Money Doesn't Make Decisions... YOU Do!

[Music] this is the ramsay show [Applause] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice george campbell ramsey personality is my co-host today this is the ramsay show as we're taking your questions about your life and your money open phones at triple eight eight two five five two two five so george with a little bit of traveling um you've been doing the show more than i have i know dave i mean first we beat you with the fine print podcast hitting number one while you were sitting far away number two and uh and then you've been gone and so i've been hosting with christy with ken and it felt like you know dad's gone we're gonna have some fun and now dad's back and so we're all buttoned up oh so so you guys weren't behaving or anything huh well you know we're we're live on national radio so we we have a filter still well yeah you might christy doesn't we all had our hair down uh on friday see we can't do that when i'm here yeah me and christy can do that that's not funny we had a great time but hey it's good to have you back we missed you well yeah it's not the same without you i can tell i saw that tearing in your eye open phones at triple eight eight two five five two two five we'll take your questions the call is free and some say the advice is worth exactly what you pay for it again triple eight eight two five five two two five robertson new york city hey robert what's up good afternoon dave how are you guys better than i deserve brother how can we help awesome so dave um recently i i have a construction company my father had passed away um we worked together for many years and we bought some real estate together throughout the years uh now i have about three thank you i appreciate it um i have about three properties right now i think i'm still in baby step two of paying all my debt because i kind of did them all out of order according to you guys um and i'm just looking to get some guidance as to where i can kind of pick up the pieces and what i should do with this real estate yeah so you inherited all the property no we we bought it together we we were we were partners on it i know but he when he passed who inherited his half oh my my mother oh okay okay so you're making this decision for both you and your mom um yes okay that's correct okay all right cool well i think um number one we're gonna put her her needs at the front of the table before your needs okay okay um but they're probably somewhat equal i mean it's probably like you know if you sell a piece of property you pay the debt some debt on some of your debt with your half and she gets some money out of it that doesn't hurt her you know that kind of a thing but we're not going to do anything to harm her and i think that's that's a given i didn't have to tell you that you already knew that but we'll just say that as our first leg in the decision-making paradigm um and uh how much debt do you have not counting real estate oh maybe ten to twenty thousand dollars but it's just business debt it's like a material we buy every month yeah if you have any money zero dollars yes yes so you got the money to pay it off yes sir okay so you don't sell real estate to pay it off no sir okay so what's your plan what can we help you with um i was one i have three properties uh one of them is free and clear two of them have a mortgage so i guess my question would be according to the ramsey method should i sell one in order to pay off the other mortgages and then start again having everything free and clear because they are income properties yeah they pay for themselves plus profit and that's where i get a little you know cloudy on the on the ramsey method yeah well the the ramsey method is just simply if you are debt-free you have less risk and you make more money so it's not there's no secret to the rams it's your great grandpa's method too it used to be called common sense right and so if you don't have debt you make more money and you don't have as much risk so let's just go back to that now then the question is i love real estate obviously you and your dad loved real estate um and i i um i don't there's nothing on fire in what you're describing so but i would develop a plan within a short number of years to use cash flow to plow into those two and let us let's get them paid off and your house get your home paid off gotcha now if you want to keep them if you got one of them you don't really like anyway and you want to dump it and spread the equity over onto your house and is your mom got dead on her house uh yes minimal but yes she does all right and what do you owe on your home uh about 400 000 okay well i mean i grew up in the construction and real estate business and so there's only one thing i'm sure of you can't be sure of anything right yes and so having a paid for house a paid for business and paid for property in the construction business puts you in a different frame of mind when you get up in the morning over a cup of coffee would you agree with that yes sir so that's a reasonable goal for you and for your mom so i might if i were in your shoes i might look over and pick out the one i like least and let's liquidate it and uh you know reach over knock off your mortgage knock off her mortgage and um then let's you know if it takes you three years to pay off the other one cash flow wise fine but don't look don't just sit there and play with this debt like it's a your pet monkey or something let's get rid of it right yes george you want to jump in here somewhere yeah i'm feeling that i just when i look at it through the lens of financial peace i go what's going to put mom in the best spot what's going to put me in the best spot and for me that's going i want to clean up my personal debt first including the mortgage if i can do that and then i'll become a real estate investor once i'm in a good spot i've got a good foundation you know you're investing for the future you've got that emergency fund in place and then whatever's left over you can have fun and play with some real estate at that point so i like the idea of selling one of those but i've got a feeling if you leaned into this if you sold one of them and kept the other one you could probably pay it off in what three to five years i think if i sold one property dave with the values here in new york i could probably pay all that off on every property and that's what i'm kind of that's kind of interesting that's kind of interesting ask yourself where would you rather be in two years two years from now i mean still feeding the monkey or just be get the monkey off your back i mean you know it's it's up to you i'm not i i think you're making plenty of money and i think you're going to be okay i the big thing i want you to do is have a plan to get rid of the debt whether it's instantaneously or three to five years okay got it if you got that then you're you're on the ramsey plan you're worried about the ramsey plan who gives a crap but but then you're on that let me tell you one last thing okay uh because losing your dad that you worked with and y'all built a construction company in a real estate portfolio together um you lost your partner you lost your friend you lost your dad all in one fell swoop and what i have told my son and my daughters is there is nothing that the ramses own that you need to keep because of me okay because sometimes you got well dad dad said never to sell that i'll dad wouldn't want us to sell that you know and i don't want that on you and i don't want that on my kids so it's just what is the best thing for you what is the best thing for your mom that's what your dad would want yeah and this stuff can get emotional like you're saying we took care of last week grandma would have wanted me to do this and we've got to make decisions for ourselves it's written into our estate plan the operating board is not allowed to keep sacred cows around here after i'm gone they should be shot and eaten i'll take a bite of that this is the ramsey shop [Music] [Applause] [Applause] [Music] [Applause] [Music] stop paying your overpriced wireless provider and switch to puretalk they use the same network as the larger providers for much less for just 30 a month get unlimited talk text and six gigs of data with no contract the average family saves over 70 a month by switching to pure top just go to puretalk.com and enter the promo code ramsey to save 50 off your first month pure talk simply smarter wireless [Music] [Applause] [Music] george campbell ramsey personality is my co-host today open phones at triple eight eight two five five two two five mike is with us mike is in cincinnati hey mike welcome to the ramsey show hi guys thanks for taking my question sure what's up so i recently became self-employed in january of this year and i was curious as to your advice uh for self-employed individuals that are having kind of an outlier good year and making more than they would expect to make in a typical year how to divide that up between taking money out of the business leaving money in the business to operate it etc okay what are you doing i'm an m a consultant okay all right um well i'm guessing you're running an llc or a sub s right yes okay so 100 of what you leave in the business is also taxable as income so you're not going to avoid taxes with any of it uh so the only question is just what kind of liquidity do you want um and so mergers and acquisitions have been a great year and you don't think that's going to continue not at the rate that it's going okay it's been an outrage outlandishly good year then good for you congratulations well thank you well it doesn't really matter where you leave the liquidity whether you pile it into a money market at home or whether you pile it into a mutual fund at home or whether you leave it in the checking account in the business it's going to be taxable no matter what you do with it but yeah i'm with you i think we carve off some of it and go uh we're not gonna go with the mythology of this continuing exactly as is um you know we're gonna say okay a normal year looks like x and anything beyond x we're gonna try to set back uh and you know if it sits there a year or so we may want to start siphoning off some of it into some other things but uh if you did something like pay off your house with it or you did something like pay off your debts with it then there's no loss there in net worth because you stabilized yourself for another year the same as the cash would have stabilized you okay i think i'm planning to pay off the rest of our house we do have about 100 000 left in the house but there would still be some left over unfortunate that it's a low cost business to just be a consultant obviously a services business right um so there'll be still quite a bit left over enough to run the business for several years going forward so i was planning to leave it all in there and not take much off the table aside from that yeah i i i would do a i would leave some in there um but i'm not gonna leave it in there in perpetuation at that level i mean six months of operating is plenty inside the business and that's probably not a lot of money as you're talking you know because you don't have a lot of overhead right yes yes so i'm carving the rest of that off i'm gonna start investing some of it because you don't want like 200 000 bucks sitting there doing nothing that didn't need to be there from a liquidity standpoint and you do need some liquidity you need some retained earnings and we recommend since we run our business debt free our goal has always been to be at six months of operating we never get there because we grow so fast we've grown faster than we built our savings but that liquidity makes it operational yeah i mean if on the personal finance side i like the idea of walking through the baby steps and if he can pay off the house and still have some there and retained earnings and savings for the business that's great that's definitely the the play that sounds like that's what you're already on and i would go that direction james is with us james is in orlando hi james welcome to the ramsey show hey guys thanks for taking my call how are you better than we deserve what's up awesome so i am 24 um and i've been having some conversations with my employer and they are about to offer me a pretty substantial um position and a new market in dallas texas and i'm going to be going from sales right now i'm going to be going into a management and sales role in dallas and so i'm curious how do i when it comes to compensation negotiation i know that's definitely not everything when it comes to to a job but how do i go about doing i guess my research to make sure that the compensation package that they give me is competitive and what it should be for that area [Music] well first of all what does this look like as far as this a done deal is this already happening what's the conversation's been like so far with hr yeah it's it's pretty much a done deal and i was told that i should be seeing some type of offer letter by the end of this or next week okay and you don't have any idea what it's going to say i i know the structure of it but i don't know what the numbers and figures are going to look like yet no well there's a lot of unknowns here still i might wait on the offer letter and then you can have that conversation and you can do some research but again it's going to vary so much it's hard to put a number on it especially at 24 years old and you're stepping into this this new role with a player coach type uh sales role that you don't have a lot of experience in i don't know how much negotiating power you have to you know get 30 or 40 percent more why do you uh what is it what kind of business is this what kind of you're opening a branch uh yeah it's a uh it's a commercial contractor construction contractor okay you ought to be able to jump online and say okay running a branch of x number of uh what do you think you'll run through there in terms of business 10 million 20 million 2 million what um first year if it's just if it's like any other branch we've opened hopefully between 8 to 12 okay i would say you could jump online and say what's a construction manager of an office making a run 8-12 top line get paid you probably can find a comp study somewhere shouldn't be that hard i mean i'm guessing google will probably answer your question i have no idea by the way what that's worth what do you think it's worth what do you think they're going to pay you man i wish oh come on i mean you have a guess what would make you smile real big uh 75 base and then you're getting spiffs on profits or something yeah yeah that's not a bad gig at 24. i'm not arguing with that much i do not know though i don't think it's worth 250 so i don't think you're getting you know it might be worth 85 instead of 75 i don't know uh and depends on what the spiffs are on the upside too what percentage of profit kicks you're going to get that kind of thing and you know so get guess at what your actual income's going to be it sounds like a fun adventure all the way around because i haven't heard anything in your conversation or your voice tone or anything that says anything negative about these people you like them you trust them oh absolutely i just want to make sure i knew how to do my research correctly it's kind of more what i was getting at i'm afraid i'm not much help my you know when the only answer you can get is google it you didn't find much help so i don't know i uh you know the other thing is there any kind of a an industry association that you could tap into in the in the commercial construction world that might have some numbers uh possibly i haven't that i i would consider that as part of my research that i haven't done yet yeah you got anybody's in the business that are working for competitors uh actually yeah i do now ask them so what should this be you don't have to ask them what they're making but ask them what should this be worth sure and you know if they come back and go 100 and a quarter and you get 75 then you probably do have some more research right but if they come back to 185 you get 75 then they may not understand your spiff package and um you know you can get into it that way and have a discussion but um you're smart to not go in blind but but um i'm sorry i wish i just knew the perfect website coleman might he's not here today but um and you can get on linkedin and try to find people in this similar industries in your area and get in touch with them they might be able to meet with you or just do it over messages that's so much better than google thank you that's an option better answer but if your only answer is google it means you don't know anything that's what it means google knows all when i say go to google that means i know nothing that's what it means you know if you you could have done that without calling me you know we're better than google hopefully on some things obviously not on that so there you go it's okay we're still got listeners that's right two of them all too okay yeah both of them but he's gonna be all right he's a sharp kid 24 years old and already getting to leadership roles that's awesome this is the ramsey show [Music] [Music] [Music] george campbell ramsey personality is my co-host today i'm dave ramsey your host in the lobby of ramsey solutions on the debt free stage brian and amy are with us hey guys how are you good how are you how you doing dave welcome welcome good to have you where do you live we're from north carolina greensboro okay cool welcome to nashville and all the way over here to do a debt-free scream how much have you paid off we have paid off 295 578 dollars awesome and how long did that take five years one month and one day who's counting [Laughter] love it and uh what was your range of income during that five years we started off making 76 000 and ended with 138 000. nice what do you guys do for a living i am a firefighter and a part-time producer at a small tv station cool and i'm a physical therapist all right pt so i'm guessing five years did you pay off your house no this was pt bills yes it was college bills for both of you a large amount of it yes yeah how much how much student loan debt out of the 296 thousand was 278 000 oh almost all of it oh my gosh and then we got 17 of it for given two so okay how was that forgiven through the teacher loan forgiveness because i work for the public school system oh okay all right that's good so that was the quick one the short term one yes yeah good that's the one that's one of the ones that works not the 10 year plan correct yeah all right good for you guys so tell us what happened five years ago you said that's a lot of student loan debt what are we gonna do yes i graduated from school in the end of 2014 and then we got married in 2015. and so then the beginning of 2016 i was like we have to figure something out and make this work for us and so we knew about your program through our friends and so we decided to do the home study and followed the plan and started from there wow so uh brian a firefighter looks up and sees a fire this size everything's on fire we call it a big fire big water it becomes a surrounding drought operation at that point and uh when you when you have a big fire you need a lot of people a lot of personnel a lot of intensity and that's pretty much the same that's a good metaphor for this situation yeah you guys had to lean in and you had to stay on in a while i mean five years is no this isn't a five-month story it's a five years i mean in a culture where the average american can't keep a thought in their head for eight seconds you stuck with it for five years i'm so impressed you guys are heroes yeah how did you how did you stay focused because a lot of people they go well i got this much student loan at almost 300 000 i'm just going to pay it off till i die i can't tell you how many times i've heard that so what made you guys go we're not dying with this thing and we're not going to live with it for more than five years and we've heard that a lot too um that people say why don't you just wait for their forgiveness and we were actually in the forgiveness program for that ten-year forgiveness but my thought proce our thought process was that i'm not waiting for the government to you know there's a lot that can change in 10 years and so i just i wasn't relying upon that but most of it's not good [Laughter] during that 10 years i love that mentality deteriorating up there at a rapid rate i'm just saying oh my gosh so you guys drew a line in the sand where you said all right we're gonna have to make some changes what kind of sacrifices did you have to make over those five years to stay focused and get this thing knocked out it took a lot of uh eating at home um luckily my wife became a wonderful cook i felt that it was an evolution there yes there was a lot of stouffers early on and then it evolved into some very very good cooking a lot of leftovers um it's easy you know during those five years you talked about it's easy to get caught up there's those bad days you know when you get caught up and it's it's just hard and you really don't want to there was a lot of days when i came home and i said i don't i don't want to do this anymore and it was it was hard to keep going and luckily we stuck together as a team i think that's a lot of what it takes is sticking together having that team work sticking to the budget and those habits your habits are going to propel you throughout this whole process and i think that's what's going to propel us this is just the start you know from from here on everybody thinks that this is the finish this is just the star and the habits and the rituals that we have created are going to propel us the rest of our lives absolutely absolutely because i mean you have out of six years of marriage you have five years and one month of this rhythm and so you don't know how to do it any other way really correct and so this is gonna be i mean just actually going out to eight's gonna like shock your system you know so uh congratulations thank you thank you what do you tell people the key to getting out of that issue teamwork uh grit sacrifice leftovers and trusting in each other too i mean it's a team it took a team to get through it and i couldn't do it without him yeah and so without you yeah there was a lot of phone calls about everything it was it was a budget meeting probably at least what every couple days there was a phone call about something because something always comes up something always comes up i think and just being prepared i mean your plans set us up because there were unexpected things that did happen in those five years and it just helped us we had to pause and move on and it just it worked out well i mean we're here today so yeah well done well done very cool i'm telling you this the average american has a different thought every eight seconds wow and they stuck with it five years they're far away from average yeah now way way forward you guys are just so resilient i'm just so impressed with the level of teamwork you guys had from the get-go and how you guys knocked this out i mean this is a giant mountain most people couldn't even fathom paying this thing off in their lifetime and you guys decided we're gonna do this while we're still young and we have life to live and we have goals to achieve and now you've got 138 thousand dollars and every cent of it stays with you yes other than the uh two of you who are your biggest cheerleaders our friends uh shannon and brad well they came with you yeah yeah she's actually the one that introduced us to the program shannon okay family back home um a whole county full of firefighters so well i mean five years you got to talk about it i mean you got to get people have to know they either think you're crazy or they're cheering for you there's really no in between because you're going for it it's game on and uh so financial peace university home study today it would be through ramsey plus if you did the same thing and uh and here you are five years later 296 dollars paid off i'm so impressed we got a copy of the legacy journey for you that is definitely the next chapter in your story that rhythm is going to carry you out to where you completely change your whole legacy very very very well done and of course uh copy the total money makeover you can give that to somebody get them started on their journey so you can pay it forward there a little bit so thanks you guys we're so proud of you guys thank you thank you well done all right it's brian and amy from north carolina 296 thousand 000 paid off in five years one month in one day 76 138 000 household income range count it down let's hear a debt free scream three two one we're [Music] [Applause] let's go love it game on baby game on i love it so good you know i i it's impressive when people pay off their debt in five months or in eight months or whatever and i i'm happy for anybody that gets out of debt but there's something special when somebody sticks with something five years yeah most of you don't even know what you had to eat last night they stuck with it that's a marathon five years that's not a 5k they they really went for it and what i see is a couple who grew closer together and i love seeing that thread through every debt free scream when you see a couple who got on the same page it didn't just change their finances it changed their marriage and she became a good cook became a lot of changes he was not in trouble it was factual can you get away with that dave you said sharon became a good coach sharon just already was a good cook yes i didn't if that would not be accurate in my case she always had oh yeah she can yeah and i have my body has always shown the effects there it is life is good big ol smile you gotta love it this is the ramsey show [Music] so [Music] george campbell ramsey personality my co-host today i'm dave ramsey open phones at triple eight eight two five five two two five here on the ramsey show frank is in venice florida hi frank welcome to the ramsay show yes sir you always put a big old smile on my face mr ramsay well thank you sir how can we help i've got a little home with a pickle my girlfriend was paralyzed and i brought potter into my house and had to gut the house and buy no doors and put a mother-in-law's feet on the side for somebody to take care of her and all this and put a hundred thousand dollars more in the house and now uh she got her money and went on which is fine and i i'm stuck with a house that's uh priced at a and tops was 190 in the neighborhood and i was trying to ask 8289 and i'm not getting any bytes and i don't know should i keep it and try to rent it but with the rent thing i won't rent it so it's been empty for like two years and i just i'm kind of in the in the price of housing once it goes down it's gonna mobile homes get hit and you have to pay cash for it so the this whole thing this the the addition all of its mobile home pardon me the the whole deal is a mobile home i thought you said you did like an audition they did yeah yeah yeah would you attach a different mobile home to it i don't understand no no no it's the i bought it that way the carport area has a huge long carport and they took that side of it and put up um another uh mother-in-law suite on the side and so the whole structure is mobile home you have to walk down two stairs and then you're down in the other part of the it's like the ground floor on the garage level for the other part of it a basement so to speak it's the garage i mean there's there's a garage on the other side of the door where you can put your car in or your motorcycle so okay but i mean this there's not any portion of this home of this property that is traditionally stick built it's all uh no manufactured housing correct okay that's what i'm trying to get my head around whatever i can't see it in my head i'm trying to make sure i understand okay and and so you think that the actual market value on it regardless of what you paid for it if you put on the market and said i'm going to sell this to a real person for real money the the real market value is what i had a lady come out and she said it was anywhere in the neighborhood she priced it out for anywhere from 120 to 190. and uh it's all wheelchair accessible it has a deck dock on the water double lot three huge sheds concrete all the way around the house everything's macked out yeah all the furniture goes with it it's ready to go what kind of water is it on intercoastal or what uh fresh water goes up to two lakes okay all right just access all right um and is is there you said it was a neighborhood or an area that is worth help in the hundred thousand dollar range though well the the the realtor said it goes anywhere from 120 to 190 in that neighborhood well that's ridiculous i mean 120 to 190 why why didn't you say 50 to a million my god i mean i know i know that's what i i'd like so i think you need a different yeah click on elp at ramsey solutions and get one of our endorsed local providers out there to look at this thing um it sounds to me like it sounds to me like what you said is true um that you have you spent a lot of money to build a situation to build a situation out that you're not going to recoup right i'm like she'll know where to go so i got in my house yeah i paid people trades them to come home i know but you're well now i'm not saying you had bad motivation and that you're not noble you are noble and you had a wonderful motivation but the end of the story today is or the end of the next chapter is today i'm sitting here with a piece of property that regardless of how we got here that we have way too much invested in based on what it's really worth yes sir yeah that's what i mean how do i sell to a handicapped person and then they would love the house they just have to find the right person yeah you got you got to put on the market and it doesn't necessarily have to be a handicap just have some have to have somebody that just really doesn't want two levels it could be just somebody doesn't want to climb stairs anymore right and they like the water and they like the big garage and the carport and all that that's all cool you know uh and so i i don't care why they like it i just want them to like it and give you money for it right and you're going to lose money when you do this because you have more than 120 in it don't you oh my god i got over 300 in it yeah so you're that part's just screwed you understand that yeah that's why i was asking 289 and they've had 25 people to do come to the house it's a beautiful house but it's it's priced out of the neighborhood really when it's been 200. i'm like uh but you'll never find one like this yeah we know but yeah but you're priced out of the neighborhood see what what you what you paid for it doesn't matter what you'd like to get for it doesn't matter what someone what someone will actually pay you for it is all that matters that's called market value right that's what they're saying and this is this is the part of the story where you admit that what you did even though it was of good intention and a very noble call cost you 200 grand what are they supposed to do you know yeah that's it i'm not i didn't i didn't say you did anything but you wrote a check to be noble for 200 grand that's the net effect of this and the sooner you get past the idea that somehow you're going to get more money for this because you were a great guy taking care of her i'm sorry it doesn't enter into the equation of market value there's no part of the real estate valuation that says great guy yeah and i don't know how much equity you know frank's got in this thing or what he could sell it for what he get out of it where he's going to go next those are some pieces of equation he's got to figure out but the key here is and you talk about this in financial peace university in the real estate lesson is not overbuilding in the neighborhood and it's for exactly this reason because you're underwater on it like you would be with a car and so frank uh i think you've got some hard decisions to make but i think this is a stupid tax you've already lost the money the only question is are you going to admit it that the money's gone you're not going to get it back out of this property and then when you sell it and you get a check for 125 000 that's when you will admit it and that's okay there's nothing wrong with it again i'm not picking on you for your motives or anything else uh you know looking back on it you probably would have done it a different way if i were to ask you that but completely understand well it's the last day of august george and that means that it is the last day of our 10 book sale you can get almost all of our books on sale right now for 10 each including the total money makeover which is approaching 10 million in sales so we've sold a couple of those uh so ten dollars is a bargain on all of our best sellers all the ramsey personalities books are on there uh i mean just about every single book is on there for ten dollars and uh our most popular starter envelope system is on sale for ten dollars and the ramsey cash giveaway ends today enter for a chance to win three thousand dollars as a grand prize you gotta be 18 or older no purchases necessary text cash to 33 789 if you want to get on that 10 sale then what you'll do of course is go to ramseysolutions.com and click on the uh store there and get lined up on the bargains so george let's just recoup them a second two things and you always want to learn from these callers uh if you're out there number one number two um there's some principles involved okay number one is uh when you're in a desperate situation you seldom make good decisions there would have been a whole lot of ways to care for that lady his girlfriend that didn't involve losing two hundred thousand dollars uh and but if you get emotional desperate uh about how you're gonna take care of her and he has a big old heart that guy's got a wonderful heart um but you get emotional and that's when i have done some of the dumbest things i've ever done with money is my brain shut down and as you said i pay stupid tax because i get stupid so that's thing one thing two is overbuilding the neighborhood so if you're putting something on your house that the only way it makes sense is you have to be the most expensive house plus some in the neighborhood to get your money back out dumb addition don't do that number three is mobile homes go down in value 100 of them you put those three things together you got poor frank's mess and real estate's got zeros on the end so it hurts even more yeah these are not small mistakes no it's not a two thousand dollar problem it's a two hundred thousand big ole mess ouch sorry frank this is the ramsey [Music] dave here we just launched a brand new listener survey we want to know what you think about the show you'll be entered to win a 100 amazon gift card no purchase necessary take the survey ramsey solutions dot com survey or text survey to 33 789 [Music] this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host george campbell ramsey personality is my co-host today as we answer your questions about your life and your money open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five deanna's in austin texas hi deanna how are you i am well sir how are you better than i deserve what's up well uh we have an eighteen-year-old granddaughter that was in a car accident many years ago and she had started receiving quarterly checks from the insurance company when she turned 18. and she will receive those until she's 21. and she has come to us asking us questions about what we think she should do if anything with that money other than just putting it in her bank account i love it she comes to us because we are debt-free and therefore we're able to i think give her probably a little bit better hopefully a little bit better advice but since i really don't have an answer to this i'm coming to you absolutely well she's got a good head on her shoulders because she's actually asking for advice which is rare from an 18 year old so i'm impressed yeah is she okay health-wise yes she is okay that's good news so how much is this quarterly check that comes in it is thirty seven hundred dollars okay and then she will end up she will end up early around 32 000 somewhere around there by the time she turns 21. okay that's great and do you know her plans as far as kind of next steps for her life is she planning on going to school is she joining the workforce yes she is she actually has a a little job and but she will be transitioning out of that she's going to cosmetology school which her grandfather and i uh will be helping to pay for so her question is really does she spend part of her money because we're paying for half of her cosmetology school which is the total is about 16 000. so we're going to pay for half and her question is should she pay for the other half with that money or should she go ahead and work as much as she can i guess in the hopes of trying to pay for it which i don't i don't think she can because since school is monday through friday 8-5 or should she try to borrow that money to complete the other house well i'll tell you one option that is off the table and that is borrowing money the first two the first two are fine i mean i like her continuing to work and if she can't cashflow it i mean these quarterly checks are going to do it for her and so i i see no problem with her using that to cash flow cosmetology school get on her feet i assume after that she's going to live on her own after cosmetology school is she at home right now she is at home she lives with her mom and our hope is that she will move out onto her own at that point and that she completes school once she's when she's out of school and has a job in cosmetology yeah okay well she's what i would do is cashflow this thing and there's really three things you can do with money you can spend it you can save it and you can give it and so i love her really learning how to be generous at a young age and i love her having some fun because she's 18 and she needs to have a life and go out with friends and do all the things 18 year olds should do and she should absolutely save a bunch in an emergency fund and she can start investing as soon as she's in the workforce which is not going to be a long ways away from now does she have any debt she has no debt okay yeah i agree with george let's just let her pay for her half through work and some of this money the rest of the money is left for her to kick off her life with and that might include buying a home later it certainly will include having her emergency fund out there and the whole plan is the way people get into debt is they just don't think about other ways to do it and so they just go sign up and so when she gets she got a car she does not have a car as of yet but that's also something that her grandfather and i had told we told her we would help with so part of this part of this money will most likely go towards toward helping her purchase a car at some point cash on the car cash on the cost of holiday cosmetology school graduates with still cash in the bank and uh starts her life debt-free with a decent car and a you know a license to to practice cosmetology and here we go game on right game on that all sounds very exciting to me i like it i'll do it execute george is giving good advice ah james is with us in phoenix hey james welcome to the ramsay show hi dave truly an honor to speak with you you too what's up well my wife and i are 60 now and so we've really you've been an inspiration to us in so many ways and so we had two cars that we got paid off so we have no car payments we've just refinanced our house and we dropped it two whole points down to 1.875 great on a 30-year note i did that on purpose so that if something happened because we are older that i'd have a cushion so that's really helped us but our question is is you know the housing market has just exploded out here anyway in phoenix and so we now find ourselves with about 230 000 in equity so we're wondering you know like i would love to get my hands on that equity because it's not my money till it until it's my money so if the market were to crash then i'd be back to wherever we were so our question is is how in your opinion how do we draw out that equity and not put ourselves in way more debt again you know because we're in a really good spot no credit card debt so really it's just a house and we pay 200 extra every week on the principal well you you don't draw out equity you get equity when you sell the house or you have equity in the house and you live there but there's no there's no way you get money there's no way you get money out of the house without borrowing i mean you could go refinance your mortgage and run the mortgage all the way up but i'm not gonna tell you to do that you knew that yeah we're just we're just really considered concerned for our twilight years and you know that's about the only thing that we have that we can look forward to i have a small 401k um nothing really to brag about um got you know about 25 000 as a reserve emergency fund in cash that's good but other than that we don't have anything you got your first three baby steps done are y'all still working oh yeah i don't think i'll ever retire okay then just let's you're on baby step four let's start chunking money on that uh into that retirement fifteen percent of your income going into there you do that for five or ten years you're 60 that puts you at 65 or 70 you're going to have increased your 401 k substantially by then on your roth iras now where do you think that the best benefit would be should we stop paying the 200 extra in weekly and principal payments to the house and put it towards retirement or continue to pay the house down and use that as our dude you got five to seven you got five to ten years to get the house paid off and build a nest egg yeah cause our goal is to have the house paid off in ten years yeah so baby steps baby step four is 15 of your income going into retirement fives kids college that's not in place six is pay off the house early and if you want a good solid retirement you have a paid for house and a nest egg and you've got 10 years to do that so you need to aim at that and it's not going to be 200 a month extra it's going to be more than that it's going to be 15 you'll be putting at least 15 of your income into retirement and chunking money big time on that mortgage get that stinking mortgage paid off man and then build your nest egg up even bigger [Music] [Applause] [Music] [Applause] [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] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show george campbell is our co-host today ramsey personality and nathan is with us in san antonio hi nathan how are you hi dave and george thanks for taking my call sure what's up uh so basically i'm i'm 23 i've been living at home with my parents for the last six or seven months since i graduated college and i've basically just been saving money because i know i knew ahead of time that my job was going to help me relocate and i am relocating in the next week and i've been planning for that and i have um a beefier emergency fund than a thousand dollars um not that much only about ten thousand dollars but um i'm basically was planning on using that to move with um and the one thing my parents were helping me out with was my car insurance and um just yesterday they kind of uh dropped it on me that they want me to take over that well before expected um i was planning to pick that up a bit down the road after this policy like expires and we have to renew it um but i've budgeted all my expenses with my income and uh like i could easily do it it's just a matter of um i feel like they're kind of like dropping this on me at the last minute and it's not something i've really factored into what i'm going to be doing over the next few months and it's just so short notice that i i don't know if i should just do it to make them happy because um they kind of gave me an ultimatum about it that if i don't do it then they're not gonna they'll drop me from the insurance or i'll i'll have to leave the truck uh here at my house which is not really feasible um so i just kind of wanted to do y'all's advice somewhere so what is what's the insurance cost is this like a large expense i mean it's it's going to be like 250 to 300 a month um but basically you know i've already done my uh zero-based budget on every dollar and it's just not something that i factored in and i could easily just pay like the the full six months sum um up front um and take the hit on my um as like a moving expense i guess um but yeah it just caused like unnecessary function at the last minute and how much is your truck worth my truck is worth about uh i would say a little less than fifteen thousand what do you owe on it i said i owe 3500 okay and what is the uh and you have ten thousand dollars in savings and and how much are you making at the new job i'm making right now no at the new job when you move right well i'm kind of working the new job right now it's just been work from home but now that i'm relocating it's actually going to be the same pay but i'm getting a raise in april right now it's 35 and in april it'll be 45. that's good okay nice raise all right um it sounds like this is more relational i feel your frustration towards your parents more than it is the actual amount of the insurance yeah that's definitely that definitely played a role um we talked about it yesterday and uh it's just they they just see like how much kind of like stress it's all causing me this move um it is like from where i am now to florida which is like halfway across the country and um i don't know i really don't know what it is i think they feel like i'm somehow a big liability because of the far drive that i'm taking um and they just kind of like hit me with this when we've been talking for a while that no i think they i think they finally got you off the payroll and they looked up and went hey we can get rid of the insurance too i don't think they look at you as a liability i don't think they're trying to crash your little boat i think you're going to be fine they just they just want to cut the apron strings that's all they're doing uh and i agree i agree they're a little bit uh rough about it because it could have given you more of an emotional on-ramp or a mathematical on-ramp to try to uh to catch up i'm not disagreeing with you on on that idea nathan but um so here's what i would do i would go to ramseysolutions.com and click on elp for insurance have one of our elps shop your car insurance and get the best possible deal i think you might be over paying at 3 000 a year even at 23 for a 15 000 truck that seems a little rich to me i might be wrong but let them shop it for me okay then when they shop it you can put a car insurance on a monthly as you know and if it's 250 a month put it on the 250 a month and just tighten your little every dollar budget up and make it work and if you got to work an extra job a little bit you got to work an extra job a little bit it's just a little it's not a a devastating blow but it's heavy enough weight that they dropped on you suddenly that it knocked you back on your heels a little bit george is right this is more emotional than it is mathematical but it's heavy enough that you felt it right yeah exactly yeah so but you can you can do it and you're going to be glad you did it and i don't think they're out to get you i don't think there's any malice in this at all i think they just didn't do a good job of cutting the apron strings they used a machete instead of a scalpel right right yeah a blood instrument you know it's like they just didn't they just didn't give you good you know they should have said this six months ago dude you're moving out and you're taking all of your crap with you which includes the insurance and the soccer trophies okay you're you're out of here we want the bedroom i'm putting a pool table in there i mean they need to tell you what's up right and so um yeah you're making the car you're making the truck payments right on your own or are they doing that well they did for a while and then after um i would say a couple years ago basically i'm just paying them and they're they're kind of like paying for me um and i have like 3 500 left yeah so when you get moved and get settled if you've got 3 500 left pay the truck off that day yeah that's what i'm looking to do and they kind of know that i've been um binge watching your show and then i'm like kind of laid out my death snowball i do have some student loans yeah um so this is a 3 000 offset so you can use the truck and deliver uber at night or pizzas at night or you can pick up a job cutting grass on the weekends and you'll have an extra six thousand bucks in no time and it'll offset anything and then by the time april comes around you're gonna be okay you're gonna be in great shape you're gonna get the ten thousand dollar raise everything's rocking on you're gonna be just fine it's just it just it just was heavy enough and it was sudden enough that it caught you and so it's it's it's a you know 20 math problem 80 percent relational emotional problem yeah right and part of it is adulting adulting just sucks and when you're leaving your early 20s and you start going oh crap i have to pay for insurance no one told me how expensive this was yeah you start to just kind of feel like you got punched in the face a little bit uh so i think once you get on your feet and you get out on your own you've got a good income you clean up the debt yeah those payments are gone you're gonna have that income back in your life and you're gonna go okay i can breathe a little bit amy is on the line she's in atlanta hi amy welcome to the ramsey show hey mr dave how are you good what's up hey dave my son is 22 and he had he bought some land um before the market went up and now he's selling to land and he's going to end up with about 25 000 um where where should i help him to put that money we talked about what they call the um like kind account where he just holds it to move it into another real estate in case he buys some more real estate but i don't think right now he's going to do that because the real estate is so high right now yeah if he does a 1031 tax referral exchange which is what you're referring to is six months to select the real estate so if he's not going to buy a piece of real estate in six months he's just gonna cash this out and pay it's gonna the capital gains on it's only gonna be like three grand okay if he makes twenty thousand dollars he made twenty thousand dollars profit yeah does he own it a year no no no he made ten thousand dollars profit oh ten profit okay has he owned it a year um yeah okay that is fifteen hundred bucks fifteen percent on your profit yeah so just pay pay the tax don't worry about it and do something smart with that profit um he should he's 22 he's out there buying land he's already got this stuff on the run yeah and as long as he's debt free i don't know his financial situation but i want to make sure that he's following the baby steps and that he's doing things that are right for his financial future not getting into investing too early in the real estate business yep that's it that's how it works [Music] parents uh when you're going to cut them loose and you should uh gradual is good sudden is hard for them it's easy for you but it's hard for them this is the ramsay show [Music] [Music] [Music] [Applause] in the lobby of ramsey solutions on the debt-free stage jared and gabby are with us hey guys how are you good how are you welcome welcome where do you guys live omaha nebraska a bit of a hall to nashville oh my goodness well welcome good to have you and all the way here to do a debt-free scream how much have you paid off uh we paid off 94 000 in 28 months good for you and your range of income during that time is it a 110 to 138 cool what do y'all do for a living i'm a carpenter for a commercial construction company and i'm a technical recruiter ah very good very good cool well goodness gracious 94 028 months how long you two been married we've been married for a little over two years high school sweetheart so we've been together for over 10 years okay cool so even before marriage you guys started looking at this going we got to clean this up and then first order of business and marriage is finish up the debt snowball yep absolutely so tell us the story how did this all happen yeah so we were taking our pre-marriage counseling at our church and we were getting involved in a couple of different you know life groups and our pastor recommended financial peace university um we like knew the name but didn't really have anybody close to us that was following so we were like let's go ahead first we had a another couple that was getting married at the same time as us um go in with us so we dove right in there we go just like that yep so you kind of wander in not knowing what to expect yeah like so after the first lesson what was happening people were cutting out credit cards we were like okay what are we doing so what have we gotten into are they gonna where are they gonna hand out snakes what's up here yeah is it a cult what are we doing yeah [Laughter] so after the second lesson what were you doing cutting them up you too you too on board just like that we were on board assimilate to the cult it's easier that way yeah wow careful george come on all right george what kind of debt was this uh it was uh car loans student loans and credit cards how old are you two i am 27 27 all right wow so you're just kind of normal normal single people with car loans student loans and credit cards yep and uh enter pre-marriage counseling and then you uh get you you go in and go i don't know and they turn on the videos and you're going well these people just cut up all their credit and then the second time you cut up all your credit cards oh my gosh wow kind of a kind of a slam wasn't it yeah a little bit of a fire hose when you went up to a water fountain to get a drink yep absolutely yeah all right cool but but you did it i mean you stuck with it for 28 months pure huh we did it yeah we were at the beginning yeah i mean like this is crazy what are we doing the pandemic hit it kind of helped with i mean we couldn't do anything right like oh yeah our income was kind of affected i picked up a second job he was you know working side projects to get the get the thing done we wanted to come out of the pandemic and be able to travel you know we're thankful we're here we haven't taken a vacation since pandemic so oh wow thank you so much i'm afraid you and everybody else is on lower broad down there at the honky tonks oh my god i never saw so many people in my life this time this town is exploding two days of that was enough for us one day one minute of that is enough but yeah oh my gosh wow well congratulations you guys okay so you're 27 years old you've been married 22 months what advice do you have to somebody out there that's you two years ago three years ago and they go i don't know man this stuff is a weird sound today but everybody seems to be excited so what's the key to getting out of debt i think the key is just stick to your budget stay consistent yeah i mean it's going to be tough for sure you're going to have to you know decline going to dinner with friends and doing all these things but now looking back it's just like the financial freedom is important to us like we wanted to go into marriage you know work hard and when we start having a family was important to us before we have kids we want to get out of debt so that's kind of the goal wow yeah a lot of young couples that are your age are going well dave i don't want to miss out on life i'm in my 20s this is my prime you want me to make all these sacrifices but you guys are saying hey we're going to sacrifice for a short period of time 28 months so that we can live the next 20 30 40 with no payments exactly totally that's a huge paradigm shift was it worth it so worth it very worth it all right you're going to go back in debt never never she got the whole rest of your life yeah no debt that's a long time that's cool that's pretty cool because you're in your prime according to george according 27 well for you it's it's 60. yeah that's when you're at your best that's it yeah come on but these guys they're look young bright-eyed bushy-tailed they're ready to face the world and they don't have any payments to show for it they have a great income 27 years old yeah really this is pretty cool and more than anything else uh you've learned to work together right so tell me about the big fight what was the big fight they're looking at going each other us did we have one i don't yeah i don't think we had them there wasn't one huh nope oh sure you thought i knew something i didn't know something they're just nicer in nebraska they don't fight over there that's what it is they're midwesterners they're not hillbillies yeah i get it okay so day one you guys decided hey we're on the same page let's go do this thing so you really didn't have a big fight you never argued about it not really i mean we were really both kind of on the same page i mean we took the first class and we were just like sucked in and we were like we want to do this and i mean we would have little fights like you know my amazon packages and he's like knock it off and you know maybe those things but there we go it's front porch litter it's playing this is a problem yeah no problem knock it off oh my god i like that i can only hide them so many times when i work from home the brain catches them so wow guys and he's delivering it delivered to the backyard he needs a t-shirt he says knock it off prime yeah speaking of living in prime yeah all right i love it that's good i like that thank you for being real you guys are fun really proud of you who are your biggest cheerleaders uh i'd have to say each other and then who friends and family were super supportive um neither of our moms and dads were they good with money and they so this is like natural for you or this is like change this has changed like i think we both kind of just thought like you always live with debt you know you always have a car payment or you always have these things so i mean our family's been super supportive and we've been you know helping friends kind of get on board and you know we have people reach out to us once we announced that we paid off our debt they're like what the heck you know how did you do that and so it's kind of fun to just share and yeah get people on board yeah testify huh yeah i like it very good good for you guys well done well we're proud of you i can tell you that touchdown what a great young couple what a great way to start absolute heroes yeah people can take control of their own lives at any age or heroes very well done thank you very much we got a copy of the legacy journey for you because that is the next chapter in your story for sure you'll be baby steps millionaires before you know it and change your whole legacy and we're going to give you an extra copy of the total money makeover to give away to one of those friends that is saying what the heck yeah i want to know what this is do this right here don't do anything i'll do this right here that's it and financial peace university that's the thing very cool all right jared and gabby omaha nebraska 94 000 paid off in 28 months making 110 to 138 count it down let's hear a debt-free scream three two one we're debt-free well done well done well done i love it congratulations you guys great work great work all right you guys want to do that so here's the deal today is the last day of the 30 off special we've been running on a ramsey plus membership for a year now why does that matter well financial peace university is one of the many things you get in a ramsey plus membership it's like if you want to see tiger king you got to sign up for netflix right that's it's a you know you got it it's where it's where it is you know it's that's the deal so if you want to go through financial peace university do what they just did you do it at ramsey plus and that also includes the premium version of our world-class budgeting tool every dollar to help you put that plan into action take control of your money and it's 30 off a 12-month membership or if you don't really know what you want to do today that's okay you can even do a free trial if you want to do that you can do that so text trial to 33 789 and learn all about ramsey plus learn all about financial future university do what they just did text trial two three three seven eight nine this is the ramsay show [Music] [Music] [Music] [Music] so george campbell ramsey personality is my co-host today he is the host of the podcast that had millions of listeners called borrowed future and then we launched a new one that is at even better success it's going crazy called the fine print and uh well you know the old saying you need to read the fine print well george is helping you where different industries are pretty much putting the screws to you and uh we're you are exposing that that's the goal i mean a lot of hidden truths out there keeping people broke and you get calls about this stuff all the time people go dave i didn't know no one told me that i was going to get screwed on this and so every other week we're covering new topics we just released one yesterday on buy now pay later remember the old school installment plans well now it's all real modern and right below the add to cart button there's they've got this thing that says hey what if you paid a fourth of that today yeah and pay the rest later and the firm just struck up a partnership with amazon no and so that 1.7 trillion dollar company is about to be a gazillion dollar company thanks to a firm because guess what when you see the payment is actually a quarter of what it would have been in the cart you go oh i can add some more i can add something you add it all up it's pretty much like rent to own yeah what's what's the effective interest rate on that crap they've all got different ones different interests different fees uh a firm's got simple interest so that's what they're they're real proud of that they don't have compounding interest and it can be from zero to 30 percent i'm betting closer to 30. yeah so you can get absolutely pretty simple people you can't pay for it don't buy it i won't affirm you using this yeah so we we talked to uh nathan hamilton from the ascend who did a survey on this 1800 people we talked to someone who spent ten thousand dollars on buy now pay later this girl peyton who uh went into a lot of debt for lulu lemon she's a big lululemon fan and of course we talked to rachel two thousand dollars worth of lululemon for clothes 2200 of her uh thirty two hundred jesus went to debt unbelievable yeah so we're talking to people who got screwed we're talking to experts like rachel cruz who really help us unpack why these services are not in your best interest these companies are not your friend and you should not use it we want you to pay cash we want you to buy things so let's afford 10 episodes of the fine print how many have come out as of today we've got uh this is the fourth one fourth one that came out today okay so season one is ten episodes all kinds of different subjects but all about areas where you are getting uh messed over and pretty much explains it all to you in detail alana is with us in chicago hi alana how are you hey i'm good how are you better than i deserve what's up so i just graduated college in may and i worked multiple jobs throughout college so i'm actually in a position where i can pay off all of my student loans but i'm just kind of stuck because the loans are in deferment through january so i would like to get into investing but obviously that's borrowed money that's allocated for my loans but i'm just kind of curious what you think i should do in the meantime between now and january um while i have this money so you're saying you have the money in cash to pay off all of your student loans today yeah well that's a great place to be uh i like that a lot and you're saying should i hold off in order to start investing well i'm wondering if i should put if i don't know if it's smart to put a portion of that while i have cash into investing or pay off my debt and then you know then consider investing yeah well we teach the baby steps and this is the plan that works and a lot of people want to do them out of order and i think you're wanting to make the right decision here with your money and i know january's going to come and you're like should i just wait and pay it off then but here's the thing if you follow the baby steps we teach that you pay off all of your debt in baby step 2 using the debt snowball and is this all your all your debt just the student loans okay so you could be done with baby step two today uh which then you'd move on to baby step three building your your fully funded emergency fund which i like as you head out into your adult life now that you've graduated and so i want you to pay off that debt as soon as possible and if you have the cash to do that today well you're going to have plenty of time to invest you just graduated you're going to be a multi-millionaire if you follow these steps so i'm not as worried about investing as i am about this debt that's hanging over your life right now and i don't want you to wait on the government i don't want you to wait on anyone when you can take control and you have the cash in your bank today alana how old are you 22. excellent what's your degree in uh packaging science say again packaging science wow packaging science did i hear that right fascinating okay so have you got have you landed a job yeah i started in june so i've been working for a few months now great what do you make uh 70. well done amazing job that's a great job coming out of 22. you really got a really good start okay here's the trick inside of every one of us it is human nature to want a shortcut with money you need to fight that beast that says you can do a shortcut there is no good shortcuts with money it's common sense it's a slog it's a grind and you become wealthy if you try to do shortcuts you get setbacks shortcuts equal setbacks and that that beast that looks for shortcuts that's the one that's asking the question down inside of you and that's just normal you're not doing anything wrong okay it's just normal to ask that question is there something some way i should try to move these shells and hide the p but no matter how many times you move those shells that stinking student loan is still laying there unless you just write a check and pay it off you got it so the cleanliness the cleanliness of your life the risk lowered you make 70 000 you don't have a debt in the world now you can really be a rock star investor you can really start filling up that 401k that roth ira starts saving for a house start doing some other stuff because you've got no black cloud hanging over your head so here's the instruction listen carefully pay the student loan off today before the close of business when you hang up the phone pay off the student loan okay absolutely can i ask the follow-up question you can is it wise to then after that's paid off to max out my retirement uh i would put it at 15 of your income and then i would start saving for a house above that and make sure you have an emergency fund of three to six months of expenses you're gonna have some money left over after you pay off the student loan yeah okay how much uh about five grand good okay before you start your retirement let's build that up to a full rainy day fund three to six months of expenses so probably want that to be about 15 grand so if you have 15 000 cash that you never touch for anything except big time emergencies and you have no debt you are in the driver's seat to rock and roll then you start putting 15 of your income into retirement and i'm thinking you're probably a millionaire by 35. that's if you do this okay that's where i think you're headed so you hold on i want to help you do it because i want to hear your story when you're 35 i'm still going to be here doing this so um i'm going to send you a copy of the book the total money makeover and show you exactly what george is talking about those baby steps things and exactly how to do them and exactly why to do them and uh because i think you're actually going to do this it sounds like in your voice you're actually going to do it sometimes we give people advice they're like yeah yeah yeah yeah and we can tell they're not going to do it so but you you're actually going to go do this and then if you follow all the way through you really are gonna be a millionaire you really are because if you're making 70 at 22 you're gonna be making 150 at 27. this is where you're headed because people that think as clearly as you think that's what they do you've done a very good job setting your life up i'm so proud of you hold on kelly i'll pick up and we're going to give you a copy of the total money makeover there's hope george there's 22 year olds out there like her there is hope for our future america i love it i'm just shocked they're everywhere and she has the money we get to talk to them all the time they're everywhere god if we just have people that's smart in congress i mean what would we do if you just have people you have to be like 80 and they could take construction like yeah because there's nobody in congress can take instruction you never got a call from a congressman or woman yet i'd pay good money to hear that call we'll make it happen before you would like if they were trying to get me to endorse them but that was all oh jeez keep dreaming she's awesome what a great young lady inspiring uh man i'm telling you i get to talk these 20-somethings all the time like this gives me a lot of hope no wonder you've got a positive outlook that's it that's it man this is the ramsey show [Music] dave here we just launched a brand new listener survey we want to know what you think about the show you'll be entered to win a 100 amazon gift card no purchase necessary take the survey ramsey solutions dot com survey or text survey to 33 789 [Music] this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host thank you for joining us america we're so glad you're here open phones at triple eight eight two five five two two five george campbell ramsey personality is my co-host today as we talk to you about your life and your money triple eight eight two five five two two five mary is in sunnyvale sunnyvale california hi mary how are you oh very good mr ramsey how are you better than i deserve what's up in your world well i found your book at the local library in july of this year and you know i read it including rachel's book and all that but now i'm having like paralysis by analysis so i don't have any consumer loan i don't have car loans but i have a mortgage loan again and that's because i paid off cash for my house in 2011 but then in 2016 i refinanced it to buy a rental unit and then in 2018 and i saw another opportunity so i used my heloc plus my savings to buy another rental last year i got laid off and so because of low interest rate i refi to lower the and combine my um to lower my mortgage and then my key lock so i got the 1.99 interest but i didn't know it then i didn't know that you know i should just pay off the house and all that but now that i i got laid off the recruiter of the hospital called me back and offering a sweet deal so i don't know to pay off my mortgage should i just sell some on my investment or should i go back to work and pay it off and then retire because i considered retiring this year i mean last year i haven't been working since last year how old are you uh 58 i just spent 58. huh what are you you're a nurse yes sir okay is the duty hard yeah if i go back to work i'm gonna work my shift full time 12 hours each shift why why work night shift i know because that's the only offer they have but the hospital i'll guarantee you there's other offers for nurses in california yeah but because uh if i work for the same company i will retain my seniority of over 25 years and investing it didn't forget you much it got you the night shift yeah your seniority sucks well um you you know i get i will get i will have the first choice of vacations and all that and then the shift that i will i mean not the shift but like the days i want to work but this is this is my dilemma yeah i don't have a dilemma you're 58 you have the money not to not work i'm not working the night shift that sounds strenuous to me so tell them if they want you you'll take the day shift with your seniority there's none or if i want to do that i have to work night shift first for six months and now you're done opening no you don't that's all it's not a law i know it's the offer to make a counteroffer tell them they're stupid i'm not coming to work over there unless you work me during the day because that's with my own well we have the cna contract and that gifts are correct so what do i do i mean i can i qualify for pension but i haven't collected it because once i collect this then i can only work one day a month or i can start collecting so when i you know when my goal now is to pay off so what do you make if you what do you make if you go back well they will give me a sign on bonus of thirty thousand dollars and then i'm gonna make a hundred dollars an hour and what does day shift pay well there's no position for these shifts it's only four nights back to where we started yeah you're you just don't listen okay i've told you six times there's a day position over there you just not you just accept what they tell you don't accept what they tell you the rule on the ramsey show is we break the rules okay so you you that listen do you understand what you're saying they're willing to pay you a hundred dollars an hour and a thirty thousand dollar signing bonus but you can't get the day shift i'm calling bull crap on that six months of night shifters okay that you listen you do whatever you wanna do hun okay that's the deal that's there's no possible way i'm working night shift and if you don't understand that you are in a cat bird seat negotiating position here go over there and smack them between the eyes and get the day shift and 100 an hour and a 40 000 signing bonus they need nurses you are in the driver's seat okay quit acting like all these dadgum rules apply they don't apply or go to work somewhere else and let them pay you 30 000 bucks for a day shift but don't you don't have to go back to the night shift make it at 58 years old when you have the opportunity to not work anymore i think you go back to work but i think you go back to work in a good reasonable situation and by definition night shift is not that for me if i'm 58. yeah i think she needs to advocate for herself and she needs to do some research look around to other companies because i don't care about the seniority if it means your life sucks yeah so i mean darwin they're putting like all these things on the table that says they desperately need you and i'm trying to explain to you that you have the power to overcome some of what you perceive to be the rules i don't perceive them to be the rules and other if you don't go to work at that hospital again doesn't matter to me go to work at a doctor's office i don't care but get you know if you can get 100 bucks overnight you can get 75 during the day and a signing bonus and you probably can get 100 during the day right now the you know we are in california here this is a desperate situation and um you know you are uh you are the hero signing up here oh my gosh but no i'm not gonna work six months overnight because that's what the recruiter said you're making more than the freaking recruiter okay so keep in mind who's in charge here you all right logan is with us in milwaukee hey logan what's up hey um i am curious on if it's crazy for me to consider getting uh or buying another property when i still have a mortgage on my first house yes okay short and sweet [Laughter] yeah i you you called the uh we believe the shortest distance between where you are and wealth is no debt show right and with that it's just a long name and so yeah it's called the other short version is called the ramsey show but the yeah the uh uh and so we're always going to say clean up the debt and then use the cash flow from your life and from the cleaned up rental property with no debt on it to buy the next one and the next one the next one i admit that that is frustrating to start that way i can promise you when you get to where i am i own close to 200 million in real estate all paid for it leaves you in a different position than my friend uh you'll be glad you did it this way when the pandemic hits and a bunch of your tenants can't pay their rent yeah and you don't have any payments put you in a whole different world you can be merciful you can not go broke you can do a lot of stuff this is the ramsey show [Music] so [Music] [Music] life is full of firsts [Music] as the first and longest serving christian health cost sharing ministry chm has shared medical expenses for its members since 1981. we believe you should have the freedom to focus on your health while being supported by a community of believers giving you the opportunity to create many more firsts so [Music] [Applause] [Music] [Applause] [Music] [Applause] george campbell ramsey personality is my co-host today we value the input of our listeners here on the ramsey show it helps us know what's important to you so we can deliver the right content that will help you with the questions and challenges that you have right now one way you can share your thoughts with us is by answering a few questions in a new survey that we just launched you can check it out at ramseysolutions.com survey takes only a few minutes and there's a hundred dollar amazon gift card that will be drawn from the people who take the survey it's up for grabs thanks for your time text survey to 33 789 or visit ramseysolutions.com survey text survey to 33789 you can take a survey about this show and tell us what's going on with it our question of the day comes from blinds.com a great american company find out for yourself why blinds.com is the number one online retailer of custom window coverings with free samples free shipping and the new promos they run all the time you save even more use the promo code ramsay to get the best deal today's question comes from diane in arizona my husband and i are in baby step two and are working hard to pay off our debt the one issue we struggle with is not using credit cards we use them to pay our utilities groceries and other monthly bills but we never carry a balance by doing this we're able to travel for vacations for free using our points what's wrong with doing this if we're not going into more debt the age-old question dave the age-old question we've been exploring this topic on the fine print because it's one of the biggest objections we get uh here at ramsey are people going well dave i pay off my card every month i get some free stuff what's the harm right so we should clue in bank of america and chase what portion of their marketing is working the best and it is this crap the vacations the points this is the one this is the one that's got people believing in stupidity still after all this time yep and here's what happens and you can listen to the the true cost of credit card rewards this is the second fine print episode that we released and we dug into this with an ex capital one insider okay what did they say uh she said they run 10 000 experiments a year on people to figure out what's going to get them to spend more to use the points and one of the biggest ways they do it is through the points because you know how the points work they don't say it's 500 they say you're going to get 128 000 points that you can use to redeem flights that cost 74 000 and the points change every day and there's blackout dates and there's restrictions and on top of that uh the whole two percent cash back that one is one of my favorites because you know what two percent of a thousand dollars is twenty dolla 20 bucks to spend a thousand and uh that's not a great deal so let me let me get this straight if you spend ten thousand dollars you get 200 bucks ding ding ding that'll make you rich yeah spend ten thousand get two hundred that's a formula for wealth building right there we did an analogy did you people go to grade school listen diane here's the thing we did this analogy in the in the podcast about chuck e cheese because this would have reminded me of dave you go to chuck e cheese oh my god god gives you a ten dollar bill and you get these coins claw on toy story yes so you get your coins and you're so excited to spend those coins that you spent ten dollars on and you go and you get all the tickets and you get 400 tickets and you go to the table at the end of the day and you go wow i can get any prize and they go nope you get sticky hands and a pack of gum and you go wow i spent ten dollars for sticky hands and a pack of gum that cost a quarter yeah and i got screwed yeah i think so uh here's the thing i don't have big buildings dave uh the credit card companies do they're sponsoring every stadium in america and they're doing it with billions of dollars that they're making off of the backs of these people who are overwhelming you yes yeah so here's the thing um to start with you're not going on vacation for free that is an absolute asinine stupid statement it is not true you might have got your airline ticket for free but everything else on the vacation was not free so you're spending money and you're going on vacation when you should have been working because you're in debt you're not supposed to be going on vacation when you're in debt we follow everything you say no you don't you don't go on vacation when you're in debt and you don't go out to eat when you're in debt you you work and you work and you work and you clean your dad gum dead up and that is that that's the ramsey plan now you can say you can you can go do your plan if you want but don't say you're doing my plan when you're going on vacation because it's just not true and here's the thing the arrogance that is required the intellectual arrogance that is required for you to think that you are taking on billion-dollar companies who have algorithms that know what bottled water you drink and you are somehow beating them and you're you're you're fleecing them you're getting an airline ticket and it doesn't cost you anything you really are pretty arrogant to think that you're actually winning at this game i mean honestly do you understand that when when citibank when you call them your zip code is pulled off your nsx code and the person answering the call if it's a friendly call is a person of the same accent as you if you call from the south you'll get a syrupy southern bell accent and if you call from the wicked northeast you'll get a wicked northeastern accent you're gonna these people screw with you on levels you have no idea and you think you're beating them yeah absolutely incredible so here's the thing we did study we did a study of millionaires we studied 10 000 of them 10 167. not a single one told us we became millionaires with our free vacation points because we ran all our utilities our groceries and everything else through a credit card and then we went on vacation for free and it didn't cost us anything and that's how we built our wealth not one said that isn't that odd diane so here's the thing people that ask this question are people that think they're beating the system let me tell you how you beat the system you don't play don't play in the system yep you know what it's like it's like being a mouse in the maze and you get to the cheese and you think i won i got the cheese and you zoom out and you go no i'm just a part of a giant social experiment that exists to take my money that's what it is so you can play that game and that's fine you can get your vacations but i'm not in the in the business of trying to gain points i'm trying to gain wealth i want to complete the baby steps i want to pay off my house i want to give outrageously and that doesn't happen by paying off my card every month and reaping the benefits of two percent cash back you know the chuck e cheese thing's funny as crap oh it's great the team did a great job with the edits we got the coin sound you gotta go with them out of their ski ball or whatever they're just coming out there like crazy you've got this long line of tickets and your little kid they think they're getting the big prize and you get you never get the big price nothing it's you got you spent 10 to 20 bucks to get a prize that cost less than 50 cents and the same thing's happening when you go to book these flights and you go well we can go to boise yeah i don't think uh martinique was on the list was it no you're not going to the bahamas first class i'm sorry so belize and bermuda are not on the list no no so san diego's nonetheless nashville's not on the list no it's blackout blackout dates blackout mean they don't go don't oh no they just won't take you that's what it means i i think you can do a lot better by using a debit card and using cash and saving up for your own dang vacations yeah you know where i go on vacation anywhere you want there you go that's how that works and you know when i use those credit cards that that always works so that's how it happens i haven't had a credit card and my gosh it's george it's coming up on 30 years wow we should have a party we should we can't use points to pay for the party though in belize in police i'm in how about cabo let's go to cabo i'm in we're heading there man i'm telling you i love it great question diane uh but a heart a hard answer yeah well because it's passive aggressive so you need a wrong answer i mean yeah what's wrong with doing this because we're not going into any more debt yes you are you're going into debt because you're not paying off the debt that you have because you're spending money that you don't have to do crap you shouldn't do there's a just there it is it's a simple thing but it's your life darling you get to do what you want to do the problem is you ask our opinion and we are an expert on our opinion and we've led more people out of debt and into wealth than any other brand in america today but you do what you want to do kiddo this you be you this is the ramsay show [Applause] [Music] [Music] [Music] george camel ramsey personality is my co-host today augustine is with us he's in uh coeur d'alene idaho hi augustine how are you good how are you better than i deserve what's up so i'm 21 and i bought a house this january before i turned 21 because i really wanted to like that was my goal in high school and uh so i did it but now work has been really up and down and so every once in a while like i'll have a trouble making the payments so i want to make extra cash rather than just working but the house has made about a hundred thousand dollars in equity in the last seven months so my question is should i sell it and have more to put down on a regular down payment like a bigger down payment on a different house or like use it as an airbnb style or something else like that [Music] what do you do for a living i work on elevators what's your extra job um i my second i was working at a um at a marina for a second job when it was slow now works then works picking back up so i'm i'm making i make 38 an hour right now at the elevator job which is like it's a good job but it's just kind of sketchy so i was just curious [Music] what do you mean by sketchy as far as yeah it's volatile it says it's considered construction work it goes up and down with the amount of work that we're able to pull in so when work is good like when we have a lot of um big jobs or whatnot work is great and i can't complain and payments are super easy and i have no struggles but when it's slow like when like we finish a big job and it's like slow for a month or so and it's like okay well now what now i really it comes i think comes down to a budgeting question but i think it comes down to a career question because you're never going to be able to establish a life with a income that is not that is not steady enough that you can you know make enough money during the year to eat right sure because here's the thing if it doesn't matter if you have some down if you have some months that the income disappears uh as long as you have enough months that it doesn't and the overall average for the year is still an excellent income i mean if you make 500 000 a year you don't but if you make 500 000 a year and you have two months with no income it's not a big deal right right so the point is you're not making any money it's not just the volatility it's the overall income is not enough to support you they're not working you enough to where at the end of the year when you add it up you had a good job that's what i'm saying so i think you got a career problem i think you got a house problem you may need to sell your house to step into your next career or you may need to look for a different place to apply your trade um because you you know 38 bucks an hour is pretty sweet income uh but not if you're not getting it right so because i mean if you're 31 you don't need to be making the same phone call with the same income problem agreed agreed agreed so that you got to solve the career problem and then that'll tell you what to do with the house no you don't do airbnb you either get this career thing solved and keep the house or you sell the house put the money in the bank until you get the career thing solved one of those two things but the last thing you need some other goob living in your house you know you're trying to pay payments and maybe they don't show up because of covid and you know maybe idaho decides to lose its dad gum mine like some of these other places and now you're just shut down and you don't need all this risk man you're 21 you got 100 000 bucks on the table take your money and run sit over there in an apartment and get yourself solved or get yourself solved and keep the house one of the twos what i would do yeah we need some stability here and a financial foundation i don't know if you have any debt but if you do sell the house i want you to make sure you're following the baby steps you clean up the debt you have an emergency fund that way when you get into a house again you're not gonna be having this problem where you're having anxiety about being able to afford the payment in case something goes bad in case you know you can't find some work but i do think you need to find a career that's stable with a steady paycheck right now at your age yeah it is a bit um i had trouble not laughing his income goes up and down in the elevator business okay i'm just saying i missed that that was way over my head i'm just i just yeah that was straight yeah that's no that's clever yeah that's well it is what happened i mean that's the business it goes up that's a papa dave joke right there oh okay eric is in washington dc hey eric what's up hey dave i'm still laughing from that last call he enjoyed it okay good we got another one all right good how can we help i am uh so i'm calling because i want your career advice i'm sort of at an impasse right now i currently work a salaried position and i was offered recently a 100 commission job okay what do you make of the salary i make 80 000 what do you do i am a real estate evaluation consultant at a large firm so you're doing it you're doing internal appraisals for their purchases uh so i work with internal and external clients and it's valuation work for different commercial real estate assets but some of it is appraisals okay all right so some of it's for depreciation schedules and so forth yep that's correct gotcha okay we use some of those firms here okay cool uh 80 grand how old are you i'm and your strike commission gig is what this would be in the real estate industry as well would be for financial brokerage for commercial real estate financial brokerage right so i would connect borrowers and lenders for these large commercial assets okay and that's what the income would come from is those those success fees so a commercial originator of sorts okay um you probably have pretty good knowledge of that business why what what what is uh what do you think your income would be have you talked to other people doing it that are have you know have you got some kind of trend line on this thing yeah i mean i've interviewed people in the industry and it's really just a success or failure sort of thing it's like the matthew effect either you get it all or you don't get anything so it's pretty risky in my opinion and that's sort of why i'm calling up i don't have any debt i have you know some savings in the bank but i don't want to just give that away for this risk um but you know it's all dependent on the individual well and the market can shift on you and mess you up too so um you know hey i mean what would you think you know i mean i i don't know how to project this is this a two hundred thousand dollar thing is this a hundred thousand dollar thing what are you thinking you know there have been guys that they make two deals a year and they make a quarter of a million dollars but then others struggle to you know live off of ten deals yeah i'm lucky that i can live off of you know 50 grand obviously way more than that in my you know i don't know any kids relatively young but becoming a new i don't have any connections which is what the name of the game is and that's where you're going to make the big bucks so starting out i would probably struggle what's an is there an interim step a middle step or you don't have to jump all the way in the deep end of the pool no i'm well that's yeah i know that's that's why it's a difficult decision for me there's no there's no salaried you know no i'm not talking about salary i'm talking about is there an apprenticeship or is there could you go sell commercial real estate for a while and build the connections so i would currently i would work under two directors and so i would get their mentorship so i would not be there you know just you know by myself in the deep end i would have connections guiding me and they might throw you some of the crumbs off their table exactly okay i guess i'd add up the crumbs and see what they look like and can i make it on that for a year or two and give this a good hard try it sounds like a wonderful adventure the the upside is that there's a tremendous income potential the downside is is the slice of the market that you're operating in is really thin the number of human beings and the number of actual deals that will need you is a small number compared to say things where there are large numbers like residential real estate you do bazillion houses right this is a small number of humans ever do a transaction or even witness a transaction like you're doing um but when you hit one i mean you're whale hunting you're elephant hunting you're not rabbit hunting there's you know when you go elephant hunting there's just a few of them but they're really big and rabbits they're everywhere you know and so that that's kind of what you're looking at i don't know what to tell you it sounds kind of interesting except it just bothers me that the slice is so thin yeah he's young if he has the risk tolerance it's an adventure just have a big old savings account he does have the risk tolerance from hearing his voice this is the ramsey show [Music] [Music] [Music] our scripture today proverbs 12 25 anxiety weighs down the heart but a kind word cheers it up maya angelou said if you must look back do so forgivingly if you must look forward do so prayerfully however the wisest thing you can do is be present in the present gratefully go maya some classics all right kelsey is with us in baltimore maryland kelsey how can george campbell and i help hi guys i'm so excited to be talking to you you too um so i have a question about whole life insurance um my parents got a policy for me when i was in the crib and um passed this policy on to me a few years ago we used we took a loan out from it to put down on the house and you know just kind of knowing we never had to pay it back and just knowing that i didn't really care about this policy it's very small we have other life insurance that's not whole um i'm not sure what to do on you know to keep it active i pay about 800 900 a year um and literally cancelling what about the tax implications don't worry about that at all there aren't any oh here's why okay your tax basis in a whole life policy is the total of the premiums paid in there is no possible way that you took out of this policy more than your parents has paid in yeah they're just they're just horrible it's it's a black hole for money especially kid whole life policies your parents meant well they were really sweet and the net result was they were able to help you with the down payment on a house had they actually invested in the mutual fund with the same amount of money they put in this policy they could have just bought you a house but that's a side issue that's open that's water under the bridge now so that's how bad these things are mathematically so but anyway yeah you don't keep it around no it's not a pet and we can honor their intent and their heart without uh you know continuing to throw money off the bridge every day every month every year right so yeah i would just if you don't need the life insurance i just cancel it um if the basis does come in and they will send it to you because they'll threaten you with this it's their way of getting you to not cancel it apparently that's already happened that's where you got this information the agent says oh no you're going to get taxed and you're like yeah it's four dollars you know but uh instead of 800 this year so i i can i i'm going to give you a 95 probability that there's no taxes on it at all on the five percent chance that there is there your taxes will be less than your premium this year okay so i mean at the end of the day when you get get it all done it's not gonna you're cause you're again your basis is the total of the premiums paid in and only if you receive more than that including the loaned amount okay because the loan is is paid off as a part of the uh the cancellation and if there's anything above the loan that comes to you those two things if that is larger than the total of the premiums only then will there be taxes and it almost never is because these things really suck so bad right okay great thank you so much steve thank you for the call appreciate you joining us you know so that is like a product from the 1940s and 1950s it's like a uh it's like an alligator it's a dinosaur that has survived into the modern era how do they do that marketing it's a dinosaur because when you sell it people buy it whatever it is if you sell it enough aggressively enough people buy it um i mean gerber the baby food company still sells whole life policies wow to people when they get a baby so that they can go to college well let me tell you where you're going to college nowhere not with that you're not getting in anywhere with that policy yeah okay because you're going to make 14 when it's all over you're getting screwed no listen if you buy your financial products from a baby food company it might be an issue wrong okay if your baby food says american funds on the outside of it you might have the wrong baby food come on don't eat it stay in your lane people stay in your lane and you talk about why this is a bad product it's trying to do two things at once it's trying to be insurance and an investment and you're saying hey there's way better always only one and you're always paying for both yep that's the problem so we recommend uh term life insurance level term life 15 to 20-year policy to where you're self-insured when that policy runs out and that's the production of the price that's for adults yeah and if you want to save money for your kids save money for your kids but there's no need for a mutual fund a life insurance policy you know life insurance policy on a kid because if they pass away you didn't lose their income now if they get a two million dollar uh ad campaign contract with huggies because they have a cute butt that's great then sign up a life insurance policy because now you have an income there for this cute butt yeah and you've got to take you know you got to protect that but that's 99 of the children do not make a income that's worth insuring okay so you know this is just and so it's being used as a savings vehicle for college and that's a freaking joke so what happened was her parents paid into it their whole her whole life 20 years and she got five or 10 grand out of it it's the sun cost fallacy i got to keep this thing alive because we've been keeping it alive forever yep it's the sacred cow we've always done it this way and this is why we will always continue to do it this way we have no other reasoning that's it the batteries it's a sacred cow rule yeah brian's with us brian is in columbus georgia hi brian how are you good well dave how are you better than i deserve what's up so my wife and i are both active duty arby we've been in the army for about eight years we both plan on serving and retiring after 20 years my question is about the best way to save and be to be financially independent at 42 obviously we'll we'll still do something but you know after working as hard as we have over the last eight years or so we like to be able to you know volunteer take care of the family uh do whatever so without being able to have access to traditional retirement savings venues curious if you have any thoughts on that well you have a roth ira is available to you and you have the tsp available to you so we're currently saving in in both of those uh but i just didn't want to incur oh yeah yeah oh i see what you're saying you need some bridge money you need some other money outside of that okay yeah exactly so thank you for your service by the way so you got 12 years to roll and get ready yep how much is in your tsp and roths now so right now we have about 150 between our roth iras and roth tsps okay you'll be at about 600 with that plus whatever you put in so we we make about 150 after tax right now we also have about 120 in non-retirement investment accounts um some of that we have set aside the you know by buying you buy a new car in like two years um and when miles give out yeah you're still gonna have a million to a million and a half at your current rate uh plus whatever you put in so you're you're in really good shape um if you're invested in in you know market rates of return in good mutual funds that's where you'll roll on that so um yeah i think i think you got to look at some low turnover mutual funds they're called get with one of our smart vester pros and just set up a whole side thing that says okay i need this amount of money and let's say you build 600k in there and uh 500k in there and you won't pull 10 off of it that's going to give you 50k plus your double military retirement you ought to be fine okay and on top of that you're gonna have another million dollars but that's all trapped until 59 and a half and on top of that you're only freaking 42 and you probably do need to go do something and make some money just for just for fun how would you uh how would you oh absolutely how would you allocate i guess before saying saving 15 um a year would you shift the um i think you have a more aggressive plan than a 15 plan number one i want you to get the house paid for but aside from that you may want to put as soon as you get the house paid for you can go more than 15 and i'm going to go i'm going to go pretty heavy over into that bridge because you're going to have i mean you're rocking it you're doing a great job i'm gonna head over into that bridge a low turnover mutual fund is a mutual fund that doesn't have what about five percent or less of the taxes uh are due on the gains because they're not selling the stocks inside the mutual fund so that's what you're looking for low turnover ratio mutual fund it'll keep the taxes off of you until you actually use the money like a capital gains rate it's a it's a really good strategy for what you're trying to do [Music] george campbell good job thank you ben and kelly be back 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 dave here we just launched a brand new listener survey we want to know what you think about the show you'll be entered to win a 100 amazon gift card no purchase necessary take the survey at ramseysolutions.com survey or text survey to 33 789 [Music] you

Channel: The Ramsey Show - Full Episodes

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Id: zvgPmP1sZbg

Length: 121min 10sec (7270 seconds)

Published: Tue Aug 31 2021