📈 Are you on track with the Baby Steps? Get a Free Personalized Plan 📱 Watch the full episode for free in the Ramsey Network app. Rachel Cruze & Jade Warshaw answer your questions and discuss: "Am I being too harsh on my 18 year old?" "Can we get a mortgage that will be 50% of my income?" "Can you successfully build wealth without attending college?" "Should I pause my debt snowball to buy an engagement ring?" "I'm divorcing my husband at 19, how do I take care of my child going forward?" "I'm going to owe $140,000 to the IRS, what's the best way to pay this off?" Next Steps: ✅ Help us make the show better by taking this short survey! 📞 Have a question for the show? Call 888-825-5225 weekdays from 2–5 p.m. ET or send us an email. 🛒 Get your copy of Build a Business You Love today 🏘️ Find a Ramsey Trusted Real Estate Agent 💵 Start your free budget today. Download the EveryDollar app! 🎟️ Dave Ramsey and John Delony are going on tour this month! Get tickets today Connect with our Sponsors: 🛒 Stop paying more and start shopping smarter at Aldi 🌱 Get 10% off your first month of BetterHelp 📱Go to Boost Mobile to switch today! 🏥 Learn more about Christian Healthcare Ministries 🏡 Get started today with Churchill Mortgage 🔒 Get 20% off when you join DeleteMe 🏦 Go to FAIRWINDS Credit Union for an exclusive account bundle! 🥗 Save 15% on your first Field of Greens order with code RAMSEY ⛨ Find top Health Insurance Plans at Health Trust Financial 💸 To find out more about student loan refinancing, check out Laurel Road 💻 Visit NetSuite today to learn more 🗂️ Use promo code RAMSEY for 18% off at The Nokbox 💵 Learn more about Timothy Plan 🏛 Get started with YRefy or call 844-2-RAMSEY 🔐 Visit Zander Insurance for your free instant quote today! Explore more from Ramsey Network: 💸 The Ramsey Show Highlights 🧠 The Dr. John Delony Show 🍸 Smart Money Happy Hour 💡 The Rachel Cruze Show 💰 George Kamel 🪑 Front Row Seat with Ken Coleman 📈 EntreLeadership Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices
Chapter 1: Am I being too harsh on my 18 year old regarding money management?
Well, I have four kids. My oldest is 18. And looking at college this fall, I am trying to, I'm wrestling, me and my husband are wrestling with how to instill the wisdom that we want him to have. He's had a job since he was 16, on and off.
around school and things like that but we've recently told him he's got to start paying for his own gas in his old truck that we we helped him pay for halfway like dave teaches and it just feels like it's a big burden on him um we're going to pay for his schooling but he's got to pay for all extras and after two years he has to pay for even his schooling so we're really trying to teach him we want you to start learning really how to save and manage your money
And I just, I don't know. Am I being too harsh? Is it too much? He's just got a door knocking job right now. He has a full time job lined up, but it's not started yet for this summer. I just, I'm trying to strike that balance between being too harsh and helping him. I just don't know. So I wanted your advice.
I mean, I'm listening to what you said, and I feel like a lot of it's on the right track. He's had a job since he's 16. You've been forward with him with, hey, we're going to help you with education up until this point. Here's what we expect. I think setting expectations is such a big part of this and a huge part of college, making sure we know, hey, this is the college you can afford.
Here's the percentage we're going to pay. Here's what we expect from you. And it sounds like you're doing all that. My question for you would be, What have you seen that's giving you pause? What have you seen that's making you feel uncertain about whether he's going to be able to carry this out going forward?
Well, I guess what we've seen is from the beginning, we've always said we want you saving. 75% has always been our rule. Wow. But just because that we just set up to be able to pay for cars and things like that. So he did real good. He bought his old truck. We met him halfway there. But really, since then, it's been hard for him to meet that.
Something comes up, things like that, which is understandable. I know he's a teenager.
75% is a high percentage of saving.
I'm just letting you know. I know, but they're full. When they have to pay for everything... I just, I want them to get there and, you know, have some spending money and maybe not have to work when they're in college. But right now he doesn't have anything really. And so we've recently even said, if you can't figure it out with paying for gas,
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Chapter 2: Can I afford a mortgage that's 50% of my income?
And then once we do buy a second home, we would be dumping any money I get into that towards the principal.
What's the split on your income? Who makes what? I make...
probably about $250, and then my wife makes somewhere around $125.
Okay, so here's where my mind goes. I can understand what you're thinking, which is as your income goes up, the percentage feels like it goes further, right? That 50% that you have left over feels like it goes further than if somebody were making $60,000 a year and said, hey, I want this to be 50%. Do you see what I'm saying? So I understand where you're going there. Where my mind goes is...
I am of the mind where there's certain ratios that they're just locked in because if life changes, you're still protected. So if something happens and your wife is like, Hey, now I'm going to stay home. And, or if, if, do you see what I'm saying? Like if something changes, y'all have kids, Tony.
We have two already. So both, you know, they're both actually entering school. So my wife's thinking about, you know, being more aggressive towards her career now. Yeah, which I hope she should.
I just go towards if something changes, where does this put me? And these are just things to play out with your wife. Where does that put me? The other thing I think about is just in general, percentage wise. OK, if I'm putting 50 percent towards my mortgage and then if I'm giving 15 percent, and my IRA contributions, Roth IRA 401k retirement. And then let's say I'm a generous person.
So I'm giving at least 10%. Now I'm at 75% and I haven't saved for kids college. I haven't put extra on my mortgage. I haven't done any of those other things. And so suddenly, no matter what, that pool does start to shrink a lot. And that's kind of where the methodology of that comes from. And I don't think that you have out-earned that feeling, if that makes sense.
Okay. All right. I mean, we did already take care of the kids' college, if that helps. So when they were both born, I put $70,000 into a 529, maxed it out, basically just to take that huge tax deduction.
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Chapter 3: Is it possible to build wealth successfully without attending college?
Yeah, I think, well, A, there's still a big unknown, right? You need to find out how much it's going to cost to do the things that you want to do. And then that'll give you kind of a starting place. But yeah, the average person spends about $5,500 on an engagement ring.
That's kind of a national average, which really is keeping in line with what we would say here, which is to spend about a month's salary on it, no more than two months, which is about what you make. So you're kind of right in that,
normal threshold there so the next step is yeah go to the jeweler and find out what it would take to do the new band and everything like that and my guess is you're probably going to be right there or maybe under since you've already got the stone Yeah. Unless you wanted to add a little something to it.
Yeah, so I would be okay with you. I don't want it paused for too long of a period of time. So if there's like a side hustle, you can pick up or something. Yeah. But you could be saving for that on the side while I would say simultaneously throwing something at the debt just to keep the momentum going. Mm-hmm. But yeah, but that's probably what I would do. Just split it in half.
Let half your margin go to debt, half go to saving. And if you feel like, golly, I need to speed this up. Mm-hmm. see if there's extra income you can make to do that.
And don't feel guilty at the end of this. If you still have a little bit of debt, that's going to come into, listen, it's not going to be 10,000 and that's pretty, pretty good based on the things I hear around here. So I wouldn't beat yourself too much.
Yeah, definitely. I mean, this is, um, it is so, it is so normal. It is your fiance. Uh, will she have any debt going into the, to the marriage?
No, she actually paid off all her student loans. Well, I shouldn't say no. She does have two credit cards, which usually she has around $1,000 altogether on those. I mean, we've talked about our finances a little bit, and she's really interested in trying to combine our finances and work towards being debt-free. But we're trying not to...
We're not combining finances before we're married because we have had family members who, who unfortunately have been divorced and we just want to make sure we do it correctly.
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Chapter 4: Should I pause my debt snowball to buy an engagement ring?
So I answered it and talked to someone there and they said, yeah, they give calls to every new customer. And so again, they just really care about your experience. And I so, so appreciate that. Plus anything that you can do at a traditional branch, you can do with them at fairwinds.org or on their app. And you'll have free access to over 33,000 ATMs.
Hey, you guys know how much I hate banks in general. And so for me to do this is a big deal. Talk to our friends at Fairwinds and check out the combined checking and savings bundle that they created just for the Ramsey tribe. You guys, it's incredible.
Yeah, you guys, it's so easy to join Fairwinds no matter where you live. So go to fairwinds.org slash Ramsey.
Fairwinds is federally insured by NCUA.
Buying or selling your home, it's a really big deal. And you want an expert in your quarter fighting for you to get the best deal and the best price, honestly. It's probably your largest asset that you're ever going to buy or sell. So you want this to be a really smooth process.
And the Ramsey Trusted Program is the only way to find a top agent that you can trust who will make sure that your home is a blessing and not a burden. And it's easy because you can compare agent profiles, interview them, and choose the right one that you want to work for you.
So find a local trusted real estate pro for free at RamseySolutions.com slash agent or click the link in the description if you are listening to this on podcast or watching on YouTube. We mentioned in an earlier segment, Jade, that, you know, about college and school and all of it. And it is Teacher Financial Literacy Month or Teacher Appreciation Month and Financial Literacy Month.
And we just appreciate teachers around here. I know Jade and I, we both have kids in school. And when you have... Teachers who are part of your own story from being in school. And now if you have kids that are in school, they're just such a gift. Like these teachers are just absolutely incredible. We love them. So we do want to honor them.
So make sure to enter our teacher appreciation giveaway at rs.com slash teacher. Yes. And we want to celebrate you. So make sure to check that out, teachers. All right, let's go to Sarah in Philadelphia. Hi, Sarah. Welcome to the show. Hi, thanks for having me. Absolutely. How can we help?
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Chapter 5: How do I handle divorce and take care of my child at 19?
I actually worked as like a secretary for several construction businesses. I like doing that.
OK, so admin. Yeah. Administration is probably really high up in your skill set. Yeah. So finding those kind of things and then backing out from there and say, OK, you know, would I be able just to plug in with one or two businesses around to be able just to start working, you know, maybe in the next six months?
and that's great or do I need to go back to school right and then with your parents being that safety net for you right now how much are they willing to be a safety net financially for you right now and from a time housing perspective like what Jada said but Sarah stay on the line I'm going to get you Ken Coleman's book find the work you're wired to do because that'll help in that in that mindset and I think it could just be refreshing to you to have a level of grasp and control over your future but I'm so sorry about all of this and we just pray that it's a smooth process for you from here on out thanks for the call
Rachel, do you ever get these sketchy text messages that are like, hey, you need to update your address and verify so we can get you the package you didn't order?
Yes, I have, George. Sketchy and never trust them.
And that's why we recommend Delete.me. They help with that.
Yeah, they do. Delete.me actually goes in and removes your information from data broker websites, and it is an incredible service that everyone needs.
And there's a lot of shady companies out there that solely exist to sell your personal data to bad guys. And that means your info, like your email address, your home address, your kids' names, your name, everything is just out there for scammers and spammers to find.
So much.
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