Can You Build Wealth On A Modest Salary?

[Music] live from the headquarters of Ramsay Solutions broadcasting from the PODS moving and storage Studios it's the Ramsay show where we help people build wealth do work that they love and create actual amazing relationships thank you for joining us America I'm Dave Ramsey Ken Coleman Ramsey personality number one best-selling author of the book paycheck to purpose host of the Ken Coleman show where he talks about jobs and careers and your life about that he's with me today as a co-host so we'll particularly dive into those subjects if you want to the phone number triple eight eight two five five two two five you jump in we'll talk about your life and your money Joseph is in Indianapolis hi Joseph welcome to the Ramsey Show Hi how are you better than I deserve what's up well I had a pretty a simple question um you know I I always hear you know two sides of the coin I hear sometimes people say you should make the most money that you can and um you know get a job that just pays the most when I've heard other people say that it's not about what you make it's about how you live your life your lifestyle and what you can say my guess my question is is it still possible to live a wealthy or successful life if say you're only bringing in maybe thirty five thousand dollars annually well it depends on how you define wealth you know um I will tell you that you can absolutely be successful I'll ask you a question do you believe Mother Teresa was successful yes why was Mother Teresa successful in your mind she did a lot of good you know and and uh and always try to do her best yeah see the the reason I ask it that way is because she that was her role it doesn't mean it's your role doesn't mean we all have to go to Calcutta but Mother Teresa chose to serve to live in that way that was her specific design her role her time in history so success answer the success question that way success to me is not just about work results successes uh what am I relationally I have a relational purpose as a husband and a father a son a brother a friend a co-worker an employee I've got some relationship purpose in my life but I also have professional purpose so that's the success thing now Building Wealth uh again uh wealth to me is not just Financial wealth but you can we've got teachers that are the average salary not average the median right now is about sixty one thousand dollars in the United States and we have a lot of millionaires who have been teachers and they've lived on less they've chosen to define success differently and as a result they've put money away and they've saved they've lived like no one else and so now they live and give like no one else so uh 35 000 does limit the speed and rate by which you can stack and save money and I think you can make more but but theoretically yes you can be successful and build wealth Earl Nightingale said the definition of success is the progressive realization of a worthy goal or ideal now so here's the problem with your question the framing of your question uh you say two sides of a coin it's not two sides of the coin uh they're two possible outcomes okay uh either I don't make a lot of money and I do something that I'm fulfilled in and I'm successful but I'm ha but I struggle financially or I make a lot of money doing something I hate and I don't struggle financially those aren't the two only two possible outcomes there's a third one how about I do something I love that really benefits Mankind and I make a huge pile of money why do you have to make less to be satisfied why do you have to make less for it to have meaning you don't uh that that's a that's a fatalistic approach to this whole concept and so um so here's the point if you make thirty five thousand dollars a year and that's all you ever make and you never get a raise well you suck you should get a raise you should have some Progressive realization you should proc you should have progress you should get better at what you're doing and make more money at least in your chosen field so the idea that I have to you know somehow live at the bottom rungs of the socio-economic ladder in order to be a worthy person or in order to be doing good works is simply not true it's simply not true so I choose none of the above I choose do something very worthy and make a lot of money I choose that way that's the one I want to choose but but is that the only definition of success no I mean we've pre-established in the conversation Mother Teresa successful says a progressive realization of a worthy goal or ideal oh by the way she was the biggest and largest scale of her type that's right I mean the number of hungry people the number of people that were ministered to was massive that's right but not commensurate to the amount of money she made or she's making money that's right took of our poverty that's true she didn't make any money and she came from a wealthy family that's exactly right and abandoned The Inheritance in order to become a nun so you know so so yes she's successful and uh absolutely never gonna diss someone that chooses to do that but there's this narrative that is running around in America today that Ken and I are both fighting against all the time on the career side that says um well I if I work for a non-profit and make half of what I'm worth that somehow I'm Holier no that was just a dumb choice you're not Holier or well you don't really mean that as a dumb choice you don't mean that if you choose to work for a non-profit because you care deeply about that work and you could take the same skill set and and make double in the corporate world but you choose to do it in that space because you love it and you apply that to your life and you change your lifestyle that's not dumb but that's also not saying that it's that what is dumb is the idea that the only way that you can do something that is of a higher calling and that has meaning is to make no money I agree that is just not true 100 agree I'm living proof that that's not true that's right I've helped millions and millions of people and I made a lot of money right making a lot of money was not the main goal helping millions of people and and but that you know I'm just I'm but we're also citing we have done Ramsay Solutions at Dave's urging the largest study ever of net worth millionaires the fourth largest group are School teachers so they're not dumb third largest yeah third I apologize thirdly but the point here is my point you didn't mean what I mean as the idea is dumb that you have to make less for it to have meaning yeah it's incomplete it's it's you're right it's not accurate it's a false narrative yeah and so that's what I want to push back against and if you make 35 000 if you make the same exact amount of money unless your Mother Teresa you took about poverty uh if you're if you're in a career field and you make exactly the same for 30 years that by definition means you are not progressing yeah there should be you're not getting better that's not okay either yeah you need to be getting better you need to be better in your service to humanity better in the level of meaning that you're getting from the work better in Your Excellence better in the scale of what you're doing if helping three stray dogs is a good thing then helping 3 000 of them is a better thing that's right okay so I mean whatever it is you're doing that you know you should be getting better at it you should be progressively yes the progressive realization of a worthy goal or ideal it's a really good definition so one of the best cool question Cool question and a good discussion but uh don't let people sell you this idea that that the only thing that is is good it is unproductive quite the contrary this is the Ramsay show foreign [Music] [Applause] [Music] [Applause] [Music] hey Dr John deloney here I'm a huge fan of both meditation and prayer and good mental health includes slowing down gaining control of your thoughts and 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hit the default button and just Coast you know what on purpose is in money it's learning to do a budget the every dollar budgeting app will do that you can sit down and start using that Jade warshaw did a webinar today that was free on how to do a budget including an irregular income 10 000 people showed up for that webinar today thank you wow so we'll do it again Rachel Cruz is going to do one of these webinars teaching you how to do a budget and uh Rachel's been teaching every dollar for many years and The Irregular income thing and unpredictable income and how to work the baby steps into your budget and all that how to work with your spouse on a budget Rachel's going to cover every bit of that Tuesday August 15th that'll be this coming Tuesday at 12 30 p.m you can sign up for free for the webinar and Rachel's goal of course is to draw more people than Jade so this is how this works around Ramsay I'm just saying so check it out everydollar.com budgeting everydollar.com budgeting and you're actually allowed to come to more than one of these if you want guess what George will be doing one later so hey everydollar.com budgeting sign up for the free webinar this coming Tuesday August 15th with Rachel Cruz Elizabeth is in Boston hi Elizabeth how are you I'm good how are you thanks for taking my call Dave sure what's up um yeah so I am wondering I found you last week um and I am on baby step two and I am wondering if I should be buying life insurance beforehand or if I should be waiting to after baby step two I do have a 25 000 company-funded life insurance policy I don't know if that's good enough or if I should be buying one um that's you know more for the future if you have a life insurance need it is not a baby step it's a necessity in your budget yep so you just put it in there as soon as possible now do you have children no I am single and no children okay do you have how much debt do you have I have 44 000 and 700 in debt okay you don't have a lot of need for life insurance yeah because no one is dependent upon your income 25 000 would take care of your final expenses like for instance your parents or would have a horrible tragedy on their hands and have to cover the burial and that kind of stuff 25k would take care of that it would clean up a few of these debts they'd sell off your stuff uh I think you're fine right now I wouldn't I don't think you need to be a bunch of life insurance even if you had a hundred thousand dollars in the bank and no debt I I particularly then I wouldn't uh go buy life insurance but I you know the big thing life insurance is for is if you're leaving someone behind that is dependent financially on your income okay yeah so you would wait until I wouldn't buy it at all I wouldn't buy it at all in your situation okay that makes sense no matter what I mean and now again you get married you have two little kids yeah if they're your husband then is dependent upon your income to take care of these these little kids yeah absolutely then we start talking about life insurance and we go to xanderinsurance.com and we uh we always talk about A good rule of thumb in a family situation like that is to have 10 to 12 times your income on you 10 to 12 times your spouse's income on them 15 to 20 year level term insurance never buy anything but term insurance is the way to go and that covers you until you don't uh uh until you have so much money and no debt that you don't have a need for insurance called self-insured Stacy and I have been married just a couple of years when she went to work for Dave and I remember seeing through Financial Peace University as a spouse and I remember this lesson when you covered it and I had not gotten life insurance to that point and I want people to hear this isn't just life insurance this is peace of mind I slept better that night knowing that if anything happened to me Stacy was going to be fine and it's just that I want people to hear that it really is peace of mind to know that you're not leaving anything but grief uh behind don't buy too much because then you can't sleep at night because you have to stay awake to make sure that she that was a crucial point in the teaching as well I did it to the book I did it to the 10 times 10 times 10 to 12 times yeah you don't need 20 times right we're not trying to leave people multimedia better off with you being gone it's just a dangerous Trend right you know so there we go open phone's a triple eight eight two five five two two five James is in Phoenix hi James how are you hey dude Ken how you guys doing today better than we deserve what's up well my question to you Dave is I have two cars that I owe a lot of money on and I'm upside down and I need to get rid of them so I can start paying off that I am surrounding in debt it's hard okay car number one is you oh what on card number one is uh 30 000 or excuse me thirty one thousand a little over thirty one thousand okay and what's it worth uh probably about 18 to 20. where'd you get that number uh I actually got it on the blue the.com Kelly Blue Book kellybluebook.com okay and is that a trade-in value uh honestly I didn't know I just got that's the number that they gave me I didn't really look into it yeah you need to look into it because the difference in trading and Private Sales five grand in this situation it makes a lot of difference okay so because what is that car uh it's a Volkswagen T1 it's uh what year uh 2019 okay did you trade a negative equity car into that deal uh we traded a a car that was paid off that just had repeat it was actually a older T1 and I mean you didn't you didn't trade a hole into this this whole so that 18 000 is wrong then okay good good okay so you didn't have like a five thousand dollar hole you were in on the other car it was paid off so it was a positive in the trade yes sir okay all right so uh yeah from 2019 that that Volkswagen did not go down that far okay so it's probably 25 000 car 24 000 car something like that so you need seven Grand to get out of that who do you owe that money to who's the bank uh Credit Union First Credit Union okay what about the next car next car is a Jeep Renegade 2019. and I owe 30 a little over 30 000 on it and what's it supposedly worth I have not checked it yet okay all right so 2019 was a bad year for you on cars pretty much yeah okay who's that loan with same same company first good good and this is Credit Union in your town yes sir good Phoenix Arizona good okay so let's pretend you're seven thousand bucks uh 7 500 upside down on each of them that's fifteen thousand dollars in a hole we are in correct yes sir and you have sixty thousand dollars worth of good debt and 15 000 of it's not secured because there's not enough car value to cover it right yes so you need to go in person to the credit union sit down with a credit union manager and show them what you've got and here's what you say to him or her you have a 45 you have forty five thousand dollars worth of collateral so effectively you have a fifteen thousand dollar unsecured loan Mr Credit Union manager you following me here because you owe 60. the assets aren't worth but about 45 give or take so what I would like to propose to you is that we sell both of these cars and reduce the loan here by as much as the cars bring a hundred percent of what the cars bring is going to come into you and I'm going to sign a note for the difference so when we're finished you'll still have an unsecured note but you'll have someone who's much better able to pay it because it's a much smaller loan you understand the logic that you're pitching to this Credit Union manager I'm writing it down now yeah they already have a unsecured note we're just admitting it that's all we're trying to get them to do and it reduces your debt from 60 down to 15 give or take in this scenario and then you're going to get you a couple thousand dollar garage sale cars to drive for a little while which is going to be a big old emotional punch in the nose from a thirty thousand dollar car to a one thousand dollar car you're gonna feel like a poor person well you are so we're trying to not be poor anymore that's the idea so we're trying to reset that this is the Ramsey Show foreign [Music] over your head with student loans and tired of getting calls from collection agencies if private student loan debt is taking away your financial piece and you don't see any way out you need why refi they're not a debt settlement company and they're not connected to a bank why refi refinances defaulted private student loans that other places won't touch and gives you a custom loan built for you based on your ability to pay so when you refinance your private student loan debt with why refi you'll have a payment you can afford with a low fixed interest rate you couldn't get anywhere else to help you stick to your budget and work the debt snowball and you can save thousands of dollars to learn more about this custom refinancing option and a lump sum payoff option you could qualify for after 24 months call 8442 Ramsey or go to yrefi.com Ramsay [Music] [Applause] [Music] Ken Coleman Ramsey personality is my co-host today I'm Dave Ramsey your host Tristan is with us in Albany New York hi Tristan welcome to the Ramsey Show hello so excited to speak with you you too what's up so I was calling because I want to know or maybe get any advice on how to use the money that I have saved to make me more money rather than just letting it put in a savings account and do nothing good question how much money have you saved Tristan so I I have money kind of um I've been trying in the last couple months to put it in different places so um if I just looked at all of the money that I have that is free to be put wherever I please um it's 68 000 good for you okay and what do you make uh I don't make much actually I'm I'm still in graduate school so um what are you studying I I study mathematics yeah what are you gonna do well that's another question so I'm kind of at a Crossroads with my career and what I want to do what is the grad school program mathematics you're going to get a PhD in math or math yes sir yeah a PhD in math but uh I I'm debating on whether I'm I'm going to continue that or just finish with a Masters or not um so that's kind of where I'm at a Crossroads but um I have I've been saving a lot of money and uh where's the money coming from so I as a part of a graduate student I I get like a salary basically it's 23 000 for this year but I do summer work uh for the Air Force um which was seventeen thousand dollars um and before as an undergrad I I have worked the whole time so I've been working and saving and that's where the money has been coming from all right so quick question before we dive into the money piece and and I can talk to you about the work piece after that but when you say I'm considering not finishing what's that timeline look like how much do you have left where you're deciding between the doctorate versus to the Masters well how far along are you yes so if I finish my masters it'll be one more year and then I can start my career uh if it's my doctorate it it's not really a set time it could take uh three to five more years in this case is the difference in the doctorate and the master is not just a dissertation why would that take three to five years write your dissertation work you more material outside of what is taught in classes and that you have to learn enough to get a dissertation done yes sir yeah the difference is do I want to be a professional student or do I want to get my PhD exactly so get your PhD go do the dissertation it does not take three to five years it takes 12 months get it done but what happens is people drag their butt around that's why I was asking about that and don't I you know you're you're that close depending on what you want to do with your life if you want to teach right in the in the in the uh at the University level you're going to need the PhD right right but I don't think you're sure if you're going to be a financial analyst on Wall Street nobody gives a crap between the two that's yeah that's that's where I I think I've had this dream of getting a doctorate because it's an accomplishment and it's something that I can say that I did and worked hard for well Dr Tristan I mean come on buddy I mean yeah but but you need to have a reason to you need to have a reason to do it because you're running out of steam I can hear it so uh yeah you know and the only reason to do it is if Ken Coleman says okay in this career field that's right you're gonna need a PhD yeah but in that career field you're not then don't then I wouldn't screw with it I really wouldn't and my guess is Tristan tell me if I'm wrong my guess is the fields that require the PHD aren't they aren't the dinner bell for you you're not excited about them is that true or false he uh that's that's true that's that's true I I think I realized how much work it is in the uh trade-off for the amount of pay exactly and and I just said what am I doing kind of so that's what you always measure with academics other than the the benefit of just having you know completed something the accomplishment of it the Dr in front of your name all that stuff but the the the the real benefit of academics the primary benefit is what how does it change your income situation so whatever the academic thing is so yeah it's from paycheck to purposes Ken's book we will send you a copy so when we finish talking we'll put you on hold and uh Austin the gang in the booth will pick that up and get get that for you now for savings there's three things philosophically you can do with savings number one you can have a pile of money set aside to cover for emergencies and you should a good rule of thumb is three to six months of expenses as an emergency fund number two we thing we use savings for is to buy things we save up and buy a house we save up and buy a couch we save up and buy a car and so on and these are all real things that are coming at you so you need some savings to move towards those things the third reason we save is not really saving it's called investing which is really what you're calling about is how do I make this money work a little harder for me how do I make it make some money so some portion of the 68 000 needs to be invested and that's where you would start looking at retirement are you out of debt so yes that's that's one of the things that I have not I have not worried too much about staying in school because I have worked and I have gone scholarships and I have gone to colleges where I have graduated debt free I've never taken out a loan and uh and you can you know you can start with some Roth IRAs and some good growth stock mutual funds let that money grow completely tax-free for your retirement year some portion of that needs to be there and those mutual funds uh you know if they average what the stock market has averaged over the last 80 years will be 10 to 12 percent rate of return you're probably getting spit or maybe you're getting four percent on some kind of high yield item or whatever but you're still losing your butt so a portion of it needs to be invested in that type of thing a portion of it needs to be set aside for making the transition into your new career you know getting an apartment at the new city uh deposits the move those kinds of things a portion of it is used for emergencies only and you need to set that aside and so I would divvy the 68 up among those three categories or buckets and sit down with a smart investor Pro you can find somebody that we recommend to help you that we call them smart investor pros at ramsaysolutions.com they'll help you get that Roth IRA up and moving but more important than the question you called about by far is the question Ken is posing to you and that is what are you going to do with your life ma'am yeah and you've got to decide here there's a couple things to look at look at what do I do very well you've chosen mathematics you've been a good student there's something that intrigued you about numbers I'd start digging into what comes naturally to me what I enjoy doing then you begin to look at what does work do at the end of the day work does two things it solves a problem or it meets a desire and so when you begin to go all right Dave what like what what problems do I want to solve with this Talent of numbers and I'm just making this up with him but we begin to see the clues like that and we say all right I get fired up about solving this problem or meeting this desire let me tell you what we can tell from what he told us he's not thrilled about teaching numbers he's not that's just not something he's really fired up about that PhD leads him a couple of Pathways I did not hear him spending his life in Academia I did not either I didn't hear that in his voice but I could be wrong I could be wrong I agree so I was a math nerd but um you know highly Money Motivated math nerd and so immediately that meant I didn't get a degree in math right I got a degree in finance instead exactly and because I was Money Motivated I'm looking how I can make some money um but you love instructing you love tea oh I do I do and I love and I love math yeah it's a it's a gifting area so look at Dave this is a combo so Dave's gifted at communication but he's also gifted with finance and numbers it's just unbelievable but what he loves to do is teach guide coach that's who he is you ought to see this guy trying to teach people to water ski he's as passionate about that as he is teaching you how to win with your money that's the combo what is he good at what does he love to do when those two come together there's a whole lot of world at work where you can go out there and make a contribution and make plenty of money doing it hey he probably needs to take that assessment he does hang on we'll get you the get clear assessment clear assessment and yeah that'll help too we'll get you that in his book both this is the Ramsay show [Music] foreign [Music] to make your own medical decisions is a big deal these days Christian Healthcare Ministries gives members the freedom to choose the doctors and providers they want without the frustration of worrying about networks and with no waiting period to join it's a membership-based non-profit Ministry where hundreds of thousands of Christians share funds to pay for and pray for each other's medical bills for over 40 years chm has helped families living across all 50 states so cfchm could be right for your family check out more today at chministries.org budget [Music] thank you [Music] Ken Coleman Ramsay personality is my co-host thank you for being with us America open fountains a triple eight eight two five five two two five Lucas is in Midland Michigan hi Lucas how are you good Dave good uh good Ken how are you guys doing today good better than we deserve what's up perfect well first off thank you for uh taking my call it is uh much appreciated sure sure uh before I get to my question I'll just give you guys a couple or a little bit of a back story with numbers um we are currently a family of three uh with one on the way coming April 2024. I am 29 and my wife is 31. currently we're making uh take-home pay thirteen thousand five hundred dollars per month which does not include my wife's uh quarterly RSU stock options that comes out to about twenty thousand dollars a year or five thousand dollars a quarter greater than sixty percent of my of our income comes from my wife and I just dropped down part-time as an ICU nurse because I'm going to nurse practitioner school coming up end of August um the VA is paying 100 for it um so I won't take on any more debt I'm not actually paying me a stipend about 950 per month we're newly debt free just entered baby step three um August 1st after paying about 121 000 off worth of debt um we will have our fully funded emergency fund are six months by December 1st and then we'll be transitioning obviously into baby step four five and six my wife's the bread maker and over the last year and a half two years there's been a couple of rounds of layoffs um and with my wife being the bread maker me going back to school and then working part-time it just has me a little bit nervous as we work our way towards paying off our mortgage early during school for the first year and a half um our cash margin will be seven thousand dollars um and that is after retirement and funding two 529s for our kids once I graduate school they'll all our margin will be about eighty three hundred dollars cash we currently have a home mortgage at 460 000.50 Lucas what's your question is would it be okay for us to go ahead and bump our emergency fund to 9 to 12 months and then um once we why my biggest concern is my wife's losing her job how many times has she lost her job never okay you're a worry Ward I am very much a planner um no you're aware probably probably so to a fault you know with us being newly out of debt um you know I I think that has a lot to play in it Hey listen if you give me a probability that she's got a 50 or better chance of losing her job we'll talk about getting ready for that storm but right now this is just you just you're just a planner that's all this is and you're you're great you're very intentional you know your numbers you're amazing you guys have done a great job I'm picking at you I was having some fun with you but congratulations I'm proud of you you've done a wonderful job if you want to save that you can do whatever you want to do you're a grown-up I wouldn't if I were in your shoes I don't think it represents uh anything except you are just overly conservative and you're you just worry you just read about things and the the change with the new baby coming there's gonna be four kids in the house the change with you stepping back in income while you're stepping up into this new role by the way I think your your field of study is brilliant I would go that way I love it it's got a great upside you're gonna you're gonna make really good money you can help a lot of people uh you can add value to a lot of people's lives so everything in this situation is positive and it's just there's a lot of stuff coming at you and the only way you knew to kind of buffer that emotionally was pile up some extra cash if you want to you're not it's not going to cause you to um to never be wealthy it's not dumb it's just I I'm just calling you out on it's not necessary Lucas what I would have you do Lucas I want you to take that planner in you and Dave's right you got a lot of worrying a lot of fear in this but let's take the planning and let's say all right what would happen what would we do what would my wife do if she got laid off now that I like it's like the idea of going on the plane and they always tell you if we were to have a landing a water landing this is what we would do and I think it's always smart for you guys to just walk through not from a place of worry but from a place of preparation well the idea is if she were to get laid off I'm just thinking about the jokes I know I know but what would she do what would you two do I mean she would go get another job exactly you wouldn't even have to touch the emergency fund knowing how disciplined the two of you are you guys have proven it so think about that and don't be worried be prepared there's a difference well he's trying to get prepared that's what he's thinking but oh I get it but I'd like that energy going towards all right would it be the end of the world what would she do if you if you'll go to pin to Ken's point if you project out what reality looks like not what the atom bomb dropping on your house looks like in reality looks like she probably is off a month or two gets another job and gets a big severance package and so you end up coming out ahead that's Pro that's your high probability if something went down like this but um but yeah if if you guys want to do this it's not the end of the world is it financially is a good financial planning is it necessary are you being no you're just overplaying your hand that's all you're doing so um you can do it you're grown up you're smart people you make a lot of money there's nothing wrong with what you're talking about but you asked so we'll always tell you the truth because we love you all right Kaylee is with us in Grand Rapids hi Kaylee welcome to the Ramsey Show hi thanks for having me sure what's up um I am calling because my husband and I we are in baby steps uh four five and six right now good um we are looking to in the future um move from our current house to another one good um and wanted some advice on on that um we don't need to move right now but we would like to move to a lake we know you like Lake yeah so you might also appreciate this um we came across a house that we would potentially pay around seven hundred thousand oh so this went from future Theory to we're doing it now sort of um we're not sure and that's why we're that's why I'm calling um so I can give you kind of our stats what would your house bring the house we live in right now yes ma'am we think we could sell it for um at least 400.60 160. okay so you got 101 400 100 000 worth of equity give or take okay and the other house you're talking about purchasing on the lake is how much uh 700. okay and what are you guys making here around 270. good good okay well you you probably know our rule of thumb if you don't it is that if you buy a home with a 15-year fixed rate mortgage and the payment is no more than a fourth of your take-home pay and your take-home pay being after taxes not after everything that they deduct at work okay but after taxes if your take-home pay and your pay house payment on a 15-year fix is no more than a fourth then you're okay and you reach over and do that I think you're okay see what do you want me to see when we do the math to us a 30 years I mean I know I know what you wouldn't buy a 30 year if you got to do a 30 year don't don't move well enough I think right now we're like well with with the payments like 650 000 payment or 5650 000 debt what's the payment come out so our math it looks like it'll be around for a 30 it'd be around 30. honey we're not doing a 30. what was the 15 4700 yeah and your take-home pays what 20. it's 12 after no not on 270 it's not 12. you don't bring home 144 out of 270. 401ks and other stuff yeah I'm not talking about that I'm talking about okay I said after taxes only okay we didn't do that math so I think I've done the math yeah yeah and so one-fourth of your take-home pay after taxes not after 401k and health insurance those are two different things okay and not after I pay some Bill at the credit union or I pay child support or whatever out of my check that's not that's not what we're talking about we're just talking about after taxes that's the position you want to be in and you do a 15-year Kaylee or don't buy this house you're making a mistake don't be playing footsie with 30-year mortgages you'll end up with one don't do it don't do it was I unclear I I think you got it this is the Ramsay show [Music] hey it's Ken if you like what you heard in this episode and want to know more about getting started on the Ramsey Baby Steps go to ramsesolutions.com and click on the get started button we'll help you figure out the best next step for you based on your specific situation again that's ramseysolutions.com and click get started [Music] well you've all played the telephone game the first person Whispers a message to the second person who Whispers it to the third and so on around the table until the original message has completely changed multiply that confusion by a hundred if you run a business with different software systems that don't talk to each other that's why there's netsuite by Oracle in the early days of Ramsey we were using different systems for all of our business units we needed one single source for accurate data netsuite was the software we used to optimize and take us to the next level netsuite gave us the visibility into all of our numbers so that we could communicate across departments and plan ahead better and as we grew it scaled with us next week worked for Ramsey and it will make a difference for your business too join the more than 34 000 customers who trust netsuite to help make them smarter and make better decisions and level up their operations to learn more get a free product tour at netsuite.com Ramsay that's netsuite.com Ramsey foreign [Music] from the headquarters of Ramsay Solutions broadcasting from the PODS moving and storage Studios it's the Ramsay show where we help people build wealth do work that they love and create actual amazing relationships open phones at this hour can Coleman Ramsey personality is my co-host he is the host of the Ken Coleman show number one best-selling author of the book paycheck to purpose helps with your career your work goals and we'll talk about that as a part of the program always open phones here triple eight eight two five five two two five Evan in Houston starts this hour hi Evan how are you I am wonderful how are you gentlemen doing today better than we deserve sir how can we help awesome yeah I have a I have a quick question so I essentially have 26 000 and between credit card and student loan debt um so my question is should I temporarily pause on my 401k contributions to pay down that debt punch it in the face um I've I've gotten about a hundred and thousand dollars in my 401k right now after only about five years of contributing to it a lot of that comes from I was contributing 13 of my salary and 11 of my bonus payouts I get some pretty big bonus sales every now and then um what do you mind curious your thoughts um that's what my wife and I make between like I said depending on my bonuses between 1 30 to 170. good for you okay yes sir well if you're uh wanting to We Believe around here and we've proven that belief to be true that your number one wealth building tool is your income what follows that means that getting out of debt is a key to Building Wealth because you're not giving all your money to somebody else in the form of payments right and that's kind of what you woke up and realized the other day and you said I need to get rid of this Dad now how do I best do that now what we have figured out is personal finance is about 80 behavior and only about 20 head knowledge so the biggest and most important thing you can do to get out of debt is get so pissed off that nothing else matters until you get the debt cleared you gotta get really mad at that and be done with it you get the cards out have a plastic surgery party we're only using debit cards we're not going out to eat we're not going on vacation we're going to stop everything we're going to clean up as freaking mess we make too much money to have all this debt this is dumb I'm stopping this and that's the talk in your head you follow me that's the talk that's been in my head for a little while now so in the name of that temporarily stopping your 401k contributions regardless of how much money you have in there regardless of your age temporarily stopping in the name of Total Focus because Total Focus matters when you're trying to hit a big goal in the name of Total Focus we're going to temporarily stop your 401k it's mathematically incorrect on the short term on the long term once you clear the debt and you stay out of debt for the rest of your life because you understand the power of focus now mathematics start to work for you then and what little you lose and match or what little you lose in compound interest or opportunity cost on the money will come back roaring back in your future decades and so you're going to be you know you're going to be retiring of what we call a baby steps millionaire following the baby steps and baby step two is we attack the debts smallest to largest pay minimum payments on everything but the little one yeah it works every time every time Evan and it seems like he's got the voice in his head that he needs to have and I would be Beyond pausing the 401K I'd be making extra money if you have some skills that you can get in the gig economy or the freelance economy you can make a lot of extra money in a lot of different ways in this economy right now we still have a white hot job market and don't ever forget beyond the sacrifices and pausing the 401K bringing more income in is also a way to fast forward this process yeah and it's just it's but you sit down with your spouse and agree that we're going to sacrifice we're going to live like no one else so that later we can live and give like no one else because with no payments man you can build wealth for sure Melanie Is With Us in Phoenix hi Melanie welcome to the Ramsey Show hi Dave and Ken it's an honor to talk to you both today you too what's up so my husband and I are in baby steps four and six I'm a nurse and he's a teacher and we're wondering if we should sell our house and use the money for me to go back to school to become a certified registered nurse anesthetist and we want to move to New Mexico because it's one of the cheaper programs and it has a really cheap cost of living there so yeah we want your advice on how to go about this how much would you make on your house we've probably met about a hundred what's your husband do you said he's what a teacher teacher he's a teacher so he would go to New Mexico and teach there yes to live this goal okay and you can go to school there for nurse anesthesis for what kind of money uh the tuition would be about 90k plus you know books and fees how old are you guys I'm 35 he's 34. okay absolutely I would do this yep I would too no-brainer I absolutely would do this it's a great move because you have thought through all the all the pitfalls and traps of a decision like this and you closed every one of the doors in in just how you presented it to us I mean here's the thing I'm going to go to the most inexpensive school I'm going to get a degree that pays where you'll just be stacking cash I mean we're talking about 300 350 a year you're making and you're gonna spend 90 bucks 90 grand to go do that and we got to move to the place where the cheap school is anyway so while we're at it let's sell the house use the money to pay cash for that thing and then we can buy anything we want to buy later yeah ding ding I'm doing this awesome I think you're I think that was a very good critical thinking skills on your own part what's your husband's is he excited about this too oh yeah we he's uh he's yeah over the moon we have family there actually his family is there so wow it's even better yeah are you over the moon are you just pretty chill in the way you show it no I'm excited okay good all right I'm ready yeah I'm ready for this because I heard that pause when when we said that but let me touch up this is a brilliant move and you have a lot of freedom after the fact even if in that again you got family there but making this move also allows you to decide to move anywhere you want to down the line I'll be honest it says on my screen should we sell our house so I can go back to school when I read that the first thing through my head is she's gonna go get a degree in left-handed puppetry and I'm gonna have to tell her not to do this and I'm so happy the call went another Direction yeah I yeah yeah I'm so happy that but Austin typed on the screen was just a glimmer a glimpse into how brilliant you guys are yeah yeah we just needed your seal of approval that was really you don't need my seal of approval but I'll give it I mean I if I were in your shoes I would do this I love the degree field you're going into I love the way you're going about getting the education the least expensive way to go get the thing because I got to tell you we've been in situations many times where there's a nurse anesthesis in the room generally when babies were being delivered and things like that not one time that I asked any of them where they went to school not once then we go wait a minute wait a minute where's your degree from how much did you pay for that degree not once did we ask this question all we asked was do you know how to do an epidural you know I mean that's it that's the whole thing baby oh my gosh wow [Music] wow very cool that's neat yeah brilliant move good good good I like somebody's got the education thing figured out education is not what matters knowledge is what matters knowledge is the currency of the marketplace go get knowledge that's what you need this is the Ramsay show [Music] foreign [Music] home buying Market but there's a way you can get an edge Churchill Mortgage works with you to understand your budget and your goals and the Churchill Mortgage home buyer Edge offers you fast pre-approval and a secured interest rate plus Churchill has bumped up their seller guarantee to ten thousand dollars giving your offer the best chance of being accepted and helping you win in today's market go to churchillmortgage.com today to learn more [Music] [Applause] foreign Coleman Ramsey personality is my co-host today thanks for joining us the Ramsay show question of the day is brought to you by neighborly your hub for Home Services neighborly is the place to find Reliable help for your home from trusted locally owned businesses like Mr Appliance Mr Handyman and Precision garage door service great company visit neighborly.com good folks to find home experts available to serve you today's question comes from Nathan in Virginia I have a potential job opportunity but feel guilty going for something else I used to be a teacher but tried my hand at Carpenter a few years back I love the job in my company but every employee is vastly underpaid even with raises the prospects are not great I've been approached about another opportunity but feel guilty leaving this small company has a family feel and taught me everything I know plus I have become their only skilled painter so I would be leaving them kind of high and dry what should I do well the first thing is to reframe the feelings that you're feeling you're a good guy Ethan because only good people ask a question like this this way first and foremost reframing it means are you doing something illegal by leaving this small family company the answer is no are you doing something unethical not if you leave the right way so we're not having anything to feel guilty about what you're feeling is a sense of will they speak poorly about me when I leave because it is a small company and they do count on me and they have taught me a lot I think you feel some loyalty with a sense of sadness and then I think ultimately you're afraid of what they're going to say about you and that's what's concocting these feelings so there's nothing to feel guilty about because you're not doing anything wrong for considering and if you were to leave you're not doing anything wrong so in this situation if there's a lid on you and you have another opportunity to grow your finances because it's a bigger company and they're offering better pay go do it leave with class leave the way you would want someone to leave you you that would be my advice and if you do that there should be no guilt Nathan the quality of the people you work for will be revealed on how they act when you leave so I had a young man when the internet there was this new thing called the internet that started up several years ago and I had a young man that learned um uh the coding skills and he self-taught himself one of the codes that's not used anymore but one of the languages but it was big back then when the internet was brand new called cold fusion and um he built our first little website and said you know Dave we could sell stuff on this thing called the internet and I just laughed I thought that'll be the day and um it shows what I know but um so he did and he was actually had another job working for us but he did that and and so he was our he was our internet guy he was the only guy that nobody could spell cold fusion but him and and then he goes you know we could get a little bit better at this she said if I went to uh went to a class over in Oklahoma you know it's 4 500 if I go over there I could really make this thing make some money I can show you how to do this and I went well all right let's do it because it's starting to work we're starting to make a little money on it I mean this was dial up you know you remember you know that was the internet right we need that sound effect James yeah so um anyway I sent him to Sir Oklahoma said he spent 4 500 and back then 4 500 is a lot of money for us that was it was we were a little bitty company and he had a daughter that had a a four-year-old daughter had a medical condition and it was expensive to take care of her and he came back and he's working on it and two weeks later he came in he goes I got a real problem Dave and I'm like what's the problem he goes well you know I was paying him I think 40 000 bucks a year or something and um he goes this company offered me a hundred and forty thousand dollars wow to come to work for him since I know cold fusion and I went wow that's cool and he goes yeah but you just paid four thousand five hundred dollars for me to go do this and that's why I got the opportunity because it's not right for me to leave I said Son you have a daughter as a medical condition somebody just offered you way more money than I can pay you or will pay you even if I could so here's what we're going to do I'm gonna help you pack your desk I'm so excited for you yeah and he went I mean this was a upturn in the old days when the internet was taken off and everybody suddenly a code guy a person that could do code was very valuable and and uh so it's like I I I mean I love that guy I want his little kid to be taken care of and he can make a hundred thousand dollars more than I could pay him or was paying him yes he should take that job and so that's how those people should act when you come in and quit yeah that's exactly right not oh you're my only guy and I just spent four thousand dollars on you and oh man you can't do that that's just called low class I mean and by the way uh while they will be probably disappointed uh and it will be inconvenient you are replaceable I have found that to be true about everybody and so they they're really sad how quickly we're all replacing it's so true isn't it I mean they're gone 10 minutes you're going forgot they were here right yeah all of us they'll survive they took they take me off a radio station some City and 10 minutes later nobody remembers it you know I was like I guess I wasn't memorable no it's just the way people go on they're going with their own lives hello you know that's the way it works Jacqueline's with us in Orlando Hi Jacqueline welcome to the Ramsay show hi thank you for taking my call sure what's up um so I am currently working full-time with my husband and I am looking to go part-time for personal reasons I have two little ones and um there are in different therapies medical reasoning so I want to be able to be a more active mom and take them to a zero therapy sessions but we've been in a lot of debts and we've been working the baby steps getting out and we still have 90 000 to go and my entire paycheck goes to those sets and I'm just kind of confused and scared that I will go back to where we were before if I do go part-time have the kiddos been going to therapy pre prior to this phone call like they're going now or is this going to be a new rhythm uh my daughter's been going but my son is going to be starting up who's been taking your daughter um I have been so your employer allows you that flexibility they did but now that's going to change why is it changing uh New Management my old boss is no longer my boss okay what kind of therapy are they doing hon um what does your husband make um right now is and what's yours my take on this boarding what will you be making when you go part-time uh 20. what do you do customer service what else could you do that would make more part-time working from home [Music] um I looked at working from home part-time there's much there's a lot out there okay yeah um right because the holidays are coming just to get a job at like a store no no no no listen I I you've got to take care of your babies and you're doing the right thing but you don't have to accept half the pay because you're not doing something that is like something I trained for my whole life and now I'm going to walk away from it or something like that um you're you're doing a job that is this you can definitely pick up some all kinds of hours and do things from home and work around the therapy schedules and work around the time with the kids that's right yeah so I I don't think you have to I think you guys can make it on 80. okay and you'll eventually wander your way out of debt and if it slows down you're getting out of debt because you got to take care of babies then you got to take care of babies that's just the way life is but you don't have to go all the way to the you don't have to just keep the same job at half I I would look for something where I can make 30. just for the fun of it just let's upgrade this you might make 40 part-time Yeah by messing around with it well this is a season so Jacqueline I'd be looking at changing your hours customer service reps are very valuable if you can work evenings even from home and you're still there when the kids are in bed yeah you and your husband need to sit down and figure out schedules so that you have the daytime to take the kiddos to the appointments but you can work at night time this is for a season this is gazelle to get out of that ninety thousand then we can reset it's not forever it's just a it's what are we going to do right now while the kids are in therapy and we're trying to clear this debt because working that this other job's not going to work out the current thing's not gonna work yeah I agree with you that you got to change it this is the Ramsey Show [Music] yeah if you're like most people your home is your most valuable asset and when you want to make improvements it can feel like everything costs too much or takes too long but something as simple as custom window coverings from blinds.com can completely change your space and add value to your home we've recommended blinds.com for over a decade so you know you can trust them from blinds drapes and shutters to motorized Shades they make it easy and affordable to upgrade your entire home and their team is ready to help with everything from design consultation to measuring and installation plus there are never any misleading quotes or hidden fees ever by their 100 percent satisfaction guarantee and shipping shipping is always free see whyblinds.com is the number one online retailer of custom window coverings go to blinds.com now and save 45 off selected products visit blinds.com today for more info foreign [Music] [Music] Coleman Ramsay personality is my co-host today hey guess out we would appreciate it you can do that a couple of ways one is you can click follow or subscribe on your podcast your YouTube channel whatever it is you're doing follow us subscribe us all that kind of stuff click the like buttons always that kind of stuff leave a nice five-star review and share the show that's the important thing tell people about where you're listening to it some some of the services depending on the type of podcast or whatever it is have a share button maybe you're watching us on TBN tell people that and then you can see us there tell people about your local talk radio station that's carrying us however it is share and talk about what's going on over here at Ramsey because there's a lot of positive things happen a lot of people getting out of debt changing their lives getting their careers straightened out getting their mental health lined up it's pretty amazing and we are seeing as pretty sizable increase in the number of you that are there in the particular different on the different on the different platforms and thank you for that thanks for sharing and thanks for telling people about it uh for instance this last week we became number 12 out of all Apple podcasts there's like four and a half million of them Ramsay shows number 12. and that matters here's why it matters the little the little tiles they're in rows of six so that means we're on that second row right there I mean number 13 you don't get anywhere near the visibility 14. but we're way up there at the top and that's because you guys keep telling people about us thank you thank you thank you for that we appreciate that Samantha is with us in Long Beach hi Samantha welcome to the Ramsay show hi there thank you so much for taking my call sure what's up so I recently uh closed on condo my first home purchase in January and um just this last month the HOA board voted to approve a special assessment they're saying it's an emergency special assessment to the tune of 33 000 per unit good Lord I know I know and they want it paid um over six months uh payments of 5500 starting on September 1st so I have my emergency fund of about 10 000 I've been working to get it up to 15 for my three to six months um so I'm going to have to use that I'm my parents are going to be able to help me what is the assessment for so they're saying it's for um to remove and replace decayed wood surfaces perform stucco repair um so the exterior of the condos looks like crap correct yeah and they're saying there's water damage and you knew you saw that when you drove up to buy the condo you know it has zero years life left so I was expecting some kind of assessment but nowhere in the reserve assessment does it say anything near this amount um so they're basically seeing the reserve s the reserve studies wrong um you know construction costs are way up labor costs their way up um but this amount really there's 46 units they're saying it's 1.5 million to do all the work um so the amount itself I was expecting maybe 20 like I could so you anticipated something but you're just not this much okay yeah all right so now what's your question my question is should I I guess should I plan when I build back up my emergency fund should I plan to have a little extra because there's also the roof that's going to need to get done and they just don't collect enough they don't accrue enough fees really hoacs to adequately fund the deterioration cost each year so I'm wondering if I should if I should pad my emergency fund more because of this no what do you make I make about 155 after my bonus each year um I'll tell you what it would do though I'd get involved in the HOA board um enough that you get some people fired and some different people serving that actually and and change the fee structure because like you said they're not collecting enough to do their sinking funds for their deteriorating asset and that should be part of a standard HOA fee right and they're saying that they want to keep the HOA fees low because well that's just artificial it's artificial if you're not collecting enough to replace the parking lot you're not collecting enough to replace the roof based on the life it has left that's called a sinking fund then the HOA fee being low is artificial because you're going to make it up with lump sum special assessments there's always you're going to live from emergency to emergency this horrible management yeah I agree yeah so yeah they need to be fired you probably ought to get a professional Condo Association Management Company to oversee the board they they do have one oh they suck yeah yeah they do okay all right so yeah they need to get fired and you need to get some new people on the board because you gotta you need to establish the fee structure that takes care of the property individual homeowners have to do the same thing I own a house if the if I know I've got a roof coming up in five years I need to be setting money aside for a roof in five years it doesn't need to like surprise the roof suddenly deter no it doesn't it unsuddenly deteriorate deteriorates over decade that's why they need to be fired they didn't plan well for this well they didn't plan at all this is ridiculous yeah horrible horrible and I I do have a question because you're in real estate can they are they the supreme authority the association says this is what you have to do is there any no fight back on that yeah most condo associations and for that matter regular HOAs have the ability to do special assessments to cover okay to cover uh you know dilapidated mess that they hadn't kept up the maintenance on yikes but that's the problem with living in a situation like that yet one more reason why I freaking hate HOA Survivor mentioned that before I hate them complete pain in the butt all right uh Raymond is with us in Chicago hi Raymond how are you I'm great Dave I'm really happy to be here with you guys thank you how can we help well I'm uh uh help help someone I'm trying to find out something about uh 401k loan I know they are like should not ever be done and unfortunately when I went looking for uh information with you all I found all sorts of reasons why you shouldn't do it but what about us the dummies who make the mistake and do that and when you do the death snowball I know you're supposed to list things from smallest to largest I'm I've been trying to help as many people as I can because it's worked for us but what I'm trying to find out is the uh 401K that seems to have tax ramifications and more risk even if it's not an IRS problem I know there's no tax ramifications whatsoever paying off a 401k loan oh but isn't there a risk if they lose their job that they they have to there's tax ramifications and there's IRS problems and fees if you have a loan outstanding but paying it off right doesn't cause taxes no no that's what I meant I'm sorry oh yeah yeah there's a lot of reasons to pay it off when you leave your company because you died because you got a better job because you got fired you will leave your company when you leave your company uh your loan is called due in full and you have to repay it all in 60 days or it's considered an early withdrawal with 10 penalty in your tax rate on it so yeah that's one of the reasons it sucks my question is should it be paid off earlier or at least be partially paid off earlier now you can't partially pay them off you can only pay them monthly or all at once so even when you get to it in the debt snowball you can't incrementally add you have to pile up cash and savings and then knock it out in one hit that's interesting because they're the workplace says that they can keep paying it off and they they actually have been uh paid off you can pay it off you have your regular monthly payment but you can't double your monthly payments huh I've not ever seen one that allows you to pay extra on it you can pay it all at once but um I've never seen one that allows you to pay extra on it so um so folks uh what what Ram is pointing out is never borrow on your 401k loan if you do have one put it in the debt snowball where it goes and when you get to it you're probably unless Raymond found an unusual thing you might have I don't know but most of the time you can say and I think almost all the time you're going to find a 401k once you pay it off in a lump sum so you got ten thousand dollars you're gonna pay a thousand dollars a month you're gonna pile up a thousand dollars a month for 10 months and you're gonna write one check do away with a 401k loan but yeah you need to get rid of it wherever it falls into that snowball and uh dumb dumb loans really dumb loans they're all dumb loans but that one's a dumb loan this is the Ramsey Show [Music] thank you [Music] hey if you're in over your head with student loans and tired of getting calls from collection agencies if private student loan debt is taking away your financial piece and you don't see any way out you need why refi they're not a debt settlement company and they're not connected to a bank why refi refinances defaulted private student loans that other places won't touch and gives you a custom loan built for you based on your ability to pay so when you refinance your private student loan debt with why refi you'll have a payment you can afford with a low fixed interest rate you couldn't get anywhere else to help you stick to your budget and work the debt snowball and you can save thousands of dollars to learn more about this custom refinancing option and a lump sum payoff option you could qualify for after 24 months call 8442 Ramsey or go to yrefi.com Ramsay foreign [Music] Coleman Ramsay personality is my co-host today thank you for joining us open phones at triple eight eight two five five two two five Susan's in Mountain Home Arkansas hi Susan how are you yourself better than I deserve what's up well I'm calling to find well thank you for what you're doing for sharing some time with me first off I just wanted to know thank you um should I pay off my truck yes um again without anything else well I'll tell you it's my husband passed last June and uh thank you um well I'll tell you he was sick for a while and then they put him in a nursing home for rehab and he got covered and I got it from him I made it but he didn't so that's pretty much that how long were you all married hon uh 32 years we've been best friends since 1977. wow oh man how old are you a long time I'll be 65 uh next month the first day of next month I'm so sorry sorry you're going through this what what do you owe on your truck I have 28 000. we were lucky today it's very strange you know used cars cost what a new car maybe does now I don't know well ours didn't they were biting the dust so so um you have any money well uh yeah I was caregiver for my mother also and she left me or her home and uh I left that was in Phoenix and I I didn't want to be there anymore and I didn't have any family there so I moved to Arkansas I sold that home um moved uh here and paid cash for my home I have um 29 000 in checking 11 000 in savings and forty thousand uh it's through Edward Jones and money market and sea beans and my income is my husband's uh Social Security because I had quit working you know to care give for them and it's about 28 seven a year if you don't have the car payment can you live on the Social Security if you didn't have the car payment can you make the budget work on the Social Security uh yeah I'm gonna have to for at least for a while I want to go to work but but uh I had to put certain things off on myself you know to take care of them and I've got to have hand surgery on on each hand but after that I'm hoping to get back out in the workplace if somebody I had me I've been out of it for a while I guarantee you something they will yes they will guarantee you they will you're a jewel um the okay so what I want to do is I want to take the money that you have between Edward Jones checking and savings and I want to set aside your checking doesn't need that much money in it okay we want to set the money over it let's have an emergency fund of three to six months of expenses so you need an emergency fund equal to about what your savings is about 11 about 11 or 12 000 that will cover you for three to six months right okay okay I wouldn't mind if it's fifteen thousand okay but somewhere around there and that leaves you the Edward Jones and the checking and you've got a twenty eight thousand dollar loan and a 29 000 in checking so I just write check pay off the truck today really I would that panics me but I I trust you well you either need to do that or you need to sell the truck because there's 28 000 loan is destabilizing your finances right right yeah I'm I was looking at that last night and I just thought oh my goodness and the truck you know well you overpay for anything you buy anymore but this is if you don't want it and you want to sell it and move down that's okay too well I don't think I could I couldn't get out of it but what I owe for sure I mean you might have to write a little bit of a check but I mean you could end up with a ten thousand dollar less vehicle down in the 15 000 range and uh you know uh it's possible you could move down and if you want a little less it's it's a lot of truck it's a lot it's a pretty expensive vehicle for your situation but if you're gonna keep it you need to pay it off today okay yeah well you're right bad gas mileage and and everything so well you know you keep talking about how it's you know if I were in your shoes I'd probably look start looking and do a little planning and sell it and get something that you actually want that has good gas mileage and is reliable in the 15 10 15 000 range in your situation I think that's going to be a lot better vehicle I think you all overbought on vehicle there's a lot of emotion at the time you bought for everybody and I think you paid too much so I probably would move down but if you're going to keep it you need to pay it off today and um so it won't hurt to pay it off today and then sell it too that's okay too and trade trade down and you know get you into ten twelve thousand dollar vehicle something reliable the gas mileage is good that you're comfortable with in your situation as a 66 year old lady that's by yourself right now so you've been through a tough time I'm sorry kiddo we're here to help you though if you need anything you call us anytime we will help you any way we can it's it's what we do here so wow that's tough yeah and I I agree with you on just downsizing she doesn't need a truck for any reason if it were my mom I'm sitting here thinking let's get her nice today and get her a nice Toyota Honda some kind of reliable sedan that's got low miles very good gas mileage and as she begins to re-enter life that's all she needs a Dependable nice little sedan that gets her from point A to point B yeah and you can get a lot of car for 12 14 000 bucks a lot yeah for half of what she's got this that's right yeah exactly something to think about there something to think about but either way uh that truck payment's going to be gone either way open phones are triple eight eight two five five two two five Leah's in Charlottesville Virginia hi Leah how are you hi Dave how are you better than I deserve what's up so I have been wanting to ask you this question for like weeks um I got an ERC payment um I'm a business owner and I got PVP and like I I did my business the way I was supposed to and then well not really the way I was supposed to but I did it and then covet happened and then I got all these all this money and I survived and now I have this I had this big lump sum of money did I I don't have employees anymore so I paid off like twenty thousand dollars worth of debt and I had like probably forty thousand dollars worth of debt left but I have twenty five thousand dollars in cash and I'm worried did you meet the guidelines of the PPP and the ERC to not have to give it back I did I did okay I did it's clear so what else to pay to pay not not necessarily debt free but I'm I still have my I only would have with my car I have a house um and I do I do a lot of things I I moved back home with my to my to my mom's house in my house an hour rental so um if you met the guy if you met the guidelines that they put on that program then the money's clear if you didn't meet the guidelines they're going to ask for it back right I have an accountant who's great and I I'm just worried that I'm gonna they're gonna be like hey and I pay my student loans so I have nothing I have no no that I just have like um a couple credit cards and like you're afraid they're gonna say hey what you owe this money well if you met the guidelines they're not going to say that if you trust if your accountant has walked you through the points that you have to meet on there there's about six different offerings and I don't know which one you got but um it was all screwed up and we were yelling at people not to take that money but you took it if you met the guidelines I'm not mad at you for it um just make sure you met the guidelines and that way this thing that's spooking you in the back of your mind it sounds like you think you haven't met them and so you need to be very sure that you have and very sure they're not going to ask for the money back and if not they're not they're not going to just change it now um you know there was a lot of electricity in the air back in those days uh to say the least but um yeah it's we've not we've not seen any of our customers any of the people we're dealing with where they've gotten into trouble and um the government has gone in and changed the rules after the fact on that particular program so again go over it again with your accountant and make sure and then you're clear this is the Ramsay show thank you [Music] hey it's Ken if you love the show and want a deeper dive on your money Journey we have a Weekly Newsletter that gives you trending and helpful articles and tips on following the Ramsay win go to ramseysolutions.com today to sign up for our newsletter again that's ramsesolutions.com to sign up for our Weekly Newsletter [Music] [Music] live from the headquarters of Ramsay Solutions broadcasting from the PODS moving and storage Studios it's the Ramsey show where we help people build wealth do work that they love and create actual amazing relationships Ken Coleman Ramsey personality is my co-host today he is the host of the Ken Coleman show and author of the number one best-selling book from paycheck to purpose he talks to folks about their jobs and their careers every day on the Ramsay Network so be sure and call in if you got something in that area for sure open phones at triple eight eight two five five two two five starting this hour is Tucker in Charlotte North Carolina hi Tucker how are you it's okay I'm Doug here doing well how are you Dave thanks for taking my call today better than we deserve we're glad to have you brother how can we help thanks and hey ultimately my question is whether or not we should sell our home uh right now we're newer to the ramsley Ramsey plan we took uh Financial Peace course that you guys offered for pastors online and got the every dollar app and set up all that stuff good according to the plan we're on baby steps four five and six good but our house payment is 35 of our take-home pay so finding the room to pull out 15 of our income isn't really something that I've been able to figure out right now where we're at so we have some decent equity in our house that we can pull out if we sold it I guess where I'm torn is if we sold it where we would go the rent for a three bedroom place is the same if not more of their current house payment and I guess we could try and find something smaller it's just still pretty competitive in the area that we live in you like that house then yeah we like our house mirror pasture yes sir okay all right cool well here's the thing um there's no Panic and the last thing I do uh out of the on if you were to Force rank if you make a list of things to do to get your money straightened out the way down the list of selling the house because it's very expensive to sell it's expensive emotionally to move uh it's expensive financially to move everything else so it's just uh it's very seldom the answer to an equation uh so what does your wife do well she stays home with our kids right now how many kids we have two okay all right um I I think rather than selling the house I'm going to look and say okay what are some short-term things I can do or we can do in this household and what are some long-term things we can do to change our income situation so that the house becomes a reasonable percentage you don't have to do it in 20 seconds it's not like baby step two where you have to get geared up in gazelle intense right now you're on four five and six but the the point of not having a 35 house payment thirty five percent of your take on pay is it just hard to do other stuff it's hard to save for the next car it's hard to save for Christmas it's hard to say for retirement there's just not as much room in the budget because you're more of closer closer to what we call house poor if you told me 45 I tell you sell it today because I don't think you're going to turn that corner but 35 I think you can turn the corner on this um over the next year or two or three or whatever and in the meantime backfill was some kind of supplemental income uh and that's not that unusual for a pastor by the way to lots of pastors are by vocational as a matter of fact the numbers that we have say about 80 percent of them yeah and my dad did the same uh as we got older and he wanted to put us in a local private Christian School that was a little bit of a stretch he went out and did some carpentry work about it he was a pastor about it he was sorry my dad wasn't and still is a pastor and did that and and again if you've got family in the area uh or you've got someone in the church an older grandmother who'd be willing to watch the kids for three or four hours five hours a day to get you to 20 hours a week to where your wife can work these are all seasonal sacrifices that will tip the scales as Dave was talking about you've got to be looking at everything possible uh because short-term and long term that's right but in the short term Dave I find that a lot of people don't realize all the options they have and I'm not sure what that is you've been doing this a long time but once we start just saying basic Common Sense things people begin to realize okay I can save money here uh I can make more money over here and we begin to look at the big picture in the short term and then long term you know you're right that is a much different discussion but the big the big thing that Tucker did uh if what he was saying was we had a a series last summer where we offered Financial Peace University for free to pastors and you know at that point he didn't even know he had a problem so now he's problem aware that's right that's the first step and that's good news so we were able to help him and get get a lot of things moving get the baby step two cleared out and get them up to this level and I'm glad we were able to do that but um yeah now he's at least problem aware but I don't think we need to go to the extreme no not at all yeah and um now if you if you go 10 years and don't save anything for retirement because of this then yeah that's a problem you're gonna have to think rethink that so I'm going to make some adjustments of some kind to get to where we can start doing us maybe you're doing 12 for retirement for your baby step four right now but with the idea that if we did these other three things we could get to 15 uh eventually as a permanent sustainable process yeah and that that's where you need to get to you do need to get there because you're going to retire and you do you need a paid for house and you need a big old 401K plan when you get there all right Joseph's in Austin hi Joseph how are you good how are you doing today better than we deserve how can we help so uh I'm 31 years old uh I own my property um I've got a good paying job but I've got two car payments both of them around eighteen thousand dollars they're my largest ex probably one of my largest expenses every month and every month now ever since we we recently moved here we're having to cut into our savings a little bit to just kind of make it through the month to the next paycheck you are not on our budget uh not a good enough budget no you're not and you're still going out to eat and all other kinds of crap not as much as we used to we have if you're going out to eat it all you're taking money out of savings to go out to eat that's dumb right yep yeah so you guys the first thing is you need to get on a tight budget and make some conscious decisions so what's your household income uh about a hundred thousand okay all right and so which one of these cars do you want to sell we don't want to sell either of them uh we both need our vehicle they're well you need a vehicle we need two vehicles for one for I mean you need a vehicle you don't need the one you've got necessarily we don't know I feel like we've paid off a good amount of them you know uh we bought both of them when they're probably above forty thousand dollars and we owe I think under 18 on each of them so you go 36 000 on cars you make a hundred what other debt have you got um that's that's pretty much our only debt that city is pretty much I mean that's the pretty what's the rest of it events every month would be our property taxes which is did you say your property is paid for your house is paid for our house is paid for correct and you can't pay car payments with no house payment making 100 grand you are real you got you got lifestyle creep Joseph big time Big Time stop your 401k contributions temporarily don't go out to eat and don't go on vacation live on beans and rice rice and beans get on a detailed Budget on every dollar download the app you and your wife sit down and look at this and go time to be grown-ups adults divisor plan and follow it children do what feels good it's time to punch these car payments in the face to get these stupid things paid off fast then you'll get your life back [Music] [Music] Ken Coleman Ramsey personality is my co-host today thanks for being with us open phones at triple eight eight two five five two two five Maddie is in Lansing Michigan hi Maddie welcome to the Ramsay show hi Dave thanks so much for so much for sure what's up uh I am wondering my husband and I are trying to find our first house and we're willing to pay up to 200 000 that's kind of the top of our budget and we keep putting offers on houses and we usually have a we do like fifteen thousand dollars over asking price with an appraisal guarantee and we keep striking out on houses how many times does that happen um we've been looking for about no how many offers have you made that you got beat out on it's probably I think it's four so far okay all right and how long have you been looking uh just about a month it hasn't been super long okay it's okay just calm down don't don't get it don't get crazy because you missed a couple God's Gonna God's Gonna serve you up the exact right one you need you're gonna be just fine don't because what's going to happen is you're gonna get all hot and bothered here and need a cold shower and you're gonna overpay for something because you get out of control chair just calm be calm you got the rest of your life how old are you 27. you got the rest of your life to get a house one whole month you've been working on it yeah so do you think do you think you should spend you know to offer over 15. yes that's plenty okay that's plenty and you know if you're getting the right situation you can look at it but I mean if you're going to pay 30 000 over appraisal that's 15 over appraisal on a 20 000 or 200 000 house that's pretty substantial sure and so if houses go up seven percent a year it takes two years for you to break even on your overpayment sure also considered um we looked at one property and talked to a contractor and no we are thinking we can okay you don't think that's even a possibility for the first time new housing is always more expensive when you're buying retail like that from a contractor than used housing you're going to get better value used and you're 27 and it's your first home purchase building a home is a royal pain in the butt and I've built several I'm building one right now and I'm pretty good at it I'm pretty good at managing the budget and the schedule and I grew up in the real estate and building business and um and Sharon and I've been married 41 years and it's still is stressful on us and we have to be real careful to not fight [Laughter] and you're just it's a much smoother simpler transaction you're going to get more bang for the buck and used housing I wouldn't do it there later on you guys have been married a while you know you got you got your life settled out you you know you want to go into that adventure of Home Building it's an adventure because there's 9 000 things to pick out there's a lot of arguments about room size and everything else and uh we have to start every time we start a project Sharon and I have to raise the right hand and say I'm not going to kill you yeah it's it's stressful and I'm also not going to kill The Decorator yes or the contractor or the contractor yeah I mean we're going to be nice you know this is fun Maddie Dave gave you great advice I'm just going to tell you I I can still remember the first house station I bought and you know we thought the we couldn't get a house we had a same situation and finally the right house at the right time popped and you know what it wasn't anything big and fancy but we have such fond memories of it and you guys are so young just just less is more with that first home yeah it really is there's nothing you don't have to prove anything with it just and you're not going to keep it forever that's the key every anytime somebody says a forever house I always just laugh yeah your only forever house is in heaven I'm just saying because as soon as you're I've done enough deals with people like this is my dream house and since you're moving your dadgum dream changes this is what happens all right Andrew's in Orlando what's upper Andrew how are you better than I deserved Dave how are you doing today the same how can I help well I'm being sued by a credit card company and I wanted to know what I'm in for hmm you actually been served uh not yet I actually found out about it because a bunch of ambulance Chasers started sending the advertisements for their services so I I looked up the law office called them they claimed to have no idea what I was talking about so I went to the county clerk of court and found the case so they actually have filed yes okay all right how much do you owe the credit card company twenty thousand dollars roughly why has it not been paid um basically there was a point at which my ability to to continue paying ran out um the the short version is after quarantine my wife and I both got coveted twice that put us out of a month of work each time and then my cancer came back oh my God every yeah um for what's worth God is good I'm cancer-free as of right now oh that's good but it was one of those things where every time we climbed out of one hole something else hit and recently this past may we got the greatest news that my wife's pregnant with our first child but as you can imagine that came with another set of holes to dig out of as as we were trying to dig out of the other holes well pregnancy doesn't usually cost him money much it wouldn't have yeah it the the doctor's uh appointments we found out that the insurance we had for her had been discontinued and that her uh primary physician had retired and we did not get they didn't switch us over to a new primary so we went through a rigmarole of self-pay with an OB GYN for the last couple months okay and you're back to work now after the cancer remission yes I'm I'm back at work full time and uh she is um currently attempt to pick up hours with her clients and she's looking at a second job as well as hi how's your energy level my energy is great luckily I didn't have to do chemo this was uh good quite a long search so what do you make um together last year we did 58 000 uh I did 45 of it what do you make now oh uh roughly 45 a year okay doing what uh I work as patient care specialist at an anti-aging Clinic okay what's your wife do um she is in uh full-time child care she's sort of uh almost like a permanent daily babysitter so you're making you make 45 and she makes what uh last year she made roughly 13 um this year um she's been keeping track of it but I don't have uh her exact numbers just yet because the reason I'm poking around is I'm looking for something to throw at this these guys okay your best bet is to offer them about five or six thousand dollars as a settlement in full because this is like two or three year old debt right it's not anything paid on in two or three years correct yeah and if you offer them uh you know quarter on the dollar or so and you argue with them and fight with them a little bit you're probably gonna get it so five or six thousand bucks I'm assuming you don't have any money though not at the moment no what's at the moment mean does it mean there's some coming no I mean like we're both looking for a part-time jobs okay I didn't know if somebody's getting ready to send you a check I didn't know what you're talking about okay oh no that's that don't be wrong that'd be lovely yeah that'd be great that'd be great yeah okay so your best bet is to settle uh Pennies on the dollar of some kind 25 35 cents on the dollar cash on the barrelhead call this people and argue with them and it'll take about four phone calls and they're gonna threaten you and call you everything and you can settle with them but if you can't scrape that together the best you can do is what's called an agreed order and that is agree to start paying payments to the law firm and they will cease the law soon in in terms of an agreed order that they'll take it before the judge the judge will approve it if you miss a payment if Florida allows garnishment garnishment would be instantaneous yeah they do okay I'm pretty sure they do that's how it works I'm not an attorney but we've worked probably 10 000 of these with these types of law firms keep in mind this Law Firm has zero emotion in this they don't care about your problems uh all your history all they care about is you are a widget on an assembly line they are doing thousands of these a week thousands so you are you're you're an item in a factory for them so that don't they don't they're not emotional you don't need to be emotional just try to settle it per month or scratch up five six grand somewhere and make them and offer a settlement in full and you will have to argue with them [Music] Ken Coleman Ramsey personality is my co-host today in the lobby of Ramsey Solutions on the debt free stage Jacqueline is with us and Jacqueline my associate producer said happy birthday to you happy birthday to you and I got you again happy birthday it's not my birthday it's your birthday yeah but I brought you a gift this is called credit debt cards I love it yeah that'll work that'll work I can't wait where are you from I'm from Dallas Texas how much debt have you paid off 180 000 just like that yes you're that girl yes and uh how long did this take it took me 11 years to get to that point seven years and your range of income during that decade it started about 40 and then it ended about 65 000. wow what do you do for a living I'm in customer service I'm on the phones okay cool what kind of debt was this oh it was some of everything that I had a HELOC a HELOC I also had a business debt I had credit cards Chase Freedom Chase Inc and all sorts of credit cards all of them I just wanted all of them yeah so of the 180 what was the biggest debts my mom oh I forgot my mortgage oh so uh what's this house worth the house is worth 365 69 000. you rock yes you rock thank you and you are paid for I pay for half now I can go to sleep and rest man when you're growing up do you ever think you'd be this rich I I did I do I'm so proud of you yes well done all right tell us a story what happened here they got you fired up you plowed through all these credit cards you plowed through all this mess and then don't you just keep going knock out the house well that um what happened Dave uh back in 2012 I got a very disturbing call I just got up and went to work I got to work at six o'clock actually about 6 30 and I received a call from a little man that a guy that lived with me I had took in I took in my friends from school her son and he was living with me he was needing to graduate his mom was had a real bad drug addiction and so I brought him in my house so he could graduate and he called me one day when I got to work he said Miss jacket I knew he kept calling me and I couldn't answer so finally he called me so much I finally answered the call he said Jackie Miss Jackie I just got a call from the hospital and they said it was something about your husband and they needed you to get to the hospital well the hospital was a known hospital in our area but it was two of them so I went it's called Methodist and I went to the hospital I said well my my nephew I called my nephew he gave me told me that I needed to get to the hospital and I didn't know what no one knew anything so I'm going through the hospital just frantic frantic trying to find that one I finally they said well let me call the chaplain so the chaplain came back he said Miss Terry I just need you to hold on the doctor that was on duty uh he needs to talk to you but we have to call him back to the to the hospital so the doctor came back and they took me in the back and they said Miss Terry they was sorry they told me that they were sorry I'm sorry I didn't know I was gonna get emotional but anyway he told me they were sorry that they couldn't revive oh my yeah he was killed in a car accident oh man he ran into a concrete truck and he lost his life and that was the hardest thing that I had to do I had to go that was 11 years ago that was 11 years ago and I had to go home to my children and tell them that they fall they knew I was holding something because I didn't know how to tell them so I had to tell them I called my pastor and he called us to the church and they knew something was going on because of the way I was acting so we went to the hospital long story show I went to the hospital I mean to the to my church and my pastor talked to my children and then we just had to figure it out Dave with me and him we were already struggling trying to make ends meet we were struggling so I knew I had to if I wanted something better if I needed to be the best example to my children I had to do something different but I just didn't know what it needed I didn't know what to do so one day I went to lunch with a friend of mine and she showed up to the lunch I I didn't know her that long but she showed up with lunch with some envelopes and I would and she had money in each envelope and she brought up one envelope said food so I'm like okay she envelope cash and I here I go with my credit card to pay for my food and she pulled her money out of an envelope so I didn't I said well what is that she said well I'm on this Dave Ramsey program so I just you know I just okay so that when and it was gone and I didn't see anything else so then later on in life I was still struggling struggling trying to pay this pay that I wake up at my paycheck would hit my bank account about six o'clock in the morning so I would wake up at six o'clock every time I got paid by 6 30 in 30 minutes I was able to have my account down to zero because all I had to do was just a click of a button click of a button I did that for a long time and one day I just said you know no more so I started searching some stuff on the line about getting out of debt and guess who pops up wow and that's that's how I end up getting hooked up to your program and I want to tell you one thing Dave I know you get a lot of criticism I I heard it I I look at you every day and I know you get a lot of criticism but remember one thing day is what you're doing is not for them it's for people like me that need to be the best examples they can be for their children see now I can go and see I got two beautiful grandchildren now so I can go as a parent you are a hero girl I'm so proud of you I can I can live for them now I can live and not be in so much fun you don't even have a mortgage no mortgage at all you are so weird yeah I am so proud of you I taste chase out of my life you are you are a Victor yeah there is no victim in your walk yes yes you're amazing people call me they you know when I first went on your program I stopped going you know I used to go out to eat all the time with my stuff not anymore then now they thought they started calling me cheap I've been called cheap I've been called tight but guess what and now what we call you rich amen very free come on with that and it feels good talk some noise yes I can what do you tell people I mean you're you you lose your husband in a horrible tragedy in a car wreck and as a widow with two babies you fight your way through this in 11 years 180 000 including a paid for house you are amazing what do you tell people the key to getting out of debt is the key to being getting out of debt is is being true to yourself and stand within your means also determination you got to have tenacity because you don't have tenacity to do that's the difference between a person that talk about it you have to be about it and that's what I had to do I had to be about I couldn't be no more I can't talk anymore talk is cheap like they say talk is cheap yeah yeah you you that'll preach right there get it hello yes yes hey we got the live and give box for you and that's the baby steps millionaire book which is what you're going to be next for sure yes yes I'm excited Total Money Makeover book you'll be able to give that to somebody like that lady showed you those envelopes that time yes you'll be an inspiration you are an inspiration of course Financial Peace University same thing I want you to enjoy all that now how old are the grandbabies the grandbabies is seven six and seven yeah and I love them if I'd have known how great grandbabies are gonna be I'd been nicer to their parents yes yes yes yes yes and they get ready to go they just saw in school this year yeah Egypt and heiress hey I love it my babies they are wonderful hey you're amazing I'm so proud of you yes thank you so much overcome so much he was strong armed your way through it and man what little bit we had to do with your story we are honored we're honored to be in your corner we're honored to be your people well done and also Dave I did want to say one thing I do prison ministry so what I want to do in my goal in life is to get this material into prison system amen why they you know people are down and they they absorb and they just let that season where they down I want to be able to take this into the prisons and that's my goal is to come up with a plan to get into the prison system will definitely help you any way we can yes sir you're amazing all right it's Jacqueline what a hero Dallas Texas 180 000 paid off in 11 years making 40 to 65. you'll hear her story don't you dare tell me you can't do it she did it count it down let's hear a debt free scream three two one I'm [Applause] [Music] [Applause] happy birthday to you I love it this is the Ramsay show [Music] [Music] thank you [Music] our scripture of the day second chronicles 15 7 but as for you be strong and do not give up for your work will be rewarded Theodore Roosevelt said when you play play hard when you work don't play at all I heard that one for me I haven't either you can see him saying that one it fits exactly I like it a lot very good Ashley's with us in Kansas City hey Ashley welcome to the Ramsay show better than we deserve what's up in your world um so I just found you about a month ago in your teachings Dave and turns out my grandparents have loved you many many years and I have an opportunity to get a job that will be paying 50 to 55 000 a year still negotiating that um and I currently earn 37 pre-tax um and in in two weeks he'll be on baby step two but in order if I were to take this job to transition I would have to use my baby step one to supplement the transition to a new job and I just wanted to know how to take a new job well just to help so the pay periods are different so I get paid so the first of the 15th I get paid on the 15th so that works so I won't have a paycheck to help tie over my bills um during that two-week change so whenever I go to the new job it has two weeks before a pay date so I get paid when I leave this job but not like two weeks after so I'd wait I have a wait period between jobs for a paycheck if you leave the job and you work two weeks at the new job you should get a check at the end of that two weeks I don't understand you should but without I asked them about their paydays during interviews and with how they work there would be um time between when my bills are due and when I get paid so I wouldn't get a paycheck right then so I was wondering if it was a good idea to take the job if I have to kind of take a step back yeah you need to take the job but I'm just I'm also trying to figure out a way to work around this if I can yeah how much time between when you would get the check and when your bills are due um about 10 to 12 Days depending on which bills it is so rent would be 10 days and um light yeah call them if you need to certainly the landlord for sure but most of these like utilities and things like that you've probably got a 30-day window before there would be any charges and so I don't think this is a big of a deal as you think it is oh I've been really nervous about this I think you need to take the job but I think you also need to minimize the use of the cash which is what Ken's pointing out okay so because I don't I don't want you to be down to nothing that scares me uh but I'm gonna take the job anyway yeah and um so I I um yeah you should be able to but I I hate for you to be back to zero I really wouldn't want to do that um yeah let me think here uh well while you're thinking Dave let me throw this out here Ashley you have the ability to probably take on some short-term wow maybe some gigs some I mean I'm sitting there looking at I'm just going to throw this out arbitrarily but let's say you needed uh two thousand dollars the fact that you're in this to go you know right now what that number is I'd go make that money on the side I'd sell some stuff I'd come up with that money and not touch my uh emergency fund yeah go go unfortunately I have two babies under one one is my foster daughter and one is my biological daughter so I am going to take time yes sir wow so you don't have the margin to do that to take time out of my day already because daycare is my work hours and I don't have the ability to supplement daycare with anyone else I moved to a new city about a year ago so I don't have what is the new job what are you gonna be doing um medical software support which is I have Tech certifications that I got and I was supposed to be working that about a year ago but my corporate job then was like no we don't want to move you so I moved to where I am now which is medical reception and then I'll be doing medical Tech hopefully so you can't do any gig work at night after the babies are in bed as it relates to technical type work technology stuff because I didn't get the training experience on the job I would have to basically just apply somewhere and get a job with them and that would just be another job there's no can you sell some stuff notifications there's no sorry can you sell some stuff I already did that to help with baby step one good well here's the deal uh look if you can't do that back to what we were saying you need to get in touch with all these you look at your utilities look at everything and you've got some Grace periods we're talking about 10 to 12 days you're gainfully employed yeah you're fine you're gonna be all right just just don't pay stuff on time pay it 10 days late uh so that you're not without cash with two babies in the house I mean I want you down to zero so if you use a couple hundred bucks out of this thing or something to make one payment on something that's our on your maybe your rent or certainly your food that kind of stuff you don't go without food you don't but if you pay your light bill 10 days late it's not the end of the world and the next month you'll be on time it's not a problem so Zach is with us in Anaheim California hi Zach welcome to the Ramsey Show hi Dave and Ken I gotta say I'm a huge fan of you Ken Coleman and your get clear assessment so I appreciate that my question is um how do I increase my income so I can afford monthly rent out here in Orange County California because it's very expensive what are you doing now I'm a logistics supervisor for a Manufacturing Company nice okay so you know your field better than I do but the gig economy and freelance work right now would be the first place I look because it's exploding so with that Logistics uh background and experience what can you do uh in addition to what your full-time job is does something come to mind right out of the gate um maybe like part-time work for like a FedEx warehouse after yeah part-time work after my full-time job all right that's one option that's one option don't limit yourself that's the first thing you threw out uh Under Pressure it's a good one but you're looking at your skill set and you're looking at your experience and you almost have to write it out it's a good experience just to kind of write it out or type it out on a spreadsheet and go okay this is all the skill sets I have that I use now or that I've had in previous jobs and here's all the experiences so I look at what's out there now I'm going to make that money as much as I can and then how do I get promoted to where I am that's the other thing what do I have to do to climb a ladder where I am or within the industry what do you make a year so what would be the number that would make you feel like you could afford delivery you are well to have the rent to income ratio be 25 it would be around 95 000. okay and you're in logistics supply chain that's correct which is a uh exploding field uh and as you continue to increase your skill set in that field you should be in the 95 to 125 range uh in Orange County that would be normal I mean you you're at more of an entry position within that within that uh discipline uh but supply chain I mean it means a lot of different things when people say supply chain or when they say Logistics and so but I mean uh I know high school or college graduates coming out with a uh a logistics degree a supply chain degree or walking into 90. uh so you're probably a little bit behind them in actual technical knowledge of the discipline so if you'll continue to grow that long term that's your answer short term pick up some side gigs but long term is do what you have to do to grow your particular knowledge base in your discipline because you're in a good discipline you're in a good field for income production anyway for to make good money uh it's and it's a booming field and the beautiful thing about it is a lot of times you can more than uh justify your position by how much you save a company by managing it well it's absolutely right yeah the quickest way to get promoted is when where you are in the now you know a lot of young people especially it's the nature of the game certainly being younger and you're in a new industry we're always looking for the next thing the next thing the next thing and the best way the next thing is the thing you got right now when when big and and that's crushing it and going above and beyond the expectations and showing them how you make your listen you make the company more money you we bring up a great Point Dave I'd be looking for ways to make my boss's life easier that would be my number one goal if I could show my leader hey I'm doing the job you've asked me to do but I'm here to make your life easier that's the best way to get a promotion that comes with a pay bump well in Inventory management and procurement and that process our Logistics person generally shows us every year how they're worth about four times what we pay them and it's kind of something they learn to do in that business is to show how wonderful they are and I like it I like it as an employer I love it yeah that's great very fun that puts us out of the Ramsey 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 [Music] thank you Dave here you can find all of our shows with the Ramsay Network app on your smartphone it's the only place to listen to the entire back catalog of episodes download the Ramsay Network app in your favorite app store today foreign [Music]

Channel: The Ramsey Show

Views: 482,727

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, the ramsey show full episodes, the ramsey show

Id: 3hhYMxL0A3g

Length: 125min 35sec (7535 seconds)

Published: Wed Aug 09 2023