It's Time to Change How You Handle Money!

[Music] this is the ramsay show 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 it's the ramsey show where dad is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host thank you for joining us open phones at 825-5225 it's a free call and some say the advice is worth exactly what you pay for it we're glad you're with us america triple eight eight two five five two two five esmeralda starts off this hour in jacksonville florida hi esmerelda how are you hi good dave how are you better than i deserve what's up hi so i'm in a brand new relationship we are in the getting to know you phase but i'm already very fond of this man and i care very much about him and his young girls um i've told him i'm following the baby steps but he's heard good things he's not familiar and he's currently playing the zero percent credit card game now i have thoughts out like i could just go up i have been restraining myself okay and i'm just asking for your guidance on how do i coach or guide him in a gentle way to not step on the toes of this brand new relationship but also start to try to teach him about what's helped me and i'm on babysit four yeah uh you don't talk to him about his stuff you talk to him about your stuff let's tell your story just tell your story a lot and it is um it's your story and you know my story was that i did this and this and this and it didn't work and i used to screw around with credit cards all the time and they didn't end up being a blessing to me and i decided that what i wanted was the peaceful easy feeling to quote the eagles right of uh being debt-free right i i you know i just i and so i've been working to get out of that and you know i told you a little bit about that and and i got to tell you it's something that's kind of central to what i'm doing right now and i'm really excited about it and so means a lot to me and i'm getting out of debt and and the feeling is amazing the empowerment that i've got is amazing and just tell your story if that isn't your story then change it and make it your story but i mean i was just trying to superimpose my my verbage over you in that situation you follow me yes sir that and that is my story and i want it's like i want that form too but you're right okay i'll focus on me he'll he'll come around he'll come around and you know there's other things in the relationship that you're gonna get have serious discussions about as the relationship goes through its various phases i mean you're gonna have a lot of discussions if you're smart about parenting and about what being in those little girls life means if you're going to be there what role you're going to play you know you're going to want to find out um that that uh if um if one of them tattles on you if you're in trouble meaning that if meaning that they they hold too high a seat in the household in the event you're there um you know you're gonna wanna you're gonna get that positioning straightened out at some point agreed and i've got one of my own oh well there you go and how are we going to how are we going to do the brady bunch you know you do the mix here right you know that's a complicated it's a complicated process and so those discussions are very serious and very heartfelt and um mean a lot to both of you and so does the discussion around money and so does the discussion around religion and so does the discussion around in-laws that are crazy and what are we going to do with them and you know because everybody's got one and you know what what's the discussion so it's kids money in-laws and religion are the four big things that break marriages up and if you can have good solid in-depth discussions prior to marriage about all four and be on the same page about all four you have a very high statistical probability of winning with with your marriage and money's just one of them you know so that that's good you know you so you just as this as but no more would you get involved in a deep parenting discussion than you would a deep money discussion at at the early stages of a relationship but somewhere up in there when things are getting serious you definitely will right yes yes yeah yeah at some point you are going to have to throw out there you know you're a little further down the road probably but this means so much to me that it's like a deal breaker if we can't be on the same page about money and it would be because i can't i can't go back i don't want him to struggle either because i care too much you know no it's not yeah i i don't want to attach myself to a sinking ship that too yeah you've done that before and i won't do that again and um even if it's a really pretty attractive sinking ship [Laughter] fair enough fair enough thanks steve have fun kiddo we appreciate you calling in erica is with us in sacramento hey erica welcome to the ramsay show hi dave so um i have a what would dave do question um we decided to finally start the baby steps and we have 31 000 saved up right now that we were planning on putting it towards our thirty two thousand dollars in credit card debt but we found out that my husband um is going to be switching over vehicles for work um two years ago we bought a truck for forty two thousand dollars that his company has been making the payment every month and paying for gas and mileage but in four months they are going to give him a new truck and they're going to be responsible for paying his gas mileage insurance wear and tear wonderful um we yeah we owe 20 000 on that truck so in four months we're going to be responsible for that you have been responsible for it all along yeah i just gave you the money for your responsibility exactly so my i the way i see it i have three options we have three options um i can we can save up five thousand dollars a month for the next four months pay the truck off or we can sell the truck and make about three thousand dollars because i have a small little beater car that i drive for three thousand but it needs about two thousand dollars worth of work um what would you do would you sell the truck pay off the truck both of them and buy you an eight thousand dollar car okay and he's got a trucks they're giving him yes yeah that's what i do yeah for sure and you got almost enough money between your car and his truck to do that you'd only put 2 000 out of 31 towards it three and three three out of yours three above on his truck right yes and and two out of your savings and we got an eight thousand dollar car for you that's a dead gum serious move up for you because you're driving you're driving crap you know and we get rid of his 20 000 truck and he drives the company truck right yes i love it all right sounds good that work for you it does um yeah we just we still have a um ninety thousand dollar heloc and a ninety thousand dollar mortgage so yeah well you're going to attract that heat lock now with the 29 000 that's left over out of the 31 right [Music] yes and and now you just get roll up your sleeves and get after it do that budget thing that gazelle intense thing that uh you know we're not gonna see the inside of a restaurant unless we're working their thing because we're getting out of debt we're doing this that's how you decide this is the ramsey show [Music] [Applause] [Music] [Applause] [Music] 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 verses [Music] [Music] [Music] thank you for joining us america open phones at triple eight eight two five five two two five you jump in we'll talk about your life and your money this is the ramsay show where common sense shows up for your life your work your money your relationships david is in houston texas hi david welcome to the ramsey show thank you very much i'm dave i appreciate you taking my call sure what's up i'll be pro i'll i'll be brief here's my question my wife and i have really worked hard over the past two years working on paying off our mortgage good we've got 60 000 left on our mortgage wow you're almost there all right i'm i'm now 59 and a half and i've got 1.9 by 401k should i take the money out and be done with this and pay it off or keep plugging along on my mortgage look at you congratulations millionaire thank you how much of this did you inherit zero well hang on a minute my grandmother left me a uh 50 uh savings bond so that probably helped me out you know what probably helped you out was her character in in your dna i like it that's awesome so uh oh man uh what's your household income sir um 260. cool what's the house worth uh about 500. okay well there's certainly nothing wrong with cashing enough out today mathematically to pay off your house instantaneously you're debt free okay would you say the house is worth 500 okay all right cool all right so you're worth over two million dollars net worth we know that so you could do that and it would would be blank however you make enough money to knock sixty thousand dollars out real fast and allow that money to lay in there and continue to grow tax deferred or tax free so i'd be tempted to not let the government get their hands on the money if it was me uh just because you can do it within a year right well the gold is uh july yeah so i mean for the difference in the taxes that you would pay by pulling the money out of the 401k there's no penalty because you're 59.5 but the taxes i just go ahead and use my income to do it i'm already paying taxes on it and let's be done by july just for that reason but there's no wrong answer here it's just that's an idea yeah that's what my wife wants to do uh and but i kind of wanted to be done with it start 2022 with fresh with with zero debt yeah i said i'll call dave and see what he's saying i i'm gonna i'm gonna go with your wife because the taxes on the 60 grand are going to be 20 grand in your world and you don't need the money out of the 401k you're not going to be touching it anyway you have mandatory withdrawals if it's traditional that begin at 70 and a half right but until then you could let that money grow and instead of giving that 20 000 to the government now wait 10 20 years to give it to the government so i i i'm with you emotionally i'd like to be done right now because i'm going to rip the band-aid off guy but uh but mathematically cost you extra 20 grand this year to do it this year unless you do it out of your income and you'll be done by july anyway if it met six years instead of six months i do it in a heartbeat but it's six months it's all in the same tax year even so yeah i'm sorry i'm going with your wife on this one but it's let me just tell you again neither one of these boxes are in the stupid column you can check either one of them and they're both in the smart column you guys have been amazing your heroes your everyday baby steps millionaires you've done the stuff we talk about well done i'm proud of you all right denise is in indianapolis hi denise how are you i am well i have a quick question as well uh i have an annuity that i cannot access i can't roll it into an ira it was given to me through a divorce i have the option of beginning to draw monthly payments as early as age 60. my question is should i treat this as i would with social security and begin the draw as soon as it is available and reinvest it into mutual funds or should i wait and let it continue to grow it'll grow faster if you pull it and invest it it'll grow faster if you pull and invest it so are you sure you can't take a lump sum on this and roll it uh i actually worked with a smart investor pro and he said no we can't do that okay because i would think you could move this to a variable annuity from it's a fixed annuity right but is it because of the divorce settlement uh documentation or is it just the type of product it is i think it's the type of product okay well there's a thing called a variable annuity that's mutual funds inside of an annuity and you can move from annuity to annuity pretty easily uh unless you've got severe how long have you had this other annuity uh about five years yeah you might have a seven years worth of uh surrender charges in it and that may be what he's looking at or she's looking at this saying don't take those surrender charges circle back with that smart visitor pro again and ask him about moving it to a variable annuity and why that doesn't work they may be right but i want to understand why if i'm you so rule you know my first choice would be moving to a variable annuity and get the whole thing in mutual funds inside of a variable annuity my second choice would be to take it as quickly as you can like you said like social security early and just start moving it monthly systematically over to good mutual funds that way so good question thank you for joining us one week from today thursday january the 13th is our free free free free free free live stream event called building wealth in 2022. the in-person tickets have been sold out for a couple of weeks over 1500 folks are going to join us in the live audience over 60 000 are already registered for the live stream we're thinking we're gonna have over a hundred thousand join us for that on thursday january the 13th it's a big deal building wealth in 2022 rachel cruz george campbell ramsey personalities best-selling authors will be with me to talk about how to build wealth this year we're not only going to talk about what's going on out there in the real world uh stuff like uh nothing down real estate that's happening nfts are happening uh man i'm telling you there's a bitcoin is happening there's a lot of things going on out there in the world and uh you know what is the best way in 2022 for you to build wealth and why and let's talk about this sanely without all the emotion and all the name calling and all that we're going to just show you what it really is we're going to unpack so you really know what to do you got to tune in join us exactly one week from today building wealth 2022 it is a free live stream january the 13th if you want to watch it you do have to pre-register to watch it it is free though go to ramsey solutions dot com slash wealth ramsey solutions dot com slash wealth our question today comes from blinds.com find out for yourself why blinds.com is the number number one online retailer of custom window coverings free samples free shipping and new promos every month great american company blinds.com always use the promo code ramsey josh is in georgia my brother is getting married next year he asked me to be in the wedding party as a groomsman very nice he's having a destination wedding five hours away and going would cause me to sacrifice ten thousand dollars in lost wages one three thousand dollars for a hotel driving expenses food etc for me and my family i want to go and show my support but i don't think it's feasible to lose that much money for a wedding while i'm still in debt with a mortgage and a car payment should i be part of the wedding or tell him i can't afford it uh josh you're exaggerating you're gonna go for a wedding and you're gonna lose ten thousand dollars in lost wages i'm calling bs three thousand dollars for a hotel or the flip is this i'm calling bs so maybe you just fly in just in time for the wedding and stay one night and you fly right back out and you were there for your brother's wedding but you couldn't do all of the week-long party that's probably what i'm doing yeah you're exaggerating because you don't like that he's doing this and forcing it on you i think you can do this very very inexpensively and it's your brother and you probably should [Music] [Music] if you're looking for ways to update your home without blowing the budget i've got it for years i've been telling you about our friends at blinds.com blinds.com makes it simple to shop top quality blinds shades and interior shutters from home with easy online ordering and free shipping with blinds.com there's no need to renovate your entire home just change out what's on your windows with upscale choices like faux wood blinds cellular and roller shades or even outdoor shades plus blinds.com guarantees the perfect fit whether you do it yourself or you have them measure and install everything for you shop their latest looks and see how much you can save at blinds.com today the easy and affordable way to make your home more beautiful is blinds.com [Music] thank you for joining us america this is the ramsey show we talk about your life your work your money your relationships we're glad you're here triple eight eight 825-5225 morgan is in atlanta georgia hi morgan welcome to the show hi thank you um my husband and i both work in a volatile industry we were introduced to your principals about 18 months ago and immediately went into store mode since then we've saved 50 000 and i started a second career unfortunately we found ourselves feeling dave ish wavering in and out of emergency mode as we found success with my second career using that to pay off some debt refinance our house cash flow emergencies and do some home improvements we still have 65 000 in debt though and i'm wondering you know can we continue on this path using my second career um to to finish paying off the debt uh and preserve our 50k we've saved or is it time to just decide you know you're either in store mode or you're not and how do you do home repairs when you're in a snow storm home renovations when you're in storm mode that's illogical my second income my second question but you're in storm mode you're too scared to pay it on the debt but you're not too scared to fix your kitchen up i'm i think i'm more scared to not have money i haven't i still have two careers you fixed up your kitchen no i didn't i i didn't well what was the home renovation well it was a home improvement it was a retaining wall okay so why couldn't that wait if you're in storm mode that's why i'm calling yeah my point is is that you're picking and choosing when you decide you want to be afraid or not i don't want to be afraid when i'm talking about my income from the new career i don't want to be afraid when i'm talking about doing something i want to do which is a retaining wall but when i want to pay off debt now i want to be afraid i guess i'm i'm afraid i'm going to use that savings and then i'm going to lose you used it for a retaining wall that's my second job and it's it's um it's all your income it's all your income it's all one pile there's no bifurcation here okay you're not getting it you are really inconsistent in this and so you got to decide what you is you got to decide are you going to keep running this plan or are you going to say all right this storm mode thing is not real or it is real if it is real it means you don't need to do any thing with any money except pile it up that's storm mode okay we think we're going to lose our jobs our careers are volatile and we're going to be on the street homeless and we just need to stop and know no retaining walls no vacations no eating out we're afraid we're going to lose our income so we're not willing to work a plan until we can get stabilized we are pushing pause on any progress of any kind anywhere in our life and piling up cash getting ready for a nuclear winter that's storm mode if you're not that scared then you need to cash all this thinking money out and quit screwing around and get out of that how do we know when we're in a volatile industry how do you know when how do you feel good about exiting storm mode well there's okay there's two kinds of fear here how long have you been doing this volatile industry my entire career for how many years um 15 and how many times have you been without income zero okay so the volatile industry thing is a mythology i hope so no honey it's 15 years and you've made money every year it you know you you're just afraid of the fact it goes up and down but the actual facts are disputing your feelings okay aren't they what am i missing um i i don't know i just am not confident in my career i mean this is the least confident i've ever been what do you do i'm an airline pilot okay all right uh well today they could use your help they can but they also could determine that because i've chosen medical freedom yeah i understand that you've got to be put on the street you can be put on the street okay so until the storm passes you don't need to do anything else or until you get your income up in another area which means the storm has passed you don't need to do anything else and so um i don't disagree with your conclusions or your stance or anything else it's not the point uh but for 15 years the airline pilots have not been volatile i mean it's the er the income is irregular based on how much you work or don't work but the chances of you being completely out of work for the last 15 years is is higher at this moment than it has ever been based on your choices but i mean airline pilot so what okay the the other thing is is that you are an airline pilot now what that means is that you prepare for your job every day against only and or mostly against worst case scenarios right everything you do is to avoid a crash it is in your it's in your nature thank god because that's what you're good at right i mean i don't really want you flying unless you do that okay so i'm not it's not a criticism but the very the very essence of your job is to constantly prepare for worst case scenarios it's safety thank you exactly exactly but that that translates then in your it gets into your nervous system and that translates over to your checkbook and you go okay i'm gonna run my finances the way i fly the airplane i'm gonna only prepare for worst case scenarios and i'm gonna pretend like we're about to crash at any moment and i've really got to have thought through every checklist i've got to talk every backup switch i got to throw every scenario right and because that's what you guys do i mean you're really good at it thank god that's why we have very few airline crashes so um you know you guys your profession is amazing but but the the essence of your profession doesn't help your nervous system adjust to your finances your finances are a lot safer than you you shouldn't run your finances like you fly an airplane that's what i'm trying to say okay that makes sense it does so you guys have a lot of money you've done very well you're going to be okay how much notice do you think you'll get you're not going to get put on the street in 24 hours you're probably going to get you're probably going to get six months or 90 days anyway notice on uh on vaccine right uh yeah it'll take two to three months yeah okay if that actually happens let's worry about it then okay in the mean in the meantime because let me just say this way okay let's pretend that that you had no money because you put it all on the debt when you get off the phone here this is a great conversation by the way thank you for calling hello terrifying i love it i love it well i mean i'm messing with you because but it's really a good conversation so let's pretend you got you had put all the money today on the debt and you had no cash except a thousand dollars because you're working the baby steps pure okay how much debt have you got about 65k oh my god you're almost debt free when we write this check then okay uh but let's pretend you're not that that you got 15 000 in debt because we wrote 50 towards it today and you got the call tomorrow right after you wrote those checks and the money was already out the door that you got 60 days if you didn't do anything at all for 60 days except pile up cash you'd have a really big pile of cash in 60 days wouldn't you we could come up with some yeah yeah i'm talking about you do nothing no retaining walls no going out to eat no nothing and you use all three sources of income and you just do nothing and you pile up cash because it's an emergency you'll be okay you guys you're in good shape i'd write a check today and i'd be moving towards debt freedom i think you're going to be debt free and i think it's going to change your whole vision on your second career and on how you react to those first careers demands [Music] [Music] so [Music] thank you for joining us america this is the ramsey show we're so glad you're with us open phones a triple eight eight two five five two two five [Music] in america for the last 24 months lots of people have lived in such a jacked up anxiety ridden semi-rage state of mind that to come back down off of all of those hormones and proteins and be calm again is kind of a weird thing might be a good new year's resolution by the way turn off the television the news channels anyway uh unplug or largely unplug from social media and back away from the manure if you're pouring that much manure into your brain your brain is going to turn into manure i knew i had a problem when i actually violated one of my lifelong rules one of my rules is don't ever read the comments after any article if you want to know why some species eat their young you can tell by reading the comments after the articles these are some of the dumbest human beings on the planet and some of the meanest too any article on anything i i knew it was time for me to just back away from the screen because you get in jacked up mode because here's the thing dr dolony talks about this all the time facts are your friends and when your brain is jacked up like that on fear and rage you've been doing all the covet fear porn over and over death you're going to die you're going to die you're going to die you're going to die and your brain gets jacked up to the point that your critical thinking skills just disappear none of us do good critical long-term thinking when we were really angry or really afraid your brain doesn't work that way if you're standing near the street and a car at 60 miles an hour swerves towards you your brain is designed to scream at you get out of the way not to analyze the possible impact of a 2019 escalade on my hip you don't have time to do all of these discussions in your head just move your brain is primitive and is designed to throw you out of the way of danger not to have a critical thinking discussion about it or what i should have said in that argument get out of the way and so your brain shuts down its ability to do critical thinking when you're freaked out and when you're in trauma like that the lonely teaches us and it's been a really good lesson i've enjoyed learning it myself that we when we're in trauma like that we have to force ourselves into higher thinking we have to say facts are my friends what are the facts what's really happening what do you see with your eyes do you see people falling down dead all around you what are you really seeing with your eyes what is the actual facts not what someone says is science not what someone says is their political stance on something what are the actual facts now when those occur then you will act on those but until then you need to get about your business of having a life you need to move on and you need to put stupid people and stupid processes and stupid conclusions that were emotion based in your rear view mirror nothing wrong with emotions until they start running your life and we've got a whole generation or two that was raised thinking their feelings are valid your feelings aren't valid they're feelings it's valid to have feelings but it is not valid to make decisions based on your feelings that's what children do children do what feels good adults use higher thinking skills devise a plan and follow it and we follow it based on the facts that we see in front of us what is the real world what actually has happened not what someone says might happen not what someone thinks is going to happen not what you worry about at two o'clock in the morning as your brain dreams up all of these bizarre freaking scenarios about your life and don't we all do that we do facts are your friends when you're facing this stuff we started telling you that with the covet shutdown and the quarantine almost two years ago we started telling you that you know i had just gotten back from a trip to australia when covet hit and we went into quarantine sharon and i spent a month in australia our first trip over there we loved australia was fabulous and if you recall the beginning of 2020 there were massive fires in australia if you were to watch the news in america you would have thought the entire continent of australia was on fire we were there a month and had you know had did you know went to one area where the fires had been and the uh the vegetation was already starting to grow back in those areas beautiful green valley but the fires were real and they were devastating and i'm not saying they're they weren't horrible they were but they they did not cover the entire continent of australia and we actually had several people of course this is pre-covered right the early early early days of cove there were a few people in the airports with masks in those days but very few and we had lots of people in australia tell us say hey would you please tell americans that the entire continent did not burn down because apparently americans based on what they saw on fox and cnn decided that australia was a black charred mess not to go and tourism was way down because of the perception of the fires not the reality the reality was a very small percentage of the continent was actually affected now the percentage that was affected was a big problem and it was devastating i'm not not saying that wasn't so but the difference is what are the facts versus what you saw on the news because what you read in the newspaper if anybody does still do that what you read on some website and what is the truth is very seldom the same thing what you see at a news report is so jacked up we got two three inches of snow today in nashville and you would think according to the news that it is 17 feet deep out here the facts are that people in the south can't drive in the snow so you probably should stay home but it's not knee deep barely over the soles of your shoes and if you have a four-wheel drive and go slow you're gonna be just fine and consequently i've been at work all day so i'm not and i'm not shaming you if you're not at work today in nashville that's okay it's fine i understand i got a bunch of our folks on our team didn't come in and i'm not mad at them or anything like that they if they can't drive in the snow they shouldn't do it but if you were to watch the news is my point according to the these newscasts these weather forecasters sound like a beagle chasing a rabbit you would think i have read articles written about dave ramsey that i don't even understand how did you where did you get that it has nothing to do with anything that is me nothing to do that didn't happen it just didn't occur somebody just made it up and you know it's amazing to me okay so the point is folks don't make your financial plan like our last caller in that last segment based on your fears fears aren't facts analyze the fearful situation and figure out how much of it is actually factual use your adult higher thinking skills is the is the snow really 17 feet deep is it really [Music] this is the ramsey show [Music] have a friend or family member that needs a daily dose of ramsey advice in their life let them know about the ramsey call of the day podcast it's a quick hit of advice about life and money in under 10 minutes check out the ramsey call of the day podcast wherever you listen to podcasts [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 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 thank you for joining us open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five this is the show of course where we talk about your life your work your relationships and your money thank you for being with us joe is with us joe is in boston mass hi joe welcome to the ramsay show hi dave i i just got married a couple months ago congratulations thank you very much um and my wife and i after taxes we make about 56 a year and um just did the math and uh you know get trying to get on a budget and get out of debt and our our expenses every month come out to about 50 and not every month sorry every year we have about uh fifty thousand dollars a year so we only have a six thousand dollar savings and i know we're trying to get out of debt too and um really attack everything so i'm trying to figure out how much extra uh we need to make you know in a second or third job uh you know for for the both of us um as we move forward you know trying to figure out how much we need to you know pay off debt and build up the emergency fund how much debt do you have uh it's about thirty thousand what's it on uh a car payment and student loans how much do you owe on the car about 24. okay sell it we just we just bought it uh shouldn't we say you make 56 000 a year you put 25 with 5 000 into a car that's going down in value that you can't afford to pay the payments on we make 80s but you know take take-home pay is 56 and contain about 400 a month in the car yeah you shouldn't bought that car that was a mistake yeah it's the reason your budget's tight one time for you did that yeah it's 5 000 a year yeah and it's going down in value yeah this wasn't the conversation you wanted to have is it i i i had a feeling it would go this way and it was i knew it was stupid when i bought it i'm sorry pick it on the newlyweds so pick it on the newlyweds well you can do what you want man uh but the the the you know you can pick up an extra job and and here's the thing as long as you have vehicles that equal half your annual income or greater you're going to struggle with finance and you guys do because you put her car with your car you're over half your annual income and uh or really really close and this was an impulsive i owe myself kind of purchase and um it was it was a mistake so you can fight your way through it if you want to fight your way through it i don't think it's worth it to fight your way through i think it's a stupid car get rid of it but um but that really shocked your system when i said it out loud so if you want to fight through it fight through it but here's the thing get on a written budget and then work like six extra jobs and you know how much do i mean to make it uh my extra job twenty four thousand dollars if you're gonna keep a stupid car uh because it's got your it's got your finances constipated that's what it amounts to you're all blocked up and that's why you're calling me you can't breathe and so that that's what you're looking at now you know uh i i you know again if you want to fight through it you can it's the slow and the hard way to do it um and if i went through i think you so try it for a few months and you may look up in the fall and go wow this is really a bad thing i'm not liking this i think dave was right he kind of scared the crap out of me and i'm not sure i like talking to him i don't even like him that much but maybe he was right so because our goal here is to make sure that we give you the information joe that's going to do the best for you because we love you and we want you to win thank you for calling jeff is with us in austin texas hi jeff how are you hey dave i'm great thanks for asking how are you better than i deserve what's up man i've got a question about uh retirement investing and my wife and i recently surpassed baby step six way to go and i was you okay and thank you for guiding us through it too um so our we have i have a 401k she has a 403 b with 15 of those i also have a separate ira that uh my ira and my 401k are about equal in money and now that we're debt-free um we're looking at what we're going to invest in my company also offers a a uh 457b that i've never contributed to but now that you know end of the year we're doing investment or uh benefit elections and all that and i see this thing every year and i don't know anything about it yeah it's just my question all 457 is deferring compensation it's deferred comp and it's okay if you don't anything else in your case what's your household income about 180. way to go man congratulations not a payment in the world no house payment no nothing right that's correct they're just amazing congratulations can you see me smiling yeah i can i can hear it way to go you should be you you should be proud all right so what i want to do is i want to max out our 403b max out your 401k and max out two roth iras and then let's just move on with life that's going to make you so stinking rich you're not going to be able to breathe it's going to be amazing i'll just max out what we have max out max out not 15 baby step 7 is no longer 15 baby step 7 is take the government's hands off of any money you can by utilizing roth ira's 401 case and 403 b's you could do the 457 it would be okay but you're going to be just fine doing that i probably would start some other investing if i want to do something in addition to maxing out all of those but you max out all those put the most you can in the 401k the most you can in her 403b and the most you can in two roth iras and all in good growth stock mutual funds all growing you have so much money it's going to be unbelievable very very well done absolutely amazing that's just so cool another another baby steps millionaire right there folks that's that's who we're talking to i'm so excited about this new book coming out next week it's just fun just absolute fun so you can still get it because it doesn't come out until tuesday if you jump online right now at ramseysolutions.com for 20 and we'll throw in 150 worth of goodies so go ahead and get the baby steps millionaire's book it's the only book i've done in the last eight years and it may be the last one i do who knows i'm planning on another one i wasn't planning on doing this one but i just felt like i needed to convince you guys again that you can do this stuff because the end game is to become wealthy and outrageously generous that's in game here with the money thing anyway and so i'm going to show you how i'm going to make the case even to those of you who don't think that dave knows anything about wealth building i'm going to make an arithmetic case for an arithmetic a mathematical case let's just do it that way for you that you can't deny ramsey solutions.com get it [Applause] [Music] if you're not using puretalk for your wireless you're paying too much puretalk gives you the same great 5g coverage on the same 5g network as one of the big guys for half the cost the average family saves over 800 a year go to puretalk.com and choose the affordable plan that's right for you with their 30-day risk-free guarantee you have nothing to lose go to puretalk.com and enter the promo code ramsey to save 50 off your first month [Music] [Applause] [Music] thank you for joining us america we're glad you're here open phones at triple eight eight two five five two two five this is the ramsey show parker is with us in houston texas hey parker welcome to the ramsey shack thank you mr ramsay how are you today better than i deserve what's up in your world so just to give you a bit of context i'm 22 years old i'm married i'm completely debt free i have a year left in my master's and my wife is an accountant right now about a year ago i inherited about half a million dollars from my grandfather in seven individual stocks and he was a broker advisor in his career and candidly is pretty obsessed with these stocks and has a pretty tight hand i just want to honor god with this wealth and wanted to call you to see how financially i can handle this you know tax-free growth does it unwind the positions and putting them in mutual funds and also relationally how i could talk to my grandfather about you know pulling the money possibly out of these positions that he's invested for me wow what's your master's in uh finance and commercial real estate okay good for you thank you okay so you you didn't inherit them because he didn't pass that's true he did uh that's right he's still alive so he gave or gifted them to me about a year ago when i turned 21. wow what a wonderful gift it is yes sir 500 000 worth of stocks and seven stocks and he's made all his money in this made the money in these stocks and so he's very emotionally invested in this process yes sir he is and i want to honor him i went on to the lord and i want to you know manage this well yes sir yeah okay so uh personality wise is is um how does he react when you start talking to him about this i so i haven't brought up if you did you know him you start talking to him about this is he going to be dismissive of you or is he pretty open-handed and once he gave it to you as a gift he's released it or does he still feel like you by god ought to do it the way he says i think it's going to be more towards the latter of likely advice on hey i think you're making a mistake here if that if that makes sense where you know i've seen these been with these stocks for x years and i know there's you know this that the other with them and um i don't think you should do that and and probably more on on that side of things if i were to put it and then if you went ahead and did it it's gonna he's gonna be really upset i would think so yes sir yeah wow well uh yeah there's a lot of stuff going on here because i kind of put myself the reason i'm hesitating i kind of put myself almost in grandpa's shoes for a minute because i am that guy right i'm the guy with a lot of opinions and i'm the grandpa so i could be on the other side of this and and i might be acting like you're talking about it so i'm trying to think throughout it how to treat this this character oh my gosh because i kind of like him oh my gosh um even though i disagree with the technicalities of this all right so well i think there's a different conversation that you just have okay and um here's the thing there's a story in the bible of nehemiah building the walls rebuilding the walls around jerusalem with king nebuchadnezzar's permission and when he went back to do that the in order to get the help of the people he didn't go in and announce we're all going to get our button gear and rebuild these walls and do a lot of hard work and uh because you know he didn't make like a pronouncement instead he just walked around the city oh for days and days for months saying did you guys notice the walls are down you know when the walls are down we're susceptible to attack from enemies you know when the walls are down the pride of jerusalem is taken away when the walls are down this is and he just kept talking about did y'all notice the walls are down here's the bad things that happen when the walls are down the walls are down the walls are down i'm concerned about the walls being down and pretty soon people started coming up to him the leaders of the people and saying did you know the walls are down and he went no you're kidding and you know what i'm saying and so he he he didn't uh he he wasn't manipulative but he uh drew them into the conversation and i think that's your only shot here because otherwise you're going to be an ungrateful little 21 year old snot and you don't want to be that guy right no sir not at all you're not that guy you're not that guy you're a wonderful young man and so i would sit down with grandpa and go you know what here's what i see i see i just got five hundred thousand dollars did you know that this guy gave me five hundred thousand dollars grandfather it's amazing did you this guy he just gave me five hundred 500 000 i mean did you see him do that that was pretty amazing and just let him kind of soak in a little bit and go you know and you know i'm i'm new at all this stuff but grandpa this this uh the stock thing is not very well diversified from what i've been learning and it scares me and just let him talk about it he may get more entrenched in his position when he does that but but he also might uh you know come along and you know you just keep keep presenting him with the problem i'd like to talk to you about this but i don't know how to talk to you about this because i don't want to be ungrateful and i certainly don't want to harm my relationship and i also want to honor god and this scares me and i'd like to i don't know how to talk to you about this because i i you got you're so strong in your opinions and i i and i i i would you teach me how to talk to somebody like you you know you know what i'm saying this kind of a and just wearing him down over several months every time you're with him you have these conversations where you're just pulling him into the discussion about how grateful you are and how you want to honor god and how scared you are and how this is an intimidating thing because you you're caught between your opinion and and his um and your desire to please him because that's exactly where you're caught you know and just say it all out loud and let grandpa help me solve his problem and he may come to the point he throws up his hand he goes hey listen just do whatever you want this is what i think but i'll be okay with whatever you want because i love you and if you can get him there then you got him right that's you can do whatever you want to do because that's really what he should have done one of my things is i i have a rule i don't give people money that won't accept my input but once i've given them the money i no longer control them that's the line and that's the line he's crossed here a little bit i don't like that but i understand how he did it because i would do that if i hadn't pushed myself to do that because i'm a pretty controlling person anyway it's my nature and so i uh that's why i can kind of kind of back reverse engineer this a little bit out loud in front of everybody you and me right because it's a great conversation it's a great boundaries dr john delony conversation i wish john was with me today to chime in on this but um that's probably how i would get at it and and and just i don't want to dishonor you but i also don't want to feel like you gave me something that i can't do what i want to do with that's kind of weird and i don't want to dishonor god and i don't want to i mean what if these stocks went sideways grandpa how bad would you and me and god feel you know i mean i didn't think god would care much but you know you these are the kind of things that just run through my head and just have these instead of coming in and making pronouncements like i talked to dave ramsey and i'm putting it in mutual funds it's my money you gave it to me you no longer have a say which is technically accurate but it's not going to go well right right and so i wouldn't do that um and you're gonna be okay in seven stocks you're not gonna lose all your money you know it is a higher risk portfolio right and he has to say that if you said it to him it's a higher risk portfolio and i'm 21 and the risk scares me i wanna i wanna but i wanna honor you and i wanna and yet i wanna be a man and have my own opinion and how do i do all that grandpa well i i think you draw him in like that he's going to start talking against himself before he knows it um it's probably what would happen to me hey man thanks for the call you're a neat young guy what a wonderful opportunity is in front of you very cool this is the ramsey show [Music] [Applause] [Music] [Applause] [Music] [Music] in the lobby of ramsey solutions on the debt free stage vincent is here hey vincent how are you i'm great how are you better than i deserve sir welcome where do you live i live in chicago cool welcome to nashville and showing up here on a snowy day yeah i didn't know you guys get this much uh snow down here we didn't either and you can attest to the fact that nobody here knows how to drive in it so it's very very interesting the uh snowmageddon is two and a half inches so uh but there you go so welcome dude good to have you thank you it's a pleasure to finally meet you i feel like i already know you good to see you you do we've been hanging out together for a while so how much debt have you paid off vincent i've paid off 90 743 and 82 cents way to go how long did that take 27 months wow and your range of income during that time 25 000 up to 100 000. whoa there's a story there okay so what kind of debt was the 91 000 so i had 79 000 student loans and 11 on my car okay very very good how old are you i'm i just turned 26 last week so good for you good for you so what do you do for a living i'm an accountant okay so what happened from the 25 to 127 months so i started my debt-free journey right before i graduated um april of 2019 so okay um it was about four months before i started my full-time job um i finished up my coursework finished up my cpa and i started looking towards the next steps in life and and addressing all the student loans that i had accrued over the years sure um and pride in time for covent yeah exactly um so i was i was talking with one of my friends and he told me about the podcast and that's how i kind of got in touch with um your program started listening to the podcast um and then yeah that's that's kind of how i started my uh my debt free journey wow very cool so how did you go from 25 000 because you were just getting you were just doing other odd jobs and then exactly but you got the big accounting job now exactly so when i was starting um i just got a i just got a um a job at like a local pizza place making pizzas um i heard on one of the one of the early episodes that i listened to you're not going to see the inside of a restaurant unless you worked there so i figured i'd learn how to make make some pizzas very cool well you did that in 27 months that's pretty impressive yep you haven't done much else yeah yeah and then the other thing that helped was um i picked up uber ubereats for for about the last year or so um and then i just just went crazy with that so there's such a high demand for drivers in chicago that i was able to to kind of um increase my income that way as well yeah i bet i bet you did really well and now you're done all done how's it feel it feels incredible like like i'm free so i mean you're a guy of singular purpose when you sit on this i can just tell about talking to you looking at you you just went for it yes sir there's no real no real question you just go in all in all in yep yeah we're going to jump in the deep end yeah good for you so what do you tell people the key to getting out of debt is the key to getting out of debt is um everyone says it's it's the budget if you don't get the budget right nothing else will work so um why do you think that is i mean you're an accountant well there's a power to that and that's why everybody says that it's true it's not just cliche but i mean as an accounting person you and our numbers guys we're geeks right so we we see these numbers all the time we see things in numbers other people don't see maybe there's something powerful about this budget thing exactly like if you don't assign ever if you don't have an assignment for every dollar before the month begins then the ants are going to take it carry all the dollars off so it's like that's good i like that the ants are gonna cause i can see it though like i'm carrying a potato chip away yeah it's like exactly it's like five dollars here twenty dollars here um if you don't have that that plan of what you're going to do with every single dollar then um then then your financial plan is really not going to work so yeah you're just stuck yeah sticking to a plan is is probably the well it gives you the it gives you the guard rails to stay in and that way you don't slip off the road accidentally exactly yeah yeah well done man well done very well done this is great how's it feel you're done feels it feels amazing um i'm uh i'm honestly like kind of in disbelief like it's it's it still feels like surreal um just like all like after all the sacrificing and um just to finally be done and um recently got engaged to my fiance madison so yeah sure see it madison let's see the ring hold it up she was my biggest cheerleader along the way and um we had definitely a lot of um date nights in where we just make food at one of our apartments and you know watch a movie and she's she's always been loving and supportive so yeah when's the date uh it's gonna be october all right good very fun and good for you man thank you this is so good and what does she do for a living she is also an accountant okay of course of course so you guys are gonna do extremely well yeah that's amazing yeah very very good well that's the number two uh uh career of that we found in the millionaire research are people who become millionaires accountants number one's engineer number three's teacher so um very cool man yeah i love it you're awesome man you're heroes what a great way to start your life completely free got something to talk about she's cheering you on this is everything's on the right track you're just you're amazing well done you're a hero man good job good job so what are your parents did you grow up in a family that was responsible like this and or are they looking at you thinking you're crazy no absolutely not um they're looking at me like i'm crazy they actually had your book they never read it um but i was i was fortunate enough to um to receive it from them um but i was always taught to build up my credit score and um invest so so paying off paying off all my debt kind of ran counter to what i had been taught like my entire life um so i mean they're definitely supportive of me and oh they love you they want you to win but they think you're a little weird yeah yeah exactly yeah um that's right that's kind of how i knew it was working it was like my friends thought i was weird everybody you know kind of thought i was doing something different so um that let me know that was right on track that does give you energy it really does if your broke friends are making fun of your financial plan it means you got a good one yeah that's good very good very cool good job man well done well done well done what a great life you've mapped out for yourself thank you well we got a copy of baby steps millionaires for you it comes out next week but we'll give you an advanced copy today uh because that's definitely you in madison's next chapter uh is to get on the business of uh building some wealth and being outrageously generous as you go along so and you're definitely definitely in a position to do that thank you very very cool very well done also a copy of the total money makeover for you to give away to somebody and disrupt their lives and disrupted yours and uh get you started and that's exactly right if anybody asks what you did you just hand them that and say this is what i did right here that's what i did right there so uh very cool i want to hear from you when your baby steps millionaire too yes sir you'll be on your way absolutely very good stuff all right it's vincent from chicago illinois 91 000 paid off in 27 months making 25 to 100. count it down let's hear a debt free scream three two one i'm debt free [Applause] [Laughter] that's how it's done right there man that's exactly what we do around here that's pretty cool so it doesn't matter if you're 26 or 36 or you're 46 that's what you do 56 or 66 it doesn't matter just put it whatever decade you want to put in there this is doable it's very doable he did this in 27 months he was making no money got his first job with his masters in accounting got a cpa and added to that substantial income by delivering uber eats and pizzas then he's done did he did he deliver pizzas the rest of his life did he work who buried the rest of his life no he did it for 27 months not even really probably 24 months but the whole journey was 27 months long so this what this what this guy is telling you what vincent's life is telling you it's speaking to you right now when you're listening to this when you're looking at this on youtube it's speaking to you very clearly you know what it's telling you vince's life is telling you you can do this you can do this and it's worth doing it's worth the trouble and you need to get about the business of being a grown-up it's past time for you to get about the business of being a grown-up yeah i'm talking to you this is the ramsey shop [Music] [Music] thanks for joining us america we're glad you're here this is the ramsey show common sense for your dollars and cents for that matter for your life common sense is so rare in america today when you've got it it's like having a superpower john is in atlanta hi john welcome to the ramsay show hey there dave how are you better than i deserve what's up not much my wife and i are in baby step two we have about 153 000 in debt um we are toying with the idea of potentially selling our home in order to become debt free wow 153 count the house no it does not what's that on there's about there's about 235 on the house okay how much what's the 253 on the the 153 yes i'm sorry most mostly student loans how much are student loans no i don't have it exactly how much is a car right in front of me of 27. how much is the boat no vote okay um what else is in there besides a car and a student loan that's about it we paid off our all of our credit cards are gone got you what's your household income we paid off about two we paid off about 25 000 last year good for you what's your household income uh around 130. okay good okay what's the house worth i haven't had an appraisal on it um but trending in that area uh that house would probably go for around 400 okay okay all right uh do you like the house we like the house but it's not a i think we're both at the point now where renting an apartment for a year or two doesn't sound like such a bad idea um 100 debt-free 9-11 yeah yeah 100 debt free sounds awfully fun yeah it does okay and you've been working on this for a year yes sir okay all right this question often comes up when people first start and if it's when you first start i'll i will tell you to try it for a year and see how it goes and see what you can come up with because selling a house is very expensive emotionally financially tears up your time it takes a chunk out of your year you know there's just a it's a it's not as simple as uh you know taking a taking a pair of jeans back to the store that didn't fit i mean it's a problem you know what i'm saying right yeah it's taxing on you and that's why i it's the last thing i tell people to do is to sell their house and if you told me you didn't like it that would help you know but all you're saying is it's an okay house but we're at the point that we we can see that this is going to take us you know this is going to take us three hard years almost maybe even a little bit more or we can give up this house and be done with this right and this is the trade-off yeah there's not a wrong answer john it's it would be a matter of uh personal preference uh what would sharon and i do if we were ambivalent about the house meaning we were kind of in the middle we don't care one way or the other we'd probably sell it because we would we would relish the now that we know what it feels like to be debt-free we would relish that idea more than we would home ownership for the next because in one year you can save up a down payment start the process again right right yeah so go live in an apartment for one year with everything paid for tight budget build you up a nice emergency fund a nice down payment and then go buy you a house on a 15-year fix where the payment's no more than a fourth of your take-home pay and so you're one year out of the housing market you're taking advantage of this white hot market right now one year or 18 months from today it will have calmed down from where it is now somewhat i don't know how much but it will have calmed down it's not gonna get worse uh it's crazy out there right now so um great time to sell that's another reason to think about it so yeah we probably would but if you guys talk about it tonight and you go you know we're just really good we're going to gut it out we're going to fight through this for three years and knock this debt out and keep this house that's not a that's not a wrong answer okay because there's nothing here that's demanding that you do this it's a matter of it you are making the choice between making a move apartment for a year buying another house uh 18 months later uh give or take and you're making that choice between that and being debt-free today or fighting for three years that that it's just the trade-off of that and that both of those are things that give you a good outcome five years from now five years from now with either way you go you're going to be in great shape got it so just make the choice which way you want to play this but i probably wouldn't it wouldn't i i don't own any houses i'm that tied to i like real estate but there's stinking house on every corner so i just don't get all jacked up about houses um so i probably i i i'm out of there because houses to me are just commodity i don't i don't get a lot of emotion about them but um but but sharon might argue with me on that so and then i might let her win because she does often janna is with us janice and pullman whoa i hit the wrong button now jenna's in pullman washington hi jana how are you i'm doing all right snow has my kids all home today so cool me too yeah me too all my kids are home today what's up uh so when i was in high school i sold animals at the fair through 4-h and my fifth grade teacher told me that i should invest some of it i did not understand what wise wonderful that advice was until i was an adult until the fbu now my 12 year old son sold an animal's affair this year got a big check and we were talking about what to do with it and he says investing sounds like fun or sounds interesting how much did he get uh he got like a thousand dollars okay and we already have some set in savings um so i'm just wondering how can we teach him i'd like to let him invest even just a little bit so he can learn about it and he's my oldest he's very responsible he's my big favor um you know he got a thousand from this check but he has like eight hundred dollars saved up from past years just because he doesn't spend um and other than that was like his spending money he saved him he's not really spending it so okay i'd like to teach him about but i don't want to make him into like a little day trader no no no no no no we're not doing that so how can i say well the downside the downside is is that it's pretty boring to do it right the proper way to teach him is to put the money in mutual funds and let him just watch the mutual fund it's pretty boring uh it's not because it's not day trading it's not single stocks and we're not studying companies and we're not i don't want to teach him that i don't want him doing that i don't think that's the right way to do it so i'm not going to model that um and so if you want to do it i would just sit down with a smartvestor pro and pick a mutual fund and put it in there and then once a month sit down and go over the mutual fund statement with him not once a day once a month and say okay here's the number of shares you have and here's the share price multiply those two and you know what your account is now worth and this is how this works and here's how here's the you can review the stocks that are inside the mutual fund and look at those companies if you want to uh and you know learn about how a mutual fund works and learn about the actual paperwork of opening up the mutual fund and and but it's really not there's a lot a lot of activity once you get it open it's just kind of tracking it um do i keep him away from people like my like his grandfather who does a lot of single stops yes okay because i'm not trying to teach him to do that listen why teach him to do something you don't think it's a good idea you know i i didn't i teach my kids how to do single stocks i taught them to do mutual funds now in my case what i did the way i taught them was that they just tracked their college fund that i was funding they didn't put their money in mutual funds until they were adults but they knew how mutual funds work because we sat and had the little nerd conversation at the table with my money that i was doing and so if they rolled their eyes and were bored it wasn't the end of the world but it's not a real active process real investing is not that you know in speculating gambling is an active process and i wouldn't teach him that [Music] hey guys this is james senior producer for the ramsay show did you know over 18 million people listen to the ramsay show every week and a lot of those people listen on one of our 600 plus radio stations across the country to find a station near you head to thermsyshow.com [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 it's the ramsey show where dad is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host thank you for joining us america we're glad you're here it's common sense for your work your life your money and your relationships it's what we talk about here every day nettie is with us in mesa arizona to start off this hour hi neddy how are you i pushed the wrong button uh i'm lit i'm losing it there you are neddy how are you eddie hi i'm doing good uh i just have a quick question um i i uh i'm on babysit number five and we've got my wife and i read your book we have two kids um we're just kind of stuck in the college fund you know we believe and i know there's studies showing like you know sometimes kids that just get handed you know their you know money or to pay for stuff um times it ends up hurting them more because they get a freebie um reading your book i don't really feel like i got a clear direction of why two to have a college fund you know why we would uh why we would look for a call unfortunately so you're saying you would prefer that that that not to furnish any money for your kids college and for them to pay for their own because you're afraid you're that when kids are handed money you're going to ruin them eventually like to have them something so don't let an inheritance but i don't want to give it to them right when they get out of high school or you know or something they want them to work for it how old are your kids and then one's uh six months i'm sorry your phone broke up six months and what years two years okay all right still little well there's nothing wrong with what you're saying if you want to go that route i've got a friend who is a professional football player and uh his school is paid for because he went to college on a football scholarship and he's a you know he grew up in a real hardcore blue collar household and he had to work for everything and he said his kids are going to have to work or they're going to get a scholarship they're going to figure it out he'll help him show him how to do it but he's not giving him a dime and he's real hardcore on that and if you want to be that that's okay there's nothing wrong with that um the vast majority of people that we work with want to help fund their kids college one way or the other the uh and that's why the baby step is there we did fund our kids college and uh we did not ruin our children in the process uh yeah so the uh you know the the the sub that i think that that you know the thing i would think on from a parenting standpoint i'm not arguing with you you're welcome to do what you're talking about there's nothing wrong with what you're talking about okay but the reason that i went a different direction was i discovered that my children turning out to have a work ethic and have integrity and have character uh didn't have as much to do with how much money i gave them as how i made them behave yeah it's true and so my kids know how to knew how to work before they went to college work ethic was required in our household i'm a hard-working guy and i believe in hard work the harder i work the luckier i get you know and that kind of stuff i i'm that guy you know so uh our kids had jobs they had jobs at the house they had chores they had to do they got paid for the chores some of them some of them they did just because you love your mother shut up and you help your mother right and so we we did some of that and we mixed it up and and so and and they're getting help for college was contingent upon them behaving if they weren't going to behave uh correctly then you know you're not gonna be out here playing beer pong and uh you know sleeping around all over the place and you know this is not a chance for you to try to show out all the stupid human tricks in one four-year period of time me fund it you know so we're not doing that either so the the the gift for college was contingent upon that but by the time they got to college it was not really a probability they were going to do that because we'd already handled those behavior issues long before college those people that show out usually weren't taught to behave long before college or they were clamped down on so hard that was the first time they ever were allowed to have their own thoughts uh and they blow up at college one of the two so uh you know that's just kind of a parenting discussion we can have but but at the end of that discussion if you still say hey i'm not giving them a dime the little turkeys are gonna work for it i'm not gonna be mad about that uh i will challenge you that it's a big bill and you need to show them a method to get to be able to pay for it teach them entrepreneurial skills so they can start their own run their own business while they're in school make good money not be flopping whoppers and hope they can get through school teach them about selecting an inexpensive school because they're not going to have much money to go to school with teach them about getting scholarships teach them about getting good grades to get good scholarships and being good citizens to get good scholarships and teach them some of the methodology like we have in the ramsey book debt-free degree you should coach them if you're not especially if you're not going to give them money but there's no moral requirement that says you have to pay for your children's college or you're a bad parent uh and on the other hand if you do pay for your kids college it doesn't say you're necessarily a bad parent either that somehow you allowed them to be trust fund babies with no sense of dignity identity or personal responsibility those things should be taught independent of money the money then should the way they handle money should be the result of the character you grow in them as a dad and as a mom really good discussion man thank you for calling in with that uh marisol is with us in augusta georgia is it marisol did i say that right marisol yes okay yes can you hear me yes how can i help hey um i just have uh maybe one or two questions so um those of the story i can say this year 2022 about um 20 grand good it's like because right now i don't have um nothing in my savings i had five thousand dollars but i used it to pay my mom's surgery a couple weeks back right now i'm basically the breadwinner in my household i mean my stepfather has a job but i make more than he does so he covers most of the um bills in the house and i cover basically the medical bills for my mom and my uh dad it's really stressful because um how old are you i'm 25 about to be 25 what do you make i make about 48. what do you do here i'm a diesel mechanic okay why don't you get out on your own let everybody else run their own life like go on my like on my own let them leave go get you an apartment and run your own life and quit taking care of everybody else and everybody else taking care of you well um i used to live by myself and i got involved in some pretty bad stuff and financially everything went down so i went back to my mom's house and she doesn't ask for anything i just go ahead and pay for her medical bills are you healed are you healed from dealing with bad stuff i'm yeah i'm healed it was i was involved in pretty like bad stuff like well so don't do bad stuff and go get on your own that's what i would do hang on i'm gonna send you a copy of the total money makeover to show you what you do what you do with the money while you're doing that [Music] [Applause] if you're considering a career in technology i recommend bethel tech and i'm not alone here's what brendan said before bethel tech i was driving uber within four months of graduating i got a job paying sixty thousand dollars about two years after that i got a remote job that pays me a hundred and thirty thousand dollars all thanks to what i learned at bethel tech you could be next get started today at betheltech.net and get one thousand to twenty five hundred dollars off of your tuition again it's betheltech.net ken coleman [Music] so [Music] thank you for joining us america this is the ramsey show one week from today thursday january the 13th we will be in the middle of book launch week for the new book baby steps millionaire and we're going to do our free live stream event called building wealth in 2022. in-person tickets are sold out over 1500 people registered in the first few days that we put the in person alive event up for sale uh the good news is you can watch this as a live stream and we're not gonna charge you a dime over 60 000 people are already registered to watch the live stream rachel cruz george campbell and i are going to talk about how to build wealth this year not only about what's going on in the real world and we'll discuss stuff like crypto and nfts and we'll discuss the things that are going on in the investment world there's a real get rich quick thing vibe but moving around in america today and we're going to discuss it in a way that's understandable without having to call anybody names and then as a result of doing it we will get called names [Laughter] welcome to social media but hey we're looking forward to this exactly one week from today building wealth in 2022 is a free live stream one night only event thursday january 13th join the thousands who've already registered for free by going to ramseysolutions.com wealth and you can register ramsey solutions dot com slash wealth and we are in the last few days of your ability to buy the baby steps millionaire's book for 20. it actually launches next week and the 20 deal will be gone plus you get all the goodies if you do it in the pre-order so do the pre-order on it because you get the the e-book and the audio book included you get the uh legacy journey e-book and audio book included um you get uh all kinds of other stuff i mean there's a whole pile of things just check it out at ramseysolutions.com it's over 150 worth of items if you pre-order so go ahead and pre-order the book this week get it this weekend let people know that they need to get it over the weekend 20 is a deal books have gone up because paper has gone up and our costs on the books have gone up and other publishers when we look at what they're doing their costs have gone up and that's the thing that's the deal so be sure and do all of this ramseysolutions.com marco is in los angeles hi marco welcome to the ramsay show hi dave how are you better than i deserve what's up all right so um just a quick um history about me i'm a 33 year old male i'm currently making about 125 on an annual salary i have no debt except for a car payment and i'm currently i currently owe 26 000 on it however my goal is to own a my goal is to become a homeowner so my question is should i sell that vehicle and buy something in cash or should i pay or should i finish paying off my car before i begin saving for a house how much do you owe on the car six thousand you told me that i'm sorry how much do you have in savings uh about forty forty thousand okay all right um what's the car what kind of car a good jeep cheap cloud eater you like it uh it's okay okay um what would i do if i woke up in your shoes i'm 33 years old to make 125 000. got 40 000 in the bank i want to buy a house i have a 26 thousand dollar car debt i'd write a check as soon as you get off the phone jump online and pay the car off that leaves you 14 000 and no car payment i'd get on a tight budget you got nobody to control but you that's easy just decide to control you and make it 125 000 i'd save a huge pile of money by this time next year for my down payment i'd buy a house next spring with a massive down payment i bet you could save 60 or 80 000 bucks if you really leaned into it that's what i would do if i woke up in your shoes aaliyah is in trenton new jersey hi alia welcome to the ramsay show thank you hello mr ramsay hi what's up um so a quick overview i recently started following my dream of studying a master's in architecture in 2020 good um i'm about a quarter thank you i'm about a quarter finished with it um it's about 26 000 for a year i do work full time but more recently i kind of started this kick with financial freedom and just kind of changing the trajectory of my family lineage um not to mention this year i'm in the process of donating my kidney to my mom um whoa so my question so um i guess if you were in my shoes what will you do um i kind of have three options paul's school and pay off my debt then return once i'm done i can also stretch out my program and pay as i go or should i get like a certification in a related field such as ux um to fund college once i'm debt free what are you doing another option what do you do now oh i'm currently a service rep i'm sorry a service rep yeah so essentially a junior uh sales rep okay now you're you're studying architecture but you're trying to get your masters in architecture and it's a four-year program it's a three-year program but because i work full-time i have to uh study it that is lower rate than the typical person [Music] and what do you make a year 60 000 good for you okay i wonder what it at what point in this process that you could join an architectural firm in a junior position that wasn't licensed yeah i've been looking into that um it's just a little difficult to get into it because it does require some experience and my background is in business so it's just a little challenging no it is challenging no question everything in front of you is challenging though oh yeah you don't have it you didn't have anything on your list that wasn't challenging oh my gosh i mean welcome to life huh but the uh uh how old are you 26. good for you good for you thank you the good news is that you are thinking about doing all of the things you're considering doing on purpose instead of letting life happen to you so i predict that you're going to be successful because if you keep doing that that does lead you to success sometimes you have to go around the barn twice to get there but it'll lead you there because you keep being you keep thinking about the future you keep thinking about where i want to end up and what are the steps to get there so that i end up there you have a clear what we call desired future right and the desired future is is that at the end of this the first at the end of this chapter of the story you are working as a master's degreed licensed architect that's our goal agreed yes sir so then we have to ask ourselves what is the shortest most efficient process to get there which is kind of what you're asking me um it occurs to me even if you took a pay cut if you could get on even if you're doing the business aspects of an architectural firm for an architectural firm for instance if you were helping them in business development meaning you're helping them get new clients kind of like you do now but you did it for an architectural firm that they might be willing to pay for your education while you're working there i mean if you made 50 000 a year and they paid for your education we got a net increase agree yes sir i just made that up i don't know where that job exists but i know it exists somewhere i just don't know where and what you got to go through to get there now uh there's the kidney process you also got to kind of factor that thing in what's the recovery time on that the down time uh because you don't take a new job and then be out for six weeks that doesn't work right right correct so you kind of got to think that through uh but i i think if you're careful you probably can figure out a way to get this degree without any additional debt working and you may or may not start parts of that before or after the kidney donation which is an unbelievably wonderfully charitable thing to do it says a lot about your character the good things about your character so yeah that's probably what i would do let me send you a couple of ken coleman's books to help you with this the proximity principle it's kind of what i've got in mind while i'm talking about this but also send your paycheck to purpose which is what the process is get that clear path going that he lays out for you [Music] [Music] welcome to the ramsey show america we're glad you're here dobie and kaya are with us in baltimore hi guys how are you we're good how are you better than i deserve i see on my screen you're debt-free congratulations how much did you pay off you um we paid off 140 000 all right how long did this take um it took exactly 16 months 16 months and your range of income during that 16 months so we started out at 100 000 together and then landed on 201 thousand dollars and 736. your income went up 100 000 in 16 months not bad yeah i'd say so too yeah so what caused that income to go up like that well um so i started working seven jobs and my wife picked up another job for a total of nine jobs between the two of us oh my gosh um so for yeah so for the six months um every single day of the six months i was working and my wife was working most of the days as well wow that's crazy crazy crazy go go go go go go what kind of debt was the 140 000 um so primarily student loans and about 2 000 of it was in musical instruments okay oh wow very cool what do y'all do for a living with your main jobs um so i am a physician assistant um and dovie is a paramedic and a david site manager yeah i run a covet testing center and i i also decided to to take you up on your uh your advice and uh sell everything but but the kids so i started a business just selling things on ebay on facebook all right what what is your most profitable uh what's your best side gig dovie my best side gig would probably be um selling stuff on on facebook and ebay and stuff like that i've sold watches i sold cars people wanting to get rid of them from houses um you know like their grandparents passed away i take a commission off of that and i'm just selling stuff like that wow cool good for you man you've been getting after it so uh how long you guys have been married uh eight years i think now almost nine years so what happened 16 months ago that let you on fire because you guys are burning bright um so 16 months ago we we started uh we've been dave ish for maybe five years but uh 16 months ago we decided that we were really sick and tired of being sick and tired and having too much a month at the end of the month so so we decided that we would get completely uh completely dave and just go uh because all intents we listened to um total money makeover we were driving up to visit friends in new york we we uh we listened to total money makeover the whole way up and then the whole way down finished it and from there we just uh we were gazelle intense beans and rice no internet no tv is that what flipped the switch just the audiobook we kind of rubbed it in your face well that and for a while the reason we were dave-ish is because we couldn't imagine how i would get through pa school without loans um at that point and then my first job was something that would qualify me for loan forgiveness and for a while i was kind of stuck on the idea of that being a good idea and then we actually like you say to you sat down and did the math on an excel spreadsheet and kind of figured out that with me staying there to try to get loan forgiveness we would end up losing on a lot of money that we could potentially make if i changed jobs to something that paid more and that allowed um dovie to work more yeah and the net result is you make more money net of the forgiveness even yeah that's good good very good way to go you guys way to go how does it feel to be free it's awesome it's really really great i mean it just feels like there's so much extra and you know you can just give it away you guys have been busting it i mean you got to be a little tired very tired we're towards the end of 3b right now so we're gonna slow down in a little bit but we're still we're still running all right way to go guys way to go way to go who was your biggest cheerleader outside the two of you somebody outside looking at you going go go go go so initially not really it was it was pretty rough at when we started because everybody was kind of hating on us but um but then we we got into an fpu class and our fpu guides were very very much our cheerleaders and they're good friends of ours and they even advised us to start our own fpu class we we ran in a few classes they were like if you guys if you if you start if you lead a fpu class i guarantee you you'll get out of debt yeah before you finish the fbu class and they were right yeah gave me the give both of us the uh the the the energy to just you know get the rest of it paid off really really quickly well there's something about being in the middle of it every time every week you're in the middle of it with other people that just fires you back up and keeps you going exactly yeah and it was nice to have the community like it was also local so even though it was online the class we attended initially was all kind of people from the community who we became friends with and so it was nice to kind of be in the same boat with with other people who weren't you know keeping up with the joneses and we're also kind of using the same old lunchbox or whatever to help kind of like not feel bad about it driving a 91 car there you go that's a badge of courage right there isn't it yeah i like it just as a temporary thing you drive like no one else later you can drive like no one else this is what you've been doing you work like no one else you bad been you now you can work like no one else you don't have any payments anywhere way to go guys this is excellent thank you so proud of you guys so what are you telling people now you're in the financial peace class you guys have been busting it you pay off 140 000 in 16 months what do you tell people the key to getting out of debt is um definitely getting on the same page with your spouse i know that's one that's said often but it really does require that that team effort that community just within the marriage and you know for anyone who's not in a marriage having a partner or a friend like essentially having that community having that support because it can be really easy to falter there's so much media there's so many advertisements like everything trying to tell you not to do what dave says to do so to have those people around i think is a really big deal and also to recognize that you know if the math doesn't make sense that yeah you've got to work more and you've got to spend less and you just got to get used to that idea wow powerful good for you well you're right financial peace university sets you up in that community where you've got the accountability you've got the encouragement and you got other people modeling and doing it right there with you it's not like you're by yourself then uh that you you got to have some people around you cheering you on pushing you pulling you whatever it takes and that's just it's necessary so so proud of you guys very well done your heroes great job we got a copy of the baby steps millionaires book for you we're going to send it to you it comes out next week and we'll send it to you then and so you'll get a copy and brand new copy of that because that's the next chapter in your story for sure you're going to be baby steps millionaires and then i'll also send you a copy of the total money makeover which is uh you know the audiobooks what got you guys fired up so you can give that hardback book away to someone maybe disrupt their world get them off of ish and get them moving i'm proud of you guys well done amazing thank you 140 000 paid off in 16 months making 100 to 200. oh man dovey and kia in baltimore maryland count it down let's hear a debt-free scream three two one [Applause] [Music] let the next chapter begin baby that's how you do it and that couple's been working [Applause] wow impressive this is the ramsey shop [Music] so [Music] so [Music] our scripture of the day proverbs 13 4 the soul of the sluggard craves and gets nothing while the soul of the diligent is richly supplied wow that seems to apply to our last caller doesn't it i was working seven jobs most people get ahead during the time that others waste henry ford i like that open phones at triple eight eight two five five two two five elizabeth is with us elizabeth is in des moines iowa hi elizabeth welcome to the ramsay show hi how are you dave better than i deserve what's up in your world good um so i am on board with becoming a millionaire that sounds fantastic um but the issue with that is losing it all um my father worked very hard to become a millionaire and uh he suddenly passed away a couple years ago about five years ago and um right around the same time my mom was diagnosed with early onset dementia and yeah it was rough how old is your mom now she is 66 so she was 62 when she got diagnosed but i mean the science had been there for years i had i had mentioned it it's just it's really hard to get so your dad your dad was your dad was like 60 years old when he passed he was 62. wow yeah okay yeah yeah i'm sorry um thank you yeah um so there was a silver lining in that which is um all of his assets it's sad but pretty much most of his assets have gone towards care for my mom um and to be honest it's it's not enough million dollars is not enough to pay for early onset dementia care um even in assisted living if if you're frugal about it and you really don't want to be frugal about it it's a lot of money and doing the quick math if there's only a three percent increase each year on the run which it's been five for my mom if i were to go through the same thing my husband would basically have to pay either four million dollars out of pocket if i were to live for about 20 years which is what we were projecting for my mom or he'd have to live on two thousand dollars a month and have absolutely no asset he couldn't have a house or a car um and long-term care insurance only pays for six years of care so financially i don't know what to do in order to make sure my husband's taken care of because there's always medicaid for if that happens to me but what about him yeah i'm so sorry for what you've been through um and your reaction is a uh of great concern about this is a normal reaction um but the statistics don't back up your fears which is good news um i'm hoping yes they really don't um the number the number of early onsets that live 20 years is there's not any they don't you know there's very very few early onsets live 20 years um it's been it's been pretty it's been five years and she's pretty healthy we have had early onsets in our family and i walk through it and just i mean do a little bit of research not just with your mom's situation but with overall and let's not talk about your mom i'm not trying to wish you know a short longevity on her that's not what i'm saying no i know i'm not that in delicate but um but but here's the thing the the point is is that the set of assumptions you're using uh are statistically so unlikely the probability is so unlikely that you're using on you that your husband ends up this way that i i um i think i you know i'm not gonna do it i'm not gonna worry about it i think you guys go about the business of building wealth and plan on getting your six-year long-term care and you're correct about that um and at 60 years old is when i would buy it um and uh even though she had symptoms because we could not we could not get her long-term care insurance because i understand the doctors are a nurse yeah i understand but again that's so unusual statistically yeah the number of people that use long-term care insurance prior to 60 is so statistically insignificant that it's just i wouldn't do it if you want to buy it at 55 because of your fears that's fine but you're gonna pay you know three thousand bucks a year for five years for a 0.001 chance is what you're doing and it's okay to do that but but you just need to let's not um it it's it's you should hurt and you should grieve with what you've been through and i'm sorry you're hurting and grieving i i don't want that for you but i also don't want that to make your decision i want you to use facts not all of the hurt and the feelings to make your decisions with on this and and i am being in delicate and telling you you're doing that right now so don't yeah um you know and what you're doing is a human reaction and it means you're a good daughter and a good person and it doesn't mean you're you're an illogical person or something like that it's a normal thing but i'm not in the trees with you so i can see the forest so here's the thing i i would buy long-term care insurance if you want to buy it a few years early 57 even go ahead i really wouldn't do it at 55 and i really would just get about the business of building wealth and i wouldn't try to do this and then the the other thing i would do is i would continue to learn the care systems that are available um to someone and how you might do this more economically than maybe you started out thinking it was going to cost there's a lot of different care out there a lot of different types of care a lot of different ways to get at this and and um uh even in home care so let me give you an example okay our net worth is um large enough that if it was four million dollars it really wouldn't be a big deal uh but we would end up spending four million dollars on it at our house because we would because for less than four million dollars i can i can hire a full-time nurse and set up a full medical award inside my house and take care of someone have someone taken care of you know for instance if that happened to my wife okay uh or if it happened to me she could do that and so there's there's other ways to for your husband to deal with this if that comes up i'm not suggesting you change your mom's care plan that you have and i'm not suggesting this is cheap it's not cheap but uh but but the numbers you're giving are so unlikely that the hopelessness that goes with your scenario is not necessary there's great hope in your scenario um but yeah it's fair to over plan and it's fair to um you know have some extras padding because you might have this probability because your dad passed early and your mom did get early onset uh that it just it just because of that history you're just going to be super careful and that's okay and and and that's part of personal financial it's got personal in it so hey thank you for your call again i'm just so sorry for all the stuff you guys have gone through and and all the hurt that's been there for you and because you obviously loved your mom and dad both and uh do love them and and it's there's early early onset it's just a man it's just a beast of a it's just not fair it's like uh because we don't know how far it goes we don't know how long it lasts it's pretty crazy so um but i think we can do some statistical analysis on probabilities and it's a cold way of looking at it but you know that this is what you you got to do this because this is how you figure out your insurance plans how you figure out those kinds of things and believe me the insurance companies are doing these analysis so we might as well be in on the math as you and i america are planning out our old age and not losing all the wealth we worked our whole lives for which is what she's concerned about and that's a it's a fair concern that puts this hour of the ramsey show in the books our thanks to james charles and kelly daniel in the booth i am 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] hey it's kelly associate producer and phone screener for the ramsay show if you would like to do your debt free scream live on the show make sure you visit theramsieshow.com and register we would love for you to come to nashville and tell dave your story [Music] you

Channel: The Ramsey Show - Full Episodes

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Id: dSN3d1b4dsg

Length: 122min 15sec (7335 seconds)

Published: Thu Jan 06 2022