Living On Less AND Living WITH Less

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 live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host thank you for joining us extra special day here at the ramsey show in ramsey headquarters our good friends joshua milburn and ryan nicodemus known as the minimalists are visiting with us we love these guys we love the work that they do and it is so akin to teaching you people to live on less than you make a concept congress can't grasp so uh honored to have my friends here in the studio guys thanks for joining us hey we're honored to be here thanks for having us dave we love you brother you too man so uh the new doc is out les is now on netflix and it's a huge hit i mean it's as always with you guys the only the only thing you had that harmed it was you put me in it but um and so all the dave haters now hate the minimalist it's mandatory to to cancel somebody for something but man but anyway it's it's fabulous it's very well produced i love the scenes and uh your artistic touch as always standing in front of the brick walls and stuff and the anger camera angles and the reenactments of when you were working and all that kind of stuff it's very well done guys did you have fun on it oh man so much fun i wish i could say that we had you know something to do with that art piece of it but really our director matt diabella he is a savant so yeah the videography really um i got to give it up to matt i got to give credible credit's due but yeah we had a lot of fun making it and i'm really glad to see it uh uh going across the tv screens all across the world yeah it's gone gone huge okay let's backtrack because there might be someone out there who just emerged from a cave and never heard who the minimalists are and so we should uh upgrade uh their knowledge and catch them up to where the rest of us are so minimalism and the minimalists uh give me the two-minute version of what it is and how you got here yeah so it really started with two events in my life my mother died my marriage ended both in the same month i was 28 years old sort of at the pinnacle of my corporate career i was ostensibly successful had all the trappings of the american dream but for me that also meant a lot of debt a lot of stress a lot of anxiety and of course in our world a lot of stuff the average american household has 300 000 items in it i've had all of those things and more and it's not there's anything inherently wrong with the things the problem is that i had so much stuff that i was forsaking the people closest to me and i realized that all of my priorities were out of whack i was so focused on so-called success and achievement and stuff accumulating these things they weren't making me happy they weren't doing their job and i realized i needed to simplify my life and that's really where this thing called minimalism came in minimalism is just the thing that gets us past the thing so we can make room for life's most important things which aren't things at all that's not to say that ryan and i are against stuff the problem is we have so much stuff it's actually getting in the way of living a meaningful life you know i mean we're like uh most of us in america uh we're just stuff obese i mean we just have stuff coming out our ears when you move and you have a box i remember this when i was when i was a kid when we were moving you have a box that says seldom used kitchen items that might be a sign that you have too much stuff sounds like another name for junk drawer to me yeah yeah in the the kitchen junk drawer seldom used kitsch ronco apparently sold this crap i mean you know i don't know but we buy everything in sight and because we're sold everything inside what did you call it in the documentary uh you called it stuff itis right tough ida yeah i mean we unfortunately uh we we look at these things as a shortcut we look at uh purchasing the new car going on the vacation buying the bigger house i know for me when i got into minimalism it was because i wanted to get my time back and the reason why i didn't have control of my time is because i had so much debt and to pay all of those debt payments i had to work a crazy uh crazy job 60 70 sometimes 80 hours a week and every time i got a promotion i never thought to myself oh here's an opportunity for me to pay off debt it was always an opportunity for me to buy more more yeah because i was looking for a shortcut to happiness i was looking for a shortcut to status a shortcut for significance really in some ways well and our messages have overlapped for uh probably close to a decade now uh where we just say stuff like you know it's okay to have a nice car it's just not okay for a nice car to have you that's exactly right and you know it's the same kind of vibe it's this whole thing no it's stuff is not evil but when you gorge yourself on stuff you're you're going to get satiated you're never satisfied yeah it's called the hedonic treadmill right yeah we what we do is we we get something and that becomes our new baseline and so i went from the toyota to the lexus and so when i had alexis i all of a sudden i needed two lexuses lex eye [Laughter] because i run an urge it was right there one was not enough in our culture it's always more and more and more and more we never stop to consider less and the only way to consider less is to identify what is enough in my life and it when we identify we have enough things what are we making room for well we're making room for our values we're making room for contribution we're making room for our family and friends the people in our lives it's much more about that than it is about uh amassing more things into our ever busy lifestyles so less is more the old maximum is where you came up with less is now yeah because it's it's so cool to be now and again when you want to read this is not a thing to say you're spiritually evil if you have stuff no no it's nothing to say stuff is bad at all no it's not the stuff's fault no it's that we put it on a pedestal right right absolutely yeah i look at uh it's easy to do the advertisements we see every day it's over 5000 advertisements that's a lot of noise it's a lot of things seeping into our subconscious so i mean the thing like minimalism really helps us kind of sift through all that noise and what i really like about our documentary lessons now is it's really it's about starting over it's about someone who is who is stressed out by their stuff stressed out by debt who really is looking to make a shift in their life uh we have uh well we're calling them everyday minimalists in this documentary uh everyday people who have been have found a way to start over whether they're single whether they have families and they've really been able to make some major changes in their lives to to live a more meaningful life it's impossible to sit and watch the thing the documentary though and not just go pause and go god there's so much crap in this house [Laughter] i'm sorry or you're welcome i don't know it's just useless you know i mean it's just useless think about this dave we've been using this word a lot lately essential essential businesses essential travel but now we're a lot of us have been stuck at home for more than we bargained and all of a sudden we're looking around saying what is essential in this house yeah and i thought i was gonna need all these things especially if i'm spending more time at home but it turns out i need it less than ever it's just getting in the way the documentary is less is now by the mental minimalists uh ryan nicodemus joshua milburn are with us and uh you guys be sure and check it out on netflix we're gonna come back and talk a little bit more about this but this is uh this idea of minimizing this idea of simplifying it's catching on it's a bit the minimalists have created a huge movement around this and and it gives you good pause uh psychologically to tap the brakes a little bit and just go okay what it what matters what is real i'm gonna be intentional with his life spiritually godliness with contentment is great gain let's breathe a little bit maybe if amazon didn't show up at your front porch for a whole week life would go on thank you vray who knew and gosh i mean you can whoo man i'm telling you wow all right we'll be back with these guys for one more segment here in just a second it's the minimalists on the ramsey show [Music] [Music] we were drawn to christian healthcare ministries because we both had young families and we wanted to have more children and we had also just started a real estate company and needed to find health care coverage that would meet our needs we were attracted to chm because of its low monthly costs and the ability to negotiate medical costs down established in 1981 and accredited by the better business bureau chm is here to meet the needs of your growing family or small business check us out at chministries.org backslash budget we absolutely believe in it joshua milburn ryan nicodemus the minimalists are with me for a half hour hanging out here with us in nashville been friends with these guys for some time now be sure and check out theminimalist.com to check out their podcast check out their books that are coming out the new doc came out in january on netflix and it is a major hit netflix is grinning it's the second hit with the documentary you've had with them and so they they love you guys of course because you're making them bank and uh it's a great it's a great it's a great doc they allowed me to be in it several of my friends are in it people that we know and uh so again we've got so many values uh that overlapped that we've been brothers of another mother for some time uh and then have gotten to be friends off the back side of that yeah so 240 billion dollars is spent on advertising today that's a lot of money yeah and when you think just about what is spent on a given item or we think about the power now of amazon or the power of facebook marketing or uh the power of the data collection that google has on individuals to custom offer you things that you just can't do without because the offer is so dialed in to exactly who you are right yeah i mean you really if you don't have a lot of intellectual prowess you are almost powerless to the sway that they put over the top of you in this and so we end up with just what we're talking about is the minimalists are about minimizing your life not stuff is evil not money is evil not you're a bad person if you have a nice car it's not that kind of stuff this is not gnosticism it's minimalism right and so but it is about make your stuff have meaning and when you've got so much stuff you've just gorged on it it's just like all you do is eat candy and you've got no no nutrition in your life your stuff is giving you no nutrients yes there's no happiness coming from it the documentary is less is now and with all this advertising money spent we've all got to put our guards up uh because otherwise we just get sucked into this vortex of consumerism materialism and loss so you guys have helped so many people by giving them a guideline giving them a rule or a step so what's the first thing if you go yeah dave i agree with what you're saying i agree with what joshua and ryan are saying but so what do i do now because i got a house full of crap or we start the film with a question how might your life be better with less and the reason we ask that question it starts with the why too instead of the how to the how to sort of manifest as soon as you understand the why and that's what i love with what you do with your work is helping people understand the benefits of getting becoming debt-free the same thing is the benefits of simplifying your life understanding the why for some people it's financial freedom sometimes it's getting your time back sometimes it's improving your relationships sometimes just i want less stuff to clean in my house my house is so full of clutter but also realizing that physical clutter is just a physical manifestation of what's going on inside this if you have a bunch of material clutter you have spiritual clutter mental clutter emotional clutter all of this internal clutter and it starts with the stuff but as we start decluttering that stuff we're able to look inward we also have some rules like we have 16 rules for living with less on our website it's a free ebook people can download and i'll give you a couple of them here one's the seasonality rule we also call it the 90 90 rule if you look at an item in your house and say have i used this item in the last 90 days if not am i going to use it in the next 90 days if not i give myself permission to let go and that covers all seasons so right now if i did i use it in the winter nope okay am i going to use it in the spring nope am i using the summer nope all right let's get rid of it so we hold on to so many items just in case another rule we have the just in case rule think about everything that's a hoarder rule right right that's the hoarder excuse for everything i might need this later yeah in some hypothetical future that doesn't actually exist and so [Music] anything that we're holding on to just in case we can let go of because we can replace it for less than 20 in less than 20 minutes think about this though you never have to use the rule once you get rid of it you don't miss the thing and you're able to move on as soon as you like it's really cheap insurance and it's definitely cheaper than you know renting out a storage unit every single month to keep all that just in case stuff that that adds up for sure yes indeed yeah the just in case surcharge oh wow there's one more axon just in case yeah spontaneous combustion rule so if you have an item that's feeling a little bit burdensome and you're struggling has that put so much meaning in it of course if everything's precious nothing is precious right but if i'm putting so much meaning in this but ask yourself how would i feel if this item spontaneously combusted right now how would that make me feel and if you'd feel a sense of relief maybe it's time to let go yeah yeah you know that does not mean you can burn your house down no okay another good place to start um i think you mentioned uh your daughter rachel had uh played this game but the 30-day minimalism game or the hashtag less is now challenge it's a great great way to start because it helps you get that momentum that you need in order to start to decluttering your life so the way it works is you find a friend or a family member who wants to get rid of some stuff and and we know that decluttering could be a little bit boring a little tedious so this makes it fun because you bring someone else in and then you make a bet to see who can go uh the longest each day of the month getting rid of items so you start on day one you get rid of one item then you go to day two you get rid of two items and then day three three items and then okay so forth and so on you probably get it uh whoever lasts the longest wins if both people last the whole month they both win because they would have gotten rid of about 500 items each which is a great start yeah that's a lot of junk it is yeah but you know watching the documentary it was just like a thing of you know scotch tape that's one thing you know or what i mean it doesn't have to be like you you sold your car right exactly exactly and that could be a big item it can be it can be you have to be you could also you know i guess you could technically count like you know 12 paper clips on day 12. come on no cheating yeah that's right that's for sure so we're consumed with spending this economy basically exists on spending so i mean stimulus will stimulate things yes stimulate things and uh what this does rachel talked about it over dinner one night right because rachel of our three kids is the spender and she's obviously the one that is on the television on the radio show does a podcast on best-selling books on money which is irony of irony but the uh but rachel's uh her she talked about it was almost like detoxing yes you know it's a cleansing sense a sense of i just feel better yeah i'm complete in an empty room and so there's nothing wrong with the stuff it enhances my life it augments my life but it's not me it's not part of my identity unfortunately it has become part of our identity i am this thing and we even use terms like i love my truck or i love my house or i love my bed there's nothing wrong with enjoying things we get confused when we love our truck but i also love my wife i love my daughter it's a little different yeah yeah exactly a little different yeah the documentary is less is now it is on netflix both of the documentaries are still on netflix as a matter of fact you can go see the original and see the whole sequence that way if you want to uh joshua milburn run nicodemus are my guests this half hour and um you know we want people to take control their money we want them to get out of debt and how does minimalism fit into that i mean that's really why i started um i wanted to reclaim my time i was uh like i said earlier i was working 60 70 sometimes 80 hours a week to pay all of these debt payments and uh yeah i saw minimalism as an opportunity for me to simplify for me to get rid of as much debt as possible and really i mean dave my original plan was to go be a barista i was going to go serve coffee 20 30 hours a week but in order to get there i had to get rid of some stuff and i had to get rid of some debt now the minimalist was a beautiful accident 10 years later i still hope to be a barista one day by the way okay just haven't got there yet we got a machine out here if you don't make it so much people coffee espresso machine all right yeah we can let you practice but but you know i really just wanted to get my time back and that's that's what i think minimalism can help anyone do anyone who is dissatisfied with the status quo anyone who wants an opportunity to start over i think minimalism is a way that people can do that it's i don't i don't want people to mistake it for the way like we're not just saying minimalism is but it's a way it's a tool that people can use well in an area that we're just so overwhelmed it's time to get a little underwhelmed i mean about minimalism hey new book coming out you guys come back in july when this comes out love people use things be watching for it and probably learn about it at the minimalist.com maybe a pre-purchase this is an advanced reader copy i got i'm not giving it back either love people use things because the opposite never works right amen we'll sign it for you absolutely do it right now thanks guys love you guys appreciate you hanging out with us man thank you so [Music] much [Music] hey folks i got a great option to help you pay for your education the army national guard the army national guard believes you are the next greatest generation because you have proven that even in adversity that you have what it takes to succeed that's why they offer benefits like tuition assistance career training and a paycheck to help you avoid debt no matter what your goals are the army national guard can help you get there visit nationalguard.com to find out more [Music] change of gears here on the ramsey show i am dave ramsey your host rachel cruz my co-host today and my daughter nice to have the minimalist guys drop in always fun to see those guys they're just the nicest guys on the planet they're awesome they're ridiculously nice actually oh yeah well they're very nice and have an incredible message everything they do i'm like yes amen yes yes and amen yes and amen in the lobby of ramsay solutions on the debt free stage bobby and michelle are with us hey guys how are you hey dave hey rachel hi guys welcome good to have you guys and where do you guys live danville virginia i love it and all the way to nashville to do a debt-free screen yes sir fine how much have you guys paid off 139 970 and 92 cents how long did this take six years good for you and your range of income during that time 29 000 up to 85 000 this year wow what do y'all do for a living we're both teachers oh god oh how fun what do y'all teach i teach fourth grade and he teaches uh seventh eighth grade math ah good very cool so what kind of debt was this hundred and forty thousand well dave i'm sorry to say everything we were normal actually most of it was my debt and uh i brought it into the marriage six years ago and we took fbu as uh our pre-marriage counseling and um oh my gosh i just gotta tell you as a man to bring that kind of debt into a marriage and watch that that settle on her um was just very very difficult i've been carrying that dead around for almost 30 years didn't bother you till you said it on her did not and then i saw you know at first she was like oh my gosh it's not that bad we can handle this we can do this and then over the months i saw it settle in on her and it really broke my heart well the thing is too um i'm i guess like a unicorn sort of i never had debt i've never had a credit score um i had never taken out a car loan loans to go to school nothing so i love your parents i know right so i never had debt but i never really had a plan with money either so i still living paycheck to paycheck so when i met the love of my life i'm just like oh that debt's not that bad whatever i never felt the weight of the debt um wow yeah his debt-free journey that that debt got added little by little by little and then when we got married it's like someone took 300 pounds and put it on my shoulders and went hey here you go enjoy carrying that so what he what he was observing that heaviness was real oh yeah yeah about about a year into our marriage it um yeah it was it was rough um and i remember our our budget meetings were not good um we because we did um fpu is pre-marriage counseling we've never really had a money fight but some of those budget meetings were like okay how are we gonna how are we gonna put food on the table this month let's figure it out so at 29 000 that year that first year it was it was hard it was hard so what was it mostly student loans no a lot of student loans i've got a phd so it was a lot of student loans but um we had i had three credit cards that had maxed out and over the years we had to deal with creditors and so and we've taught almost 13 fpu classes i think i'm at our church and true true fact during some of those fbu classes i was getting calls from creditors during the class during the class like you know it it was hard dealing with those creditors but we were able to negotiate those settlements and stuff we got sued by bank of america um i actually went to court with a briefcase and dealt with opposing attorneys on that wow a lot lots to tell there that we don't have time but you know just it was a long six years we made several different job changes along the way so that we could line up our passions with our financial goals and so now we're getting ready to enter our first uh summer break as teachers uh completely debt-free we've moved into a new house and uh working on our baby step three inside wow just absolutely loving life right now and the bed the best thing is the kids keep asking if we can do um an actual vacation a real vacation instead of day trips places ah no dave trips wait a minute the real vacation is the dave dress come on i love it way to go you guys so you guys i mean this journey for you all cause you hear people they start for different reasons right you hear some people like yeah you know i just realized uh all my money's leaving so i'm gonna get out of debt so i get my income you know but you guys i mean it was out of out of pain yes and it is very visceral for me i know i'm gonna break down and cry when we do our scream and it's very appropriate that you guys have the brave heart freedom because it is very visceral for me yeah so tell me so from that pain and now you guys are on the other side standing on the stage what was it like like when you paid off that final debts what are what emotionally how are you feeling now so i versus them yeah i think when we first paid it off i kept i kept waiting for something else to happen and it didn't it didn't really hit um and then one day like i was just driving in the car and then i was thinking about it and i'm like like oh my god we're debt-free remember i cried all the way home because i'm like oh my gosh and it finally really really hit because it felt like especially early on when we would take one step forward we'd get knocked back um and we'd you know sell a bunch of stuff and be like hey we're gonna throw that towards debt but then we had to put it in our budget because we we couldn't pay the bills um so i just kept waiting for something to happen and then it clicked and i'm like oh my gosh like we actually did it yeah it's amazing i'm so proud of you for me you guys are amazing thank you for me it was uh not so much the the final payment and and calling her and telling her yeah we just did it but the next week i checked my fico score for the very first time in my life and after being hounded by creditors after walking into court with a briefcase to you know because bank of america had sued us i did a credit check for the first time and it said there's no way to determine your credit score because you don't have enough credit history you joined the club baby i love it you joined the club she was already a member that is so awesome we are weird so when people ask and they say you paid off 140 000 how did you do that what do you tell them the secret is oh my gosh um god um because that's that's something that's you know your faith is something that you'll you always have no matter what you know numbers in your bank account um budgeting and absolutely teamwork um i think yeah i think because we did fpu as kind of our pre-marriage counseling we were both on the same plan and on the same team yeah and so when it came down to a question with money or or a budget or anything we just kind of fell back to that teaching um from the class we'd been through and it's odd like we really have never had a money fight and we've cried together oh my gosh so much so much um or been angry at bank of america together oh yeah yeah yes um but i think sometimes too um god has definitely gotten us through a lot of it because there were times where you know i was breaking down and he couldn't break down so he had to rely on his faith to be stronger the other way around i know one week in particular we had a horrific budget meeting it was so bad like we could barely afford anything so all week long when anything bad happened my first thought was it's a train it that's a train and so we went to church that sunday and they had a guest preacher and he pointed us to and brought us up can everyone else was up at the altar and he looked at me and he said hey it's a light and i'm like oh god thank you so sometimes we yeah and i'm just like and i'm like why did you say that he's like i don't know just i felt like i needed to give you that message and i'm like oh thank you jesus for those of you don't know it's a light at the end of the tunnel that is not an oncoming train it's a phrase we say around here all the time so that puts that whole thing into context wow you guys amazing amazing amazing if i could say one thing to the people listening out there you know there are a lot of calls that free calls and debt free people and i don't want to take away from any any of it but um six years is a long time yeah and we went through a lot over those six years we cash flowed a bunch of surgeries there were a lot of ups and downs but we always stayed committed i just want to tell those people that are listening out there that that don't lose the faith i mean you can keep keep pushing it will happen be intentional about everything that you do with your money amen bobby and michelle lynchburg virginia 140 000 paid off in six years making 29 to 85. count it down let's hear a debt free scream three two one that's what it sounds like after six years right there oh so much [Music] [Music] so rachel cruz ramsey personality is my co-host today a selling author number one best-selling author of several books her latest is know yourself know your money new york times best-selling book discover why you handle money the way you do and what to do about it now your money conversations are about to get a lot easier rachel just launched the know it yours know yourself money assessment the assessment will guide you to lasting progress towards your money goals and better money communication how does it do that rachel yes well it's an assessment which i love assessments if you read the book you know at the beginning i talk about understanding myself more and you can do that you know through whether it's the enneagram or disc or myers breaks but like even just taking a test i'm like oh when you read the report like that's me that's me i just i love it because it gives so much insight so after doing this book i was like i want people to be able to have these conversations because the book revolves so much around your money tendencies your dreams your fears how you grew up with money all of that and to be able to have it in a place that you can read your results of of who you are around money i think was just so important for yourself but also if you're married if you have you know um parents that you talk to your talk to to about money your kids i mean all of it so it's a very relational type of tool to use for yourself but also if you are married specifically so it takes 15 minutes uh you answer a bunch of questions and then you get a 30 page personalized version of of all your results and if you take it with someone like with a spouse then their results are on your results page as well so you can kind of match up to see okay where are we on the same page where are we different all of it yeah why do you make decisions the way you do are you scarcity are you abundance are you a saver are you a spender nerd free spirit what are your money fears versus your spouse's money fears yeah and uh the our team that built this this product is it's over the top incredible i'm so proud of the 30 pages that it spits out for you because it's going to have a line and there's your little picture your husband's little picture your wife's little picture whatever and you're looking right there and you're going oh yeah and kind of knew that but this kind of gives verbage to it and then you can talk about it it becomes a communication tool know yourself you know is number one uh then number two you've got to know your spouse and you know why they do this and you know when i you know when your mom is a saver and when she has that tendency towards saving um she's really not trying to kill all the fun right right i just have to remember that sometimes that's right that's right yeah and and to understand the why too so it kind of gets down very granular in all of that which is which is so fun so yeah you can take it obviously if you're married with your spouse or even just by yourself if you're single up there and you just want to understand more of how you're wired with money okay this is one of the best things that we have put out in a long time and i urge every one of you to run over right now take this assessment very quickly it's at ramseysolutions.com it is the know yourself money assessment know yourself money assessment and we're not charging that much for it what's the price on it's not on here you don't know uh the price point changed so to look at to see how many okay yeah we moved it around because i was arguing with them about the price okay because it's really it's really very very reasonable i do i do know that so be sure and check it out ramseysolutions.com the know yourself money assessment mark is in traverse city michigan hey mark welcome to the ramsey show hi dave hi rachel how are you doing big fans uh we me my wife and i use your principles and thank you so much for everything that you've done for uh my wife and my family's life first of all well thank you how can we help well i'm uh we're my wife and i are in baby steps four five and six right now we make about 130 140 000 a year and we've pulled up a bunch of cash right now to pay for uh my first vehicle post uh baby steps one through uh three and i'm replacing my beater essentially right now and we have about 30 000 saved up right now to buy a half ton pickup truck that we're looking for but as you know the the housing market and the vehicle market are almost identical on the supply and demand issue that's having with it right now and i'm a little leery about trying to buy a vehicle that i feel is overvalued anywhere between five and eight thousand dollars only to have the supply chain issue get corrected in this fall do you have any opinions on uh the vehicle market right now in regards to that question i don't have any opinions that would be based in fact-only feelings so i will qualify it with that but as you've already ascertained we those of us in business have observed that when the factories quit making new things the supply of new things was gone meaning new cars you can't find a new car certain brands you can't still can't find them they've cranked the factories back up but you still still haven't gotten them all the way the car lots and when there's no new cars available guess what that does it sends all the new car buyers into the used car market where the used car buyers already were now you got twice as many people give or take chasing the same number of cars that is going to drive price up artificially until the marketplace gets some equilibrium meaning that the supply of new comes in again and relaxes the used the strain on the used car market relaxing the pricing i don't know when that is i'll give you a wild guess but it's worth what you paid for it i'm just telling you i have no idea i'm going to guess and say by fall you're going to get equilibrium in that market it may take longer in housing but and specifically trucks i mean mark honestly my team we were just doing a deep dive on specific used sections cars suvs minivans like we've done these studies and and found oh you actually have some information no no well just to say that trucks has been our hardest um sector of car i don't know how you would say vehicle type of car uh because they're they ne they do not lose their value i mean they trucks hold their value it's like but not as much not as much but i mean like it's honestly as we've done research to find good quality used trucks we've been looking around the twenty five thousand dollar mark and they're hard to find so when you said trucks specifically for whatever reason that's even more so because probably honestly constructions put a strain on them yeah yeah that's probably it's um the other side the other side of this coin is that i have the current beater that i'm driving around right now it's a 2007. um you know i'm having to put a little bit of money into it to keep it going and so i'm just trying to figure out when should i just you know metaphorically pull the trigger on buying the vehicle regardless of its perceived value right now and that's i guess that's where i'm struggling what's your household income keep putting money in 130 140 000 okay so if you overpaid by five grand it does not end your life no it does not so you know none of these are going to end your life so it's just a matter it's almost like a game now it's just you know yeah when do i buy this because i just want it and by god i have the money now now that i'm out of debt um and it's not the end of the world uh it's not like you know if you were gonna say you're gonna lose 50 grand making 130 we got to stop and think about this a long time but five grand i don't want to waste five thousand dollars but five thousand dollars over the scope of the next decade really does not affect you yeah yeah i agree with you i understand yeah so at some point at some point the stress is over and you go i got the money i'm buying it that's what my wife would say yeah but you know and i don't know when no i'm just saying i don't i'm not saying that points today it might be you say okay i'm gonna drive this thing until uh the end of august or until it gives me one more repair equal to x and then i'm out of here because i'm done screwing with this thing okay you know or whatever you could put any kind you could put a timeline on it you could put a money amount on the beat or repair on it and let that be your trigger to cause you to jump ship and go do with the deal um or you could say i'm just waiting on these dadgum things to come back down and then i'll do it you know you could go you can put the trigger on it wherever you want but the point is if you really mess this up you didn't mess up anything bad right right given your ratios and your overall situation so pan back and look at the scope of your life pan back and look at the other thing and and go how much longer or you know and then that that frees you up to start looking for a reasonably priced truck today and at any time you found one you could just you could do it you don't have to say i'm not going to be in the market right you know like housing markets kind of crazy you don't have to say i'm not going to be in the market but you can say i'm not going to bid up to 50 000 over what those houses are going for just to get in line with the 43 of the people that are white hot and have the fever it's crazy you can say i'm not going to get in that line but i'm also going to kind of keep poking around i might stumble into a deal might find a sweet little old lady who wants to sell it to a guy just like me you know and that's what you're looking for right and that that you know you do find those things and you don't find them if you're not out there wandering around just what you want to avoid is getting the fever it's the fever that'll get you that puts us our the ramsay show in the box [Music] hey it's kelly associate producer and phone screener for the ramsay show if you would like to do your debt free screen live on the show make sure you visit thermsyshow.com and register we would love for you to come to nashville and tell dave your story [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 live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host rachel cruz ramsey personality is my co-host today as we answer your questions about your life and your money open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five it is a free call and some say the advice is worth exactly what you pay for it elizabeth is with us in tyler texas to start off this hour hi elizabeth how are you hi thank you for taking my call sure what's up okay so um my house shares a driveway with three other homes um in addition to that we also share a sprinkler system that is all one system for all the houses as well as a one water meter for just the sprinkler system um so ever since the house was built all the neighbors shipped in money together into one account that one neighbor manages to pay for the water bill the upkeep of the sprinkler system and since we're doing all of that we also go ahead and just do a lawn service together um historically who has done it she's just been in control of it she's been there since the beginning of the development i'm sorry say that i didn't hear that first part you broke up what about the first of the development what so the lady who's been wanting it in the past or managing that account in the past she was there from the very beginning she is turning 92 to here and it is time for her to pass it on to someone else wow okay um yes so i am willing to take care of it it's very little work i mean on a typical month we only have two bills um just the water bill and the yard bill um so it's not a whole lot of work the thing that has me concerned is making sure it's set up properly in a way where the account where the money is held is not considered a business income account for me or something that i totally control so that everyone's protected i don't want to get audited by the irs and get in trouble and for them to get business income but i also want my neighbors to have access to it if something were to happen to me um you know if i were to get in a car accident or something if someone you know it's not my estate's money it's right their money um and so i'm trying i'm not just looking for advice on how to go about getting this set up properly so that we're all all protected equally you know fairly okay uh there's two or three things involved one would be the legal ownership of the money and the how the account is set up uh two would be the tax issue and so and you can get as complicated as you want to get here i wouldn't over complicate it i'm guessing that she just opened this account in her name probably and never reported it and wasn't worried about an audit i'll bet you that's how she was running it just out of her hip pocket i i'm fair i'm fairly certain that it's correct it is technically a business account but it is under her social security number at the moment which means that technically she could have been taxed on this if it were profitable if she were ever audited probably a fairly low likelihood and she was willing to take that chance um if you want to go a step beyond that you need to just form an entity and with the irs and get an e i n number an electronic identification number and that's what you would get that's the same number you would get if you got if you formed an llc uh or a sub s corp if the that's the next step you could do is form an llc i would not too dead gum much trouble i would just get an e-i-n with the irs and if they ever approach you just go it's a separate entity three neighbors managing the account there's no profit and you could just blow it off in an audit but if you put it in your social or in an entity that you run business out of then you could end up it could end up getting blended in so just order an ein or order it takes about used to take 90 days online now i probably didn't take that long probably get one overnight now uh and you just open that you use that instead of a social security number to open the account and just open the account and give it a name called the neighbors i don't care and um the neighbor's water account i don't know and then you just throw you and then if you if you have a written one-page document of agreement with your neighbors there's never been any drama so far right correct it's all everyone's agreed to it yeah i mean i guess technically if the house ever sold to someone who didn't want to be a part of it that could in theory happen and i wouldn't i really wouldn't go to the expense to legally bind all this i or to mess up one of your ownership positions with this um you just have to work that out with a new neighbor one way or the other and it might not be relationally pretty but it won't be a legal problem so anyway just i would have a one-page document with your neighbors that just says in a letter form what it says i'm not an attorney this is what i would do personally just so there's clear communication with your neighbors put all of them on the checking account and open a checking account with a fresh ein and i would just run it that way that's how i would do it just keep it real clean if you want to go further you could form a non-profit with a board and an llc now you got to file tax return on that every year and you got to file with your state every year and it's a complete pain in the butt for something like this it's tremendous overkill right um just follow-up question to that i did look into getting an ein um and you have to declare a responsible party yeah which means in a way it would still be a tied to me is there any concern i would i wouldn't worry about that the big deal is in the event you're audited you have a clear paper trail that this is a separate entity and it has no profit to it it has no profit motive to it it's a simple transactional account screw you we're not owning any taxes on it i mean you can beat this audit in 20 seconds and if you don't then i'm going to beat it in 20 minutes over the top of somebody's head that's that that's just a it's just a matter if you've got to find somebody in the irs has half a brain to explain it to that might be a challenge but you gotta you just have to work that through if you have time i have a completely different question i'm sorry i do not i apologize but thank you for the call i hope that helps you we appreciate you joining us open phones at 825-5225 is in gettysburg pennsylvania hey nate how are you good how's it going dave better than i deserve what's up great okay so my question here i'm 29 i make about 50 000 a year now i have some medical debt uh mostly like hospital and doctor bills that have gone to my credit report totaling up to about 16 to 17 000 i just started listening to your podcast about three months ago and back in november last year i did something i realized now i don't want to do and i went and bought a car and so now i've got this 21 22 000 of card debt and medical debt and i want to get out of it i just few days ago purchased the total money makeover and i'm just wondering where do i start yeah it's a great question nate i mean well specifically with the debt uh paying how many how many medical debts do you have that total that's 16 000 i want to say it's about 11 10 or 11 things on my credit report smaller ones yeah yeah and then anything else besides the car that's it that's it well i would list out all of those i mean even though it's it's it's 10 or 11 of them but listing about smallest to largest starting with that smallest one and then working your way down and the and the car thing yeah i mean the 22 000 you don't have to sell it it gets to a point that you could say yeah it's not worth it anymore and see what the hit was that you took what's your household income yeah fifty dollars yeah you're right on the bubble that's a lot of car that's a lot of 50 grand yeah i'd probably consider reversing that decision meaning selling the car if it were me just because i'd want to clean this mess up faster than that and plow through that 16 000 in medical debt using the debt snowball that'll get you there you got the right tools coming to you and thank you for being a listener stop paying your overpriced wireless provider and switch to puretalk they use the same network as the larger providers for much less for just 30 a month get unlimited talk text and six gigs of data with no contract the average family saves over seventy dollars a month by switching to pure top just go to puretalk.com and enter the promo code ramsey to save 50 off your first month pure talk simply smarter wireless rachel cruz ramsey personality is my co-host today also my daughter author of three national four national bestsellers and the latest one know yourself know your money we are launching today the know yourself money assessment now this assessment is incredible it will guide you to lasting progress towards your money goals and better money communication because you will understand yourself you'll understand your money tendencies your money fears your money upbringing after you take the assessment and your spouse can take it with you it takes about 15 minutes to take it it spits out 30 pages of detailed and personalized insights really end up knowing what's going on don't you oh yeah every part of why you see money the way you do from your upbringing to your tendencies to your fears your motivations your actions all of it so it's uh it's always fascinating i i love this stuff personally i was excited to work with the team on it because i think assessments in general are just so interesting well the quality poses a lot so the quality of the research and the quality of the um i don't know the graphic detail that it puts out the way the graphics look is what i'm trying to say oh yes yes the way the graphics look the way it's laid on the page to understand it oh it's beautiful really proud of our team well they did a beautiful job really really really we should have charged twice as much as we're charging for it yeah well to that point though honestly the visual yes once you get your results the 30 pages yes like you're saying visually yeah it just tells you it's so easy to read and understand yeah it's crazy it's wonderful in that regard i remember a thousand years ago i took the disc assessment i mean i man it 30 years ago so the first time i ever saw anything like this and i was so amazing because i had like 27 questions and it read my mail you know it's like this is who you are i'm a high d high eye on the desk and everybody kind of knows that uh and but i went home i handed it to sharon and she's reading through it and she starts laughing and she goes oh this is what's wrong with you no that is me that's not what's wrong with me yeah i took her it took us about uh 10 years after that to convince her her particular type of disc was not the right one and everybody else was the wrong one but yeah but this tells you not who's right or who's wrong it tells you what your tendencies are and then you say okay i have a tendency to be a spender versus a saver so i have to guard against the toxic version of that yes and uh so on so it's only twenty dollars to take it thirty dollars for a couple so jump in there take it with your spouse tonight go to ramseysolutions.com the know yourself money assessment you're taking to the next level ramsey solutions.com again 20 bucks for singles 30 for couples we should have sure we should have charged double because it's it's really you're going to get it you're going to go y'all aren't charging enough all right our question of the day comes from blinds.com find out for yourself why blinds.com is the number one online retailer of custom window coverings you get free samples free shipping and with the new promos they run every month you'll save even more use the promo code ramsey to get the best possible deal today's question comes from jamie in indiana we follow the ramsey plan with our finances and are trying to teach our young children the same principles we have a chore chart and are learning that they must work to get paid however every time we see my parents they give our children money it's becoming difficult to keep them engaged in the lessons we are trying to teach when grandparents just hand them cash how do we handle this situation you know i've not started doing that yet i should do that i should mess up your parenting by giving the kids cash no no it's like the swing set example that's always what i always tell people at christmas that year when denise asked for a swing and you know and then y'all bought a swing set she was like i just want to fish your price baby swing that's all i want and y'all go and we and we literally looked at each other me and the knees were like oh it begins here it is so it begins dave just throws it out they just went overboard and just yeah no but but honestly jamie i'm like this this is a this is a people have this question a lot because grandparents have the entitlement as they feel to do whatever they want with the children and then they send them on home and you're like no we have a bedtime all of this but um you know i wouldn't be crazy uptight jamie i mean i think depending on the age of your kids and depending on how much they're doing it if they're just kind of having fun with them there is a level where i give grace to grandparents where they can love on the kids but if you find that it's truly affecting like their character and they really really really are saying like i don't want to do chores because i can just go to mimi and papa's and they just give me money then yeah then we probably want to circle back and have a conversation with the grandparents your parents to say hey this is what we're trying to implement in our home and because of your generosity and your big wonderful hearts it is kind of messing with it but again i'm so balanced in this because i know some people jamie i'm not saying this is you can that are on the rams plane are very legalistic like no if you do not remember and then they don't allow any amount of like gifts or grandparents to be grandparents there's a level of that that is life but if it goes to the extreme then yeah you may want to circle back and have a conversation yeah yeah and i i think um the question i always ask is um is this really about you and your mom or is this really about the kids getting money and is there something else going on that's a doctor john deloney thing that's uh not really a money grandparents i don't know how you know it it's just like your mother is overbearing and this is one example where she's out of control and has no boundaries and uh so you decide to use this one to come down on that overall issue and so yeah if that's going on then that's this is not the way to fight the fight you got to fight the fight a different way on that yep so but again it's not going to screw it up the other thing i will say is this um they can go uh to the next door neighbors and eat ice cream and you find out about it later and you don't allow ice cream because of your nutritional beliefs or whatever i'm making up some bizarre example here but i mean the kids are and that does not give them permission to come home and demand ice cream so you know the the reason we teach children how to handle money is not really about money it's really about them building a generosity muscle building a saving muscle building a wise spending muscle building a work ethic and so when we put shores on the refrigerator we're going to incentivize you on the positive side with money but at the end of the day you're still going to do the freaking chores because it is my job as your dad to make you learn how to work so that when you grow up you don't live in my basement and so i can explain that to a four-year-old i could explain it to a six-year-old i can explain to a 12 year old that yes your mimi and papa gave you some money but we do this thing with money here because i'm trying to teach you that money comes from work not me and papa you're not going to get a trust fund that you're going to live on the back of a yacht so you're going to have to learn to work puppy and so i'm going to work with you on that so yes they give you money and that's nice but it doesn't give you an exemption right from feeding the dog that's right that's your chore yeah and so i'm going to play honey this is why i'm teaching you this honey you're going to do this it's not really nice of you that you're telling the why you know there you go when rachel was little it was just no just shut up and do it yeah do it oh well now we're gonna explain the why you turned up you turned out no this is so good this is so good no but really it and then it just becomes the point of disobedience that's that's the hard thing because you do have kids like mine i'm like they're so different one is motivated to do it and should clean the play room so like do i get my dollar like she yeah and the other one just basically the compliant one and the rebellious yes yes so you're gonna deal with that anyway yeah oh by the way when you tell the rebellious one to do something and why and they don't do it then you just tell them they have to do it anyway all they remember is that part maybe so just in case maybe so just in case just the things do circle back the middle the middle child in our in my family now you guys i am now you guys kidding me you got you as a middle child four and i'm really sorry you're you're your middle one is absolutely wonderful she is a rock star she is so sweet and so tough already she's her mom made over it's great so yeah yeah that's a good question because the boundary thing with grandparents is uh uh daloni and i were laughing about this on the air the other day the christmas one i bought all the kids those big plastic cars and none of them are big enough to drive them yet yes and the whole living room was full of them and it was like i completely overdid it i loved it and nobody loved it but me i was the only one that had their own two they can barely expect they can't they can't even get into it they can't walk yet but i got them a car yeah so um yeah it's yeah you got to have boundaries somewhere but uh brand new that one of the questions baloney and i had was a new baby the first grand baby oh yeah and that's the one that's the one where you learn all this stuff interacting with your grown kids and your grandkids and how it's going to turn out this is the ramsey show [Music] [Applause] [Music] [Music] rachel cruz ramsey personality best-selling author is my co-host today open phones at 825-5225 bill's in kansas city hey bill what's up hey bill how's it going belfast hey dave it's okay i knew what you meant it's all good yeah how can we help sir um hey so um actually i had a quick question for you um so um i've actually moved cross country a couple times now and i finally found a city and a job that i like and was thinking about buying a house um i don't want to take out a mortgage um but and so so when i was taking inventory of what cash i had i found out i had about a hundred grand uh in a 529 um that's kind of stuck there and you're for you yeah for me well my parents my parents left over my parents uh uh funded those assets um for you to go to college school that's correct and you didn't use it why didn't you use it well i had a full scholarship and and i went to a cheap school so we already when was that when did you go to the cheap school uh six seven years ago okay uh what did the chief school what are the cheap school how many scholarships how many dollars in scholarships did you get in total about 20 grand okay might not be worth the trouble but here's what you can do okay if you pull money out of a 529 there's a big penalty as you know okay right uh you can leave it in there get married have kids use it for your kids use it for your new wife okay whatever use it for your phd whatever or you could go back and get some professional tax advice because i don't know what to do with something this old but here's the rule on 529's you can take out of a 529 whatever your scholarship money was equal to and have no penalties or taxes and so if you had 20 000 in scholarships you can pull 29 20 000 out of your 529 and have no taxes or penalties on it okay but we got to go back in the years that you filed those tax returns or didn't file those tax returns or whatever and it you may have to file like an amended return to pull all that off i don't know how that part will work but in theory you can pull out how much you had in scholarships if it was last year it'd be real easy to do okay and bill do you have kids are you married got kids right no no no no i'm single okay so all right because the 529 can pass down you can pass it down later you can just let it sit there but you can't use it for the house without heavy penalties yeah it's gonna be i think it's a 20 penalty plus taxes on all the growth so you're going to get hammered the 100 000 is going to turn into 60 by the time you pull it out if you use it for the house i would not use it for that unless i could find scholarship money to apply against it do an amended return and get the money out that way that'd be the only way i could and then you would just leave it to roll over to his kids if he has kids in the future or yeah open phones at triple eight eight two five five denise is with us denise is in indianapolis hi denise how are you i'm well how are you better than i deserve what's up that's what i thought i am 57 years old i'm hoping to retire in five years i'm a teacher and my salary is 43 000 a year i have retirement income from previous jobs uh two pensions that equal a thousand dollars a month and um i have my three to six months saved up i have six months saved up in my emergency fund my question is being this close to retirement uh and i didn't expect to retire uh on my own by the way divorced about five years ago so recovering from that um i've got my six months in my job is stable i was wondering if i should take three months of that salary and put it into mutual funds instead of letting the cash sit in the bank denise do you have any other retirement any other money to your name i have a traditional ira that's currently worth 14 000 and i have a 401k through my current job uh currently sitting at uh around right over 3 000 and i've got 15 of my uh valerie going into that okay that's great um when i hit 65 i have the annuity that i got from the divorce that will start paying me 800 bucks a month for the rest of my life but it's between the 62 and 65 that i have to bridge okay and you live you live pretty frugally obviously okay yeah so yes i i would not put i would just put it rather than my mortgage yeah i just put it in a straight mutual fund i would not put it into a retirement account because that way if you run into a more than three month emergency you can still get at it but we really aren't going to use it for that we're really using it for long-term investing but you're comfortable with the three-month side of the three to six months because you live frugally and you've got access to these other monies coming in and stability of income off of the old pensions and that kind of stuff right right yeah yeah so that's fine to do i wouldn't i just you can't call it your emergency fund if you put it in mutual funds that's just my rule right because i don't want people putting their emergency fund in mutual funds because then transmission goes out the mutual fund's down and then you'll go put it on a credit card because you don't want to cash out your investment while it's down and all this kind of crap starts to play you use the wrong tool for the wrong job then but the three months of emergency fund on the three to six month range in your situation is fine because do you have kids at home denise anyone depended upon yeah so it's just yeah it's you at this point which is just yeah you're you're honestly the textbook when we teach who should have three months and who should kind of gear more to that six months you are textbook three month i mean you it's you um not a ton of you know dependents there in the home income is stable it's not like you do freelance work and you have up and down months i mean all of that so yeah denise i think leaving three months in there is a great plan exactly and all the other indications and everything else you've described indicates you live very much within your means and very frugally the whole way you described your life says that yeah so you're going to do just great you're going to do fine with that now the other thing is stay with the 15 going into retirement because that's going to be the big answer to your retirement problem not this extra three months going into a mutual fund this extra three months going into mutual funds a fairly minor click on the dial overall the big click on the dial was when you start putting 15 of your income away and we start working to get that house paid off and you know when you hit 65 70 you've got a paid for house and you've built up a pretty good nest egg by then over this next uh eight to 17 years or whatever we end up with here so hey thanks for the call open phones at triple eight eight two five five two two five julia is in colorado springs hi julia welcome to the ramsey show hi mr ramsay thank you for taking my phone call sure what's up all right i am a single parent working a part-time job and grateful to have that job after being unemployed for two and a half excuse me three years and i want to thank you also for your show i it saved my life so i really appreciate your show thank you thank you um i am calling to ask you i did have to declare bankruptcy last year um i had three credit cards they were out of control just so that i could put a roof over mine in my son's head and provide food etc just through a series of events and i'm trying to build up my credit my car is 16 years old i am looking at going to college this fall and right now in the apartments that i live in i'm hoping to move out it's just not somewhere where i want to be yeah you need to have learned your lesson with the bankruptcy that credit is not your supply don't build up your credit don't go back in debt it hasn't been a blessing to you learn your lesson don't build up your credit that's the answer to your equation build up your cash build up money and we'll walk with you and help you rebuild i've been right where you are and scared like you've been so you hang on i'll have kelly pick up we'll get you signed up for financial peace university in a year of ramsay plus we will teach you how to handle money you do not need to build your credit you need to build some wealth and we'll show you how [Applause] [Music] [Applause] [Music] [Applause] [Music] [Music] rachel cruz ramsey personality is my co-host of this hour open phones at 825-5225 you guys jump in we'll talk about your life and your money michelle is with us in scranton pennsylvania hi michelle how are you dave i'm great how are you thank you for taking my call sure what's up very exciting um my husband and i are on our baby set too it's been amazing and to encourage people out there if you're starting this journey at 58 it's not too late and they can change your life so and the second most important part is that my husband wants to know what you think for investing and would you advise sort of to hedge against inflation um buying like some gold coins as part of your emergency fund [Music] okay um no and i wouldn't suggest you buy stock in home depot either or apple or exxon why because the price is too volatile to use as an emergency fund the purpose of the emergency fund is insurance not investment it's there for the rainy day the umbrella is there for rain only it is not there to fight off bears it's just for rain that makes sense yes indeed um so as so let's say we have the emergency fund in cash that's all you need is an extra you can put it in the bank in a savings account if you want and michelle i'll go and i would go a step further too because you're wondering you said my husband wanting to know about investing and then specifically in gold but nowhere in the baby steps do we recommend people buy gold period so any other single stocks either like he was saying but when it comes to investing in that time still not suggests investing in commodities or anything like that so in the market yes through good gross dog mutual funds or in a retirement vehicle like a roth ira 401k 403 b but in general our piece of advice when it comes to investing is to stay away from gold so let me kind of talk you through something too that's interesting so what this tells me by though and the way you asked the question was that your husband's been reading crap on the internet okay on gold sites because a he should i buy this you said as a hedge against inflation okay now let's talk about how that works here's the way you've heard of a hedge fund right now a hedge against something goes with the thing so the thing doesn't destroy you meaning that if you want to do a hedge against inflation you would have to buy things that are incorporated in inflation inflation is the price of bread going up the price of oil going up the price of housing going up the price of electricity going up uh the price of living going up gold is not one of those things it does not follow inflation there is no correlation between the price of gold and inflation zero there's no correlation between the stock market going up the stock market going down in gold zero there is some loose correlations that really what gold prices correlate to is fear or greed when the marketplace deems that the world's falling apart oh god and all the conspiracy theorists come out then the price of gold is going to go up but that's what drives the price of gold up not anything else and so if you really want to hedge against inflation you buy real estate you would buy stock in exxon you would buy stock in wheat farms you would buy stock in things that go up in cost when inflation goes up when the price of things goes up the things you'd buy stock in general motors because the price of a car is going to go up you buy stock in bridgestone because the price of tires are going to go up that's a hedge against inflation gold coins are not the only place anybody says stuff like that is on their stupid butt gold coin websites that's the only place that comes up that's how i know where he's getting the information because it's technically the wrong definition does that make sense yes so when gold is going up in price that's inflation right that's inflation does gold hold its value no not necessarily you go back and pull the gold you can just go online and pull up gold prices over 50 years and number one you're gonna see about a five percent rate of return it's got a sucky rate of return and it's a freaking roller coaster at six flags to get there it's way up and way down just to get to an a boring average that's why i don't play in it because it's too freaking volatile it's too crazy to ride and i don't find any millionaires that say i got rich buying gold coins none i found a lot of people that got poorer buying gold coins but i don't find any millionaires in our millionaire study that says i got rich buying gold coins so this is where it comes from yeah and there but there is a level because i just had a conversation with a friend about this recently there's like this level of security feeling like yeah but gold feels safe gold it feels like i don't know because you can actually tangibly touch it and see it whatever the case may be there's this element of like oh yeah we're gonna buy gold because it just feels it feels safer that's what they were saying and here's what here's the weird part of that is it's not when when is it safe when do you use gold coins when you use a bar of gold to buy something never okay i mean go back to a complete collapse of government and anarchy in the streets you know what happens then the first type of economy that rises up is a barter-based economy so when katrina hits new orleans and wipes the freaking place off the map because all the levees broke and the whole place is laying down on the floor crying no one ran around with gold bars buying stuff but a can of gasoline some brand new blue jeans some work gloves some bullets you could trade that for anything for about six weeks down there right now you can trade two befores for just about anything in america okay with the price of lumber yeah but nobody's walking around with gold dust in their pockets this is not the wild wild west we have a medium of exchange primarily electronic but also these little green paper paper things with president's faces on them that is our medium of exchange so this anomaly this this weird thing all gold is safe everything goes to gold when all the when all hell breaks loose the world falls apart no it doesn't i mean you walk through baghdad after they kill saddam hussein nobody's walking around the streets there with little gold bars doing stuff immediately comes up with the next dictator's face on a piece of paper and this becomes your currency following a barter black market barter economy which is what follows anarchy so you go from anarchy to stabilization and there's always a currency that pops up following with the next government i mean when the civil war broke out the south they didn't run around with gold bars they printed up southern money which became worth nothing once they were defeated right we were defeated i was here i wasn't here but i'd live here but anyway but probably probably than that old but anyway but the you know i mean same thing i got these little pictures of saddam hussein on paper money that this guy in special forces brought me back and three bullets from an ar right when he was on a thing there and you know what that paper money's worth nothing because the people that supported it are worth nothing it's gone but there was never any gold backing any of it up but so why does fear drive it because you see i mean like the joke is i feel like on cable news networks it's always gold commercial you know commercials selling gold and that's it's it's on this false premise that if everything goes to hell in a handbasket you're safe and you're going to be okay if you've got a gold bar in your safe yeah well that's so much crap it's unbelievable it just doesn't work that way you know you cannot find a failed economy consequently a failed government that has completely collapsed where gold pops up as the standard it just doesn't not in the last 300 years 500 years is you find me one time in history you can study it you can't you know nazi germany hitler takes over is on a failed economy by the way that's what put hitler in place okay and they had hyper inflation her question was about inflation hyperinflation we'll borrow a load of money to buy a dadgum loaf of bread so hitler comes in to save the day he's going to fix everything with a stimulus check you know so uh and goes into power that's what happened and but they never once went to a gold standard never once there was a lot of black market stuff a lot of trading back and forth but never once did they do that so it's a fear-based thing and listen if you get your financial advice on the same channel where they sell walk-in bathtubs and snuggies you sh and your commercial breaks or they're selling you financial products right with snuggies and walk-in bathtubs that should be a clue right there this is the ramsey show [Music] this is james childs producer of the ramsay show did you know the ramsay show is one of the most popular podcasts in the world subscribe or follow today 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 broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host thank you for joining us america it is a free call at triple eight eight two five five two two five that's triple eight eight two five five two two five you jump in we'll talk about your life and your money renee starts off this hour in iowa city iowa hi renee welcome to the ramsey show hi dave can you hear me okay yes ma'am what's up okay my husband and i have a small business that is an s corporation since we're employees of the corporation we receive paychecks do we do we tied based on the paycheck our household income which is our paycheck or do we tithe on the household income and the profit of the business so we leave the profit or part of the profit into the business well a sub s is all profit is technically taxable correct passes through it has no taxes on itself all the tax all the taxable income passes through to your personal return okay and so you're going to pay taxes on it whether you leave it in the business or not um so uh what i generally try to do and this is an exception but i generally just say whatever i'm paying taxes on that's my tithe i'm tithing on that okay okay uh because that helps me if i make a profit on this or i don't make a profit on that or whatever then if i if i got to pay taxes on it means i made money and so if i made money that's an increase according to deuteronomy and i tithe on an increase i'm not legalistic about it i just try to over give just try to figure it out and give a little bit more so now here's what i do on my business personally i do not tithe on what i leave in the business as retained earnings because it may become an expense later and won't be real profit it might be in this calendar year profit but next year it might be spent to cover payroll during covit correct so i do not tithe on it until i take it home even though that retained earnings account is 100 taxable okay so that's the exception to the rule i use of if it's taxable i tithe on it i don't tithe on that and it's taxable and the rationale is that i leave it in the business and so i mean i may leave two million dollars in retained earnings or five million dollars in retained earnings in the business this year and uh it might get be it might be spent on computers next year and so the net net is i did not have a profit on that item it was expensed out eventually it just wasn't in this calendar year um but you know it it you you really can't mess this up because god's not mad about the tithe okay and do you have a time for a quick question sure okay my husband and i our income is a little over 150 000 we have no debts we have no home mortgage our business was paid for um and we have a million dollars and plus in our retirement way to go thank you um but we're looking at a second home not to replace our first home but just to have a vacation home and we have 200 000 cash for exist but the price would unfortunately be around 500. so we would probably do a mortgage i wouldn't do it okay a second home is a toy yep and i've got a wonderful lake house one of my favorite places on the planet the number of hours i actually get to spend there versus what the thing costs is asinine it absolutely it absolutely makes no sense at all and having a mortgage on it makes it really stupid it's a big old toy that's what a second home is okay great thank you you pay cash for toys you don't buy them otherwise they're toys it's just straight up you've earned it you've made a good money you want to have some enjoyment papade be throwing some kids off the dock down there dragging them around behind the boat trying to drown them all summer we'll be doing some stuff right but all of that is fun enjoyment consumption and all of that is just like it's like going on vacation you don't go into debt to go on vacation that's dumber than a rock people do it all the time but it's dumber than a rock and so you just don't buy toys you know if you've got a million dollars and you want to buy a 50 000 uh classic car well you've earned it that's fine get your 50 000 classic car there's nothing wrong with that i'm not mad at you you got a million dollars you got two million dollars you got 10 million whatever it is that's great get you a stinking car that sits in the garage for you to go down there and look at it every so often and go i got a classic car because you drive it two days a year maybe if the battery is charged can you tell i know this and so and it's okay there's nothing wrong with that level of consumption as long as it's a small percentage of your world and you are paying cash for it now if you got 10 million dollars you buy 50 000 car that's like somebody that has a hundred thousand dollars going and buying a biscuit so it's not relevant to your life financially mathematically so it's okay to do but always pay in cash and always be a small percentage of your world half million dollars out of a million dollar net worth now your business is probably worth something your house probably worth something you might have a two million dollar worth half a million dollar vacation homes a bit high a fourth of your let's say you got two million dollar net worth a fourth of your net worth in a vacation home that's a little heavy that's a little heavy i wouldn't be that high in a toy uh but but again nothing wrong with it i just the way i judge that is ratios and can i pay cash audrey is in cincinnati hi audrey how are you i'm fine dave how how are you doing better than i deserve what's up well i have um a pending problem my brother died in august of last year and my 92 year old mom lived with him so now she lives with me but my dad had a 90-tillable uh acre farm and all this needs to be sold a sporting goods business the farm has two rental houses on it and my mother's house is down there too there's also acreage up on the mountain that they go hunting on who's that who's they um well my uncle uh it's a garner's farm everybody hunts down there um everybody who's everybody your family yeah yeah okay all right so what's your question how should i um orchestrate the sale of the farm my uncle wants to buy it is there any way that i won't i could reduce taxes if we sell it now i don't really want to wait till my mom passes away to sell it because i have a lot on my plate um but what would be the best way to handle all this if you sell it now your mom's gonna pay taxes on it on the sale if you sell it after she passes there won't be any taxes okay she's 92. yeah yeah i mean it's it could be a lot of taxes this sounds like an expensive property i mean we could be talking about hundreds of thousands of dollars i would lease it to your uncle with the promise to sell it to him for market value at the time that she passes you can get professional estate tax advice and double check me on that [Music] what makes our show unique is that we genuinely care about our listeners we're intentional about choosing the best advertisers to recommend blinds.com is no exception they offer high quality window treatments at unbelievable prices and they make it simple to shop blinds shades and interior shutters with easy online ordering free shipping and a guaranteed perfect fit go to blinds.com and take advantage of this week's special savings [Music] all right going into the break audrey called me from cincinnati and uh her mom is 92 her dad has passed and her uncle wants to buy the family farm her mom's moved in with her but the old family farm is mom's old home place audrey wants to clean it all up and get his soul to the uncle before mom passes just for the lack of hassle and so forth uh audrey i want to circle back on a couple things and make sure i get better information and then also say real slowly that you need to meet with an estate planning attorney that knows taxes to keep from being charged out the wazoo here okay now yes and i'll teach you a little bit of why so your mom or your dad inherited the property i assume your dad since your uncle wants to my dad bought the property he bought the property when did he buy the property um back in 1955 yeah okay so what do you think the whole kitten caboodle is worth today oh my gosh the the farms valued at uh 300 over 300 000 the store the sporting goods store is over 100 129 thousand um my parents house is um over a hundred thousand and the mountain the hunting mountain and in that oh that that's probably like 67 000. okay so let's call this 600 000 bucks and let's pretend your dad paid almost nothing for it because that's the truth yeah okay so your mom and your dad bought the property together correct correct okay and so your mom is now the owner of the property correct exactly yes so when you buy something for 10 000 or twenty thousand dollars or fifty thousand dollars and you sell it for six hundred you pay capital gains tax on the difference of fifteen percent and so taxes of fifteen percent on this are going to be a hundred thousand dollars okay if your mom sells it if i understand what you've told me correctly that's why i want you to get detailed tax advice because it's too much for a radio call okay but okay the the principle is what they paid for it is called their basis yeah the basis your cost basis from an accounting perspective and the difference in what you sell it for minus basis is taxable at 15 or capital gains rate okay so that's that's the problem here now if your mom not if your mom we're all gonna pass when your mom passes and you inherit this or you and your siblings inherited your basis becomes market value at the time of death oh okay so if market value is 600 000 your basis it's called a stepped-up basis goes from 30 000 or whatever they paid for in 1955 all the way up to 600 000 you turn around sell it to your uncle for 600 000 you have zero gain oh neat great that's why i'm saying we're gonna wait until mom passes unless there's another vehicle to do this or unless i'm not understanding the situation right when you meet with a professional in the estate tax planning world okay okay now okay now that that that's why i just said no don't do it wait a mom dies okay because it was taxes on 600 grand minus whatever little they paid for it in 1955 which almost the whole stinking thing gets taxed okay that's what i'm trying to avoid now the second thing that runs through my mind is okay your mom is 92 your uncle wants to buy this how old is your uncle he's in it he's like 85. why does he want to buy it at 85. it's called a garner farm and he and his brother owned it together his son no his dad oh your your farm your your dad bought it from his dad no no no my dad bought it his farm separately but my uncle has a farm right a journey uh adjoining it oh he's wanting to combine this for his kids yeah and keep it in the family yeah okay that makes sense and he wants to keep it in farmland and not let buildings go on because now that would be his prerogative if he owns it okay yeah absolutely that now now i understand because otherwise i don't understand why an 85 year old's all happy to buy from a 92 year old you know it doesn't just in general i mean for his personal use no but for his legacy yes yeah i get it okay that makes sense because they've hunted that property and farmed that property adjacent to each other him and his brother your dad hung out together probably had a great memories great relationships there's a lot of legacy tied to this dirt and that's cool that's very cool okay so uh again number one you're gonna see an estate tax planning professional and you understand why because the possible tax implications on 600 grand right and the remember the phrase stepped up basis yeah because that's what happens on death okay now the last thing then if i'm right i think i am but if i'm right on all those tax implications what you could do is you could lease the property to your uncle for a dollar a year let him take over and run everything him and his boys or kids or whatever and you don't have to run this farm or the sporting goods store or whatever it's just his we're going to lease it to him as if he owns it and he's gonna have the first right of refusal upon your mother's death to buy the whole kit and caboodle in one fell swoop for cash not financed by you okay we're not getting into all that but he has the right to buy it at 90 percent of appraisal oh okay and you're gonna have an appraised when mom dies and you're gonna sell it below appraisal to him because if you sold it after she died you're going to have costs that are going to be 10 or so to get rid of it and you've already you don't have to go through a realtor you don't have to go through a bunch of rigamarole you've got your buyer okay and the only reason we're not selling it to him today is taxes on six hundred grand i thought that i would have to pay the taxes no there is no taxes on inherited property no because it's because of stepped-up basis that's the beauty of it and um and if someone just leaves you 600 000 cash you don't have any taxes on that inherited money does not have a tax on it by the person getting the inheritance so um that's the beauty of it now there might be some probate tax which is like an inheritance tax at your in your local state that's possible in ohio i don't know what that is uh or isn't but um but but you can check on that to be sure but that's not going to change this number this number is going to be driven by the capital gains on 600 grand that's what's going to blow this up and and make you and make you want to lease it with an option or a first route of refusal by by your uncle and uh and that kind of a thing and or his heirs if he pre-deceases your mom he's got his boys or his kids or whatever he wants to leave it to right right right and if they don't want to if they don't want to buy it they don't have to you can just sell it but um at that time but uh that would keep you from having to operate which is your current hassle factor right okay all right that's a better answer than going into the break and slamming slamming you going okay uh no way to shut up [Laughter] okay um what should i do because there's two houses on the property and mom's getting rental money about five hundred dollars a month what should i be doing with that money i wouldn't worry about injury don't worry about it just let it in a bank account yeah sit there yeah and if you're gonna rent the house if you're gonna rent the property to him you might not count those in it you might let her keep getting that rental rental income oh if you're going to if you're only if he's only going to pay a dollar you don't want to give him the rental income right well he's he's already renting the farm from these um yeah okay pays like a thousand dollars every three months oh well you could just leave all that alone and then just give him a first route of refusal right if you don't mind operating the rentals uh on her behalf helping her with it then that'd be fine wow a lot going on it's amazing how much effort we have to spend on america to keep the government from taxing something that we've already paid taxes on that's what they do with the state by the way the death tax is they tax your stuff after they already taxed your income that before you got to buy the stuff this is called estate taxes you evil rich people must be punished this is the ramsey show [Music] [Music] family [Music] in the lobby of ramsey solutions on the debt free stage matthew and candace are with us hey guys how are you hi dave hey dave welcome welcome good to have you guys how are you great where do you all live columbus ohio welcome to nashville thank you and all the way to nashville to do a debt free scream how much have you paid off 171 and 400 dollars all right i love it how long did this take 13 months whoa and your range of income during that time uh it's pretty much all of 2020 so it was 235 thousand dollars okay very cool all right so what kind of debt was the 171 000 a little bit a little bit of everything i'm going to read off my sheet here okay uh 71 000 of student loans for undergrad and graduate school 41 000 of credit cards uh 40 000 of a home equity loan that we uh paid off when we sold our uh 11 000 of some other personal loans a 401k loan 4 600 of a car loan of medical bills you're just more normal you're just normal we were making really good money and just spinning all of it and then some wow okay so tell me the story what happened well our story goes back longer than 13 months when 18 year old matt and 18 year old candace started signing promissory notes to go to college to go to graduate school and we felt like we had no choice but to do that at the time and that just sent us on a destructive path for 20 years and we got to a point about exactly two years ago where we said we can't live like this anymore and we have two young girls and i started doing the calculations in my head and college was coming fast for them and there was no way we were going to have them go to college and we were going to still owe all this money so we made a huge drastic change um we sold our house we stole all of our furniture we sold everything that was kids toys wow we almost sold them oh my gosh wow and we moved into an apartment and we're actually still in our apartment because then the pandemic hit and we were not expecting that so that was a huge adjustment for us and um we became debt free at the end of 2020 in december and we wrote that final check uh to pay off our largest student loan and it felt so good and so it's been a transition ever since then um so what did the house sell for about 350 000. at a 40 home equity loan and what else we we owed about 280 or so so after we paid all the fees we netted roughly 40 000 which the whole microwave loan was just a loan to pay off other credit cards it wasn't much it wasn't much we weren't yeah you just you just got out of the payments yes yeah yeah you cleared declared the home equity loan in the process yeah yep exactly wow wow very cool what do y'all do for a living i'm a social worker for a managed care organization in columbus and i actually work in finance supply chain oh good okay fun good for you guys all right so it built up and built up and built up over the decades literally and then about two years ago 18 months ago or so uh something happened i mean what what what i mean you you just looked up i mean what what is there you remember the day you remember yeah it was actually um my daughter's my oldest daughter's first communion and uh we're catholic so she was dressed in her white dress her veil and she just in the blink of an eye like grew up right in front of me and i think that hit me hard and i and i knew we had to make changes for our family um you always talk about changing your family tree and that was it for us we did it we did it for our girls we wanted to give them a head start in life and we didn't want them to end up how we did but we didn't know anybody so you came home from the communion and the two of you just sat down and started talking or what uh yes and no a few years before that my friend james bought me the total money makeover i actually brought it here since before 2014 i read it hey these are some pretty good principles let's just continue to be normal i read it again so i think it was a matter of we didn't think we could do it until we were both in on it and really looking for like this plan that we're on it's not working we're running we're sprinting toward this never-ending debt we turned around and we ran the other way and uh we share our story with as many people as we can well not to mention uh dave when our daughters were in daycare for all of those years it was impossible to really start your plan and um to make all those payments we were upside down in everything we would stress about which bills we were going to pay which ones we weren't going to pay and it was very stressful so yeah it was impossible until you decided it was possible it is so staying focused and we didn't have a budget i can't believe how many people i talked to today they don't know where their money's coming or going either yeah so once we put that down and we say well we don't need this don't need this it became very real that the goal was attainable during a pandemic year yeah absolutely absolutely that's so cool yeah something happens emotionally that that it's belief hope i believe i can it's hope that's real that makes you go okay i'm willing to sacrifice now because i wasn't willing sacrifice if i didn't think it's going to work but something has to go over the line and and sometimes it's something that pushes you over the line like looking at this uh little baby that all of a sudden is a young woman and you go wow this is going fast i better get my act together and sometimes when people have their first child it's the same thing they go whoa grown-up time now and you get real serious about it something happens that caused you to go uh whatever it takes we're gonna do this by gosh i mean my goodness i'm so proud of y'all well done thank you thank you not not only paying off the debt but we've we got the term insurance we got the mama bear legal forms we got all of our stuff in order during this process too and we couldn't wait till until that paperwork was finalized so that we just can breathe a little bit of relief during that time it feels good to have your act together it definitely does we're playing offense and defense yes that's it it's wonderful it only took this long it's all right you got plenty of time left you're just pups you got plenty of time well done well done all right what do you tell people the key to getting out of debt is a couple things definitely the budget we were doing that every single day the gazelle intensity the discipline and the patience working as a team communicating side hustles all of all of these things combined definitely we're high school sweethearts so we've been together a long long time and i think the discipline in patience was the biggest thing um for us just sacrificing and as being totally selfless and just you know focused very very focused yeah way to go guys way to go proud of you thank you all right and you brought your inspiration with you what are their names and ages oh yes this is greenlee she's 10 years old and this is bryn she's 8 years old all right beautiful this is our why absolutely definitely makes us cry so absolutely it's good stuff that'll make you move mountains right there yes well done you guys thank you so much beautiful family i'm so proud of y'all thank you way to go heroes we got a copy of the legacy journey for you because that'll be the next chapter in your story as you move on towards wealth and legacy change family tree changed and an extra copy of total money makeover to give away and be able to be able to pay it forward so good stuff i'm proud of you guys all right matthew candice greenlee greenlee and br brynn are gonna do their debt free scream 171 thousand dollars paid off in 13 months making 235 they sold their house they sold everything but they're done now they get a fresh clean slight start count it down let's hear a debt-free scream ready three two one we're done [Applause] yes yes yes yes yes this is how it's done i love it there you go man family tree changed good good stuff this is the ramsey show [Applause] [Music] [Music] our scripture of the day proverbs 1 7 the fear of the lord is the beginning of knowledge fools despise wisdom and instruction conrad hilton said success seems to be connected with action successful men keep moving they make mistakes but they don't quit well i can say i've done all of that keep moving make mistakes don't quit done all of the above today open phones at triple eight eight two five five two two five common sense for your dollars and since tracy's with us in tacoma hi tracy welcome to the ramsay show hi dave thank you for taking my call sure what's up um my question is my mom passed away a month ago and i'm the executor of room yeah thank you um she lived a long wonderful wife he was 93. anyway um i've got we're going through her will and we're taking care of everything selling the house selling the car and everything my husband and i are already everyday millionaires we're worth about 2.3 2.4 maybe somewhere in there so i'm going to be inheriting probably 300 to 400 thousand dollars from her estate once we've got everything settled well what how how do i go about investing this i've got 66 for about in a brokerage firm in mutual funds 125 000 in cash in a mutual fund and then there's going to be another could maybe couple a hundred thousand dollars after we close out the escrow uh the estate account and have the house sold and then i also had a kind of a side question of how do we figure out what the value of the house is going to be uh for tax purposes it's about 328. zillow says it's about 450 and we're starting to get the real realtors coming in to take a peek at it to do the assessment but yeah that's that's where you find out the value there's going to be no taxes on the house price because of what we call a stepped-up basis um and that is that when someone passes away and you inherit property your basis in the property becomes the market value and you're going to sell it within the year of her passing and so that's going to be assumed to be market value what you sell it for you're going to have no taxes on the sale of the house yeah and mom and dad bought the house in 1961 doesn't matter yeah well that's wonderful but i mean doesn't matter for tax purposes because your only tax number that matters is you're going to sell it within the year of her passing so you're not going to have any taxes and tax value for property tax purposes is not an accurate value and zillow is not an accurate value zilla's in the ballpark and it could be accurate but you need to get with an with a real estate elp the people that we recommend are endorsed local providers that we recommend for real estate and have them put a valuation on it and uh help you get you know get it ready to sell and so forth and figure out what you're going to do there so then you're going to take all of this money and you're going to do what with it well um that's part of my question because we've got my husband's got a 401k of about 1.35 yeah you're already set i mean you got three million dollars so what are you going to do with this 400 well yeah we're not sure well we want to be able to travel on some of it we want to do a couple of things to update our own home good it's full paid off but um you know i want to be able to kind of maximize the you know earnings potential on the money but i'm not quite listen listen you have 3.3 million dollars you've done it you've already won the super bowl you're good okay so what i'm gonna do with this money there's only three things you can do with money you can enjoy it you can be generous with it giving it away and you can invest it and what i would do is just sit down with the yellow pad and you and your husband talk about it and put 400 000 at the top of the yellow pad and say all right how much are we going to enjoy on a trip and a rehab on our house how much are we going to invest and how much are we going to be generous to help someone else get their start right and you i don't care what number you put on it on on those three categories but break it down into three categories spending giving and spending is enjoying giving generosity and investing and you can do 90 percent investing 5 5 you could do 90 generosity you could do 90 spending and 5 on the other two you could do third third i don't care you get to decide because it's not going to affect your life you were already set before you got this money you can't mess this up exactly but that's the very thing that i've been worried about is that you know i want to be able to honor the legacy of my mom and dad well i think that if you don't blow it all that you've honored the legacy so i think if you invested some of it they'll be smiling in heaven i think if you give some of it they'll be smiling in heaven and i think if you enjoy some of it they'll be smiling in heaven am i right yes that's what i would want for my kids wouldn't you yeah absolutely and that's what i want for my own fun house yeah yeah so we're modeling that we're going hey when we got mom's money that's what we did and by the way when you get our money that's what you're going to do [Laughter] yeah yeah and that's you know that that's just a good healthy balance where people get into toxicity it with inherited money is if it if they don't plan for it and they don't and they leave out one of the categories i'm not going to spend any of it well you should i'm not going to give any of it well you should i'm going to blow it all i'm not going to invest a dime well you should invest you know i mean this is what people do and you're not doing any of those tracy because that's how you ended up with 3.3 million you're already doing all this stuff all i'm doing is telling you what you already knew joel is in muscle shoals alabama hi joe how are you i'm doing great dave how are you better than i deserve what's up well first dave i just want to say thank you so much because your message has completely changed my life and my family's life and our business so thank you so much well thank you i'm proud of you how can we help today well um so i i'm wondering here i have uh 750 000 in my business savings account i hate when that happens well we have uh no debt other than our house we have 135 000 on the house um and i'm just wondering is it wise to take money out of that business savings account to pay off the house yes or should it is okay so i shouldn't hold off and no it's only 135 000 out of 750. right your business is not going to skip a beat and you're going to feel so free you're going to want to run through the backyard with no shoes on because that grass is going to feel different under your feet oh yeah i can't wait for that feeling awesome yeah that's i i mean that answers it dave that's exactly what i needed help with yeah i mean if you want to spend 6 650 out of 750 i started asking you about cash flow issues at your business but 135 out of 750 dude we didn't you're not even gonna notice it's gone right right yeah i think it's just sometimes it can i guess maybe feel selfish or i don't know why i'm wrestling with it or just you know taking money out of the business although it would hurt your house your business very true yeah dave that helps me out a ton thank you you've done so good man i'm so proud of you you're millionaire man you did it touchdown you own a paid for business a paid for house and i can tell from the numbers we're dealing with that your net worth is easily over a million dollars well done that's a couple millionaires in a row we talked to here and none of them talked about inheriting it from their rich mother did they oh we did talk about an inheritance it was 400 000 after they already had 3.3 so they were already millionaires so don't talk to me about millionaires getting inherited money and that's where it comes from in america people that say that don't know what the crap they're talking about statistically inaccurate i talk to them every day and more than anybody else in the history of america ever has this is the ramsay show 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] have a friend or family member that needs a daily dose of ramsay advice in their life let them know about the ramsey call of the day podcast it's a quick hit of advice about life and money in under 10 minutes check out the ramsey call of the day podcast wherever you listen to podcasts [Music] you

Channel: The Ramsey Show - Full Episodes

Views: 44,566

Rating: 4.8834357 out of 5

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Id: dmBUHB3qHxo

Length: 121min 50sec (7310 seconds)

Published: Mon May 10 2021