[Music] sacrifice determination you can be intentional about your character but you gotta be on the same page today we're calling to let you know we're debt-free house and everything you have done really really really good and you're not gonna quit it's been a huge witness for us to be able to share that it was time to get serious intentionality people this is your show America I know it 22 what I know now our lives would be better is the show that's changing the world now you don't listen to the show you live from the headquarters of Ramsey solutions it's the Dave Ramsey show where that is dumb cash is king and the paid off home mortgage has taken the place of the BMW has the status symbol of choice well Happy New Year America it's good to be back on the microphone we've been vacationing around the holidays here and excited to be back with you guys today our organization is quite abuzz today all 806 of us we are running around in circles like crazy over here because today is book launch day for Chris Hogan's new book every day millionaires that's right how ordinary people built extraordinary wealth and how you can - if you haven't heard the story our Ramsey solutions in Chris Hogan he's one of our Ramsey personalities came together we had an outside research firm we completed the largest study of millionaires ever done in North America over 10,000 of them about half of them were people who knew of me and knew of this show and knew of the things we teach about half I've never heard of me and oddly enough the statistical differences in those two groups was almost zero so we thought there might be some differences but there weren't basically the people that knew me we're doing the same stuff that the people didn't know me we're doing to become millionaires because it is now believed in America that you can to get ahead by some of you that you're stuck and the only way to get it only way become wealthy is to inherit it and there are people that say that every single day and well the largest study ever done airtight research of millionaires says that you're wrong you're wrong you're wrong seventy-nine percent of millionaires that we studied receive zero inheritance five percent received less than $100,000 and most of the people that receive an inheritance beyond that received it after they were already millionaires so at least 84 percent somewhere probably closer to 90 percent of millionaires did not become millionaires because of inherited money that is simply a lie we have the largest study ever done with airtight research it's simply a lie well you have to be people of privilege know every color every background every sex every region had about the same incidence of millionaires about the same not exactly but about the same well you have to go to a prestigious school that's how you become successful not according to this study if you line up ten millionaires seven of them went to public colleges state colleges one of them went to a community college one of them didn't go to college and one of them went to a prestigious school so the data says a prestigious school does not cause you to be successful it must be other things financially successful anyway if you want to be a millionaire a millionaire is someone with a million dollar net worth and so Ivy League schools is not it inheriting it is not it so what is it eighty percent of the millionaires see these statistics are all 80 and 90 percent numbers you don't find statistical analysis and research that is like that most the time it's fifty seven percent and we call it well over half you know this is eighty freakin percent of these millionaires use their 401 K and they paid off their home in an average of ten point two years and so we find someone with a million-two net worth with a 500 thousand hour paid for house and seven hundred thousand dollars in their 401k and there may even be in there how they do that they invested over time well stock market rates of return have made them rich you can say what you want about the stock market you can say what you say want to say about mutual funds you can say what you want to say about the fees in the 401 K and you can go on and on and on and on about your freaking theories but they're your theories our mythology in actual fact the people that become millionaires the first stage of wealth the first million to five million dollars of net worth comes from investing in their 401k and good growth stock mutual funds over 15 to 20 years plus and paying off their home in ten point two years oh and by the way they don't use any debt they hate that haven't carried consumer debt in an average of twenty years no car payments no credit card debt they don't carry debt they might have had a little bit early in their misspent youth but they got rid of it and they figured out that debt was a robber so it sounds a lot like the stuff we've been teaching Patrick who's a millionaire says I don't invest in single stocks my investing has been in 401 k's Roth IRAs and mutual funds and index funds Joe or Jose says he's a millionaire says I Drive a ten-year-old Mazda cx-9 there's almost 200 or thousand miles on it of all the cars we purchased in the past ten years all have been used cars and we purchase them in cash rich says who's a millionaire I didn't attend an Ivy League school as far as I got was two years in Community College and I owe a lot of that to my folks they instilled in me to save save save I don't know money to anyone and I think the biggest part is having a plan sticking the plan budgeting and smart investing here's the thing 97% of a millionaires we interview that's all of them okay 97% that's all of them when asked the question are you in control of your own destiny said yes 54% of the general public said yes so if you are one of those people who believes you're not in control of your destiny the data points tell us that you're probably not going to be in control of your destiny you're probably not going to be in everyday millionaire that's what the data tells us belief and acting on the belief that it can be done and you have to take the hard steps to cause it to happen then I'm not going to get a good crop of corn if I don't plant some freaking corn that you're gonna reap what you sow we live in a cause-and-effect world that the American dream isn't that the belief of these things or what caused you to be an everyday millionaire that's what Chris Hogan concluded in this book you want to read all the statistics the book is on sale now we predict that this time next week we will be announcing eight number one bestseller interesting question we've sold so many of them in presale it's unbelievable so he's in New York today he just finished up at Fox and Friends we'll talk to him after the break and then we'll get to some of your calls but this is important information the you know the my friend Tom Stanley did the book millionaire next door 25 years ago and came to a lot of the same conclusions they only studied 750 people and one of the big arguments by the detractors was was that the sample size wasn't large enough now those of you that know something about statistics know that Tom's sample size was large enough for it to be conclusive but if you don't know anything about statistics meaning you never took one of those classes then you don't know that so just in case as a PR maneuver we thought we want to do 10x what Tom did 25 years ago we need at least 7,500 well we didn't stop we took it all the way to ten thousand millionaires that we studied and the conclusions are in the book every day millionaires how ordinary people built extraordinary wealth and how you can too my number one best-selling author Chris Hogan you'll be with us after the break this is the Dave Ramsey show [Music] [Applause] [Applause] hey guys I'm Rachel Cruz I remember going to speak at a university once and a student came up to me and said you know I'm completely debt free and I remember thinking that's incredible you're like a unicorn you don't exist what your student who doesn't have student loans so I asked him so how did you do it thinking he would say oh I got scholarships or I worked or my parents helped me but he looked at me and said oh no no I have $26,000 the student loans but I'm debt-free and I hear that all the time because if it's not student loans its oh yeah I don't have debt but I do have a $500 car payments or I am debt free but there's $15,000 balance on my credit cards because this is the truth debt is owing anything to anyone for any reason and here's the reality the average American spends 24 percent of their paycheck to debt payments each month that's crazy but you know what that really tells me is that if you are an average American you are terrified you are stressed and you're asking yourself how did things get out of control so quickly you feel the weight of those payments every single day and you just think this is how it's going to be and I want to tell you that there is a better way to live you just need the right plan and Financial Peace University is that plan over five million people have gone through this program and they're saying my past mistakes do not have to dictate my future I will not be one of those statistics anymore I am going to do something different and that's what happens when you follow a proven plan those dreams that seem so far out of reach start to become reality because you decided to change you can live a life without money stress and with Financial Peace University you can start today [Music] the whole mortgage home buying process is so complicated more so today than a very intimidating you know what takes away the intimidation is knowledge yeah and that begins the journey all the way down to the ultimate goal of baby step six and becoming a hundred percent debt-free house and everything one of the things we do is we provide homebuyer workshops these homebuyer workshops provide them great information we call it our smarter mortgage plane and it helps them get through step one two three four five and we actually focus then on step six and getting them in the home out of the loan out of debt it's a great - and that's why this partnership is worked you guys are thinking about our listener who has a set goal how you can participate in them achieving it and that's the beauty of this Churchill with Ramsey solutions marriage [Music] hello America and welcome to the Dave Ramsey show I'm George camel a very happy New Year to you wherever you're watching however you're watching YouTube Facebook Dave Ramsey calm the app I don't know if it's your first time watching or your hundredth but we're so happy that you're here this new year I know you all have some amazing goals that you are trying to reach especially financial ones so here's what I want to do as we start off the show why don't you put your financial goals in the YouTube chat put it in writing so we can all see it and cheer you all on we've got a great show today of course Dave Ramsey in studio it's the launch of Chris Hogan's book everyday millionaires and a debt free screen right here in our lobby I'm super pumped guys keep watching this is the Dave Ramsey show [Music] well in all of my excitement I got confused Chris is actually in the middle of another media hit in New York City he was on Fox & Friends to kick off the book tour this morning and then he's doing teeb local TV there and a Sirius XM town hall today and then he'll work the lowly Dave Ramsey show into his ivory tower approach from New York City later on I'm kidding but yeah he'll be with us a little bit later in the meantime remember that you want to come to the book signings that are in your area because the smart Wester team has sponsored those and the smart investor pros will be on site and we will be giving away $1000 no purchase necessary must be present to win each of the signings the first one is tonight in New York City in Tribeca area at the Barnes & Noble there on Warren Street six o'clock Wednesday night is the next signing at Chicago and that's at the Skokie Old Orchard area and Skokie Illinois there in Chicago Barnes and Noble six o'clock in Skokie and then Thursday night is Nashville at our offices we're doing a town hall a millionaire town hall event that's going to be broadcast on Facebook and on YouTube and across about sixty five television stations as well and we'll be doing a book signing there here at our offices Friday night Dallas Texas Barnes and Noble six o'clock Lincoln Park and that will conclude then Saturday we have the smart conference in Dallas he'll be there signing books of course Monday be over to Houston and so on but that that gives you this week's lineup make sure you're out at those signings and you come by meet Chris he loves to meet folks and he's a lot of fun or with him this weekend in the Philadelphia our area really Lancaster Lynne kissed her they were trying to teach me how to pronounce it because southerners say it wrong we think it's a 19 syllable word and you're supposed to learn to say it will truncate it but I say layin castor and that's not what they say there but anyway they a tell CBC Church there with a twenty five thirty thousand folks we were hanging out with this weekend speaking at all their services and Chris got to speak to some of the Financial Peace University coordinators there and it was just a great fun weekend so a lot of stuff going on that was he and I this weekend we dropped him in New York I came back home to do the show today and then he'll be back down here Thursday after Chicago in New York so that's what's going on around here Michael is with us to kick off this hour in Nashville hey Michael how are you I'm doing well sir how are you better than I deserve what's up so my wife and I started with about over a little over $100,000 in debt six months ago we paid it down to about 59 thousand good in the six months one of those was a stupid purchase we bought a boat and decided to sell it and was able to walk away from it without incurring any more debt Wow so that helped us a lot yeah so we're thinking about moving and buying a new house because it would offer it would open up some more opportunities for us we owe about 192 on our house right now and it's worth 162 so we can pay off the rest of our debt with the equity that we would have in selling our homes the thing that scares me is that the home mortgage would go up but without any debt we could do it with our with our budget with as much as we make I'm sorry where are you moving in why we'd be moving just down the street a little bit we'd like some property we want to get into maybe fostering a child or adopting a child we have two children of our own that doesn't require an oddity yeah but this would allow us to pay our debt off in the process what's your household income without any overtime from me it's a hundred and twelve thousand with my overtime this year we made over 175 okay and you sold a boat that sold for how much we sold the boat for 35,000 and you paid off in six months 41,000 well in six months total we paid out fifty thousand three hundred roughly well you know I was real proud of you for a few minutes but when you make 175 and thirty thousand of that is the boat you hadn't paid off hardly any debt am I missing something no I mean we we've been doing the snowball effect we've gotten three of our credit cards paid off you make a hundred and seventy five thousand dollars a year you live in an inexpensive home for somebody that makes that why are you not paying like fifty thousand sixty thousand and six months yeah well that's what we're trying to work on with with the snowball yeah but you know you're trying to sell the house to get thirty thousand dollars out of the house and move up in house in the process no I'd sit right where you are okay till you get out of debt and let's cut your budget you ain't cut your lifestyle at all yet let's cut your lifestyle down to nothing and when you get out of debt and get your emergency fund built then talk about selling your house and moving up or the payment on a 15-year fixed is no more than a fourth of your take-home pay but you you've made a hard decision to sell the boat you've not made a hard decision to cut any of your lifestyle yet because effectively you paid off two thousand dollars a month which is a rate of $24,000 a year of debt reduction out of one hundred and seventy five thousand dollar income that's wimpy and you can do a lot more than that with the income you're making so you guys need to get on that lifestyle because you have not cut the stuff out yet you're still spending money like a lot of it so 875 minus 24 is a hundred and fifty thousand dollars a year that you're still spending that's what I'm saying and you only have a hundred and ninety thousand dollar house so it's not going out the door on your house no no no no you're not there yet I wouldn't do that I wouldn't do that I wouldn't do that and that's why so you'll get there you're focusing you're making some progress but you needed to turn you got the burner on about a one I want you to turn it up to about a six out of ten and that's where you are I hope that helps you this is the Dave Ramsey show open phones at triple eight eight two five five two two five Jonathan is in New Hampshire hey then welcome to the Dave Ramsey show hey hey don't move better than I deserve what's up are you have about 7 the $2,000 in depth about $14,000 in credit card 45,000 in student loans and about $20,000 in car loans mm-hmm what's your household income 150 roughly my wife is going to have a baby so obviously that's going to go down a little bit is she staying home permanently no she's probably gonna take like six months off um maybe two months before prior and then how much of the 150 is hers only about fifty okay okay and your questions what my question is that we have a home equity line of credit we currently have about a hundred thousand dollars in it and we have 75 thousand dollars left in it that we can use we don't have a first mortgage we just have the home equity we could we can't pay the $72,000 outright right now my question to you is should we you mean you can borrow the money on your home equity loan to move your debt over onto your home correct okay no I would not do that no I would get on get on a written detail budget have you cut up all the credit cards yet no they're all in low interest some of them are deferred most of them actually yeah okay so we need to chop them up and we need to start doing our written budget on the every dollar budget and we need to really look at this budget and say okay how fast can we pay off 72,000 making a hundred to one hundred and fifty thousand which is what you'll be making over the next two years either 100 150 somewhere in there how fast can we pay off 72,000 thirty-six thousand a year would do it in two years that's doable okay and I'd rather do that than move it on to the house the problem moving out of the house is the verbage that you said the Bible says how the abundance of the heart the mouth speaks meaning before you realize it what comes out your mouth since we're really going on in your brain and in your heart and when you say I'm gonna pay off my debt with my home equity loan see that makes you feel like that what that says is you feel like you got out of that you can get out of debt just move the debt over onto your house you don't wanna move student loans on to your house because if you die that loan survives student loans when you die go away if you become disabled student loans go away home equity loans don't so now I'm gonna work on this I'm gonna sit down do my written detail budget on every dollar and I'm gonna lower my lifestyle turn off the heat get focused and spend the next two years getting out of debts what I would do hey that puts this our that doesn't put this out and puts this segment the Dave Ramsey show in the books [Music] [Music] so what is a smart goal well let's cover the definition of a goal first a goal is the desired result that you envision plan and commit to achieving but most people never reach their goals we live in a microwave society we want our dreams and we want them now without putting in the work to get there but goals are achieved in the slow cooker it takes time which means small intentional steps every day chris hogan a leadership and retirement expert says a dream without a plan is a wish that was weird that's why New Year's resolutions rarely work in January you can't find an empty Stairmaster at the gym but by March it's a ghost town where did all those people go well we don't need an in-depth Dateline investigation to figure out what happened here they didn't set SMART goals goals that are specific measurable achievable relevant and time-sensitive setting a resolution to lose weight won't cut it but you set a SMART goal to drop 20 pounds by March 15th by going to the gym three times a week and cutting out milkshakes you'll be more likely to succeed at Ramsey solutions we recommend you set goals seven areas financial get out of debt save for retirement and make a plan for your money we made it easy with our free budgeting tool every dollar spiritual pick up a new devotional or get plugged into a group at your church physical hit the gym take the stairs and remember to eat your veggies except for beets those taste like dirt intellectual go back and finish that degree take an online course or just read a good book family playing one-on-one dates with your kids or your spouse and make it a point to call mom on Sundays which reminds me mom I got your voicemail I'll call you as soon as I'm done here career be all-in at work make them glad they hired you did you hate your job maybe it's time to polish up the LinkedIn send out some resumes and call into the Ken Coleman Show for help and lastly social say yes when someone invites you out to lunch or for some of you say no more often my friend Christy Wright found her of business boutique says an honest no is always better than a dishonest yes give yourself permission to dream but then set SMART goals to actually achieve them one more thing this is on you if you're waiting on something or someone to change your life you could be waiting awhile even longer than I've been waiting for the secret spacejam make it happen LeBron and now you know [Music] if you have a financial goal this year we recommend Financial Peace University it's a nine lesson class all about personal finance taught by America's most trusted financial guru Dave Ramsey you can take the class with a local group or work through it online learn more at Dave Ramsey comm taught by America's most trusted financial guru and that guy sucks not you sir you're great it was the truck it was the truck that's a very nice man hello how are you good to see you thanks for being here our high health care costs getting you down are you confused trying to navigate the health insurance world do you wish you could find an affordable biblical solution to your healthcare costs based on New Testament principles Christian health care ministries are CHM helps Christian families churches and businesses join together as the body of Christ to share their major health care costs as a CHM member you can go to any doctor or hospital you prefer you aren't bound by an approved health care provider list and all treatment decisions are made between you and your doctor no treatment approvals are ever part of the CHM experience for tens of thousands of Christians CHM is a trustee affordable and biblical health care solution and it can be the solution for you as well visit us online or call today to learn more about how we can serve your family church or business Christian health care ministries one eight hundred seven nine one six two two five CH ministries dot org hey guys to help you with your new year's goals we have a brand new tool at Dave Ramsey comm and you go scroll down right there in the homepage you're gonna see something that says in 2019 I want to dot dot dot you select your goal and we will point you to the right resource save you a lot of time and get you on your way now coming up on the show Jason and Beth are here from Lexington Kentucky they do their debt free scream and this is how intense Beth was she wouldn't marry him until he paid off his student loans and then she named their dog Ramsey these people are weird y'all and you're gonna hear a little bit more about their story coming up on the show they paid off something many people don't pay off until retirement or never coming up check it out [Music] your life is an adventure emotionally you just been through the ring you're not afraid of hard work and you have note that everything in painful a very very well done you did the hard work and you've done so good you know when you've had it that something has to happen inside of you slow and steady live on less than you make believe that it can happen it does happen every day in America you are the answer God's blessings pouring to and through you are the answer [Music] in the lobby of Ramsay Solutions that Jason and Beth are with us Happy New Year guys how are you happy new year thanks for having us absolutely where do you guys live Lexington Kentucky oh nice area very nice area that's fun well welcome to Nashville and all the way here to do your debt-free screen yes absolutely that's fun how much of you paid off we've paid off one hundred and fifty three thousand over two years Wow look at you and your range of income during that time it was 160 to 185 there you go okay as that guy was just talking to yep yeah I'm making 175 and he paid off a measly 15 grand in fifteen six months yeah that's and you guys did a hundred and fifty-two in two years so you're about a seventy five thousand dollar pace mm-hmm yeah you were all beans and rice what I was talking about I said crank that lifestyle down because you just did it yes way to go guys what kind of debt was the one fifty two it was our mortgage Wow how long you guys been married well two years we paid it off on our anniversary oh my gosh so you get married and said we're gonna knock the house down yep just like that how are you - I'm 33 and I'm 38 and you have paid for a house yes what's this house worth about a quarter million be there before you know it you have a great income - paid for house and there's nothing stopping you now oh my gosh what in the world so tell me this story how did you I mean who gets married and their first goals pay off their house you do I know but wow we were kind of throwing her in here well we've gone into the middle of a little bit of a storm we got back from a honeymoon in the next day after we get back I find out the church that I'm working for is merging with another church mm-hmm so we don't know if I'm gonna have a job in a couple months or not so we talked and we decided to live exclusively off of her income okay and then everything that I made we were setting aside just to see what was going to happen and then about eight months down the road going out and becoming a full-time freelancer so we're still living 100 percent off of her income and everything that I make is going to pay off the house that's what I'll pay off Wow what do you do what are you freelance a television production okay all right so you're doing production at that Church okay very cool good love it good for you guys so it scared you it made you realize what you can do when you have to yes exactly and we didn't you know it's starting out your marriage like that yeah was such a stress like your you know he had just moved into my house sold his house you know we made 15,000 off of his house put that towards mine and just you know starting a starting a marriage it's so stressful anyway yeah living with somebody for the first time and and all of a sudden you the day after we get back from our honeymoon to find out you may not have a job these guys have horrible time yeah it was not great but we just said we're not gonna let money just rule our life we're gonna make you know we're gonna take charge of this and you know the easiest way was for us to figure out cut our budget down and live off my income and so if he lost his job it wasn't going to be you know a huge detriment he would be able to bounce back quickly so yeah well the weird thing is the biggest oh crap moment that you've had became the biggest blessing oh absolutely absolutely it was you know stressful in the moment and even you know looking back on it but it's like it turned out that it was the best thing for us yeah absolutely and it pushed him into you know kids he had gone back and forth with one aim to freelance anyway and I truly we see God's hands all over this situation because what it did was it pushed him to you know we prayerfully decided it's time for you to to get out of this stressful situation at the place you're working and you know let's let's do what you want to do which was freelance and he's been very successful absolutely no that's perfect yeah if you won't jump out of the nest illegal will push you that's true I love it yeah that's great scares a curette out of you you guys have been living large for a couple years I'm proud of you very very well done who are your biggest cheerleaders my parents are probably our biggest supporters but we have a lot of friends who are going through this journey too and so when we got to share you know that we'd become debt-free with them they just you know really rallied behind us and you know are celebrating this with us today oh praise God that's awesome that's the way it should be so what do you tell people the secret to paying off your house and the first two years of marriage is focus decide to do it yeah I mean you know we're all so professional scuba divers and so one of the sayings and scuba diving's is plan the dive and dive the plan yep and so when you get a budget live the budget like you have the map in front of you and if you follow it you you can pinpoint exactly when you'll pay off your debt and people that get hurt on dives are the ones that don't you know I just drove this anotation in in Mexico last week I think you better dive the plan and those things that's very cool you guys Wow that's it I have the plan that's good yeah you can't come you have that tendency but what happened with you guys was it was this intense focus because there was enough of a healthy fear it wasn't the point that was paralyzing or toxic but it just went that was good for you I mean he never lost his job and that's a blessing in itself that it gave us time to come up with a plan and you know get our budget in place to where we could live off of my income and luckily it never came but then what it did was it let us see you know what if we can live off my income you can go do what you've dreamed of doing you know forever which is going out on your own the Howser field have no payments and the warmth and it's incredibly freeing yeah yeah it is yeah you just it you can you your choices are different right yeah way to go well done we've got a copy of Chris Hogan's everyday millionaires for great because that's what you're gonna be next the next chapter that's the next chapter you call in and scream whatever we scream for being a meaner I don't know what that is yeah well it was all so easy as we went through this you know we've got cheerleaders and we've got our budget but we also have a dog named ramsey that helps us to stay the host hope he behaves don't tell me your paper training room right now housebreak ramsey oh my gosh all right Jason and Beth Lexington Kentucky a hundred and fifty two thousand dollars paid off in two years making 160 don't 185 count it down let's hear a debt free scream three two one [Applause] there we go baby that's how you do it right there I love it I love it I love it man oh man oh man open phones at triple eight eight two five five two two five you jump in we'll talk about your life your money Derek is in New York City hey Derek how are you how's it going Dave how's everything going today better than I deserve what's up I got a quick question for you looking for some guidance so you talked a lot about saving for college in five to nine so I've done that I don't have custody of my son he didn't ready to go to college in the fall so he received a full academic scholarship to cover the tuition for the private school right yet we still have to pay for room and board right that Roman board cost would be about $14,000 a year all right as of today has that five to nine balance is about 68,000 so Mike my question is I basically have two options at this point the fact because he doesn't live with me the FAFSA was done based on his mother's income who he resides with so five to nine was not on that but with the drawback to that is when he when we do withdraw money from the five to nine per pass the purposes is considered untaxed income or reduce any aid by up to 50% so he's eligible for financial aid two grants up to 8,000 out of their 14 so should I just pay the 6,000 difference in cash for the first year and a half and then pull out money from the five to nine or should I just pulled out from the facts and I now and if he loses on financial aid it's fine what are your thoughts on this I don't know that's that's a hard one yeah I've never run into that one I think that sit down with your tax pro and calculate it both directions and see which way is going to cost you that because you may have some penalties if you don't use it just due to the fact you're gonna it's going to mess up the FAFSA what a crock and that's ridiculous yeah it's it with your tax guy and get better answer than they Rams you can give you I don't know the answer [Music] [Applause] [Music] if we are living mediocre average lives it's our fault at any point in our lives that something's not going right we can just decide to change it transforms your life when people wake up and start to get incensed don't you can change the game your sweet spot is that the intersection of your greatest talent and your greatest passion I want you to focus on your lives or marriage on your parenting and not everyone leaders model integrity model grapes characters for your kids our King cannot be the bright future if we cannot connect to this after today I'm gonna be a different kind of dad after today I'm gonna look at my retirement differently after today I'm gonna look at conflict in my marriage differently I'm gonna do this different because you become what you think about because at the end of your life you want to look back and say I have to admit I'm not a fan of dental insurance very seldom does it pay off yet I understand that just one dental emergency can blow your budget quickly and the truth is no matter how expensive dentist visits can be you have to take care of your teeth that's why I am a fan of one dental comm one dental comm helps you save at the dentist immediately with an everyday low price it's like a Costco membership you pay a little to join but you save big every time you use it plus you can choose from tens of thousands of dentists all across the country and unlike dental insurance pre-existing conditions are accepted there are no waiting periods no maximums no claim forms and no deductibles it even includes orthodontics for kids and adults in fact I have team members who have saved over a thousand dollars for one procedure start saving today at one dental calm [Music] I'm here with Jason and Beth following up after their dad free scream how you feeling Beth this is wonderful feeling now did you miss anything that you didn't get to say to Dave on air of course I could have talked probably for a half hour about this but probably one of the biggest turning points for us was when my boss really encouraged me to refinance my 30-year mortgage into a 15-year mortgage and with such a low interest rate you know so much of our monthly payment was going to principal so that that really helped with one hundred and fifty three thousand dollars that's huge a lot of people they're kind of on the fence about it but it really does kick into high gear and 15s a lot better than thirty so I do want to mention do we want to give a shout out to your dog and encases watch hey Ramsey I'm sure you're watching be good and it's an 11-pound kakapo was there a photo on air I bet that's really cute so there's only reason these people watch it they want to see cute babies and cute dogs hey we're so happy for you guys Congrats once again Jason Beth no more payments [Music] [Applause] [Music] connor is in Fresno California hey Connor welcome to the Dave Ramsey show thank you Dave hey how can I help yes I just had a quick question you listen right here so I'm just kind of new to this I am currently 20 years old I have about 26,000 a savings account I plan to graduate Fresno State University in two years and have that completely paid for because of scholarships and money saved you think it's best to start saving up for a house now with that 26,000 or should I invest it in like a Roth IRA or what do you recommend that I do why'd it go your way I had my own congratulations thank you sir and no student loans huh you know I got about ten thousand dollars in scholarship money and since I've been young instead of birthday gift and Christmas gift my parents contributed to my college savings accounts and death and that's the 26,000 no that's I have a separate savings account from when I bought it oh and saved up about 26,000 how much is in your college savings about 19 K okay very good and the three things combined the scholarships and the two different savings accounts get you through school yes sir plus reminds I went to Community College first good for save money what are you studying apparently it's not the best degree but criminology because I want to work for the Sheriff's Department yes well that would be the correct thing to study if you want to work for the Sheriff's Department right yes but it's not a really applicable degree because they don't really look at what degree you have it's basically if you have a bachelor's degree else but that's what I'm interested in so that's what I decided okay well a lot of law enforcement does look at a criminology degree so you're on the right flat path if that's the direction you want to go plus or minus that particular Sheriff's Department okay great job man well done okay here's the thing Corner is the best investment mathematically that Connor can make let me explain what I mean the rates of return on a mutual fund will be ten or twelve percent the rate of return on you graduating from school 100% debt-free and finishing a degree that is applicable in the marketplace which you are doing is much higher and so by far the most important thing in this discussion if there's three things on the table graduating from college debt-free in a good field of study number one number two buying a house number three a Roth IRA house and Roth IRA are nowhere near as good an investment as you are okay so I'm gonna tell you if you're my kid I would say just keep piling up cash and that's your insurance policy that you get through school on time and a hundred percent debt free now when you graduate and get the job now we'll talk about what we're gonna do with it because you may have still a pile of money laying there you should have still a pile of money laying there based on what you're telling me but just in case I'll take a twenty six thousand dollar insurance policy that you're gonna graduate debt-free and just let it sit there and savings boring is what I'm saying because I want to make sure you invest in you first and foremost to you get out now when you graduate in two years you get a degree you get a job now we start working the baby steps you sense some of your money aside for your emergency fund and at that point if you want to buy a home anything above your emergency fund would be your down payment and you can start your Roth IRAs 401ks 403 B's whatever is available to you for retirement at that time and if you do that beginning at you said you're 20 years old if you do that beginning at 22 you're gonna be very wealthy because you're a god knows how to work your guy knows how to not spend everything he makes and save money and that's the that's the kind of people become wealthy it really is and so you know you learn about that and you just keep pushing that forward so well done man well done Gabrielle is with us in Sacramento California I Gabrielle how are you I'm doing wonderful thank you so much for talking me I'm really excited my pleasure how can I help ya so I just had a question about making a budget on kind of a fluid income so ladies in work for a church we also own two small businesses and I am a server as well but we get paid kind of as we go so as we do a job or as I serve that's how we make our income and so I was just wondering what is your advice for a for that kind of a lifestyle you know for that kind of an income so we have our our plans for the month like set out but I'm just finding it a little bit difficult to figure out like what you ever jump on every dollar and get the every dollar app have you done that yet okay no I have another that's the world's best budgeting app and it's completely free from us okay every dollar put it on your phone put it on your desktop and all it does is that the purpose of a budget is you want to spend every dollar of your income on paper on purpose before the month begins your challenge is we don't know what the incomes going to be exactly right and so what I want you to do is I want you to run your budget at the first of the month based on the lower estimate of what you really think this month is going to be if you only look out from January 1 to the end of January you can be pretty accurate for at the beginning of the month but if you adjust it two or three times through the month you'll be perfectly accurate but if you just if you do your budget based on low and then as you make more than you thought it was going to be so what would be a typical month what do you think you're going to make this month total income yes so this month were projected to make four thousand three hundred and eighty one dollars to perfect what would you think a typical month is probably that's probably typical okay so what if we did a four thousand dollar what if we had a four thousand dollar budget okay and then as the money comes in and you realize you're going to go over four thousand dollars then you adjust your budget okay but you just adjust that you go along with every dollar you can do it that way another way to do it that I used to do before we have the app was I just make a list I do a regular budget on four thousand dollars and that's give every dollar a name before the month begins and then I would make a list of things I want to do if I get more than four thousand dollars okay and put that list in order of priority what would I do if I got four thousand and one dollar what would that $1 go towards if I got four thousand six hundred dollars how many different things could I cover and you list those out and then you say what's the more number one thing I want to do if I get above four and you put that as number one what's the number two thing I want to do if I get number one done put a two and so on and you say you've got a prioritized spending plan for the money that comes in above four K you can do it that way if you want and then actually enter that into your every dollar budget as you go through the month and begin to really figure out where you are and that's that's a way to do it that'll work so hey good question your own it kiddo you got this it is the first of the year you guys are doing this stuff man you're doing it hey this is your year this is your year the people that decide to take control of areas of their life and they decide way deep down in there to cider not a drive-by not a passing fancy but way down in your decider you decide way down there where nobody can change your mind you decide no way down there where no amount of adversity is going to keep you from winning that's where you decide way down in your decider you decide when you decide to do that you can get out of that you can get on a budget you can get your baby step four going into your 401k and be on the track to being everyday millionaire but there's no skipping any steps you lay the plan out your work the plan and you're no different you're not the exception to the rule you do not get to break the rules a couple getting out of debt a while ago where divers I've been scuba diver since I had hair nineteen eighty-four some of you weren't even thought of yet it's the first time I dove and she said dive the you know you weren't you worked the plan you dive the plan you lay the plan out if you don't dive the plan when you're diving you take a dive plan because every 30 30 feets an atmosphere and you start busting through those atmospheres and you don't do your safety stops this is how people die underwater it's just stupid land and so you don't you don't get I'm not the exception 33 feet smile at my sphere at your atmosphere 66 is another one there's no exceptions your body's going to work the same way and your body's gonna explode if you don't do it right this is really pretty simple and so you know you're not the exception you work the plan you don't get to change it cuz it's you you're not that special you work the plan this is the Dave Ramsey show [Music] [Applause] [Music] Mike and I went on our honeymoon to Manali and it was our first big trip together it was amazing we were like let's move here so we bought a timeshare there and we went all the time for the next two years straight and in 2015 we were expecting our firstborn child and we're really excited about it it became a lot of work just to get out of the house let alone to Maui I mean I tried everything to get out of our timeshare but I just couldn't make any progress and then finally uh one of your friends actually told us about timeshare exit team and they were great they were amazing so now we can just relax at home as a family or go on other vacations and not have to worry about money spent on a timeshare time changes everything if your timeshare no longer fits your life call the team that can talk to you about options for your timeshare call timeshare exit team today or go to timeshare exit team com [Music] [Music] [Music] my name is Cheng Cosette my friends everybody calls me Duke here live here beautiful Wasilla Alaska is home I work up in bark Alaska I am a production operator I've been in the oil business now about 25 years and it's great living [Music] and where I work at everybody up there makes a very very good living there is no reason why any of us should be in death there's none but we're normal right my whole philosophy was credit cards I just worked another week swiped the card worked another week swipe the card I got this right I was never late on payments was never behind but I was living paycheck to paycheck so I rode from Minnesota over to Milwaukee Wisconsin got on ferry went over Michigan see my buddy in Grand Rapids and of course of that I blew up my motorcycle so I was sitting hotel room and trying to figure out how to get back to Minneapolis I get back to work I made a decision I need to get around with Cara's gonna run a car to drive back anyway so I'm sitting there looking at my wallet you got these credit cards every one of the max now so I call a credit card company and I'm begging to the gal on the other hand the phone to extend me another thousand dollars limits like which was twenty five thousand dollars I maxed out all January 7th of 2013 and I still carry to this day and I will carry to my grave is my debts sat down I wrote them all out [Music] January 7 2013 BAM there it is house dead $395,000 today living like this for [Applause] [Music] [Applause] [Music] I did it [Music] so I had no credit cards and and I just started hitting it started with the first one got that one knocked out I just did just what they said and just roll the roll that money so that's one excellent and as I got so to the top of my list they you know took a little bit longer but each time I hit them goals man and he could feel the weight off my shoulders is just incredible to have it where nobody owns me anymore nobody nothing holds me except God just puts you in a whole new level of living and a whole new feeling of man this is incredible so I keep putting money away and now my bank countess keeps going like this and I hope I don't live to work I work to live now back when I was kid growing up in Minnesota I always wanted to go down to Mississippi River on a boat just you know the Tom Sawyer Huck Finn deal so about five years ago actually when I was very death told the guy that that was one of my dreams and he said he ever heard of the Great Loop I said no he said well look it up so I looked it up as soon as I pulled it up online there's the map I said I'm doing that that's my goal how I'm gonna do it I'm gonna do here with my pals Kelly and James just finding out how the holidays were for you anything exciting unfortunately my little one was sick most of the time but that means we spent most of the holidays in our pajamas at home which was good that is the way to do any onesies make an appearance my daughter okay the onesie thing yes well leap yeah let's just we'll leave it there and how about you James anything excited with the kids we were in town we just hung out my five year old learn to ride a bike this past weekend that's huge can she teach me well it's my boy I'm still learning here that's exciting five years old is pretty young isn't it I don't know the child's career they're so they're so talented now did you get anything exciting for Christmas any like audio gear I don't know what you're into these days I got a lot of cool music books so like books on different albums and other books too not music books I'm kind of a book nerd yeah I know that about you any vinyls that you're particularly excited about yeah I got a Radiohead in a Kurt Vile record too nice he's doing well how about you Kelly I got money to go towards my trip to England and you got a playoff win for your cowboy yes gift of all yeah congrats Kelly and James I guess sacrifice determination you can be attention about your character you gotta be on the same page they were calling to let you know we're debt-free house and everything you have done really really good and you're not gonna quit than a huge witness for us to be able to share that it was time to get serious intentionality people this is your show America I knew it 22 what I know now our life would be better is the show that's changing the world now you don't listen to the show you live it live from the headquarters of Ramsey solutions it's the Dave Ramsey show where net is dumb cash is king in the paid off home mortgage has taken the place of the BMW as the status symbol of choice I'm Dave Ramsey your host happy new year America we're glad you're here life is good open phones at triple 8 8 to 5 5 2 to 5 you jump in we're gonna get you started baby that's triple 8 8 to 5 5 2 to 5 daniel is with us in Duluth Minnesota hi Daniel happy new year how can we help hey Dave Ramsey it's a total pleasure to speak with you you too sir all right so my question basically I have an unusual obsession with taxes like I have Google Spreadsheets of tax calculations for myself and I'm thinking about starting like a part-time I guess tax filing business the big problem for me though is my education and trade is in mechanical engineering and while the two have they're both obviously numbers bases mathematical there's not really any system for me to just like become an accountant for this part time so I just wanted to get some insight of what you think well there are a lot of tax preparers that are not I don't have a master's degree in accounting and so you know you may look into what it takes to be an enrolled agent with the IRS and that that's the next step and if you're an enrolled agent instead of a CPA then that gives you some credibility and I honestly don't know what the guidelines are to become one of those off the top of my head but that is the two designations that we see for instance with our taxi LPS that we endorse have you looked into that I saw a thing on the IRS it was something like a volunteer tax filing thing but it seems no nonprofit type no this is called an enrolled agent okay and then I guess I can just go on IRS website and disclosed at the requirements but after college you don't know I don't know I don't know them yeah I suspect that IRS is one place to get the information if you just type it in you'll probably see a bunch of articles come up and start to understand what it is I honestly you now know everything which is not much obviously so yeah you'd want to do that and and I think you probably do want to get you know somewhere start to great get some bookkeeping experience because the stuff you're doing is just your natural math aptitude and there may be that you know in the accounting systems and it does apply to taxes as well there's what's called gap the generally accepted accounting principles and you probably do want to get like you know an accounting 101 accounting 201 type classes over at the Community College under your belt which will help you be a better bookkeeper type use of your natural math skills and then that'll apply over into the taxation issue I'm gonna want to do something like that if I'm you to start before I start charging someone for this service so hey thanks for the call Dale is with us in New York City hi Dale how are you better than I deserve what's up alright so I'm calling in a job where I think about $29,000 a year my roughly about $10,000 in debt I'm looking to renew my contract that maybe makes about forty nine thousand dollars a year however with the new contract it won't come with any benefits any time off anything to try them off any health benefits most I'll be the smart decision to make so much like I'm just spinning my wheels what do you do I work for your mortal enemies a credit card company okay how old are you 29 right now what do you do with the credit card company I do I pay the fine to computers okay IT guys are not my mortal enemy so you make you're an IT guy and you make twenty nine thousand but they're offering you a raise to 49,000 correct by taking you off of payroll you won't be an employee you'll be contract okay what is your IT training launching school for it I didn't finish but I do know certificates pretty much for my general knowledge problem I've been doing IT one the same now for about ten years they'll maintain I can't tell exactly what you are doing I mean you have some of the Microsoft certs is that what you're saying well I also have like the gentle IT knowledge license I think you will care of it well at my job now is look they're pulling the pairs you know pretty much the entire gambit so your work you're doing are you're doing a lot of hardware stuff correct okay all right well I think you're probably worth more than you're being paid you need to go shopping I thought I was thinking the same thing but that'd be a good idea well it's not a bad idea because we don't know what you're gonna find when you go shopping if you find something you know I didn't say you need to quit but let's go look and see what's out there well what kind of position similar yours are being paid 69,000 with full benefits that would become what's known as a no brainer between the three choices right now so let's go find out what else is out there and then the other part the other part of the question you want to ask is where do I want to be ten years from now 15 years from now and which of these jobs takes me there so even if one is not super exciting money-wise today but it's taking me towards where I want to be ten years from now then I might want to be not super excited about the money but super excited about my future but what you said scares me you said I feel like I'm spinning my wheels I do at this current position I do something to spend money where you're afraid makes a lot of fun yeah and so I'm going to really start looking out there long term what have I got to do and what are the steps I got to do and let's get going yeah that's that's very good great question man you got this you can do it very cool open phones at Triple Eight 8 to 5 5 2 to 5 on Twitter John says David has paid off all my consumer debts $79,000 19 months this year we start investing can you please give advice on how to handle the stock market diving you know I don't even notice when it dives John and the reason is I don't look at what it does every day or every week or every month I got rindu got this weekend he goes so Dave tell me where I can get 12% I said well this year I said well you can't get 12% this year this year the stock market lost money or maybe broke even I named look by the end of year need to pull up what it did thin the year miss ride around a break-even for the year you don't need the year before 19 okay so what's the average you know close to 10 percent right and so you know what's the average over a long period of time on the investment that you're looking at and you say well you know if the average on my mutual funds is you know 11.8% 12.8% whatever it is long term and this year is zero does that mean I quit no the douve but didn't revive it broke even but if it didn't do what we all thought it would do which is distressing but overhaul over the long term I'm going to be fine see the only people that don't get hurt on a roller coaster are those that don't jump off so ride ride ride this is the Dave Ramsey show [Music] why do we fight with the person that we love the most which crazy is one of the leading causes divorce in America today money fights and money problems money is the number-one source of conflict does matter how much you have a little or a lot it's still the source of a lot of friction and what happens to negative feelings that we bury they have a high rate of resurrection it's amazing that money hits us in a place in our marriage that no other subject does I want you to put yourself back in the driver's seat of your life and your money because I want you to learn to love your life not theirs your relationships can only be as healthy as you are don't get on the same page with your spouse just because of your bank accounts do this for your marriage [Music] I have to admit I'm not a fan of dental insurance very seldom does it pay off yet I understand that just one dental emergency can blow your budget quickly and the truth is no matter how expensive dentists visits can be you have to take care of your teeth that's why I am a fan of one dental comm one dental comm helps you save at the dentist immediately with an everyday low price it's like a Costco membership you pay a little to join but you save big every time you use it plus you can choose from tens of thousands of dentists all across the country and unlike dental insurance pre-existing conditions are accepted there are no waiting periods no maximums no claim forms and no deductibles it even includes orthodontics for kids and adults in fact I have team members who have saved over a thousand dollars for one procedure start saving today at one dental calm [Music] hey folks wanted to introduce you to Chris Campbell from our financial coaching team now Chris a lot of people don't even know about financial coaching what is your team doing all day yeah man we train financial coaches really all over the world to learn how to become financial coaches and this is really the legacy business of Dave Ramsey we've been doing this for about 25 years we've been training coaches for 19 so yeah helping a lot of folks and this is a big year for you guys I want to talk about everyone out there they're probably wondering okay so you train these people what do they do with that training yeah we have folks that take our training really for personal or professional development we have folks that do it as a ministry and then we also have folks that do it as a side business they choose to charge for their coaching practice so they learn this skill set go back and use what's their passion how they want to help people how they've been helped and they make a little bit of money off of it it's a great thing that's awesome so I know you guys have a free resource coming up there's a webinar this Thursday at noon central and tell them how they can sign up for that yeah absolutely all you have to do is text coaching to three three seven eight nine that's coaching two three three seven eight nine even if you can't make it I know it's in the middle of the day some of you guys are working no big deal we'll make sure and send you the recording but we'd love to have you live we have a lot of great questions on there we're gonna tell you everything you need to know about the program and really how you can use it to affect your community I love that I love what your team is doing Chris and this is what I love about this stuff people come in here they do their debt free scream they interact with Dave and our principals and they're their life has changed forever and they go I want to help other people do this and this is such a great way to do that in a formal way and get the training and I'm actually going through this training myself and I'm amazed by the how it equips me with not only the motivation but the knowledge and it gives me the language to actually understand what these people are going through and help them so text the word coaching to three three seven eight nine do it now all of you you can learn more and get plugged into the stuff thanks Chris you got it man thank you [Music] Happy New Year America Jacob is with us in Los Angeles welcome to the Dave Ramsey show Jacob hey Dave how were you better than I deserved man what's up Dave I have a question about a leased car and what I should do okay at the end of this month I'll be making the last payment and I'm looking at some of the options when I first got the car I was thinking about just buying it and so I didn't get very many miles a year needless to say I'm grossly grossly over on miles right now about 18,000 Oh 25 cents a mile you know that's gonna be four or five thousand dollars out of pocket we were thinking about buying it so we have about twenty six thousand dollars in cash right now the car contract says the buyout price is about $24,000 software tax and fee is about 25 the Kelley Blue Book for private sales is somewhere between 19 and 20 so I feel like I'm gonna be overpaying for a car now I really like the car my wife loves the car too but uh I don't know if I necessarily want to I feel like I'm gonna be making a bad decision if I do buy the car I'm thinking about selling it but I haven't got very many bites on like Autotrader and some of these marketplaces so I don't know I feel like either way I'm going to be taking a loss yeah well I mean the value plus $4,500 is your is your is your threshold right it's $4,500 is your mileage penalty and so if the value is 19 then 24 is a deal buy 500 bucks if the value is 20 then you're in the hole 500 bucks you're not getting a deal on this car at 24 you're not overpaying $5,000 for it though I mean you might be paying overpaying five hundred dollars for it okay you're overpaying for it but you're gonna give them four thousand five hundred dollars if you turn it in correct so that's on the table right so I guess what I would do is contact the dealership and who holds the lease it's financial yeah contact them and see if there's some times on these things they're not always but sometimes you can make them an offer at you know Blue Book and they'll take that because they're gonna take the car and do what with it sell it okay yeah they're gonna write down the auction line and it's not going to bring 19 at the auction line and so let's say it brings you know its wholesale at that point trade-in value is what it's going to bring if they wholesale it and they run their leased cars down the auction lines what they do with them usually so you know if they're going to do that then they're gonna get a in the equivalent of a trade-in value for this which might be 17 and 17 plus your 4500 is less than the 24,000 they're trying to get out of you so if you kind of make that case to them look up trade-in value and call them and go okay you know I would be willing to pay you more than trade-in value because that's all you're gonna get for it when I turn it in to you cuz I got to give you $4,500 anyway matter of fact I'll probably give you 4500 on top of trade-in value which is less than 24 what would you take for it and see if you can negotiate the price to that and then if you buy that car are you gonna keep that car and drive it yeah okay all right then you got the cash to do it and that's what I would do I'm trying to get the price down under 24 okay yeah I called them and didn't look like they wanted to play ball and then I called the dealership to see if they would you know buy and sell for me less to try to keep a customer kind of thing and it doesn't seem like any of them really want to do anything but I know I have until the end of the month I guess or end of next month to figure well you've already done what I told you to do then okay you're ahead of me yeah I mean just take another run or two at it but here's the thing if you turn the car in and you bought a car identical to it you're gonna pay twenty thousand dollars for that car yeah and you will have given them $4,500 that's twenty four or five so if you like this car I'd pay them 24 for it worst case yeah and keep it and you got that cuz you got the cash to do that I don't want to I don't want them to write it down one thing every every dime they write it down under twenty four thousand makes this much more palatable if they're if the buyout on the thing was 27 I'll hand them the keys if they were hardcore because that's a three thousand dollar swing then you're right at a break even which means they calculate this lease perfectly that's what it means ouch so they don't usually do that by the way they're they're pretty good at it they don't usually lose money but this one there yeah this so anyway just keep messing with them see if you can get them to cut it down you know if you'll knock it off thousand dollars I'll take it somebody help me here I'm just trying to save you the trouble taking the car and running it you know of course for them it's just a job for you at your car so who knows good luck with that but I that that's a worst case in your situation I'm buying the car for twenty four worst case I hate it but I would do that hey thanks for the call open phones at triple eight eight two five five two two five see the car fleece we call it a fleece because you're being fleeced is the most expensive way to operate an automobile every possible way that general motors on that deal is going to lose money they have covered if the mileage goes up they make you eat it if there's wear and tear on the car that's excessive they make you eat it if you want to buy the car you're gonna pay freakin retail for this car more than retail for this car and it's as is condition and that's at the you know locked in on the contract it's closed in lease you pay the lease payments up to the last payment and then you buy the car or you write a check and cover the mileage hole that you're in when you put all of those factors in there and you figure what the MSRP on the car is you can calculate out and figure out that their rate of return on the money they have used while they let you rent their car their rate of return on average on a car fleece is about 14.2% it's like financing a car at 14% this is what's known as freaking stupid okay not that guy but just everybody out there just for those of you you know three kaliesha Accord leasing a car stupid it's the most expensive way to operate an automobile and that guy's numbers were classic case study of it right there again I'm not picking on him I'm not yelling at him I'm yelling at those of you that still think this is smart because it's not smart you're renting a car and any possibility of any loss by the manufacturer that's carrying the car fleece paper has been covered they got it dialed in they did ten thousand just like you last year twenty five thousand just like you last year and they've got this dialed in they know what this stinking car is going to be worth they know how much it's going to go down in value you are covering all the loss of value in your fleece payments that's how this works they're not in this business to lose money they're not doing anything illegal they're not scamming you it's just the most expensive way to operate a car the least expensive way to operate a car is write a check and buy it and if you don't have a net worth of at least a million dollars don't be buying a new car let someone else take the butt-kicking on the depreciation when you drive a car off the car lot that's sound when you go over the curb blump blump was five thousand bucks boom boom that's what this sounds like it's what five thousand dollars sounds like boom boom when your tires go over the curb if you don't believe me turn around the block later and take it back over there and see if they'll take it back that's where you'll find out what you just lost a new car loses 60 to 70 percent of its value in the next four years that's turning thirty thousand dollars in the ten thousand dollars on a regular basis and scratching your head and wondering why you're broke if I tried to sell you a mutual fund that you put $30,000 in the turned into 10,000 every three years and that was its track record over the last thirty years you would call me the biggest scam artist snake oil salesman on the planet and yet you line up to buy these dadgum brand new cars and scratch your head and wonder why your kids college fund it and fund it I'm not against the brand new car I've bought one at Christmas but I got the dadgum money that's the difference and I'm not you know I'm not merely a millionaire anymore even it's a multi multi thing now cuz this stuff works oh and by the way I sold a whole bunch of books because I'm smart so there you go I don't like you Dave Ramsey I don't really care I'm not running a poll here I'm trying to help you people win that's why we got Chris Hogan out there selling you every day millionaire books right now so you can be an everyday millionaire one of the things they don't do is buy new cars before they're millionaires this is the Dave Ramsey show [Music] I put my budget notifiable put it at 50,000 like to pull 50,000 Jass and pull that the elephant's quick makes happen so I started looking at boots I looked at sail boats pontoon boats trawlers yachts I am advice fast boats the whole nine yards woke up one morning and looking at a $250,000 boat and have it's beautiful it's dream I love and then I want to drive one in boat so bad no way wait a minute what would Dave say and I said I'm not going into debt to do this trip so I was out riding my scooter one day and went by a see new shop huh one about one of them deals so I pulled in there started to talk to the owner and telling what I was thinking about duty so yeah you can do that off on these some motorcycle on water I one night right the great loop is it's all on water go down the Mississippi River to the Gulf of Mexico not I'm going to follow the coastline heavy DS over to Florida go down around then to Florida go around Key West then you head up the East Coast up the Intracoastal Waterway I'm gonna take that all the way up to dealer there's blunts in a couple of different ways to go but I'm going with the Hudson River to the Erie Canal the Erie Canal I'm gonna get all five of the Great Lakes I'll hit Lakes Pier then I'll come back to Lake Michigan and Lake Michigan I'll follow the coastline down to Chicago Illinois where they Illinois River start and I'll take the Illinois River back to the Mississippi the Mississippi backed up to Minneapolis st. Paul without any side trips it's about a six thousand mile trip through the course of the next couple years that's my mission jet skis on water motorcycle riding in between that and it's gold or whatever and that's my plan because um I have no debt it's all cash it's a beautiful thing and man it's so simple it's harder than heck when you're going through the process but once you get there and get that weight off your shoulders and then to live like no one else is amazing and I'm living like nobody else let me tell you what I want to make sure that people see me coming so to do that I have a helmet that I'm going to wear on this trip it's a motorcycle helmet but it's got the bull horns and it's got hair down the mill and so it's like a bike key so I kind of started the trip last year but you got down to lot number three on the Mississippi River just get close to us as I pulled up there I stayed about three four hundred yards away from the lock so I'm standing up and got the helmet on I'm standing up you know just looking at and checking stuff out and I turned around and left next day got downers around noontime or so so we're sitting around there's about six other boats that are waiting to get in and start pulling into the the lock see the lock master coming down from the building he starts yelling and cussing at me you son of a gun and blah blah blah what the heck is wrong with you and he done it on you came down here last night the Sun was your back and your horns were sticking up and I thought the apocalypse was coming to get me I thought my life was over I said this is crazy he said I like my eyes I stripped my attic turn around you were gone you have no idea I'll have for him to see you right now huh I'm going through life letting people see Who I am what I am and this is what it's about you're on a Mississippi River or the Gulf Mexico you'll see me coming with the horns on [Music] the average American household has 286 dollars worth of unused tech and electronics 286 dollars that can go a long way when you're paying off debt don't let ez cash just sit around go to declutter calm declutter is the fastest and easiest way to sell your cell phones and electronics for quick cash they also buy CDs DVDs and books declutter is totally free easy to use go to their site and find out how much your stuff is worth then you pack it into a box and you ship your items for free the clutter will pay you the day after it arrives declutter pays the best prices for cell phones and tech up to 33% more than any cell phone carrier now here's the best part the clutter is offering my listeners an extra 10% in cash for your items when you use the code Dave 10 simply visit declutter com that's the e CLUT PR without the 2nd e to get started today hey folks means some guests here in a lobby tell me your name Sam and Bronwyn and I noticed this was a big deal you were the first one ever to purchase this book right here and Martha's place congratulations how does it feel pretty good I've been waiting for it for a while yeah and you guys were tell me you listen to the millionaire theme now or you love hearing the stories love the stories it's so encouraging to know that people who just work hard and plan smart and spend money correctly you don't have to be a doctor or a lawyer or some CEO teachers can be millionaires it's encouraging it is very encouraging and the stats in here are super shocking in the most encouraging way thank you guys for visiting us here all the way from Greenville South Carolina hope Nashville treats you well eat some hot chicken while you here will ya I already did nailed it amazing [Music] Bree is with us in Raleigh North Carolina happy new year Bree welcome to the Dave Ramsey show thank you Dave I see on my screen you're that free congratulations I am Dave thank you so much you're all done well done how much have you paid off it's been well and I honestly I didn't even do the final math and tris calculation but the the starting total was 39 lines of credit was 120 thousand dollars Wow okay and how long did this take you it took me about seven years Wow and your range of income during that time so when I started it was about 60 but then fluctuated down also included a divorce in there and then recently and about the 80 thousand mark so okay cool what do you do for a living I'm a therapist oh good for you yeah and the devil is that that was all lines of credit from student loans yeah so I hold my credit report because I wanted to give you okay how much have I even paid an interest over time because I honestly had that many lines of student loans that I couldn't even you can calculate all the math and go back and look far enough to see okay well how much was in the actual final payoff total with all the interest and whatnot but I remember when I finished school and I was totaling like okay well how long do I have to live at mom and dad's before I can actually you know live like a real person and and looking at the debt that I have to pay had to pay off it was $120,000 when I started and yeah so it's how much that was created a long time to do 120,000 it sounds like you've been on quite a journey of life how much of that was done recently in like if you kind of gotten the ball rolling and you hit a bunch of it recently yeah yeah so about nearly three years ago I had a bit of a career change and it was hard you know I mentioned that I was divorced within the last few years as well and nice at the time was frequently in and out of jobs so I was doing just a lot of all of our expenditures and my student loans just on my income and it seemed like okay well what what can I do that is really going to get the ball rolling on this and so I decided to become a traveling therapist and did that for a few years which which really really helped because I was very stressed in the job that I was working at for the first several years out so how much did you pay off like in the last two years Oh God in the last couple years it might have been about $40,000 in the last couple years it was it was quite significant so you've been moving though once you kind of got past some of the drama you've been moving the needle more on the math yeah yeah that's maybe a good way to look at it and you know I have a very supportive family and my brother is actually who turned me on to you he's a big fan of yours and so when you're trying what do you tell people the key to getting out of debt is oh god honestly staying focused yes and I feel like I hear people say that a lot on your show so not to disagree with everybody but I feel like that's a big part of it and honestly I I feel like I'm not to insult myself I feel like I'm a bit of a slow learner it honestly took a lot of practice to to be able to say no to things and then you just kind of increasingly say no to things and if you know you look at me in pictures from when I started getting out of debt to now you know my hair kind of gets darker because I stopped spending money on getting it dyed all the time and I've actually lost you know probably 15 pounds just from you don't say no to going and eating out and things like that which you've always said but honestly it it took me time even though I read your book and it's like yeah this is really good advice but it takes time to learn how to say no to yourself and to others to be honest it was your biggest cheerleader your brother probably my brother yeah my brother John and I mean my parents are really supportive you know there are very religious people and just my mom always saying that you know and I was so nervous to talk to you and I called her right before talking to you and she said you know this is a sharing experience and you know everything you do is it's you know just working up in a pyramid it gets you closer to heaven and whatever you're doing and whatnot and yeah and she just thought would always tell me you know don't worry about the money you know you're never going to live under a bridge because that's certainly how it feels sometimes whenever you have such a large amount of money to pay back and be free now oh my god it feels incredible and when I when I made that last student loan payment and my boyfriend was sitting next to me and I just cried it's like all I could do was just cry and I knew that I would be here eventually but when you're climbing that hill trying to get there and especially when you have setbacks and just personal problems that kind of kick you in the butt a little bit I can't believe this is where I'm at for the island way to go we're proud of you congratulations very very well done good job Bri all right we got a copy of Chris Hogan's new book for you and we'll soon be announcing that it's a number one bestseller take us till about next week to prove that but we're pretty sure that's where we are it came out that day it's called everyday millionaires how ordinary people built extraordinary wealth how you can to because that's your next chapter Bri that's the next thing you do now that your debt free all right Bri and Raleigh North Carolina one hundred and twenty thousand dollars paid off in seven years making sixty to eighty while on of the journey count it down let's hear a debt free scream yes thank you to my parents and Tyler and my brother John my sister Aubrey and the Frances and Winchester and three two one [Music] congratulations kiddo very well done proud of you man I tell you what sometimes the numbers are impressive and sometimes the stuff you fight through while you're doing some numbers is impressive and you just have to know where you are and which one's your deal you can do this you can do this you got this open phones at triple eight eight two five five two two five Dustin is in Indianapolis hi Dustin welcome to that I Ramsey show okay thank you for taking my call sure what's up just a real quick question I'm a firefighter we have 457b and I'm not contributing to it right now because I'm in baby step to good but nationwide manages that and I know I've heard you say not to use insurance companies right and it seems like they're more of an insurance company than a investment company defo what is that all you've got some 457 you know I have a 403 B or a 401 K also no we just cover 457 well we have a pension yeah okay and a portrait because before I did anything in the 457 I would max out my Roth are you married no okay I'd max out your Roth which is six thousand a year once you get there that's not going to take you all the way to 15% of your income and then I'm going to investigate the options that nationwide is offering in your 457 457 is deferred comp which means you're deferring your putting off your compensation and if you don't receive the compensation they don't charge the taxes on it that's the reason it's pre-tax because you're just haven't gets money you've never been paid yet so instead of paying you they put it in this account and don't pay you yet that means it's deferred compensation that's the concept of a 457 and so if you can find some options that you're looking for two things on these nationwide options you're looking for the stinking fees which is where they'll kill you and you're looking for the rates of return and if they are somehow accessing mutual funds in that and you can get some stock market kind of rates of return ten twelve percent average over a large number of years then I'm still going to put some in there but my my warning flares go off when i hear a life insurance company is running the 457b that's not necessarily well a hundred percent of time investing through a life insurance companies a bad idea is it so bad at idea in this case because it's not whole life life insurance it's not universal life insurance it is a 457b so you know it may not be a bad idea it may be okay an okay idea it's never going to be something where you're probably gonna look at wow that's the best thing ever that's just not gonna happen when you when you hear life insurance around investing our insurance company around investing that's just not what they do well you don't go the transformation to get your store to get your muffler fixed it's that simple you know just don't know why we know so anyway that's what you do max out your Roth coming up next Chris Hogan's going to give us an update on the everyday Millionaire tour calling in from New York City to the lowly Dave Ramsey show this is the Dave Ramsey show [Music] hey guys George Campbell here with another minute money hack I'm here at Cody's automotive in Franklin Tennessee and I'm super revved up to talk about car hacks today now I know you're thinking what does George know about CV joint boosts intake manifold gaskets and clutch pack pistons well I know less than you think that's why I have friends like Cody hey Cody here's how this works I'm gonna start the clock and we're gonna take this thing from 0 to 60 seconds and well 60 seconds let's do it here we go don't overpay for gas you can download a smartphone app like gas buddy to find the cheapest gas near you also you can use a GPS app like Waze or Google Maps to avoid traffic jams and find the best routes while you're at it some shops will repair your tire for free regardless of where you bought it and speaking a tire pressure your recommended tire pressure is actually in your door jamb usually it's around 32 psi I like to run mine around 34 35 you'll get a little better fuel economy that way to clean your teeth and your headlights with the same product good old-fashioned toothpaste just rub some on a damp cloth and put a little elbow grease in it I like to use lemon pledge it works great and it smells good too use an app like RetailMeNot to find great deals on oil changes near you a lot of shops lose money on oil changes so don't get sucked into unnecessary repairs don't overpay for car insurance connect with an endorsed local provider in your area they shop the top companies to find you the best rates and thanks to Cody and Cody's automotive anytime George and there's your minute money hacks [Music] we all have smartphones isn't it time for a Smart Plan pure chalk USA offers simply smarter Wireless that covers 99% of Americans stop overpaying for Wireless unlimited plans start as low as $20 per month and include the same great coverage you never pay for any data over cheese and pure talk USA never turns off your data no contracts no hidden fees no surprises if you're thinking are absurdly low cost means less coverage think again your talk USA operates on the largest GSM network in the u.s. to ensure you're connected virtually anytime anywhere and our 4G LTE network provides the fastest internet speeds like more expensive carriers you can keep your same phone and your same phone number add multiple lines to save 20% off your total bill go to pure talk USA are and do something smart today unlimited talk and text plans start at $20 per month no contracts no activation fees no reasons not to try come to pure talk usa.com will see how much you can save enter this promo code to receive 50% off your first month [Music] hey folks on the screen right there in front of Kelly you'll see the man himself Chris Hogan is waiting on the line all the way from New York City we hope he's having a good time there very exciting day for him the launch of everyday millionaires is here if you don't have your copy you've been living under a rock people this book is everywhere and we've heard the feedback the stats are incredible the largest study ever done on millionaires over 10,000 if you don't have the book there's still time to get it now just head to Dave Ramsey calm just 20 bucks we will send you a copy and it feels great I got to say you got to get your hands on a copy just for that alone and Chris has never looked better so we're gonna talk to him on the line hear from him see how the day is going I know he has been up since the break of dawn pushing this book on media doing signings all the stuff let's get to it [Music] well this place around here is on fire and this guy's on fire because today is launch day that's right for two years we've been working on this project and today the baby's born yep every day millionaires is happening and number one best-selling author Chris Hogan on the line with me from New York City hey Chris how's it going out there I guess I need to push that gum button there y'all how's it going out there it's going fantastic we've been super busy what happened a lot of fun very cool well the parents on Fox and Friends this morning was amazing and it looks like you've had a busy day with some of the local television and radio appearances all over America and certainly Sirius XM Town Hall huh yeah the Sirius XM town hall Dave was fantastic it was loaded up with people there we had an opportunity to doing and care and honor and about the bank that we took questions from the people that were there and we had a blast very cool so what's the lineup tomorrow for your media well I've got some more to do today I'm gonna theology in France came with her money podcast here in just a matter of a minute then tomorrow I'm going to be doing meeting up for Women's Day I've been meeting up with Buddha as well as Johnson finance to kick the day off that's about the things of Africa and you got a Maria Bartiromo in the morning right yes yeah on FOX Business so lots of stuff and the book signing tonight in New York folks is in the Tribeca area the Barnes & Noble there on Warren Street at six o'clock make sure you come out to the book signing or whichever city Chris is in in the next three weeks he's gonna be all over America and because the smart investor team has sponsored this and the local smart investors will be there and we're giving away $1000 no purchase necessary must be present to win so you need to come out to the book signing and sign up for that even if you're not going to buy a book but of course you're gonna want an every day millionaires book because well you want to be and every day millionaire Chris the largest study of millionaires ever done most of the conclusions of the study were fairly predictable but a few of them are shocking it really was Dave I mean you know see and to think a lot of people believe people are inheriting their money that's the only way that they were able to build wealth but to know that anything millionaire anything and so these are people that are first generation building wealth focusing consistent over time yep over time the the 401k and getting their home paid off avoiding debt steady investing these are the things we heard from them time and time again it's the very same things day that we said teaching people Iran so since all these years from seeing people win it's gotta stop own eyes I just want to help with a lot of America to understand there is a plan there is a process and available to you too so don't be included you know parking get plugged into the plan yeah absolutely and what we found is is that this is not a thing of privilege we found folks of every color every region of the country every age group and really the one thing that they had in common was they believed that their destiny was in their control yes yeah 97% of the millionaires that we said he believed they control the destiny of people ninety seven percent of all of them that means these are people that are taking responsibilities in focus and then chasing down their result it changes everything and you know the other thing was they didn't grow up for in rich families even the vast majority of them were middle class to lower middle class weren't they that's like families that were lower middle to lower income family so again these are people that have struggles they had the problem but they saw their own permissive what they they gave themselves access to information and they really started to move and their knowledge of budgeting getting out of debt and also investing you know signing your own permission slips a big deal I remember school that we couldn't sign our own permission slip that's right you have to have your parents sign it but guess what as adults we get to sign that permission slip so I just want a encourage everybody out there listening if you haven't already made the decision get that decision made get clubbed into Financial Peace University get put into every dollar and stock to take control of your money well The Millionaire book looked good bus looked good on Fox as well so you guys are having some fun out there running around a lot of energy around the first several days especially and I keep up the good work Chris we're proud of you this is a great book it's a great project and we're proud that you're the you're the front man on this thing this is gonna be another number one bestseller for you well okay bye thank you I appreciate all your support we are absolutely out here buster that having fun and looking for the bait so individually heading on for Chicago all right be careful we'll talk to you soon man good times good times Chris Hogan number one best-selling author of the book retire inspired that's his next number one bestseller it's called every day millionaires how ordinary people became ordinary people built extraordinary wealth and how you can too now again the book signings are tonight in New York City Barnes and Noble at 6 o'clock Chicago Barnes and Noble on Wednesday night at 6 o'clock and that's the Skokie Old Orchard storm Skokie Illinois area and in Nashville here at Ramsey solutions we're gonna be doing a town hall meeting that'll be broadcast over Facebook and over YouTube for free and over about 63 television stations as well I think you've picked it up now and that's on Thursday night and if you've got one of the free tickets to that event you can get your book signed and we'd love to have you come out and do your book signing there in Nashville as well it's at our organization here at Ramsey solutions in the Brentwood Tennessee area and then Friday night January the 11th is coming Friday is Dallas Texas the Barnes & Noble at Lincoln Park Chris will be there on Saturday all of the rimsey personalities will be in Dallas including me because we are doing the smart conference there the day long event it is sold out Thank You Dallas we appreciate you guys and all of you coming in from all over the country Chris will be speaking there on the subject of how to be in everyday millionaire and signing his books there in Dallas Monday January the 14th is Aust Houston Texas Tuesday is Austin Wednesday next the following Wednesday is San Antonio and so on down the line we'll keep you up-to-date and you can find everything at Chris Hogan 360 on where Chris is going to be when he's going to be where the appearances are where you might be able to see him talking about this and which of the events that you can plug into and be signed up for that thousand dollar giveaway you don't want to miss that this information is absolutely life-changing as far as I'm concerned because here's the thing what you want to do is find out what someone is doing that is in a place that you're not and then you won't do what they're doing I give you an example I ran into a buddy of mine the other day and he had lost a hundred and thirty pounds he lost a Backstreet Boy I mean this guy unbelievable I'm like dude like half of you is gone what is the deal and you know what I said then what what question would you say to him not only out of mild curiosity to encourage him because he's so impressive but also a little bit for your own information what I say to him you know what I said to him I said how'd you do that what'd you do I want to hear the secret sauce on losing 130 pounds now you know what he told me exercise more eat less right I mean no kiddin we kind of knew that right but it's inspiring to have a guy standing in front of you that is doing something that you'd like to do because I like cookies I'd like to do that and I want to hear how he did it so what's the thing how do you do this how do you become a millionaire well you don't talk to broke people with an opinion and you don't talk to people with political agendas that want to keep you broke and want to make you think that the government is your savior what do you want to do who do you want to talk to if you want to be a millionaire millionaires you want to talk to if you want to be married a long time you talk to people that are married a long time you've been married 14 times I hope this one works for you but I want to read your book on marriage you've been married 65 years I'm gonna have a conversation with you over lunch what's up with that I only got 36 under my belt I want to know what's going on so how do you find out how to be a millionaire you talk to millionaires we did we talked up 10,000 of them and the results of those conversations and surveys are in this book every day millionaires this is the Dave Ramsey show [Music] [Applause] [Music] our high health care costs getting you down are you confused trying to navigate the health insurance world do you wish you could find an affordable biblical solution to your healthcare costs based on New Testament principles Christian health care ministries are CHM helps Christian families churches and businesses join together as the body of Christ to share their major health care costs as a CHM member you can go to any doctor or hospital you prefer you aren't bound by an approved health care provider list and all treatment decisions are made between you and your doctor no treatment approvals are ever part of the CH and experience for tens of thousands of Christians CHM is a trustee affordable and biblical health care solution and it can be the solution for you as well visit us online or call today to learn more about how we can serve your family church or business Christian health care ministries one eight hundred seven nine one six two two five CH ministries dot org [Music] so it's the first a year when we always talk about resolutions transformations goal-setting that kind of stuff it's always good to reset and rethink in a very real and a real practical way what you want to change this year gonna change something in your money you want to change something in your weight-loss you want to change something in your relationships you wanna change something in your spiritual walk you have to be very intentional to do that and truthfully the people that win in this world are the ones that do set goals and then go after them they don't always hit them but there's winning in the going after and so there's some basic things you want to remember about those five things they have to be or they're not really goes number one they need to be specific and number two they need to be measurable I want to lose weight great you won't it is measurable but it's not specific and so it I want to lose 30 pounds now we've got something that's measurable and that is specific then you put a time limit on it and the math starts working that's number three when do you want to hit the goal because until you say when you want to into goal you don't start asking yourself what has to be true so the reason for setting a goal is you ask yourself okay now that I've said this what has to be true about me about my life that's not true today so I've got to go change some stuff to hit this goal so I want to lose thirty pounds when and how many times well I want to lose it in 90 days okay in three months I want to lose 30 pounds see the math is real easy you're already starting to do it with me it's ten pounds a month right two and a half pounds a week and you start asking yourself what has to be true for me to hit those goals well what has to be true is you're gonna increase your water intake decrease your sugar intake drop the bread and increase the cardio to a minimum of 30 minutes a day we know these things about losing weight and we all kind of know that you don't walk around a little while you kind of know what it takes you don't need to Oprah to figure out how to lose weight that's what you do so you start asking yourself well that's three three well I've got to lower my caloric intake and increase my heart rate to the sweat point at least 30 minutes a day you do those things you will start to see some weight loss in that three-month period of time and then you can measure against your goal and see how you're doing and you should measure against your goal and see how you're doing the fourth thing is the goals that work must be your goals my wife wants me to lose weight you will never lose weight my mother wants me to get my money together and pay off my debt you never will my father always wanted me to graduate from college you never will until you decide you are going to hit this goal for you when you emotionally own the goal that's when you have a goal until then you do not have a goal now once you've done those things actually a lot of people do those things they have a specific measurable goal with a time limit and it is their goal not their most go not their wife's goal not their husbands go a lot of people do those things you know what messes everybody up they don't do the fifth one the fifth one is the magic the fifth one is the secret sauce it's what makes it happen what's the fifth one you got to write it down the Bible says in Habakkuk two to write the vision and make it plain something happens in the neuroscience something happens in the spiritual realm something happens in our little brains when we write it down when you write down big piece of paper printed out 78 point on your computer whatever you do I'm going to lose 30 pounds by this date put it up there on your mirror write it down keep it where you see it ever so often I don't care how it is write it down you can hand write it you can type it on the computer but don't leave it in the computer put it physically so you see it ever so often something to remind you and when you write it down it's like your commitment level changes it's like you start going Wow if you want to add to that show it to a few people now you got peer pressure I'm gonna run my first marathon this year I'm gonna run my first half marathon this year I'm gonna lose this way you start sharing that and you get that community encouragement that community accountability I thought you said you were gonna do this stuff what are you gonna do and you know they start holding you accountable changes everything so set real goals this year they'll change everything for you specific measurable a time limit they're your goals and in writing I've met some furry friends here in the lobby I know I'm not talking about this gentleman's beard I'm talking about the squirrel people but tell me you're all Ramsay fans where you from I'm from Orlando and oh we're all from Orlando Orlando how do you know each other I knew her cuz I coached her in roller derby and I worked with her with a previous job and your parents are known for this oral if we're actually on our 40th anniversary when mom retired last year and I just took over the business or doing our 40th anniversary tour starting this week Wow well thanks for being here Twiggy the waterskiing squirrel folks sacrifice determination you can be intentional you gotta be on the same page they were calling to let you know we're debt-free house and everything you have done really really good and you're not gonna quit then a huge witness for us to be able to share that it was time to get serious intentionality people this is your show America at 22 what I know now if our life would be better is the show that's changing the world you live it [Music] live from the headquarters of Ramsey solutions it's the Dave 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 open phones this our Happy New Year we're glad you're here open phones a triple eight eight two five five two two five that's triple eight eight two five five two two five Aaron is with us in Columbus Ohio hey Aaron happy new year hey hey Dave how are you better than I deserve what's up so my wife is and her family are have been on the Ramsey plan for a while which is why when we got married seven months ago she came in with no student loans I wish I could say the same for myself I have approximately 73,000 in student loans and I know that you are not a fan of the public service loan forgiveness program I'm about three years into that program and we have 55 in cash 55,000 in cash and we have about ninety two thousand total just wanted to get your thoughts on what we should do moving forward Wes our ninety two thousand in total what with our retirement and Roth oh okay okay and so an oculus mounting return not counting retirement all you could get your hands on would be 55 correct you don't have any investments that are not in retirement I believe we have a few investments but not too many okay all right which would add to the 55 figure then okay yeah and you have seventy thousand dollars seventy two thousand dollars in student loan debt what other debts do you guys have that is our only debt and so I guess my concern would be you know if I continue doing the public service you know I potentially save $50,000 and your household income is what currently 90 but my wife will be returning to school in the fall to get her MBA from Ohio State and how are we paying for that we well as a staff member at OSU I get half off tuition for her and C's on track to potentially get a full ride okay all right good all right so we have to pay cash for it you understand that you have to pay for this education right yes and that's why we're we're thinking of we don't want to take out any more loans for her right we have to first make sure that we don't borrow anymore that's rule number one of getting out of that yeah now the student loan forgiveness program the problem with it is twofold one it is 10 years of hostage your hostage to this thing for 10 years there are some student loan forgiveness programs that are 3 years and some that are even 5 years and they give away a fifth a year or 1/3 a year and the in the underserved areas and those are fine the ten year is just too long for you to be a hostage number one number two it's not working the first articles that came out 10 15,000 people applied 96 were granted I read an article over the holidays so far only 206 people have been given this forgiveness 206 people out of millions and so I don't like these odds the government is screwing you is what it is and so no I pay that off as soon as you possibly can now we've got to have the money for the NBA so we need to make sure we exactly what we're getting into there and so you may want to hold off just a little bit on paying it down but once you figure out she's got a free ride that 55,000 goes at this thing and then you knock out that other 7,000 or 17,000 as fast as you possibly can get yourself out of debt because it's not working man I mean you don't want to be one of the millions of people that apply for this in 206 people get it that's called dashing your hopes on the rocks right that's what you know it's almost like playing the lottery right there so no thank you no thank you and thank you for seven more years of student loans hanging around Sallie Mae hanging around your house Oh ugly woman get her out of your house Katie's in Topeka Kansas hey Katie welcome to Dave Ramsey show thank you I have a bit of a situation back in October of 2017 I am self-employed and I bill insurances to get paid well in 2017 in October it just stopped and I called the companies they said everything's in the system I've had a lot of runaround long story short I didn't get paid October through March in April I got paid for what I did in March in May I discovered they were sending some of my checks to the wrong address and then I got stuff for what I worked October November and December of seventeen in the summer at 18 what are you doing starving I'm a therapist don't you do a therapist for somebody else this sucks it does but I wouldn't make nearly the money I didn't make any money right now you're limb hade all of a sudden things started coming in I got paid for this summer I got paid for this fall yeah but it scares me to death because we did we were we had started your program before and the thousand dollars was gone quickly and then all of a sudden you know we're just started FPU and we're trying to do a budget and everything seems to be working out I so what are you making a year as a therapist if you were paid a paid on time I hate on time I should be making about $80,000 will you make $80,000 wasn't there pushed around here what I was working before for somebody I was making about 40 yeah about that but there's marriage counselors in your area that are making that or people that are doing individual practices that are making that in Topeka Kansas I promise you but I am doing the individual practices you're just doing it for them you're doing it for government for people that are being paid for by the government yes you need me and I'm accepting other instances from hoping that by diversifying things will get better yeah I would diversify out of the business of the government my question is so I'm afraid to just have a thousand dollars I feel like I should be having more like baby step three and then digging yeah yeah I don't think you need to be in the baby steps until you get your career crisis solved okay because you don't know what your dadgum incomes going to be I mean you went several months without being paid and somehow you think that's okay because you finally got paid it's not okay I'd be getting away from this the government sucks and the way they're treating you sucks and so you need to not just diversify your business model you need to change it and get away from this to where people pay you when they come in for therapy and you know if you want to do it slowly and gradually keep a few of the government clients and that's fine but by this time next year I'd be out of that business not waiting around for these people not paying me when they're supposed to pay me that's ridiculous and you're way too accepting of that draw some boundaries kiddo change your business model this is the Dave Ramsey show [Music] [Music] step one one thousand dollars to start your emergency fund step two pay off all debt using the debt snowball step three three to six months of expenses in savings step four invest 15% of household income in Roth IRAs and pre-tax retirement step five college funding for children step six pay off house early step seven build wealth and give are you ready to be the voice of change in a family's life you see it every day the people you care about are struggling financially living paycheck to paycheck driving cars and living in homes they can't afford you know there's hope for them you know you can make a difference with financial coach master training everything you need is at your fingertips I want you to have the spirit and the awareness to know that you can help anybody [Music] opportunity to have impact on people's lives and on your own life that's unbelievable [Applause] you're gonna come in and really be able to guide people and help them start moving in the right direction if they apply this information that does work you're gonna know this process better than anyone else out there what we want to do is help people to make better choices for their future and that's huge [Applause] [Music] you have that heart to be able to help you are needed join the mission [Music] one of the things that makes the Dave Ramsey show unique from other shows is that we genuinely care about our listeners that's why we're intentional about choosing advertisers that we know will serve our listeners well blinds.com is no exception for years I've been telling you how amazing these guys are blinds.com offers high quality window treatments at unbelievable prices and their customer service is unbeatable they make buying measuring and installing blinds fun affordable and shockingly easy and if you accidentally miss measure or pick the wrong color they'll remake your blinds for free when you're looking for window blinds the only place you need to go is blinds comm with blinds comm you get free samples free shipping and when you use the promo code Ramsey you'll save even more take advantage of this week's special promotional offer when you go to blinds.com and use the promo code Ramsey [Music] hey folks if you're a fan of podcasts I've got one for you it's the Dave Ramsey show but here's why you need to go get it right now we have a special New Year's edition of this podcast which includes the first lesson of Financial Peace University on audio that's right we have some brand new lessons all new freshly updated you've got to go get it here's how to do it Dave Ramsey comm / podcast click on the de Ramsey show and we've got some links here Apple podcast Google podcasts Spotify wherever you get your podcasts go look for the episode that is called special New Year's edition because that is the first lesson of Financial Peace University you're gonna love it because it's gonna teach you how to win with money from Dave Ramsey himself [Music] well if you didn't know we do the Dave Ramsey show in the rim see solutions headquarters on the glass and folks drop by and see us and we have a really cool bookstore and the coffee is free and the homemade cookies and breads and things are free and it smells like Mama's kitchen when you walk in and of course we're in Nashville and so we always have celebrities swinging by to see us you know we'll have a Brad Paisley drop by or a John Rich from Big and Rich or whoever drops in and sees us and I just got to meet another celebrity just a minute ago at the break now have you ever been I mean for years I've gone to the Boat Show because I'm a boat guy and if you ever been to the Boat Show and you see the the skiing the waterskiing squirrel you ever seen the waterskiing squirrel well I just met Twiggy the waterskiing squirrel in town for the boat show there's Twiggy number nine his family's been training these squirrels since 1979 so Twiggy nine and I just had our picture made together I'll post it on Instagram at the break because you have to see this that's right and yeah I mean the waterskiing squirrel I'm a big waterskiing guy so big bear footer so you know that's a big deal to get to meet Twiggy the water skiing squirrel you know chuck best in his family stop by they were in town to do this and wanted to come by and say hi and well you just never know you never know who's gonna swing by the Dave Ramsey show on a commercial break so there you have it open phones a triple eight eight two five five two two five our question today comes from blinds.com they have a 100% satisfaction guarantee that means even if you miss measure you pick the wrong color they will remake your window blinds for free you get free samples free shipping and with the new promos they run every month you'll save even more use the promo code Ramsey to get the best deal rules and restrictions apply of course Jen is in California she says how do I do that that snowball when I'm behind on my payments with credit cards on no longer no longer making the minimum payments I'm longer making the payments on I don't know what she's trying to say that doesn't make sense okay so you don't do the debt snowball when you're behind on your payments you don't even start the baby steps when you behind on your payments the first thing you do is get current then once you're current on your payments now that's assuming you're like two three four months behind so they're like that you're two months behind on the rent your month behind your car payment that kind of stuff before you start the baby steps you get current everything you do is you just work to get current you just every minute dollar you can milk out of your budget and the first things you get current on are food shelter clothing transportation and utilities so car payment house payment light bill water bill are your first things once you're current on those then you get current on other stuff you current on secured debts next meaning if they have a lien on you have a boat payment you get current on that anything that has a lien on it you get current on things that have a lien on them next that's a secured debt then unsecured debts are the last things you get current on and that's credit cards in your example Jim and that's what you do so absolutely what we're going to do we get current on everything first then we start the baby steps and baby step one is save a thousand dollars a little minature beginner emergency fund and then baby step two is that you need to start your debt snowball at that point but you don't do that while you're behind on your payment's that's not how this works Tara is with us in Denver hi Tara welcome to the Dave Ramsey show thank you happy new year Dave Happy New Year you what's up so I have a question my husband went from making eighty two hundred thousand dollars a year what the hours and stress were not worth it so he took a better job less hours but a ton less money so he went from eighty to a hundred down to like 36 so we sold a piece of properties finished baby step one two three so we still don't make a ton of money but we have fifty thousand dollars left over from selling that property what do I do with it do I open IRAs for us and our children do I put it towards mortgage do you work outside the home no I do not not tell my son start school in August I mean I do every here and there but not us what did your husband used to do he worked at a coal mine and what does he do now he works for the CDOT Department of Transportation now what's he going to be doing in three years hopefully moving on up and being the boss I don't know at TDOT TDOT [Applause] colorado yeah okay cidade I'm sorry I'm in Tennessee I heard heard it wrong okay anyway yeah I just I get that he needed to get out of the coal mine I got no problem with that but I think his choice sucked the $36,000 drop is that's ridiculous for your family and so he needs a game plan to double his income okay I'm gonna go back to work and a few I mean like no I'm talking about he he used to make $80,000 a year I want him to try to get back that direction again and government a government job is not going to do that okay he took too big a pay cut your family he's not gonna make it on 36,000 when you were used to operating on 80 so this 50,000 you're asking me what to do with you guys are gonna end up going through it is the problem right I think making it now you're doing a budget on 36,000 and not touching your savings no it's it's interesting but it's getting done at this point yeah your your long-term operation of your family won't work on 36 thousand after you've been used to 80 right it cannot it can be done but we've got it we have a career crisis as still in the making the move away the move away from whatever miss he was in I got no issue with that that's fine he was in a horrible situation okay I got that so move away from it but now let's the next step is now that we've at least got a little money let's hold that 50,000 to the side and let's get his career crisis solved in other words it might sound like this okay honey what do you want to be in 10 years old is he uh he'll be 40 in March perfect well you won't be doing when you're 50 55 years old because it's not this okay it's not this yeah I'm gonna live like this for a decade with 3% government raises and a few things like that so well you won't be doing that may mean we open a business and we use some of this money to do that it may mean he goes and takes some classes and puts some different tools in his belt because he may want to move in a completely different direction these ever I've always dreamed of being a dot dot dot well this is the time to rediscover those dreams recover those dreams and that 50,000 may fund some of that that then in turn causes your family to have a household income from your husband without you being back in the workplace yet of backup 6070 thousand bucks and I want him had anything at least that direction on like a three-year schedule and I may need some of that money to help him get there so let's park it for right now and let's finish this career discussion if he continued to work that what he was doing and I took some of the 50,000 and went to nursing school be okay okay okay but I'm still not okay with him right he still needs to go do something because all he ran he didn't run to something he ran from something you follow me right and he just got the first place that you know he's raining hard and the first place that wasn't that had a little roof on that he ran under the roof right it wasn't the hay wasn't the house he chose though you know he's just he's just trying to get in out of rain and that's not an OK way to live the second half of your working life so I want him to have a dream too and maybe he goes to nursing school with you I don't know I don't care but anyway you know let's get his career track adjusted and if you want to nursing school - that's a real good use of that 50 grant so park it to the side and let's use it on career or careers or something along those lines or if you don't end up doing that and you still get the end comes up that's fine - we'll use the money other stuff later if we just simply chuck it down on the house house payment doesn't change and we're trying to make it on thirty six thousand we can't breathe and then that's not a plan on a plan so hey thanks for the call this is the Dave Ramsey show [Music] [Music] everywhere returned we hear negative financial news that everyday people can't succeed that the American Dream is dead but is this really true we went on a hunt to see what a millionaire really looks like well welcome everyone I'm gonna ask you a series of questions and if you can answer yes to any of the questions come across the line we hear that wealth is gained through family money or just pure luck how many of you inherited a large sum of money [Music] people believe that only those with an advantage in life can truly be successful if you've had an individual income of 250,000 or more please come forward maybe you think that if you could just get that raise or that promotion it would all work out but what if that big break never comes can people with everyday jobs like teachers and firefighters build real wealth what about the self-employed for the single parents that are doing the best they can to provide for their kids or those who grew up and lower to middle income households do they have the same chance at success or can ordinary people build extraordinary wealth I've got one final question for you how many of you are millionaires all of us are tempted to believe that new gunnars had a head start or some kind of advantage in life but those are just myths there are everyday people and they're hiding in plain sight and I want you to understand that anyone can become a millionaire no matter what you come from and we want to show you how we've conducted the largest study of millionaires ever and I wrote a book about how they achieved it and the results will shock you what were their habits their behaviors what did they do that most people don't these insights will inspire and challenge you it doesn't matter where you come from you too can become an everyday millionaire this is your invitation [Music] [Music] what is it that you can do to become better to take your life more seriously how much you have a rim plan for your life and I want you to have it for your money learning to steer clear that helps you live that you want to live the caliber of your life is going to depend upon the choices you make right in [Music] we all have smartphones isn't it time for a Smart Plan pure chalk USA offers simply smarter Wireless that covers 99% of Americans stop overpaying for Wireless unlimited plans start as low as $20 per month and include the same great coverage you never pay for any data overage fees and pure talk USA never turns off your data no contracts no hidden fees no surprises if you're thinking our absurdly low cost means less coverage make again your talk USA operates on the largest GSM network in the u.s. to ensure you're connected virtually anytime anywhere and our 4G LTE network provides the fastest internet speeds like more expensive carriers you can keep your same phone and your same phone number add multiple lines to save 20% off your total bill go to pure talk us a.com and do something smart today unlimited talk and text plans start at $20 per month no contracts no activation fees no reasons not to try come to pure talk us a calm and see how much you can save enter this promo code to receive 50% off your first month [Music] I'm here in Martha's place catching up with Melissa we haven't seen each other in weeks what's new I've been away at Christmas break I've had the best Christmas George I saw some pics I look fun what was some highlights okay highlights new grandbaby born December 10th photos soak you in that picture that is my three sisters Sharon Cheryl and Rosie loving on towns that we were having the best time Christmas at my sister Sharon's house they are just the best hands and that's all not family I come from a bluegrass country music family and jam sessions a lot of picking lots of instruments I sing along and I mainly dance that's what that's the key and I saw your 88 year old dad is that right who's playing the mandolin just rocking it oh yeah he's a fantastic musician still he is so awesome he plays mandolin and piano and he kills it well I love seeing you has some good family time and you know what I feel like we're family too so it's good to be back with family in the new year [Music] [Music] [Music] this is the Dave Ramsey show we're glad you're here America matt is with us in Los Angeles hey Matt welcome to the Dave Ramsey show hi Dave how are you today better than I deserve what's up so I'm an FPU coordinator and one of my one of the couples in my class had a question regarding their 401k so they have options and all of the funds except for the International and we dug into all three of the funds large-cap mid-cap and small-cap and each one of the funds that are available to them already have a 20% investment and non-us stock so with that being said would you advise for them to still have an international fund or is the diversification enough and their current funds to continue with what they are doing they don't have an international at all no they do not they don't have a global no Globo no world nothing like I said mostly just growth funds growth and income and aggressive growth funds no international available to them oh yeah I would go with the three that they've got I mean that if they found out found three and the three other categories that work and run with that and then if they're gonna reach over at some point and do Roth IRAs I might load one of those up a little heavier with international to offset even so even though they're already have the 20% invested in international through those three funds you would still advice for them to have an international fund it's pretty standard most most mutual funds have some international in them that's not unusual so that doesn't really change it so it's not the end of the world either way the whole point Matt and you're doing a really good job thank you for being a coordinator and thank you for digging this deep into something like this and looking at it here's the thing 90% of why people build wealth is that they steadily invest in mutual funds it's not the expense ratios and it's not the diversification those two things are just icing on the cupcake you follow me so the graph that the fact that they're doing these three and that they're out of debt and that they're asking these questions and they got a guy as smart as you in their corner the fact that all of that is there they're gonna win I'm not worried about them it's not like oh god they're bankrupting cuz they don't they left out one of my funds you know Lord no it's nothing like that at all the whole point of diversification is as you know you've taught the class and led the class and you've heard me say it in the investing that said the Bible says in Ecclesiastes spread your said spread your spread your assets to seven yes to eight because the disaster may come upon the land the Bible is the first place the diversification came up and so spreading your money into different categories gives you a different level of safety and usually as a result of different a better rate of return but there's no magic perfect formula it's kind of like you know I tell people never take out a paint house payment there's more than 1/4 of their take-home pay but if they take out on a payment that's 27% of their take-home pay well okay I still got the point across right it's not the end of the world it's not like they're not gonna make it because they're 2% over or something like that or the other guys not gonna make a two hundred million dollars more because he's a twenty three percent you know that kind of the point is the principle of diversification and in something that has a good track record and the steady investing in that that's what we've got the dragon that we've killed the dragon we slayed the dragon when we did that you and I did well for those folks but but it's good to get down in the analysis and learn some things in there too so I like having international in there it's a good idea but if they don't have one well we're not gonna say don't invest you know let's invest in those three and when they step over into the Roth load it up a little bit on international let's rock on so a really good question thanks again for being such a good coordinator these Financial Peace University coordinators folks there's fifteen twenty thousand Financial Peace University classes starting right now and the the nine week class Financial Peace University right now if you didn't know when you buy the class just the nine week class you get the one-year membership to financial peace which is everything online you the one-year membership to that free for the first year Wow and so these coordinators that are leading these classes they make every thing happen they fix everything and you know guys like that right there you know he's leading the class there's people coming in there they've got questions he's got answers you know to be a coordinator you don't have to be perfect you don't have to have a master's degree in finance you don't have to go to a class to learn how to do the class will answer the main questions that was a pretty ticky-tacky question there and there's a good one but I mean you don't have to know that kind of stuff to be able to lead the class you just gotta be able put chairs in a circle and love people and he's obviously doing that too so this is good times people it's a good time to get in the class by the way the number of people that do their debt free scream that say they started their class and started their Financial Peace University class the nine week class they started that in January the number of people is huge you list these debt free screams what do you do when financial universe didn't finish with zero but my church start teaching in January in January and the number of people that started their whole walk with this thing started their baby steps in in January is it's amazing it's a good time to start in other words really really good time to start Anthony is in New York City hey Anthony happy New Year to you thank you how can I help all right so I've been working at this new casino resort that recently opened up literally I can walk to the place right on I'm making forty one thousand six hundred dollars a year and that's before taxes but I'm noticing very quickly I'm doing more taking up more responsibilities and stuff like that and I'm wondering just because a lot of stuff has been promised to me that just hasn't happened yet and I'm wondering if it's time for me to move on in further my career I guess or expand because I've opened three buildings for this place already basically without my director or boss and basically everyone's I mean even my family's telling me I should go for an IT project manager role which pays on average about 80,000 old are you 24 okay how long have you been with this company done with them for about two years now I opened the because you know as one of only three technicians they had by opening you don't mean you with a manager when it is opening you mean you were doing the IT work yeah okay all right [Music] well I mean if you can shop around and get an IT job with a company that you want to work for making twice what you're making that's kind of a no-brainer yeah the only issue with the whole thing is IT jobs are not very readily in the area that I live in so in order to move up it would require me moving either to New York City or out of the state as a whole where do you live Catskills New York yeah you're not in New York City okay all right yeah you're in a fairly rural community yeah yeah so you're going to have to move to a more I don't know that you got to move to New York City to make 80 grand a night II you can make 80 grand a night II a lot of places but I don't think you can afford to live in New York City probably I don't think I'm gonna make that recommendation right now but but yeah shop around the other thing you can do is sit down with whoever it is it's been making these promises to you and don't be arrogant just say listen I'm very grateful I know I'm only 24 and I know but I also know the work I've been doing over here and I also know what we've talked about now so I need to I need you to help me what do I need to do to make it easy for you guys to follow through and and let me move on up an income because I'm pretty sure I can move to a different city and make double what I'm making an IT I'd like to stay here I can't I can walk to work everything's good I'm not mad but I feel like I'm not that I'm missing something and is there something you need me to do that I've not done in order for me to make more and in order for me to move on up through this organization so asking a question of how you can cause us to happen instead of going in and shaking your finger at them and saying you people need to keep your promises which really never very goes very well when you do that kind of thing so I wouldn't do that so yeah that's the thing let's go and have a conversation with them and then let's also look and see where we've got you know other opportunities around that are reasonable probably from the Catskills to New York City's a bit of a leap you may not want to make may not be the first bite you bite off so good question thanks for the call this is the Dave Ramsey show [Music] hello hey guys we're here at Lake Thompson's house we're supposed to shoot this video about saving money on your electric bill but it doesn't look like he's home but we're not about to pack up waste all that gas and drive back out here later we're gonna conserve that energy and do this thing anyway guess you don't need to lock your doors around here and you know what they say when the cat's away the mice will play let's do this turning your thermostat down 10 or 15 degrees for eight hours a day would shave 15% off your bill smart thermostats make it easy to set it and forget it your water heater is probably set way higher than it needs to be turn that bad boy down to 120 degrees and watch that bill drop lighting takes up 25% of your energy bill but LED bulbs use 90 percent less energy and last up to 25 times longer replace five bulbs and you could say it up to 75 bucks each up to 90% of your washing machines energy goes to heating the water skip the hot cycle and wash everything on cold with a cold water - turkey your refrigerator is the only appliance in the house that runs 24/7 save money by keeping the fridge temp between 36 and 38 in the freezer between 0 & 5 even when your electronics are turned off they're using phantom energy which can amount to 15% of your bill plug all those gadgets to the power strips for one tab shut off like a bottle George wait doing here and there's your minute money hat if you enjoyed this video we've got a whole minute money hack playlist waiting for you right here on our YouTube channel and if you've got some energy saving tips we want to hear them leave them in the comments below you know hard work is in the DNA of this company but if there's one thing that I've learned through the years it's the hard work isn't enough you have to learn to work smarter and that's why I love zip recruiter their easy-to-use platform helps you find qualified people fast here's how it works they're powerful matching technology scans millions of resumes and job seeker profiles all zip recruiter and across its network of 100 plus job boards to find the people with the right experience and then it actively invites them to apply to your job as applications come in the zip recruiter analyzes each one and spotlights the top candidates so you never miss a great match it's so effective that 80% of employers who post on zip recruiter get a quality candidate through the site within the first day it's results like that that make zip recruiter the highest rated hiring site in America and right now you can try zip recruiter for free at zip recruiter comm slash Dave sip recruiter the smartest way to hire [Music] folks it's my last segment for the day we've got about 10 minutes of the show left and I just wanted to say thank you so much for watching it's our first live new show of the new year and we're so glad that you could join us even for a little bit of it we hope you found some encouragement some motivation to achieve some of your financial goals this year we will be back tomorrow with another live show so keep tuning in and we'll see you then [Music] [Music] [Music] [Music] our scripture of the day song was 3311 but the plans of the Lord stood firm forever the purposes of his heart through all generations Herb Kelleher said if you're crazy enough to do what you love for a living then you're bound to create a life that matters start a little thing called Southwest air if you've ever heard of it yeah pretty crazy I love it very very fun stuff very fun stuff so buying a house can be a huge blessing but when you buy the largest asset that most of you are owned at least in the initial stages of your wealth building usually your home is your largest asset and you do it wrong the mistakes are a lot of money you need to have the right information and when I'm going into something that I don't know what I'm doing I don't DIY it I get somebody in my corner that knows what they're doing we've created a free guide that gives you the steps and the things you need to consider when you're buying a home our new home buyers guide starts by teaching you real estate lingo all the way to what to expect at the closing and what happens after signing on the dotted line so that you can buy confidently if you're thinking about buying a home this year check out this guide it is free you can find the right home in the right budget for you and your family and you'll you know you'll have more confidence because you have more knowledge Dave Ramsey comm / home buyers guide Dave Ramsey comm / home buyers guide for AHS is with us in Los Angeles Happy New Year how can we help happy new year Dave good how are you doing better than I deserve how can I help ya so I have a question about 3b and baby step 4 I'm finishing up baby step 3 right now and I'm in no rush to I guess save up well no no particular mergers to save up for anything but I'd like to save up for Mork a better car because I'm still driving that thousand dollar car yeah but but it's still driving well so at the same time I'm not really worried about it but I'd also like to I'm renting so I'd like to eventually save for a house and but you know I'm finishing up three my company matches a 6% for the 401 K and they have a Roth option the first for the first four percent they matches hundred percent the second for that fifty percent so I'd have to put eight percent and I was wondering can I do both like part part investing into my 401k say eight percent so I could get the full match and then and then save in 3b I guess so - so to speak on the side or do I have to pick one or the other no you do whatever you want to I mean any of it's fine obviously the more you put into retirement the longer it's gonna take you to save for a car in for a down payment you don't want to be out of that retirement miss that match for very long and you know that because you just outlined the match you know what you're looking at very well done what's your household income last year I made 63 okay cool and so if you didn't do it once you finish baby step 3 we got to do that for we do anything you know that and then you got a horrible car you need to move up in car ok how much can you save if you really lean into it how much can you save a month towards bond a car probably about 2,500 good ok so we can do that for 4 months about $10,000 car yeah my car could probably bring about I mean I bought it four thousand bucks like a probably about 2500 at least well then then do it for three months about ten thousand dollar car with your $2,500 car sold right you see my point it's not like we're gonna do this forever just for a few months and let's get you a car and and then if you want to start doing at least get up to the match and then above the match start saving for your down payment and once you get it down payment save then step all the way into baby step four for your house down payment because that's gonna take a little longer okay that's a way you could do it but as long as you're gonna get to baby step four within about two to three years if you want to put it on hold and just save get your car and then say for your down payment completely that's fine or if you want to step in and do a partial but for a little while until you get that thing done but listen three years from now you need to be 15 percent going into retirement gotcha either way no matter what you do about three months from now you could buy a lot better car right the nerd side of me wants to keep driving it even though you know it's got two hundred sixty thousand well you need to move you reach a point of diminishing returns it's just part of your story the journey driving the hooptie but you don't want to be in a hoopty forever and I'm not moving you into a $60,000 car moving you into a ten thousand dollar car you can get a lot of a really fine vehicle for ten grand that'll have a lot of life in it right right oh yeah yeah and I think I would go that way and and then let's talk about how long we're gonna and how we're gonna do the emergency fund I mean how we're gonna do the down payment fund from there but you've done a really good job congratulations very well played well played sir andrew is in Tulsa hey Andrew welcome to the Dave Ramsey show thank you what's up well about two years ago my wife and I got a house really good deal of the house which is why we got it mom's friend selling her uncle's house offered to us $100,000 is 135 thousand dollar house right now we're in baby step two we have about thirty seven thirty nine thousand dollars left but we're in but we're contemplating this summer maybe you will sell the house take the equity pay it on the day I also have a collector car that could give us the rest of the way by the summer we'd probably have about $30,000 of debt and we're thinking between the sell the house and the collector car that would all be get our debt paid off mmm what's your household income well about eighty-five thousand okay is there any other reason to sell this house other than the debt well the fact that it's not the house that we shopped for and picked we like the house okay that's right yeah it's not anywhere I mean for but for the next two or three years it's not the in the world there's nothing nothing going on here that's like a big driver other than you're just trying to figure out a way to get out of debt so your classic car is worth what mmm somewhere in the six to eight thousand range okay and what's the dad on the 39,000 majority of the student loan then there's about 12 on credit card debt and then right now I was still paying a little bit on five seven years ago a foreclosure that we had to deal with mm-hmm and how much does the balance on that 7,000 that's actually I'm paying to my parents they gave me the money get home get the attorney and get everything paid off and I'm paying that to them about 7,000 pay to them gotcha okay and your household incomes for it about 85 okay no I'd keep my house and I'd sell the classic car today there's no difference it's on that today and so on in the summer a couple of things I want to get sorted on it to get a little bit more money for it okay all right that's fine yes you're still polishing it okay yeah polish it up and let's but let's get that done before summer let's get that money thrown at this because I make an eighty thousand you're gonna pay off thirty thousand and what twelve eighteen months what we've looked at we're paying about fifteen hundred a month towards the debt and that puts us at about the two year range okay plus or minus a car okay yeah okay so I'm 18 months pretty close there you go almost like I've done this before yeah you're you're in good shape no IIIi don't think you saw this house for this reason if you get out of debt and you have your emergency fund fully funded and you guys decide the trade houses later and you don't take out a payment that's more than a 15-year fixed-rate and then you get that paid off and you never go in debt again then that's an okay move but I think you're just trying to find a way to slip out of this and right now you're very very close so let's just play through I play throughs what I do hey thanks for the call I appreciate you joining us that puts this our the Dave Ramsey show in the books we'll be back with you before you know it in the meantime remember there's ultimately only one way to financial peace and that's to walk daily with the Prince of Peace Christ Jesus [Music] [Applause] [Music] guys let's be real being a parent is hard work now that I have two daughters of my own it feels like the to-do list never ends and if every 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