Are You Tired of Being in Debt?

[Music] [Music] this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the 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 ken coleman ramsey personality host of the ken coleman show is my co-host today as we talk about your life and your money open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five ken on the ken coleman show talks about careers and jobs and getting in the position that you want every year or that you want for the rest of your life that is show they said you talked about it on your percent of the workforce in america is looked of the workforce in america is looking to change jobs this year so here we are as we are approaching you know halfway through and they're going hey i'm going to make a move so you're going to see this in 2021 and 2022 a lot of people changing jobs you talk about 25 is the low end of the survey 40 percent that's an extraordinary number of people who are saying you know what it's time to make a change certainly brought on by the pandemic giving you a philosophical reset and saying life's too short to work it's something i hate with people i hate that's right here's what happens so we know that change is one of the greatest concerns for any human being change is scary it has all this unknown and so change is really really ugly however when a forced change happens to you so let's take the pandemic and it was a massive change for people in largely uh i mean arguably the largest area of their life you think about time you spend at home with family friends sleeping you think about work that's the thing you spend most time on your life and so when there's a force change you didn't have any choice you were sent home either furloughed laid off or you were working from home so now all of a sudden you're confronting a change that you had no choice over and now you're dealing with that change and so then we begin to go oh wow this is huge what other parts of my life would i like to change and i think that's what has happened collectively people are going well i had to deal with this what would it look like if i actually worked in a place that i really love what if i did work that mattered deeply to me what would i have to do what if i change some things to be able to get qualified to make more money what if i paid off debt and i think you're seeing people are going you know what i think it's time i think it's time and i'm going to move here's what's interesting with this 40 of america workers are considering moving into something else so they're going to quit their current job and you got 9.3 million jobs dave that that are open right now and and so it is a good time is the point because companies are needing talent they want talent yeah but if you're one of these companies with no soul you can take advantage of people and no people aren't going to come no that's true to end up with a labor shortage well we already have that absolutely i mean you're going to end up not being able because these folks are what we're saying is is that because of the pandemic they said life's too short and that's what the surveys are indicating yeah um that that they're not going to go to work for a company where life's too short again that's true they're going to go they want to do some plug into something where they matter where the work matters and where is something that they have actually have a freaking talent at that they're not just there to collect a check that's right they have realized like crucial driven organizations like ramsey that's it see we all along i think benefit from this we will benefit from it i'm gonna tell you this the ken coleman show uh in ramsey solutions we're positioned to help a lot of people make this move because now they they need to know what they're looking for some of them don't know they're just going this isn't it and so what we teach every day as you know dave on the day on the ken coleman show is hey you use talent as your tool your talent our premium tools you do work you love we call that passion you just love the work and then that work creates a result that matters deeply to you so when we hire people ramsey solutions here's what you've got to be you got to be a crusader you have to be deeply deeply committed to the results of hope practical paths forward for people to turn their life around whether it be on the dr john dolani show with your mental emotional health they can't go turn your career around uh or turn your money life around and so when you come here you better be missional and you better care about the result of life change hope practical steps forward for people well you won't make it through the interview process and if you did you won't fit in no if you lie to us if you want to just collect you will be exposed because you this is a different place yeah well i mean we we we were talking about that this morning and snapping we this is how we do things and not everybody needs to be a we that's true you know so you mean if you if you want to just say well i've got a degree in x and so i have a s i have a talent yeah and you should just pay me for delivering on that talent yeah nope yeah it's not going to happen nope that's why we're getting so many developers coming oh yeah because develop we work a developer uh 40 hours a week not 80. that's right and we work a developer uh where they're writing code doing something that matters and so when they woke up during the pandemic they didn't wake up and go i hate my job they woke up and went man we've got a lot of people need our help yeah that's exactly right and so they're going hey i know that if i'm in here in this company coding that it is going to be directly tied to transformation see i think that's that's what everybody wants is to make a difference in the work so the net result will be for the economy overall if this transition is accurate if this survey is accurate will be a huge increase in productivity because people will leave jobs in bad situations that they are not good at that they're not passionate about and go plug into something yes a that they're good at and b they're passionate about in a better situation and they'll produce more way more which in goods and services which will help the economy overall so really if people everyone followed the ken coleman rule and got in something where their talent and their passion was aligned with what they were doing every day then the economy would boom even more productivity rises and durability increases people stay longer tenure people will stay in a place where they go my work matters the company sees me dave you just touched on this underneath all of this is a massive warning to leaders and to companies that if you don't give people a connection to their work if they can't see that you care deeply about them because they could be in their sweet spot talent passion mission aligned but if you have a crappy culture they will leave you they will leave you and and and you better have a place that uh is is healthy and you better have a place that is dominated by leaders who care for their people and people feel like hey you see me i'm not just doing work that matters to me but i matter to you because you share how we collectively everybody at ram solutions matters to the world out there that's what's special about this place and companies that don't figure this out you're going to lose talent at an alarming rate and the companies that figure this out dave are going to explode they're going to grow like crazy yeah and one of the things that they came to the conclusion i disagree with was that the worker is now demanding that they work from home yeah well those people are going to lose yeah that's not going to work bad idea by the way it's not going to work yeah uh it hasn't worked you could try all of the data new is in that's right and work from home doesn't equal work no getting done can't have a great culture if everybody's separated all the time yeah and it's we're seeing major companies that thought they were going to go that way swinging back now again this is the third time we've gone through this watch this wave go back and forth and i've been unpopular every time because we don't work from home we work from here with human beings in the building where we can see each [Music] [Music] other [Music] [Music] let's still on baby step number one huh how'd you guess with health care costs rising learn how christian healthcare ministries can help you make the most out of your budget visit chministries.org budget don't worry it's worth it [Music] ken coleman ramsey personality is my co-host today here on the ramsey show you know what sucks living paycheck to paycheck where you have too much much month left at the end of the money you're barely covering the bills you're never getting ahead you feel like a rat stuck in a wheel run run run run run run you don't have to live like this stop going in circles it's time to start making progress check out ramsey plus this membership will show you how to make the changes you need to get the results that you want with your money and that's because ramsey plus gives you complete access to our best online money courses like financial peace university know yourself know your money and tools like every dollar that actually makes sense get out of the cycle start making real progress jump in on your free trial at ramsey plus today text trial to 33 789 text trial 233.789 open phones here at triple eight eight two five five two two five janet starts off this hour in pittsburgh hey janet how are you i'm great how are you better than i deserve what's up better than you deserve i know it i've been listening to you and following since um the 90s but through financial peace yeah yeah back in 2009 and again in 2012 when i was living with my husband we paid off 167 000 in debt but got right back in i separated from him 16 months ago got a restraining order and the kids and i have been living on our own since then i have two at home out of six wow um the other four are grown up so i'm 56 i earn including child support about 57 five a year i have two jobs one is i work for a person with autism as an aide and another one is i work in an emotional support therapeutic classroom as a paraprofessional the second job i'm not crazy about there's a lot of danger there and i'm getting older so i paid off my last debt my car on thursday of last week way to go um yes and so i'm debt-free yeah and i took the rest of the money from the settlement from the house that we sold during this huge market boom we sold the marital residence and i put the rest and funded my baby step three good so i i feel like i took two huge steps and i don't know quite what to do there's still some money left over i'm putting it in a fund to save up for a down payment for a house perfect i would like to move from pittsburgh and move back home or some place where they have fantastic jobs like you guys do okay where you don't have to worry about a kid carrying a switchblade into school i got you you know well that's pretty well anywhere these days but yeah okay so i'm i'm done with funding college and all of that that's you know my daughter is probably going to go into the air force we don't have to worry about that my son that lives with me pays rent and i'm trying to figure out i mean have everything budgeted i just want to figure out how to do this house thing right without screwing it up because i'm going to be going back into debt and i just got out of debt so i want to do it you know i'm thinking maybe a fifty thousand dollar house maybe eighty where is that home that you're talking about moving to oh erie pennsylvania all right and uh on the lake and can you uh uh buy a house for fifty thousand dollars in erie pennsylvania you still can but the problem is the challenging thing is the employment market okay all right that's that's the thing now my one job will go with me um but my other job you know that's twenty three thousand dollars worth of income that i have to replace really with what i do that's not who is an eerie better than that i have family there but mostly it's the familiarity it's um you know i could go pretty much anywhere but i don't have another landing pad that's what i was um i have a girlfriend who lives down in north carolina that the rate of living there is so expensive and i don't think that my second job would transfer down there if the job situation need working i'm an aide working for my son and that's funded in pennsylvania so i'm golden in pennsylvania yeah janet i was going to ask you really quickly is if the eerie job situation was just a snap it was already taken care of would that be your favorite place of all the places you could go yeah okay so so how much extra money if we remove the second job where you're in the classroom is essentially a parapro um how much money do we need to replace on that particular job how much 23 000 okay i could drive a bus yeah you know and make more than that there's a lot you could do yeah so let me ask you this and i don't the thing that that gives me summers off with my son i have a 21 year old son with autism gotcha so ideally you want the summers off so what could you do yeah well that's ideal correct all right so here's what i'm trying to walk you through i want you to have an ideal list okay so i ideally if i could get a job in the school system that's not as scary as the pair pro in these in these classrooms uh with some of these kids um that's ideal but then we say okay let's look for what's there let's just not assume that as well it's a horrible job market in erie the mistake by the lake it's what you call it you've kind of poo-pooed the whole area so let's see what's there that's an idea yeah i know uh and so well let's look at ideal and then we look at okay what could i do that would still give me a life and my 21 year old son i mean i'm going to work 40 hours and make really good money i can make more than 23. and i think you've got to ask yourself what can i do well let's just start with the tools we look at talent here at ramsey solutions as a tool that i can use to do work that i enjoy so start with hey i'm really organized i'm really good with people you need to just do a quick assessment and and i want you to go to kencole.com and get the career clarity guide simple little worksheet it allows you to get feedback from people who know you really well so you get some confidence on this but just begin to identify another day job that you can do well that's in a better environment and now you're there with family you're saving up and you're you're getting that house a lot quicker than you realize but don't assume uh that something's not there until you dig into it because there's a lot of work in area that she can do dave and make more than 23. yeah continue to save on your baby step 3b for a down payment on a house when you move to the area you do not have to buy a house immediately you can rent for a little while and let's get all these career boxes checked and your income and even support boxes checked and maybe north carolina is there that's right i will tell you there are sections of north carolina that are less expensive than erie pennsylvania your your set of assumptions there is just not accurate so you've assumed that everything in aries are bleak and horrible including prices on houses and then everything in north carolina is the land of uh you know plenty and and expensive and it's neither one of those is completely true there are some good spots that you can pick in erie and land in and some good jobs that you can pick there and the same would be true of north carolina and so these blanket statements now i do think the reason you want to go to erie and what familiar is after going through this divorce and all this pain uh you want a familiar place to heal and i'm perfectly okay with that idea that's fine the familiarity part of your statement was absolutely truth that was very good so you know begin to find something make a move there is nothing if you go rent and get a job there's nothing to say that you don't find a better job in a different place later and move again that none of this is is none of these are forever decisions so you got to get on a path here that gets you um you know heading in a direction of a career and a house and i and those are not incongruent with where you are i think you can get there i really do open phones at triple eight eight two five five two two five that's triple a eight two five five two five when you're faced with a set of decisions like they can we teach decision making is in one of the leadership things in entree leadership there's a couple of things that that uh that when you get emotional whether you're wounded angry whether you're hurt uh whatever emotion you want to put out there you shut down your peripheral vision and you fail to see as many options for the way around something you get tunnel vision and options the more options you have when you're making any decision the better likelihood you're going to make the right decision when you start saying absolutes like there's no jobs there or that's area is just always expensive these are absolute statements that are inaccurate and that's coming out of your pain this is the ramsay show [Music] what makes our show unique is that we genuinely care about our listeners we're intentional about choosing the best advertisers to recommend blinds.com is no exception they offer high quality window treatments at unbelievable prices and they make it simple to shop blinds shades and interior shutters with easy online ordering free shipping and a guaranteed perfect fit go to blinds.com and take advantage of this week's special savings [Music] in the lobby of ramsey solutions on the debt free stage adam and victoria are with us hey guys how are you i'm pretty good good welcome it's a pleasure to have you guys where do you all live bluff city tennessee bluff city did you say yes okay like kingsport area huh yeah yes okay cool well welcome to nashville good to have you guys and all the way over here to the other end of the state to do a debt-free scream how much have you paid off 67 000 15 months 67 000 15 months and your range of income during that time it's about 60 to 65 000. cool what do y'all do for a living i'm a subaru technician at a dealership and i work in a deli okay i thought maybe he did voiceover i i was gonna it's got pipes man got pipes most of my subaru technicians don't have pipes like that i'm just saying good man way to go what kind of debt was the 65 000 uh it was actually let's just say half of it was a student loans and then there was a car that we basically got rid of and then uh what was it credit cards and tool loans and you did all of this in 15 months what happened to you guys 15 months ago let you on fire like this you got after it yeah we um we did the financial peace program and after that my parents let us live that freddy or rent free we're not free to be that friend okay cool so you've been with them for a little while are you out yet uh well we're actually uh living in one of their uh what was it the cabin oh okay and uh so it's just basically just uh victoria and i oh i saw so you know trying to pay all the loans off you know that was a feat but now since we uh basically become uh debt free uh we're saving up for a home good way to go you guys thank you fun what what inspired you to take financial peace university uh well uh her uh mother kind of convinced us to uh take the cl the course and she uh she basically said hey you know we'll pay for the course if you go if you don't go then you owe me money wow so you know that's that's fair it's a fair trade sure you got to show up after i pay for it yeah that's all right how long y'all been married a year and a half oh wow okay so that's the first order of business then after marriage boom yeah go go to financial peace get married get out of debt just like that boom how old are you two i'm 28 29 next month oh and i'll be 31 tomorrow yay and no payments in the world whose student loans was it it was all mine all yours okay and it was your mom uh victoria that paid for the course yes so she's straightening out her son-in-law here i love it that's great i love a meddling mother-in-law she's awesome that's so fun good for her and good for you guys for listening i'm proud of you it took a little bit of humility to do that i'm proud of you there adam that was very very cool and so you step in say we're gonna get married we're gonna clean this mess up and you just went wide open huh this is correct yeah so what do you tell people the key to getting out of that is well it's just mostly uh you know when you're given a opportunity such as what we were blessed with uh you know a lot of people would not take advantage of that you know they might actually try to you know buy cars and all this other stuff but you know for us we just had to buckle down and the whole thing with you know the beans and rice you know with our budget we had to get rid of the rice and it kind of put a stress on our marriage a little bit there just beans huh oh yeah we won't ask any follow-up questions i don't need to know any more about this yeah way too much information for me fun fun very fun so when you started taking the class what was maybe something that caught you off guard you didn't expect that maybe something you never thought of or something so common sense you're like how did i not see this i think it's more of uh you know the the snowball you know just learning how to actually go through the whole program you know uh that was probably i would say the common sense part but it really did not you know register to me but i know when we uh took the course uh you know it's when you're looking at the big picture you know not the small picture it's it makes sense you know it's like hey you know if i'm debt-free or we're debt-free you know uh we pretty much just do anything we want we don't have anybody uh holding us back or anything like that so very cool and that gave you the fire to go do it then yeah good way to go you guys i'm so proud of y'all thank you thank you proud of you who are your biggest cheerleaders my whole family yeah your family i would have to say her okay and her family yeah all right so it's kind of a financial peace thing getting out of debt things kind of a family thing for your family yes okay very neat very neat wow excellent excellent excellent well done you guys so well done i'm proud of you we got a copy of the book the legacy journey which is what your family has engaged in changing their legacy and you're part of that legacy and now you're going to extend it on and we're going to give you an extra copy of the book the total money makeover to give to other friends and maybe you can inspire them to get on the journey with you and uh get get to going and they can be where you are how does it feel now that you're completely free good wonderful just like that i love it oh yeah very fun well way to go you guys congratulations adam and victoria from the kingsport tennessee area bluff city count it down let's hear a debt free scream three two one we're there free yeah very well done very well done mary is in mcallen texas hi mary how can we help today hi dave thanks for taking my call how are you better than i deserve how can we help um well i just finished um baby step three i'm gonna go ahead and start on baby step four soon um i was able to incorporate baby step six into my baby step three so the house is paid as well um however i'd like to open my own business but it is pretty expensive my six month savings would not cover it at all how would i be able to get all the money i need without taking out a large loan and using the home as collateral let me tell you that the number one reason that 80 percent of the small businesses fail in the first five years cash flow problems you know cash flow problems are created by not paying your taxes properly and they come down around your head and debt so here's what you do you don't open this business the way you're thinking of doing it we have to figure out another way to get at this what kind of business are you talking about i'd like to open my own rock climbing gym okay all right and um so that is a very high risk endeavor i don't mean falling off the rock i mean risk i mean the business failing high risk their 100 of rock climbing gyms do not succeed as a matter of fact a very small percentage of them succeed because people make the mistake of thinking i install rock climbing and people will show up a field of dreams if i build it they will come and that is complete bs it does not work that way so what do you do for a living now i'm an administrative assistant okay ken why the rock climbing tell me the why not don't explain the whole business to me but why did you think of that when you thought of a company um it's the only thing i ever really felt maybe passionate about the only thing i've ever enjoyed doing i don't want to continue working for someone else i want to work for myself and okay so i do agree with that i want to help you do that so you do climb you do climbs in nature now not on a wall right i prefer indoor over outdoor however the fact of the matter is you like being outdoor you like adventure sports you probably like hiking is that true or false yes i enjoy that all right so if you don't want to work for anybody else and you love outdoor adventure and all that type of stuff what i'd like to see you do is stay stable you've done such a great job getting where you are let's get a second job but now this time it's not about getting out debt let's get a a side hustle that's in that space and you probably will work for somebody for a season but let's take people on hikes let's do some uh outdoor uh you know outriggers people are doing that kind of work that kind of work and find some indoor rock climbing gyms and see how you can serve them how you can get involved on their staff temporarily yeah but i'm with you dave i mean she ultimately loves that outdoor adventure side of things she like climbing the rocks and what inside she said yeah i know but we both said that rock climbing gyms aren't a good idea so i want to get her i'm not sure i want to buy one i know i don't want to go from administrative assistant to owning one that's true [Music] [Music] [Applause] [Music] [Applause] ken coleman ramsey personality is my co-host today open phones at triple eight eight two five five two two five ernest is in kansas city hi ernest how are you doing pretty good dave how are you better than i deserve how can we help uh hi i was just wondering what can i do to kind of protect the money we've saved from inflation where is it saved uh we're just in savings accounts basically right now how much is in there uh 10 000 in the house fund about 20 000 in the emergency fund okay the emergency fund you don't protect from inflation that's not what it's for it's there just for insurance so when life happens transmission goes out somebody gets sick somebody gets laid off that's what it's for it's not it's not an investment investments have to be protected from inflation by investing at a rate of return that is higher than the inflation rate and that's what you have to do you have to make the inflation rate is average in the last 72 years 4.2 percent taxes added about another 2 percent to that so you got to make over 6 percent on your money on a long-term investment to break even with taxes and inflation and that's always been the case these uh increases in prices have kind of looked recently in cars and houses and building supplies and other stuff has woke people up again on the dangers of inflation but inflation's always been there to erode your long-term investing if you don't do that and so in other words if you put money in a cd for 50 years at one or two percent and inflation is running four percent obviously you're going backwards and that's not handling your money well but your emergency fund is not for that your house fund is going to be spent as a down payment on your house in the next couple of years right potentially yeah so inflation is not going to eat that up because it's not going to be in there long enough where inflation gets you is where you're dealing with something as a 10 a 20 a 40 year investment that's where inflation gets you it doesn't get you in 12 months okay that makes sense to you it makes sense yeah just house prices have jumped up this year car prices have jumped up but that's not going to be a standard way we're not going to see house prices go up 20 a year for 10 years just wouldn't it's just not gonna happen if it does we've got other issues in this economy and they're that's just structurally not how we're wired in america i just do not see that happening but could we see it for coming off the pandemic can we see some of these things bump temporarily you bet we have car prices are an example of that um and it's all it's more due to shortages than it is anything else and once the supply demand curves equal out it's going to slow the rate of these price increases it's not a bubble and it's not going to burst and it's not going to go backward 50 or something like that five years from now that's not what it's going to do but this driving demand people sat at home and spent no money except on amazon for a year and when they came out of their cave they all went and bought a stinking house and they all went and bought a stinking car by the way the lumber factories weren't open making two befores and the car factories weren't open making cars so we have this tremendous shortage of supply because the factories weren't operating because there were little covets running around in the factories and nobody wanted to go in there and so they were you know scared of death and so we shut the factories down we suppressed the economy and that you know so there's a shortage of two befores not because there's this spike of demand but because they weren't making freaking tubaphores there's a shortage of glue to make plywood why because there's a big run on plywood no because the clue factory wasn't open yeah okay it's a simple thing so it's gonna smooth out because they're gearing up like crazy there's a shortage on ammunition you know why biden you can't buy bullets okay that's why and you know what we're having all kinds of those of us that are firearms uh aficionados right now we're having to check our ammo because they're making ammo so freaking fast at these factories trying to catch up that it's a lot of it's coming out defective which is dangerous as crud you can blow your gun up in your hand with a bad piece of bullet in there and so you know just got an email on that this morning some friends of mine just bought some bad stuff and just about got killed with it so um you know but the point is the factories are gearing up like crazy trying to catch up and as they catch up you see how that's working again it's going to smooth everything out well i just what people understand inflation can get really scary to people and remember the media exists to freak you out okay that's what if you listen close enough dave you lean in you can literally hear the headline going and we're freaking people out here's the deal all right this is a short-term inflationary like the other focus so now we have to have a new boogie monster the locovit died so now they gotta have a new bug boogie monster let's see where we are next year as to whether or not this is true inflation hike versus just a short-term spike because of the whole supply-demand thing this thing's going to even back out i absolutely think that's true and people need to relax a little bit sit tight weather the spike in meat prices and all the things that are that are all having to do with the distribution system and everything kind of going offline it's going to take a while this was the biggest artificial shutdown in the history of mankind of mankind and so you don't just warm that machine back up it takes a little while for it to get humming well and some of these uh corporations are more worried about optics than they are actual it's absolutely true and so they're not reopening just because one crazy you know activists or something is gonna about open people on twitter yeah there's 17 people on twitter still bitching about this stuff and so they're all worried about how things look you know how they actually are they're not really worried about somebody you're sick they're worried about somebody bitching about them being open that's right that's what it is and so um these corporations have no soul and they have no principles no backbone and so then that's what's happened in these situations and um and of course those of us that did open and did run our businesses we're trying to kill our employees oh yeah you know dave ramsey's trying to kill his employees oh yeah so which is kind of counterproductive because i've got no employees i got to go re-hire them all it's a pain in the butt so it's killing them off's a problem you don't want to kill them off they're hard to replace dumb so that's what's going on though man all right so ernest turn off the news yes turn off the news quit getting your financial advice from fox news yeah quick in your financial advice from cnn for god's sakes those people on the tv in front of you all have 120 000 student loan debt so don't let them talk to you about economics yeah and they don't even know what inflation is it's only on the prompter in front of them that's a fact they don't even know what no would influence you ever right you're getting financial advice from ron burgundy [Laughter] what's wrong with this picture right he doesn't even know it's just on the problem yeah and here's the here's the scarier part that's dave let's give him full behind the scenes not only is it ron burgundy reading something on a prompter a 24 to 25 year old producer typed it in there for him yeah they don't understand economics or inflation see i'm old i remember jimmy carter i remember real inflation right that was real inflation that was not a supply demand curve thrown off by a pandemic that's right economic suppression that is that's a different thing we had bad monetary policy over a decade yes from the 70s up into the 80s and we were jamming at 10 to 15 percent inflation rate per year for a decade there yeah i remember that interest rates at the height of that do you remember that was the resulting thing that that ended the carter administration for sure yeah we had when i uh was 20 let's see 1981 interest or i was 21 inches i was selling real estate interest rates for a home were 17 goodness graces fixed rate 17 and uh that was the end of it and and let me just here's the interesting thing three years earlier they were 10. yeah wow when i when i got my license at 18 years old in september i remember it went from nine and three quarters to ten for the first time in modern history we had 10 mortgage rates and people were screaming ready to jump out of windows sure that the world was coming to an end and little did they know it was going from 10 to 17 in only about 36 months yeah just crazy yeah that's real inflation you don't have to worry about on the short term brother you just don't have to worry about the short term it's a long term where inflation will kill you this is the ramsey show [Music] have a friend or family member that needs a daily dose of ramsay advice in their life let them know about the ramsey call of the day podcast it's a quick hit of advice about life and money in under 10 minutes check out the ramsey call of the day podcast wherever you listen to podcasts this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the 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 ken coleman ramsey personality host of the ken coleman show where he talks about careers the path to your dream job yep getting in something that you love and work that matters he's here to answer questions about that and will chime in with me as we talk to you about your life and your money open phones at triple eight eight two five five two two five brandon is with us in lexington kentucky starting off this hour hi brandon how are you doing great dave how you doing today better than i deserve what's up hey excellent um back at the end of february i was in a car accident where the airbag was actually put in wrong airbag shot out the front of the car the canister flew backwards it took out my right eye broke my neck i had severe burns it degloved most of my face um but that's pretty traumatic um yeah you're still healing big time aren't you yes there's a lot a lot of scars and strokes and bruises um but in probably 10 months to a year um there will be a settlement where conservatively it's probably around 5 million dollars after everything's taken care of attorneys all that i've never had access to that kind of money um and i want to be you're covering your phone i'm not hearing you i'm sorry um i never have access to that kind of money was the last thing we heard okay yeah i've never had access to that kind of money um i want to do things the right way as far as taxes go um you know take care of myself my family and i just wanted to see what the first steps need to be and where to go from there if you have any advice oh my i'm so sorry what a horrible thing to go through huh um so you have an attorney on your team i assume yes that is is he's advising you you're going to get the money that quickly um they've been going about 10 to 15 months typically um it's kind of open and shut case yeah i would think that but um wow okay and how old are you i'm probably 38 in about a week and a half what do you do for a living i've been in the restaurant industry serving bartending okay all right the most recent you said family are you married in kids uh married and i have two wonderful stepdaughters okay that are 11 and 14. well what you've been through is very traumatic and very dramatic um and so it's going to uh and it's been you know i can't speak to it as much as you can brandon but i mean uh if i get a hangnail i i i cry so i can't even imagine with the pain and all the things you've been through and then the permanent loss of one eye so you know you've got some uh emotional uh and physical healing to do from all of that uh it's not a good time to be making really big decisions uh like i hit the lotto kind of decisions uh and so i can tell you how to do it over the course of a long period of time and then you've got to implement it so here's a whole bunch of things i'm going to throw at you and then i want ken to speak to your career thing number one i want you as soon as you're able emotionally and physically to develop a career track i want you to develop a career track where you don't need this money if you don't need this money then it's going to work really really really hard for you and and you're going to be in a position of unbelievable wealth at the end of this story as a result of only five million dollars because it can let me let me give you an example okay you're 38 if you just never touched it and invested it and that's not what i'm going to suggest by the way but if that's all you did you put it in a mutual fund series of mutual funds and it made 10 it would double about every 7 years so that means when you're 45 it's 10 when you're 52 it's 20. when you're 60 it's 40 million dollars that's how important it is that you don't go through this money and blow it all now we're not going to do that exact plan but you're going to put in place something that gets the advantage of that kind of thing because to me a 65 year old with 40 or 60 million feels a lot more exciting than a 38 year old with 5 million and i hope it does to you that's where you're going if you'll go get if you don't you know treat this like emotionally like woohoo i hit the lottery i know you didn't hit the lottery i understand that you've been through a lot of pain and i'm not diminishing that part of it but you see what i'm saying you don't blow this which is why you're calling so thank you so here's what we're gonna do number one you put an investment person in your corner an investment advisor that has the heart of a teacher their purpose is not to do the investing for you it's to teach you enough that you can start to make basic decisions on basic investing and later on more sophisticated investing okay number two if you're going to do some real estate you put a real estate person in your corner and if you're going to invest some of it in real estate you would buy real estate and that one's going to take you longer than the other kind of investing and you're going to pay cash for real estate or that's for investment purposes or you're not going to buy do you own a home uh no apparently okay then we're probably going to buy a house out of this but something super conservative because every dollar we put in that house is not doubling every seven years right and that's where we're going to go with this so you begin to develop and then you get a tax person in your corner the same thing with the heart of a teacher and then you get an estate planning attorney in your corner same thing with the heart of a teacher and you start to develop almost an advisory board for brandon incorporated and the advisory board is an investment advisor a real estate advisor an insurance advisor a tax advisor and you start to put these people in your corner and you can find most of them on our website i don't i'm not in any of those businesses i don't want anything from you i don't want to do any of it for you but i want you to do it and let them have the heart of a teacher and lead you and then i want you to move into a career ken yeah i curious did you have something you always wanted to do before the accident something you thought about uh honestly no i don't all right so i've been thinking about that i want to do something i just don't know what i'm going to be one capable of doing after all this is said and done yeah that's my first thing is you need to find out from your doctor what if any physical limitations you'll actually have because you're still in the healing process so i'd start with physical limitations and then i began to look to the heart and answer this question who are the people you most want to help what are the problem they have or maybe a desire that they have that you would like to be a part of that solution when you can answer those basic questions right there you'll begin to see hey this is how i want to contribute so don't think about work anymore as just work think about it as how am i going to contribute and begin that process go to kencolma.com download the career clarity guide and go through that worksheet by yourself then with some trusted people who know you really well and it's going to begin to give you some ideas and then once you know your limitations and what you need to do they get qualified that's how you begin that journey that process and i agree dave if he's working doing what he loves he's already got all the money he needs yeah hang on kelly's going to pick up i'm going to put you through ramsey plus with financial peace university i'm going to pay for it we don't need anything from you we just want to help you sir you call back as you're working through this and i'll help you with it and advise you as you go along hey folks i got a great option to help you pay for your education the army national guard the army national guard believes you are the next greatest generation because you have proven that even in adversity that you have what it takes to succeed that's why they offer benefits like tuition assistance career training and a paycheck to help you avoid debt no matter what your goals are the army national guard can help you get there visit nationalguard.com to find out more [Music] ken coleman ramsey personality is my co-host today open phones at five 825-5225 is with us in san diego hey angelia how are you hi dave thanks so much for taking my call i'm so excited to be talking to you right now totally nerding out but um so i have a question for you um i just got a big promotion at work which doubled my income uh so my husband that i combined will be making over 250 a year um so i was looking for some advice on my roth retirement account i've got my own roth fire array and then through my employer i have a raw 401k and with our new income the 6000 i can contribute to my runoff will only be about 5 so to get me to my 15 right now with my employer they match six percent dollar dollars so that's what i am doing but should i just increase that to 10 um to get me to my 15 or is there another option that you think i should uh look to look at you can increase it if you want you said you're married your household income is 250. what's your husband uh does he have 401k available yes so his 401k uh he's been investing since he was 18. so he's got about 500 um in his 401k through work right now as well yeah but does he have a rock does he have a roth there um he has not switched over to the ross just because they just started offering it in january and with his age and how much he already has in his traditional 401k um i didn't know if it would be worth to switch him over to ross like his new contributions how old is he i know he is 44. absolutely his new contribution should all go into that the old ones we can talk about later that's a big move because it's a lot of money and it'll create it'll activate a lot of taxes if he moves the old contribution but from this point forward it should all be roth so here's the rule match beats roth beats traditional so the best thing you can do is both of you get the match then the next best thing you can do is both of you max out roths until whether it's roth 401k or roth individuals until you get to 15 of your household income now you both put in a max of 19.5 and a 401k so basically 40 000 if you both max out your 401ks you both max out your roth iras at six that's another 12 so that should get you there okay and you know you in all of this in good growth stock mutual funds with great long-term track records but we're trying to get to 15 of your household income which would be what 30 uh 37 000 and you can do that you can do that with your 401ks alone you know if you never do it an individual roth but that's now if your individual roth obviously you can choose from 8 000 mutual funds your 401k may not have great options if you got better options then you know we go with his you got better options we go with yours or we go with individuals i don't care where they are but roth is what it all ought to be plus the match that you're getting from this point forward now i would not convert his 500 to roth until you have some extra money laying around because that's going to activate taxes but yeah that's you look at it as a household situation and that's how you do it so very good work good job greg is in raleigh north carolina hi greg welcome to the ramsey show hey thanks for having me i appreciate you taking the call mr dave mr ken glad to be on sure how can we help well so my wife and i are in the spot because we so so we've been doing the steps we're actually through step four we're investing 15 um we have six months uh savings stored up and we've got about an extra 10 000 now probably by the end of next month it'll be close to 15 because we get an extra paycheck um and our plan was we have two vehicles that are older and cheaper and they're paid for of course no no debt or anything else other than house um our plan was our family is going to be starting soon we need a family vehicle and so we've been saving up for that however one of the cars we have a three thousand dollar car and we have a fifteen hundred dollar car the three thousand dollar car transmission went on it so looking like we gotta replace that and i don't know should we you know scrape some extra together go up to twenty thousand twenty five uh and get the family vehicle now and then keep going with the fifteen hundred dollar car until we we you know save up and replace that or do we just sorry how much do you have in your emergency fund uh and to our emergency fund we've got about 25 20 about 25 000. how much do you say for a car about 10 right now so how did you get to 20 well that so that's what i'm wondering because that 25 i'm wondering if we steal a little money from the emergency fund put it with the car fund to to replace the vehicle now what's your household income about 220. um well i mean your your emergency fund should not be below three months of your expenses so what is three months of expenses for you guys yeah three months of expenses probably about 12 13 13 000. 15 15 is your minimum emergency fund so if you move if you move down an emergency fund and move up a little bit in car and immediately then you're debt free right correct then immediately you start building that emergency fund back up and building that car fund back up because we need to get out of that 1500 car as well and you should do that at light and at breakneck speed with your income you have fabulous income what do y'all do for a living yeah uh i work for an engineering services company doing sales she's the nurse okay um so the other little aspect with all this is when we met she had a house then i i bought a house once we got married she moved in we turned hers into a rental we actually have a third one as well that we have a rental that's a rental as well both of those two rentals we have about 50 down pay but we do have mortgages on those now i'm including the mortgage on that in the emergency fund number so that fifteen thousand for a three months is uh is includes the mortgages on those as well if you sold one of those could you pay off the other one yeah and and have the money to move on up in cars right yeah do it you need to move one of them right now this market's hot okay pick the one you don't like and move it and let's let's clean this mess up because now you're sitting with two nice cars paid for a fully funded emergency fund and one paid for rental property i'd rather be there than where you are okay that's a good point okay thanks for the call bro appreciate you joining us so ken the um when you've got a career that's cooking like that it gives you lots of options yeah yeah when you have an opportunity to get promoted and move yourself up the ladder and keep financing the baby steps and then when you have a situation like the cars you can go do that get right back into the emergency fund that is why the great job is the big shovel it's a game changer riley is in utah hey riley how can we help hello sir i have a question for you i have what i would consider a very good job my wife does as well and i am wondering if i should quit my job to go to college if college is paid for why are you going to college whether it's paid for or not i feel like right now my job is while it pays for and has good insurance it's kind of a dead end there's not a whole lot of room for promotion my wife's job seems to be a bit of the same and i really i have no connection to it what do you mean every day and i dread going to work what do you make um between my between my wife and i no what do you make at your job i make 22.85 an hour after taxes and insurance i net about 34-ish a month right but here's the thing if you don't know why you're going to college other than i have a dead-end job that's still not good enough reason to go to college you've got to have a reason are you going to college to get a specific degree that will then qualify you to do work that you're deeply passionate about or you just think well if i go to college i can upgrade my life so i love automotive i went to a two-year technical program for it before i joined the military and now that i'm out of the military i really miss it but i don't want to turn wrenches my whole career so i've looked into it and if i get a degree in it and i've already been accepted into a program should i choose to go then i can go into more of the management of the manufacturing of diesel and automotive technology all right so in that situation you said it's paid for us if college is paid for and it's the only way or the best way to get you to that management job in automotive absolutely do it but you got to make sure that you can afford to do it not just afford the college got to get a budget together and make sure that we are living while we're getting educated [Music] [Music] [Applause] [Music] in the lobby of ramsey solutions on the debt free stage todd and jamie are with us hey guys how are you great dave how are you better than we deserve welcome it's good to have you guys where do you all live fort wayne indiana indiana oh fun very cool welcome to nashville how much debt have you guys paid off seventy one thousand one hundred forty eight dollars all right very good how long did this take three years good for you and your range of income during that time started it ended around a hundred thousand okay and what do you guys do for a living um i'm in finance and i used to be a printer but at the same time my printing plan was closing down i ramped up my side hustle and paid off the debt as i was walking out the door oh fun what was your side hustle um comic book shop okay is that what you're doing full-time now yep all right look at you well done man that's fun what kind of debt was the 71 thousand our mortgage oh you paid off your house yeah we're looking at weird people how old are you two i'm 45. i'm 47. awesome what's the house worth uh 230 somewhere in there yeah i love it way to go youtube thank you very very well done how's it feel to not have a payment in the world amazing yeah excellent so now that's sweet i mean you walk out from the printing job and pay the last payment on the house well i paid it down so she actually had to go through the drive through to make the last payment herself i wanted to go inside but you know kovid i had to go through the drive-through so it's kind of anti-climatic yeah yeah i remember a cartoon years ago drive-throughs are at banks or where cars go to see their real owners you guys that's so fun so what inspired all this what started this all three years ago um well like todd said he works in printing and um you know we just we knew it was gonna end eventually um just you know the whole book paper industry is just you know going away so we kind of prepared ourselves um for this moment um his plant actually closed on the 23rd of december and we made the house the last house payment on the 28th five days later so we just you know um we knew it was coming we wanted to be prepared and we didn't want to have to worry about you know finding another income if we needed to you know we could just relax and breathe wow so when you decide to finally attack the house what was a big sacrifice what was something big that you guys decided okay this is gonna kick start this or something maybe you didn't want to do but you knew you had to do i mean we cut back on i mean just your basics going out to eat and stuff like that but i was working pretty much 12 hour shift and i was working a comic book shop on the side so it was kind of like time and you know time and family a little bit were you working for somebody else in the comic book business or was that i do i was a collector for probably 30 years salad without selling anything i've collected so then i branched off branched off and just started doing it myself okay started selling so you're doing a lot of it online then no i don't do anything online oh you don't do anything you built a uh you built a physical location that people come to to trade it's inside of an antique shop and i'm all way in the back and i've got like 20 000 comics in the very back of it and i run it out of an antique shop oh wow that's amazing so then my overhead's low and then i don't you know have all the bills and wow so what is the most expensive comic book you've ever sold um i mean i've probably sold seven eight thousand dollar comics but there's some worth a lot more yeah oh i know they're out there oh god i'm just saying that out of your collection you sold one for seven or eight grand yeah what was what would be something that would go for that um it was a star wars number one 35 cent cover okay i sold that years ago oh my gosh i guess it's that's that's astounding that's fun that is very fun we turn his hobbyist passion the money is there it is that's how you do it just like a ken coleman thing or something said it a few times yeah do do work you love oh yeah exactly yeah and so does it just you still just yeah yourself well the antique shop manages the stuff when i'm not there okay so it gives me the opportunity to go hunt down comics and have a good time good for you yeah okay fun well way to go guys what's this house worth about 230 000. that's good yeah that's very good and how did you get how did you guys get roped in with us i was listening for years and she mentioned it one day hey dave ramsey and then she got on board and i just followed her down i was like okay let's do this game on game on all right just like that let's knock this last 71 000 out three years later ding ding house is paid for just in time for the print shop to close yes odd timing yes yeah that's interesting wow good job you guys what advice do you have if somebody wants to do this they want to get out of debt what should they do oh just like keep your eye on the prize the end goal i mean it just feels amazing to go to sleep at night lay your head down and you know you don't have to worry about anything it's just that that end goal and you know just be honest with yourself and your partner and you know you know this is something that's worth doing and and just um pushing through and the sacrifice is so worth it i mean if you really think about it it's just a small amount of time that you're sacrificing and you've got the rest of your life to just you know live like no one else yeah yeah that's good pay a price to win live like no one else later you can live and give like no one else that's so fun very cool very cool so you're still actively adding to the inventory you said you should go out hunting oh yeah all over newestville yeah no you've been all over nashville we're not over national hunting inventory so we're having a fun time yeah that's cool where do you find your best stuff um it depends i mean estates i usually buy full collections so i mean oh i typically go that route that's a good yeah that way that sounds like you're right fun fun and you brought your daughter with you yep yep all right how old is she she is 18. all right way to go and an 18 year old is named casey casey welcome casey good to have you very very cool all right we've got a copy of the legacy journey for you because you've changed your whole legacy way to go that's very fun and an extra copy of the total money makeover for you to give away to someone inspire them to do what you guys have done uh it's worth it isn't it yes how's it feel to not have a payment in the world oh just yeah just breathe easy i'm telling you yes i love it all right todd jamie in casey fort wayne indiana 71 000 paid off in three years making a hundred a year count it down let's hear a debt free scream three two one love it that is how it's done ladies and gentlemen that's how it's done you know sometimes when we talk to people that want to open a business doing something that they're passionate about the biggest obstacle they have is they refuse to start small um we've got a sign up over here over the top of a trunk of a car that says don't despise small beginnings so true and you know he put this in the back of an antique shop so when he's gone somebody's managing the sales probably for very little is just an arrangement with the landlord there and he's sub leasing and got almost no overhead yeah and so almost everything he makes comes home brilliant way to start to turn your hobby into a very lucrative business as a first step that's exactly right and here's the key something you love so he's willing to swallow his pride and go to the antiques shop owners say hey can i come in the back i just need x amount of space when you care deeply about something dave you'll swallow your pride you'll work those extra hours this was a side hustle to get out of debt but now it's become his full-time gig that's the key when we talk about passion you got to love it and you're willing to suffer you're willing to swallow the pride you're willing to hustle drive all over nashville to look for inventory you know he's chuckling right now listen that's what you do because you go i desperately would rather do that than work for some jerk that just shuts the plant down and i've lost my job so i'll work harder i'll work smarter see passion gives you the fuel for that the fire to stay with it long enough to figure that out but it's almost like you're to start your playing around the fringes you don't have to walk right out in the middle of the ring with the spotlight oh no just play around the edges yes take the edges there's lots of money in the edges yeah just go ahead and make you a living in the edges yeah you don't have to start in the spotlight maybe the most amazing miracle on the planet is watching a human being learn how to walk and they always crawl and they stagger a little bit then they start walking with some pace and then they run yeah not the other way around yeah we got a toddler running around right now oh my gosh once they take off they go that's it oh my gosh this is the ramsey show [Music] [Music] [Music] ken coleman ramsey personality is my co-host today open phones at triple eight eight two five five two two five we're continuing to do shows on america's greatest legal fraud it's kind of an oxymoron technically but this is still a great name what is america's greatest fraud out there that's legal timeshares for sure complete rip-off right we all know that and yet people still get stuck in them every day and um so if you have been burned by a time share you've had a horrible story with a time share or you have just gone to one of those ridiculous sales presentations kind of like getting stuck in a prisoner camp you know kind of like getting stuck in something that you a tiger cage and you can't get out and you want to tell your story we want to hear from you we want to give you a place for your voice to be heard because real people are who's been getting screwed by these people so if you've got a time share story email us at daveonair at ramseysolutions.com daveonair at ramseysolutions.com just put timeshare rip-off story or whatever in the subject line kelly will get back with you we're not going to tell you what to say but we'll give you access to a microphone and a radio show where we can tell people what's really going on in that business well dave i don't like you talking nasty about time shares i sell time shares you shouldn't do that you should get a good job your job sucks and your job is to rip people off you should stop doing that i'm sorry if you don't like it if you work for a payday lender you should get a different job your job sucks your job is to rip people off you shouldn't do that why is this hard i mean there's this is an ethics problem because it's an immoral operation because of the way the customer is treated and the way they the way they stick it to you and so if you've had dealings with westgate or diamond or windham or you've had dealings with marriott or you've had dealings with any of these folks where you're dealing with time share the blue green folks oh god help you if you got in that one and uh just email us at dave on air at ramseysolutions.com we are going to continue to expose america's greatest legal fraud and oh boy have we got some cool information about what's going on behind the scenes with some of these people and these companies you are going to love the next show they're not but you folks are all right edgar is with us in fresno california hi edgar welcome to the ramsey show what's up how are you doing good i have a question so this is my first time trying to buy a home and i'm 32 and i don't have no debt and you drop the phone i'm 32 and i don't have that was the last thing we heard what happened yeah you're having all kinds of trouble here with your phone try one more time sorry i said i've been uh trying to buy a home for a year yeah and the issue is not the crisis but i didn't have any credit because everything i've owned i paid cash for good for you so now the issue is i've been trying they said we've been looking at homes i know the house price or the house mark is crazy and we fell in love with a house on the acre and i'm debating what should we do should we buy a house already build yes or should we try to go buy a home and build a module home on the land uh you should buy an existing property and if you're having trouble getting a loan with no credit if you have a good tax return showing that you're making money you can do that it's called manual underwriting you have to find a mortgage company that does that churchill mortgage does they're one of the ones that does that um and here's the thing edgar modular can means a lot of different things yeah there are some home builders that are building with components of the home rolled in on a truck and stood up intact together like a wall system or a truss system or something like that that's pre-built that's technically speaking a modular home the trick is sometimes modular home is code for double wide yes and if it's code for double wide you do not want to buy that that's going to go down in value 100 of the time double wides go down in value sometimes the land under them goes up in value faster than the double wide goes down and you make the mistake of thinking the trailer actually went up it didn't go up it went down in value so if you can tell if the consumer the next buyer can walk up to the house and tell that it came on wheels or that it came in sections because of the construction technique notifies the buyer that it is modular then you are not going to get the appreciation and you may likely get depreciation loss in value on the property do not buy that and if you need help with um you know manual underwriting just get in touch with churchill mortgage they can help you it's a very good point that you to point out because there are some companies that are really coming into the marketplace that are building nice stuff and they're just building them in a giant warehouse and pieces with real carpenters so it's real wood it's just they're building it there and they're bringing it out then they put it together that's a very that's a house yeah that even though it's prefab or if you want to call it a module it just means the way they're putting it together but that's a very good point those are those are very affordable and they're pretty well built in some cases those small systems are better than us really nice because they're built in a giant factory yes sir so that is a very key distinction there and those to me i think that's if i'm going modular i'm going that route yeah but but that's not what he's talking about no he's not talking about double wide that's right and trailers trailers are basically cars you sleep in they go down in value yeah that's what amounts to down in value stay away from them and churchill can help you and you know what the interesting thing ken we're finding is that real estate agents around america are lining up to work with churchill the best real estate agents in america are lining up to work with churchill because of the service they're providing and especially dave ramsey listeners are working having their agents work with churchill because churchill can do manual underwriting they can get them the loan when they haven't had all the credit lined up and they've stayed out of debt like he's done he's been mr cash off the grid guy yep now you have to of course have a tax return yeah to be able to prove that you make an income but that's you know back in the day we used to and churchill does this and again they work with the best real estate agents in the nation for this reason and so all you real estate agents out there you need to remember them uh by the way but the best ones work with them and um but the in the you know 1978 i get my real estate license right a thousand years ago there were no pre-approved mortgages there was none of this stuff where you just walked in with a number and they gave you a loan a monkey can make that loan right and so we had to actually do mortgage people actually did underwriting that's where the word comes from they did the research on the individual to make sure they could pay their bills and we had to have them sign a vod so we could send to their bank a verification of deposit a verification of employment a voe that was mailed snail mail in those days to your employer and they would send back verifying how much you make and that you work here and verifying that verify mailed to your bank and they've sent a note back verifying how much is in the bank and you know you pull up tax returns and they show that you've actually made money several years in considerat you know in you know continuous years and you just verify and you know verify length of time of employment it length of time in a certain career and all of this work went into approving a mortgage loan because it was a big deal back in the day when dinosaurs room roamed the earth now that's how a manual underwriting loan works is they're going to do that exact same kind of thing today of course it'll be done with electronic it won't be done snail mail and um it's done very very quickly but the you know with the advent of the fico score and all of america worshiping at the altar of the great fico oh great fico you're our provider and uh then uh you know then everybody's gone to that and the mortgage companies a lot of people have forgotten how to really do an underwritten loan and it's a shame but churchill can do it and that's again why one of the many reasons the best real estate agents in the nation work with them so if you're a high quality real estate agent you got to check them out this is the ramsey show hey it's kelly associate producer for the ramsay show this episode is over but if you heard about an event product or service and didn't have a chance to write it down don't worry we list everything you've heard about during this episode in the podcast show notes section or head to thermsyshow.com thanks for listening this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the 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 ken coleman ramsey personality is my co-host today you jump in we'll talk about your life and your money it is a free call at triple eight eight two five five two two five kyle is with us in charlotte north carolina hey kyle how are you hey i'm good how are y'all better than we deserve sir how can we help all right so i have a couple questions i have a house that my parents built and then when they split up my brother stayed in the house the house has been put into my name mama says just for tax purposes so i want to sell the house while the market is good which you don't really want me to so i don't want to do that but i'm also going to start a business flipping houses now it's probably not the best time to do that but i do have a line of credit against my house because the house is paid off so starting up businesses flipping houses is very expensive so a couple of questions should i move out of the house and start my own i'm 30 years old start my own life without that and is it okay to use the heal off against the house to start flipping houses to do especially your expensive business to get started okay there's a lot going on here um yeah the first thing is it sounds like morally it's not your house did she give it to you or did she just deed it to you for her she did it to me for her indeed for now she says it eventually i don't care get it back to her you've got all the liability and all the problems and none of the benefits right just put it just quit claiming to eat it right back to her and let her have her own house and then you go about your business and go about your life uh which means you don't have any money right right and you don't have any way to borrow a home equity loan on a house you don't own right correct yeah which you don't need to be leveraging that house especially if it's you don't need to be leveraging it period but you especially don't want to do it if it's really not yours morally because morally it's her house that's what we're saying right okay so we clean that part up now let's go back to the other part about flipping houses this is what i did i used to buy foreclosure real estate in my 20s and i would borrow the money to do it and i would flip the house and make a profit and i would borrow the money to buy rental properties as well and ho in some cases hold them sometimes it took a lot longer to flip than i thought um and i've done in excess of 2000 real estate deals in my life so i've actually done for a living what you're talking about doing so this is not some theory i actually did it right and um uh so and i went broke doing it uh because i had borrowed three million dollars after it was all said and done and i had about four million dollars worth of real estate and the bank uh got sold to another bank and they called our notes and we spent the next two and a half years of our life selling everything to to try to beat the foreclosures we became a foreclosure after we used to buy foreclosures and we lost everything by the time i was 28 had to start over that's the dave ramsey story so all of that to say uh you can make money flipping houses in the in a market as hot as this it's very difficult because the trick is buying it at a deal in order to sell it at retail you buy it below wholesale and you sell it at retail like you do anything in business right and um and so that's very very difficult in a white hot market where anything that comes on the market no matter how bad how ugly or how messed up it is is bringing premium price in two days and so it's just really really hard to find a good deal on a property in a market like this so that's that's uh uh thing number one thing number two is it's the the only way i would suggest you do this is with cash which means you've got some savings to do saving to do with your career before you move on to buying your first property with cash and if you flip with cash and in a market that's not quite hot it can be done it's very difficult it's a lot more difficult than they tell you at the real estate seminar where they where they charge you three thousand dollars to learn how to do it yeah kyle i want to know are you planning to do a lot of the work yourself are you you consider yourself a carpenter a handyman fix it upper guy yeah i am since i'm still kidding by being in the construction industry is my passion as well today are you currently what is okay i'm sorry i have a hard time understanding are you currently employed in the construction industry uh not in the residential industry next okay well i gotta tell you uh if it's me i'm gonna start a renovation uh handyman business because you need to come up with the extra cash yes right so i'd start doing that let me tell you why uh not only is it very practical for you to make extra money to be able to save up to buy your first house and cash flow something really small you're going to get the experience that you need to do it for yourself and somebody else is paying you to do it and let me tell you something in charlotte north carolina i would say dave that's very similar to nashville as far as market size economy you start doing bathrooms a additions over garages someone else is paying you you can make some really really good money and again get great experience learn who the subs are because all of those subs uh those relationships and those experiences and that money all has to come together i'd start a small business grow it slow cash just cash cash cash and just put it away put it away put it away and before you know it you know two three years from now you're doing something you really love you might be doing it full time now and then you put away the money to buy that first house and flip i think that's the best path forward dave because he enjoys it number one number two he gets the experience he needs someone else is paying for it i love it so kyle the rule is this and and i broke the rule and you will break the rule when you use borrowed money to buy a property you're not as careful and you pay more if you're putting money that you've saved over three years i've been saving like crazy and i've got to go buy this house and i start thinking about i wonder what that roof is going to cost i got to put a roof on it you're going to know what that roof is going to cost before you buy the property and you're going to know what the value of that property is after rehab you're not going to guess yeah and you're not going to get in a hurry and you're not going to get sucked into a bad deal when you're spending real money not borrowed money borrowed money makes people sloppy they don't pay attention and they do worse deals and that's how people go broke the number of people who use borrowed money to flip houses and are still doing it after a decade is almost zero almost every one of them go broke during that decade it just doesn't work so if you want to do flips you can do it it's very hard it takes a lot of work to find the deals it won't work hardly at all in a market like this and you should do it with cash now if you don't follow that you're gonna get to learn the lesson the hard way like i did this is the ramsey show [Applause] [Music] [Applause] [Music] [Applause] [Music] stop paying your overpriced wireless provider and switch to puretalk they use the same network as the larger providers for much less for just 30 a month get unlimited talk text and six gigs of data with no contract the average family saves over seventy dollars a month by switching to pure top just go to puretalk.com and enter the promo code ramsey to save 50 off your first month pure talk simply smarter wireless [Applause] [Music] the cost of college has gotten real for really serious dollars especially four-year universities you need a plan for college scholarships and financial aid are a good plan they'll get you there they're a bonus but saving money for your kids college in an esa a 529 this is what parents do they want to send their kids cool pretty simple so you need to check it out you need to talk with a financial expert get an advisor in your corner to help you get your 529 set up if you want to do that you can get with one of our smart vester pros they are our vetted smart vester pros we've added them we go through the they're trustworthy they're going to help you and they're going to have the heart of a teacher when they sit down with you text the word invest 233 789 invest 233789 david is in albuquerque hi david welcome to the ramsey show hey dave thanks so much for taking my call sure what's up so my fiance and i we've both been blessed to have parents that espouse the same principles that you teach every day both of our parents grew up because my dad would say uh didn't make enough money to be poor and so when we grew up we grew up very frugal so now that my fiance and i have graduated college and don't have any student loans or anything like that we know what works but emotionally we sort of have this itch to get some of the things that some of the finer things that we didn't have growing up so we know what to do mentally but our our emotions are kind of you know bringing us to the mercedes-benz website and looking at brand new cars so what's your advice as far as getting uh ourselves to motivate each other to stay focused on that same path that our parents were on hmm how old are you guys i'm 30 and my fiance is 25. when you're getting married september 18th congratulations that's wonderful thank you well um the bible says where there is no vision the people perish would you agree with me that spending money that you don't have and getting yourself deeply in debt so that you're broke would be a dumb idea absolutely okay so to have a vision to not do that would be a smart idea so we need a vision for how we want our lives to look and then is the act are the actions that we're taking congruent with how we want our life to look and so buying a car you can't afford on payments is not going to give you the life that you desire so what steps what things are do i avoid and what things do i do that gives me the life that i want that's a vision does that make sense and so you know let me let me kind of paint it out in other words you say okay we're 30 uh and 25 when you're 40 i want to be an everyday baby steps millionaire i want to have x number of dollars in my 401k i want to be able to go on some nice trips i want to be able to buy pay for dinner at a nice restaurant uh and and i want to have an emergency fund in place and i don't want to have any debt if you lay those things out and say that's my 10-year goal then when you get ready to do something you say is this adding to the goal or taking away from the goal right but if you just wander around in our society you will end up buying crap you can't afford with money you don't have to impress people you don't really like if you don't have a plan right right and again it's more of an emotional thing because again you know both our parents are doing very well and we see the fruits of that but again you know we just we just feel sort of this urge to get there a little bit quicker than we know it's gonna take adults devise a plan and follow it children do what feels good yeah and you've mentioned the word emotional twice and and so what dave's trying to help you see is big picture see your mom and dad struggled mightily you said yourself when you grew up uh they had nothing and you asked about motivation what dave just laid out for you david i want to make sure you caught what he said okay you got to have a vision for a future and that'll take care of the motivation so he was he was describing your where and your why where do you want to end up why do you want to end up there that's what he's laying out for you well you get clear on that then the motivation to sacrifice to withhold what do you make is there how much do you make uh combined we make about 140 000. okay goodness yeah okay so if you had an emergency fund and you had no debt and you were buying your home you had a 15-year fixed and you were paying it off and you were saving towards retirement and you wanted to spend two hundred fifty dollars to go out to eat one night you could do that easily in a really nice nice restaurant couldn't you yes sir okay so i'm not prescribing that you have no life i'm prescribing you have a life of intentionality not impulse and so if you act like a child you're going to act like most people and operate on impulse but sharon and i do all kinds of really nice things david and it's not because i make a lot of money although i do it's because i make a lot of money and every one of those dollars has a freaking assignment sometimes the assignment is generosity sometimes the assignment is dave wants to have some fun or sharon wants to have some fun sometimes the assignment is uh future investing uh and but every you know it's all just on a plan and uh you know you can have a wonderful life meanwhile building a wonderful life yeah but again dave the key word you just said there was plan you got a plan that informs the name on every dollar and people want to know oh i can't get motivated can't get motivated well let me tell you something you're not motivated because you don't have a very clear goal a clear direction motive motive motive is the root word there you gotta really lock in on that so what's that desired future when you both get really clear on that then we can go oh okay i know i really want a new mercedes but that's not going to get me where i want to go and so you're motivated to sacrifice you're motivated to be when i get there i'll buy a new mercedes yes but that's right there is the key point yeah i mean but but right now i don't need to even be on the website because it just disturbs my brain well that's another good point dave if i stare at you know what if you're drunk you don't need to go to bars right but i don't need to be looking at 5 million homes all day long because if i do i'll start to develop an appetite for that but i can't do it not not today so that next book you might there you go you know but that's a really good point so hey rachel's new book know yourself know your money talks about talks about your family that you grew up in and how it affects these decisions and you kind of mentioned that a little bit i'm going to send you a copy of that and we have a fabulous know yourself money assessment for couples and you guys i'm going to give you one of those as well i'm going to sign you up for that and uh you guys take that as part of your pre-marriage counseling it'll print out this fabulous thing showing everything your fiance thinks about money the way they're going at this and the way you're going at it and i think it'll add a lot of value to this discussion for you because i think what's happening is is that um about the time one of you is being wise and mature the other one's not and then you swap places and uh you gotta both get on the plan and just go look wisdom and maturity does not mean no fun yeah it means higher quality fun it's a really good point i'm wondering dave if this sweet young couple they watch their parents struggle and sacrifice and now they're good but he said something in the conversation he said we want to get there faster i wonder if there's a little bit of fear that oh i don't want to live it out as long as my mama did we want to get there we want to do better than mom and dad i wonder if that's driving some of this yeah do you see that with young people i'll help you with this you're blink you're there isn't that the truth you blink you're there it's not it's you're going to have plenty and you know and all along yeah at different stages with different incomes and different net worths and different levels of investing and different levels of generosity sharon and i have had the ability to enjoy money all along yeah but you don't you know if you're making 50 dollars he's making a hundred and forty thousand you don't go buy a uh a 12 million dollar house you know and so there's no sense on being on the website there's no sense watching the tv shows about twelve million dollar housing truth i'm doing good no it doesn't do any good it's counterproductive to what your goal is now you may be in a place someday that you have a house like that but not right now yeah this is the ramsey show [Music] [Music] [Music] [Music] [Music] [Applause] [Music] in the lobby of ramsey solutions on the debt free stage brad and jamie are with us hey guys how are you doing great how are you doing better than we deserve welcome good to have you guys how much debt have you guys paid off 196 302 in 27 months love it good for you where do you guys live memphis north of memphis cool okay and uh your range of income during that 27 months we started at 137 ended at 166. good what do y'all do for a living we both work in the va okay cool well it's great to have you guys what kind of debt was the 196 000 uh well we were kind of normal dave we had bit of everything we had the we had lawn mowers for my landscaping business we had tsp loan we had credit cards uh car rv all of it wow yes two hundred thousand dollars worth yeah normal yes normal sucks unfortunately yeah wow so what in the world happened that lit you guys up i mean you must have sold a bunch of stuff to do that in 27 months uh yes and no um uh what got us started we actually heard about you probably 15 years ago and we waited and we actually got debt free while we were in the air force and we never got past baby step two we did that my behavior didn't change i wanted to live and enjoy the money right now i didn't want to have to be on a budget and two hundred thousand dollars in debt later i i used a budget the wrong way uh jamie gave me the budget many years ago and i started using it to say okay this is how much is left at the end of the month so i can afford that payment and when it got down to where it was less than 100 or 200 i said okay we can't afford that next thing and it got to where we were making um too much money to be struggling like that we grew up both of us grew up where we didn't have much and god blessed us with such a large income and we were squandering it we were not being good stewards and it started to really hit me hard that god had blessed us with all this income and we weren't living right and we had gone to get some tires from our motorcycle on that was also a motorcycle and uh my son needed a pair of shoes and when we were going down there we said we have too much debt we're not going to use this credit card we're going down here and doing this in cash and that was kind of the start of the journey and when i couldn't afford in cash to buy them shoes i it just i i snapped i cracked because this is this is insane i make this much money i can't buy my son's shoes and we got back from that trip and uh about a week later my co-worker actually he brought you up on youtube i was like oh i know who that is and he started listening to it and i just got intense it's like i went crazy i started listening to every single bit of every ramsey solution every other personality and and it got me fired up uh-oh jamie what did he do he went into overdrive to completely gazelle intense uh did he bring you with him he did i tried struggling sometimes i just wanted to see the attitude change i wanted to see the behavior change and it took a while for me to warm up because i had seen him yeah we can afford this yes work on it we can do this and i was hesitant i'm like i'll support him but i'm like i want to see it change i want the behavior change and uh i knew there was a light at the end of the tunnel but it was still so dark so dark so desperate what all did you guys sell we tried to sell my subaru and we did we were able to downgrade my car i now have a 2010 honda civic crv crv not bad and uh it gets me from point a to point b i absolutely love my little roller skate as we call it and that was the biggest thing did you sell any of his toys like his motorcycle no no did you sell the camper we tried we tried twice to sell the camper and it stayed on the lot for 90 days they didn't understand why i wouldn't sell and i just kind of checked it up as you know what god wants me to just work hard and and take care of this thing but it was insane though once we were doing it god's way and we were i was living on the budget and sticking with it and godliness with contentment is great gain and i learned a whole new meaning of that verse and that's become like that's date of my head this whole time um it's like money just starts showing up everywhere it was it took five years for my medical retirement to show up for the air force and it was three years prior to this for three and a half years and during this shortly after we got this started all of a sudden that showed up i'll be lump sum of money come in i mean i think there was like thirteen thousand dollars and just things like that just kept pattern of course kovid uh that we felt bad because it didn't hurt us we ended up making all kinds extra money we got extra incentive paid because of that she got a job because of it she works with me now in i.t oh yeah look i was curious how did you go from 137 to 166. that's a good jump that was mostly me uh i was working out of one position and uh i've always wanted to be an i.t i was in i.t for the military and uh kovit happened and there was special there was special uh incentives but it had to be temporary so i left a permanent position that was terrifying a temporary position i.t and before the temporary position became non-existent there was a permanent that opened up and i applied wow leap of faith god blessed us that's correct that's so fun you guys how's it feel now that you're done unreal was it worth it oh yeah definitely i i i i if there was some way that i could just gr drag somebody kicking the screen but i know i can't you've been trying to do that for 35 years now but i tell everybody i mean do you have no idea how much that it was like it was i didn't realize how much of a not not like a noose around my neck around our necks it was just the debt is horrible and the minute that we paid off the last debt it was like that bondage just gone what was the very first one you paid off the little one actually it was one of my mowers it was a walk behind 36 inch full hydrostatic nice mower that i got from my landscaping company that one and the next one off almost within the first two months when our taxes came in okay all right so boom boom and then you kind of got that got you going yes yes yeah it's getting a little progress it helps it got hard though yeah it got real 196 000 i guess so well we actually we kind of topped off a lot higher than that because overtime i at one point did a hundred hours of overtime within a two week period whoa and i've that that about killed me i said god let me see if i can do it and there was people praying for me and it was only by god's grace that i had the strength because i was at work four o'clock in the morning left work 8 30 at night home by 9 30 back up again at 3 o'clock in the morning to get back to work again what was the direct i want people to hear this because they just heard you describe how hard it was what was the direct benefit coming out of that two-week period uh more than quadrupled with my paycheck yeah i mean i was blessed with the fact that we just had blanket over time because of covert because of i was doing a big project upgrading our com closets so let me tell you there's a lot of com closets in that uh hospital that have tears on the floor because it was there's a reason why i wanted to come here and do this because i'm not very an open person i don't like to be out in public a lot but somebody else needed to hear this yeah they they because there were so many debt free screams that sent me into tears i heard their numbers close to mine i said i can do this and it was halfway through and it was just painful so painful so tiring that's great that's good stuff right there so proud of you so well done excellent excellent job you brought the kiddos what are their names and ages this is michaela this is elisha all right it's good to have all of you we've got a copy of the legacy journey for you that is definitely the next step in your process now you've changed your life now you change your legacy well done very well done and a copy of the total money makeover for you to give away and get somebody else going on this so good stuff all right brad and jamie mikayla and elisha 190 thousand dollars paid off in 27 months two and a half years making 137 the 166. did it man game on overtime whatever it took knocked it out count it down let's hear a debt-free scream three two one we're dead free [Applause] that's how it's done man i love it very well done very well done this is the ramsay show [Music] [Music] our scripture today psalms 145 16-17 you open your hand you satisfy the desire of every living thing the lord is righteous in all his ways and kind in his works my friend kathy said nearly every moment of every day we have the opportunity to give something to someone else our time our love and our resources our question today comes from blinds.com they have a 100 satisfaction guarantee means even if you mismeasure you pick the wrong color they'll 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 this is a great american company if you need window blinds they're the number one seller on the internet check these guys out i've done business with them at incredibleblinds.com today's question comes from steve in massachusetts i'd love to move into a management position and i've been working with my superiors to gain additional training and certification to be the best candidate for this position i'm cautiously optimistic about this opportunity but they have a history of working with employees to move up the ladder but never actually hiring them for the position i know nothing is guaranteed but how do i navigate a conversation where i bring the subject up i don't want to jeopardize any progress i have made but i also want to address this concern you know steve i don't like you bringing this up i don't know where you're getting your facts i don't know if you've been able to do your own research to see well they'll talk a good game but they never actually move anybody up and regardless of the scenario about how you've come to this conclusion talking to them about being concerned that they're not going to promote you is not going to actually get you the opportunity to get promoted you have one way to do this and that is do all the things that you're doing you're getting the additional training the additional certification you're talking to leadership about it the only thing i would add to this is get it in writing and say hey if i do these things will i be in a place where i've got the best chance to win the position if they say yes you do that if they keep kicking the can down the road you know that your suspicions or that the rumors are in fact true and you've now hit a lid at this organization and then you begin to look for something else to move on to but to have a conversation about concerns about something that may or may not happen it's not going to help you go for it if you don't get the shot then you decide to move on yeah there's not really a way to say to your leader hey i've heard you don't have integrity and to have that help you with promotion yeah that's probably not going to work out no robert is in mozambique hey robert how are you hey dave thanks for taking my call sure what's up uh so i work for a company and all of our jobs are outside of the u.s because we spend all of our time outside the u.s all of our income is tax-free so i qualify for the 3330 tax exempt where i don't have to pay any federal taxes uh for the year so last year on paper i made about 12 thousand dollars in actuality i took home about ninety thousand um but i want to start investing in the 401 thrift that my company offers the 19 500 cap will i find any penalties or anything if i invest more than what i actually claim on paper and should i choose the roth or traditional so that because of the tax situation you can invest up to your earned income into a roth or into a traditional or into the 401k but if you do if you're showing an earned income on a u.s tax return of 12 000 that is your cap gotcha yeah you can't put more into a 401k than you got paid okay but the so the the tax papers show that i made the 90 000 but because of the exemption for working out of the u.s the actual adjusted well it may be that they count that earned income you need to check with a tax advisor in the u.s then to find out you could check with one of our endorsed local providers that does taxes but base if they're counting that as earned income even though it's not taxable income it could be earned income and not taxable income but uh for instance you cannot give you an example if you if you live on disability income uh the irs for tax for purposes of putting money into an uh retirement account that does not count as earned income if you have uh investment income that you live on that is not earned income for purposes of doing uh an ira and so if you've got a million dollars in the in mutual funds and you pull a hundred thousand dollars off the investment every year but you don't do any you don't have any income that you earn from a job or anything else then you cannot do a retirement plan on investment income it has to be on earned income so it may be the 33 30 incomes considered earned income and then you can max out and if that's the case it certainly would be sorry i don't know the answer to that i'm not a tax guy but check with one of our endorsed local providers at ramseysolutions.com and they'll help you walk through that sarah is in new york city hi sarah welcome to the ramsey show hi thank you so much for taking my call i'm super excited to be on the show today sure um so yeah i am a recent graduate of a master's program and graduating with about 58 000 in student loan debt um despite the debt you know luckily i was able to uh increase my my income through like a new job like substantially um however with this increased income i just feel like there's a lot of upcoming things i'm thinking about for example i'm getting married i want to buy a car i need to buy a house pay back my student loan debt and i'm just having a hard time really trying to figure out how to balance like the new income i'll be making we'll see cool what will you be making financial um so my base will be about 165 and i'll be getting stock and things like that so my total will be to 240. good for you way to go excellent when are you getting married um right now it's set for june 4 so that next summer a year okay what does he make he he's in real estate so it fluctuates last year he made 160 and now it fluctuates though cool well we teach a process called the baby steps and it's the order of attack that is the shortest distance between where you are and wealth okay and we've done it for 30 years and millions and millions of people have used it to become millionaires so it really does work uh it's not magic it's hard work but um the first thing you do save a thousand dollars that's kind of a no-brainer in your situation and the second thing is you work to become debt-free as fast as possible so making 240 how fast we're going to pay off uh 58 000 in debt really really freaking fast before you talk about buying a house um and you're you're gonna do that in just a few months i mean because you're used to living on nothing that's true yeah now do you have a car no i don't not at all yeah so like the only uh debt i have is from the student loan oh but you're okay you're in new york city so uh yeah exactly where are you leaving the city i'm thinking of moving elsewhere to sort of cut down on the rent i've been paying um as a student but it's still pretty much up in the air but your career is there yeah my my career is here but i can move to jersey or like somewhere else i got you i would do that dave i if you can move to jersey and save on rent and you're gonna write i would use public transportation absolutely that's what you've been doing all these years and that's not a problem there i mean you you can't you just catch the subway to get around don't you yep exactly perfect you're right if you're in jersey you can ride the train in or wherever i mean and it's it's perfectly fine i would do that for a short period of time and let's get the debt cleaned up and get you an emergency fund of three to six months saved and then i would save up and buy a car and then i'd start saving towards the house and somewhere in there we've got to stop and put enough money in the bank to pay for the wedding yeah i think the biggest issue is like for example like my my family like i don't come from a family with a lot of money so when it comes to the wedding will probably be much pretty much be me and my fiance covering the whole cost yeah so how much are you going to spend on the wedding as of right now like i i want to stay under 15 000. and i i think we that's a comfortable number but it's still something okay let's pretend for a second let's pretend for a second let's pretend you make 240 000 and you need 15 for a car and 15 for a wedding and 60 to pay off student loan debt that's 120. you should do this and that's six months of your income yeah you have to live out of that and so but the point is by next june you should have accomplished all of those through all of those goals it would be very reasonable to have 120 000 out of 240 in one year wouldn't it yes so that's that's where you got to go that's the way to go ah that puts us hour the dave ramsey's showing or the ramsay show in the books we'll be back with you 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 jesus you

Channel: The Ramsey Show - Full Episodes

Views: 33,509

Rating: 4.75 out of 5

Keywords: dave ramsay live, dave ramsey, dave ramsey channel, dave ramsey live, dave ramsey live show, dave ramsey live stream, dave ramsey podcast, dave ramsey radio show, dave ramsey show, dave ramsey show full show, dave ramsey show live, ramsey, ramsey solutions, the dave ramsey show, the dave ramsey show live

Id: 2YJEdvRwbQc

Length: 121min 55sec (7315 seconds)

Published: Mon Jun 14 2021