It's Time to Attack the Student Loan Industry

[Music] this is the ramsay show [Applause] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host george campbell ramsey personality is my co-host today as we answer your questions about your life and your money it's a free call at triple eight eight two five five two two five well we had a huge event here at ramsey this morning our entire team of a thousand folks sat here and we uh watched the entire premier screening of the new documentary that comes out in october called borrowed future and uh we're all a little biased in this uh building but it's incredible yeah you don't have to trust us but let me tell you we had the red carpet we had chick-fil-a biscuits the team was just on fire because we've been teasing this thing for a long time the team has been working on this for a long time and we finally got to show the crew what that's what it's all about and there was not a dry eye in the house yeah it is a world-class storytelling world-class production values and editing and the whole process and so you'll be able to see borrowed future on uh october 14th 14th 14th is the release date on apple tv and amazon prime and all the place hulu all the places that you watch good documentaries show up and uh good things like this show up so you'll be able to find this will be out there just about everywhere and more details on that to come but if you want to be on the launch list you can go to borrowed future dot com and just put your email in there and we'll send you a link and let you know when you can do it you can actually watch it from our site it's it's a pay-per-view process wherever you are and uh so we'd love to have you sign up and take a look at the thing it is um absolutely incredible it is obviously about the the student loan epic the epic failure of the student loan movement industry uh congress how they have screwed you navient sally may when you finish watching this your blood will be boiling because we have we haven't tacked it down in detail and there's going to be some people really really unhappy when this comes out and it's not going to be you uh it's going to be these people that have been screwing you for decades with this epic failure of a program it makes um everyone involved i mean there's so many villains it's hard hard to be there it's hard to pinpoint one but yeah there's no way you can have an opinion after watching this thing where you don't go this situation is screwed up and i don't want anyone i know a part of the student loan crisis yeah amen amen and if you've got student loans we're here to help you with that too we're not mad at you we've all done stupid things around here that's how we uh all got started uh we discovered our lack of perfection and once we figured that out then we were able to share we're much easier where yeah where were we i've been there where we had messed up and so i've been there done that got the t-shirt it's like my pastor says a man with an experience is not at the mercy of a man with an opinion so that'll preach that's where we are open phones at triple eight eight two five five two two five anne is with us in grand rapids michigan hi ann how are you hi dave god bless you you too how can we help you thank you so much um i'm making 1500 a month on social security and i make another 500 a month substitute teaching and i'm paying my sister 500 a month to pay her back the 20 000 ior and that will take me three years but in the meantime i'm not tithing at all and i'm and i don't quite know what to do about that how old are you 72 okay all right well i think it's always good when we're talking about tithing to uh pull back from the details of the situation and just um unpack okay yes those of us that are christians uh the vast majority of us believe that the bible says to tithe to give a tenth of our income to our local church that's the definition of the word from an evangelical christian standpoint and that's what you're calling about so let's pan back from that then and say okay what what is god doing with this tithe thing why is he teaching us to tithe and then what are some of the details around it number one um he is not teaching us to tithe because he needs money he's god he doesn't need money okay number two he's not teaching us to tithe because the local church needs our support although that is one of the byproducts of the tithe but that's not that's not why scripture teaches us to tithe your heavenly father who is absolutely crazy about you and he loves you little girl teaches you to give because it's good for you it changes you and that's the reason generosity always makes all of us smile generosity always makes our eyes leak right and so this is not a rule to be kept by an angry father this is a loving father that says hey little girl best way to live your life is to be generous and here's a good rule of thumb a tenth of your income now if we want to get technical about the income let's get technical about it i'll give you an opinion but i want you to live in a lot of grace around this god does not love tithers more than non-tithers you don't get brownie points with god for tithing that's not why you do it the reason you do it is it's good for you to learn what it does to your heart when you're generous and that's why giving is good for everyone that's jesus says better to give than receive and the reason is what happens inside of you not because you're more noble or more altruistic or you're a better person because you're a giver rather than a taker you know it has everything to do with your heart so now that we've established that there's a lot of grace around the subject then the technicality is the the the best indicator we have is in deuteronomy it says to tithe on your net increase now that would be if are earning a wage which you said you're earning 500 okay right right social security we could argue is not earning it you paid into it it's a horrible retirement plan that you paid way more into it than you'll ever get out right and so i'm not sure i consider that income you can if you want because if you want to be a bigger giver it's never a bad thing but in my mind with what you described what you owe your sister has nothing to do with the equation mathematically i would be tithing on the 500 worth of income and then i would pray and ask god if you think you're supposed to tithe on the other social security income so 50 bucks and i think you can probably pull that off even in your really really tight budget yeah absolutely i mean 50 bucks from your income and i don't know your your expenses and when it comes down to the budget but i would take a good look at the budget and see if we can fine-tune some things because clearly giving is something that you're passionate about it's something that you want to do and i love your heart and faithfulness around this and so i think you look at the budget and go i know we i don't have a lot coming in but what are some areas i can shave to make this 50 happen so that i can be generous you know i don't think you're 50 off even in your tight budget one way or the other um but again you you um you continue to pray about this and i want you to have a peace about it i want you to walk i want everyone in your generosity to walk in grace but the principle is there those that win with money are generous very few people do we find in all of our data points that are very good with money unless they're generous that's the little secret that nobody talks about much are enough this is the ramsey show [Music] what makes our show unique is that we genuinely care about our listeners we're intentional about choosing the best advertisers to recommend blinds.com is no exception they offer high quality window treatments at unbelievable prices and they make it simple to shop blinds shades and interior shutters with easy online ordering free shipping and a guaranteed perfect fit go to blinds.com and take advantage of this week's special savings [Music] george campbell ramsey personality is my co-host today as we take your calls about your life and your money it's a free call at triple eight eight two five five two two five triple eight eight two five five two two five you can actually get through if you die at this moment guys we really value the input from our listeners on the ramsey show and periodically we will do a listener survey in uh the survey running right now we ask listeners how much debt they've paid off and you know what people told us they paid off 241 million dollars in debt that's the people that took the survey wow so if you'd like to take the survey we'd love to have you do that uh we are giving away an amazon gift card worth 250 and you will be in the drawing for that no purchase necessary if you take the survey and it's all about this show and what you think about it so we value your opinion text the word survey to 33 789 text survey to 33789 or you can go to ramsey solutions dot com slash survey either one will work fine brent is with us in sacramento hi brent welcome to the ramsey show hi dave hi george thank you guys so much for taking my call sure what's up um yeah i have a question so um i like you i'm really interested in like real estate and kind of building up like a rental income my portfolio and um i kind of have like a plan to try to kind of like become financially free within the next 10 or 15 years thanks to a pretty big income that i have and so i was wondering if uh i kind of like a two-part question if i'm kind of crazy for thinking to um basically just kind of cut back on like my 401k that i'm getting from my uh company to try to build this portfolio faster to essentially like quote-unquote retire off of this um and if i am crazy for that um what should it be invested in to kind of double every year like you say because right now it's just invested in like the um the standard like the speculation for like when i'm expected to retire okay um how old are you i'm 27. cool and what do you make uh in salary it's about 130k and then in rsu's it's about anywhere between 30 to 50 depending on like what the stocks are at when i sell them yeah good for you well done that's fun okay well um obviously the rsu's are not available to you until they're available they're restricted stock units so what are the restrictions on them how quickly can you get to that money uh they're quarterly so um like every you know for three months or so i get roughly like eight to ten and 10k in the rfcs that are released to you to that you can cash in correct yeah once a quarter okay so they're not heavily restricted you don't have to hold on five years or something like that no they were just restricted for like the first year and so i got a pretty big chunk uh within the first year that i actually used to pay off like the remainder of my debt so thanks for uh thanks for having me out with that all right cool well you're doing really well we teach a thing a process called the baby steps and i think that uh is included in the person who wants to be wealthy in real estate and makes um you know 150 000 bucks a year at 27 years old so yeah i i would tell you to first become debt-free are you yes i am do you own a home no i've been saving up and um i have about 80 grand saved right now to put into a home but i'm waiting for the market to kind of cool down a bit okay cool that's fine good well and we would say i have three to six months of expenses set aside as an emergency fund and then put as big a stroke on the house as you can put on the house and while you're saving for that house you've done a good job with a good strong down payment sacramento is a more expensive market you wouldn't hurt to even have more obviously um but we're going to put 15 percent of our income into retirement and uh into the 401k and above that you should have plenty of room as a young single guy to save like a crazy man towards buying some real estate and uh it sounds good i think you're on your way to doing that i don't think it keeps you from doing that no absolutely not and i want you to have it paid for uh property first before you go investing in real estate but i think with that income and it's only going up from here he's 27 clearly a sharp guy so i think hey can i live off of 30 and sock away 100 plus yeah and save that and start to invest that into property once you've got the investing plate spinning and i think you're going to be just fine you're going to be a multi-millionaire either way at this rate here's the thing you lower your risk and your oh crap moments when something comes at you is lowered risk the more you have paid off and so i'm with george i'm going to go ahead and buy the house and get the house paid off and then i'm going to save and buy my real estate and by the way that's what i did i'm not asking you to do something i didn't do i bought my i got my house paid off and i saved up and bought my very first purse of piece of investment real estate and uh then and that's the hardest one by the way because then you got all that rent that with no payments that's a lot of money coming in and then when you've got two of them with all that rent and no payments the third one's even easier because you've got all that rent and no payments and now i'm quite a few pieces of real estate into this idea and i've got all that rent and no payments and life is pretty good in that situation yeah i follow a lot of you know these influencers on social media and they're in the real estate world and so they're trying to leverage out their eyeballs and they go well i'm not even going to have my own place i'm just gonna rent and i'm gonna keep getting more and more mortgages because hey they're paying my mortgage off for me dave how is that a dumb idea it's about as dumb as following the advice of an influencer on instagram but yeah um yeah so you were the original influencer you were you were doing it well maybe um i don't know if i ever qualified for that stuff but um but the uh uh uh you know i started buying real estate the first time when i went broke in my 20s and much like much like brent i was a little bit younger than brent actually and there was a rage going on then like is going on now and that's 40 years ago and the rage was nothing down real estate as a matter of fact there was a guy who wrote a book called nothing down that was the name of the book he later filed chapter 11. um and uh book on that and lost everything and all i was in a real estate club with all these guys that were following plus or minus those strategies you know highly leverage lots of debt buy as much real estate as you can buy it'll all work out the renters will pay your payments and the interesting thing is you know it felt good at the moment because like i became a millionaire by the time i was 26 doing that and i i owned a bunch of real estate i own 4 million worth of real estate and i had 3 million worth of debt that means you're a millionaire 4-3 right and so um but i also had no money no money it all went back into deals i had no money it all went back into deals and as soon as the bank just flinched they just took me out in a tsunami just knocked me over because i built a house of cards and a house of cards isn't stable but back to my story all of my buddies there were three guys that were kind of old farts in the club right the club was like 100 people this real estate investors club and these old guys wouldn't do it the cool way they were paying for everything or they had almost no debt they'd maybe borrow a little bit but it was like a you know they put down like 70 or something mostly cash deals and uh i remember talking about i'm like dude you could do three times as many deals and he goes yeah but i'll be here three times as long oh ten years from the time i'm in that club later i don't know a single person in that club that had not gone broke wow every one of them that followed these influencers you're talking about type advice including the guy who wrote the freaking book had gone through bankruptcy wow and so you know it's just it's a it's fool's gold to uh because the leverage will come back and bite your butt off and you you'll just be standing there and it wasn't just me i'm not i'm not pregnant i mean it wasn't different because it was dave and well dave's just wounded because of his experience no dave learned from his experience there's a difference there's a difference between wounded and learning you know that hot stove burnt my hand when i laid my hand on it and so i don't touch hot stoves anymore yeah so strange yeah well i i love to see people this young in their 20s wanting to do it and wanting to do it the right way so i think brent's on to something here if he can follow the baby steps and do it with cash he's going to be doing just fine but all of his buddies that are on instagram are going to be really really concerned about how slow he's moving oh yeah and the people who build wealth and keep it are never on the cover of fast company magazine they're on the cover of slow company the tortoise never makes it to the cover dave the tortoise the hair is always on the cover the tortoise never makes it and every time i read the book the tortoise wins the race this is the ramsey show [Music] [Applause] [Music] [Music] [Music] [Music] george campbell ramsey personality is my co-host today he is the host of the fine print our latest uh podcast that has gone out it is a sea it's in season one there are 10 episodes that uh if you watch this you will find all the different ways that you should have read the fine print and someone's taking advantage of you oh yeah and our latest one is all about these buy now pay later services and you've probably heard the names after pay and klarna and affirm and dave i've been digging into this and their marketing is hilarious here's what they they sell themselves to companies by saying this we create financial freedom for your customers that sounds like something we want to create financial freedom for people and the way they create financial freedom for customers is by putting them in debt that makes sense right you don't have to read the fine print to understand that this is a stupid idea and this is just modern day layaway back in the day you go to the store yeah but layaway doesn't have an interest rate no and you have to wait to get the item until you actually pay for it in full yeah with buy now pay later you get it now this is the payday lender of amazon prime yes that's what these guys are i mean if you can't make if you have to make payments on a shirt [Music] hint you shouldn't be buying the shirt yeah oh my gosh do we need your grandmother to remind you of something like this and box your little ears america this is huge among gen z and millennials because what they do is they go well i spend 100 i could spend 25 and free up that money in my budget yeah i get to use all this i get to keep my money now this is the greatest it's the you know i was thumbing through uh we're moving and so i was packing and i found the newspaper from uh the 1970s when nixon resigned and it was the nashville tennessean uh which the newspaper is actually still in existence it's no longer a paper it's not a pamphlet a left-wing rag but um but the uh uh and it's really about five pages now but it used to be a legitimate thick mostly people used to but i mean i'm going through this thing looking at the cars for sale of the 1970s and what they cost and looking at the houses i was looking at there used to be these things people called the classified ads and you could put your lawnmower for sale in the classified ads and you could sell your you know your dog and the classified ads and you could do whatever in the classified because they were set up by classification oh this is old school it was craigslist before craig was born and so uh you know i'm going through this thing and i was amazed that the language is the same three easy payments 15 easy just make easy so easy and i was remembering my my grandfather going there's no such thing honey there are no easy payments they always hurt yeah that what what's easy is the purchase of something that you can't afford with money you don't have to impress people you don't even really like that's what's easy the payments are never easy even if they're small they at least remind you how stupid you were that you bought a shirt it was a shirt oh my god it's crazy and what's even crazier is klarna uh they tout this to companies the store order increases by 45 when you use klarna they don't put that in front of the customer they put that in front of the company well they didn't even spend their money on the name i mean what a horrible name i know it sounds like karma karma gone sideways yeah it's bad that'd be a better tagline so we dig into this it's 24 minutes long it's fun it's narrative rachel cruz joins me as the expert on the topic she's dug into this we talked to a real life that's the one that's one that launched this week yes this launch just last week and uh this girl spent ten thousand dollars at lululemon using buy now pay later my brain melted down when i heard that and that's only buying two things from lululemon yeah imagine sweatpants extraordinary that's all it takes and so that we dig into this we have a homework a freaking lululemon it's unbelievable yeah you just can't george will always have a job that's true open phones at triple eight eight two five five two two five check it out it's called the fine print anywhere great podcasts are sold oh wait they're free how is this free check it out check it out i don't know because i'm paying you i'm not sure how this is working but don't think about it too long somewhere in there my brain's hurting all right caitlin is with us in minnesota hi caitlin what's up in your world hi dave um it's an honor to talk to you um i i uh so me and my husband have been married for about four years and sorry i'm like really nervous that's okay we've never lost a patient you'll be okay um and we operate by what i call the roommate method um it's where you know we have a mortgage payment i give him my half he pays the bill right and i know we want to do the dave ramsey we want to do all your baby steps he's already our thousand dollar emergency fund but he wants to take care of his debt and he wants me to take care of my dad and i tried to talk to him and i don't know what to say what to do how to and we've been through like the money and marriage seminar last year we've done financial peace university together i know i know all of it i know i'm gonna make you repeat the second grade here it hurts my heart a lot because i love him and i know that if we can get through this you know and get through our p to get through this that things will be great i just i don't know if i'm not saying the right thing how old is he he is um we're both 28. okay i thought you married a child for a second i just want to get the ages right before we dug in you guys please stop saying that about him because he's really handsome i'm sure he's a great husband what it feels like these are my toys and these are your toys and i'll play with my toys and you play with your toys but when you guys said i do it was we from then on out there's no roommate method there's no it's husband and wife and that means joint accounts that means conversation communication combining everything and it's now our debt yeah but he's you're saying he's not in there it's and i don't totally blame him what's his excuse what's his excuse well he hasn't given me an excuse so he just whines no he doesn't whine yeah he is you don't talk about it a lot yeah but um his wife is calling me on national radio after you've been through financial peace university and been to the thing so yeah that's called why not yeah no really this is this is this is bad so um okay so what you've got to do with him is you're gonna have to get to the bottom of what his problem is what's his objection why does it why does he not want to combine after four years why do we not why are we not french we we it's we yeah when you're married it's we not yours and mine we're not splitting the mayonnaise the baloney and the other stuff in the refrigerator that's my mustard keep your hands off of it we're not roommates yeah yeah and it's not good for your marriage and it's not good for your wealth building it's not good for your relationships it's not good for your level of communication there's nothing here that's good so why is he insistent upon doing things that are not good i'm confused you are too so maybe he needs to maybe he needs to defend himself on that yeah well and i kind of i've been the free spirit i've never been good at handling my money but i want us to do it together so we can learn together you know yeah i mean if you two laid out a plan that both of you agreed to called a monthly budget would you stick to it if you had a vote on the plan oh gosh yeah well then the free spirit is not the problem yeah but a free spirit's not the problem because even a free spirit can stick to a plan yeah if they have a vote and a voice in the plan now he doesn't get to lay out the plan and then make you do it that's not what we're talking about no and he wouldn't because we've tried before and i i don't know what happened to be honest but we've tried before to do a point to do a budget do you guys have a why that you've laid out when you talk or is he just not want to talk does he just shut down no we've talked we've done the whole dreaming thing we want you know to be build wealth we both want to change change a leg change generate like our generation you know we want to have a good legacy like you know uh it's are you sure it's a good legacy for him legacy are you sure it's not just you we've talked we have talked about it before and he has said it i think he carries a lot of shame with having so much like because coming into the relationship it was his debt and i have debt too yeah but like you said we get married it's ours but he's here he's shameful for richer unto thee all my worldly goods yeah i pledge for better for worse for richer for poorer unto thee all my worldly goods i pledge this is a relationship issue it's affecting your money and i'm getting to the bottom of it if i'm this is not okay [Music] [Music] [Music] [Applause] [Music] george campbell ramsey personality is our co-host today open phones at triple eight eight two five five two two five one of the number one questions we get here on the air and by email and on our other podcasts is how do i get my spouse on board and number one there's not a magic formula for that number two it is absolutely necessary that you do get them on board because working a separate plan will eventually cause you to work a separate plan the number of people who build wealth and have high quality marriages 30 years into a separate plan is approaching zero that's your data but i think it's right it's actual data wow i mean the 10 000 millionaires that we interviewed the vast majority of them said i don't remember the number it was in the 70 80 percentile that their spouse and them work together so there's a high correlation between the ability to build wealth there's a high correlation between high quality communication and shared values in them to having a high quality marriage duh shocker now how do we how do we what are the what's your best shot what's our best shot around here of getting the spouse to see that they need to be on board i can't make this basket on board yeah but i can help them see how important it is number one data says that you're gonna have a crummy marriage and your likelihood of building wealth is gonna suck if you're not on the same page and you're not working together pulling the wagon up the hill together both of you have a vote you know saver versus spender free spirit versus nerd abundance versus scarcity and you balance each other out and if two people just like get married one of you is unnecessary so it's good that opposites attract but how do you get the spouse to see the need i think the biggest uh piece is starting with that why and having that shared goal if you can't get excited about the future why do you care about your present why does it even matter to get out of debt if you feel like you like laying in your own poop and so what we got to do is find a why that gets us on fire a little bit and what i like to do some people get inspired by the math a lot of people haven't even done the math on what that payment would be like to have back in their life what could they do what is the interest we're currently paying some people need a little bit of that nerdery to go oh my gosh i'm paying sally may 600 bucks a month no we're getting rid of this thing so once you combine the y and the math and then you pair it with something like financial peace university or you both read the total money makeover you need to create that shared language because then they understand it's not just what dave said we need to get out of that do the debt snowball it becomes a no we decided that our goal is to change our family tree we decided that we have bigger goals in life than to pay sally may for the next 20 years and once you do that things change behavior change habits change and you start to see some progress and then you go oh my gosh we can do this and then every couple that stands on the stage they go dave our marriage is better yeah what was the key to getting out of debt communication the budget but the two things that come up every time just about yeah right there you know and they almost always raise their income yeah but you can't raise your income if the one at home is whining about you working and it's just the whole thing it work it pulls together and and um it bothers me when i hear someone say hey we went through financial peace university we went to the marriage and money event we did a dream date together we laid out you know some of our why and then the spouse still won't come to the table that makes me think something else is going on yeah because there's no at that point you have the information in front of you that a logical human being says uh the pride i've got that i brought the dead in i gotta let that down and we gotta work together it's our best shot the uh the shame i have because i brought in more death than she brought in i gotta lay that down because it's our best shot as a couple um and so i uh uh i don't know what's going on there but something else is going on that's not in the equation that we're hearing that that is causing that because it's not a simple thing of we just don't have a shared vision yeah because if you can get on a shared vision then you will come back and do the practical stuff to hit the vision you know you'll you'll dial back in and do the tactical do the budget together make the the sacrificial decisions together make the decision to sell one of the cars or whatever it is you got to do to get your budding gear you'll do that stuff once you see where you're going and it's worth the trip yeah but you won't do it with thank god it's friday oh god it's monday and you won't do it with i'm a victim and you won't do it with the little man can't get ahead and the system's rigged and oh my god the whining that goes on in this culture the arrogance of entitlement is unbelievable but if you just sit out there and say there's a thing i can go get that thing if i'll do the steps to get that thing then then that thing can just be financial security financial peace yeah and i think you're right there's there's a theme i'm seeing here with people that can't get on board and it's either selfishness or shame it's either well this is mine and that's yours and you deal with yours and i'll deal with mine or it's the shame where they go well this is my dad i don't want you to have the burden of that and there is that pride you gotta suck up and go no we're a team now and i didn't sign up for a roommate i don't know about her but i don't want to live with a roommate for 30 years i want to live with a grown adult who decided that we do things together as a family and i think marriage counseling may be in order for them to get on the same page and dig into the root issue here because i don't think it's just the budget and money i think there is something more serious going on yeah and it scares me what it could be melanie is with us in indianapolis hi melanie welcome to the ramsay show hi thanks for taking my call sure what's up um i'm actually calling just i'm trying to narrow down the question but it's how do i go about making an income when i'm transitioning from working full-time to being a full-time mom oh when'd you have your baby um in april so she's five months old wonderful how fun oh fun we had our little grandson down at the lake house this weekend he's three he's two months old and uh they're fun when they're that age they don't really cause much trouble except a dirty diaper yeah and uh that's it so yeah that's awesome so you want to work or not well i guess i'm trying to figure out if i'm even approaching this right my husband makes about 40 000 a year 45 000 a year um but last year he was a little bit off because most of his commission comes from um he's a salesman at a music store and so most of his commission is rentals for schools yeah so with covid we were down a little bit and so we just built up a little bit more debt than we really wanted to so do you want to work or not i think i do i want to i want to contribute in some way but are you going to start a small business and do it from home while baby is taking a nap or are you going back into the workplace i'm wanting to do something at home something i can pretty much do online okay good okay so so you so that you're there with baby and you work around baby and you kind of control your own time frames yeah okay but if you could add ten thousand dollars to this equation in a year you would feel good yes i could add about ten thousand to twenty thousand okay cool well that's realistic we just need to define what it is you wanna go after it sounds to me like you are a christy wright business boutique customer um material business boutique equipping women to make money doing what they love has a lot of ladies who want to stay at home but earn an income from home while watching over the kiddos and a lot of them have online businesses or freelance businesses or different things where they control the time frames uh and so that you know while the kids are at school while the kids are napping whatever it is five o'clock in the morning before they get up you do some work and you create some income and christy can show you how to do that i'll send you a copy of the book business boutique it is a number one bestseller and if you'd like to come to nashville we have a three-day event in october and uh it's christy and me and john deloney and a bunch of high-powered ladies on the stage teaching women how to run a business and it is absolutely incredible and i'll give you a couple tickets to that as well and bring a friend with you so it's business boutique in nashville and i'll send you the book and that because here's what you're gonna have to do you're gonna flesh out the whole process of figuring out what skills you have and how to make money with those skills on on a limited controlled schedule yeah i want to throw one more thing in uh kelly will pick up i want to give you ken coleman's career assessment to help you figure out because it sounds like you're not really sure what you want to do yet so going through that will give you that clarity to figure out something you actually enjoy doing that's a big key yeah the career assessment is pretty incredible uh so yeah you can take that we'll give that to you as a gift as well all for the birthing of the baby that's awesome this is the ramsay show [Music] dave here we just launched a brand new listener survey we want to know what you think about the show you'll be entered to win a 100 amazon gift card no purchase necessary take the survey ramsey solutions dot com survey or text survey to 33 789 [Music] this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice george campbell ramsey personality host of the fine print and the entree leadership podcast is my co-host today open phones here as we talk about your life and your money the phone number is triple eight eight two five five two two five so george when i first started teaching this stuff these principles of getting out of debt living on lessons you make live on a plan always be generous uh you know this whole process of the basic principles of personal finance common sense biblical financial principles grandma's common sense um i had just gone through a bankruptcy and so i was hardcore and still am to this day anti-debt don't borrow money because i discovered that it not only can destroy your life but on top of that it can hold you back and keep you from becoming wealthy so i was the get out of that guy from day one and so we started teaching this class people were coming to the class and um they would and i would start this radio show and people they would call in and say okay now what do i do first do i do investing for the kids college what about my retirement and what about this credit card do i pay it off and what about this car which one where does it fit in the plant and and where do i and what about saving for an emergency and oh i don't want to pay off my house someday and i want to buy a house someday and oh and and they would start asking all these questions and i figured out if you have like 17 things in front of you and you try to do all of them a little bit nothing gets done the power of focus and a clear path a clear plan a clear list of priorities started to emerge because i started to understand that personal finance is 80 behavior and only about 20 head knowledge and so i first said okay you need to get out of debt that's your first thing and then i went well probably not the house so the house is like a different thing but we need to get out of debt with the house and before we do retirement we really need an emergency fund because you'll cash out your 401 k if you lose your job and you need money to pay the house payment and you don't have an emergency fund so you need the emergency fund really for you before 1k so i started to kind of put these things in order and i'm looking around at what some of the people in financial planning community are doing and a lot of it i agreed with and there's some basic guidelines in there i didn't make up a properly funded emergency fund is three to six months of expenses i didn't make that up that was been out there for a bazillion years i didn't even make up the debt snowball i'm best known for it but i didn't make it up i saw it somewhere it made sense to me pay off the smallest debt rather than the highest interest rate because you get that zoom zoom that kick in the pants psychologically when you get things paid off and so this if you want to eat an elephant it's overwhelming how do you eat an elephant one bite at a time a bite at a time uh so we started teaching what we called the baby steps and the first baby step was get out of debt later on i went back and i added a new baby step one first have a thousand dollars and then usually that snowball and get out of debt because people had no money and like they blow a tire i mean it'd be like a hundred dollar thing and then they would just quit because oh god the whole thing fell apart i was getting out of debt i was doing fine like tire went and now i'm done and they had no margin all so i put a thousand dollars in there not for an emergency fund but just for a little bit of wiggle room so when a little emergency comes up it doesn't derail you emerge it doesn't derail you emotionally so thus was born the baby steps wow who knew they would be so controversial right did you ever think you'd get so much well i you know i agree with dave on this but you know when it comes to baby step four here's really there's all kind but here's the thing at the end of the day millions of people have done it and they go dave this worked and my whole life i couldn't figure out how to manage my money and i just followed a proven plan someone else's process and it changed everything it turned into the book the total money makeover the proven plan to financial fitness is the subtitle and um you sold a few of those sold uh approaching 10 million copies now and um some of them are on shelves collecting dust have never been open some of them are on coffee tables as a really nice coaster and have never been opened but some of them have actually been read and we have documented proof that millions and millions and millions of families have not only gotten out of debt but have started to become millionaires baby steps millionaires using these baby steps it is a proven plan now you can work whatever plan you want to work but don't call it my plan call it your plan this is the ramsey plan this is the plan everyone at ramsey has agreed on this is the shortest path and to the extent you modify it i think you lengthen the time it's going to take you to become wealthy this is the shortest distance between where you are and financial peace the shortest distance between where you are and a level of wealth that allows you to retire with dignity begin to change your family tree and have some peace in your life baby step one is save one thousand dollars for your starter emergency fund you should do that in 30 days or less some of you have more than a thousand dollars in a savings account today set aside one thousand dollars that is baby step one you're done that easy some of you did it instantaneously some of you will do it out of this paycheck it's a thousand dollars shut up do it now quickly immediately roll coins sell crap out of their corner of your couch put stuff on ebay those all golf clubs you got 17 sets of all golf clubs get rid of all of them you know all this stuff right and and so get the thousand dollars quickly any money you have that is above that that is not in a retirement account goes on to baby step two yeah so once we have that foundation that buffer we move on to baby step two where we pay off all of our consumer debt except the house using the debt snowball method which is this is where we're going to lay out all of our payments regardless of the interest rate this is what gets people we're ignoring the interest rate we're just doing it by the balance so we're going to lay them all out from smallest to largest and we're going to pay minimum payments on all of those debts except for that smallest one and attack it with a vengeance laser focus like your freaking life depended on it you work so much that your kids don't know your name and it doesn't matter because they're up for sale on ebay anyway i mean you got to get with it you sell so much stuff the kids think they're next the dogs on ebay and the cat's on craigslist i mean everything is gone we're not going out to eat don't talk to me about going out to eat you're broke and in debt you have to get out of debt you can go out to eat later whiner get a skillet and cook something my grandmother used to say can i fry you an egg get you something to cook come on now seriously people it doesn't it costs 1 10 to cook a meal at home what it does to go to a restaurant and buy it and the reason is restaurant is entertainment it is not food i'm not against restaurants i love restaurants i will go to one tonight but i can freaking afford it i'm not broken and dead anymore because i didn't go out to eat for a period of time and you're not going on vacation either going on vacation you're broke you've got to be kidding me so you're going to work your debts off smallest to largest in that order three to six months of expenses set aside is baby step four three where you have that set aside for your emergency fund and you're set up for that and then it goes on to baby step four fifteen percent of your income into retirement five is kids college savings the sixes we're gonna pay off the house early the typical family working this system pays it off it pays off the house in seven to ten years and they're millionaires in around 11 years i'm incredible [Music] [Music] stop paying your overpriced wireless provider and switch to puretalk they use the same network as the larger providers for much less for just 30 a month get unlimited talk text and six gigs of data with no contract the average family saves over 70 dollars a month by switching to pure top just go to puretalk.com and enter the promo code ramsey to save 50 off your first month pure talk simply smarter wireless [Music] [Music] george campbell ramsey personality is my co-host today open phones at triple eight eight two five five two two five if you're like most people you've got more uh more than enough on your mind right now getting the kids where they need to be keeping up with the bills staying on top of work and family it's exhausting stressful the money thing oh man for a lot of people i remember it just makes your throat tight your stomach come up in your throat it's just bad listen there's a plan that we were just talking about in the last segment that'll help you get on track the baby steps and the way we teach you how to do that the most efficiently and the way we develop those baby steps over all these years is through financial peace university it'll show you how to get out of debt save money build wealth for the future be outrageously generous you can stream all nine lessons on your own or and or you can join a class with other people so you're not figuring out alone people are good to be around you know in the only way to experience financial peace university is with a ramsey plus membership plan works every time ask the six million people who have done it start your free trial at ramsey plus and get into financial peace university it's a free trial text the word trial to 33 789 that's trial to 33 789 our question today comes from blinds.com they're a wonderful american company i've been endorsing these guys for a long time got their window blinds in my own home personally find out for yourself why they're the number one online retailer of custom window coverings you get free samples free shipping and with the new promos they run all the time you'll save even more use the promo code ramsey to get the best possible deal today's question comes from robert in tennessee to say the home selling market in tennessee is hot is an understatement but i also have heard it's the worst time to buy a home for that very reason the value of our home has gone up considerably and my wife and i would like to sell in order to upgrade to a larger home is now the right time to cash in our equity and make this purchase what do you think it's a good question from robert uh well he's saying the value of his home has gone up and you know everyone's has because it's a hot market and so there's this fever to go well i want to sell i can upgrade i can upgrade but here's the problem when you go to upgrade well now you're trying to buy a house that is also appreciated in value and so there's kind of a trade-off here where you've got to go what's the right move financially regardless of where the market's at can i afford that upgraded house is it a wise move for us to do you know regardless of what your house is going to sell for yeah the the problem with selling at the top of the market is you have to buy at the top of the market the problem with selling in a frenzy to market where there's 17 offers in two days is you have to buy in a frenzied market where there's 17 offers in two days and so unless you are somehow for some reason making a some kind of a different move where uh you cash out now but use that money later or use it in a different way then just to buy in a frenzied market and sell in a frenzy market is you know it's frenzied hello i mean high stress scenario to do it right now and so i think the breakdown at least in the way you've worded your question the breakdown in your wife's logic is she sees that you can get a lot for your house but hasn't considered that it's going to take a lot to buy the next one and so i don't think homes are going to come down they've gone way up but not artificially it's just a drive it was an artificial demand and it was a covered supply demand in the in the basically the new housing market the supply chain got screwed up because the lumber market and a few other markets they couldn't get houses out of the ground and labor market couldn't get houses out of the ground and that slowed up and created a supply demand problem meaning there was a shortage of housing and that drove this market and created us a little bit of artificial inflation but i don't think next year houses are going to come down i don't think the year after that they're going to come down and why do i think that because i got my real estate license in 1978 and if you look back on the real estate market since 1950 so 75 years you've not seen houses go down in value in 75 years year over year except in a few markets once and that was 2008 when there was a housing bubble and there was a a real problem a housing economic crisis this is not a housing economic crisis this is an overall supply chain screw-up due to covet and the economic suppression that came along with making everyone sit in their homes on their thumbs and it screwed up the economy now you can argue about the medical part of it or not but you can't really argue about the economic part of it it screwed up the economy making people sit at home and not work screwed up the economy straight up okay so would you buy and sell a house this year only if you want the stress of selling in a frenzied market and buying in a frenzy market i don't worry about the height of the prices as much as i do the process the process to sell a typical home today is you're basically having an auction and the process for buying a typical home today is you're basically having an auction and that is a high stress scenario for most people and people end up doing things they regret later in high stress scenarios so unless you've got a situation where you can move i'm moving this year but i sold a ridiculously large house that really would have been very tough to sell in any kind of market other than this and i thought you know what god if you want to sell this house i've had fun with it for 12 years this sounds like a really good time to get out and i got out and i cashed out but i'm doing something different there than just moving from house to house to house to house you know about a house but it's not nowhere near as big and all this and so we didn't even say we need to downsize we didn't say that we said hey we're going to cash out at the top on this and we'll just buy something over here that's a little different than i want to move up and and neither one of the homes we bought are typical either oh yeah and also our team the ramsey research team just released the q2 state of personal finance study and they found that the majority of people are waiving inspections and appraisals because of how crazy it is they are way overpaying above asking price i'm not talking about two thousand dollars more we're talking fifty seventy five thousand dollars above asking to get a guy on our team sold at 750 000 house the other day 120 000 above market and he took one of the 22 offers oh my goodness and that was about a month that's what they're going to be dealing with if they sell this house well now they've got a whole other situation over here so i don't think it's this hey the housing market's hot let's all sell right now it's not going to work out like that well i mean if you're going if you've got someplace else to live until the thing cools off that's okay but uh to buy and the the repurchasing of it is the problem in most people's situation right now i will tell you this too in the last 90 days the market has calmed down considerable i'd say the activity is about half of what it was in middle tennessee it's still very hot but it was quite hot frenzied 90 days ago yeah that story i just told you was about 90 days ago that that happened rachel's with us rachel's in wichita kansas hi rachel welcome to the ramsay show hi jay hi george it's a blessing to get to talk to you today you too what's up well i have a question regarding our retirement savings i'm 51 my husband's 55 and we recently reached what i consider a milestone amount in our 401k or his of about 750 000 way to go and yay thank you we followed your uh investment recommendations as far as the four different types of mutual funds and it worked oh at this point it did work yes it worked beautifully at this point we're wondering is there a point when we should move some or all of this into some more conservative investments no let me explain to you where that comes from that's called the asset allocation model and it's a theory in financial planning that is widely accepted in the financial planning community as you can guess i'm contrarian to a lot of things that are widely accepted in any community much less the financial planning community so the theory is is that when you turn 60 or so you should start moving your money away from any kind of equities into bonds and money markets to stabilize uh remove the volatility in your golden years okay that's that's that's the basis of the theory and so by the time you're 70 you should have almost nothing in stock type mutual funds you should be largely in bonds and money markets and very stable type instruments at that point that's the standard financial planning model again it's called the asset allocation model the problem with that is with someone that has built the level of wealth that you have built is you're probably never going to actually touch the million dollars that you have you're probably just going to live off the income that it creates okay and if you move it to where it creates less income i don't see the purpose in that you can afford to ride out any waves that that model says you can't afford to ride out so you need to stabilize the volatility and since you've got suspension sufficient assets i'm 61 i have zero in bonds zero in money markets due to volatility all of mine is invested in growth stock type mutual funds i'm going to ride it out and i can afford to you can too [Music] [Music] [Applause] [Music] george campbell ramsey personality is my co-host today open phones at triple eight eight two five five two two five in the lobby of ramsey solutions on the debt free stage raymond and stephanie are with us hey guys how are you hey dave hey george great welcome happy to be here so good to have you where do you guys live we're out of phoenix arizona cool welcome to nashville very fun to have you and all the way over here to do a free scream how much did you pay off we paid off 229 000 900 and we also cash rolled an additional 130 000 wow wow and how long did this take 41 months all right good for you and your range of income during that time we started about 240 and finished at around 200. cool what do y'all do for a living i'm in construction product sales and i was in um escrow and title until covet hit and then i took the early retirement all right good for you i like it so what kind of debt was this 230 000 bucks it was the mortgage dave oh look at the weird people paid for house i love it very cool what's the house worth uh probably about seven hundred thousand ah it's all yours yeah i love it congratulations thank you well tell us about this 41 month journey what puts you on to doing the stuff that we teach well our our story goes back a lot farther than that um 41 months ago we just got sick and tired of being sick and tired and broke and uh our you know we had a great credit score but we didn't have squat and uh so if you go back when we first got married some 31 years ago uh we had more bills than we had money and so before we even heard of dave ramsey we created our own debt snowball and we just figured a lot like yourself and probably a lot of other people we just needed to pay off the lowest bill i took a second job did a side hustle working at a dock and loading and unloading trucks uh while i was working my uh my job and uh just took one bill at a time tore it up and uh we were performing our plasectomies before we even knew what they were i love it and uh got rid of them one by one but of course we were doing it our way and we never heard of dave ramsey at that point so we did a whole lot of stupid after that i just did a lot of crying when we were trying to do bills with no money yeah she was sitting at the kitchen table crying and i'm saying no this isn't gonna happen we need to change things yeah so but then we just got rid of all that debt and created new debt bought new homes leased cars and just created just a bunch more debt the good thing that we did all the way along even though we didn't do it in your right order was we were contributing to 401k from day one 15 great and then one day stephanie came home and said i heard this guy dave ramsey on the radio and i said dave ramsey we picked up your book i read chapter one i'm like we're doing this but kktr ktar radio huh yeah they're in phoenix that's a great radio station and uh but we kind of kept thinking we could do it our way so we had one credit card for points you know made decent money we didn't have nothing in the bank but we figured it was okay and finally like i said you know we got to the point where uh three and a half years ago just about where we were just tired and we needed a plan for retirement and we thought we need to kick it into high gear now yeah so we uh we downsized at that point uh tore up the one and only credit card that we had and we took and taught our first fpu class oh wow uh virtually last year it's hard to not do the stuff when you're done right we thought we we better give up the credit card we can't pretty much yeah right right and then uh created our little uh graph and just took every lump sum we could and paid it all off wow that's so cool i told ray when we downsized i said we can do this we can do this in five and a half to six years we started the plan i'm like we're doing this in three and a half years [Laughter] he's like put it on a chart and we did it so i love it that is so cool dave we were like the business fable of the um the the chicken and the pig you know with the ham and the eggs where the the chicken's involved but the pig is really committed yeah uh well we were the chicken for the longest period of time and then we decided you know what if we're going to do this we need to be all in pig committed that's it i like it that's it very good all in i'm going to i'm going to put what it takes i'm going to do what it takes yeah so what what do you think the key was uh to getting out of debt for you two commitment and perseverance i mean it was just a lot of just giving it our all and not giving up and um as you always ask who our biggest cheerleaders were i mean we were each others i mean we didn't share a whole lot with people because we're you know embarrassed or whatever or didn't know how to share certain things so um together we just said hey this is what we're doing you know yeah and then i'd say for me i mean it was definitely our lord and savior jesus christ we wouldn't be here today without him so i i knew that needed to be there and then you really have to have a tight loving relationship with the person you're doing this with no doubt about it and if we weren't on the same page there's no way yeah and i know steph had a hard time with the budget uh i'm i'm not friendly to the budget but yeah definitely being committed and disciplined and and to know why you're doing what you're doing to to change your future and your family tree so 31 years of marriage and this is the first time you've ever been debt-free that's it completely yeah way to go guys yeah how much is in the 401k uh we're uh over a million so so you're approaching a two million dollar net worth then that's it your baby steps millionaires and you're dead yep yep way to go guys actually our net worth yeah we're actually probably closer to three million okay so i had the 750 000 house and the one million dollar net and the one million dollar uh 401k that's all i had yeah yeah it must be some other stuff okay good three million is not bad dude for a guy who used to work on the dock right well done man well done you guys rocking it thanks love it that is so cool so how does it feel it feels amazing it feels surreal you know because it's it's like anything else once you've been doing it and trying and again our journey was we were trying to do it our way for so long and then when you finally get on it if it doesn't feel like you you really didn't cross the finish line because it was such a process to get there you know and but now i think our biggest joy is trying to mentor and and give you know wherever we can for other people and i think that's that's the joy that we get you know we use your your name as a cuss word all the time well hey dave ramsey you got to do his plan i think we're p we're bugging people so much this is how we did it you know we love this guy you know do it our way do it his way you know well i mean you're standing there worth three million dollars so it worked huh there you go there's that i mean like you said you kind of went at it side angled a little bit on a couple of the steps but you still got there yeah and uh very very well done very proud of y'all thanks for teaching financial peace too it's got to be inspiring to the couples that are in there to have their coordinator be worth three million bucks yeah i'm listening to you everything i'll take their advice yeah yeah well we also wanted to thank you dave because what you do and all your uh on-air personalities you guys add so much and it's it's really what invigorated us and and you're you're teaching the way you do it in such a candid way but also a brutally honest way when you need to i love it it's it's common sense at its best and there's just not enough of that so thank you thank you we got a copy of the legacy journey for you that's what you're living in now is the new legacy and of course a copy of the total money makeover for you to give away and pay it forward to somebody so very very well done you guys so proud of you heroes i love meeting baby steps millionaires it's awesome very cool good for you guys very very well done raymond and stephanie phoenix arizona 230 000 paid off in 41 months that's the house and everything making 240 to 200. count it down let's hear a debt free scream ready babe three two one we're dead free [Applause] look at them with the kiss step up i love it this is how it's done incredible man that's fun hand in hand that's what happens when you get on the same page so you can do it if you're 31 or if you've been married for 31. either one you can do it either way but you got to get on the same page yep and um they said that was essential to making a three million dollar net worth look at that ding ding yeah of course we don't know anything at ramsey about you know building wealth we're just about getting people out of debt that's right we're not really good for you if you want to build wealth so you shouldn't really follow our stuff if you really want to become wealthy so say the trolls this is the ramsey shop [Music] [Music] george campbell ramsey personality is my co-host today open phones at 825-5225 [Music] michelle is with us in milwaukee hi michelle welcome to the ramsey show hi dave thank you so much for all that you've been doing i've been listening to your advice since i was a teenager went through high school and college wow and graduated in 2001 and came out wanting to start my own business and have peace with it and i did and i've been able to run my own music studio since 2001 2003 got in a massive car accident by 2004 i had 125k worth of debt and was able to pay off student loan debt and medical debt and then purchase a home by 2009 so i wanted to thank you for that advice thank you and um was wondering now that i'm married and my husband and i have gone through another long stretch of that 2014. we were on our way only had 50k worth of debt i got cancer and then we had to start over scratching with the medical debt so now fast forward um sold the house passed now pass coded um pre-coded 2020 we had 421 thousand dollars worth of debt now we're at 323 323 000 worth of debt or not yes sir i'm sorry how much is that how much of that 80 280 how much how much non-mortgage debt oh i'm sorry sir um three um thirty three thousand is a vehicle seven thousand is revolving credit card debt because of a business my husband is a private contractor is it ten thousand dollars is that the only debt you have other than your house the thirty three for a car yes yeah so i make um at this uh my music studio i make about forty two hundred dollars a month when my husband is under contract he can make in between eighteen and twenty thousand dollars a month he works between um seven to ten months out of the year he wants to retire soon but obviously we don't have a lot of money in the bank because of that we currently have 54k in the bank his um his military's retired military his military pension will start in when he's 65. a month sorry sir my question is where do i contribute do i do the hsa and the max out my my 401ks or do i do my emergency fund first because we never know if he's working and not working so my emergency fund right now is at three months of our expenses it sounds like you're doing the baby steps out of order because you're saying you have a bunch of consumer debt but you've got your emergency fund in place like you're trying to do a lot of things at once it sounds like yeah because we never know whether or not he's going to be having a job so stop stop stop stop oh i don't care if he's having a job or not he's making plenty of money okay and you may need to set some money aside that's not an emergency fund to fill in but you're making forty two hundred dollars a month can't y'all live on that yeah we can live on that that's the goal no that's not the goal um don't stop having a goal do it okay our monthly bill so if you are living on 4 200 a month then you don't need to set back money for when he doesn't have a job right exactly so let's take all that money like george said and get out of debt a 33 000 car debt yeah and you've been listening to me since 2001 yes sir my husband didn't quite get on board until after i started playing uh your radio program every day during hold it so so he he finally is on board it's that's the next the write a check today and pay off your car you have to check and pay off yeah pay off your car okay and pay off pay off and pay off your other debt you're you're debt-free today but a house and you still got 10 grand left over if i calculated that right yeah yeah so my question has been how do we contribute max out the hsas and the 401ks for the tax shelter first and then go towards retirement what is what's the next step it'll try to get you through baby step three you keep jumping ahead yeah i have a problem with being patient yeah and it's cost you because you have to keep starting over it's kind of like they all you're you're not old enough but there was an old game we played in the yard where kids called mother may i and if you took a step forward without being told you could you had to take penalty steps back and that's what keeps happening to you yeah i want you to follow the baby steps and if you do that you've got a lot of money in the bank which is great because that means you can be debt-free today and you said you already have three months saved outside of that where's that yeah i have three months i have three months saved out of that but the money that we have in the bank isn't a 401ks though it's not oh this is retirement accounts we're talking so you don't have 54 000 in a savings account in cash correct in cash we have a um between 18 and 21 hours you don't have a 401k in a bank there's no such thing well yeah i understand that we're in the process of moving the 401k from one institution to the next so it's in it it's in the cash mode right now and then they're moving it so my maybe my description of that one okay i'm dizzy um there's a lot going on here here's what you need to do i'm gonna put you on hold and we're gonna put you into financial peace university the two of you go to financial peace university both of you watch the lessons together and do exactly what we tell you to do in that and stop all this other crap you're driving me nuts i mean you you've chased your tail six times in this one conversation so i thought you had fifty four thousand dollars in the bank why because you told me that and you don't have fifty four thousand dollars in the bank you have fifty four thousand dollars in an ira rollover and you're rolling it over into mutual funds not over into another 401k and you need to work and get yourself out of debt probably need to sell the 33 000 car it sounds like you don't have the money to pay it off and if you don't the money paid off it needs to go bye-bye and then we need an emergency fund of three to six months of expenses in addition to that i need you to save some money to cover the down months when he's not working in a then and only then do you start your retirement savings and then on contract labor you use a roth ira because he does not have a 401k on contract labor you have a 401k if you work for someone else or you are self-employed and you have a simple ira which is a 401k for self-employed people but that's the only thing you can do is something along those lines and sit down and talk with a smart vester pro they'll help you put all that together but they will not help you put all that together until you get out of debt and have an emergency fund in place and you've got to do that before you do anything else do it in order and you'll not have to start over so dadgum many times that's what you're facing and the question was can we retire soon no we've got to bring this mess up you don't have any money you're 54 000 to your name you can't retire you're working sorry you're working for a while i mean you got a thirty three thousand dollar card that name close to retirement you gotta get rid of the car you're working for a little while the good news is he makes a pile of money and if you'll stop just throwing this money in 63 different directions get yourself cleaned up get that foundation laid in place and then really you can pile up some a good pile of money and retire fairly soon but you're not going to retire this year you're broke you're broke you're not going to retire this year people try to do it out of order and they go well dave you gotta understand my situation we got a lot going on here yeah there is a lot going on and that's why you need to follow this plan to a tee because it works with no exception so hang on kelly i'll pick up we'll put you in the ramsey plus membership and that'll get you guys into financial peace university and that's the shortest possible path i know to get you all to retirement follow that exactly so george the other thing that comes up that um flashed through my i look at social media about once a month and every time i do it's a mistake um it's like reading comments after an article you ever read an article on the internet and then read comments successful the comments are where the dumbest meanest humans on the planet live is in comments you understand why some species eat their young and when you read comments and so social media especially twitter is about the same point these days and uh but this dave ramsey's one size fits all um let me help you with this there are some principles in life there are some principles that you operate your life by that one size does fit all that's why they call them principles tell the truth one size fits all you all ought to do it you ought to be truthful you gotta have integrity the law of gravity one size fits all everyone gets to play with equal rules you know those who follow a proven process in the financial world they get a proven result 100 of the time so yeah getting out of debt is one size fits all just like the law of gravity everyone should do it just like telling the truth it works every freaking time for everyone listening if you can fog up a mirror it'll work for you this is the ramsay show [Music] dave here we just launched a brand new listener survey we want to know what you think about the show you'll be entered to win a 100 amazon gift card no purchase necessary take the survey at ramseysolutions.com survey or text survey to 33 789 [Music] this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice george campbell ramsey personality is my co-host today this is the ramsey show thank you for joining us open phones at triple eight eight two five five so george 30 years ago when i started teaching this stuff i was first teaching people how to get out of debt live on a budget be generous live on less than you make so you have a plan you avoid debt you save money for emergencies and later for investing and all of those principles work but people kept saying which one do i do first and so i started laying out well you should do this first and that first you should have an emergency fund before you start your 401k and uh then i figured out it's easier to have an emergency fund if you don't have any payments and so you need to get out of debt first because of course i learned my lesson the hard way going bankrupt and getting out of debt and learning how important it was to be debt free as a process as a part of building wealth so all of that started to formulate after a few years of teaching in various settings and what became financial peace university it used to be called life after debt and it started becoming what we now call the baby steps the interesting thing is that now the baby steps have gone into the total money makeover book which has sold almost 10 million copies and they have become the proven plan the shortest distance between where you are now and wealth where you are if you live like no one else later you can live and give like no one else what is the shortest distance and we need a path to run on because the way you eat an elephant it's overwhelming do i do my 401k with the match or my kids college or do i have an emergency fund or do i pay on this 18 credit card debt or or or or or and nothing gets done you get paralysis of the analysis you get frozen absolutely and this step these baby steps have worked for me they've worked for millions and it's really simple if you do it they work and it all starts with baby step one having this foundation saving one thousand dollars for a starter emergency fund this is just a small buffer between you and life before we start tackling the debt exactly and if you have a thousand dollars already great just set that aside that's your baby step one any money you have that's not retirement anything you can sell that is not retirement you're going to liquidate it if it's not retirement you got some stock over here that grandpa left you you got a gold bar under your bed i don't know what it is but you got any money that's above a thousand dollars maybe you got ten thousand dollars a savings account that's nine thousand dollars you've got that you don't need past baby step one we're gonna put it all on baby step two and baby step two is the famous one that's the debt snowball where you list your debts smallest to largest you pay minimum payments on everything but the little one and you attack the little one with a vengeance side note baby step one should not take you more than 30 days maximum you need to work extra sell some stuff have a garage sale put the kids on craigslist whatever you got to do here let's get it done and you know we're gonna get busted into this get a thousand bucks quick baby step two you should be debt free but your house now you may have to sell a stupid boat uh you may have to take an extra job but most people that have followed the total money makeover baby steps in financial peace university are debt free inside of two years yeah and that's with doing it with some gazelle intensity like you talk about in financial peace university and once you pay off all that debt now you've freed up all those payments right you have that income about what it'd be like to have no payments but a house payment wow we're breathing easy and then we can move on to baby step three where we save three to six months of expenses in a fully funded emergency fund this is the final buffer where we say we're never going back into debt because we are the bank now yep grandma's rainy day fund why it's gonna rain dave you need to be positive i'm positive it's gonna rain you need to be ready when crap happens there's a pandemic coming around every corner there's something coming and if you have twenty thousand dollars cash in the bank three to six months of expenses whatever it is and you have no payments you are the third pig in the three little pigs the one that's in the brick house when the big bad wolf comes you're ready for life you're ready to go now you're ready to build wealth but that you just now have gotten up to ground zero you've just now gotten up to even when you have that emergency fund and you're debt free now you're ready to build wealth and baby step four you put 15 of your income aside into good growth stock mutual funds in retirement plans start where there's a match beyond the match always do roth and if you exhausted roth and match and still are not to 15 then go on to a traditional 401k or ira but do roths before traditional and do match before roths it's mathematically in your favor to do that up to the fifteen percent don't do twenty percent don't do eleven percent do fifteen percent while you are doing baby steps four you're also going to be doing five and six simultaneously absolutely so baby step five is where we're saving for our children's college fund and this is gonna look different for everyone there's no set number here because it really depends on your situation did you have the baby last week or is the baby 18 that makes a difference on how much you need for college right what you got to do for college it's like is this an oh crap moment or hey we're going to be diligent safe did we wait almost until too late now they have to go to college debt free they cannot participate in this epic student loan system failure that is called america right now it is horrible out there do not let your kids go in debt you do not have to go to debt go to community college for free for two years go go to in-state school work six jobs get scholarships our student loan problem is a parenting problem mom and dad let kids sign up for crap they couldn't afford bad mama bad daddy they gotta have the conversations that's where it starts and there's a reason you say baby step four invest for yourself before the kids because there's a hundred percent chance you're going to retire there's a 50 50 chance or less these days that your kids are going to go to college and graduate yeah yeah this is this less than 50 chance they're going to graduate so uh that that this is important so while you're doing 15 you do whatever you need to do for your kids college whatever you decide to do for your kids college beyond that if you can find any money you do that on baby step six and that's pay off your house start chunking on the house now when you're in one through three you are so intense your friends are freaking out your grandmother thinks you need counseling you are gazelle intense like a gazelle running from a cheetah when you're in four through seven you're not intense anymore you are now intentional you're just doing it on purpose but you're no longer on beans and rice your own beans and rice rice and beans scorched earth on one through three two you get those three things done now get that house paid off the average person following this stuff is paying off their home in about seven or eight years now that tells us that the whole program is taking about 10 years and the average baby steps millionaire the average everyday millionaire that we've studied we're finding them become a millionaire from the time they start with intensity followed by intentionality become a millionaire in about 10 and a half years yeah 11.2 years 10.6 years are the two numbers we keep running into so this is completely possible yeah and once you pay off that house it's time to build wealth and give outrageously in baby step 7. that's where it ends yeah you will be a millionaire shortly after your home is paid for if you don't at that moment and and then you continue to build wealth and you you raise your generosity and you continue to build wealth and you raise your generosity and you enjoy the money that's where it gets fun only three things you can do with money and you should do all of them at baby step seven and that's the route you're going that's where you are that's who you are that is the baby steps this is the ramsay show [Music] [Applause] life is full of firsts [Music] as the first and longest serving christian health cost sharing ministry chm has shared medical expenses for its members since 1981. we believe you should have the freedom to focus on your health while being supported by a community of believers giving you the opportunity to create many more firsts [Music] [Music] george campbell ramsey personality is my co-host today jason is in washington d.c hi jason welcome to the ramsey show hey george how you guys doing today better than we deserve brother what's up oh man i've been pondering uh purchasing a home here been looking into it now for about six months or so um actually was under contract and got out but now i'm just pondering the whole idea over again and wondering if it's even something that i should get into now or if i should kind of hold off for a while and save some more money so just looking for some guidance there are you out of debt uh so i have uh sixteen thousand dollars um in student loan debt which is currently not occurring interest i don't believe it starts again until february i believe that doesn't matter you need to pay it off how much money do you have saved about 55 000. is that your only debt i have a vehicle which i purchased a few months ago i put 20 down on i owe about 23 000 on that okay we teach folks jason not to buy a house until they're debt-free and have an emergency fund of three to six months of expenses plus a down payment you do not have that much no you do not need to buy a house right now you pay off your car pay off your student loan build an emergency fund and then build a down payment how much of a down payment i mean 20 that's kind of i think what you i'd love for you to have that because you avoid pmi private mortgage insurance but on a first-time home purchase i don't yell at people for having less than that yeah but i will yell at you for having a car payment on a student loan when you buy a house you're asking for trouble right right and i'll yell at you not only for the entertainment value but just also to help you [Laughter] yeah now i understand please i enjoy the entertainment as well i'm messing with you but it's all good brother the thing is this if you buy a house with payments you are inviting murphy to move into your spare bedroom your transmission will go out the first week yeah yeah i could probably even if i don't you know knock it all out at once i could probably kind of chunk away at the student loan debt in the vehicle over the course of the next year no no no you misunderstood you have the money in the bank today to pay them off no you're saying do it right now by the end of the day brother moment moments after you get off the air you should be debt-free gotcha okay and then build an emergency fund of three to six months of expenses you ever heard of us talk about the baby steps i have i you know i tuned into you for a while and then i stopped and i just have to turn it on today and i i've been listening for about the past two or three hours two hours and i wanted to give you a call yeah well you heard us just describe it you heard us describe it in the last segment right i did i did i actually took a couple notes oh that's good well you know i took some notes here too and you've got 55 in cash and you have 39 000 in debt which means you're debt free today with about what sixteen thousand dollars left over which may be an emergency fund i don't know what that looks like for you of three to six months of expenses only then are you gonna start at zero and start saving for this down payment so i know it hurts because you've been saving up this money but that money is not down payment money that money is now debt money that money's going towards your emergency fund and then i want you to start saving up like dave said 20 towards that down payment and on top of that i want you to do it within these parameters i want you to do it on a 15-year fixed rate mortgage where the payment is no more than a quarter of your take-home pay what that's going to allow you to do is do the other baby steps and have margin in your life to where you can actually enjoy things perfect that's exactly what you should do lena is with us in tucson arizona hi lena how are you i'm jeremiah are you better than i deserve what's up i am a little bit at odds with my husband my husband has been bit by the solar bug the solar boat i know that was a bug are those loose in arizona sometimes uh no he is determined to get us to get solar and i disagree as it would result in a loan because we don't have the finances to do it outright and your question is what how do i convince them it's a bad idea why do you think it's a bad idea it bothers me the whole idea of having a loan just creates more financial pressure and i feel like stressed and i'm the one that does all the books yeah so it is i i believe in solar panels i endorse solar panel companies in several of our 600 markets that this show airs in and i am not against solar at all as a matter of fact the solar technology is greatly advanced over what it was uh 10 or 15 years ago and so the quality of it it's like batteries uh in these battery operated cars you know the whole thing's different than it was a few years ago the batteries wouldn't last 10 minutes now they're last you know for 300 miles same thing's true in solar the efficiency has gone way up so they're excellent products there is not an excellent product on the planet that i will tell you to buy with debt bad idea well wait a minute it pays for itself yeah over five years during which time the solar panels become worth zero they do not add value to your home there's no market study that shows they add value to the home equal to their cost so the only way you make your money back is on savings on utilities and if you've got a five year or less break even period that's a pretty sweet break-even period on solar and the only way you invest in something with a five-year break-even period is with cash yeah his biggest argument is that we'd be changing our 400 electric bill for 150 150 loan no that's not true is the problem because the value of the stinking things is going down you sell the house the loan is screwing up your house sale you've got a mess on your hands he's only thinking about this month he's not looking at the overall picture it's a very bad analysis that leads people to finance solar panels don't don't do it i agree with you i wouldn't do it anything you want to add or no i mean that the biggest thing here is i i don't know how much debt you guys have lena but i want you guys to realize that debt freedom is just a lifestyle that you're gonna live and that means we're gonna figure out a way to pay for this thing in cash now i mean a sinking fund for six months that we put this money towards in order to pay for that in cash that's the only way i want you to get these solar panels the only way that makes any sense at all all right brittany is with us brittany's in madison wisconsin hi brittany welcome to the ramsay show hi dave how are you better than i deserve what's up um so my husband and i are thinking of um well we already signed up for the llc for the cleaning business and everything um but my question was should we have like the thousand dollar savings for that we currently have no debt except for our mortgage and we do have three months of expenses currently saved up anyways okay your business finances are separate from your personal finances yeah this this is our personal finances but um so far we are just going to use money that i've been making from my current job to fund this business why would you have to fund a cleaning business you should make money from the first day yeah we just started with the llc so we're just starting to try and get clients now yeah well the llc is not even necessary but that's okay that's done and that's behind you so now go get clients you shouldn't have any expenses to set up a cleaning business okay go make some money okay and and then let's worry about this and no you should not quit your job to start a cleaning business you should start a cleaning business on the side and when you get your cleaning business income up until up close to what you're making then you can afford to quit your job until then it takes too long okay thank you yeah you could get yourself in trouble because you you end up being desperate looking for clients and taking clients you shouldn't take taking jobs too cheap everything else because you're running on desperation mode yeah really important to get that boat close to the dock oh yeah and there's a lady in my neighborhood who does this exact thing she's got a day job but on the weekends she's cleaning houses and at nights and so she comes over once a month and this is something that she likes she wants to do as a side hustle and she's going maybe i'll do this full time but you've gotta not get enough clients maybe that's in a neighborhood facebook group where you're at but you can do this it's just gonna take some time and like dave's saying i want you to get this bow nice and close to the dock so it's not a leap of faith this is the ramsay show [Music] [Applause] [Music] [Applause] [Music] so [Music] i'm just sitting here drinking my call [Music] open phones this hour this is the dave ramsey show the ramsey show thank you for joining us george campbell is our co-host in the lobby of ramsey solutions on the debt-free stage with a question kathy is with us from alexandria minnesota hi kathy how are you hi i'm good good how can we help i have a question about the budget i have farm rent that i get every spring and if i put it into my budget into my income in the spring i can't zero out my balance at the end of each month so how do i put that in there divide it by 12 and put it in each month but then some months i have higher expenses in other months so i don't not sure how to do that do you have other income that you guys actually live on and this is just like rental income yes i have uh uh social security and uh pension and you guys live on that pretty much except for some of the bigger things like income tax and uh insurance some insurances okay all right and those are kind of once a year things uh yes okay so probably what i would do is just set your budget up on everything but the farm income and then what i would do with the farm income is what sharon and i do when we have a lump sum coming in like for instance a publisher sending us a check on a book so royalties check okay so similar situation we get this big check again we know it's coming we know about what it is then um what we'll do is we just spend that one time on paper and so that means we're going to probably put some of it in investments we're probably gonna set some of it aside for taxes in your case we're gonna set some of it aside for uh giving uh we're gonna set some of it aside for what was the other you had insurance insurance yeah some stuff that you're not picking up in your monthly budget but you know when that check comes in once a year that it's going to have names already on the dollars but it doesn't necessarily have to be monthly expenses because if you disperse this out 112th each month if you put in a savings account and put 112 each month into the budget you're going to be turning around and pulling it back out saving up for the taxes and pulling it back out and saving up for the insurance sure so we're just you know it's just dog chasing his tail then so instead what i would do is just say i'm going to take this one check and give every one of those dollars a name and set it over here with those dollars named now what you don't want to do is just let it sit there to miscellaneous okay because if it doesn't have a name on it it just disappears right and every dollar still needs an assignment just like in a monthly budget okay that makes sense yes it does good way to go at it thanks for asking thank you that's a cool question yeah it's really a regular income question we talk about this with every dollar you know with sinking funds and things where you go hey i know that insurance is going to have to get paid out in december so we're going to save up for those 12 months so that's one way to do it or you can just go hey we're going to give every dollar a name coming out of this lump sum yep that's the way to go at it exactly good question open phones here at triple eight eight two five five two two five bernie is with us bernie is in massachusetts hi bernie welcome to the ramsey show hi dave thank you so much for taking my call sure what's up well two years ago we had a paid off house and about four thousand dollars in the bank and no no debt and then our house burned down yeah it was a total loss wow um how traumatic yeah oh yeah we even lost our pets we didn't even have shoes like it was it was good it was sad couple days before christmas you know standing there in 17 degree weather wow but anyhow we were well insured and we have since rebuilt um and you know i'm i'm a cheapskate so when we were going through this process i was extremely deliberate and frugal bought some of my light fixtures at architectural supply uh salvage places whatever so anyhow we came out pretty good we now again have a paid for house but i now have about a hundred thousand dollars extra because i bought used furniture i didn't run out to the furniture store and replace everything i own with brand new stuff so i would like to know the best way to use that money [Music] wow we didn't have any retirement accounts beforehand just before thousand dollars right how old are you guys my husband is 69 and i'm 62 this month okay sounds like you need it as a nest egg doesn't it yeah the outside of the house is still not finished i mean like the ground we've still got like a dirt past or the front door and we haven't paved the driveway herox right now we're very low no i don't know if i should hang on to the money or you need to you need to set a budget to finish the house can you finish can you finish the house for under a hundred thousand oh sure okay oh sure finish the house finish the house and invest what's left okay what like a mutual fund yeah your house is not finished though so you don't have a hundred thousand dollars left because you don't have a driveway you have a dirt path to the front yard you're not a hillbilly you need a dadgum sidewalk out there well yeah i think we could finish that up for probably about twenty thousand okay then you got eighty thousand dollars is that is the house actually finished then yes we're living in it no i'm when you put twenty thousand dollars in the driveway in the sidewalk are you done oh yeah okay what is your it would you have income from any other sources uh my husband collects 1600 a month in social security i have not filed yet for social security even though i'm 62 this month i'm exploring i don't know if i should file yet or not and one of the things we did when we rebuilt was i looked at the garage and the size of the garage and thought boy that's a lot of space above that garage so we put in an in-law apartment when we built and i have a son who's renting from us so we're getting an extra 600 a month from the in-law park okay well it sounds like you need to invest the 80 000 and create some extra income for you all to live on yeah in good mutual funds and sit down with a smartvestor pro click smart buster pro at ramsey solutions select one in your area and sit down with them but don't do that and have a dirt path to your front door finish the house and because you're going to be living there a long time and that dark path is gonna be a reminder of the trauma that the the the fire was and the fire a fire trauma losing everything pets and everything in the house fire is that's a it's in one of the it's on that list of one of the 10 things that can put you in the hospital from stress yeah that's very emotional and uh bernie like dave's saying the point of the baby steps is not to be miserable and so i don't want you guys to sacrifice a level where you have a dirt path going up to your house and you have you know college dorm room furniture because you're sacrificing i want you guys to enjoy the things that you have and you can do that without going crazy i mean it sounds like you're very frugal already but i don't want you to go nuts on this stuff so do what you need to do to get the house in order to where you enjoy living in it and you can get to the front door and then invest the rest like dave's talking about so that you guys can retire with dignity now now keep in mind if you make ten thousand dollars on eighty thousand that's eight thousand dollars a year okay so we're only talking about a few hundred dollars a month we're adding to your budget it's not a ton but it'll help some just like the mother-in-law apartments helping some with the sun with the kid reading it and all that and so you just keep taking those little steps but you're going to make these you do not have a big monthly income with all these things added together you still don't have a big monthly income and so you're gonna have your your social security check's gonna start pretty quick because you're gonna need to add that to this pile to be able to live on what you guys are actually making unless there's income coming from somewhere that you did not outline for some reason here yeah or that we didn't understand do you have a rule of thumb for when to take out that social security depending on your situation well in her case it sounds like she's got to take it out because she's i think they're starving it's necessary um but um you know if you don't need it the longer you wait the bigger the check is but um you know me i you know i'd get it as soon as i could get it because i want to get all i can get out of the government before i die fort runs out which sounds like it might happen yeah you just never know this is the ramsey show [Music] [Music] [Music] our scripture of the day matthew 5 16 let your light shine before others that they may see your good deeds and glorify your father in heaven thomas paine said reputation is what men and women think of us character is what god and the angels know of us george campbell ramsey personality is my co-host today david is in raleigh north carolina hi david how are you good thank you for taking my call dave sure what's up so uh i've got a kind of a complicated question i bought a wedding ring dave and i'm gonna ask my girlfriend to marry me in a few weeks and i want to phenomenal so i want to try to pick your brain for a second and go over our financial situation um so i am a 39 year old single dad got a 12 year old little girl i've got 67 000 saved i've got 50 000 in my 401k 5 000 in my roth um and last march i paid off my house which is around 450 000 right now um 20k in my daughter's 529 plan and i make about i make 75 000 a year you have done well sir yeah i've been at the same job for 19 and a half years and uh i've been a big fan of yours for the last 10 so you know just kind of really focused but uh here is the uh here's the kicker my girlfriend is 39 years old she makes 211 000 a year she makes 38 000 a year on her rental on incomes she owes 171 000 on one of her rentals 44 000 on a home equity loan and then 468 000 on her primary house now her primary is worth about 700 her first rentals worth about 330 and she has a 260 000 paid for rental house already um and about 220k in her 401k so she's doing quite well herself um she's only got 8 000 in cash savings though which we argue about that all the time she doesn't feel the need to to have a lot of cash savings and i'm the opposite um my question here is i i i enjoy the rental houses and i i see them i see a good future especially in the in the raleigh durham area with these rental houses um and i want to attack them once we get married and everything and we'll probably actually tie the knot within a few months so um do i go after this 44 home 44 000 home equity loan then work my way to the 171 000 loan and then start tackling the 468 or would you recommend me going to a bank combining it all see if we can get a better interest rate and attacking it that way i'll just work through what's there okay now what are you gonna who where are you gonna live so we live in the 468 thousand dollar house well i will be moving in with her and then i'll be renting the 700 000 house says 468 out on it yeah correct yes sir what's happening so yours becomes a rental mine's gonna become a rental yes sir okay so you have two paid for rentals and a primary that you owe 468 on correct and your household income is going to be approaching 300. i should be around 325 but we also 171 000 on another one i got that one and then okay no i i would knock out the uh uh the the home equity loan that 44 very very quickly probably out of your savings and then uh then then i'm going to build up uh from there we'll treat that thing like credit card debt and then i'm going to build up my make sure i have my three to six months of expenses set aside and then i want you to pay off the primary okay and then the rental last that's surprising i i didn't expect to hear that okay so we'll go ahead and start attacking the 460. here's why okay when crap happens like pandemics if your personal residence is paid for it's a different level of peace than if your rental is paid for okay yeah i i feel you there and so it's like okay it's bad for those renters over there because i'm gonna have to sell that one versus oh crud we're in trouble over here at the main castle problem problem king and queen you know and uh it just activates a different part of your soul and so one of the things i do when i'm answering these questions is i run best case and worst case scenarios through my head and whatever the answer is it ought to line up with both okay and that's you know so i i like to take an extreme worst case under what conditions would you be having an oh crap moment uh and be the best off because you know because the thing hit the wall so to speak would there be any harm in him selling his house that's 450 to knock out a lot of this debt there wouldn't be and i probably would go there except they make 300k and so they should be debt-free on this residence in three years 150 a year for three years so that's the key that's the key thing here where you go you don't need me they had 100 income i sold this house yeah but to get it knocked out because it's going to take too long to pay off that 468. but they got enough money flying around in equities here that they can do a shell game pretty quick and there'd be no peace yeah underneath right i mean you could clean up the mess pretty quick but um if you add it all up it's 200 uh it's 700 000 bucks in debt and they've got 67 000 in the bank so you know we could call it uh you know 650 thousand dollars in debt how quick can you pay 650 off making 300 real quick the whole thing's gonna be done in five six years yeah the whole thing and then future real estate pay cash exactly good point good follow-up because apparently she's got the rental bug and he does too yeah they love real estate so it's a good thing nothing wrong with that but let's make sure we're paying cash as we go good point chris is with us in tampa hi chris welcome to the ramsey show good morning dave how are you good afternoon i guess either one works for me brother how can i help right so my father recently passed away in january and left me an exotic car um i'm in the process of getting it running um and my question was it's kind of he bought it originally it's a 1965 356c porsche and he bought it originally brand new it's a gorgeous car um but i'm 140k basically into my house uh i was wondering should i sell that car and be debt free i'm debt-free other than the house how old are you 51. okay uh i make enough money and i think i've got enough savings i don't have 401k i got enough what's your household income probably about 30. 30 000 a year no buck 30. oh about 30. i thought you said about 30. okay no no no that's a little difference okay so how quickly if you don't sell the car does the hot does the uh 141 get paid off i'm two years into a 15-year fix you're gonna pay it off in two years no i'm two years into how quickly does it get paid off was my question 15 years title no i don't know no you make 130 000 a year how fast do you pay off 141 000 four years really yeah let's start 30 000 bucks a year okay is that worth trading that porsche for i don't know what i can't gauge in the on you're the only one that can gauge it is the nostalgic value of this the older i get the more something that my grandpa owned or my dad owned means to me i have a lot of that though that's the thing i mean but his fortune is i'm already getting rid of the boat i'm selling his house uh matter of fact probably a lot of the assets from the house once i saw the house can't go to pay off mine i don't know it's just a question of you know is that kind of money worth future investment in future retirement yeah i i think that's basically this is a this is a collectible that in decent condition should go up in value not down in value i don't think it's an investment product but i don't think you're going to lose half the value like you would on a new porsche um in a you know you know in five years which any new cars that way by the way but um so i you know you just gotta gauge out how much you wanna ten years from today are you gonna be crying that you saw this porsche [Music] that's that's the way you ask yourself the question nothing's on fire here with chris he's doing fine he's got a good financial situation so there's no nothing telling me yeah you got to sell the car today yeah agreed great good show george well done thank you it's been fun james childs kelly daniels in the booth i'm dave ramsey your host 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] dave here we just launched a brand new listener survey we want to know what you think about the show you'll be entered to win a 100 amazon gift card no purchase necessary take the survey ramsey solutions dot com survey or text survey to 33 789 [Music] you

Channel: The Ramsey Show - Full Episodes

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Id: Ske8bxKPs9Y

Length: 121min 20sec (7280 seconds)

Published: Wed Sep 08 2021