they face new obstacles, celebrate wins, and push forward on their journey. And of course, I'll be walking alongside them every step of the way.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
Okay, now here's a little sneak peek of what the new episode is all about.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
When you guys called into the Ramsey show, it was like, I think that we should push them harder. Baby Jonathan being born is a wake-up call for us to finally change. I can't go on another month.
The Ramsey Show
Are You Ready To Go Scorched Earth on Your Debt?
You want to pay off your debt. You want to get your time back. You want to get your home. Nothing usurps those three.
The Ramsey Show
Your Debt Should Make You Uncomfortable
gross money on it over time if it's the three thousand that you're using for your college i just throw it in a high yield like if you get ahead like say you've paid for the upcoming semester and you've also got three thousand set aside for the coming you know the next semester even after that i just throw it in high yield i would not invest it because the horizon is so short is that what you're asking i want to make sure i understand
The Ramsey Show
Your Debt Should Make You Uncomfortable
So yeah, to Rachel's point, combine all that together. And just at this point, you have $440 in your emergency fund. And so you've got another $550 to go. And then baby step one for you is complete. And then it's moving on to baby step two.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Okay. And what's your degree in and do you have a job? Like, do you have a job lined up?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Got it. Graphic design. And do you have a job lined up for graphic design?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Interesting. Okay. What do you want to pursue?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Okay. Well, just generally speaking, just from talking to you briefly, I think you're more overwhelmed by that and not having a clear prospect to pay off the debt than probably the debt itself. Because I thought you were going to say, oh, I've got, you know, $50,000 or $60,000 of student loans. $15,000, we can make that happen. You just need a job. Any job, really.
The Ramsey Show
Your Debt Should Make You Uncomfortable
So are you working at all right now? And if so, what are you doing and what are you earning?
The Ramsey Show
Your Debt Should Make You Uncomfortable
That's great. You said $35,000? Yes, ma'am. Okay, cool. And then what's your living situation like?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Okay, so there's no money. Are you paying them rent or anything, or are you pretty much kind of square there?
The Ramsey Show
Your Debt Should Make You Uncomfortable
So I think for you, the biggest thing is, once you graduate next week, let's move from part-time to full-time so you can get that full paycheck. And in this phase, it's good that you're not really paying rent because you can put the full force of your income on this debt. How much of it, of the $15,000, how much of it is the car versus the credit card?
The Ramsey Show
Your Debt Should Make You Uncomfortable
credit card it's very minor it's just 500 i'm mainly worried about the car okay so okay so we're 14 000 what's the car worth um about nine right now okay uh yeah i think with this i think you can buckle down and pay this off but you're going to be working like a madman yeah are you able to pick up shifts coming up here i mean we're two weeks from christmas and you're working at fedex are you able to do you know overtime
The Ramsey Show
Your Debt Should Make You Uncomfortable
step into the job market is not going to be the perfect job it's not going to be the thing that like you know you've always wished for in the dream job you're right out of college so remember kind of just like take what you're going to get yeah that's right as well and i think for you uh i love what rachel said and i want to take it even a step further with your car you decide you say you know what i'm tired of being in debt i want this thing paid off in six months
The Ramsey Show
Your Debt Should Make You Uncomfortable
And when you say that, then reverse engineer it and say, okay, what does that mean for me job-wise? How much do I have to work to make that happen, right? And that way you're the one in the driver's seat and you're the one that's in control of this as opposed to I make this and it's going to take me X amount of months making this money. Does that make sense?
The Ramsey Show
Your Debt Should Make You Uncomfortable
So kind of run it back and that's gonna force you to work probably harder than you've ever worked before. And as far as the graphic design to mechanic thing, I think that you, I don't know what your plans are, but I feel like you kind of put that on hold for a second because you've just spent money on an education. You've just spent time on an education. Work for a while, get this mess cleaned up.
The Ramsey Show
Your Debt Should Make You Uncomfortable
And then during that time, research what it looks like to become a mechanic, as Ken Coleman would say, like get in that proximity, follow some people around, but don't just jump and make that choice before you've done detailed research.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Yeah. The moral of the story for me is of all the types of callers that call in that have debt to pay off. If you are single, if you do not have children, and if you are still living at home, you are in the best. Because you've got time. Like, time is at your disposal. You know, you don't know true tiredness yet. So, like, you can really get in there and get tired working. Yes.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Listen, for me, like me myself, because I'm not in debt, I have purchased gifts for the kids and my husband and I have done that. I've not fully finished with my husband, but this time of year, you know, This is the time of year where it really becomes a hot button topic because obviously we're a financial show. We want people to make their way to peace.
The Ramsey Show
Your Debt Should Make You Uncomfortable
And I said it last year, but posted it this year. A very controversial statement. Controversious, I like to say. And I think I was on with you. You were. Right? So before we talk about it, let's show you the clip so you see where we're coming from. Roll tape. You don't have to buy gifts for adults. They're grown. They have their own money, their own job.
The Ramsey Show
Your Debt Should Make You Uncomfortable
If they want a new blender, they can go buy it. They do not need you to go buy them slippers. Like they can buy their own slippers. I said what I said. Rachel, I said what I said.
The Ramsey Show
Your Debt Should Make You Uncomfortable
That's right. Did you get hate from it? I got so much hate. And here's the thing. Don't don't don't misunderstand. Like the reason we're talking about it is not like to try to qualify it because like I'm drinking water. I'm fine. It's for you guys because there are so many people. Rachel, I always read the caption because you need to see more. And I did explain.
The Ramsey Show
Your Debt Should Make You Uncomfortable
I was like, here's what I'm trying to say to you. Yes, I'm not saying adults can't have gifts. I'm not saying it's not nice to receive a gift. I'm just saying that if you're in this situation, I'm giving you permission to back away from the spending because we don't need them. You know what I'm saying? Like I will get by if you don't buy me a precious moments figurine. You know what I'm saying?
The Ramsey Show
Your Debt Should Make You Uncomfortable
I will get by if you don't buy me lotion from Bath and Body Works. I don't need your $15 gift. Thank you. It got 10.8 million. Yes, 10.8 million of you. Not all of you, but a lot of you were concerned with Jade. This sounds a little like Grinchy. This sounds like a little Scrooge. It's not that. It's for people who are struggling with debt. I used to be one of those people.
The Ramsey Show
Your Debt Should Make You Uncomfortable
And I was the person who continued to buy gifts on credit cards. And when you're broke... And I'm going to say this lightly because I think people will know what I mean. When you're broke, you buy broke people gifts. You know what I'm saying? Like you go to the dollar store and you rack up and you buy like 10 and $20 gifts, but I'm like, you can't afford it.
The Ramsey Show
Your Debt Should Make You Uncomfortable
And that $10 gift is not breaking them free. They're okay without it. But it is causing stress for you because now before you know it, you spent two or $300 that probably you should have put towards a collections bill or probably that you should have put towards paying off your car. And that's what this whole thing is about.
The Ramsey Show
Your Debt Should Make You Uncomfortable
It's about changing our behavior and not feeling pressured to spend our money. That's right. And some of you are like, well, Jade, I don't feel pressure to spend. It's my love language. I love giving gifts. And if that's you, fine. You don't feel the pressure. But now let's just look at what is it wise for us to do? Is it wise for me to spend in this type of way?
The Ramsey Show
Your Debt Should Make You Uncomfortable
And I'm not saying don't participate. I think Christmas is great. It's the most wonderful time of year. I think there's a way that you can participate. And here's what I would say, Rachel. And this was in the caption, if you had read it, okay? In the caption, I was like, make a very short, very prioritized list. I would start with kids, like nieces, nephews, your own children, right?
The Ramsey Show
Your Debt Should Make You Uncomfortable
And buy for them first and use cash. No problem. I'm not mad at that. And then if you have some adults like VIP only, I would say they're next. For most of us, it's our mom and dad, or maybe it's like our sister and brother. But I would not get too crazy with this. If you're shipping packages across the US, it's expensive. Totally. You can't afford that. Yes.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Somebody needed to tell you that you couldn't afford it. And it's not out of shade. It's really out of love because I don't want you to be further in debt. And I think that most of us don't do this, but we probably should, Rachel. When the holidays start, like when... Halloween ends. Right.
The Ramsey Show
Your Debt Should Make You Uncomfortable
We need to stop and go, OK, what was it about last year's holiday season that went well and what was it that didn't go well?
The Ramsey Show
Your Debt Should Make You Uncomfortable
And kind of set that intention ahead of time. And most of us will go, man, I was so like overextended or man, I overspent and it really didn't have the effect I thought it was going to have. Right. Right.
The Ramsey Show
Your Debt Should Make You Uncomfortable
yes and we can go back and say you know what i made all those freaking side dishes and spent all that money and we would have probably like half of it didn't even get eaten right and you can see the ways that you spent your money that didn't make a huge impact and i think it's the same way with christmas
The Ramsey Show
Your Debt Should Make You Uncomfortable
There's so many gifts and it's like, you know, the kids probably would have been just as happy. Like I could have cut back a little bit and they would have still been happy. Absolutely. For sure. For sure. So there's some moderation that has to be going on here, Rachel.
The Ramsey Show
Your Debt Should Make You Uncomfortable
I think you're right. At the end of the day, everybody's grown. You can spend your money on what you want to spend your money on. I mean, that's the that's the cold, hard fact. But if you want our advice and if you're a person who's trying to get out of the debt, the point is you have permission to back away. Like you don't have to opt in to all of the things that the holidays want you to opt in.
The Ramsey Show
Your Debt Should Make You Uncomfortable
And we're just trying to give you that out. That's really what it amounts to.
The Ramsey Show
Your Debt Should Make You Uncomfortable
So what does that leave you? What are you after everything's kind of come out in the wash? What does that leave you with? And what are you still trying to sort out?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Oh, okay, so it's about to be 12 months of no payments. Right. And have you had contact with anybody about this, or is this you just looking at, you know, the statements that come in the mail or whatever?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Okay, so you're going to have to call them up, and you're going to have to find out what's going on with this, and it's not going to be fun, and I know that you're dreading it. You probably have a pit in your stomach now, but you're going to have to go, okay. Where are we in this process? Is there anything that I can do to pull it back from foreclosure? What would I have to pay?
The Ramsey Show
Your Debt Should Make You Uncomfortable
And then once you find that out, you have to look at your own finances and go, can I even pay this? And then there's part of this. I don't know if you want to hear this, but what you're describing sounds like absolute like H-E double hockey sticks. Do you want the house or do you want to find a way to sell it, let the bank sell it and move on with your life?
The Ramsey Show
Your Debt Should Make You Uncomfortable
So you owe 320, it's worth 620. For, usually it would be like, okay, can I, once I can get back on track with the payments, let's come up with a payment plan so we're back on track. And then... At that point, you're paying the mortgage and then you can decide if you want to sell it or not.
The Ramsey Show
Your Debt Should Make You Uncomfortable
The question is, let's pretend I mean, let's pretend like I'm the servicer and I say, all right, Allison, you're going to have to pay a payment and a half for the next two years. Let's just I don't know what they'll tell you. Could you even do that?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Oh, gotcha. Okay. So are you a very high earner?
The Ramsey Show
Your Debt Should Make You Uncomfortable
I am 58. Before we get off, I want to set you up with a coach to help you go through all of this because I think that there's a lot to go through. You probably, with this all said and done, you probably have the money possibly to keep this house, but I don't know. It's hard to know because it sounds like there's a lot of secrets and a lot of skeletons and a lot of closets.
The Ramsey Show
Your Debt Should Make You Uncomfortable
And that's just sitting in savings. And then how much debt do you have?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Well, the good news is we'll give you a plan so that you feel like you're going in a direction and you feel confident about what that direction is. Also, the good news is you're going to be out of debt basically today if you follow our plans by tonight.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Listen, you've done a wonderful job saving and it sounds like you weren't really sure what direction to go. So you kind of just try to do everything. And the way we teach kind of narrows it down and you do one thing at a time for a period of time and then you kind of are freed up to do more.
The Ramsey Show
Your Debt Should Make You Uncomfortable
But for you, the first step, and you've already covered it, we always say the first baby step is you just need $1,000 saved. You got that. So check that one off the list. The next step is we take... any additional savings that we have, or we work really hard to pay off our consumer debt. And for you, you have the money to do that. So that would be baby step two, pay off consumer debt.
The Ramsey Show
Your Debt Should Make You Uncomfortable
That would get the green check. That's right. And Katie, what is the 24,000? What kind of debt is it?
The Ramsey Show
Your Debt Should Make You Uncomfortable
That's not very good. That's what I thought. I mean, if I were you, my guess is you're not able to just do a traditional Roth IRA, but I might start with backdoor Roth IRA and I might ask a smart investor pro what my what other better options there are, because I wouldn't want to be investing primarily in bond funds.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Listen, I think for personalities like you, when we reframe what security and safe is, I think they thrive even more because So if you're a person who loves being secure, being safe, you're going to love a debt free life because debt really does equal risk because using credit cards, that's a form of debt. It equals risk because for most of us, we go about our life, right?
The Ramsey Show
Your Debt Should Make You Uncomfortable
You put, maybe you put shopping on the credit card, maybe you take out a car loan, But if you were to lose your job, suddenly you feel the risk of that because you go, oh my gosh, I don't have the income I used to have coming in and I have this car payment due. I have to pay the credit card off. And suddenly we feel the risk of that weight that we've been carrying in debt, right?
The Ramsey Show
Your Debt Should Make You Uncomfortable
So if you're a person who says, no, I love security, then paying off your debt truly is ultimate security. And then turning around and saving up three to six months, which is the next step, baby step three, having that three to six months of cash sitting there that's actually your money and It's not money that you owe to credit cards or car notes.
The Ramsey Show
Your Debt Should Make You Uncomfortable
That is the ultimate form of security because then you can say, no matter what happens, I'm prepared for a storm. If I lose my job, I know I have the money to keep everything going for the next six months. If an emergency comes up, you know, the water heater goes out or something happens with HVAC, I have the money that I can cover it.
The Ramsey Show
Your Debt Should Make You Uncomfortable
So the good news is you have that. Even after you pay off the debt, I mean, that still leaves you with a little over $20,000. So you could effectively say, okay, now I've got my three to six months. And then to answer your further question about like, do I invest this? What do I do? That three to six months, you just keep it in a high yield savings account. It's there.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Like we said, it's just that fully funded emergency fund for when you need it. And then above that, technically, and I know I'm not going to dig into this too much right now, but it sounds like after that, your household is debt free. Your household has three to six months of expenses.
The Ramsey Show
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.
The Ramsey Show
Your Debt Should Make You Uncomfortable
I think that's something you need to work towards.
The Ramsey Show
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.
The Ramsey Show
Your Debt Should Make You Uncomfortable
And so you're one in all of these other areas.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Interesting. So is that why you like it separate because his feels overwhelming to you?
The Ramsey Show
Your Debt Should Make You Uncomfortable
I think so, because don't get me wrong. I hate debt and I don't like any amount or form of debt. But I was, again, expecting for you to say, like, he's got $200,000. I was expecting something way more astronomical. And when you told us, hey, yeah, he's got $18,000 of debt. I kind of just was like, oh, OK, cool. Like, we can pay that off. And he's working, right?
The Ramsey Show
Your Debt Should Make You Uncomfortable
So a truck and a car? Sorry, the truck and the boat. Okay, truck and the boat. So we're $28,000.
The Ramsey Show
Your Debt Should Make You Uncomfortable
You know what might make it less scary if I were you? I'd calculate up all the monthly payments. I'd calculate what you're paying. in car payments, what you're paying in credit card payments, what he's paying in credit card payments, what he's paying in boat payments, and what you're paying in truck payments.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Add up all that money, and when you see that, that you're gonna have that back every single month, I think that's gonna make you feel less scared. Because that's a hefty chunk.
The Ramsey Show
Your Debt Should Make You Uncomfortable
So in essence, you're saying you don't need all of the money that you're being paid. And so you want to throw it towards another goal. That's really the question. It's not really the difficulty of budgeting it, right?
The Ramsey Show
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?
The Ramsey Show
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.
The Ramsey Show
Your Debt Should Make You Uncomfortable
So our first questions would be, do you have any debt?
The Ramsey Show
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?
The Ramsey Show
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
The Ramsey Show
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?
The Ramsey Show
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?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Okay. So calculate, okay, is my payment going to go up or down? Does that affect my emergency fund? Does that affect what I would need to make things sustainable over three to six months? Do you see what I'm saying?
The Ramsey Show
Your Debt Should Make You Uncomfortable
Way to go. Uh, I liked what you said about the automating. Cause I think that's very, very important.
The Ramsey Show
Your Debt Should Make You Uncomfortable
So probably now, since they're adult children. Yeah. I mean, let's think about this. If they're in your home, like if you have adult children that live in your home, I would say that it's some of your business because they're still in your living space, right?
The Ramsey Show
Your Debt Should Make You Uncomfortable
But if they don't live with you, if they are out on their own and in their life or in their marriage, I'd say that it's none of your business unless they ask for your help. That's right.
The Ramsey Show
Your Debt Should Make You Uncomfortable
But it goes both ways because a lot of times kids try to get into the parents' business too. That's so true. Yes, that's so true. I don't like the way my mom and dad handle their money. You know what I mean? People call in with that all the time.
The Ramsey Show
Your Debt Should Make You Uncomfortable
All right. Today's question comes from Carissa in North Dakota. She says, should a couple getting married have guests pay for their plate at the wedding to help with costs? I'm afraid we won't get enough money in wedding gifts to pay for the reception. Oh, so it's you. You're the one that wants to charge. She was asking for a friend at first. I know, right, right.
The Ramsey Show
Your Debt Should Make You Uncomfortable
So I think that's like, there's a difference between tacky and hacky. This is tacky.
The Ramsey Show
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.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Well, that means you're basing it off of future money that you don't have now. That's right. So you've got to set the budget of what you can afford based on what you can afford today and let the gifts be the gifts like you can't.
The Ramsey Show
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.
The Ramsey Show
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.
The Ramsey Show
Your Debt Should Make You Uncomfortable
That I'm with. But when people just want money and they're telling you don't get me anything, just give me money. I'm kind of like...
The Ramsey Show
Your Debt Should Make You Uncomfortable
I think the digital quality of it, and I might feel old-fashioned, I also think the digital quality of it, like Venmo me. I'm like, can I give you a nice, crisp...
The Ramsey Show
Your Debt Should Make You Uncomfortable
What does the audience say? Venmo or let them get you a gift? Oh, good. Okay. Everyone say no. No to Venmo. Okay. Okay. Okay. Good. Good. I'm glad we're all on the same page. We're all old together.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Okay, so in your mind, what's the difference between savings and emergency fund?
The Ramsey Show
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.
The Ramsey Show
Your Debt Should Make You Uncomfortable
Okay. So the way we would teach is if you're in baby step one,
The Ramsey Show
Your Debt Should Make You Uncomfortable
thousand dollars saved and then everything else that you have money saved would go towards baby step two which is paying off your debt and to answer your question that thousand dollars i would not keep it in my normal checking account because you might accidentally spend it i would put it in a separate savings account um still keep it very liquid right it should be something that you can get to if there's an emergency don't put it in a cd or don't put it in something that you can't get to but i do think that there's value in getting it out of your normal checking account um
The Ramsey Show
Your Debt Should Make You Uncomfortable
into a savings account, not maybe, I don't like when there's a debit card attached to it. I like when it's just there. And if you need to e-transfer over, whatever.