[Music] welcome to the Dave Ramsey show you could be intentional about your character you can have money and a career you are the hero in your story live from the headquarters of Ramsey solutions broadcasting from the dollar car rental studios it's the Dave Ramsey show what that is dumb cash is king in the paid off home mortgage has taken the place of the BMW as the status symbol of choice I am Dave Ramsey your host thank you for joining us open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five you jump in we'll talk about your life and your money Renee is with us in Maryland hi Renee welcome to the Dave Ramsey show hi Jerry thanks for taking my call sure what's up so my husband and I are on baby step number two and he's decided that he wants to open up his own dumptruck business and while I'm excited about that I am also nervous because the dump truck itself is about 90 K and he's pulled funds from our 401k to cover the down payment so I'm a little nervous about one are we going to be able to meet our goal of being debt-free by next year and are you even gonna be wanting to be successful with the business as well and one of them is buys from you and encouragement I'm confused your husband is on baby step two trying to get out of debt and he went and bought a $90,000 dump truck on payments these things don't seem to go together yes sir is he already done this deal yes he has so I work and he works so he was previously working for a company and he's going to be putting in his table or two quick in two weeks so yes he has already done the paperwork the bank has already approved the loan he's planning it he'll pick up the truck as of next week and I'm sure I probably can't convince him not to do it I tried to convince him in the beginning to get a cheaper truck he went down there looking at vehicles came back with some things to be a certainly higher and it's been rolling since then um if someone's doing to something destructive to themselves in his way in the middle of it I don't know how to encourage them so I don't know how to encourage Johnny this is a nightmare oh this is an absolute stupid but decision it's a horrible decision it should not happen it should stop immediately there's so many things wrong with it I can't count them all and but there's no stopping people that are you know bound to determine to run their car into a wall no pun intended but uh you know to start with buying a $90,000 Dunc truck the break-even on that if he were to pay cash for it doing hauls is astronomically long it's a dumb business decision add to that the fact that he's financing it add to that that he took the down payment out of the 401 K add to that he has no business sense at all because he quit his job and he has absolutely no customers lined up and he's going to go broke so now I can't really encourage him not me I know but darling I mean unless you can put duct tape around this man and keep him out of that truck dealership I'm gonna have trouble encouraging you you duct tape him to a chair maybe I don't know I think that's kidnapping though maybe you don't wanna do that this has to stop it's a bad idea for about seven reasons it really does not need to go through okay if he if he wants to go in the dump truck business he needs to get out of that save some money buy a 15 or a $20,000 truck make that truck make money that he paid cash for and then use the cash to make another truck make money and then grow a fleet of trucks but you don't go ninety thousand dollars in debt to haul rock and dirt well this is just a bad business move it's a bad idea so I'm not yelling at you I'm just scared for you I'm scared I don't know what and I don't you know and you're you know he's already the you know the cows are already out of the barn I don't know how to get him back in he's already way down the road on this there's no putting the brakes on this Bubba so I don't know if there's any way you guys can stop this even if you lose some money and delay this I want him to be in business i if he wants to be in the trucking business I wanted to be in the trucking business I want him to live his dream but when people live their dreams and violate seven principles in the process that dreams become nightmares yeah and that's where you're headed this is not going to end well so please play this back for him tonight I want him to live his dream but this is not gonna work when there's nothing in the mathematics here that works so here's the deal here's what's going through my hand okay and and I'm the problem is I do math so here's the if you take what he gets paid per load and how many loads he can do in a day he can't even pay his payments in the DC metro area he seems to think he can I know he seems to think he can but he's the same guy made all these other decisions so I don't really care about his math skills I'm telling you the DC metro area is not that better you're not hauling gold over there there's you know they're not paying you in gold bars to haul this stuff around this is it's he's gonna gets laid oh I don't know what I don't know what tell you you got to stop him that's what I'm gonna tell you that's what I would tell you and then you call me so I'm I can't just sit here and go along with insanity and go oh well it'll work this time because it's not going to it's a the whole plan is a bad plan every aspect of it please stop it and you're attached to this guy at the hip well there you go Dave encouraging day will just start this hour off with encouraging Dave oh my gosh all right Peter's with us in California hi Peter how are you I'm doing are you better than I deserve what's up um so I had a question my company's benefits package it's just opened and we currently have an EPO but I know you suggested in the past an HSA is a better route to go the difference being is that my wife is pregnant right now and she's expecting in August you do the EPO do the EPO yeah because it's gonna have a very low deductible and probably a hundred percent coverage on the delivery inert so even if the premium on the HSA is $475 the last monthly Wow well what is the HSA coverage for the labor and delivery it's fifteen percent coinsurance and then the max out-of-pocket for an individual is labor and delivery usually falls in a different category are you sure it's that's true for the labor and delivery yeah unfortunately before we have an EPO were covered labor and delivery what does the HSA cover for labor and delivery it's the same deal well why wouldn't okay then I'm wrong then I'm wrong you need to do the HSA especially for $475 but most EPO is covered labor and delivery hundred-percent that's why I jumped on that but no I think you're probably you were probably on to it I have ahead of me I think you I think you had the answer before I got to you it sounds like the HSA usually is gonna be the route to go unless you've got a pending events of some kind right in front of you like a labor and delivery that the calculation on that and then you may want to do the EPO for one year [Music] going from that steady paycheck to having to create the revenue myself I was very fearful about actually making the jump I have a full-time job trying to build my business on the side balancing all of those things it's a lot to juggle I'm trying to figure out how to run my business effectively from a customer service standpoint but also from a financial standpoint I wasn't sure if I would be confident enough to pull this off there's so many different moving parts I feel like I have to do everything how do I grow this business there is a movement happening right now of women starting businesses and here's the best part you can - hi I'm Christy Wright and I know firsthand what it takes to start and build a business now maybe you're already running a business full time or maybe you just have an idea in your head that keeps you up at night 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risk-free today at pure talk us a.com and enter the promo code Dave to receive 50% off your first month hey everyone welcome to the Dave Ramsey show I'm George camel thanks for hanging out with us here on our video channel on this Friday you made it you made it through the week we're here to pull you through the rest of the day to motivate you inspire you along your financial journey we've got people from all over the country who are really excited to be here today aren't you guys that was good we didn't plan that at all they just nailed it first try no warmups no practicing it's gonna be a blast we've got a debt free scream coming up this entire row behind me they're all the cheer squad the debt-free screamers all the way here from Indiana so sit back relax hit the like button share it with a friend call your mom we've got more of the Dave Ramsey show coming up enjoy [Music] here's a tip on saving money that I get people that I absolutely love because it saves hundreds and even sometimes thousands of dollars when they do it here it is shop your insurance shop your car and your homeowners insurance with an independent agent who will shop among many different companies representing you and get you the best possible deal that will almost always beat a captive agent that works for one company like a State Farm or somebody like that right so go to Dave Ramsey comm click on e LP endorse local provider for insurance it's free to check with one of the brokers that we endorse in your area got an entire network of these and they can work with their entire network of insurance companies and most people save on average around $700 when they work with an ELP over what they were paying that's a lot click on insurance on ELP Kris is with us Chris is in New York hi Chris how are you Dave I'm doing pretty good how are you doing that better than I deserve what's up awesome so first up really a priest here who helped me get out of that huge fan of yours so thank you for had actually a quick question that a friend had asked me his real estate guy called him and was looking to bring his interest rate down and I said you know what's called favor ante and see what he has to say about this so my friend is a 30-year mortgage and his interest rate was 3.25% his real estate guy said he's going to be able to bring it down to 2.75 with no closing costs it kind of sounds like too good to be true so I was just wondering and he was wondering what kind of question should be asked before moving forward with this his mortgage guy you mean not as real as working yeah I don't really know the term it's okay I'm just making sure because typically a real estate agent would not call you with a refinance deal okay so um well you know I think it just needs to get into it because what he's being presented is below market the rates are down again but I don't think they're that far down I get a quote every day and I didn't see it I didn't see anything this morning that shook me up and made me think of there was of that low right now so okay that's below market I mean three to five is a pre sweet deal right that's what you said he's got yeah and they're offering and they're offering them a 275 thirty-year okay well a fifteen is usually cheaper than a thirty and so if they got a 275 on a thirty he might get a two 5o on a 15 and and if he truly is doing that with no closing costs it's very weird it just sounds too it sounds too good to be true but it's possible I mean I hey you know I would want to ask more questions and learn more and be sure what he's exactly what he's getting into that they're not putting maybe maybe they meant out of pocket closing calls so maybe they put the closing costs into the deal you know and if they're doing that then that doesn't make sense so but the way let's say there are closing costs okay the way you analyze this is you say a half a percent savings on his loan balance which is five hundred dollars on a hundred thousand okay fifteen hundred dollars on three hundred thousand that's what he would be saving and if his closing costs are 4,500 and he saves fifteen hundred dollars a month a year that takes him three years to get his money back now that would be more of a normal analysis that you would do but but that's where there's closing costs involved so you know I I just want to know more because this is this is very inexpensive interest rate and zero closing costs both are a little bit making me wonder how the deals happening right sounds too good to be true usually is look at it I mean you don't hurt anything to ask more questions and look at it if it's completely true ask them for it the rate is on a 15 and do it you know while you're at it good question Michael is with us Michael is in Canada hi Michael how are you I am good thank you very much how are you better than I deserve what's up okay so pretty much me and my wife have been married for 13 years we've been in debt pretty much that whole time we finally are out of debt got three or five kids thank you we have five children 12 to 2 we now have a stable work where we're bringing in a solid income we have a surplus every month but we don't have a zero budget which we do have a budget we budget every month we keep track of all our dollars but we would really like to have the zero butter we took we listen to your show quite often lately and so but we don't know where to start putting our money we like we don't know where to start we hear everything like we hear you talking about 401 K Roth something or others and you know things like that but like where do we start putting this money that we are going to be building up here very quickly I think I have about a fifteen hundred dollar surplus almost every month yeah well Congrats that's awesome okay so a zero based budget simply means every dollar has an assignment and what you're saying is is you're at the point that you want to assign the $1,500 or so to retirement like a wealth building and that way you're at your budget now equals zero right and so every dollar needs an assignment and we teach a thing called the baby steps it sounds like you're through with baby step two of your debt free accept your home baby step three is you need to make sure you have an emergency fund of three to six months of expenses once you've done that then any surplus you have in your budget the first fifty percent of your household income needs to go towards retirement now you don't have Roth IRAs and 401ks in Canada you have a different retirement system and so you need to learn your retirement system I'm not an expert on it but put 15% of your income and I recommend mutual funds of some kind figure out something where there's good growth on it that's above average and so we're putting 15% of our income towards retirement now if that $1500 a month is 18,000 that likely I don't know what you're making but it could be that that's your 15% you could be there beyond that let's say $1,200 is your 15% well well we only with the other $300 the next baby step is start saving for kids college and boy you got to need to start doing that you're going to need to start saving for kids got you got a bunch of kids and as soon as you as soon as you got kids college under way if you find any other money baby step 6 is begin paying off your home early and that's the process we use here and that's how I would tell you to do this but the good news is you got up on top of this thing you got your income up and you're making the money that you have behaved and you're asking the right questions hey thanks for calling amy is with us amy is an Oklahoma hi Amy how are you hi I'm wonderful how are you better than I deserve what's up awesome well I've been a Financial Peace University cost right now and I'm working the baby steps and I'm just a little bit stuck on where I should focus or prioritize because I have a couple of accounts in collections which to my understanding I shouldn't really worry about but I've gotten noticed from one that's in collections through an attorney's firm and it's also my biggest one of my biggest credit card debt but I don't know like timeline-wise should I start working on that first or should I just work the snowball that got snowball that way how much do you owe that debt on that debt its 19,000 with who discover and how long has it been since you paid on it Donna August I stopped using it and stopped paying on it I have three other that's my third credit card and they're all they all kind of maxed out so um well usually they do not sue someone that's quickly eventually they will get around to suing you so probably this is just a scare tactic at this stage of the game if you can plow on through and get cleared up with your other ones you are making payments on it's going to enable you to save up and offer a lump sum to settle this quicker obviously if they do actually file suit you'll have to stop everything and address it but I think they're just beginning to rattle the cage is what they're doing this is the Dave Ramsey show [Music] I'm George I'm les we've been married now almost nine years couple years after married we started a family and as we've been married about a year and a half and had our first daughter and a year and a half after that had our second daughter and two years later had our third daughter and then last year we welcomed a little boy growing up my dad was they was a farmer and so growing up through that learned a lot about a lot about money but it used as typical with most most farmers and public times they use a lot of debt and so it's kind of how I was taught growing up in this that's kind of where I went when I was growing up I was the third kid in line and parents didn't talk a lot about money but it wasn't like a hush-hush topic either and so um I kind of had avoided credit cards all the way through college although I didn't to having some student loan and stuff like that I'm sure they after we were married we found a local church that was putting on FPU took a lot of the the information we didn't totally buy it all at that point time things kind of turned upside-down for us when our third daughter became sick turns out she was diagnosed with a malignant tumor and our world just turned upside down she was just 12 months old at the time we had a almost two year old and a three year old at the time and everything stopped to find out your child has cancer is just startling I mean it's it's indescribable we ended up just kind of holding on you know it we just were in survival mode no more you know grocery planning or anything it was just you had to feed the family he just grabbed food put it on the table and in survival mode for for quite some time when we were in the local Children's Hospital and the oncology unit I was sitting there and I just I mean I was obviously terrified for her but also I'm like how much is this gonna cost us she ended up having six rounds of chemotherapy over the next six months or so she'd have one week of chemo in the hospital and then we have two weeks home we had a couple extra visits back to the hospital in those two weeks sometimes with complications overall that's that's what we did we were just holding on through that time it was amazing how much generosity we were blessed with people we didn't know or friends of friends we would be get a gift card in the mail or for gas or groceries or whatever it was just incredibly overwhelming to be given that much support and help buying some stranger's I mean friends former co-workers that we hadn't worked with or seen in years just amazing how fortunate we felt that people entrusted us here we think you need this and it was such a blessing to us I felt responsible for making sure that we've gotten a position where we could do the same thing that's really a linen that Turning Point happened where we really kind of said no we need to need to get debt-free and get that for as soon as we can if we started not eating out as much not doing you know really finding those those spots in the budget where we could find that extra money to start throwing it until Netflix she started you know selling everything in the house switching the cash you know kept me accountable the envelopes empty you know we're gonna have what's in the cabinet and often the end of the month we'd have some interesting meals if you can call them meals I'm not sure sometimes what's really important in life I think that's what's really changed our perspective over the last couple years of this process of between the illness and then also just getting to be debt-free you know what what's important to us is it is it is it curtains and nice cars or is it health and helping others and having a testimony to share and encourage others [Music] now that we are debt-free and kind of feel like we've got our own household taken care of we hope to just be able to give I mean it's kind of a constant reminder we have to remind ourselves that it's not our money anyway it's God's money and and that we need to seek His guidance and what we need to do with what we've been blessed with people call my show all the time complaining about how awful their timeshares are and yet you guys have been really having good success getting people out of their time chairs we have we kind of helped create this industry now there's a lot of exit companies out there they come and they go time sure exit team is different I mean we we've now have you know almost twenty thousand people out of timeshare contracts actual results actual results deal our guarantee is that if we can't get you out of your timeshare we give you your money back hey if you need out timeshare exit team is the team the only team that I trust to help you schedule your free consultation by calling eight four four nine nine nine exit or timeshare exit team dot-com hey guys coming up on the show Brandon and Emily take the stage for a debt-free scream they sacrificed and they paid off all of their student loans and not only are you out there to celebrate with them and our crowd here but both sets of parents are here to hang out with them and cheer them on I'm so excited you four hear their story and if you've got student loans let this inspire you to kick Sallie Mae out of the house once and for all [Music] [Music] in the lobby of Ramsey solutions on the debt-free stage Brandon and Emily are with us hey guys how are you how are you welcome welcome where do you guys live Vienna welcome to Nashville good to have you and all the way here to do a debt-free scream yeah absolutely fun how much have you paid off forty seven thousand seven hundred and eighty seven dollars and fifty two cents excellent how long did this take 16 months good and your range of income during that time started at 41 and ended at 96 okay that's a nice jump in 16 months yeah sounds like somebody got a job that didn't have one well we got married got married oh well okay that's a way to add income okay what kind of debt was the 48 thousand all student loans great okay so when did you get married eight months ago okay so halfway through the journey yep and were you working on it individually before that and so this is the combined number or just one of you just me just you yep you had 48 thousand dollars in debt she married you anyway absolutely I took a little convincing a little arm-twisting huh okay very cool guys okay so you were attacking and attacking attacking it you get married it accelerates the process right absolutely but so tell me how this story went down so I actually grew up in a home where Dave Ramsey was it was always talked about and I grew up going to the classes my parents taught the classes so oh you're a financial piece baby yes okay yes so I didn't have an option like student loans were not an option for me I commuted to school and hit them but then Brandon came along and drank the kool-aid and here we are okay so probably part of the way through my freshman year I can I realize the decisions that I was making probably weren't gonna be the best long-term decisions you know um it's been a lot of time driving back and forth from college listen to your podcasts and realizing the hole I was digging for myself so once I graduated a start to or it was time to start getting out of it yeah you were probably engaged by that point yes and or eight months and when you start this process so what's your degree in and what do you do for a living my degree is in agribusiness management and I work in Ag finance good good okay what do you do I'm an HR Payroll in a long-term care facility oh good okay very good cool all right so you get out of school get engaged and you're engaged to a financial piece baby so it's not really optional now and besides that you were already oh you're already heading that way right yes so were you already kind of working on that before you all met or did and then her her upbringing just put fire on it or how'd that work no so we were highschool sweethearts so we dated we've been dating since or we're dating as 2013 mm-hmm so I think it just kind of slowly kind of grew on me okay so she would mention it you turn on the podcast she would mention it you turn on the podcast yeah yeah and here we go yeah okay so there we go so you get out and get married so was this like once you started getting serious Emily and because people ask me about this all the time it's always so intriguing to me at what point is like a guy email the other day what at what point in the dating process do you bring up the dead snowball you know oh brother as so nerdy but uh it's about the least romantic thing I can think of but anyway what point were y'all talking about all this it really wasn't like a struggle for us so I never really had to say this is what we're gonna do where I recommend doing this he just kind of bought in and once he went to school he realized I don't really want to make minimum payments for 12 years plus so okay it really wasn't like that okay so you're just working together the whole time and it had more of a gradual incremental thing there wasn't like this big one moment where there's come-to-jesus meeting or something like that okay no no define the relationship moment or whatever you call that crap okay oh good for you guys well how's it feel it feels awesome yeah yeah it's great so you get married and for the first time in your life you're in debt yes how that feel they didn't feel good oppressive right oh my gosh yeah I thought of that that's a different feeling yeah and of course you knew it you kind of could brace yourself it wasn't like a surprise but yeah you'd never had that feeling and so yeah game on we're getting out yeah and all right so now that you've done it what's the secret tell you're a success you paid out forty eight thousand and sixteen months that's pretty rowdy by the way excellent very well done what's the secret to getting out of debt I would say probably about like what everybody else will say you know you have to know where you want to go and have a plan on how to get there so obviously that debt-free was where we wanted to go and the budget is how you get there you have to know where your money's going very good I would say the budget is well and just communication was key yeah so I'm guessing your mom and dad and we were like cheerleading for sure yes who were your other cheerleaders I think our whole family was really really supportive okay so you didn't have anybody like calling you stupid or anything like that no you're crazy you should just keep that desperate now some of you morons on Twitter you don't have any of that stuff yeah okay good for you guys I'm so proud of you very very very well done very cool so during the eight months before marriage and the eight months in marriage what was the toughest part of really leaning in on this I would say for me the toughest part was just not allowing the lifestyle creep to happen I graduated college when I was poor in college I didn't have any money so just just continuing that mentality and not you know a lot of my peers around the time they would go and buy a lot of nicer newer vehicles and everything and I lived with my parents until we got married so that was really nice I was able to throw the majority of my income at my my dad and everything so just yeah just maintaining that broke college kid lifestyle I guess yeah way to go good job y'all well we got a copy of Chris Hogan's book for you everyday millionaires that's the track you're on that's awesomeness your parents decided years ago to change their family tree and you are proof that that can happen so very very well done very well done and we'll get that make sure that that is signed by Chris he's wandering around here somewhere I think and so thank you guys for coming down to do your debt-free scream and we're really really proud of you you guys are heroes you starting off your life so good I mean it's clean now you can go do whatever you want to do most people would wake up at 48 and try to figure this stuff out how old are you - I'm 21 I'm 23 awesome you guys are awesome all right Brandon and Emily Wabash Indiana 48,000 paid off in 16 months count it down let's hear a debt free scream 3 2 1 we're debt-free man you're 21 and 23 years old you make 96 thousand dollars a year and you have zero debt you know how rich you're gonna be you've already lived like no one else now you're gonna be able to live and give like no one else unbelievable now what you need to hearing that story that was so beautiful was her mom and dad see her mom and dad years ago decided to get out of debt years ago decided to follow the stuff that we teach here beyond a written plan her mom and dad years ago decided to change their family tree so she never knew debt and as far as she was concerned you don't do debt it's horrifying it's all falling and yet she falls in love with a guy who's got 48 thousand dollars in student loan debt but um and he's not you know he's not resistant so that mom and dad so they work together they get it cleaned up that mom and dad's dream Emily's mom and dad's dream of changing their family tree is still happening even even when she marries into debt it still happens cuz they still clean it up they still have that right mindset they still go forward so there's always hope on this stuff it's absolutely amazing because I mean one thing you can do is really straighten your kids out but then they marry poorly that can happen that's happened to friends of mine I've been blessed our children all married absolutely incredible people were really really blessed and I used to say we hit the son-in-law lottery but that wasn't true we taught the girls how to pick and boy did they pick I mean we are my sons in law my daughter in law absolutely incredible people so we are blessed but and obviously Emily picked well I mean Brandon had a little debt but hey on game on game together let's get rid of it we get it cleaned up they got a bright future they're way mature and wise beyond their years at 21 and 23 don't most of some of you Oh people listening that you wish you had half that brain when you were 21 just half of it just a half of it would have been good oh this is the Dave Ramsey show [Music] hi everyone Chris Hogan here right now 78% of Americans are living paycheck to paycheck that means 8 out of 10 8 out of 10 of your friends 8 out of 10 of your family members can't cover a basic emergency they're sending a quarter of their paycheck to car payments student loans and the credit card companies debt is stealing from them and the worst part most of these folks can't understand why they're stressed while they're fighting their spouse while they can't gain any traction and that's not okay but what if you could help them what if just by volunteering your time you could help change their lives as a Financial Peace University coordinator you can our coordinators have helped over 5 million people learn how to pay off debt spend and save wisely build wealth and ultimately change their lives if you have a heart for helping people then you're exactly the right person to become a coordinator you won't need a lot of time or any kind of special training plus someone from our team will walk alongside you and guide you through the entire process join us in changing lives and take the first step to becoming a Financial Peace University coordinator today [Music] the student loan crisis in America is out of control so many of you are so overwhelmed with what you owe on your student loans that you can't even imagine ever getting out of debt even if you're in over your head I got some great news high interest rate student loans are the only debt I recommend you consolidate and refinance to lock in a lower fixed rate visit our friends at Splash financial.com slice Ramsay and see what rate they can get you the thing I like about splash Financial is they're dedicated to helping you save money and they don't sell any other products to tempt you into going further in debt this is unheard of in this industry take the first step and help yourself get out of debt go to Splash financial.com slash Ramsay to easily check your rate in minutes and see if you can save some money that's splash financial.com slash Ramsay [Music] they folks some here after an awesome debt free scream with both sets of parents how cool is this how you feelin very awesome very excited yeah you must be proud what's it like knowing you raise financially responsible kids who are gonna do something with their lives and not have to worry about dead ever again you know what it's the best feeling ever I taught my kids I hope I taught my kids love God love others and make good choices and this is a good choice yes I love that how about you it's an exciting day to be here thank you thank you guys for making the trip it's not very often that we get both sets of parents to travel down are you guys all from the same area we are okay well that worked out nicely this is a little that's important it's very important this is a great PSA make sure you like your in-laws okay they're gonna be around for a long time well I know you're all proud of them we are - we're cheering them on way to go to Emily and Brandon [Music] [Music] thank you for joining us open phones a triple eight eight two five five two two five this is the Dave Ramsey show William is with us in Arkansas I William how are you well hello there mr. brand yeah I'm blessed and highly favored how are you sir just the same sir how can I help we have the mandatory retirement contribution in my job I works in the state of Arkansas it's six and a half percent mandatory plus they do a match Plus which takes me to 17 percent on my retirement they don't in many years I'm sorry what is a match plus they match what you put in addition to the six and a half they give you your six my half back which is thirteen percent then there's a plus to that where they put in an additional four percent okay so that has me at seventeen so you have going into sixteen you have to put in six-and-a-half they match it with another six and a half and then they give you some more yes sir and that gets you to seven other--for percent that get you to 17 percent going in what is that going into I want the state retirement package so I do not know okay so we don't know what it's invested in nor do you get to pick options or control the investments you know you do not get to control the investment that would be normal now I'm just verifying okay alright we've also got a deferred comp package with them also in this bit the other more a 1k also or 403b also notice this is a call to deferred comp yeah well there's difference because sometimes I have deferred comp and those other things that's why I'm asking so this is oh this and the deferred comp Sall they've got but the deferred comp you can pick mutual funds to put money into right yes okay that's a four fifty nine seven plan it's called that's what the word comp is and all that means is you're not taking compensation today you're saving it instead and so you're not taxed on it today you will be taxed on it of course when you take it out like you would with a traditional 401k and you'll be taxed on any growth when you take it out like you would with a traditional four okay so it functions a lot like an old 401k okay all right so your case what we tell folks to do is to put 15% of your income away regardless of the match and so you're putting six and a half away and that means you would put another 9% away so what I put that nine percent in the deferred comp after I get out of baby step two and give my six months plan villain here I probably would put it in Roth IRAs independent of your job first okay not probably I would put it in Roth IRAs independent of your job that is exactly what I would do what's your household income forty three thousand okay all right you're allowed to do if you're under fifty years old you're allowed to do six thousand a year each if you're married and I turned 50 this year single okay okay so you can do seven thousand this year into a Roth IRA and let's see that's more than you need to do anyway so you'd be just fine yeah so what I would tell you to do everybody's I'm sorry I should appreciate your abut sure so what I do sit down and smart investor pro and open your Roth IRA in some good growth stock mutual funds I invest my growth my mutual funds and I suggest the same for others across four types evenly growth growth and income aggressive growth and international and sit down with a smart investor Pro and understand those understand the Roth IRA comes automatically out of your checking account and I would put the equivalent of nine percent of your income which would only you know you make forty thousand our forty five thousand and so that's gonna be four or five thousand dollars you don't even need to max out that Roth to get there so you do the six and a half over at work and then do you know do four or five thousand something like that into a Roth you do four hundred a month to be forty eight hundred that'd be an easy number to remember and get that across those four mutual funds I'll be a hundred bucks each one going in that's probably a good way to do it actually but sit down you're smart investor Pro and they can walk you through that click smart investor at Dave Ramsey calm those folks don't work for me but there are people we endorse have the heart of a teacher hailey is with us hailey is in Texas hi hailey how are you hi how can I help so I my husband and I just started this we're not even a month in and we used our tax return to pay off for credit cards and we still have I go to school and I have two student loans ones from the evil navient and then the other ones from Great Lakes and my question I actually have to you but my biggest one is should I or can I consolidate my greatly student loan is it possible and is it worth it it's a twenty nine thousand seventeen dollars and twenty eight what's the interest rate on it it up well there's three of them and it is and so there's two of them one 5% in the other seven okay and what what's the interest rate on the navient there's three of them and it's 29 and altogether interest rate yeah no now it doesn't have 29 interest rates but what are the individuals no it's not calculate that way what are the individual interest rates alright Navia loans like you gave me three different rates on the Great Lakes loans right five five and seven right okay what is it on that yeah I'm not sure I think it's like seven like three of them in a total 29 one of them's over ten yeah okay another a Wyatt I mean okay well the only reason you can solid eight student loans is if you get an end up with a lower overall interest rate and and so it's not adding them together like that where you get 29 that's not the calculation you got you got five on a certain amount and that amounts to a certain number of dollars and you got seven on a certain amount and that mounts to a number of dollars and so on and overall navien so you've got six different loans you would calculate and then say okay it is the net effect of this so for instance if you could consolidate them it's 6% but some of them were at five and some of them were at twelve and the total across the whole board was larger than 6% then you would do the consolidation okay and so okay so you don't have any refinance costs if you go to splash financial that we endorse okay I tried to go there but they said that they don't do it if you haven't graduated oh I'll be true okay so when do you graduate so I I went to Lee in Cleveland and I didn't get to so I'm going to Texas instead I was originally in Tennessee are you currently in high school no well then they didn't understand they thought they thought you were that they thought you were still enrolled they won't refinance them if you're consolidate them if you're still enrolled but if just because you didn't graduate doesn't keep them from refinancing that's not how it works so holler back at them again jump on the phone with him they'll help you they're good folks and what you need to do is you've got to calculate the overall rate and compared to the current rate they're quoting you and then that will tell you what the best way to go is you probably do need to consolidate these because it will save you some on interest but overall Haley your bigger problem is not your interest rate your bigger problem is to get your income up your outgo down so you start chunking big dollars towards these things because they're not going to go away based on interest rate they're gonna go away based on big Airy principal payments that's what makes them die go away Salameh go away navient go away Great Lakes but yeah holler back at splash and talk that through with them again and and then start working on things you can do to get your income up and get yourself on a really really tight budget you know you can do this you can do it it'll work for you thanks to James childs our producer Delia Tynan associate producer and phone screener I am Dave Ramsey your host we'll be back with you before you know it [Music] [Music] [Music] our high health care costs getting you down are you confused trying to navigate the health insurance world do you wish you could find an affordable biblical solution to your healthcare costs based on New Testament principles Christian health care ministries are CHM helps Christian families churches and businesses join together as the body of Christ to share their major health care costs as a CHM member you can go to any doctor or hospital you prefer you aren't bound by an approved health care provider list and all treatment decisions are made between you and your doctor no treatment approvals are ever part of the CHM experience for tens of thousands of Christians CHM is a trustee affordable and biblical health care solution and it can be the solution for you as well visit us online or call today to learn more about how we can serve your family church or business Christian health care ministries one eight hundred seven nine one six two two five CH ministries dot org [Music] well we all love a good party don't we and we all would love to be able to host a great party whether it's a wedding shower a baby shower maybe a birthday party for your kids or your spouse or even your own wedding unless you're like Monica and you refuse to call your wedding a party remember when she was like Chandler if you call my wedding a party one more time you may not be invited friends anyone friends anyways when you are throwing a party there are two filters to be thinking about okay so there's the money filter and the motivational filter so depending on where you are financially that's going to affect what kind of party you're going to throw and listen there's a lot of life events to celebrate it's so fun we love confetti we love balloons but you have to be responsible when it comes to your money and also you wanna make sure that your motivation is in the right spot now if you're paying off debt or you're saving up for your emergency funds then your party it's probably gonna look a little different than those of you who have no debt a fully funded emergency fund and you're like rockin and rollin okay but neither party is right or wrong it's all dependent upon where you are financially and reminded me of the story of Jay Z when he was like in the news a few months ago because he took a bunch of people out and threw this big party and spent a hundred grand at this one restaurant and people were like losing their minds I was like well I wonder how rich jay-z is I mean he's married to Queen B so mean like he's gotta go pretty good right I mean like he's smart guy and so I looked Jay Z himself he made 42 million dollars last year 42 million dollars like a million dollars but 42 times in just a year I mean like a lot of money it's a lot of money so he's been a hundred thousand dollars in one night okay so what if you just took some zeros off that would be like someone who makes four hundred and twenty thousand dollars a year spending a thousand dollars on a party or if you're making $42,000 a year spending a hundred dollars on a party a hundred dollars that's what you spent when you walk into target yes I know I know you yes so I mean a hundred bucks I mean like look at like jay-z you go spend a hundred grand I think you're okay and you might you could PI spend it every night for the next two weeks and you're still gonna be fine right so again it's ratio so if you can pay for a great party then go and have it but if you can't then your party's gonna be more on a budget which is still okay and remember people are coming to your party because they love you and not all the stuff you're doing to throw the party okay so remember that so when you're looking at a party to throw you're like how much can I spend remember our filters right the money filter in the motivation filter so if you have the money but your motivation is just because you want to post on Instagram and get a lot of likes not great motivation so check yourself or if you have the money and your motivation really is that I want to throw a great party for my friends or I want to throw a cute 1 year old birthday party for my one-year-old and I love to create things good good motivation good money good to go great or if you don't have the money then I don't care what your motivation is your party is gonna be on a budget and again that is okay we believe the American Dream is alive and available not for a select few but for everyday people like us regardless of background of bloodline we make our own success we choose the path to building well it won't happen overnight we know that investing in the future takes sacrifice we won't go it alone we will seek wise counsel along the way and refuse to take advice from brookie we will not make excuses we will make progress obstacles will get in our way but we'll go over them we'll go under them or even through them because we have a plan and as we succeed we will not apologize we are blessed to be a blessing to give outrageously change our families impact our communities and leave a legacy we are focused and not finished [Music] alright I'm here with the happy debt-free couple Brandon and Emily how you feeling feel great good you guys did an awesome job up there on the stage you paid off all the student loans what is next for you next is saving up for a house that's step three B right now that must feel good what was it like when that first paycheck came in and just stayed there without having to go back out to debt that was a great feeling to be able to start building her bank account up yeah we have money again feel good to have that momentum build so much faster and you're building for your future now instead of paying for the past that's got to feel good yes absolutely so what would you tell couples out there that are going yeah I'll pay off the student loans and I can will pay the minimums they'll get will get rid of eventually or wait for someone to forgive them what would you say to them I would say don't wait because I like I had like my minimum payment was gonna be like $480 a month's for I think ten or twelve years so yeah just get them just grind and get rid of them yeah that's awesome and I understand you guys are Co coordinating an FPU class right now yes yeah we're Co coordinating with my parents generational financial peace class and a family tree changed forever way to go Brandon Emily the total debt is around six hundred and forty thousand dollars I just don't even know where to begin [Music] you are not a pig you are the hero in your story you can be intentional about your character you can have money and a career everything just started making sense I look like I'm gonna do this let's hear a debt free scream [Music] live from the headquarters of Ramsey solutions broadcasting from the dollar car rental studios it's the Dave Ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the BMW as the status symbol of choice I'm Dave Ramsey your host thank you for joining us open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five all right up next is going to start off this hour is gonna be Anya in Kansas hey Anya how are you awesome are you better than I deserve what's up awesome I'm glad to talk to you I just you know in 2016 I come and visit you and I'm not just free yell and ever since then I stayed that's free and I have named up my emergency fund I think that's my house down payment and I have been investing for the last three years and maxing out my Roth IRA and there's other ways to be a millionaire and there is no calling is because I have got a full-time job I get paid really well and I'm able to say six thousand within the first three months of the year and I learned better too when you put into the losses that you should do 500 a month or it's okay to 6,000 all at one time okay if the market the stock market were to go up exactly the same every single month which it doesn't obviously you would be better off to put it in in a lump sum because you get that money working all of those other months that you wouldn't have had it in the market in other words it's making almost nothing right now if you put it in now you would make money all year long versus you wouldn't have made money the whole year long now if the market goes down substantially after you put the lump sum in over the length of time that you're in the market with a retirement you're gonna be fine the lump sum is going to be the best way to go if it goes up obvious the lump-sum what's the best way to go so overall as long as you can handle it emotionally if the market continues to dip on coronavirus or on something else Korea or whatever if the market goes down and you put in six thousand dollars and by the end of the year it's worth I don't know five thousand dollars if you can emotionally handle that knowing that it's going to go up a lot over the coming years long before you get to it in retirement twenty thirty years from now when we prettier we're pretty you know pretty sure we're gonna see an increase between now and twenty or thirty years so you're gonna make money as long as you leave it alone but you might have a dip before it goes up as long as you can emotionally handle that I would go ahead and do it now especially because right now there's a coronavirus sale it's on sale the markets on sale it's a deal right now because these numbers that are down artificially right now those companies didn't all stop making money as much as their stock went down so they're artificially low based on fear not based on math and so it is a great time to invest right now if I max out my Roth IRA or do I just do traditional and then top I thought until funds to traditional and then converted to a well no you can just you just max it out as a Roth unless you make over it you make over two hundred thousand no okay don't have a lot of extra money I can put towards retirement and savings and so on well I want you to put fifteen percent of your income into retirement and no more until you got the house paid off everything else goes towards the house but if you're going to walk house yet I thought you said you'd save the down payment for a house yes I think the down payment I don't have a house it's just sitting right now and I'm ready to buy a house okay be anything above 15% of your income right now needs to go in that down payment fund okay how much do I need to pay for down payment as much as you can okay as much as you can there's not you can't save too much as my point so say 15% of your income into retirement if as part of that you're going to do some lump sum Roth's that's fine as a part of that 15% but anything above 15% of your income should be going into that down payment fund until your home is paid off in full and that's that's working the baby steps properly so a really good question thank you for joining us open phones at triple eight eight two five five two two five you jump in we'll talk about your life and your money kayla is with us in Colorado hi Kayla how are you I'm great David how are you better than I deserve what's up all right well I'm 28 and I'm on baby set - after John Heise for a couple of months I have a little bit over one hundred and fifty eight thousand dollars in debt a hundred and thirty nine thousand give or take is student loans and forty three thousand dollars of that is Parent PLUS loans and not only do I hate that interest rate of seven point six five percent which is outrageous I feel a moral obligation to take him off my home and put them on my own credit history and so I'm looking at a parent loan refinancing and I was just wondering what your thoughts were on that I have some more details but I'll I'll stop there you found a loan that is offering for you to refinance your mother student loan debt that she took out yeah yep by four percent I was given a merger name in in my name I could reduce it almost four percent and get it out of ink and get it out of her name exactly and the there's no question that you are supposed to pay this I mean the deal you made with your mom was you're you were going to pay it I've always been paying it yep I've never seen ever paid a dollar on it I've always paid it cause it's my obligation it's just I've just done the minimum payments and kind of just let it go okay if you're taking it on as one of your student loans in mathematically you might as well take it on legally and especially if it's a 4% there's no downside to this discussion then there's the one question I had on Dave is obviously this would increase my monthly payment by about $400 which I can do I've been sticking to every dollar like religiously but your emojis not agreement on this yes yeah yeah I am but it would just increase my total payment my minimum payment by about four hundred dollars for that loan why they're restructuring the loan in a way that makes the payment go up because you're already paying your mother's payment right yes and you're getting a cheaper interest rate than she has so why is your payment going up because it's not the way that we chose to do it was on an incremental basis on the refinancing it's through Naviance also we started on one of those 2-year incremental things I got you okay yeah so it's artificially low now and you're just you're gonna own that okay yeah I think you still go ahead and do this still makes sense because you're you've decided that this is your obligation at some point in this process and so pear PLUS loans are not always morally the student's obligation so but that's the that's the deal you all have made and I'm okay with that if that's what the deal you made was [Music] it was my junior year in high school and I was that kid that was freaking out because I was scared an admissions counselor came from a local college there and said hey if you do not have a plan on how are you gonna pay for college right now you are yet I was terrified because I didn't have a plan and my parents didn't have a plan and I remember taking out student loans to not just fund college but also to fund my lifestyle and that was the biggest mistake that I made and I am on a mission to help your kids to help all students avoid making that decision my name is Anthony O'Neill and I travel across the country talking to thousands of students every single day how to start a good solid foundation for your life do you know that the average student will graduate about thirty five thousand dollars in student loan debt this is ridiculous I wrote a brand new book called debt-free degree where I'm teaching parents to step-by-step process on how to get your kids into college in through college 100% debt-free not only am I talking about scholarships lands for class you needn't be taking but I'm also teaching them what secrets behind prepare for the a CT and the SAT how you get those scores up and what are some different ways like community college trade schools what are the secrets are all in my brand new book debt-free degree go to Anthony Neal comm or Dave Ramsey calm and order your copy today I made as many mistakes as far as taxes were concerning [Music] and we wanted to do these correctly we got very frustrated knowing that there's got to be a better way to do this the student loan crisis in America is out of control so many of you are so overwhelmed with what you owe on your student loans that you can't even imagine ever getting out of debt even if you're in over your head I got some great news high interest rate student loans are the only debt I recommend you consolidate and refinance to lock in a lower fixed rate visit our friends at Splash financial.com slice Ramsay and see what rate they can get you the thing I like about splash Financial is they're dedicated to helping you save money and they don't sell any other products to tempt you into going further in debt this is unheard of in this industry take the first step and help yourself get out of debt go to Splash financial.com slash Ramsay to easily check your rate in minutes and see if you can save some money that's splash financial.com slash Ramsay [Music] hey folks I'm here with Stacy from California Stacy what brings you to Ramsey solutions we're here sightseeing for the day our daughter is in a show choir competition tomorrow so we thought we'd my husband's obsessed with Dave Ramsey so he this was a must do for him that's awesome now tell me where you guys had in the baby steps we are debt-free yeah way to go now he's in the restroom I understand he's gonna be very upset he missed out on the segment with us he would have way more detail on we're here he comes he's alright he's about to walk in oh no he's chasing me guys we don't have time we'll follow up with him later but we're so excited you're here hanging out with us today way to go dead freedom this is what it looks like in Danny [Music] our question of the day is from blinds.com they have a 100% satisfaction guarantee that means even if you miss measure or you pick the wrong color they will remake your blinds for free you get free samples free shipping and with the new promos they run all the time you'll save even more always use the promo code Ramsey you get the best possible deal today's questions from Kate and taxes day we recently purchased a new home and have decided to retain our current paid off home as a rental property our long-term goal is to purchase several more rental properties with the profits is there any benefit to incorporating or forming an LLC or should we wait until we have more properties in our portfolio you can move the old rental property into an LLC if you want to and then just add other ones to it the main reason to do a separate company to hold rental properties is just risk management and so on I don't put and when if I'm buying for instance single-family homes and I'm probably I've got a bunch of them I don't I don't put more than about two million dollars five million dollars worth of homes something like no more than five million dollars worth of homes in one LLC and then I open another one and then if somebody decides to get hurt on one of those properties and Sue they have to sue the company that owns that property the owner of that property which so the maximum thing they could get of course I've got insurance too and of course if somebody got hurt it was our fault we'd take care of them but I'm talking about risk management in a litigious culture we live in so the most they could get would be the things in that LLC and they couldn't get any of our other items that we own because they're all broken up as a matter of fact I've gone so crazy now because our stuff has gotten so complicated and so big that I don't own a single thing personally I don't even own my cars anymore they're all in LLC's or trusts or corporations or something so that it's all split out and each individual company then takes the risk of that company so yeah just from a risk management standpoint I would drop you don't want prop in a sub s you get into all kinds of tax issues but the LLC's a straight pass through and your first four five or six houses or whatever that you buy of course we're paying cash for them I'm assuming you pay cash for your personal residence that you bought there and we don't do real estate except with cash I don't and I don't teach anybody else too but assuming all of that as you're buying another one up until you get a the size of the target on the thing starts to make you nervous um I would put it into an LLC now I had one guy every time you bought a property put it in LLC that drive me nuts does you have to file tax return on every separate LLC and you have to keep a set of books on every separate LLC and that will drive you bananas so I don't have now if I've got one singular big property like I've got one office building that I rent out that that's worth about fifteen million it's it's own LLC that one's worth keeping separate but as far as every single property we own does not have a separate one it's only when it gets up to the size of the target on your but gets to be too big in the case of somebody suing you that's the only benefit to it there's no tax benefit whatsoever you're the same exact taxes on an LLC you do in your personal residence so I mean on your personal tax return all right Kevin is with us in Texas hey Kevin how are you hi Dave I'm wonderful sir how are you better than I deserve how can I help so I'm 24 years old and seven years ago my mom said got a whole life policy from us from a family friend for her or my dad mean yeah and I'm trying to convince them to at least cancel mine because they have some debts and these premiums obviously are going to be a burden on that the whole life policies were means 500,000 and she pays like four thousand a year in premiums and some of that I don't know how much is gone into something called a paid-up Editions writer yeah now the whole way this thing is set up there's like mental gymnastics to me I can't believe understand it I can't find him unbiased explanations on what this rider is but I was able to contact the agent and he was telling me a very big explanation that you know it admins value and so that even though I don't get the cash value if I would die on that base value would end up growing by an exponential amount and therefore it's worth still need to keep it and I shouldn't be cancelling it I just think you know either way I can get a load terms on trade so I'm thinking mints on candy than just cancel it don't know if that's a smart thing I do because I don't understand the split of the ditches right here so just wanted to get some clarity on that well you're onto something here you you should cancel it and you should get term insurance and it's no shock that a whole life agent when you called them said you should keep the whole life well duh that's how it gets his connections and so he didn't once you can see what he wants to get a commission so paid up additions are in what are called mutual companies mutual companies are owned by them the the customers okay and so technically speaking that doesn't work out this way but technically speaking when they make a profit they don't have stockholders the policyholders are the stockholders you are a stockholder your mom's a stockholder and so they pay out dividends okay but it's not like dividends in stock they make it sound like it is but it's not stiff it ends in stock are when you want a share of stock in a company that company makes a profit and they give you the money okay but if you're the customer and the company makes a profit and they give you money whose money are they giving you yours they overcharged you in the first place that created the profit and then they gave you some of your money and made you act like they did you a favor okay and so the IRS has ruled with mutual companies that dividends in life insurance are not like dividends they're not taxable because they're a refund of a deliberate overcharge that's what the IRS says okay so that is your that's what the money is that's the money is being used to buy paid up additions okay now let's listen to the words additions means you're buying more insurance additional insurance paid up on whole life policies is when you are if you wanted to just buy a whole life policy and not pay monthly you could give them a lump sum they would take a portion of the money you gave them and put it into a cash value and you would have given them so much money up front that you paid them in advance so they don't charge you anymore that's paid up okay okay so which one paid up additions are is you gave them so much money you prepaid for additional insurance using the dividends that are the refund of a delivered over charge there's a lot of mental gymnastics here but it is understandable okay so they charge too much to start with handed it back to you in the form of profits called dividends that aren't really profits they just gave you some of your money back they use that to buy additional insurance and give you the benefit you the wonderful benefit of letting you prepay for your whole life for that additional insurance paid up additions bought with dividends that's what this is okay and so it's a bunch of horse crap is what it is it's whoring revenue where my parents policy they're also shaped like this but they're near sixty now so their term rate I checked it out for that but they're tournaments really high so they even need insurance do they have money they bear in a lot of debt they have over six days of debt about a hundred thousand because they've been buying this horse crap their whole life burden you know is it wise for them to just keep theirs to their term rate is just about the monthly premium of this whole life it depends on the level of the it depends on the level of debt that they're in and how much money they're gonna need if one of them dies if they need insurance then you have to decide what you're going to do to get the insurance and what's the cheapest way to do it but for you at twenty four years old you know shovel the manure out of the bar and cancel this crap it's cool and I'm yeah there's about 16 K in the cash value I'm just planning on sounding to take that you know add you know bad Janice it to clean up some of their debts and you go buy you a term policy and get on with your life young man you have figured this out you're you're you have good gut instincts because you can kind of you can smell horse crap when you when it's in the room with you and that's what you were doing you smelled a skunk you just didn't know what his name was and so I walked you through the definition of the terms and then you start to figure out oh they charge me too much they give it back to me it's the refund of a deliberate overcharge I use that to buy more insurance and I prepay for it well how could this possibly be good for anybody but the insurance company that's what it is this is the Dave Ramsey show [Music] [Music] chris hogan here i've spent so much time on the road and talked with a lot of people and the millionaire success stories that I run into might surprise you whether I'm at an event or talking on my podcast one thing has become clear most people have no idea what a self-made millionaire really looks like you're gonna get a glimpse into the life of a self-made millionaire we just don't do death it's bondage so we will have no part of it you don't want to miss it people this is everyday millionaires first off and we never set out to be millionaires what we set out to do was get debt-free and you know I listen to the Dave Ramsey show when I'm quilting that's one of my hobbies and I hear people who get out of debt early sort of the way my husband and I did and Dave always said you're going to be millionaires and I'm sure he's right in every case because it's just a natural thing you have the habits now of good money management and you can't help but if all into a millionaire is like a child that just keeps growing they can't help it I'm Julie and I live outside of Cincinnati and within northern suburbs I am married my husband's name is Mark he can't be with us today because he has an international job and he's in China right now I have never made the income that you would expect a millionaire have in fact it was not my income or my husband's income we just plowed money into investments and what really made us a millionaire is that the stock market took off in a big way the real estate market also took oh and at the time I became a millionaire my house was probably worth about 130 140 because the value of my assets it was my ass that made me wealthy not my accountant to put it all in a nutshell because this was a process it took us a total of about seven maybe seven-and-a-half years between deciding we wanted no debt to becoming a millionaire we were millionaires by the time we were 37 I've been a millionaire now for over 20 years actually it was kind of shocking to us truthfully I didn't believe I was a millionaire I had some extreme poverty when I was in high school and this is a little hard to talk about my my father was very ill and he lost his job frankly we lived on welfare for a period of time and there were four separate times that I came within 24 hours of being homeless so I I learned to be terrified of debts I also learned that anything can happen to anybody the lack of money was part of my identity it took me a long time to get over the fright that I would never become homeless had a huge impact so I had it was it was a scarcity mentality one of the things that makes the Dave Ramsey show unique from other shows is that we genuinely care about our listeners that's why we're intentional about choosing advertisers that we know will serve our listeners well blinds.com is no exception for years I've been telling you how amazing these guys are blinds.com offers high quality window treatments at unbelievable prices and their customer service is unbeatable they make buying measuring and installing blinds find affordable and shockingly easy and if you accidentally miss measure or pick the wrong color they'll remake your blinds for free when you're looking for window blinds the only place you need to go is blinds calm with blinds calm you get free samples free shipping and when you use the promo code Ramsey you'll save even more take advantage of this week's special promotional offer when you go to blinds.com and use the promo code Ramsey [Music] hey guys if you want to stay motivated and up-to-date about what's going on in the financial world and what you need to know then you need to subscribe to our free weekly newsletter it's coming out this Sunday let me tell you what is coming out in this newsletter they're going to be talking about coronavirus it's all over the news so what does it really mean for your investments we're gonna let you know then can you count on Social Security when you retire what are the benefits we're going to be answering your top questions in that article then up next we're gonna be talking about millionaires they have a secret to winning that they don't tell you but you know who will our friend Dave Ramsey make sure you check that out then what want to make sure you're doing your budget right we're gonna share 15 practical tips to help you stay on track and it's all in this week's newsletter it's totally free but you have to sign up to get it just go to Dave Ramsey comm slash newsletter enter your email and enjoy all that great content [Music] [Music] [Music] thank you for joining us America this is the Dave Ramsey show open phones at triple eight eight two five five two two five thanks for being here David is on the line David is in Florida hi David welcome to the Dave Ramsey show thank you Dave appreciate your taking the call and love yourself thank you sir how can I help I was curious where you would put the blessing of alimony in your seven baby steps or if you would I would guess it's a monthly payment is it not really to get it gone okay what is the finite amount this is the total of all the payments or is there a discount paying it earlier there's no discount as far as I know so it's just the total of all the payments which is what the left 150 what do you make a year okay how long have you been divorced five and a half years okay how is the current relationship hmm not great but we tolerate each other for the kids okay all right what is her financial condition don't know I know what it was five and half years ago but I don't know it won't you guess mm she's probably making 1516 but I mean you Chevy money job I don't know what a lot but okay I'm just wondering if what I was fishing for is I wonder if a lump sum would be attractive enough to her that it would be worth it to you they aren't worth it to her to take a discount to get it all out front because a normal thing not not counting emotions and law okay and all that crap okay but let's just say that you that she held a note that someone owed her a note with interest at based on a hundred and fifty thousand dollar principle balance okay but the the stream of payments was over the next how many years I don't want five and a half more years yeah okay if you had a note that you were receiving 150,000 with interest over next five and a half years and you want to sell that note you would have to discount it no one would pay you 150 for it right okay and so that's the that's the concept but obviously if that just bringing that up brings Klaus out then it's not worth it right and you might need you might need an intermediary her old attorney or somebody I don't know that would could explain that to her that it is to her benefit in other words if she called me and said my ex is offering me ninety thousand or a hundred and five thousand or whatever for a 150 thousand dollar total payout five and a half years early I would tell her to take that and invest it because she will end up with more money right mathematically it'll end up being five and a half years from now more than 150 because a hundred thousand if it owned 10% for five and a half years it would earn ten thousand dollars a year for five and a half years or another fifty thousand right whew so actually more so you know if somebody is offered a hundred and five hundred and ten on this deal it would be wise for them to take it but someone has to explain the business aspects of that aside from all the emotion so all of that to say that would be my if you're gonna lump some this that would be my first attempt would be to say I'll give you a hundred and five thousand dollars one hundred and ten thousand dollars cash today you invest that you'll make more on it over the five and a half years than you would have if you'd have just gotten it a little bit at a time okay now if she says absolutely not I will not discount it one penny then I would not prepay it I would put it I would prepay it into an account in your name and then just dole it out of that account so when you had a hundred and fifty thousand in a side account you're done but you just gotta peel it out of that account every month right but I'm not gonna prepay it to her because something weird could happen during the five years and you don't end up owing it for some reason well are there any provisions like remarriage or anything yeah I see there's a reason that you wouldn't prepay it okay because you could end but in terms of the dead snowball I would just set it aside 150,000 in your debt snowball I'd set it over there in a separate savings account and go box checked okay I'm just pay it out of that it's oh you're done with it it's just you got to do the transfer every month for the next five and half years that's all what does that make sense to you thank you for the call open phones a triple eight eight two five five two two five cathy is with us in South Carolina hi Cathy how are you hi I'm good how are you better than I deserve what's up good good well so me and my husband are having a baby in August and we've caused our debt snowball to build up cash one of our time yeah so we have a good amount but one of our cats is the sort of medical emergency and the surgery is going to be anywhere from like two to five thousand dollars depending on if we go to a specialist or have our vet do the best she can quote unquote so my question is somewhat of an ethical one is there ever a limit you would put on spending on a pet depending on where you are financially well I'm just an animal lover I just we I just cry every time one of our dogs dies you know I just cry like a little girl I mean I just I love animals my wife grew up on the farm and animals went away every week so she loves animals but I I'm I I treat them like people you know so it's harder for me emotionally is for her if a dog dies she's just like well that's sad the dog died and with me I like crying you know and so you know you kind of have to get into it and it's personal finance but I I think you got a you know it is an animal it's not a person and personally the way I look at it and everybody can look at it however you want to look at it y'all can all everybody always gets me at marathon this question comes up but I get always hate mail on Twitter but you know but but you know if you have a new baby coming that is and that is a real obligation a cat is not and so if you're going to spend $5,000 on a cat you should probably be worth several hundred thousand dollars and you're not okay we have we were going I was actually going to go back on the debt snowball because we we can't we have like about ten thousand now right now I'm just kind of preparing for that but I was like that seems like maybe termites were just to have on hand for the baby so it's like we have this to have on hand for the baby steps but you're building up cash that you're going to use on this debt snowball as soon as you and baby come home from the hospital healthy yeah you aren't building it up to spend $5,000 on a cat yeah so another way to look at it is this in the and this is again it's it's it's breaks your heart okay so I'm not I'm not acting like this doesn't matter it does matter I'm the guy that cries okay so I'll cry when you hit him I'll cry when Kitty goes to Kitty heaven you know but not me because I'm not a cat guy but I'll cry when doggie goes to doggy heaven okay so but aside from that if you didn't have a cat would you buy a cat for five thousand dollars right now no and so II and I feel guilty because I do I like the cat but it's okay because my you know like I have a cat that I love and this cat the other one I haven't bonded with I'm trying to be really fair and well it's not that's not that there's if it were the cat you loved it's the same decision it's a cat not a baby yeah they're different these are not humans human life is different than animal life and so we love our animals and we're kind to them and good to them and they have the better life than most humans if they live at the ramsey house or at your house right but you know they're loved and cherished but you know we had a pug one time that there was a 2500 they said it's got spina bifida and it's gonna be 2500 bucks to have a 15% chance that this dog can walk and I'm like I'm not putting the dog through that and I'm not spending 2500 bucks on the dog and so that dog went to heaven and I cried harder than anybody else in the family but their BIOS just went well the dog died but Dave just falls into the basket right but that's okay still make the decision that's called leadership I'm sorry are you facing this [Music] leaders are not born it's a decision a great leader has integrity a great leader is a servant a great leader is visionary they're passionate they're loyal they're influential for discipline if you want to be a great leader that should be you you can't sit back and watch everything happen and call yourself a leader if you're walking and standing with the right people you can get through anything every single human being is wired for meaning in their work it's your job as the leader to cast a vision it's game on the jobs we hope to make aren't gonna stick unless they're jobs that people want real leadership is about solving problems not as parking what I want you to do is to have the courage to live for that dream because that dream is not just a dream it is an absolute reality you gotta own it inside I believe in you I know you can do this our high health care costs getting you down are you confused trying to navigate the health insurance world do you wish you could find an affordable biblical solution to your healthcare costs based on New Testament principles Christian health care ministries are CHM helps christian families churches and businesses join together as the body of Christ to share their major health care costs as a CHM member you can go to any doctor or hospital you prefer you aren't bound by an approved healthcare provider list and all treatment decisions are made between you and your doctors no treatment approvals are ever part of the CHM experience for tens of thousands of Christians CHM is a trustee affordable and biblical health care solution and it can be the solution for you as well visit us online or call today to learn more about how we can serve your family church or business Christian health care ministries one eight hundred seven nine one six two two five CH ministries dot org all right I'm here with a great family from Wisconsin to ask them about their frugal weekend plans what were some plans you got we came down here to see Dave on Friday and go to the workshop tomorrow oh yes we've got the Ramsey start right workshop happening right here we're gonna have 400 teens and their parents walking them through some great ways to prep financially for their future it's gonna be a good time and here's what I want to know from the YouTube audience now what are your frugal weekend plans I got to say you guys did it right this is the best way to hang out we're gonna have Anthony O'Neill Dave Ramsey Chris Hogan Rachael Cruz a lot of people and we're gonna do some learning and it's a great deal I got the same so let us know in the YouTube chat where your frugal weekend plans are and I'll read some of my favorite responses in the next segment [Music] [Music] you know when you're a debt it feels like you have a weight on your shoulders on your back around your neck on top of your head you don't even realize it's there because you get used to carrying it the way you know that the weight is gone of course is when the debt is gone and you're like wow I feel like I lost 300 pounds it changes everything right some of you listening right now are really desperate because you don't think there's a way out debt collectors are hunting you down balances that never shrink you're out of control we're spending just kind of feel overwhelmed and hopeless I've been there I know I know how it feels it's it hurts it's a it's a pain if you're there right now you're in the pit here's what you need to hear there is a way out there is hope you need to get serious with the only person who can turn this thing around you a person in your mirror you do need a plan you need someone to hold you accountable and someone to encourage you you need a new peer group you don't want to hang out with broke people they're telling you to do broke people's stuff because you're gonna be broke people when you do that you need a new peer group you need the encouragement the lift you get all of that and far more when you go to Financial Peace University we've taught nearly 6 million people not only how to get out of debt but get out of debt so that you can build wealth so that you can be outrageously generous so that you can change your family tree you don't just get out of debt or getting out of debt so that it affects your marriage helps you win in every aspect of your life it changes your parenting even there is hope you can get out of this mess you can turn things around if you want to learn more about Financial Peace University just go to Dave Ramsey com click on FPU there or call the ramsey concierge team they'll help you out triple 822 nice triple eight two two seven three two two three so my team was making fun of me at the break about crying over my pug it's a worst story than that so I bought this pug for the kids it was a Christmas present so it was a Christmas pup named Angel and I love Bulldogs of all kinds anyway and so this little dog captured all of our hearts my little boy at the time was like six years old and it was like his buddy and he's swapping spit with this thing it sleeps sleeps in his bed I mean this is like the family animal right about eight months old its back legs quit working right starts dragging its back legs around so we go the dock and the dock goes got spinal bifida we spend $2,500 you got a 10% chance that this dog will walk again it's hurting right now it's going to continue to hurt the rest of its life and I'm like we can't do that that doesn't that's not so I go home and cry because I know I've got what I got to do because I'm not spending $2,500 on this dog number one number two it's not fair to the little dog it's hurting and I'm not gonna be selfish and I'm even not going to be selfish in the name of my little six-year-old little boy who's gonna have his little heart broken and so you know we make the decision that this is what's got to happen so we call the breeder up the Soltis and the breeder is just horrified and gave us another dog which was very nice and so what took my little boy over my kids and we picked out the new he got to pick out the new dog and he got to name the new dog because angel was going to heaven so he names the pug heaven so I have a pug for 12 years named heaven so I'm out in the yard yelling heaven the neighbors think I'm Pentecostal or something right you can't make this up I'm telling you so he grew up and was okay but I end up with a dog named heaven okay so well there you but that's what happens when you have a big heart and you cry over animals and you love your animals and that's the whole story oh my gosh but you know it's just leadership you have to sometimes that you have to be the daddy right sometimes you have to be the mommy and when you've you know the little animals you cannot make an animal suffer because you're so selfish and you're gonna spend or you can't make your kid not be able to go to college because you spent $10,000 on chemo for the German Shepherd I mean and people do this stuff and I understand it's because you love your animals but guys there's a point that you violate common sense and wisdom here and if you say I don't love animals then you did not listen to this you didn't understand I get it it's some of the most easy things to be completely illogical over completely unwise over but you got to be grownups we're not a bunch of children and we have to make wise decisions that are good for the animals and good for the people that are involved and you know and based on where you are now if you're a billionaire and you want to spend $10,000 on your dog okay I don't care you've got the money as long as you're not leaving the dog in pain because you're selfish but if it really fixes the dog and you can spend ten grand on and you're a billionaire sure that's fine if you want to do that that's okay you got to decide what you're gonna do though and it's just hard admittedly it's hard it's a difficult subject and that's why it activates so much hate from those of you who operate on an emotional level of four-year-old so because you cannot process this these decisions and without you know turning it into hate towards me so oh well there you go open phones a triple eight eight two five five two two five Adam is with us Adam is in Illinois hi Adam welcome to the Dave Ramsey show hi Dave thanks for taking my call all you do today better than I deserve what's up hey I've got a question I'm 29 years old been married Josiah six years been listening to you for a year now and wasn't until the new year that I finally decided my wife and I finally decided no we're going to really get on this on these baby steps and tackle our debt situation we've got a fisheye at fifty three thousand in student combined between student loans car loans personal loan and what we've decided to do is allocate all of my salary into paying off the mortgage and and our debts and then what she makes covers you know our gas or utilities our clothes food etc with that said we've got about an extra three hundred dollars a month on my side to pay for all of our debts and I want to know if it'd be better to put that into the debt snowball we're on baby step two or with with the rates of interest rates the way they are right now if it'd be better to refinance from a third year into a 15-year mortgage okay well to start with the plan you're using is different than our plan and what I would what I would teach you to do is not what you're doing I would teach you to combine your incomes and you have one income figure that is the combination of the two of you at the top of the patch and ER and I wouldn't separate them out and say you're paying this and you're paying that I would run this together combined incomes and then it's not it may end up being that a port you know what the equivalent of her salaries going to that is equivalent your sorries going to this it may end up being that but what I would do is just pay the household bills out of that combined income and any money we can squeeze out of the budget and baby step two I would list all of my debts smallest to largest and I would attack them in that order and squeeze every dollar out the way you're doing it you're losing some efficiencies okay maybe I said maybe I just wasn't clear enough we all I heard you loud and clear I know exactly what you said no I guess what I was trying to say is we do have we have two checking accounts for both they're both joint checking yeah we both have access but I would not allocate someone's salary to one thing in someone's salary to something else I would not do that okay I would have put them all in one thing and I would out of that I would make the decision to work the debt snowball straight down through there I would not bother with refinancing your mortgage right now unless you have a mortgage in excess of 6 percent in your situation I think you need to attack these debts instead right now to answer your original question ok thank you for the call we appreciate you joining us thanks to James childs and Kelly Daniel in the booth I'm Dave Ramsey your host and we'll be back [Music] [Music] if you're looking for some ways to save some serious cash you can cut expenses by cutting the cord on long term contracts and big monthly bills when you switch your cell phone service to pure talk us a pure talk USA's voice and data services covers 99% of Americans with their 4G LTE network providing the fastest internet speeds like the more expensive carriers plus pure talk operates on the largest gsm network in the u.s. to ensure you receive reliable coverage virtually anytime anywhere at get this half the price of the other brands and you never have to worry about contracts activation fees or data overage fees you can try pure talk USA risk-free today at pure talk us a.com and enter the promo code Dave to receive 50% off your first month [Music] [Music] many times people feel that it's unbelievable that you can have a very average income and not only get out of debt but become a millionaire when my husband and I started we were making somewhere between 40 to 50 K for the majority of paying off our house but you start looking at money as a tool that you use and not part of your story and it's not me it's an asset that the Lord has given me to use being able to give is the very best part of having wealth [Music] first off paws is a no kill animal adoption center it's just north of here in Monroe Ohio and I have been a volunteer with paws probably for 25 years now it has bothered me that there was a mortgage on the shelter again I'm very afraid of mortgages and debt haven't come close to homelessness in nine months my husband and I have paid off four hundred and fifty thousand dollars so that pause has no mortgage people are pricing what's your income I don't even have an income where all this money came from is the stock market there's again there's been a big run up in the stock market in the last nine months my net worth has has come up eight hundred and eighty thousand dollars I've given away four hundred fifty K so the paws had no debt the rest of it you know Here I am I'm giving money away and I'm richer than I've ever been I'm not afraid of homelessness anymore but I know other people are and so some of the ministries that we want to support are some of the local ministries that support the homeless in Cincinnati such as the broken bus ministry but we have plans to help other ministries in a big way just the way that we've made the impact on us [Music] for anybody who want thinks they want to become a millionaire but it looks so far off what I would tell them is concentrate on getting out of debts because you can never be wealthy if you're in bondage and that's basically what it is but that the truth is if you work hard enough to get out of debt you have the skills that will make you a millionaire [Music] from start to finish it took my husband and I about the seven seven and a half years I have a friend who was a single mom she did it in ten years it really doesn't matter how long it takes once you get out of debt you will evolve into a millionaire because now you have millionaire knowledge and you have millionaire habits you can't help it you will become a millionaire [Music] hello everyone I've got a question for you do you know your net worth you see there's a lot of confusion out there about net worth I mean people think only celebrities have a net worth that's not the case everyone has one but what we have to do is understand how to do this well here's what you do net worth is defined by taking what you own - what you own and that gives you your net worth you see understanding this is crucial to you beginning your journey to becoming an everyday millionaire we've got to know the start point but we also have to have a game plan that's why we develop the network calculator it's six easy questions tailored to help you to understand where you are and to know your network you can do this and I'm here to help all you have to do is enter your email address to get started all right we're kicking off our three with your responses to the YouTube question of the day what are your frugal weekend plans Kay Weaver said I'm doing yard work and cleaning out the chicken coop Jackie said free movies on the lawn at the mall and free pizza at the library man you found all the goodies there strap coconut said getting paid to be a mystery shopper that's brilliant Jonathan said my frugal weekend is working three 12s that sounds like a lot of hard work way to go Jeremy said go metal detecting man you all have some interesting hobbies Joy said staying home and doing taxes for people so I can make extra money to pay my debt hewan said fixing the old outie so I can start my side hustle delivering pizzas y'all are really productive Johnny's making crepes for Saturday morning breakfast instead of going out for breakfast that's awesome I'll be there jason said do some hill sprints for my Spartan training for November Chelsea said new homeowner orientation brunch free food and meeting our neighbors and this is my favorite auto pilot said chillin and watching Dave Ramsey YouTube videos that one's always free folks way to go y'all really really productive the total debt is around six hundred and forty thousand dollars the credit cards that he doesn't know about any probably paying student loans for the rest of my life I just don't even know where to begin okay we're not scared welcome the day branches you are not a pig you are the hero in your story you can be intentional about your character you can have money and a career everything just started making sense I look like I'm gonna do this let's hear a debt free scream [Music] live from the headquarters of Ramsey solutions broadcasting from the dollar car rental studios that's the Dave Ramsey show where dead is dumb cash is king and the paid off Home Mortgage has taken the place of the BMW has the status symbol of choice I'm Dave Ramsey your host thanks for joining us open phones at Triple Eight eight two five five two two five that's triple eight eight two five five two two five alright up next is going to be starting off this hour that is is Elijah in Tennessee hey Elijah how are you hey Dave thanks for taking my call big-time saying thank you how can I help yes sir so I'm calling in regards to a younger sibling in mind she lives out of state and she is in a financial disaster last year's been pretty tough for both of us we lost our dad kind of unexpectedly and then kind of after that she went through a divorce and it's really kind of just flailing out of control and my wife and I both have great jobs where we'll be almost entirely debt-free in the next few months and we're trying to be a good example for her but she stonewalled us really won't give us any kind of way to help her out or kind of give her guidance and in the meantime she's kind of taken advantage of my mom and other people that live around her and just become like kind of like a vortex and and you know the take advantage then for whatever reason so I'm just trying to find out a way you know how can I get through to her and really you know help her out here really show her you know this is not healthy path her and and kind of rise above all of that where's she live this is in Kansas how front of you up there at least a couple times a year well it sounds like that her out of control craziness is being financed so why would she have a reason to stop it yes I've talked to my mom about that you know to introduce her to the the word that you say no all the time and to really stop enabling her so I've gone through to my mom but in terms of other people I think there coming around to you and I think she's kind of used this emotional distress as a way to well yeah it's very real to her she's hurting and everyone should help her that's her way her mind is working it's very real to her because she is hurting just how she's reacting to the pain that's the question right right I know she makes great money watching what's great money what's she mad for her first she's you know for her her case she probably makes around 60 to 70 a year and she's a very low cost yes and he has low cost I'll just - okay all right well you know the problem is you cannot crazy and stupid or not illegal and so you cannot make people do stuff and it's just it's and I think one of the most painful things as an adult is to watch adult people that you love do things and you can't stop them from doing it like you're grown kids are in stupid zone or you're you know your brother or your sister in your cases in the stupid zone and it's just painful to watch them because you can't stop them and so one of the things that happens though is sometimes you use your brother voice on her rather than your friend voice and so I've discovered in the few times that it does work and it doesn't often work because she really does not want your advice that's correct very much yeah and so you know there's not any you know those my grandmother used to say those convinced against their will or of the same opinion still that's why arguing with me on the air is a short call because I'm not here to argue with you I already know what the correct path is it's what I do it's all I do I can't help you with brain surgery but I can help you with your money and so I'm not gonna argue with you here on the air about it cuz I'm right and you're wrong so I'll just move on okay so my grandmother used to say those convinced against their will are of the same opinion still so I don't spend a lot of my energy my personal life or here on the air trying to talk people into doing stuff that don't want to do stuff people that have kind of wanna they need help and what help I'll help you all day but I'm not gonna just walk up into you and go that's stupid a friend of mine leased a car the other day and he brought it over to my house to show it to me now that was an interesting transaction you know cuz obviously I tell people leasing cars is stupid he knows that and so what was what was what am I supposed to do well I just said I love your new car it's awesome he really wasn't asking my opinion about leasing a car he'd already decided what he was gonna do he was gonna be stupid and so I'm just gonna you got you a nice car I'm happy for you good luck with that you know hope it works out it's not going to but I hope it works out inside it this is what's in my inner head right so my point of all of this is that the only times I have had if I remember that I don't have any family connection if I act like with family members I don't have family connection and I treat them like a an acquaintance that I need to convince that keeps me from using my dad voice or my brother voice or my whatever voice right my family voice instead I'm like I'm sitting down going sweet girl you just can't do this you know I mean this is not and and and if you if you don't come off like our brother but instead one of her buddies that you're sitting with and someone that she cares about in respects but but and you just go I'm concerned about you I love you and this is not working for you and you know I've convinced mom to not let you drain her dry and you've really need to address this I know you're scared I know you're out of control I know you're flailing I can watch you do it and it hurts me to watch you do it how can I help you because I think I could show you some of this stuff but I know you don't want to listen to me and how can I you know and you just but but it's really difficult it's really difficult because she's what it is is she's hurting from all that she's been through and the different things and she's just not thinking and she doesn't want anybody to address the fact that she's not thinking and I it's she may have to get in some pain before she's ready for some help some financial pain yeah that's kind of what my mom and I had said that that's really going to be the ruler waiting for yeah the 12-steppers say when you've got like an addiction problem I behave missed behavior that you have to hit bottom before you listen that's what the 12-steppers say and that's kind of the same thing now you can and there's a high bottom and a low bottom I mean you can hit bottom by just going I'm just disgusted or you could lose everything your job your family everything before you hit bottom and that's like a real low bottom right and so but you can just boredom Esther's you have to come to yourself remember the story of the of the prodigal son you know he took all the money blew all the money and he's laying in a pig pen right and the Bible says he came to himself like he at bottom he realized hey this ain't working you know I need to change something and they have to come people have to come to that usually before they listen I wish I could give you like the perfect little formula that you could just go over and sit down go this dude a these say these three things and she will magically grow a brain but she's not going to you know it's just she's hurting it's just and just love her right where she is and you know any you know what I would do is I just lay out an offer and just go when you're ready I'm here when you are ready for some help when you're ready to get control when you're ready to be a grown up I can show you how I'm here I'd love a fly up there and sit down and help you do your budget when you're ready I'm here that's it that's the minimum you need to do hey thanks for caring about your sister this is the Dave Ramsey show [Music] [Music] [Music] I'm John this is Kimberly we're from Rockford Michigan which is just about 15 minutes north of Grand Rapids and I work for consumers energy which is a electric utility and we have four beautiful kids and I stay home and homeschool the kids and keep the little ones out of trouble when we got married we both had student loans from Cornerstone and we had the ring on credit he saw the truck payments to loans were okay we thought but we shouldn't have any other debt so we decided to buy a house because why not you know you're broke and everyone tells you you don't throw money at rent so we did with zero down that's how we started out marriage with like 40 grand and student loan and consumer that and a mortgage that we had no idea she got pregnant about nine months into her marriage so that it wasn't a hundred percent plan so that was beginning of the wake up call for me we got the Total Money Makeover book I think we have the book from the library cheap at that time and we read it we were hooked so having financial peace and learning that and reading the book and just learning Dave's tips and the right way of handling money we talked to over it says hey if we really buckle down there's there's a small chance we could pay these debts off this year one of the things that makes the Dave Ramsey show unique from other shows is that we genuinely care about our listeners that's why we're intentional about choosing advertisers that we know will serve our listeners well blinds.com is no exception for years I've been telling you how amazing these guys are blinds.com offers high quality window treatments at unbelievable prices and their customer service is unbeatable they make buying measuring and installing blinds fun affordable and shockingly easy and if you accidentally miss measure or pick the wrong color they'll remake your blinds for free when you're looking for window blinds the only place you need to go is blinds calm with blinds calm you get free samples free shipping and when you use the promo code Ramsey you'll save even more take advantage of this week's special promotional offer when you go to blinds.com and use the promo code Ramsey [Music] hey guys I'm here with Rick and Caleta from Indianapolis what brings you to Nashville Tennessee this weekend we are here for a show choir competition with our daughter over at the Opryland Hotel she's competing against the other couples kids that we talked to earlier yes we are this is juicy this is juicy so tell me about your journey where are you guys on the baby steps we are on baby step number three we are saving right now yeah just pay off some debt we did December of last year we paid off all of our debt except of our home wow that's incredible now did you help that's awesome so did she get you on board with this whole plan she did she listens to Dave every morning she gets up for work earlier than I do so she was playing his videos and it kind of got into my subconscious the trick if you're watching out there like how do I get my spouse on board just play the videos it'll get into their subconscious and then you'll become debt free like Rick and Caleta thank you all for being here [Music] [Music] [Applause] [Music] picture for a second that you're riding a bicycle up a hill I grew up in Tennessee in our neighborhood there was a hill you had to go up to go to cut and go to college to code go to school if you're riding your bike to school when in college is elementary school and little bitty weak legs and you can't get your bike up the hill what do you do well you could walk it upright but in Tennessee you learn to do switchbacks you go back and forth back and forth back and forth back and forth and you gradually work your way up the hill and you keep the bike moving and it's like hustle and grind hustle and grind hustle grind now I'm not really talking about bikes I'm talking about money with your investments it's the same way you go back and forth back and forth back and forth you keep putting money in you keep pumping you keep pedaling you keep up you don't get out you don't quit and all of a sudden when you get to the top of the hill with your investments we call that the pinnacle point and that's when you put your feet up on the handlebars and you can hear the baseball cards and the spokes of your bike and I had those little streamers your mother's little streamers and in the handlebars and you're riding downhill and the head the wind is blowing through your hair that's back when I had hair so the pinnacle point is you've worked and worked and worked and worked and worked and now you get to take the ride back down the hill or down the hill the other direction that's when your investments are big enough that they are making more money than you make when you have a lump-sum nest egg so large that it creates more money annually as a return then you create at your job that's the pinnacle point now for some of you that could be several million dollars for some of you it could be a million dollars for some of you it could be less but that's when your money is making you more money than you are making you now that's a nice goal that's a good one to reach for the pinnacle point look for that one if you need some help figuring all this stuff out we know that the typical millionaire in America based on the largest study of millionaires ever done that we did the typical millionaire uses an investment professional they sit down with someone not to make their decisions for them but to give them options and teach them with the heart of a teacher and that's why we have group a group of folks we recommend they don't work for us they pay us endorsement fees we endorse them they're called smart Wester pros and you click smart vest at Dave Ramsey comm it'll drop down a fill in your information will drop down a list of the smart mister pros in your area and you can pick out the one that you want to work with and sit down and they should have the heart of a teacher and that you know you're aligned with them on value system and that kind of thing and you're ready to go that changes everything you guys you need to do that so my producer James sent me this article today that is really disturbing it's in The Wall Street Journal dealerships give car buyers advice stop paying your loan and just buy a car and repo your current car now that's such a dumb idea that I can't believe that people are actually doing it but they are apparently the trade-in is where the bike this is from The Wall Street Journal where a buyer hands a car back to the dealership and uses it as credit towards another one is often a crucial step in car buying but some dealerships are instead telling buyers to give their old cars back to the lender a voluntary repossession and then sell them a new car in a practice known as kicking the trade I've never heard that phrase kicking the trade it's difficult to estimate how much how often this happens auto sales veterans say the practice is an open secret in some showrooms broadly vehicles are getting more expensive and Americans are struggling to afford them dealerships now make more money arranging financing than selling vehicles which has been true for 25 years if the car loan goes bad it typically isn't the dealership that's on the hook it is the borrower and the lender consumer lawyers say they have seen more of such cases five years ago it happened two or three times a year says Daniel blend a connecticut based attorney who has sued dealerships and auto dealers now we're hearing about it once a month [Music] not twice a year problems often begin when the consumers who buy cars they can't afford or sign loans they don't understand dealerships compound the trouble so here's the deal in other words these unethical dealerships are suggesting to someone well we really don't want to take your trade-in I just quit paying the payments on it call your lender and tell them to come get it that's a repossession it's a voluntary repossession now if they don't want take your trade-in it's because you're upside-down the car meaning you owe more on it than it's worth okay so you owe $22,000 on a car that's worth 17 your $5,000 in the hole that would be a normal transaction and this unethical dealership suggest to you that instead of covering the $5,000 the $22,000 that you owe or the $5,000 that you're short were you to trade it in or sell it instead of doing that just don't pay the payments anymore and get repo'd well obviously there's a moral component you didn't you signed a piece of paper that said you were gonna pay car payments and you didn't pay them that's a moral component there's a legal component you're gonna get your butts sued there's a credit component and that is you've destroyed your credit of course they sell you a car before the repo actually occurs and before your credit drops and so this is someone often times that could be current on their car and instead of just working a traditional trade-in maybe going further in the hole which would be a bad deal too but instead of doing that they do a voluntary repossession well let me tell you what happens when you owe twenty two thousand dollars on a car worth 17 and you get it repo'd they don't sell the car for 17 you can't get retail or private sale for a car at a repo lot they auction at a repo auction so what is the $17,000 car bring in a repo auction hmm eight or ten thousand bucks okay so instead of now owing $5,000 difference when they come after you for the difference because they will sue you for the deficit the deficit is now twelve fourteen thousand bucks instead of five thousand bucks and you destroyed your credit also you could get another car Wow really stupid on your part unbelievably crooked unethical horrible get sued for it by the dealerships so this is what happens when things get out of control of course anytime someone's writing an article police like The Wall Street Journal they say well cars are so expensive people can't afford them not really new cars are so expensive that you can't afford them if you're a broke person which has always been the case by the way broke people have never been able to afford things they're broke people when I was broke people I couldn't afford a new car I've been broke people I know what broke people looks like you can't afford the dadgum car what's happened in the u.s. is not the cars have gone up so much the people can't afford a nice car what's happened is is that we've raised a whole generation or three of children who refused to grow up and refuse to tell themselves no and so they go buy cars they can't afford and then when I want another car and someone says I still can't afford it and in a matter of fact I don't even want your trade-in we think meaning EE and you throw a fit like a little baby child on the cereal aisle who's spoiled rotten and can't get a box of cereal like you're freaking four years old you're red-faced and you have your little fists balled up and you stomp your little foot and I'm entitled to a new car because I breathe air and I'm an American you're not entitled to nothing you're broke you're entitled what you've saved up the money and got the money for that's all you're entitled to driving a new car is not a human right that's dumber than crap and people act like it is real Americans just can't afford a new car Americans they've never been able afford a new car except the ones that had money and all we've done is finance people into stuff that they can't afford the average car payment America right now according to Experian is 554 dollars over 84 months that's the average car payment in America today which some of you are sitting on 700 our car payments you feel like superior right now no you ought to feel more Tom more stupid than the 554 if you think you're superior because you got 354 no you're still stupid you have a car payment get rid of the car payment pay cash for things that way you'll have some money it's just really not rocket science you guys don't want some crooked dealership talk you into voluntary repo oh my goodness this is the Dave Ramsey show [Music] this is our debt payoff that we used when we we add this on our fridge there are no secrets you came over you knew what we were doing and we just stayed motivated by each time we made a payment we would just write the lower arm out and it just kept us motivated to see how little we had left I felt because I'm really frugal I'm the one really making sacrifices to keep our you know groceries down or our eating out down so if I wanted to spend something outside a budget but then John was like no no like we need this so we had numerous fights because it wasn't easy like it definitely was a lot of hours I got a piece of delivery job at Papa John's start working weekends and nights and about a month or so into the pizza delivery experience I got t-boned at an intersection and it was kind of that test like are we gonna keep going are we gonna give up so we drove he just did minimal repairs and kept driving the truck it was definitely a crazy time in our marriage but I think since we were working so hard when we did have time as a family we really made it count a year and a half later we called you we had paid off all our consumer debt in October 2007 Wow so after that point we bought oak street it's within a state property it had you know what Dave Ramsey says the shag carpet and terrible paint and whatnot and thankfully we could just buy painting changing carpet get insanity so a couple weeks of hard work and it was a lot better I just remember that being like okay a fresh start another turning point in our life where we can say do different from now on so we started buckling down trying to pay that off we have $85,000 mortgage we wanted to go very conservative because two years later less than two years later July 2013 we were able to pay off our house was a big win for us to experience the trials of trying to accomplish this but yeah sticking it out together and being patient with each other and loving each other through the processes it is it's not a sprint it's a marathon that is very fun you're making 75 80 thousand dollars a year don't have a payment in the world if 33 years old I'd say this has worked out I feel like I grew in respect for him because he was really taking care of our family he was willing to deliver pizzas or worked 50 hours a week when he could be hunting and doing different things she's a great homemaker a very thrifty very organized and the real encouragement to me to work hard and well we're on the same page we kill it you're more likely to build wealth with an encouraging supportive communicative spouse where you're communicating working together then you are any other way and it's great for our children to see like our kids saw sacrifice they saw us pay off our house the more you focus and follow this plan or it will win because well there's been times where we did not follow the plan we lost hope we got a little loose we didn't follow the budget and we paid the price but when we stuck to the plan it worked just remain hopeful this isn't a sprint it's a marathon if you can hold a hold and follow the plan and just be faithful your man I'm Way ahead of what you thought you were gonna be John and Kimberly from Grand Rapids Michigan count it down let's hear a debt-free scream three two [Music] our high health care costs getting you down are you confused trying to navigate the health insurance world do you wish you could find an affordable biblical solution to your healthcare costs based on New Testament principles Christian health care ministries are CHM helps Christian families churches and businesses join together as the body of Christ to share their major health care costs as a CHM member you can go to any doctor or hospital you prefer you aren't bound by an approved health care provider list and all treatment decisions are made between you and your doctor no treatment approvals are ever part of the CHM experience for tens of thousands of Christians CHM is a trustee affordable and biblical health care solution and it can be the solution for you as well visit us online or call today to learn more about how we can serve your family church or business Christian health care ministries one eight hundred seven nine one six two two five CH ministries dot org hey guys I'm here with Alicia and Ashley and I'm here to talk about Financial Peace University now I understand that you're helping lead a class right now at your house yes we are yes my husband's leading it and we've got a three couples so it's fantastic now are you going to take Financial Peace University I am as it frightening are you gonna gift our membership we absolutely are I feel like I'm really doing some magic here this is amazing now this is the plan to take control of your money get out of debt build wealth nearly six million people have done it this stuff works I'm telling you go check it out get all the details get connected to a class or do it all online I don't care just do it go to Dave Ramsey comm slash FPU to get started [Music] [Music] stormy is with us in South Carolina welcome to the Dave Ramsey show stormy hey Dave it's an honor to talk to you you too what's up so I was hoping that you could settle a dispute between me and my husband we started at to you a couple weeks ago so really you know just now about a month into our budget I've been listening to you for a few months and finally got him on the bandwagon so we're trying to go and now I kind of feel like he might be a little bit more headstrong about this than I am so to make a long story short we have a son and I we ended up winning a lottery drawing at the White House for the Easter Egg Roll which is the day after Easter and so my fault was that before I started your program I used to have a separate loss they'll have a separate account that money went into every month to save for Christmas essentially it was just a Christmas account and so when we started your program it's got basically the amount that we need for the trip and so I told him that I felt like this was a once-in-a-lifetime opportunity and that you know maybe we should take the money out of that account and go on the trip and then use and budget now add to our budget for Christmas and he thinks that no we need to keep on our baby steps and keep going and so I feel like I agree with Joan but I also feel like this is kind of a once-in-a-lifetime thing and I just don't know what to do what is an Easter egg roll we got invited to the White House with our sign and shot he's seven okay and so he'll go and roll the Easter egg on the White House lawn and I think it's like kind of like a race I think to see who rolls their Easter eggs but it's just an opportunity okay and so obviously I wanted to do lots of educational stuff while we were there and so I found flights and hotel for a thousand dollars today and so I was in and I budgeted maybe enough thousand for food and transportation and museums which is just about the amount of having their for Christmas for next year how you gonna pay for Christmas budget it the rest of the year okay so two grand yeah household incomes what two hundred little over well there's a zero mathematical impact right in ratio to your income it's more the emotional thing of and the relational thing of you know it's slippery slope once you get off the baby steps and once you decide you're going to just start doing Remzi ish right then then you're gonna you know where you going to go from there so [Music] what Sharon and I probably would do in this situation back in the day we weren't making 200k when we were trying to do this stuff but would be we would say if we're going to do this we have to cut something else that we weren't going to cut like this is gonna be a lot of our Christmas we're just gonna do it at Easter right so Christmas is gonna it's not it's not gonna not happen but it's gonna this is Christmas present right so you know I'll get a big Christmas present you're gonna get a small Christmas present or something like that something else we had because we had to learn that we can't just do everything we want to do because you can rationalize the crap out of anything right you know and part of what you're saying is accurate yeah it's a once in a lifetime thing but part of it is so what you know it doesn't really change your kid's life you know he probably may not even remember it you know you will and and it is a you know not not many people get to do this that's a funny thing but you know how many of us never saw all I mean I got a friend of Mines ago in the New York City next week's first time he's ever seen New York City he's 40 years old so he lived through it he didn't need counseling because of that you know so right you know your kid's gonna be okay is the point it's just like that's kind of a nice thing 200 grand two grand out of 200 grands not that big a deal it's really not but you really need to somehow we had to stop ourselves from just buying crap you know and so you gotta somehow it's so good that you two are arguing about it in other words yeah I wanted to say thank you because we did not communicate before the fact that this period in fact this irrelevant amount of the fact that the serial of an amount of money out of 200k is causing you guys stress is really good because that means you're dealing with the people in your mirrors you know what I'm saying and so I wouldn't not do the deal because a 2 grand out of 200k it's doesn't that's fine it's not going to keep you from hitting your financial goals okay it's not like it's not like you make $20,000 a year and you're spending $10,000 to go on a cruise okay I would just tell you you're insane and don't do that okay but this is a small and it's like most people buying a biscuit right I mean it doesn't even show up but what you do need to deal with it is all the different things that makes you able to do this emotionally and you need to deal with the conflict and that you know and that if you got all of that if you get what you're supposed to get out of this discussion then I probably would go but if you're just like well I just want to go and I'm going then I go well you that you're destined for financial hell then right because you're gonna you're gonna rationalize yourself into everything for the rest of your life and you're never going to break the curse off your family right you know that kind of thing you see what I'm saying so the emotional part of this and the the the the arguing with yourself part of this and arguing with your husband part of this is the value here that's where the value is it's not the money so if you can get the value out of this conflict and I probably would go okay illogical to you understand I'm saying yeah very cool I thank you for calling it's a good discussion open phones at Triple Eight eight two five five two two five it's like we might guys you know I've got a social media team and I don't hang out on Twitter anymore it's just full of trolls I look at my Instagram I glanced at Twitter occasionally I look at Instagram I got two million people on Instagram I see what we're putting I put some stuff on Instagram like I used to tweet every day I used to be on Twitter back when Twitter was cool but Twitter's just not cool anymore it's just full of trolls and so I don't fool with anymore but we tweeted the other day and posted I think on Instagram to something I say all the time you shouldn't see the inside of a restaurant if you're getting out of debt you shouldn't see the inside of a restaurant unless you're working there well somehow that got on some kind of crazy but liberal threads somewhere and all these left-winger dinners are hammering me for three days about how I hate poor people because it's the only joy that they have is going out to eat and so Dave hates poor people well you dumb butts that what even what we were talking about we're talking about if you're gonna pay a price you have to change and you can't go out to eat all the time you can't go on vacation while you're getting out of debt you can't go out to eat all the time while you're in getting out of debt this one of life's little pleasures it was like it was a human right and I took it away from him the whining of the snow plate snowflakes was astronomical I mean it was like a blizzard of snowflakes it was crazy because I cuz I dared say don't go out to dinner and spend money in a restaurant while you're getting out of debt you should get out of debt because that's what got you into debt doofus there's all this stuff right so again on and on and on and on and on now are you going to hell if you go out to dinner no but if you really think that going out to eat is a human right you're gonna struggle financially because you're stupid you really are gonna struggle going out to eat is called a luxury you doofus it's a luxury going on vacation as a luxury that's what stormy is arguing with herself about and her husband about it's a really healthy good argument do we do this luxury while we're trying to get out of debt that's her question and generally the answer would be no because you're trying to get out of debt generally that's your answer you could just go ahead and tell yourself no because when you learn to tell yourself no later you get to tell yourself yes and you get to tell other people yes called outrageous generosity [Music] hey folks I'm Ken Coleman let me ask you a question do you dread going into work on Mondays you're not alone a recent Gallup poll found that nearly 70% of Americans hate their jobs life is way too short to walk through the week like a zombie we all want to live a life of meaning and I'm here to help you are dreaming you can see it you can taste it and you're frustrated what do you want to do 10 years from now where do you wanna be I guess that's really a big fear of failure getting that job it's a simple dude because you're not where you want to be you're not who you want America's predict experts all the career on getting a job on finding your passion I intend to start my own business and I'm just looking for someone to kill me and I'm not crazy about on the surface Donna that makes me excited not concerned you're living for the weekend right now yeah we got to fix that [Music] the response to the podcast the response to the Sirius XM show the response when he does talks around America is absolutely over-the-top find out what you're good at find out what you'll have to do most because the world needs you to do it somebody out there needs you to be you I was not where I needed to be you became my coach and your colors became my coach getting very very close to my sweet spot it is a journey it's not a sprint it's a marathon I went in for the interview and they offered me the job there on the spot they set it up they figured out what you didn't believe about yourself every [Music] people call my show all the time complaining about how awful their timeshares are I've been saying this for years don't do it what's going on out there that's content letting allowing this industry to just continue David's greed and honestly this isn't gonna change until the industry decides to recognize that they have a customer service nightmare because of a terrible product they're not taking care of their of their customers which is why we're flooded with calls every day times sure extra team is different I mean we we've now have you know almost twenty thousand people out of timeshare contracts actual results actual resolving deal yes if you need out timeshare exit team is the team the only team that I trust to help you schedule your free consultation by calling eight four four nine nine nine exit or timeshare exit team calm hey folks welcome back it is my last segment of the day I just wanted to thank you all so much for watching today on our video channel it was a really fun show I had a great time hope you did too we're gonna be back next week with some more live shows but I want to tell you if you're sad the show is almost over we've got plenty more where that came from we have an entire YouTube channel dedicated to highlights from the show the best day of rants you name it go search Dave Ramsey show highlights subscribe to that channel and enjoy some clips over the weekend [Music] [Music] our scripture today 1st Peter 4:10 as each has received a gift use it to serve one another as good stewards of God's very grace John F Kennedy said leadership and learning are indispensable to each other open phones a triple eight eight two five five two two five you jump in we'll talk about your life your money steven is with us in Indiana hi Steven how are you well I do that right Steven are you what I think I just messed it up all right I'm gonna put him on hold and then you guys figure this out open phones a triple eight eight two five five two two five let's try Heather in Idaho hi Heather how are you hi babe I'm grateful how are you doing better than I deserve what's up I'm one baby step two and we're trying to come in line with your plan and I have a rental that's not local I know all the red flags it's in a small military community and I want to sell it I have a property manager and he's a year-to-year contrast automatic renewal and they have a rancher there and obviously that you are not going to align so how do I fill it and gracefully exit out of this rental okay when is there a lease on the property with the renter yes when is it up in August or September and the property management lease is that in June okay well just let the property manager know that you're not going to renew and if they want to work for you month to month through August they can it's up to them but you can collect rent from June and you can collect July and August rent on your own right yeah okay so I just let them go and let the property manager know now the other thing that I what do you owe on the home so I own about ninety two thousand on the home and it's worth a hundred five good okay and then the other thing I would do is in a couple months I would start contacting endorsed local providers in that area and have some of them come review the property most of the time your lease gives you the right to inspect the property ever so often once a month or with certain amount of notice or whatever and so you're going to have your new real estate agent that's going to list the property inspect the property meaning they need meaning they need to go look at it and try to figure out okay like in June they need to start having a plan for putting it on the market when the tenant moves out in August or you could actually put it on the market a month early if it's in decent condition and start trying to sell it with a tenant in it knowing that they're gonna be moving in August so you can put it on the market in June or July you just can't you just can't give them new buyer possession until the tenant moves out right right the last thing you could do is the tenant might be willing to move if you gave them a little money and so I have done this in addition you what we just described is the minimum you can do what we just described without a doubt that's easy okay now if you want to get a little bit more aggressive which I don't know that you need to but if you want to you can I have on rental properties in the past years past when I wanted to sell them I would just go sit down with a tenant in your case it'd be a phone call with the tenant and say hey I'm gonna sell the property in August if you'd like to make a little money between now and August I'd like to pay you to do two things three things one keep the property really really clean to keep it really accessible so people can come look at it and the third thing is be willing to you and I to work out a deal where I write you a check if it sells to move early and break the lease and so you know like what's the rent on the property eighteen hundred okay so it might you don't need to do this but if you wanted to get more aggressive it would sound like hey I'll drop the rent to 750 and for fifty bucks you keep it clean and accessible to buyers and I'll agree to give you a thousand dollars to move early and I'll give you at least one month's notice to move okay and they could then you can break that breaks the lease and they can stay in it and pay you and stay there with 30 days notice until you sell it now that's if you really were pushing super hard to sell it okay that's the way to pull that all off however you know you're not you don't have to do any of that you could just take the money and put it on the market and just not close it and put on the market in June and just tell the real estate agent obviously we can't give possession until the tenant is gone whatever it is the first of august end of August whatever that is and you can just work that part out say that you know that makes you that way you're not in to pay the tenants something but you can work with a tenant if if they don't want to do any of that and they just say no we're staying until August and we don't want to discount and no we won't accept money for breaking the lease then you can't make them do it then you'd have to wait but a lot of times tenants like the extra money because they know they got to move anyway and so it's not it's not a bad deal for them at all hope that helps steven is with us Steven is in Indiana hi Steven how are you I'm great Dave how are you better than I deserve what's up hey I've got a car that I'm upside down in and now I need to make a repair I'm about to sell a house my question is do I just pay it off take the stupid tax and learn from the mistake okay the house you're selling is your home no I've moved already and seven houses we've got some equity and so I have five grand on the car it needs about $4,000 repair and I know what you say about you know the difference in that and so it's I really hate to take the scrap on it because that's so cheap is there something else I could do with the car well let's just say the car was paid for for a minute I wouldn't spend $4,000 on a $5,000 car right what's wrong with it the design the the radiator came apart it's an older car and then the coolant got into the transmission so it needs both of those and it's about four grand yeah that's fine that's bonny the rebuilt or new I'd put a used transmission from a salvage yard in it okay and then a rain and a rebuilt radiator instead of a new I'm still doing that though is it still worth it because the way you I keep thinking what you call it when you put more than the cars worth yeah you don't want to spend more on the car than it then Salvage plus the repair equals life Salvage plus the repair equals more than the value of the car after you're done you spent too much on it which would be the case here okay you're not spending four grand on this car there's no way okay so you can get the costs down to two grand and the car is worth a thousand the way it is then you you would spend the two grand on it to make it worth more than a thousand instead it's gonna be worth five thousand that's a good return on the two grand then I would fix the car and pay it off and then of course I'd pay it off and that's pay the repairs what I'm trying to say right and if the masses have worked out that way it don't have this four thousand sell it for salvage and pay it off okay if the if the repair can get down to two thousand fix it and sell it or fix it and drive it whatever you want to do and pay it off got yeah that makes sense a lot to said thanks for what you do thank you sir appreciate you joining us open phones at triple eight eight two five five two two five one of the benefits it's probably the only benefit other than it's paid for you don't have car payments of driving a piece of crap car a hoopty is it's kind of they're kind of disposable if it breaks you just take it over the junkyard and sell it for 750 a thousand bucks right salvage yard I don't think we call them junkyards and they're moist politically incorrect but either way whatever you call them recycle bins I don't know what you call them they might junkyards what we call them on your kid right and so yeah if you're driving a $2,000 car and it needs a two thousand dollar repair you don't fix this car you just go sell it you go get you another $2,000 car that's the only benefit of driving a hoopty now we don't drive coupe these very long we drive like no one else so later we can drive like no one else that's the whole point of this that puts this our the de Ramsey Show in the books thanks to James childs our producer Kelly Daniel our Associate Producer and phone screener I am Dave Ramsey your host we'll be back before you know it in the meantime remember there's ultimately only one way to financial peace and that's to walk daily with the Prince of Peace Christ 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